Financial account

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).

Journalizing

Main wikipage: Journalizing

Rules of debit and credit

Rules of debit and credit

Category	Type	Normal balance (or increase)	Decrease
Principal accounts	Assets	Debit	Credit
	Expenses
	Owner's Withdrawals
Beneficiary accounts	Liabilities	Credit	Debit
	Revenue
	Owner's Capital
Adjusting accounts	Any	Behave oppositely to the Accounts that they adjust

Main wikipage: Rules of debit and credit

• Principal accounts, which are assets, withdrawals, and expenses, are debited when they increase and credited when they decrease.
• Beneficiary accounts, which are liabilities, capital, and revenue, are debited when decrease and credited when they increase.

Adjusting accounts

Main wikipage: Adjusting account

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.