Chart of Accounts

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This is where its all starts, the better the chart of accounts is designed for the business in the beginning the more detailed and relevant the reports will be.


The Chart of accounts lists all the accounts used in an organisation, they are usually organised in 5 major areas that also make up the Accounting Equation


Income, Expenses, Cost of Goods Sold and Other Accounts which lead to the Profit and Loss report.


Asset, Liability and Equity Accounts which lead to the Balance Sheet report.


All of these header accounts may have many sub accounts depending on the need and size of the business. For easy reference all accounts usually have account numbers with the header accounts being large number with sub accounts staring with the same header account number.

Sample Chart of Accounts:

1000 Assets

  • 1100 Current assets
    • 1110 Bank
    • 1120 Cash on hand
    • 1130 Petty cash
    • 1140 Debtors
    • 1150 Stock on hand
  • 1200 Non Current Assets
    • 1210 Furniture and Fittings
    • 1220 Office Equipment
    • 1230 Company Car

2000 Liabilities

  • 2100 Current Liabilities
    • 2110 Bank overdraft
    • 2120 Creditors
    • 2130 GST Payable
    • 2140 PAYE Tax Payable
  • 2200 Non Current Liabilities
    • 2210 Loan Company car
    • 2220 Loan Equipment
    • 2230 Loan Long Term

3000 Equity

  • 3100 Owners Capital
  • 3200 Retained Earnings
  • 3300 Current Profit

4000 Income

  • 4100 Product/Service Sales
  • 4200 Commissions on Product/Services

5000 Cost of Goods Sold

    • 5110 Product purchased
    • 5120 Sales staff wages
    • 5130 Packaging
    • 5130 Freight

6000 Expenses

  • 6100 Fixed Expenses
    • 6110 Rent
    • 6120 Office Staff Wages
    • 6130 Website Hosting
    • 6140 Electricity
  • 6200 Variable Expenses
    • 6210 Advertising
    • 6220 Computer software
    • 6230 Networking

7000 Other

  • 7100 Interest Income
  • 7200 Interest Expense
  • 7300 Loan Interest Expense