What does it mean by kt account. What is credit turnover? Debit and credit turnovers on the account. What is double entry

Account 70 of accounting is a passive account "Payments with personnel for wages", intended for accounting of payments with employees for wages. The account is balance sheet, synthetic, passive. Let's consider examples of transactions and typical postings for account 70.

The credit of the account reflects the calculation of salaries for all categories of workers. The debit of the account reflects the deductions from the salary and its payment. The credit balance shows the balance of the company's wage arrears to employees.

The account scheme 70 is shown below in the figure:

There are times when an employee's salary is paid for a full month, but accrued according to a report card for an incomplete month. For example, at the end of the month, an employee took sick leave. In such cases, it is not the enterprise, but the employee who is the debtor. The balance in such cases remains credit with a minus sign.

Payroll account 70 transactions

Distinguish between basic and additional wages. Accounting entries are generated depending on the type of remuneration.

Calculation of wages to employees and attribution to production costs: time wages and piecework wages, etc.

Dt 20; 25; 26; 44 CT 70

Suppose the salary is accrued to the employees of the main production of the bakery in the amount of 800,000 rubles, storekeepers in the amount of 30,000 rubles, salesmen in the shop during production in the amount of 40,000 rubles, and administrative and management personnel in the amount of 200,000 rubles.

The bakery accountant in the accounting will make the following entries for account 70:

Get 267 1C video tutorials for free:

Accrual of vacation pay at the expense of a previously created reserve: Dt 96 Kt 70 - the amount of vacation pay.

Calculation of temporary disability benefits at the expense of the social insurance fund: Dt 69.1 Cr 70.

Financial assistance was accrued at the expense of net (retained) profit: Dt 84 Kt 70.

Accrued salary to employees for the construction of a fixed asset and attributed to the cost of implementing capital. investments: Dt 08 Kt 70.

Accrued salary to employees for dismantling fixed assets and attributed to other expenses: Dt 91 Kt 70.

Payroll deduction account 70 transactions

The accounting department of the enterprise not only conducts payroll calculations, but also deductions and deductions from it. Let's consider the main types of deductions.

Personal income tax - personal income tax

The object of taxation is the income received by the taxpayer. When determining the tax base, all income of the taxpayer, received both in cash and in kind, as well as income in the form of mat, are taken into account. benefits. Posting Dt70 Kt 68 - withheld from personal income tax salary for payment to the budget.

Let's say the salary is accrued in the amount of 30,000 rubles. The employee has two minor children.

This means that according to the current legislation, the employee is entitled to standard tax deductions in the amount of 1,400 rubles. for 1 child. Let's calculate: (30,000 - (1400 * 2)) * 13% = 3,536 rubles.

The posting will take the following form: Dt 70 Kt 68 amount 3,536 rubles.

Withholding of alimony under writ of execution

The grounds for withholding alimony are writ of execution, as well as a written statement of the employee about the voluntary payment of alimony. The amount of alimony depends on the number of minor children: for one child - 25%, for two children - 33%, for three or more - 50%

The collection of alimony is made from all types of income and remuneration, both for the main and for combined work, as well as from dividends.

The posting is formed: Dt 70 Kt 76 - withheld from salary according to the writ of execution in favor of the claimant.

Compensation for material damage

The basis is the acts and decisions of the judicial authorities. For example, if an employee is found guilty of an accident and, by a court decision, is obliged to pay the victim a certain amount of damage, then the following posting is formed: Dt 70 Kt 73.2 - withheld from salary in compensation mat. damage.

Repayment of debts on accountable amounts

The basis is advance reports and data of w / o No. 7. If the employee did not report for the amount previously given to him on account of the amount, then the accountant has the right to withhold it from the salary by posting Dt 70 Kt 71 - the balance of the accountable amount was withheld from the salary.

Prepaid expense

At some enterprises in the middle of the current month, an advance payment is made to employees. The amount of the advance payment should not exceed 50% of the salary minus personal income tax. The advance payment is made from the cash desk according to the payroll, on the basis of which an expense cash order is drawn up. Reflected by wiring Dt 70 Kt 50 - issued by salary from the cash desk to employees. When paying monthly salaries, accounting entries are repeated, only the amount changes.

