Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    Heads of Account in Accounting

    Uploaded by

    ammar
    The heads of accounts is a listing of all accounts used in the general ledger of a business. It is organized with asset, liability, equity, revenue and expense accounts. The chart of accounts begins with assets like cash and receivables, then lists liabilities and equity, and ends with revenue and expenses. Many businesses further categorize expenses by department. The exact configuration depends on each business's needs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Heads of Account in Accounting

    Uploaded by

    ammar
    2K views3 pages
    The heads of accounts is a listing of all accounts used in the general ledger of a business. It is organized with asset, liability, equity, revenue and expense accounts. The chart of accounts begins with assets like cash and receivables, then lists liabilities and equity, and ends with revenue and expenses. Many businesses further categorize expenses by department. The exact configuration depends on each business's needs.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The heads of accounts is a listing of all accounts used in the general ledger of a business. It is organized with asset, liability, equity, revenue and expense accounts. The chart of accounts begins with assets like cash and receivables, then lists liabilities and equity, and ends with revenue and expenses. Many businesses further categorize expenses by department. The exact configuration depends on each business's needs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views3 pages

    Heads of Account in Accounting

    Uploaded by

    ammar
    The heads of accounts is a listing of all accounts used in the general ledger of a business. It is organized with asset, liability, equity, revenue and expense accounts. The chart of accounts begins with assets like cash and receivables, then lists liabilities and equity, and ends with revenue and expenses. Many businesses further categorize expenses by department. The exact configuration depends on each business's needs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Q: List down the charts of heads with reasons?

    Heads of Account in Accounting:

     The heads of accounts is a listing of all accounts used in the general ledger
    of a business. The chart is used by the accounting software to aggregate
    information into an entity’ financial statements. The head is usually sorted in
    order by account number, to ease the task of locating specific accounts. The
    accounts are usually numeric, but can also be alphabetic or alphanumeric.
     Accounts are usually listed in order of their appearance in the financial
    statements, starting with the balance sheet and continuing with the income
    statement. Thus, the chart of accounts begins with cash, proceeds through
    liabilities and shareholder’s equity, and then expenses.
     Many organization structure their chart of accounts so that expense
    information is separately compiled by department; thus, the sales department
    engineering department, and accounting department all have the same set of
    expense accounts.The exact configuration of the chart of accounts will be
    based on the needs of the individual business.

    Typical accounts found in the chart of accounts are:

    Assets:

     Cash .(Dr)
     Petty cash .(Dr)
     Marketable Securities.(Dr)
     Accounts Receivable.(Dr)
     Allowance for Doubtful accounts .(Dr)
     Prepaid Expenses.(Dr)
     Inventory.(Dr)
     Fixed assets.(Dr)
     Other Assets.
     Equipment.(Dr)
     Interest Receivable.(Dr)
     Prepaid Insurance.(Dr)
     Prepaid Rent.(Dr)
     Supplies.(Dr)
    Liabilities:
     Accounts Payable.(Cr)
     Accrued Liabilities.(Cr)
     Taxes Payable.(Cr)
     Wages Payable.(Cr)
     Notes Payable.(Cr)
     Bonds Payable.(Cr)
     Dividends Payable.(Cr)
     Interest Payable.(Cr)
     Mortgage Payable(Cr).
     Unearned Service Revenue.(Cr)

    Stockholder’s Equity:

    o Common Stock.(Cr)
    o Preferred Stock.(Cr)
    o Retained Earnings.(Cr)
    o Owner’s Capital.(Cr)
    o Paid-in-capital in excess of par common stock.(Cr)
    o Paid-in- capital in excess of par preferred stock.(Cr)

    Revenue:

     Revenue.(Dr)
     Sales returns and allowances.(Dr)
     Interest Revenue.(Dr)
     Service Revenue.(Dr)
    Expenses:
    Cost of goods sold.(Dr)
    Bank fees.(Dr)
    Advertising expense.(Dr)
    Depreciation expense.(Dr)
    Payroll tax expense.(Dr)
    Rent expense.(Dr)
    Supplies expense.(Dr)
    Utilities expense.(Dr)
    Wages expense.(Dr)
    Other expenses.
    Amortization expense.
    Bad debt expense.
    Freight-out .
    Income Tax expense.
    Insurance expense.
    Interest expense.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy