Accounting accounts

Accounting accounts are a special method of grouping an object of observation on an economic basis, which allows to reliably reflect the initial, final state and change of accounting objects in the course of business operations. Accounts are opened for all types of assets, income, capital, liabilities, expenses. They are divided into regulatory and applied independently.

There are certain rules for maintaining accounts, which are fundamental in the work of any accountant. In order to understand how the entire accounting system works, it is necessary to understand the very essence of the concept of "account".

The term "account of accounting" means a specific method of economic grouping, which allows you to systematize the current information on various indicators of economic activity in a monetary assessment. It is a storage of information, which is then summarized and used to compile various summary indicators, financial statements. On the basis of the aggregate of all accounts, the main reporting of the enterprise is drawn up - the balance sheet.

All accounts have names and codes, which are determined by the so-called "Chart of Accounts". On each of them are reflected objects grouped by the principle of homogeneity. Homogeneous types of funds and their sources are shown on those accounts that have a reflective nature of the information name. The "Chart of Accounts" lists codes, names of various accounts and comments on their use.

Accounting accounts have accounts and are maintained in monetary terms. All these records are carried out in strict chronological order (in the order of the date of the business transaction) according to the primary documents.

Each account is divided into 2 parts:

- Left side - debit, denoted "D" or "Dt";

- the right side is a credit denoted by "K" or "Ct".

"Debet" in Latin means "should", and "credit" is translated as "believe."

The economic and financial operations displayed on any account entail an increase or decrease in a certain group of funds. Each of its sides is intended for separate display of the reduction or increase of the amounts. All amounts reflected on its left side are called debit, and recorded on the right side are credit.

Schematically, accounting accounts are displayed in this form:

Number, name.

Debit Credit

In accounting, there is such a thing as "double entry". This concept involves the reflection of all operations on at least two accounts. So, any change in the record of one account should automatically be reflected in another account, with which it "corresponds". In this case, the total of the debit entry equals the total of the credit entry. The balance equation follows from this rule: the sum of assets is always equal to the sum of the liabilities and capital of the enterprise.

Monthly totals (balances) of accounts are maintained in the "General ledger", which reflects information on each of them throughout the year. It records the initial (incoming) balance (balance) of the accounted object, then indicates its debit and credit change for a month (turnover), and then displays its balance at the end of the period. Since the balance is the difference between turns, it can be both debit and credit.

In accounting, there is a division of accounts into passive, active, active-passive. Active accounts reflect information about all types of property and other means of the organization (fixed assets, goods, cash). Passive accounts reflect information on the sources of property and liabilities of the organization (statutory and other capital, loan settlements). Active accounts have only a debit balance, and passive accounts - only a credit account.

In addition to the above accounts, there are also those on which both information about the property and the sources of its formation (profit / loss, settlements with buyers and sellers). They are called "active-passive". Their balance (balance) can be debit and credit.