Question

We have many different rules for tax vs book accounting. Do you think this is good for accounting or bad? Why?

Answer 1

Yes we have different rules for accounting as well as tax and rules are made on the basis of specific assumptions as well as on the basis of case study.As we know that Accountancy also has certain rules which everyone has to follow while recording the transactions

Different Rules of Accounting benefits the person while recording the transaction as we have 3 golden rules of accounting that are :-

1 Debit the Receiver and credit the giver

2 Debit all expenses and credit all gain

3 Debit what comes in and credit what goes out

These rules help in maintaining the accuracy of the transaction at most

Another rule is that of Double Entry System it means that every transaction have two aspects that is credit and debit

this rule help in maintaining the transaction reliable as well as help in cross checking of the transaction

Each Entry should be recorded in proper format so for the future needs and every transaction should be recorded while keeping the golden rules of accounting in mind

Yes definitely if the rules are properly followed this can be good for accounting