The chart of accounts organizes every posting into a consistent list. Number ranges group assets, liabilities, equity, revenue and expenses, but the account type determines the financial statement treatment. A bank deposit is not an account type: it might settle a receivable, record revenue, recognize borrowing or return money to the owner.
Create accounts only when they help explain the business. Use a distinct name and an appropriate detail type. A refundable security deposit belongs in assets; loan principal belongs in liabilities. When an account is no longer used, make it inactive rather than deleting its history. Inactive accounts must remain available in historical reports and prior transactions.