Off-balance sheet accounts

The accounts of the first category are designed for economic consideration on the content objects: solid potential liability and potential claims of the bank. Hard to call because the bank can not withdraw from the agreement, where such obligations and requirements are provided unilaterally, and avoid penalties in case of failure. Due to the fact that the recording of transactions in off-balance sheet accounts is the method of double entry, it is necessary to determine the criteria by which to determine the nature of the account. The nature of the account is determined depending on how this bill goes to the balance in case the Bank of its obligations or requirements. Characterization of accounts - asset or liability - is defined as off-balance-sheet account - active, if his transfer to the balance of balance account is debited. For example, account number 9020, "Guarantees on loans to customers" - active, because the client would be insolvent, the bank will be forced to pay the guarantee provided by the balance and debetuvatime "Doubtful debts paid on guarantees", off-balance-sheet account - passive, if the translation balance credited to his account balance. For example, account number 9110 "Liabilities on loans obtained from banks" - passive, because if the bank will use, for example, the credit line, it will credit an account balance in "Due to banks' first-class. The second category of off-balance sheet accounts is used to provide control over the accuracy and timeliness of operations, balance sheet accounts. All such accounts are considered active. Examples of these accounts is that "clients' securities in trust," "settlement documents on factoring operations." To apply the method of double entry of off-balance accounts used off-balance Rahu-technical evaluations, which is called the counter. It is a counter to any off-balance sheet accounts and has the character of the active-passive. Consider explaining to the use of double-entry method for off-balance sheet accounts. If the bank gave the customer a guarantee, then to account for off-balance sheet transactions using this posting: D-* t 'guarantees to customers, "* K-r" Kontrrahunok. " Topic: The role of accounting in the management of the bank, its types and purpose | Tags: Off-balance sheet, chart of accounts