The responsibility to record all ongoing business transactions falls on the shoulders of many legal entities and individual entrepreneurs. According to Russian legislation, economic entities must constantly maintain accounting records, unless otherwise provided by Federal Law N 402 “On Accounting” dated December 6, 2011.
The cornerstone of accounting can be considered an accounting entry, with the help of which any action of the company (purchase of materials, payment of salaries, etc.) is reflected in numbers - that is, the fact of a change in the state of the objects taken into account is recorded. Let's discuss how typical accounting entries are prepared and look at examples.
What is an accounting account?
It is very difficult for novice accountants to understand the preparation of entries without a clear understanding of what an account is, so it is better to move “from the stove”.
Account- a certain position in business accounting necessary for continuous monitoring of the ongoing movement of property owned by the company, as well as the sources of its formation. This is done by using the double entry method, when one transaction is reflected twice - as a debit to one account and as a credit to another. All accounts that are used in the accounting of commercial companies are systematized and grouped in a special document - the chart of accounts.
Advice: When analyzing transactions and making entries, it is best to keep at hand a general chart of accounts for accounting the financial and economic activities of organizations.
Accounting accounts are divided into three types depending on what object is subject to accounting:
- Active– are intended to display in monetary terms information about the organization’s economic assets and resources. For example, materials (10), cash in the cash register (50), finished products (43), etc. The opening balance of active accounts is recorded only by debit, the ending balance is the same. Transactions that are characterized by an increase in the company's funds are indicated as a debit of the account. If resources decrease, the entry is credited.
- Passive– they take into account in monetary terms the state, movements and changes in the sources through which the company’s economic assets were formed. For example, depreciation of fixed assets (02), trade margin (42), authorized capital (80), etc. The opening and closing balances can only be for the loan. Entries that increase the account go to credit, and those that decrease it go to debit.
- Active-passive– insidious accounts that play the role of both passive and active. It is important to understand which account sign is triggered in each specific situation. The opening balance can be recorded both as a debit and as a credit; It is possible to have a debit and credit opening balance at the same time. For example, active-passive account 76 “Settlements with various debtors and creditors.” If a company has accounts receivable (that is, someone owes it), then the amount is written as a debit, and in the case of accounts payable (the company owes someone), the figure is reflected as a credit.
When accountants were forced to carry out calculations without using a computer, accounts were drawn in the form of original tablets, which were popularly called “airplanes.” Each account has its own scheme, they look like this.
- Typical active account scheme:
- Typical passive account scheme:
- Typical active-passive account scheme:
How are accounting entries prepared?
Accounting entries are based on the principle of double entry: the transaction amount is recorded as a debit to one account and a credit to another, that is, a balance is always maintained, which is why the asset must always be equal to the liability.
Example: Let's assume that the founder of the LLC made a contribution to the authorized capital in the amount of 10,000 rubles by depositing the money into a current account. Then we can draw the following conclusion - the company acquired assets (cash), and at the same time, obligations to the founder arose. The result will be the following double entry: Dt 51 “Current account” – Kt 80 “Authorized capital” – 10,000 rubles.
The meaning and essence of the wiring is easy to understand if you realize that nothing in this world comes out of nowhere and disappears without a trace. Everything is logical - we bought the materials, which means we paid money for them. In other words, there was an increase in materials, but a decrease in finances. There is an interesting point here: movement between items can occur without changing the total for assets and liabilities. For example, the production of goods was completed, therefore, they became finished goods. Two active accounts were affected - one decreased and the other increased by the same amount. Posting in this situation: Dt 43 “Finished products” – Kt 20 “Main production”.
And if a company pays a debt to a supplier from a current account, then there will be a simultaneous decrease in assets and liabilities, since this operation affects the active cash account and the active-passive (the passive sign is triggered, as our company must) account reflecting accounts payable. Posting: Dt 60 “Settlements with suppliers and contractors” – Kt 51 “Settlement account”.
