COMPUETRISED ACCOUNTING

SECOND YEAR

STUDY NOTES

PREPARED BY VINOD E B

UZHAVOOR,KOTTAYAM

MOB: 9544 389 770

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 CHAPTER 1

OVERVIEW OF COMPUTERISED ACCOUNTING SYSTEM

Meaning
A Computerised Accounting System is a system used by businesses for recording and analysing
financial data with the help of computers and various accounting software.
Features
1. Simple and integrated
CAS is very simple and it integrates all the business operations .
2. Transparency
It provides transparency for day-to-day business operations
3. Accuracy and speed
The accuracy of computer is very high. It performs different functions at a very high speed.
4. Scalability
CAS can be used by any type and size of business firms
5. Reliability
The reports generated using CAS is more reliable in comparison to manual accounting system
Components of Computerised Accounting System
CAS has 5 components
1. Procedure
2. Data
3. People
4. Hardware
5. Software
These are known as 5 pillars of CAS
1. Procedure
The step by step sequence of activities to be followed to perform a task.
2.Data
Raw facts and figures used by a computer
3. People
Humanware operating the computer
4. Hardware

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Physical parts and network of computers
5. Software
All programs which put the hardware to function
Accounting Cycle
It refers to the steps involved in the completion of accounting process.
Steps in accounting process
1. Recording of transactions in journal
2. Posting journal entries from journal to ledger.
3. Preparation of Trial Balance
4. Passing adjusting entries
5. Preparation of adjusted Trial Balance
6. Passing closing entries
7.Preparation of Financial Statements
Grouping of accounts
The process of bringing together accounts of similar nature at one place is called grouping of
accounts.
In CAS, grouping is done on the basis of accounting equation
Assets = Liabilities + Capital + (Revenues - Expenses)
1. Assets
* Fixed Assts
* Current Assets
2. Liabilities
* Secured Loans
* Unsecured Loans
* Creditors
* Provisions
3. Capital
*Share Capital
*Reserves and Surplus
4. Revenues
* Sales
* Other Incomes
5. Expenses
* Raw materials consumed
* Salary and wages

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* Manufacturing expenses
* Administrative expenses
Codification of accounts
Codification refers to the process of alloting codes to accounts. Code may be number, symbol or letter.
Types of codes
1. Sequential codes
In sequential code, numbers and/or letters are allotted in consecutive order.
Eg: CM001 - Premier Company Ltd
CM002 - Modern Company Ltd
2. Block Code
In block code, a range of numbers is partitioned into sub ranges and each sub range is allotted to a
specific group
Eg: 1001 ---1999 - Televisions
2001 ---2999 - Mobile phones
3001---3999 - Refrigerators
3. Mnemonic Code
It consists of alphabets or abbreviations as symbols to codify a piece of information.
For Eg: Railway station codes PGT for Palakkad, TVC for Trivandrum, TCR for Thrissur
Security features of CAS
a) Password Security
Password is a mechanism which restricts the access to the computer system and data to the user only.
b)Data Audit
This feature enables us to know as to who and what changes have been made in the original data. It
helps to fix responsibility to the person who has manipulated the data.
c) Data Vault
Vaulting will save data in encrypted form to ensure its security. Encryption scrambles the information
so as to make its interpretation difficult or impossible.
Merits of CAS
1. Timely generation of reports
2. Saves time and money
3. Confidentiality of data is maintained
4. Automated document preparation
5. Transparency and reliability
Demerits of CAS

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1. Danger of hawkers and stealing of data
2. Problems with technology
3.Non-availability of skilled personnel
4.Chances of data loss due to various reasons
5. Huge training cost of employees
Accounting Information System (AIS) and its Sub-systems

Cash and Bank Sub-system

It deals with the receipts and payments of cash ( Physical and Digital)
Sales and Accounts Receivables Sub-system
It deals with recording of sales, maintaining of Sales Ledger and managing Receivables
Inventory Sub-system
It generates the inventory position and valuation report
Purchases and Accounts Payable Sub-system
It deals with recording of purchases and managing Payables
Pay Roll Accounting Sub-system
It deals with payment of wages and salaries to employees.
Fixed assets accounting Sub-system

