Accounting records

ACCOUNTING RECORDS WITHIN THE USSR (RU: бухгалтерский учет) are the continuous quantitative and qualitative representation for the financial-business activity of the enterprise (organization, and institution), for the purpose of monitoring the realization of the plans for the economic and social development, for the rational usage of the labour, material, and monetary resources, and for the preservation of the socialistic property. The accounting records are conducted according to the unified national-economic system for the indicators.

The objects of the accounting records are the natural, labour, and monetary indicators, and their changes through the time. The system of the indicators of the accounting records and reports is formed according to the principle of the complete representation for all the business operations, and is determined by the system of the indicators of the national economy plan, and of the governmental budget, and also of the operational data. All the business operations are represented within the accounting records according to the documents, which are formed in the proper manner, and are verified. The data about the business operations are grouped and summarized according to the prescribed procedure into the accounts for the synthetic and analytical recording, which are sub-divided into active (assets) and passive (liabilities). The active accounts serve for the recording of the availability and movements for each individual type of the business and fixed assets, materials, semi-finished products, finished produce, monetary funds, and so on. On the active accounts, the debit represents the increase of the specified type of the funds, while the credit represents their decrease and balance (remainder), that is the difference between the quantity according to the debit, and the quantity according to the credit, may be only positive or equal to zero. The passive accounts are purposed for the recording of the sources of the own and borrowed funds, namely, of the authorized capital and of the sinking fund, of the funds for the economic incentive, of the payments for the labourers and office personnel, for the suppliers and contractors, of the loans from the bank, and of the financing for the capital construction. Within the passive accounts, the increase of the sources of the funds is represented as the credit, and the decrease is represented as the debit. The balance of the passive accounts may be only of the credit type or equal to zero.

Each business operation is recorded into the accounts by the method of the double entry records, namely, into the debit of one account, and into the credit of another account. Thus, the release of the materials into the production is represented into the debit of the corresponding account for the production, and into the credit of the account for the raw materials and industrial materials. This record shows, from the one side, the increase of the expenditures for the production, and from the other side, the decrease of the reserves of the materials within the warehouse. The yield of the produce is represented by the record into the debit of the account for the finished produce, and into the credit of the corresponding account for the expenditures for the production. This record shows, from the one side, the increase of the quantity of the produce within the warehouse, and from the other side, the decrease of the quantity of the unfinished production. The mutual association of the accounts is determined by the character of the operations, which are being recorded, and is named the correspondence of the accounts. The accounts, which are representing the movement of the funds in terms of the summarized indicators, are named synthetic; for the more detailed recording, there are serving the analytical accounts. The daily recordings of the analytical accounts are used during the operational work of the enterprises; the total records of the synthetic recording serve prevalently for the verification of the records for the analytical recording, and for the compilation of the reports. Within the USSR, there are active the unified standard list for the accounts of the accounting records, and their code designation for the usage within the systems for the automatic control of the enterprise, which have been established by the Ministry for the Finances of the USSR in the agreement with the CSB (Central Statistical Bureau) of the USSR.

Within the accounting records, and within the reports, there are used the natural, labour, and monetary measures together as the combination. There holds the leading place the monetary measure, which is allowing to obtain the summarized indicators about the heterogeneous business funds. The prevailing method for the evaluation of the business funds is their evaluation according to the actual cost of the production. The fixed assets are recorded during the entire time of their activity according to the initial cost, that is, according to the sum of the expenditures for their construction (acquisition), or according to the restoration cost, which is determined during the scheduled revaluation of the fixed assets; the amount of the depreciation of the fixed assets is taken into account separately. All the major works for the recording and compilation of the reports are performed by the accounting bureau of the enterprise, which is headed by the Chief Accountant, who is subordinate immediately to the director of the enterprise (organization, and institution), while according to the issues for the organization of the accounting records, and for the compilation of the reports, for the procedures, and for the methodology for the performance of the monitoring, is subordinate to the chief accountant of the superior organization. The directives from the chief accountant about the procedure for the compilation of the recording documents, and about the schedule for their presentation into the accounting bureau, are obligatory for all the workers within the enterprise (organization, and institution).