Accounting entries for specific business transactions
The number of balance sheet accounts approaches a hundred - of course, this is a lot, especially if you remember that some have numerous sub-accounts. This diversity leads to complications: there are a great many typical accounting entries - just imagine all the possible combinations. Moreover, it must be borne in mind that some transactions are recorded not in one, but in several transactions. It is probably impossible to consider all the options, but it is quite possible to highlight those that most organizations face. Let's discuss different cases, presenting information with answers in tables.
For fixed assets accounting
Fixed assets– these are material assets that are directly involved in production processes and are present in the activities of many companies (buildings, structures, transport, tools and even perennial crops and breeding livestock). Their distinctive feature is the period of use - it must exceed one year. For example, fixed assets (PE) include production equipment. Everyone understands that you can work with it for more than 12 months, but over time, its useful life expires, that is, banal wear and tear occurs. Therefore, the cost of fixed assets is gradually transferred to the cost of production through depreciation.
Let us present in the table the postings-responses for those typical accounting transactions that relate to fixed assets:
Fixed assets are accepted for accounting at their original cost, which is the sum of all costs associated with the acquisition of an asset. That is, this includes not only the direct costs of purchasing an OS or its construction, but also the cost of delivery, installation, consulting services, and the like. However, we must remember that, in accordance with PBU 6/01, assets whose value does not exceed 40,000 rubles can be reflected in accounting as part of inventories (inventory) - their receipt is reflected in account 10 “Materials”.
By accounting for intangible assets
A company's intangible assets have no physical form, yet they are capable of generating economic benefits and can be clearly identified. For example, intangible assets include the business reputation of a company and various objects of intellectual property - you cannot touch it with your hands, but exclusive rights to something (a trademark, a program, breeding achievements, etc.) often make it possible to receive significant income.
Answers to the main questions related to accounting of intangible assets are presented in the table:
Organizational expenses incurred during the formation of a legal entity cannot be classified as intangible assets (PBU 14/07).
According to inventory accounting
All companies involved in manufacturing are constantly faced with the need to purchase materials (inventory, or inventories). As a rule, even for novice accountants, their accounting does not cause difficulties - the answers and postings for typical transactions can be seen in the table:
Nowadays, fuel cards are widely used by many organizations whose activities are closely related to transport. Novice financiers often have difficulties with this, since at present there is no clear legally approved procedure for carrying out this procedure - some believe that account 10 “Materials” can be used, but experts say that this approach is incorrect and advise using off-balance sheet accounts.
Advice: several years ago, a specially developed by the Federal Tax Service came into use among accountants, but not all companies wanted to get acquainted with it, fearing innovations. If you do not yet use UPD, then you should think about changing the situation, since this will allow you to significantly reduce document flow, and therefore significantly save time.
By accounting for production costs
For people starting to understand the preparation of accounting entries, it is sometimes quite problematic to deal with the accounting of production costs, because several accounts are intended for them. Usually, the accounting policy of the organization prescribes how the valuation of retiring inventories occurs (PBU 5/01). Let's look at the answers to the most common situations in the table:
Production cost accounts include 20, 21, 23, 25, 26, 28, 29.
For accounting of finished products and goods
Many companies build their business on the sale of any goods, so it is important for novice accountants to understand how their accounting is carried out. Answers in the form of entries for typical business transactions involving the purchase and sale of marketable products can be found in the table:
If an organization is engaged in purchasing goods from suppliers, then great attention should be paid to checking the documentation provided by the counterparty. Remember that you have the right not to rush joyfully to the first offer if it seems unprofitable. In this case, it is usually drawn up, reflecting the position of the party who disagrees with any conditions.
Important: the table shows only the basic standard accounting entries - in the accounting of goods and finished products, there are a lot of options possible, since they often need to be revalued and are sometimes made as a contribution to the authorized capital (or in general the company receives them for free). To become familiar with all situations, it is necessary to study in detail the Accounting Regulations and other special literature.
