First of all, we must consider the structural units of accounts

Chart of Accounts consists of classes, divisions, groups, and proper accounts. These structural units of different levels of detail on the elements of accountability. At the class level is not provided substantive information. The structural unit of "class" has a different load. Allocation of classes allows you to combine in a single homogeneous class by type of assets and liabilities according to economic substance of operations performed by the bank. All the minimum necessary information is available at the level of these units, as sections, they are also called second-order accounts. More information is available for groups - an account of the third order. Deepening of detail achieved in the accounts of the fourth order. Each class includes accounts II, III and IV of the order. They all belong to the synthetic accounts and different levels of detail information about the object records. The Plan accounts accounts are placed in ascending order of their numbers. Note how the numbering based accounts. Understanding the approach used in the numbering of invoices, you can quickly and easily locate information about certain types of assets, liabilities, equity, revenues and expenses in the financial statements. The classes are numbered from 1 to 9 and consist of the same sign. Numbering Accounts II, III and IV of the order by adding the same sign (from 0 to 9) to the right in accordance with the number of class II and III accounts-order-to-one classes (classes) of numbers, counting the II (section) - two-digit numbers ; account of the III (group) - three-digit numbers, counting the order of IV - four-digit number. Topic: The role of accounting in the management of the bank, its types and purpose | Tags: Chart of Accounts