Matrix Balance Sheet

(Russian, shakhmatnaia oborotnaia vedomost’), a form used to show bookkeeping entries in a profile of corresponding synthetic accounts and to provide periodic summaries. It lists totals for economic operations of a similar nature. A matrix balance sheet consists of a table in which debits are entered in horizontal rows and credits are entered in vertical columns. All operations pertaining to the given corresponding accounts have their totals (turnovers) entered at the points where the columns and rows intersect. A single entry thus gives two indications of an operation.

Unlike a simple consolidated balance sheet, a matrix balance sheet not only gives totals for the turnovers of each account but also lists the components of the turnovers. This makes it possible to verify the completeness and accuracy of entries in the various accounts, to ascertain the primary economic factors of operations as reflected in the debit and credit side of each account, and to detect errors in the correspondence of accounts. A matrix balance sheet occasionally includes inventories for synthetic accounts in addition to turnovers; in such instances the term shakhmatnyi balans is sometimes used in Russian.

Although a matrix balance sheet is too unwieldy and complex to be used in all forms of accounting, the matrix principle is widely used to create accounting registers. Thus, in the summary-journal form of accounting, all basic registers are constructed in matrix form, thereby substantially reducing the volume of accounting operations.