About essence double entry and the features of compiling accounting entries, we told in. And what types business transactions exist and how it is reflected in accounting records, we will tell in this material.
4 types of business transactions
When talking about the types of business transactions, they mean their grouping depending on the impact on the value (A) and liabilities (P) of the balance sheet.
Thus, the following four types of business transactions are distinguished:
Below we explain how to determine the type of business transaction.
Type I: A+ A-
This type of business transactions involves a change in the composition or structure of the assets of the balance sheet. As a result of this type of transaction, the currency of the balance sheet does not change. In other words, with the 1st type of business transactions, an asset turns into another asset.
The simplest example is to withdraw cash from a bank by check:
Debit account 50 "Cashier" - Credit account 51 "Settlement accounts"
As a result of this operation, the value of assets does not change, only their structure changes: non-cash cash, increased cash.
For this type of business transactions, examples of postings are as follows:
Type II: P+ P-
And what type of business transaction is it, as a result of which the total amount of the balance sheet does not change, and changes occur only in the composition of liabilities? We are talking about the 2nd type of business transactions.
Here are typical business transactions related to this type:
Type III: A+ P+
The third type of business transactions assumes that the balance sheet increases due to the fact that assets and liabilities are growing.
Here are examples for this type of business transactions:
Type IV: A-P-
If, as a result of business transactions, the assets and liabilities of the balance sheet decrease, we are talking about the 4th type of operations.
Everything that affects the property or financial position of the organization is a business transaction. One way or another, all events or operations affect accounting, and hence the balance sheet. For ease of systematization, there are 4 types of business transactions. What are these types and how they differ from each other, this article will tell.
Obviously, once balance sheet consists of the assets and liabilities of the organization, then all events economic activity that occur affect these indicators. However, some business transactions may have a greater impact on an asset, while others on a liability, and vice versa. The types of business transactions in accounting depend precisely on how they affect the balance sheet: more on its active part, on the passive part, or on both at the same time. Let's deal with this issue in more detail.
4 types of business transactions
So, the classification of all operations performed in the company and recorded by the accounting department looks like this:
- +A -A - affect only the asset of the balance sheet and do not affect the liability in any way. In fact, these are transactions that change the composition of property, but only within the company itself. The currency of the balance in such operations does not change.
- +P -P - by analogy, they affect only the liability of the balance sheet and do not affect the asset. These are any situations related to the sources of formation of the company's property, but also only of an internal nature. The balance currency is also not changed.
- + A + P - affect both the asset and the liability at the same time, increasing them. The balance currency in both directions grows equally.
- -A -P - also affect both the asset and the liability, but in the direction of their reduction. The balance currency is changed by an equal amount.
It is obvious that the third and fourth types concern the interaction of the company with other organizations, while the first and second are the internal affairs of the company itself. This classification helps to better navigate the affairs of the company to those people who are remotely familiar with accounting. By the way, the balance currency is not called rubles or other money, as many might think, but its total values in the active and passive parts.
Business Transaction Type: Examples and Postings
In order to better understand how this classification is applied in practice, consider some examples for each type, as well as the entries that an accountant must make in each case.
The first example will characterize a business transaction classified as +A -A, that is, creating an inflow of property within the company itself, or rather, its movement from one active account to another. The simplest and most typical business operation, which can be characterized in this way, is the withdrawal of money from the company's current account, for example, for issuing their account. Before the money is issued to the final addressee-accountable person, they should be credited to the cashier. In this case, the organization has an increase in cash and a decrease in non-cash, but the balance sheet does not change. The wiring will look like this:
Debit 50 "Cashier" Credit 51 "Settlement accounts".
In addition to this, this type includes such transactions as:
- transfer of materials from the warehouse to the production workshop: Dt 20 "Main production" Kt 10 "Materials";
- registration of a fixed asset: Dt 01 “Fixed assets” Kt 08 “Investments in fixed assets»;
- crediting of payment for previously shipped goods: Dt 51 “Settlement accounts” Kt 62 “Settlements with buyers and customers”.
As well as a number of other business transactions that affect the asset, but do not change the balance of the liabilities of the balance sheet.
The second example characterizes a business event of the +P -P type, affecting the sources of property within the company. This clearly characterizes the accrual of dividends to the company's participants from the profit received at the end of the year. In this case, the accounting entry looks like this:
Debit 84 “Settlements with the founders” Credit 75 “ retained earnings».
Both accounts are passive, so the balance currency again remains unchanged. But at the same time, profits turned into dividends. The following transactions also clearly characterize this type of business transactions:
- allocation of profits to reserve fund: Dt 84 "Retained earnings ( uncovered loss)” Kt 82 “Reserve capital”;
- withholding personal income tax from the salary of the company's employees: Dt 70 "Settlements with personnel for wages" Kt 68 "Calculations for taxes and fees";
- calculation of VAT on goods: Dt 90 “Sales” Kt 68 “Calculations for taxes and fees”.
As well as other similar situations in which only passive accounts are involved.
The third example will illustrate +A +P, that is, the situation when the active and passive parts increase. This is clearly seen in the example of the receipt of goods from the supplier, for which there is a deferred payment under the contract. In this case, the debit of account 41 “Goods” simultaneously increases due to posting material assets on their cost and credit of account 60 "Settlements with suppliers and contractors" for the amount of debt. In this case, account 41 is active, and account 60 is passive. A similar situation arises when the accountant makes postings for such business situations:
- payroll for employees: Dt 20 “Main production” Kt 70 “Settlements with personnel for wages”;
- obtaining a long-term loan: Dt 51 “Settlement accounts” Kt 67 “Settlements for long-term loans and loans."
