Advantages of Journal(I) Transactions are recorded in
the chronological order, thus reducing the chances of omitting any transaction.
(2) Transactions, invariably, are
accompanied by narration. Thus, the entry is supplemented with basic information
regarding the transactions.
(3) Debit and credit amounts are
written side by side. It minimizes the chances of entering wrong amount.
Restricted use of JournalOriginally the system of recording the financial transactions developed consisted
of
(i) writing each transaction, with
narration, in the book of original entry, i.e.. Journal and then
(ii) posting therefrom to the
respective accounts in the principal book, i.e., ledger. As the number of
transactions' grew the system was modified and the transactions of similar
nature say purchases, sales, cash etc. were recorded in sub-journal instead of
journal for the following reasons:
(i) If too many transactions are
recorded in journal it will be unwieldy.
(ii) In every business cash balance
is required to be ascertained at frequent intervals, say, everyday: therefore it
was found convenient to use a separate book for recording cash transactions.
(iil) By recording
transactions of similar nature. in one sub journal, say,
purchases of goods in purchases journal saves time and efforts in recording and posting.
Because of the reasons listed
above, nowadays, journal is used to record only such transactions which are
infrequent. Now a days computerized
accounting has made the entry of journal very easy and accurate.
Double Entry SystemIn the 15th century a Franciscan
Monk, Lucas Pacioli, described a method of arranging accounts in such a way that
the dual aspect (present in every account transaction) would be expressed by a
debit amount and an equal and offsetting credit amount.
Double Entry system is the
system under which each transaction is regarded to have two fold aspects and
both the aspects are recorded to obtain complete record of dealings. Double
Entry system of book keeping adheres to the rule. that for each transactions the
debit amount (s) must equal the credit amount(s). That is why this system is called Double Entry.
Advantages of Double Entry System(i) It enables to keep a complete
record of business transactions.
(ii) It provides a check on the
arithmetical accuracy of books of accounts based on equality of debit and
credit.
(iii) It gives the results of
business activities either profit or loss during the accounting period.
(iv) It tells the financial
position of the business at a point of time. Total resources of the business,
claims of the outsiders, amount due by outsiders etc. are revealed by a
statement known as Balance Sheet.
(v) It makes possible comparison of
the current year with those of previous years helping the owner to manage his
business on better lines.
(vi) It reduces the chances of
errors creeping in the accounting records because of its equality principle. .
(vii) It helps to ascertain the
details regarding any account easily and accurately.
Other systems of book-keeping. In
addition to the double entry system, there is also single entry system. The
single-entry system is "a system of book-keeping in which as a rule only records
of cash and of personal account are maintained; it is always incomplete double
entry varying with circumstances. Such system may be economical but it is
incomplete, unscientific and full of defects
Compound Journal EntriesIf in a journal entry only one
account is to be debited and only one account is to be credited then such an
entry is 'Simple Journal Entry'. However, in some cases the entry may require
more than one debit or credit or both. Such entries are known as compound
entries. Compound entries should be created where
(i) Transaction occur on the same
day
(ii) One aspect of these
transactions is common; and
(iii) Accounts involved are more
than two
In fact compound entry is the
combination of two or more simple journal
entries. |
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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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