Chart of Accounts is the list of all general ledger accounts which enables the recording of double entry to keep the accounting equation in balance at any point in time. Due to the arrival of modern accounting systems, various kinds of numbers are allotted to various heads to easily manage the accounting system. As a result, a chart of accounts is available in the sorted format for easy understanding and classification of the ledger into assets, liabilities, equity, income, and expenses.
Normally, the chart of accounts starts with balance sheet items first then income items. Typical chart of accounts look like this in the modern accounting software:
| Name | Code | Statement | Group | Sub-Group | Nature |
| Checking Account | 100 | Balance Sheet | Current Assets | Cash & Cash Equiv. | Debit |
| Saving Accounts | 110 | Balance Sheet | Current Assets | Cash & Cash Equiv. | Debit |
| Accounts Receivable | 200 | Balance Sheet | Current Assets | Cash & Cash Equiv. | Debit |
| Equipment | 700 | Balance Sheet | Non-Current Assets | Property, Plant & Equipment | Debit |
| Accounts Payable | 1000 | Balance Sheet | Current Liabilities | Accounts Payable | Credit |
| Revenue | 4000 | Income Statement | Income | Income | Credit |
| Utility Expenses | 5000 | Income Statement | Operating Expenses | Operating Expenses | Debit |