The fourth example will show a simultaneous decrease in an asset and a liability by the same amount. Such a typical situation occurs when a supplier is settled for the supply of goods from the third example. In favor of one of the company's counterparties (Dt 60), money is transferred from the current account (Kt 51). Non-cash funds becomes smaller, and this is an asset, but the debt, which is a liability, is repaid. Also characterize type -A -P such postings:
- payment of wages to employees: Dt 60 Kt 51;
- transfer to the budget of withheld personal income tax: Dt 68 Kt 51.
There are many such examples. One thing is important: they all clearly characterize how the double-entry bookkeeping method works in practice, and how important it is to correctly take into account all business transactions in accordance with the primary documents, as well as their content.
System of accounts and double entry
Influence on the balance sheet There are four types of business transactions.
Operations 1st type affect only the balance sheet asset, while the balance sheet total does not change:
where A - balance sheet asset; P - liabilities of the balance; Z - the amount of the business transaction.
Operations 2nd type affect only the liability of the balance sheet, while the currency (total) of the balance sheet does not change:
Operations 3rd type affect both the asset and the liability of the balance sheet, while the currency (total) of the balance sheet increases:
Operations 4th type affect both the asset and the liability of the balance sheet, while the currency (total) of the balance sheet decreases:
Examples of four types of business transactions are given in Table. 1.6.1.
Table 1.6.1
Examples of the four types of business transactions
Since each business transaction makes changes to the balance sheet items, which contain data only on balances (at the beginning) on a specific date, a system of accounting accounts is used to reflect information about current changes in these data (turnovers and balances at the end).
An account is a way of economic grouping, control and generalization in monetary terms of information on traffic accounting household funds and sources of its formation.
By appearance The account is a table consisting of two parts. The table has a name corresponding to the name of the account. The left side of the table is called Debit (abbreviated as Dt), the right side is called Credit (abbreviated as Kt).
To indicate account balances accounting the term "balance" is used. Usually, the balance at the beginning of the reporting period (month) is designated - C1, and at the end - C2.
In relation to balance accounts are divided into active and passive.
Active accounts serve to reflect the presence (balance) and movement (turnover) of property. On active accounts, there is only a debit balance, or there is no balance.
Passive accounts serve to reflect the presence (balance) and movement (turnover) of sources of property formation. On passive accounts, there is only a credit balance, or there is no balance.
Schema of active account entries
The debit balance from active accounts is transferred to the corresponding asset items of the balance sheet.
, reflected in active accounts: the debit reflects the presence of property at the beginning and end of the month, which is transferred to the corresponding items of the balance sheet asset, as well as business transactions that cause an increase in economic funds. On credit - business transactions that cause a decrease in property.
Scheme of entries on a passive account
The credit balance from passive accounts is transferred to the corresponding articles of the balance sheet liabilities.
Economic content of information, reflected in passive accounts: the loan reflects the presence of a source of formation of property at the beginning and at the end of the month, which is transferred to the corresponding articles of the balance sheet liability, as well as business transactions that cause an increase in the source. For debit - business transactions that cause a decrease in the source.
The essence of double entry thing is each business transaction is recorded on the debit of one account and the credit of another in the same amount.
A double entry, reflecting the relationship between accounting objects for each business transaction, is called the correspondence of accounting accounts, or accounting entry. Double entry example:
Debit account 50 A + 500 rubles.
Account credit 51 A - 500 rubles.
Accounts are opened for each accounting object.
In accounting, the simplest form of the account is used, the so-called "T-account".
Double Entry Methodology includes the following basic steps.
Step 1. Based on the content of the business transaction (see the primary document), indicate which accounting objects (accounts) it affects.
Step 2. Determine the type of each account in relation to the balance (active or passive).
Step 3. Determine the nature of the change in the accounts after the business transaction (+ or -) and the type of business transaction.
Step 4. Based on the two schemes of entries on the accounts, indicate the correspondence of the accounts.
Example 1.6.1. Given a zero opening balance and carried out four business transactions. Apply to each business transaction the methodology for compiling a double entry, make a double entry on T-accounts and draw up a balance sheet.
Solution
1) materials received from suppliers. Consent (acceptance) was given to pay the supplier's invoice. The calculation has not yet been made. Z = 550.
Dt account 10 A + 550
CT account 60 P + 550;
2) materials are transferred to the production workshop. Z = 70.
Dt account 20 A + 70
CT account 10 A - 70;
3) a short-term bank loan for materials has been credited to the current account. Z==100.
Dt account 51 A + 1000
CT account 66 P + 1000;
4) money is transferred from the current account to the supplier. Z = 550.
Dt account 60 P - 550
CT account 51 A - 550.
Correspondence of accounts is indicated on the primary document. According to the established correspondence, entries are made on the accounts (in accounting registers) in chronological order as business transactions are performed.
The account is opened once at its first mention.
Below are the entries in the accounts after the registration of the four business transactions included in example 1.6.1.
|
Dt account 20 |
|
|
1) 550 ct bill 60 |
|
|
ct count 10 |
|
|
4)550 Dt account 66 |
|
|
Invoice ct 51 |
|
|
1)550 Dt account 10 |
|
|
3) 1000 Dt account 51 |
|
On the last day of each month, the “closing” of accounts is carried out, i.e. turnovers and C 2 are determined according to the corresponding formulas for active and passive accounts.
On the basis of information from “closed” accounts, a balance sheet for synthetic accounts is compiled, data on balances (balances) at the beginning and end of the month and debit and credit turnover of accounts for the month are transferred to it.
