Difference between revisions of "Financial account"

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(Rules of debit and credit)
(Rules of debit and credit)
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![[Owner's Capital]]
 
![[Owner's Capital]]
 
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|[[Adjusting account|Adjusting<br>account]]s
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|[[Adjusting account]]s
 
!Any
 
!Any
 
|colspan="2"|Behave oppositely to the ''Accounts'' that they adjust
 
|colspan="2"|Behave oppositely to the ''Accounts'' that they adjust

Revision as of 18:59, 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.