Fund accounting registration
fund account
The cash that is used in every institution to make daily payments and receipts is registered under the title of fund in the accounting books.
Fund accounting registration
fund account
The cash that is used in every institution to make daily payments and receipts is registered under the title of “Fund” in the accounting books.
Fund accounting registration
Since the fund account is part of the assets, its increase is a debit and its decrease is a credit.
An increase on the right side of the basic accounting equation (assets) is a debit and a decrease is a credit. An increase on the left side of the basic accounting equation (liabilities and capital) is a credit and a decrease is a credit.
Assets = Liabilities + Capital
debtor debtor
creditor creditor
ℹ To explain this issue, pay attention to the following example:
Example 1: Arya Institute received a loan of 480,000 Rials from Tawana Institute on 2/1/2018. The registration of this event in the newspaper of Arya Institute and Tawana Institute is as follows:
Fund 480,000
Accounts Payable 480,000
Accounts receivable 480,000
Fund 480,000
As you can see, due to the fact that Aria Institute has received cash, the fund account in Aria Institute has increased; Therefore, it has become a debtor. Also, due to the fact that the Tawana institution has paid cash, the fund account in the Tawana institution has decreased, therefore it has become a creditor.
Controlling the actual balance of the fund with the books and recording the relevant discrepancies
Considering that multiple receipts and payments by the cashier may lead to an addition or deduction of the receipt; It is necessary to regularly compare the balance of cash in the fund or the balance of the fund account in the general ledger so that any addition or deduction of the fund is discovered and investigated.
In many institutions, they pay money to the cashiers every month as an extraordinary fund deduction, and in this way, the cashier will be responsible for the partial deduction of the fund, which is usually caused by not receiving change. But in spite of this, there are also institutions that record deficits or surpluses of the fund in an account called the account (deficits and surpluses of the fund).
When there is a deficit in the fund, the account of deductions and additions of the fund is debited, and when the fund is justified with an addition, the account of deductions and additions of the fund is credited. To explain this issue, pay attention to the following example:
Example 2: The total cash sales of Koresh store on 7/25/2018 is 4,867,500 Rials and the cash collected on that day is 4,866,000 Rials. It is desirable to register this event in the Koresh store newspaper.
Fund 4866000
1,500 fund deductions
Selling 4667500
Example 3: The total cash sales of Koresh store on 7/26/2018 is 3,977,400 Rials and the cash collected on that day is 3,979,000 Rials. It is desirable to register this event in the newspaper office of Kuresh Store:
Fund 3979000
Deductions and additions to the 1600 fund
Sale 3977400
If there is a debit balance at the end of the year, it is considered an expense, and if it has a credit balance, it is an income and should be closed.
when there is a deficit in the fund; The account of deductions and additions of the fund is debited, and when the fund encounters a surplus, the account of deductions and additions of the fund is credited.
If there is a debit balance at the end of the year, it is considered an expense, and if it has a credit balance, it is an income and should be closed.
@accounting_samen
@unisamenAccounting
This post is written by seyedsajjadam