Golden Rules Of Accounting

Every economic establishment must produce its financial data to all its stakeholders. For this presentation, it must record for all its financial transactions. Since economic establishments are compared to comprehend their financial positions, there has to be conformity in accounting. To bring about conformity and to account for the transactions accurately there are 3 Golden Rules of Accounting.

Students will learn these Golden Rules Of Accounting in the Class 11 Accountancy. Class 11 provides a fundamental basic information regarding the subjects and concepts.

To comprehend the Golden Rules of Accounting, we must first comprehend the types of accounts.

Below mentioned are 3 types of accounts :

• Real Account: A Real Account is a general ledger account associated with Assets and Liabilities other than personal accounts. These are that sort of accounts that don’t close at year end and are carried forwarded (c/f).
• Personal Account: A Personal account is a General ledger account associated to all persons like individuals, enterprises, and associations.
• Nominal Account: A Nominal account is a General ledger account concerning to all income, expenses, losses and gains.

Golden Rules Of Accounting

Illustrations :

The above mentioned are the Golden Rules Of Accounting. Students will learn the continued version of class 11 in the Class 12 Accountancy.