How to determine the final balance on active accounts

All accounts of accounting are divided into active and passive. Active accounts are intended to reflect the assets of the enterprise, passive - for the sources of its formation. Each account includes the name and number, the debit side and the credit side. For example, a score of 10 "Materials", 50 "Cashier", etc.
Start recording on active accounts with the formation of the initial balance (opening balance) of the property. It is reflected in the debit of the account. Then the accounts should reflect all business transactions, which reflect the change in initial balances. The amounts that increase the opening balance are recorded on the balance side, and the amount reducing the initial balance on the opposite side.
Please note that in active accounts an increase in property will be reflected in the debit of the account, and a decrease in the credit.When adding up all operations recorded by debit and credit of the account, we will get turnovers on the account. The total amount that will be reflected in the debit of the account is the debit turnover, the credit is for the credit. When calculating the speed of the initial balance is not taken into account.
When the debit and credit turnover will be calculated, proceed to the formation of the final balance (balance) on the accounts. For active accounts, the final balance is determined as follows:
Ko = But + DO - KO, where
Co - final balance (final balance) on the active account,
But - the initial balance (opening balance) of the active account,
BEFORE - debit turnover
KO - credit turnover.

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