tag:blogger.com,1999:blog-20428781911993615602024-02-19T14:50:43.250+05:30AccountsAccounting for beginners and proficient.Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.comBlogger31125tag:blogger.com,1999:blog-2042878191199361560.post-72329513109846651242013-09-12T18:27:00.001+05:302013-09-12T18:27:15.181+05:30Public Provident Fund (PPF)<div dir="ltr" style="text-align: left;" trbidi="on">
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PPF stands for Public Provident Fund – a government backed, long term, retirement saving instrument. With a 15 year lock in, this is the longest horizon for an investment that exists in India. If you are keen on a safe investment, a decent rate of return, tax benefits deduction and tax free interest) and have a long term investment horizon, then the PPF is for you. It is a disciplined investment avenue as your money is blocked for 15 years.</div>
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PPF also offers loan against the account which can help you during occasions like a wedding in the family, further studies of your children, etc. The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,00,000 per annum. The current rate of interest on Public Provident Fund (PPF) is 8.7%, which is compounded annually. A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened. A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.</div>
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No premature withdrawal is allowed for Public Provident Fund (PPF) accounts. Only in the case of the death of a customer, their nominee/legal heir can close the account by submitting the required documents as guided by the Ministry of Finance. Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower. Customers can avail of the loan facility between third financial year to sixth financial year ie. from third financial year upto end of fifth financial year.</div>
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<strong>What is the eligibility for investing under Public Provident Fund (PPF) Scheme, 1968?</strong></div>
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<ul>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.</li>
</ul>
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<strong>5 things one must know about PPF Account</strong></div>
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<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">If somebody has the PPF account which is forgotten or ignored, one can revive this PPF account with paying the pending subscription and penalties.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">One needs to deposit minimum of Rs. 500 per year to make the account active. If somebody fails to deposit the minimum amount, a penalty of Rs. 50 per year will be charged on the account. In case of reactivation, one need to pay due amount as well as penalty till the date of reactivation.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">Once PPF account is declared inactive, the account holder needs to visit in the bank for make it active for verification process.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">If your PPF account has already matured, it will not earn any interest from the date of maturity. You cannot reactivate such an account, but will have to pay the penalty to claim the proceeds.</li>
<li style="font-size: 1em; line-height: 1.65em; text-align: justify;">If the PPF account is close to maturity, you can apply for an extension, with or without further contribution, for a period of five years from the date of maturity to be able to earn an interest on the accumulated amount.</li>
</ol>
</div>
Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-999341453386158382012-04-06T18:25:00.000+05:302012-04-06T18:25:00.893+05:30General Terminologies of VAT<div dir="ltr" style="text-align: left;" trbidi="on">
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<tr style="height: 29.75pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background: #BFBFBF; border: solid windowtext 1.0pt; height: 29.75pt; mso-border-alt: solid windowtext .5pt; mso-pattern: gray-25 auto; mso-shading: windowtext; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 23.36%;" width="23%">
<div align="center" class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<b><span style="color: black; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">Term</span></b></div>
</td>
<td style="background: #BFBFBF; border: solid windowtext 1.0pt; height: 29.75pt; mso-border-alt: solid windowtext .5pt; mso-pattern: gray-25 auto; mso-shading: windowtext; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div align="center" class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<b><span style="color: black; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">Description</span></b></div>
</td>
</tr>
<tr style="height: 30.95pt; mso-yfti-irow: 1;">
<td style="border: 1pt solid windowtext; height: 30.95pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Input Tax</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 30.95pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">This is the tax paid on purchases</span></div>
</td>
</tr>
<tr style="height: 30.35pt; mso-yfti-irow: 2;">
<td style="border: 1pt solid windowtext; height: 30.35pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Output Tax</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 30.35pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">This is the tax charged on sales</span></div>
</td>
</tr>
<tr style="height: 31.55pt; mso-yfti-irow: 3;">
<td style="border: 1pt solid windowtext; height: 31.55pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Input Credit</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 31.55pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The excess amount of Input tax over
output tax for the current period which is permitted to be set off against
Output tax of subsequent periods is termed as Input Credit.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 4;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">TIN</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Tax Identification Number (TIN) is
the Registration Number given by the department to the dealer at the time of
Registration. This needs to be quoted at all required places where the
registration details are to be provided.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 5;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Tax Invoice</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">This is the Sales invoice format
issued by one Registered Dealer to another. Based on this Invoice, the ITC
can be claimed by the purchasing dealer.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 6;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Retail Invoice</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The Sales invoice format used for
invoicing the Exempted Sales and the Sales made to Unregistered dealers is
termed as Retail Invoice.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 7;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Registered Dealer</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">This term is used to identify a
dealer who is registered either under Voluntary Registration or Compulsory
Registration under the VAT Act. Such dealer can issue tax invoice and also
claim the tax paid on purchases made from other registered dealers as Input
tax credit.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 8;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Unregistered Dealer</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Dealers who are not registered under
the VAT Act are called as Unregistered Dealers (URD). Such dealers cannot
issue tax invoice. They can neither Charge Tax nor Claim Input Tax Credit.</span></div>
</td>
</tr>
<tr style="height: 36.3pt; mso-yfti-irow: 9; mso-yfti-lastrow: yes;">
<td style="border: 1pt solid windowtext; height: 36.3pt; padding: 2.15pt; text-align: center; width: 23.36%;" width="23%">
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Purchase Tax</span></div>
</td>
<td style="border: solid windowtext 1.0pt; height: 36.3pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 76.62%;" width="76%">
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The Tax paid on goods purchased from
unregistered dealers is liable to Purchase Tax. The purchase tax is treated
as Output VAT payable by the dealer as it is a liability. It has to be paid
while making the payment towards VAT liability. Based on the Rules and
Regulations, the Input Tax Credit can be claimed on the payment made towards
Purchase Tax.</span></div>
</td>
</tr>
</tbody></table>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0Delhi, India28.635308 77.2249628.4123265 76.909103 28.858289499999998 77.54081699999999tag:blogger.com,1999:blog-2042878191199361560.post-58552854958019669802012-03-15T20:19:00.003+05:302012-03-19T12:31:06.045+05:30Management Information System<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: left;">
<span style="font-family: Verdana, sans-serif; text-align: justify;">Tally packs enormous power to
generate numerous reports for management information that assists management in
taking correct & timely decisions. This enables rapid growth and better
control of business. The primary concern for Management Information System of a
business is to ensure that the knowledge necessary to drive critical business
processes is available at the right place and time.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;">Management Reports &
Functionalities<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;">Ratio Analysis<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Ratio, in general terminology, is
referred to as a quantitative relation between two numerical values. Ratio
Analysis is a way of expressing relationships between a firm’s financial
numbers.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Ratios are most commonly used to
analyze the financial and operational characteristics of a company. Ratios give
managers a tool to conduct comparison and trend analysis.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Ratios are used to effectively
monitor and plan the following :-</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
</div>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;"> Overall financial health of
the business</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Liquidity position</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Receivables collection</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Payables rescheduling</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Level of exposure to
external borrowings</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Prospective investment
levels</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 7pt; text-indent: -0.25in;"> </span><span dir="LTR" style="font-family: Verdana, sans-serif; text-indent: -0.25in;"></span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Managerial decision making
process</span></li>
</ul>
<span style="font-family: Verdana, sans-serif; text-align: justify;">At centre (unit/division) level,
ratios are one of the best tools to identify:-</span><br />
<div class="MsoNormal">
</div>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">And compare centre wise profitability</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">Centres that require attention in terms of additional investment, cost reduction, human resources etc. </span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">The most and least preferred customers based on their performance</span></li>
</ul>
<div style="text-align: left;">
<span style="font-family: Verdana, sans-serif; text-align: justify;">Ratios are effective management
decision making tools. The following are some of the management decision making
areas, where ratios are used :-</span></div>
<div class="MsoNormal">
</div>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">expansion of business</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">diversification</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">raising additional working capital</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">Additional investment etc. </span></li>
</ul>
<b style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">To view Ratio Analysis</span></b><br />
<span style="font-family: Verdana, sans-serif; text-align: justify;">Go to Gateway of Tally > Ratio
Analysis</span><br />
<span style="font-family: Verdana; text-align: justify;">The
Ratio Analysis Statement is a Single Sheet Performance Report for a selected period. It gives important values and key performance
indicators for the company. It is one report that top management need to
look at to know the state of the company’s financial health and where
it is going in the short term.</span><br />
<span style="font-family: Verdana; text-align: justify;">The Ratio Analysis Screen is divided into two parts: Principal Groups and Principal Ratios.</span><br />
<span style="font-family: Verdana; text-align: justify;">The Principal Groups are the absolute key figures that give perspective to the ratios.</span><br />
<span style="font-family: Verdana; text-align: justify;">Principal
Ratios relate two pieces of financial data to get a comparison that is
more meaningful when compared with ratios of other companies.</span><br />
<strong style="font-family: Verdana; text-align: justify; text-decoration: underline;">Principal Groups and Key Figures</strong><br />
<strong style="font-family: Verdana; text-align: justify; text-decoration: underline;"><br /></strong><br />
<b style="font-family: Verdana; text-align: justify;">Working
Capital</b><span style="font-family: Verdana; text-align: justify;"> – Tally follows the Accountants’ definition and is the Net
Working Capital calculated as Current Assets less Current Liabilities.
Financial Analysts often mean total Current Assets as Working Capital.
This is a measure of the extent the firm is protected from liquidity
problems.</span><br />
<span style="font-family: Verdana; text-align: justify;"><br /></span><br />
<strong style="font-family: Verdana; text-align: justify;">Cash in Hand and Bank Balances</strong><span style="font-family: Verdana; text-align: justify;"> – These are indicated in the Ratio Analysis screen to give the liquidity perspective.</span><br />
<span style="font-family: Verdana; text-align: justify;"><br /></span><br />
<strong style="font-family: Verdana; text-align: justify;">Sundry Debtors</strong><span style="font-family: Verdana; text-align: justify;"> – (Due till today) – These are two figures, total debtors and debtors that are due as on the date of the Statement.</span><br />
<span style="font-family: Verdana; text-align: justify;"><br /></span><br />
<strong style="font-family: Verdana; text-align: justify;">Sundry Creditors</strong><span style="font-family: Verdana; text-align: justify;"> – (Due till today) – These are figures for total creditors and those that are due as on the date of the Statement.</span><br />
<strong style="font-family: Verdana; text-align: justify;">Sales and Purchases Accounts</strong><span style="font-family: Verdana; text-align: justify;"> – These show the trading activity for the period.</span><br />
<span style="font-family: Verdana; text-align: justify;"><br /></span><br />
<strong style="font-family: Verdana; text-align: justify;">Stock in Hand</strong><span style="font-family: Verdana; text-align: justify;">
– This is the Stock in hand as on the date of the report. Together with
Cash and Bank Balances and Debtors. Stocks complete the Current Assets
aspect of Working Capital.</span><br />
<span style="font-family: Verdana; text-align: justify;"><br /></span><br />
<strong style="font-family: Verdana; text-align: justify;">Net Profit – </strong><span style="font-family: Verdana; text-align: justify;">This is derived from the Profit & Loss Account and is the profit after all direct and indirect expenses.</span><br />
<strong style="font-family: Verdana; text-align: justify;"><span style="text-decoration: underline;"><br /></span></strong><br />
<strong style="font-family: Verdana; text-align: justify;"><span style="text-decoration: underline;">Principal Ratios</span></strong><br />
<strong style="font-family: Verdana; text-align: justify;"><span style="text-decoration: underline;"><br /></span></strong><br />
<span style="font-family: Verdana, sans-serif; text-align: justify;">The following ratios can be
viewed in Tally :-</span><br />
<span style="font-family: Verdana, sans-serif; text-align: justify;"><br /></span><br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Current Ratio</b> - (Current
Assets: Current Liabilities): which indicates the solvency position of the
enterprise. The ideal ratio is 2 under normal business conditions.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Quick Ratio</b> - (Current
Assets – Stock in Hand : Current Liabilities): which indicates the liquidity position
of the enterprise. This ratio is useful in planning future cash requirements.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Debt Equity Ratio</b> - (Loans
(Liabilities) : Capital + Net Profit): which indicates the level of exposure to
external borrowings and is a useful tool in determining the options of raising
additional capital internally or externally.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Gross profit %</b> – Gross
Profit / total Turnover – indicates the percentage of profit earned from direct
operations (manufacturing)., This ratio is useful, where an enterprise produces
more than one product, in identifying the order of profitability and making
decisions such as increasing production capacity, continuance of a product etc.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Net Profit %</b> - Net Profit/
Total Turnover – indicates the percentage of net profit earned by the
enterprise after considering all expenses of the enterprise.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">This is useful in identifying the
overall profitability of the enterprise.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Operating Cost</b> – is
referred to as the percentage of operating cost with respect to the total
turnover – This ratio is useful in making decisions in the areas of cost
control, cost reduction etc.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Receivables Turnover</b> – is
an analysis of debtor wise payment performance and a useful tool in identifying
the most preferred and least preferred customers or agents and planning the
receivables collection process.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Return on Investment</b> – is
referred to as a percentage of net profit / capital + net profit. This is a
useful tool in measuring returns expected of the project/product and plan
additional capital infusion, increase in production capacity (subject to market
demand) etc.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Return on working capital</b>
– is referred to as the percentage of net profit to working capital (current
assets – current liabilities).</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Working capital turnover ratio</b>
– indicates how effectively working capital is used in terms of turnover it can
help to generate. It is a useful tool in identifying the level of deployment of
funds with respect to sales.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Inventory turnover ratio</b>
–turnover / inventory – indicates the relationship of inventory with respect to
sales. This is a useful tool in identifying the extent of investment in stock
and indicates</span></div>
<div class="MsoNormal">
</div>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Stock control measures
whether to be taken in case of change in demand</span></li>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Procurement planning</span></li>
</ul>
<b style="text-align: justify;"><span style="font-family: Verdana, sans-serif;">CASH FLOW</span></b><br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">A Cash Flow is a measure of a
business’s financial health. It is defined as cash receipts minus cash payments
over a given period of time. Through Tally, a business can analyze the
following:</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif;">Periodic cash flows</span></li>
<li><span style="font-family: Verdana, sans-serif;">Group & Ledger wise cash flows</span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">Periodic cash flow statements can
be used by a business to effectively analyze and plan</span><br />
<ul>
<li><span style="font-family: Verdana, sans-serif;">The current
pattern of cash flow under various heads</span></li>
<li><span style="font-family: Verdana, sans-serif;">The timing and
certainty of its future cash flows</span></li>
<li><span style="font-family: Verdana, sans-serif;">The
availability of excess funds-the extent and tenor of such availability for
short term investment.</span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">Group & Ledger wise cash flow
statements can be used to</span><br />
<ul>
<li><span style="font-family: Verdana, sans-serif;">Identify major
heads, which require constant monitoring.</span></li>
<li><span style="font-size: 11pt;"><span style="font-family: Verdana, sans-serif;">Analyze the pattern of inflow/outflow under a
particular group/ account head for planning overall cash requirement.</span></span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">Cash flow statements can also be
used as receipts and payments statement. This is particularly useful for
businesses such as Non Profit Organizations where receipts and payments
statements need to be generated.</span><br />
<br />
<b><span style="font-family: Verdana, sans-serif;">To view Cash Flow Summary</span></b><br />
<div class="MsoNormal">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<span style="font-size: 11pt;"><span style="font-family: Verdana, sans-serif;">Go to Gateway of Tally > Display >
Cash/Fund Flow > Cash Flow</span></span><br />
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">To view Monthly/Quarterly cash
flow statement press Alt+F5 Further Display can be configured through F12
Configuration</span></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
</div>
<div class="MsoNormal" style="margin-left: 4.5pt;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif;">Appearance of
names: alias / names, alias only, name/ alias, name only</span></li>
<li><span style="font-family: Verdana, sans-serif;">Scale factor
for values: crores, ten millions, millions, ten lakhs, lakhs, ten thousands,
thousands, hundred</span></li>
<li><span style="font-family: Verdana, sans-serif;">Periodicity to
use: 4 week month, daily, fortnightly, half yearly, monthly, quarterly, weekly
and yearly</span></li>
<li><span style="font-family: Verdana, sans-serif;">Show average
details: selecting yes option will display the average of the selected period’s
cash inflow and outflow at the end of the statement.</span></li>
<li><span style="font-family: Verdana, sans-serif;">Show with
Graph: selecting yes option will display the graph in terms of period selected.</span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">To view detailed
Detailed/Condensed Press Alt+F1</span><br />
<br />
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">To view Daily flow / Break up
Press F4</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="font-family: Verdana, sans-serif;">Funds Flow<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">The Funds Flow depicts the
Working Capital analysis of the company. It gives details of the movement of
funds in a business, i.e. source of funds and their application. Working
Capital is the net difference between Current Assets & Current Liabilities </span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">Fund flow statements are useful
tools to analyze</span></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal" style="margin-left: 0.25in;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif;">The changes in
the net assets</span></li>
<li><span style="font-family: Verdana, sans-serif;">Its financial
structure</span></li>
<li><span style="font-family: Verdana, sans-serif;">Its solvency
and liquidity</span></li>
<li><span style="font-family: Verdana, sans-serif;">Its operating
performance</span></li>
<li><span style="font-family: Verdana, sans-serif;">Areas that
require immediate attention</span></li>
<li><span style="font-family: Verdana, sans-serif;">Periodic fund
flows</span></li>
<li><span style="font-family: Verdana, sans-serif;">Group wise and
ledger wise fund flows</span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">Display of sources and
application separately for each group enables a business to identify core areas
that require immediate attention and take effective steps to address the
issues.</span><br />
<div class="MsoNormal">
</div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><b>To view Funds Flow Summary</b></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">Go to Gateway of Tally >
Display > Cash/Fund Flow > Fund Flow</span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Verdana, sans-serif;">Press Enter to get Funds flow
Summary for the month</span></div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com1tag:blogger.com,1999:blog-2042878191199361560.post-68763217838515452842012-03-15T14:26:00.003+05:302012-03-15T14:29:08.586+05:30Few Useful Hints<div dir="ltr" style="text-align: left;" trbidi="on">
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">If you want to repeat last
narration of last voucher then go to narration of the voucher and Press CTRL+R.
