Remember to be precise in the category of account numbers that need to be used for making the chart

Remember to be precise in the category of account numbers that need to be used for making the chart of accounts.

Have you ever wondered about the numbering of accounts used in chart of accounts, whether these numbers are actually structured? or just want to choose to enter any number In this article we are going to explain.

Chart of Accounts numbering is the number that will appear in the third box in the general journal. To record account numbers of various accounts There will be a format for determining this number as a standard convention that has been set. according to the category of that account to use a different number including the number of digits The number of digits of the account number will have different digits in each business, there may be 2 digits, sometimes 4 digits, or there may be more. It depends on the size and number of business accounts. because if it is a large business, there will be many accounts affecting the number of digits of the account number

Coming back to the main point of our article this time, that is, the account number category that must be used in making the chart of accounts. There are 5 categories, consisting of

Account : Asset Category

Account category number : 1

Account : Liabilities Category

Account Category Number : 2

Account : Owner's Section

Account category number : 3

Account : income category

Account category number : 4

Account : Expense Category

Account Category Number : 5

This is also the account category number used in making the chart of accounts that you should know. And when knowing the category number, it will be able to tell the category of the account, for example, in the event that we encounter an account number with number 5, we will know immediately. that is the expense category consisting of salary, rent, etc.

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