Understand the content of the accounting records

This classification shows that counted for a particular account, that is, which objects are recognized accounting on it, and therefore provides the necessary information on the status and changes in the composition of the object is taken into account. In its economic content accounts are divided into balance and off balance sheet. Balance sheet accounts are intended to reflect the elements of financial statements. According to the elements of financial statements are divided into permanent and temporary. The permanent balance sheet accounts include accounts to account for resources (assets), accounts for the accounting of external sources of education resources (liabilities); accounts to reflect their own sources of educational resources (equity). Consequently, as a permanent balance sheet accounts are accounts that included elements of balance. The composition of accounts, which take into account the bank's assets include cash, due from other banks, loans to business entities, securities held for trading, etc. Account to account for commitments include funds from other banks, customer accounts, subordinated debt. An example of their own capital may be called charter capital, reserve capital, profits and losses last year. Asset accounts - these are active accounts, reflecting the presence and changes of various assets of the bank. By the nature of the account to account for assets are active and always have a debit balance. The increase in assets is reflected in the debit and decrease - on the loan. Balance at end of accounting period shall be calculated as follows: Balance at beginning of accounting period (debit) + Debit turnover - turnover credit. Account liabilities - are passive accounts, reflecting the presence of and changes in the debt of the bank. Accounts for the accounting of goiters' Yazan passive and can only have a credit balance. Increase in the liability on the loan and repayment - debit. Balance at end of accounting period shall be calculated as follows: Balance at beginning of accounting period (the loan) + credit turnovers - Debit turnover. Account of equity - it is also: passive accounts to reflect changes in equity. Accounts for the accounting of capital - and also passive: have a credit balance. Topic: The role of accounting in the management of the bank, its types and purpose | Tags: content