Accounting is a continuous andcontinuous recording of its activities of the organization on the basis of primary documents and registration of economic processes in monetary terms. All objects of accounting are conditionally divided into two parts: assets (funds that belong to the enterprise) and liabilities (sources of these funds). Knowledge of the chart of accounts is the basis of accounting. All transactions are reflected in the accounting entries. So the acquisition of fixed assets, the receipt of money on the settlement account is reflected in the debit, that is, there is an increase in assets. The decrease in assets is shown on the credit of the accounts. The increase in liabilities is reflected in the loan, and the decrease in the debit.
All postings are made based on instructionsThe Ministry of Finance and the Tax Service and only if there are primary documents (invoices, contracts, invoices). Understand the basics of accounting is necessary for the daily work of all financiers. When creating postings, it is important to logically take into account that the increase in the organization's (assets) funds should be put on a debit, and their decrease - on a loan. An increase in the sources of enterprise funds (liabilities) is put on a loan, and a decrease in sources is debited.
Basics of accounting are two principles:
- Principle of balance
The principle of accounting balance is based on the formula:
ASSETS = LIABILITIES + OWN CAPITAL
ASSETS are everything that an enterprise has and uses to make a profit.
OBLIGATIONS - this is all that the company owes to external investors, suppliers, government organizations and the budget.
OWN CAPITAL is the part thatIt remains when deducting liabilities from assets. Thus, it is shown that OBLIGATIONS are repaid in the first place during the liquidation or closure of the enterprise, and each owner can dispose of his OWN CAPITAL last.
- The principle of double recording
Все финансовые сделки имеют зачетные стороны, но the principle of balance must always be respected. For example, you have 100,000 rubles, and you need to purchase equipment for 300,000, then you take out a loan from the bank for the missing amount.
A (100,000) = O + SC (100,000)
In accounting, this operation is executed by debit to the cashier-200,000 rubles and the loan in the obligation to the bank - 200,000 rubles.
А (100000 + 200000) = О (200000) + СК (100000) Thus, the principle of balance is preserved.
Any financial statements are provided forinformation of external users of the enterprise. Banks and suppliers will find out how creditworthy the enterprise is, investors want to find out how profitable the enterprise is, and the state uses its reports to collect taxes to the budget. The compilation of financial statements by the standard forms helps the manager to manage the enterprise and also represents the basis of accounting. The most important forms of financial reporting are the balance sheet, balance sheet, cash flow statement, and profit and loss statement.
Special mention should be made of expenses in the accountingaccount. Costs are primarily a decrease in economic gain in a certain period, as a result of an outflow of assets or an increase in liabilities, which leads to a decrease in capital.
An accountant should not be confused with costs and expensesaccounting and always understand their differences during work and be able to competently defend the point of view before the audit bodies. Costs never reduce OWN CAPITAL in contrast to expenses. Costs the company bears a certain period, then these costs are converted to assets or expenses. Costs depend on costs and always affect the profit of the enterprise. But the costs themselves do not affect profits.
I will show you with examples:The repayment of accounts payable leads to a decrease in ASSETS (money paid), but at the same time the LIABILITIES (debt repaid) have decreased, which means that OWN CAPITAL has not changed. Therefore, it is wrong to consider this expense.
Write-off the same receivablesthe expiration of the statute of limitation of three years is an expense, since there is a decrease in ASSETS without a change in OBLIGATIONS, which means that OWN CAPITAL decreases. Similarly, you can recognize the expense of negative exchange rate difference or the recognition of fines, penalties, state fees.
The cost of renting the property is an expense at the end of the period, the cost of production, which closed and did not give profit, can also be considered an expense.
That's all the basics of accounting,based on logic, and not on special instructions, manuals, regulations and other regulatory documents. In accounting it is necessary to think logically, and not just blindly follow the requirements.
