Recommended Chart of Accounts for Distributor

Account Head Non current assets Property, plant and equipment Vehicles Furniture and fixture Office equipment Other intangible assets Softwares HoneyComb Accounting Software Investments Security and deposits Current assets Inventories Trade receivables Other current assets Loans and advances Rent paid in advance Loans to employees Advance against salaries Advance against expenses Advance payments to vendors Advance tax Cash and cash equivalents Cash at bank Cash on Hand Petty cash Equity Capital Retained earnings Non current liabilities Long term borrowings Current liabilities Trade and other payables Trade payables Other payables Payroll liabilities Tax collected / deducted Short term borrowings Bank overdraft Current tax payable Short term provisions Accrued expenses Revenue Sales Account Type Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Equity Equity Equity Liability Liability Liability Liability Liability Liability Liability Liability Liability Liability Liability Liability Liability Income Income Account Nature Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit

Cost of sales Purchases Courier inward expense Other income Interest income Distribution costs Sales staff salaries Commission expense Vehicle running expenses Courier outward expense Postage and shipping charges Packing / Labeling expenses Administrative expenses Office staff salaries Rent expense Utilities Electricity expense Telephone expense Sui gas expense Water and allied charges Internet expense Marketing / advertisement expense Legal / Professional expense Royalties / License fee Depreciation / Amortization expense Repair and maintenance expense Renovation expense Bank charges Office supplies Insurance expense Entertainment expense Other expenses Donations / Zakat Spoilage and damages Finance costs Income tax expense

Direct Expense Direct Expense Direct Expense Income Income Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense

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