-This question was submitted by a user and answered by a volunteer of our choice.
Yes. But first, let me familiarize you with the meaning of Chart of Accounts.
Meaning of Chart of Accounts
Chart of Accounts is a numbered listing (account codes) of the various accounts that form part of the accounting records of an entity. The codes used help to group similar accounts together. For e.g., if you want to see only the operating expenses incurred.
In this case, you need to enter only the range code assigned to operating expenses & you will get all the operating expenses transactions together in one place.
Chart of Accounts varies from one entity to another depending on the size of the entity.
Example of Chart of Accounts
In the example given below, 1st digit of the numeric codes signifies different account types. “1” represents assets, “2” represents liabilities, “3” represents equity, “4” represents revenues, & “5” represents expenses.
|Sr No.||Numeric range||Account type||Financial Statements|
|4||4000-4999||Revenues||Profit & Loss A/c|
|5||5000-5999||Expenses||Profit & Loss A/c|
|1000-1499||Non-Current Assets||2000-2499||Non-Current Liabilities|
|1000||Property, Plant & Equipment||2000||Long term debts|
|1010||Buildings||2010||A loan from Financial Institutions|
|1020||Land||2020||Loan from Others|
|1030||Plant & Machinery|
|1040||Furniture & Fixtures||2500-2999||Current Liabilities|
|1050||Computer & Peripherals||2500||Accounts Payables|
|1070||Vehicles||2600||Short term debts|
|2610||A loan from Financial Institutions|
|1100||Intangible Assets||2620||Loan from Others|
|1120||Patent||2700||Other Current Liabilities|
|1200||Long term Investments||3200||Retained Earnings|
|1210||Investment in shares|
|1220||Investment in bonds||4000-4499||Operating Income|
|1230||Investment in govt securities||4100||Sale of Goods|
|4200||Sale of Services|
|1300||Long term Loans & Advances|
|1500-1899||Current Assets||4600||Interest from Investments|
|1500||Accounts Receivables||4700||Dividend from Investments|
|4800||Profit from Sale of Fixed Assets|
|1600||Cash & Cash Equivalent||4900||Profit from Sale of Investments|
|1620||Bank-OD A/c||5000-5499||Operating Expenses|
|1630||Petty Cash||5000||Purchase of Raw Materials|
|5050||Employee Benefit Expenses|
|1730||Raw Materials||5250||Professional Fees|
|1800||Other Current Assets||5350||Electricity Expenses|
|1810||Prepaid Expenses||5400||Repairs & Maintenance|
|1820||Accrued Income||5450||Advertising Expenses|
|1900-1999||Contra Assets||5500-5999||Non-Operating Expenses|
|1910||Accumulated Depreciation||5500||Loss from Sale of Fixed Assets|
|1920||Accumulated Amortization||5600||Loss from Sale of Investments|
A downloadable excel sheet has been attached for your reference.