Revenue General Ledger Accounts

Sub ledger is an intermediary set of accounts linked to the general ledger.

Revenue general ledger accounts. As shown in the expanded accounting equation revenues increase equity. The revenue account is an equity account with a credit balance. Furthermore the company chart of accounts is basically a filing system for categorizing all of a company s accounts as well as classifying all transactions according to the accounts they affect. A general ledger account is an account or record used to sort store and summarize a company s transactions.

In the above table the general ledger expense accounts group has the range 600 799 so as an example the electricity expense might have the code 640. 6100 6300 revenue from fee for service courses excluding both commercial and external agencies fee for service course. Posting to the general ledger. General ledger accounts are found in the general ledger of a business.

Sometimes subsidiary ledgers are used as an intermediate step before posting journals to the general ledger. Revenue by account number general ledger account number general ledger account name. For instance cash activity is usually recorded in the cash receipts journal. Unlike other accounts revenue accounts are rarely debited because revenues or income are usually only generated.

A business can have as few as 5 accounts ledgers and a large business can end up with 100 s of accounts ledgers. These accounts are arranged in the general ledger and in the chart of accounts with the balance sheet accounts appearing first followed by the income statement accounts. The accounts are the place where all the financial transactions of a business are contained. In accounting a standard chart of accounts is a numbered list of the accounts that comprise a company s general ledger.

The business updates the ledger by copying each of the entries in the books of prime entry to the appropriate account in the ledger. The central file that contains a comprehensive list of all of a bank s loans and borrower discounts. Subsidiary ledgers include selective accounts unlike the all encompassing general ledger. As a general ledger gl records all of the transactions that affect a company s accounting elements such as assets liabilities equity expenses and revenue it is the data source used to construct the balance sheet balance sheet the balance sheet is one of the three fundamental financial statements.

This ledger can be subordinate to a bank s general ledger accounting system. These statements are key to both. Examples of sub ledger are customer accounts vendor accounts bank accounts and fixed assets. This means that a credit in the revenue t account increases the account balance.