Payment of wages in kind

In this case, the following transactions are generated:

Dt 70 Kt 90 (91) - paid salary for the amount of products, goods, materials in kind at selling prices, including VAT;
Dt 90 (91) Kt 43 (41, 40) - the sale of goods, products, etc. is reflected. employees against wages.

If it is impossible to pay wages on time

If it is impossible to pay wages on time, it must be attributed to the depositor, that is, deposited by posting Dt 70 Kt 76.4 - salary deposited.

In the payroll, opposite the full name of those who did not receive wages, it is stamped or "deposited" by hand. The cashier closes the payroll in two amounts: rubles paid and rubles deposited. This record is certified by the signature of the cashier, after the payroll is transferred to the accounting department.

The accountant, having checked it for the amount of the issued salary, writes out an expense cash order, its number is recorded in the payroll. And for the amount of the deposited salary, he writes out a register of unreported salaries. Then the data is transferred from the register to the ledger of the deposited amounts.

The company must transfer the deposited salary to the current account with an indication of the purpose of the "Deposited salary" contribution.

Externally, the account has the form of a two-sided table. One side (left) is called "Debit" (abbreviated Dt), the other (right) - "Credit" (abbreviated CT).

Open an account – this means giving a name to the account and writing the initial balance.

The account, first of all, reflects the initial state of funds and sources of their formation, which is called the initial balance or opening balance .

Turnover by Dt - this is the sum of all transactions on the account Dt.

Turnover by CT - this is the sum of all transactions on the CT account.

The closing balance is calculated based on the opening balance and the turnover.

Ending debit balance is determined as follows: Opening balance by Dt + Turnover by Dt - Turnover by CT.

Ending credit balance: Initial CT + Turnover by CT - Turnover by Dt

Usually the closing balance is determined monthly on the first day of the next month. It will simultaneously be the opening balance for the next month.

Accounts designated to reflect availability and movement household funds are called active (A). The balances in active accounts are recorded as the debit of the account. Active accounts have only a debit balance, since you cannot spend more than you have available (01, 04, 10, 50, etc.).

Accounts that take into account the sources of formation of economic assets are called passive (P) . Balances in passive accounts are credited to the account. Passive accounts have only a credit balance (80, 82, 83, 02, etc.).

Accounts that take into account settlements with buyers, employees on wages, etc. may have a balance of both debit and credit. Such accounts are called actively- passive (70, 76, 99).

The balance of both Dt and Km accounts called deployed.

Only debit or only credit balance is called collapsed.

Dynamics of movement of assets and sources their formation in accounting is modeled in two ways:

1) discrete - in the form of periodically compiled balances;

2) continuous - by reflecting the consequences of each business transaction on the accounts.

There is a close informational relationship between these methods: the registration of economic accounting events is the main compilation of balance sheets.

13. Double entry as an element of the accounting method.

Double entry Is a way of reflecting business transactions on the accounts. Any business transaction affects two or more objects of the subject of accounting.

For example, funds were issued from the cash desk for a report:

1) settlements with accountable persons (+);

2) checkout (-).

Business transactions are, by their economic nature, dual. The double entry method results in different account relationships.

The relationship between the accounting accounts that reflect the business transaction is called correspondence of accounts Accounts are called correspondent.

Correspondence of accounts is expressed in the form of a counting formula. what is called an accounting entry.

Accounting entry - this is a reflection of a business transaction on Dt one and on Km another account for the same amount.

To draw up an accounting entry means to indicate on the document which account should be debited, which account should be credited and and by what amount.

Kinds accounting postings :

1) Depending on the complexity of the offsetting accounts, postings are:

a) simple

Simple wiring is recorded on two accounts: On the Dt of one account and on the CT of the other. For example: Issued from the cash desk wages to employees of the enterprise - 50,000 rubles.

