"The three golden rules of accounting are the very foundation of double entry system of financial accounting." Elucidate.

The three golden rules of accounting are the very foundation of the double-entry system of financial accounting. This statement underlines the pivotal role played by these rules in the double-entry accounting process. The double-entry system of accounting classifies all the accounts opened in books under three broad categories, which are as follows: 1. Personal Accounts: Accounts of Natural, Artificial, and Representative Persons. 2. Real Accounts: Accounts of Things and Properties. 3. Nominal Accounts: Accounts of Expenses/Losses and Incomes/Gains. The three golden rules, each dealing with one of the above three categories of accounts, are provided under the Double Entry System of accounting. These rules are as follows: For Personal Accounts: Debit the receiver account, Credit the account of Giver For Real Accounts: Debit what comes in, Credit what goes out For Nominal Accounts: Debit all expenses and Losses, Credit all incomes and gains Through these three golden rules of accounting, all the transactions entered into by a business firm are duly categorized and recorded. Not only this, these rules ensure that each and every accounting transaction is recorded with both its debit and credit aspects. Hence, it is rightly said that "the three golden rules of accounting are the very foundation of the double-entry system of financial accounting."