Question

I want to know about practically maintaining the accounting records.

My Dad is an accountant, and I always read in books - first, all transactions are entered in day books and then into the ledger and then the financial statements.

but when we come to computer accounting software, let's take tally , When using tally

1) do we need to maintain physical day books(like cash or?

2) If no, then what is proof of cash sales.

3) In a private company where the owner is CEO and wife and son are directors. In this situation, is there any limit of withdrawal.

3) in my father's company, he made a cash register where credit daily sales is also recorded while recording in tally. Is that necessary?

4) Do accounting softwares have the feature to keep books of primarybentries/day books i.e purchase day books , cashbook , petty cashbook etc.

5) We know all the non routine transactions come in journal , so please explanin which type of transation and also give examples

6) I know Working capital is used in day to day trading Operations but can't give my self Example , so provide some example

7) how managing the business affairs legally avoid tax

Answer 1

1. No, we do not need to maintain physical Day book. Tally automatically creates the Day book based on the transactions entered.

2. For cash sales, we can check the Day book automatically prepared by Tally or else we can check the Sales Ledger prepared by Tally.

3. No there is no withdrawal.

4. No, it is not necessary. For recording Sales we can use the Sales Ledger.

5. Transactions which are not to be entered repeatedly or occur a very few items are entered in Journal. Like- Depreciation, Professional Fees.

6. Examples are- Revenue Collection, Payment to Suppliers.

7. Claiming the various Deductions and Exemptions provided by tax laws, also making the payment of Tax timely , filing of Returns within due date are the business affairs which helps the business to avoid tax.