Knowing the accounting accounts and the two main groups in which they are classified, real accounts and nominal accounts, will help you in the consolidation of the financial statements. In this document, a conceptual description is made of the accounts that make up the assets, liabilities and capital, these instruments of importance for any public or private entity since they make it possible to carry out financial control and allow the realization of a balance sheet, a balance of the profit and loss statement, an accounting and financial analysis and other means that will help maintain such control.
Contents
ACCOUNTING ACCOUNTS. DEFINITION
The accounts are nothing other than accounting means with operating instruments, through which we can subdivide assets, liabilities and capital and group them according to certain affinity characteristics, which allow us to graph all the increases and decreases that occur in the various elements of the equation.
Example:
If we want to know the movement of cash on hand, we will use an account that reflects that asset and which we will call “ cash ”.
If we want to know the movement that affects the rights we have over third parties, we will call the account " Account receivable "
The chairs, tables, files, etc., will be reflected in an account called " Furniture ".
What we owe to third parties through invoices we will keep in a liability account called " Account payable "
The form and content of the account will vary according to one company to another. And it will mainly depend on the type of accounting system that is being used to record transactions.
We can list some of the methods for making data records within a company.
- Covered books (where one sheet is used for each account). Movable sheet book (hook folder type, where you can add transaction agreement sheets). Loose cards for accounts where accounting machines must be used. Systems of cards or tapes for computers (this system is used by large companies where there are significant volumes of operations and for which they have to use electronic data processing through the computer).
CHARACTERISTICS OF ACCOUNTING ACCOUNTS
Whatever the method to use every "account" has common characteristics:
- At the top, the name and a code are placed to differentiate it from another account that clearly expresses its content “vehicle, furniture, box, bank, bill payable, etc.”. In the date column, the day month and year in which the operation to be recorded in the account occurs, the year and the month, it is not necessary to repeat it except when it varies. In the column called description, the reason that caused the increase or decrease in the account, for example cash sale. Collection of P. Pérez, paid salaries, etc. In the column of "must" the amounts in monetary terms that mean charge or debit for the account are noted. In the column of "Credit" the amounts in monetary terms that represent credit or credit for the account.In the balance column we will indicate what is left in the account in monetary terms, after each charge or payment. In the "folio" column, a reference is presented where we will indicate the accounting book where the operation that is being registered comes from..
PARTS OF AN ACCOUNT
- HOLDER: It is the name of the account; it is what indicates to us that we are registering in it, that is, where we have titled purchase, we will register only the purchased merchandise; where we have titled sales only the merchandise sold; where we title bank only the movement of our accounts in banks, etc. MUST: The debit is the left side of the account, where everything the account holder receives is noted. When the client goes to a business and buys merchandise on credit, this man says: "charge me"; to charge the account is to write in the debit, it is also said to debit or to owe. TO HAVE:It is the right part of the account, where everything that the account holder delivers is recorded; When the previous client, the one who bought him on credit, pays him, "Pay me to my account"; crediting the account is crediting credit, can also be credited. BALANCE: It is the difference between the debtor and creditor movements. There are two types of balances, debit balance and credit balance.
CLASSIFICATION OF ACCOUNTS
The accounts are first classified into two main groups:
1. REAL ACCOUNTS
This group will be represented by the assets, rights and obligations of the company, that is, it is made up of assets, liabilities and capital, this is called real accounts because the balance of this account represents what a company has at any given time, that is, what he owns, what he owes, and which can be verified by the good or by the existing document; that is why some authors point out as palpable accounts. In addition, the real accounts have the characteristics of being permanent accounts, that is, that their balance is transferred from one balance to another, the real accounts will form the financial statement as is the "Balance Sheet".
2. NOMINAL ACCOUNTS
Their main characteristic is that they are temporary accounts, they last open for the duration of the accounting year of the company, and at the end of this, they are closed and their result is transferred to the capital account, which is ultimately the account that will be affected by the profit or loss of the business. The nominal accounts are created each year of the company to record the income, costs, expenses, losses and consequently to determine the results obtained by the company in that year, for this reason it is known as the income statement.
In addition to the real and nominal accounts we also find the Mixed accounts and the Memo accounts.
MIXED ACCOUNTS
They are those accounts whose balance on a given date is made up of a real part and another nominal part, however at the economic closing all their balance must be real in nature, such as some prepaid or deferred ones.
ORDER ACCOUNTS
They are those accounts that control certain operations or transactions that do not affect the assets, liabilities, equity or operations of the period, but in one way or another, the transactions that generated them involve some responsibility for the company and, consequently, it is necessary establish some kind of control over them. Memorandum accounts are presented at the bottom of the balance sheet, debtors below total assets and creditors below total liabilities and equity. Memorandum accounts are characterized by calling both the debtor and the creditor in the same way, but with the difference that the suffix per-contra is added to the creditor account.
Through the following video tutorial you will have the opportunity to learn more about accounting accounts, their classification and functionality. (4 videos, 38 minutes)
DESCRIPTION OF 195 ACCOUNTING ACCOUNTS THAT MAKE UP ASSETS, LIABILITIES AND CAPITAL
BOX
Real account of current assets. Reflects the money available in the company at a certain time, your balance can be debit or zero, in no case this account can have a credit balance. It can also be said that it is the money owned by the company, existing in its own office at the balance sheet date.
FIXED FUNDS
Real current assets account, commonly called Caja Chica, is an amount of money in legal tender determined by the company to understand minor payments of a general or previously determined nature.
BANKS
Real account of current assets. It includes the cash that the company has deposited in banking or credit institutions, as long as it is available. Generally this amount is represented by current accounts.
This account is used to register the money that we have deposited in the banks with which we work, the balance in this account can be debtor or zero and in very few exceptions it can have a credit balance.
FIXED DEADLINES
Real account of current assets. Period granted for the payment of a debt or for the presentation to the payment of certain financial documents, within which there is no interest for delay or penalty.
PLACEMENTS
Real account of current assets. They are all those stocks and bonds that put the company at stake in the stock market in a short or long period to obtain greater benefits.
EFFECTS RECEIVABLE
Real account of current assets. We use this account to record what our clients owe us. These assets are represented by bills of exchange, promissory notes, etc., which generally come from sales to credit services made by the company to third parties, are documents of great legal value, since they can be made payable on the due date. or proceed to collect them judicially in a quick way, in other words they originate from sales or credit services provided by the company, they are backed by negotiable commercial documents.
DISCOUNTED RECEIVING EFFECTS
Real supplementary asset account (current assets). The balance of the account is made up of the nominal value of the documents that have been delivered at a discount to a financial entity. Normal balance Creditor
ACCOUNTS RECEIVABLE
Real account of current assets. They represent the total amount that customers owe to the company, due to the sales or services that the same provides represented by invoices or Debit Notes.
PROVISION FOR NON-RECEIVABLE ACCOUNTS
Real valuation account assets (Current assets) Some of the accounts receivable - customer become uncollectible, for this reason it usually establishes a provision that reduces the Accounts Receivable in the current act in order to leave them in the amount estimated ultimately it will be charged.
This provision is a creditor valuation account and is presented in the balance sheet decreasing the Accounts Receivable.
Generally, at the end of the accounting year an amount of the allowance for Doubtful Accounts is estimated, that is, it must be calculated how much of the Accounts Receivable open at the closing date, that is, the balance of Accounts Receivable, whose collection management is do during exercise.
