Descriptive Chart of Accounts Model Template

Descriptive Chart of Accounts Descriptive Account Codes1 . Share Capital and Liabilities

11 Share Capital

12 Reserves and Surplus

13 Secured Loans

14 Unsecured Loans

15 Current Liabilities

16 Provisions

2. Assets

21 Fixed Assets

22 Depreciation

23 Investments

24 Inventories

25 Receivables/Sundry Debtors

26 Loans and Advances

27 Other Current Assets

28 Cash and Bank Balances

29 Misc. Expenditure( To the extent not written off)

3. Materials and Other Variable Costs

31 Raw materials-Local

32 Raw Materials-Imported

33 Other Charges

34 Excise

35 Packing Material

36 Freight

37 Customs Duty

4 Staff and Works Expenses

41 Salaries, Wages and Bonus

42 Retirement Benefits(PF/Gratuity/Superannuation)

43 Other Welfare Expenses

44 Maintenance Expenses

45 Stores and Consumables

46 Power and Fuel

47 Rent, Rates and taxes

48 Depreciation

Descriptive Chart of Accounts (contd.)Descriptive Account Codes (contd.)5 . Administrative Expenses

51 Insurance

52 Technical Fees

53 Travelling

54 Communications

55 Printing and Stationery

56 Books and Periodicals

57 Legal and Professional Fees

6. Advertisement, Sales Promotion and Selling Expenses

61 Advertisements

62 Sales Promotion

63 Other Selling Expenses

64 Allowance for doubtful debts

65 Discounts and Commission

7. Finance Charges

71 Bank charges

72 Interest on Term Loans

73 Interest On Overdraft Limit

74 Interest on Cash Credit Limit

8 Sales Income

81 Sales Income

82 Recoveries on account of excise

83 Recoveries on account of packing and freight

84 Service Income

9 Non Operational Income and Expenditure and Adjustment entries

91 Sale of Scrap

92 Income from Investments

93 Interest Received

94 Export Incentives

95 Income from Sale of Fixed Assets

96 Adjustments on account of Previous years

99 Suspense Account

Detailed

Chart of Accounts

(Illustrative) 1 SHARE CAPITAL AND LIABILITIES

110 Share Capital

111 Equity Shares

112 Preference Shares

120 Reserves and Surplus

121 Share Premium Account

122 Reserves

122 2 Capital Reserve

122 3 General Reserve

122 4 Share Premium Account

122 5 Debenture Redemption Reserve

122 6 Capital Redemption Reserve

122 7 Surplus ie Balance in Profit & Loss Account after providing for

proposed allocations eg. dividend, bonus etc

122 9 Branch Control Account balances

(These originate on account of inter branch transactions. The control

account of a Branch would be identified by the 5th to 8th digits

suffixed. For eg 12901190 would represent XXX Branch Control Account-Finance &Accounts).

130 Secured Loans

131 Debentures

132 Loans and advances from Banks

Digits 1 to 9 could be used to specify the various types of loans and advances

Eg 1321 - Term Loan

1322 - Working Capital Demand Loan

1323 - Packing Credit Advance

The sixth and seventh digit could be constant for the location ie 10 for

Corporate/.Head Office. The seventh and eighth digit could be constant at 90,

signifying the responsible Department ie Finance and Accounts.

140 Unsecured Loans

141 Fixed deposits from the Public

142 Fixed deposits from shareholders

143 Loans and advances from subsidiaries

144 Short term loans and advances from Banks

145 Short term loans and advances from Others.

146 Loans from Directors

147 Interest accrued but not due

Detailed

Chart of Accounts

(Illustrative)

(contd.)150 Current Liabilities

151 Acceptances and Bills Payable

151 1 Acceptances

152 2 Bills Of Exchange Payable

152 Trade Creditors

152 1 For Supplies

153 2 For services

153 Deposits

153 1 From Customers

153 2 From Suppliers

152 3 From Scrap Dealers

152 4 Against tenders

152 5 Against Contracts(Retention Money)