Dt 70 Kt 50 - 50,000 rubles

b) complex

The wiring is difficult , when compiling one account is debited and several are credited and vice versa. For example: Received equipment and materials from suppliers in the amount of 40,000 rubles.

Dt 07, 10 Kt 60 - 40,000 rubles.

2) By the nature of the reflected data, the leashes are:

a) real;

b) conditional;

c) clarifying.

Real postings are used to reflect business transactions, facts, phenomena that have actually taken place (for example, obtaining a loan, calculating and issuing wages, etc.).

Conditional transactions arise as a result of accounting methodology, although in reality the transaction is not

was made, but the accounting entry is drawn up.They apply in two cases:

- for the transfer of indicators;

- to clarify the indicators.

For example: The sales account is closed and the financial result is determined.

To clarifying postings includes correction postings, as well as postings to write off the costing difference on the accounts of the production process.

Clarifying postings are:

a) additional - are drawn up with ordinary ink, their amount increases the turnover of the accounts;

b) reversal - are drawn up in red ink and when calculating the totals, the red amount is deducted.

In accounting, along with double entry, there are also single entries. If the need for double entry arises from the dual grouping of economic assets presented in the balance sheet, then single entry applies to their availability presented over the balance sheet. A single entry is used for off-balance sheet accounts.

For example: Due to violations of the terms of the contract, the buyer refused to pay an invoice in the amount of 5,000 rubles. In this case, he must accept the goods and materials received from the supplier for safekeeping. In the account of the buyer, an entry will be made: Дт 002 "Inventories accepted for safekeeping" - 5000 rubles.

When these values are returned to the supplier, this operation will be recorded in the accounting records: Кт 002 "Inventories accepted for safekeeping" - 5000 rubles. Such a record is also called uniguafic .

Double entry value :

1) Double entry reflects changes in economic assets, the sources of their formed processes;

2) It shows where the funds came from and how they were used;

3) With the help of double entry, control over the safety and appropriate use of funds is carried out;

4) Double entry makes it possible to detect errors in accounting.

14. Accounts for analytical and synthetic accounting

Modern means of registration and processing of accounting information make it possible to obtain indicators with any degree of detail and generalization. The user of accounting information must have the necessary data on various types of property, the sources of its formation, as well as individual economic processes. Depending on the purpose of using this information, it is prepared in a generalized or detailed form in the appropriate units of measurement. The management of the enterprise needs to know the specific composition of funds, sources and processes. To do this, additional accounts are entered to the G / L accounts for each type of funds, sources and processes. Therefore, the accounts for the volume of content are divided into synthetic and analytical. According to these two types of accounts, synthetic and analytical accounting is kept. The definition of these types of accounting is enshrined in Art. 2 of the Law of the Russian Federation "On Accounting".

Synthetic accounting according to the legislation, it is considered as the accounting of generalized data disclosing their types of property, liabilities and business transactions according to strictly established economic indicators, which is maintained on synthetic accounting accounts.

Analytical accounting - accounting, the information of which is accumulated in personal, material and other analytical accounts, grouping detailed information about property, liabilities and business transactions within each synthetic account.

Synthetic accounts (Greek - based on synthesis, free, generalized, combined) contains information about economic instruments and operations indicators using a monetary meter. (Nr, 01, 04, 10, 50, 70, etc.).

Analytical accounts (Greek - decomposition, parsing) are used for the purpose of a detailed description of the considered objects. These accounts are kept in physical, labor and monetary terms.

Homogeneous analytical accounts are grouped into subaccounts . They are not opened for all accounts, but only for those that are represented by a significant nomenclature of accounted objects.

In practice, synthetic accounts are called main, analytical - auxiliary.

There is a close relationship between synthetic and analytical accounts:

1) Active analytical accounts are opened for an active synthetic account;

2) The sum of the opening balances of all analytical accounts
equal to the opening balance of the synthetic account;

3) All business transactions are simultaneously reflected in synthetic and analytical accounts;

4) The sum of the debit turnover of analytical accounts is equal to the debit turnover of the synthetic account;

5) The sum of the credit turnover of analytical accounts is equal to the credit turnover of the synthetic account;

6) The sum of the final balance of analytical accounts is
the final balance of the synthetic account.