ACCOUNTS RECEIVABLE OFFICERS
Real account of current assets. It is made up of loans, sales or the balances of expense advances that have not been reported or related.
ACCOUNTS RECEIVABLE EMPLOYEES
Real account of current assets. It is made up of loans made, advances granted to employees for expenses on account of the company and which have not been reported or related.
After an advance has been delivered, the employee must pass his corresponding expense list in order to justify the amount that was granted as an advance, and if the expense made on behalf of the company was greater than the amount of the advance and the employee placed his personal money, the corresponding reimbursement will be made and if it had been less than the advance, then the employee must reimburse the company for the amount that is left over.
ACCOUNTS RECEIVABLE FROM SHAREHOLDERS
Real account of current assets. It is made up of all those loans, advances, etc. Delivered to shareholders pending receivable.
ADVANCES GIVEN TO CONTRACT ACCOUNTS
Real account of current assets. All those advances delivered by way of any contract account in process. In general, it is done with the purpose of starting it and carrying out the activities inherent to it.
ICSVM, TAX CREDIT
Real account of current assets. It is a credit that the company has to compensate you with the tax debit. It is generated from the purchases made of goods or the receipt of services by an entity and that represents a tax caused that must be declared monthly in accordance with the provisions of the Sumptiary Consumption Tax and Wholesale Sales Law, currently VAT (Value Added Tax)
ADVANCE FOR EXPENSES TO JUSTIFY
Real account of current assets. This account is intended to record all disbursements made at the rate of per diem or any other type of per diem incurred by the company or employees, expenses that have not yet been made. Debit balance.
SALARY ADVANCES
Real account of current assets. As its name implies, they are advances that the company makes to its employees. Subsequently, these are deducted from your salary.
TEMPORARY INVESTMENTS
Real account of current assets. It represents investments that the merchant has made in goods or rights that are easily convertible into money, for example: mortgage bonds, savings certificates, etc.
It is also known as a speculative asset, they are represented by shares, bonds, various securities, which the company acquires in order to sell them and convert them into money in a short period of time and which must have as a characteristic that they are easily sold.
PROVISION FOR FLUCTUATION OF TEMPORARY INVESTMENTS
Real asset valuation account (current assets). As mentioned above, temporary investments are represented by bonds, securities, etc., which are acquired to be sold easily and quickly in order to obtain benefits, the company also estimates a provision for the fluctuation of these investments because they can vary in terms of amounts, quantities in the market, that is, it undergoes certain variations according to market behavior.
INVENTORIES OF GOODS
Current assets account, is the money that the company has invested in merchandise for sale. They are the well-known items that the company buys, for sale, they are the goods acquired by the company with the sole purpose of allocating them for sale.
The articles included in this line must be registered at their cost price, or at the current price on the market, if it is less than the cost.
In the case of a commercial company, it will be represented by the existence of merchandise for sale on a certain date, on the other hand, in the case of an industrial company, it will be represented by the inventory of raw materials, products in process and inventory of finished products.
INVENTORIES OF FINISHED PRODUCTS
Real account of current assets and is represented by all those products that are totally ready to sell. It is made up of goods that originate from the transformation of raw materials and the inclusion of others such as direct labor and indirect production costs. This type of inventory originates from companies with manufacturing or manufacturing processes, the main operations that occur with these assets are:
- Product termination. Product sales.
PROVISION FOR OBSOLESCENCE OF FINISHED PRODUCTS
Real asset valuation account (current assets). Represents the estimated amount of obsolete, expired or damaged finished products, which, according to the circumstances, cannot be made in cash through sales to customers.
INVENTORIES OF PRODUCTS IN PROCESS
Inventories of products in process correspond to costs incorporated in manufacturing companies and which consist of the following components:
- Raw Material: Formed by the materials that the factory uses in the elaboration of its products, and which are an indispensable part of the finished product. Direct labor: Represented by the direct human resource in the manufacture of products. Indirect production costs: Includes all those indirect amounts included in manufacturing.
From the accounting point of view, the amount of each of the named components must be added. Two operations are distinguished with inventories in process:
- Incorporation of costs to products in process Termination of products
RAW MATERIAL INVENTORIES
It is a real account of current assets. The raw material comprises the basic or main elements that go into the elaboration of a product, but in which no transformation work has yet been applied by the company.
PROVISION FOR RAW MATERIAL LOSSES
Real account of asset valuation (current assets). Item calculated by the company for future eventualities due to losses in raw materials.
MATERIALS AND SUPPLIES INVENTORIES
It is a real current assets account. They are those finished articles that are acquired to be used in the manufacturing process directly or indirectly and that for reasons of cost or quantity are not calculated per unit produced.
PROVISION FOR OBSOLESCENCE OF MATERIALS AND SUPPLIES
Real asset valuation account (current assets). Represents the estimated amount of materials and supplies that are obsolete, expired or damaged, and that according to the circumstances cannot be used or will not be part of the manufacturing.
INVENTORIES IN TRANSIT
Real account of current assets. This account registers merchandise that the company has bought and that therefore belong to it but that have not yet come into its possession.
TAXES PAID IN ADVANCE
Real account of current assets. Represents the amounts of taxes paid before their actual maturity.
INSURANCE PAID IN ADVANCE
Real account of current assets. When an insurance policy of any type is contracted, it must be canceled at the time of contracting the policy, then an expense that will have in the next year, if the insurance was made for one year, has been canceled.
INTEREST PAID IN ADVANCE
Real account of current assets. When you request a loan from a bank, it does not give you the money that he asked for in full, but rather gives you the request minus the interest corresponding to the term that you requested, that is, he collects the interest in advance.
RENTALS PAID IN ADVANCE
Real account of current assets. Corresponds to the amount purchased for rent which must be paid in advance, either due to contract conditions, for the start of the rental where months of the rent are generally charged in advance.
ADVERTISING PAID IN ADVANCE
Real account of current assets. All those expenses for advertising concepts which are paid before any advertising product or service is purchased. For example, press, magazine and other advertisements must be canceled in advance before publication.
OFFICE SUPPLIES
Real account of current assets. It is the material that is acquired to use (spend) in your office: clips, staples, pencils, paper, tipex, etc., that has its existence to consecutively spend it as necessary.
LONG-TERM EFFECTS RECEIVABLE
Real account of non-current assets. They are all those assets represented by letters or promissory notes, which generally come from sales or services provided on credit and which are effects in favor of the company to be collected over a long period of time, that is, in the long term.
LONG TERM ACCOUNTS RECEIVABLE
Real account of non-current assets. Represents the amount owed by customers for sales or services rendered and that in a certain period of time established will be canceled.
MORTGAGES RECEIVABLE
Real account of non-current assets. Real right that taxes real property, subjecting them to answer for the fulfillment of an obligation or the payment of a debt. And that represents for the company a value receivable.
INVERSIONS IN ACTIONS
Real account of non-current assets. A corporation constitutes common capital, through the issuance and subscription of shares, the shares are part of the common capital of the company, the shareholder can acquire the shares when creating the common capital or can acquire it from any shareholder that sells his actions.
INVESTMENTS IN BONDS
Real account of non-current assets. They are credits issued by a governmental, industrial or financial entity, in order to obtain cash, committing to pay a fixed rate of interest and, in some cases, an additional annual fee.
