How to maintain charts of account?

How to maintain charts of account?

First of all we open the peach tree soft ware and open an existing company and then select the option maintain from menu bar then click the maintain option after use this option select the charts of account option.

After selecting charts of account the following window will appear.

When this window will appear then type your Account ID then press the tab button then type your Description and also enter the Account type. The accounts ID determine how the account is identified in the charts of accounts.

Select the Account type this option is very important account types is defined how to account will be located in financial statements.

This window shows the type the account Id Description and Account type.

Enter the account ID 105 then press the tab button then enter the Description cash in bank then enter the tab button and select the Account type option.

If the account ID Description or Account type are wrong enter then enter the Wright thing  then following window will appear.

Click the change ID option then open a list of account and select the ID which are enter wrong then press the Alt and S both then save your account.

If any account deletes then press the delete option then following window will appear.

If we want to delete the account then press the Yes option and if we not delete the account then press the No option.

This window shows the inactive and deactivate.

Select the inactive option and check the accounts.

How to enter beginning balance

After maintain chart of account then enter the beginning balance then make a retained earning account necessary then click the beginning balance option.

 When click the beginning balance option then following window will appear.

This window shows the select period to enter beginning balance options then click the option OK then following window will appear.

This window shows the following heads account ID account description account type assets, expenses and liabilities, equity, income. In this window all the account makes except retained earning. Retained earning account is necessary to enter the beginning balances.

If the total balances of both sides are not equal then difference posts to beginning balance equity account.

Add a new account in beginning balances

When add a new account in beginning balance then click the new option in charts of account beginning balance window then following window will appear.

When click the new option this window will appear this window shows enter new account then enter your account ID description and account type then click the OK option.

Net income

Net income is the difference of income and expense account values. The income and expense values making up Net Income are already included in the total.

Setup of a company

Setup of a company

First of all we will select Peach -tree from the start menu to open Peach-tree software and to setup a new company.

After opening Peach-tree software the following window will appear then click the set up a new company.

In the above window there are 6 options given in a Peach-tree software and as we are going to build a setup of a new company therefore we will select “set up of a new company” from the 6 options given. By selecting this option our setup will start for a new company and we can proceed further.

After selecting “setup of a new company” from the first window which appeared the following window appears:

 This window is basically showing us 5 points about the introduction of the company like what is the name of the company, address of the company, the chart of accounts which we will be using, the accounting method which we have to select whether it is accrual base accounting system or cash base accounting system, we will select the posting method and the last point is that we have to mention our accounting periods also which is normally of one year. After reading and understanding these points we will click on the next button.

After clicking on the next button from the “introduction” window the following window will appear whose name is “company introduction”.

In the previous window it was just showing us the points which we needed to understand for creating a setup of a company. While this window is mainly showing us the page kind of “form” in which we have to input a required data of our company which we are going to build.

In the first bar we will put the name of our company .eg 0009, Umer and Sons etc.

 In the second and third bar given we have to input the addresses of our company e.g.: Lahore cant.

In the bar of “city, state, zip” we will input the city and zip or postal code of our company and we have to select out state. E.g. city= Lahore, postal = 58740 etc

Then in the next bar we will input the country where our company is situated eg Pakistan.

In the bar of “fax” we will simply input our fax number.

Then from the given options in the bar of “business type” we have to select what is our company’s business. Which is shown in the following figure?

Then we have to input our website and email address.

After providing basic information of our company then we will click on the next button and the following window will appear:

The window of “chart of accounts” will appear.

In this window firstly the main thing is that we can select only 1 option 5 options given. We will select any one option according to our requirement. If we select the first option it means that we are going to setup a new company of any kind and the simplified or basic type of accounts will be used in it. We can modify the charts later if we want.

If we select the second option it means that we are going to create a company and we will be using the detailed form of accounts from any one of many sample companies.

If we select the third option it means we will use same chart of accounts which we select from any existing company which is already in the Peach-tree software.

The forth option tells that if we select it we will be converting a company from another accounting system.

The last option is this that if we select it, it means that we will use our own chart of accounts for our company.

This window show the charts of accounts.

 This window show the 5 options which means 5 types of company such as Retail Company, Services Company, Construction Company, Manufacturing Company and Distribution Company. We select the Retail Company option and then click the next option.

After this window show the accounting method window in this window we select the accounting method. Accrual method is use full for the company.

We use the Accrual accounting method because this method is use full for the company and then select the “Accrual” option and press the next option.

After this window show the posting method window we provide the information of real time and batch.

Most of the company posted the transaction to the general ledger as they are entered and saved “Real Time” method. Batch method is use for group transactions. We use the “Real Time” option and then click the next button.

This window shows the “Accounting Period”.

Most of the company use the 12 month accounting period because it is preferable. We use the 12 month accounting period because normally company use the 12 month accounting period and then click the next button.

After this window show the monthly accounting period window.

 Most of the company use monthly accounting period start January 01 and end 31 December. We use start the year January 01 and then click the next option.

This window show the defaults net dues pay in 10 days then 2% discount will be allowed.

Here is the list of all the defaults of payment terms and credit limit etc. after it we will click on the next button and the following window will appear.

This window of “finish” will appear which means that we have successfully created a new company and entered all the basic required data for Peach-tree setup.