Difference between revisions of "Financial account"
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| − | 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]], [[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 (debits) and decreases (credits) or, vice versa, [[Accounts Payable]] increases (credits) and decreases (debits). | + | 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 (debits) and decreases (credits) or, vice versa, [[Accounts Payable]] increases (credits) and decreases (debits). |
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|rowspan="3"|Credit||rowspan="3"|Debit | |rowspan="3"|Credit||rowspan="3"|Debit | ||
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| − | ![[Revenue]] * | + | ![[Fiscal Revenue]] * |
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![[Owner's Capital]] | ![[Owner's Capital]] | ||
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::''Main wikipage: [[Rules of debit and credit]]'' | ::''Main wikipage: [[Rules of debit and credit]]'' | ||
:*[[Resource-origin account]]s, which include [[Assets]], [[Owner's Withdrawals]], and [[Expenses]], are debited when they increase and credited when they decrease. | :*[[Resource-origin account]]s, which include [[Assets]], [[Owner's Withdrawals]], and [[Expenses]], are debited when they increase and credited when they decrease. | ||
| − | :*[[Claim-origin account]]s, which are [[Liabilities]], [[Owner's Capital]], and [[Revenue]], are debited when decrease and credited when they increase. | + | :*[[Claim-origin account]]s, which are [[Liabilities]], [[Owner's Capital]], and [[Fiscal Revenue]], are debited when decrease and credited when they increase. |
===Adjusting accounts=== | ===Adjusting accounts=== | ||
Revision as of 20:30, 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 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 (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 Fiscal Revenue * Owner's Capital * Adjusting accounts behave oppositely to the Accounts that they adjust
- Main wikipage: Rules of debit and credit
- Resource-origin accounts, which include Assets, Owner's Withdrawals, and Expenses, are debited when they increase and credited when they decrease.
- Claim-origin accounts, which are Liabilities, Owner's Capital, and Fiscal 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.
