Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Tell me about golden rules of Accounting?

user-image
Question added by Shaik Mahammad Rafi , Accounts Receivable Analyst , ABHAYA CEMENTS PRIVATE LIMITED
Date Posted: 2017/02/28
Christelle El-Hajj
by Christelle El-Hajj , Regional Financial Compliance Specialist , Azadea Group

The better answer is that for assets : the account is debited when you want to increase it and credited when you want to decrease it, and for liabilities it is the other way around.

now for the accounting golden rule, no matter what you do ALWAYS HAVE A SIGNED SUPPORTING DOCUMENT for any transaction no matter how little or small so you can trace it if u need to.

MOHAMED RAFI ABDUL MAJEED
by MOHAMED RAFI ABDUL MAJEED , Senior General Accountant Member SOCPA , Saudi Investment Group and Marketing Co Ltd Jeddah KSA

Debit The Assets and credit the Liablities

"Debit All Expenses And Losses, Credit All Incomes And Gains"

 

When you credit all incomes and gains, you are increasing your capital. And when you debit expenses and losses, you decrease your capital. This is the rule of debit and credit for nominal accounts.

Sunila Oturkar
by Sunila Oturkar , Business Planning and Reporting Analyst , hewlett-packard(hp)

Personal Account - Debit the receiver Credit the giver

Nominal Account - Debit all expenses and losses and credit all incomes and gains

Real Account Debit what comes in credit what goes out 

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.