Difference between revisions of "Financial account"
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![[Normal balance]] (or increase)!!Decrease | ![[Normal balance]] (or increase)!!Decrease | ||
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| − | |rowspan="3"|[[Resource | + | |rowspan="3"|[[Resource-origin account]]s |
![[Assets]] | ![[Assets]] | ||
|rowspan="3"|Debit||rowspan="3"|Credit | |rowspan="3"|Debit||rowspan="3"|Credit | ||
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![[Owner's drawings|Owner's Withdrawals]] | ![[Owner's drawings|Owner's Withdrawals]] | ||
|- | |- | ||
| − | |rowspan="3"|[[Claim | + | |rowspan="3"|[[Claim-origin account]]s |
![[Liabilities]] | ![[Liabilities]] | ||
|rowspan="3"|Credit||rowspan="3"|Debit | |rowspan="3"|Credit||rowspan="3"|Debit | ||
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::''Main wikipage: [[Rules of debit and credit]]'' | ::''Main wikipage: [[Rules of debit and credit]]'' | ||
| − | :*[[Resource account]]s, which are [[assets]], [[withdrawals]], and [[expenses]], are debited when they increase and credited when they decrease. | + | :*[[Resource-origin account]]s, which are [[assets]], [[withdrawals]], and [[expenses]], are debited when they increase and credited when they decrease. |
| − | :*[[Claim account]]s, which are [[liabilities]], [[capital]], and [[revenue]], are debited when decrease and credited when they increase. | + | :*[[Claim-origin account]]s, which are [[liabilities]], [[capital]], and [[revenue]], are debited when decrease and credited when they increase. |
===Adjusting accounts=== | ===Adjusting accounts=== | ||
Revision as of 18:58, 11 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).
Journalizing
- Main wikipage: Journalizing
Rules of debit and credit
Rules of debit and credit Category Type Normal balance (or increase) Decrease Resource-origin accounts Assets Debit Credit Expenses Owner's Withdrawals Claim-origin accounts Liabilities Credit Debit Revenue Owner's Capital Adjusting
accountsAny Behave oppositely to the Accounts that they adjust
- Main wikipage: Rules of debit and credit
- Resource-origin accounts, which are assets, withdrawals, and expenses, are debited when they increase and credited when they decrease.
- Claim-origin 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.