Based on the above, the accounting system can be represented by three levels of generalization and detail:

- the first level - synthetic accounts (first-order accounts);

- the second level - sub-accounts (second-order accounts);

- the third level - analytical accounts (accounts of the third, fourth, etc. orders).

15. Turnover sheet for analytical and synthetic accounts.

To control the correctness of accounting records and to summarize accounting data, turnover sheets are drawn up. They are compiled separately for synthetic and analytical accounts.

Turnover sheet for synthetic accounts – it a way to summarize synthetic accounting data, a way to check the correctness of accounting data records. It is a set of opening and closing balances, debit and credit turnovers.

Everyone is familiar with the expression "balance debit with credit". But for many it remains a mystery what these concepts mean. Therefore, in this article, we will consider what debit and credit are, as well as credit and debit turnovers.

Accounting functions

With the help of accounting, an analysis of the activities of an enterprise is carried out, its property, capital, and liabilities are taken into account. It is easy to see if a business is profitable or unprofitable. Therefore, when money is received, material assets are written off or there is a settlement with suppliers, this is recorded in accounting in monetary terms.

The main rule of accounting is the following - how much has come, the same amount must go. It is also called the principle of conservation of value.

What are debit and credit?

Debit and credit are concepts used in accounting to analyze all the processes of an enterprise. There are many accounts, and all of them have been created to reflect business transactions. Each of the accounts has its own name and number.

So let's make a comparison between debit and credit turnovers.

Debit represents all available assets that are owned by the organization. That is, this is the property that the company has at the moment. Property can be understood as:

Funds in the bank account.
Cash at the cash desk of the company.
The total amount of the value of goods in warehouses.
The total value of all fixed assets owned by the firm.
Current debts of counterparties.

Accordingly, the more assets the company has, the more successful it is considered. The source of assets formation can be the authorized capital.

Debit turnover is the total amount of all credit transactions reflected in debit. Credit turnover is the sum of all expense transactions reflected in the credit. At the same time, you need to understand that we are talking about an active account. If the account is passive, then the situation is reversed. Receipt transactions are displayed by credit, expense transactions, respectively, by debit.

Liabilities are all the debts of the organization. These include:

Possible debt, which was formed by non-payment of salaries to employees.
Debt of the enterprise to its counterparties.
Depreciation charges.
Debts of an enterprise to its founders or subsidiaries.

Where are debit and credit turnovers applied?

Accounting is carried out for each account separately. Debit is shown on the left and credit is shown in the column on the right. Each operation must be necessarily reflected. Some accounts are used quite often throughout the reporting period. The debit columns should reflect the amounts that characterize each transaction separately. Accounts are conventionally divided depending on the balance: they can be active (account 51 "Settlement account"), passive (account 86 "Reserve capital"), as well as active-passive (account 76 "Settlements with debtors and creditors").

If the property of the enterprise increases or rights of claim arise, then the debit turnover increases on active and active-passive accounts. Conversely, if the property decreases, then there is an increase in credit turnover.

Business transactions on passive accounts are displayed inversely. Basically, these accounts are used to see where the funds came from for the company.

Ending balance

At the end of each reporting period, all debit and credit turnovers must be summed up separately. As a result, the final balance is formed. In the event that there is a complete coincidence in the amounts in the debit and credit turnovers on the account, then you can close the account. There are some accounts that automatically have a zero balance at the end of the period. As a rule, these are accounts to which expenses are written off.

In order to calculate the balance of funds on the current account, the volume of credit turnover (this is the amount of funds spent) is subtracted from the volume of debit turnover (the amount of funds received). The incoming balance must be added. It is on active accounts.

If the account is passive, then to determine the final balance, add the credit turnover (this is the amount of funds received) and subtract the debit one (this is the amount of funds spent). In active-passive accounts, the debit and credit balance is determined according to analytical accounting data.

What is double entry?

