Ledger

Ledger is the book where the transactions of similar nature pertaining to a person, asset, liability, income or expenditure are drawn from the journal or subsidiary books where the transactions are recorded in a chronological order and posted account wise in the Ledger account. Ledger maintains all types of accounts i.e. Personal, Real and Nominal Account.

All the business transactions are first recorded in Journal or Subsidiary books in a chronological order when they actually take place and from there the transactions of similar nature are transferred to Ledger and this process of transferring is called as Ledger Posting.

In a business, sometimes it is not feasible to carry accounts of all the suppliers and customers in the main ledger. In such cases apart from General or main ledger, the control ledgers are maintained. Control ledgers records the individual accounts. In the end of the period, balance shown in the main ledger has to tally with the balance in the individual ledger accounts maintained in the control ledger.

Purposes of maintaining control ledgers are:

- Sundry Debtors

- Sundry Creditors

- Advances to Staff

For service provider portion

Expense A/C Dr

Service tax deposit A/C Dr

To Creditor A/C

For Service Receiver portion

First you have to create a service tax payable A/C and a vendor A/C in the name of govt. Then pass the following entries

At the time of booking exp.

For liability creation

1)ST payable A/C dr

To vendor a/c

At the time of payment

For payment

2) vendor a/c dr

To bank a/c

For availment of credit

3) ST deposit a/c dr

To ST payable a/c

(OR) otherwise pass manual entry

ST deposit a/c dr

To bank a/c

Note: st deposit a/c is Input credit a/c

Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land this not happens that is why depreciation is not hcarged on land

When we are making a payment for services which include service tax, Then entry will be

1. Paid to Port trust for haulage, tipping, sidding etc charges including Service Tax

Party A/c ( Port Services) Dr. 100000

Service tax Credit A/c Dr. 12360

To Bank A/c 12360

2.When making any payment of service tax after availing Servcie Tax Credit

Service Tax A/c Dr. 15000

To Service tax Credit a/c 12360

To Bank A/c 2640

3.When we receive refund

Bank A/c Dr. 12360

To Srevice Tax Credit A/c 12360

To remove these checks from Bank Reconciliation, you must reconcile them outside of Bank Reconciliation.

the factors are

1. sales or Incomes

2. indirect incomes, misc, income

3. direct expense and indirect expense

4. depreciation

5. tax.

Suspense account is a temporary arrangement. This arrangement is made to make trial balance agree.

General ledger includes all ledgers after adjusting the balance where as final accounts is arranging ledger balance to get profit and loss as well as to know the finacial position.

Chart of Accounts is nothing but list of G/L Accounts used by the one r more company codes....the chart of accounts contains the account no & account name.the chart of accounts is the operating chart of accounts used for the daily postings in company code.

Non Cash Transactions Should be Recorded In Journal Entry.

For Ex:

Salaries A/c Dr xxxxx

To Salaries Payble A/c xxxx.

in sap fico we have three types of chartof accounts

> group chart of accounts

> country specific chart of accounts

> operative chart of accounts

group chart of accounts

the purpose of GCOA is to consolidate all the company codes balance sheet into one. the main purpose of this one is to external reporting.

yes reconciliation is necessary in financial statement .

Vechicle a/c dr-FA

To lease agreement a/c-Liabilitie

lease a/cdr-indirect exp

To cash/Bank-current assets

expense off the payment of lease from th p&l a/c

Gl set ups> open the periods of gl > create/reverse journal entries> post and review> conversion , revaluation, translation, consolidation can be run > review/correct balances > run accounting reports> close gl periods.

The General Ledger Contains all transaction records including Product Details, Rate, Qty, Cheq No Bank Name, Debit Amount, Credit and Balances where as Ledger Contains Simple transactions which is included debit, credit and Balances