Analytical Cash Receipts and Cash Payments BooksA business may like to get more
information from the cash book, such as the receipts from different heads of
income and payments on .different accounts. In this case book may be split into
two parts, one for receipts-Cash Receipts Book and another for payments-Cash
Payments Book. The proforma of analytical cash receipts and cash payments books
relating to the insurance business appears on the next page. Any business can
modify suitably the proforma depending upon its own requirements.
Petty Cash BookEvery business has to make payments
involving smaller or petty amount, e.g.. carriage, cartage, cooly hire, postage
telegrams etc. Such payments, by their very nature cannot be made by cheques. It
is usual for the business units to maintain a separate cash book to record small
payments only. Such cash book is known as Petty Cash Book. It relieves the main
cash book of numerous transactions involving petty sums and also helps in
reducing the work-load of chief cashier.
Imprest SystemUnder this method, petty cashier is
provided with a fixed amount of money known as imprested or float which is
sufficient to meet the needs of balancing period. Balancing period may be a week
or fortnight or month. At the end of balancing period the petty cashier is given
fresh cheque of the amount equal to his payments during the same period. Thus,
in the beginning, every time, he will start with the amount fixed :i.e. imprest
or float.
Usual method of maintaining petty cash
book is to rule it for obtaining analysis of expenditure. The book will have one
column on the debit side to record receipt of cash (only from the main cashier)
and credit side is divided into different columns. Each column is reserved for
one particular type of expenditure. Name and number of columns in each case will
depend upon the requirements of the business.
Advantages(1) Reduces the work-load of chief
cashier.
(2) Effective control can be exercised
over small payments because each payment has to be supported by vouchers and
vouchers are examined frequently i.e.. at the end of each balancing period.
(3) Saving in labor because each payment
is not required to be posted in the ledger separately.
Accounting TreatmentThe periodical cheques drawn for petty
cash are entered on the credit side of the cash book and debited to Petty Cash
A/c in the ledger. Such amount shall also be entered on the debit side of
the Petty Cash Book (for memorandum purposes). At the balancing period the Petty
Cash Book will be analyzed under the different columns provided in it. For each
column provided init (except ledger and miscellaneous columns) one nominal
account is opened in the ledger. Each expense account or nominal account will be
debited and Petty Cash Ale will be credited. This should be done by means of
journal entry. Reason is that here petty cash book is considered to be a
memorandum book only.
Analytical or Columnar Petty Cash BookWhile recording the transactions in petty
cash book if all the expenses are analyzed and entries are recorded in cash book
on the basis of this analysis. such petty cash book is called 'analytical petty
cashbook'. For recording the expenses in this book, whole of the petty expenses
are classified into few 'heads' and a decision is taken as to which of the petty
expenditure is to be recorded under which head. All expenses are recorded in the
books according to the decision. The description of each expenditure is recorded
in particulars column but the head of expenditure recorded in separate columns.
At the end of period this petty cash book is balanced in the same manner as in
case of simple petty cash book. |
VAT Ready
GST Ready
Download
More Details
Buy Now
Note for International VAT USers and GST Users in India
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. | ||||||
Send Email Now
