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Chart of accounts
Even if customized, list is typically arranged in the order of the customary appearance of accounts in a financial statement.
Example
Simple Chart of Accounts
- Group headings
- Sales
- Cost of Sales
- Manufacturing Expenses
- Administrative Expenses
- Marketing Expenses
- Distribution Expenses
- Establishment Expenses
- Financial Expenses
Within each of these headings will be the individual nominal ledger accounts that make up the chart of accounts. Fstablishment expenses may consist of rent, rates, repairs
- Balance Sheet Accounts
- Asset Accounts
- Cash
- Accounts Receivable
- Prepaid Expenses
- Supplies
- Inventory
- Land
- Buildings
- Vehicles & Equipment
- Accumulated Depreciation
- Other Assets
- Liability Accounts
- Accounts Payable
- Bank Loans
- Taxes
- Stockholders' Equity Accounts
- Common Stock (Share Capital),
- Retained Earnings (Revenue Reserves)
- Profit & Loss accounts
- Revenue Accounts
- Sales Revenue
- Sales Returns & Allowances
- Sales Discounts
- Interest Income
- Expense Accounts
- Advertising Expense
- Bank Fees
- Depreciation Expense
- Payroll Expense
- Payroll Tax Expense
- Rent Expense
- Income Tax Expense
- Telephone Expense
- Utilities Expense
Types of accounts
- Asset accounts: represent the different types of economic resources owned by a business, common examples of Asset accounts are cash, cash in bank, building, inventory, prepaid rent, goodwill, accounts receivable
- Liability accounts: represent the different types of economic obligations by a business, such as accounts payable, bank loan, bonds payable, accrued interest.
- Equity accounts: represent the residual equity of a business (after deducting from Assets all the liabilities) including Retained Earnings and Appropriations.
- Revenue accounts or income: represent the company's gross earnings and common examples include Sales, Service revenue and Interest Income.
- Expense accounts: represent the company's expenditures to enable itself to operate. Common examples are electricity and water, rentals, depreciation, doubtful accounts, interest, insurance.
See Also
External links
