# Advice 1: How to calculate currency balance

Currency balance determines the total amount of economic obligations of the organization to the counterparties that occur at the end of the reporting period. This figure is present both in the active and passive part of the financial statements. In this regard, to calculate the currency balance must first complete the Balance sheet according to form 1.
Instruction
1
Complete the information in section 1 of the Accounting balance, which is dedicated to non-current assets. It contains information about the balance on intangible assets (line 110), fixed assets (line 120), construction in progress (line 130), profitable investments in tangible assets (line 135), long-term financial collapses (line 140) deferred financial assets (line 145) and other non-current assets (line 150). The calculation is conducted on the debit and credit the relevant accounts at the beginning and end of the reporting period, taking into account depreciation. Bring the total of section 1 and enter the resulting amount in line 190.
2
Fill in section 2 "current assets", which provides information on the balances of inventories of raw materials, production, goods, expenditure, cash, receivables and other data in circulating assets at the beginning and end of the reporting period. Calculate the sum of the balances on lines 210-270 and enter the resulting value in the line 290.
3
Calculate the currency balance of the enterprise data assets and make it value in row 300 of financial statements. It is necessary to sum the values of line 190 and line 290.
4
Check the correctness of the calculations by filling in the passive part of the balance. Complete section 3 "Capital and reserves", section 4 "Early commitments", section 5 "current liabilities". Line corresponding results in sections and add the sum of lines 490, 590 and 690.
5
Sum these values and fill in the line 700, which must match the amount indicated in line 300. Otherwise, check submitted data in the reporting and correct the errors. Equal amounts will attest to the fact that the currency balance is done correctly.

# Advice 2 : What is active and passive

In the preparation of the balance sheet all business records are usually attributed to either an asset, or liability. If the amounts in the totals row are the same, so errors in calculations and not on the basis of the resulting data to prepare accounting documents.
"What is the fundamental difference of an asset from a liability?" - a question that leaves alone the future economists, as well as those who plan to understand all the nuances of accounting and financial accounting. As a sign of equality between the two graphs balance confusing. Really, why so?

The balance structure includes several partitions: 2 of them are written in the left part, the other to the right. In the column "active" reflects the working capital (cash, inventories, receivables, short-term investments) and non-current (fixed assets, intangible assets, long-term investment, construction in progress) the funds of the organization. Here is recorded the property, which is at the disposal of the enterprise. To determine its belonging to the assets you can on a number of grounds:
- there is a possibility of disposal of assets;
- the property promises a gain in a future period;
- the organization has the right to use material values.

The liabilities include funds of formation of property:
- capital and reserves;
- borrowed capital.
Equity belongs to the company and affects the formation of certain assets. And the funds raised by the organization to conduct the activities, depending on the duration of use equal to the short-term and long-term obligations. They constitute borrowed capital and must be returned in accordance with the contract.

Thus, the amount of assets of the enterprise is always equal to the sources of its formation. After all, if the organization received a Bank loan, the funds are directed to the acquisition of wealth. As a result, the asset (the cost of the acquired property) is equal to the liabilities (the sum of Bank credit). For not foreseen by the balance of values applies off-balance sheet accounting.

# Advice 3 : How to calculate currency balance

Currency balance determines the total amount of economic obligations of the organization to the counterparties that occur at the end of the reporting period. This figure is present both in the active and passive part of the financial statements. In this regard, to calculate the currency balance must first complete the Balance sheet according to form 1.
Instruction
1
Complete the information in section 1 of the Accounting balance, which is dedicated to non-current assets. It contains information about the balance on intangible assets (line 110), fixed assets (line 120), construction in progress (line 130), profitable investments in tangible assets (line 135), long-term financial collapses (line 140) deferred financial assets (line 145) and other non-current assets (line 150). The calculation is conducted on the debit and credit the relevant accounts at the beginning and end of the reporting period, taking into account depreciation. Bring the total of section 1 and enter the resulting amount in line 190.
2
Fill in section 2 "current assets", which provides information on the balances of inventories of raw materials, production, goods, expenditure, cash, receivables and other data in circulating assets at the beginning and end of the reporting period. Calculate the sum of the balances on lines 210-270 and enter the resulting value in the line 290.
3
Calculate the currency balance of the enterprise data assets and make it value in row 300 of financial statements. It is necessary to sum the values of line 190 and line 290.
4
Check the correctness of the calculations by filling in the passive part of the balance. Complete section 3 "Capital and reserves", section 4 "Early commitments", section 5 "current liabilities". Line corresponding results in sections and add the sum of lines 490, 590 and 690.
5
Sum these values and fill in the line 700, which must match the amount indicated in line 300. Otherwise, check submitted data in the reporting and correct the errors. Equal amounts will attest to the fact that the currency balance is done correctly.

# Advice 4 : What is asset and liability in accounting

People engaged in accounting, know all their activities are built on working with the assets and liabilities. What are these two components?

The assets and liabilities in bookkeeping is the first and the second part of the balance sheet. The set of results collected in a single list in a table with two sides is called the balance sheet.

This table shows the number of economic resources and education in key cash rate for a specified period. For all active accounts accounting visible available funds, and the balance on the active account shows how the funds are distributed, that is, where they are directed.

The passive accounts are visible sources of formation of economic resources. The remains of the passive accounts show how there are funds available. Definitely need to remember that in accounting, the assets and liabilities is the same money, just split into different groups. Hence, the amount of assets will always equal total liabilities. The entire amount of assets (or liabilities) is the "currency balance", but to the currency of other countries this term is irrelevant and only serves to determine the volume of economic activities of a firm. At any time, looking at the balance of the organization, you can obtain information about its cash position. It also shows the estates of the organization on the date of balance sheet. The balance sheet has two parts. In the first part of the property is presented broken down by cells of education is the liabilities, and in the second part the property is presented in appearance, placement and number of items are assets.

Some people think that accounting is very complex and incomprehensible. To some extent this is true, because a large proportion of the accounting profession lies in the study of complex instructions on specifically which accounts and in what sequence to do accounting any work.

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