Accounting system and double entry

Topic 4 ACCOUNTING

Lecture questions:

1. The concept of accounting accounts.

2. The essence of double entry in accounts.

3. Control and information value of the double entry method in accounts

Lecture material topics:

Every day in organizations there is a large number of business transactions that, at the end of the reporting period, are reflected in the balance sheet, changing the amounts of its articles, sections and balance sheet totals as a whole. Meanwhile, for the purposes of current accounting, both in terms of information and in terms of control, it is important to know about all changes in the composition of funds and the sources of their formation after each business transaction. However, drawing up a balance sheet at the end of each business transaction is only theoretically possible. In practice, this is both labor-intensive and impractical. It is more convenient and simpler to use one of the elements of the accounting method - system of accounts.

Accounting account – this is a method of economic grouping, current reflection and control of business transactions with accounting objects (funds, their sources, business processes). Accounts allow you to accumulate information for its subsequent systematization and generalization in accounting registers and reporting forms. Each balance sheet item corresponds to one or more economically homogeneous balance sheet accounts.

By appearance The account is a table consisting of a header and two parts. The header above the table indicates the account number and name.

The table itself is divided vertically into two parts. The left side of the account is called debit from the Latin word debet - “he must”, and the right - credit, from the Latin word сredit - “he believes.” For convenience, the term debit is often written in an abbreviated version (D-t, D t, D), and the term credit, respectively (K-t, K t, K).

To denote the amount of account balances, the term is used balance. There are initial balances (at the beginning of the reporting period) and final balances (at the end of the reporting period). The reporting period is usually a month.

Depending on the level of detail of information, synthetic and analytical accounts are distinguished. Analytical accounts can be presented in the form of turnover sheets, cards, files on technical media. On synthetic accounts, business transactions are reflected only in monetary terms, and on analytical accounts - both in monetary and in kind terms. More information about analytical accounts is presented in paragraph 4.2.

Reflection of business transactions on accounts is carried out only after their documentary confirmation in appropriately executed accounting documents, or on computer storage media that have the legal force of primary documents.

The process of recording account transactions begins with opening an account. Opening an account means drawing (printing) the form of the account, giving it a name, transferring the opening balance, if any, from the balance sheet or other source of information. An account can be opened with a zero opening balance.

By analogy with balance sheet items, accounting accounts are divided into active and passive.

Active accounts are intended for accounting of the organization's property, incl. funds in settlements. The names of such accounts, as a rule, correspond to the name of the corresponding type of property. For example: account 01 “Fixed assets”, 10 “Materials”, 50 “Cash”, 62 “Settlements with buyers and customers” (accounts receivable - otherwise funds in settlements belonging to the organization that sells the products). On active accounts, balances are only debit, and they are reflected in the asset items of the balance sheet.

On active accounts, debits reflect the balances of funds at the beginning of the reporting period (month), their receipt, i.e. increase during the month and balance at the end of the month. The credit of such accounts reflects disposal, i.e. reduction of organization funds.

A conditional simplified example of an active account and the procedure for reflecting the operation on it is given below

Dt 50 "Cash desk" Kt

1st – 2,100,000 rubles were received at the cash desk from the current account;

2nd – the accountable person returned 70,000 rubles of unused money issued for travel expenses to the cash desk;

3rd - an employee of the organization was given an advance in the amount of 200,000 rubles through the cash desk.

Note that each of the above business transactions will be reflected not only in account 50 “Cash”, but also in other accounts. For example, for the first transaction – for the credit of account 51 “Current account”. More details about this material are presented in paragraph 4.1.2. "The essence of double entry in accounts."

From the above example of an account, it is clear that the opening balance of accounts, like the ending balance, is usually separated from the rest of the account by a line. For each account, the amount of turnover is also calculated - separately for the debit and credit of the account and then the final balance is calculated.

The final balance on active accounts is calculated using the formula:

From the end (D-t) = From the beginning. (D-t) + O (D-t) – O (K-t)

where C con.(D-t) – final debit balance;

From the beginning (D-t) – initial debit balance;

O (D-t) – debit turnover;

O (K-t) – credit turnover.

Passive accounts are intended to take into account the sources of education and the formation of funds. The names of passive accounts, as a rule, correspond to the source of formation of the organization’s funds. For example: account 80 “Authorized capital”, 82 “Reserve capital”, 99 “Profits and losses”.