INVESTMENTS IN PROPERTIES
Real account of non-current assets. They are all those properties acquired and that represent an investment for the company, such as houses, buildings, warehouses, etc.
INVESTMENTS IN SUBSIDIARY COMPANIES
Real account of non-current assets. Represented by those investments placed in subsidiary companies with varied objectives, such as capital injections, purchase of goods or services to be placed in the subsidiary. The subsidiary represents an extension of the company and that maintains a business relationship with each other.
PROVISION FOR SECURITIES FLUCTUATIONS IN THE MARKET
Asset valuation real account (non-current). It is a forecast that the company estimates and represents fluctuations in values that may occur in the market and may affect the value of stocks, bonds, etc.
LANDS
Real account of non-current assets. It represents all those Sites or land space owned by the company.
BUILDINGS
Real account of non-current assets. Reflects the building or buildings purchased by the company to rent them for additional income or to later sell the most expensive land (as an investment). But when it comes to the daily use building of the company with its offices, warehouses or factory (as a fixed asset). This is not acquired by the company for speculative purposes, but for the purpose of using them in its normal activities.
MACHINERY AND EQUIPMENT
Real account of non-current assets. They are all those machinery and equipment that the company has for the realization of its commercial activities corresponding to manufacturing, modification or services.
FURNITURE AND OFFICE EQUIPMENT
Real account of non-current assets. It is made up of all those pieces of furniture and waxes that are the property of the company and that are used in production or service areas, including shelves, desks, files, chairs, among others.
COMPUTING TEAM
Real account of non-current assets. Composed of all company-owned computing equipment, computers, computer systems. Etc.
VEHICLES
Real account of non-current assets. They are the vehicles that the company has for uses other than the distribution of merchandise and various transfers.
IMPROVEMENTS TO LEASED PROPERTIES
Real account of non-current assets. When a company rents a premises for its operation, generally the rental agreement establishes that the improvements made to the premises will be for the benefit of the owner, these premises are not always adapted for any type of business so that the tenant must make certain arrangements, this Of course, it is an expense that will be there when you leave the premises.
FACILITIES
Sets of elements owned by the company that together with the machinery and furniture intervene directly or indirectly in the transformation, distribution or sales of raw materials, semi-finished or processed products resulting from its usual activity. Asset account that collects the cost of acquiring these elements in its debts and in its amortizations.
ASSETS LEASED UNDER LEASING CAPITAL CONTRACTS.
Real account of non-current assets. Financial lease agreement in which one of the contracting parties (the company) acquires ownership of an equipment asset (usually machinery) from its manufacturer, and transfers it to the other contracting party (financial lessee or user). for a fixed period and in exchange for a periodic amount. This lease or leasing contract is driven by the user who needs to purchase a piece of equipment, checks its price and even enters into deals with the manufacturer and, once the information is obtained, goes to the Leasing company so that it can acquire the property. of the manufacturer's good and immediately afterwards it is transferred to the user for its use and exploitation.
In short, the company acquires the good in the interest of the person who is going to use it or extract utility from it and because the latter has requested it, so that the company does not assume the risk of buying a good and then not finding a user.
ASSETS UNDER CONSTRUCTION
Real account of non-current assets. They are those machinery and equipment that the company itself can manufacture for its use. Consequently, it is assumed that the manufacturing of fixed assets for the company will be done in the periods in which the factory is at a low level of production of items for sale.
DEPRECIATIONS
Depreciations are complementary Real accounts of assets (non-current assets). We can define it as the loss of value suffered by some fixed assets, either due to the process of wear and tear to which they are subjected, or due to the obsolescence or age of these active groups.
Fixed assets are those assets, with more or less permanent characteristics in terms of durability, that the company owns, in order to use them in its normal operations and whose intention is not to sell them.
Assets are classified into:
| Asset type | Classification | Examples |
| Tangible Assets | Not depreciable | Land |
| Depreciable | Building, machinery, vehicle, furniture,… | |
| Exhaustible | Forests, mine, oil wells,… | |
| Intangible Assets | Amortizable | Investment patent, copyright,… |
| Not amortizable | Capital gain, brand |
It is stated that the depreciation of Fixed Assets is an estimated expense, since the value of the same will be determined by the criteria, analysis or experience of the people who within the company, have decision-making power to establish the form and time in which the fixed asset is going to be depreciated.
To calculate depreciation it is necessary to carry out a study regarding:
- Estimated useful life of the asset The estimated salvage or surrender value The most convenient way to depreciate the respective asset (appropriate method).
This analysis of the above factors must be done with great care, because after the method has been chosen and it has started to depreciate in that way, it should not change the method since it goes against a generally accepted accounting principle that is the consistency.
Depreciation accounts are:
ACCUMULATED DEPRECIATION OF BUILDINGS: which corresponds to the calculated amount of loss of value of the buildings owned by the company due to wear, obsolescence or age of the same.
ACCUMULATED DEPRECIATION OF MACHINERY AND EQUIPMENT: it is the amount corresponding to wear and tear and other factors that continuously lose value to the machines and equipment of the company.
ACCUMULATED DEPRECIATION OF FURNITURE AND OFFICE EQUIPMENT: office equipment corresponding to furniture and other instruments for daily use lose value equivalent to their physical condition and as a result of their continuous use.
ACCUMULATED DEPRECIATION COMPUTER EQUIPMENT: computers and computer systems lose value over time, this account is assigned a value corresponding to that calculation.
ACCUMULATED DEPRECIATION OF VEHICLES: the vehicles owned by the company lose value in response to their daily use, the mileage increases and their parts and parts suffer wear and tear, which is why said equipment suffers depreciation.
ACCUMULATED AMORTIZATION IMPROVEMENTS IN LEASED PROPERTIES
Real complementary account of assets (non-current). Distribution of the cost of the improvements made to the premises which will be for the benefit of the owner, this because these premises are not always adapted for any type of business so that generally certain changes are made to adapt the environment to real needs of the company.
ACCUMULATED AMORTIZATION OF FACILITIES
Real complementary account of assets (non-current). Includes the distribution of the cost of expenses to facilities for which the concept of accumulated depreciation applicable to items owned by the company is not applicable, which together with machinery and furniture intervene directly or indirectly in the transformation, distribution or sale of raw materials, semi-finished or processed products resulting from its usual activity.
ACCUMULATED DEPRECIATION LEASED ASSETS UNDER CAPITALIZABLE LEASING CONTRACT (LEASING)
Real complementary account of assets (non-current). Distribution of the accumulated cost for the concept of financial leasing contract, This leasing or leasing contract is driven by the user who needs to acquire a piece of equipment, checks its price and even enters into deals with the manufacturer and once the information is obtained, He goes to the Leasing company so that it acquires ownership of the manufacturer's property and, after that, it is transferred to the user for its use and exploitation.
CONCESSIONS
This account can be defined as the action of granting an ideological position as well as the government granting in favor of individuals or companies, for the exploitation of deposits of any type previously stipulated. These concessions can be:
- WOOD CONCESSIONS: Real account of non-current assets. Amount Corresponds to the granting of permits for timber exploitation. MINING CONCESSIONS: Real account of non-current assets. Total amount Pertaining to the granting of permission by the state to individuals or companies for the exploitation of mining deposits. OIL CONCESSIONS: Real account of non-current assets. Amount corresponding to the Permit granted for the exploration, extraction of oil fields. permits only issued by the state.
