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

 Assets
Assets 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 Accounts
Assets
 Current Assets
All 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 Accounts
Assets

 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
 Tangible Assets
The physical Assets
 Land
 Building
 Furniture & Fixture
 Equipment
 Machinery
Chart of Accounts
Assets
Non-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

 Liabilities
Liabilities are debt of an organization.
 Current Liabilities
All those liabilities whose payment is due within
a year.
 Accounts Payable
 Notes Payable
 Unearned
 Salaries payable
 Interest payable
Chart of Accounts
Liabilities

 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

 Equity
Equity represents the owner’s claims to the assets of the
business.

 Capital Stock
 Retained Earning
Chart of Accounts

 Revenue
Revenue 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