Purpose

General Ledger Accounts record the transactions that define value of the business. Every transaction in the business is recorded against an Account, either as a Debit or Credit. In double entry book keeping a particular operation within a business will generate transactions that add up to zero, i.e. Sum Debits – Sum Credits = 0. For example is you buy an asset for $10,000 you will have a debit of $10,000 on your bank account and a credit of $10,000 on your asset account.

In Hisaab accounting software the Account ID can be numeric, alphanumeric or capitalized alphanumeric.

Each Account is assigned to an Account Group (see Account Groups). This is used in reporting, for example the Trial Balance will list Accounts by Group. Also when you select an Account anywhere in software the list will be in Group/Account sequence.

You do not have to set up your Chart of Accounts from scratch, the default chart of account already come pre loaded with your Hisaab.pk installation you can customize it as per your requirements.

Procedure

Enter an Account Code in the chosen format. This needs to be unique.

If you want a secondary ID enter it in Account Code 2. This is not part of the key.

Enter the name of the account (E.g Mobile expense).

Select the parent Group you want your account to be part of.

Click on Add New

Tips and Tricks

Put a structure into your account codes so it is easy to identify where in your Charts it belongs, for example 0xxx for all Capital Assets.