Accountancy = Golden Rule

The most important in Accountancy is "GOLDEN RULE & ASSETS-LIABILITIES RULE"  if any beginner study as well as understand very clearly about this rule.....the student can do any events systematically in the concern books of Accounts. The accounting has three main assumptions :- 

• Going Concern
• Accrual Basis
• Consistency

 Without knowing this rule no one can give a single effect to the concerned books of accounts correctly. So as breath is required for life, Golden Rule is for Accountancy. No one give a overlook in this regard. This rule contains various types of accounts i.e; Real A/c, Personal A/c & Nominal A/c.

• Real A/c-  Like Machinery, Building, Plant, Land, A/c etc.
• Personal A/c- Like Abdul's, Ravi's, Ashok's A/c etc
• Nominal A/c -  Like Purchase, Sales, Debtors, Creditors A/c 

      GOLDEN RULE 

        1.  Real Account-

• What comes in debit-Dr
• What goes out credit-Cr

       2.  Personal Account-

• Receiver  is debit-Dr
• Giver  is credit-Cr

       3. Nominal Account-

• All loses or expenses are debit-Dr
• All gains or incomes are credit-Cr.

  Assets-Liabilities Rule

     All Assets are debit-Dr

     All Liabilities are credit-Cr

Study & feel this rules.......i am giving you guarantee that you can understand every part of further Accountancy study in future with a minimum effort.............best of luck.

Earn to Refer People