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It deals with the recording of purchases, additions, deletions, depreciation, book value etc relating to
fixed assets.
Tax accounting Sub-system
It deals with compliance requirement of various taxes
Final accounts Sub-system
It deals with preparation of Profit&Loss Account, Balance sheet and other statements.
Costing Sub-system
It deals with recording of cost of materials, labour and other expenses to ascertain the cost of goods
produced.
Budget Sub-system
It deals with the preparation of budget for the coming financial year.

CHAPTER 2
SPREAD SHEET

Spread Sheet - Meaning

Spread sheet is a computer application software which allows the user to arrange huge volume of data
in tabular form. It facilitates arithmetic calculations, arrange and analyse data and provides easy
correction of errors.
Libre office Calc
Libre office Calc is a spread sheet application that we can use to calculate, analyse and manage data.
A file in a spread sheet is called work book. A workbook is a collection of a number of worksheets.
Only one worksheet can be made active at a time.
Features of Libre office Calc
1. Easy Calculations
Even complex calculations on data can be done easily with the help of Libre office Calc tools
2. What -If calculations
This allows the users to predict what will happen if certain conditions change
3. Serves as a database
It serves as a database. Even huge volume of data can be organised, stored and filtered easily

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4. Arranging data
The data stored in a spread sheet can be organised or re-organised according to the needs of the users.
5. Dynamic charts
Different types charts are available in Libre office Calc. It helps the users to present the data in
understandable way.

Components of Libre Office Calc

Row
The horizontal grid in a spread sheet is called row. Rows are named numerically ie, 1,2,3, etc from top
to bottom.
Column
The vertical grid in a spread sheet is called column. Columns are referred by alpha characters ie, A,B,
C etc from left to right
Cell
The intersection of a row and a column is called Cell. We record data in a cell.
Cell address

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A cell is identified by a combination of a letter(column header) and a number(row header). It is called
cell address. Eg: C4 means 3rd column and 4th row. Range is a group of adjascent cells in a worksheet.
A range is specified by giving the address for first cell in the range and the last cell in the range. Eg:
A1: E6.We use colon (:) as the range operator.
Naming Ranges
This means giving a name to a specific range.
Procedure to name range
1. Open LibreOffice Calc
2. Enter the data in Cells
3. Select the Cells which are to be named

4. Then go to Insert Names Define

5. Enter the name and click ‘Add”.

Spread sheet operations

1. Open a worksheet
An existing worksheet can be opened by choosing the “open” option from the File menu
2. New worksheet
A new worksheet can be opened by choosing the “New” option from the File menu
3.Save a worksheet
Choose “Save” option in the file menu. The “Save as” option is used to save a worksheet in a different
name, location or format.
4. Close worksheet

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A worksheet can be closed by selecting the “Close” option from the file menu.
5. Quit LibreOffice Calc
To quit LibreOffice Calc, choose “Exit LibreOffice” option from the file menu
6. Add work sheet
Worksheets can be added in two ways
a) Right click the mouse at the sheet tab area and select “Insert sheet” from the pop up menu
b) Click on the “+” sign at the sheet tab area
7.Rename a work sheet
To rename a worksheet, right click the mouse on the worksheet, select rename option, type the name
and click OK.
Delete a worksheet
To delete a worksheet, right click the mouse on the sheet tab, select the option Delete sheet from the
pop up menu.