The concepts of credit and debit are reflected in the so-called double entry. That is, it is assumed that each business transaction must be recorded using two accounts. It turns out that on one account the cost of the operation goes into debit, and on the second - on credit. As a result, balance should be formed. That is, the balance must come together every time. In the event that a situation arises in which the total debit turnover does not overlap the total credit turnover, then it can be concluded that an accounting error was made in the accounting of transactions.

The concept of turnover on the current account of the enterprise

One of the most important indicators of the organization's activity is the credit turnover on the current account. This term is equally often used not only by accountants, but also by bankers and auditors. Unfortunately, private entrepreneurs and business start-ups do not fully understand the essence of its content.

Depending on the purpose for which the accounts are used, they are divided into the following types:

Deposit, which is usually used in order to save or accumulate money.
Credit, which are opened in order to service loans.
Settlement, accounts that are necessary for conducting business.
Card, access to them is provided using cards that are issued to customers.

Actually, regardless of the type of account, they all display only two types of operations:

Crediting of funds - receipts from counterparties for services sold or goods, work performed.
Expense of funds - withdrawal or transfer of funds in the course of business. These can be payments to suppliers, transfers of salaries to employees, taxes and deductions.

Current account turnover

The entire set of transactions made on the account for a specific time period (day, month, year), as well as reflected in the bank statement, represents the general concept of turnover on the current account. Such an account can be conditionally divided into two parts:

Debit turnover. It is a set of cash flow transactions.
Bank credit turnover. It reflects the totality of cash flow transactions.

At first glance, everything is obvious. However, everything is so simple only until the moment when the owner of the bank account receives the bank statement for the first time. It shows that the tax payment operation is displayed on a debit, the receipt of funds as material assistance from the founder is displayed on a loan. Among other things, the bank statement displays a negative account balance at the end of the banking day.

It is important to remember that a bank statement is essentially an accounting document of the bank, and not of the owner of the current account. It turns out that since the bank takes third-party funds into temporary possession, then, formally, it is the debtor of its client. And the receipts of funds to the current account, respectively, increase the amount of his debt. But the deduction of funds from the bank account just reduces the bank's debt to its client.

The nature of credit turnover

What can be the transactions on the current account?

Receipt of funds from the current account to the cash desk of the enterprise.
Payments made to suppliers for purchased products, or to contractors for work performed.
Tax deductions for the benefit of the state budget.
Transfers for the repayment of loans and credits.
Transfers of funds to the social security authorities or to the insurance funds.
Transfer of funds representing the accrued interest for the use of loans provided.
Financial investments.

The concept of net indicators

The cleared turnovers of the current account are:

An indicator of the effectiveness of the organization, as well as an index of financial well-being.

A concept used in accounting slang. That is, it is not used in legislation, does not appear in contracts.

If you do not go deep into financial and accounting terminology, then you can take it as a rule that the turnover on the current account is the activity index, and the net turnover is the index of the organization's success. That is why the second category is often used:

auditors when analyzing the activities of the organization;
tax authorities in order to exercise control over the timely payment of taxes;
representatives of banks in order to establish the solvency of the potential recipient of the loan.

Banking operations not subject to accounting

Actually, the turnover on the current account can be defined as the discrepancy between the debit and credit turnover of funds and their actual expenditure for a certain period. However, it is worth noting that when calculating the cleared turnovers on the account, not all receipt transactions can be taken into account, but only those that are directly related to the implementation of the enterprise's activities.
Transactions that are not subject to accounting include:

Any receipts to the current account of funds that are borrowed, that is, receipts of credit funds, any assistance of a financial nature, regardless of whether it is refundable or not.
Income from the sale of securities. These can be promissory notes or shares.
Refunds to the owner of funds that were transferred in error.
Receipts that have occurred from other own accounts of the company, opened in other financial institutions.

Thus, from this article we learned what debit and credit are, how transactions are recorded. We also considered the concepts of debit and credit turnover for the reporting period.

