Lectures On Accounting Fundamentals Four - Classification Of Accounts (Part 1)

Each account can only record a certain aspect of the economic activities of the enterprise, and it is impossible to record all the economic activities of the enterprise.

As a whole, the economic activities of enterprises need to be reflected by an interconnected account system.

The classification of accounts is to study the commonalities existing among the accounts in this account system, to find out its rules, to ascertain the status and role of each account in the account system, so as to deepen the understanding of accounts and make better use of accounts to reflect the economic business of enterprises.

According to modern management theory, classification is a basic management.

Scientific classification of accounts helps to manage scientifically.

By classifying accounts according to different standards, we can understand accounts from different angles and divide all accounts into various categories.

Its classification standards are generally classified according to accounting elements, classified according to their usage and structure, and classified according to the degree of detail provided.

According to the accounting elements, the balance equation of accounting is: balance of assets = Liabilities + owner's equity. This equilibrium equation shows the basic balance relationship of accounting. It is the basis of accounting and restricts and determines the whole accounting work.

The elements in the equilibrium equation are called accounting elements.

The classification of accounts by accounting elements is classified according to the relationship between the economic content and the accounting elements.

For enterprises to carry out production and operation activities, first of all, they must have certain venues and equipment, and at the same time, they must also have some revolving funds. These economic resources that can be measured or measured by money are assets owned or controlled by enterprises.

In order to reflect the change and balance of assets, we need to set up a kind of account to reflect the change of assets through the amount of accounts, and reflect the balance of assets through account balance.

The assets of enterprises mainly come from the investment of creditors and owners.

Creditors shall be liable for debts paid by enterprises' future assets or services.

In order to reflect the situation of creditors' funding and repayment, they need to set up a kind of account to reflect the formation and payment of debts through the amount of accounts, and reflect the outstanding debts through the balance of accounts.

The owner's equity is the balance after the total assets of the company are deducted from liabilities.

When the enterprise is created, it is the capital invested by the investors. After the profit of the enterprise's production and operation activities, the owner's equity is the sum of the invested capital and the undistributed profit.

In order to reflect the changes and consequences of the increase or decrease of the invested capital and undistributed profits, an account is set up to reflect the change of the increase and decrease of the invested capital and the undistributed profit through the amount of the account. The amount of the account reflects the actual amount of the result and the undistributed profit after the change of the capital invested.

After the acquisition of assets from different sources, enterprises will invest in production and operation activities.

Production and operation activities are bound to earn various revenues in the business of selling goods or providing services.

At the same time, enterprises must have some expenses to carry out production and operation activities.

When the income gained by enterprises has been consumed in the compensation of production and operation activities, profits have been formed.

In order to reflect the acquisition of enterprises' income, the occurrence of expenses and the formation of profits, two kinds of accounts should be set up. The amount of one kind of accounts reflects the income of enterprises. The amount of a class of accounts reflects the cost and expense situation in the process of production and operation.

Through the carry over of the two kinds of accounts, the profit formation of the enterprises is settled.

As a result, accounts are classified according to accounting elements. They are generally divided into five categories: assets, liabilities, owners' equity, income and cost.

The accounts reflecting assets are divided into accounts reflecting current assets and long-term assets according to the liquidity and management accounting needs of assets.

Accounts reflecting current assets can be divided into accounts reflecting money funds, such as "cash" and "bank deposits", according to the liquidity of assets and the role played in the production and operation process. Accounts such as "accounts receivable" and "accounts receivable" should be reflected. Accounts reflecting inventory, such as "materials" and "finished products", account for long-term assets, such as "fixed assets" and "accumulated depreciation".

The accounts reflecting liabilities are divided according to the reasons for forming liabilities, and are divided into liabilities accounts reflecting the production and operation activities and liabilities accounts reflecting the formation of business results.

It reflects the debt accounts due to production and operation activities, such as accounts payable, pre - collection accounts and short - term loans. It reflects accounts such as "payable taxes" and "PAYABLE profits".

The accounts of owners' rights and interests are divided into accounts reflecting capital input, accounts reflecting capital from profits and accounts reflecting undistributed profits according to the source of rights and interests.

