The Use of Active-Passive Accounts in the Accounting of Transactions Involving Counterclaims

Leonid Suk and Petro Suk
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Leonid Suk: Open International University of Human Development "Ukraine", Kyiv, Ukraine
Petro Suk: Separate Division of the National University of Life and Environmental Sciences of Ukraine "Nizhyn Agrotechnical Institute", Nizhyn, Ukraine

Oblik i finansi, 2023, issue 3, 28-37

Abstract: The chart of accounts provides for maintaining active, passive and off-balance sheet accounts. Analysis of practical situations shows that some passive accounts are not purely passive, and some active ones are purely active. Such accounts are active-passive. The article aims to justify the need for a wider use of active-passive accounts by individuals and legal entities when repaying debts by crediting counterclaims. The content, structure and procedure for using active-passive accounts for accounting settlements with legal entities and individuals were disclosed in the work. On active-passive accounts, settlements are kept with such legal entities and individuals whose nature of debt is constantly changing: debtors turn into creditors and vice versa. It was substantiated that using active-passive accounts for enterprises that carry out mutual settlements and have counter-obligations is advisable. In addition, mutual obligations arising between enterprises can be settled by offsetting counterclaims. This form of settlement allows the repayment of mutual obligations without counter-payments between enterprises. Enrollment of opposing uniform claims is carried out to terminate mutual obligations from receivables and payables that arise between business entities when they conduct opposing transactions. Crediting of counterclaims can be carried out upon the application of one of the parties to terminate obligations or upon the conclusion of an agreement on the crediting of counterclaims and an act of reconciliation of the offset of mutual debt. The debtor transfers the difference that arises after crediting counter-obligations to the creditor. The expediency of the widespread use of crediting counterclaims during settlements with suppliers and buyers has been proven. Examples of the accounting of transactions for crediting mutual claims were given.

Keywords: accounting; debtors; creditors; settlements; counterclaims; active-passive accounts (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2023:i:3:p:28-37

DOI: 10.33146/2307-9878-2023-3(101)-28-37

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