Accounting – Chart of Accounts in Accounting

Chart of Accounts in Accounting

Chart of accounts in Accounting is a list of general ledger (G/L) accounts and each general ledger account is identified by an accounting title with the corresponding accounting number.

The first step in accounting procedure is the preparation of chart of accounts. General ledgers can be created as per systematic order and it helps for computerized accounting system. With the general ledger account number, you can prepare journal entries for financial statements.

An Example of Chart of Accounts

Assets

100	Cash
101	Accounts Receivable
102	Inventory
103	Land
104	Building
105	Machine
106	Prepaid expenses
107	Equipment
108	Office Supplies

Liabilities

150	Accounts payable
151	Salaries
152	Sales tax payable
153	Bills Payable
154	Bank overdraft
155	Outstanding expenses
156	Income received in advance
157	Long term loans

Expenses

200	Delivery expenses
201	Advertisements
202	Depreciation expenses
203	Rent expenses
204	Insurance expenses
205	Store supplies expenses
206	Credit card expenses
207	Interest expenses
208	Miscellaneous expenses

Equity Capital

250	Capital /Share capital
251	Retained Earnings
252	Dividends

Revenue

300	Sales
301	Rent Revenue