EXHAUSTION
It is determined by the exploitation of natural resources, which represent some tangible fixed assets, such as the case of a coal mine, logging forest, oil well, etc. In other words, it is proposed that the cost of the asset should be imputed to the cost of material exploited, as this exploitation is carried out. Of course the determination of the depletion that one of these assets undergoes is an estimate, since it is a matter of predetermining through technical studies the volume that said asset contains, and no matter how accurate these studies are, they will always be an estimate.
To determine the depletion of each year, an exhaustion factor must be calculated, which allows us to know how much the cost of the asset decreases, based on each unit of the resource that is exposed.
Exhaustion Factor = Cost - Salvage Value / Number of existing estimated Units
Accounting procedure
- After what we have determined the exhaustion factor, we multiply this by the units exploited each year to obtain the exhaustion of Fixed Assets and proceed based on this, to make the respective entry, which must be charged to an account called Exhaustion and credited directly to the respective fixed asset account. Then we transfer this depletion account to the inventory of the product that is exploited, along with the other costs and expenses that influence the determination of the total cost of the product obtained. Later when it is sold, the inventory must be decreased and the corresponding part transferred to cost of sale.
- ACCUMULATED EXHAUSTION OF WOOD CONCESSIONS: Complementary real account of assets (non-current). Corresponds to the cost of the asset that must be imputed to the cost of exploited material corresponding to the logging, as this exploitation is carried out ACCUMULATED EXHAUSTION OF MINING CONCESSIONS: Real account of non-current assets. The cost of the asset must be decreased to the cost of material exploited for the exploitation of mining deposits. ACCUMULATED EXHAUSTION OF OIL CONCESSIONS: Real account of non-current assets. As the exploitation progresses, the exploited material of said deposit must be imputed to the amount of the asset, it must be taken into account that these are estimated terms.
CAPITAL GAIN
Real account of non-current assets. Understand by capital gain the highest value paid for a business, for the prestige that its name has acquired in the market. The surplus value exists while the business is running, when the company ends it of course disappears.
COPYRIGHT
Real account of non-current assets. Copyright lasts the author's lifetime and expires forty years after his death, but its useful duration is usually always shorter and it is proposed that this asset should be transferred to expense in a short time, some propose that the number of years be established beforehand to take it to expenses, others that they are transferred to expense based on the number of units to sell and there are other supporters of charging them to expenses of the first edition.
These fixed assets that have a limited life are those that are amortized, and this amortization is made in order to distribute its value over its useful life.
PATENTS
Real account of non-current assets. It is the exclusive right that state agencies grant to exploit a certain activity, for example the invasion of a certain system to take advantage of industrial rights. Any particular product etc.
TRADEMARK
Real account of non-current assets. This lasts for 15 years from its registration, but can be renewed for successive periods of 15 years at the request of the interested party. It does not have a limited life, it is the reason why it is not amortized annually.
FRANCHISES
Real account of non-current assets is an intangible asset, which represents a right granted to a company, or to the government to carry out certain types of business in a certain area.
ACCUMULATED AMORTIZATION
Complementary real asset account. Reflects the distribution of the cost of certain assets for which the concept of accumulated depreciation is not applicable, such as, for example, organizational expenses or a capital gain, which will be amortized in the time estimated to benefit the company.
- ACCUMULATED REPAYMENT OF PLUSVALIA: Complementary real asset account (non-current). Amount corresponding to the amortization in the time of capital gain. COPYRIGHT ACCUMULATED AMORTIZATION: Complementary real asset account (non-current). Corresponds to the amount for the amortization of copyright. PATENT ACCUMULATED AMORTIZATION: Complementary real asset account (non-current). Represents the total for the amortization over time of the patents. ACCUMULATED AMORTIZATION OF FACTORY BRANDS: Complementary real asset account (non-current). The trademarks will be amortized in the time that the company considers convenient, this account being represented by said amount.FRANCHISE ACCUMULATED AMORTIZATION: Complementary real asset account (non-current). Corresponds to amortization franchise concept.
ORGANIZATION EXPENSES
Real asset account (non-current). They are those expenses related to the organization and constitution of the company, which can reach quite high figures.
EXPENSES FOR ADVERTISING CAMPAIGNS
Real asset account (non-current). They are those expenditures made in order to advertise the products for sale, due to the high level of these expenditures and because these campaigns cover several accounting periods, it is considered as a deferred asset.
ACCUMULATED AMORTIZATION ORGANIZATION EXPENSES
Real supplementary asset account (non-current). Includes the amount of amortization over time for organization expenses to be canceled.
ACCUMULATED AMORTIZATION EXPENSES FOR ADVERTISING CAMPAIGNS
Real complementary account of assets (non-current). It includes the amount corresponding to the amortization in time for the advertising campaigns to be canceled.
DEPOSITS GIVEN UNDER GUARANTEE
Real asset account (non-current). Cash deposit made by a natural or legal person in a bank or financial institution in order to ensure or guarantee the fulfillment of a certain obligation acquired with a third party or the performance of any commercial or financial operation. The amount deposited will remain immobilized in the depositing entity until full compliance with the obligation that it guarantees.
ACCOUNTS RECEIVABLE IN LITIGATION
Real asset account (non-current). It corresponds to all those accounts in dispute for collection, in trial or in contention.
SPECIAL FUNDS
Real asset account (non-current). They are special income funds collected specifically for a certain purpose, such as a hospital, library, or park. This funds can be spent. In addition to the accounts with the different funds, a group of accounts must be kept indicating the permanent assets owned and the bond issues that do not represent direct obligations of special funds.
BANKING LOANS AND OVERDRAWS
Real account of liabilities (current). When a person or entity has a current account in a Bank, with a movement of some importance and through the presentation of its balance sheets, the Bank can grant her the facility to overdraw her account, up to a limited amount (previously fixed by the.
EFFECTS PAYABLE
Real account of liabilities (current). It reflects the debts that we have with our suppliers represented by bills of exchange (money orders) which we must pay in the next two, three or four months.
COMMERCIAL ACCOUNTS PAYABLE
Real account of liabilities (current). They are obligations of the company and not rights, that is, debts of the company represented by invoices or debit notes.
ACCUMULATED INTEREST PAYABLE
Real account of liabilities (current). Amount corresponding to the total of the interest accumulated to be canceled for different concepts.
ACCUMULATED PAYROLL
Real account of liabilities (current). This is a real account of current liabilities and represent an accumulated company expense corresponding to the payroll.
ACCUMULATED PROPAGANDA PAYABLE
Real account of liabilities (current). Amount concept of propaganda or dissemination of information with the intention of publicizing some concept, accumulated by canceling.
ACCUMULATED SOCIAL SECURITY ACCUMULATED PAYABLE
Account of the liabilities of the payable group that collects the withholdings made by the merchant to his staff, on wages and salaries for their subsequent entry into the Social Security agencies (National Institute of Social Security, Labor Mutualities, Montepíos, etc..) will also choose the employer's share for said social insurance, the debit will be charged when the corresponding income mentioned above is made, its balance will be creditor and will reflect in the aforementioned organizations.
