Details Groups of Accounts Part 1
Capital Account - This
records the Capital and Reserves of the company. The ledgers that belong to
Capital Accounts are Share Capital, Partners’ Capital A/c, Proprietor’s Capital
Account and so on.
Reserves and Surplus
[Retained Earnings]
This contains ledgers like
Capital Reserve, General Reserve, Reserve for Depreciation and so on
Current Assets - Current
Assets record the assets that do not belong to either Bank Accounts or
Cash-in-Hand sub-groups.
a)
Bank Accounts - Current
account, savings account, short term deposit accounts and so on.
b)
Cash-in hand -
Tally automatically creates Cash A/c in this group. You can open more than one
cash account, if necessary.
(Note: An account under
Cash-in-hand group or Bank Accounts/Bank OCC A/c group is printed as separate
Cash Book in the traditional Cash Book format and does not form part of the
Ledger.)
c)
Deposits (Asset) -
Deposits contain Fixed Deposits, Security Deposits or any deposit made by the
company (not received by the company, which is a liability).
d)
Loans & Advances (Asset) - This
records all loans given by the company and advances of a non-trading nature
(example: advance against salaries) or even for purchase of Fixed Assets. We do
not recommend you to open Advances to Suppliers’ account under this Group.
e)
Stock-in-hand -
This group contains accounts like Raw Materials, Work-in-Progress and Finished
Goods. The balance control depends on whether you have selected Integrated
Account-cum-Inventory option while creating the company.
f)
Sundry Debtors –
This subgroup comes under Current Assets and ;you can open ledger accounts such as goods sold on credit (
Customer Accounts)
Conti... Part 2 Coming Soon
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Nasir Pathan