Accounting. Account structure (most important)

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Accounting. Account structure (most important)

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20. Account structure

accounting account is a way of grouping current control and reflecting in a generalized form homogeneous accounting objects and their movement.

Accounts are opened for each type of economic assets, their sources, business processes and their results.

The movement of each accounting object occurs either in the direction of increase or decrease. The movement of materials is characterized by their entry or exit; the change in the debt to the supplier consists of its increase or decrease.

For separate accounting of increases and decreases, the account is divided into two parts.

The left side is called debit, right - credit.

In appearance, the account is a table in the form of a card, a free sheet. The debit and credit sides in these tables can be located opposite each other and in a checkerboard pattern (debit - horizontally, credit - vertically).

Chart of accounts - a system of accounting accounts used for current accounting and control. With their application, the problem of dual reflection of information, its generalization and accumulation is realized.

The basic principle of the formation of a separate account is the homogeneity of the objects taken into account.

"Balance" (balance) is a term used to refer to account balances.

turnovers are the amounts of debit and credit entries of the respective accounts. The turnover amount does not include the opening balance, which is transferred to the account from the opening balance. Knowing the initial balance and turnover of the account, by comparing them, you can determine the final balance of the account.

Recording on accounts begins with an indication of the opening balance, on active accounts the balance is only debit. On the active account, balances are reflected on the debit side of the account at the beginning and at the end of the period of operation, causing an increase in the balance, on the credit side of the account - only business transactions that cause a decrease in the balance.

For an active account, an increase and all balances are recorded on a debit, and a decrease on a credit.

When recording in active accounts, only two situations can arise:

▪ the amount of the opening balance and the amount on the debit side of the account must be greater than the amount shown on the credit, in this case the ending balance remains;

▪ the sum of the opening balance and the sum of the debit turnover must equal the sum of the account's credit, in this case there will be no final balance.

On passive accounts, the balance is only credit. The passive account reflects the opening and closing balances and transactions that increase the balance on the credit side, and transactions that reduce the balance on the debit side. In a passive account, increases and balances are recorded as credits, and decreases are recorded as debits.

When making entries in passive accounts, there can be only two situations:

▪ the amount of the opening balance and the amount of credit turnover must be greater than the amount shown in debit, in this case we have a final balance;

▪ the amount of the opening balance and the amount of credit turnover are equal to the amount of debit turnover, there will be no balance.

There are also accounts that combine the characteristics of both passive and active accounts. Such accounts are called active-passive. They are of two types:

▪ with a one-sided balance (debit or credit);

▪ with a two-way balance (expanded debit and credit at the same time).

Author: Kabkova E.N.

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