Corresponding Relationships and Recording Methods on Accounting Accounts

 Budget distribution account group

Including accounts used to reflect and provide information to check and monitor expense accounts whose occurrence period and effective period do not match in time, including :

Prepaid expenses are actual expenses that have been incurred but are related to

related to production and business activities of many accounting periods but not yet

take note

core

all of the production and business costs during the period are included

cost allocation

of subsequent accounting periods.

For example: Tools and equipment costs are allocated multiple times, store rent is paid in advance for many months.

Payable expenses are actual expenses that have not yet occurred but have been calculated in advance .

into production costs, business costs of this period for all parties

bear

cost , measure

Forming a source to offset actual costs of the following periods in order to avoid sudden changes in production and business costs in the periods .

For example : The cost of pre - paid leave of production workers , deductions

before major repairs to fixed assets .

The purpose of the accounts in this group is to allocate costs appropriately .

Keep a business record to make the cost of production and business more accurate .

- The structure of the Prepaid Expenses account is as follows :

stability between

Debit Prepaid Expenses Account Credit

Opening balance : Reflects the prepaid expenses currently available at the beginning of the period .

Number of births increased during the period : Reaction

reflect the costs incurred during the period

Amount of increase in expenses during the period : Reflects prepaid expenses allocated according to plan and production and business expenses .

business in the period

Ending balance : Prepaid expenses remaining at the end of the period

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- The structure of the Accounts Payable is as follows :

Accounts Payable Credit

Amount of incurred expenses during the period : Reflects the actual arising of payable expenses .

period cell

Opening balance : Reflects the remaining payable expenses at the beginning of the period.

Number of accrued expenses during the period : Reflects the pre-allocated (pre-deducted) payable expenses according to the plan and the cost

production and business costs during the period

Closing balance : Expenses payable

current period end

Medicine

The group includes the following accounts : Short - term Prepaid Expenses Account , Current Account

Long - term prepaid expenses …

Group of people with disabilities

Includes accounts for practice

match

cost of goods sold and the price of each item

similar

g need price . Uses of the drug account

This group helps accountants practice .

match

cost of living and the price of each relative item .

The structure of the family credit account is as follows :

No. Group of accounts receivable for households with

- Collection of production costs incurred during the period.

- Expense write-offs.

- Reflects the total cost of finished products

Debit Balance: Reflects production costs

unfinished

Medicine

This group includes the following accounts : Production and business cost accounts

unfinished, unfinished basic construction investment costs...

Revenue account group

These are accounts used to reflect revenue or income from activities: production and business activities, financial activities and other activities... The function of accounts in this group is to help businesses determine the revenue (income) realized during the period of activities.

The structure of the revenue (income) account group is as follows:

Revenue Account Group Yes

- Transfer of decrease in account balance

minus revenue (or income for the period)

- Carry forward net revenue (or

net income ) to the income statement

- Reflect sales revenue

goods (or income)

arising during the period.

̣ ) food

economy

Accounts in this group have no balance at the end of the period.

Medicine

This group includes both accounts : Sales Revenue Account and

Provide services, internal sales revenue accounts at the main office ...

Account group determines the result

department, Operating Revenue account

Including both the unit 's income statement and the determination of operating results .

unit of action . Uses of the drug account

This group helps businesses .

part

reflect all income and expenses for each business period and determine future results

hole

on production and business activities , can be checked

form

porch

income statement ,

profit plan:

The structure of this group of accounts is as follows :

No. Account Determination of Results Yes

- Reflects all actual costs incurred during the period by the business.

- Carry forward of activities

production and business

other

activities

- Reflects the total income of the business during the period .

- Carry forward of operating losses

production, business and activities

other

This account has no balance at the end of the period.

Medicine

This group includes : Business Results Determination Account

3.3. Corresponding relationships and recording methods on accounting accounts

3.3.1. Corresponding relationships

Economic transactions that arise affect at least two accounting entities. Therefore, when an economic transaction arises, a relationship will be formed between the entities.

accounting objects. To express the relationship between accounting objects, people use the concept of accounting correspondence relationship.

Accounting correspondence is a concept used to express the fluctuating relationship between specific accounting objects in each arising economic transaction.

For example : Mr. A decided to establish a business. On September 1, X, Mr. A invested 100,000,000 VND in cash in the business.

In this transaction, cash (assets) increases and equity (capital resources) increases by the same value of VND 100,000,000.

Due to the balance between assets and capital, any economic transaction that arises can belong to one of the following four types of corresponding relationships:

Case 1: Increase this asset - decrease another asset.