OSV allows you to establish the correctness of the reflection of business transactions in the accounts and is one of the ways to summarize the data of accounting accounts in the balance sheet of the organization (transfer of balances from accounts to the balance sheet). Data on account balances from SALT are transferred to the balance sheet. SALT contains three pairwise equalities, or three balances: the balance sheet at the beginning of the month, working balance per month and balance sheet at the end of the month.
With the correct organization of accounting, there must be pairwise equality of the totals in the columns. In addition, debit and credit turnovers must be equal to each other and be equal to the total in the journal of business transactions for the corresponding month.
The double entry method has a control value: since the same operation in an equal amount is reflected in the debit of one account and in the credit of another account. In the event of a discrepancy in the amounts for this operation, an error is detected. Usually discrepancies are found when calculating the totals of the turnover sheet.
Below is the SALT, which includes information about "closed" accounts after registration of the four business transactions included in example 1.6.1.
|
Account number |
Balance at the beginning of the month С1 |
Turnovers per month |
Balance at the end of the month С2 |
|||
Example 1.6.2. As of 09/01/20XX, the organization had the following balances on the accounting accounts:
|
Name of the accounting object |
Amount, rub. |
||
|
Authorized capital |
|||
|
fixed assets |
|||
|
Depreciation of fixed assets |
|||
|
Checking account |
|||
|
materials |
|||
|
Settlements with debtors (customers) |
|||
|
Settlements with debtors (accountable persons) |
|||
|
Settlements with creditors (suppliers) |
|||
|
retained earnings |
|||
|
Unfinished production |
|||
|
Settlements with personnel for payroll |
|||
|
Bank short-term loans |
|||
|
Extra capital |
Complete the business transactions listed in the registration log for four days and draw up four separate WWS and four balance sheets for each day:
- 1) as of 02.09.20XX;
- 2) as of 03.09.20XX;
- 3) on 04.09.20XX;
- 4) on 05.09.20XX.
Solve the problem in two ways:
- 1) compile the WWS for each day using the method of the double entry system of accounts;
- 2) draw up balance sheets for each day without using the method of the double-entry account system, performing business transactions directly in the balance sheet items.
Example 1.6.2 Solution, method 1 (using the system of accounts and double entry). Operations for September 2 are reflected (see the journal of registration of business transactions).
|
C1 (09/01/20XX) = 100 | |
|
С2 (02.09) = 8250 |
|
|
С1 (01.09)= 14 800 | |
|
С2 (02.09) = 6800 |
|
|
С1 (01.09) = 200 | |
|
С1 (01.09) = 40 | |
|
С2 (02.09) = 90 |
|
Journal of registration of business transactions
|
business transaction |
primary document |
Objects of accounting and accounts: A or P "+" or "-" |
economic operations |
Correspondence of invoices (double entry) |
|||
|
Bank statement, receipt cash warrant |
|
||||||
|
Received money to the current account from debtors |
Bank statement, n/n |
||||||
|
Issued from the cash desk to an accountable person |
Account cash warrant |
||||||
|
Received a short-term bank loan to the current account |
Bank statement, contract |
||||||
|
Materials received from the supplier are credited to the warehouse |
Invoice, incoming material order |
||||||
|
Reflected in the accounting of a gratuitously received warehouse building at a market price |
Invoice, inventory card |
||||||
|
Account cash warrant, payroll |
|||||||
|
Money transferred from the current account to suppliers |
Bank statement, payment order |
|
11 account number |
C1 on 09/02/20XX (beginning of the day) |
Turnovers for 09/02/20XX |
С2 on 02.09.20XX (end of the day) |
|||
|
С1 (02.09) = 6800 |
|
|
С2 (03.09) = 8600 |
|
|
С1 (01.09)= 1450 |
|
|
С2 (03.09) = 3250 |
|
|
Cl (01.09) = 249,000 | |
|
С2 (04.09) = 264,000 |
|
|
С1 (01.09) = 51 360 | |
|
С2 (04.09) = 53 360 |
|
|
С1 (01.09) = 400 |
|
|
С2 (04.09) = 2400 |
|
|
С1 (01.09) = 14 800 |
|
|
С2 (04.09) = 48,000 |
|
|
Account number |
C1 on 09/03/20XX (beginning of the day) |
Turnovers for 03.09.20XX |
C2 on 09/03/20XX (end of the day) |
|||
End of table
|
Account number |
C1 on 03.09.20XX (started day) |
Turnovers for 03.09.20XX |
C2 on 09/03/20XX (end of the day) |
|||
|
Account number |
C1 on 09/04/20XX (beginning of the day) |
Turnovers for 04.09.20XX |
C2 on 04.09.20XX (end of the day) |
|||
|
С1 (03.09) = 8600 |
|
|
С2 (05.09) = 8200 |
|
|
С1 (02.09) = 8250 |
|
|
С2 (05.09) = 50 |
|
|
С1 (04.09) = 2400 |
|
|
С2 (05.09) = 2000 |
|
|
С1 (01.09) = 8200 |
|
|
Account number |
C1 on 09/05/20XX (beginning of the day) |
Turnovers for 05.09.20XX |
C2 on 09/05/20XX (end of the day) |
|||
|
Account number |
C1 on 09/05/20XX (beginning of the day) |
Turnovers for 05.09.20XX |
C2 on 09/05/20XX (end of the day) |
|||
Solution: method 1 (without applying the method of the double entry system of accounts directly in the balance sheet items)
|
I. Non-current assets |
III. Capital and reserves |
||
|
1. Authorized capital |
|||
|
Total for Section I |
2. Additional capital |
||
|
II. current assets |
