Sole Proprietorship Chart of Accounts

by Lori
(Denver, Co, US)

Sole Proprietorship Chart of Accounts

Sole Proprietorship Chart of Accounts

I have a Sole Proprietorship business for aviation maintenance/repair service only. No sales, no parts, no employees.

The business has one checking account and one bank loan on the hangar I work out of. Is below correct at all?

Bank/Cash Acct - asset
Opening balance - equity account
Retained earnings - equity account
Owners equity account
sub acct Owners draw
sub acct Owners contributions
Hangar long term liability account
sub acct Mtg payable
sub acct Mtg interest expense account
Hangar asset acct
Current liability accounts
expense accounts
Revenue/Income acct
other income acct
Fixed assets/depreciation
other assets/notes receivable
Contributions acct
Allocation of 1/4 est taxes to owners draw
account

Please advise,
Thanks!
L

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Dec 12, 2017
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by: Stephanie

Thank you for your question about how to setup a chart of accounts for a sole proprietorship. I have recreated your list in the order it should be shown on the Chart of Accounts and whether or not it would show up on the Balance Sheet (BS) or Profit and Loss (PL) Statement below:

Bank/Cash Acct asset (BS)
Hangar asset acct (BS)
Fixed assets/accumulated depreciation (BS)
Other Assets/Notes Receivable (BS)
Current liability accounts (BS)
Hangar long term liability Account (BS)
Mtg payable (BS)
Opening balance equity account (BS)
Owners equity account (BS)
Owners contributions (BS)
Owners draw (BS)
Allocation of est taxes to owners draw (BS)
Retained earnings equity account (BS)
Revenue/Income acct (PL)
Other Income acct (PL)
Expense accounts (PL)
Mtg interest expense account (PL)

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