ACCUMULATED FORCED STOP PAYABLE
Real account of liabilities (current). This insurance covers the contingency of worker unemployment with a salary equivalent to 60% of the SSO contribution salary
ACCUMULATED HOUSING POLICY PAYABLE
Real account of liabilities (current). This account is backed by a law that was created with the purpose of promoting savings aimed at creating funds for the acquisition, expansion, remodeling, home improvements, establishes a contribution from the employer and the other from the worker, which will be withheld by payroll, without limit as to the amount as is the case of the SSO and the SPF, these contributions are 2% of the salary that the employer will contribute and 1% that the worker will contribute. Accumulated amounts to cancel.
ACCUMULATED PAYABLE INCE
Real account of liabilities (current). Amount corresponding to the obligation of companies to cancel the accumulated INCE concept payable.
ACCUMULATED RENTALS PAYABLE
Real account of liabilities (current). It corresponds to all those amounts of rents acquired by the company that have not yet been canceled, for example, equipment, buildings or other rentals. Therefore, these accumulated rents must be canceled.
PROFESSIONAL FEES ACCUMULATED PAYABLE
Real account of liabilities (current). It includes those concepts of personnel fees for work performed or other professional activities, which have not been canceled.
ACCUMULATED ELECTRIC POWER PAYABLE
Real account of current liabilities. Corresponds to the amount owed related to electric power at the end of a period pending cancellation and as a consequence not registered.
ACCUMULATED TELEPHONE SERVICE PAYABLE
Real account of current liabilities. It is the amount corresponding to telephone service expenses in the company at the end of the period.
WITHHOLDINGS
There are certain laws of the Republic that establish the obligations or the authorization that the employer makes withholdings to the workers, of their salary the employer must find out, pay the corresponding organizations, we said at the beginning that there are laws that establish the obligation to retain and this occurs with the income tax law, and others that authorize the portion that corresponds to the worker, this is the case of the Social Security law, since its regulation in article 100 says: “The employer may when making the payment of the insured's salary or wages, withholding the part of the contribution that he must cover ”. The laws that establish contributions that workers must make from their wages and that the employer must extend by payroll are:
- Income Tax Law Mandatory Social Security Law Forced Unemployment Insurance Law Housing Policy Law
RETENTIONS ON PAYROLL
It includes all the concepts derived from social security and employee income tax. Among these retention concepts, the following can be identified:
- Withholdings for finding out ISLR Withholdings for finding out compulsory social security Withholdings for finding out forced unemployment Withholdings for finding out housing policy
RETENTIONS FOR FINDING ISLR
Real account of current liabilities. It is one of the most important items reflected in the liabilities of a balance sheet. It corresponds to the amount due for the Income Tax due at the end of a year.
RETENTIONS FOR FINDING COMPULSORY SOCIAL SECURITY
Real account of current liabilities. It is subject to the provisions of the compulsory social insurance law and its regulations. In this sense, withholdings related to social security are calculated using the following procedure:
The compulsory social security establishes a calendar of the weeks that must be applied to calculate the worker's contribution and which is issued the year prior to its validity.
The following formula is used to calculate the corresponding retention
Retention: SN x NM x% AP x NSEM / 52
Monthly the calculation of the retention is carried out on a ceiling of five minimum wages and a percentage on the worker's salary
WITHHOLDINGS FOR FINDING FORCED STOP
Real account of current liabilities. Corresponds to the amount for canceling the concept of forced unemployment owed by the company. This insurance covers the contingency of the worker's unemployment with a salary equivalent to 60% of the SSO contribution salary. The amount to be paid corresponds to a percentage to be paid as established in the law by both the worker and the employer. Recall that forced unemployment corresponds to the period of inactivity in which a worker incurs after finishing his activities in a company, this period includes a monetary compensation that will help the worker sustain himself until he finds a new work activity to dedicate himself to.
RETENTIONS FOR FINDING HOUSING POLICY
Real account of current liabilities. It is the amount owed by the company as established in the law corresponding to housing policy, an amount that contributes to the acquisition, modification, expansion, improvements and other housing through mechanisms established by the state. The amount is established in the law with a percentage applicable to the salary base.
RETENTIONS FOR FINDING INCE
Real account of current liabilities. Contribution related to the payroll and that is classifiable in the category of other accounts payable, is the one referred to the withholding that is made to the employees established in the law of the National Institute of student cooperation applicable on the profits paid at the end of the fiscal year, which is 0.5%, this payment is often made in December for those companies that have a fiscal year coinciding with the calendar year.
OTHER RETENTIONS
Real account of current liabilities. This account covers the amount corresponding to other withholdings made by the company, such as: savings bank and union contributions, among others. Employers often deduct insurance premiums, savings fees, and union dues that should be recognized as obligations to third parties to the extent that the amounts deducted are still part of the employer's assets.
DIVIDENDS PAYABLE
Real account of current liabilities. They are profits that are paid to shareholders as compensation for their investment. Payment in cash to shareholders as compensation for their investment is known as a cash dividend. Dividends can only be declared by the board of directors, which has the authority to order the payment of a dividend. If directors decide to declare a dividend, you must take steps to have it declared or paid to shareholders on certain dates.
INCOME TAX PAYABLE
Real account of current liabilities. They are obligations established by the tax laws that the company has not canceled and must cancel in a short time. The calculation of income tax is subject to the rules established by the law that governs the matter, the determination of profit for income tax purposes, differs from the applicable calculation methodology for financial effects by the differences established by the law in which the income, costs and expenses are considered made for tax purposes.
OBLIGATIONS PAYABLE
Real account of current liabilities. It is represented by all the expense accounts that at the end of a period are pending payment and as a consequence not registered, some minor expenses. As we have used these services in that year that ends, it can be recorded as an expense, and of course, but not having canceled them, we will credit it to a current liability account. If we do not have direct debt information through the corresponding invoice, we will proceed to estimate it based on the average payment of previous months.
RENTALS CHARGED IN ADVANCE
Real account of non-current liabilities. It is the amount of the rents that, even without being overdue, have been collected in advance. These rents collected in advance represent an obligation of the company for the lessee to continue providing the property.
INTEREST COBRADOS FOR ANTICIPANTIN
Real account of non-current liabilities. Are those interests in favor of the company, collected in the market that occurs and that correspond to the subsequent one. It will appear on the liabilities side
ADVERTISING CHARGED IN ADVANCE
Real account of non-current liabilities. It is made up of the income received on future advertising services that an entity provides to third parties, television companies reflect significant amounts in the items of liabilities for these concepts.
OTHER REVENUE RECEIVED IN ADVANCE
Real account of non-current liabilities. It includes the income received by the company but for which the good has not been delivered, or the service provided by the closing date of the fiscal year.
SOCIAL BENEFITS PAYABLE
Real account of non-current liabilities. This account reflects the company's obligation to workers, with respect to the Organic Labor Law and its Regulations. It is located in the Balance Sheet in the Liabilities or Lake Term.
ADVANCES OF SOCIAL BENEFITS
Real account of non-current liabilities. in the long term, and reflects what is established according to the Organic Labor Law and that corresponds to workers by way of advance on their social benefits.
DEPOSITS RECEIVED UNDER WARRANTY
Real account of non-current liabilities. They are made up of cash received by the company on which the service must be provided or the good delivered in the future. Companies to deliver a good or provide a service request the deposit of a certain amount of money to their customers or subscribers.
UNCLAIMED UTILITIES
Real account of non-current liabilities. They are the profits minus the declared dividends, which have been retained by a corporation, generally the unclaimed profits account has a credit balance, in case the losses exceed the unclaimed profits, said account will have a debit balance.
