Difference between revisions of "Financial account"
(→Rules of debit and credit) |
(→Rules of debit and credit) |
||
Line 27: | Line 27: | ||
![[Owner's Capital]] | ![[Owner's Capital]] | ||
|- | |- | ||
− | |[[Adjusting | + | |[[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
- 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.