Chart of accounts example.A chart of accounts is a list of all the accounts used by a business to record its financial transactions.
Below is an example of a chart of accounts for a small business:
Assets:
- 1000 Cash
- 1100 Accounts Receivable
- 1200 Supplies
- 1300 Prepaid Rent
- 1400 Land
- 1500 Buildings
- 1600 Equipment
Liabilities:
- 2000 Accounts Payable
- 2100 Salaries Payable
- 2200 Rent Payable
- 2300 Loans Payable
Equity:
- 3000 Owner’s Capital
- 3100 Retained Earnings
Revenue:
- 4000 Sales
- 4100 Service Revenue
Expenses:
- 5000 Cost of Goods Sold
- 5100 Salaries Expense
- 5200 Rent Expense
- 5300 Supplies Expense
- 5400 Utilities Expense
- 5500 Insurance Expense
- 5600 Depreciation Expense
- 5700 Interest Expense
This is just one example of a chart of accounts, and different businesses may have different accounts depending on their specific needs and operations.The chart of accounts must comply with current legislation, making the compilation of the financial statements and income tax returns as simple as possible.