For example : Cash payment for raw materials to be imported into the warehouse worth: 10,000,000 VND. This transaction involves two accounting objects: the unit's cash (assets) decreases and the unit's raw materials (assets) increase by the same value of 10,000,000 VND.

This corresponding relationship shows the trend of the unit's assets changing from one asset to another. It only affects the assets that change the asset structure of the unit, while the total value of the unit's assets remains unchanged and is balanced with the total capital. This relationship only occurs within the accounting unit.

Case 2: Increase assets - Increase capital.

For example: Purchased raw materials and put them in stock but have not paid the seller 4,000,000 VND.

This transaction involves two accounting objects: payables to sellers (capital) increase and raw materials (assets) increase with the same value amount.

4,000,000 VND.

This reciprocal relationship changes the asset structure and capital structure of the unit; changes the scale of assets and capital of the unit (total asset value and total capital value both increase by 4,000,000 VND) but the balance between assets and capital is still guaranteed.

Case 3: Increase this source of capital - decrease another source of capital.

Example: Short-term bank loan to pay supplier debt of 25,000,000 VND.

This transaction involves two accounting objects: Short-term loans (capital) increase and payables to suppliers (capital) decrease with the same value: 25,000,000 VND.

This reciprocal relationship shows the trend of capital fluctuation, shifting from one capital source to another. It does not change the scale of capital sources or assets of the unit (total capital sources remain unchanged and are balanced with total assets), but it changes the capital structure of the unit.

Case 4: Decrease assets – Decrease capital.

Example: Pay short-term cash loan at fund 1,000,000 VND.

This transaction involves two accounting objects: cash (assets) decreases and short-term loans (capital) decrease with the same value of 1,000,000 VND.

This reciprocal relationship changes the asset structure and capital structure of the unit, and at the same time reduces the size of the unit's assets and capital (the total value of assets and total capital of the unit decrease by the same amount of 1,000,000 VND).

Through the above examples, we see that: Economic transactions arising related to fluctuations in the internal assets or internal capital of the unit must be inversely related and do not change the scale of assets or capital of the unit (ie only change in terms of composition). Economic transactions arising related to fluctuations in both assets and capital must be inversely related and the result either increases or decreases the scale of assets and capital of the unit (change in terms of quantity). At the same time, it still ensures the balance between assets and capital.

3.3.2 . Method of recording in accounting accounts

To analyze the fluctuations in assets , capital sources and the entire production and business process of a unit and accounting accounts , there are two recording methods : single entry method on accounting accounts and double entry method on accounting accounts .

3.3.2.1. Single recording method

Recording on the accounting account is a separate and separate method .

lawyer

The movements of each item are divided into separate accounts.

My life is born of heat

economic disaster caused

Example: Business

lease out a tangible fixed asset of Company A

original price 100,000,000 VND

Karma

The accountant shall record the following entry on the Credit side : “Leased fixed assets”

"External" reflects the increase in external fixed assets during the period. Debit account "External leased fixed assets " 100,000,000

When business

When paying for leased fixed assets to Company A , the accountant records the invoice .

Credit the account "fixed assets leased abroad " to reflect the original cost of fixed assets leased abroad .

Credit account "fixed assets leased abroad " 100,000,000

Applying the method of recording orders on accounts has the advantage of being simple to implement.

easy to do . However, the disadvantage of the single recording method is that it only reflects the check and

monitor individual movements, read

set up

relative self

specific accounting . Note

The invoice on the accounting account cannot be shown .

objective relationship between the parties

similar

accounting when having business

economic growth , so the cause of change is not clear

the dynamics of accounting objects .

Scope of application: Write the order

porch

in all cases

after:

- Record the business part

derivative economic activities and off - balance sheet accounts . derivative economic activities and detailed accounts .

The detailed account entry is just a data entry .

specific data

recorded in account

Summary (Level I Account).

3.3.2.2 . Recording method

In the process of production and business activities in all industrial units

different economic events. Each business

economic development is always a part of life

cradle

specific economic content and related to at least two related accounting objects. Each

one

relative

g accountant will have a

open accounting account , record and share

Therefore , to analyze the objective and subjective relationships between accounting objects when

career

economic development of each industry

economic affairs need to be

Enter at least 2 documents

accounting, in other words, it is double entry in accounting accounts.

Recording on accounting accounts is a method of business management .

economic affairs

arise in at least 2 related accounting accounts in accordance with the economic content of

career

objective and subjective relationships between objects

accounting

To record , accountants must proceed with accounting entries .

