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

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. If not, for relevant FrontAccounting tutorials please visit https://spoken-tutorial.org	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	The Spoken Tutorial Project Team conducts workshops and gives certificates. For more details, please write to us.
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