Chart of Accounts

Real Accounts
(Statement of Financial Position)
They are not closed at the end
of the accounting period.
Assets
Resources or things of value
owned by an enterprise
Current Assets
It is cash or cash equivalent
which is not restricted for
current use.
Cash
Any item on hand with monetary
value that a bank will accept for
deposit in the name of the business.

Accounts Receivable
Amounts collectible on open
accounts of the customers.
Notes Receivable
Promissory note received by
the business from its debtors
and/ or customers.
Accrued Interest
Receivable
The interest earned on note
receivable but not yet received
in cash.
Inventories
 Assets held for sale in the
normal or different operations
of the business.
Prepaid Supplies
These are various materials which
remains unused at the end of
the accounting period.
Noncurrent Assets
It includes tangible, intangible,
operating, and financial assets
of a long-term nature.
Land
The site owned by the business
on which the business
building is constructed.
Building
The structure owned by the
business used in the operation
of the business.
Furniture & Fixture
Long-lived items used by the
business including store furnishings
and some for office purposes.
Equipment
Consists of what generally might
be called the machinery used
in a business.
Contra-Valuation
Accounts:
Allowance for
Doubtful Accounts
An amount estimated uncollectible
on receivable in compliance with
the principle of conservatism.
Accumulated Depreciation
The aggregate periodic costs of
using a depreciable plant asset.
Liabilities
Present obligations to pay cash
or cash equivalents by an entity.
Current Liabilities
Expected to be settled in the
normal course of the enterprise’s
operating cycle.
Accounts Payable
An obligation or debt to creditors
for money borrowed or merchandise
and other assets bought on credit.
Notes Payable
A promissory note issued by
the business to its creditors for
borrowed assets bought on credit.
Accrued Interest
Payable
The interest incurred in the
current period but not yet
paid.
SSS Premium Payable
Representative of the amount of
employee and employer contribution to
SSS which are not yet remitted to SSS.
Withholding Tax
Payable
The amount of income tax withheld
from the salary of employee in behalf
of BIR that the employer has to remit
to BIR on the specified due date.
Noncurrent Liabilities
 It comprises the portion payable
beyond one year of a long-term
liability.
Owner’s Equity
The residual amount after deducting
liabilities from assets and it comprises
the owner’s capital contribution.
Drawing
Temporary account used to record
initially the amount taken by the
owner from the business.
Nominal Accounts
(Income Statement)
They are closed or put to zero
balance at the end of
accounting period.
Revenues
Earnings of the business from
sales of goods or service
rendered.
Sales
Account used to summarize sale
of goods of a trade or a
merchandising business.
Service Income
Earnings derived from service
rendered by a servicing
business to its customers.
Professional Fees
Earnings derived from services
rendered by a professional
to its clients.
Interest Income
Earnings representing the time value
of money derived from promissory
notes received by the business.
Rent Income
Income earned from allowing
others to use the property or
facility of the business.
Gain on Sale of
Other Assets
Income derived from the sales
Of assets used in the
Business operation.
Expenses
Costs incurred in conducting
the business activities.
Cost of Sales
The value of
merchandising sold.
Supplies Expense
Amount of supplies consumed
or used by the business
during the period.
Salaries and Wages
Amount paid to services
rendered by the employees in
the operation of the business.
Insurance Expense
Amount of insurance policy
incurred during the
current period.
Taxes and Licences
Cost of local and national taxes
that are incurred and required
to be paid in business conducting.
Estimated Expenses:
 Doubtful Account
Expenses
Estimated amount of losses from
uncollectible amounts arising from
credit sales of the current period.
Depreciation Expense
Represents the current
periodic cost for using
depreciable plant assets.