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 related to Assets, Liabilities, Owner's Capital, Owner's 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 at Bank 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 accounts behave oppositely to the Accounts that they adjust

Main wikipage: Rules of debit and credit

• Resource-origin accounts, which include Assets, Owner's Withdrawals, and Expenses, are debited when they increase and credited when they decrease.
• Claim-origin accounts, which are Liabilities, Owner's 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.