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Accountancy, Business & Management 1: Specialized Subject BY Manuel L. Hermosa, Ed.D

The document provides information on charts of accounts. It explains that a chart of accounts lists all the accounts a company uses in its financial records to identify sources and uses of money. It also states that the chart of accounts forms the foundation of financial statements. The document then outlines the steps to prepare a basic chart of accounts, which includes creating columns for account codes and descriptions and listing accounts in the order of assets, liabilities, equity, revenues, and expenses.

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Manny Hermosa
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77 views31 pages

Accountancy, Business & Management 1: Specialized Subject BY Manuel L. Hermosa, Ed.D

The document provides information on charts of accounts. It explains that a chart of accounts lists all the accounts a company uses in its financial records to identify sources and uses of money. It also states that the chart of accounts forms the foundation of financial statements. The document then outlines the steps to prepare a basic chart of accounts, which includes creating columns for account codes and descriptions and listing accounts in the order of assets, liabilities, equity, revenues, and expenses.

Uploaded by

Manny Hermosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

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ACCOUNTANCY,
BUSINESS &
MANAGEMENT 1
SPECIALIZED SUBJECT
BY
MANUEL L. HERMOSA, Ed.D
Chart of Accounts.

• A chart of accounts is a listing of the accounts used by co


mpanies in their financial records.
• The chart of accounts helps to identify where the money i
s coming from and where it is going.
• The chart of accounts is the foundation of the financial sta
tements.
The following are the steps in the preparation of a basic chart of
accounts:
1. Create two columns.
2. Prepare the assets first, then liabilities, then equity, then reven
ue and expenses.
3. List all assets, liabilities, equity, revenue and expenses account
in the first column.
4. On the second column, choose an account code (discretion of
the company).
5. On the third column, write the description for each account o
n when to use it.
ANSWERS: 1. Liabilities 2. Property, Plant and Equipment
3. Intangible Assets 4. Owner’s Equity 5. Cash
6. Rent Expense 7. Assets 8. Notes Receivable

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