We will herewith, explain to use any software, not a particular sofware. If you know the accounting, double entry system, you can work on any software.
Buy a software and ask the supplier to tell you - from where to make the party accounts.They will explain you where to put the entries.
Enter all the Partners and Party accounts(suppliers or Customers) , if you know the name of the parties or you can make the parties at the time of sale or purchase. Complete all the details in party account - Name, address,Contact Person, GST number, Mobile number alongwith if the pary is debtor or creditor etc.
Enter all the expenses account e.g., Bank Expenses, Daily Expenses, Office Expenses, Interest and mark them as expenses.
Note: While entering the expense mark the entry as operating expense or General expense if there is an option for it in the software. Operating expense affect the Gross Profit and general expenses affect the Net Profit. E.g., Oil and Lubricants is Operating expense and Office Stationery is a general expense.
There is an option for making bank account, enter bank account there because it is attached with the bank vouchers. If you are to make entries through general voucher then you can make account in Party account. There is an option for putting "cash in hand" to enter opening cash, put your opening cash entry here.
There is an option for entering stock items in the software. Make a stock account of all your items to maintain stoch. It is attached with the sale invoice issue system and purchase entry system. When you enter sale (issue invoice) and purchase( enter purchase through purchase voucher), you call the items from this list. it makes your stock register. There is option to put entries of production through a voucher.
If you are working in a manufacturing unit, you are to call the software operator to make cost centres for production to issue stocks for production and you will receive final product from these cost centres. It will give you the details of material in process also.
Total Raw material issued - Received Final Product = Materal in Process.
Make an account of wastage (invisible and Visible) also so that you know how much waste you are getting from each lot.
How to start
I suggest you to get your general voucher printed for each entry in a day. Put all the enrties in this voucher and keep it filed for record.
Enter all the vouchers in a day book and then start entering in your software.
Ledger accounts are maintained automatically by the software.
Accounts Registers are maintained automatically by the software.
We,herewith, assume that you know the accounting and the double entry. If you need any clarification read the previous pages
Example 1 Suppose you have received Rs. 100000 from you partner Yogesh through cheque.
Enter in General voucher of your Software as:
Credit side: Enter in the account of Yogesh (Partner's capital Account).
Debit side: Enter same amount in "Bank".
Your ledger will show the credit amount of Rs 100000. in the account of Yogesh's Partners Capital Account and Bank's debit side will show increase of Rs.100000.
You purchased some consumables of Rs. 600 by cash.
Consumable will not to be entered through purchase voucher. It is our expense. Make entry through general voucher Credit "Cash" Rs.600 and Debit "Consumables" Rs. 600 ( Give detail of the bill no and what purchased in detail option)
In This way you will go on entering the daily transations.
Sale Invoice: When you issue sale invoice it will autometiacally enter in the sale, Party account and the stock register.
Purchase: Use purchase voucher for all trading items, raw materials. It will automatically get entered in purchase, Party account and the stock register.