3. Retained earnings |
||
|
1. Materials |
Total for Section III |
||
|
2. Work in progress |
|||
|
Total for Section IV |
|||
|
5. Money in the current account |
|||
|
6. Cash in hand |
3. Short-term bank loan |
||
|
Section 11 total |
Section V total |
||
|
I. Non-current assets |
III. Capital and reserves |
||
|
1. Fixed assets (net of depreciation) |
1. Authorized capital |
||
|
Total for Section I |
2. Additional capital |
||
|
II. current assets |
3. Retained earnings |
||
|
1. Materials |
Total for Section III |
||
|
2. Work in progress |
IV. long term duties |
||
|
3. Accounts receivable from buyers |
Total for Section IV |
||
|
4. Accounts receivable of accountable persons | |||
|
1. Accounts payable to suppliers |
|||
|
5. Money in the current account |
|||
|
6. Cash in hand |
3. Short-term bank loan |
||
|
Total but Section II |
Section V total |
||
|
I. Non-current assets |
III. Capital and reserves |
||
|
1. Fixed assets (net of depreciation) |
1. Authorized capital |
||
|
Total for Section I |
2. Additional capital |
||
|
II. current assets |
3. Retained earnings |
||
|
1. Materials |
Total for Section III |
||
|
2. Work in progress |
IV. long term duties |
||
|
3. Accounts receivable from buyers |
Total for Section IV |
||
|
4. Accounts receivable of accountable persons |
V. Current liabilities |
|
I. Non-current assets |
III. Capital and reserves |
||
|
1. Fixed assets (net of depreciation) |
1. Authorized capital |
||
|
Total for Section I |
2. Additional capital |
||
|
II. current assets |
3. Retained earnings |
||
|
1. Materials |
Total for Section III |
||
|
2. Work in progress |
IV. long term duties |
||
|
3. Accounts receivable from buyers |
Total for Section IV |
||
|
4. Accounts receivable of accountable persons |
V. Current liabilities |
||
|
1. Accounts payable to suppliers |
|||
|
5. Money in the current account |
2. Accounts payable to staff for wages |
||
|
6. Cash in hand |
3. Short-term bank loan |
||
|
4. Deferred income |
|||
|
Section 11 total |
Section V total |
||
|
Total for Section I |
2. Additional capital |
||
|
I. Current assets |
3. Retained earnings |
||
|
1. Materials |
Total for Section III |
||
|
2. Work in progress |
IV. long term duties |
||
|
3. Accounts receivable from buyers |
Total for Section IV |
||
|
4. Accounts receivable of accountable persons |
V. Current liabilities |
||
|
1. Accounts payable to suppliers |
|||
|
5. Money in the current account |
2. Accounts payable to staff but remuneration |
||
|
6. Cash in hand |
3. Short-term bank loan |
||
|
4. Deferred income |
|||
|
Section 11 total |
Section V total |
||
Example 1.6.3. The following balances are given on the accounting accounts of a small enterprise as of 01.10.20XX, thousand rubles.
|
Account number |
Opening balance |
|
During the month, the following business transactions were carried out:
|
Account correspondence |
Amount, thousand rubles |
|||
|
The debt to the budget but taxes has been repaid |
||||
|
Received money from the current account to the cashier |
||||
|
Salary paid to staff from the cash register |
||||
|
Sales revenue accrued |
||||
Reflect the indicated business transactions on the accounts of accounting, draw up the OSV and the balance sheet.
Solution: below are correspondence accounts for business transactions.
|
Account correspondence |
Amount, thousand rubles |
||||
|
Fixed assets received free of charge |
|||||
|
Fixed assets put into operation |
|||||
|
Tax debt paid off |
|||||
|
Received money from the current account to the cashier |
|||||
|
Salary paid to staff from the cash register |
|||||
|
Materials received from the supplier are credited |
|||||
|
Written off materials for production |
|||||
|
Finished products received in warehouse |
|||||
|
Shipped finished products to the commission agent |
|||||
|
Received a fine from the buyer to the current account |
|||||
|
Transferred from the current account payment to the supplier |
|||||
|
Returned a short-term loan to the bank |
|||||
|
Sales revenue accrued |
|||||
|
Received money from the buyer to the current account |
|||||
|
Written off the cost of shipped goods sold by the commission agent |
|||||
|
VAT charged to the budget on sales proceeds |
|||||
|
Calculated and reflected financial results from sales |
|||||
|
|
|
|
|
14) 4720 10) 110 |
|
|
|
Turnover balance sheet for synthetic accounts
Accounting Batane
|
4. Goods shipped |
V. Current liabilities |
||||
|
3. Accounts receivable |
1. Short-term bank loans |
||||
|
4. Cash in hand |
2. Short-term commitment to the budget |
||||
|
5. Money in the current account |
3. Short-term obligations to suppliers |
||||
|
4. Short-term obligations to personnel for remuneration |
|||||
|
periods |
|||||
|
Total for Section II |
Section V total |
||||
Tests for paragraph 1.6
- 1. Determine the type of changes in the balance sheet that occurred under the influence of business transactions; the section in which these changes took place is “materials for the manufacture of products released into production”:
- a) ?A + I1-I1 \u003d EP;
- b) ?A = ?P + I2-I2;
- c) XA + IZ = ?P + IZ;
- d) Xa - I4 \u003d Xn - I4.
- 2. What type is the business transaction - “accrued wage employees of the main production":
- a) to the first
- b) the fourth;
- c) third;
- d) second.
