For the self-accounting has long been thought up a balance. Balance - this balance, its meaning is that nothing in the enterprise is not going away, and assets always equal liabilities.
The balance consists of a summary of debit and credit of accounts for the period.
What is credit and debit
Credit and debit (the emphasis is always onthe first syllable) - concepts that are used in accounting for the observation of the economic processes of the company. Accounting records is very much more than a hundred, they are designed for that would reflect the company's ability to live every transaction in more detail. Each account has its own number and name.
Under the debit refers to all assets of the company, thethere than it has to date. It may be money in bank accounts, cash on hand, the sum of the total value of materials in warehouses, the amount of fixed assets, debt counterparties. The higher the assets of the organization, the more successful and larger than she thought.
Liabilities or credit turnover - it is a long andsources of assets. For debts include: arrears in the payment of wages, payable to counterparties, depreciation, debt founders or owners of the company for the distribution of profits. Sources of assets - is, for example, the charter or other capital.
What is the use of debit and credit
Recording is carried out separately for each account. It looks like this: in the context of the debit account is written on the left side and the right loan. Every transaction is recorded in the wiring. One or another account can be used frequently during the reporting period. Amounts are recorded in columns debit or credit, depending on the type of operation. By the nature of the account balance is divided into active, passive, active-passive.
Increasing debit turnover in the accounts of active or active-passive means an increase in the organization of the property or the availability of rights requirements. Increasing loan turnover, on the contrary, shows their reduction.
The transactions are recorded on the contrary passive accounts. These accounts are meant to be seen, how and by what means did the organization.
At the end of the debit and credit turnoverssummed separately. It turns out the final closing balance. If the amount of debit and credit the same, the account is closed, as is zeroed. There are a number of accounts that are sure to have a zero ending balance, mainly in the accounts to which the costs are written off.
The raison d'être of the debit and credit reflectsdouble entry. The bottom line is the title - a double. That is, a single operation is necessary to record twice using two accounts. In the first analysis, the transaction amount is debited on the second - in the loan balance is obtained. Therefore, a balance must always converge. If the total debit turnover does not converge with a total turnover of credit, somewhere admitted accounting error.