Profits cannot be distributed for an amount greater than that in the unclaimed profits account, to avoid that unlimited amounts of the corporation's funds are distributed among the shareholders.
COMMON SHARE CAPITAL
Real estate account. They are the ones who give their holders the right to vote in ordinary assemblies, on all the points that articles 271 to 291 of the Venezuelan commercial code mark. The constitution permit allows the corporation to sell its property rights by issuing shares. When it is sold and paid, a share certificate is delivered to the buyer, becoming a co-owner of the company.
PREFERRED SHARE CAPITAL
Real estate account. It is characterized by the limited vote, as well as the preferred dividend that must be paid before the dividend of the share capital. When preferred shares are given priority to be paid in the event of liquidation of the company, they are called shares with liquidation value. Finally, even though the main characteristics of the preferred shares is the limitation of the vote in the meeting, some of these shares and with the intention of making them more attractive, enjoy voting and on some occasions a greater number of votes per share.
UNPAID CAPITAL FEE
Real estate account. This account corresponds to the share capital. It occurs when one or some of the shareholders or partners have not complied with the full payment of the shares of the share capital that must be paid by the company of the company.
SURPLUS
The surplus of a Corporation is the part of the shareholders' equity that is not represented by the share capital.
Surplus Classification:
The Surplus must clearly show its nature and origin, for this reason it is necessary to classify it in accounts that indicate its origin, in this sense the surplus is classified as:
- Earned Surplus Earned Surplus Earned Surplus:
It is the part of the surplus that counts on the profits from the ordinary operations of the company and decreases with the losses caused by this same concept.
SURPLUS PAID
Real estate account. It is a capital surplus that is created by the recording of the benefits obtained in the transactions of the company with its shareholders, whether they are from premiums collected or discounts granted in the sale of their own shares, the breaches of the shareholders with the subscription contract, the results from operations with treasury shares, etc.
DONATED SURVIVAL
Real estate account. It is the surplus of capital that has its origin in donations of shares made by its holders to the issuing company itself or by donations made by shareholders or third parties of assets consisting of money or other assets, to promote the establishment of the company in a certain locality.
REVALUATION SURPLUS
Real estate account. It is a capital surplus that is created by recording the benefits obtained from assets, generally permanent. This fact occurs more frequently in inflationary economies, as a consequence of the general rise in prices.
RESERVED SURVIVAL
Real estate account. It is the part of the surplus earned that is retained to dedicate it to certain purposes, whether they are mandatory or imposed, by legal provisions or by the bylaws themselves, or they are voluntary in nature, thus responding to the convenience of administrative or financial order.
SURplus AVAILABLE
Real estate account. It is the part of the Surplus that is free to be distributed among the shareholders, at the time that the administrators agree, always according to the financial situation of the company.
GOODS ON CONSIGNMENT
When we buy a certain merchandise, even on credit, when the purchase contract was formalized, the merchandise became our property. We do not owe merchandise to the person who sold us the merchandise, we owe their value. When the debt expires, even if we have not sold the aforementioned merchandise, we cannot allege that we will not cancel the debt contracted for not having yet sold the merchandise, since we owe the supplier the value for which we bought it and not the merchandise that it has become our property.
In the case of goods received as consignment, we do not obtain the property right over it, therefore, we are not obliged to cancel them until we have sold them.
In the event that they have not been sold, the supplier may demand that we return the merchandise received on consignment but not that we pay the value of the same.
GOODS GIVEN IN CONSIGNMENT
Order account. Which establishes a set of delivered goods which will remain in the customer's possession until they are consumed, which is when they will be invoiced. Control of these goods on consignment is exercised through regular inventories.
GOODS RECEIVED IN CONSIGNMENT
Order account. It includes all those products received at the plant which will remain at the entire disposal of the company and which is billed only when consumed, this mechanism is called consignment
EFFECTS SENT TO COLLECTION
Order account. It represents the amount of the drafts sent to the bank so that it can collect them when it is drawn; If this does not cancel, the bank will return the money order to the company and will receive a certain amount as collection expenses.
CHECKS SENT TO CASH
Order account. Commercial banks carry out a large number of operations that require adequate control, especially since they manage the money of third parties. When a client shows up to cash a check in dollars from a foreign bank, the figure used is usually that of checks cashed.
DEPOSITS GRANTED
Debtor memorandum account is presented at the end of the balance sheet as information on the amount of the guarantees granted.
PIGNORED GOODS
Order account. Asset item deposited in a trust or mortgaged to guarantee the fulfillment of an obligation or contract. It represents the merchandise that a borrower delivers to her creditor in order to guarantee the obligation.
TRUST FUNDS
Order account. It is a fund created by the company that has the objective of periodically allocating a certain amount of money together with the interest that this produces and is capitalized.
ACCOUNTS RECEIVABLE GIVEN AS DEBT
Order account. It is when it is concluded that some invoices are uncollectible, for example accounts receivable from customers that may become uncollectible.
PROPERTY IN TRUST
Debtor memorandum account is presented at the end of the balance sheet as information the amount of the properties that are in trust. The trust is a provision by which the testator leaves some property or part of the entrusted to the good faith of someone so that, in a specific case and time, he transmits it to another person or invests it in the way indicated. Especially money.
GOODS GIVEN IN CONSIGNMENT PER-AGAIN
Credit Order Account is presented at the end of the balance sheet as information the amount of the merchandise that has been given to third parties on consignment.
GOODS RECEIVED IN PER-CONT CONSIGNMENT
Credit Order Account is presented at the end of the balance sheet as information the amount of the merchandise that we have in the warehouses and in which we have not transferred the ownership of it.
EFFECTS SENT TO PER-CONT COLLECTION
Order account. When the company has sufficient financing capacity, or on the contrary, it does not have a bank credit for money order discounts, it can send them to the Bank, so that you can manage their collection. Once the remittance of the drafts to the Bank has been determined and authorized, it will be related in a form, generally provided by the Bank.
CHECKS SENT TO PER-CONT CASH
Order account. It is included for the purposes of presentation in the Balance Sheet at the bottom of the liabilities and capital, and refers to all those checks that the company gives to the Bank so that it can cash the collection.
BONDS GRANTED PER-AGAINST
Credit Memorandum Account is presented at the end of the balance sheet as information on the amount of the guarantees granted. Bail bonds are Obligations that someone acquires to do something that another person has bound himself in case he does not do it. In general, some good that the contractor gives in security of the good fulfillment of his obligation. Especially when it is money, which passes to the creditor, or is deposited and consigned
PER-CONT BEGINNED GOODS
Credit Order Account is presented at the end of the balance sheet as information on the amount of the pledged merchandise.
PER-CONT TRUST FUNDS
Memorandum account located at the bottom of the liabilities and capital, which is used to reflect relevant information about it.
ACCOUNTS RECEIVABLE GIVEN AS UNCOVERABLE PER-CONT
Memorandum account that is located at the end of the liability and capital, in the Balance Sheet and reflects the information that is relevant about the amount of the accounts receivable that were uncollectible.
PROPERTIES IN TRUST PER-CONTRA
Credit Order Account is presented at the end of the balance sheet as information the amount of the properties that are in trust.