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Types of worksheet data
a) Value
Value is the number entered in a cell. That is, numerical data is called value. Eg: Age of employee,
Salary of employee etc
b) Label
The text data is called label. It includes alphabets and symbols. Eg: Name of employee, Designation
etc.
c) Formula
Formula is entered to perform calculations . It should start with an “=” sign.
Components of a formula
A standard formula has three components
1. Cell References
2. Mathematical Operators
3. Functions
1. Cell References
The cell address used in a formula is called cell reference. It may be relative, absolute or mixed cell
reference.
a) Relative cell reference
Here, when a formula is copied to a new location, cell reference in the formula changes in relation to
the new location.
Eg: In Cell C5 we type the formula = A5+B5. If we copy this formula to Cell C6, then the formula is
changed as = A6+B6
b) Absolute Cell reference

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Here, the cell references in a formula remain unchanged when a formula is copied to a new location.
Use the $ (Dollar) symbol as prefix before the column and row names in a formula. Eg : $A$5
c) Mixed cell reference
It is a combination of relative and absolute cell references. It is used when we want to keep either the
row or column constant in a formula. Eg: $B2.
2. Mathematical Operators
To use a formula , a mathematical operator is needed.
The mathematical operators are:

3.Functions
Functions are the pre-defined formulae in a spreadsheet that return a specific result. It
is a built-in set of formulae which starts with an ‘equal’ sign (=)
Classification of functions
1. Date and Time functions
2. Statistical functions
3. Logical functions
4. Mathematical functions
5. Text functions
6. Spread sheet functions
7. Financial functions

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Date and Time functions
This function is used to perform operations on date and time values. It is used for inserting, editing
and manipulating date and time.
The most commonly used Date and Time functions are:-
A. Today
This function returns the current computer system date in the cell
Syntax : =Today( )
B. Now
It returns the current system date and time
Syntax : =Now( )
C. Year
It returns the year from the date or date value given in the brackets.
Syntax : = Year (“Date”)
D. Month
It returns the month of a given date as an integer between 1 and 12.
Syntax : = Month (“Date”)
E. Day
It returns the integer value of a given date
Syntax : =Day (“Date”)
F. Date value
LibreOffice Calc considers 30/12/1899 as the base date with date value Zero (0). Based on this Date
value function converts the given date and return its corresponding date value number.
Syntax : =Datevalue (“Text”).
Here the date is given in a text format
Statistical Functions
A. Count
Counts the number of cells in a range that contain numbers only.
Syntax : = COUNT(Range)
B . COUNTA
Counts the number of cells in a range that contain any value including text
Syntax : =COUNTA(Range)
C. COUNTBLANK
Counts the number of empty cells in a given range.
Syntax : =COUNTBLANK(Range)

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D. COUNTIF
Counts the number of cells in a given range that meet the given criteria.
Syntax : =COUNTIF(Range,Criteria)
Logical Functions
Logical functions are used to compare two values or statements.
The commonly used logical functions are :-
A. IF
This function is used to test whether a condition is True or False. It returns one value when the
condition is True and another value when the condition is False.
Syntax : = IF(Test,Then_value,Otherwise_value)
Where,
Then_value is the value when the condition is True
Otherwise_value is the value when the condition is False.
B. NESTEDIF
It is used when multiple conditions are to be tested.
Syntax : =IF(Test_1,Then value_1,IF(Test_2, Then value_2,IF(..........)))
C. AND
AND function is used to determine whether the output will be True or False. It returns True if all the
arguments are True. It returns False if any argument is False.
Syntax : = AND(Logical value 1,Logical value 2,..............)
D. OR
OR function is used to compare two statements. It returns True if any argument is True and returns
False if all the arguments are False.
Syntax : = OR((Logical value 1,Logical value 2,...........…)
Mathematical Functions
A. SUM
This function is used to get the total of numbers, cells or range of cells.
Syntax : =SUM(Number 1, Number 2......…)
Syntax : =SUM(Cell 1, Cell 2.........)
Syntax : =SUM(Range)
B. SUMIF
This function will add only those values in a particular range which satisfies the given criteria.
Syntax : =SUMIF(Range,”criteria”,sum_range).
C. ROUND

