 
|
 |
| |
| Q: What are G/L Account Types? |
A: The Account Type determines placement of the account on financial statements and what type of normal balance it will have. Examples: Types 100-199 appear on the Balance Sheet, have a "normal" Debit balance and will subtotal into a line called "Total Current Assets".
Types 200-299 also appear on the Balance Sheet, have a "normal" Debit balance and will total into "Total Fixed Assets".
Types 100-299 will total together to create the line "Total Assets" on the Balance sheet.
Types 300-399 appear on the Balance Sheet, will have a "normal" Credit balance and total into "Total Liabilities".
Types 400-499 appear on the Balance Sheet, have a "normal" Credit balance and will total into "Total Owner's Equity".
Types 300-499 will total together to create the line "Total Liabilities and Owner's Equity" on the Balance sheet.
Types 500-599 appear on the Income Statement, have a "normal" Credit balance and will total into "Total Sales".
Types 600-699 appear on the Income Statement, have a "normal" Debit balance and will total into "Total Cost of Goods Sold".
Types 500-699 will total together to create the line "Gross Profit" on the Income Statement.
Types 700-799 appear on the Income Statement, have a "normal" Debit balance and total into "Total Expenses".
Types 500-799 will total together to create the line "Net Operating Profit" on the Income Statement.
Types 800-899 appear on the Income Statement, have a "normal" Credit balance and total into "Total Non-Operating Income".
Types 500-899 will total together to create the line "Net Profit or Loss" on the Income Statement.
If you wish an account to be a contra account (have a normal balance other than what it usually does), put a minus sign (-) in front of the account type. An example would be accounts such as Accumulated Depreciation and Allowance for Doubtful Accounts. While they appear in the Asset section, they normally have a Credit balance. If you have questions about normal balances or contra accounts, please consult your accounting professional.
Once account types have been established, it is imperative you do not change them. This will cause balances to appear incorrect (debits will be credits or vice versa). If you need to change account types, please contact DataModes for the correct procedure.
|
| Information on the web at: http://www.datamodes.com |
| For more information, contact: tech@datamodes.com |
Back to General Ledger Index Back to Main Index
|
|
|
|
|