The balance on passive accounts is only credit, and it is reflected in the items sections III, IV, V balance sheet “Equity and liabilities (balance sheet liabilities).”

Passive loan accounts reflect the balance at the beginning of the reporting period (the amount of the source of funds), the increase in this source during the month and the final balance, i.e. the size of the source of funds at the end of the reporting period. The debit of passive accounts reflects a decrease in the size of the source of funds.

A conditional example of a passive account and the procedure for reflecting transactions on it is given below

Dt 84 “Retained earnings (uncovered loss)” Kt

In the tables above, the opening balance may be zero. The final balance can also become zero if the arithmetic sum of the initial balance (debit or credit does not matter) and the same turnovers is equal to the sum of the opposite turnovers.

An account that does not have a closing balance is called closed account.

The example below shows the following operations:

4th - due to retained earnings, the authorized capital of the organization was increased;

5th – reserve capital is formed from retained earnings.

As in the example with the active account, each of the two above operations will be reflected in other accounts. For the fifth transaction on account 80 “Authorized capital”, for the sixth transaction on account 82 “Reserve capital”.

The final balance on passive accounts is derived using the formula C con. (K-t) = From start. (K-t) + O (K-t) – O (D-t)

where C con. (K-t) – final credit balance;

From the beginning (K-t) – initial credit balance;

O (K-t) – credit turnover;

O (D-t) – debit turnovers.

In addition to active and passive accounts, there are also active-passive accounts, the balance of which can be either debit or credit. The balance of these accounts may change during the reporting period. For example, the opening balance was debit, the ending balance became credit and vice versa. group active-passive accounts prepare settlement accounts. For example: account 71 “Settlements with accountable persons”, account 76 “Settlements with various debtors and creditors, etc. For such accounts, the balance should be calculated by object analytical accounting. That is, for account 71 - for each accountable person, for account 76 - for each individual debtor and creditor.

In the balance sheet, the balance of active and passive accounts will be reflected twice. Debit is in an asset, like accounts receivable, credit is in liability, like accounts payable.

The principle of calculating and reflecting the debit or credit balance for each individual analytical account on balance sheet active-passive accounts is called derivation expanded balance. To calculate the expanded balance, special turnover sheets of analytical accounting for settlement accounts are drawn up. An example of constructing turnover sheets will be given below in paragraph 4.2.2 “Summarization of current accounting data, turnover sheets, their types.”

In accounting there is also a group of accounts that are not directly reflected in the balance sheet, because at the end of the reporting period, the amounts reflected in these accounts are transferred to other accounts. Thus, at the end of the month there is no balance in such accounts. When classifying accounts by structure and purpose, these accounts are classified as a group of operating accounts. The procedure for recording transactions on such accounts is set out in paragraph 5.2.3.

At the end of the reporting period, the ending balance is displayed for all accounting accounts. Debit balances are recorded according to the asset items of the balance sheet, credit balances are recorded accordingly according to the liability items of the balance sheet. The total balances for assets and liabilities must be equal. The balance thus obtained at the end of the reporting period will become the basis for accounting in the next reporting period. From the 1st day of the month following the reporting month, the balance itself will no longer be the final balance, but the initial one.

The principle of drawing up account balances, drawing up a balance sheet, and continuity in the preparation of records is an important and necessary condition for accounting for any organization.

Introduction

In the process of economic activity at enterprises, many business transactions occur that change the balances of funds and their sources in the balance sheet.

This topic is relevant because... operational management of the organization in order to take appropriate management decisions causes the need to have continuous information about the state and movement of assets and the sources of their formation.

It is impossible to draw up a new balance sheet after each operation, therefore all business transactions are first reflected in the accounting accounts, since the balance sheet is drawn up on the 1st day of the month (quarter, year), it cannot be used to daily monitor changes occurring in the composition of property and liabilities enterprises, sources of their formation.

For current accounting and control, a system of accounting accounts is used.

A system of accounts is a method of economic grouping, current reflection and operational control of an organization’s assets and business operations.

Each account is designed to reflect a specific accounting object. Based on primary documents, the account accumulates and systematizes current data on homogeneous business transactions.

The work consists of an introduction, two parts and a list of references.

The concept of accounting accounts

In the production process, every day a large number of business transactions are carried out that require current reflection, for which special forms are used - accounting accounts, which are built on the principle of economic homogeneity.

Account-- the main unit of information storage, which, after summarizing all accounting information, is necessary for making management decisions.

