Chart of accounts
Chart of accounts is any numbering system that an organization uses in order to categorize all the financial transactions while assigning them to different financial accounts. A chart of accounts lists the account titles and account numbers to be used by an organization. The main categories are Assets, Liabilities, Owner's equity, Fiscal Revenue, Expenses including cost of goods sold, as well as temporary accounts such as Income Summary.
Contents
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Chart of accounts. A numbering system of accounts that lists the account titles and account numbers to be used by an organization.
Outline
General outline
General outline of chart of accounts Group To be used in Category Balance Sheet Accounts Balance sheet Asset Accounts Liabilities Owner's Equity Accounts Profit & Loss Accounts Income statement Revenue Accounts Expense Accounts
Equity accounts in various types of organizations
- Ownership models vary, so do owner's equity accounts. Here are some accounts specific to particular organizations:
Type of legal entity Accounts specific to particular types of legal equities Sole proprietorship, legal partnership, limited liability company Capital Contributions, Drawings (Distributions) Corporation Dividend, Capital in Excess of Par, Retained Earnings, Ordinary Share Capital
Examples
The charts below are just examples; no general standard exists in GAAP.
Balance Sheet Accounts
Example of Chart of Balance Sheet Accounts Category Account code Account name Asset Accounts 101 Bank (or Cash at Bank) 102 Cash 108 Deferred Expense 112 Accounts Receivable 116 Supplies 130 Prepaid Services 157 Equipment 158 Accumulated Depreciation Equipment 199 Other Assets Liabilities 200 Notes Payable 201 Accounts Payable 209 Unearned Service Revenue 230 Interest Payable 231 Deferred Gross Profit 299 Other Liabilities Owner's Equity Accounts 300 Owner's Capital 330 Capital Contributions 350 Income Summary
Profit & Loss Accounts
Example of Chart of Profit & Loss Accounts Category Account code Account name Revenue Accounts 400 Rental Income 410 Sales Income 420 Interest Income 499 Other Income Expense Accounts 570 Office Expense 585 Computer Expenses 595 Communication Expense 597 Labour & Welfare Expenses 610 Advertising Expenses 599 Printing & Stationery Expenses 631 Supplies Expense 711 Depreciation Expense 722 Insurance Expense 726 Salaries and Wages Expense 729 Rent Expense 732 Utilities Expense 805 Interest Expense 999 Other Expenses
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
