and their definitions
Revenue (Main)
This account will be listed at the start of the Income Statement. Only 1 is required to compile the Income Statement. Additional account(s) of this type will be listed in the Income Statement but the value will not be taken into calculation.
Example accounts: Sales Revenue, Service Revenue
Revenue (Side)
This account(s) will be listed in the Income Statement after the deduction of Expenses. You can have multiple or none of this account(s).
Example accounts: Sales Commision, Rent Revenue
Contra (Revenue)
This account(s) will be listed in the Income Statement after the Main Revenue account. This account(s) will reduce the amount of the Main Revenue. You can have multiple or none of this account(s).
Example accounts: Sales Returns and Allowances
Cost of Goods Sold
This account will be listed after "Nett Sales" in the Income Statement. "Nett Sales" is the remainder of the Main Revenue account after deducting the Revenue Contra account(s). You can have a maximum of 1 for this account type. It is optional if your main revenue is service based.
Expenses
This account(s) will be listed in the Income Statement after the "Gross Profit". "Gross Profit" is the remainder of the Nett Sales after deducting the Cost of Goods Sold. You can have multiple or none of this account(s).
Example accounts: Utility Expense, Depreciation Expense
Assets (Non-current)
This account(s) will be listed in the Balance Sheet. You can have multiple or none of this account(s).
Example accounts: Plant, Property and Equipment
Assets (Current)
This account(s) will be listed in the Balance Sheet after "Non-current Assets". You can have multiple or none of this account(s).
Example accounts: Cash, Bank, Prepaid Expense
Contra (Current Assets)
This account(s) will be listed in the Balance Sheet under "Current Assets". This account(s) will reduce the amount of current assets. You can have multiple or none of this account(s).
Example accounts: Allowance for Doubtful Accounts
Contra (Non-current Assets)
This account(s) will be listed in the Balance Sheet under "Non-current Assets". This account(s) will reduce the amont of non-current assets. You can have multiple or none of this account(s).
Example accounts: Accumulated Depreciation
Liabilities (Non-current)
This account(s) will be listed in the Balance Sheet after "Total Assets". You can have multiple or none of this account(s).
Example accounts: Long-term Loan
Liabilities (Current)
This account(s) will be listed in the Balance Sheet after "Non-current Liabilities". You can have multiple or none of this account(s).
Example accounts: Accounts Payable, Accrued Expense
Contra (Current Liabilities)
This account(s) will be listed in the Balance Sheet after "Current Liabilities". This account(s) will reduce the amount of current liabilities. You can have multiple or none of this account(s).
Example accounts: Discount on Notes Payable
Contra (Non-current Liabilities)
This account(s) will be listed in the Balance Sheet after "Non-current Liabilities". This account(s) will reduce the amount of non-current liabilities. You can have multiple or none of this account(s).
Example accounts: Discount on Bonds Payable
Owner's Equity (Capital)
This account(s) will be listed in the Balance Sheet. You must have a minimum 1 account of this type.
Example accounts: Owner's Equity, Common Stock, Preferred Stock, Paid in Capital, Paid in from Treasury Stocks
Owner's Equity (Drawing)
This account(s) will be listed in the Balance Sheet. This account will reduce the amount of "Owner's Capital". You can have multiple or none of this account(s).
Example accounts: Owner's Drawings, Treasury Stocks