Each organization needs to keep a continuous record of the volume of business transactions and track their changes. The easiest way is to keep records using accounts.
Composition and types of accounts
Accounting accounts are simpler and less labor-consuming to carry out current accounting than, for example, a company's balance sheet. They have a fairly simple structure and consist of the following elements - item and account number, as well as debit and credit sides.
From the point of view of economic meaning, active and passive accounts are distinguished. Their separation is based on the purpose of debit, credit and balance.
Active account
Active accounts are designed to account for the state and changes in the company's funds in the context of the types of their formation. They are responsible for its property and debts; the movement of the company's assets is reflected in the active accounts. Active accounts include information about the company's funds that are in bank accounts, warehouses, etc.
On them, the initial (reflects funds at the beginning of the period) and final balances, as well as an increase in funds are recorded on the debit of the account, a decrease in household funds - on the credit of the account.
Key active accounts include:
- fixed assets (account 01) - this account is used to record the movement of fixed assets of the company;
- intangible assets (04) - the account is used to record the movement of intangible assets, as well as investments in research and development;
- materials (10) - used to account for changes in the volume of materials, raw materials, fuel, semi-finished products, etc.;
- main production (20) - serves to account for production costs;
- goods (41) - used to record values purchased as goods for resale or processing;
- finished products (43) - used to account for the volume of finished products;
- cash desk of the organization (50) and settlement accounts (51) - takes into account the movement of the company's money in the cash desk and on the current account, respectively.
The difference between active and passive accounts is that they have a debit opening balance and a closing balance. Another difference is that debit turnover means an increase in funds, and credit turnover means a decrease.
Passive account
On passive accounts, records of the sources of formation and movement of enterprise funds are kept. They display transactions that change the amount of assets and the composition of the company's debts. They are designed to record the company's obligations to partners, employees or the state.
On passive accounts, the opening, closing balances, as well as the increase in funds are recorded on the loan. Decrease in household assets is displayed on debit. Among the main passive accounts are:
- calculations for short-term (66) and long-term loans and borrowings (67) - are used to account for the state of short-term (up to a year) and long-term (more than a year) borrowings;
- Payroll calculations (70) - used to record information on the payment of wages, as well as income from shares;
- authorized (80), reserve (86) and additional capital (87) - serves to record information about the movement of all types of capital of the company.
There are also active-passive accounts that reflect the property of the company and the sources of its formation. Active-passive accounts include accounts that take into account the company's settlements with suppliers, founders, contractors, tax deductions, insurance and pension costs.