- 3. Select the formula for a business transaction that leads to changes only within the liabilities side of the balance sheet:
- a) 1A + I1 -I1 \u003d 1P;
- b) 1A \u003d 1P + I2-I2;
- c) 1L + IZ = 1P + IZ;
- d) 1A-I4 = 1P-I4.
- 4. Determine the type of changes in the balance sheet that occurred under the influence of business transactions; the section in which these changes occurred is “products shipped to customers”:
- a) 1A + I1 -I1 \u003d 1P;
- b) EA = EP + I2-I2;
- c) ZA + IZ = 1P + IZ;
- d) lA - I4 = 1P - I4.
- 5. In what case is the ending balance of the active account equal to zero?
- a) if the debit turnover is equal to the credit turnover;
- b) if there was no movement of property;
- c) if the opening balance plus the debit turnover is equal to the credit turnover;
- d) it can't be.
- 6. The essence of the double entry method is:
- a) in the reflection of business transactions in accounting accounts in monetary terms;
- b) reflecting the amount of a business transaction on two interconnected accounts;
- c) reflecting each business transaction on the debit of one account and on the credit of another account in the same amount;
- d) reflecting the amount of a business transaction in two different amounts.
- 7. What type of changes in the balance sheet is the business transaction - “accrued accounts receivable buyers":
- a) to the first
- b) the second;
- c) third;
- d) fourth.
- 8. Determine the type of changes in the balance sheet that occurred under the influence of business transactions; the section in which these changes took place is “tax was withheld from the wages of employees of the enterprise”:
- a) 1A + I1 -I1 \u003d 1P;
- b) lA = 1P + I2 - I2;
- c) lA + IZ = 1P + IZ;
- d) 1A-I4 = 1P-I4.
- 9. What type of changes in the balance sheet is the business transaction - “part of the profit remaining at the disposal of the organization is aimed at replenishing the reserve capital”:
- a) to the first
- b) the second;
- c) third;
- d) fourth.
- 10. Which section of the chart of accounts reflects the sale of products:
- a) non-current assets;
- b) inventories;
- c) production costs;
- d) cash;
- e) financial results.
- 11. Determine the type of changes in the balance that have occurred due to the influence of business transactions; the section in which these changes occurred is “long-term loan credited to the current account”:
- a) 1A + I1 -I1 \u003d 1P;
- b) 1A \u003d 1P + I2-I2;
- c) 1L + IZ = 1P + IZ;
- d) XA-I4 = HP-I4.
- 12. What type of changes in the balance sheet does the business transaction refer to - “goods received from suppliers”:
- a) to the first
- b) the second;
- c) third;
- d) fourth.
- 13. Account balance is:
- a) the difference between debit and credit turnover;
- b) account balance;
- c) cipher code of the account;
- d) there is no correct answer.
- 14. Determine the type of changes in the balance that have occurred due to the influence of business transactions; the section in which these changes took place is “wages paid to employees of the enterprise from the cash desk”:
- a) 1A + I1 -I1 \u003d 1P;
- b) 1A \u003d 1P + I2-I2;
- c) 1L + IZ = 1P + IZ;
- d) XA-I4 = HP-I4.
- 15. What type of changes in the balance sheet does the business transaction refer to - “money from buyers was received on the current account to pay off receivables”:
- a) to the first
- b) the second;
- c) third;
- d) fourth.
- 16. How will the balance sheet change during a business transaction - “wages were accrued to employees of the main production”:
- a) will not change
- b) will increase;
- c) decrease.
- 17. How will the balance sheet change during a business transaction - “funds received from buyers to the current account”:
- a) will not change
- b) will increase;
- c) will decrease;
- d) there is no correct answer.
- 18. What is the purpose of the turnover sheet for synthetic accounts:
- a) checking the completeness of synthetic accounting;
- b) checking the completeness of analytical accounting;
- c) summarizing synthetic accounts;
- d) control over the correctness of correspondence accounts.
- 19. When opening a passive account, the opening balance is recorded:
- a) to the debit of the account;
- b) credit accounts;
- d) the passive account has no balance;
- e) there is no correct answer.
- 20. In what case is the balance on passive account equals zero:
- a) if the debit turnover is equal to the credit turnover;
- b) this cannot be;
- c) if the opening balance plus the credit turnover is equal to the debit turnover;
- d) if the opening balance plus the debit turnover is equal to the credit turnover;
- e) there is no correct answer.
- 21. When opening an active account, the opening balance is recorded:
- a) to the debit of the account;
- b) credit accounts;
- c) simultaneously in the debit and credit of the account;
- d) the active account has no balance;
- e) there is no correct answer.
- 22. The balance of the passive account is located:
- a) in the asset balance;
- b) in the liabilities side of the balance sheet;
- c) for balance;
- d) there is no correct answer;
- e) listed in i. a, b; c) listed in paragraphs a, b, c.
1. The concept of business transactions.
The variety of business transactions performed at the enterprise affects the amount of property and the sources of its formation. Some operations change the composition of funds, others - the sources of these funds, the third increase both the composition of the funds and their sources, the fourth simultaneously reduce both. This is reflected in the change in balance sheet items. But, no matter how diverse these changes are, accountants should not have difficulty in establishing the correspondence of accounts, in the end, they all come down to four types.
The first type of business transactions causes changes only in the asset balance: one of its articles increases, the other decreases by the amount of the business transaction, that is, the composition of economic assets and their placement are modified. The balance sheet does not change.
