FrontAccounting/C2/Banking-and-General-Ledger/English-timed

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Time Narration
00:01 Welcome to this tutorial on Banking and General Ledger in Front Accounting.
00:07 In this tutorial, we will learn to create:
00:10 General Ledger Classes,

General Ledger Groups, General Ledger Accounts.

00:16 Also, we will learn to :
00:17 Pass a Journal Entry,

see the reflection in Balance sheet and how to void a transaction.

00:25 To record this tutorial, I am using:
00:28 Ubuntu Linux OS version 14.04,
00:32 FrontAccounting version 2.3.24
00:36 To practise this tutorial, you must be familiar with:
00:39 principles of Book-keeping,
00:42 set-up of an Organisation/Company in FrontAccounting.
00:46 If not, for relevant FrontAccounting tutorials, please visit our website.
00:52 Let us start by opening the FrontAccounting interface.
00:56 Click on the browser, type: localhost/account and press Enter.
01:04 The login page appears.
01:06 Recall that during installation, we had created admin user.
01:11 So, here, type the user name as admin and the password.
01:16 Then click on Login button.
01:19 The FrontAccounting window opens.
01:22 Click on Banking and General Ledger tab.
01:25 We can see various options under this tab such as:
01:29 Payments,
01:31 Deposits,
01:33 Journal Entry etc.
01:36 Before we start with any transaction, we need to set the Charts of Accounts.
01:41 The Charts of Accounts within FrontAccounting is defined by Type, Class, Group and Account.
01:49 All transactions are charged to an Account, Group, Classes.
01:54 These are used to group transactions for reporting purposes.
01:59 Switch back to FrontAccounting interface.
02:02 We can see the options under Maintenance bar as:
02:05 GL Accounts, GL Account Groups, GL Account Classes in this tab.
02:12 We need to set these options.
02:15 In FrontAccounting,
02:16 Account belongs to a Group and
02:18 Group belongs to Class.
02:21 It depends upon how to present the Balance Sheet and Profit and Loss A/c statements.
02:27 Here, GL Accounts Classes are the initial stage that need to be set first.
02:34 Let us see the GL Accounts Classes.
02:37 Here, by default, the Class Type and Class Name have been defined as:
02:41 Assets, Liabilities, Income, Expense.
02:46 Also, you can see the Class ID is set for each Class Type.
02:51 You will need to set this class before setting the Account Groups.
02:55 I will demonstrate how to do this.
02:58 Here, you need to add a new Class ID that is not already there.
03:03 So, I will type 5 as the new Class ID.
03:08 In the Class Name field, type a new Class Name.
03:11 I will type the name as Equity.
03:15 Click on the Class Type drop down box.
03:18 You can see the default list:
03:20 Assets, Liabilities, Equity, Income, Cost of Goods Sold, Expense.
03:27 FrontAccounting follows this Class Type to present in the Balance Sheet.
03:32 Select the Class Type as Equity.
03:35 Click on Add new button.
03:38 We can see a message appears and it says-
03:41 New account class has been added.
03:44 Here, you can see the new Class Equity has been added to the third row.
03:51 This is because, in the default Class Type, Equity is on the third hierarchy level.
03:57 So, whenever you add a new Class, it takes the default place of the Class Type.
04:03 Now, let us see how to add GL Groups.
04:06 Go to the Banking and General Ledger tab.
04:10 Click on the GL Account Groups.
04:13 We can see the default Group Name, which shows GL Account Groups under the Class.
04:19 You can also see the Group ID, set according to the Class.
04:25 A unique Class ID has to be added to each Group Name.
04:29 In the Group ID field, I will type the new Group ID as 12.
04:34 In the Name field, I will type Fixed Assets as the Group Name.
04:39 Here, I will keep this field as None.
04:42 This is because, the Group Name “Fixed Assets” does not belong to any subgroup that is already available.
04:50 Click on the Class drop down box.
04:52 According to the Charts of Accounts, Fixed Assets comes under the class of Assets.
04:59 Here, I will select Assets as the Class.
05:03 To save these changes, click on Add new button.
05:08 We can see an error message that says -

“This account Group ID is already in use”.

05:15 This means that the Account Group ID 12 is repeated.
05:20 Now, let us enter another number which is unique.
05:24 Let me type the Group ID as 13.
05:28 Click on Add new button.
05:31 This time we can see a message that says -
05:34 “New account type has been added.”
05:37 The new Group Name is added randomly within the class “Assets”.
05:42 Likewise, you can add your own Group Name.
05:46 Now, let us see how to add GL Accounts.
05:50 Click on the Banking and General Ledger tab.
05:53 Let us click on GL Accounts.
05:56 Here also, you need to type a unique code.
06:00 In the Account Code field, I will type 1100 as the code.
06:07 Click on the Account Name field.
06:09 I will type the Account Name as “Land and Building”.
06:13 You can give any name of your choice.
06:16 In the Account Group drop down box, I will select the Account Group as Fixed Assets.
06:23 The Account Name, Land & Building has to come under the Group Fixed Assets as per the Charts of Accounts.
06:30 So here, click on the Account status drop down menu.
06:34 Select the status as Active.
06:37 Then click on Add Account button.
06:41 We can see the message -

‘New account has been added’.

