Main Classes of the Uniform Chart of Accounts

Account Class Definition Operating Rule
1. Current AssetsAssets convertible to cash within 1 year, such as cash, bank, and inventories.Increases recorded as Debit, decreases as Credit.
2. Non-Current AssetsAssets used for more than 1 year, such as buildings, vehicles, and fixtures.Increases recorded as Debit, decreases as Credit.
3. Short-Term LiabilitiesDebts payable within 1 year (trade payables, taxes).Increases recorded as Credit, decreases as Debit.
4. Long-Term LiabilitiesBank loans and debts maturing beyond 1 year.Increases recorded as Credit, decreases as Debit.
5. EquityOwners' rights over assets (capital, profits).Increases recorded as Credit, decreases as Debit.
6. Income Statement AccountsAccounts tracking income and expenses during the period.Expenses recorded as Debit, income as Credit.
7. Cost AccountsAccounts where production, service, or management costs are collected.Recorded as Debit when expenditure is made.

Key Account Groups and Details

1. Asset Accounts (Groups 1 and 2)

These accounts show the values owned by the business.

  • 100 Cash / 102 Banks: Tracks the cash and deposit status of the business.

  • 120 Trade Receivables: Represents credit receivables from customers.

  • 153 Merchandise: The cost value of products purchased for resale.

  • 254 Vehicles / 255 Fixtures: Vehicles and equipment used in the business.

2. Source Accounts (Groups 3, 4 and 5)

Shows how assets are financed (by debt or equity).

  • 300 Bank Loans: Short-term credit debts.

  • 320 Suppliers: Debts owed to suppliers from whom goods are purchased.

  • 500 Capital: The primary source contributed upon the establishment of the business.

3. Income and Expense Accounts (Group 6)

  • 600 Domestic Sales: The gross amount of sales made.

  • 621 Cost of Merchandise Sold: The cost of sold products to the business.

  • 632 General and Administrative Expenses: Administrative costs such as rent, electricity, and payroll.


Tip for Reading the Chart of Accounts

Account codes are three digits:

  1. First Digit: Account Class (e.g., 1 - Current Assets)

  2. Second Digit: Account Group (e.g., 10 - Liquid Assets)

  3. Third Digit: General Ledger Account (e.g., 100 - Cash)