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Overview
of Accounts
Quick&Easy
Heritance tracks the financial transactions of a
trust or estate by organizing the transactions into accounts.
Accounts are groups of transactions that share a related purpose or
affect a particular asset or liability. Heritance has two types of
accounts:
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Asset
and Liability (A&L) Accounts represent the assets and
liabilities of the trust or estate. These accounts represent
actual entities that have real values. Examples: A home, share
of commonly traded stock, a mortgage.
-
Book
Accounts are categories used to track and categorize
transactions but do not represent actual assets or liabilities.
Examples: interest income, utility expenses, insurance payments.
In
many transactions, asset and liability accounts and book accounts
work together to track and organize a transaction. Example: Cash
received as interest income would be recorded in both the A&L
account "Cash" and the book account "Interest
Income."
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