0.4The general chart of accounts (PCG)
The essentials in 30 seconds
- A chart = a standardised list of numbered accounts, for consistent, comparable accounting.
- Classes 1–5 = balance sheet (equity, fixed assets, inventory, third parties, cash); 6 and 7 = income statement (expenses, income).
- Reflex: the first digit gives the class (512 = bank) — grasp the logic, don't memorise numbers.
Running case — Rachid files transactions in the right boxes
Facing his invoices, Rachid doesn't know what goes where. His accountant shows him the map: a goods purchase in class 6, a sale in class 7, the bank in class 5, a supplier debt in class 4. Rachid can now guess each transaction's family before even looking for the exact number.
Final episode of cases 0.1–0.3 — Rachid holds the map of entries.
1. A standardised list of accounts
For consistent and comparable accounting, a chart of accounts is used: a standardised list of numbered accounts. In France, the PCG; other countries have their own frameworks (and IFRS internationally).
Each type of transaction has its own account, identified by a code.
2. Classes 1 to 7
The PCG organises the accounts into classes. Classes 1 to 5 = balance sheet: 1 (equity), 2 (fixed assets), 3 (inventory), 4 (third parties: customers, suppliers, State), 5 (financial: bank, cash).
Classes 6 and 7 = income statement: 6 (expenses), 7 (income). The first digit gives the class (e.g. 512 = bank).
3. Grasp the logic, not the numbers
Finding your way — knowing which class to assign a transaction to — is a basic skill: it is the "map" that lets you post entries correctly.
No need to memorise every number: you need to grasp the logic of the classes.
🔎 Concrete example — 🔎 Concrete example — Assign a transaction to its class
The accountant's map.
A purchase of goods → class 6 (expense).
A sale → class 7 (income).
The bank → class 5 (financial). A supplier debt → class 4 (third parties).Result: the indispensable map for posting entries.
Reflex: guess the family by the logic, find the number if needed.
Section vocabulary
- Chart of accounts
- Standardised list of numbered accounts serving as a common framework for recording transactions.
Simple example: Rachid and his accountant use the same list to sort each invoice.
What it is not: accounts invented at random for each transaction.
Reflex: for each transaction: which family, then which number?
- PCG
- Plan Comptable Général: the French accounting framework (each country has its own; IFRS internationally).
Simple example: The 512 (bank) Rachid reads in his course follows PCG logic.
What it is not: a universal framework identical in every country.
Reflex: outside France, check the local framework.
- Account class
- Major category of the chart (1 to 8), given by the first digit of the account number.
Simple example: Any account starting with 6 is an expense.
What it is not: the transaction's amount or date.
Reflex: read the first digit first.
- Balance-sheet accounts
- Classes 1 to 5 (equity, fixed assets, inventory, third parties, cash), shown on the balance sheet.
Simple example: Rachid's bank (5) and supplier debt (4).
What it is not: a purchase (class 6) or a sale (class 7).
Reflex: 1 to 5 = balance sheet, snapshot of assets.
- Management accounts
- Classes 6 (expenses) and 7 (income), shown on the income statement.
Simple example: The SME's goods purchases (6) and sales (7).
What it is not: a loan (class 1) or inventory (class 3).
Reflex: 6 and 7 = income statement, the year's film.
In practice — In practice — Finding your way in the chart of accounts
- Remember the logic: each type of transaction has a numbered account; the first digit gives the class.
- Memorise the balance sheet classes: 1 (equity), 2 (fixed assets), 3 (inventory), 4 (third parties), 5 (financial).
- Memorise the income statement classes: 6 (expenses), 7 (income) — those of the income statement.
- Practise assigning a transaction to its class (e.g. a purchase → class 6, a sale → class 7, the bank → class 5).
Ready-to-say script — asking for the class before the number (30 s)
“For this invoice, don't give me the number yet: just tell me the class — balance sheet or income statement? 4, 5, 6 or 7? I want to guess the family myself first.”
Say it to your accountant with each invoice: practise class logic.
Copy-paste template — linking a transaction to its class
TRANSACTION: _______________
BALANCE SHEET (1–5) or INCOME STATEMENT (6–7)? _______________
CLASS (1 / 2 / 3 / 4 / 5 / 6 / 7): _______________
EXACT ACCOUNT (to look up): _______________
CHECKED WITH: _______________Small business / tight budget
A one-page memo is enough: 1 to 5 = balance sheet, 6 and 7 = income statement — pinned on the wall by the binder.
Algerian SME
Rachid maps the logic with his accountant onto the Algerian SCF: same balance-sheet / income-statement families, local numbers to find in the framework.
Accounting software
Software often suggests the account: check the suggested class fits the logic before validating the entry.
Quick revision
Quiz yourself on 10 invoices: purchase, sale, bank, debt, stock — name the class in 5 seconds each.
✓ Best practices
- Learn the logic of the classes rather than every number.
- Link each class to its document: 1-5 → balance sheet, 6-7 → income statement.
- The software often suggests the account; understanding remains essential.
✗ Common pitfalls
- Learning every account number by heart (discouraging).
- Confusing balance sheet accounts (1-5) and income statement accounts (6-7).
- Applying the French PCG to another country without checking the local framework.
Key takeaways
- The chart of accounts is a standardised list of numbered accounts (in France: the PCG; IFRS internationally).
- Classes 1 to 5 = balance sheet (equity, fixed assets, inventory, third parties, financial).
- Classes 6 and 7 = income statement (expenses, income).
- The first digit gives the class; you need to grasp the logic, not memorise every number.
48h Challenge — apply tomorrow
Take 5 real documents (purchase, sale, bank statement, supplier invoice, stock ticket) and note their class without looking up the number. Have your accountant validate.
- I can name classes 1 to 7 and their document.
- I can link purchase, sale, bank and debt to their class.
- I have sorted 5 real documents by class.
Frequently asked questions
Do you have to learn every account number by heart?
No, definitely not. What matters is understanding the logic of the classes (1 to 7) and knowing where to look. With the logic, you can guess the family: a purchase of goods is an expense (class 6), a sale is income (class 7), a bank account is financial (class 5), a supplier debt involves third parties (class 4). The precise numbers (607 "purchases of goods", 411 "customers") are learned with practice and found in the chart of accounts or the software (which often suggests the account). Focus on understanding (which broad category the transaction belongs to) rather than rote learning.
Is the chart of accounts the same in every country?
No. Each country generally has its own framework (the PCG in France, other plans elsewhere such as the OHADA system in part of Africa). There are also the IFRS, international standards used notably by large listed groups. But the underlying logic is very similar everywhere: numbered and classified accounts, a balance sheet/income statement distinction, double-entry bookkeeping. If you understand the logic with the PCG, you will adapt to another framework without starting from scratch — only the numbers and some rules change. Outside France, refer to your country's chart of accounts.
The chart's classes 6 and 7 cover…