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

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 pop-up 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	Please 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 will 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 will 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.
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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