FrontAccounting-2.4.7/C2/Taxes-and-Bank-Account-in-FrontAccounting/English

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Taxes and Bank Accounts in Frontaccounting

Visual Cue Narration
Slide 1

Title Slide

Taxes and Bank Accounts

Welcome to the spoken tutorial on Taxes and Bank Accounts in FrontAccounting.
Slide 2

Learning Objectives

  • Add a new Tax
  • Set the Bank Accounts
  • Add Deposits
  • Transfer amount in Bank Account
  • Reconcile Bank Account
In this tutorial,we will learn how to
  • Add a new Tax
  • Set up Bank Accounts
  • Add Deposits
  • Transfer amount into the Bank Account and
  • Reconcile the Bank Account
Slide 3

System Requirements

  • Ubuntu Linux OS version 14.04
  • FrontAccounting version 2.3.24
To record this tutorial, I am using
  • Ubuntu Linux OS version 16.04
  • FrontAccounting version 2.4.7
Slide 4

Pre -requisites To practise this tutorial, you must have knowledge of:

  • Higher secondary commerce & accounting
  • Principles of Bookkeeping
To practise this tutorial, you must have knowledge of:
  • Higher secondary commerce and accounting and
  • Principles of Bookkeeping
You should have already
  • Set up an Organisation/Company in FrontAccounting.
And you should have already set up an Organisation or Company in FrontAccounting.

If not, for relevant FrontAccounting tutorials please visit this website.

Slide 5:

Start XAMPP service

Start the XAMPP services before you begin working on FrontAccounting interface.
Narration Let us open the FrontAccounting interface.
Click on browser >>localhost/account >> Press Enter Open a web browser.

Type localhost/account and press Enter.

Narration The login page appears.
Enter Username = admin and Password = spoken>> Click on login Type the username as admin and the password.

Then click on Login button.

Click Setup tab >> Taxes The FrontAccounting interface opens.

Click on the Setup tab.

In the Company Setup panel, click on Taxes link.

We can see a default entry as Tax.

Point to default options of Tax The Percentage, Sales GL Account and Purchasing GL Account are specified as shown here.

We have to assign GL accounts to every tax used by our business.

Highlight the message

To avoid problems with manual journal entry all tax types should have unique Sales/Purchasing GL accounts”

At the top of the window, we can see a message.

It is recommended that a separate Sale and purchase GL account has to be assigned to each tax.

narration Let us see how to add GST and Service tax for our company.
Click on the Edit icon of Tax. Click on the Edit icon on the default entry Tax row.
Change the Description, Percentage

Click on the Update button.

I’ll edit Tax to GST , as our company will not use the default entry Tax.


I’ll change the description to GST and the percentage to 12.


I will keep the Sales GL account and Purchase GL Account as Sales tax.


Click on the Update button at the bottom of the window.

We have successfully changed the default entry Tax to GST.

Narration Now let us add Service tax.

Before that we have to create a GL Account for Service tax.

Click on Banking and general ledger

Click on GL accounts

Click on Banking and General Ledger tab.

In the Maintenance panel, click on GL Accounts link.

Type the value as shown:

Account code: 2151

Account Name : Service Tax

Account Group : Current Liabilities

Click on the Add account button

Type the values as shown:

Then click on the Add Account button at the bottom of the window.

Click on Setup tab and then on Taxes Now, click on Setup tab and then on Taxes link.
narration Let us add Service tax under Tax Types.
Type the value as shown:

Description: Service Tax

Default Rate: 7

Type the values as shown.
Click on Sales GL Account drop down box.

Select Service Tax

Click on Sales GL Account drop-down box.

Select Service Tax which is under Current Liabilities.

Show the demo of the selection

Click on Add new button

Likewise, select Service Tax for Purchase GL Account.

Click on Add new button at the bottom of the window.

Point to GST and Service Tax We can see that two taxes have now been added.
narration Let’s see how these taxes are calculated in the Sales module of FrontAccounting.
narration We will first set up a Bank Account for the company.
Click on Banking and General ledger

Click on Bank Accounts

Click on Banking and General ledger tab.

In the Maintenance panel, click on Bank Accounts link.

This option is used to setup and configure the bank and cash accounts.

