Golden rules of accounting convert complex book-keeping rules into a set of well defined principles which can be easily studied and applied. They are also called the traditional rules of accounting or the rules of debit and credit.
In accounting every transaction is recorded. And Every transaction involves two accounts. One account receives the benefits and the other accounts gives the benefits. The account which receives the benefits is called the Debit Accounts and the account which gives the benefits is called the Credit Accounts. And the value of debit entry is equal to the value of credit entry. Continue reading “Golden Rules of Debit and Credit : Basic Accounting”