Almost everyone has heard of the term balance. What this is, of course, is known to all accountants and economists. But for most ordinary people this word is associated only with the concept of “difference”. The term, which is heard by everyone, is one of the main ones. In the most general sense, it really means the difference between receipts of funds and all expenses for a certain period of time. But this concept is actually much broader.
Balance is an Italian word that entered Russian as an accounting term back in the nineteenth century. Literally it is translated as “calculation”, “remainder”, “reckoning”. In the economic sense, the word meant the difference between the amount of debit (receipt account) and credit (expenditure account). By the twentieth century, the meaning of the term had expanded significantly, going beyond the scope of accounting alone. And at the end of the century it had already begun to be used in a figurative sense.
A debit balance is a situation in which debit exceeds credit, that is, it shows the balance sheet asset for a given type of business asset at a certain point in time.
Credit is a situation in which the credit is greater than the debit, which shows the state of the sources of funds used to maintain economic activity, and is reflected in
When the difference between debit and credit is zero, the account is closed.
In practice, as a rule, not everything from the moment of establishment of an enterprise or company is analyzed, but only for a certain period, called the reporting period (month, quarter, etc.). In this regard, the following concepts are distinguished.
The opening balance (incoming) is the balance of a certain account at the beginning of the period. Calculated based on data from previous operations.
The ending (opening) balance is the account balance as of the end date of the period. It is calculated as the sum of the opening balance and all turnover for the period.
Balance for a period is the final result of all transactions performed during a specific period.
Credit (or debit) turnover for a period - the total of accounts is calculated only for the required period.
Foreign trade relations are often viewed as the sum of exported and imported goods over a certain period. In this aspect, there are several varieties of it.
The trade balance is the result of calculating the difference in the value of exports and imports. It is believed that a negative indicator is a bad trend, since it means that the country has a situation in which the market is flooded with imported products, which inevitably leads to the infringement of the interests of domestic producers. However, in practice this is not always the case. For example, the United States, with such indicators, runs its economy quite successfully, being a standard of economic prosperity and stability for the whole world. They have learned to use other tools to resolve such situations.
The balance of payments is the result of calculating the difference between receipts from abroad and payments abroad. A positive indicator means the excess of cash receipts from outside over payments in the opposite direction. A negative indicator indicates that payments from the country exceed money inflows into the country. This means a gradual decrease in the state's foreign exchange reserves. This situation can only be avoided if such calculations are made exclusively in the national currency of the country.
Balance- this is the difference between debit and credit turnover on a separate account.
Account balance
This is the difference between the debit and credit entries in the account at the end of the reporting period. Applies to many related accounts, such as those of banks, credit card companies, brokerage firms and large stores, and is also used in the accounting system. The same account may have a debit or credit net balance, depending on which party to the transaction you are.
Debit balance
This is the balance of the client’s funds as a debit to the bank account. Serves as an indicator of the client’s need to raise additional funds. The client is allowed to have a debit balance on his current account with credit institutions in the form of an overdraft, when, without opening a new current account, he receives the right to additional payment for settlement documents at the expense of the bank’s resources.
These agreements stipulate the maximum amount of the debit balance (debt limit), the period and procedure for reporting on reporting dates. The presence of a debit balance in active bank accounts indicates the normal state of business in the bank.
Credit balance
1) an accounting term meaning the excess of the total amounts on the credit of an account in comparison with the debit. It is shown, as a rule, in the liability side of the balance sheet;
2) in exchange transactions: debt of a broker or dealer to a client.
Negative balance
A negative, red balance means an excess of expenses over receipts.
Positive balance
A positive balance means the excess of revenues over costs.
Synonyms
Was the page helpful?