Cash accounting
While not all companies deal with the production of products, probably absolutely all of them work with money. For financial accounting, two accounts are most often used - 50 “Cash” and 51 “Current account”. From the names it is intuitively clear - money is usually stored either in the cash register or in a bank account. Let's look at typical transactions in the table that affect the organization's funds and give the answers in the form of transactions:
Novice accountants should remember that when carrying out transactions with funds, the appropriate documentation must be drawn up - payment orders, cash receipts and expenditures, advance reports, etc.
According to settlements with staff
Partial answers to questions on typical accounting entries affecting the payment of employees were given above; To make the information easier to perceive, we group them in a table:
Accounting for credits and loans
Who hasn’t needed a loan in these difficult times? Entrepreneurs are no exception - often business development requires additional financial investments, and there is simply nowhere to get them... Then businessmen usually go to banking institutions. Novice accountants will be able to process “credit” transactions without any problems, because there are not many options here - you need to reflect the loan received, etc. For clarity, we present typical postings-responses in the table:
The table most often contains two accounts - 66 and 67. You need to choose depending on the loan term: account 66 is called “Calculations for short-term loans and borrowings,” and 67 is called “Calculations for long-term loans and borrowings.”
For transactions with authorized capital
Authorized capital is financial funds or any property that the founders contributed during the registration of the LLC. There is an opinion in society that a contribution to a management company necessarily represents money, but this is not at all true - if you are the owner of a building, then, of course, you can become the founder of an LLC by contributing your real estate to the authorized capital. What else can you use as a contribution? We will answer this question in the table, giving typical entries for accounting of authorized capital:
For accounting of financial results
Of course, the goal of any business activity is to generate income. The financial result is determined by the profit or loss generated by the end of the reporting period. If income exceeds expenses, then the property of the enterprise increases, that is, the company makes a profit; in the opposite situation, there is a loss. Let's consider in the table how entries are made for transactions related to the formation of the financial result:
Account 90 “Sales” reflects revenue as a debit, and as a credit – costs that relate to cost, as well as excise taxes and taxes. When the balance of account 90 is in credit at the end of the period, profit is recognized. If the balance is debit, then the company has incurred a loss. It should be remembered that account 99 is written off to 84 on the last day of the reporting period, that is, its balance becomes zero.
Is it possible to make transactions online?
Today, many Internet services lure novice accountants with the opportunity to make transactions online - automatically, free of charge and in real time. Of course, no one forbids taking advantage of the offer, but it is worth understanding that the business operations of each specific company have their own subtleties and nuances, so it is easy to end up with incorrectly formed accounting entries. It is logical that a person engaged in accounting should know the chart of accounts and PBU by heart, and the owners of this information usually do not need help in analyzing business transactions.
Important: If you still do not want to deal with the preparation of accounting entries yourself, then it is better to use special software, for example 1C: Accounting.
Let's sum it up
The main purpose of accounting is to provide information about the state of the company's property, capital and liabilities. Reliable data is generated through continuous accounting, which is carried out using the double entry method, when the transaction amount is reflected in the debit of one account and the credit of another.
There will not be any particular difficulties with the preparation of accounting entries if novice accountants are well versed in the chart of accounts and understand how this or that business transaction affects the assets and liabilities of the organization.
According to the Federal Law of the Russian Federation “On Accounting”, all organizations carrying out business activities as legal entities are required to maintain accounting records. Based on this Law, the “Regulations on accounting and financial reporting in the Russian Federation” were adopted, which explains the necessary principles.
Every day millions of payments are made around the world. They are made by both ordinary people and businesses. Any business must take into account its own payments to keep them under control. Therefore, any payment is accounted for through accounting entries.
Accounting entries are accounts, drawn up on actual papers, reflecting the amount of a business transaction that is subject to accounting.
Any information about actions performed on accounts is marked with a double entry, i.e. in the debit of one account and in the credit of another, for an identical amount. With its help, all accounts assume a single interconnected structure.
The relationship between debit and credit settlements, formed in the process of double entry, is called a correspondent accounts account, and the accounts participating in this relationship are called correspondent accounts.
