Difference between revisions of "Financial account"

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(Rules of debit and credit)
(Journalizing)
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![[Normal balance]] (or increase)!!Decrease
 
![[Normal balance]] (or increase)!!Decrease
 
|-
 
|-
|rowspan="3"|[[Resource account|Resource<br>account]]s
+
|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&nbsp;Withdrawals]]
 
![[Owner's drawings|Owner's&nbsp;Withdrawals]]
 
|-
 
|-
|rowspan="3"|[[Claim account|Claim<br>account]]s
+
|rowspan="3"|[[Claim-origin account]]s
 
![[Liabilities]]
 
![[Liabilities]]
 
|rowspan="3"|Credit||rowspan="3"|Debit
 
|rowspan="3"|Credit||rowspan="3"|Debit
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|}
 
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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
accounts
Any Behave oppositely to the Accounts that they adjust
Main wikipage: Rules of debit and credit

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.