Necessity of LedgerMaintaining of ledger is a must in
every accounting system. It is necessary as will be clear from its advantages:
(1) Transactions relating to a
particular person, item or heading of expenditure' or income are grouped in the
concerned account at one place.
(2) When each account is
periodically balanced it reflects the net position of that account. For example,
how much is due from a customer or how much is payable to a supplier or what is
the value of total purchases or what has been the expenditure on salaries? Such
information is available by balancing the ledger accounts.
(3) Ledger is the stepping stone
for preparing Trial Balance- which tests the arithmetical accuracy' .of the
accounting books. .
(4) Since the entries recorded in
the journal are referenced into ledger the possibility of errors or defalcations
are reduced to the minimum.
(5) Ledger is the destination of
all entries made in journal or sub-journals.
(6) Ledger is the "store-house" of
all information which subsequently is used for preparing final accounts and
financial statements.
Opening entry and its posting. In
the case of an existing business we are required to pass an entry in the journal
(on the basis of the Balance Sheet prepared at the end of the previous year) for
bringing in the new books all assets and liabilities: this is known as Opening
entry.
Difference between Journal and Ledger.Journal1. Is the book of prime entry.
2. As soon as transaction
originates it is recorded in journal
3. Transactions are recorded in
order of occurrence i.e. strictly in order of dates.
4. Narration (brief description) is
written for each entry.
5. Ledger folio is written
6. Relevant information cannot be
ascertained readily e.g. cash in hand can't be found out easily.
7. Final accounts can't be prepared
directly from journal.
8. Accuracy of the books can't be
tested.
9. Debit and credit amounts of a
transaction are recorded in adjacent columns.
10. Journal has two columns one for
debit amount another for credit amount.
11. Journal is not balanced.
12. With the computerization of
accounting journal may not be used for routine transactions like receipts,
purchases, sales etc
Ledger1. Is the book of final entry. 2. Transactions are posted in the
ledger after the same have been recorded in the journal.
3. Transactions are classified
according to the nature and are grouped in the concerned accounts.
4. Narration is not required.
5. Folio of the journal or
sub-journal is written.
6. Since transactions of particular
nature are grouped at one place therefore relevant information can be
ascertained.
7. Ledger is the basis of preparing
final accounts.
8. Accuracy of the books is tested
by means of list of balances.
9. Debit and credit amounts of a
transaction are recorded in two different sides of two different accounts.
10. Ledger has two sides: left side
is debit side right side is credit side.
11. Every account in the ledger is
balanced at appropriate time.
12. Ledger cannot be avoided.
However it may be loose leaf ledger or a computerized ledger. But ledger is a
must. |
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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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