The Bank is a financial institution, and its activities are connected only with cash, which is spelled out in Russian legislation. All activities of banks are carried out using accounting techniques, due to which the financial statements of the bank are created.
Instructions
Step 1
The concept of an account is necessary to reflect the financial transactions of a bank. The number of operations is very diverse, since the bank during the working day is engaged in attracting and placing resources, carrying out intra-banking operations and conducting operations related to monetary funds. For example, it receives or returns loan guarantees, pledges, gives guarantees to its customers, etc. To control cash flows, these actions of the bank need to be described somehow. For this, accounting is used, in the form of a system for processing and collecting financial information of the bank.
Step 2
An account is the main unit of information storage for a specific banking transaction. There are special Charts of Accounts, which contain several chapters marked with the letters A, B, C, D, D. According to this classification, each Chart of Accounts contains accounts corresponding to each of the sections. A great responsibility for the correct use of reporting rests with its user, who must be able to correctly interpret it and use it in making decisions.
Step 3
For example, the first digit of the account will always correspond to the section digit. That is, the bank's cash is recorded on accounts of section 2, which means that the synthetic account of the 1st order will be 202, and the 5th section is allocated for the bank's own bills of exchange, and the account will start with the number 5 - 523. By the same principle other accounts are formed as well. Such decoding is used to simplify the system for processing and describing bank accounts.
