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Archive for August, 2010

Step by Step Bank Reconciliation

August 27, 2010 7 comments

I have an example of small bank reconciliation process example. In this example first I will show the cash in bank ledger having its opening and closing balance for the month of july 2005 of Salman & sons. Second I will show the bank statement (that represent the customer ledger in bank) of the month of july 2005.

Salman & Sons

Bank Book, july 2005

Vno Date Particulars Dr. Cr.
1 Balance B/F 10000
1 3 Dawood & Co 2500
2 5 Bill Receivable Discount 11900
3 9 Naeem 1000
4 10 Rizwan & Co 400
5 16 Saleem & Co 1500
6 20 Crown & Co 1800
7 21 Asif 2000
8 24 Rafiq & Sons 4000
9 27 Cash 1200
10 28 Cash 600
11 30 Ahmad 5500
12 31 Naseem & Co 3000
31 Balance B/F 18000
Total 31700 31700

Table 1 (Entries Without Reconcile with Bank Statement) Read more…

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Generate new Fiscal Year Opening Entries (Year Based Balance Forwarding) in OpenERP

August 4, 2010 7 comments

Below are the Account Balances of 30 June 2010.

Account Name Dr Cr
Fixed Assets 159000
Current Assets 479500
Capital 495000
Profit and Loss 154000
Drawing 142500
Liabilities 132000

Note: We want to forward the balance of above account to 01 July 2011 and close the fiscal year 2010 in OpenERP.

Step 1: Install account module in OpenERP.

Step 2: Step 2: Create above accounts in OpenERP from Financial Management → Configuration → Financial Accounting → Financial Accounts → List of Accounts. Like Below. Read more…

Calculate Profit and Loss Manualy and in OpenERP

August 2, 2010 10 comments

Manual Calculation of Profit and Loss:

Balances of Income Account and Expense Accounts

Account Name Dr Cr
Sales 987000
Cost of Goods Sold 537000
Discount Received 18000
Wages and Salaries 133500
Rent 44000
Discount Allowed 34500
Vehicles Running Cost 25500
Bad Debts 43500
Depreciation 33000

Step 1: For example sales credit side balance is 98700. Enter a JV, set the debit side of sales to 98700 that sales balance becomes to 0,also forward the credit side effect to Profit and loss account. Read more…