Scribd Logo
Upload

Welcome to Scribd!

  • Chart of Accounts

    Uploaded by

    Jennifer
    181 views6 pages
    The chart of accounts is a listing of all the accounts used in a company's financial records to identify sources of income and expenses. It includes asset, liability, equity, revenue, and expense accounts. To create a basic chart of accounts, list the accounts in the first column, assign an account code in the second column, and provide a description of when to use each account in the third column. This includes accounts for cash, accounts receivable, inventory, prepaid expenses, supplies, equipment, land, accounts payable, notes payable, salaries payable, owner's capital, service revenue, salaries expense, and utilities expense. The chart of accounts forms the foundation of a company's financial statements.

    Original Description:

    FABM I

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The chart of accounts is a listing of all the accounts used in a company's financial records to identify sources of income and expenses. It includes asset, liability, equity, revenue, and expense accounts. To create a basic chart of accounts, list the accounts in the first column, assign an account code in the second column, and provide a description of when to use each account in the third column. This includes accounts for cash, accounts receivable, inventory, prepaid expenses, supplies, equipment, land, accounts payable, notes payable, salaries payable, owner's capital, service revenue, salaries expense, and utilities expense. The chart of accounts forms the foundation of a company's financial statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    181 views6 pages

    Chart of Accounts

    Uploaded by

    Jennifer
    The chart of accounts is a listing of all the accounts used in a company's financial records to identify sources of income and expenses. It includes asset, liability, equity, revenue, and expense accounts. To create a basic chart of accounts, list the accounts in the first column, assign an account code in the second column, and provide a description of when to use each account in the third column. This includes accounts for cash, accounts receivable, inventory, prepaid expenses, supplies, equipment, land, accounts payable, notes payable, salaries payable, owner's capital, service revenue, salaries expense, and utilities expense. The chart of accounts forms the foundation of a company's financial statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    CHART OF ACCOUNTS

    • Chart of Accounts

    A chart of accounts is a listing of the


    accounts used by companies in their
    financial records.

    The chart of accounts helps to identify


    where the money is coming from and where
    it is going.

    The chart of accounts is the foundation of


    the financial statements.
    The following are the steps in the preparation of a
    basic chart of accounts:
    Create two columns.

    1. Prepare the assets first, then liabilities, then


    equity, then revenue and expenses.
    2. List all assets, liabilities, equity, revenue and
    expenses account in the first column.
    3. On the second column, choose an account code
    (discretion of the company).
    4. On the third column, write the description for
    each account on when to use it.
    Asset
    Account Account Code Description
    *may vary
    Cash 1000 Use for actual cash transactions
    Accounts Receivable 1200 Use for customers who will pay in the
    future
    Inventory 1300 Use for items held for sale
    Prepaid Expenses 1400 Use for expenses paid in advance

    Supplies 1500 Use for items to be used in the future


    Office Equipment 1600 Use for equipment that are used in the
    office
    Store Equipment 1700 Use for equipment that are used in the
    store
    Land 1800 Use for land used in operations
    Liabilities
    Accounts Payable 2000 Use for the debts of the company
    Notes Payable 2100 Use for promissory notes issued by
    the company
    Salaries Payable
    Liabilities
    Capital 2200 Use for salaries to be paid in the
    future
    Capital
    Owner’s, Capital 3000
    Owner’s, 4000
    Withdrawal
    Service Revenue 5000 Use for earnings
    Salaries Expense 6000 Use for salaries incurred,
    regardless of payment
    Utilities Expense 6100 Use for electricity and water
    expenses incurred
    Accounts Utilities Expense
    payable Building
    Capital Transportation
    Machineries
    Drawings
    Prepaid Rent
    Cash Inventory
    Land Service Revenue
    Equipment Salaries Expense
    Taxes and
    Notes Receivable Licenses
    Supplies Expense
    Notes Payable

    You might also like