Difference between revisions of "Financial account"

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(Rules of debit and credit)
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==Rules of debit and credit==
 
==Rules of debit and credit==
 
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Revision as of 02:03, 9 December 2018

A financial account (or, simply, account; hereinafter, the Account) is an accounting device used in bookkeeping to record increases and decreases of business transactions relating to assets, liabilities, capital, withdrawals, revenue, and/or expenses. In other words, the Account is the concept that is used to record financial entries of a similar nature such as cash increases (debits) and decreases (credits) or, vice versa, accounts payable increases (credits) and decreases (debits).

Rules of debit and credit

Main wikipage: Rules of debit and credit
Category Type Normal balance (Increase) Decrease
Principal Assets Debit Credit
Expenses Debit Credit
Withdrawals Debit Credit
Auxiliary Liabilities Credit Debit
Capital Credit Debit
Revenue Credit Debit

Chart of accounts

Main wikipage: Chart of accounts

Every organization can establish its own list of account titles, which is called the chart of accounts.