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, 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).


Journalizing

Main wikipage: Journalizing

Rules of debit and credit

Rules of debit and credit
Category Type Normal balance (or increase) Decrease
Asset-origin accounts Assets * Debit Credit
Expenses *
Owner's Withdrawals
Equity-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

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.