The second type of business transactions causes changes only in the liabilities side of the balance sheet: one of its articles increases, the other decreases, that is, the sources of economic funds are modified. The balance sheet does not change.
The third type of business transactions causes changes in the asset and liability of the balance sheet at the same time in the direction of increasing its articles. The balance sheet total also increases by the amount of the business transaction on the asset and liability.
The fourth type of business transactions causes changes in the asset and liability of the balance sheet simultaneously in the direction of reducing its articles. The balance sheet total will also decrease by the amount of the business transaction.
2. Types of business transactions. Examples of business transactions.
In the process of any economic activity, business operations are carried out, under the influence of which there is a change in the balance sheet items.
All business transactions, according to the nature of their impact on the balance sheet, are divided into 4 types: changes can occur only in an asset, only in a liability, or in an asset and a liability simultaneously, but in any case, at least two balance sheet items are affected, and the equality of the balance sheet currency is necessarily preserved. Operations in which the balance sheet currency (balance total) does not change are called permutations, and those in which the balance sheet currency increases or decreases are called modifications. There are active and passive permutations, positive and negative modifications.
The first type: operations that cause a change in the asset balance without changing the liability. As a result of such an operation, one article of the balance sheet asset increases, and the other decreases by the same amount, the balance sheet equality is not violated and the balance sheet currency remains unchanged.
Example of business transactions: received from current account cash in the amount of 150,000:
A + a - a \u003d P.
The second type: operations that cause a change in the liability of the balance sheet without changing the asset. As a result of such an operation, one article of the balance sheet liability increases, and the other decreases by the same amount, the balance sheet equality is not violated, the balance sheet currency remains unchanged: A \u003d P + p - p.
The third type: operations that cause an increase in assets and liabilities, as well as increase the balance sheet currencies by the same amount, but balance sheet equality is not violated.
Business Transaction Example: Materials Received from Suppliers to Warehouse
organizations in the amount of 110,000. A + a \u003d P + p (warehouse (+), accounts payable of the enterprise (+)).
The fourth type: transactions that cause a decrease in asset and liability items. .
Permutations cause a simultaneous change (increase or decrease) either in an asset or in a liability with the balance currency unchanged. Modifications, on the contrary, affect both parts of the balance sheet, while either increasing or simultaneously decreasing the balance sheet currencies.
3. Characteristics of business processes and business operations.
The objects of accounting supervision also include business processes and their constituent business operations, income and expenses that form the financial result.
public production How economic category is studied in the context of interrelated stages: production, distribution, exchange, consumption. The manifestation of each stage in the financial and economic activities of the organization is considered through economic and financial processes, which are objects of accounting supervision.
The stage of production is characterized by the processes of industrial consumption, release finished products, reproduction of fixed assets. The distribution stage is characterized by the processes of distribution of the finished product, distribution of profits, redistribution of funds. The stage of exchange is characterized by commodity circulation and the processes of supply (procurement), sale and money circulation, processes of financial and credit relations. The stage of consumption in the non-productive sphere at the organization level is considered from the point of view of consumption in the social sphere belonging to the organization (preschool institutions, clubs, dispensaries, etc.).
Modern tendencies in the theory of accounting, they proceed from the study of the impact of changes in the property of the organization and the sources of its formation on the financial position of the organization. Financial and economic activity is considered from the point of view of life cycle a manufactured product, characterized by the processes of procurement, production and sale, and an independent process (the stage of accounting supervision) of the use of profits (profit distribution).
The procurement process is characterized by the fact of the redistribution of funds, the emergence of financial or credit relations. The production process is characterized by production consumption (production costs), output of finished products, reproduction of fixed assets. The implementation process is characterized by the redistribution of funds, the emergence of financial or credit relations. The process of using profits is characterized by directions for using profits (accumulation for the expansion of production, for the development social sphere, consumption, settlements with the budget, compensation for losses).
All business processes represent a set of facts of economic activity (hereinafter FCD). Some FCDs do not affect the financial position of the organization. Those FCD, as a result of which there are changes in the property or the sources of its formation, are called business transactions. Business operations are among the main objects of accounting supervision; at the level of business operations, information about business processes is reflected in the accounting.
In order to correctly reflect information about business processes in accounting, it is necessary to clearly define the FCD, that is, to determine the moment of registration of this fact in accounting, to make its valuation, to determine the accounting accounts on which information about the completed FCD should be reflected. FCDs have certain economic and legal characteristics.
Conditional FCD recognize taking place on reporting date FCD, with respect to the consequences of which and the likelihood of their occurrence in the future, there is uncertainty, i.e. the occurrence of consequences depends on whether one or more uncertain events occur or not occur in the future. At the same time, the consequences of the conditional fact have a significant impact on the assessment by users financial statements financial position organization at the reporting date. The consequences of a conditional FCD can be: conditional profit, conditional loss, contingent liability, contingent asset.
4. Production and technological process
As you know, any enterprise has a tree of goals. The significance of goals can vary significantly, but in the vast majority of cases economic goals. In other words, the enterprise, on average, should operate at a profit (of course, recessions accompanied by a planned decrease in profits or temporary losses, perhaps, but only in a controlled amount or for a short time). Profit is defined as the excess of income over expenses (costs). In this block, we are talking about identifying and assessing the significance of factors (a) increasing income and (b) reducing costs.
