Difference between revisions of "Financial account"
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![[Withdrawals]] | ![[Withdrawals]] | ||
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| − | |rowspan="3"|[[ | + | |rowspan="3"|[[Beneficiary account|Beneficiary<br>account]]s |
![[Liabilities]] | ![[Liabilities]] | ||
|rowspan="3"|Credit||rowspan="3"|Debit | |rowspan="3"|Credit||rowspan="3"|Debit | ||
| Line 24: | Line 24: | ||
![[Capital]] | ![[Capital]] | ||
|- | |- | ||
| − | |[[ | + | |[[Adjusting account|Adjusting<br>account]]s |
!Any | !Any | ||
| − | |colspan="2"|Behave oppositely to their | + | |colspan="2"|Behave oppositely to their corresponding accounts |
|} | |} | ||
:''Main wikipage: [[Rules of debit and credit]]'' | :''Main wikipage: [[Rules of debit and credit]]'' | ||
*[[Principal account]]s, which are [[assets]], [[withdrawals]], and [[expenses]], are debited when they increase and credited when they decrease. | *[[Principal account]]s, which are [[assets]], [[withdrawals]], and [[expenses]], are debited when they increase and credited when they decrease. | ||
| − | *[[ | + | *[[Beneficiary account]]s, which are [[liabilities]], [[capital]], and [[revenue]], are debited when decrease and credited when they increase. |
==Chart of accounts== | ==Chart of accounts== | ||
:''Main wikipage: [[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]]. | Every [[organization]] can establish its own list of account titles, which is called the [[chart of accounts]]. | ||
Revision as of 19:39, 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
| Category | Type | Normal balance (or increase) | Decrease |
|---|---|---|---|
| Principal accounts |
Assets | Debit | Credit |
| Expenses | |||
| Withdrawals | |||
| Beneficiary accounts |
Liabilities | Credit | Debit |
| Revenue | |||
| Capital | |||
| Adjusting accounts |
Any | Behave oppositely to their corresponding accounts | |
- 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.
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.
