CHART OF ACCOUNTS
Chart of accounts (COA) is the group of accounts that a company has identified for recording transactions in its ledger book. It is commonly identified by a name and a unique number. Companies can customize COA to best suit their needs. They can be organized & categorized by business function (such as manufacturing, finance, marketing, sales etc), company divisions or even product lines.
As per the standard practice, these accounts are often segregated and grouped together using some sort of number coding. For example, if the first digit is “1”, it represents an asset account, “2” a liability account etc.
The following list captures the sample chart of accounts for reference –
Current Assets (Account numbers from 10000 to 13999)
- 10001 – Cash
- 10010 – Petty Cash
- 11001 – Accounts Receivable
- 11110 – Allowance for Doubtful Accounts
- 12001 – Inventory
- 12100 – Supplies
- 13001 – Prepaid Expenses
Property, Plant & Equipment (Account numbers from 14000 – 15999)
- 14001 – Building
- 14100 – Land
- 14200 – Equipment
- 14400 – Vehicles
- 15000 – Accumulated Depreciation
Current Liabilities (Account number from 20000 – 20499)
- 20000 – Deferred Revenue
- 20100 – Interest Payable
- 20200 – Accounts Payable
- 20300 – Salary Payable
- 20400 – Notes Payable
Long-term Liabilities (Account number from 20500 – 21099)
- 20501 – Long term debts
- 20600 – Bonds Payable
- 21001 – Discount on Bonds Payable
Stockholders’ Equity (Account number from 21100 – 21499)
- 21101 – Common Stock
- 21201 – Additional Paid in Capital
- 21301 – Retained Earnings
- 21401 – Treasury Stock
Table of Contents : Accounting Principles
Accounting Principles & guidelines