As part of the solution of the first task - increasing income - the following is carried out: analysis of the fulfillment of planned targets and sales dynamics in various sections; rhythm of production and sales; sufficiency and effectiveness of diversification production activities; analysis of the effectiveness of pricing policy; assessment of the influence of various factors (capacity to labor ratio, workload of production capacities, shifts, price policy, personnel, etc.) on changes in the value of sales; seasonality of production and sales, calculation of the critical volume of production (sales) by type of product and division, etc. The results of the analysis are drawn up in the form of traditional analytical tables containing planned (basic) and actual (expected) values of production and sales volumes and deviations from them in physical and cost indicators, as well as in percentage terms.
The second task - reducing costs - involves planning and monitoring the execution of planned targets for costs (costs), as well as finding reserves for a reasonable reduction in production costs. The cost of products (works, services) is a cost estimate of the enterprise's resources used in the process of production and sale of these products.
Above, a generalized description of the resource support of production activities was given, however, when it comes to the implementation of a specific production process, certain types of assets, funds, and expenses are of great importance. So, for the manufacture of a certain type of product, one or another material and technical base can be used, different kinds raw materials, materials and semi-finished products, various production technologies, supply and marketing schemes, etc. Therefore, it is obvious that, depending on the chosen concept of organization and implementation of the production process, the level of cost can vary significantly and have a significant impact on the profit of the enterprise. This is what determines the importance of methods of analysis and cost management both in the management accounting system and from the position of managing the activities of the enterprise as a whole.
Product cost management is a routine, iterative process that constantly tries to find ways to reasonably reduce costs and costs. Within one production cycle and in the most general view this process can be presented in the form of fairly obvious sequential procedures:
forecasting and planning of costs (long- and short-term trends in changes in certain types of costs are determined, their benchmarks are set, providing access to certain values of profit and profitability indicators);
cost rationing (technically justified standards are established in natural and cost estimates for certain types costs, technological processes, responsibility centers);
cost accounting (costs are taken into account in a given nomenclature of items);
costing (distributed actual expenses and costs for costing objects, i.e. calculated actual cost products);
analysis of costs and prime cost (actual costs are analyzed in comparison with planned targets and standards, factors that caused significant deviations are identified, reserves for cost reduction are determined);
control and regulation of the cost management process (current changes are made to the cost management system in case of deviation from the planned cost dynamics, planning and rationing systems are refined).
As noted above, in the analysis of costs and production costs, two classification features are most widely used: the economic element and the costing item.
The economic element is understood as an economically homogeneous type of costs for the production and sale of products, which is at the level this enterprise does not seem appropriate to more detailed detail. For example, the element "Depreciation of fixed assets" summarizes all depreciation deductions regardless of for what purposes - industrial, social, managerial - this or that fixed asset was used; the cost of a purchased semi-finished product cannot be decomposed into the costs of living and materialized labor, etc.
Of course, the costs that the company is forced to bear in the course of the production process are objective, and the company itself determines the cost of production. At the same time, the state, to a certain extent, regulates this process by rationing the costs attributed to the cost and taken into account when calculating taxable profit. This regulation is carried out with the help of the document "Regulations on the composition of costs for the production and sale of products (works, services)", which just provides a single nomenclature of economic cost elements for enterprises, regardless of ownership and organizational and legal forms. Clause 5 of the Regulations identifies the following cost elements:
material costs (minus the cost of returnable waste);
labor costs;
deductions for social needs;
depreciation of fixed assets;
other costs.
Accounting and analysis of costs by elements allows you to calculate and optimize the planned and actual costs for the enterprise as a whole for such large items as wages, purchased materials, semi-finished products, fuel and energy, etc.
A costing item is understood as a certain type of cost that forms the cost of production as a whole or its separate type. The separation of such types of costs is based on the possibility and expediency of their identification, evaluation and inclusion (direct or indirect, i.e. by distribution in accordance with a certain base) in the cost of a particular type of product.
If the grouping of costs by economic elements allows you to identify individual types of costs for reporting period regardless of whether the production of products is completed or not, the grouping by costing items makes it possible to determine the cost of products that have completely passed the production cycle and are ready for sale or sold.
The composition of the calculation items varies depending on the industry sector of the enterprise; in particular, for an industrial enterprise, the typical nomenclature of articles is as follows:
Raw materials.
Returnable waste (subtracted).
Purchased products, semi-finished products and services of an industrial nature of third-party enterprises and organizations.
Fuel and energy for technological purposes.
Wages of production workers.
Deductions for social needs.
Costs for development and preparation of production.
General production expenses.
General running costs.
Marriage loss.
Other production expenses.
Business expenses.
The first eleven items constitute the so-called production cost; with addition business expenses, i.e. costs associated with the sale of products, formed the full cost of production and sales.
In the cost management system, an important role is played by the division of costs into direct and indirect costs. Direct costs are costs that, at the time of their occurrence, can be directly attributed to the costing object on the basis of primary documents. Indirect costs include costs that at the time of occurrence cannot be attributed to a specific object of calculation, and in order to get into its cost, they must be previously accumulated on a specific account and subsequently distributed among all objects in proportion to a certain base.
Examples of direct costs are the costs of raw materials and materials, semi-finished products, wages of workers involved in the production of this type of product, etc. Indirect costs include the costs of preparing and developing production, general production costs, general running costs and others. The following can serve as the basis for distribution: direct costs, wages of production workers, the volume of output, etc.
Note that the division of costs into direct and indirect, as well as the choice of the basis for the distribution of the latter in order to include them in the cost, always have a certain amount of subjectivity.
With regard to the calculation methods used in domestic practice, then their number is large enough; one of the approaches to the classification of methods and a brief description of them can be found in. In Western practice, the most common system of direct costing, which implies the division of costs into conditionally fixed and variable; the former are attributed to the costs of the current (reporting) period, the latter to the cost (see, for example,).
