CHART OF ACCOUNTS

By: Abdullah Karim

Chart of Accounts

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

Assets Liabilities Equity Revenue Expense

Chart of Accounts

AssetsAssets are economic sources that are owned by a business and are expected to benefit in future .

Assets are divided into two main categories:

Current Assets Non- current assets or Fixed assets

Chart of AccountsAssets

Current AssetsAll those assets which are expected to be

used up or converted into cash within a year.

Cash on hand Cash at Bank Notes Receivable Accounts Receivable Inventory Office supplies Prepaid Expenses

Chart of AccountsAssets

Non-Current Assets/ Fixed Assets

All those assets which are not expected to be used up or converted into cash with in one year.

Sub-divided into two categories:1.Tangible Assets 2.Intangible Assets

Chart of AccountsAssetsNon-Current AssetsTangible Assets

Tangible AssetsThe physical Assets

Land Building Furniture & Fixture Equipment Machinery

Chart of AccountsAssetsNon-Current Assets Intangible Assets Goodwill Patents trademarks Franchise

Intangible Assets

Patent: Exclusive legal right granted by the federal government for manufacture, use, and sale of a particular products.

Trademarks: Trademark is a name, symbol or design that identify a product or group of products.

Franchise: A franchise is a right granted by a company or a government unit to conduct a certain type of business in a specific geographical area.

Chart of Accounts

LiabilitiesLiabilities are debt of an organization.

Current LiabilitiesAll those liabilities whose payment is due within a year.

Accounts Payable Notes Payable Unearned Salaries payable Interest payable

Chart of AccountsLiabilities

Non-Current Liabilities or Long-term Liabilities

All those liabilities which the entity expect to pay after one year.

Bonds Payable Mortgage payable Long term Notes payable(Bank loans) Warranty payable

Chart of Accounts

EquityEquity represents the owner’s claims to the assets of the business.

Capital Stock Retained Earning

Chart of Accounts

RevenueRevenue is the total amount of money received by the company for goods sold or services provided during a certain time period

Sales Commission Fees Rent Income Interest income Dividend income

Chart of Accounts Expenses An expense in accounting is the money

spent or cost incurred in an entity's efforts to generate revenue. Expenses represent the cost of doing business

Transportation Expense Salaries Expense Rent Expense Interest expense Utilities expense Depreciation Expense Selling expense