The balance sheet is a very important and one of the main accounting documents, which contains the balances at the beginning and end of the period, and in addition, the turnover on debit and credit for a certain period for each separate account and subaccount. At the same time, another is compiled from the balance sheet - the balance sheet by calculating the balance on the accounts.
Instructions
Step 1
The balance sheet or balance sheet must be drawn up at the end of the month on the basis of the data that are available for each synthetic account: balance (balances) at the beginning and end of the month, turnovers for the month.
Step 2
Record all synthetic accounts used by the company on the statement. For each separate account, set aside a separate line in which indicate the opening and closing balances, debit and credit turnovers. If no movements have been made on the account for the reporting period, then indicate only the opening and closing balances (balances). To check whether the balance sheet was drawn up correctly and correctly, you should know some rules.
Step 3
The total of debit seed and account balances must in any case be equal to the total of credit seed balances.
Step 4
The total of debit turnovers for a certain period must be equal to the total of credit turnovers.
Step 5
The total of the closing credit balances must equal the total of the debit ending balances.
Step 6
The formation of the balance sheet is based on the use of double entry, which allows accounting to control the correctness of the reflection of many business transactions. Since each amount is reflected in the debit of one of the accounts and the credit of another account, the total of the turnovers on the debit in all accounts should be equal to the result of the turnovers on the credit for all accounts. If this equality is not there, then this means that errors were made in the entries made on the accounts, which must be found and corrected.
Step 7
Thus, double entry is one of the methods for ensuring a constant balance sheet summarization of all indicators that reflect the turnover of the company's assets, interconnected with the sources of their formation.
