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Accountant

Chart of Accounts

The Chart of Accounts (CoA) is the master list of all ledger accounts in your books. Every transaction in ABSS — invoices, bills, payments, journals — posts to one or more accounts in your CoA. It forms the foundation of all financial reports.

ABSS pre-loads a default CoA

When you create a new company in ABSS, a standard Indian CoA is pre-loaded with GST-specific accounts (IGST Payable, CGST Payable, SGST Payable, ITC accounts). You can add, rename, or merge accounts — but you cannot delete system accounts used by ABSS for tax postings.

Account types and structure

ABSS uses a 4-digit account code structure. The first digit identifies the account type. Accounts are grouped into 5 types aligned with the accounting equation: Assets = Liabilities + Equity + (Income – Expenses).

Assets1xxx
Account NameCodeSubtype
Cash in Hand1001Current Asset
Bank – HDFC Current Account1010Current Asset
Accounts Receivable (Debtors)1100Current Asset
Closing Stock1200Current Asset
Machinery1500Fixed Asset
Vehicles1510Fixed Asset
Liabilities2xxx
Account NameCodeSubtype
Accounts Payable (Creditors)2001Current Liability
GST Payable (Output IGST)2100Current Liability
GST Payable (Output CGST)2101Current Liability
GST Payable (Output SGST)2102Current Liability
TDS Payable2200Current Liability
Term Loan – Bank2500Long-term Liability
Income4xxx
Account NameCodeSubtype
Sales – Goods4001Revenue
Sales – Services4002Revenue
Sales Returns4010Contra Revenue
Interest Income4100Other Income
Discount Received4200Other Income
Expenses5xxx
Account NameCodeSubtype
Cost of Goods Sold (COGS)5001Direct Expense
Salaries & Wages5100Indirect Expense
Office Rent5200Indirect Expense
Freight & Courier5300Indirect Expense
Bank Charges5400Indirect Expense
Depreciation5500Indirect Expense
Equity3xxx
Account NameCodeSubtype
Owner's Capital3001Capital
Retained Earnings3100Reserves
Partner Drawings3200Drawings

Common tasks

Add a new ledger account

  1. 1

    Go to Accountant → Chart of Accounts

  2. 2

    Click 'Add Account' (top right)

  3. 3

    Choose the parent account type (Assets / Liabilities / Income / Expenses / Equity)

  4. 4

    Enter the account name and assign an account code

  5. 5

    Select the subtype (Current Asset, Fixed Asset, etc.)

  6. 6

    Click Save — the account is now available in all transaction forms

Merge two accounts

  1. 1

    Go to Accountant → Chart of Accounts

  2. 2

    Open the account you want to merge (the one to be retired)

  3. 3

    Click 'Merge' in the account actions menu

  4. 4

    Select the target account into which all balances will be transferred

  5. 5

    Confirm — ABSS moves all historical transactions to the target account and archives the source account

Set opening balance for an account

  1. 1

    Go to Accountant → Chart of Accounts

  2. 2

    Open the ledger account

  3. 3

    Click 'Opening Balance' tab

  4. 4

    Enter the balance as of your migration date (debit or credit)

  5. 5

    Save — the opening balance appears in the Trial Balance immediately

Best practices

Keep the number of accounts manageable — too many accounts make reports hard to read. Aim for under 150 accounts for most SMEs.

Never delete system accounts (marked with a lock icon). These are used for GST postings and deleting them breaks tax calculations.

Use sub-accounts for detailed tracking — e.g., create 'Expenses → Travel → Airfare' and 'Expenses → Travel → Hotel' under a parent 'Travel Expenses' account.

Set opening balances for all accounts before you start entering transactions. An incorrect opening balance affects your Trial Balance and Balance Sheet for the entire year.

Before sending books to your CA, run a Trial Balance and verify that Debits = Credits. If they don't match, look for unposted or partially-saved transactions.