154 Advances

154 1 Advances from Customers

155 Unclaimed Dividends

156 Interest accrued but not due

156 1 On Bank Loans

157 Liabilities on account of Commercial Taxes

157 1 Central Sales Tax

157 2 Local VAT

157 3 Service Tax

158 Payments due to Employees

158 1 Unpaid Salary

158 2 Unpaid Wages

158 3 Unpaid Bonus

158 4 Unclaimed Gratuity

158 5 Unpaid Travel Expenses

158 6 Unpaid Local Conveyance

158 7 Unpaid Business Promotion Expenses

159 Deductions from employees to be paid to other Agencies

159 1 Deductions on account of PF, Family Pension Scheme

159 2 Deductions on account of ESI

159 3 Deductions on account of Income Tax

160 Provisions

161 Provision for Taxation

161 1 Provision for Income Tax

161 2 Advance Payment of Income Tax (Debit Balance).

161 3 Provision for Dividend

161 4 provision for Gratuity

Detailed

Chart of Accounts

(Illustrative)

(contd.) 2:ASSETS

210 Fixed Assets

211 Land

211 1 Freehold Land

211 2 Leasehold Land

212 Intangible Assets

212 1 Patents

212 2 Trade Marks and Designs

213 Buildings

213 1 Factory Buildings

213 2 Office Building

213 3 Temporary Structures

214 Plant and Machinery

214 1 Production Machinery

214 2 Servicing Machinery

214 3 Material Handling Equipment

214 4 Air Conditioning Equipment

215 Electrical Equipment

216 Furniture and Fixtures

216 1 Furniture and Fixtures-Factory

216 2 Furniture and fixtures-Office

Detailed

Chart of Accounts

(Illustrative)

(contd.)

2:ASSETS(contd.)

210 Fixed Assets(contd.)

217 Office Equipment

217 1 Computers

217 2 Laptops

218 Vehicles

218 1 Automobiles

218 2 Delivery Vans

219 Work In Progress

219 1 Capital Work In Progress-Buildings

220 Depreciation (Credit balance).

223 Depreciation-Buildings




224 Depreciation Plant and Machinery





225 Depreciation-Electrical Equipment

226 Depreciation-Furniture and Fixtures



227 Depreciation-Office Equipment

227 1 Computers

227 2 Laptops

227 3 UPS/Inverters

227 4 Printers

227 5 Photocopy Machines

227 6 Fax Machines

227 7 EPABX and Telephone sets

228 Depreciation-Vehicles

228 1 Motor Cars

228 2 Delivery Vans

Detailed

Chart of Accounts

(Illustrative)

(contd.)

Note: While depreciation rates are applied uniformly over a class of assets, the above

structure will assist in arriving at the book value by netting off the balances in

the asset accounts and the corresponding depreciation account for the

measurement period 230 Investments

231 Govt. Securities

232 Investments in Subsidiaries

233 Other Investments

240 Inventories

241 Raw Materials-Local

241 1 Steel Items

241 2 Electrical Items

241 3 Paint Items

242 Raw Materials-Imported

242 1 Metal Items

242 2 Spares

243 Consumables and Spare parts

243 1 Spares Parts for Machinery

243 2 Consumables

244 Packing Material

244 1 Wooden Packing Cases

244 2 Cardboard Cartons

Note: In normal course, the above accounts will be a combination of opening

balances plus purchases, less material issued for sale,to arrive at the cost of sales

figure.

245 Loose tools, jigs and fixtures

246 Manufacturing Work In Progress

247 Finished Stock

247 1 Own Manufactured

257 2 Bought Out

250 Sundry Debtors

251 Trade Debtors

252 Other Debtors

253 Companies in which Directors are interested

259 Allowance for Doubtful debts(credit balance and cumulative)

Detailed

Chart of Accounts

(Illustrative)

(contd.)

260 Loans and Advances

261 Bills Receivable

262 Advances recoverable (Long Term)

263 Advances to Suppliers (Short term)

263 1 Supply of Materials

263 2 Supply of Services

264 Advances to Employees

264 1 Advances against salaries

264 2 Advances against travelling expenses

264 3 Other Advances

265 Deposits

265 1 Customers

265 2 XXX Department

265 3 Customs Department

265 4 Municipal Authorities

265 5 Lease of premises

270 Other Current Assets

271 Refunds due Export Assistance

273 Refunds due-Customs duty

274 Refunds due-Income Tax

275 Insurance Claims

280 Cash and Bank Balances

281 Imprest

(Imprests at locations and Departments will be identified with location and

Deptt.Codes)

282 Bank Balances

(Fourth digit would signify the respective Bank account sub ledger and sixth

digit the location and last two digits the Department ie Finance & Accounts)

290 Misc. Expenditure to the extent not written off or adjusted

291 Preliminary Expenses on issue of shares

292 Commission, Brokerage on underwriting of shares or debentures

293 Discount on issue of shares or debentures

294 Other Expenses

299 Profit and Loss Account (carried forward loss)

Detailed

Chart of Accounts

(Illustrative)

(contd.)