Debit (Dt) Account (account name) Credit (CT)

- operational-result (matching) accounts, designed to compare the value of the same object in different estimates and to identify the result for individual business processes. Operational-resultant accounts are bald-free. An example are accounts: "Sales", "Other income and expenses".

Contracted accounts reflect the movement of amounts governing the valuation of property and liabilities. They can be both active and passive. An example of passive accounts are: "Depreciation of fixed assets", "Depreciation of intangible assets", "Provisions for depreciation of tangible assets", etc. These accounts have a credit balance.

How to work with account 20 of the chart of accounts

This is an active account, which is used for synthetic and analytical accounting. Subaccounts are opened depending on the specifics of the activity and the branch of the organization. Analytical accounting is carried out by types of costs of manufactured products or by structural divisions of the enterprise.

material, which are aimed at the purchase of materials, raw materials, supplies, equipment, etc., necessary in the production process;
wages and social needs - the costs that go to wages and the calculation of insurance premiums for workers and other persons involved in production;
depreciation - deductions for the depreciation of fixed assets that are directly involved in the process of manufacturing products;
other costs, which include travel expenses, shortages identified within the natural loss, deferred costs, etc.

How special accounts are kept

Target financing is fixed on account 55. Separate sub-accounts are opened for it. A separate subaccount is also needed to record the movement of funds of branches and structural divisions. It is also required to reflect the funds transferred from the account for the purchase of bank cards. The purchase of the card is recorded using this entry: DT55 (subaccount "Card account") KT51.

DT55 / 1 KT51, 52. Transfer of funds from bank account to letter of credit.
DT60, 76 KT55 / 1. Transfer of money to the supplier's account.
DT51, 52 KT55 / 1. Refunds from a letter of credit that has not been used.
DT55 / 2 KT51. Keeping money for settlements by checks.
DT60, 71, 76 KT55 / 2. Writing off money by checks.
DT55 / 3 KT51, 52. Transfer of funds to a deposit account.
DT51, 52 KT55 / 3. Crediting money from the deposit to the bank account.
DT76 KT91 / 1. Accrual of interest on the deposit.

Accounting for beginners, how to reduce debit with credit in a small business a list of documents that will be needed for accounting immediately after registering a company

The most common registers for full accounting are ledgers, as well as various types of index cards. For recording, you can use the linear-positional method or chess. In order to avoid errors in accounting, it is better to use the simplest registers. They need to be developed on the basis of No. 402-FZ “On accounting: registers. ".

Financial Lawyer's Advice! Above is a limited list of the chart of accounts, which will be significantly expanded for a real enterprise. For example, if the company has employees and they are paid wages, you need to include account 70 "Payments with staff on remuneration", or in the case of authorized capital, you need to use account 80 "Share capital".

Posting Dt 09 and Kt 09 (nuances)

Miralux LLC at the beginning of 2015 purchased office equipment for 120,000 rubles. In the accounting policy of the enterprise, it is noted that in accounting, depreciation of fixed assets is written off using a diminishing balance, and in tax - on a linear basis. When calculating income tax (NNP), the company uses PBU 18/02.

Account 09 reflects information on deferred tax assets (SHA) generated when deductible temporary differences (VVR) arise. VVR appear when the amount of profit is reflected in accounting in a smaller amount than in the tax one. In particular, this situation arises when expenses are accepted in accounting earlier and income is reflected later than in the tax one.

Priority of Dt and Kt in accounting

But because of this nuance, we do not need to change the data calculation algorithm. For account 60, the receipt report for 60.2 must be issued as the difference in turnover for Dt 60 of the account minus the debit abbreviation (these are the amounts that immediately went to reduce 60.1 with Dt turnover and did not go through 60.2). And the growth of account 60.1 (for CT - it is passive) - there will be the entire turnover for CT of account 60.

But if the shortener was not complete on the disassembled turnover and the outgoing balance will become when taking into account the change in Dm or Kt, but less than the disassembled turnover Km, then the shortener must be increased - after all, after the change, more Dm turns must be closed. Therefore, if the outgoing balance is Dt, then we make Kt a shortener the size of the entire disassembled turnover Kt, and if the outgoing balance is Kt, then the size of the shortener will become equal to the disassembled turnover Km minus the new outgoing CT balance.