It will place the last narration and will save your time to write to write
narration again and again.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">To alter the recently saved
voucher just hit the page up button from your voucher screen and you will find
the last entered voucher there. Now you can modify it easily alter the voucher.
Similarly you can edit any voucher by this way by selecting a date and pressing
page up button again and again and you will find voucher entries one by one for
that particular date.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">To create a new ledger account any
time during voucher creation use ALT+C and use CTRL+Enter on the ledger/Group
name to alter without leaving the voucher screen.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">At any stage CTRL+N can
activate Calculator but during voucher creation ALT+C used at amount column automatically
fill the result in that field. For that just Press ALT+C on amount column that
will take you to the calculator. Here you can calculate the desire figures and after
making your calculation. Now, simply pressing ENTER the result will be in your amount
column automatically.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">For screen shot at any point on
Tally just go to the desire screen and take a screen shot and pressing PrtScr
button of your key board (top right side of your keyboard) now go word/excel
and just press Ctrl+V and you will find the screen shot of your tally screen.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;">Use ALT+D to delete any voucher/ledger/group
etc. </span><span style="font-family: Verdana, sans-serif; font-size: 11pt; line-height: 15.6pt;"> </span></li>
</ul>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-68000411747744641112012-03-10T00:43:00.000+05:302012-03-10T00:43:09.273+05:30Function Keys Combination for Tally<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<table align="left" border="1" cellpadding="0" cellspacing="3" class="MsoNormalTable" style="border: solid windowtext 1.0pt; margin-left: 6.75pt; margin-right: 6.75pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-cellspacing: 2.1pt; mso-padding-alt: 2.15pt 2.15pt 2.15pt 2.15pt; mso-table-anchor-horizontal: margin; mso-table-anchor-vertical: margin; mso-table-left: left; mso-table-lspace: 9.0pt; mso-table-rspace: 9.0pt; mso-table-top: -1.0in;">
<tbody>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>Windows<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>Functionality<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>Availability<o:p></o:p></b></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F1<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly;">
To select a company<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly;">
At all masters menu screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F1<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Accounts Button<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At the Accounting Voucher
creation and alteration screen. <o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>ALT + F1<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly;">
To select the Inventory<o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly;">
To view the detailed or condensed report<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At the Inventory/Payroll
Voucher creation and alteration screen<o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
Almost all the Reports<o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
<br /></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>CTRL + F1<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select Payroll Voucher to
alter<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At the Accounting / Inventory
voucher creation or alteration screen.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F2<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To change the Current Date<o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select Company Inventory
features<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At almost all screens <o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At the F11 : Features Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F3<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Company<o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select Company Statutory
& Taxation Features<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At almost all Screens <o:p></o:p></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At F11 : Features Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F4<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Contra Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory Voucher
creation and alteration screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F5<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Payment Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and alteration screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F6<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Receipt Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and alteration screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F7<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Journal Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and alteration screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F8<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Sales Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and alteration screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>CTRL + F8<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the credit note
voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and Alteration Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F9<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the purchase Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting / Inventory
Voucher creation and Alteration Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>CTRL + F9<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Debit Note
Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting/ Inventory
Voucher creation and Alteration Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F10<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Reversing
Journal Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At Accounting/ Inventory
Voucher creation and Alteration Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>CTRL + F10<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Memorandum
Voucher<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At
Accounting/Inventory/Payroll Voucher creation and alteration Screen<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F11<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Functions and
Features Screen<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At almost all screens <o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 78.4pt;" width="105">
<div align="center" class="MsoNormal" style="mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: center;">
<b>F12<o:p></o:p></b></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 164.1pt;" width="219">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
To select the Configure
Screen<o:p></o:p></div>
</td>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 2.15pt 2.15pt 2.15pt 2.15pt; width: 209.2pt;" width="279">
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .1in; margin-right: .1in; margin-top: 0in; mso-element-anchor-horizontal: margin; mso-element-frame-hspace: 9.0pt; mso-element-top: -1.0in; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; text-align: justify;">
At almost all screens<o:p></o:p></div>
</td>
</tr>
</tbody></table>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0New Delhi, Delhi, India28.635308 77.2249628.4123265 76.909103 28.858289499999998 77.54081699999999tag:blogger.com,1999:blog-2042878191199361560.post-75396845743664153162012-02-26T23:59:00.000+05:302012-02-26T23:59:18.429+05:30How to automate Bank Reconciliation Statement in Tally?<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Most businesses these days prefer
to receive and make payments via their bank accounts. Typically, while
transacting via the bank, an organization prepares a deposit slip to credit the
payments received into the firm’s account, generates payment advice and tracks
funds in order to always ensure that the bank account has the minimum funds
required at all times. But as the number of transactions increase, it becomes a
challenging task for organizations to prepare a large number of deposit slips,
covering letters, and reconcile the bank ledger balance and the bank
statements. Tally.ERP 9 has made life simple, it allows you to effortlessly
print cheques, reconcile the entries in books of accounts, generate deposit
slips and payment advice, whenever required.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-align: left;"><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-align: left;"><span style="font-family: Verdana, sans-serif;">Bank reconciliation</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Bank reconciliation explains the
difference between the bank balance shown in an organization’s bank statement
and the corresponding amount shown in the</span><span style="font-family: Verdana, sans-serif;">
</span><span style="font-family: Verdana, sans-serif;">organization’s accounting records, on a particular date.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">To reconcile the bank statement</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Go to ‘Gateway of Tally
> Banking > Bank Reconciliation’</span></li>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Select the name of the
required bank</span></li>
</ul>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">The ‘Bank Reconciliation’ screen
appears:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwr67h1ho4KUkuKdoIJ9hYjrsr-dod7nKWFRXO3XCEyAiSC0JRyZeO0YnVZYjiYMHWGI7Jh2OODmVpxXcHUa-Y0PQ79lF7wbdKAFUa5dHxJVjqiW_e66ukBgI-y5kmyro54PPFVV22Iz0A/s1600/first.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="427" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwr67h1ho4KUkuKdoIJ9hYjrsr-dod7nKWFRXO3XCEyAiSC0JRyZeO0YnVZYjiYMHWGI7Jh2OODmVpxXcHUa-Y0PQ79lF7wbdKAFUa5dHxJVjqiW_e66ukBgI-y5kmyro54PPFVV22Iz0A/s640/first.jpg" width="640" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Match every transaction
with the bank statement and record the transaction date in the ‘Bank Date’
field.</span></li>
</ul>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Accept the screen to reconcile
the bank ledgers as per the corresponding banking statement.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">On successfully reconciling, the
'Bank Reconciliation' screen appears as shown:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG4pTlpE7TUxTEEgZdqeosM1wu5U-WoUruO1Oimf6WAydC5d2Zkc1xR0XID1IFB2OM0Ejo_zn8ehB_EFe9nY3lK4CJWmXDX0kqUI_w8ulDKo1rv-XAVqwr0AXBz8REjlweLoHrX1G5IFb3/s1600/second.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="94" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG4pTlpE7TUxTEEgZdqeosM1wu5U-WoUruO1Oimf6WAydC5d2Zkc1xR0XID1IFB2OM0Ejo_zn8ehB_EFe9nY3lK4CJWmXDX0kqUI_w8ulDKo1rv-XAVqwr0AXBz8REjlweLoHrX1G5IFb3/s640/second.jpg" width="640" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Tally.ERP 9 also allows you to
record the un-reconciled transactions based on the nature of </span><span style="font-family: Verdana, sans-serif;">transactions.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Recording un-reconciled
transactions</b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Un-reconciled transactions can be
entered by clicking ‘U: Opening BRS’ or pressing </span><span style="font-family: Verdana, sans-serif;">‘Alt+U’ in the ‘Bank
Reconciliation’ screen. In this screen, the user can enter all transactions in
which the cheques were issued but not presented, or when cheques were received
but not presented. This will be useful under the following circumstances:</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif;">W</span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">hen a company starts bank reconciliation in the middle of the financial year by setting an effective date in the bank ledger.</span></li>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Or when the opening balance of the bank account having unreconciled transactions is brought forward to the bank’s ledger of the company.</span></li>
</ul>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrVo-q4x38PKOKpsKBM3qdMmUDk-vIUhR28Z5w8S3orRXLp28WPp1whfxZXzhRLIO9LHpot5uqb8mpaShmZIOUKpr97BAtKslu_NIH4lJs8cI84STYZp3NggWBzE5ciRczheeAR26mE4Pe/s1600/third.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="458" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrVo-q4x38PKOKpsKBM3qdMmUDk-vIUhR28Z5w8S3orRXLp28WPp1whfxZXzhRLIO9LHpot5uqb8mpaShmZIOUKpr97BAtKslu_NIH4lJs8cI84STYZp3NggWBzE5ciRczheeAR26mE4Pe/s640/third.jpg" width="640" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Recording transactions</b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">During reconciliation, some
transactions like the bank’s charges, the interest paid by the bank, etc., need
to be recorded. These transactions can be recorded at the ‘Banking’ screen by
simply clicking ‘C: Create Vouchers’ or pressing ‘Alt+C’ in the ‘Bank
Reconciliation’ screen and choosing the required voucher.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;">Generating deposit slips</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">You can generate deposit slips
for the payments received through cheques or demand drafts, which can be
deposited to the bank later.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>To generate the deposit slip</b></span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Go to ‘Gateway of Tally
> Banking > Deposit Slip’</span></li>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Select the appropriate
bank.</span></li>
</ul>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">The ‘Deposit Slip’ screen
appears:</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;"> </span><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Click ‘P: Print’ or press ‘Alt+P’</span></li>
</ul>
<br />
<div class="MsoListParagraph" style="mso-list: l5 level1 lfo4; text-align: justify; text-indent: -.25in;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1OIlfouHEpCqv8htgnWuu4YcrrQLhscBsXlbNxmizOznDes9UsIvW36llNpfPqllhOh02swQjTLKHFheoPoPZiaCemmON9ynH7CpIEhNtfHxlsYeBfdv7Cu97pCfs9bMw-WN6aD2pWqkA/s1600/fourth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="100" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1OIlfouHEpCqv8htgnWuu4YcrrQLhscBsXlbNxmizOznDes9UsIvW36llNpfPqllhOh02swQjTLKHFheoPoPZiaCemmON9ynH7CpIEhNtfHxlsYeBfdv7Cu97pCfs9bMw-WN6aD2pWqkA/s640/fourth.jpg" width="640" /></a></div>
<div style="text-indent: -24px;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>In the ‘Print Report’ screen</b></span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Set ‘Print Deposit Slip’ to
‘Yes’.</span></li>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Click ‘Accept’ to print the
deposit slips.</span></li>
</ul>
<span style="font-family: Verdana, sans-serif;">The printed deposit slip appears
as shown below:-</span><br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2ndFoAIuYr-2sxRz4oseYptVuGnUn1l7Lx_dRgBXcE63vdWHgkMgM5dWaNnigKOUtPyBfGosxSh5f_pWdpwi8efq-Epng4QQTYq91KFlvGiFqGKqVk51UHzh-CJzzduVmj4fxxbF1I32i/s1600/fifth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="334" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2ndFoAIuYr-2sxRz4oseYptVuGnUn1l7Lx_dRgBXcE63vdWHgkMgM5dWaNnigKOUtPyBfGosxSh5f_pWdpwi8efq-Epng4QQTYq91KFlvGiFqGKqVk51UHzh-CJzzduVmj4fxxbF1I32i/s640/fifth.jpg" width="640" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;">Payment advice</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Using your Tally.ERP 9 system,
you can also generate the payment advice, which the company needs to send to
its suppliers or other parties, along with the respective cheque /demand draft.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">To generate the payment advice:</span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo5; text-align: justify; text-indent: -.25in;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;"> Go to ‘Gateway of Tally
> Banking > Payment Advice’.</span></li>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;"> Select the required ledger
from the ‘List of Ledgers’.</span></li>
</ul>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>The ‘Payment Advice’ screen
appears</b></span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<ul>
<li><span style="font-family: Verdana, sans-serif; text-indent: -0.25in;">Click ‘P: Print’ or press
‘Alt+P’</span></li>
</ul>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">The ‘Payment Advice’ screen for
the selected ledger appears, as shown below:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmdi5wkFVw68iToHPEwDO5By3IaFwKuZNeqzZDDmY13M8sDYl1jNK9-SdVZBWcbK7ENLQKVt9-GhGPZYtvM8-7cGXfPtAdZJZKVCPs79cORKx6aijOCHvYjQE20PJqu7GRnZ2pqBXTxkWE/s1600/sixth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="532" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmdi5wkFVw68iToHPEwDO5By3IaFwKuZNeqzZDDmY13M8sDYl1jNK9-SdVZBWcbK7ENLQKVt9-GhGPZYtvM8-7cGXfPtAdZJZKVCPs79cORKx6aijOCHvYjQE20PJqu7GRnZ2pqBXTxkWE/s640/sixth.jpg" width="640" /></a></div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com2tag:blogger.com,1999:blog-2042878191199361560.post-51723650733080514612012-02-23T13:46:00.003+05:302012-02-23T21:16:54.825+05:30How to Handle Stocks of Different Parties in Tally?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="font-family: Verdana, sans-serif;">
</div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">With Godown enhancement feature in Tally ERP, tracking how much of your stock is lying with third party or how much third party stock is lying with you, is no longer an issue?</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">In today’s business, where manufacturers, buyers or resellers keep multiple stock items belonging to different parties, maintaining stock items and carrying out stock evaluation can become a challenge. Many times a manufacturer has to send stock items for Job Work or receive third party’s stocks for servicing and in such situation generating accurate stock report can become more complicated. However, the new enhanced Godown feature in Tally.ERP 9 allows users to create Godowns based on the possession type for the stock items, and this function enables users to track which Godown stores third party stocks and also allows tracking which stocks are lying in third party Godowns. Based on the options selected for each Godown, the Stock Valuation gets affected. Hence, this feature helps users get better stock management and more accurate Stock Summary report.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Creating Godown with Different Options</b></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">The new Godown enhancement feature in Tally.ERP 9 gives users the option to define Godowns of different types like ‘Use for Third Party Stock with Us’ and ‘Use for Our Stock with Third Party’.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">The first option ‘Use for Third Party Stock with Us’ does not affect company’s Books of Accounts as the Godown stores stock items which are third party’s assets. Alternatively, the second option ‘Use for Our Stock with Third Party’ affects company’s Books of Accounts as the stock items are owned by the company regardless of which Godown they are lying in.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">To make use of these features, we first need to enable ‘Multiple Godowns’ in Tally.ERP 9.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">• Go to ‘Gateway of Tally-> F11: Inventory Features’</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">• Set <b>Yes</b> to ‘Maintain Multiple Godowns’</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Gateway of Tally – Inventory Info. – GoDowns – Create</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmU2zVuUsthkYy2Ea4soWFkydHR46tZ4wjfGsoH4_10DMduE87ujQro7Zz5RjIDagxpdgkQJRvJEIBBuY-jsgWZmvEEGebQgoqjBpl_6PWf2t3lY6ecZaBVq3Ue4px7jcqypEyZCtw8tZz/s1600/first.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="261" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmU2zVuUsthkYy2Ea4soWFkydHR46tZ4wjfGsoH4_10DMduE87ujQro7Zz5RjIDagxpdgkQJRvJEIBBuY-jsgWZmvEEGebQgoqjBpl_6PWf2t3lY6ecZaBVq3Ue4px7jcqypEyZCtw8tZz/s400/first.jpg" width="400" /></a></div>
</div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div align="center" class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: center;">
<span style="font-size: small;"></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Option Our Stock with Third Party if set to ‘Yes’ then Godown is used to track company’s stock lying with Third Party.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Option Third Party Stock with us if set to ‘Yes’ then Godown is used to track Third Party’s stock lying with us. </span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Godown work as default when both options are set to ‘No’</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Note</b>: Both the options – ‘Our Stock with Third Party’ and ‘Third Party Stock with Us’ cannot be set as ‘Yes’ at the same time.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Allocating Items to Godown</b></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">There are two ways to allocate items to Godowns – during Item creation or alteration and while passing transactions.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Item Allocation to Godown during Item Creation</b></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Let’s assume a company receives 50 quantity of third party’s stocks ‘Item A’ for servicing and let’s allocate these items to company’s Godown ‘GD-Third Party Stock’. </span></div>
