Definitions of basic concepts and basic accounting operations;
Major headings of accounting are assets, liabilities, capital, income, expenses, withdrawals
Part 5: Continuation of other accounting concepts and operations
Accounting document:
In some accounting systems, instead of recording the financial activities directly from positive documents in the books, accountants prepare an accounting sheet or newspaper document. This paper or document is a document in which one or more financial activities are performed as a debit or credit depending on the type of account. Of course, it should be noted that the accounting sheet or newspaper document can be registered in the accounting books after the signature of the competent authorities in an institution. The accounting sheet has columns to record the account number in the general ledger and certain ledger, and also the title of the accounts and the full description of the transaction and its date are written in the column.
In accounting, each account has a nature, that is, accounts are either debit or credit in nature. The nature of the accounts originates from the discussion of the two-way nature of accounting, and the control of some accounts is done by knowing the nature of that account. Accounts in a general category are divided into two types of temporary accounts and permanent accounts.
Temporary accounts:
There are accounts that are related to accounting operations in a financial year and at the end of the year they are closed with an intermediate account or so called zero, and finally the results of their operations are transferred to permanent accounts and they are reopened at the beginning of the next year. Profit and loss accounts are also called income and expense accounts.
Permanent accounts:
There are accounts that have been opened since the beginning of the establishment of a business unit and the accounting operations of different years have been carried out in them, and their balances are transferred from one year to the next financial year. In addition, these types of accounts are also called balance sheet accounts such as assets, liabilities and capital accounts.
balance sheet:
Sometimes it is also called the financial position. It is a list of all the assets, liabilities and capital of a business unit on a certain date, which is usually the end of the financial period. In general, the balance sheet is based on the accounting equation, and as its name suggests, both sides must be equal.
Account in the form of T (T):
A T shape is usually used to summarize each account, the right side of which is called the debtor or beneficiary and the left side is called the creditor or beneficiary.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ
This post is written by Mahdi_kohsoltani