What do we mean by Chart Of Accounts in Reckoner?
Answer. Chart of Accounts is just like tree structure of levels of accounts , For e.g. if we typically look at a ledger account of packing machine , we can group it under the heading machinery , which in turn can be Grouped under the heading of Plant And Machinery , Since the group Plant and Machinery forms the part of Fixed Assets of the company , hence can be classified into main Category Assets. Thus this kind of branching can be represented in some what following way: Assets Fixed Assets Plant And Machinery Machinery Packing machine Ac. Account Chart gives you Birds view of how accounts are grouped from the final statements point of view, While creating your own Chart of accounts user should always keep final Statements in mind , how he would like his final statements to get effected. Default groups viz. ( Assets, Expense, Liability, Income ) are already provided which the user cannot modify or Delete.