More found about balance
- Research of non-current assets of an enterprise for the purpose of financial analysis This is a list of balances using the double entry system for a certain period of time. Initially, the balance sheet was not built as a report
- The need to take into account other income and expenses in marginal analysis. Such reasoning is correct if you do not take into account the balance of other income and expenses. In actual practice, many enterprises have a negative balance
- Analysis as a stage of the audit of income tax calculations PBU 18 02 reflection of deferred tax assets and liabilities in the balance sheet is possible in two ways: 2 expanded amount in the asset and liability of the balance sheet balanced rolled up amount in the asset or liability of the balance sheet Reflection of the balanced amount in the balance sheet
- Balance of payments The difference between the value of these payments is the balance of payments. The balance of payments can be positive and negative, which greatly affects
- Features of the formation of financial results in the accounting of agricultural organizations Then the balance calculated in subaccount 90.9 Profit and loss from sales is written off to account 99 Profit and
- “Balanced” approach to accounting for the disposal of fixed assets Balanced approach to accounting for the disposal of fixed assets VA Sitnikova Candidate of Economic Sciences Associate Professor
- Analysis of the creditworthiness of small enterprises by a bank credit expert The amount of funds in bank accounts is determined according to the balance sheet, account 51 Current accounts or according to bank statements as of the balance sheet date Creditor bank
- Methodology for analyzing accounts receivable and accounts payable according to accounting (financial) statements Table 3 contains all available accounts receivable items and all available accounts payable items, the total volumes of accounts receivable and accounts payable are determined, after which they are compared and the passive or active balance of accounts receivable and accounts payable is determined debts Passive balance is the excess of accounts payable over accounts receivable
- The procedure for analyzing deferred tax assets, deferred tax liabilities and assessing their impact on the financial condition of the organization CSO TOTAL Passive balance Active balance BALANCE BALANCE BALANCE Based on this thesis, the most optimal situation should be considered equality
- Financial results of the enterprise
- Turnover sheet The turnover sheet is compiled at the end of the month based on account data on balances at the beginning and end of the month and turnover for the month. Turnover sheets are compiled by account
- Financial stability of the company: problems and solutions of PJSOC Bashneft for 2015, it can be concluded that such an indicator as the balance of cash flows for the reporting period or FCF is not a target indicator for this period
- Profit assessment The accounting profit of an enterprise, profit before tax, is calculated as the sum of profit from sales, the balance of operating income and expenses, the balance of non-operating income and expenses, Profit before tax, Profit loss
- Monitoring and analysis of the state and cash flow of an enterprise based on financial statements Cash flow 2010 2011 inflow outflow balance of cash flows inflow outflow balance of cash flows amount weight amount ud weight amount ud
- Theoretical and practical aspects of internal audit of receivables and payables in trade organizations Reconcile the balance at the beginning and end of the audited period on the balance sheet page 1230 with the General Ledger
- Errors in accounting (financial) statements: classification and correction Adjustment of opening balances for the corresponding items of assets and liabilities of capital at the beginning of the earliest reporting period presented
- Management accounting of cash flows Opening balance of cash flows Operating activities 11000 Postullenil from operating activities 11100 Sales proceeds
- Methodology for analyzing the consolidation of a cash flow statement This is evidenced by a positive net balance for operating activities, which also increases significantly as a result of growth in profits and
- Business transaction For active accounts, the balance at the beginning of the month of the year is always a debit increase shown in debit, a decrease in credit
- Checking the quality of the cash flow statement in Russian companies At the first stage of the proposed methodology, it is recommended to begin assessing the quality of the cash flow statement on the basis of data on the balance of the company’s total cash flows for the reporting period as the overall summary of the report, without highlighting
“Debit” and “credit” are words of Latin origin. Translated into Russian, the word “debit” means “he owes”, hence the debtor is a debtor or borrower. The word “credit” means “he believes, trusts”, hence the creditor is the lender, i.e. a person who has given money or other valuables to another person.
Nowadays, the words “debit” and “credit” have become simple terms denoting the sides of an account (debit is the left side of the account, credit is the right side).
“Balance” is a word of Italian origin, meaning “calculation”, used to indicate the difference between debit and credit.