3: Materials and Other Variable Costs

310 Raw Material -Local

311 1 Steel Items

311 2 Electrical Items

311 3 Paints

The Account code structure would be similar to series 240-Raw Material

Inventory. Debits to these accounts would indicate issues to Production or sales.

Credits would be to series 240 indicating reduction in inventory.

320 Raw Material-Imported

322 1 Metal Items

322 2 Spares

330 Other Charges

331 Payments to sub contractors

331 Freight Inward

334 Variation in WIP(*Debit/Credit to this Account code would be required

to bring opening WIP to equal closing WIP)

335 Variation in Finished Goods

350 Manufacturing Tax/Excise Paid

351 Tariff Item No...........

352 Tariff Item No........

353 Tariff Item No....

360 Packing Material

361 1 Wooden Packing Cases

361 2 Cardboard Cartons

(*The value of material issued will be debited to codes in 364 series and

credited to 244 series codes)

370 Freight Outward

371 Railways freight

372 Truck Hire Charges

Detailed

Chart of Accounts

(Illustrative)

(contd.)

Staff and Works Expenses

410 Salaries, Wages and Bonus

411 Management Staff

412 Supervisory Staff

413 Other Staff

414 Contract Staff

415 Temporary Staff

416 Apprentices and Trainees

418 Bonus

419 Ex Gratia

420 Retirement Benefits

421 Provident Fund

421 1 Management Staff

421 2 Other Staff

422 Family Pension

423 Superannuation

424 Gratuity

424 1 Management Staff

424 2 Other Staff

430 Welfare Expenses

431 ESIC

432 1 ESIC Payments

432 2 ESIC Recoveries

433 Medical Expenses

433 1 First Aid Expenses

433 2 Reimbursement of Medical Expenses

433 3 Group Insurance Coverage Costs

434 Workmen Compensation

434 1 WCA Insurance

434 2 Accident Insurance Expense

435 Leave Travel Assistance

436 Canteen expenses

436 1 Purchases

436 2 Recoveries from Staff

437 Vacation Pay

438 Misc .expenses

Detailed

Chart of Accounts

(Illustrative)

(contd.)

4: Staff and Works Expenses(contd.)

440: Maintenance Expenditure

441 Repairs to Production Machinery

441 1 Material drawn from Stores

441 2 Payment to Outside Parties for repairs

441 3 Service Contracts

441 4 Routine Maintenance

441 5 Reconditioning

442 Repairs to Other Machinery

443 Repairs to Tools and Dies

444 Repairs to Office furniture

445 Repairs to electrical installations

446 Repairs to Buildings

447 Repairs To Office Equipment

448 Repairs to Vehicles

450: Stores and Consumables

451 Hand Tools

452 General Stores

460: Power and fuel

461 Electricity

462 Diesel

463 Furnace Oil

470: Rent, Rates and Taxes

471 Rent

471 1 Factory Building


472 Property Tax

473 Water Charges

474 License Fees

475 Profession Tax

Detailed

Chart of Accounts

(Illustrative)

(contd.)

480: Depreciation




484 Depreciation Plant and Machinery





485 Depreciation-Electrical Equipment

486 Depreciation-Furniture and Fixtures



487 Depreciation-Office Equipment

487 1 Computers

487 2 Laptops

487 3 UPS/Inverters

487 4 Printers

487 5 Photocopy Machines

487 6 Fax Machines

487 7 EPABX and Telephone sets

488 Depreciation-Vehicles

488 1 Motor Cars

488 2 Delivery Vans

Detailed

Chart of Accounts

(Illustrative)

(contd.)

