Now that each account has been classified, assign account numbers to each account. You must assign account numbers so that accounts receivable, accounts payable, and expense accounts are in alphabetical order (by last name, in the case of accounts receivable). Use 3-digit account numbers and number the accounts within a division by 10s.

Answer:

Assets

Account _________________ Account Number

Cash ________________________110

Accounts Receivable - A.Karn _____120

Accounts Receivable - J.Chin _____ 130

Supplies _____________________ 140

Prepaid Insurance______________ 150

Liabilities

Account _________________ Account Number

Accounts Payable - River Company _210

Accounts Payable - Sharma Supply _220

Capital

Account _________________ Account Number

Kajal Chauhan, Capital ___________310

Kajal Chauhan, Drawing __________320

Income

Account _________________ Account Number

Sales ________________________ 410

Expenses

Account _________________ Account Number

Advertising Expense _____________510

Charitable Expense ______________520

Insurance Expense ______________ 530

Postage Expense _______________ 540

Rent Expense __________________ 550

Explanation:

The first digit of the account number of Asset will start with 1. It means 1 represents the Assets section.

The first digit of the account number of Liabilities will start with 2. It means 2 represents the Liabilities section.

The first digit of the account number of Capital will start with 3. It means 3 represents the Capital section.

The first digit of the account number of Income will start with 4. It means 4 represents the Income section.

The first digit of the account number of Expenses will start with 5. It means 5 represents the Expenses section.

The second digit of each account number specific account. e.g in Asset the Account number 120 is for Accounts Receivable - A.Karn. The second digit 2 represents the account receivable of A.Karn.

Note:

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