Recording in accounts begins with the indication of the initial balance (balance). The accounts then reflect all transactions that cause changes in opening balances. Amounts that increase the initial balance are written on the balance side, and amounts that decrease the initial balance are written on the opposite side. If you add up the sums of all transactions recorded on the side of the account, you get the account turnover. The total amount recorded on the debit side of the account is called debit turnover, and on the credit side of the account - credit turnover. When calculating revolutions, the initial balance is not taken into account. The final remainder is written on the same side as the initial remainder.
Onactive accounting accounts keep records of the movement of the enterprise's assets, i.e. availability, receipt and disposal of economic assets. Active account scheme
|
Opening balance - balance (availability) of economic assets at the beginning of the reporting period | |
|
increase economic assets during the reporting period |
decrease economic assets during the reporting period |
|
Final balance - the balance of economic assets at the end of the reporting period |
Onpassive Accounting accounts keep records of the sources of formation of economic assets. By analogy with active accounts, we can say that passive accounts keep records of the movement of the enterprise's liabilities. The main liabilities or sources of formation of economic assets include all types of capital, profits and liabilities of the enterprise.
Passive account scheme
|
Initial balance - the balance of sources of formation of economic assets at the beginning of the reporting period |
|
|
Debit turnover - the sum of business transactions that cause decrease |
Loan turnover is the amount of business transactions that cause increase sources of economic assets during the reporting period |
|
Final balance - the balance of sources of economic assets at the end of the reporting period |
Active accounts have the following features:
they reflect the presence and movement of economic assets and property of the enterprise;
the opening balance is always a debit balance and shows the availability of funds at the beginning of the reporting period;
debit turnover reflects the receipt of funds;
loan turnover shows the outflow of funds;
The final balance is always a debit balance and shows the balance at the end of the reporting period.
The final balance is calculated using the formula:
WITH To = C n + O d - ABOUT To
Passive accounts also have the following features:
on passive accounts, records are kept of the sources of formation of the enterprise’s economic assets, i.e. capital and liabilities (debt);
the opening balance is always a credit balance and shows the amount of capital or the presence of liabilities of the enterprise at the beginning of the reporting period;
debit turnover shows a decrease in capital or liabilities;
loan turnover shows an increase in capital or liabilities;
The final balance is always a credit balance and shows the amount of capital or liabilities of the enterprise at the end of the reporting period.
The final balance is calculated using the following formula:
WITH To = C n + O To - ABOUT d
There are also active-passive accounts, which are mainly intended for recording obligations (settlements with various legal entities and individuals), as well as for identifying financial results.
Type: Article
Platform: 1C: Enterprise 8.2
Configuration: 1C:Accounting 8
Country Russia
Sooner or later, almost every novice 1C programmer lacks knowledge of basic accounting principles. While preparing for Platform Specialist 8.2, I experienced this myself when solving accounting problems.
After looking through various forums on solving accounting issues. tasks in 1C, books on 1C: Accounting and having re-read a good dozen articles for novice accountants, I tried to systematize the knowledge gained, I hope you like it. I would like to express my gratitude to the authors of the infostart.ru project for their constructive comments and support. Special thanks to Nikolay Shilkin!
Where did accounting come from?
Accounting is an orderly system for collecting, registering and summarizing information in monetary terms about the state of property, obligations of the organization and their changes (cash flow) through continuous, continuous and documentary accounting of all business transactions.Imagine a large bag where in one pocket you have a phone, a comb, documents, keys, a notepad, pens, etc. in one pile. You are driving a car, and suddenly a call comes from your bag. You begin to frantically dig into this pile with one hand. The phone had already gone silent and you still couldn’t find it. The call was missed, the sale did not happen, the meeting fell through, etc. consequences. So, with the increase in competition, I had to be more rational about such calls and react more quickly to events, i.e. in any place with your eyes closed you should know where your phone is, where your comb, documents, keys and other things are.
