---
title: "Chart of Accounts"
space: "Books"
url: "https://docs.frappe.io/books/chart-of-accounts"
updated: "2026-01-30"
---

Chart of Accounts is used to refer to the organization of all accounts in a financial system.

Navigate to the chart of accounts from the Sidebar: `Setup > Chart of Accounts`

Organization of Accounts
------------------------

There are two types of accounts in the Chart of Accounts

1. **Ledger Accounts**: Accounts that are used in the transactional entries and that appear in the General Ledger.
2. **Group Accounts**: Accounts that are used to group other Group and Ledger accounts.

### Root Accounts

At the upper most level there are 4 Group Accounts. These can be thought of as the *Root Accounts*. These *Root Accounts* have all the other accounts grouped underneath them.

[![Root Accounts](https://github.com/frappe/books_docs/raw/master/docs/miscellaneous/images/root-accounts.png)](https://github.com/frappe/books_docs/blob/master/docs/miscellaneous/images/root-accounts.png)  


::: info Number of Root Accounts The number of Root Accounts depends on your country's CoA.

For example: The Indian CoA has only 4. Whereas the Standard Chart of Accounts has 5. :::

Each Root Account is either a Credit or a Debit account. If a Root Account is a Credit account all the accounts underneath it will also be a Credit Account. ([Credit and Debit](https://github.com/frappe/books_docs/blob/master/basics/accounting-basics#credit-and-debit))

### Other Accounts

Clicking on a Root Account will reveal the accounts other it. This goes for the other Group Accounts too.

[![Other Accounts](https://github.com/frappe/books_docs/raw/master/docs/miscellaneous/images/other-accounts.png)](https://github.com/frappe/books_docs/blob/master/docs/miscellaneous/images/other-accounts.png)  


Clicking on a Ledger Account will open that accounts Quick Edit Form where the details of the account can be viewed.

[![Ledger Account](https://github.com/frappe/books_docs/raw/master/docs/miscellaneous/images/ledger-account.png)](https://github.com/frappe/books_docs/blob/master/docs/miscellaneous/images/ledger-account.png)  


Creating a New Account
----------------------

To create a new account

1. Hover over a Group Account
2. Click on Add Account or Add Group

[![Create a New Account](https://github.com/frappe/books_docs/raw/master/docs/miscellaneous/images/create-new-account.png)](https://github.com/frappe/books_docs/blob/master/docs/miscellaneous/images/create-new-account.png)  


This will display a new row where you can enter the account name. After you are done press Save to create the account.