His left and right sides must always be equal

In accounting assets, liabilities and shareholders' equity is used to describe the financial condition of the bank (financial position). Most business transactions are the result of actions of managers and employees of the bank, which conclude transactions on behalf of the bank engaged in manufacturing operations, etc. Examples of such operations is to raise funds in deposits, loans, purchase securities settlement activity on behalf of clients. For example, the involvement of cash in the deposit of an individual leads to a bank cash (asset), while he has a duty to the depositor (liabilities). For a loan the bank receives income in the form of interest payment by the borrower for the loan. The consequence of this is a business transaction, on the one hand, the increase in bank funds (assets), and on the other - the growth of capital by the founders of revenues. But paying interest to depositors at the bank attracted deposits, by contrast, leads to a decrease as cash (asset), and as a consequence of capital expenditure. However, the signing of an agreement only on the bank's intention to give the company credit no change in financial condition does not cause as not accompanied by any movement of funds or other financial instruments. In other words, the criterion to determine whether to display or not display a business transaction in the financial accounting - this revealing the effects of this operation. So, we come to the conclusion that the reflection in the financial accounting is subject only to such business operation, with consequences that lead to changes in the composition of assets, liabilities and capital, ie in the financial condition of the bank. In order to detect the presence of changes in the structure of assets, liabilities and equity, economic (banking) operation appropriate to explore and work in the accounting system. Processing information about the business operations of the bank by means of generally accepted accounting tools. They are known for the general course of accounting. These include: documentation, inventory, evaluation and recognition of elements of financial statements, chart of accounts, double entry, reporting. All the tools do not exist in isolation, ie autonomously, and are closely linked. Features of the technology of accounting at the bank and the use of its individual elements will discuss later, but first find out by what means the financial information. Topic: The role of accounting in the management of the bank, its types and destination