Types of Account Accounting Items

The term accounts is derived from the meaning of the verb ” to count “, in its most general meaning, to refer to an action that is the result of making a computation or numbering a series of objects or any type of thing that at the time requires an enumeration , as long as that set of things corresponds to a type of homogeneous unit.

It was previously pointed out that it refers to the term in its simplest concept, well, it must be said that there are more interpretations or uses of the term. In this article we will refer to two areas such as accounting and mathematics .

Regarding the use of the account concept in accounting, they point to these as any series of records that are recorded in relation to the increases or decreases of values ​​that intervene in the total operation of a commercial company in any sector. Said registry has the purpose of classifying the financial or administrative operations of the company itself and under the principles that govern it in the management of accounting, there is a clear record of the accounting nature of the company to represent them in the databases. that are considered pertinent to carry out for its analysis.

The records of the accounting accounts are made chronologically and are allocated in accounting terms in the so-called accounting entries that reflect cash, credit or any other type of operations recognized by the fiscal and accounting entities.

In this sense, an account is understood as all that main element that has an accounting system that represents the income and expenses of the values ​​of the company in question. The information can be seen reflected in a basic unit of data represented in a general way in a statement of losses and/or in a balance sheet.

The values ​​that are reflected in the accounting system are directly related to the monetary unit that represents the economic system of the country in which the company’s economic activity is carried out. The data is crossed in general terms in two items that are the assets and rights that account for income and expenses in monetary values.

Although there is a general consensus of the accounts and the structure that is handled in every accounting system, each business situation and accounting record determines its own particular characteristics based on the patrimonial records that are accounted for.

The records of the accounting operations are reflected in what are known as accounting books , where the different accounts that are stipulated in a catalog of accounts with their monetary values ​​represented at the time of registration are emptied. In particular, each account reflects its own values ​​generally embodied in a scheme defined as “T”, where on the left side, the value of the movement that represents the “debits” of each particular operation that is reflected will always be noted. In its whole. While on the right side of the same figure, the “credit” or the credits and/or debts that the company acquires within its accounting, financial or credit operations will be recorded, in order to operate efficiently.

The total amounts of each of the accounts will be represented in their balance in the most general schemes such as the balance sheet and/or financial statements, which will globally present the accounting statement and financial situation of the company in real time. .

Functioning

Within the global accounting environment, two operating and information management systems are recognized: the administrative system and the speculative system. Both cases represent the accounting reality of the organization under two data representation approaches.

Administrative system

In the case of the administrative system, what is followed is to carry out in real time and precisely, the accounts with their respective values, of everything that represents the equity value of the company as a whole. The records will be, in summary, all those charges and payments, depending on the particular case of each operation, that represent the real monetary value at the time, that is, it can be the acquisition value of a certain good or service for the benefit of the daily operations of the company or, the value for the reimbursement of an economic commitment that was committed between the company and a supplier.

The result of the amount in each of the documents that represent the accounting of a company, must accurately reflect the value of the equity and other values ​​that the company has, that is why it is said that the accounting is the faithful reflection of the situation in which the company is located. Its real value is reflected in the income accounts of the accounting system.

speculative system

In this case, the accounting record has another approach, and it is to have the possibility of being able to make the pertinent records in the accounting system, in a homogeneous way on an account that in one period represented a value, and in another moment for the value changing things, represent a different value than the first record. This occurs on a recurring basis when it comes to the value of the purchase price of a good with the sale price of the same good.

When these situations arise, there is a mismatch in the accounts that are recorded and therefore, the balance does not reflect the real value of the record in question. For such a situation, it is necessary to make a series of adjustments, in fact, in accounting, balancing operations are called “adjustment of accounts” and are represented by the so-called “T” or major schemes. At the end of the adjustments, what is done is to recalculate the final result by reviewing sales compared with purchases, to determine the actual existence and compare them with the final result of the adjustment.

In the end, the profit or loss will be affected by the changes to the accounts, although it will reflect the state of the accounting and financial situation of the company in real terms. For this, it is recommended that the adjustments be made at the end of the fiscal year so as not to alter the projections before the end of said fiscal year.

Account characteristics

From the point of view of accounting, each story in particular and in general, tries to collect the initial value of each one of them represented in monetary values ​​and in subsequent and necessary dates, according to the nature of the operations, to represent accounting the changes that occur.

At any time during the fiscal period of the accounting operations, it is possible to know in real time the situation of each of the accounts at their current value. To do this, a specific record is made of the initial values ​​of each value, comparing it with the increases or decreases in its value at the end of the record. In the end, the entire record is reflected in an accounting book that will be archived for later consultation and analysis by those responsible for management and accounting.

Types of ledger accounts

asset accounts

These accounts accountably represent the possessions and rights that a company has in relation to certain real estate or other types of assets, whether physical, monetary or of another type of value. These accounts will have an increase in their value when charges or debits are presented in the operations. Otherwise, it will happen when it decreases when payments are made or credit commitments are fulfilled. At the end of the day, the total balance must always reflect a debit balance.

