Maintain Chart of Accounts

Maintain Chart of Accounts

Now to form chart of accounts of your company you may proceed like this:

Select the “maintain” button and click on “chart of accounts” you will have a window of making chart of accounts of your company like shown below:

1^st of all there are 3 important things which are “Account I.D”, “Description” and “Account type”. In account I.D we put a specific number like 105 for “cash in bank” which is the description and to b written in description and account type should be clear like for cash in bank it should be “CASH” and for land it should be “FIXED ASSETS”. We should save it as we entering the data like after filling cash account we can save it by pressing “alt and save” together. If by mistake we put wrong Account type we can change them. After entering complete chart of accounts we can see them by clicking on the

 look up button. By clicking on this button we have view of chart of accounts like shown below:

If we enter the wrong I.D like for cash the account I.D is 105 but we enter 106 we can change them by pressing on the button “change I.D”

 then we have a box like this:

 In this we can enter new account I.D like for cash we put 105 and press “ok” it will be then changed.

We can also delete any account if it is entered by mistake but for this there should not be any beginning balance and transaction. There is a button like this 

   we can click there to delete required account.

If we are not wanted to use any account which is in the chart of accounts we can click on “inactive” button. Like for “petty cash” we click on inactive button the window is like this:

Now the petty cash account is inactive, it means we are not using this account. We should also save the changes by pressing “Alt & S” together.

Now when we prepared all the chart of accounts we can see the page by pressing on the “Reports”, which is on the window shown below:

In the reports we will press on “General Ledger...” and there will be open a page shown below:

In this we will click on “Chart of Accounts” we have a page of complete chart of accounts shown below:

As we inactive the petty cash so at petty cash row there is written “No” which means this account is not active. And all other are active so there is written “Yes”.

Now, we are going to enter beginning balance and record the transactions:

To enter beginning balance we should have “retained earning” account, if it is not present we can’t enter the beginning balance. As we have retained earning account so we can enter the beginning balance. For this we click on “beginning balance” there will be a box open which asked to select the period for entering data.

We select the month starting from 1/1/12 through 1/31/12.and press “OK”. We will have a window like this shown below:

In this we will enter the data like we enter the debit amount in cash account of Rs: 1000, if we not enter the same credit amount we will have a difference which will be shown by window like below:

But when we enter equal amount we will have “zero” balance showing by trial balance.