The balance is the difference between the expenses and receipts of the enterprise for a certain period of time. The concept of "closing balance" is used to determine the balance of a specific account at the end of the period and is used, as a rule, when compiling the balance sheet. The calculation procedure is determined by the nature of the analytical or synthetic account.
Instructions
Step 1
Generate a turnover sheet for synthetic accounts. It should contain a column with the name of the account and three pairs of columns for calculating debit and credit for the initial balance, turnover for the period and the final balance. Based on the data from the previous reporting period, enter the debit and credit numbers for the opening balance.
Step 2
Determine the turnover for the reporting period. To do this, on the basis of accounting data, indicate the amount of debit and credit for each account. Check that the amounts match the original documentation. Otherwise, the mistakes made may lead to inaccuracies when leaving the annual balance.
Step 3
Analyze the nature of the account for which you want to determine the ending balance. They are divided into active, passive and active-passive. This must be done because the procedure for calculating the balance at the end of the reporting period is different for them.
Step 4
Calculate the closing balance for active accounts. Receipts to these accounts are debit, and disposal is credited. When calculating the balance at the end of the month, it is necessary to add debit turnovers and subtract credit turnovers to the debit opening balances. The result will be the debit bed balance for the active account.
Step 5
Calculate the closing balance for passive accounts. The reflection of the receipt and disposal of them is reflected in the credit and debit, respectively. Therefore, at the end of the reporting period, a credit ending balance is calculated, which is equal to the sum of the credit opening balance and credit turnovers minus debit turnovers.
Step 6
Determine the ending balance for active-passive accounts that have both credit and debit sides. To do this, you first need to add up debit opening balances and turnovers and subtract credit indicators from them. If the resulting value is greater than zero, then it refers to the debit of the final balance, and if less, then to the credit without a minus.
