An accountant in the course of his activities is faced with the concept of active and passive accounts, which determines the way of recording a transaction. At the same time, this factor determines the credit and debit of the transaction, which is the basis for accounting and determines the procedure for filling out the balance. In this regard, it is necessary to learn how to correctly determine the passivity of the account.
Instructions
Step 1
Consider as active accounts those that are used to record the state and change of economic assets that are at the disposal of the enterprise. In this case, an increase in assets is reflected in the debit of the account, and a decrease in the credit. It is also worth noting that active accounts characterize values that increase the material base of an enterprise.
Step 2
Define passive accounts. These include those that are used to account for the state and change the sources of the formation of the organization's means. The liabilities reflect those transactions that change the amount of the company's values and the composition of debt obligations. In this case, an increase in these indicators is recorded on credit, and a decrease - on debit.
Step 3
Use a rule known in accounting to determine account passivity. If it is necessary to reflect where the funds are directed, then the asset is used, and if it is explained where they came from, then the entry is made on a passive account. It should be noted that the following comes out of this rule: the sum of the assets of the enterprise is equal to the sum of liabilities. The fact is that to reflect the transaction, a double entry is used, on one side of which there is an active account, and on the other - a passive account.
Step 4
Use another rule to find out assets and liabilities. Active accounts show what generates income, and passive accounts reflect what leads to the loss of enterprise resources. At the same time, a number of accounting accounts are active-passive, i.e. can characterize both profits and losses at the same time. For example, the account "Settlements with creditors and debtors", where the debit indicates the amount of accounts receivable, and for the loan - the amount of accounts payable.
Step 5
Check the correctness of the definition of the passivity of the accounts. To do this, according to the results of the reporting period, it is necessary to fill out the balance sheet, in the first part of which information on active accounts is indicated, and in the second - on passive ones. If the calculation was made correctly, then the total lines for the asset and liability should be equal.
