Complete Chart of Accounts in Accounting coding System

Chart of Accounts

Chart of Account (COA) is a coding system which financial transactions are recorded. Chart of Accounts is used for Accounts Reporting and Making Account statements. The Chart of account is the basic of accounts for recording in an accounting system, with separation of accounts like assets, liabilities, banks, expenses, Clients, Suppliers, e.g. We will give the numbers for identify the accounts. A list of these numbers with the specific descriptions of accounts is called a chart of accounts. This chart of Account is Especially Design for Accounting Software.

OWNERS EQUITY

Total Assets of the business are Owners Equity, Like Owners Business, Home, and any other assets that the owner has all owners’ equity.

LONG TERM LIABILITIES

Long term liabilities are those liabilities that are used more than one year.

SHORT TERM LOAN

That is taken for less than five years are called short term loan.

SUPPLIERS / TRADE CREDITORS

Suppliers are that is providing services and goods. We can purchase the goods and services from suppliers or trade creditors for both benefits.

MARK UP PAYABLE

Mark up means the interest that is taken by bank against Our Loan. Markup payable means the interest amount that is payable to bank, With specific Installment.

FIXED ASSETS

Fixed assets are that assets that is fixed e.g. building, Plant and machinery, furniture and fixture, vehicles, that is using for business or personal purpose.

ACCOUNT DEPRECIATION

Account Depreciation means we deduct the amount of percentage for yearly basis as depreciation. E.g. building, Plant and machinery, furniture and fixture, vehicles

LEASED ASSETS

Leased assets are that assets that is taken in leased from banks.

WORK IN PROGRESS

A work in progress mean that work that is on working not completed or uncompleted work are called work in progress.

In working companies there are three types of materials

Raw material

Work in Progress

Finished goods

STOCK IN TRANSIT

The stock that is not receiving yet means which is being transferred to factory.

TRADE DEBTORS / CLIENTS

Clients mean that working companies where we are supplying goods and services for benefit for both parties.