Main Asset Accounts

In accounting there are various ways or accounts to maintain the assets of individuals or companies these are the main asset accounts. The diversity among these allows different activities to be carried out, in some cases using institutions and administrators. Now the Cash account increases when cash is received and decreases when it is paid in cash.

What are the asset accounts?

• Box
• Banks
• Goods
• Customers
• Documents receivable
• Various debtors
• Land
• Buildings
• Furniture and equipment
• Delivery or delivery team
• Machinery
• Deposits in guarantee
• Installation costs
• Stationery and supplies
• Propaganda or advertising
• Insurance premiums
• Rents paid in advance
• Interest paid in advance

• Follow with Liability accounts

Main asset accounts:

1. Box

By Cash we understand cash, that is, bank notes, coins, checks received, bank, postal, or telegraphic money orders, etc. Now the Cash account increases when cash is received and decreases when it is paid in cash.

Cash is an asset account; because it represents the cash owned by the merchant.

2. Banks

By banks we understand the value of the deposits in favor of the business, made in banking institutions.
The bank account increases when money or securities are deposited for collection; decreases when checks are issued against the bank.
Banks is an asset account, because it represents the money owned by the merchant, deposited in banking institutions.

3. Goods

By Merchandise we understand everything that is the object of purchase or sale.
The Merchandise account increases when merchandise is purchased or returned to us; decreases when merchandise is sold or returned. Merchandise is an asset account, because it represents the value of the merchandise that is owned by the merchant, although it is only at the beginning and end of the year.

4. Customers

They are the people who owe the business goods acquired on credit, and who are not required to 17 a special documentary guarantee.
The Clients account increases each time merchandise is sold on credit; decreases when the customer fully or partially pays the account, returns the merchandise or is granted a discount.
Clients is an asset account, because it represents the value of sales made on credit, which the merchant has the right to collect.

5. Documents receivable

We understand by Documents receivable to credit instruments in favor of the business, such as bills of exchange, promissory notes, etc.
The Accounts Receivable account increases when bills of exchange or promissory notes are received in favor of the business; it decreases each time one of these documents is charged or endorsed or when they are canceled.
Documents receivable is the Asset's account; because it represents the amount of bills and promissory notes that the merchant has the right to collect.

6. Various debtors

They are the people who owe the business for a concept other than the sale of merchandise.
The Sundry Debtors account increases each time we are owed for a different concept of sale of merchandise; for example, by lending cash; when selling on credit any value that is not merchandise, etc. it decreases when said persons make payments on account or in liquidation or return the values ​​that were in their charge.
Sundry debtors is Asset account; because it represents the amount of debts other than sales of goods on credit that the merchant has the right to collect.
The previous accounts are those that, in general, have constant movement in any commercial business.

7. Land

They are the properties that belong to the merchant.
Land is an asset account; because it represents the cost price of the land owned by the merchant.

8. Buildings

The Buildings account is made up of the houses owned by the merchant. Buildings is an Asset account; because it represents the cost price of the buildings owned by the merchant.

9. Furniture and equipment

Furniture and equipment are desks, chairs, tables, bookcases, counters, scales, display cabinets, office machines, etc.
Furniture and equipment is an Asset account; because it represents the cost price of the furniture and equipment owned by the merchant.

10. Delivery or delivery team

By Delivery or Delivery Equipment we mean all transport vehicles such as trucks, vans, motorcycles, bicycles, etc., that are used in the delivery of goods.
Delivery or delivery team is Asset account; because it represents the cost price of the delivery or delivery equipment that is owned by the merchant.

11. Machinery

It represents the set of machines that industries use to carry out their production.
Machinery is an asset account; because it represents the cost of the machinery that is owned by the industrialist.
The accounts of Land, Buildings, Office Equipment, Delivery Equipment and Machinery have a very similar movement: they increase each time one of these goods is purchased; and they decrease when they are sold or written off as unusable.

