Chart of accounts

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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.


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
CategoryAccount codeAccount name
Asset Accounts101Bank (or Cash at Bank)
102Cash
108Deferred Expense
112Accounts Receivable
116Supplies
130Prepaid Services
157Equipment
158Accumulated Depreciation Equipment
199Other Assets
Liabilities200Notes Payable
201Accounts Payable
209Unearned Service Revenue
230Interest Payable
231Deferred Gross Profit
299Other Liabilities
Owner's Equity Accounts300Owner's Capital
330Capital Contributions
350Income Summary

Profit & Loss Accounts

Example of Chart of Profit & Loss Accounts
CategoryAccount codeAccount name
Revenue Accounts400Rental Income
410Sales Income
420Interest Income
499Other Income
Expense Accounts570Office Expense
585Computer Expenses
595Communication Expense
597Labour & Welfare Expenses
610Advertising Expenses
599Printing & Stationery Expenses
631Supplies Expense
711Depreciation Expense
722Insurance Expense
726Salaries and Wages Expense
729Rent Expense
732Utilities Expense
805Interest Expense
999Other Expenses

Related concepts

Related lectures