Accounting accounts- is a way of reflecting, economic grouping and operational control of assets, capital, liabilities and business operations of an organization.

Accounting for funds and sources in accounting accounts is carried out continuously and consistently. Each accounting account has its own number and name, which shows what funds and processes are reflected in this account.

An account is opened for each type of economic funds and their sources. Each separate account records the initial state of the object being taken into account and its changes (operations), and therefore, at any point in time, it is possible to determine the new state of the object.

The accounts are in the form of a two-sided table. An increase in accounting objects in the accounts is shown separately from their decrease, therefore the accounts are divided into two parts: left and right. The left side of the account is called debit, right -- loan.

The account scheme is presented in table. 1, using the example of the “Materials” account.

Separate accounts are opened for each type of assets, capital and liabilities. The totals of records of the amounts of transactions on the debit or credit of an account are called turnover. The difference between the amounts indicated on one side of the account and those indicated on the other side is called the remainder, or balance.

Remains may be debit or credit depending on whether debit exceeds credit or vice versa.

In accounts reflecting assets, balances and increases in the reflected object are recorded as debits, and decreases as credits; in the accounts used to record capital and liabilities, balances and increases in the reflected object are credited, decreases are debited.

Table 1 - Accounting scheme “Materials”

As can be seen from the table check has two opposite sides, indicated by the terms “Debit” (D-t) and “Credit” (C-t).

By debit account reflect the receipt of materials, then for the loan - their expenditure.

Initial balance ( Sn= 125,000 rub.), and the final balance ( Sk- 375,000 rub.).

The amount of transactions during the reporting period is called account turnover. The account can have two turns - debit turnover (obd) And credit (Obk). In the example Obd= 1,000,000 rub., Obk= 750,000 rub.

Accounting accounts in relation to the balance sheet are divided into two groups: accounts for accounting for assets (asset accounts) and accounts for accounting for the sources of assets (source accounts).

Accounting- this is an orderly system for collecting, registering and summarizing information in monetary terms about the property, obligations of the organization and their movement through continuous, continuous and documentary accounting of all business transactions.

Accounting in accordance with the law on accounting can be maintained by: the chief accountant hired by the enterprise for employment contract, general director in the absence of an accountant, an accountant who is not the main one, or a third-party organization (accounting support).

Accounting objects

The objects of accounting are the organization's property, their obligations and business transactions carried out by organizations in the course of their activities.

Main tasks of accounting

The main task of accounting is the generation of complete and reliable information (accounting statements) about the activities of the organization and its financial status, necessary for internal users financial statements- managers, founders, participants and owners of the organization’s property, as well as external investors, creditors and other users of financial statements, on the basis of which it becomes possible:

prevention of negative results of the organization’s economic activities;

identification of on-farm supply reserves financial stability organizations;

monitoring compliance with legislation when the organization carries out business operations;

control of the feasibility of business operations;

control of the availability and movement of property and liabilities;

control over the use of material, labor and financial resources;

monitoring compliance of activities with approved norms, standards and estimates.

Basic elements of accounting method

Accounting problems are solved through the use of in various ways and techniques, the totality of which is called the accounting method, which includes the following main elements:

Documentation is a written certificate of a completed business transaction, giving legal force to accounting data;

Valuation is a way of expressing funds and their sources in monetary terms;

accounting accounts - a method of grouping the current reflection of property, liabilities and transactions;

Double entry is an interconnected reflection of business transactions on accounting accounts, when each transaction is simultaneously recorded as a debit to one account and a credit to another account for the same amount;

Inventory – checking the availability of property listed on the balance sheet of an organization, carried out by counting, describing, weighing, mutual reconciliation, evaluation of identified funds, and comparing the obtained data with accounting data;

Calculation – calculation of the cost per unit of products, works, services in monetary terms, that is, calculation of the cost;

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The organization's balance sheet provides generalized data on accounting objects as of a certain date. Operational management of an organization in order to make appropriate management decisions necessitates the need to have continuous information about the state and movement of assets and the sources of their formation. For this purpose, a system of accounts is used in accounting.

Accounting accounts are a method of economic grouping, current reflection and operational control over economic assets, sources of their formation and business operations.

Each account is designed to reflect specific accounting objects. On the basis of primary documents, accounts accumulate and systematize current data only on homogeneous business transactions.

Simplified, the account can be represented as follows:

Table 1. Account structure.

