iGreen

Accounting application software with offline and online server

Tag: Assets

  • Chart of Accounts

    Core of any accounting system is ledger book. this book contains all accounts and transaction of a business. The list of categorized accounts in the general ledger is called the chart of accounts. All vouchers and journal in double entry accounting applications will use accounts in ledger book. list of accounts could be in a simple list or categorized levels regards to their identity accounting equation.

    Chart of Accounts in iGreen

    In igreen accounting software, the accounts part is displayed as a tree. This display mode makes you have a better imagination of ​​the categories of accounts at a glance.

    As you see in this photo, default main categories of accounts in iGreen accounting is same as international accounting standard:

    • Assets
    • Liabilities
    • Equity
    • Income
    • Cost of Sales
    • Expenses
    • Other Expenses
    Chart of accounts in iGreen accounting

    Advantage of COA in iGreen

    By using igreen accounting, you will experience two main advantages in the chart of accounts section.

    1. Tree display of accounts and a better idea and understanding of the position of accounts and categories
    2. access to unlimited levels of accounts and create and categorize accounts at any number of levels you need

    How to Add New Account

    You can add the new account under the selected category by selecting the desired category and then write the name of the new account and click [SAVE].

    For example, in the image below, we have selected [Accounts Payable] and in the yellow box, the parent of the new account will be [Accounts Payable], so you can write the name of the new account in the orange box under the yellow box.

    Chart of accounts in iGreen accounting software

     

  • Different types of Accounts and Ledgers

    In this post, we discuss the various types of accounts and ledgers used in accounting. Accounts can be classified into five main categories: assets, liabilities, equity, revenue and expenses.

    • Assets are resources owned by a company that have economic value, such as cash, inventory, and property
    • Liabilities are obligations that a company owes to others, such as loans and accounts payable
    • Equity represents the residual interest in the assets of a company after deducting liabilities
    • Revenue is the income earned by a company from its operations
    • Expenses are the costs incurred by a company in generating revenue.

    Ledgers are used to record financial transactions and are classified into two main types: general ledger and subsidiary ledger.

    • The general ledger: It contains all the accounts used by a company
    • Subsidiary ledger : It contains details of transactions for specific accounts.

    For example, a company may have a subsidiary ledger for accounts receivable, which contains details of all transactions related to customer payments.

    In conclusion, understanding the different types of accounts and ledgers is essential for effective accounting. By properly classifying and recording financial transactions, companies can accurately assess their financial position and make informed decisions.

    here, we aim to extend your knowledge of bookkeeping principles by providing a comprehensive explanation of the sales and purchase ledgers that are kept outside the main ledger. The nominal ledger, which is often referred to as the main ledger, will also be discussed in more detail, along with the various posting mediums that are used. It is important to note that there are five different types of account within the nominal ledger, although entries may be posted freely between them.

    We will begin by discussing the five different types of account within the nominal ledger. These include assets, liabilities, equity, revenue, and expenses. Each of these accounts serves a unique purpose and must be treated differently when recording transactions.

    Moving on, we will delve into the nominal ledger, which is the primary ledger used in bookkeeping. This ledger contains all of the accounts that a business uses to record its financial transactions. It is important to maintain accurate records in the nominal ledger to ensure that financial statements can be prepared accurately.

    The books of prime entry are also an important aspect of bookkeeping. These books are used to record transactions before they are posted to the nominal ledger. The most common books of prime entry include the sales day book, the purchase day book, and the cash book.

    The Nominal journal is another important aspect of bookkeeping. This journal is used to record transactions that cannot be recorded in the books of prime entry. Entries in the nominal journal are then posted to the nominal ledger.

    Finally, we will discuss the sales and purchase ledgers. These ledgers are used to record transactions that are specific to sales and purchases. The purchase day book is used to record all purchases made by a business, while the sales day book is used to record all sales made by a business. These ledgers are important for maintaining accurate records of transactions and ensuring that financial statements can be prepared correctly.

    Overall, it is crucial for businesses to understand the various aspects of bookkeeping in order to maintain accurate financial records. By understanding the five different types of account, the nominal ledger, the books of prime entry, the nominal journal, and the sales and purchase ledgers, businesses can ensure that their financial statements are accurate and reliable.