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This function rounds a number to a certain number of decimal places.
Syntax : =ROUND(Number,Count)
Eg: =ROUND(526.768,2). Output is 526.77
D. ROUNDUP
It rounds a number upward without considering the value next to the rounding digit
Syntax : =ROUNDUP(Number,Count)
Eg: = ROUNDUP(321.718,1). Output is 321.8
E. ROUNDDOWN
It rounds a number downward without considering the value next to the rounding digit.
Syntax : =ROUNDDOWN(Number,Count)
Eg: = ROUNDDOWN(321.718,1). Output is 321.7
Text Functions
Text functions are used for creating or modifying the data entered in cells to a required text format to
same cell or another cell.
A. Text
Text converts a number into text according to a user given format.
Syntax ; =Text(Number,format)
B. Concatenate
This function combines several text strings of different cells into one string.
Syntax : = Concatenate(“Text 1”,”Text2”,............”Text30”)
Spread Sheet functions
A. LOOKUP
It is used for searching certain values from a particular table.
Syntax : = LOOKUP(Search criterion,Search Vector, Result Vector)
Where,
Search criterion = the value to be searched for
Search Vector = the row or column area to be searched
Result Vector = the row or column area from which the result is to be taken.
B. VLOOKUP
VLOOKUP stands for vertical lookup. It searches the first column of a block of data and return the
value from another column in the same row.
Syntax : = VLOOKUP(Search Criterion,Array,Index,Sort Order)
Where,
Search Criterion = the value to be searched

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Array = the range to be searched
Index =The column number in the table from which value to be returned ( 1 for Column A, 2 for
Column B etc)
Sort Order = Give “0” for exact value and “1” for approximate value.
C) HOOKUP
HLOOKUP stands for horizontal lookup. It searches for a value in the first row of an array and
returns the values in a row of the array in the same column.
Syntax : = HLOOKUP(Search Criterion,Array,Index,Sort Order)
Where,
Search Criterion = the value to be searched
Array = the range to be searched
Index =The row number in the table from which value to be returned ( 1 for row 1 2 for row 2 etc)
Sort Order = Give “0” for exact value and “1” for approximate value.
Financial functions
A) ACCRINT
ACCRINT means accrued interest. It is the interest due but not received or paid
Syntax : =ACCRINT(Issue,First Interest,Settlement,Rate,Par,Frequency,Basis)
Where,
Issue = The date on which the security was issued
First Interest = The date on which the first interest will be paid
Settlement= The settlement date of the security(purchased or sold)
Rate = Rate of interest
Par = Face value of the security
Frequency = Number of interest payments in an year
Basis = The type of day count (Optional)
B) RATE
It helps us to calculate the rate of interest on loan taken from a bank or financial institution or
the rate of return on investment.
Syntax : = RATE(Nper,Pmt,PV,FV,Type)
Where,
Nper = Number of payment periods
Pmt = Fixed amount paid during each period
PV =Present value of loan or investment
FV =Future value of loan or investment (Optional)

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Type = Give “0” if payment is made at the end of the period and give “1” if payment is made at the
beginning of the period (optional)
C) CUMIPMT
It returns the cumulative interest on loan or investment , based on a constant interest rate between
start period and end period.
Syntax := =CUMIPMT(Rate,Nper,PV,S,E,Type)
Where,
S= Start period (First year 1, Second year 13, Third year 25 and so on)
E= End period (First year 12, Second year 24, Third year 36 and so on)
D) PV (Present Value)
It is used to calculate the amount of money needed to be invested at a fixed rate today to receive a
specific amount over a specified number of periods.
Syntax ; =PV(Rate,Nper,Pmt,FV,Type)
E) PMT
It refers to the payment which has to be made periodically for a loan or investment. It helps to
calculate the instalment amount including part of principal amount and monthly interest.
Syntax : = PMT(Rate,Nper,PV,FV,Type)
F) FV (Future Value)
This function calculates the future value of an investment based on a constant interest rate.
Syntax ; = FV(Rate,Nper,Pmt,PV,Type)
G) NPV (Net Present Value)
It is the present value of an investment’s expected cash flows minus the cost of investment.
Syntax : =NPV(Rate, Value 1,Value 2,..........…)
Data entry
Data can be entered into the cells in the following ways
a) Direct data entry using key board
b) Through data fill option
c) Import data from other softwares.
Data Validation
This feature imposes restrictions on the type of data entered into a cell. That is invalid entries to a cell
are restricted.
Steps:
1. Select the range in which the data is to be entered.
2.Then go to Data Validity Criteria Allow

