Details Groups of Accounts Part 2
3. Current Liabilities - Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry Creditors
a) Duties and Taxes - Duties and Taxes contain all tax accounts like VAT, MODVAT, Excise, Sales and other trade taxes and the total liability (or asset in case of advances paid) and the break-up of individual items.
b) Provisions - Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions.
c) Sundry Creditors - You can open ledger accounts of trade creditors of the company Ex. Supplier of the company ( Purchased Goods on Credit )
4. Fixed Assets - This is a primary group, you can open ledger accounts such as furniture, vehicle, Building, Plant & Machinery of the company.
5. Investments - Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts and so on. This allows you to view the total investments made by the company.
6. Loans (Liability) - Loans that a company has borrowed, typically long-terms loans.
a) Bank OD Accounts [Bank OCC Accounts] - Tally provides you with distinct types of Bank Accounts, Bank OCC A/c - To record the company’s overdraft accounts with banks. For example, Bill Discounted A/cs and Hypothecation A/cs etc.
b) Secured Loans - Term loans or other long/medium term loans, which are obtained against security of some asset. Tally does not verify the existence of the security. Typical accounts are Debentures, Term Loans, and so on.
c) Unsecured Loans - Loans obtained without any security. Example: Loans from Directors/partners or outside parties.
7. Suspense Account - In modern accounting, many large corporations use Suspense Ledger to track the money paid or recovered, the nature of which is not yet known. The most common example is money paid for Traveling Advance whose details will be known only upon submission of the TA bill. Some companies may prefer to open such accounts under Suspense Account.
Loans and Advances (Asset) group. - The Suspense Account is a Balance Sheet item. Any expense account even if it has ‘suspense’ in its name, it should be opened under Revenue group like Indirect Expenses and not under Suspense Account group.
Cont. Part 3
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