Every time an invoice is created but is not marked paid, a journal entry is created, which debits the Accounts Receivable with the invoice amount. This is mapped to sub-type Current Assets generally. Accounts Receivable (aka Trade Debtors): This balance sheet type account captures the amounts of all unpaid invoices.Let us take a look at some common general ledger accounts which you are bound to encounter in most chart of accounts. However, there are common themes across that one would come across. The chart of accounts should be created based on the industry and the accounting practices followed by the business. Example of Balance Sheet Sub Types:Īll your accounts are mapped to one of these sub-types, and your accounting system should take care of mapping the accounts to either balance sheet type or income statement type. Some of the common sub-types you would encounter in a chart of accounts are given below. Improve user experience and remove the extra step of mapping each sub-type to either Balance Sheet or Income Statement and have an additional field.Generally accepted accounting principles (GAAP) determine the mapping between the sub-type like Income and Assets and Liabilities to the main type.Income, Cost of Goods Sold, Expenses, etc Chart of AccountsĬurrent Assets, Current Liabilities, Cash, Bank, etc One common set of types and sub-types is shown below. These sub-types determine the location or appearance of the account in the corresponding financial statement. These are sub-types that are mapped to the Balance Sheet and Income types. ![]() Examples include Assets, Liabilities, Income, Expenses, Cost of Goods Sold, Bank, etc. In most accounting systems though, you may see other options when adding a new account in the chart of accounts. Consequently, the accounts are used for the corresponding transaction documentation. The type indicates which financial statement, balance sheet or income statement (aka Profit and Loss Statement), the account goes to.
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