That is, the accounting organization must ensure the construction of a system that will allow it to give clear answers about where everything is in the organization and in what amounts. The organization of accounting was required when people began to add up their capital, lend property to each other for a while, borrow money from banks, and sell goods on credit to their customers.
The literary period of development of accounting begins in 1494 with the work of Luca Pacioli “The Sum of Arithmetic and Geometry, the Doctrine of Proportions and Relations.” One of the sections of this work - the treatise “On Accounts and Records” - was the first textbook known to date for studying accounting using double entry.
Double entry bookkeeping and double entry
In life we often hear the expression: double-entry bookkeeping. Most likely, we are talking about deception: some records are for the tax office, others are for yourself; one accounting department is white (it is incorrect), the second is black (it is correct). Double-entry accounting involves either two accounting purposes (for example, tax and accounting) or accounting according to two charts of accounts.But double entry is a method of accounting in which every change in the state of an organization’s funds is reflected in at least two accounts, providing an overall balance. By Dt of one account and by Kt of another account.
How to understand Balance? Difference between assets and liabilities
The left (upper) part reflects the assets (funds) of the enterprise: money in the cash register and in the bank account, inventory, debts of “someone” to our enterprise. All this is the property of the enterprise, i.e. assets.
The right (lower) part reflects the sources of the enterprise’s funds (either where the enterprise received them from, or to whom it owes them).
You should know that the filling, form, deadlines and places of delivery are required. balances are regulated by laws/orders.
Funds cannot come from “nowhere” and disappear into “nowhere” (according to the double entry rule), therefore, since we have some kind of property, there must also be obligations (liabilities). Part of the funds was given to us by the owners of the business, and we take into account the company’s debt to them in the “Authorized Capital” account. We received the other part of the funds from the bank or borrowed goods from the supplier.
The amount of assets must be equal to the amount of liabilities, in other words, the amount of assets must be equal to the amount of liabilities and capital.
Everything that we have in the organization’s assets was provided by someone earlier. Those. in the passive we collect information about those people and organizations that formed the assets of our organization.
Types of accounts. Relationship between Active Accounts and Balance Sheet Assets
Accounts used for transactions with property, the balances of which are reflected in the assets of the balance sheet, are called “Active”.Liability accounts are called “Passive” and their balances are reflected in the liabilities side of the balance sheet.
Balance at the beginning and end of the period
Balance translated into Russian is the remainder. And the remainder, as is known, is characterized by a certain date. For example: on August 1 there were 10 eggs in the refrigerator, and on August 18 there were 7 eggs left in the refrigerator. So: balance on August 1 = 10 eggs, balance on August 18 = 7 eggs.Since almost all accounting reports are compiled for a certain period (period) (which has a start date and an end date), there are the concepts of “Beginning Balance” and “Ending Balance”. If we are building a report from 01 to 31 August, 1C will display the balance at the beginning - at 01 August 00 hours 00 minutes, and the balance at the end - by 31 August 23 hours 59 minutes.
Account turnover
Turnovers are all incoming and outgoing transactions within a specified period. Thus, when creating a report on the balances of warehouse No. 1 for August 2012, all receipt and expense documents that were created from August 1 to August 31, 2012 will be included in circulation.The total turnover is the total amount capitalized (spent) for the period.
As in management accounting, turnover is divided into “arrived during the period” and “out during the period”, in accounting there are also turnover on Debit (for active accounts they show the amount of receipts, and for passive accounts - the amount of repaid debt) and turnover on Credit (for active accounts show the amount of funds written off, and for passive accounts - the amount of increased debt).
