What is the meaning of golden principle of account?

Answer 1

The golden principle of accounting refers to the foundational rules that guide the recording of financial transactions. It consists of three main rules: "Debit what comes in, credit what goes out" for personal accounts; "Debit the receiver, credit the giver" for real accounts; and "Debit all expenses and losses, credit all incomes and gains" for nominal accounts. These principles ensure accurate and consistent recording of financial data, helping maintain the integrity of financial statements.