What is out of a balanced sheet?
The not -made sheet is a way to monitor an asset or debt without being included in the main accounting system. Most companies have two methods of asset management and debt-known as on-A off-premium, and sometimes referred to as on-and off-books. Assets and balance debts are standard transactions that the company owns and is directly responsible, while transactions outside the balance are in circumstances where society does not have direct ownership of money. This term is also a common way to describe illegal accounting procedures. When an asset or debt belongs to a company, a society can do money with liquidation, and spend money, invest in their own society or to delete debts to other institutions. If the money does not belong to the company, it cannot do anything without approval of the owner.
common use
Most companies use the on-book system almost exclusively. Places such as retail stores and restaurants do not have a normal need for mime accountingabout the book; The only places where practice is common are financial institutions and brokerage. These companies often hold money and assets for other parties, and although these assets are in the company system, they do not actually belong to society.
While many banks use the system outside the balance, not necessary for any banking transaction. For example, when a person gives money to a bank, it is part of the contract it has concluded when it opened an account. The money that the bank holds really belongs to a person and can use them as he likes. When a person gets money in the bank, he actually gets his own money that is returned to him, which I mean. As a result, most institutions are carried out with a balance sheet.
The transaction is listed only on the leaf outside the balance if the institution holds money outside the direct contractual advantage. This situation actually comes in only a few cases and most of theminvolves holding money in trust. For example, if an intermediary house holds a small amount of money the investor as a collateral against immersion in the stock market, this money does not actually belong to companies until it requires to cover the loss. Until now, money is on the intermediary accounts, but the company is unable to use it.
Recording illegal transactions
The not a common sheet is also a common method describing transactions that are illegal. These transactions take place from official books for society. Regardless of its origin, all the money that comes or comes out. In the past, this has led to the practice of two accounting books, one official and one not, creating a system on- and off-books.