Special “active-passive” accounts
If everything is simple with the “owner of the enterprise” and his “Authorized capital” account - it is unlikely that he will ever owe money to his enterprise, then with settlement accounts, for example, with reporting employees, there may be difficulties in determining the type of account. If an enterprise gave an employee a certain amount of money, and he did not provide a documented report, or did not return the money, then he owes the enterprise; he now has our funds. In this case accountable Can name « debtor"and the debt is reflected in the debit of the account and included in the asset balance sheet. If an employee bought something useful at his own expense, reported it, and we (the company) admitted our debt to him, then it turns out that he is already ours.” creditor“And we must return the money spent to him. Until it is repaid, the debt must be taken into account as a credit balance on the account in the liability side of the balance sheet.Another example, the supplier delivered us goods worth 100 rubles. Account 60 “Suppliers” will reflect the debt owed to him on the loan. At this particular point in time, account 60 “Suppliers” is passive, it reflects the debt to suppliers.
Another option is that we made an advance payment to the supplier for the goods in the amount of 100 rubles. Account 60 “Suppliers” will reflect the supplier’s debt to us, at this moment he will be our debtor (debtor) and account 60 “Suppliers” is active, it now reflects our assets (debt to us).
Control rule: an active account can never have a credit balance, a passive account can never have a debit balance, and an active-passive account can have both a debit and a credit balance at the same time. Therefore, active-passive accounts at a particular point in time can be reflected both in the asset balance (if the account has a debit balance, i.e. someone owes us) and in the liability balance (if the account has a credit balance, i.e. we owe someone) then they should).
The assets of the balance sheet display all debit balances on active and active-passive accounts, and the liabilities side of the balance sheet displays all credit balances on passive and active-passive accounts.
Source documents
The primary document is the first evidence of the facts that occurred. It confirms the legal validity of the business transaction performed. Primary documents include a cash order, invoice, certificate, act, etc. The issue of classifying an invoice as a primary document is debatable. An invoice in itself does not indicate any business transaction; it is only an annex to the primary document itself (invoice, act). Having an invoice is necessary to receive a VAT deduction, but receiving a deduction based on an invoice alone in the absence of a document/invoice will be unlawful (there are exceptions to this rule).Reflection of transactions on accounts
The postings are read as follows: To the debit of the “Cash Office” account from the credit of the “Current Account” account, or more simply: Put it in the “Cash Office”, taking it from the “Current Account”. Debit is always written on the left, credit on the right. Active accounts reflect transactions with property, while passive accounts reflect the company's obligations to someone.
Opening an account
Opening an account is a basic concept. This means, if there is a zero balance on it, make the first accounting transaction using Dt or Kt, depending on the purpose of the account.Closing the account. Closing the month
To determine the financial result of an organization’s activities (profit and loss statement), you need to close the reporting period. In accounting, a month is recognized as a reporting period (clause 48 of PBU 4/99).In the chart of accounts, there are a number of accounts that are called calculation (or collective-distribution). At the end of each month, their balances should be zero. During the month, the debits and credits of these accounts reflect turnovers that are transferred to the profit and loss accounts using a special accounting procedure “closing the month.” During the closing of the month, the financial result of the activity for the month is calculated, and on the first day of the new financial year, the annual financial result is posted to the accounts of retained earnings (unpaid losses). This is called "balance sheet reform."
In 1C: Accounting, the month-closing procedure is launched through the “Operations - Month-Closing” menu.
The difference between an operation and a posting
The movement of funds in the accounts is interconnected: funds in the account could not appear out of nowhere. Either there should be fewer of them elsewhere, or the debt for them to someone should increase. Therefore, any entry in the ledger. accounting affects two accounts at once: the debit of one and the credit of the other. And such a record is called posting.All entries for all accounts (postings) that will be made on the basis of one primary document are called a transaction.
Account correspondence
Western accounting standards allow the use of complex entries (one account is debited, several are credited, or vice versa) and a collection of entries (several accounts are debited and several are credited). In this case, each operation consists of several dependent records.When entering such a transaction, the equality of the sum of all debit and all credit entries of one transaction is checked. This way the double entry rule is not violated.
The other side of the coin of this system is that the ability to analyze turnover between accounts is lost: we will not be able to find out how much goods (namely goods, not materials, fixed assets, etc.) were received from suppliers (namely suppliers, not other debtors-creditors or employees). All that remains is the possibility of analyzing balances and turnover for a single account.
