Sub Heads

Grouping of Accounts Revenue Liabilities Assets Expenses Fixed Assets Current Assets Capital Non-current liabilities Current liabilities Sales Other income Direct Expenses Indirect Expenses . . Grouping of accounts In any organisation, the main unit of classification is the major head which is further divided into minor heads. Each minor head may have number of sub-heads.

After classification of accounts into various groups namely, major, minor and sub-heads and allotting codes to each account these are programmed into the computer system. A proper codification requires a systematic grouping of accounts. The major groups or heads could be Assets, Liabilities, Revenues and Expenses. The sub-groups or minor heads could be capital, non-current liabilities, current assets, sales and so on.

In general, the basic classifications of different accounts embodied in a transaction are resorted through accounting equation.