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What are the three golden rules of accounting?

Golden rules of accounting :

The Journal is the basis of the accounting system, In Journal we record all day to day transaction of business. For journalising all day to day transaction of the business we have to know the Golden rules of Accounting[1] shown in the diagram.

Now, I will explain all these three Golden rules of Accounting individually with examples:
1. Real Accounts
2. Personal Accounts
3. Nominal Accounts

Golden rules of Accounting

1. Real Accounts

This rule is applicable to all assets of the business when an asset is purchased, sale, depreciated or disposed of.

Example of Real Accounts:- Cash, Land and Building, Plant and Machine, Furniture and Fixture, Trademarks, Etc.

2. Personal Accounts :

This rule is applicable to Persons, artificial persons and representative persons.

Example of Personal Accounts: – Aman, Ram And Sons., HAPPSS Store., Bank A/c (SBI), Outstanding Salary, Prepaid Expenses, Etc.

3. Nominal Accounts:

This rule is applicable to all Expenses, Income and Losses/Profits.

Example of Nominal Accounts:- Salary, Wages, Purchases, Sales, Commission Received, Etc.

Read More…….

Please also check out Modern Approach of Accounting our main source is TutorsTips.com — Preceding unsigned comment added by Tutorstips17 (talk • contribs) 02:32, 3 October 2018 (UTC)