Chart of Accounts: how accounts are organised
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Updated 03 Oct 2026
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AI summary
How ledgers roll up into groups and then into the Balance Sheet and P&L.
3 sections
What it is
The Chart of Accounts is the list of every ledger, arranged under groups. The group decides where a ledger appears in the final accounts.
Standard structure in Hisab Central
| Goes to | Groups |
|---|---|
| Balance Sheet — Liabilities side | Capital Account, Reserves, Loans (Secured / Unsecured), Current Liabilities, Sundry Creditors, Duties & Taxes, Provisions |
| Balance Sheet — Assets side | Fixed Assets, Investments, Current Assets, Stock-in-Hand, Sundry Debtors, Cash-in-Hand, Bank Accounts, Loans & Advances (Asset) |
| Trading Account | Sales Accounts, Purchase Accounts, Direct Expenses, Direct Incomes |
| Profit & Loss Account | Indirect Expenses, Indirect Incomes |
Good practice
- One ledger per party, bank account, and type of expense or tax.
- Use sub-groups (e.g. Debtors - Delhi) instead of creating many similar ledgers.
- Keep separate ledgers for Input CGST, Input SGST, Input IGST, Output CGST, Output SGST, Output IGST, and RCM payable.
- Never put a ledger under "Suspense" permanently.
See Masters Setup → Organise accounts with account groups to create groups.
PreviousGolden rules of accounting Next in Accounting Concepts Assets, liabilities, capital, income and expenses
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