06:45 Now, click on the New account dropdown box.
06:49 You can see the newly added Account here.
06:52 Each organisation will have their own set of account codes, as shown here.
06:57 Likewise, by following the steps demonstrated above, you can create your own GL Account.
07:03 Pause the tutorial here.
07:05 And do this assignment.
07:08 Create a GL Account Group and GL Accounts as shown here.
07:14 Save the changes
07:16 Now, we have set up the Charts of Accounts for our own Company.
07:21 Next, let us pass a Journal Entry.
07:24 Commenced business with a capital of Rs. 50,000
07:29 The Entry is

Cash A/c Dr. 50,000 To Capital A/c 50,000 (being Capital introduced in the business)

07:40 Click on the Banking and General Ledger tab.
07:43 And then click on Journal Entry.
07:46 Next, click on the Calendar icon of Date field.
07:50 You can see the default date is set as today.
07:53 We can see the reference number for the transaction here.
07:57 Click on the Account Description drop down box.
08:01 Here, I will select the option Cash.
08:05 Then, click on the Debit text box and type the amount as 50,000.
08:11 To save the Debit entry, click on Add Item button.
08:16 Again, click on the Account Description drop down box.
08:21 This time, I will select the option Capital.
08:25 Then, click on the Credit textbox and type the amount as 50,000.
08:31 To save the Credit entry, click on the Add item button.
08:35 Now, click on the Memo field, for the narration of this Journal Entry.
08:40 Here, type the text - Being capital introduced in the business.
08:45 Then click on the Process Journal Entry button to save the entry.
08:50 You can see the message at the top, that appears in green -

“Journal Entry” has been entered

08:57 You can also see the options:
08:59 View this Journal Entry

Enter New Journal Entry Add an Attachment and Back

09:06 Let us explore View this Journal Entry option by clicking on it.
09:11 Immediately, a new popup window opens showing the current General Ledger Transaction details.
09:18 We can also see an option here - Print and Close.
09:23 By choosing this option, we get a print-out of this transaction for our future reference.
09:30 This option here, at the bottom right is to close this window.
09:34 I will choose this and close this window.
09:38 Now, click on the Enter New Journal Entry option.
09:42 We can see a new page opens immediately for the next new transaction.
09:48 Click on the Back option to go back.
09:51 Now, click on the Add an Attachment option.
09:55 We can see the fields:

Transaction Description and Attached file

10:01 Attached file option is used to attach any documents related to the Journal entry which is passed.
10:08 Let me attach a sample voucher which I have already created and stored on my computer.
10:14 For your convenience, this file has been provided in the Code file link below this video.
10:20 Pls click on the link and save the file on your computer.
10:24 Click on the Browse button and locate the folder in which the document is stored.
10:29 I'll select the Sample-Voucher.odt file from my Desktop folder.
10:36 You can see the file attachment here now.
10:40 Then click on the Add new button.
10:43 A message appears that says:

Attachment has been inserted.

10:48 Also, you can see that the uploaded file has been added to the table.
10:53 Now, let us see the reflection of this Journal Entry in the Balance Sheet.
10:58 To do so, click on the Banking and General Ledger tab.
11:02 Then click on the Balance Sheet Drilldown option.
11:06 We can see the transaction is reflected here.
11:09 Current Assets shows balance of 50,000 (fifty thousand).
11:12 The transaction is also reflected in Liabilities by showing the balance of 50000 (fifty thousand).
11:18 Since we made only one Journal Entry.
11:21 we see only one entry in the displayed list.
11:24 In the future, when we have many more journal entries, the displayed list would be longer.
11:30 Let us now see how to Void a transaction.
11:34 Click on the Setup tab.
11:36 And then on the option Void a transaction under the Maintenance bar.
11:41 This option is used to delete/remove an entry.
11:45 We can see the reference number, which shows the entry.
11:49 Click on the Select icon.
11:52 On selecting the icon, the transaction number and voiding date appears.
11:57 Click on the Void Transaction button.
12:00 A message appears that says-

Are you sure you want to void this transaction? This action cannot be undone.

12:07 I’ll click on the Proceed button.
12:10 Immediately another message appears and says-

Selected transaction has been voided.

12:16 That’s how we void a transaction, whenever required.
12:20 Let us summarize.
12:22 In this tutorial, we have learnt to create
12:25 General Ledger Classes

General Ledger Groups General Ledger Accounts

12:31 Also, we have learnt to :

Pass a Journal Entry See the reflection in Balance sheet and How to void a transaction

12:40 As an Assignment
12:41 Pass a Journal Entry
12:43 Goods Purchased for Rs 50,000
12:46 See the reflection in the Balance Sheet
12:49 This video summarizes the Spoken Tutorial project.
12:52 Please download and watch it.
12:55 We conduct workshops using Spoken Tutorials and give Certificates.
12:59 For more information, please contact us.
13:03 The Spoken Tutorial Project is funded by NMEICT, MHRD Government of India.
13:10 This tutorial has been contributed by Sheetal Prabhu from IIT Bombay.

Thank you for joining.

Contributors and Content Editors

Jyotisolanki, Ranjana, Sandhya.np14