To understand the concept of accounting for debit and credit accounts, the following features of account accounting were introduced into accounting:
- asset – reflects the values owned by the organization;
- liability – displays the organization’s debt to creditors;
- active-passive account – displays one-time debit and credit debt.
Posting table with trading examples:
Table: Receipt of goods from the supplier. 
Table: Sales of goods at the time of shipment (OPT). 
Table: Sales of goods at the time of shipment (Retail). Accounting entries for beginners under an assignment agreement
An assignment agreement is a replacement of a creditor under an obligation. There are three parties to the contract. Accounting for parties looks like in the following way:
- debtor– all debt transactions are reflected in analytical accounting. Costs identified during the validity of the assignment agreement are reflected in other expenses. Changing the lender will not affect financial accounting;
- assignor– the assignment agreement does not generate either income or expenses. But the fact of execution of the operation increases its liquidity;
- assignee– when assigning a debt, records it in debit as a receivable for the amount of the debt, then displays it in credit pending the transfer of funds.
The following table with examples for an assignment agreement will help beginners make accounting entries:
Table: Postings under the assignment agreement. Cash transactions in accounting
Cash transactions involve receiving, issuing and storing cash. Accounting for cash transactions is based on the regulations of the Tax Code of the Russian Federation.
What is depreciation of fixed assets in simple words? The answer is found
When maintaining a cash register, the following documents are used:
- cash receipt order - to record cash receipts;
- expense cash order - to record cash expenses;
- cash book – takes into account all movements on the cash register.
Table of accounting entries with answers:
Provision of services
An organization can either provide services to third parties or use the services of a third party. Accounting for accounting entries in this case will be different.
The main tasks are the following:
- reliable and complete information content of all transactions performed;
- providing information to all participants in the process;
- avoiding a negative outcome for these operations;
- proper documentation;
- competent reflection of expenses in the process of operations;
- receiving monetary profit from the transaction.
Table with answers for business transactions related to the provision of services to third parties:
Table: Provision of services to third parties. 
Table: Obtaining services from a third party. How to prepare accounting entries for fixed assets?
An organization that has fixed assets on its balance sheet is obliged to take them into account in the balance sheet. It is worth noting some features in this process:
- By accepting a fixed asset for accounting, its initial cost is determined;
- a fixed asset has a useful life - this is the period during which it generates income;
- it is necessary to depreciate the fixed asset, i.e. write off its partial cost;
- revaluation is not mandatory, the organization has the right to carry it out;
- expenses for capital or current repairs of fixed assets are recorded on debit expense accounts;
- write-off of a fixed asset occurs in the event of non-receipt of profit or its disposal.
Table of accounting entries for fixed assets with examples:
Closing of the year
According to the law, a period is defined for which all economic activities of the organization are carried out; this period lasts from January 1 to December 31. Based on this period, January 1 is the new reporting date, and December 31 is the final one.
You can read how to independently draw up an accounting certificate about correcting an error and writing off debt
Closing the year sums up all the annual financial results of the organization. That is, it resets the balances on accounts 90 and 91, and closes account 99. As a result, the total, profit or loss is recorded in account 84.
Closing is done on a full year basis. In accounting, the year end is shown as December 31st. After closing, the organization begins a new period with zero financial balances.
Table with examples:
Examples of accounting entries for taxes and state duties
Tax expenses and state duties are displayed in the period of actual payment. Based on the purpose of the payment, you need to consider:
- write-off of costs for core activities;
- posting of expenses to other expenses, if they are not related to the main activity;
- accounting as part of the property.
Payment of taxes and state duties is carried out from the organization's current account. When paying, you must take into account all the payer's details and the correct purpose of the payment.
Examples of postings are clearly shown in the following table:
Loans issued
The organization has the right to issue a loan to a third party organization or individual. Such a transaction must be certified in writing on both sides as a loan agreement. The loan agreement usually specifies the interest level, the period of validity of the agreement, and the payment schedule.
If the interest level is not determined, you can take the current refinancing rate as a basis. The loan agreement can also be interest-free, which must also be stated in the agreement.
The loan can be issued either in cash or in kind; it is worth noting that VAT is not assessed for a cash loan.
