All business transactions are of a dual nature, and therefore decided to reflect them in balance by double-entry.In accounting double entry - are interrelated and simultaneously reflected in the balance of economic operations of the same amount under the credit balance of the account and debit another.Thus there is a mutual relationship between the accounts is called the correspondence accounts themselves account - offsetting.Balance sheet accounts and double entry, in fact, are the methodological techniques, without which it is impossible to carry out accounting.
Record any business transaction is possible only on the basis of original documents, which she confirmed.Double entry makes it clear where received certain funds and where they were eliminated, which operations have made changes to these resources, and, accordingly, the sources of their formation, and what financial performance is characterized by industrial activity.
Economically double entry reflects the dual nature of the assets of the enterprise, and therefore the balance it is considered from two perspectives: the composition and location of the asset in the balance sheet and sources of formation - in liabilities.The sum total of records in the asset is always equal to the total of such liabilities, so you can easily ascertain the accuracy of the postings.
Drafting or design entries, reflecting the essence of business transactions requires specialist accountant creativity and a deep understanding of the nature of this process, the understanding of the changes to which they lead.The employee has to deal with a variety of documents.Each of them is a carrier of economic and legal information - information about the movement of cash and property.
One of the stages prior to the recording operation on the offsetting entry is pre-processing of primary accounting documents.Selecting and double entry on each document correspondent accounts - Account Assignment - shall be signed made her accountant.The validity of correspondence of accounts is of fundamental importance in the organization of accounting, its reality and validity as foreground in any case - a true display of business transactions in the accounts.
all accounting documents - this is written evidence of the fact of accomplishment or fulfillment of the right to a business transaction, they serve as an important proof of its authenticity.
lack of any original documents or incorrect design may create serious problems not only from the control authorities but also from the company's employees, investors, affiliates, suppliers, customers, etc.Consequently, as the principle of double entry in the accounts of the dual reflection and the main reception of accounting requires the acknowledgment of the legitimacy of the indispensable primary documents.Their balance confirms the reality and correctness of accounting.
is interesting that in addition to dual enrollment equal to the sum of each fact of economic activity, accounting involves the duality of procedures and many other attributes.For example, there are two systems of records - a systematic and chronological, two types of registration - analytical and synthetic accounting, two groups - the material and personal accounts, each account has two sections - the debit and credit.All the facts of economic life involved two people, the two sides.All information flows are also two points - in and out.Even accountant performs any work twice - first registers the facts, and then check the correctness of the work performed.Duality accounting observed in all its manifestations.
In accounting has always formed the three essential components of cell - counting, double entry and balance.They support the illusory nature of harmony, because it is always debit the credit and asset always converges with the liability.
