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How is a chart of accounts arranged?

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Question

How is a chart of accounts arranged?

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Solution

A Chart of Accounts is arranged logically in a top-to-bottom sequence, starting with Balance Sheet accounts and followed by Income Statement accounts. Within these categories, accounts are structured from broad groups down to specific individual ledgers using a numerical coding system.

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Chapter 1: Overview of Computerised Accounting System - EXERCISES [Page 16]

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NCERT Accountancy Computerised Accounting System [English] Class 12
Chapter 1 Overview of Computerised Accounting System
EXERCISES | Q 2. 8. (ii) | Page 16
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