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. Business organization has the flexibility to tailor its chart of accounts to best suit or needs. Before creating chart of account in accounting software you need to create some important groups in accounting software.
- Consumption of stores- Under Indirect Exp.
- Travelling Expenses- Under Indirect Exp.
- Freight Inward- Under Direct Exp.
- Freight Outward- Under Indirect Exp.
- Repair to Machinery- Under Indirect Exp.
- Repairs to Building- Under Indirect Exp.
- Repair to Others- Under Indirect Exp.
- Repairs Other- Under Indirect Exp.
- Interest Paid to Bank- Under Indirect Exp.
- Interest Paid to Others- Under Indirect Exp.
- Tax Expenses- Under Indirect Exp.
To record the financial transactions of income and Expenditure (Profit and Loss Accounts), some important lists of Accounts are as under:
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