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Liability Accounts

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Liability Accounts 

bookkeeping accounts that reflect the sources of formation of economic capital and the goals for which the capital is intended. Liability accounts are used for keeping track of various funds, loans, and obligations to suppliers and other creditors. They include the settlement accounts of organizations with their own circulating capital (enterprises, production associations, and economic organizations) and the current accounts of kolkhozes and budget, trade union, and public organizations. They also include the capital accounts of Union, republic, and local budgets, as well as deposits by the population.

Other liability accounts are the accounts in which enterprises and organizations accumulate capital for financing and long-term crediting of capital investments; special-purpose asset and fund accounts; indivisible kolkhoz funds; the State Bank’s own funds, operating incomes, and undistributed profits; and accounts that record the entry of banknotes and coins into circulation. The balance in a liability account can only be a credit balance.



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