Double Entry in Accounting of Small Businesses
AbstractThe article states that a separate category of small businesses (starting from 2011) acquired the right to conduct simplified accounting of income and expenses without application of the plan of accounts and method of double entry. Analysis of literature sources allowed drawing a conclusion that it is impossible to imagine development of accounting without the use of the method of double entry and appearance of various theories regarding the reasons of its appearance. Having analysed methods of Methodical Recommendations No. 720, which allow accounting without the use of the method of double entry, it was proved that each economic operation is reflected in two logs (and in statements - in the event of bigger detailed elaboration), which testifies to application of the method of double entry for reflection of economic operations. Simplified accounting registers differ from the common ones, since they do not contain common accounting concepts - debit and credit, but only main economic concepts: reduction, retirement, receipt and writing-off. Application of the double entry method in the result of accounting economic operations allows tracing changes in assets and liabilities accounts and income and expenses accounts, which allows fast and quality preparation of accounting reports and getting a wider spectrum of information for satisfaction of needs of external and internal users of economic information. Consequently, solution of the task of perfection of methodology of accounting for the subjects of small business through the use of the accounting form, which does not envisage double entry, facilitated development and introduction of a set of new regulatory and legal documents and introduction of changes into existing ones. However, the issue of cancelling the method of double entry in organisation of accounting for small businesses stays unsolved and requires further study.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics in its journal Business Inform.
Volume (Year): (2013)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.business-inform.net
accounting; small business; simplified forms of accounting; double entry; accounting registers; financial reports;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Rystenko).
If references are entirely missing, you can add them using this form.