Basics of accounting - a short course Accounting for settlements with debtors and creditors Mobile in mobile Mobilis in mobile Mobilis in mobile

3. Accounting for settlements with personnel on wages is carried out on the basis of monthly payroll made monthly by the accounting department on the basis of the staffing table (with a time-based wage system) and timesheets. With a piece-rate system of labor, accrual is made depending on the performance of the employee on the basis of an order - orders, acts of work performed, etc., as well as on the basis of timesheets. In this case, payroll is drawn up by settlement or payroll. in this case, a credit balance is formed on account 70. Based on the data of cash documents on the issuance of wages, respectively, this accounts payable decreases and arises again at the next payroll.

Account 60 "Settlements with suppliers and contractors" reflects on the loan the receipt of inventories (goods and materials) and services from suppliers, that is, constantly in the course of the enterprise's work, postings are made for such transactions on account 60 with the attribution of the received goods and services and services to the debit of the corresponding accounts, namely: Dt 10.20 and 26. If payment is made for the supplied goods and materials and services to suppliers, then the posting is made Dt 60 and Kt 51 (Current account by bank transfer) or from the credit of accounts 71 and 50 (by cash). Thus, if in the context of a specific supplier we have a credit balance, this indicates that our enterprise owes this supplier for the supplied goods and materials, services or energy resources (for electricity, water, etc.) a debit balance, this indicates that we overpaid for the supplied goods and materials or services, or with planned payments, this indicates that the goods and materials were not delivered on time, or the delivery date did not come, and we made the payment.

Incoming VAT account

This account is intended to reflect, for accounting purposes, information on the amounts of value added tax issued by suppliers / reflected in the settlement documents. This amount is payable by the buyer together with the value of the goods supplied to him, the accepted works and services. At the same time, at the end of each tax period, this value can serve to reduce the total amount of VAT intended for transfer to the budget.

One of the most important both for an accountant and for the entire organization are the accounting accounts associated with VAT calculations. The final amount of tax to be paid, which is determined when filling out a tax declaration based on the results of work in each quarter, depends on the correctness of attributing its individual amounts to accrual and write-off.

The expression “reduce debit to credit” is probably familiar to everyone. At the same time, many do not even roughly understand what this means. Therefore, below we will try to explain as simply as possible what debit and credit are.

What is accounting for?

Why did you come up with accounting? In order to take into account the property of the enterprise, its liabilities, capital and in general all of its activities.

Imagine if we counted goods in pieces, gasoline in liters, and money in rubles, it’s not clear how to put it all together? How to understand whether the company makes a profit or loss, how much goods are left in the warehouse and how much money is in the current account?

Therefore, all transactions, whether it is the receipt of amounts to the company's accounts, the write-off of material assets or settlements with suppliers, are recorded in accounting in monetary terms.

The main rule of accounting is the principle of preservation of value. Its essence is that if some property “came”, then the same amount should “leave”. Or vice versa - when writing off a certain amount, you must definitely receive something in return and write it down in the parish.

Debit and credit

What we talked about above is called the double entry principle. That is, any action in the organization should have 2 operations - incoming and outgoing.

To make it easier to keep such records, the concepts of "debit" and "credit" were introduced. Thus, each account is divided into two halves: debit is the receipt, and the expense is credit, the left and right columns of the account, respectively.

To make it clearer, imagine that you go to a store, take out of your wallet (let's call it Cashier) 2,000 rubles and buy a dress. In this case, the amount is withdrawn from the credit of the Cashier account and goes to the debit of the Shop account. To reflect this in accounting, you need to take both of these accounts and write down 2,000 rubles 2 times:

Please note that the value always goes from the credit of the account, but goes to the debit. This transfer of value is called double posting.

What is debit and credit balance

To understand what a balance is, let's look again at a simple example.

