Advantages (Objectives of Trial Balance)1. It ensures that the transactions
recorded in the books of accounts have identical debit and credit amount.
2. Balance of each ledger account
has been computed correctly.
3. Balance of each and every ledger
account has been transferred accurately and on the correct side of the sheet on
which trial balance has been prepared.
4. The debit and the credit columns
of trial balance have been added up correctly.
5. Preparation of final accounts is
not possible without preparing trial balance first.
6. Agreed trial balance is a prima
facie evidence of the arithmetical accuracy of the accounting books maintained.
7. Errors which are revealed by
preparing trial balance (listed below) are rectified even before the preparation
of final accounts.
Errors revealed by (the preparation of) trial balanceIf trial balance does not agree,
the disagreement may be due to :
(i) Omission to post an amount into
ledger: If an item is not posted from journal or subsidiary book to ledger, two
sides of trial balance shall not agree, e.g., if goods sold on credit to A are
recorded properly in sales book but not debited to A's account' in ledger, the
debit side of trial balance shall fall short.
(ii) Omission to post an amount in
trial balance: It is natural if balance 'of an account is not recorded in trial
balance the two sides of trial balance shall not agree which is an indication of
error in accounts.
(iii) Wrong totaling or balancing
of ledger account: If any account in the ledger is wrongly totaled or balanced,
then also the trial balance shall not agree.
(iv) Wrong totaling of subsidiary
books: If the total of any subsidiary book is wrongly cast, it would cause a
disagreement in the trial balance, e.g., if purchase book totaled Rs. 2,500
instead of 2,050, the debit side of the trial balance shall exceed the credit
side by Rs. 450.
(v) Posting on the wrong side: When
an item is by mistake posted on the wrong side of the ledger account it would
cause disagreement in the trial balance, e.g., if Rs. 200 have been allowed as
discount and while posting into discount account the amount has been credited to
discount account. It will result in a difference of Rs. 400 in two sides of
trial balance.
(vi) Posting of wrong amount: If
wrong amount is posted in one of the two accounts while posting, it would
immediately cause disagreement of trial balance e.g. goods worth Rs. 690 have
been sold to 'X' but 'X's account has been debited with Rs. 960. It will
increase the debit side of trial balance by Rs.
270. |
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Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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