What a chart of accounts is
A chart of accounts lists every account a business uses, each with its own code. Learn how the codes are grouped.
Task 1A list of every account3 questions
A chart of accounts is the list of every account in the general ledger. Each account has its own code number.
The codes are grouped in ranges, so the first digit tells you what kind of account it is.
| Codes | Kind of account |
|---|---|
| 1000 to 1999 | Assets |
| 2000 to 2999 | Liabilities |
| 3000 to 3999 | Capital |
| 4000 to 4999 | Income |
| 5000 to 5999 | Expenses |
Every business chooses its own ranges. The idea is always the same.
Task 2Finding a code4 questions
Task 3Why codes are used2 questions