Difference between chart of accounts and account

Difference between chart of accounts and account

1.Definition

Account represents an individual a head in the accounting system i.e income, liability, asset or expense. Where the charts of account is a complete list of all accounts maintained in accounting system.

2.Purpose

Account is a used for basic classification of transaction at first place. Where the charts of accounts are used to enter and track the transaction and manage the presentation of information.

3.Books of account

Account is a primary part of books of account where the charts of account are not part of books of accounts.

4.Mandatory

An account is a mandatory requirement of the accounting system and financial statement cannot be prepared without account where the chart of account are not mandatory requirement and financial statement can still be prepared without chart of accounts.

5.Trial balance

Account balance summary appear in the trial balance and each account has a relevant code written at the start.

6.Presentation

The account is presented in T shape also known as T account where the chart of account are presented and maintained as list of accounts.

Example of Account

                                                                                    Sales Ac

Date		Amount Dr	Date		Amount Cr
10 /10/2012				William	1000
	Balance	3000		Cash	2000

Example of chats of accounts

4100       Salary

4200       Rent

5100       Sales