Account name

An account is a two-sided table that has two opposite sides, designated by the terms “Debit” and “Credit”. Debit and credit are words of Latin origin. Debit means “he owes.” That is, the debtor is the person who took out the loans, the debtor. Credit means “he believes, trusts,” therefore the lender is the lender, the person who lent a sum of money or some property. Currently, the terms debit and credit have lost their original meaning and are used only to designate the corresponding side of the accounting account.

For each accounting object, in particular, for each type of funds and their sources, separate accounts are opened. The movement of economic assets is shown in accounting as an increase (+) or decrease (-).

All accounts in relation to the balance are divided into two groups - active and passive. Active ones are intended to reflect the state and movement of property by composition and placement. They are located in the asset balance sheet and are therefore called active. Accounts intended to reflect the state and movement of economic assets according to the sources of their formation are called passive, since in the balance sheet they are shown in the liability side of the balance sheet. The division of accounts into active and passive reflects the organic connection of accounts with the balance sheet.

In active accounts, the debit side records the balance at the beginning of the month, transactions causing an increase in funds, and the balance at the end of the month. On the credit side, transactions that cause a decrease in business assets are recorded. When opening an account, first of all, the initial balance (i.e., balance) is recorded, and then the change in funds (sources), after which the final balance is determined.

In active accounts the balance is always debit. An increase in funds in active accounts is shown as a debit, and a decrease as a credit. The totals of records of transaction amounts for a month on the debit and credit of an account are called turnover. To determine the final balance (remains), the turnover reflecting the increase in funds (sources) is added to the initial balance, and then the turnover reflecting their decrease is subtracted. If there is no balance, the account is considered closed.

For example, active accounts include accounts “Fixed assets”, “Cash”, “Materials”, and passive accounts “Settlements with personnel for wages”, “Authorized capital”, “Reserve capital”, etc. The name of active accounts is often coincides with the name of the balance sheet asset items.

In passive accounts, the credit side records the balance of sources at the beginning of the month, transactions that cause an increase in sources of economic funds, and the balance at the end of the month, and on the debit side transactions that cause a decrease in sources are recorded. In passive accounts the balance is credit.

Passive accounts include, for example, the accounts “Settlements with suppliers and contractors” and “Authorized capital”. The ending balance is determined for each account at the end of the month.

The structure of active and passive accounts is given below.

table 2

But there are also active-passive accounts that have features of both active and passive accounts. In such accounts, the balance can be both debit and credit or both debit and credit (expanded balance). An example of an active-passive account with an expanded balance is the account “Settlements with various debtors and creditors.” Thus, in the account “Settlements with various debtors and creditors,” the debit balance shows the amount of receivables and is reflected in the liability side of the balance sheet.

It is impossible to determine the expanded balance in active-liability accounts in the usual manner; this requires analytical accounting data. Analytical accounting provides information on the status of settlements with each debtor (for example, with a buyer) and with each creditor (for example, a supplier of materials to an organization), i.e. the balance is displayed for each buyer and supplier separately, and then the total amount of receivables and payables is calculated.

Active-passive accounts belong to the group of complex accounts that require detailing and decoding in analytical accounting for each debtor (legal, to an individual) and the creditor.

The structure of an active-liability account with an expanded balance can be presented in Table No. 3.

Table 3. Active-passive account structure

For the accounting material assets They use a different form of account, into which, in addition to monetary measures, they enter natural indicators. This form is used mainly in analytical accounts.

Analytical accounts are accounts that are used to provide a detailed description of the object of observation. They open in the development of each synthetic account. Accounts in which the organization's property, its obligations and business processes are reflected in a generalized form are called synthetic. For example, these are accounts “Fixed assets”, “Payroll calculations”, etc.

Accounting carried out on synthetic accounts is called synthetic. The peculiarity of synthetic accounts is that they have a direct connection with the balance; entries on these accounts are made briefly.

Each business transaction recorded in the debit or credit of a synthetic account is reflected in the same amount, respectively, in the debit or credit of several analytical accounts opened in addition to its synthetic account.

Not all synthetic accounts require analytical accounting. Accounts that do not require such maintenance are called simple (“Cash Office”, “Current Account”, etc.), those requiring analytical accounting are called complex (“Settlements with accountable persons”, “Fixed Assets”, etc.).

Some complex synthetic accounts are directly related to analytical accounts, without any intermediate groups. Thus, in addition to the synthetic account “Settlements with accountable persons,” analytical accounts are opened for each accountable person. The same is the case with the “Payroll calculations” account.