The amount of interest received is included in sales revenue or other income. This does not affect financial results.
Acquiring
Acquiring is non-cash payments with the buyer through an intermediary, which is the bank, on the basis of a concluded agreement between the organization and the acquiring bank.
- use of a POS terminal for processing bank cards;
- The POS terminal is listed on an off-balance sheet account (if provided by a bank), or as a fixed asset (if acquired as an asset of an organization);
- proceeds from the sale are credited to the account in an amount reduced by the amount of the acquiring bank's commission, but the entire amount of proceeds is indicated in the income;
- the acquiring bank's commission is included in the costs.
Accounting entries for acquiring in the table:
Accounting is equipped with a large number of entries; an experienced accountant knows that the reflected data must be correct and literate, in accordance with established rules. First of all, the accountant must understand the importance of this and be aware of the responsibility that lies with him.
If information is distorted or trying to avoid providing it, the manager and accountant will be held liable under Art. 15.11 Code of Administrative Offenses of the Russian Federation.
How to prepare accounting entries correctly? Watch the following video for recommendations:
Accounting involves the formation of records reflecting the facts of the company's economic activities. In the article we will give the concept of accounting entries and talk about the principles of double entry. Here is a list of the most frequently used transactions in the economic life of an organization.
Double entry system and chart of accounts
The fundamental method of accounting is the double entry method. It consists in the fact that to reflect the state and movement of each accounting object, a separate accounting account is opened:
- fact of economic life;
- property;
- obligations;
- income;
- expenses.
It consists of two parts: debit and credit. When reflecting a transaction as a debit to one account, it must simultaneously be reflected as a credit to another. It is such a record, reflecting a business transaction and containing an indication of the debited and credited accounts, that is called an accounting entry.
The use of this method should ensure at any time balance equality between the summarized turnover of debit and credit accounts.
Order of the Ministry of Finance No. 94n approved the chart of accounts. It is the basis for developing the chart of accounts used by the company in its work. It is on this basis that standard accounting entries are formed. Let's look at the most common wiring in a company's activities.
Typical entries for accounting of property and other assets
| Operation | Debit | Credit |
|---|---|---|
| Fixed assets | ||
| Fixed asset item purchased | 08 | 60 |
| Purchased equipment that requires installation | 07 | 60 |
| VAT on purchased fixed assets is reflected | 19 | 60 |
| Equipment handed over for installation | 08 | 07 |
| The fixed assets object was put into operation | 01 | 08 |
| Depreciation accrued | 20, 25, 26, 44 | 02 |
| Fixed asset object sold | 62 | 91 |
| The initial cost of the object is written off upon disposal (write-off, sale) | 91 | 01 |
| Accrued depreciation written off upon disposal | 02 | 91 |
|
Reflects the financial result upon disposal of a fixed asset item |
||
| profit | 91 | 99 |
| lesion | 99 | 91 |
| Tangible current assets (inventories, finished products, goods) | ||
| Materials for production and other economic activities were purchased | 10 | 60 |
| Materials written off for production of products, performance of work, provision of services, wiring | 20 | 10 |
| Materials written off as general production expenses | 25 | 10 |
| Recorded write-off of inventory items for management needs | 26 | 10 |
| Unnecessary materials are sold outsourced | 91 | 10 |
| Purchased goods for resale | 41 | 60 |
| Cost of goods sold written off | 90 | 41 |
| Finished products released | 43 | 20 |
| Finished products sold to customers | 90 | 43 |
| At the time the result of the work is delivered to the customer, the cost of services provided and work performed is written off | 90 | 20 |
| Settlements with debtors | ||
| Products sold to customers, services provided | 62 | 90 |
| The advance previously received from the buyer is credited, posting | 62 | 62 |
| Advance paid to supplier | 60 | 51 |
