Account

An Account is one head in the Chart of Accounts, either a group that only totals its children or a ledger that receives postings. Each has a root type (Asset, Liability, Equity, Income or Expense), an account number such as 2261, and sometimes an account type like Bank, Receivable or Tax that tells documents how to use it. Every GL Entry names exactly one ledger account, so the balance of an account is the sum of its debits less its credits over the chosen dates. Share Capital - YFF is an Equity ledger carrying Rs 25,00,000. Posting to a group is impossible, and renaming a ledger renames it on every past entry.

Account balance = Opening balance + Debits - Credits within the period (sign reversed for liability, equity and income)

1. 01Go to Accounts Setup > Chart of Accounts and expand the tree to the right group.
2. 02Hover the group and click Add Child; type the name, number and account type.
3. 03Save. The ledger appears with the company abbreviation, for example Office Rent - YFF.
4. 04Pick it on a Journal Entry, Purchase Invoice row or Payment Entry to post to it.
5. 05Open the account and click View Ledger to read its entries and running balance.

Open Accounts > Chart of Accounts to add or rename; set the account type for Bank, Receivable and similar.

Share Capital - YFF, an Equity ledger, carries Rs 25,00,000.