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Using TurboCASH

 







GENERAL LEDGER ACCOUNTS
PLAN AND CREATE THE CHART OF ACCOUNTS
  
If you have converted a Set of Books from a previous version of TurboCASH or Pastel version 5.2, your Chart of Accounts will be automatically converted. If you have created a new Set of Books and you have selected one of the existing templates installed from the TurboCASH. Seven installation CD or if you have downloaded a Set of Books (template) from Pink Software's Web Site, you will already have a basic Chart of Accounts which you can use. It is recommended that you print the Chart of Accounts on the Reports - General Ledger - Chart of Accounts menu option, and to check that all the required accounts are available for your requirements. You need to identify the additional Accounts, you wish to add or even to create Sub-accounts for specific Accounts. You may also need to change the descriptions for some Accounts and may even wish to delete some Accounts, which you will to use at all.

When planning your chart of accounts (decide, which Accounts to add or to change and delete), you must bear in mind that the Chart of Accounts should reflect all your business activities, on which you may require reports to manage your business activities. The Chart of Accounts will reflect in your Financial Statements (Income Statement and the Balance Sheet).
  • Income Statement - A list of all the Income and Expense Accounts

  • Balance Sheet - A list of all the Proprietary Accounts (Capital, Drawings and Retained Earnings), Liabilities (Long-term Liabilities and Current Liabilities), Assets (Fixed Assets and Current Assets).
The Chart of Accounts or the list of accounts consists of the account numbers. Each of these accounts is linked to a certain account type. It is important to note the types of accounts, which will be reflecting in your List of Accounts Report as you will create, edit and delete them in the following Edit Accounts menu options:

 

Menu Option Brief description of the Account Type
General Ledger Accounts Accounts are aligned to either an income / expense or balance sheet type.
Bank Accounts Bank accounts should be linked to a Receipts and Payment Journal batch type.
Tax Accounts Accounts containing the Tax percentages and dates for which those tax percentages are effective

The Chart of Accounts for a Set of Books or template, which you may have selected when you have created your Set of Books, is basically grouped into ranges of Account numbers. When you plan your own Chart of Accounts, it is recommended that you take the following ranges in consideration:

Description Range Group
Total Chart 001-999
Income Accounts 001-099 Income
Cost of Sales 100-199 Cost of Sales
Expenses 200-499 Expenses
Capital 500-599 Capital
Fixed Assets 600-699 Fixed Assets
Current Assets 700-899 Current Assets
Current Liabilities 900-999 Current Liabilities

When planning the your Account numbers, it is also recommended that you bear the following considerations in mind:
  • Increment each account number by either 5 or 10 to cater for future additions.

  • If possible, list your accounts in alphabetical order.

  • Group similar accounts in similar pre-defined ranges e.g. 600 - 699 for Fixed Assets.

  • List your accounts in the order in which you would like them reported.

  • Bank Accounts would usually be created in the Current Asset range, unless it is an overdraft account, in which case, the Bank Account could be created in the Current Liabilities range.

  • Tax Accounts would be created in the Current Liabilities range.
In addition to these Account numbers, you may also create up to 999 Sub-accounts. The Sub-accounts are used to divide an Account into further Accounts to identify and to report on and manage certain divisions of an Account. For example, if you wish to manage the various components of Motor Vehicle expenses, you may create Sub-Accounts for the Motor Vehicle expenses. An example would be as follows:

Motor Vehicle Expenses 210/000
Fuel and Oil 210/010
Repairs 210/020
License Fees 210/030

If you use Sub-accounts, you must enter your transactions (and budget figures) on the for respective Sub-account level. TurboCASH will allow you to view a report for only one Sub-account or a range of Sub-accounts. When viewing the account balances on the Trial Balance, Income Statement, Balance Sheet, etc., you may select to view the summarised balances (total including all the Sub-accounts) only or you may select to view the balances for each Sub-account.

The Chart of Accounts should reflect the Control Account for your Debtors (in the Current Assets Account number range) and the Control Account for the Creditors Ledger (in the Current Liabilities Account number range). Your individual Debtors and Creditors accounts are created, edited and deleted in the Debtors and Creditors Ledger.

Edit - Accounts - Creditor Creditor accounts containing the details of the creditors, remittance advice messages and terms.
Edit - Accounts - Debtor Debtor accounts containing the details of the debtors, statement messages and terms.


If your business is a retail entity (trades in Stock Items), the Chart of Accounts should reflect the Control Account for your Stock items (in the Current Assets Account number range). The individual Stock Items are created, edited and deleted in the Edit - Stock Items menu option.