Accounts reflecting capital input, such as "paid in capital" accounts, reflect accounts drawn from profits, such as "provident fund" accounts; accounts reflecting undistributed profits, such as "profit distribution", "current profits" and other accounts.

According to whether income is related to the production and operation activities of enterprises, it is divided into business income accounts and non business income accounts.

Accounts reflecting business income, such as "business income" accounts, accounts reflecting non business earnings, such as "non operating income" accounts.

The accounts reflecting the cost cost are divided into business cost account and non business cost account according to whether the cost is related to the production and operation activities of the enterprise.

The accounts reflecting business cost expenses can be divided into cost accounts reflecting the purchase process, cost accounts reflecting the production process and cost accounts reflecting the sales process according to the cost incurred in various stages of production and operation process.

Cost accounts reflecting production processes, such as "manufacturing costs", "management fees" and other accounts; accounts reflecting the cost of sales processes, such as "operating costs" and "operating expenses", etc.; cost accounts reflecting the purchase process, such as "material procurement" accounts, accounts reflecting non business cost expenses, such as "non operating expenses" accounts.

Two. According to the detailed classification of the indicators, the accounting information required for the management of enterprises is not only required to provide some general indicators, such as accounting through the "material" account, providing the omnibus information about the changes and the structural conditions of the materials, accounting for the accounts receivable, providing the omnibus data for the formation, recovery and results of all the receivables, and requiring the accounting to provide some detailed indicators. For example, through the calculation of materials, we should provide a certain kind of materials, changes and balances of a certain material, and, through checking accounts receivable, provide specific accounts receivable units or individuals and receivables. To talk about

To meet all the requirements, the above accounts need to be further broken down to form accounts at different levels, providing detailed information on various economic activities.

The accounts are classified into general ledger accounts and subsidiary ledger accounts according to the degree of detail of the indicators provided.

The general ledger account is a comprehensive account of the specific contents of the economic activities of an enterprise. It can provide a comprehensive accounting index for a specific content.

The above accounts are general ledger accounts, also known as general ledger accounts and first class accounts.

In China, in order to ensure the consistency and comparability of accounting standards, we can ensure that accounting data can be aggregated and analyzed in a department, an industry, a region and even the whole country. In order to facilitate enterprises to prepare accounting vouchers, gather information and prepare accounting statements, the names, accounting contents and usage methods of general ledger accounts are generally formulated.

Every enterprise should set up several general ledger accounts according to the characteristics of the business and the account names formulated by the unified system.

The subsidiary ledger account is a detailed accounting account of an enterprise's economic business. It can provide detailed accounting indicators for a specific economic business.

In actual work, except for a few general classification accounts, such as the "current profit" account, there is no need to set out the ledger account. Most of the general ledger accounts need to set up subsidiary ledger accounts. For example, under the general ledger account, a subsidiary ledger account should be set up according to the categories, varieties or specifications of the materials, and a subsidiary ledger account should be set up according to the name of the purchase unit under the general ledger account.

The subsidiary ledger accounts are set up according to the specific contents of the enterprise's economic business. The detailed accounting information provided by them is mainly to meet the needs of internal management and operation of enterprises.

The specific contents of each enterprise or unit's economic operation are different, and the level of management and management is inconsistent. The name, accounting content and use method of the subsidiary ledger account can not be unified. It can only be stipulated by enterprises and units according to the actual needs of operation and management and the specific contents of economic business.

If an enterprise can set up "payable accounts", a subsidiary ledger account of the general ledger account, according to the specific name of its material supply unit.

If there are more detailed subsidiary accounts of a general ledger account, two level accounts can be added to facilitate control.

The two level account is an account between the general ledger account and the subsidiary ledger account.

It is also determined by enterprises and units according to the actual needs of operation and management and the specific contents of economic business.

If there are more materials and varieties, in order to facilitate control, we can set up two levels of accounts, such as raw materials, fuel and auxiliary materials, under the general ledger account of materials. Under the three level account, we will set up detailed subsidiary accounts of yuan steel, carbon steel and angle steel according to the varieties of materials.