A chart of accounts in an organisation could be a listing of account names in the accounting system to identify and made available for recording of business transactions to specific ledger account.
For each account within the chart of accounts is assigned to a name and unique number to identify the business transaction, the unique number is also usually four or more digits and the unique number is made separate sequentially for assets, current liabilities, incomes, expenses and other accounts.
The gap between account numbers permits for adding new accounts in future. The below are the few example chart of accounts.
Current Liabilities and Current Assets
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