So, you have decided to open a retail outlet for the sale of greenhouses. It was in the fall. At the same time, to make it easier for us, your organization has neither money, nor debts, nor even the greenhouses themselves. But then there is already a buyer who wants to buy three greenhouses from you for a total of 100,000 rubles and leave them (greenhouses) with you for storage until spring.

Step 1. The buyer pays you 100,000 rubles and is calmly waiting for spring, that is, you have not shipped the greenhouses to him yet. Let's draw up an accounting entry: since the money has gone from the buyer's wallet to your cash register, we get the following double entry (we have conditional account names, of course):

Step 2. You decide to transfer almost the entire amount received from the buyer (namely, 90,000 rubles) to your account in the bank. That is, this money went from your cash desk (we write it down on credit), but it came to the current account (we write it down). This is how this operation looks like in double notation:

Step 3. You find a manufacturer who will supply you with greenhouses and conclude a contract for 160,000 rubles. At the same time, agree that this month transfer only half of the amount (that is, 80,000 rubles), and pay the rest later. You transfer 80,000 rubles to the supplier from your current account. This will be reflected in the accounting as follows:
Step 4. You have received greenhouses from a supplier in the amount of 160,000 rubles. This means that in the credit of the Supplier account we write 160,000, in the debit of the Warehouse account the amount will be the same:

On this, the first month of your work is over and it's time to take stock.

Credit and debit turnover

For the "Buyer's wallet" account, the credit turnover was 100,000 rubles, and the debit turnover was 0.

Cashier: debit turnover - 100,000 rubles, credit - 90,000 rubles.

"P / c in the bank": debit turnover - 90,000 rubles, credit - 80,000 rubles.

"Supplier": debit turnover - 80,000 rubles, credit - 160,000 rubles.

"Warehouse": debit turnover - 160,000 rubles, credit - 0.

What is Debit Balance

Now it remains to withdraw the balance, which turned out to be for all accounts. This value will be referred to as the "Final Balance". To calculate the balance, you need to minus the smaller one from the larger turnover.

Consider, for example, "P / s in the bank". The turnover on a debit is 90,000 rubles, and on a loan - 80,000. The first amount is greater, which means that the balance is in debit: 90,000-80,000 = 10,000 rubles. Let's write it down in the debit part of the account and enclose it in a red rectangle.

Now pay attention to the Supplier account: here the debit balance is 80,000 rubles, and the credit balance is 160,000. In this case, the balance turned out to be credit: 80,000 - 160,000 = 80,000 rubles (also in the red rectangle).

We do the same with the rest of the accounts. As a result, we get the following result:

Let's look at what the balance means for each of these five accounts.

There is a credit balance on the account "Buyer's wallet" and it reminds you that in the spring you have to give the buyer of the greenhouse in the amount of 100,000 rubles.

The balance on the Cashier account is in debit. It means that there are 10,000 rubles in the cash desk of your organization.

The debit balance on the third account shows that you have another 10,000 rubles in your bank account.

The fourth account has a credit balance that will not let you forget that you owe the manufacturer 80,000 rubles.

Well, the last invoice with a debit balance says that there are greenhouses in your warehouse in the amount of 160,000 rubles.

What's next?

You continue to work, and the balance sheet should reflect subsequent operations. But first, it is necessary to transfer the final balances of the previous period to the beginning of the new one. Such balances will be called incoming, they must be recorded in the appropriate column: debit balance - on the left, credit - on the right.

Let's go back to the example. You have decided to transfer another 7,000 rubles from the cash desk to your current account. Two accounts are involved. First, do not forget to transfer the incoming balances along them (in the figure below they are circled in green), then we write the posting to 7,000 (in CT "Cashier" and in Dt "R / s").

No further action was taken on the accounts during this period.

At the end of the 2nd month, we first calculate the turnovers, while we do not pay attention to the incoming balance (turnovers are circled in blue). Then we calculate the final balance (in the red rectangle), already taking into account the opening balance. The following picture turns out:

Of course, these are pretty primitive examples. In fact, in accounting, everything is much more complicated. But it is quite possible to get basic concepts of what debit, credit and balance are from this article.