Ledger Account

General Ledger is a list of accounts showing changes in them during the accounting period and final balances in the accounts at the end of that particular period. It can contain large number of different accounts. Each account has its purpose & name to distinguish it from the other accounts. Our Accounting Software is built on a sophisticated chart of accounts template. This chart is a classification of ledger accounts in a hierarchy of groups and sub groups. The application you will have will allow the end user to classify the correct group. Below you can find an example list of accounts:

Cash Day Book Day-to-day financial transactions are recorded in the Day Book. Day book is of two types Cash Day-Book & Bank Day-Book. The transactions entered in daybook include all financial receipt, payment, bank transfers, bank interest and charges. By default the day book shows the current date. It can also list all the transactions for a period in detailed view

Bank Day BookThis is the second type of day book and it is much similar to the cash Day Book.

Journal Journal is a record of financial transaction that is recorded before their values are accounted in general ledger through daybook. Journal is often considered synonymous with daybook. We need to record transactions like, adjustment entries, withdrawals in capital accounts, and closing entries at the end of the year and also to record transactions that do not fall in regular profit and loss account or inventory. For example, payment made to software or to an auditor cannot be added balance sheet, for these services we use journal entries.

Statement Of Account Statement of Account is the report generated by our software listing the details of transaction done by the particular account over a given period of time. Normally it includes invoices, payments, receipts, and journal entries made for or by the account. It also details other important information, such as bill or voucher number and narration of the transaction.

Trial Balance A Trial Balance is a list & total of all the accounts showing the debits and credits of the respective accounts for the give transaction period. The format of the two-column trial balance generated by our software is shown in the image, which helps to check the equality of debit and credit balances of the accounts. The trial balance is prepared after all the transactions for the period have been journalized and posted to the corresponding Ledgers. All accounts with their closing balances are displayed. The accounts having debit balance in one column and credit balances in another column are shown.

Profit & Loss The income statement (also P - L Account) for a specific period is prepared using the revenue and expense accounts from the trial balance. The Income Statement displays the financial performance of the company for an accounting period. This report consists of the accounts belonging to income and expenses category. The debit side (expenditure side) reflects all expenses and the credit side (expense side) reflects all income. The surplus of income over the expenses is the profit for the period. If the expense is more, then the income statement is loss.

Balance Sheet After preparing the income statement (P&L Account) for the period, the balance sheet can be prepared using the asset and liability accounts and by including the net income with the other equity accounts. A positive balance results in an income and a negative balance indicates a loss. The format of the balance sheet generate by our software is shown in the figure.