of any enterprise is impossible without the use of accounts.In the course of its economic and financial activities of an enterprise or an organization it is necessary in the conduct of current account status of all property (assets) of an enterprise, and all the sources of its formation, recording their movements, as well as consideration of other business transactions.The best way for this is to maintain accounting records.They are more comfortable for your daily records than the total balance of the company or other financial statements.The accounts have a fairly simple structure.The score consists of three main elements:
1. Name of the account and its number.
2. Debit side (debit).
3. credit side (credit).
What active accounts, and what their financial entity?The accounting used such accounts: active and passive, active and passive.Almost all the active accounts as passive and have only one balance:
- active - debit;
- passive - credit.
account of a third have both debit and credit balances.The accounting records on active accounts reflect the property in the enterprise.On the passive takes into account information about all the liabilities of the enterprise (the methods of formation of property).
Why then are active account?With their help, keep records of the cash assets of the company and all their amendments.Balance (residues) for them is almost always indicated in the asset balance.On active accounts balance (starting, of course) recorded in its debit.All business transactions are leading to an increase in assets of the business are recorded in debit and reduce them - a loan.Closing balance of any active account by summing the opening balance and all debit turnovers and reduce the result by the sum of credit turnovers.Because these accounts reflects the information about the assets of the enterprise, its final balance is almost never a credit.
Active Accounts Accounting:
- «Plant and Equipment".
- «Ready-made products."
- «Materials".
- «Current Account."
- «Cash».
- «Accounts Receivable."
Passive such accounts are:
- «The authorized capital."
- «Budget funding."
- «Reserve capital".
- «Calculations with the personnel."
- «Credit Bank."
- «Accounts Payable."
When accounting records in an active-passive account reflected both the property and its sources.These accounts are intended primarily to make payments to various creditors and debtors.The status of these settlements affects how the balance will be in the account.So, if you have other company (debtors), the balance of such account is reflected in debit and credit companies.If another entity shall (creditor), and the balance is in credit and recorded on the liabilities side of the balance sheet.Sometimes such situations arise when an entity is both debtor and creditor at the same time, then its balance can be both debit and credit, and the record of it reflected in the asset and liabilities side.This form of accounting records is called unfolded.For convenience, some accountant accounting make it convoluted (record the difference between the balance in the debit or credit).
For active-passive accounts include:
- «Gains and losses".
- «Calculations with debtors and creditors."
Some traditionally active accounts are sometimes active and passive in its economic essence.For example, when an entity prepares a credit line (overdraft), asset account "Current account" may become an active-passive, not because the company uses its cash and borrowings.In this case, it may have a credit balance.
