Difference between revisions of "Financial account"

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(Rules of debit and credit)
(Journalizing)
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Revision as of 11:05, 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
Principal
accounts
Assets Debit Credit
Expenses
(Owner's) withdrawals
Beneficiary
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.