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

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Time Narration
00:01 Welcome to the spoken tutorial on Taxes and Bank Accounts in FrontAccounting.
00:07 In this tutorial,we will learn how to

Add a new Tax

00:12 Set up Bank Accounts

Add Deposits

00:16 Transfer amount into the Bank Account and

Reconcile the Bank Account

00:22 To record this tutorial, I am using

Ubuntu Linux OS version 16.04

00:30 FrontAccounting version 2.4.7
00:35 To practise this tutorial, you must have knowledge of:

Higher secondary commerce and accounting and

00:42 Principles of Bookkeeping
00:45 And you should have already set up an Organisation or Company in FrontAccounting.
00:51 If not, for relevant FrontAccounting tutorials please visit this website.
00:57 Start the XAMPP services before you begin working on FrontAccounting interface.
01:03 Let us open the FrontAccounting interface.
01:07 Open a web browser.

Type localhost/account and press Enter.

01:16 The login page appears.
01:19 Type the username as admin and the password.

Then click on Login button.

01:26 The FrontAccounting interface opens.

Click on the Setup tab.

01:33 In the Company Setup panel, click on Taxes link.

We can see a default entry as Tax.

01:42 The Percentage, Sales GL Account and Purchasing GL Account are specified as shown here.
01:51 We have to assign GL accounts to every tax used by our business.
01:57 At the top of the window, we can see a message.
02:00 It is recommended that a separate Sale and purchase GL account has to be assigned to each tax.
02:09 Let us see how to add GST and Service tax for our company.
02:15 Click on the Edit icon on the default entry Tax row.
02:20 I will edit Tax to GST , as our company will not use the default entry Tax.
02:28 I will change the description to GST and the percentage to 12.
02:35 I will keep the Sales GL account and Purchase GL Account as Sales tax.
02:42 Click on the Update button at the bottom of the window.
02:46 We have successfully changed the default entry Tax to GST.
02:52 Now let us add Service tax.

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

03:00 Click on Banking and General Ledger tab.
03:04 In the Maintenance panel, click on GL Accounts link.
03:09 Type the values as shown:

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

03:17 Now, click on Setup tab and then on Taxes link.
03:22 Let us add Service tax under Tax Types.
03:27 Type the values as shown.
03:30 Click on Sales GL Account drop-down box.
03:35 Select Service Tax which is under Current Liabilities.
03:39 Likewise, select Service Tax for Purchase GL Account.
03:46 Click on Add new button at the bottom of the window.
03:50 We can see that two taxes have now been added.
03:55 Let’s see how these taxes are calculated in the Sales module of FrontAccounting.
04:03 We will first set up a Bank Account for the company.
04:07 Click on Banking and General ledger tab.
04:11 In the Maintenance panel, click on Bank Accounts link.
04:16 This option is used to setup and configure the bank and cash accounts.
04:22 By default, you can see Current account and Petty Cash account details.
04:29 The Currency column is in US Dollar, by default.

Let us change this to Indian currency.

04:38 In the Current account row, click on the Edit icon.
04:43 Change the Account type to Chequing Account.
04:48 Change the Bank account currency to Indian Rupees.
04:53 Then update the changes by clicking on the Update button at the bottom.
04:59 Likewise, change the Petty Cash account also to Indian Rupees.

And update the changes.

05:11 Next let us add some amount to the ST Company Pvt. Ltd. bank account.
05:17 Go to Banking and General ledger tab.

In the Transactions panel, click on Deposits link.

05:25 Deposits from customers, miscellaneous sales, etc. can be entered here.
05:31 Keep the From field as Miscellaneous.

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

05:41 In the Account description field, select Cash.
05:45 In the Amount field, type 3 lakhs.
05:49 In the Memo field, type the purpose of the deposit.
05:54 Then click on Add item button at the right end of the row.
05:59 Click on Process Deposit button at the bottom of the window.
06:04 In the new window, we can see a message that the deposit has been entered.
06:10 Next link is View the GL postings for this Deposit. Click on it.
06:17 A pop up window appears with the transaction details of the amount that has been deposited.
06:24 Click on the Close link at the bottom of the window.
06:28 If you want to enter another deposit, then click on “Enter Another Deposit” link.
06:34 Click on Back link at the bottom of the window to go back to the FrontAccounting interface.
06:41 Next we will see how to transfer money from bank account to cash or another account.
06:49 In the Transactions panel, click on Bank Account Transfers link.
06:55 Notice that the Bank Balance is shown here as three lakh rupees.

Recall, this amount had been deposited earlier.

07:05 In the To Account field, select Petty Cash account.
07:10 In the Amount field, enter 20,000.
07:14 In the Memo field, type as shown.
07:17 Click on Enter Transfer button at the bottom of the window.
07:22 In the new window, we can see a message - “Transfer has been entered”.
07:27 Next link is View The GL Journal Entries for this Transfer.

Click on it to see the entries.

07:35 A pop up window appears with the transaction details of the amount that has been transferred.
07:42 Click on the Close link at the bottom of the window.
07:46 Click on the Back link at the bottom of the window to go back to the FrontAccounting interface.
07:53 Next, we will check the Bank Statements.
07:57 In the Transactions panel, on the right side, click on Reconcile Bank Account link.
08:04 It matches the deposits in the company accounts with those in the Bank statement.
08:10 We can see the Account total, Bank Deposits and Fund transfer details.
08:17 This brings us to the end of this tutorial. Let us summarize.
08:22 In this tutorial, we have learnt to

Add a new Tax

08:27 Set up Bank Accounts
08:30 Add Deposits
08:32 Transfer amount into the Bank Account and
08:35 Reconcile the Bank Account
08:39 As an assignment

Use Deposits option and deposit Rs.10,000 into Petty Cash account.

08:48 Select Miscellaneous in the From field

Enter the Name as Mr. Rahul

08:54 Check the Reconcile Bank Account for Petty Cash account
08:59 The video at the following link summarises the Spoken Tutorial project. Please download and watch it
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09:18 Please post your timed queries in this forum.
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09:28 The script and video has been contributed by Spoken Tutorial team.

This is Arvind Pillai signing off. Thanks for joining.

Contributors and Content Editors

PoojaMoolya