Basic Principles of Accounting and Golden Rules of Accounting. GAAP (Generally Accepted Accounting Principles) is the framework, rules and guidelines of the financial accounting profession with a purpose of standardizing the accounting concepts, principles and procedures. Top 10 Most Important Basic Accounting Principles Defined. Here is the list of top basic accounting principles that company follow quite often. Here are the basic accounting principles and concepts under this framework :
Basic Principles of Accounting

1. Business Entity
A business is considered a separate entity from the owner(s) and should be treated separately. Any personal transactions of its owner should not be recorded in the business accounting book, vice versa. Unless the owner’s personal transaction involves adding and/or withdrawing resources from the business.2. Going Concern
3. Monetary Unit
The business financial transactions recorded and reported should be in monetary unit, such as INR,US Dollar, Canadian Dollar, Euro, etc. Thus, any non-financial or non-monetary information that cannot be measured in a monetary unit are not recorded in the accounting books, but instead, a memorandum will be used.4. Historical Cost
All business resources acquired should be valued and recorded based on the actual cash equivalent or original cost of acquisition, not the prevailing market value or future value. The exception to the rule is when the business is in the process of closure and liquidation.5. Matching Concept
This principle requires that revenue recorded, in a given accounting period, should have an equivalent expense recorded, in order to show the true profit of the business.6. Accounting Period
7. Conservatism
This principle states that given two options in the valuation of business transactions, the amount recorded should be the lower rather than the higher value.8. Consistency
9. Materiality
Ideally, business transactions that may affect the decision of a user of financial information are considered important or material, thus, must be reported properly. This principle allows errors or violations of accounting valuation involving an immaterial and small amounts of recorded business transactions.10. Objectivity
Golden Rules of Accounting :-

A] Real Accounts:-
1) Debit what comes in.2) Credit what goes out.
B] Personal Accounts :-
2) Credit the giver.
C] Nominal Accounts :-
1) Debit all expenses & Losses.2)Credit all Incomes & Revenue.