Chart of accounts is an organized list of accounting titles used in the general ledger of the

organization. It is composed of several accounts which describe the related economic transaction
and events of the business. Presented first in the chart of accounts is the balance sheet accounts
which include assets, liabilities and equity accounts. It is followed by the income statement
accounts which are the revenue and expense accounts.

In order for Uncle Tino’s Smokehouse and Grill to facilitate recording, ordering and
cross-referencing, every account was given account number and title. Current assets starts with
1; Noncurrent assets with 2; liability accounts with 3; owner’s equity with 4; revenue accounts
starts with 5; and lastly, the expense accounts with 6.

ASSETS

Current Assets

1010 Cash on Hand

1020 Cash in Bank

1030 Accounts Receivable

1040 Allowance for Doubtful Accounts

1050 Petty Cash Fund

1060 Advances to Employees

1070 Supplies Inventory

1080 Prepaid Expense

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 Noncurrent Assets

1090 Kitchen Equipment

1100 Accumulated Depreciation – Kitchen Equipment

1200 Furniture and fixtures

1300 Accumulated Depreciation – Furniture and fixtures

LIABILITIES

2010 Salaries Payable

2020 SSS Contribution Payable

2030 PhilHealth Contribution Payable

2040 Pag – IBIG Contribution Payable

2050 Utilities Payable

2060 Withholding Tax Payable

OWNER’S EQUITY

3010 Anne Sheryll Po, Capital

3020 Anne Sheryll Po, Drawing

REVENUES

4010 Sales

4020 Miscellaneous Income

4030 Income Summary

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 EXPENSES

6010 Supplies Expense

6020 Salaries Expense

6030 SSS Contribution Expense

6040 PhilHealth Contribution Expense

6050 Pag – IBIG Expense

6060 Rent Expense

6070 Utilities Expense

6080 Repairs and Maintenance Expense

6090 Depreciation Expense –Kitchen Equipment

6100 Depreciation Expense – Furniture and fixtures

6200 Income Tax Expense

6300 Miscellaneous Expense

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 ASSETS

Current Asset

Account Code Account Title Account Description

 Currencies and coins that represent the

undeposited collections of the business

1010 Cash on Hand

 Total currencies and coins that have been

deposited to the bank

1020 Cash in Bank

1030 Accounts Receivable  Payment held for services rendered that

the customers ordered but not paid for

1040 Allowance for Doubtful  Contra asset account that reduces the

Accounts accounts receivable

 Fund established for small expenses in the

business
1050 Petty Cash Fund

 These are the wages paid to the employees

in advance and are expected to be repaid

1060 Advances to Employees
or deductible from their salaries

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  These are the essential items such as, but

not limited to, food-related products and

1070 Supplies Inventory
beverages.

 Consists of expenses paid for by the

business in advance
1060 Prepaid Expenses

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 ASSETS

Noncurrent Asset

Account Code Account Title Account Description

1090 Kitchen  Equipment which is mainly used in the

operation of the business

Equipment

1100  The amount of the kitchen equipment’s

cost which has been allocated to

Accumulated Depreciation
Depreciation Expense since the time it
– Kitchen Equipment
was acquired

1200  Consists of electric fans, extension wires,

counter desk, tables, chairs, light bulbs

Furniture & Fixtures
used in the business

1300  The amount of the furniture and fixtures’

cost which has been allocated to

Accumulated Depreciation
Depreciation Expense since the time it
– Furniture and Fixtures
was acquired

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 LIABILITIES

Account Code Account Title Account Description

 Signifies the unpaid salaries of the

2010
employees for the services that they
Salaries Payable
already rendered

 Refers to the SSS Contribution of

2020
the employee and the employer’s
SSS Contribution
share which is still unpaid
Payable

 Refers to the PhilHealth

2030
Contribution of the employee and
PhilHeath Contribution
the employer’s share which is still
Payable
unpaid

 Refers to the Pag - IBIG

2040
Contribution of the employee and
Pag – IBIG
the employer’s share which is still
Contribution Payable
unpaid

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  The amount due for the space
2050
occupied in the building that the
Rent Payable
entity is leasing

 Reports the obligation of the entity

2060
for the unpaid electricity, telephone,
Utilities Payable
water and other bills

 Tax obligations of the entity that is

2070
not yet paid
Withholding Tax

Payable

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 OWNER’S EQUITY

Account Code Account Title Account Description

3010

Po, Capital  Includes money, property or other

assets which are invested as capital

contributions in the business by

Ireneo and Jennifer Versozo, the

owner

3020

Po, Drawing A temporary withdrawal used to record the

amount/money taken out of the business by

the owner for his personal use

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 REVENUES

Account Code Account Title Account Description

4010

Sales  Proceeds earned by the entity from

the sale of merchandise. It can either

be cash or on account

 Refers to the income incurred from

4020
the various sources such as overage
Miscellaneous Income
from the cashier.

Income Summary  A temporary account used

4030
with closing entries

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 EXPENSES

Account Account Title Account Description

Code

 This expense account is used whenever

6010
inventories are sold
Supplies Expense

 This account is used whenever there is

6020
payment for salaries to employees for the
Salaries Expense
services they rendered

SSS Contribution Expense  Pertains to the remuneration for the SSS

6030
Contribution of the employer

 Pertains to the remuneration for the

6040
PhilHealth Contribution of the employer
PhilHealth Contribution

Expense

Pag – IBIG Contribution  Pertains to the remuneration for the Pag –

6050
Expense IBIG Contribution of the employer

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  Expense incurred for occupying the space in
6060
the building where the business is situated
Rent Expense

 Reports the payment for the electricity, water

6070
and other bills
Utilities Expense

 This account shows the cost for repairing and

6080
maintaining the fixed assets of the entity
Repairs and Maintenance

Expense

Depreciation Expense –  The cost of the Kitchen equipment allocated

6090
Kitchen Equipment for the current accounting period

Depreciation Expense –  The cost of the furniture and fixtures allocated

6100
Furniture and Fixtures for the current accounting period

 Tax obligations of the company that are

6200
already paid
Income Tax Expense

Miscellaneous Expense  Refers to the expenses incurred from

6300
various expenditures.

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