1C: Enterprise allows you to implement both accounting schemes.
Accounts that are not reflected in the Balance Sheet
Such accounts are called off-balance sheet accounts. They take into account, for example, property that is not the property of the organization. These may be goods accepted on commission (which continue to be considered the property of the principal), leased fixed assets, etc. The only exceptions to the double entry rule are off-balance sheet accounts. When creating a posting to an off-balance sheet account:For an accounting scheme with correspondence (Russian system): it is not necessary to indicate a corresponding account.
With an accounting scheme without correspondence (Western system): there is no need to create another dependent record with the opposite type of movement.
Accounts and sub-accounts
Accounts have integer numbers: 01 , 02 , 03 , 04 etc.
Subaccounts have fractional numbers: 01.01 , 01.02 , 01.03 etc.
The division may be different, for example, a hyphen (as in the Ministry of Finance Instructions for using the chart of accounts) or even blank (as is often found in the West).
Remainder accounts equal to the sum of the balances of all belonging to it subaccounts. The same applies to revolutions.
A nuance: in active-passive accounts, data aggregation is carried out independently: separately for debit balances and separately for credit balances.
Synthetic and analytical accounting. What is the difference?
Synthetic accounting is accounting by accounts and subaccounts. By the way, a subaccount can also be interpreted as a type of analytical accounting.Analytical accounting is accounting with additional analytics (in 1C according to Subconto).
Each transaction can have several subaccounts indicated (in standard 1C: Accounting - up to three).
The subconto type is the type of element, for example “Item”, “Account”, etc.
Subconto is a specific element of the selected type, for example, “Spoon” - from the “Nomenclature” directory, “Vesely Milkman LLC” from the “Counterparties” directory, etc.
Types of subconto are stored in terms of types of characteristics (this object is somewhat similar to a reference book, the main difference of which is that the programmer separately indicates the possible types of stored values for each PVC element. I recommend reading in more detail).
Unlike sub-accounts, accounting for which also details the account as a whole, accounting for analytical accounts (types of sub-accounts) can be carried out in parallel across several analytical sections (for example, goods and warehouses: the same product can be in different warehouses and, conversely, One warehouse may contain different types of goods).
Collapsed and expanded balance
Let's imagine that we have an account “Settlements with accountable persons” (Active-passive), which we use to account for the money that we give to employees on account. Since the name of the account does not allow us to understand who exactly we actually gave/owed money to, we introduced additional analytics for employees (in 1C - the “Employee” sub-account of the accounting register).So, for the month, someone reported on the money received (Dt Expenses, Kt Settlements with accountable persons), someone was given money (Dt Settlements with accountable persons, Kt Cash), someone did not report and remained in debt to the enterprise.
It's time to create a balance sheet for the month. As you know, the balance sheet displays generalized information, and therefore we must decide whether to record the balance of our “Settlements with Accountable Persons” account as an asset or a liability?
Look at the table to see what will happen if we reduce our balance.
When you first look at an active-passive account with zero balances, you might think, “Well, what’s special about that?” Imagine, Ivanov took 100 rubles from the cash register and, without reporting for them, safely quit. What will happen to debit balances? 100 rubles will “hang” forever. A similar situation often occurs in enterprises, when several enterprises owe us 100 thousand rubles, and we simultaneously owe someone 100 thousand rubles. If you collapse the balance, it turns out that no one owes anyone anything, which is naturally false.
Therefore, the balances on settlement accounts, which include the account “Settlements with accountable persons,” are never shown collapsed in the balance sheet; this is a violation of PBU 4/99 and PVBUBO (RAS) and IAS1 (IFRS).
The expanded balance will show us the balance, both debit and credit, for specific employees (in 1C - for each subaccount).