SALES
Nominal income account. It is a mercantile or business transaction, which represents the delivery of an article of commerce, a merchandise item, property or, in exchange for cash, promise of payment or equivalent in money, it is recorded and consigned according to the amount in cash this represents the main income of a company.
DISCOUNTS ON SALES
Nominal income account. There is a tendency to consider discounts for prompt payment on sales as a deduction from gross sales. Discounts for prompt payment are clearly an expense and should not be charged to sales as if they were a decrease in the purchase price of merchandise, so-called commercial discounts are reductions in list or catalog sales prices and generally, not they are noted on the invoice or charged to the customer.
RETURNS ON SALE
Nominal income account. It is relatively frequent that merchandise sales give rise to returns. It is very common for customers to change prices, find that the merchandise does not fit what they want. In the event that this change of goods is not possible or convenient, most merchants reimburse the corresponding amount or decrease the balance in the customer's account.
PURCHASES
Nominal account (cost of sales). In this account we include all the merchandise that we buy during the accounting period in order to resell them. In general, it will include in the purchase account, the acquisition of merchandise that normally enter the company with the intention of selling them and fulfilling the purpose for which it was created. The purchase of land, machinery, buildings, equipment, facilities, etc. will not be included in this account. The Purchases account will always have a debit balance. It does not enter the Balance Sheet of the company. It is closed by Profit and Loss or Cost of Sales, depending on the system we want to use for the book closing.
FREIGHT ON SHOPPING
Nominal account (cost of sales). This account includes all the transports that affect the purchases that will be made, whether these transports appear on the invoices or if they are paid independently.
CUSTOMS CHARGES
Nominal account (cost of sales). In addition to the customs taxes, the imported merchandise will have to bear other series of expenses such as: port duty, inspection, composition of packages, stalls, etc., (usually paid based on the weight or volume of the merchandise), commissions, stamps, consultation fees, etc., (usually paid based on the value of the merchandise).
INSURANCE EXPENSES ON GOODS
Nominal account (cost of sales). When any merchandise is transported, there is a real risk that any inconvenience will cause the total or partial loss of it, in general, insurance is contracted and canceled to cover and protect the merchandise from any potential risk.
PURCHASE COMMISSIONS
Nominal account located in the Statement of Profit and Loss in the cost of sales item, which will increase the cost of the merchandise purchased as a commission expense.
DISCOUNTS ON PURCHASES
Nominal account (cost of sales). In general, when a purchase of a large magnitude is made, either by quantity or amount to be paid, a discount is made on said purchase. This amount is the amount to be charged to this account
PURCHASE RETURNS
Nominal account (cost of sales). When the company returns purchased merchandise for any circumstance, although this operation will decrease the purchase of merchandise, it is not credited to the purchase account. A new account will be opened that we can call: returns on purchases. It will serve to give more information to Management about merchandise purchases, it will have a credit balance or zero and it does not enter the Balance Sheet. It is canceled for cost of sales or Profits and Losses, although some accountants close it for the purchase account so that it reflects net purchases.
STORAGE EXPENSES
Nominal account (cost of sales). Includes all costs incurred by the company for the storage of merchandise and others.
DEPRECIATION EXPENSES FURNITURE AND SALES EQUIPMENT
Nominal account (Operating expenses) Includes the distribution of the expense corresponding to the furniture and equipment of the company's sales area.
DEPRECIATION EXPENSES BUILDINGS (LOCALS FOR SALE)
Nominal account (Operating expenses). Refers to the distribution of the depreciable cost of the asset throughout its useful life.
DEPRECIATION EXPENSES DELIVERY TEAM
Nominal account (Operating expenses) the company uses special equipment for its different deliveries, this equipment depreciates over time, so the company distributes the cost of this equipment throughout its useful life.
DEPRECIATION EXPENSES OF SALES VEHICLES
Nominal account (Operating expenses). For sales vehicles, the company distributes the cost of the depreciable asset throughout its useful life.
LOCAL SALES RENTAL EXPENSES
Nominal account (Operating expenses). Includes all those extra expenses for rent on the sales premises. On certain occasions, the company for different reasons finds itself in the need to rent some premises where it will house sales, whether for geographical reasons, market strategies, etc.
SELLERS 'SALARIES
Nominal account (operational expenses). They are the periodic remunerations (daily, weekly, fortnightly or monthly) that the company pays to its vendors for the services provided. Holidays, utilities, social benefits, compulsory social insurance and other similar expenses should be included.
VIATICAL TO SELLERS
Nominal account (operational expenses). They are all those expenses that the company incurs when moving its employees outside the company, to carry out extraordinary work, thus covering transportation, food, etc. These expenses are generally for vendor travel.
SELLERS COMMISSIONS
Nominal account (operational expenses). These are expenses paid to employees in the sales area for compliance with sales quotas or collections that have been previously established. In addition to sales by quantities and other parameters previously established by the company.
ADVERTISING EXPENSES
Nominal account (operational expenses). They are expenses that are made to boost the sale of products and that are recorded in the corresponding periods based on a pre-established distribution over time.
INDUSTRY AND COMMERCE PATENT EXPENSES
Nominal account (Operating expenses). They are the payments that are made to the municipal councils for the tax established in an ordinance that requires the payment or periodic cancellation of a predetermined amount and calculated according to the ordinance and that allows the company to have an authorization to operate in the jurisdiction of the municipality. where the company carries out activities.
PACKAGING EXPENSES
Nominal account (operational expenses). They are made up of expenditures made on shipments of merchandise to customers and which are assumed by the company.
MAINTENANCE EXPENSES DEAL EQUIPMENT
Nominal account (operational expenses). They are those expenses related to the continuous maintenance that is carried out on the fleet of delivery equipment, such maintenance seeks to keep the equipment operating and in perfect condition in order to minimize delay due to failures of a mechanical, electrical and other nature.
OFFICE STAFF WAGES
Nominal account (operational expenses). It is made up of the periodic remuneration paid by the company to office staff for the services provided to it.
REPRESENTATION EXPENSES
Nominal account (operational expenses). They are made up of payments made to employees due to activities that must be carried out by the company and that are related to their work.
PROFESSIONAL FEES
Nominal account (operational expenses). They represent expenses received for specialized services from professionals from different branches.
DEPRECIATION EXPENSES ADMINISTRATIVE OFFICE BUILDING
Nominal account (Operating expenses). Refers to the distribution of the depreciable cost of the asset throughout its useful life corresponding to the building where the administrative offices are located.
DEPRECIATION EXPENSES FURNITURE AND OFFICE EQUIPMENT
Nominal account (operational expenses). For office furniture and equipment, it is depreciated based on the cost of the used asset.
DEPRECIATION EXPENSES COMPUTER EQUIPMENT
Nominal account (operational expenses). Like office furniture and equipment, computer equipment is depreciated based on the cost realized on said assets.
DEPRECIATION EXPENSES FOR ADMINISTRATIVE VEHICLES
Nominal account (Operating expenses). For management vehicles, the company distributes the cost of the depreciable asset throughout its useful life, as with sales vehicles.
AMORTIZATION EXPENSES IMPROVEMENTS TO LEASED PROPERTIES
Nominal account (Operating expenses). In general, the company makes certain modifications to the leased property as a result of the internal needs of the very nature of its daily activity, this distribution cost is distributed in a time established according to the policies of the company management.
