1. 1
Accounting
Skill Session
CHART OF ACCOUNT
BASICS OF ACCOUNTING
Accounting Pillars:
Assets.
Liabilities.
Owners Equity
Revenue
Expense
Classes of Accounts
Assets
Current : Assets that give 100% or more at the time
of recovery of cash for this type of assets.
Non Current : Assets that give less than its actual
investment at the time of recover cash.
Liability
Long Term : A liability having 365 days or more
time to clear this type of liability.
Short Term : A liability having 364 days or less
time to clear this type of liability.
Equity
Capita : Business Investment by an individual.
Partnership : Business Investment by members of
an APO (Partnership firm).
Paid-up-Capital : Business Investment by BoD or
General Public Shareholders for a registered firm.
2. 2
Income
Salary : Monthly remuneration to regular employees
from employers with a pay slip.
Wages : Daily/ Weekly/ Monthly remuneration to
irregular employees with a wage slip.
Profit : Return against investment without decided
any fixed percentage/
Interest : Return against investment with a decided
fixed percentage.
Commission : Remuneration for providing services with
term of task completion.
Fee : Remuneration for providing services
without any commitment.
Expenses
Production : Spending on manufacturing plant or belongs
to production process.
Operating : Spending on Business operation in the field
of Sales, Marketing and Administration.
(Admin. & Selling)
Financial : Spending on arrangement of Finance as loan
or credit.
