Code account in accounting

Posted by Imam Larh on Thursday, 15 February 2018

Account code used in an account usually consist of numbers, letters, or a combination of numbers and letter to cue against the previous classification has been made. This code is made for easy identification and differentiation of existing elements in a classification. Management accounting data relies on the use of codes to record, classify, store, and retrieve financial data. The purpose of the granting of the following code in your accounting data processing systems:

1. Identifying data uniquely accounting
Accounting data need to be unique identification to be done recording, classification, storage, and retrieval of data correctly.
2. Identifying data
The code presents the accounting data more compact, so it takes less space in the record
3. Classify accounts or transactions
In the Manage accounting data, the code used to demonstrate what a classification into account or transaction is grouped.
4. Conveying a certain meaning
With this code, we can deliver meaningful information.

The Giving Account Code Number
The giving account code is generally based on the order of granting certain code, making it easier for users in their use. The giving account code does not intend to let users memorize codes account compiled, however for easy usage follows the logic framework granting the account code so you can use the structured account for the grant of identification of transactions that occur within the company. These various methods of administering the account code.

1. Code numbers or the alphabet sort
In the method of administering this code, account ledgers were given code numbers or letters that sequence. The weakness of the code numbers or the alphabet sort is if there is an expansion of the number of the account, this would result in a greater number code. The following sample code numbers sort.

  1. Cash and bank
  2. Temporary Investments
  3. Accounts receivable
  4. Accounts receivable losses Reserves
  5. Inventory of finished products
  6. Product Inventory in the process
  7. Supply of raw materials and ingredients of the helper
  8. Advance fee
  9. Other current assets
  10. Long-term investment
  11. Land
  12. Building
  13. Accumulation of depreciation building
  14. The machine
  15. The accumulated depreciation of machine
  16. Furniture
  17. Accumulation of depression furniture
  18. Fixed assets other
  19. Accumulated depreciation of other fixed assets
  20. A suspended Load
  21. Other Assets
  22. Trade Debts
  23. Tax Debt
  24. Wage and salary Debts
  25. Cost of Debt
  26. The income which is paid upfront
  27. Debt smoothly etc.
  28. Long-term bank Debt
  29. Share capital
  30. Profit on hold
  31. Sales revenue
  32. Cost of goods sold
  33. The cost of raw materials
  34. Labor costs
  35. Factory overhead costs
  36. General and administration fees
  37. Marketing costs
  38. Income outside the business
  39. The cost of outside business
  40. Loss of profit
The following characteristics of the giving of the code with code numbers sort.
  • Account coded with numeric sort, from small numbers to large numbers.
  • Tb. the number of digits (digit) in the code is not the same.
  • Expansion of the classification of an account will result in code changes all the account code is greater than the account code underwent an expansion.

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