Difference between revisions of "Financial account"

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(Rules of debit and credit)
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|colspan="4" style="text-align:left; background-color:#fff;"|* Besides [[Income Summary]], increase represents [[normal balance]]<br>** [[Adjusting account]]s behave oppositely to the ''Accounts'' that they adjust
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|colspan="4" style="text-align:left; background-color:#fff;"|* Besides [[Income Summary]], increase represents [[account normal balance|normal balance]]<br>** [[Adjusting account]]s behave oppositely to the ''Accounts'' that they adjust
 
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::''Main wikipage: [[Rules of debit and credit]]''
 
::''Main wikipage: [[Rules of debit and credit]]''

Revision as of 01:29, 18 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 related to Assets, Liabilities, Owner's Capital, Owner's Withdrawals, Fiscal 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 (is debited) and decreases (is credited) or, vice versa, Accounts Payable increases (is credited) and decreases (is debited).


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Account. An accounting device used in bookkeeping to record increases and decreases of business transactions relating to individual assets, liabilities, capital, Owner's Withdrawals, revenue, expenses, and so on.

Journalizing

Main wikipage: Journalizing

Rules of debit and credit

Rules of debit and credit
Category Type Increase * Decrease
Asset-origin accounts Assets ** Debit Credit
Expenses **
Owner's Withdrawals
Equity-origin accounts Liabilities ** Credit Debit
Fiscal Revenue **
Owner's Capital
* Besides Income Summary, increase represents normal balance
** Adjusting accounts 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.

Related concepts

Related coursework