Balancing the AccountsWhenever it is desired to balance
an account, the two sides are added up, and if the totals of the two sides are
unequal then the difference is put on the side having lesser total. This will
make both the sides equal. The amount of the difference inserted is known as
'balance' of the account. In particulars column it is written as Balance c/d
(carried down). In subsequent period it is known as Balance bid (brought down).
If the total of the credit side of the account is less, the balance will be
inserted on credit side with the words "By Balance c/d". This balance is known
as Debit Balance and after closing the account it will be shown on the debit
side with the words "To Balance bid". Similarly if the total of debit side of
the account is less, the balance will be inserted on debit side with the words
"To Balance c/d". This balance is known as Credit Balance and after closing the
account it will be shown on the credit side with the words "By Balance
bid".
Personal AccountsIt is worthwhile to refresh your
memory and recall that personal accounts relate to individuals and business
entities (firm; company, corporation etc.) and the rule is : Receiver is to be
debited and giver is to be credited. Now if on any particular date the business
wants to know as to how much amount is 'due to' or 'due by' a particular person
to itself (business) then it should balance the account of the person concerned.
Debit balance as per personal account signifies that the person is the debtor of
the business i.e. person owes an amount equal to the balance to the business or
the amount, represented by the balance is 'due to' the business by the person.
Similarly, Credit balance as per personal account signifies that the person is
the creditor of the business i.e. business owes an amount equal to the balance
to the person or the amount represented by the balance is 'due by' the business
to the person.
Real AccountThese are the accounts relating to
property or possession or rights. Rule is : "What comes in is to be debited and
what goes out is to be credited." Thus all incomings are to be recorded on the
debit side and outgoings on the credit side. On any particular date these
accounts should have 'debits balance' representing the worth of the item covered
by the account. At the end of the year (generally) or at any other point of time
when the financial position of the business is required to be ascertained these
accounts are balanced. These balances are shown on the assets side of the
statement of position or Balance Sheet. These accounts do have 'debit balance'
which signifies the 'book-value' or 'written down value' or 'going
concern-value' of the assets of the business as on that relevant date.
Nominal AccountsThese are the accounts showing the
various heads of expenses and sources of income. At the end of the specified
period (generally one year) these accounts are closed by transfer to the final
accounts i.e. Trading or Profit and Loss
Account. |
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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. | ||||||
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