Difference between revisions of "Financial account"
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| − | |rowspan="3"|[[ | + | |rowspan="3"|[[Resource account|Resource<br>account]]s |
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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. |
:*[[Claim account]]s, which are [[liabilities]], [[capital]], and [[revenue]], are debited when decrease and credited when they increase. | :*[[Claim account]]s, which are [[liabilities]], [[capital]], and [[revenue]], are debited when decrease and credited when they increase. | ||
Revision as of 14:00, 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
accountsAssets Debit Credit Expenses Owner's Withdrawals Claim
accountsLiabilities Credit Debit Revenue Owner's Capital Adjusting
accountsAny Behave oppositely to the Accounts that they adjust
- Main wikipage: Rules of debit and credit
- Resource accounts, which are assets, withdrawals, and expenses, are debited when they increase and credited when they decrease.
- Claim 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.
