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

In the accounting unit, the accounting unit is an economic transaction. It is a separate event that causes changes in the composition of property and sources of its formation. More details on what types of business transactions exist in accounting and how to properly conduct them, read on.

Changes

To properly implement management, it is important to have information about all economic means, 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: the assets of the organization (assets) and sources of its formation (liabilities). All these elements are reflected in the balance sheet in monetary terms.

Double entry

All types of business operations in accounting make changes in the composition of assets and liabilities. This makes a double entry in the balance sheet: the debit and the loan. These are two different accounts. Information is reflected in chronological order. Each document must be documented for each transaction.

Conditionally, each operation is divided into two stages: the determination of the correspondent accounts (quotation) and the reflection of the stock in the balance sheet (posting). The latter are recorded in the journal of operations or memorial warrants. To facilitate this process, each cost item is assigned a certain number, which appears in the posting. These numbers are unified and correspond to the title 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 only affect an asset (A), only a liability (P) or immediately property and sources of funds. The impact of a particular operation on the balance can be reflected in this way:

A + Costs = Capital + Income + Liabilities.

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

• Change only assets;
• Change only liabilities;
• Increase in assets and liabilities with a balance;
• Decrease in assets and liabilities with a balance.

Classification of economic operations can be conditionally represented in the form of such equations:

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

Let us consider them in more detail.

The first type of operations

In the balance sheet of the company, it is necessary to reflect the operation on the receipt of funds to the cashier from the bank account for payment of labor. Here two articles of the asset are affected. For the same amount, the item "Settlement account" decreased and the "Cashier" increased. The currency of the balance sheet has not changed. Here you can include:

• Receipt of funds from debtors;
• Return unused reporting amounts;
• Release of materials into production;
• Shipment of products to the buyer, etc.

Economic operations of the first type change the composition of the property, without affecting the balance sheet. They can be written in the form of the following equation:

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

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

Second type of operations

In the balance sheet of the company, it is necessary to reflect the operation to pay off the supplier's debt at the expense of a bank loan for the amount of 20 million rubles.

Here two passive articles are mentioned. The debt of the organization to the bank increases, and the debt to suppliers decreases. The currency of the balance remains unchanged. Similar operations include retention of taxes, the direction of profits in the reserve fund, writing off some of the future income for profit, and so on.

Such types of business operations in accounting only affect sources of property formation. They can be written in the form of the following equation:

A = П + Х-Х.

The third type of operations

This type of operation includes operations in which the asset and liability of the balance are simultaneously changed. In this case, the equality between them is preserved. For example, the receipt of a loan for the payment of wages, the receipt of the OS as a contribution to the statutory fund, etc. The asset and liability of the balance sheet are changed by the same amount. Such operations can be written in the form of the equation:

A + X = II + X.

The fourth type of operations

In the balance sheet of the company, it is necessary to reflect the operation for the repayment of a loan in the amount of 2 million rubles. As a result, there is a decrease in funds on the "Settlement Account" and a decrease in "Short-term loans". The assets and liabilities of the balance sheet are reduced by the same amount, while the balance currency is also reduced:

A - X = P - X.

Let us consider in more detail how to reflect in the BU all types of economic operations.

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 of funds in the bank account (KT51) is reduced and the balance in the cash department (DT50) is increased. Accounting entries for business transactions: DT50 KT51 - 150 thousand rubles.

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	17th	Debt to the budget	10
Checking account	150	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	167	Debt to the budget	10
Checking account	0	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

Examples of passive operations

Withholding personal income tax from the salary of 20 thousand rubles. This economic operation leads to a reduction in the enterprise's debt to staff (KT68). At the same time, the debt to the budget is increasing (DT70). Posting: DT70 KT68 - 20 thousand rubles.

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	17th	Debt to the budget	10
Checking account	150	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	167	Debt to the budget	thirty
Checking account	0	Arrears in payment	16
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

Examples of active / passive operations

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

• Materials in the warehouse are increasing: KT10 +320 thousand rubles.
• Accounting calculations with suppliers and contractors: KT60 +320 thousand rubles.

Posting: DT10 KT60 - 320 thousand rubles.

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	17th	Debt to the budget	10
Checking account	150	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	334	Settlements with creditors	360
Cashbox	167	Debt to the budget	thirty
Checking account	0	Arrears in payment	16
Settlements with debtors	19	Bank loans	4
TOTAL	560	TOTAL	560

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

• Accounting of settlements with suppliers and contractors: ДТ60 -500 thousand rubles.
• The amount of money in the bank account is reduced: ДТ51 -500 thousand rubles.

Posting: DT60 KT51 - 500 thousand rubles.

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	540
Cashbox	17th	Debt to the budget	10
Checking account	650	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	740	TOTAL	740

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

Assets	Thousand. rub.	The passive	Thousand. rub.
OS	40	CC	150
Materials	14	Settlements with creditors	40
Cashbox	17th	Debt to the budget	10
Checking account	150	Arrears in payment	36
Settlements with debtors	19	Bank loans	4
TOTAL	240	TOTAL	240

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

Importance of balance

It is important to comply with all the requirements listed in the balance sheet. It clearly reflects the financial state of the organization, shows who invested, how they are placed and how the loans are secured. After analyzing the balance for several periods, you can imagine the dynamics of the organization's development and determine whether resources are used rationally. The presence of a correctly compiled report allows the head to think over all the consequences of the organization's activities, to consciously manage the economy, to search for internal reserves.

As a reporting document, the balance sheet contains important information. They are accountable to the governing bodies, the tax administration, statistics, credit institutions. Based on the information in the balance sheet and other reporting forms, the net profit is calculated, the amount of taxes, mandatory contributions and payments is set.

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 enhancing the economy of the country as a whole and of the particular organization in particular.