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3. Choose List, Date,Time etc and set criteria.
4.Then Go to Input help option and type Title and Input help message to be shown
5.Finally go to the option Error Alert, select the action from the combo box, give a Title , type the
Error message to be shown and Press OK
Conditional formatting
The conditional formatting changes the appearance of a cell range based on a condition or criteria. It
helps to highlight relevant cells, emphasise unusual values and visualise data using colour scale
Steps
1. Select the cells to which you want to apply conditional style
2. Format Conditional formatting Condition
3. In the appearing window give the conditions in appropriate fields and Press OK
Data Tables
There are Two types of data tables
1. One Variable Data Table
2. Two Variable Data Table
One Variable Data Table
One Variable Data Table helps to get multiple results by changing any one of the variables
Two Variable Data Table
Two Variable Data Table is a data table with Two variables and a single result.
To prepare these tables go to Data Multiple Operations
Pivot Table
Pivot Table is a tool for combining, comparing and analysing large amounts of data easily. It is a table
that summarizes source data in another table and creates reports.
Path : Data Pivot Table Create
Common Error messages in Calc
1. ###Error
It happens when a column is not wide enough to display the content
2.#DIV/0! Error
It occurs when we try to divide a number by Zero
3. #Name Error
This happens when Calc cannot recognise Text in a formula.cIt occurs due to misspelled formula or
named range.
4.#Ref ! Error
This is shown when a formula referred to a cell is not valid

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5.#Value ! Error
This occurs when a wrong argument is given in a formula.
6. # Num ! Error
It occurs when a calculation resulted in an overflow of the defined value range.

CHAPTER 3
USE OF SPREAD SHEET IN BUSINESS APPLICATIONS

PAY ROLL ACCOUNTING

Pay Roll is a statement prepared by every organisation showing the details of salary paid to its
employees.
Pay Roll components
Earnings
1. Basic Pay (BP) – It is the pay in the pay scale. It is a fixed amount.
2. Dearness Allowance (DA) – It is the compensation to make up the purchasing power of
employees due to prise rise.
3. Dearness Pay (DP)- It is the portion of DA which is merged with BP
4.House Rent Allowance (HRA) – For meeting the expense on rented accommodation
5. Transport Allowance (TA)- For meeting the travelling expense
6. Other Earnings - Include education allowance, medical allowance, washing allowance etc.

Deductions
1. Professional Tax (PT)
2. Tax Deducted at Source (TDS)
3.Provident Fund(PF)
4. Loan instalment
5.Other deductions, if any
Gross Pay and Net Pay
Gross Pay = Total Earnings = BP+DA+HRA+TA+Other Allowances
Net Pay = Gross Pay – Total Deductions
Total Deductions =PT+PF+TDS+Loan Instalment + Other Deductions

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Asset Accounting
It involves calculation of depreciation , maintenance of asset register etc.
Depreciation is the gradual and permanent decrease in the value of a fixed asset. There are Two
methods for computing the amount of depreciation. They are Straight Line Method and Diminishing
Balance Method.
Straight Line Method (Fixed Instalment Method)
Under this method depreciation is calculated on the original cost of the asset.
SLN function is used to calculate depreciation under this method.
Syntax : =SLN(Cost,Salvage,Life)
Cost = Acquisition Cost
Salvage =Scrap Value
Life = Life period of asset
Diminishing Balance Method(Written Down Value Method)
Under this method, depreciation is calculated on the balance of asset at the beginningof each year.
DB function is used to calculate depreciation under this method.
Syntax : =DB(Cost,Salvage,Life,Period,Month)
Where,
Cost = Acquisition Cost
Salvage = Scrap Value
Life = Life of Asset in years
Period = Period(Year) for which depreciation is calculated
Month = Number of months in the first year
Loan Repayment Schedule
Loan Repayment Schedule is a complete table of periodic loan repayments , showing the amount of
principal and interest components in each instalment until the loan is fully paid off. It also shows the
outstanding balance of loan amount after the payment of each instalment. We use PMT function for
this purpose.

