What is a supporting account?

Also known as an interruption account, the wearer is a special type of account that helps identify and monitor changes in the main value or accounting value of certain types of assets such as real estate. The amount found in these accounts is usually transmitted from one period to another. This is especially true for budget allocations that are associated with certain purposes, such as obtaining materials that are constantly needed. At the end of the period, this scenario will not remain the balance of the support account, but is transferred to the next period and can be used to perform these authorized purchases.

One way to understand the function of the supporting account is to consider the annual budget for the museum. Within this budget, a specific amount is earmarked to allow the museum to buy objects and materials related to exhibits within the facility. If the applied funds are not at the end of the fiscal year depleted funds are charged in the accounting account, allowing you to add this amount to the onTo give the fiscal year allocation and use these means to carry out authorized purchases in the New Year. This is, unlike the budget approach, which would simply return the unused part of the allocation to the general fund and redistribute resources as an operating surplus for the New Year's budget.

One of the advantages of the transfer account is the ability to continue making legitimate purchases, although the total assignment is not exhausted by the end of the budget period. This may be particularly useful if any of the delays of the approval of the new operating budget and the allocation of the New Year's financial means of the line item concerned. Since the funds remaining in the previous year's budget are planned to be equally transferred, they can be used reasonably for a specified purpose during the interim period.

Account for load capacity can be used with a number of applications that include a sequenceEating the transmitted values ​​of different assets. This accounting approach helps with identification and recording of depreciation or amortization associated with certain types of assets. The load capacity account is also useful with bonds in terms of stay in step with due bonds and bond issues, as well as monitoring the accounting value of possession of real estate from one period to another.