What is Chart of Accounts?
A listing of all the accounts and their account numbers in the ledger is known as the Chart of Accounts.
The chart is arranged in the financial statement order, that is Assets first, followed by Liabilities, Proprietorship, Income and Expenses.
The accounts should be numbered in a flexible manner to permit indexing and cross-referencing.
A chart of accounts is a listing of the accounts used by companies in their financial records.
The chart of accounts helps to identify where the money is coming from and where it is going.
The chart of accounts is the foundation of the financial statements.
When analyzing transaction, the accountants refers to the chart of accounts to identify the pertinent accounts to be increased or decreased.
If an appropriate account title is not listed in the chart, an additional account may be added.
CHART OF ACCOUNTS
Balance Sheet accounts
*Assets (1)
101 Cash on hand
102 Cash in bank
103 Interest receivable
104 Accounts receivable
104 a Allowance for bad debts
105 Notes receivable
106 Supplies
107 Merchandise Inventory
108 Prepaid Insurance
109 Furniture & Fixture
109 a Accumulated Depreciation - Furniture & Fixture
110 Equipment
110 a Accumulated Depreciation - Equipment
111 Vehicle
111 a Accumulated Depreciation - Vehicle
112 Land
113 Building
113 a Accumulated Depreciation - Building
114 Other assets
*Libalities (2)
201 Notes payable
202 Accounts payable
203 Interest payable
204 Taxes payable
205 Accrued expenses
206 Unearned revenue
207 Utilities payable
208 Bonds payable
209 Loan payable
210 Mortgaged payable
211 Salaries payable
*Proprietorship (3)
301 Owner's Equity
302 Owner's Withdrawal
303 Revenue and Expense Summary
Income Statement Accounts
*Income (4)
401 Sales
401 a Sales Return and Allowances
401 b Sales discount
402 Fees earned
403 Rent Income
404 Advertising Income
405 Commission Income
406 Interest Income
407 Laundry Income
408 Transportation Income
409 Service Income
*Expenses (5)
501 Salary expense
502 Supply expense
503 Rent expense
504 Advertising expense
505 Freight out
506 Bad debts expense
507 Depreciation expense
508 Utilities expense
509 Tax and License expense
510 Miscellaneous expense
511 Repair & Maintenance expense
512 Interest expense
513 Association expense
514 Transportation expense
515 Insurance expense
516 Cost of goods sold (COGS)
517 Other expenses
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ACCOUNTING
RandomMaybe you are here because you're an ABM Student. Grade 11 or 12? This may contained a detailed notes in FUNDAMENTALS OF ACCOUNTANCY BUSINESS MANAGEMENT 1 (FABM1).
