A long time ago, I was with one of my uncles, and I’ll always remember this accounting credit debit card thing. It’s good, he said, that you’re not an accountant and don’t have to face an interview. Otherwise, you will fail terribly! Then he told me the three golden rules of accounting. He said that even people who account for using these rules have to China Phone Number List remember the basics of accounting in interview questions. Good uncle inspired me, the accounting duplex system uses a set of principles involving debits and credits. This morning, I was going through the statement of accounts, and it reminded me again of the golden rule of accounting. Seeing / being that also realize that it’s been a long time since I’ve written something about non-technical everyday life.
The Three Golden Rules of Accounting
This mainly applies to personal accounts. Deal with some people per business. The first golden rule of accounting tells the accountant to debit the recipient’s personal account and credit the giver’s personal account. The second rule applies to live accounts. Unlike personal accounts, real accounts are the property of the business. Properties may include land, office buildings, furniture, and all other physical assets of the business. The rule orders accountants to debit the account into the property of the business. For example, if a business purchases a new offices building, the account for that office will be debited.
Debit All Expenses or Losses and Credit All Income or Operating Profit
The third rule applies to nominal accounts. These are accounts that deal with the expenses/income and profit/loss of the business. For fear that three rules are very simple. If you are into bookkeeping, you should never forget these rules if you are following a dual entry system. If you want to understand the account types and reliably apply the appropriate rules to each account, you will never face a problem. In a dual input system, it’s all about balance on both sides. In other words today I will explain these accounting entities. Every professional blogger should know to use these principles if they need to keep the books.