This document discusses how to enter a chart of accounts and beginning account balances in accounting software. It includes the following steps: 1. Open the company and select "Maintain" and then "Chart of Accounts" to enter account codes, descriptions, types, and set accounts as inactive. 2. Enter beginning balances by clicking "Beginning Balances" and selecting an accounting period. Enter opening balances for each account on the appropriate side of the balance sheet/income statement. 3. Ensure the trial balance balances by entering equal amounts on the left and right sides. Rectify any mistakes by changing account details or setting accounts as inactive.

1. Entering Chart of Accounts
Hammad Nangiana 1

2. ENTERING CHART OF ACCOUNTS IN THE
SOFTWARE
• If we have chosen the “Build your own
company” in the beginning from the “Chart of
accounts” wizard scheme then we will have to
make our own chart of accounts after the
formation of the company is completed
• For this first we open the company in which we
want to enter the chart of the accounts
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3. • The first page of the company will be
opened in the same manner as described
in previous lecture
• Following front page of the company
appears on the desktop screen on opening
the window
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5. • From this screen we first select the
“Maintain” option from the above taskbar
and by clicking on the “Maintain” option,
following options further appears on the
screen
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7. • From these options we select the “Chart
of accounts” option in order to enter the
chart of accounts in the software
• On clicking on “Chart of accounts”,
following screen appears on the desktop
screen
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9. • This is the window where we enter the accounts
related to our company or store whatever is our
concern
• It contains “Account ID” option in which we enter
the Code of the account or the ID of the account
• Another option is “Description” in which we add
the name of the account
• Like Petty cash, cash in hand, cash at bank,
account receivable, account payable and so on…
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10. • The third option is “Account type”
• From this option we can select the type or the nature
of the account which we are adding in the list of
chart of accounts
• For instance the type of account for petty cash and
cash at bank will be “Cash”, the type of account for
account receivable will be “Account receivable” and
so on…
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11. • There is another option of “Inactive”
• By selecting this option our account will
be inactivated and we will not be able to
record any financial entry regarding that
account
• That account will be closed for recording
the transactions and marinating the
records
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12. • The next option is “Change ID”, from
where we can change the ID of the
account if we have entered it incorrectly
• We can even delete the account using this
window
• We enter the Code of the account in the
“Account ID” as follows
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14. • Below this “Account ID” option there is
another option “Description”
• We enter the name of the account in this
portion as illustrated follows
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16. • After this we select the “Account type” by
clicking on it
• On clicking it, different options for the
account type appears on the desktop
screen from which we select the
appropriate account type for our account
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17. Following options appear on the screen on
clicking “Account type”
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18. • If we have made any mistake in our chart
of accounts with any of our account then
we can also rectify our mistake
• If we had written wrong description or ID
for the account or selected the wrong
account type for the account then these
mistakes can be rectified by using the
following procedure
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19. • If we want to change the ID of our
account then we need to first select that
account from the list and after selecting it
we press the button of “New” in the top of
the “Maintain chart of accounts” wizard
scheme
• On doing this, following screen appears
on the desktop screen
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21. • We can also inactive any account
• On inactivating the account that account
will be inactivated and we will be not is
allowed to use that account later in the
future transactions
• To inactivate any account we must select
that account from the list and then click
on the inactive box as shown below
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23. ENTERING THE BEGINNING BALANCES OF THE
ACCOUNTS IN CHART OF ACCOUNTS
• Now we have to enter the opening balances in
the accounts
• We click on “Beginning Balances” button in
order to enter our beginning balances
• The button of “Beginning balances” has been
shown below in the wizard scheme`
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25. From this we press the “Beginning balances”
button and on clicking it, following window
appears on the desktop screen
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26. • If we have to enter the balance for the month of
February then we will have to enter the data in
January month
• Same if the balance of March is required to be
entered as beginning balance then we will enter
the beginning balance in the month of February
• The amounts or balance entered will be the
closing balance of February which will become
the opening balance of March
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27. One more thing which is very important is that
the first digit in the date is of MONTH not DAY
as it’s American software where MONTH is
written before DAY in date.
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28. On selecting the period we click on the “Ok” button and
the following screen appears on the desktop screen
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29. • Here we enter the balances in the account
• The left side is for the Assets and Expenses
while the right side is for Liabilities, equity and
Income
• We enter the opening balances of our
respective accounts
• The amounts or the balances will only be
entered in the white portion which is for the
NORMAL BALANCE for that respective
account
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30. • It means if we have selected Assets as the type of
account for Cash the Assets portion which is the left
side will become white and eligible for balance
entry
• We must enter the data in such a manner that the left
side and right side of the trial balance is equal to
each other because the arithmetical accuracy of the
data is proved by the equal balance of trial balance
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