Finance module

1. Finance Module
1. Account master
Accountsmasterdisplaysthe ledgersandalsodisplaysitsgroupi.e the ledgerisunderwhich
group– Balance sheetor P&L Account.The chart of accountsis a listingof all accountsused
inthe general ledgerof anorganization.The chart isusedbythe accountingsoftware to
aggregate informationintoanentity'sfinancial statements.
Thisis consistof General LedgerandSub Ledgers
2. Purchase Voucher– Purchase entry (Yarn/Cloth/Other)
Whenthe goodsare purchasedon credit for resale orto use in productionetc.,thenonly
purchase voucherwill be enter.
Bellow ispurchase voucherformat
M/S XYZ LIMITED
PURCHASE VOUCHER
VoucherNo. 1015 Date: 31.07.15
PARTICULARS AMOUNT IN Rs.
Debit: Purchase Account 20000/=
Debit: Local SalesTax @ 5% Account 1000/=
Debit: Othercharges 500/=
Total 21500/=
Credit:M/s Vendor 21500/=
Total 21500/=
Narration: BeinggoodspurchasedfromM/s Vendoras pertheirbill No.125dated31.07.15
enclosed.
Amount in words: Rupees TwentyOne ThousandFiveHundredonly)
Manager Accountant
3. Job Work – Waiving,Sizing,Processingand other
Whenany jobworksdone like waiving,sizing,processingetc.,thenonlyjobwork purchase
voucherisprepared.
Bellowispurchase voucherformat
M/S XYZ LIMITED
PURCHASE VOUCHER
VoucherNo. 1015 Date: 31.07.15
PARTICULARS AMOUNT IN Rs.

2. Debit: Jobwork account 21500/=
Credit:M/s Vendor 21500/=
Total 21500/=
Narration: Beingjobwork done asper theirbill No.121dated31.07.15 enclosed.
Amount in words: RupeesTwentyOne ThousandFiveHundredonly)
Manager Accountant
4. Salesto Account – Sale Entry (Yarn)
SalesVoucherispreparedforgoodssoldoncredit.If the goods are soldin cash thenthe cash
receiptvoucherisprepared.Goodsmeanonlytradingitems.
While makingthe sale voucherthe customer’saccountisdebitedwiththe full amountof invoice
and the salesaccountis credited
Belowsalesvoucherformat
M/S XYZ LIMITED
SALE VOUCHER
VoucherNo. 1211 Date: 31.07.15
PARTICULARS AMOUNT IN Rs.
Debit: M/s Prince Marketing 21000/=
Total 21000/=
Credit:SalesAccount 21000/=
Total 21000/=
Narration: Beinggoodssoldto M/s Prince Marketingas perour bill No.1211 dated31.07.15
enclosed.
Amount in words: RupeesTwentyOne Thousandonly.
Manager Accountant
5. HR to Accounts – Salaries
Salariesmeansthe remunerationpaidtothe administrationstaff fortheirservicesrendered
to businessfirmasperthe termsand conditionsof employmentorundera special contract.
Normally,the salariesare paidona periodical basis.
M/S XYZ LIMITED
SALARY VOUCHER
VoucherNo. 1211 Date: 31.07.15
PARTICULARS AMOUNT IN Rs.
Debit: SalariesAccount 21000/=
Total 21000/=
Credit:SalariesPayable Account 21000/=
Total 21000/=
Narration: Beinggoodssoldto M/s Prince Marketingas perour bill No.1211 dated
31.07.15 enclosed.

