Charts of Accounts for Profit and Loss Account
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:
| Group | Sub -Group | Ledger |
|---|---|---|
| Direct Income | Sales | Sale of Goods |
| Direct Income | Sales | Sales of Services |
| Direct Exp | Consumption of stores | Consumption of stores@18% |
| Direct Exp | Consumption of stores | Consumption of stores@5% |
| Direct Exp | Consumption of stores | Consumption of stores@NT |
| Direct Exp | Freight Inward | Freight Inward@5% |
| Direct Exp | Freight Inward | Freight Inward@NT |
| Direct Exp | Freight Inward | Freight Inward RCM |
| Direct Exp | Power and fuel | |
| Direct Exp | Purchase | |
| Direct Exp | Salary Factory | |
| Direct Exp | Wages | |
| Income Indirect | Commission Received | |
| Income Indirect | Interest income | |
| Income Indirect | Other Income | |
| Indirect Exp | Accounting Charges | |
| Indirect Exp | Advertisement Expenses | |
| Indirect Exp | Audit fee | |
| Indirect Exp | Commission Expenses | |
| Indirect Exp | Conveyance expenses | |
| Indirect Exp | Tax Expenses | Current Tax |
| Indirect Exp | Tax Expenses | Deferred Tax |
| Indirect Exp | Traveling Expenses | Traveling expenses (Domestic) |
| Indirect Exp | Donation | |
| Indirect Exp | Festival celebration expenses | |
| Indirect Exp | Freight Outward | Freight Outward@5% |
| Indirect Exp | Freight Outward | Freight Outward@NT |
| Indirect Exp | Freight Outward | Freight Outward RCM |
| Indirect Exp | Insurance | |
| Indirect Exp | Bank Interest Paid | Interest on Car Loan |
| Indirect Exp | Bank Interest Paid | Interest on CC |
| Indirect Exp | Bank Interest Paid | Interest on TL |
| Indirect Exp | License and Legal Expenses | |
| Indirect Exp | Office Expenses | |
| Indirect Exp | Office Rent | |
| Indirect Exp | Postage and Courier | |
| Indirect Exp | Printing and Stationery @5% | |
| Indirect Exp | Printing and Stationery @NT | |
| Indirect Exp | Professional Fee | |
| Indirect Exp | Rates and taxes | |
| Indirect Exp | Repairs to Building | Repair to Building @12% |
| Indirect Exp | Repairs to Building | Repair to Building @18% |
| Indirect Exp | Repairs to Building | Repair to Building @28% |
| Indirect Exp | Repairs to Building | Repair to Building @NT |
| Indirect Exp | Repair to Machinery | Repair to Machinery@12% |
| Indirect Exp | Repair to Machinery | Repair to Machinery@18% |
| Indirect Exp | Repair to Machinery | Repair to Machinery@28% |
| Indirect Exp | Repair to Machinery | Repair to Machinery@NT |
| Indirect Exp | Salary Administrative | |
| Indirect Exp | Sales Promotion | |
| Indirect Exp | Staff Welfare | |
| Indirect Exp | Telephone expenses | |
| Indirect Exp | Traveling Expenses | Traveling expenses (Foreign) |