| A loan was issued to a third party organization or to an employee of the organization | 58 | 51 |
| Cash flow accounting | ||
| Payment received from buyers | 51 | 62 |
| Paid for supplies to suppliers | 60, 76 | 51 |
| Funds have been received at the cash desk from the current account | 50 | 51 |
| Money transferred from one current account to another | 51 | 51 |
| Wages paid | 70 | 50, 51 |
| 68, 69 | 51 | |
| Money issued on account | 71 | 50, 51 |
| Paid for bank services | 91 | 51 |
Basic accounting entries for accounting for liabilities and capital
| Operation | Debit | Credit |
|---|---|---|
| Capital | ||
| The formation of the authorized capital is reflected | 75 | 80 |
| As payment, shares in the authorized capital were received from participants: | ||
| cash | 51 | 75 |
| fixed assets | 08 | 75 |
| Increasing the authorized capital at the expense of retained earnings | 84 | 80 |
| Settlements with creditors | ||
| Bank loan received | 51 | 66, 67 |
| Accounts payable to suppliers are reflected | 08, 10, 25, 26, 41 | 60 |
| The previously transferred advance payment to the supplier has been credited, posting | 60 | 60 |
| Debts paid to suppliers | 60 | 51 |
| Advance received from buyer | 51 | 62 |
| Salary accrued | 20, 25, 26, 44 | 70 |
| Wages paid | 70 | 50, 51 |
| The accrual of insurance premiums is reflected | 20, 25, 26, 44 | 69 |
| Reflects the accrual of taxes included in costs | 26, 44, 91 | 68 |
| Taxes and contributions to the budget are transferred | 68, 69 | 51 |
Reflection of income, expenses and financial results
| Operation | Debit | Credit |
|---|---|---|
| Income and expenses from core activities | ||
| Sales revenue reflected | 62 | 90 |
| VAT charged on the sales amount | 90 | 68 |
| Reflects the cost of goods sold, products, services rendered | 90 | 41, 43, 20 |
| Write-off of management expenses reflected | 90 | 26 |
| Business expenses written off | 90 | 44 |
| Other income and expenses | ||
| Income received from other sales | 62 | 91 |
| Cost of materials sold written off | 91 | 10 |
| Interest accrued on received loans and borrowings | 91 | 66, 67 |
| Interest accrued on issued loans and borrowings | 66, 67 | 91 |
| Financial results | ||
| Profit received from sales is reflected | 90 | 99 |
| The loss received from the sale is reflected | 99 | 90 |
| Positive results from other activities | 91 | 99 |
| Negative result from other activities | 99 | 91 |
| Profit tax accrued | 99 | 68 |
| Retained earnings are reflected at the end of the year | 99 | 84 |
| Based on the results of the year, the resulting loss is reflected | 84 | 99 |
| A decision was made to pay dividends | 84 | 75 |
| Dividends transferred to founders | 75 | 51 |
And submission of accounting and tax reporting for OSN:
RATE |
Number of documents per month |
Cost of services rub. |
Note |
|
by mail |
personally to the Federal Tax Service and funds |
|||
Tariff "ZERO" |
In the absence of activity |
For the quarter |
||
Tariff "NEW" |
Up to 10 accounting entries |
Monthly |
||
Tariff "UNIVERSAL" |
Up to 30 accounting entries |
Monthly |
||
Tariff "ECONOMY" |
Up to 100 accounting entries |
Monthly |
||
Tariff "STANDARD" |
Up to 200 accounting entries |
Monthly |
||
Tariff "CLASSIC" |
Up to 500 accounting entries |
Monthly |
||
Tariff "SPEC" |
From 500 or more accounting entries |
Monthly |
||
Compilation and submission of individual information at the end of the year to the Pension Fund of Russia |
Up to 5 people |
For the quarter |
||
Annual confirmation of the main type of activity to the Social Insurance Fund |
Any activity |
For the quarter |
||
Additional services |
||||
Restoration of accounting and tax records |
With amendments to tax returns and submission to regulatory authorities |
Negotiable |
||
Drawing up and submitting 1 updated tax return |
In case of distortions due to incomplete provision of information by the Customer, resulting in distortion of the amounts indicated in the primary documentation |
|||
Additional indicators that may affect the increase in service costs:
In every enterprise, during the course of its activities, many business transactions arise that must be taken into account in accounting. To account for them, there are accounting accounts, which we discussed in detail in, and we figured out what kind of accounts there are, noted the features of active, passive and active-passive accounts. Transactions are recorded in accounting accounts using postings. What is this wiring?