<ul style="text-align: left;">
<li><span style="font-size: small;"><span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"></span><span dir="ltr"></span><span style="font-family: Verdana, sans-serif;">Go to ‘Gateway of Tally-> Inventory Info-> Stock Items->Create’</span></span></li>
<li style="font-family: Verdana, sans-serif;"><span style="font-size: small;"><span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"></span><span dir="ltr"></span>Enter ‘Item A’ in ‘Name’</span></li>
<li style="font-family: Verdana, sans-serif;"><span style="font-size: small;"><span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"></span>Define ‘Units of Measurement’ as ‘nos’</span></li>
<li style="font-family: Verdana, sans-serif;"><span style="font-size: small;"><span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"></span><span dir="ltr"></span>Enter ‘50’ in ‘Opening Balance’ and press ‘Enter’</span></li>
</ul>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqaSVwzJi37tW65ix3qZSgS0-EuEYeopHJBGSKppcUVcfeaKFA3oIZMLxfjZqTjs8naYjlJY8Y5L-zGNTb849Acfci1XlNfodI5mRY7lT60FFeh7CZBumD0eJLPolJwAcSKl-8BgSSkA7_/s1600/Second.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="275" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqaSVwzJi37tW65ix3qZSgS0-EuEYeopHJBGSKppcUVcfeaKFA3oIZMLxfjZqTjs8naYjlJY8Y5L-zGNTb849Acfci1XlNfodI5mRY7lT60FFeh7CZBumD0eJLPolJwAcSKl-8BgSSkA7_/s640/Second.jpg" width="640" /></a></div>
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<ul style="text-align: left;">
<li><div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;"> The ‘Stock Item Allocation’ screen will be displayed on the screen; here you can allocate the ‘Item A’ to ‘GD-Third Party Stock with Us’ which is a Godown of type ‘Third Party Stock with Us’.</span></div>
</li>
</ul>
<div align="center" class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: center;">
<span style="font-size: small;"></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-iyP3819zw0zohsj4pipxeNgJApJagBs3tbjAn2fekcPH03REqsqWa3SvKzoO3QlChLWoyCgKrRjmd747dKfbOLb_blC_h6yBHO5fHCMUmcnCDum2av11Gzv7znZNkrUgUuo8CmtJM49S/s1600/Third.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="138" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-iyP3819zw0zohsj4pipxeNgJApJagBs3tbjAn2fekcPH03REqsqWa3SvKzoO3QlChLWoyCgKrRjmd747dKfbOLb_blC_h6yBHO5fHCMUmcnCDum2av11Gzv7znZNkrUgUuo8CmtJM49S/s640/Third.jpg" width="640" /></a></div>
</div>
<div class="MsoListParagraph" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Press ‘Enter’ and click ‘Yes’ to accept the screen.</span></div>
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<br /></div>
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<span style="font-size: small;"><b>Item Allocation to Godown while Recording Transaction</b></span></div>
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<br /></div>
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<span style="font-size: small;">The second way of allocating items to Godown is while passing a transaction. Let’s create a Stock Journal for transferring company’s own stock ‘Item B’ lying in company’s Godown to third party’s Godown ‘GD-Our Stock with Third Party’.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Go to ‘Gateway of Tally- Inventory Voucher - F7: Stock Journal’</span></div>
<div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Select ‘Item B’ in ‘Name of Item’</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCXNP131f1-R_cqwhfMh2Jz2RtOEwR9dfPlyOyjopwedWxCxcHRgwjNWGELGm9_PQuf5PTsS0Fcxnmq0elevxQM-uERL-XLhGgXNF9fCqjUNeMgRuoFUETTAiXF1yVrA23cTIvnPfMLgFw/s1600/fourth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="162" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCXNP131f1-R_cqwhfMh2Jz2RtOEwR9dfPlyOyjopwedWxCxcHRgwjNWGELGm9_PQuf5PTsS0Fcxnmq0elevxQM-uERL-XLhGgXNF9fCqjUNeMgRuoFUETTAiXF1yVrA23cTIvnPfMLgFw/s640/fourth.jpg" width="640" /></a></div>
<br />
<span style="font-size: small;"> Select ‘Main Location’ under ‘Godown’</span></div>
<div class="MsoListParagraphCxSpMiddle" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Enter ‘Quantity’ and ‘Rate’.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>In the ‘Destination’ side, select the same ‘Item B’ for ‘Name of Item’. Enter the same ‘Quantity’ and ‘Rate’ but for ‘Godown’, select ‘GD- Our Stock with Third Party’ as shown. This way, company’s own stock ‘Item B’ is allocated to third party’s Godown during transaction.</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZbEfJisuzwwyoTpVrgl1P_l9z5XH2fqjWNSmo8eqdMSwJj5m7cukePkY0gax-pAGArU3LbKAs5es0c-eAuNP4aM8Aqie4xr9qBBZ8ZL7Chz5lXpIFJdusCS5huGmQEzQlxG7p0jm4BQyd/s1600/fifth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="216" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZbEfJisuzwwyoTpVrgl1P_l9z5XH2fqjWNSmo8eqdMSwJj5m7cukePkY0gax-pAGArU3LbKAs5es0c-eAuNP4aM8Aqie4xr9qBBZ8ZL7Chz5lXpIFJdusCS5huGmQEzQlxG7p0jm4BQyd/s640/fifth.jpg" width="640" /></a></div>
</div>
<div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;"><b> Stock Summary</b></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
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<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">The Stock Summary in Tally.ERP 9 is a report that shows up-to-date information about the quantity, rate, closing value and location of stocks. The Godown enhancement feature enables Stock Summary report to drill-down and show in-depth details of the stocks lying in third-parties’ or company’s own Godown.</span></div>
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<span style="font-size: small;">To view the Stock Summary, go to ‘Gateway of Tally - Stock Summary’.</span></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjqqmWJQuIguqPCdqcMXX-C5l8hfY33-tV6L69WM7LTmhClLsHPDDImSF2Rzf9W7_7iNledLWc60pefPmnPYpjhGar81US951I2B_t74HcGmYV9bcswlo710QUTxCQZG-_KuDJKmJS24-M/s1600/sixth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="120" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjqqmWJQuIguqPCdqcMXX-C5l8hfY33-tV6L69WM7LTmhClLsHPDDImSF2Rzf9W7_7iNledLWc60pefPmnPYpjhGar81US951I2B_t74HcGmYV9bcswlo710QUTxCQZG-_KuDJKmJS24-M/s640/sixth.jpg" width="640" /></a></div>
</div>
<div align="center" class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: center;">
<span style="font-size: small;"></span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Note:</b> The default view of the Stock Summary shows items which affect company’s Book of Accounts i.e. company’s own items lying in its Godown and third-party’s godown.</span></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">To view Stock Summary based on Godown Types, press ‘Ctrl+G’ or click ‘Godown Types’ button to go to the ‘Change Stock Details’ screen.</span></div>
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<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTIXfGsRD1e-nWoEelplUC36KFD4blTDrAR4bH2fXoFjfiv-aGJ-uwp2GYuKagu5JUX0cmMOxcrn6pxo0Fxx7BL5df1PLC9GOABbdLGOBEW6U1z_zkU9bT07QBd8STuJH4rKvl7NBsSDiR/s1600/seventh.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="217" lda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTIXfGsRD1e-nWoEelplUC36KFD4blTDrAR4bH2fXoFjfiv-aGJ-uwp2GYuKagu5JUX0cmMOxcrn6pxo0Fxx7BL5df1PLC9GOABbdLGOBEW6U1z_zkU9bT07QBd8STuJH4rKvl7NBsSDiR/s400/seventh.jpg" width="400" /></a></div>
</div>
<div align="center" class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: center;">
<span style="font-size: small;"></span></div>
<div class="MsoListParagraphCxSpFirst" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Press ‘Enter’. </span></div>
<div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<span style="font-size: small;">·<span style="-moz-font-feature-settings: normal; -moz-font-language-override: normal; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="ltr"></span>Press ‘F1: Detailed’ to view Godown names as well.</span></div>
<div class="MsoListParagraphCxSpLast" style="font-family: Verdana, sans-serif; text-align: justify; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; margin-left: 0.25in; text-align: justify;">
<span style="font-size: small;">This viewing option enables users to have complete details of how much stock is lying in whose Godowns, at any point of time as shown.</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana, sans-serif; text-align: justify;">
<span style="font-size: small;">Hence the Godown enhancement feature in Tally.ERP 9 is helpful for instant clarity about stocks managed by a company.</span></div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-39062092366867809702012-02-20T22:58:00.000+05:302012-02-20T22:58:15.285+05:30CST Rates with or without C Form<div dir="ltr" style="text-align: left;" trbidi="on">
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If Goods
are exempted from tax unconditionally</div>
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Nil</div>
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Nil</div>
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2.</div>
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If VAT rate in the state from which material sold is less than the
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VAT rate of the state from which goods sold will be applicable. </div>
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VAT rate of the state from which goods sold will be applicable. <span style="mso-spacerun: yes;"> </span></div>
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3.</div>
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If VAT rate in the state from which material sold is more than the normal
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2%</div>
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VAT rate of the state from which goods sold will be applicable.</div>
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4.</div>
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Sales to
Unregistered dealer</div>
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N.A.</div>
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VAT rate of the state from which goods sold will be applicable.</div>
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5.</div>
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Sales to registered
dealer</div>
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2% or State VAT rate whichever is less</div>
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VAT rate of the state from which goods sold will be applicable.</div>
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</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0New Delhi, Delhi, India28.635308 77.2249628.4123265 76.909103 28.858289499999998 77.54081699999999tag:blogger.com,1999:blog-2042878191199361560.post-77103896906905608112012-02-20T19:14:00.001+05:302012-02-20T19:14:53.037+05:30VAT - E-Filing Annexure 2A and 2B<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="MsoNormal" style="font-family: Verdana,sans-serif; text-align: justify;">
<span style="font-size: small;">The E-VAT facility provided in
Tally.ERP 9 allows the user to export the data to the excel file as per
e-filing requirements so that the same file can be imported to Trade and Tax
Department tool for conversion to text format for e-filing. The user has to download
the offline Block for Form 2A & 2B from http://www.dvat.gov.in/dvatonline/index.php
and generate XML using Return.exe tool.</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;"><b>Exporting Data in E-Filing Format</b></span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;">To export the data in e-filing format,</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif; text-align: justify;">
<span style="font-size: small;"><b>Gateway of Tally -</b><b>
Display Menu </b><b>-
Statutory Reports </b><b>-
VAT Reports </b><b>-
e-VAT Annexures then select Annexure 2A or 2B</b></span></div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<br />
<span style="font-size: small;">Press Enter on E-VAT Annexure to view the Export Report
screen.</span></div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<br />
<span style="font-size: small;">In the Export Report screen,</span></div>
<ol style="font-family: Verdana,sans-serif; text-align: justify;">
<li><span style="font-family: Verdana,sans-serif; font-size: small;">The Format will be
automatically selected as Excel (Spreadsheet).</span></li>
<li><span style="font-size: small;">In the Export Location
screen, the path of Tally.ERP 9 installed folder will be displayed. This path
can be changed as per requirement depending on the location where the format
file is copied.</span></li>
<li><span style="font-size: small;">The Output File Name will
be automatically captured from the format file saved in Tally.ERP 9 folder. (Do
not change the Output File Name)</span></li>
<li><span style="font-size: small;">Set Update existing file to
Yes if the data which is already exported needs to be modified, else select
No.</span><span style="font-size: small;"> </span></li>
<li><span style="font-size: small;">Retain the settings of
Excel (Spreadsheet) Formatting and with colour.</span></li>
<li><span style="font-size: small;">Enter the return period in
From and To fields. </span></li>
<li><span style="font-size: small;">Accept the Export Report
screen to export the data to the excel template file Annexure A</span></li>
</ol>
<div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;"><b>Importing Data from Excel Output File to Return.Exe Tool</b></span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;">Double click on Return.exe tool, enter the TIN and click on
Next button. Enter the basic information of the dealer in Trade and Tax
Department screen and click on Next button. The dealer details get saved.</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;"><b>Step 1: Data Import</b></span></div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;">Click on Import tab to import the excel file generated from
Tally.ERP 9, check the preview if required and click on Save button.</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;"><b>Step 2: Data Export</b></span></div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;">Click on Export tab to export the data which is imported to
the tool to generate the Notepad (.txt) file.</span><br />
</div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif;">
<span style="font-size: small;"><b>Step 3: Upload to Department website</b></span></div>
<div class="MsoNormal" style="font-family: Verdana,sans-serif; text-align: justify;">
<span style="font-size: small;">Login to the website -
http://delhi.dvatonline.in by entering TIN and password. Click on the link -
Upload 2A and 2B Soft Copy. Click on Browse button, select the text file and
click on Save button and then complete the online filing as per the e-filing
process specified by the department.</span><br />
</div>
</div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0New Delhi, Delhi, India28.635308 77.2249628.4123265 76.909103 28.858289499999998 77.54081699999999tag:blogger.com,1999:blog-2042878191199361560.post-34440637097730968152011-01-09T14:10:00.008+05:302011-01-09T14:21:20.967+05:30Tally and ERP<div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; text-align: justify;"><div><span class="Apple-style-span" style="font-size: 15px; line-height: 22px;"></span><br />
<div style="line-height: 18pt; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;"><span style="font-size: 11pt;">ERP stands for enterprise resource planning.To elobarate, an enterprise means a business setup, Resources means many like men, machine, money etc, and Planning means a frame work to carry out the tasks. ERP is package software solution that addresses the needs of an organization by tightly integrating the various functions of an organization using a process view of the organization. It is package software and not a custom made software for a specific firm. It understands the needs of any organization within a specific industry segment. Many of the processes implemented in an ERP software are core processes such as sales order processing, Minimum order fulfillment, shipping, invoicing, BOM processing, purchase order processing, preparation of Balance Sheet, Profit and Loss statement etc., that are common to all industry segments. That is the reason why the package software solution works so well. So Generally there are lot of ERP package vendors in the market like SAP, Oracle, etc..Each vendor is specialized in one or many resources. SAP comes under ERP Package which gives business solutions to a business setup in all areas like Finance, Sales, Costing and materials etc. Just you integrate a few functions into a software package, an ERP system it does not become. Tally is simply an accounting package and that too using a very archaic DOS like GUI, meant to be used primarily by the bookkeepers and accountants of an organization. Unlike a real ERP system that cascades across the entire processes of an organization, Tally is purely finance oriented for the most part. Some of us may argue that it can tailored, etc. for other functionality. If any of the other major accounting packages in its class, like Peachtree were customized for India, Tally would go the way of the dodo. Compared to Peachtree or similar windows GUI systems with result oriented dashboards, etc, Tally is overpriced for what you get. People make a big deal out of the fact that Tally is pre-set to use Indian tax forms, etc. Again, if a package like Peachtree had the same capability, it would leave Tally in the dust. Really, it's time that companies like Sage brought their Peachtree package in full force to India to spur the folks at Tally to do a better job. Right now, Tally is still leading in India by not only giving employment opportunities to many of us but changing the accounting picture in Indian society. </span><span class="Apple-style-span" style="line-height: 22px;"> </span></span></div></div></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-15325688397043763812010-09-28T15:58:00.000+05:302012-02-07T21:47:11.078+05:30Users of Financial Statements<div dir="ltr" style="text-align: left;" trbidi="on">
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<b>Investors and potential investors</b></div>
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The present investors want to decide whether they should hold the securities of the company or sell them. Potential investors, on the other hand, want to know whether they should invest in the shares of the company or not. Investors (Shareholders or owners) and potential investors, thus, make use of the financial statements to judge the present and future earning capacity of the business, to judge the operational efficiency of the business and to know the safety of investment and growth prospects. </div>
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<b>Lenders/long term creditors</b><br />
Financial statement helps lenders such as debenture holders, suppliers of loans and leases in ascertaining the long term and short term solvency of the business. They like to know the financial soundness of the business i.e. the ability of the business to repay debt on maturity and whether the enterprise earns sufficient profits so as to pay interest regularly. </div>
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<b>Management</b><br />
Analysis of financial statements enable the management to evaluate the overall efficieny of the firm. It helps to ascertain the solvency of the enterprise; to know about its viability as a going concern and to provide adequate information for planning and controlling the affairs of the business. Future forecasts can easily be made by analyzing the past date. </div>
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<b>Suppliers/short term creditors</b><br />
Creditors/suppliers supplying goods to a business are interested to know as to whether the business would be in a position to pay the amounts on time. They are interested in short-term solvency i.e. the liquidity of the business. They are more interested in current assets and current liabilities of the business. If current assets are sufficient, say, twice the current liabilities, they are satisfied that the business would be able to discharge the short-term debts on time. </div>
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<b>Employees and Trade Unions</b><br />
Employees are interested in better emoluments, bonus and continuance of business and whether the dues like provident fund, ESI et., have been deposited with the authorities. They would therefore, like to know its financial performance and profitability and operating sustainability.<b> </b><br />
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<b>Government and its agencies</b><br />
Financial statements are used by government and its agencies to formulate policies to regulate the activities of business, to formulate taxation policies, to compile national income accounts. Taxation authorities such as income tax department use the financial statements for determination of income tax; sales tax department is interested in sales while the excise department is interested in production.</div>
