Descriptive Chart of Accounts

Descriptive
Account
Codes

1 . 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
2

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 5 th 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)

150 Current Liabilities

151 Acceptances and Bills Payable
151 1 Acceptances
152 2 Bills Of Exchange Payable
3

(contd.)

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

2:ASSETS
Detailed

Chart of
Accounts
(Illustrative)
(contd.)

210 Fixed Assets

211 Land
211 1 Freehold Land
211 2 Leasehold Land
4

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
216

Electrical Equipment
Furniture and Fixtures
216 1 Furniture and Fixtures-Factory
216 2 Furniture and fixtures-Office

Detailed

Chart of
Accounts
(Illustrative)

2:ASSETS(contd.)
210 Fixed Assets(contd.)
217 Office Equipment
217 1 Computers

(contd.)

217 2 Laptops
218

Vehicles
218 1 Automobiles
5

218 2 Delivery Vans

219

Work In Progress

219 1 Capital Work In Progress-Buildings

220 Depreciation (Credit balance).
223

Depreciation-Buildings
223 1 Factory Buildings
223 2 Office Building
223 3 Temporary Structures

224

Depreciation Plant and Machinery

224 1 Production Machinery
224 2 Servicing Machinery
224 3 Material Handling Equipment
224 4 Air Conditioning Equipment

225

Depreciation-Electrical Equipment

226

Depreciation-Furniture and Fixtures

226 1 Furniture and Fixtures-Factory
226 2 Furniture and fixtures-Office

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
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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
7

265
265
265
265
265

1
2
3
4
5

Customers
XXX Department
Customs Department
Municipal Authorities
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.
8

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

360

Manufacturing Tax/Excise Paid

351 Tariff Item No...........
352 Tariff Item No........
353 Tariff Item No....
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
9

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
443
444
445
446

Repairs
Repairs
Repairs
Repairs
Repairs

to
to
to
to
to

Other Machinery
Tools and Dies
Office furniture
electrical installations
Buildings
10

447
448

Repairs To Office Equipment

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
471 2 Office Building
472 Property Tax
473 Water Charges
474 License Fees
475 Profession Tax

Detailed

Chart of
Accounts
(Illustrative)
(contd.)

480: Depreciation
483 1 Factory Buildings
483 2 Office Building
483 3 Temporary Structures
484

Depreciation Plant and Machinery

484 1 Production Machinery
484 2 Servicing Machinery
484 3 Material Handling Equipment
484 4 Air Conditioning Equipment

485

Depreciation-Electrical Equipment

486

Depreciation-Furniture and Fixtures

486 1 Furniture and Fixtures-Factory
486 2 Furniture and fixtures-Office
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487

488

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
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
12

532
532
532
532

2
3
4
5

Sales
Installation
Servicing
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
13

611
611
611
611

1
2
3
4

Product Display and Sales

Recruitment
Public Notices
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

14

Detailed
Chart of
Accounts
(Illustrative)
(contd.)

810 Sales Income( excluding VAT/Manufacturing Taxes )

810
810
810
810

1
2
3
4

Product
Product
Product
Product

1
2
3
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
15

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 Received
950 : 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
810
810
810

1
2
3
4

Product
Product
Product
Product

1
2
3
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
16

920: Income from Investments

930 :Interest Received
930 1 Fixed Deposits with Banks
930 2 Fixed Deposits with Govt.Deptts.
940 : Export Incentives Received
950 : Income from Sale of Fixed Assets
980 : Adjustments on Account of Previous years

17