Types of business transactions in accounting and their impact on the balance sheet

The accounting unit in a business unit is a business transaction. It is a separate event that causes changes in the composition of the property and the sources of its formation. Read more about what types of business transactions in accounting exist and how to conduct them correctly, read on.

Changes

In order to properly manage, it is important to have information about all household assets, their composition, location, sources of formation and directions of use. All these data are reflected in the balance sheet. It is built on a dual group of objects: property of the organization (assets) and sources of its formation (liabilities). All these elements are reflected in the balance sheet in cash.

Double entry

All types of business transactions in accounting make changes in the composition of assets and liabilities. In this case, a double entry is made in the balance sheet: debit and credit. These are two different accounts. Information is displayed in chronological order. For every transaction made, there must be documentary evidence.

Conventionally, each operation is divided into two stages: determination of offsetting accounts (quotation) and reflection of stocks in the balance sheet (posting). The latter are recorded in the journal of operations or memorial orders. To facilitate this process, each cost item is assigned a specific number, which appears in the wiring. These numbers are unified and correspond to the name of the balance sheet items. To correctly reflect the operation, it is important to understand that each transaction appears on two or more accounts, but in the same amount.

Kinds

A business transaction can affect only an asset (A), only a liability (P) or immediately property and sources of funds. The effect of a particular operation on the balance can be reflected in this way:

A + Expenses = Equity + Income + Liabilities.

Depending on the change in assets and liabilities, these types of business transactions in accounting will be distinguished:

• changes in assets only;
• change only liabilities;
• increase in assets and liabilities while maintaining a balance;
• decrease in assets and liabilities while maintaining balance.

The classification of business operations can be conditionally represented in the form of such equations:

A "+", A "-";
P "+", P "-";
A "+", P "+";
A "-", P "-".

Let's consider them in more detail.

First type of operations

In the balance sheet of the company you need to reflect the operation for the receipt of funds at the cash desk from a bank account for remuneration. Two asset items are affected here. The article “Current account” decreased by the same amount and “Cashier” increased. The balance sheet has not changed. This also includes:

• receipt of funds from debtors;
• return of unused reporting amounts;
• release of materials into production;
• shipment of products to the buyer, etc.

Business operations of the first type change the composition of the property without affecting the balance sheet. They can be written as such an equation:

A + X - X = P, where X is the amount of the transaction.

Such operations occupy a leading position in economic activity. Any production process is carried out in the presence of means and labor itself. All of these elements are in the asset.

Second type of operations

The balance sheet of the enterprise must reflect the operation to repay the debt of the supplier through a bank loan in the amount of 20 million rubles.

Two passive articles are mentioned here. The debt of the organization to the bank increases, and the debt to suppliers decreases. The balance sheet currency remains unchanged. Similar operations include tax withholding, directing profits to the reserve fund, writing off part of future income to profits, etc.

Such types of business transactions in accounting affect only the sources of property formation. They can be written as such an equation:

A = P + X - X.

Third type of operations

This type includes operations in which the asset and liability balance change simultaneously. Moreover, equality between them remains. For example, the receipt of a loan to pay salaries, the receipt of fixed assets as a contribution to the authorized capital, etc. The asset and liability of the balance sheet is changed by the same amount. Such operations can be written in the form of an equation:

A + X = P + X.

Fourth type of operations

The balance sheet of the enterprise must reflect the operation to repay the loan in the amount of 2 million rubles. As a result, there is a decrease in funds in the "Current Account" and a decrease in "Short-term loans." The asset and liability of the balance sheet are reduced by the same amount, while the balance sheet currency is also reduced:

A - X = P - X.

Let us consider in more detail how to reflect all types of business operations in a business unit.

Examples of active operations

In cash from the current account received funds in the amount of 150 thousand rubles. As a result of this operation, the balance in the bank account decreases (KT51) and the cash balance at the cash desk (DT50) increases. Accounting transactions for business operations: DT50 KT51 - 150 thousand rubles.

The balance before the transaction is presented in the table below.

The balance after the transaction is presented in the table below.

Examples of passive operations

Withholding personal income tax on salaries in the amount of 20 thousand rubles. This business transaction leads to a decrease in the debt of the enterprise to the staff (KT68). At the same time, debt to the budget is increasing (DT70). Wiring: DT70 KT68 - 20 thousand rubles.

The balance before the transaction is presented in the table below.

The balance after the transaction is presented in the table below.

Examples of active passive operations

The third type. The warehouse received materials from the supplier in the amount of 320 thousand rubles. unpaid invoice. The operation affects the asset and liability:

• materials in the warehouse are increasing: KT10 +320 thousand rubles.
• Accounting for settlements with suppliers and contractors: KT60 +320 thousand rubles.

Wiring: DT10 KT60 - 320 thousand rubles.

The balance before the transaction is presented in the table below.

The balance after the transaction is presented in the table below.

The fourth type. The organization paid off debts to the supplier in the amount of 500 thousand rubles. The operation affects the asset and liability:

• Accounting for settlements with suppliers and contractors: DT60 -500 thousand rubles.
• the amount of cash in the bank account decreases: DT51 -500 thousand rubles.

Wiring: DT60 KT51 - 500 thousand rubles.

The balance before the transaction is presented in the table below.

The balance after the transaction is presented in the table below.

In all these cases, the changes are equal. The balance sheet currency is adjusted for the same amount.

Importance of balance

It is important to comply with all of the above requirements when drawing up a balance. It clearly reflects the financial condition of the organization, shows who invested the funds, how they were allocated and how loans were secured. After analyzing the balance sheet over several periods, you can imagine the dynamics of the organization and determine whether resources are used rationally. The presence of a correctly prepared report allows the manager to think over all the consequences of the organization’s activities, consciously conduct business, and search for internal reserves.

As a reporting document, the balance sheet contains important information. The organization reports to them to the governing bodies, tax administration, statistics, credit institutions. Based on the information in the balance sheet and other reporting forms, the net profit indicator is calculated, the amount of taxes, assessed contributions and payments is established.

The balance in scientific research is a summary of accurate, systematized data on property status, economic activity, statics and dynamics of individual farms. Without a comprehensive study and careful study of such reports, it is practically impossible to work out effective ways of developing and raising the economy of the country as a whole and of a specific organization in particular.