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Accounts are the records of the company’s movements at an economic level. Therefore, we can say that we can maintain any accounting movement that influences the company.

The leading utility of accounting accounts is to offer detailed information on the company chronologically, specifying monetary items’ origin and destination. These items may be part of assets and liabilities or equity simultaneously, thanks to the principle of double-entry.

Types of ledger accounts

The types of accounting accounts consist of nine large groups. According to the PGC (General Accounting Plan), in Spain, we can find the following groups of accounts:

Group 1: Basic Financing. We can record movements directly related to the capital stock, reserves, or long-term debts in this group.

Group 2: Non-Current Assets. Groups account that cover aspects such as machinery, intellectual property, patents, and even bonds.

Group 3: Stock. It tries to control the movements that have to do about merchandise, raw materials, or semi-finished products.

Group 4: Creditors and Debtors for Commercial Operations. It consists of recording any movement at the level of suppliers, clients, creditors, or value-added taxes (VAT).

Group 5: Financial Accounts. This group consists of short-term debts or treasury, among other accounts.

Group 6: Purchases and Expenses. This group is related to inventory acquisition, its variation, taxes, external services, etc.

Group 7: Sales and Income. On the other hand, this includes positive inventory variation actions and current and non-current income.

Group 8: Expenses Charged to Equity. Although they are little used accounts on a day-to-day basis, they are necessary when recording a variation in the company’s net worth.

Group 9: Income Attributed to Equity. Ditto, what was stated in the previous group, only that a positive accounting adjustment is possible in this case.

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