In
manual you first create ledgers, carry forward previous year’s closing balance
as opening balance for the current year. Next year, when you create a new
books, again you create all the ledgers and enter opening balance. In manual
you are required to pass journal entries to transfer closing balance of all
nominal account to prepare profit and loss account. Whenever you need to know
balance of any ledger, you are required total amount in both debit and credit
columns of the ledger and compute the difference to derive the closing balance
for the ledger as on that date.
Computerized Accounting:-
When
you opt for computerized accounting first time, you have to create all the
ledgers and enter opening balance and classify at this stage. Therefore, you
enter all transactions through voucher entry. That’s all you have to do and
everything else (like posting to ledger, preparation of trial balance, final
accounts etc.) is done by the Tally itself.
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