Unlike other companies make daily bank balance

The period under review, in practice, also called the accounting period. In the formation of the Chart of Accounts bank seeks to maximize its simplified for better and at the same time ensure that it is highly informative for both managers and external users. Note the basic requirements to be met by the chart of accounts of commercial banks: a detailed and complete records of all banking business operations, the timely processing and accumulation of detailed information display of accurate and meaningful information for all users. Accounts in the chart of accounts grouped into nine classes. The structure of the Chart of Accounts can be represented in a diagram (Figure 1.6). The structure of the Chart of Accounts can be divided into three parts, which are logically related: balance sheet portion; in the income and expenses; off-balance sheet portion. The balance sheet portion includes the first five classes (from first to fifth) accounts. Account the first - fourth grade designed for accounting for assets and liabilities, and bills account for fifth-grade sources of equity capital. Based on the accounts of the first five classes is a balance sheet of a commercial bank. The second part covers the classes of income and expenses (sixth and seventh grades). On the basis of the accounts of the sixth and seventh grades prepared a report on financial results. In terms of bank accounts as opposed to companies in the same class together account a variety of patterns. Each class includes both active and passive accounts. The third part contains the class of off-balance sheet accounts (ninth grade), the accounts of which are taken into account off-balance sheet operations of the bank. To the special features of off-balance sheet transactions should include the fact that at the time of the commission does not change the financial condition of the bank. For example, a bank credit line in favor of the company is not accompanied at the same time giving him a loan and therefore does not affect the change in financial position of the bank. Topic: The role of accounting in the management of the bank, its types and purpose | Tags: balance