Freeware business billing management software fixed assets loan profit loss and revenue account detail information

Account Group Continued...

Fixed Assets
Fixed Assets are those permanent assets which are necessary for business servicing not for sale such as Building, Equipment, Property etc. Fixed Assets Account Group maintains the account for the fixed assets of the Company.

Loan
Loan is the amount of money which is taken by the borrower from the lender to pay for a purchase. Loan Account Group maintains those accounts which are created for the loans and advances taken by the Company from outsiders.

Under Groups of Loan Account are:

• Bank O/D Account
• Secured Loans
• Unsecured Loans

1. Bank O/D Account
   This Account Group is used to create the account for all the overdraft accounts with bank such as Bill Discounting, Cash Credit Limit and so on.

2. Secured Loans
   Secured Loans are those loans against which some kinds of collateral security has been deposit with the back process. This Account Group is used to create the accounts for all the secured loans by the Company.

3. Unsecured Loans
   Unsecured Loans are those loans against which no security has been deposited by the donor of the loan. This Account Group is used to create accounts for all the unsecured loans taken by the Company.

Profit & Loss
Profit & Loss Account Group maintains total profit or loss earned by the Company in particular time period.

Revenue Account
Revenue Accounts are those which are included in profit and loss account of the Company such as telephone expenses, discount received and so on. Revenue Accounts account group maintains the revenue accounts that affect the profit and loss of the Company.

Under Groups of Revenue Account are:

• Sales A/C
• Expenses (Direct)
• Expenses (Indirect)
• Income (Direct)
• Income (Indirect)
• Purchase

1. Sales A/C
   This Account Group is used to create the accounts for recording the sale of goods for the business purpose.

2. Expenses (Direct)
   This Account Group is used to create the accounts for Direct Expenses. Direct expenses refer to those expenses that are incurred on the goods purchased till they are brought to the place of business for sale such as carriage or freight inwards, manufacturing wages, power and fuel, factory lighting and so on.

3. Expenses (Indirect)
   This Account Group is used to create accounts for indirect expenses. Indirect expenses are those expenses that are incurred for carrying on the day-to-day business such as rent, salaries and so on.

4. Income (Direct)
   This Account Group is used to create accounts for direct income. Direct income is the return on work done or returns on investments such as Professional Service Fees, License Fee, Legal Service and so on.

5. Income (Indirect)
   This Account Group is used to create accounts for indirect income. Indirect income refers to the income that arises from non-trading activities such as interest on fixed deposits.

6. Purchase
   This Account Group is used to create accounts for recording the purchase activities of the business. The term ‘Purchases’ refers to purchase goods by the business concern.

Suspense A/C
Suspense A/C is an account employed to contain balance of personal accounts that may be considered doubtful. Suspense A/C Account Group maintains the suspense account where the nature of transaction cannot be ascertained.