Ledger Accounts

A ledger account contains all the transactions of a business. Information stored in a ledger account has the opening and closing balances.Transactions may invoice recording invoices,adjusting entries,billing and making payments.The information is then summarized in trial balance report,balance sheet

Each ledger account depending on account type has a code which is preassigned and is immutable.

CodeAccount type
1XXXXAll assets
2xxxx Liabilities
3xxxxEquity
4xxxxRevenues/Income
6xxxxxExpenses
Phot courtesy of https://www.beginner-bookkeeping.com/general-ledger-account.html

How to post on Ledger Accounts

  • Navigate to the Financials Module
  • Select General Ledger
  • Click on the Ledger Transactions
  • Navigate and click on the ADD button
  • Fill in the Account Details e.g

Other probable account for an isp setup

codeLedger AccountAccount TypeDescription
1-000Account ReceivablesAccount Receivable(Asset)Invoiced internet subscription.
1-001Distribution EquipmentFixed Asset
1-002Customer Premise equipment-ReceiversFixed Asset
1-003Customer Premise Equipment-RoutersFixed Asset
1-004Customer Premise Equipment-AccessoriesFixed Asset
1-005Distribution Equipment-AccessoriesFixed Asset
6-000Internet Subscription ExpenseExpense
6-001Fuel ChargesExpense
6-002Airtime ExpensesExpense
6-003Netpap Subscription ExpenseExpense
6-004Water ExpensesExpense
6-005Rent ExpenseExpense
6-006Salaries & Wages ExpenseExpense
6-007Marketing ExpenseExpense
1-006accumulated depreciation on EquipmentAsset
4-000Internet Subscription IncomeIncomeOthers could be installation,support,cctv installation etc,Networking
6-008Electricity ExpensesExpense
3-000Retained EarningsRetained Earnings(EquityA portion of income that is retained from net income
1-007Cash at HandAsset
1-008Equity BankAssetBANK ACCOUNT
1-009Paybill BankAssetMPESA BANK ACCOUNT
1-010KCB BankAssetBank account
2-000Loan from BankLiabilityA long term/short term loan from individual or banking institution
2-001Account PayablesLiabilityUnallocated amount or money to be paid
3-001EquityEquityvalue of share/capital invested
These are business-centric and can be added at will.We advise there be an accountant or trained CPA Holder to assist /advise with entries

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