Instructions for applying the chart of accounts

Plan accounts and the instruction on its application includes correspondence on the basic operations of economic purpose. In other words, not all operations are covered.

In the first part of the chart of accounts and instructions for its use contains information on long-term assets. In the first section, intangible assets, basic and other long-term funds are considered.

The instruction on the use of the chart of accounts indicates that this section summarizes data on availability, movement, and expenditure:

1. The main resources that belong to the company in accordance with the ownership right and received in accordance with the contract on financial leasing.
2. The intangible assets that an enterprise has on the basis of ownership.
3. Investments of a long-term nature in dependent and subsidiary economic companies, securities or corporations with foreign capital and others.
4. Imported and domestic equipment for installation.
5. All types of investment.
6. Parts of long-term calculations, financial lease accounts, deferred expenses, debt (long-term) employees, other debts (receivables).

In the second section, the instruction on the application of the chart of accounts illuminates the accounting procedure for accounting items:

1. The main resources.
2. Wear of these funds.
3. The main resources received in accordance with the contract of financial lease.
4. Long-term investment.
5. Capital investments.
6. Equipment for installation.
7. Amortization of intangible resources.
8. Intangible assets.
9. Deferred expenses and debt (debtor's) long-term nature.

The instruction on the application of the chart of accounts in the second part explains the procedure for recording current assets. Accounts in the section of commodity inventories are intended to summarize data on traffic and availability:

1. Raw materials, purchased semi-finished products,materials, components, packaging, fuel, household equipment, spare parts and other means that are intended for use in the production process or in the performance of services or works.
2. Unfinished production.
3. Products for implementation in the normal course of the organization.
4. Finished goods.

Instructions for applying the chart of accountsprescribes a certain procedure for the formation of accounting for commodity inventories. It should, in particular, pay attention to their condition, structure, quantity, movement, revaluation order and other indicators. The accounting information should contain information on the search for reserves to reduce the cost of goods, the rational use of material, lowering the expenditure rates, as well as ways of proper storage and preservation. This section describes how to maintain accounting articles:

1. Materials.
2. Animals are fattening and growing.
3. Acquisition and preparation of materials.
4. The main production.
5. Semi-finished products produced at the enterprise.
6. Serving farms.
7. Auxiliary production.
8. The goods.
9. General production costs.
10. Finished products.

In the section on accounts receivable is summarizedinformation on accounts from customers and customers, from dependent and subsidiaries, separate divisions, as well as received promissory notes, debts of debtors, founders, personnel.

In the section on cash, short-terminvestments and other current assets of the account are intended to summarize the data on the movement and availability of monetary resources in foreign and national currency that are in banks on accounts, in the cash register, as well as on investments in short-term securities, losses and shortages.