Understanding the term ACCOUNT and its various statements - Revision history

Steve at 11:11, 25 February 2018

2018-02-25T11:11:23Z

← Older revision		Revision as of 11:11, 25 February 2018
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			==Understanding the term ACCOUNT and its various statements==

	=== Abbreviations ===		=== Abbreviations ===
	# SOM - Statement of Movements		# SOM - Statement of Movements

Steve: 2 revisions

2008-07-31T21:27:19Z

2 revisions

← Older revision	Revision as of 21:27, 31 July 2008
(No difference)

Ashwin at 09:14, 14 April 2008

2008-04-14T09:14:28Z

← Older revision		Revision as of 09:14, 14 April 2008
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			=== Abbreviations ===
			# SOM - Statement of Movements
			# SOOI - Statement of Outstanding Items
			# OBJ - Opening Balance Journal

	=== What does the term ACCOUNT mean? ===		=== What does the term ACCOUNT mean? ===

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	# A balance that represents the debt between two companies		# A balance that represents the debt between two companies

	There is a real thing called statement of account, of which there are two kinds - Statement of outstanding items and Statement of movements.		There is a real thing called statement of account, of which there are two kinds - '''Statement of outstanding items''' and '''Statement of movements'''.

	Two important aspects:		Two important aspects:
	# Account HAS a statement		# Account HAS a statement
	# Account IS a balance		# Account IS a balance


	=== How many types of ACCOUNTS can be there? ===		=== How many types of ACCOUNTS can be there? ===
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	Two types:		Two types:

	# Open Item Account - which is a balance at a point of time for which you can obtain a ~~Statement of movements~~ or ~~Statement of outstanding items~~. Open Item Account has everything the Balance Forward Account has.		# Open Item Account - which is a balance at a point of time for which you can obtain a SOM or SOOI. Open Item Account has everything the Balance Forward Account has.
	# Balance Forward Account - which is a balance at a point of time for which you can obtain a ~~Statement~~ of ~~movements.~~		# Balance Forward Account - which is a balance at a point of time for which you can obtain a SOM.

			=== What does the SOM contain? ===

			# Opening Balance (may be zero also) at a point of time
			# List of Transactions
			# Closing Balance at a point of time

			=== What does the SOOI contain? ===

			# List of Outstanding Items / Transactions

			=== How does an Opening Balance Journal affect the SOM? ===

			An OBJ will amend / create an opening balance line in the SOM of either Open Item Account or Brought Forward Account

			=== How does an Opening Balance Journal (OBJ) appear in an Open Item Account? ===

			# Statement of movement: An OBJ will amend / create an opening balance line in the SOM of an Open Item Account.
			# Statement of Outstanding Items: An OBJ will show as an outstanding item in the SOOI.

	=== ~~What is there is~~ a ~~Statement of movements~~? ===		=== How does an Opening Balance Journal (OBJ) appear in a Brought Forward Account? ===

	~~updating~~. ~~more to add soon~~		# Statement of movement: An OBJ will amend / create an opening balance line in the SOM of a Brought Forward Account.

Ashwin: New page: === What does the term ACCOUNT mean? === Firstly an ACCOUNT is an idea and not a thing. It is: # An idea - a line on a chart # A balance that represents the debt between two companies T...

2008-04-10T12:01:33Z

New page: === What does the term ACCOUNT mean? === Firstly an ACCOUNT is an idea and not a thing. It is: # An idea - a line on a chart # A balance that represents the debt between two companies T...

New page

=== What does the term ACCOUNT mean? ===

Firstly an ACCOUNT is an idea and not a thing. It is:

# An idea - a line on a chart
# A balance that represents the debt between two companies

There is a real thing called statement of account, of which there are two kinds - Statement of outstanding items and Statement of movements.

Two important aspects:
# Account HAS a statement
# Account IS a balance

=== How many types of ACCOUNTS can be there? ===

Two types:

# Open Item Account - which is a balance at a point of time for which you can obtain a Statement of movements or Statement of outstanding items. Open Item Account has everything the Balance Forward Account has.
# Balance Forward Account - which is a balance at a point of time for which you can obtain a Statement of movements.

=== What is there is a Statement of movements? ===

updating. more to add soon