5:Administrative Expenses

510: Insurance

511 Buildings

512 Plant and Machinery

513 Inventory

514 Cash

515 Goods In Transit

516 Vehicles

520 : Technical Know How

521 Royalty

522 Technical Assistance Fee

530 : Travelling

531 Local Conveyance

532 Travelling-Domestic

532 1 Directors

532 2 Sales

532 3 Installation

532 4 Servicing

532 5 Purchase

540 : Communication

541 Telecom Cost-Office

542 Telecom Cost-Factory

543 Telecom Cost-Managers

544 Telecom Cost-Staff

545 Internet-Office

546 Internet-Factory

547 Internet-Staff

548 Postage

550: Printing and Stationery 550 Photocopying Paper

551 Computer stationery

560: Books and Periodicals

Detailed

Chart of Accounts

(Illustrative)

(contd.)

570 : Legal and Professional Fees

571 Audit Fees

571 1 Reimbursement of travelling/other charges

572 Internal Audit Fe es

573 Legal Charges

573 1 Customer Recoveries

573 2 Labour Matters

573 3 Company Law Matters

573 4 Tax Matters

574 Professional Fees

574 1 Directors Fees

574 2 Other Payments to Directors

6 : Selling and Distribution Expenses

610: Advertisements and Sales Promotion

611 Advertisements in Newspapers, Magazines and Trade Journals

611 1 Product Display and Sales

611 2 Recruitment

611 3 Public Notices

611 4 Tenders

612 Advertisements on Television

613 Advertisements on Radio

614 Advertisements in Cinema Theatres

615 Art Work, Blocks etc

620: Sales Promotion

621 Samples

622 Gifts

623 Exhibitions

630: Other Selling Expenses

631 Replacements under Warranties

640: Allowance for Doubtful Debts

650: Commissions And Discounts

651 Commission and Incentives to Sales Staff

652 Trade Discounts and Commission to Dealers

653 Third Party Commission(Sales Promoters)

654 Other Discounts

Detailed

Chart of Accounts

(Illustrative)

(contd.)

7: Finance Costs

710 Interest to Bank

710 1 Term Loans

710 2 Overdraft Accounts

710 3 Working Capital Demand Loans

710 4 Cash Credit Account

720 Bank Charges

720 1 Cheque Book Charges

720 2 Demand Drafts/Bankers Cheques

720 3 Bank Guarantees

720 4 Letters of Credit

720 5 Electronic Funds Transfer

720 6 Acceptances

730 Interest on Deposits

730 1 Public

730 2 Shareholders

730 3 Customers

730 4 Govt. Authorities

Detailed

Chart of Accounts

(Illustrative)

(contd.)

810 Sales Income( excluding VAT/Manufacturing Taxes )

810 1 Product 1

810 2 Product 2

810 3 Product 3

810 4 Product 4

820 Recoveries on account of Excise

820 1 Product 1

820 2 Product 2

820 3 Product 3

820 4 Product 4

830 Recoveries on account of Packing and Freight

830 1 Product 1

830 2 Product 2

830 3 Product 3

830 4 Product 4

840 Income from Service

850 Recoveries on Account of Service Tax

9:Other Income

910 ;Income from Sale of Scrap

920: Income from Investments

930 :Interest Received

930 1 Fixed Deposits with Banks

930 2 Fixed Deposits with Govt.Deptts.

940 : Export Incentives Received950 : Income from Sale of Fixed Assets

980 : Adjustments on Account of Previous years

Detailed

Chart of Accounts

(Illustrative)

(contd.)

810 Sales Income( excluding VAT/Manufacturing Taxes )

810 1 Product 1

810 2 Product 2

810 3 Product 3

810 4 Product 4

820 Recoveries on account of Excise

820 1 Product 1

820 2 Product 2

820 3 Product 3

820 4 Product 4

830 Recoveries on account of Packing and Freight

830 1 Product 1

830 2 Product 2

830 3 Product 3

830 4 Product 4

840 Income from Service

850 Recoveries on Account of Service Tax

9:Other Income

910 ;Income from Sale of Scrap

920: Income from Investments

930 :Interest Received

930 1 Fixed Deposits with Banks

930 2 Fixed Deposits with Govt.Deptts.

940 : Export Incentives Received950 : Income from Sale of Fixed Assets

980 : Adjustments on Account of Previous years

16

Descriptive Chart of Accounts Model Template

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