Accounting Method Stipulated In Chinese Accounting Law

The bookkeeping method refers to the method of recording the economic business recorded in the account book by using a unified monetary measurement unit according to certain principles and rules of accounting.

Setting up accounting subjects and setting up accounts is like building a room in a hotel in a scenic area according to the pre designed blueprint to make a number of rooms to meet the needs of different levels of customers.

And how to make these rooms play their due role is the accounting method that we need to know and master.

In accordance with the accounts set up by accounting subjects, the economic pactions will be registered in the relevant books faithfully. This is the significance of the accounting method.

According to the different ways of recording economic business, bookkeeping methods can be divided into single accounting and double entry bookkeeping.

The single entry bookkeeping method refers to the accounting method that reflects only one account in the economic business.

The single entry bookkeeping method is a relatively simple and incomplete accounting method. Although it has the advantages of relatively simple procedures, it can not reflect the overall economic development and the accuracy of account records because it has no complete account system and accounts can not form a corresponding and balanced relationship.

The double entry bookkeeping method corresponds to the single entry bookkeeping method. It is a scientific bookkeeping method evolved from the single accounting method.

The double entry bookkeeping method refers to the accounting method of each economic business that must be reflected at the same time in the two or more than two accounts which are related to each other.

Although this bookkeeping method is more complicated than that of the single accounting method, it can improve the clarity of accounting information and account for the correctness of account records and check the balance of trial balance as it can comprehensively and systematically reflect the economic business and maintain the balance and balance between accounts.

The double entry bookkeeping method mainly includes three types: the double entry credit and loan method, the increase and decrease double entry bookkeeping method and the receipt and payment double entry bookkeeping method.

Debit and credit double entry bookkeeping method, referred to as "debit and credit bookkeeping", refers to a double entry bookkeeping method that takes "borrowing" and "lending" as recording symbols and reflects changes in accounting elements.

The initial "borrowing" and "loan" are the economic categories linked to the loan relationship in the commodity economy, and they represent a way of borrowing and lending related to economic pactions.

With the development of commodity economy, "borrowing" and "lending" have gradually lost their original meaning of "borrowing" and "lending" and become a simple bookkeeping symbol.

Just like a person's name is just a symbol of each individual.

The main features of debit and credit bookkeeping are:

Take "borrowing" and "lending" as the bookmarks.

The basic structure of the account under the debit and credit bookkeeping method is that the left side is the borrower and the right side is the lender.

As for which party to register to increase, which party to reduce the registration, it depends on the economic content reflected in the account.

Since the double entry bookkeeping method is based on the theory of "assets = Liabilities + owners equity + (income cost)" accounting equation, the general rule of increasing or decreasing account registration under the debit and credit bookkeeping method is as follows:

Debtor account name credit

Initial balance of assets or expenses, liabilities, owners' equity or profits.

An increase in assets or expenses, liabilities, owner's equity, income or profit reduction, liabilities, owner's equity, income or profit increase, asset or expense reduction.

The ending balance of assets or expenses at the end of the balance, liabilities, owners' equity or profits.

The relationship between the balance at the beginning of the account and the balance at the end of the account is as follows:

Assets or expense accounts: end balance = initial balance + debit amount of the current period - the amount of the credit period.

Liabilities, owners' equity and other accounts: end balance = initial balance + lender's current amount of debit this period.

The bookkeeping rule of debit and credit bookkeeping is: if there is borrowing, there will be loans.

According to this rule, once an economic operation occurs, it must be registered in two or more than two related accounts with the same amount.

For example:

When an enterprise uses a bank deposit of 5000 yuan to purchase material business, it will increase the "bank deposit" and "raw material" two asset class accounts by 5000 yuan.

When an enterprise borrows short-term loans from banks for 10000 yuan and is directly used to repay an account payable business, it will increase the amount of two debt classes of "short-term loans" and "accounts payable" by 10000 yuan.

When an enterprise receives a donation of 20000 yuan and the bank's economic business takes place, it will increase the amount of a "bank deposit" asset account and a "capital reserve" owner's equity account by an additional 20000 yuan.

When an enterprise uses a bank deposit of 50000 yuan, it returns a long-term loan from the bank.

When it occurs, a "bank deposit" asset account and a "long-term loan" debt account will be reduced by 50000 yuan simultaneously.

I will cheer for you.

The analysis of the above economic business can be concluded that, under the bookkeeping rules of "borrowing and lending, lending must be equal", the general registration rule of economic business is "one account for one account for the same account, one for the two kind, one for the other".

Although there will be a "multi loan" or "multi loan" loan in the face of complex economic operations, it will not break this basic rule.

When we use the debit and credit bookkeeping method to register economic pactions, the accounts will automatically form a mutually controlled relationship. This relationship is called the corresponding relationship of accounts, and the corresponding accounts are called corresponding accounts.

For ease of account

The correct expression and the future supervision and inspection shall, before recording the economic business into the account books, prepare accounting entries according to the accounts involved in the economic pactions and the direction and amount of their loans.

Accounting entry refers to a double record of an economic business that should be borrowed and payable and its amount.

There are two kinds of accounting entries: simple entry and compound entry.

Simple entry refers to accounting entries that involve only two related accounts, and compound entries refer to accounting entries involving more than two related accounts.

Or an accounting entry with more than one loan.

In order to keep the clarity of account correspondence, it is generally not necessary to compiling accounting entries with multiple loans and loans.

Account bookkeeping is like the saying "always walking by the river, where can't wet shoes"?

In order to ensure the correctness of the economic pactions in account records during a certain accounting period, it is necessary to balance trial accounts at the end of a certain accounting period.

As the accounting method of borrowing and lending is based on the accounting equation of assets = Liabilities + owners' equity, the accounting rules are "borrowing, lending and borrowing".

Therefore, the equilibrium relationship between borrowing and lending is reflected not only in every accounting entry, but also in the relationship of all accounts.

Its main manifestations are:

The total amount of the total debits in the current account = the total amount of the total credits in the current period.

Total debit balances at the beginning of all accounts = the total credit balance at the beginning of all accounts.

The total debit balance at the end of all accounts = the total credit balance at the end of all accounts.

It should be noted that trial balance is only a way to check the correctness of account records.

If the trial results are not balanced, the accounts will be recorded or calculated. If the trial results are balanced, both the borrower and the balance can only prove the correctness of the account records, but not the absolute correctness of the account records.

This is because the trial balance is just like the fact that "when it rains, it can be sure that there are clouds in the sky, and the cloud may not necessarily rain". It is only a necessary condition for the correctness of accounting, rather than a necessary and sufficient condition.

Trial balance is meaningless for checking accounts of accounts, missing records, incorrect accounting subjects, wrong direction of lending, and linking households in the same direction.