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<b>Stock exchange</b><br />
Stock exchange uses the financial statements to analyze and thereafter, inform its members about the performance, financial health, etc. of the company, to see whether financial statements prepared are in conformity with the specified laws and rules and to see whether they safeguard the interest of various concerned agencies. Other Regulatory authorities (such as, Company Law Board, SEBI, Stock Exchanges, Tax Authorities etc.) would like that the financial statements prepared are in conformity with the specified laws and rules, and are to safeguard the interest of various concerned agencies. For example, taxation authorities would be interested in ensuring proper assessment of tax liability of the enterprise as per the laws in force from time to time.</div>
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<b>Customers</b><br />
Customers are interested to ascertain continuance of an enterprise. For example, an enterprise may be supplier of a particular type of consumer goods and in case it appears that the enterprise may not continue for a long time, the customer has to find an alternate source.</div>
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</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-69183149707477797342010-08-10T14:53:00.002+05:302012-02-07T21:54:26.774+05:30Trading and Profit and Loss Account<div dir="ltr" style="text-align: left;" trbidi="on">
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It is the summary of such accounts which effect the profit or loss of the concern. These are prepared by transferring from the trial balance all nominal accounts and accounts relating to goods by means of journal entries called ‘closing entries’. All remaining accounts i.e. real and personal, relating to properties, assets, debtors and creditors are shown in the balance sheet. In order to know the overall picture of the effect of these accounts they are grouped at one place. Items’ increasing profit (revenue) are put on one side (credit) and those decreasing profits (losses and expenses) on the other side (debit). The balance is either net profit or net loss. This income statement is normally divided into two parts – first part is called trading account and second part is called profit and loss account. The procedure for preparing various accounts is discussed in details in the following pages:<b> </b><br />
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<b>Trading Account</b></div>
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As already discussed, first section of trading and profit and loss account is called trading account. The aim of preparing trading account is to find out gross profit or gross loss while that of second section is to find out net profit or net loss.<b> </b><br />
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<b>Preparation of Trading Account</b></div>
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Trading account is prepared mainly to know the profitability of the goods bought (or manufactured) sold by the businessman. The difference between selling price and cost of goods sold is the,5 earning of the businessman. Thus in order to calculate the gross earning, it is necessary to know:</div>
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(a) cost of goods sold.</div>
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(b) sales.</div>
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Total sales can be ascertained from the sales ledger. The cost of goods sold is, however, calculated. n order to calculate the cost of sales it is necessary to know its meaning. The ‘cost of goods’ includes the purchase price of the goods plus expenses relating to purchase of goods and brining the goods to the place of business. In order to calculate the cost of goods ” we should deduct from the total cost of goods purchased the cost of goods in hand. We can study this phenomenon with the help of following formula:</div>
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Opening stock + cost of purchases – closing stock = cost of sales</div>
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As already discussed that the purpose of preparing trading account is to calculate the gross profit of the business. It can be described as excess of amount of ‘Sales’ over ‘Cost of Sales’. This definition can be explained in terms of following equation:</div>
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Gross Profit = Sales-Cost of goods sold or (Sales + Closing Stock) -(Stock in the beginning + Purchases + Direct Expenses)</div>
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The opening stock and purchases along with buying and bringing expenses (direct expenses) are recorded the debit side whereas sales and closing stock is recorded on the credit side. If credit side is greater than the debit side the difference is written on the debit side as gross profit which is ultimately recorded on the credit side of profit and loss account. When the debit side exceeds the credit side, the difference is gross loss which is recorded at credit side and ultimately shown on the debit side of profit & loss account.<b> </b><br />
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<b>Usual Items in a Trading Account:</b><br />
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<b>A) Debit Side</b><br />
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<b>1. Opening Stock</b>. It is the stock which remained unsold at the end of previous year. It must have been brought into books with the help of opening entry; so it always appears inside the trial balance. Generally, it is shown as first item at the debit side of trading account. Of course, in the first year of a business there will be no opening stock.<b> </b><br />
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<b>2. Purchases.</b> It is normally second item on the debit side of trading account. ‘Purchases’ mean total purchases i.e. cash plus credit purchases. Any return outwards (purchases return) should be deducted out of purchases to find out the net purchases. Sometimes goods are received before the relevant invoice from the supplier. In such a situation, on the date of preparing final accounts an entry should be passed to debit the purchases account and to credit the suppliers’ account with the cost of goods.<b> </b><br />
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<b>3. Buying Expenses</b>. All expenses relating to purchase of goods are also debited in the trading account. These include-wages, carriage inwards freight, duty, clearing charges, dock charges, excise duty, octroi and import duty etc.<b> </b><br />
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<b>4. Manufacturing Expenses.</b> Such expenses are incurred by businessmen to manufacture or to render the goods in saleable condition viz., motive power, gas fuel, stores, royalties, factory expenses, foreman and supervisor’s salary etc.</div>
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Though manufacturing expenses are strictly to be taken in the manufacturing account since we are preparing only trading account, expenses of this type may also be included in the trading account.<b> </b><br />
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<b>(B) Credit Side</b><br />
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<b>1. Sales.</b> Sales mean total sales i.e. cash plus credit sales. If there are any sales returns, these should be deducted from sales. So net sales are credited to trading account. If an asset of the firm has been sold, it should not be included in the sales.<b> </b><br />
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<b>2. Closing Stock</b>. It is the value of stock lying unsold in the godown or shop on the last date of accounting period. Normally closing stock is given outside the trial balance in that case it is shown on the credit side of trading account. But if it is given inside the trial balance, it is not to be shown on the credit side of trading account but appears only in the balance sheet as asset. Closing stock should be valued at cost or market price whichever is less.<b> </b><br />
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<b>Valuation of Closing Stock</b><br />
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The ascertain the value of closing stock it is necessary to make a complete inventory or list of all the items in the god own together with quantities. On the basis of physical observation the stock lists are prepared and the value of total stock is calculated on the basis of unit value. Thus, it is clear that stock-taking entails (i) inventorying, (ii) pricing. Each item is priced at cost, unless the market price is lower. Pricing an inventory at cost is easy if cost remains fixed. But prices remain fluctuating; so the valuation of stock is done on the basis of one of many valuation methods.<br />
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The preparation of trading account helps the trade to know the relationship between the costs be incurred and the revenues earned and the level of efficiency with which operations have been conducted. The ratio of gross profit to sales is very significant: it is arrived at :<br />
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Gross Profit × 100 / Sales</div>
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With the help of G.P. ratio he can ascertain as to how efficiently he is running the business higher the ratio, better will be the efficiency.</div>
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Closing Entries pertaining to trading Account</div>
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For transferring various accounts relating to goods and buying expenses, following closing entries recorded:<br />
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<b>(i)</b> <b>For opening Stock</b>: Debit trading account and credit stock account<b> </b><br />
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<b>(ii)</b> <b>For purchases</b>: Debit trading account and credit purchases account, the amount being the et amount after deducting purchases returns.<b> </b><br />
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<b>(iii) </b><b>For purchases returns</b>: Debit purchases return account and credit purchases account.<b> </b><br />
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<b>(iv)</b> <b>For returns inwards</b>: Debit sales account and credit sales return account<b> </b><br />
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<b>(v)</b> <b>For direct expenses</b>: Debit trading account and credit direct expenses accounts individually.<b> </b><br />
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<b>(vi)</b> <b>For sales</b>: Debit sales account and credit trading account. We will find that all the accounts as mentioned above will be closed with the exception of trading account<b> </b><br />
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<b>(vii) </b><b>For closing stock</b>: Debit closing stock account and credit trading account After recording above entries the trading account will be balanced and difference of two sides ascertained. If credit side is more the result is gross profit for which following entry is recorded.<b> </b><br />
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<b>(viii)</b> <b>For gross profit</b>: Debit trading account and credit profit and loss account If the result is gross loss the above entry is reversed.<b> </b></div>
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<b>Profit and Loss Account</b></div>
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The profit and loss account is opened by recording the gross profit (on credit side) or gross loss (debit side).</div>
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For earning net profit a businessman has to incur many more expenses in addition to the direct expenses. Those expenses are deducted from profit (or added to gross loss), the resultant figure will be net profit or net loss.</div>
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The expenses which are recorded in profit and loss account are ailed ‘indirect expenses’. These be classified as follows:<b> </b><br />
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<b>Selling and distribution expenses</b></div>
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These comprise of following expenses:</div>
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(a) Salesmen’s salary and commission</div>
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(b) Commission to agents</div>
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(c) Freight & carriage on sales</div>
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(d) Sales tax</div>
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(e) Bad debts</div>
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(j) Advertising</div>
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(g) Packing expenses</div>
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(h) Export duty<b> </b><br />
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<b>Administrative Expenses</b></div>
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These include:</div>
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(a) Office salaries & wages</div>
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(b) Insurance</div>
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(c) Legal expenses</div>
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(d) Trade expenses</div>
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(e) Rates & taxes</div>
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(f) Audit fees</div>
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(g) Insurance</div>
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(h) Rent</div>
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(i) Printing and stationery</div>
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(j) Postage and telegrams</div>
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(k) Bank charges<b> </b><br />
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<b>Financial Expenses</b></div>
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These comprise:</div>
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(a) Discount allowed</div>
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(b) Interest on Capital</div>
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(c) Interest on loan</div>
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(d) Discount Charges on bill discounted<b> </b><br />
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<b>Maintenance, depreciations and Provisions etc.</b></div>
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These include following expenses</div>
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(a) Repairs</div>
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(b) Depreciation on assets</div>
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(c) Provision or reserve for doubtful debts</div>
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(d) Reserve for discount on debtors.</div>
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Along with above indirect expenses the debit side of profit and loss account comprises of various business losses also.</div>
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On the credit side of profit and loss account the items recorded are:</div>
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(a) Discount received</div>
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(b) Commission received</div>
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(c) Rent received</div>
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(d) Interest received</div>
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(e) Income from investments</div>
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(j) Profit on sale of assets</div>
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(g) Bad debts recovered</div>
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(h) Dividend received</div>
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(i) Apprenticeship premium etc.<b> </b><br />
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<b>Preparation of Profit and Loss Account</b></div>
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As already stated profit and loss account is commenced with gross profit or gross loss as ascertained by trading account. Then the profit and loss account is debited with all indirect expenses and losses. This results in closing of indirect expenses and losses account. The profit and loss account is then credited with various incomes and gains accounts by which all these accounts are closed.<b> </b><br />
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<b>Explanation of Certain items of Profit and Loss Account</b><br />
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<b>1. Salaries</b></div>
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Salaries are paid for the services of employees and are debited to profit and loss account being indirect expense. If any salary has been paid to proprietor or partners, it should be shown separately because it requires special treatment at the time of income tax assessment.<b> </b><br />
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<b>2. Salaries and Wages</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
When wages account is included with salaries it treated is as indirect expense and is taken into profit and loss account.<b> </b><br />
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<b>3. Rent</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Rent of the office shop showroom or godown is an indirect expense and so is debited to profit & loss account. However, rent of factory is debited to trading account. When a part of the building has been sublet the rent received should be shown on the credit side of profit and loss account as a separate item.<b> </b><br />
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<b>4. Rates and Taxes</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
These are levied by the local authorities to meet public expenditure. It being an indirect expenditure is shown on the debit side of profit and loss account.<b> </b><br />
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<b>5. Interest</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Interest on loan, overdraft or overdue debts is payable by the firm. It is an indirect expense; so debited to profit and loss account. Interest on loan advanced by the firm on depositor investments is an income of the firm and so is credited to the profit and loss account.</div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
If business has paid any interest on capital to its proprietor or partners it should also be debited in the profit and loss account but separately because this item needs special treatment at the time of income-tax assessment.<b> </b><br />
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<b>6. Commission</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
In business sometimes agents are appointed to effect sales, who are paid commission as their remuneration. So this being a selling expenses is shown on the debit side of profit and loss account. Sometimes commission is also paid on purchases of goods, such ‘as expense should be debited in the trading account. Sometimes the firm can also act as an agent to the other business houses and in such cases it receives commission from them. Commission so received is shown on the credit side of profit and loss account.<b> </b><br />
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<b>7. Trade Expenses</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
They are also termed as ‘sundry expenses’. Trade expenses represent expenses of such a nature for which it is not worthwhile to open separate accounts. Trade expenses are not taken to trading account.<b> </b><br />
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<b>8. Repairs</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Repairs to the plant, machinery, building are indirect expenses are treated expense and are debited to profit and loss account..<b> </b><br />
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<b>9. Traveling Expenses</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Unless mentioned otherwise, traveling expenses are treated as indirect expenses and are debited to profit and loss account.<b> </b><br />
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<b>10. Horse & stable Expenses</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Expenses incurred for the fodder of horses and wages paid for looking after stable are treated as indirect expenses and debited to profit and loss account.<b> </b><br />
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<b>11. Apprentice Premium</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
This is the amount charged from persons to whom training is imparted by the business. It is an income and is credited to profit and loss account. In case apprentice premium is charged in advance for two or three years, then the amount is distributed over number of years and each year’s profit and loss account is credited with its share of income.<b> </b><br />
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<b>12. Bad debts</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