CHAPTER 4
GRAPHS AND CHARTS FOR BUSINESS DATA

Graph
A graph is a a diagram showing the relation between two variables.

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Chart
A Chart is a graphical representation of data in a worksheet.
Types of charts
1.Column Chart
Column charts are useful for showing data changes over a period of time or for illustrating
comparisons among items. Here the data series are displayed vertically.
2. Bar Chart
Bar Chart also visualise comparison among items. Usually the data series is displayed
horizontally
3. Pie Chart.
Here the data series is displayed as a percentage of the total. It has only one data series.
4.Doughnut or donut Charts
A donut chart is similar to Pie chart with two exceptions. One it has a hole in the middle
and it can display more than one data series.
5. Line Chart
It is used to display trends over a period of time.

Bar Chart Column Chart

Pie Chart Donut Chart

Pie Chart Donut Chart

Chart Elements

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 1.Chart area
2.Plot area
3.Chart floor
4.Chart Main Title
5. Chart Sub tiltle
6. X axis
7. Y axis
8. Z axis
9.Axis Titles
10.Data points
11. Data series
12.Legend
13.Data label
14.Gridlines

Steps to create Charts and Graphs

1. Open LibreOffice Calc
Applications Office LibreOffice Calc
2. Enter the given data in the cells
3. Select the cells containing the data
4. Select option Chart from the Insert Menu Insert Chart Select chart type
Next Data series Next Finish

Changing the Chart Type

1. Select the Chart by double Click
2. Right cick on the chart and select click Ok
3. Select the new chart type and click Ok
Advantages of Graphs and Charts
Charts and Graphs help to:
- create a visual appeal
- read the data easily
- analyse the data quickly
- know the trends easily
- present huge volume of data easily and within limited space.

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 CHAPTER 5
ACCOUNTING SOFTWARE PACKAGE- GNUKhata
GNUKhata is an accounting software which was developed by Digital Freedom Foundation in
association with International Foundation for Free and Open Source Software (ICFOSS). It supports
wide range of applications related with accounting and inventory management.
Features
1.It is a free and open source accounting software.
2. It is based on double entry book keeping.
3. Financial reports like Ledgers, Trial balance, Profit&Loss account, Balance sheet etc. are available.
4. Source document can be attached along with voucher entry.
5. Export and import of data from spread sheet is possible.
6. Password security and data audit facility provided.
Starting GNUKhata
Step 1 . Open GNUKhata
Applications Office GNUKhata
Step 2. Create organisation
Click ‘Create Organisation icon and give the following details
a) Organisation name
b) Case
c) Organisation type
d) Financial year
e) Mode of accounting
Then click proceed button
Step 3. Create admin
a) User name
b) Password
c) Confirm password
d) Security question
e) Click create and login
Groups and sub-groups
GNUKhata has 13 pre-determined account groups, of which 9 relates to the Balance Sheet and the
other 4 relates to Profi&Loss account or Income & Expenditure account.

