Accounts Are Classified In The Ledger And Trial Balance In What Order

Accounts Are Arranged In The Ledger And Trial Balance In Which Order?

The order in which Accounts are classified / categorized in the Ledgers and Trial Balance preparation is in accordance with their appearance in the Financial Statements. This order is followed Generally in order to prepare financial statement.

Firstly, Balance Sheet Accounts (Assets, Liabilities And Stockholders’ Equity or Permanent Accounts) are organized and then Income Statement Accounts (Revenues & Expenses or Temporary Accounts)  are arranged in the Ledgers and Trial Balance.

(i) Assets

(ii) Liabilities

(iii) Stockholders’ Equity

(iv) Revenues

(v) Expenses

Explanation: The arrangement of accounts in ledgers and trial balance  are as: Firstly, Assets are categorized. Secondly, Liabilities. Thirdly, Shareholders’ Equity. Fourthly, Revenues and Fifthly and finally expense accounts are classified in the ledgers preparation.