Business accounting transactions, as they accumulate, are entered into the accounts. Transactions can be recorded separately, or they can be summarized in grouping or cumulative statements if there are many similar transactions. This can significantly reduce the number of account entries.
Instructions
Step 1
Active accounts are the accounts on which the economic assets of the enterprise and its property (cash, materials, equipment, finished products) are recorded. The expenditure of funds on such accounts is reflected in the loan, and their increase - in debit. By debit, only the final balance of the active account can be received. That is, the transfer of assets of the enterprise, including their presence, various receipts and expenditures of economic assets, depending on their types, is recorded on active accounting accounts. In other words, active accounts are invested funds (money in the bank, cash desk, property, goods, etc.)
Step 2
The easiest way to find out if an account is passive or active is to check in which part of the balance (on the right or left side) the corresponding line is located. An increase in funds on the account is reflected in debit (if the account is active), and a decrease in credit. If the account is passive, the increase in funds on this account should be reflected in the credit of the account, and the decrease in the debit.
Step 3
When determining the activity of the account, you should take into account that it contains the existing funds of the organization at its disposal, as well as the indicators of the increase in these funds. That is, the amounts are constantly changing and are recorded on the accounts as they are received.
Step 4
Active accounts are opened at the beginning of the reporting period, which have balances. From the active part of the balance, data are used to record on accounts and are written to the debit of accounts. In this way, an account is opened and the initial balance is recorded. Receipts and increases in funds are recorded on debit, expense and disposal, i.e. decrease - for the credit of accounts. At the end of the reporting period, turnovers are summed up for all accounts. That is, for active accounts, debit is only an increase, and credit is only a decrease.
Step 5
The amounts on transactions of the reporting period are recorded in the totals of the turnover on debit, and the amount of the initial balance is not included. For the reporting period, the final balance on active accounts is determined as the sum of the initial balance on debit and the total of turnovers on debit, minus the total turnovers on credit. The balance will be in debit or zero.
