Details Groups of Accounts Part 3,
8. Miscellaneous Expenses (Asset) - This
group is typically used for legal disclosure requirements such as Schedule VI
of the Indian Companies Act. It should hold incorporation and pre-operative
expenses. Companies would write off a permissible portion of the account every
year. A balance remains to an extent that cannot be written off in Profit &
Loss Account. Tally does not show loss, carried forward in the Profit &
Loss Account, under this group. The Profit & Loss Account balance is
displayed separately in the Balance Sheet.
9.
Branch/Divisions - This maintains ledger accounts of all your
company’s branches, divisions, affiliates, sister concerns, subsidiaries and so
on. Tally permits Sales and Purchase transactions to take place with accounts opened
here. Remember, these are their accounts in your books and not their books of
accounts. Just treat them as any other party account. If you wish to maintain
the books of a branch/division on your computer, you must open a separate
company. (Tally allows maintenance of multiple company accounts).
Revenue — Primary Groups
10. Sales Account - You
can classify your sales accounts based on Tax slabs or type of sales. This also
becomes a simple mechanism for preparation of Tax returns.
Examples:
· Sales GST @ 5%, 12%, 18 % &, 28% etc.
· Sales Exempted & Sales accounts
You can even open an account
as Sales Returns under the group Domestic Sales to view your net sales after
returns (or the returns may be directly passed through Journal against the
specific Sales account).
11. Purchase
Account - This is primary group & can open ledger accounts of all purchases
account of the company.
Examples:
- Purchases GST @ 5%, 12%, 18 % &, 28% etc.
12. Direct Income [Income Direct] - These are Non-trade income
accounts that affect Gross Profit. All trade income accounts fall under Sales
Accounts. You may also use this group for accounts like Servicing, Contract
Charges that follow sales of equipment.
For a professional services
company, you may not use Sales Account group at all. Instead, open accounts
like Professional Fees under this group.
13. Indirect Income [Income
Indirect] - These are miscellaneous non-sale income
accounts. Example: Rent Received and Interest Received.
14. Direct Expenses
[Expenses Direct] - These are Manufacturing or direct trading
expenses. These accounts determine the Gross Profit of the company.
15. Indirect Expenses [Expenses
Indirect] - All administrative, selling or non-direct
expenses.
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Nasir Pathan