Second, the debit and credit bookkeeping method (multiple)
The debit and credit bookkeeping method refers to the kind of “borrowing” and “loaning” as the accounting symbols. Double entry bookkeeping 。
The principle of accounting for the debit and credit bookkeeping method: there must be loans and borrowings must be equal.
The type of double-entry bookkeeping method: debit and credit bookkeeping method, increase and decrease bookkeeping method, and receipt and payment bookkeeping method.
(1) Account structure/accounting rules under the debit and credit bookkeeping method
Asset class, cost class, expense account: Borrowing, loan reduction.
Liabilities, all equity, income account: loan plus, borrowing and subtracting.
1. Structure of asset class and cost account
Bookkeeping rules: borrowing, deducting, and debits are debit.
Balance calculation formula: debit balance at the end of the debit = debit balance at the beginning of the period + the amount of the debit in the current period – the amount of the current period of the credit
2. Structure of liabilities and all equity accounts
Bookkeeping rules: loan plus, borrowing and subtracting, the balance is in the credit.
Balance calculation formula: credit ending balance = credit opening balance + credit current period amount – borrower current period
3. Profit and loss account (no balance at the end of the period)
(1) Income account
Bookkeeping rules: loan plus, borrowing, No balance at the end of the period.
(2) Expense account
Bookkeeping rules: borrowing, deducting, No balance at the end of the period.
(II) Account correspondence and accounting entries under the debit and credit bookkeeping method
1. Account correspondence: refers to the relationship between loan and loan formed by mutual accounts when using the debit and credit method to record each transaction or event.
2. Accounting entry: It is a record showing the loanable, loanable account and its amount for each economic business, referred to as the entry.
The entry constitutes three elements:
(1) The direction of loan should be borrowed;
(2) Accounting accounts corresponding to each other;
Classification of accounting entries:
Accounting entries are divided into simple accounting entries and compound accounting entries.
Simple accounting entry Refers to an accounting entry involving only one account debit and another account credit, ie Borrow a loan Accounting entry;
Compound accounting entry Refers to an accounting entry consisting of two or more (excluding two) corresponding accounts, ie One borrows more loans, one loan more borrows, more borrows more loans Accounting entries. (combined with economic business)
(3) Balance of trial calculation under the debit and credit bookkeeping method
1. Trial balance, which means Accounting rules for debit and credit with Continuity of assets and equity A method of checking whether records are correct by summarizing and comparing the balances and balances of all accounts.
(1) Trial balance method
Total account debit balance for all accounts in the current period = total credit amount of all accounts in the current period
The direct basis for the trial balance of the amount: the principle of accounting for the debit and credit bookkeeping method: there must be loans and borrowings must be equal.
(2) Balance trial balance method
Total debit balance at the beginning of all accounts = total opening balance of all accounts
Total debit balance at the end of all accounts = total credit balance at the end of all accounts
The direct basis of the balance trial balance method: assets = liabilities + owner’s equity
1. Trial calculation is unbalanced, indicating that there must be errors in accounting.
Trial balance, accounting is basically correct, does not indicate that the accounting must be correct
2. Errors that do not affect the balance between the borrower and the lender are usually:
(1) Re-record or miss the entire economic business when accounting
(2) The loan account should be correct, and the amount should be recorded at the same time or less.
(3), remember the wrong account, the loan is still balanced
(4), the direction of bookkeeping is reversed, and the loan is still balanced
(5), multi-record and less record, the loan is still balanced
To be continued……….