Types of asset accounts

Fixed asset accounts

In this type of accounts, the records of all those types of goods that precisely represent an asset for the company will be kept, among which are vehicles, facilities, machinery, real estate, among others.

Current asset accounts

In this case we find a subdivision of assets in general. At this point, all those assets such as banks, merchandise, shares, accounts receivable, bonds, supplies and raw materials will be recorded, that is, it represents the value of the asset that moves in circulation, that is, in short periods of time. weather.

In other words, current assets are known as all those cash, goods or rights that can be converted in whole or in part into cash within the normal cycle of operations of the company itself, that is, in a short period of time. That is why it means that the money is circulating gradually. For this, a normal period of time should be understood as the general average in which the total value of the cash that has been invested in assets, such as raw materials, for example, can be transformed into cash immediately. And this will happen when the stages of production, sale and recovery of accounts receivable are fulfilled.

As most of the accounting processes are governed in a fiscal year period that is carried out in a defined period of one year, most of the time it is stipulated that in that time that is equal to or less than one year, it will represent the short time of classification and within it the current assets will be represented in its operations.

The most common accounts of this type of assets are cash, movement in bank accounts and accounts receivable, as the most common.

Cash register

This represents the total money that the company has in cash. These monetary values ​​are reflected by coins, bills, checks and other types of documents that represent a total amount of exchangeable cash in a short period of time. The account balance increases when the company has received money from product sales operations, for example. A decrease will occur when the company makes a cash outflow to make a payment.

bank accounts

In it are represented by documents, all those monetary values, which have been deposited in the banking institution that has been contracted for the provision of said services. The bank account will increase when an amount of money is deposited, while it will decrease when the company itself issues a check in order to make payments through this method.

Fixed or non-current assets

This type of assets is represented by all those assets or rights that the company has when it has acquired them to carry out operations, that is, they were purchased for the direct benefit of the company and are not intended for sale or any other type of remuneration. economic. There will be an exception in the need to sell these assets and it will be in case the company for any reason has to declare bankruptcy.

Deferred asset, or deferred charge

This item includes all those payment commitments that the company has to recover in advance. The reason why they are considered assets is due to the fact that, being advance payments, they can enjoy the products or services that appeal to said operation. It is important to keep in mind that over time, the goods acquired for this concept will lose their value over time, for this reason, an account adjustment procedure will be required.

Other asset accounts

In this section of the accounting record, the values ​​that represent the patents and other assets that are related to this concept, such as trademark rights, among others, are noted.

Liability Accounts

In general terms, they represent the debts and/or obligations that the company acquires in order to be able to develop its operations efficiently. They are necessary accounts that will increase with the payment to them and will decrease when a type of charge is presented.

So, here the debts and obligations that the company has with third parties will be registered. The need to acquire these debts, among other things, is based on the company’s own needs to acquire goods or services for its proper functioning, always seeking to maintain a balance between the monetary value of assets and liabilities to have liquidity and accounting solvency.

Types of liability accounts are short term

providers

This account has the function of representing the obligations that it has in relation to the payments to be made at the agreed time, to the suppliers for the provision of the goods or services for which they were contracted.

There are other accounts in this group such as documents payable, various creditors, among others.

Other types of accounts

estate accounts

In them we will find all those utilities that have been reached at the end of the fiscal year. They can also be represented, in the event that it happens, the loss obtained at the end of the fiscal period as well as the capital that the company has.

profit accounts

It is a type of accounting system that represents the information of the current state of accounting in values ​​that increase or decrease, as the case may be; of the assets it has.

loss accounts

Otherwise, the loss of part or all of the capital, which will not be recovered under any circumstances, is accounted for. And the scenario can arise that for this reason, the company declares bankruptcy in order to correct its lack of liquidity by selling its assets.

mixed accounts

They are those accounts that represent reverse scenarios to their initial nature, that is, a debtor represents a credit balance of their account and vice versa. In this case we can mention as an example the types of account with discounts or commissions.

bank accounts

It refers to the contract that a natural or legal person acquires with a banking institution so that the latter provides its relevant financial products or services. The main objective is that the beneficiaries can efficiently manage their monetary resources that have been deposited in said banking institution.

Types of bank accounts

Savings accounts, checking accounts, money market accounts, deposit accounts, individual retirement accounts, checking accounts

Comprehensive accounts

Thus, those accounts that represent the value of the rights, obligations and assets of an entity represented in the general balance of accounts within the accounting system are defined.

T-account

It is the basic tool that allows the accountant to represent the debit and/or credit balances as well as their respective movements of each one of the accounts of the same accounting system. That is, the movements are recorded in their respective columns where, on the left side, the debit will be recorded and, otherwise, on the right side, the credit will be recorded.