The general ledger, often called simply as the ledger, is a group of many accounts. An account is the accounting device used in summarizing the effect of transaction on each asset, liability, equity, revenue and expense. Simply, each account is a record of information about accounting transaction.Such category
Asset - such as cash, account receivable, merchandise inventory, furniture and fixture, land and building.
Liability - such as accounts payable, notes payable, bonds payable, income tax payable.
Equity - such as common stock, retained earning, treasury stock, paid in capital, revaluation surplus.
Income - such as interest income, gain on sales of asset, rental income and other income.
Expense - such as interest expense, rent expense, communication expense and transportation expense.
Open Space Media Inc
Chart of Accounts
ASSET
Account Code Account Name
0001-001 Cash in Bank
0002-001 Account Receivable
0003-001 Merchandise Inventory
LIABILITY
0005-002 Accounts Payable
0006-002 Notes Payable
0007-002 Bonds Payable
EQUITY
0010-003 Retained Earning
0011-003 Treasury Stock
0012-003 Paid in Capital
INCOME
0020-004 Sales
0020-004 Interest Income
0020-004 Rental Income
EXPENSE
0030-007 Interest Expense
0030-008 Rent Expense
0030-009 Communication Expense
The common used by a particular company are usually expressed in the form called chart of accounts. A chart of accounts is a list of all the company general ledger accounts in systematic form. The accounts usually numbered or called account number to make it series and easy to identify.
in extend to general ledger most company maintain we called subsidiary ledger is the device storing the details of certain general ledger accounts are actually the main account supported the details of Subsidiary Ledger.
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