Maharashtra Board Class 11 Information Technology Skill Oriented Practicals Chapter 4 Accounting Packages GNUKhata PDF Download

Accounting Packages (GNUKhata)

Introduction To Accounting Software

In computerised accounting complete book keeping is done. This enables user to record all types of transactions. These transactions include receipts, payments, income and expenses, sales and purchases, debit notes, credit notes, adjustment journals, memorandum journals and reversing journals.

Various open-source accounting software are available in market. Some examples are GNUKhata, GNUCash, Turbo Cash, Ledger SMB, and Money Manager. You can use any accounting software. This book has introduced GNUKhata which is one of the open source software.

Teacher's Note

Computerised accounting software helps small shops and businesses in India keep their records safely. For example, a small grocery shop can use GNUKhata to track all sales and purchases easily.

Exam Trick

Remember: GNUKhata is free and open source, just like our national anthem is free for everyone to sing. You do not have to pay money to use it.

Points to Remember

Computerised accounting records all business transactions.
GNUKhata is free software for accounting.
Open-source means you can use it without paying money.
Many accounting software packages are available in the market.

Golden Rules Of Accounting

There are three types of account.

Personal Account

Personal account is related with Individual's, Organizations and Institutions accounts. Examples are Persons capital account, Bank account etc.

Rules of Personal account:

Debit the Receiver

Credit the Giver

Teacher's Note

When you take money from the bank, the bank is the giver. So you credit the bank account. This rule helps us remember who gives and who receives money.

Exam Trick

Remember: Receiver = Debit. Giver = Credit. Think of "Giver gives credit" - both words start with the same sound.

Points to Remember

Personal account is for people, organisations and institutions.
Debit means the receiver.
Credit means the giver.
Bank accounts are examples of personal accounts.

Real Account

Accounts relating to assets of business are called Real account. Real accounts are tangible or intangible in nature. Examples are Furniture, Goodwill, Trademark etc.

Rules of Real account:

Debit what comes in

Credit what goes out

Teacher's Note

When a school buys new chairs and tables, these items come in. So we debit the Furniture account. This rule helps track what the business owns.

Exam Trick

Remember: Comes In = Debit. Goes Out = Credit. Imagine goods coming through the door - that is debit.

Points to Remember

Real accounts are for assets and property.
Assets can be things you can touch (tangible).
Assets can also be things you cannot touch (intangible).
Debit what comes into the business.
Credit what goes out from the business.

Nominal Account

Nominal Account is related with all the expenses, losses, and incomes and gains of the business. Examples are wages, salary, advertisement, interest received etc.

Rules of Nominal Account:

Debit all Expenses and Losses

Credit all Incomes and Gains

Teacher's Note

When a shop pays salary to workers, it is an expense. So we debit the Salary account. When the shop earns money from selling goods, it is income. So we credit the Sales account.

Exam Trick

Remember: Expenses and Losses go on debit side. Incomes and Gains go on credit side. Think of it this way - money leaving is debit, money coming is credit.

Points to Remember

Nominal accounts record money spent and money earned.
Expenses and losses are debited.
Incomes and gains are credited.
Salary, wages and rent are expenses.
Sales, fees and interest received are incomes.

Open Source Accounting Software Package-GNUKhata

GNUKhata is a free and flexible software for accounting and inventory management. It provides solutions for basic book keeping. It has various versions such as GNUKhata 4.0, GNUKhata 5.0 and GNUKhata 6.0. We will be using GNUKhata 6.0 in this textbook. This software freely available on https://www.gnukhata.in.

Features Of Gnukhata

Gnukhata is free and open source accounting software.

Gnukhata is based on double entry book keeping.

Gnukhata allows you to comprehensive financial reports-ledgers, trial balance, profit and loss account, balance sheet.

Gnukhata provides source document attachment facility in vouchers.

Gnukhata gives linking facility. To linking of sales and purchase transactions to invoices.

Gnukhata allows you to export and import spreadsheet

Gnukhata gives password security and data audit facility.

Unique dual ledger facility.

Inventory includes invoicing and cash memo.

It can be easily transformed into Indian languages.

It is GST complaint

Teacher's Note

GNUKhata helps Indian business owners keep their accounts safe and organized. It can even be used in Indian languages like Hindi and Tamil.

Exam Trick

Remember: GNUKhata = Free + Secure + Easy. All three important things for a good accounting software for Indian businesses.

Points to Remember

GNUKhata is completely free to download and use.
It gives password security to protect your data.
You can make reports like profit and loss account.
It can be used in Indian languages.
It follows GST rules of India.

Opening Screen Of GNUKhata

When we open GNUKhata for the first time it is called opening screen or welcome screen of GNUKhata.

Company Setup Wizard

Create Company

The first step in GNUKhata is to create an organization. Click on 'Company Setup Wizard' (or press Shift + Control + C).

While creating a company the following details are to be given:

Company Name: Enter the name of the company.

Company Case: Select appropriate case for example as-is, upper case, lower case or title case.

Company type: Select the company Type either 'Profit Making' or 'Not For Profit'.

Financial year: Enter financial Year of the company.

How Would you like to use GNUKhata? It displays following three options, select Accounting only.

Accounting only.

Invoicing with Billwise Accounting.

Inventory with Invoicing and Billwise Accounting.

Uncheck 'Use Simple Mode for Receipt and Payment Vouchers' and 'Use System Generated Voucher Numbering'.

Proceed Button: It allows you to proceed to create company profile.

Teacher's Note

Creating a company in GNUKhata is like opening a new account book. A small tailoring shop in your locality would create a company to start recording their stitching charges and cloth purchases.

Exam Trick

Remember: Company Setup = First Step. Just like you must open a new notebook before writing in it, you must create a company before using GNUKhata.

Points to Remember

Click on Company Setup Wizard to create a new company.
Enter the company name in the first field.
Select company type as Profit Making or Not For Profit.
Enter the financial year dates.
Choose Accounting only option for this course.

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