It is the amount which could not be recovered by the trader on account of credit sales. It is a business loss, so is debited in the profit and loss account.<b> </b><br />
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<b>13. Life Insurance Premium</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
If the premium is paid on the life policy of the proprietor of the business; it is treated as his drawings and is shown by way of deduction from the capital account. It should not be taken to profit and loss account.<b> </b><br />
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<b>14. Insurance Premium</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
If insurance premium account appears in the trial balance, it stands for the insurance of the business. This is taken to profit and loss account. Insurance premium on goods purchased, factory building, factory machines are treated as direct expense and are taken to trading account.<b> </b><br />
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<b>15. Income Tax</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
In the case of merchant income-tax paid is treated as a personal expense and is shown by way of deduction from capital account. Income-tax in case of companies is treated differently.<b> </b><br />
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<b>16. Discount allowed and Received</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Discount is a reward for prompt payment. It is belief to show discount received and discount allowed separately on the credit and debit side of profit and loss account respectively instead of showing the net balance of this account.<b> </b><br />
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<b>17. Depreciation</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
Depreciation is a loss incurred on account of use of fixed assets in the business. Generally, it is charged from profit and loss account at a fixed percentage. The students should exercise great care as regards the rate of depreciation. If rate is without words ‘per annum’, then the rate will be taken irrespective of the period of accounts. This is very important when the period of accounts is less than one year. On the other hand, if the rate of depreciation is ‘per annum’ the depreciation should be calculated on the assets with due consideration to the period for which the asset has been used in business during the year. In case of additions to assets during the year, it is advisable to ignore depreciation on additions if the date of additions is not given. Same rule shall hold good for the sale of assets during the year.<b> </b><br />
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<b>18. Stock at the end appearing in the trial balance.</b></div>
<div style="font-family: Verdana,Tahoma,Arial,sans-serif; font-size: 1em; line-height: 1.65em; text-align: justify;">
It is important to emphasize the rule that balance appearing in the trial balance is taken to one and only one place. It may either be trading account or profit and loss account or balance sheet. Since stock at the end is an asset, it will betaken to balance sheet. On the other hand, so long as there is stock in trade, account for that must be kept open and thus be taken to the assets side of balance sheet.</div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-29280452235706535512010-04-14T13:15:00.005+05:302010-07-28T17:50:27.242+05:30Let's Talk About VAT<div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"></span></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"><strong>What is VAT?</strong> </span></div><div align="justify" style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">VAT (Value Added Tax) is a multi-point tax which is levied at every stage of sale with a provision for setting-off of tax paid at the previous stage/tax paid on inputs. Thus, effectively, it is levied on the vale that is added to the price of a product at each stage, either due to the passing of the product through various hands in a channel of distribution or due to some process undertaken on it. And hence the name.</span></div><div align="justify" style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">In simple words, VAT works on the principle that raw material passes through various manufacturing stages and manufactured product passes through various distribution stages, tax should be levied on the 'Vale Added' at each stage and not on the gross sales price. This ensures that same commodity does not get taxed again and again and there is no cascading effect. In simple terms, 'value added' means difference between selling price and purchase price. VAT avoids Cascading effect of a tax.</span></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"><strong>How is VAT different from Sales Tax?</strong></span></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;">The main difference between Sales Tax and VAT lies in the way the tax is levied. In case of Sales Tax, the tax is generally levied at either the first point or the last point in the distribution chain. It is therefore, a single-point tax system. In case of VAT, the tax is levied at each point in the distribution chain with a provision for setting-off of input tax paid on purchase. Thus, VAT is a multi-point tax system.</span></div><span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Benefits of VAT</strong></span><br />
<div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Simple, transparent and dealer-friendly tax administration. This will improve tax compliance and also augment revenue growth.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">No cascading effect of double taxation of commodities as it grants set-off of tax paid at the previous stage/tax paid on inputs.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">A multiplicity of other taxes, such as turnover tax, surcharge on sales tax, additional surcharge, etc. will be abolished.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">In addition, Central Sales Tax is also going to be phased out. As a result, overall tax burden will be rationalised, and prices in general will also fall.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">The existing system of inspection will be replaced by a system of built-in self-assessment by the dealers and auditing.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Thus, in general, VAT will help common people, traders, industrialists and also the Govt. It is indeed a move towards more efficiency, equal competition and fairness in the taxation system.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Background of VAT</strong></span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">VAT was introduced first in Brazil in mid 1960s, then in European countries in 1970's and subsequently introduced in about 130 countries, including several federal countries. In Asia, it has been introduced by a large number of countries from China to Sri Lanka. Even in India, there has been a VAT system introduced by the Government of India for about last ten years in respect of Central Excise Duties. At the State-level, the VAT system as decided by the State Governments would now be introduced in terms of Entry 54 in List II of VII schedule of the constitution of India.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>What is the meaning of 'cascading effect of tax'?</strong></span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Generally, any tax is related to selling price of product. In modern production technology, raw material passes through various stages and processes till it reaches the ultimate stage e.g., material passes through various stages and processes till it reaches the ultimate stage e.g., steel ingots are made in a steel mill. These are rolled into plates by a re-rolling unit, while third manufacturer makes furniture from these plates. Thus, output of the first manufacturer becomes input for second manufacturer, who carries out further processing and supply it to third manufacturer. This process continues till a final product emerges. The product then goes to distributor/wholesaler, who sells it to retailer and then it reaches the ultimate consumer. If a tax is based on selling price of a product, the tax burden goes on increasing as raw material and final product passes from one stage to another.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">For example, let us assume that tax on a product is 10% of selling price. Manufacturer 'A' supplies his output to 'B' at Rs. 100. Thus 'B' gets the material at Rs. 110, inclusive of tax @10%. He carries out further processing and sells his output to 'C' at Rs. 150. While calculating his cost 'B' has considered his purchase cost of materials as Rs. 110 and added Rs. 40 as his conversion charges. While selling product to C, B will charge tax again @ 10%. Thus C will get the item at Rs. 165 (150+10% tax). In fact, 'value added' by B is only Rs. 40 (150-110), tax on which would have been only Rs. 4, while the tax paid was Rs. 15. As stages of production and/or sales continue, each subsequent purchaser has to pay tax again and again on the material, which has already suffered tax. Tax is also paid on tax. This is called cascading effect.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>How VAT avoids cascading effect of tax?</strong></span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">System of VAT works on tax credit method. In Tax Credit Method of VAT, the tax is levied on full sale price, but credit is given of tax paid on purchases. Thus, effectively, tax is levied only on 'Value Added'. Most of the countries have adopted 'tax credit' method for implementation of VAT.</span><br />
<div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">The aforesaid illustration will work out as follows under VAT system.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">'B' will purchase goods from 'A' @ Rs. 110, which is inclusive of duty of Rs. 10. Since 'B' is going to get credit of duty of Rs. 10, he will not consider this amount for his costing. He will charge conversion charges of Rs. 40.00 and sell his goods at Rs. 140. He will charge 10% tax and raise invoice of Rs. 154.00 to 'C'. (140 plus tax @ 10%). In the Invoice prepared by 'B', the duty shown will be Rs. 14. However, 'B' will get credit of Rs. 10 paid on the raw material purchased by him from 'A'. Thus, effective duty paid by 'B' will be only Rs. 4. 'C' will get the goods at Rs. 154 and not at Rs. 165, which he would have got in absence of VAT. Thus, in effect, 'B' has to pay duty only on value added by him.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Disadvantage of Cascading Effect of Taxes</strong></span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">A tax purely based on selling price of a product has cascading effect, which has the following disadvantages :</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Computation of exact tax content difficult</strong> - It becomes very difficult to know the real tax content in the price of a product, as a product passes through various stages and tax is levied at each stage. This is particularly important for granting Export incentives or for fixing regulatory prices.</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"></span><br />
<div align="justify"></div><div></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Varying Tax Burden</strong> - Tax burden on any commodity will vary widely depending on the number of stages through which it passes in the chain from first producer to the ultimate consumer.</span><br />
<div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Discourages Ancillarisation</strong> - Ancillarisation means getting most of the parts/components manufactured from outside and making final assembly. It is common for large manufacturers (like automobile, machinery etc.) to get the parts manufactured from outside and make final assembly in his plant. If a component is purchased from outside tax is payable. However, if the same component is manufactured inside the factory, no tax would be payable. Thus, manufacturers are tempted to manufacture parts themselves instead of developing ancillary units for supply of the same. This is against the national policy, because it discourages growth of Small Scale Industries and increases concentration of economic power.</span></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"></span></div><div align="justify"></div><div align="justify"></div><div align="justify"></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"><strong>Increase cost of production</strong> - If a manufacturer decides to reduce ancillarisation, it increases cost of production and waste of scarce national resources, as the large manufacturer may not be in a position to fully utilise the production capacity of the machinery.</span></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"></span></div><div align="justify"></div><div align="justify"></div><div align="justify"></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"><strong>Concessions on basis of END use is not possible</strong> - Same article may be used for various purposes e.g. Copper may be used for utensils, electric cables or air conditioners. Government would naturally like to vary tax burden depending on use. However, this is not possible as when Copper is cleared from factory, its final use cannot be known.</span></div><div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Exports cannot be made tax free</strong> - Though final products which are exempt from tax, there is not mechanism to grant rebate of tax paid at the earlier stages on inputs - it may be noted that as per WTO (World Trade Organisation) stipulations, exports can be made free of domestic taxes, but export incentives as such cannot be given.</span></div><div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><strong>Advantage of VAT</strong></span></div><div align="justify"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Exports can be freed from domestic trade taxes</span></div><div align="justify"><ul><li><span style="font-family: Georgia, 'Times New Roman', serif;">It provides an instrument of taxing consumption of goods and services</span></li>
<li><span style="font-family: Georgia, 'Times New Roman', serif;">Interference in market forces is minimum</span></li>
<li><span style="font-family: Georgia, 'Times New Roman', serif;">Aids tax enforcement by providing audit trail through different stages of production and trade. Thus, it acts as a self-policing mechanism.</span></li>
</ul></div><div align="justify"><span style="font-family: Georgia, 'Times New Roman', serif;"></span><span style="font-family: Georgia, 'Times New Roman', serif;">The disadvantage is that paper work increases considerably and it is not as simple as a single point sales tax. </span></div></div></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-30042561287338372562010-02-02T00:40:00.001+05:302012-02-07T21:56:42.499+05:30Tally - Few Important Things<div dir="ltr" style="text-align: left;" trbidi="on">
<b><span style="font-family: Georgia,"Times New Roman",serif;">DIRECTORY</span></b><br />
<span style="font-family: Georgia,"Times New Roman",serif;"></span><br />
<span style="font-family: Georgia,"Times New Roman",serif;"><br />
</span><br />
<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">Give the date path where you want the company to get created. This field is skipped by default assuming that you wish to create the company in the data path given in the Tally.INI file. However, if you want to change it, simply use the backspace key and change it to whatever required.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">This is basically referred to as the Tally AnyWhere concept - which is ability to create/load companies in separate directories. The 'Directory' field is found during Select, Create, Breakup, Restore, Split Data and Rewrite options for a company. By default, the cursor will skip the field, presuming that you wish to use the default data directory for your work. You may press backspace and give a completely new path and work through there.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">For example, the default Tally data could be 'C:\Tally\Data'. You may now wish to create a new company on 'C:\Tally\My Folder', and some other companies on 'C:\Tally\Branches'. The next time, the default directory will continue to show C:\Tally\Data, and if you wish to work on the data of your branches, you would press backspace and enter C:\Tally\Branches for the directory name. This would bring up those companies whose data is stored there. We can even give the path of a network server or any storage device (example - TallyLocker).</span></div>
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<b><span style="font-family: Georgia,"Times New Roman",serif;">INTEGRATE ACCOUNTS WITH INVENTORY</span></b><span style="font-family: Georgia,"Times New Roman",serif;"> </span><br />
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<span style="font-family: Georgia,"Times New Roman",serif;">F11 - F1 [Company Operations Alteration]</span><br />
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<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">While creating the company, you have selected accounts-with-Inventory to be maintained. Tally will, now, allow maintenance of both accounts and inventory for the company but you may or may not integrate the two. The difference from accounts only and inventory only is that you need to create only one company in this case. In the other case, you can then select to integrate or not integrate at any time. The data is organized in a manner that the separation or merger is done without taking any time.</span></div>
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<span style="font-family: Georgia,"Times New Roman",serif;">The effects of integrated and non-integrated is described below:</span><br />
<br />
<div style="text-align: justify;">
<b><span style="font-family: Georgia,"Times New Roman",serif;">Integrated Accounts-and-inventory:</span></b><span style="font-family: Georgia,"Times New Roman",serif;"><span style="font-weight: bold;"> </span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;"><span style="font-weight: bold;"></span>You are allowed transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock. You are not allowed to directly change the closing balance of an account under this group.</span></div>
<span style="font-family: Georgia,"Times New Roman",serif;"><br />
</span><br />
<b><span style="font-family: Georgia,"Times New Roman",serif;">Non-integrated Accounts-and-inventory</span></b><span style="font-family: Georgia,"Times New Roman",serif;"> </span><br />
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">Accounts that fall under the group 'stock-in-hand', are not permitted any transactions. It allows you to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they are the only accounts for which the closing balances can't be directly altered (by an authorised user only)</span></div>
<span style="font-family: Georgia,"Times New Roman",serif;"><br />
</span><br />
<b><span style="font-family: Georgia,"Times New Roman",serif;">REMINDER LETTERS</span></b><span style="font-family: Georgia,"Times New Roman",serif;"> </span><br />
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<span style="font-family: Georgia,"Times New Roman",serif;">Gateway of Tally - F12 (Configuration) - Printing - REMINDER LETTERS</span><br />
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<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">Two paragraphs have been already provided which can be used as themselves or modified or extended. To view the reminder letter, simply print one out. Of course, you might want to make subtle changes thereafter. You may, as usual. The two paragraphs are followed by the account of the customer. Ledger and Outstanding details with Age Analysis of pending invoices serve as strong reminders to pay promptly.</span></div>
<span style="font-family: Georgia,"Times New Roman",serif;"><br />
</span><span style="font-family: Georgia,"Times New Roman",serif;"><b>CONFIRMATION STATEMENTS</b> </span><br />
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<span style="font-family: Georgia,"Times New Roman",serif;">Gateway of Tally - F12 (Configuration) - Printing - Confirmation Statements</span><br />
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<div style="text-align: justify;">
<span style="font-family: Georgia,"Times New Roman",serif;">Confirmation Statements are not the same as Reminder Letters. These serve to confirm the account balances with customers, suppliers, lenders and borrowers. Their use is most at period ends, but can be produced for any period, at anytime. You can change the text as per your requirements.</span></div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-36432315242859028192010-01-30T20:24:00.002+05:302010-02-02T00:41:19.150+05:30Common and Possible Errors in Grouping & Accounts Classification<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Reproduced below are some very important issues pertaining to groups. </span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b>Debtors/Creditor Classification</b></span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><br />
</b></span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><i><b>Placing individual party accounts under Sales or Purchase Accounts groups</b></i>:</span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Accounts of parties with whom your company has trade relationship must be opened under any of the following groups (or sub-groups under them) only:</span><br />
