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What are the 3 Basic Rules in Accounting.
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Answer / grace
There are three basic rules in Accounting. Namely
1.Personal Account :
Debit the receiver
Credit the giver.
2. Real Account :
Debit what comes in
Credit what goes out
3. Nominal Account :
Debit all Expenses & Losses
Credit all Incomes & gains
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / ndsandeep
Personal account
debit the receiver
credit the giver
Real account
debit what comes in
credit what goes out
Nominal account
debit all expenses and loss
credit all income and gine
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / kiran b. suryavanshi
1) Real Account:- Debit what come in, Credit what goes out.
2) Nominal Accounts: - Debit all expenses and losses, Credit all incomes and revenues.
3) Personal Accounts - Debit the receiver, Credit the giver.
ccount:-
Real Accounts:
The real accounts related to accounts that are intangible like assets, reserves, capital, and liabilities whose balances are carried to next operational cycle are real accounts. The accounting rule that is used for this type of accounts are "debit what comes in" and "credit what goes out". Say, if a building is bought from a person, debit the amount from the building account (real account) and credit it to the person account (personal account). Other scenario would be to sell a product on credit to a person, so credit the amount to product account(real account), debit it from the persons account(personal account).
Nominal Accounts:
The Nominal accounts are temporary accounts which are closed at the end of each year by moving their balances to Permanent accounts. Accounts that come under this type are expenses, gains, revenues, losses. The balance of these accounts becomes assets or losses at the end of year and moved to permanent accounts. The accounting rule that is used for this type of accounts is "Debit all expenses and losses" and "credit all incomes and gains". While paying the salary to the employees in cash, the amount is debited from the salary account (nominal account). If a discount is got from a company then it is credited to the discounts account.
Personal Accounts:
The Personal accounts are accounts that are related to a person or an organization. The accounting rule that is used for this type of accounts is "debit the benefit receiver" and "credit the benefit giver". If some cash was paid to a person X. Then according to the rule the amount is debited from the person "X" accounts (personal account) and credit to the cash account. If a product is bought on credit from a company "Y", then the amount is credited to company "Y" account (personal account) and debited from the product account (Real Account).
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / bhushan sethi
PERSONAL A/C: DR. THE RECIVER
CR: THE GIVER
REAL A/C : DR: WHAT COMES IN
CRl WHAT GOES OUT
NOMINAL A/C: DR: ALL EXPENES & LOSSES
CR: ALL INCOMES & GAINS
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / mr. nikhilkumar bagla
1. Personal Account:
Debit the receiver.
Credit the giver.
2. Real Account:
Debit:- what come in.
Credit:- what goes out.
3. Nominal Account:
Debit: all Expenditure and losses.
Credit: all gains and income.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / madhu
the 3 golden principles of accounts are as follows:
personal a/c
real a/c
nominal a/c
personal a/c,
debit the receiver
credit the giver
real a/c
debit wat comes in
credit wat goes out
nominal a/c
debit all expenses & loss
credit all incomes & gains
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / vairamuthu
Personal account:
debit the receiver
credit the give
Nominal account:
debit all expenxes and loss
credit all income and gain
Real account:
debit what comes in
credit what goes out
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / kavita salvi
personal A/c -debit the recceiver ,cedit the giver
Real A/c- debit whats comes in credit whats gose out
Nominal a/c -debit all expenses and losss,credit all income and gain
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / tejashri koli
personal account
dr reciver
cr giver
that we can see or touch
nominal account
dr what comes in
cr what goes out
means related to individual
real account
dr all exp&losses
cr all income& gain
| Is This Answer Correct ? | 1 Yes | 0 No |
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