3. Amount in words: RupeesTwentyOne Thousandonly.
Manager Accountant
6. JV/CP/CR/BP/BR Entry
Payment Voucher
Paymentvoucherispreparedforall payments,made bythe businessfirmdirectlyor
throughitsbankers.Inall businessorganizations,mostlythe paymentsare made in
followingmanners:-
 Paymentincash.
 Paymentbycheques.
 Paymentbydemanddraftsor pay orders.
 Paymentmade directlybybankonbehalf of the businessclients.
 Paymentalsocan be made by thirdparty onbehalf of businessfirm.But,inthiscase,
no paymentvouchershall be made.Forthistype of transaction, journal voucher
shall be prepared.
Type of Payment Vouchers
In a small businessorganizations where the cashandbankpaymenttransactionsare very
limited,singletype of paymentvoucherissufficientforall type of paymentsbutitisnot
possible withabigorganizationstomake single type of paymentvoucherforall type of
paymenttransactionskeepinginview the numberof paymenttransactions. Inthat case,
twotypesof paymentvouchercanbe preparedforcontrol purpose as follows:-
1. Cash Payment Voucher(CP):- These vouchersare usedonlyincase of cash
payment.
M/S XYZ LIMITED
CASH PAYMENT VOUCHER
VoucherNo. 1011 Date: 31.07.15
PARTICULARS AMOUNT
(IN RS.)
DEBIT: Conveyance ExpensesAccount 1522/=
TOTAL 1522/=
CREDIT: Cash Account 1522/=
TOTAL 1522/=
Narration: Beingcash paidto Mr. A towardsreimbursementof hisconveyance expenses
as per the detailsenclosed.
Amount in Words:Rupeesone ThousandFive HundredTwentyTwoonly.
Receiver’Signature Manager’sSignature Cashier’sSignature
2. Bank PaymentVoucher(BP):These vouchersare usedwhenthe paymentismade
throughbankersof businessfirm.
M/S XYZ LIMITED
BANK PAYMENT VOUCHER
VoucherNo. 127 Date: 31.07.15

4. PARTICULARS AMOUNT
(IN RS.)
DEBIT: Bank ChargesAccount 550/=
TOTAL 550/=
CREDIT: State Bank of IndiaAccount 550/=
TOTAL 550/=
Narration: Beingbankcharges debitedState Bankof Indiainour currentaccount as per
Bank statementof accountfor the monthof july.
Amount in Words:Rupees Five HundredFiftyonly.
Receiver’Signature Manager’sSignature Cashier’sSignature
ReceiptVouchers
Receiptvoucherispreparedforall the moneyreceivedbythe businessfirm.Moneyis
receivedinacompanyfor the followingreasons:-
 Cash Sales
 Paymentreceivedfromthe customersagainstthe dues.
 Advance payment fromcustomers.
 Refundof securities.
 Paymentreceivedfromcreditorsagainstthe debitbalance lyingintheiraccount.
 Receiptof anytype of income i.e.interest,commission,rentetc.
 Refundof anytax amountfrom tax authorities.
 Anyotherreceipts.
Moneyis receivedinthe followingforms:-
 Cash
 Cheques
 DemandDraftsor PayOrders
 Directtransferinbank account of the businessfirms.
 If any paymentismade by thirdparty onbehalf of the companythenalsoit will be
treatedas receiptfromthe personwhohaspaidthe moneyonbehalf of the
company.
Types of Receipt Vouchers
In small organizations,onlySingle type of ReceiptVoucherismore thansufficientbutin
large businessfirms,followingtypesof voucherare prepared:-
1. Cash ReceiptVoucher:- For all moneywhichisreceivedincash.
M/S XYZ LIMITED
CASH RECEIPT VOUCHER
VoucherNo. 1518 Date: 31.07.15
PARTICULARS AMOUNT
(IN RS.)

