> ## Documentation Index
> Fetch the complete documentation index at: https://docs.chift.eu/llms.txt
> Use this file to discover all available pages before exploring further.

# Ledger accounts and chart of accounts

### Definition

A **ledger account** is a single entry within the Chart of Accounts. It tracks one specific category of financial activity — for example "Rent expense", "Cash", or "Accounts receivable".

Every debit and credit line in a journal entry references a ledger account. This is how all transactions are classified and how balances accumulate.

### Structure

Each ledger account has:

* An **account code** (e.g. `610`)
* A **name** and optional description
* An **account type**: Asset, Liability, Equity, Revenue, or Expense
* A running **balance** updated by each journal entry that references it

### Relationships

* Belongs to the **Chart of Accounts** of a specific folder.
* Referenced by **journal entry lines** (debit and credit sides).
* Referenced by **invoice lines**, which generate journal entries behind the scenes.
* **Partners** can have default ledger accounts for automatic posting.

### Endpoints

| Method | Endpoint                                                                                   | Description                                          |
| ------ | ------------------------------------------------------------------------------------------ | ---------------------------------------------------- |
| POST   | [Create Ledger Account](/api-reference/endpoints/accounting/create-ledger-account)         | Create a new ledger account                          |
| POST   | [Get Balance of Accounts](/api-reference/endpoints/accounting/get-the-balance-of-accounts) | Retrieve the balance for one or more ledger accounts |
| GET    | [Get Chart of Accounts](/api-reference/endpoints/accounting/get-chart-of-accounts)         | Retrieve the full chart of accounts                  |

***

## Chart of accounts

The **Chart of Accounts (CoA)** is the complete, ordered list of all ledger accounts a company uses to record its financial transactions.

Think of it as the index: the Chart of Accounts names and organizes every account, while each ledger account holds the actual transaction records and balances.

### Structure

* Accounts are organized by code or numbering range.
* Can be hierarchical: main accounts with sub-accounts.
* Includes account type classifications: Asset, Liability, Equity, Revenue, Expense.
* Can be customized per folder while following the general framework.

### Relationships

* Each **folder** has exactly one Chart of Accounts.
* The CoA contains all **ledger accounts** for that entity.
* It is the foundation for financial statements (balance sheet, P\&L).

### See also

* [Journal entries](/unified-apis/accounting/concepts/journal-entry)