<ul><li><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Sundry Debtors</span></li>
<li><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Sundry Creditors</span></li>
<li><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Branch/Divisions</span></li>
</ul><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Sales and Purchase account groups are meant for revenue accounts and would be reflected in the Profit & Loss Account. If you open entry accounts under these groups. You will find it difficult to pass sales or purchase voucher transactions. For example, in a sales voucher transaction entry, you must debit an account which is a sundry debtor, branch/division or even a creditor. Moreover, other facilities like bill-wise allocation and tracking would not become available unless the accounts belong to one of these groups. </span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><i>Opening two accounts of the same party:</i></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><i><br />
</i></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;">Tally has separately classified debtors, creditors and branch/divisions only for convenience. There is no operational distinction except for the purpose of keeping the accounts of a particular group together during displays and analysis. Thus you can pass both sales and purchase entries for a party account placed under Sundry Debtors. We recommend that you use the classification depending on the most natural group for the party. For example, parties from whom you buy more frequently then you sell to, could be placed under Sundry Creditors, as that would be the natural place for you to look for his account. Tally does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account. </span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><span class="Apple-style-span" style="font-weight: normal;">You would, therefore, note that you need not open two account of the same party - one Sundry Debtors and another under Sundry Creditors. Remember, Tally restricts you from opening two identical ledger accounts. Of course, you may decide to circumvent (<i>to check) </i>by marking one account as "X & Co. - S/Dr" and another "X & Co. - S/Cr". Doing this would allow you to have two accounts of the same party under two groups, but you would lose the advantage of analysing his net position in one place. I recommend that you maintain a single account to obtain best benefits. </span></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><i>Placing expenditure items under a Liabilities Group, </i><span class="Apple-style-span" style="font-weight: normal;">e.g. the expenditure item 'Rates & Taxes' under the group 'Duties & Taxes'. </span></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><span class="Apple-style-span" style="font-weight: normal;"><br />
</span></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><span class="Apple-style-span" style="font-weight: normal;">The group Duties & Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other statutory expenses should be placed under Indirect Expenses. </span></b></span></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-63970778210891809962010-01-30T19:33:00.001+05:302010-01-30T19:38:55.699+05:30Classification of Assets & Liabilities<span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b>Classification of Assets</b></span><br />
<div style="text-align: justify;"><ul><li><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b>Fixed Assets</b> are those which are acquired for long use in the business itself and not for resale. For example, plant and machinery, land and buildings, furniture and fixtures, patents and trade marks are Fixed Assets. </span></li>
</ul><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b><ul><li><span class="Apple-style-span" style="font-weight: normal;"><b>Current or Floating Assets</b> are those that are meant to be converted into cash as soon as possible. Stock of goods, amount due from customers to whom goods have been sold on credit and balance at bank are examples of Current (or Floating) Assets.</span></li>
</ul></b></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><ul><li><b>Wasting Assets</b> are those Fixed Assets which have a Fixed Content, like coal in a coal mine; the value goes down as the contents are taken out. When the minerals have been taken out, the mine will become useless as a mine. </li>
</ul></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><ul><li><b>Liquid Assets</b> are those Current Assets which are already in the form of cash or which can be readily converted into cash, such as Government Securities. </li>
</ul></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><ul><li><b>Intangible Assets</b> are those Fixed Assets which cannot be seen or touched or felt. Goodwill (the value of one's name) is an intangible assets because there is not physical form to show it. Intangible assets are not necessarily useless.</li>
</ul><b><ul><li><span class="Apple-style-span" style="font-weight: normal;"><b>Fictitious Assets </b>are valueless assets but shown as assets in the Financial Statements (such as useless trade marks) or expenses treated as assets (such as expenses incurred to establish a company-preliminary expenses).</span></li>
</ul></b></span></div><div style="text-align: justify;"><ol></ol></div><div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b>Classification of Liabilities</b></span></div><div><div style="text-align: justify;"><ul><li><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><b>Fixed and Long-term Liabilities</b> - Fixed Liabilities are those liabilities which are payable on the termination of the business such as capital of the proprietor, whereas long-term liabilities are those which will be redeemed after a long period of time e.g. long-term loans. </span></li>
</ul></div><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', serif;"><div style="text-align: justify;"><ul><li><b>Current Liabilities</b> - These are Liabilities which have to be redeemed in the near future, usually within a year. Trade Creditors, bank loans, bill payable etc. are examples of current liabilities. </li>
</ul><ul><li><b>Contingent Liabilities </b>- These are not actual liabilities but their becoming actual liabilities depend on the happening of certain events. If such events do not occur, no liability is incurred. Liability in respect of pending suit is a contingent liability because it is only if and when suit is lost that the liability will be incurred. Bills discounted with a bank are also contingent liability because if the acceptor fails to meet the bill on due date, the firm will become liable to the bank. Such liabilities are not shown in balance sheet, usually a foot note is appended at the balance sheet for such liability. </li>
</ul></div></span><ol></ol></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-81621693489860287392010-01-26T23:53:00.003+05:302012-02-07T22:05:01.585+05:30Vouchers<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">A voucher is a basic recording document. Day to day transaction is entered in Tally through vouchers. It is a key to all business information. Entering the transaction through voucher is called Voucher or Voucher Entry. </span></div>
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</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><b>VOUCHER TYPE</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">Basic voucher types available in Tally are :-</span></div>
<ol>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Receipt Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Payment Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Purchase Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Sales Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Contra Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Journal Voucher</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Stock Journal</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Physical Stock</span></li>
<li><span style="font-family: Georgia,'Times New Roman',serif;">Memorandum Voucher</span></li>
</ol>
<span style="font-family: Georgia,'Times New Roman',serif; font-weight: bold;">Note:</span><br />
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">Among the above types of vouchers, Memorandum Voucher is a purely non-accounting voucher. That is, the entries in this voucher do not affect the accounts, because, Tally does not post these entries to ledgers. Therefore, these vouchers do not affect the final results.<b> </b></span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><b>RECEIPT VOUCHER (F6)</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">Receipt Voucher is used to enter all receipts of cash or bank (receipt of bank cheques or interest on bank deposits). Even the amount received from the sales of fixed assets (not being the regular course of business) must also be treated as Receipts. </span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><b>Note:-</b> All Receipt Vouchers must have at least one Debit entry for cash or bank account. Always a Receipt Voucher will prompt to enter the credit aspect of the voucher first. </span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">If bill-wise details must be stored in the voucher, immediately after selecting the name of Sundry Debtor, from whom the amount is received, method of adjustments will be asked. Select 'Agst Ref.' (Against Reference), select the number of the bill towards which the amount is received and specify the amount received. </span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><b>PAYMENT VOUCHER (F5)</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">Payment voucher is used to enter all type of payments by cash or bank (payment by bank cheques). Even the amount paid for the purchase of Fixed Assets like Purchase of Machinery, Land, Furniture etc. (not being the regular course of business) must also be treated as payments.<b> </b></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><b>Note:- </b>All payment vouchers must have at least one credit entry for cash or bank account. Always a Payment Voucher will prompt to enter the debit aspect of the voucher first.</span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;">If bill-wise details has to be maintained, then, after selecting the name of person to whom the payment is made (Sundry Creditor), Tally will prompt to select the Method of Adjustment. Select 'Agst Ref'. (Against Reference), select the number of bill, towards which the payment is made and enter the amount paid.<b> </b></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><b>CONTRA VOUCHER (F4)</b> </span><br />
<span style="font-family: Georgia,'Times New Roman',serif;">Cash or Cheque deposited into bank, cash withdrawn from bank, transfer of funds from the bank account to another will be entered through contra voucher. Here Debit and Credit accounts can be only cash and bank accounts. If the amount is deposited into the bank, then Bank A/c will be debited and Cash A/c will be credited. If the amount is withdrawn from bank, then Cash A/c is debited and Bank A/c will be credited.If one bank's cheque is deposited into another bank, then the first Bank A/c is credited and later Bank A/c is debited. Always a Contra Voucher will prompt the user to enter the credit aspect of the voucher first. A contra voucher can be entered by pressing the function key F4.<b> </b></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><b>PURCHASE VOUCHER (F9)</b> </span><br />
<span style="font-family: Georgia,'Times New Roman',serif;">Purchase Voucher is meant for purchase entries. Purchases made in the regular course of business (not of office use) will be entered in this voucher. Purchase of fixed assets (not being the regular course of business) must be entered through Payment voucher and not Purchase Voucher. Generally, purchases are made on credit. Tally allows you to enter both cash and credit purchases. A Purchase Voucher can be entered by pressing the function key F9.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"> <b>Debit Credit</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">1) Purchase A/c 1) The account of supplier (sundry creditors) or cash or </span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"> bank A/c</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">2) Input VAT/Tax if any 2) Discount on purchase if any</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">In a Purchase Voucher, always credit aspect (account of supplier of goods) is entered first.</span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><b>Sales Voucher (F8)</b> </span><br />
<span style="font-family: Georgia,'Times New Roman',serif;">Sales voucher is meant for sale entries. Sales made in the regular course of business (not sale of fixed assets of the office) will be entered in this voucher. Sales of Fixed Assets (not being the regular course of business) must be entered through Receipt Voucher and not Sales Voucher. Generally, business sales are made on credits. Tally allows the user to enter both cash and credit sales. A sales voucher can be entered by pressing the Function Key F8.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">Debit and credit accounts of Sales Voucher are :-<span style="font-family: Georgia,'Times New Roman',serif;"><b> </b></span></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><b> Debit Credit</b></span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">1) The ledger account of buyer or 1) Sales A/c</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"> customer or Cash or Bank A/c</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"> </span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">2) Discount on Sales if any 2) Duty, Tax, Packing & Forwarding charges </span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"> if any</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">In a Sales Voucher, always Debit aspect (the account of buyer) is entered first. </span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><b>Note : - <span style="font-weight: normal;">VAT, CST (Central Sales Tax), etc. all belong to the group Duties & Taxes. Packing & Forwarding Charges belong to the group Indirect Expenses.</span> </b></span></span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><b>JOURNAL VOUCHER (F7)</b> </span></span><br />
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">A journal voucher is an adjustment voucher. All amounts to be adjusted between two accounts are to be passed by journal. By adjustment between the accounts we mean, there is no physical movement of funds. Purchase Return, Sales Return, Depreciation on Fixed Assets etc., can be entered through the Journal. </span>Journal entries can be entered by pressing the Function Key F7. </span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<br />
<span style="font-family: Georgia,'Times New Roman',serif;">In Accounting Features, if '<b><i>Use Debit/Credit Notes</i><span style="font-weight: normal;">' option is set to 'YES', then voucher type is set to Journal (F7), three options will be displayed :-</span></b> </span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;">Credit Note</span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><b><span style="font-weight: normal;">Debit Note</span></b></span><span style="font-weight: bold;"> </span></span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-weight: bold;">Credit Note <span style="font-weight: normal;">- Credit Note is used to enter the transaction related to Sales Return or when there is an excess debit to a party. </span></span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">In case of Credit Note, always credit aspect (ledger account of party who is returning the goods) is entered first.<span style="font-weight: bold;"> </span></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-weight: bold;">Debit Note <span style="font-weight: normal;">- Debit Note is used to enter the transaction related to Purchase Return or when a customer is short-billed. </span></span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;">In case of Debit note, always the Debit aspect (the ledger account of party to whom the goods are returned) is entered first.<span style="font-family: Georgia,'Times New Roman',serif;"><b> </b></span></span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><b>STOCK JOURNAL</b> </span></span><br />
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">This is used to transfer of materials. It allows to make the entry of items moved from one godown to another without affecting the financial accounts. </span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><br />
</span></span></div>
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: justify;">
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;">To make the entry for Stock Journal press the keys ALT + F7. </span></span><br />
<ul>
<li><span style="font-family: Georgia,'Times New Roman',serif;">(Consumption), Select the source godown.</span></li>
<span style="font-family: Georgia,'Times New Roman',serif;">
<li>From the list of godowns, select the source godown.</li>
<li>Enter the quantity of items being transferred in place of Rate. </li>
<li>In Destination (Production) Enter the name of item received. </li>
<li>Type the quantity and rate of items sent to different godowns. </li>
<li>Type a brief note of transaction in place of narration. <span style="font-family: Georgia,'Times New Roman',serif;"><span class="Apple-style-span" style="font-weight: bold;"> </span></span></li>
</span></ul>
<span style="font-family: Georgia,'Times New Roman',serif;"><span style="font-family: Georgia,'Times New Roman',serif;"><span class="Apple-style-span" style="font-weight: bold;">PHYSICAL STOCK JOURNAL (ALT + F10)</span> </span></span><br />
<span style="font-family: Georgia,'Times New Roman',serif;"></span><span style="font-family: Georgia,'Times New Roman',serif;">This voucher is used to enter actual stock of items on a given date. Whenever the actual stock is checked, make an entry in the Physical Stock Voucher to specify the correct stock. The stock at this point is considered to be the stock in hand and all calculations are based on this stock. Tye the name of item, name of Godown, Batch/Lot Number, Manufacturing Date, Expiry Date, Quantity & Amount.<b> </b></span><br />
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<span style="font-family: Georgia,'Times New Roman',serif;"><b>MEMO VOUCHER (F10)</b> </span><br />
<span style="font-family: Georgia,'Times New Roman',serif;">This is purely non-accounting voucher. That is the entries in this voucher do not affect the accounts because these entries are not posted to ledgers and they do not affect the final result of the company. Tally stores Memo Vouchers in a separate register called Memo Register.</span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;">There are two types of Memo Vouchers. They are Memorandum and Reversing Journal. Reversing Journal can be entered only if the Accounting Features option '<b><i>Use Reversing Journal</i><span style="font-weight: normal;">' is set to </span>YES</b>.</span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;">Memorandum entries are made if any suspense payments are made (if any payments are made to an employee to buy some stationary items, actual payment entry can be passed only after the purchase is made. Instead of waiting till the purchase is made and the remaining amount is returned. A memo voucher to the extent of amount given to the employees can be entered and when the transaction is finalized, it can be converted to Payment Voucher, if voucher not verified at the time of entry or if the items are given on approval. Memo Vouchers are entered by pressing the Function Key F10.<b> </b></span><br />
<br />
<span style="font-family: Georgia,'Times New Roman',serif;"><b>Reversing Journals</b> </span><br />
<span style="font-family: Georgia,'Times New Roman',serif;">Reversing Journals are special journals that are automatically reversed after the date of journal. They exit only for a day and are effective on the date of the reversing journal. Moreover, they are effective only when they are called for in the reports. (e.g. Balance Sheet). For example, on 30th June, if you want to view the Balance Sheet as of that day. But June salaries are not due for payment until the first week in July. Therefore, there is a large liability, which is not reflected in the Balance Sheet. To overcome this, an Reversing Journal is to entered dated 30th June by Salary (Debit) and Provisions (Credit) to the extent of total amount of salary due. (Provisions a ledger account to be created under the Accounts Group - Current Liabilities).</span></div>
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-9333747019584248592010-01-26T21:34:00.003+05:302010-01-28T01:17:32.712+05:30Account Groups<span style="font-family: Georgia, 'Times New Roman', serif;">Based on the requirements of Indian Accounting System, Tally provides a set of 28 pre-defined groups, of those 15 are primary groups and 13 are sub-groups as follows:</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"><b>CAPITAL ACCOUNT</b></span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group to hold the Capital and Reserves of the company. Accounts like Partners capital A/c, Proprietors Capital A/c, Share Capital, Partner or Proprietors Drawings etc. belong to this group. </span><br />