How to prepare accounting entries? What is the principle of double entry in accounting? Let's look at these questions in the article below. In addition, we will give some examples of correct postings.
The essence of double entry
At the time of any transaction, a change occurs in the funds and sources of the enterprise, which are recorded in the accounting accounts. Each operation affects two accounts, the transaction amount is simultaneously reflected in the debit of one and in the credit of the other. This is the double entry method.
Example:
Let us explain the principle of double entry using a simple example. Let's take any operation, for example, the receipt of cash from a buyer to the cash register. In this case, there is a simultaneous increase in cash on hand and a decrease in the buyer’s debt. Cash is accounted for; all settlements with customers are reflected in the account. 62.
According to the principle of double entry, we must reflect this event on two accounts: 50 “Cash” and 62 “Settlements with customers”. The amount of cash received must be reflected as a debit for one and a credit for the other.
Cash is an asset of the enterprise, an increase in the asset is reflected in the debit of the account, that is, the amount received must be reflected in the debit of the account. 50.
The buyer's debt is also an asset; the reduction in debt is reflected in the credit account. 62.
That is, a business transaction - the receipt of cash from the buyer in the accounting department is reflected using a simultaneous double entry for debit 50 and credit 62. The entry is made for the same amount in the amount of cash received.
The concept of accounting entry
A double entry in accounting is a posting, or rather an indication of the accounts for the debit and credit of which an entry was made for the amount of the transaction.
Let's take our example above, we made a simultaneous entry for debit 50 and credit 62, an entry of the form Debit 50 Credit 62 will be a posting. For convenience, it is reduced to the form D50 K62.
The two accounts that participate in the accounting entry are called corresponding accounts. And the relationship between these accounts is called correspondence of accounting accounts.
Examples:
Here are some more examples of accounting entries:
D10 K60 – materials from the supplier are accepted for accounting.
D70 K50 – wages were paid to the employee.
D71 K50 – cash was issued on account to the employee.
D20 K10 – materials released for production.
How to wire - three simple steps
Every day, many business transactions are carried out at the enterprise, and the corresponding ones are drawn up for each. Based on these documents, posting will already be made. In order to correctly account for transaction amounts, you need to be able to correctly prepare transactions.
For a novice accountant, preparing accounting entries often causes a lot of difficulties and is in vain. Making entries is quite simple; below we will learn how to do it correctly.
How to do the wiring correctly?
You need to follow three simple steps:
Let's look at these steps with an example.
Example of preparing accounting entries
So, some event occurred at the enterprise, for example, goods arrived from the buyer. How to make a posting?
We are analyzing the operation - the goods have arrived from the buyer, which means that there are more goods in the warehouses, and the organization began to have a debt to the supplier. Moreover, the amount of debt is equal to the cost of the goods delivered.
- Step 1— You need to select 2 accounts that are involved here:
— the goods are taken into account on the account. 41 "Products";
— all relationships with suppliers are conducted on the account. 60 “Settlements with suppliers.”
Thus, the transaction amount must be reflected in two accounts: 41 and 60. - Step 2— A product is an asset of an enterprise. The receipt of goods is an increase in the asset. On the active account. 41 increase in assets is reflected in debit.
Debt to the supplier is accounts payable (liability); the appearance of debt means an increase in liability. On the active-passive account 60, we will reflect the increase in liabilities on the loan. (We wrote in detail about assets and liabilities) - Step 3- We carry out the posting according to the double entry principle - we enter the amount in debit 41 and credit 60 - we get posting of the type D41 K60.
Now you know how to correctly prepare accounting entries. A little earlier, we got acquainted with accounts and learned to distinguish between assets and liabilities. All that remains is to deal with it, and we will move on.