AMORTIZATION EXPENSES FACILITIES
Nominal account (Operating expenses). To the set of elements owned by the company that together with machinery and furniture intervene directly or indirectly in the transformation, distribution or sales of raw materials, the costs applicable to said good are distributed.
DEPRECIATION EXPENSES ASSETS UNDER LEASING CONTRACTS
Nominal account (Operating expenses). Leasing is a financial lease agreement in which a property is acquired or transferred in use to the other contracting party. The company depreciates the costs incurred in these contracts, that is, it distributes said cost according to its policies to do so.
MAGAZINE SUBSCRIPTIONS
Nominal account (Operating expenses). It is understood as the payment agreement that a company makes, for a publication or a series of publications that will be published in the future.
OFFICE MAINTENANCE EXPENSES
Nominal account (Operating expenses). For the full continuous operation of the administrative areas (offices), there is a certain cost corresponding to their maintenance.
INSURANCE EXPENSES
Nominal account (Operating expenses). Includes cancellations related to the concept of insurance to be canceled in order to protect the cost of the company's assets.
EXPENSES OF SUPPLIES OF COMPUTATION
Nominal account (Operating expenses). Computing supplies are understood to be all those items or consumables for the complete operation of this equipment, these expenses are represented in this account.
CORRESPONDING EXPENSES
Nominal account (Operating expenses). The correspondence includes all those costs concept of transfer of documents and parcels to different geographical and internal points. In general, the company makes these shipments with companies specialized in this type of mailings.
NOTARY REGISTRATION FEES
Nominal account (Operating expenses). The company continuously signs new agreements, contracts, assignment of notarized powers, among other documents that require legal formalities, this is done at the notary public corresponding to the location area of the company facilities, where it is legally stated that said documents it is legal and registered giving it the force of law.
COMPULSORY SOCIAL SECURITY EXPENSES
Nominal account (Operating expenses). It is understood as all those expenses resulting from compulsory social security.
INCE EXPENSES
Nominal account (Operating expenses). All those expenses corresponding or inherent to the National Institute for Student Cooperation.
FORCED STOP INSURANCE EXPENSES
Nominal account (Operating expenses). Forced unemployment includes that contingency of unemployment on the part of the worker. Those expenses related to it include forced unemployment insurance.
OFFICE RENTAL EXPENSES
Nominal account (Operating expenses). Office rent represents a favorable point for some companies, these rentals represent an expense for the same periodically according to the initial rental negotiation.
INTEREST INCOME
Nominal account (other income). There are companies that when a client falls behind in the payment of invoices or drafts, they charge default interest or when credits are granted with longer terms than normal, they charge interest on the additional term. That additional income as a result of said fixed interests are represented here.
GAIN ON SALE OF FIXED ASSETS
Nominal account (other income). Account to record the difference between the cost at which the investments were acquired and the price at which they were sold, as long as the latter is higher than the former. This account is classified in the other income section of the profit and loss statement.
GAIN DIFFERENCE IN EXCHANGE
Nominal account (other income). They are produced by the differential changes in the currency with respect to the dollar and other currencies, these represent investments made by the company in the market, which are benefited by the rise in these currencies, because it has operations in them.
INTEREST EXPENSES
Nominal account (other expenses). Just as when the company stipulates interest on different concepts, suppliers and others must be paid interest on similar concepts, delays in canceling invoices, failure to comply with any agreement that entails economic losses, as long as these interests are previously in agreement between the parties.
LOSSES IN SALES OF FIXED ASSETS
Nominal account (other expenses). In this account we record those differences against the sale of an asset at a lower cost than that acquired.
DIFFERENCE LOSSES IN EXCHANGE
Nominal account (other expenses). The fact of handling different currencies means that on some occasions the fact that these foreign currencies weaken with respect to others, and with respect to that of national circulation, when these losses are accounted for as an exchange differential must be recorded in this account.
BANKING EXPENSES AND FEES
Nominal account (other expenses). When maintaining commercial relationships with private or public banks, a series of expenses arise from account maintenance, charges for money management services between accounts, and other services provided by the entity for which a certain amount previously stipulated must be paid.
LOSS FROM BAD ACCOUNTS
Nominal account (other expenses). It is the account that is used at the end of the accounting period to show the estimated amount of accounts receivable that will be uncollectible.
NON-DEDUCTIBLE FINES
Nominal account (other expenses). Expenses for fines to the company that are not deductible from the payment of income tax.
CLAIMS NOT COVERED BY INSURANCE
Nominal account (other expenses). They are expenses for the loss of merchandise, fire, theft, etc. That they are not covered by any policy that insures the business.
INCOME TAX EXPENSES
Nominal account (tax for the year). It is an expense account for tax that is paid to the treasury and is deducted from the profit for the year (if any), for the percentage that corresponds to it and according to the amount of the tax unit existing to date.
CONCLUSION
In conclusion, it is evident that in any company, public or private entity, there are some factors that are very common and necessary for its existence and permanence in the market, such as: Capital, an asset and liabilities, in terms of their continuity and movements in the market, the existence of the various elements that make up assets, liabilities and capital are modified by increases and decreases as the various operations take place in a period, determining what transactions, purchase and sale of goods, which occur in a company, it is very difficult to know for sure how much we have in each asset, how much we owe to third parties and what is the capital of the owner of the owner of the company, if there were no adequate operating instrument,that allows us to know how much we have in each asset and clearly specify how much is owed to third parties, and that allows us to clearly differentiate between one and the other; That is why the need has arisen to sub-divide, assets, liabilities and capital and thus group them according to certain affinity characteristics, these affinity characteristics can be for real and nominal accounts, these being the Two main classification groups in terms of accounting.These affinity characteristics can be for real and nominal accounts, these being the two main classification groups in accounting terms.These affinity characteristics can be for real and nominal accounts, these being the two main classification groups in accounting terms.
This will allow the company or help it to make future projections regarding its economic behavior, thus achieving the necessary precautions to remain in the market as a competitive or leading company.
BIBLIOGRAPHY
- ÁLVAREZ N., Raúl. Intermediate Accounting II. Editorial Tillas. Mexico. 1978. CATACORA, F. (1998). Accounting. The Basis for Management Decisions. Mc Graw Hill. Caracas. Venezuela FINNEY, Harry and Millar, Herbert: Accounting Course, Introduction, Volume I, Editorial Hispanoamericana, Mexico City, 3 Edition, 1978. HERNÁNDEZ, C. (1991). Accounting course. Accounting Technical Center. Aragua State. Venezuela HERNÁNDEZ, J. (1994). Basic accounting. Edited by the Technical Accounting Center. Second edition. Maracay - Estado Aragua.LATOUCHE M. and Maldonado R. General Accounting Study. Editorial Tatun.LÓPEZ, Pedro; Guardo Gerardo; Woltr Phebe; Richard T. Accounting. Editorial Lathe. Caracas. April 1998.REDONDO, A. (1995) Practical Course of General and Superior Accounting. Volume I. Corporación Marca, SAEdited by the Venezuelan Accounting Center. Caracas.BOINTON; Rodríguez; Swanson; Ross; Hason. Practical Accounting of Light. Copireght Publishing House. C 1992.RONDON, Francisco. Accounting I. Central University of Venezuela. ROSENBERG, JM Dictionary of Administration and Finance. Oceano Centrum Editions. La Victoria, June 15, 2005
To conclude, a series of 13 video-lessons through which you can learn more about how the different types of accounts are accounted for:
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