In the course of the enterprise's work, it is necessary to keep a current record of the state of the property and the sources of its formation, as well as records of various business transactions. Such records are maintained through accounting accounts. They are more convenient for current accounting than, for example, the balance sheet of an enterprise, since they are less labor intensive.
Instructions
Step 1
All accounting accounts are divided into active and passive. Active accounts are intended to reflect the property of the enterprise, passive - for the sources of its formation. Each account includes name and number, debit side and credit side. For example, account 10 "Materials", 50 "Cashier", etc.
Step 2
Start recording on active accounts with the formation of the initial balance (opening balance) of the property. It is reflected in the debit of the account. Then the accounts should reflect all business transactions, which reflect the change in opening balances. Amounts that increase the opening balance are recorded on the balance side, and those that decrease the initial balance on the opposite side.
Step 3
Please note that in active accounts, an increase in property will be reflected in the debit of the account, and a decrease in the loan. When adding up all the transactions recorded on the debit and credit of the account, we get the turnovers on the account. The total amount that will be reflected in the debit of the account is the debit turnover, the credit is in credit. When calculating turnovers, the opening balance is not taken into account.
Step 4
When the debit and credit turnover is calculated, proceed to the formation of the final balance (balance) of the accounts. For active accounts, the final balance is determined as follows:
Ko = No + DO - KO, where
Ko - the final balance (final balance) of the active account, But - the initial balance (initial balance) of the active account, DO - debit turnover, KO - credit turnover.
In other words, the ending balance is calculated by adding the opening balance and the turnover of the same side and subtracting the turnover of the opposite side. The ending balance is recorded on the same side as the opening balance.
Step 5
Remember that the essence of this method is that each transaction is reflected in the same amount for the debit and credit of different accounts. Those. a decrease in one account inevitably leads to an increase in another, and vice versa.