But for other accounts, it is allowed to roll up balances. To find out, you need to determine which balances outweigh (who owes more - us or us?). This is done by simply calculating the amount of the initial balance and turnover (separately for debit and separately for credit). Then we subtract the smaller from the larger and get the amount that needs to be written down as a debit. If there were 11 in Debit and 9 in Credit, then we still have debtors worth 2 rubles, so our collapsed balance will be debit.
Quantitative accounting
In addition to synthetic accounting, other types of accounting can be organized. For example, certain types of enterprise funds require storing information in quantitative (natural) terms. This is all, or almost all, material resources: materials, goods, products, etc. Accounting in kind implies that in separate accounts (not all, but only the necessary ones - it is not clear, for example, what can be taken into account in kind at the cash desk: the number of coins or “pieces of paper”) we will store information on another type of accounting - quantitative accounting.Quantitative accounting is provided by adding the “Quantity” resource to the accounting register with the accounting attribute “Quantitative”.
Multi-currency accounting
For accounting in Russia, the accounting currency is the ruble. For management accounting, as a rule, the one whose exchange rate is more stable is selected. Until recently it was the US Dollar. Recently, the Euro or Ruble has been increasingly chosen as the accounting currency. Multi-currency accounting involves the assessment of individual assets (liabilities) and the registration of certain business transactions not only in the accounting currency, but also in other currencies. In this case, the accounting must reflect both the amount in the currency of the transaction (entry, transaction, document...) and its equivalent in the accounting currency. Recalculation is carried out using the rate established on the day of the transaction (and the multiplicity, for currencies with a small exchange rate).
Multicurrency accounting is ensured by adding the “Currency” dimension to the accounting register with the “Balance” checkbox unchecked (it is impossible to control the balance for different currencies, since the exchange rate changes daily).
The exchange rates themselves are usually stored in the information register, from where the current currency at the time of posting is obtained through the “Slice of the Last” virtual table.
What is multiplicity? If 56 rubles can be exchanged for 1000 Turkish Liras, then the multiplicity = 56.
Tri-currency accounting
If the base currency (in relation to which rates are entered in the currency directory) is the ruble, the accounting currency is the dollar, and the transaction currency (document, transaction, operation) is the euro, then this is already three-currency accounting in which the concept of cross-rate is introduced.The cross rate is the difference between the transaction currency rate and the accounting currency rate.
For example, we made a deal for 1000 euros. Accounting currency is dollar. This means the cross rate = 42/30.
Transaction amount (in €) * Cross rate = Transaction amount in accounting currency (in $)
1000 € * 42/30 = 1400 $
Several Balance Sheets, or accounting for holding companies
Such accounting is implemented similarly to multi-currency accounting, only with the “Balance Sheet” checkbox selected (to control the balance across several enterprises). In a similar way, you can “split” balance sheets not only by enterprise, but also, for example, by financial responsibility centers, projects, stores, etc.Director and owner are different concepts
Any business begins with investing a certain amount of money into it - initial capital.For example, Petrov invested 100 rubles in the business. In this case, the director and owner are one person - Petrov. Petrov (as the owner) gave the money for circulation to Petrov (as the director). Accounting “looks” at all this from the director’s side, and sees that the director has 100 rubles in the cash register and now owes the owner 100 rubles.
To summarize
In order for a 1C programmer to successfully solve basic accounting problems, it is not at all necessary to study accounting at an institute for several years; you can independently master the basic principles.I will be glad to see any of your ideas for supplementing and developing the article, as well as joint cooperation! Write to me at [email protected].
Balance is one of the most important parameters in accounting.
In short: a balance is a balance, current or for a certain period of time.
Let's take a closer look at what a balance is in simple words and clearly illustrate it with examples.
Balance is an economic term that refers to the difference in the balance of funds between crediting to an account and spending for a specific period of time.
In order to calculate various flows and outflows of financial resources, accountants use accounting accounts that reflect transactions in accounting. Thus, accountants record them in registers of synthetic and analytical accounting. These registers are tables that reflect information about all kinds of income and expenses of the organization for a certain period, taking into account previous and final data (balance).