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Profi&Loss account or Income & Expenditure account groups

Sl No Group Name Sub-group name

1 Direct Income None

2 Direct Expenses None

3 Indirect Income None

4 Indirect Expenses None

Balance Sheet Groups

Sl No Group Sub-group

1 Fixed Assets Building, Furniture, Land, Plant&Machinery

2 Investments Investment in Bank Fixed Deposits ,Investment in shares and

debentures
3 Loans (Assets) None
4 Current Assets Bank, Cash, Inventory,Loans and Advances ,Sundry Debtors

5 Miscellaneous None
expenses (Assets)
6 Capital None

7 Loans (Liability) Secured, Unsecured

8 Reserves None

9 Current Liability Provisions, Sundry Creditors for expenses,

Sundry Creditors for purchases

System generated Ledger Accounts

Sl No Account Group Sub-group
1 Closing stock Current assets Inventory
2 Opening stock Direct expenses None
3 Profi&Loss account Direct income None

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4 Stock at the beginning Current assets Inventory

Treatment of specific items

Closing stock
Open Journal voucher Enter Voucher number and closing date
Debit Closing stock and Credit Profit&Loss account
To carry over the closing stock as the opening stock of next year
Administration Close books / Roll over
Opening stock
If the accounts of business are computerised for the first time, opening stock can be inserted through
the following steps
Step 1: Edit the Stock at the Beginning Account
Master Edit Account Select Stock at the Beginning Account
Click on edit Enter Opening balance
Step 2
Voucher Select Journal Voucher Enter Voucher No and Opening date
Debit Opening Stock and Credit Stock at the Beginning
Sales Returns and Purchases Returns
In this Software Sales Returns comes under the group “ Direct Expense” and Purchases Returns
comes under the group “ Direct Income”
Options on Menu Bar in GNUKhata
1.Master
Create Account - To create Ledger accounts
Edit account - To edit accounts created
Edit Organisation particulars- To edit the Organisation created
Cost Centre - To allocate cost to a unit
Bank reconciliation Statement - To prepare Bank reconciliation Statement
2.Vouchers
This is meant for recording transactions . Vouchers like Receipts, Payments,Sales, Purchase etc are
available in this Menu.
3.Reports
To generate reports like Ledger, Trial Balance, Balance Sheet etc.
4. Administration

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This includes New User, Remove User, Change Password, Export data, Import data, Delete
Organisation etc
5. Help
This explains the features of the software and helps the user to understand its operation.
Ledger Creation
Master Create accounts
Then enter details such as Group Name , Sub-group name, Account name and Opening balance if any
and click “Save”
Display Ledger accounts
Report Ledger Account name Select the name of ledger
Check or Uncheck the option Monthly Ledger View
Edit Ledger Account
Master Edit account
Deleting Ledger accounts
Master Edit Account Select Ledger Delete
Vouchers
We record transactions through the Menu option Vouchers.
Types of Vouchers
Voucher type Used to record Short cut key

Receipts All receipts of cash or cheque F4

Payments All payments of cash or cheque F5

Sales Cash and credit sales of goods F6

Purchase Cash and credit purchase of goods or raw materials F7

Contra Deposit of cash to and withdrawal of cash from bank F8

Journal Rectification and adjusting entries and purchase or sale of F9

fixed assets on credit
Sales Return Return of goods by customer Ctrl+1

Purchase Return Return of goods to supplier Ctrl+2

Credit Note Reduction in the amount due from a customer Ctrl+3

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Debit Note Reduction in the amount payable to a supplier Ctrl+4

Steps to crate Vouchers

1. Open GNUKhata
Applications Office GNUKhata
2. Create Organisation
Click on ‘Create Organisation’ Enter the necessary Details Proceed
3. Create Admin Enter the details Create and Login
4. Create Ledger accounts
Master Create Account Select Group Sub-group
Enter the account name Save
5. Vocher entry
Voucher Select appropriate Voucher Enter Voucher No and Date
Select Debit account name and enter amount Select Credit account name and
enter amount Enter narration And Press Enter Key Press Save
Finding and editing a voucher
1. Voucher Find/Edit Voucher
2.Select criteria to search the required voucher
3.Select the transaction we want to edit and press Enter Key
4. The voucher will appear ,Click on Edit button , Make necessary changes and Save
Deleting a Voucher
Voucher Find/ Edit Press Delete Button Respond “Yes” to
the message in the confirmation window
Reports
Ledger Account:-
Reports Ledger Select account Set Date View
Trial Balance:-
Reports Trial Balance Set Date View
Profit&Loss Account :-
Reports Profit&Loss Account Set Date View

