2. Chart of Accounts - Accounts Ledger

Accounts Group

Steps to Set Up an Accounts Group

  1. Navigate to Accounts Group Section:

    • Go to your accounting or financial software.
    • Look for the option to add a new account group or Master Accounts Group.

  2. Add Accounts Group:

    • Click on Add Accounts Group

  3. Group Name:

    • Enter a name for the new group. The name should clearly reflect the purpose or category of accounts in that group, such as Current Assets, Revenue, Liabilities, etc.

  4. Main Group Name:

    • Select or define a Main Group under which this new group will fall. For example, the main group could be Assets, Equity, or Expenses.

  5. Nature of Group:

    • Select the nature or type of group. Common categories include:
      • Assets: Accounts related to company resources, such as Cash, Accounts Receivable, etc.
      • Liabilities: Accounts related to company obligations, such as Accounts Payable, Loans, etc.
      • Equity: Owner equity, common stock, retained earnings.
      • Revenue/Income: Sales, income from services, etc.
      • Expenses: Operating costs like Rent, Utilities, Salaries, etc.

 

Accounts Ledger

Steps to Set Up an Accounts Ledger

  1. Navigate to Accounts Ledger Section:

    • Go to your accounting or financial software and locate the Accounts Ledger section.
    • Look for an option like Add Accounts Ledger or Master Accounts Ledger to create a new ledger.

  2. Add Accounts Ledger:

    • Click on Add Accounts Ledger to start the setup process for a new ledger account.

  3. Ledger Name:

    • Enter a name for the ledger account. The name should describe the specific account, such as Cash, Sales Accounts, Purchase Accounts, etc.

  4. Group Name:

    • Select the appropriate Accounts Group for this ledger. For instance:
      • If the ledger is for a cash account, it would fall under Current Assets.
      • If it is a revenue ledger, it might fall under Income or Sales Revenue.

  5. Opening Balance Available:

    • Enter the opening balance for this ledger account. This could be the balance at the start of the period or the balance when the ledger is first created.
      • For example, if you’re adding a bank account, enter the initial balance that was available in the account.
      • Make sure to indicate whether the balance is debit or credit, depending on the nature of the account.