Accounting Balance and Accounting Need

May 24, 2018 | By admin4u | Filed in: Uncategorized.

Balancing Accounts

If you want to balance only one account, the two pages are added, and if the total of the two pages is unequal, the difference will be on the smaller side of the page. This will equalize both sides. The sum of the inserted difference is referred to as the "balance" of the account. The details column is c / d as a balance sheet (performed). In the subsequent period, the Bid is known (broken down). If the amount of the credit side of the account is smaller, the balance on the credit side will be added with the words "By Balance c / d". This balance is known as Debt Balance, and after the account has been closed, the "Balance bid" is displayed on the debit page. Likewise, if the amount of the debit side of the invoice is smaller, add the balance "c / d balance" to the debit page. This balance is known as the Credit Balance and after the account has been closed, it appears on the credit side with the words "By Balance bid".

Personal Invoices

It is worth updating your memory and reminding yourself that personal accounts are linked to individuals and business organizations (company, company, company, etc.) and the rule: The buyer must be billed and the payer pay. Now, if at a certain point in time the business wants to know the amount you have to pay for that person (business) or that person has to pay, you have to balance the person's account. The debit balance of the personal account means that the person is the debtor of the business, that is, the amount of the person's equivalent to the deal's balance or the amount that the balance attaches to the business as a business. Likewise, the balance of the loans on the personal account means that the person is the creditor of the business, that is, the enterprise represents an amount equal to its balance or the amount represented by the balance is attributable to "business". [19659003] Genuine Account

These bills are property or possessions or rights. The rule is, "What we are getting into is billed, and what goes out must be approved." Thus, all revenue must be credited to the debit side and credit side. These accounts must have a "debit balance" at a given time, which represents the value of the item on the invoice. At the end of the year (usually) or at any other time when the financial position of a business is to be verified, these accounts are balanced. These balances are shown on the asset side of the positions or on the balance sheet. These accounts have a "debit balance" that represents the "book value", "depreciated value" or "continuous business value" of an enterprise's assets as at that time.

Nominal Values ​​

These are the accounts that show the leaders of different spending and income sources. At the end of a specified period (usually one year), these accounts are closed for transfer to the final account, ie a trading or income statement.

Need for Accounting

Accounting maintenance is mandatory in all accounting systems.

(1) Transactions relating to a particular person, item or item or income are grouped in a particular place on the relevant account

(2) the balance is balanced over time and reflects the net position of the account . For example, how much is the due date of the customers, how much is it to be paid to a supplier or how much is the value of the total purchase or what is the wage bill?

(3) Accounting is the staircase to test probation – which tests the arithmetic accuracy of accounting books

(4) Since registered entries

(5) The log or all entries in all journals have their destination library.

(6) The book is a "department store" which subsequently serves to prepare final accounts and financial statements.

Open and publish the post. For an existing business, at the end of the previous books, an entry should be included in the new books on the basis of the balance produced at the end of the previous year to include all the tools and resources in the new books: this is the so-called opening entry.

Source by Anil Kumar Gupta


Leave a Reply

Your email address will not be published. Required fields are marked *