balance of the company is an important financial instrument in which one or two pages all the information about what the enterprise owns (its assets) and what, by what means (liabilities) are those assets.One of the most common types of company assets is a receivable.To learn how to appear on the balance sheet accounts receivable, often asking questions as a novice accountants and experts with experience.In today's article we will try to answer some of these questions.
Reflection receivables in the balance sheet is carried out in the line of "long-term receivables" under non-current assets, as well as in the line "Short-term receivables" section of current assets.As you can see, the main criterion for the classification of debt is its term.In this paper, as the balance sheet, receivables are divided into long-term and short-term due to the fact that these assets are of varying degrees of liquidity, and thus bring them into a single measure can not, as it may in the future make it difficult to analyze the financial state of the firm.Long-term debt maturity is considered to be more than a year, and short-term - to a year.
Accounts receivable in the balance sheet is not displayed in one line, but several.To begin with the so-called fixed net asset value of the debt - the amount that the company actually expects to receive.After that is a line in which is written the original value of the debt, that is, the amount that an enterprise should debtors according to the documents.Often, however, the company received as repayment amount less than the one that was originally agreed.In order to reflect the difference between the documented amount of debt and the amount that the company actually expects to receive, put the line "Reserve for doubtful debts", which then writes the sum of the losses of the company due to unscrupulous debtors
In addition, receivables in the balance sheet is classified accordingthe type of debtor.Thus, the release of such debtors as budgetary organizations, domestic debtors (eg, accountant) and other enterprises.
It is important to say that the receivables in the balance sheet reflects not only the amount of money due from other organizations, but also, for example, delay the delivery of goods, equipment, or late provision of services for which payment has already been made.So, if the enterprise has transferred the money for, say, a new machine, but its delivery will take a few weeks, you can not just write down the cost of the machine to fixed assets - should first write down its value in accounts payable to suppliers, but only after delivery to transfer this amount to the value of fixedmeans.
Recall also that the accounts receivable balance is shown as an aggregate figure, which is the basis for the mapping of the accounts payable accounting.That is the correct display on the accounts of DZ accounting according to the chart of accounts allows eventually form a correct indicator of the amount of debt, which then goes into balance.Careful management of each account and validation of display operations trial balance at the end of the period to help avoid future problems with the formation of the company's balance sheet, when an error is found in which it will be much harder than in the primary mapping operations in the accounts.
We hope that this article has helped readers briefly acquainted with the display features of ERA in the financial records of the company.