Accounting entries are the determination of debit and credit accounts to

reflect economic transactions arising according to the correct relationship between accounting objects .

g plan

Accounting period is carried out in 2 steps :

Step 1: Analyze the situation

business

relative economic

g accounting

The influence thereby determines the accounting account to be used.

Step 2 : Determine the level of impact of economic transactions on the

relative

accounting and the general structure of the accounting account to determine the assets

Debit and Credit accounts.

Example 1: Withdraw bank deposit to cash fund 70,000,000 VND

Karma

economic activities related to two objects

accounting is cash in hand

funds and bank deposits. Both of these are assets so the account that reflects them will be an asset account.

When you withdraw money from the bank and deposit it into your account, the cash in your account increases.

According to the structure of the Assets account , the increase in assets will be recorded on the Debit side. At the same time , it will cause the bank deposit to decrease , according to the structure of the Assets account .

The decrease will be reflected on the Credit side .

According to the above analysis , example 1 is

take note:

Account balance "Cash": 70,000,000

Credit account " Bank deposit " : 70,000,000

Example 2: Short-term loan

to enter

cash

300,000,000 VND and transfer to account

Company bank deposit 500,000,000 VND.

Karma

The case involves three objects.

accounting is short term loan

, cash , money

Cash and bank deposits are assets of the company .

Reflected as Assets . Short term loans capital sources.

is the source of capital so the account is partly owned by the account

When borrowing short term

is to increase the loan amount, according to the structure of the source account

capital generated increased

Recorded on the Credit side . Loan amount entered

cash and transfer

Bank deposit accounts make cash in the fund and bank deposits increase, according to the structure of assets , the increase in the number of arising liabilities is recorded on the Credit side .

According to the above analysis , the accountant records:

Account “Cash”:

300,000,000
Account " Bank deposits " :	500,000,000
Have account "Short term loan":	800,000,000

The account in example 1 is

call

is a simple accounting term . Debt term

example 2

call

is a complex accounting term .

A simple accounting entry is an accounting entry that involves only two accounts .

summary

for a career

economic affairs

Accounting period for accumulated losses

is an accounting entry related to at least 3 accounts

summary

for one

career

economic affairs

Complex accounting entries can take the following forms :

- Karma

economic activities arising from the credit

Accounts with multiple Credits

other account

- Karma

economic activities arising from the production of goods

Accounts Relating to Debit for Multiple

other account

- Other business.

The economic sector generates multiple debits and multiple credits .

The essence of complex accounting entries is that many accounting entries are simple.

simplified . Or in other words , a simple accounting term .

complex accounting

can be separated into many parts

Through the above examples , we can draw the following recording principles for accounts :

Each career

economic development

Record at least 20 related accounting accounts .

Each career

Economic transactions always involve at least two accounting entities . Each

relative

Accounting with separate economic content always has a

open accounting account

track , record and share . So at least 2 accounting accounts.

one

career

economic development will be

note

- Karma

economic growth is always possible

g hi No ̣ 1

corresponding account

with the credit of one

or more accounts or

reverse

again write Co ́ one

relative account

corresponding to a Debit of one or more other related accounts; or

Multiple Accounts

Counterpart to the record of Multiple accounts in the same period

During the business operation process

, economic transactions arise very

diverse and covers many economic contents . But considering the influence of the main

Assets and capital of all units are not excluded from 4 cases

after:

Karma

economic activities that affect the assets of one or more

Some assets

increase and 1 or more assets decrease accordingly .

Karma

economic events that affect the capital resources of one or more

1 number

capital increase or

1 or

Some capital sources decrease accordingly .

Karma

Economic development affects both assets and capital sources .

Assets increase and capital increases accordingly.

Economic transactions affect both assets and capital, making assets

assets decrease and capital decreases accordingly.

When karma

economic development affects the relative

accounting is an asset , according to

Asset structure , the increase in assets will be recorded as a debit , for assets

The decrease in the number of transactions will be recorded on the credit side; like this

career

The economic transaction will debit an account.

An asset account corresponds to a credit to one or more other asset accounts and vice versa.

When karma

economic activities that affect the accounting object are capital sources ,

According to the structure of the capital account , the increase in capital will be recorded on the Credit side .

with the source of capital reduction, the arising amount will be recorded on the Debit side;

like that

career

economic development

Note one

Asset account corresponding to credit account

or more funding accounts

other or vice versa.

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