What is an asset backup account?

The asset backup account refers toAccountUsed to offset the balance of an asset account. To obtain the actual balance of the asset account.

Asset backup account: the adjusted account belongs to the asset class. For example"Accumulated Depreciation"And"Fixed assets"

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Structure of the asset backup account[1]

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Account handling for asset backup account

According " Fixed assets " Fixed assets can be obtained through account (adjusted account) records Original cost From " Accumulated Depreciation " Account can be obtained Fixed Asset Loss Value " Fixed assets " Debit balance of the account minus " Accumulated Depreciation " Account Credit Balance The difference is fixed assets. Book value (Net worth ). Pass " Fixed assets " Account and " Accumulated Depreciation " Account Balance Comparative Analysis To learn about the new and old fixed assets. The relationship between the two accounts and their Offset methods are shown in the following table. [2]

"Fixed assets","Accumulated Depreciation"Relationship Between the two accounts and the deduction method

In addition, "Bad Debt Preparation" Account is "Accounts receivable" Account Backup account It is also an asset backup account. "Accounts receivable" Account Debit balance Minus "Bad Debt Preparation" The credit balance of the account, and the left amount indicates the net amount of the Account Receivable. "Inventory Depreciation Preparation Account " Yes "Raw Materials" , "Inventory items" , "Low-value consumable products" Wait for the backup account of the inventory account, "Reserve for impairment of Fixed Assets Account " Yes "Fixed assets" Backup account, "Reserve for short-term investment depreciation Account " Yes "Short-term investment" Backup account of the account, "Long-term investment impairment provision" Account is "Long-term Equity Investment" Account and "Long-term debt investment" The backup account of the account. "Intangible Asset Impairment preparation" Account is "Intangible Assets" Backup account of the account, "Preparation for impairment of construction in progress" Account is "Construction in progress" The backup account of the account. [1]

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Asset backup account features[1]

From the above descriptions, we can see that the asset backup account has the following features:

1The adjusted account is an asset-type account, and its balance is on the debit, while the balance of the asset backup account must be on the credit.

2The structure of the asset backup account is the opposite to that of the adjusted account, which is represented by the structure of the equity account.

3The subject indicators provided by the adjusted account are opposite to those provided by the standby account. That is, the adjustment and deduction means that the subject indicators should be reduced.