Maintain Chart of Account

Chart Of Account

 “A chart of account  the names of accounts that a company has identified and made available for recording transaction in a general ledger. A company has the flexibility to tailor its chart of account to best suit its needs including adding accounts as needed”

Maintain a Chart of Accounts
When we start any new company we have to enter the data in the records and for entering the data we must have chart of accounts for entering the data because we build a new company so we maintain our own charts of account, First we open Peachtree software by clicking on it then a new window is open.

A new window appears and a “maintain button” is appear in menue bar then click on it and a new window will appear.

 This window consists of three contents and these are:

 The first content is Account ID. We have to fill it with an ID like
108,109,200 And such forth.

The second content is description. Its contains the Assets, Liabilities etc like cash, equipment, accounts payable etc.

The third one is account type that which type of account belongs in the above in the Description. Then enter the information in three boxes and then press “Alt+S” to save it. When the account is save the cursor again go in  first box.

We can see our save accounts by clicking on the button. All the accounts which we have save before, all appears in a list.

 If we want to delete an account then first we search that account as we did above then press the button “Delete” then the new window is appeared.

That ask “Are you sure you want to delete this record ”

If you want to change id of your current chart of account and you already enter the transaction in that account then press on “Change ID”.

How to enter Beginning balances:

To enter beginning balances first click on the right side option and that is “Beginning Balances”.

By clicking on it a new small window is opened and you have to select the time period that from which month you starts entering data and ends it. And you select anyone from the list and then press Ok.

After pressing ok a new window is opened. Now enter your data on it and the balances of Assets, Expenses and the balance of liabilities, Equity, Income  must equal and if these balances are not equal then the difference is going in beginning balance equity, and check your amounts again.

When you maintain chart of account you must check the Retained Earning account because when you enter account on peach tree, the system show you net income by less expenses from income, and post the net income automatically in Retained Earning ledger so you must check Retained Earning accounts first.
We can check Retained earning ledger of our company on peach tree by following process:

We can check our company chart of account by using  

“ look up” button.