5. DEBIT: Cash Account 12500/=
TOTAL 12500/=
CREDIT: SalesAccount 12500/=
TOTAL 12500/=
Narration: Beingcash receivedagainstcashsale asper cash memoNo.501 enclosed.
Amount in Words:RupeesTwelve ThousandFive Hundredonly.
Manager’sSignature Cashier’s Signature
2. Bank ReceiptVoucher:- For all moneyreceivedbywayof cheques,DemandDraft,
Pay Ordersor directlyreceivedbythe bankfromanypersonon behalf of the
company.
M/S XYZ LIMITED
BANK RECEIPT VOUCHER
VoucherNo. 1785 Date: 31.07.15
PARTICULARS AMOUNT
(IN RS.)
DEBIT: State Bank of IndiaAccount 60000/=
TOTAL 60000/=
CREDIT: M/s Mascot Marketing 60000/=
TOTAL 60000/=
Narration: Beingcheque No.145891 receivedfromM/sMascot Marketingas perpay in
slipof State Bank of Indiaenclosed.
Amount in Words:RupeesSixtyThousandonly.
Manager’sSignature Cashier’sSignature
Note: For anyamountpaid bythird personon behalf of the businessfirms,noreceipt
vouchershall be preparedthoughitisthe receiptinindirectwayforthe businessfirm.Since
no moneyisreceivedphysically,thatiswhynoreceiptvouchershall be prepared.Forthis
type of transactions, Journal Vouchershall be prepared.
Journal voucher(JV)
Journal voucherispreparedforthe transactionswhichdoesnotrelate tosales,purchases,
cash, bank,material returns. Journal vouchersare preparedforthe followingtransactions:-
1. Openingbalances
2. Purchasesof fixedassets andotherassetsoncredit
3. Sale of fixedassetsandotherassetsoncredit
4. Depreciation onfixedassets.
5. Purchase of any itemsrelatingtobusinessexpendituresoncredit
6. Adjustmententries.
7. Closingentries.
8. Correction entries.
9. Transferentries.

6. 10. Provisions forexpenditures
11. Accrual income.
12. The entriesfortransactionswhichare no repeatedveryfrequently.Forexample if
there are verylimitedtransactioninrespectof material returnthenthe journal
voucherscan be preparedratherthan preparingthe purchase returnvoucheror
salesreturnvouchersetc.
Sample voucherformat:
M/S XYZ LIMITED
JOURNAL VOUCHER
VoucherNo. 101 Date: 10.10.15
PARTICULARS AMOUNT IN Rs.
Debit: Car Account 65000/=
Total 65000/=
Credit:M/s Delhi Motors 65000/=
Total 65000/=
Narration: Beingcar purchasedfromM/s Delhi motorsasper theirbill no.110 dated
10.10.15 enclosed.
Amount in words: Rupees SixtyFive Thousandonly.
Manager Accountant
7. VoucherPrinting
It’sa report,Printingof CP,BP,CR,BR,andJV
8. Ledger - Report
Ledgerisa mainand principal bookwhichhasdifferentsetsof accounts. Ledgeriscalledas
the mirror of all transactionsrelatingtoa particularperiod.All the entriesrelatingto
particularaccountsare summarizedintothat accounts.There may be so manyaccount
headsina businessfirm.Toknow the total transactionsrelatingtoall the accounts,we have
to see the ledgerwhichishavingall the accounts.Forexample companyishavingdifferent
account headslike:- Purchase account,SalesAccount,FreightAccount,Salaryaccount,
WagesAccount,Printing& stationeryaccount,Rentaccount,Commissionaccount, Bank
interestaccount,Office maintenanceexpensesaccount,Conveyance expensesaccount,
Travellingexpensesaccount,Advertisementexpensesaccountetc.
9. Trial balance – Report
Afterledger,the total andbalancing of individual accountsare done ona particulardate.
Everyaccount showsthe debitbalance orcreditbalance or nil balance.These balancesof
accounts are put on a listand thatlistis calledastrial balance.Itmeansall the closing
balance of all the accountsincludingcashbalance fromcash bookandbank balance from
bankbook are shownintrial balance.The accountshavingnil balance neednottobe shown
intrial balance.The trial balance containsthe followingcolumns:-
1. Head of the accounts:- in whichthe name of the accountsare shown.

7. 2. Debit amount:- in whichall the debitbalance of accountsare shown
3. Creditamount:- in whichall the creditbalancesare shown
Aftertakingall the balancesfromledgerand,cashbookand bankbook,the totalsof the
debitandcreditcolumnof trial balance are done.The total of bothsidesmustbe equal.If
there isa difference intotalsof debitandcreditcolumnsof trial balance thenitshowsthat
there are some mistakesinaccounts.
10. Balance sheetand TL PL
11. Payable List- Report
12. ReceivableList– Report
13. Sale Register
14. Purchase Register
15. CreditNote
16. DebitNote
17. SalesReturn
18. Purchase Return
19. C-FormIssue
20. C- Formreceivable
21. BRS