how to maintain charts of accounts

CHART OF ACCOUNTS

A chart of account the name of accounts that a company has identified and made available for recording transactions in its journal ledgers.

MAINTAIN CHART OF ACCOUNTS

When we start any new company we have to maintain our chart of accounts because when we were setting up a new company on Peachtree we clicked on BUILD YOUR OWN COMPANY so just because of that we have to maintain our own charts of accounts otherwise we can use chart of accounts of any existing company. To maintain chart of accounts following steps are required which are given bellow;

Step 1;

In first step you open Peachtree software and you have this window on your screen.

Step 2;

If you see on the top of this window you have seen a word MAINTAIN click on this MAINTAIN menu then you have this window on your screen which is below

When you click on maintain menu you have a list below the maintain menu.

Step 3;

In the third step you have to choose the head named CHART OF ACCOUNTS written in the list of maintain menu. When you choose the head chart of accounts you have this window on your screen

Step 4;

After choosing head, Chart of accounts as you that you have the above window on your screen now maintaining chart of accounts start.

In this window you can see a CIRCLE. In this circle you can see that Account ID is written and after this a blank box is in this window it means that you have to write Account ID before this. Account ID is just like a code which every company gives to its chart of accounts for their convenience. Every company have a list of its chart of accounts with their Account ID which is different for all chart of accounts for example 105,  150, 200, 300, 500 etc.

Step 5;

When you enter your account ID in that blank box then you move on to the next step which is Description. Which is about the account that what type of account it is whether it is cash, bills receivables, inventory or any other 

In the above window you can see another circle which is on description you have to write here description of account.

Step 6;

In the 6 step you have to tell about the account type that what of account is which we are maintain.

After  entering account type press ALT S and your chart of account had saved. Repeat all this steps and maintain your all chart of aacounts.

Note;

We can see our saved chart of accounts by clicking on this circled button.

For delete any existing chart of account you have to search that account first. Write account ID, description and account type then click on this DELETE button.

When you click on DELETE button the software wants confirmation from you to delete this account if you want to delete it click on YES and if you don’t click on NO.

If you want to change ID of any account you have to click on CHANGE ID write on the top of this software

Just like the deletion process in this you again have to write account ID, description and account type and click on change ID.

This window appears on your screen enter current account ID and new account ID IN THE CIRCLED PORTION and then click on OK if you want to change the previous ACCOUNT ID.

HOW TO ENTER BEGINNING BALANCES;

To enter beginning balances see this window which is given below

In the above window if you notice this is that window which we use to maintain our chart of accounts. In this window just in front of ACCOUNT TYPE or at the RIGHT SIDE of this window you have seen a BEGINNING BALANCES you have to click the box in front of beginning balances. When you click on it you have this window on your screen which is given below

After clicking on that box you have this window with this new page. This page have different dates here you have to select the date of that balances which you want to enter. We have a trail balance of 1^st January 2010 so it means that these balances are of 31^st December 2009  so from that page you have to select the date of those balances. As you know that we have balances at 1^st January 2010 it means that these balances are of 31^st December 2009 so we you choose date 12/1/09 through 12/31/09 click on this date and press OK.

When you press ok you have the above window on your screen if you can see the circled area you have to enter the balances in that area.

Before entering the beginning balances must check that you have RETAINED EARNINGS account or not. Because this account is compulsory when software makes INCOME STATEMENT it transfer the balance or extra amount to retained earning accounts and if you don’t have this account your income statement will not equal.

To check the retained earnings account you have to click on LOOK UP button and you have all chart of accounts on your screen.

Make sure that you have retained earnings account if you don’t have this account you have to go back and make all accounts again.

The process of maintaing chart of accounts has completed

SET UP OF A NEW COMPANY

SET UP OF A NEW COMPANY

We want to open a new company on peach tree and here we have some steps for it;

First we click on peach tree software.

And after open peach tree software we click on SET UP A NEW COMPANY. After clicking on set up a new company we have this window with 5 contents these are

·        Company name

·        Chart of accounts

·        Accounting  method

·        Posting method

·        Accounting period

When we read all these points we click on NEXT and we have another window with company information we have to give all this information which is required here.

In the above window  we give all the information and then click on NEXT and here we have another window with the head of CHART OF ACCOUNTS. In this window the software explaining 5 ways to decide our own chart of accounts.  We can select any of first two points if company allowing us to copy the chart of accounts of any existing company like RETAIL, SERVICE,CONSTRUCTION etc. And in the next step we can also copy chart of accounts by any company on peach tree  And finally if we want to build our own we click on BUILD YOUR OWN COMPANY. After click on build our own company we click on NEXT.

When we click on NEXT we have this window named ACCOUNTING METHOD. Here we have to decide that what method of accounting we will use ACCRUAL or CASH. Select your accounting method and then again click on NEXT.

So we choose ACCRUAL ACCOUNTING METHOD as our method and click on NEXT.When we choose our posting method then we again click on NEXT to select our accounting period.

When we decided our posting period we have to click on NEXT and we have to choose our ACCOUNTING PERIOD.After this we have to give some information about MONTHLY ACCOUNTING PERIOD. In this window the software is asking some questions from us we have to answer these questions. First question is that from which month we want to start our fiscal year enter the name of that month in the block. Next we have to write the name of that month in which we will enter the data of our company. And finally we have to write the name of that month in which we will enter the PAYROLL of our labor.

Finally we have completed the required information for setting up a new Peach tree Accounting Company and the software is congratulating you.

microsoft word

Before we do that, we'll learn how to open a file. After all, you might have closed down Microsoft Word, or your computer might have crashed. The result being that you no longer have your library letter loaded into Word. So here's how to Open a file you have saved, and want to work on again.

From the File menu, click Open:

The Open dialogue box appears, and looks like the image below: