3 Golden Rules of Accounting with Examples

The 3 Golden Rules of Accounting are also known as the “3 Accounting Principles” or “3 Accounting Concepts”. They are the foundation of accounting and are used to record financial transactions accurately and consistently.

The Rules are as follows: -

1. The Golden Rule of Debit and Credit: For every debit entry in an account, there must be an equal credit entry and vice versa.
2. The Golden Rule of Real Account: Debit what comes in, credit what goes out.
3. The Golden Rule of Nominal Account: Debit all expenses and losses, credit all incomes and gains. Read more