How to Create New Account

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The questions here arises are -

1. which group to select?
2. Opening balance- either Dr. or Cr.?

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A] For Customers :

select group "Sundry Debtors" & Opening Balance : "Dr."

Here Dr. means Debit Amount, the amount which is about to receive from that customer.

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B] For Suppliers :

select group "Sundry Creditors" & Opening Balance : "Cr."

Here Cr. means Credit Amount, the amount which is about to pay to that supplier.

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c] For any regular expenses :

select group "Indirect Expenses" , Indirect expenses is that expenses which are not related to purchase.

for eg. Salary Expenses, Stationery, Office Expenses, Travelling Expenses, etc.

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D] For purchase related expenses:

select group "Direct Expenses" , Direct expenses is that expenses which are directly related to purchase activity.

for eg. Hamali, Transport, Packing, etc made while purchasing stock (goods).

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E] For Bank Account :

1.For saving or current account select "Bank Account" as account group & Opening Balance"Dr."

Here Dr. means Debit Amount, the amount which is your bank balance.

This amount is generally mentioned as "Credit Amount" in your bank statement.


2.For Overdraft or Cash-Credit (C-C) or Credit Card or any loan account select"Bank Loan Account". & Opening Balance"cr."

Here Cr. means Credit Amount, the amount which is given by bank as a loan.

This amount is generally mentioned as "Debit Amount" in your bank statement.


Tips :

Yes you are right, generally in bank statement the effect of account is mentioned in opposite side..

If your bank statement shows "Credit Amount", then in your accounting software, you must mention it as "Debit Amount" and vice-versa.