Account format

Account format
See also

Account format is the framework of each account in the company that is: the number of segments of each account number, its length and the length of each segment. The company may assign specific characters for a selected segment of the account number, for example: the last segment may be a characteristic of a specific department within the company. It is also possible to segregate the account segment to indicate the selected information (Renato Bellu 2008, s.44).

There are default settings that are imposed by Dynamics GP if the company is created using a standard chart of accounts. So that the account format is tolerated the length of the account number must consist of 3 segments with a total of 9 charakters: the first segment has 3 characters, the second - 4 and the third - 2. The selected acoount structure cannot be changed, but it is possible to make small changes to it, for example extend or shorten one or more segments in the account format (Renato Bellu 2008, s.44).

General ledger formats

A balance sheet is a document which informs about the company's assets and financial standing. It is at the same time the basic financial statement. Is a synthetic statement, in terms of value, of all the assets and liabilities of an enterprise in a specific form as at the balance sheet date. There are two main formats that can be used in this statement:

  • T account format - this format shows a table consisting of two basic columns. On the left is the Debit (Dr) side, where you can present your assets and right side is the Credit (Cr) where are liabilities and owner's equity. Above the table there is the name of the account (Edward A. Clarke 2012, s.98).
  • "Columnar format - this format is also known as the narrative format and lists the assets, liabilities and owners' equity vertically clown the page. Total liabilities are deducted from total assets to arrive at net assets which is then balanced, or agreed, with the owners' equity." (Valarie Wilson, Suellen Freeman, John Freeman 2015, s.65)

The balance sheet can be presented in account format or net asset format Account format generally shows assets and liabilities on separate pages each with their own total, while the net asset format shows them on the same page with a total of assets less current liabilities (Dr Peter S. Morrell 2013, s.35).

References

Author: Anita Byś