2. 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
3. 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
4. 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
5. 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
6. Tangible Assets
The physical Assets
Land
Building
Furniture & Fixture
Equipment
Machinery
8. 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.
9. 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
10. 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
11. Chart of Accounts
Equity
Equity represents the owner’s claims to the assets of the
business.
Capital Stock
Retained Earning
12. 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
13. 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