The only difference between the two accounting registers is that analytical accounting data reveals and details the information reflected in the synthetic account. The summed analytical data is always equal to the total synthetic score. Thanks to this accounting, not only accountants, but also economists and managers clearly see the internal flows and outflows of the enterprise and the general economic condition of the company.
For example, a company has machines on its balance sheet that are posted through an account called “Fixed Assets.” Each accountant who opens this account sees the cost of all machines, the date of their receipt, planned write-off and much other information.
Each account contains two entries - debit and credit. In simple words – income and expenses. When purchasing new equipment, its cost, service life and other information necessary for the enterprise are recorded in the “Fixed Assets” account. Upon expiration of the service life of the equipment and write-off for disposal, the accountant will make an entry about this in the “Fixed Assets” account in the credit section.
Balance shows what balance you currently have in your account.
This indicator is calculated as follows:
- The balance for the previous period is taken (closing balance);
- All income transactions on the account (debit balance) are added to this period, and everything that increases the balance is taken into account: the purchase of equipment, tools, buildings, etc.;
- From the total amount of income, credit entries and transfers (credit balance) are subtracted, that is, everything that reduces the account balance: broken, written-off, obsolete tools, equipment, materials.
- The resulting difference is the balance (final balance).
Example:
As of December 31, 2017, the company had 10 working machines - this is the balance for the previous period.
In 2018 The company wrote off 2 machines and acquired 4.
The debit history will record the purchase of 4 machines, and the credit entry will record the write-off of 2.
When calculating the balance for 2018, the accountant adds debit transactions (4 machines) to the previous balance (on which 10 machines are recorded) and subtracts credit transactions (2 machines) from it.
It turns out that the balance of the enterprise as of December 31, 2018 was 12 machines.
This example is highly exaggerated and far from real business management, but thanks to it you can show what a balance is in simple language.
Types of balances
As we have already found out, there are two types of balance:
- Debit;
- Credit.
What the balance will be depends on the total amount of funds. If the account balance is positive, then the balance is a debit. When the balance is negative, the balance is called a credit balance.
These are the two basic concepts of balance. There are others, for example, active or passive, initial or final, etc. However, all this relates to a deeper study of the topic, and we will not touch on it in this article.
Accounting balance
In accounting, balance is a sacred term, one of the main concepts with which every financial worker is familiar. Accounting indicates the balance for any designated period of time (month, quarter, half-year, year) - this indicator reflects the financial activities of the company and helps to analyze income and incurred losses.
A simple example of calculating balances in accounting:
| DEBIT | CREDIT | ||
| Initial debit balance 12/01/2018 | 10,000 rub. RF | ||
| Sale 12/10/2018 | 5000 rub. RF | ||
| Sale 12/20/2018 | 1000 rub. RF | ||
| Purchase 12/22/2018 | 3,000 rub. RF. | ||
| Turnover by debit | 3,000 rub. RF | Loan turnover | 6,000 rub. RF |
| Final debit balance as of 12/31/2018 | 7,000 rub. RF | ||
Trade balance
The balance is often used to assess the financial viability of a state or enterprise, namely the results of its trade.
There are 2 contexts in which trade balances are used:
- Trade balance;
- Balance of payments balance.
In the first context, it refers to the sum of all goods exported or imported from other countries. Countries that purchase a lot of goods from other countries and have little production have a negative trade balance. This negatively affects the image of the state, so all developed countries strive to improve their trade balance indicators.
Balance of payments– counting remittances received by the state or sent from it to other countries. A negative balance occurs when more money is sent out of a country than is received. This situation has a negative impact on the state’s economy: the exchange rate is deteriorating, money is being emitted, and people’s well-being is declining.
As you can see, such a complex term as balance is explained in simple words. Knowing this concept will broaden your horizons and perhaps even help in some situations.