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What I Need to Know?

You need to know a company's chart of accounts before you can open the account.  You will be learning a how to complete a ledger, which works similarly to the table of contents for a book, but for a business. Opening an account in your ledger is similar to opening an account in a bank. You will have a name and account number, but no money in an account unless you deposit something.
The chart of accounts enables you to open up each page in the ledger to prepare a record of money going in and money going out of a business.

Why it's important?

The account numbers are used to track all transactions. Much easier to follow a list that reflects a set of rules. This is why we use a chart of accounts. It would be very difficult to keep track of a businesses transactions if every person who used the business had the same name. It's important to set up the ledger accurately to reflect what the business needs. 

General Ledger

A general ledger is made specific to each business it's meant to record transactions, such as a general contracting business will have different accounts than that of a hair stylist. The role of an accountant is to establish a record keeping system that can be used to track the financial position of a company's monthly transactions.  

Opening Accounts into General Ledger

The following image is an example of a chart of accounts for Gupreet's Snow Removal
The accountant has set up the accounts for assets to begin with a 100X numbering system. The liabilities, owner's equity, revenue, and expenses also have special numbers associated with each account. 

With the chart of accounts we can move forward to opening an account as part of the General Ledger.

Open a Google Sheet and input the following information to create a Chart of Accounts for Gupreet's Snow Removal.

Opening Accounts Practice

Refer to the image and the Chart of Accounts to create a new tab named ASSETS.

1. Name the account and account number as it relates to the Chart of Accounts you created on the previous tab.
2. Make sure to include columns, titles, account numbers for each asset.
3. Open another tab and input the Liabilities following the same format used from the Assets page.
4. Add a new tab for each account.
5. Now, you will practice using the Opening Accounts skills to create a Chart of Accounts from a supplied balance sheet, and create a Opening account for each Asset, Liabilities, Owner's Equity, Revenue, Expenses.

6. You will download the files from the corresponding Google Classroom folder to complete a Opening Account for Koch Moving, Fanci Foods, Choo T.V.

7. Upload a copy of the completed assignment to the google classroom for a mark.

Learn More @ ALIS 
Alberta Careers Learning & Employment
to explore more about Accounting Professionals (wages, education, potential job posting)

ALIS Alberta

Assignment:

Go to the Google classroom and complete the Financial Statements material for OPENING ACCOUNTS PRACTICE 
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