Basis of accounting at the enterprise

Accounting is a solid and continuous recording of its operations on the basis of primary documents and registration of business processes in terms of money.All objects accounting is conventionally divided into two parts: assets (funds that belong to the company) and liabilities (sources of funds).Knowledge of the chart of accounts is the basis of accounting.All transactions are recorded accounting entries.Since the acquisition of fixed assets, receipt of money to the account on debit, ie an increase of assets.The reduction of assets shown on the loan accounts.The increase in liabilities are credited and a decrease - on the debit side.

All postings are made on the instructions of the Ministry of Finance and Tax Service and only in the presence of primary documents (invoices, contracts, invoices).Understand the basics of accounting necessary for the daily work of all financiers.When preparing entries logically important to consider that increasing the resources of the organization (assets) must be put o

n the debit side, and their decrease - on the loan.An increase in the sources of funds (liabilities) put on the loan, and a decrease in the sources - on the debit side.

Basis of accounting constitute two principles:

  1. principle of balance

The principle of accounting balance is the formula:


ASSETS - it's what makes the company and uses forarrived.

obligation - it's that the company should foreign investors, suppliers, government agencies and Budget.

EQUITY - this is the part that is by subtracting the liabilities from the assets have thus shown that the obligation to repay in the first place during liquidation or closure of the company, and each owner can dispose CAPITAL last.

  1. principle of double-entry

All financial transactions have a record-hand, but the principle of the balance must always be respected.For example, you have 100,000 rubles, and purchase the equipment necessary to 300000, then you take a bank loan on the remaining amount.

A (100000) = O + SK (100000)

In accounting, this operation is made on the debit side to the cashier, and 200,000 rubles in loan obligation to the bank - 200 000 rubles.

A (200,000 + 100,000) = O (200000) + Insurance (100000) Thus, the principle of balance maintained.

Any financial statements is provided for information outside the enterprise users.Banks and suppliers to find out how the company is creditworthy, investors want to know how profitable the company and the government uses the statements to collect taxes.Preparation of financial statements as an accountant in a standard format helps the supervisor to manage the enterprise and also is the basis of accounting.The most important forms of financial statements are the balance sheet, flip, balance sheet, cash flow statement, statement of profit and loss.

should be highlighted expenses in accounting.Expenses - it is primarily a decrease in economic benefits in a certain period, as a result of the outflow of assets or increase in liabilities, which leads to a reduction in capital.

bookkeeper should not be confused costs and expenses in accounting and always understand their differences while working and be able to competently defend a point of view to auditing bodies.Costs never deducted from equity in contrast to the costs.Costs the company bears a certain period, then these costs are converted into assets or expenses.Costs depend on the cost and always affect the profits of the enterprise.But the costs do not affect the profit.

Illustrate: Repayment of payables leads to a reduction of the asset (cash paid), but at the same time decreased and liabilities (debt repaid), then, the equity has not changed.So consider this expense is not true.

Write-off of receivables as at the expiration of the statute of limitations is three years of consumption, since there is a reduction without changing ASSETS LIABILITIES means EQUITY reduced.Similarly, we can recognize the flow of foreign exchange losses and the recognition of penalties, fines, state duty.

costs upon delivery of the property for rent is the cost at the end of the period, the cost of production, which was closed and gave no profit it can also be considered consumption.

That's all the basics of accounting, based on logic and not on the special instructions, manuals, regulations, and other regulations.The accounting is necessary to think logically, and not just blindly follow the requirements.