12. Deposits in guarantee

The Guarantee Deposits account is made up of the contracts through which the the amounts that are left in custody to guarantee values ​​or services that the business will to enjoy; for example, the deposit required by the Electricity Company to provide electricity; the deposit that is left as security for the lease of a building, etc.
The Escrow Deposits account increases each time money or securities are left in custody; decreases as the amount of said deposits is returned to us due to the end of the contract term or due to its cancellation.
Security deposits is the asset's account; because it represents the amount of the quantities left in custody that the merchant has the right to require them to be returned by the depositary at the end of the contract term or upon cancellation of the same.

13. Installation costs

They are all the expenses that are made to condition the premises to the needs of the business, as well as to give it a certain comfort and presentation.
The Installation Expenses account increases for each one of the expenses made to condition the premises; It decreases by the proportional part that of said expenses is amortized by use or by the passage of time.
Installation expenses is the asset's account; because it represents the cost of the facilities that are owned by the merchant. Naturally, the decrease in the value that the facilities suffer due to use or due to the passage of time is what should be considered an expense.

14. Stationery and supplies

The Stationery and Supplies account is made up of the materials and supplies used in the company, the main ones being letter or legal size paper, carbon paper, envelopes, remittance blocks, bill or receipt stubs, books, records, cards, pencils, erasers, inks, blotters, etc.
This account increases each time stationery and stationery items are purchased; decreases by the value of the materials that are used.
Stationery and supplies is an Asset account; because it represents the cost price of stationery and supplies owned by the merchant. Naturally, the part that is being used 6 by consuming is the one that should be considered an expense.

15. Propaganda or advertising

By propaganda or advertising we understand the means by which a certain activity, service or product that the business provides, produces or sells is made known to the public. The best known means are brochures, leaflets, flyers, advertisements in newspapers, in magazines, on radio stations, and other outreach vehicles.
The bill for propaganda or advertising increases each time you pay for the printing of brochures, leaflets, flyers, for advertising in newspapers, magazines, radio stations, etc.; decreases by the part of advertising or propaganda that is used.
Advertising or advertising is the asset's account; because it represents the cost price of the advertisement or advertising that is owned by the merchant. Naturally, the part that is distributed or the part of the service that has been received is what should be considered an expense.

16. Insurance premiums

By insurance premiums we understand the payments made by the company to insurance companies, for which You acquire the right to insure your business assets against fire, risks and accidents, theft, etc.
This account increases each time insurance companies are paid premiums on insurance contracts; It decreases by the proportional part of the premiums paid that the service has enjoyed.
Insurance premiums is an asset account; because it represents the amount of insurance premiums that the merchant has paid, for which he has the right to demand from the insurance companies, in the event of an accident, the payment corresponding to the damages caused. Naturally, the part of these premiums that the service has enjoyed during the elapsed time is what should be considered an expense.

17. Rents paid in advance

We understand by rents paid in advance the amount of one or more monthly, semi-annual or annual rents; corresponding to the premises that the business occupies, which, although not due, were paid in advance. These advance payments are made as stipulated in the lease or because it is in the interests of the merchant.
The Rents paid in advance account increases each time the merchant pays in advance the amount of one or more monthly, semi-annual or annual rents; decreases by the proportional part of the service that has been enjoyed over time.
Rent paid in advance is an asset account; because it represents the value of various rents that the company has paid, for which it has the right to occupy the premises during the time it has paid in advance. Naturally, the part of said income that is decreasing is what should be considered an expense.

18. Interest paid in advance

We understand by interest paid in advance the interest that is paid before the due date of the credit. This case occurs in those loans in which the interest is deducted from the amount originally received; For example, the amount of $ 200,000.00 is received as a loan, from which $ 75,000.00 is deducted, for interest corresponding to two years, which is the term of the loan; As can be seen, said interests are equivalent to an advance payment.
The Interest paid in advance account increases each time interest is paid in advance; It decreases by the proportional part of said interest that has been converted into an expense.
Interest paid in advance is an asset account; because it represents the amount of interest that the merchant has paid in advance, for which he has the right to pay the loan until the end of the term that includes the interest. Naturally, the part of said interest that is decreasing is what should be considered an expense.
Up to this moment, the movement of the main Asset accounts of a commercial business has been specified; The main accounts of the Liabilities are specified below.

Follow on:

• Liability accounts