However, such a simple construction of analytical accounting does not always provide the necessary indicators. Some synthetic accounts consist of several groups of analytical accounts. The first (after the synthetic account) groups of analytical accounting accounts are called subaccounts.

A subaccount is an intermediate accounting link between synthetic and analytical accounts. Each subaccount combines several analytical accounts, but they themselves, in turn, are combined into one synthetic account. Sometimes subaccounts are called second-order accounts, while synthetic accounts are called first-order accounts.

Thus, in the process of accounting, regardless of the method of processing, grouping, summarizing data and obtaining information, accounting can be carried out either according to the full scheme: synthetic accounts, sub-accounts, analytical accounts, or in any combination thereof.

It is also necessary to talk about the double entry method or the principle of duality. This principle is that when accounting, a business transaction affects not one, but two accounts. On one account the transaction is reflected as a debit, and on the other as a credit. For example, if an accountable person purchased materials, then this operation will be reflected in the debit of the “Materials” account and on the credit of the “Settlements with accountable persons” account. The relationship between two accounts when reflecting one financial transaction is called correspondence of accounts (accounting entry).

Control over business transactions is carried out using a system of accounting accounts. Accounting account is a way of grouping and reflecting the state and movement of funds of an enterprise. Accounts are opened for each homogeneous type of property in accordance with the classification of accounting objects - accounts “Cash”, “Authorized capital”, etc.

Accounts serve for separate accounting of an enterprise's economic assets and their sources and economic processes, which are grouped according to a certain criterion. Each balance sheet item corresponds to an accounting account with a name and a digital code - the account number (in records, instead of the name of the account, its code is indicated, which speeds up accounting).

The account has the form of a two-sided table showing the status of funds of a certain type and the business transactions carried out with it. The left side of the account is called debit– translated from Latin this means “he must”, the right one is called loan– translated from Latin this means “he believes.”

Due to the division of the balance sheet into assets And passive There are active and passive accounts. Active accounts take into account the property of the enterprise, passive accounts take into account liability accounts, they are intended to account for the sources of formation of economic funds.

The information is entered into the account as follows. The entry begins by indicating the initial balance. At the beginning of the reporting period (month) or as needed, an account is opened and the balance (balance at the beginning of the period) is recorded from the balance sheet. The balance is recorded on the side of the account on which the corresponding item appears in the bilateral balance sheet form. In active accounts, i.e. those in the asset balance, the balance is debit, and in passive accounts it is credit.

After opening an account, business transactions that are carried out with the group of funds corresponding to this account are recorded in it. Business transactions are recorded throughout the reporting period, and accounts are closed at the end of the reporting period.

What does it mean to “close an account”? This means calculating the account's debit turnover and credit turnover separately, and then displaying a new balance, which is called the final balance. In this case, the ending balance for a given period becomes the initial balance for the next one.

However, the presence of a balance is not typical for all accounts.

The purpose of the sides of the accounts (debit and credit) depends on whether the account is active or passive.

The difference is on which side of the account the balance is recorded. Transactions that increase the account are recorded on the same side as the opening balance, and transactions that cause the account to decrease are recorded on the opposite side. The ending balance is the sum of the beginning balance and the sum of all transactions that caused an increase in the account, minus the amount of transactions that resulted in a decrease in funds.

The amount of business transactions recorded in debit is called debit turnover (debit turnover). Loan turnover (credit turnover) is the sum of transactions recorded on the credit account.

In addition to these accounts, there are accounts that simultaneously reflect the property of the enterprise and the sources of its formation. These are so-called active-passive accounts.

There are two types of active-passive accounts: with a one-sided balance (debit or credit) and with a two-sided balance - debit and credit at the same time. An example of an account with a one-sided balance is the “Profit and Loss” account.

If income exceeds expenses, then the difference between them gives profit, so the account balance will be a credit one (profit is the source of property formation and is reflected in the liability side of the balance sheet). If income is less than expenses, then the difference between them represents a loss, and the account balance will be a debit.

An example of an active-passive account with a bilateral expanded balance is the account “Settlements with various debtors and creditors”. The debit balance of this account is accounts receivable, and the credit balance is accounts payable. Settlements with debtors and creditors are combined on one account so as not to open different accounts for organizations and institutions that can be either debtors or creditors.

In this account, debit entries can mean either an increase in accounts receivable or a decrease in accounts payable.