<div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Reserves and Surplus</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a sub-group of Capital Account. Accounts like Investment Allowance Reserve, General Ledger, and other such Reserves belong to this group. This Group is also called by the name Retained Earnings. Open ledgers like Capital Reserve, General Reserve, Reserve for Depreciation, etc.</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>CURRENT ASSETS</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. All assets of the company are placed under this head. But generally accounts are created for its sub-groups. There are six sub-groups to Current Assets. Any asset, which does not fall into six subgroups can be created under the group Current Assets.</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Bank Accounts</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the first sub-group of Current Assets. Any banks saving or current A/c's can be placed under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Cash-in-hand</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the second sub-group of Current Assets. This will hold Cash A/c only. Cash accounts is automatically created under this group, when a company is created. You are permitted to open more cash accounts, if necessary. </span><br />
<span style="font-family: Georgia, 'Times New Roman', serif;"><b>Note :- </b>An account under cash-in-hand group or Bank accounts/Bank OCC A/c group is printed as separate Cash Book in the traditional Cash Book format and does not form part of the ledger. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Deposits (Assets)</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the third sub-group of Current Assets. Accounts related to Deposits like Security Deposits, Fixed Deposits and Rental Deposits etc. or any deposit made by the company (not received by the company, which is a liability), can be created in this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Loans and Advances (Assets)</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the fourth sub-group of current Assets. Accounts related to advances and loans of non-trading nature for example, advances against salaries, work contracts, advances to purchase fixed assets etc. can be created in this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Stock-in-hand</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the fifth sub-group of Current Assets. This is used to hold the opening and closing stock figures of certain accounts like raw materials, work in progress, finished products etc. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Sundry Debtors</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the sixth sub-group of Current Assets. This group is used to create the account of customer (all parties to whom credit sales are made). </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>CURRENT LIABILITIES</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group to hold the outstanding and statutory liabilities of the company, such as ESI, PF, TDS etc. It has three sub-groups. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Duties and Taxes</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the first sub-group in Current Liabilities. Accounts of trade duties and taxes like Excise, VAT, Central Sales Tax etc., can be opened in this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Provisions</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the second sub-group of Current Liabilities. It is used to hold tax provisions like Income Tax. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Sundry Creditors</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the third sub-group of Current Liabilities. Liabilities Account of trade creditors/suppliers (all parties from whom credit purchases are made) are created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>FIXED ASSETS</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Accounts like building, land, furniture, machinery etc. can be created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>INVESTMENTS</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. It holds the ledger accounts of all types of investments made by the company on shares, bonds, debentures and other securities of the company as well as other companies. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>LOANS (LIABILITY)</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Accounts of loans taken by the company are created in this group. It has three sub-groups. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Bank OD Accounts (Bank OCC Accounts)</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is the first sub-group of loans. Overdraft accounts of a bank like hypothecation accounts, bill discounting accounts etc., can be opened under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Secured Loans </b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is second sub-groups of loans. Accounts of loans, taken by the company from financial corporations, bank etc., against its fixed assets are created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>Unsecured Loans</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is third sub-group of loans. Accounts of loans taken by the company unconditionally from outside parties including debtors and partners can be created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>SUSPENSE ACCOUNT</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Account of money received or paid by the company, the nature of which is not known like money paid as travelling advance, can be created in this group. This is a balance sheet item. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>MISC. EXPENSES (ASSETS)</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">A rarely used primary group. Preliminary and pre-operative expenses, which have been capitalized to the extent of not writing them off in the profit and loss account, will fall into this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>SALES ACCOUNT</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. (VAT Sales A/c, State Sales A/c etc. can be created under this group)</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>PURCHASE ACCOUNT</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. (VAT Purchase A/c, State Purchase can be created under this group). </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>DIRECT INCOME [INCOME DIRECT]</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Selling the goods of the company can create accounts of direct income of the company like income by selling the goods of the company under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>INDIRECT INCOME [INCOME INDIRECT]</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Accounts of indirect income like rent received, interest received, commission received etc., can be created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>DIRECT EXPENSES [EXPENSES DIRECT]</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. The accounts related to payment of Wages, Freight, Coolie, Carriage, Electricity Bill, Water Bill etc., can be created under this group.</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><br />
</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif; font-weight: bold;">INDIRECT EXPENSES [EXPENSES INDIRECT]</span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. The accounts of payments made for advertisement, maintenance of vehicles, salary paid to staff, depreciation on fixed assets, travelling expenses etc., can be created under this group. </span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b><br />
</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;"><b>BRANCH / DIVISIONS</b></span><br />
</div><div style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">This is a primary group. Accounts of branches, divisions, sister concerns etc. of the existing company can be created under this group. </span><br />
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-41394137292118057632010-01-16T16:08:00.001+05:302010-01-16T16:10:10.863+05:30Pre-defined groups of Accounts<span style="font-family: Georgia, "Times New Roman", serif;"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Groups are a collection of Ledgers of the same nature of transaction.</span></span><br />
<br />
<div style="text-align: justify;"><span style="font-family: Arial;">Tally provides a list of 28 pre-defined Groups. Of these <strong>15</strong> are <strong>Primary Groups</strong> and <strong>13</strong> are <strong>Sub-Groups</strong>. Tally has pre-defined ledgers for Cash (under Cash-in-hand group) and for the Profit & Loss A/c (under primary group). </span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">Out of the 15 pre-defined primary groups, given below are <strong>9 pre-defined Primary Groups</strong> (including the 13 Sub-groups) that appear in the <strong>Balance Sheet</strong>. These 9 primary groups are Capital in nature and hence appear in the Balance Sheet.</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"><strong>Note</strong></span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">Items in [square brackets] are aliases for the Group Names. This is another powerful feature of Tally, which allows us to refer the same item under several different names. </span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">1. Capital Account</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Reserves & Surplus [Retained Earnings]</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">2. Current Assets</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Bank Accounts</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Cash-in-hand</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Deposits (Assets)</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Loans & Advances (Asset)</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Stock-in-hand</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Sundry Debtors</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">3. Current Liabilities</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Duties & Taxes</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Provisions</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Sundry Creditors</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">4. Fixed Assets</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">5. Investments</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">6. Loans (Liability)</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Bank OD A/c [Bank OCC A/c]</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Secured Loans</span><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"> Unsecured Loans</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">7. Suspense A/c</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">8. Misc. Expenses (Asset)</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">9. Branch/Divisions</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">Out of the 15 pre-defined groups, given below are the balance <strong>6 pre-defined groups</strong> that appear in the <strong>Profit & Loss Account</strong>.</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;"><strong>Note</strong></span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">Items in [square brackets] are aliases for the Group Names. This is another powerful feature of Tally, which allows us to refer to the same item under several different names. </span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">10. Sales Accounts </span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">11. Purchase Accounts</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">12. Direct Incomes [Income (Direct)]</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">13. Indirect Incomes [Income (Indirect)]</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">14. Direct Expenses [Expenses (Direct)]</span><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: Arial;">15. Indirect Expenses [Expenses (Indirect)]</span><br />
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-90831094460702970132010-01-16T00:35:00.003+05:302010-01-16T00:45:27.626+05:30Meaning of an Accounting Cycle<div style="text-align: justify;">The process of accounting from recording to summarizing is also termed as an Accounting Cycle. The sequential steps involved in an accounting cycle are :-<br /><br /><span style="font-weight: bold;">Step - 1 (Journalising)<br /><br /></span>Record the transactions and events in the Journal.<br /><br /><span style="font-weight: bold;">Step - 2 (Posting)<br /><br /></span>Transfer the transactions (recorded in the journal), in the respective accounts opened in the Ledger. <span style="font-weight: bold;"><br /><br /><span style="font-weight: bold;">Step - 2 (Balancing)<br /><br /></span></span>Ascertain the difference between the total of debits amount column and the total of credit amount column of a ledger amount.<br /><br /> <span style="font-weight: bold;"><span style="font-weight: bold;">Step - 3 (Trial Balance)<br /><br /></span></span>Prepare a list showing the balances of each and every account to verify whether the sum of the debit is equal to the sum of the credit balances.<br /><br /><span style="font-weight: bold;">Step - 4 (Income Statement)<br /><br /></span>Preparing Trading and Profit & Loss Account to ascertain the profit & loss for the accounting period.<br /><br /><span style="font-weight: bold;">Step - 5 (Position Statement i.e. Balance Sheet)<br /><br /></span>Prepare a balance sheet to ascertain the financial position as at the end of the accounting period.<br /><br /> <span style="font-weight: bold;"><br /></span><span style="font-weight: bold;"><span style="font-weight: bold;"></span><span style="font-weight: bold;"></span><br /><br /><br /></span></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-64410782804793678952010-01-16T00:08:00.003+05:302010-01-16T00:15:05.010+05:30Double Entry System<div style="text-align: justify;">There are two systems of keeping records i.e. (i) Single Entry System and (ii) Double Entry System. The single entry system appears to be time saving and economical but it is unscientific as under this system some transactions are not recorded at all whereas some other transactions are recorded only partially. On the other hand, the double entry system is based on scientific principles and is, therefore, used by most of the business houses. The system recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction. Under this system in every transaction an account is debited and some other account is credited. The crux of accountancy lies in finding out which of the two accounts are affected by a particular transaction and out of these two accounts, which account is to be debited and which account is to be credited.<br /></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-57507102359302682212010-01-15T23:58:00.004+05:302010-01-16T00:15:05.010+05:30Book-keeping & Accounting<div style="text-align: justify;">Book-keeping and accounting are often used interchangeably but they are different from each other. <span style="font-weight: bold;">Book-keeping</span> is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner. It is the science and art of correctly recording in books of account all those business transactions that result in the transfer of money or money's worth. It is mechanical and repetitive. This work is usually entrusted to junior employees of accounts section of a business house.<br /><br /><span style="font-weight: bold;">Accounting</span> is a broader and more analytical subject. It includes the design of accounting systems, which the book-keepers use, preparation of financial statements, audits, cost studies, income-tax work and analysis and interpretation of accounting information for internal and external end-users as an aid to making business decisions. This work requires more skill, experience and imagination. The larger the firm, the greater is the responsibility of the accountant. It can be said that accounting begins where book-keeping ends. Book-keeping provides the basis for accounting.<br /></div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-5412509189872120832009-12-13T22:51:00.025+05:302010-01-26T20:20:24.488+05:30TALLY<div style="text-align: justify;"><span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">The first version of Tally was released in 1988 and through continuous development, it is now recognised as one of the leading accounting packages across the globe. What sets a company apart is as much in its DNA as its business accomplishments. Tally has differentiated itself emphatically on both counts. Since its inception in 1986, when it was steered by the visionary and passionate Late Shri S. S. Goenka, to its standing more than two decades on as India’s leading business management software product company, Tally has come a long way.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Over two decades of technological innovation and relentless perfection cannot but show. Tally products are transforming businesses across industry in over 94 countries. More than half a million business users are testament to its product philosophy ...defined by the 'Power of Simplicity'. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">After Tally, businesses in India were never the same. With Tally, their future looks strong. At Tally, the revolution is very much on.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Tally empowers business owners to manage their business smoothly. Designed to keep in mind the needs of the Indian Businessmen, it has several key additions in terms of functionalities. The multilingual capacity of Tally gives tremendous freedom of communication that one can maintain business accounts in any language. Tally Silver/Gold incorporate multiple language support at different levels. The accounting software helps the user to interact with the software using menu options in different regional language. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Using Tally we are able to send separate documents to suppliers, business associates, customers etc., in their language, while maintaining accounts in our language. So language is no longer a barrier in this software. Tally takes one more significant step towards ensuring that concrete business advantages are realized from accounting on computers. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;"><b>The advance technology empowering Tally allows us to:</b></span><br />
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<ul><li><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Enter input data in the language of our choice.</span></li>
<li><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Capture language-specific aliases for all masters.</span></li>
<li><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Print reports, vouchers and invoices in any language, based on the information input in a language-specific alias through transliteration. </span></li>
<li><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Enter data through normal as well as phonetic keyboards.</span></li>
<li><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Interact with the menu options in a vernacular language, by choosing from the list of built-in interface languages.</span></li>
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</div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">It is worth confirming that Tally maintains full, auditable, double-entry book-keeping exactly as you would expect with a manual ledger system. All financial transactions are recorded at the level of detail we specify, and Tally has the capacity to handle millions of transactions - more than we are ever likely to need.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Tally follows the 'Single Ledger' concept of accounting, which is the modern way of managing accounts. This is in direct contrast to Subsidiary Ledger Accounting. Thus, all financial entries are performed using ledgers or account heads. Ledger account heads are created to identify transactions. The single ledger concept does away with the need for sub-ledgers and corresponding control accounts in General Ledger. Ledger balances by themselves do not convey much without some form of classification.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Debit and credit entries in the books are kept separate to highlight the effect of each transaction and the difference between the sum of all the debit amounts and the sum of all the credit amounts provides the balance of the account. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Tally, therefore, gives us a powerful way to group ledger information, which is meaningful in reports and compliant with laws. Groups, in Tally serve to both classify and identify account heads according to their nature and enable presentation of summarised information.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">A powerful feature of Tally allows us to create a personalised chart of accounts to reflect the nature of our business and how we wish to keep the books. </span><br />
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<strong><span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Understanding Classification of Groups & Ledgers</span></strong><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">All financial entries are performed using ledgers or account heads. </span><br />
