what is the main source of accounts

Golden Rules of Accounting – Using Debit &

Credit Rules

Golden Rules of Accounting

The whole accounting process is based on three golden rules of accounting, where the rules are based on double entry system. Through this golden rules, you can determine which account to be debited and which account to be credited.

How to apply accounting rules for any transactions

  1. First read transaction and understand carefully
  2. Check what type of accounts are provided
  3. Which accounting rule to be applied
  4. What are the affects of transactions
  5. Apply golden rule
  6. Post the transaction that applicable to debit and credit.

Account Types – Rules of Accounting

Firstly, we will discuss the important rules of account types. Generally, there are three types of accounts, i.e.

  1. Personal Accounts
  2. Real Accounts
  3. Nominal Accounts.

Below are important rules of debit and credit, where every learner should remember while doing posting.

Personal Accounts

Debit (Dr.) the Receiver

Credit (Cr.) the Giver

Debit (Dr.) the receiver & Credit (Cr.) the giver are the rules used for personal accounts. When a person gives anything to other person/ firm / organization or to any person, the receiver account will be debited and the giver account will be credited.

For example:  On 5th June, 2019 Tutorial kart purchased furniture for $8,000 from TMC dealers.

Date Particulars Amount Amount  Rule Applied  
05-Jun-19 Tutorial Kart A/c 8,000   Debit (Dr.) the Receiver
05-Jun-19 To TMC Dealers A/c   8,000 Credit (Cr.) the giver

In above example transaction, tutorial kart receiving the benefits (debit the receiver), so tutorial kart a/c to be debited. And TMC dealer is gives the beneficial, so TMC dealer account to be credited

Real Accounts

Debit (Dr.) what comes in

Credit (Cr.) what goes out

Debit (Dr.) what comes in & Credit (Cr.) what goes out are rules for real accounts and applicable on all the assets. In simple terms, if anything comes in to business/ firm /organization than account will be debited and if anything goes out of business than account will be credited.

For example: An Asset was purchased for cash $4,999. The entries are as follows

Date Particulars Amount Amount  Rule Applied  
10-Jun-19 Asset A/c 4999   Debit (Dr.) what comes in
10-Jun-19 To Cash  A/c   4999 Credit (Cr.) what goes out

An asset purchased for cash $4,999, here an asset is coming to firm and firm paid cash of $4,999 (which is going out of business).

Nominal Accounts

Debit (Dr.) all expenses & losses

Credit (Cr.) all incomes & gains

Debit (Dr.) all expenses & losses and credit (Cr.) all incomes and gains are rules used for Nominal accounts (e.g. rent, salary, etc). All expenses, losses should be debited and if any incomes, gains, profits are credited.

For example: On 31st June, 2019, Paid rent amount of $500.

Date Particulars Amount Amount  Rule Applied  
10-Jun-19 Rent A/c 500   Debit (Dr.) all expenses
To Cash A/c     500 Credit (Cr.) what goes out
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Papers Owl, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Papers Owl has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Papers Owl, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.

error: Content is protected !!