Difference between revisions of "FrontAccounting-2.4.7/C2/Taxes-and-Bank-Account-in-FrontAccounting/English"

Title Slide

Taxes and Bank Accounts

Learning Objectives

• Add a new Tax
• Set the Bank Accounts
• Add Deposits
• Transfer amount in Bank Account
• Reconcile Bank Account

• Add a new Tax
• Set up Bank Accounts
• Add Deposits
• Transfer amount into the Bank Account and
• Reconcile the Bank Account

System Requirements

• Ubuntu Linux OS version 14.04
• FrontAccounting version 2.3.24

• Ubuntu Linux OS version 16.04
• FrontAccounting version 2.4.7

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

• Higher secondary commerce & accounting
• Principles of Bookkeeping

• Higher secondary commerce and accounting and
• Principles of Bookkeeping

• Set up an Organisation/Company in FrontAccounting.

• If not, for relevant FrontAccounting tutorials please visit https://spoken-tutorial.org

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

Start XAMPP service

Type localhost/account and press Enter.

Then click on Login button.

Click on the Setup tab.

In the Company Setup panel, click on Taxes link.

We can see a default entry as Tax.

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

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

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

Click on the Update button.

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.

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

Click on GL accounts

In the Maintenance panel, click on GL Accounts link.

Account code: 2151

Account Name : Service Tax

Account Group : Current Liabilities

Click on the Add account button

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

Description: Service Tax

Default Rate: 7

Select Service Tax

Select Service Tax which is under Current Liabilities.

Click on Add new button

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

Click on Bank Accounts

In the Maintenance panel, click on Bank Accounts link.

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

Select Indian currency from the drop down box

The Currency column is in US Dollar, by default.

Let us change this to Indian currency.

Select Chequing Account from the drop down box

Select Indian currency from the drop down box

Change the Account type to Chequing Account.

Change the Bank account currency to Indian Rupees.

Show the demo of petty cash

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

And update the changes.

In the Transactions panel, click on Deposits link.

Name:Mr.Patel

Account description >>cash

Amount >> 3,00,000

memo >>Rent for the month December

Click on Add item

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.

Recall, this amount had been deposited earlier.

amount :20,000

Memo : Money transferred for petty cash

In the Amount field, enter 20,000.

In the Memo field, type as shown.

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

Click on it to see the entries.

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

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.

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

Summary

• Add a new Tax
• Set up Bank Accounts
• Add Deposits
• Transfer amount into the Bank Account
• Reconcile the Bank Account

Assignment 1

• 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

Acknowledgement

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• Please download and watch it

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This is Arvind Pillai signing off. Thanks for joining.