<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Ledger account heads are the actual account heads to which we identify the transactions - that is - <strong>we pass all voucher entries using ledgers</strong>. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Ledger of same nature of transacton should be classified under a group, to understand the transactions in total. A <strong>Group</strong> is a collection of ledgers, which are similar in nature of transaction. By this classification one can generate <strong>reports</strong>, which are both meaningful as well as compliant with laws. </span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Traditionally, grouping of accounts is a post-accounting activity that is done only when reports are needed. This has an inherent drawback of delayed reports that are not available at had when required. Tally gives us great flexibility in setting up our chart of accounts. It allows to group ledger accounts right at the time of creating our accounts chart. Our reports and statements will reflect the desired classification at all times.</span><br />
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<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">Further, Tally permits us to re-group our ledgers anytime. However, re-grouping can be done only by a user account that has requisite authority under the access control list.</span><br />
<span style="font-family: 'Helvetica Neue', Arial, Helvetica, sans-serif;">At the highest level of grouping, accounts are classified into capital or revenue - more specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set of reserved groups and allows us to modify their names or create sub-groups.</span><br />
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0tag:blogger.com,1999:blog-2042878191199361560.post-64507418829761047032009-04-03T22:48:00.006+05:302009-12-07T19:32:49.488+05:30BASIC TERMS USED IN ACCOUNTS<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore"><span style="font:7.0pt "Times New Roman""><span class="Apple-style-span" style="font-size:medium;">1.</span><span class="Apple-tab-span" style="white-space:pre"> </span> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Entry</span></b></span><br /></p> <p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;tab-stops:list .25in"><span style="font-family:Georgia;color:black;"><span style="mso-tab-count:1"></span> Recording of a transaction in any book of accounting is called an<span class="apple-converted-space"> </span><i>Entry</i>.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Proprietor (Owner)</span></b></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list .25in"><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;"><span class="Apple-style-span" style="font-weight: normal; "> The person who invests his money in the business and bears all the risks connected with the business is called the<span class="apple-converted-space"> </span><i>proprietor</i>.</span></span></b></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">3. </span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Capital</span></b></span><span style=" ;font-family:Georgia;color:black;"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:.25in;tab-stops:list .25in"><span style="font-family:Georgia;color:black;">It means the amount invested by the proprietor in the business. For the business,<span class="apple-converted-space"> </span><i>capital </i>is a liability towards the owner. It is an owner’s account i.e. a personal account.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">4.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Assets</span></b></span><span style=" ;font-family:Georgia;color:black;"><br />Economic resources owned by an entity which may or may not have realizable value. An expenditure will be classified as an asset when the benefit from which is yet to be enjoyed.<span class="apple-converted-space"> </span> <o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l3 level1 lfo2; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">5.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Liabilities</span></b></span><span style=" ;font-family:Georgia;color:black;"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;tab-stops:list .25in"><span style="font-family:Georgia;color:black;"><span style="mso-tab-count:1"></span> The amount which the business owes and has to return to the outsiders is termed<i> Liabilities</i>.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l1 level1 lfo3; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">6.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Debtor</span></b></span><span style=" ;font-family:Georgia;color:black;"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;tab-stops:list .25in"><span style="font-family:Georgia;color:black;"><span style="mso-tab-count:1"></span> A person who owes money to the business mostly on account of credit sales of goods<span class="apple-converted-space"> </span> <o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;tab-stops:list .25in"><span style="font-family:Georgia;color:black;">For example, when goods are sold to a person on credit that person pays the price in future. He is called a<span class="apple-converted-space"> </span><i>debtor</i><span class="apple-converted-space"> </span>because he owes the amount to the organisation.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">7.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Creditor</span></b></span><span style=" ;font-family:Georgia;color:black;"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;tab-stops:list .25in"><span style="font-family:Georgia;color:black;"><span style="mso-tab-count:1"></span> Any person who gives credit is a<span class="apple-converted-space"> </span><i>creditor</i>. The proprietor gives money to the business so he is a<span class="apple-converted-space"> </span><i>creditor</i><span class="apple-converted-space"> </span>to the business. A<span class="apple-converted-space"> </span><i>creditor</i><span class="apple-converted-space"> </span>is a person to whom money is owed by the business organisation.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">8.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Revenue or Income</span></b></span><span style=" ;font-family:Georgia;color:black;"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:.25in;text-align:justify;tab-stops:list .25in"><span style="font-family:Georgia;color:black;">It is the income of a recurring or non recurring nature from any source related/not related to business.<o:p></o:p></span></p> <p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span style="font-family:Georgia; mso-fareast-font-family:Georgia;mso-bidi-font-family:Georgia;color:black;"><span style="mso-list:Ignore">9.<span style="font:7.0pt "Times New Roman""> </span></span></span><span dir="LTR"><b><span style=" ;font-family:Georgia;color:black;">Expense<span class="Apple-style-span" style="font-weight: normal; "></span></span></b></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"></span> It is the amount spent in order to produce and sell the goods and services which generate the revenue. For example, payment of salaries to bring some benefit to the business. Expenses can be of the following types:</p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"> <span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Revenue Expenditure or Expenses</span><br /></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"></span> When the benefit of an expense is not likely to be available for one year or less, it is treated as revenue. For example, salaries, wages, power and fuel, maintenance expenses of assets etc. </p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Capital Expenditure</span><br /></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal;">When the benefit of an expenditure is not exhausted in the year in which it was incurred but is available over a number of years, it is considered as <span class="Apple-style-span" style="font-style: italic;">Capital Expenditure</span>. Expenditure incurred for purchase of fixed asset is the best example. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold; ">Deferred Revenue Expenses</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">When the benefit of a revenue expenditure continues for more than one year, it is<span class="apple-converted-space"> </span><span style="mso-spacerun:yes"> </span>treated as<i> Deferred Revenue Expense</i>. Such expenditure is not written off in one year<span class="apple-converted-space"> </span><span style="mso-spacerun:yes"> </span>but over a period of 2 or 3 years. For example, expenditure incurred on heavy<span class="apple-converted-space"> </span>advertisement. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-style: italic; font-weight: bold; "><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="font-style: normal; font-weight: normal;"> </span></span>Revenue Expenditure is a Nominal Account, since it is a current expenditure. Whereas capital expenditure is a Real Account, since it is used for buying fixed<span style="mso-spacerun:yes"> </span>assets. </span><br /></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">10. <span class="Apple-style-span" style="font-weight: bold;">Purchases</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"></span> The term purchase is used only for the purchase of goods. Goods are those things which are purchased for resale or for producing the finished products which also are meant to<span class="apple-converted-space"> </span>be sold.</p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"> <span class="Apple-tab-span" style="white-space:pre"> </span>Goods purchased for cash are called Cash Purchases whereas goods purchased on credit are called Credit Purchases. 'Purchases' includes both cash and credit purchase of<span class="apple-converted-space"> </span>goods. </p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">11.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Sales</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">The term sale is used for the sale of goods only. When goods are sold for cash, they are<span style="mso-spacerun:yes"> </span>Cash Sales but if they are sold on credit it is referred to as Credit Sales. ‘Sales’ include both cash and credit sales.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">12.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Stock</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">The term Stock refers to goods lying unsold on a particular date. Stock is valued on the<span style="mso-spacerun:yes"> </span>cost or market price whichever is less. It may be an opening or a closing stock. </span><span class="Apple-style-span" style="font-style: italic;">Opening stock</span><span class="Apple-style-span" style="font-weight: normal; "><span class="Apple-style-span" style="font-style: italic;"> </span> means goods lying unsold in the beginning of the accounting year. </span><span class="Apple-style-span" style="font-style: italic;">Closing Stock</span><span class="Apple-style-span" style="font-weight: normal; "> means goods lying unsold at the end of the accounting period. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">13.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Losses</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">Loss is something against which the business receives no benefit. For example, loss by<span style="mso-spacerun:yes"> </span>theft, loss by fire etc.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">14.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Drawings</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">It is the amount of money taken away by the proprietor for his personal use.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">15.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Discount</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">When customers are allowed any deduction or allowance from an amount due, that is called Discount. Discount payable is an expense of the organisation where discount<span style="mso-spacerun:yes"> </span>received is an income. Discount can be trade discount or cash discount.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Trade Discount</span><br /></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">When some discount is allowed in the prices of goods on the basis of sales of the items,<span class="apple-converted-space"> </span><span style="mso-spacerun:yes"> </span>it is called<span class="apple-converted-space"> </span><i>Trade Discount</i>. Trade discounts are not recorded in the books of accounts.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Cash Discount</span><br /></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">When debtors are allowed some discount in the prices of the goods for quick payment, it is called <i>Cash Discount</i>.<span style="mso-spacerun:yes"> </span></span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">16.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Solvent</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">A person who is in a position to pay his debts as they become due.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">17.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Insolvent</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">A person who is not in a position to pay his debts as they become due.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">18.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Bad Debts</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">When debtors fail to pay their dues either partially or completely and all hope of recovering the amount is lost, the amount owed by such debtors is termed as<span class="apple-converted-space"> </span><i>bad debts and</i> it is a loss to the business. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">19.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Reserve for Bad Debts/Provision for Bad Debts</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">A reserve from the profits of the business is created for bad and doubtful debts. It is created to meet any anticipated loss on account of bad debts.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">20.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Wages</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">It is the remuneration paid to the labourers in a factory. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">21.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Salaries</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">It is the remuneration paid to the employees working in the administrative building.</span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">22.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Profit</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal; ">After paying all the possible expenses relating to the business viz. wage, salaries, rent, interest etc. the surplus amount that is left is called the<i> profit</i>. It is a gain hence is a Nominal Account. </span><br /></span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in">23.<span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: bold;">Brokerage /Commission</span></p><p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto; margin-left:.25in;text-align:justify;text-indent:-.25in;mso-list:l2 level1 lfo4; tab-stops:list .25in"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-tab-span" style="white-space:pre"> </span><span class="Apple-style-span" style="font-weight: normal;">This is an expense of the business. It is a Nominal Account. </span><br /></span></p>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com1tag:blogger.com,1999:blog-2042878191199361560.post-52951439128167111942009-03-26T19:24:00.013+05:302010-01-16T01:51:45.626+05:30METHODS OF ACCOUNTING<div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">The main object of accounting is to know the result of a business house. There are three accounting methods or systems to find out the business results, which are summarized below:<br />
<br />
</div><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><o:p><span style="white-space: pre;"> </span>1.<span style="font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="LTR">Accrual or Mercantile System</span></o:p><br />
</div><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><o:p><span dir="LTR"><span style="white-space: pre;"> </span>2.<span style="font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="LTR">Cash System</span></span></o:p><br />
</div><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><o:p><span dir="LTR"><span dir="LTR"><span style="white-space: pre;"> </span>3.<span style="font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="LTR">Hybrid System or Mixed System</span></span></span></o:p><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
</div><div class="ListParagraph" style="line-height: normal; margin: 0in 0in 0.0001pt 0.25in; text-align: justify; text-indent: -0.25in;"><span dir="LTR" style="font-size: small;"><b><span style="font-family: Georgia,"Times New Roman",serif;">Accrual or Mercantile System of Accounting:</span></b></span><br />
<span dir="LTR"><b><span style="font-size: large;"><span style="font-family: Georgia,"Times New Roman",serif;"> </span></span><o:p></o:p></b></span><br />
</div><div class="MsoNormalCxSpFirst" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
This system of accounting is based on the Accrual concept. In this system,<br />
</div><div class="MsoNormalCxSpFirst" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
</div><ul style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><li>All the revenues are recognised when they are earned, not when are received in cash, and</li>
</ul><ul style="font-family: Georgia,"Times New Roman",serif;"><li style="text-align: justify;">Expenses are matched against such revenue or the expenses should be recognised when they are incurred, not when they are paid</li>
</ul><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">For example, suppose a building is taken on rent for the purpose of business of 1<sup>st</sup> February. The rent is paid only for 10 months. The financial year ends on 31<sup>st</sup> December. In such a situation, if mercantile system of accounting is followed, then the total rent for rent for eleven months should be shown in the profit and loss account, irrespective of the actual amount paid for rent during the year.<br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
</div><div class="ListParagraph" style="line-height: normal; margin: 0in 0in 0.0001pt 0.25in; text-align: justify; text-indent: -0.25in;"><span style="font-size: large;"><b><span style="font-family: Calibri;"></span></b></span><span dir="LTR"><b><span style="font-family: Georgia,"Times New Roman",serif; font-size: small;">Cash System of Accounting:</span><o:p></o:p></b></span><br />
</div><div class="MsoNormalCxSpFirst" style="line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
<div style="font-family: Georgia,"Times New Roman",serif;">Under this system of Accounting,<br />
</div></div><div class="MsoNormalCxSpFirst" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
</div><ul style="font-family: Georgia,"Times New Roman",serif;"><li>All the revenues are recognized, when they are received in cash, not when they are earned, and</li>
</ul><ul style="font-family: Georgia,"Times New Roman",serif;"><li>Similarly, the expenses are recognized, when they are paid in cash, not when they are incurred.<br />
</li>
</ul><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">In the case of above example, if the cash system of accounting is followed, then the rent for only 10 months shall be shown in the profit and loss account.<br />
</div><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">Thus under this system, only cash receipt and payments are recorded. No treatment is done for outstanding and prepaid items.<br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt; text-align: justify;"><br />
</div><div class="ListParagraph" style="line-height: normal; margin: 0in 0in 0.0001pt 0.25in; text-align: justify; text-indent: -0.25in;"><span dir="LTR" style="font-family: Georgia,"Times New Roman",serif; font-size: small;"><b>Hybrid System of Accounting: </b></span><br />
<br />
</div><div class="MsoNormalCxSpFirst" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">This system is mixture of cash system and mercantile system. Under this system of accounting,<br />
</div><ul style="font-family: Georgia,"Times New Roman",serif;"><li><span style="font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span><span dir="LTR">Some items of Incomes are accounted on cash system and other on mercantile system, and</span><br />
</li>
</ul><ul style="font-family: Georgia,"Times New Roman",serif;"><li><span dir="LTR">Some items of Expenses are accounted on Cash system and other on mercantile system.</span><br />
</li>
</ul><div class="MsoNormal" style="font-family: Georgia,"Times New Roman",serif; line-height: normal; margin-bottom: 0.0001pt; text-align: justify;">However, it is to be noted that practically this system is not adopted by any business house, because section 145 of Income tax Act, 1961 does not allow any person to maintain accounts on hybrid system. This section permits only mercantile system or cash system.<br />
</div>Rajivhttp://www.blogger.com/profile/07709168049949870446noreply@blogger.com0