Balance Sheet :-
Reports Balance Sheet Set Date View

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Procedure to prepare bank reconciliation statement
1. Open GNUKhata
2. Create Organisation
3. Create Admin and login
4. Create Ledger accounts
5. Enter Vouchers
6. Enter Clearance Date
Master Bank Reconciliation Statement Select the Bank Account
Set the Reconciliation period (From Date and To date) Click on View
Enter Clearance Date
7. To view Bank reconciliation Statement
Click on ‘View Statement”
To see the cleared transactions click on Cleared items
To see the uncleared transactions, click on Uncleared items

CHAPTER 6
DATA BASE MANAGEMENT SYSTEM (DBMS)

Data base
Data base is an organised collection of data.
Data base management system
It is a software application that helps the users to create and maintain the data base.
Relational data base
It refers to a data base in which data is stored in multiple tables.
Entity
Anything in the real world with independent existence is called entity.
Eg: Student, Employee, Car etc
Attributes
The features of entity are called attributes. Eg: For the entity Student the attributes are
Name , Date of birth , Age , Admission Number etc

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Field
A column of the table is called field
Record
A row of the table is called record.
Primary Key or Identifier
The field which uniquely identifies a record in a table.
Eg: Admission Number for the entity Student.
Symbols to represent different entities and attributes

Procedure for creating a new data base

Applications Office LibreOffice Base Create new data base
Next Save and Proceed Finish Give name
Save

Components of LibreOffice Base

Tables : Used to store data in the data base
Queries : Used to manipulate data in the database
Forms : Allows the user to input , retrieve and updating data.
Reports : Used to present the information stored in database in the required Format using
queries.

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Creating Tables
Tables can be created in Three ways:
1. Create Table in Design View
2. Use Wizard to Create Table
3. Create View

Creating Table in Design View

1. Crate a new database.
2. From the database pane click “Tables”
3. Click Create Table in Design View
4.Enter details such as Field name , Field Type and Description
5. Set the Primary Key
6. Save the Table by giving a name.

Description

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Field Types
It describes the nature of data. There are different data types as shown below

Setting Primary Key

1. Enter all fields in the table
2. Select and right click the empty box just to the left of the name of the field you wish to set
as Primary Key
3. Select and click on the “Primary Key” option

Creating relationships between tables

1. Tools Relationships Add tables
2.Select the name of the Table and then click Add for each Table

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3. Position the cursor over the Primary Key of the first Table, Press and hold the left mouse button
and drag it to the Primary Key of the second Table and then release the mouse button.
4.Press OK

Creating Forms
Forms can be created in two ways;
1. Create form in Design View
2 . Use Wizard to Create Form

Use Wizard to Create Form

1. Click on Use Wizard to Create Form icon in the task pane
2. Select the Table for which you want to create Form
3. Select the fields you want to include in the form by mouse click
4. Click Next Next………….Next Give Desired name
Finish

Creating Queries
Queries can be created in Three ways;
1.Create Query in Design View
2.Use Wizard to create Query
3. Create Query in SQL View

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Create Query in Design View
1. Click on Create Query in Design View from the task pane
2. Select the Table Add Close Double click the Required fields
Type the criteria in the required fields F5 to Run the Query
Save the Query by giving a suitable name.
Creating Reports
Reports can be created in Two ways:
1. Create Report in Design View
2. Use Wizard to Crate Report

1. Click on Use Wizard to create Report on the task pane

2. Add the required fields from Table or Query by mouse click
3. Click Next Next …………...Next Give a suitable Title to the Report
Finish
Types of reports
Reports can be Static or Dynamic
Static Reports
These are meant to present information that is not likely to change overtime.
Dynamic reports
These are meant to present information that changes overtime
Steps in designing Report
1. Assess the requirements expected in reports
2. Decide overall layout

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3.Determine needed tables and columns to be included.
4. Build Query
5. Build the report

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