What is the meaning of Charts of Accounts?is it Balance Sheet and Profit and Loss account?

Question

ITS ABOUT ACCOUNTS

Answer 1

Chart of Accounts

A list of ledger account names and numbers arranged in the order in which they customarily appear in the financial statements. The chart serves as a useful source for locating a given account within the ledger. The numbering system for the chart of accounts must leave room for new accounts. A range of numbers is assigned to each financial statement category. For example, asset accounts may be assigned the numbers 1-100 and liabilities assigned 101-200. For large businesses, a wider range of numbers would be required for each grouping. In fact, some companies employ a three-digit numbering system for each account. In such a case, the first digit identifies the financial statement category and the remaining digits apply to the position of that account within that category. For example, 1 may be the first digit for Assets, and Cash, being the first asset account, would be identified as 101.

Answer 2

A Chart of Accounts is a unique number or a suitable code that is assigned to each and every account, such as each expense and income source that one wants to keep track of on a monthly and yearly basis.

Software, and even EXCEL, can then sum all the amounts on a spread sheet or data base that are coded with those numbers.

EXCEL uses a function called "Data Sum".
Example:

Rent, number100
Utilities, 101
Advertising, 102
Wages, 103
ETC.

On a spread sheet, if these numbers are entered in a separate col. for each entry, and a dollar amount entered in another col., in any order, the function "Data Sum" will add those dollar amounts for each account. They can be pulled on a different sheet as a summary of each account. An accumulative total will be generated each month and can be totaled for the year. The formula syntax must be accurately entered.
This can be done from a check register, after all data, each check, is entered into a spread sheet, in any order.

Without this type of function, one would have to sort the sheet by each account name and then summed separately. Sort would not function for "all wages" as each employee has a different name. Totals for each individual employee would be the only option by sort.
For each employee, a number could be assigned and totals for each can be generated.

The chart of accounts can be used in any operation so that each one would not have to use their own individual names or codes. An accountant can use the chart over and over again without changes to his/her software, for each business account.

Answer 3

A chart of accounts is a list of all accounts tracked by a single accounting system, and should be designed to capture financial information to make good financial decisions. Each account in the chart is assigned a unique identifier, typically an account number. Each account in the Anglo-Saxon chart is classified into one of the five categories: Assets, Liabilities, Equity, Income and Expenses.

Answer 4

A stability sheet in basic terms encompasses a business enterprise's modern-day materials (funds on your money owed plus the cost of any actual products) and liabilities (what you owe to others or to capital investors). Wages won't seem in the soundness sheet as they are neither an asset or a criminal accountability. income the financial business enterprise which you propose to apply to pay you wages would seem as an asset, and in case you owed returned-wages which you would be able to have paid yet did no longer then that is a criminal accountability, however the quantity which you frequently pay out in wages will frequently no longer characteristic as a stability sheet isn't designed to coach this. Depreciation is an analogous element. it rather is neither an asset nor a criminal accountability. i do no longer think of you could artwork out working income on a stability sheet on my own.

Answer 5

http://www.netmba.com/accounting/fin/accounts/chart/

The general ledger is broken out into many smaller accounts. The chart of accounts is the complete list of these.