Volume : V, Issue : II, February - 2016

Single Platinum Rule of Accounts – “Asset is a prepayment”

Brijesh Lohchania

Abstract :

 Background– To decide what to be debited and what to be credited, first he had to classify the accounts into three viz. Real, Personal and Nominal. And there are three traditional rules each of these three accounts respectively, to record transaction by debiting one account and crediting another account, known as three golden rules of accounts. This review paper aims to provide a simple explanation of the cornerstone of the Accounts �Debit and Credit� for the new learners of Accounts, without the use of traditional three golden rules of Accounts. Conclusion– Single Platinum rule: – Credit is addition and Debit is deletion while considering all Assets (including cash) of the company as prepaid expenses. This rule can be applied in all transactions unconditionally, which always stands true as the traditional three golden rules.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Brijesh Lohchania Single Platinum Rule of Accounts‾�Asset is a prepayment� International Journal of Scientific Research, Vol : 5, Issue : 2 February 2016

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