An account code is a unique number or combination of numbers and letters used to identify a specific account in the accounting system.

It is part of the chart of accounts and helps in:

Classifying transactions

Recording entries correctly

Preparing financial reports easily

For example:

1001 – Cash Account

2001 – Bank Loan

4001 – Sales Revenue

In simple terms, an account code is a reference number used to organize and track different accounts in bookkeeping.