In the considered cost management scheme, the analytical block is only one of several, but its significance is obvious. This block analyzes the dynamics or implementation of the plan (compliance with standards) for certain types of costs. In Western accounting and analytical practice this procedure refers to the competence of the work of accountants and is one of the sections of management accounting. Analysis logic in this case traditional:
the object of analysis is identified (usually, these are either economic cost elements or cost items allocated for costing);
a certain benchmark is established (plan, standard, base value);
the actual value of the object of analysis is calculated;
deviations are calculated actual values from a given landmark;
managerial decisions (most often, of an operational nature) are made depending on the significance of deviations.
The described scheme of analytical procedures in Western accounting and analytical practice is called variational analysis and, most often, is one of the key elements of the management by exception system *.
* Deviation management is a concept of organizing management intra-company control, when managers pay attention to identifying the causes of deviations in actual results from planned ones only if these deviations are significant. In other words, it is considered irrational and unjustified to spend time on a thorough analysis of any deviations; The released time resource is used to solve tactical problems.
However, it can also be considered as an element of the internal analysis system, and its detailing from the standpoint of accounting and analytical procedures is not fundamentally difficult and depends on the chosen approach in identifying cost elements.
In conclusion, we note that in this article we did not clarify the concept of the production and technological process and interpreted it in a broad sense, abstracting from industry specifics. In a concrete analysis, this concept must be clarified, specified, and, in addition, its individual stages can be isolated. For example, for a machine-building enterprise, for the purposes of analysis, it is possible to separate the processes of production and marketing of finished products, for a trade enterprise, the production and technological process is transformed into a trade and technological process, while other criteria and indicators arise (quality of service, forms of trade, types of reserves, etc.) . Such a specification is primarily important for in-house analysis.
Bibliography
Barngolts S.B. Economic analysis of economic activity on present stage development. - M.: Finance and statistics. 1984.
Drury K. Introduction to management and production accounting: Per. from English. / Ed. S.A.Tabalina. - M.: Audit, UNITI, 1994.
Efimova O.V. The financial analysis. - 3rd ed., revised. and additional - M: Publishing house "Accounting", 1999.
Kovalev V.V. Introduction to financial management. - M.: Finance and statistics, 1999.
Nikolaeva S.A. Features of cost accounting in market conditions: "direct costing" system: Theory and practice. - M.: Finance and statistics, 1993.
Rusak M.A. Perfection economic analysis in the confectionery industry. - M.: Agropromizdat, 1986.
Sokolov Ya.V., Pyatov M.L. Accounting for managers. - M.: "Prospect", 2000.
Theory of analysis of economic activity: Textbook / Ed. ed. V.V. Osmolovsky. - Mn.: Vysh. school, 1989.
Theory of economic analysis of economic activity / Ed. A.D. Sheremet. Moscow: Progress, 1982.
Sheremet A.D., Negashev E.V. Methodology financial analysis. - M.: INFRA-M, 1999.
Samuelson P.A. Foundations of Economic Analysis. - Cambridge, 1947.
Schumpeter J. A History of Economic Analysis. - New York: Oxford University Press, 1954.
One of the main tasks of accounting is the formation of information about the assets and liabilities of the company, its expenses and income, as well as the most important facts of activity. In most cases, the subject of accounting are business transactions. About what types they are and how they are reflected in accounting, read in this article.
IN current legislation according to accounting there is no exact definition of households. operations. However, Federal Law No. 402 gives a definition of the fact of households. life.
The fact of economic life implies a transaction or operation that affects economic situation companies, financial condition and the movement of money. It can be said that the the operation is the fact of the owner. life.
Business operations and processes
Business processes and business operations are closely interconnected. After all, the owner processes in accounting are a set of households. operations.
The essence of the operation is one of the most important characteristics of the fact of economics. life, because depending on it, certain postings are made in accounting.
Here is a table of the content of business operations and processes:
Main types of operations
There are four types of business transactions:
- Operations of the first type have an impact on the composition of property objects, that is, only on the balance sheet asset. No changes are made to obligations.
- When carrying out operations of the second type, the sources from which the company's property is formed change. So, only the passive part changes. This does not apply to the balance sheet.
- Operations of the third type affect both the property of the company and capital. Changes are being made in a big way. Both in terms of liabilities and assets, the balance sheet currency is growing.
- When carrying out transactions of the fourth type, both the active and passive parts of the balance are reduced (moreover, by an equal amount).
Examples of hosts operations
Here are some examples of business transactions in accounting:
- First type:
- D43 - K20 - release finished goods from production.
- D94 - K10 - a shortage of valuables was detected during the inventory.
- Second type:
- D80 - K84 - the size of the Criminal Code has decreased to the size net assets firms.
- D96 - K70 - accrual of vacation pay at the expense of the reserve.
- Third type:
- D76 - K91 - accrual of a fine for violation of the conditions specified in the contract.
- D08 - K70 - payroll for workers who install the OS object.
- Fourth type:
- D91 - K52 - negative exchange rate difference on the account in foreign currency. currency.
- D91 - K63 - the formation of a reserve for doubtful debts.
Features of reflecting transactions in accounting
Business transactions in accounting must be reflected in accordance with certain rules.
So, the group of costs that are associated with the production process is formed by the costs arising in connection with:
- The number of products;
- The volume of materials and raw materials;
- The number of MPZ.
Some of these may arise when inventory is processed to:
- Provision of various kinds of services;
- Execution of works;
- Manufacture of goods;
- Stock sales.