Nidhi accounts management software| Nidhi company software

1. Nidhi Company Software Accounting Websoftex software solutions Pvt Ltd Mob: 9916807666/ 9886461360

2. Accounting Steps And Some Related Concepts Websoftex software solutions Pvt Ltd

3. Some Definitions about Accounting Concepts:-- GROUPS • Groups which are helpful in classifying and identifying the account heads based on their nature. • Grouping which helps in presenting the summarized information. • But at the highest level of grouping, accounts which are classified into Assets, Liabilities, Income and Expenditure. ASSETS • An asset is defined as a resource that is owned or controlled by a company that can be used to provide a future economic benefit. • In other words, assets are items that a company uses to generate future revenues or maintain its operations. • Assets accounts generally have a debit balance. Websoftex software solutions Pvt Ltd

4. The following table will give you a clear picture of the types of assets:- Websoftex software solutions Pvt Ltd

5. INCOME • The flow of cash or cash-equivalents which are received from the work (wage or salary), capital (interest or profit), or land (rent). • An excess of the revenue over the expenses for an accounting period. Also called as earnings or gross profit. • An amount by which the total assets will increase for the accounting period. • When customer pays cash to buy a good from the store, then the money increases in the company's cash on the balance sheet. • For increasing the balance of an asset, we debit that account. Therefore the revenue must be equal to that increase in cash which should be shown as a credit on the income statement. Websoftex software solutions Pvt Ltd

6. EXPENDITURE • When accounting for these transactions, we record the numbers in two accounts, where an debit column is on the left and the credit column is on the right. A debit is an accounting entry which will either increases an asset or expense account, or decreases a liability or equity account. • An expenditure is related a payment or disbursement . • The expenditure would be for the purchase of an asset, a reduction of the liability, a distribution of the owners, or it could be an expense. • At the time of expense it is recorded, the amount is entered as an debit to a expense account. • Examples:-Utilities – Utilities which costs include electricity, water, heat, and even telephone services, etc… Websoftex software solutions Pvt Ltd

7. LIABILITY • A liability is related to an obligation and it is reported on to a company's balance sheet. • A common example of the liability is accounts payable. • Accounts payable would arise when a company relate to purchases goods or services on credit from a supplier. • And When the company pays to the supplier, the company's accounts payable is to be reduced. • An increase to an liability or to a equity account is a credit. Websoftex software solutions Pvt Ltd

8. Websoftex software solutions Pvt Ltd

9. Subday Book • In this Menu, Daily Transactions will be displayed detailed wise with account numbers and also with narration. • DAY BOOK • In this Menu, Daily Transactions will be displayed totally. • CASH BOOK • Here the transactions will be displayed daily but only cash transactions will be • reflected. • And also it shows Opening Balance and Closing Balance. • Also whatever Closing balance will be the next day’s transaction of Opening Balance. Websoftex software solutions Pvt Ltd

10. Bank Book BANK BOOK • Here the transactions will be displayed daily but only through Cheque, other Bank entries transactions will be reflected. • And also it shows Opening Balance and Closing Balance. • Also whatever Closing balance will be the next day’s transaction of Opening Balance. • TRIAL BALANCE • Trial Balance is a list for closing balances of the ledger accounts on a certain • date and is the first step towards in the preparation of financial statements. • It is usually prepared at the end of the accounting period to an assist in the • drafting of financial statements. Websoftex software solutions Pvt Ltd

11. Receipt And Payment • Receipt and Payment account is a summary of the cash receipts and payments during the accounting period. • It also records all the cash receipts and cash payments including capital receipts and revenue receipts irrespective of the accounting period. Websoftex software solutions Pvt Ltd

12. Profit and Loss PROFIT AND LOSS • "A Profit and Loss account is an account for which all the gains and losses are collected in order to ascertain the excess of gains over the losses or vice versa". BALANCE SHEET • A Balance sheet which lays out at the ending balances in a company's asset,liability, and equity accounts as on the date stated on the report. Websoftex software solutions Pvt Ltd

13. General Ledger GENERAL LEDGER • A General ledger account is an account or record which is used to sort and to store the balance sheet and for income statement transactions. • Examples of general ledger accounts include the asset accounts such as Cash, Accounts Receivable, Inventory, Investments, etc. GL DAY BALANCE • In GL Day Balance report according to Group Name, what is the opening balance till date, & what is the closing balance related to Debit and Credit details. • Examples : Group Name such as Savings Account, FD Deposit, RD Deposit, MIS Deposit, etc.. Websoftex software solutions Pvt Ltd

14. GL Transaction GL Transaction It contains information that are required for the preparation of the final accounts. The term GL which is used in short for General Ledger. GL Transactions which include GL Receipt, GL Payment, Journal Entry, Contra Entry, Cheque Reconciliation etc… GL RECEIPT GL Receipt for adding the amount or depositing the amount GL PAYMENT GL Payment for debiting the amount or withdrawing the amount Websoftex software solutions Pvt Ltd

15. Journal Entry Journal Entry for transfer related entries where need to select debit and credit entries where you can transfer the amount CONTRA ENTRY Contra Entry is related to bank, cash in hand in entries where we need to select debit a/c and credit a/c entries for transferring the amount. CHEQUE RECONILE Cheque Reconcile is related to Bank related entries , then all the details will be displayed. Where need to reconciliation process for that particular entry. Websoftex software solutions Pvt Ltd