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Chart Of Accounts
- In this all the accounts which are provided by the software will be available over here.
- If the company wants to add any new account in any of the head they can add from the ADD ACCOUNT over there the company needs to fill the data and use it as and when necessary.
- If the account has any sub- accounts it cannot be deleted.
- The company can remove only those which the company has added and that accounts shouldn't have done any transaction.
Types of Accounts
- Income : It includes all the incomes which the company is incurring. If the company wants to add any new account in the Income head then they can add also. Generally, the income is divided into two sections i.e. Income and other income In Income head generally all the income account which are directly related to the business activities While in Other income all the incomes which are not directly related to the business activities are included over here.
- Expenses : It includes all the expense which the company is expensing. If the company wants to add any new account in the Expense head then they can add also. Generally, the Expense is divided into three sections i.e. Expense, Cost of Goods Sold and other expenses. In expense head generally all the expense account which are directly related to the business activities is included over here While in Other expense all the expense which are not directly related to the business activities are included over here. In Cost of Goods sold account all the expense which are incurred while selling of goods, manufacturing of goods and purchasing of goods will be included over here. In short, all the expense which incurred due to selling of goods will be incurred over here.
- Assets : It includes all the asset i.e. all the products (tangible or intangible) will be included which helps to produce the value. The Main heads of the asset are Fixed assets, Other current asset and account receivable. In Fixed asset, all the asset which are for long term and the company uses it to generate income. In Current asset, all the asset which are sold or used in the day-to-day operations foe the year. It includes cash, stock, market securities etc. In account receivables means the debtors or the customer to whom the sales is done. In assets there are many other accounts which include investment, deposit, etc. which generally not included in any of the heads.
- Liability : Liability is something usually a person or the company owes. It includes all the payments or the money company owe to someone else. In liability generally there are 3 heads i.e. Other current liability, Accounts Payable and Loans. In Other current asset, all current liability which is for short term will be shown together in the liability side of the balance sheet. In Accounts Payable, is also known as the creditors or the vendors from whom the company purchase the product will be given the payment for the same. In loans, it includes all the kind of loan the company has whether it is secured loans or unsecured loans.