Point to USD

Select Indian currency from the drop down box

By default, you can see Current account and Petty Cash account details.

The Currency column is in US Dollar, by default.

Let us change this to Indian currency.

Click on the Edit icon.

Select Chequing Account from the drop down box

Select Indian currency from the drop down box

In the Current account row, click on the Edit icon.

Change the Account type to Chequing Account.

Change the Bank account currency to Indian Rupees.

Click on update button.

Show the demo of petty cash

Then update the changes by clicking on the Update button at the bottom.

Likewise, change the Petty Cash account also to Indian Rupees.

And update the changes.

Narration Next let us add some amount to the ST Company Pvt. Ltd. bank account.
Click on Deposits link in the Banking and General ledger tab. Go to Banking and General ledger tab.

In the Transactions panel, click on Deposits link.

Narration Deposits from customers, miscellaneous sales, etc. can be entered here.
Data Entry demo


Name:Mr.Patel

Account description >>cash

Amount >> 3,00,000

memo >>Rent for the month December

Click on Add item

Keep the From field as Miscellaneous.

I’ll enter the name of the person who has deposited the money as shown.

In the Account description field, select Cash.

In the Amount field, type 3 lakhs.

In the Memo field, type the purpose of the deposit.

Then click on Add item button at the right end of the row.

Click on Process deposit Click on Process Deposit button at the bottom of the window.
New window >> success message In the new window, we can see a message that the deposit has been entered.
Click on View the GL postings for this Deposit Next link is View the GL postings for this Deposit. Click on it.
Point to the amount A pop up window appears with the transaction details of the amount that has been deposited.
Click on close Click on the Close link at the bottom of the window.
Point to the next link Enter another Deposit If you want to enter another deposit, then click on “Enter Another Deposit” link.
Click on back option. Click on Back link at the bottom of the window to go back to the FrontAccounting interface.
Narration Next we will see how to transfer money from bank account to cash or another account.
Click on Banking and General ledger>>Bank Account Transfers In the Transactions panel, click on Bank Account Transfers link.
Point to Bank Balance Notice that the Bank Balance is shown here as three lakh rupees.

Recall, this amount had been deposited earlier.

To account :Petty cash

amount :20,000

Memo : Money transferred for petty cash

In the To Account field, select Petty Cash account.

In the Amount field, enter 20,000.


In the Memo field, type as shown.

Click on Enter Transfer button. Click on Enter Transfer button at the bottom of the window.
Click on View The GL Journal Entries for this Transfer In the new window, we can see a message - “Transfer has been entered”.

Next link is View The GL Journal Entries for this Transfer.

Click on it to see the entries.

Click on close A pop up window appears with the transaction details of the amount that has been transferred.

Click on the Close link at the bottom of the window.

Click on Back Click on the Back link at the bottom of the window to go back to the FrontAccounting interface.
click on Reconcile Bank account. Next, we will check the Bank Statements.

In the Transactions panel, on the right side, click on Reconcile Bank Account link.

It matches the deposits in the company accounts with those in the Bank statement.

Point to the output We can see the Account total, Bank Deposits and Fund transfer details.

This brings us to the end of this tutorial. Let us summarize.

Slide 6

Summary

In this tutorial, we have learnt about
  • Add a new Tax
  • Set up Bank Accounts
  • Add Deposits
  • Transfer amount into the Bank Account
  • Reconcile the Bank Account
Slide 7

Assignment 1

As an assignment
  • Use Deposits option and deposit Rs.10,000 into Petty Cash account.
  • Select Miscellaneous in the From field
  • Enter the Name as Mr. Rahul
  • Check the Reconcile Bank Account for Petty Cash account
Slide 8

Acknowledgement

  • The video at the following link summarises the Spoken Tutorial project.
  • Please download and watch it
Slide 9

About workshops

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Slide 10

Forum for specific questions

Please post your timed queries in this forum.
Slide 11

Acknowledgement

The Spoken Tutorial Project is funded by NMEICT, MHRD Government of India.

More information on this mission is available at this link.

The script and video has been contributed by Spoken Tutorial team.

This is Arvind Pillai signing off. Thanks for joining.

Contributors and Content Editors

Nancyvarkey, Nirmala Venkat