Golden Rules of Accounting:Every economic entity must present its financial information to all its stakeholders. The information provided in the financials must be accurate and present a true picture of the entity. For this presentation, it must account for all its transactions. To bring about uniformity and to account for the transactions correctly there are three Golden Rules of Accounting. Types of accountsTo understand the Golden Rules of Accounting we must first understand the types of accounts. There are three types of accounts:Real AccountPersonal AccountNominal Account1. A Real Account is a general ledger account relating to Assets and Liabilities other than people accounts. These are accounts that dont close at year-end and are carried forward. An example of a Real Account is a Bank Account. 2. A Personal account:It is a General ledger account connected to all persons like individuals, firms, and associations. An example of a Personal Account is a Creditor Account. Unexpired insurance is another term that is used for prepaid insurance. Prepaid insurance is deducted from the insurance premium expenses account in the profit & loss account and shown in the balance sheet as current assets. These accounts are not in the name of a specific person but are represented as personal accounts. 3. A Nominal account is a General ledger account pertaining to all income, expenses, losses, and gains. An example of a Nominal Account is an Interest Account. Golden rules of accounting:Types of AccountGolden RuleReal AccountDebit what comes into the businessCredit what goes out from the businessPersonal AccountDebit the receiverCredit the giverNominal AccountDebit the expense or loss of the businessCredit the income or gain of the businessTherefore, from the above explanation, an Insurance unexpired account is a Personal account.