MARG ACADEMY

Select the appropriate group head under which the new account head to be created. By default MARG generates certain pre-defined group heads.

The user can create a new group using the Accounts Groups option from the Master Entries Menu. Some Major Groups are listed below—

Capital Account  ,Reserves & Surplus, Current Assets,  Bank Account, Cash-in-Hand, Loans & Advances (Assets) ,Securities & Deposits (Assets) ,Stock-in-Hand, Sundry Debtors, Current Liabilities , Duties & Taxes, Provisions/Expenses Payable, Sundry Creditors, Fixed Assets,Investments,Loans (Liability),Bank O/D Account, Secured Loans, Unsecured Loans, Pre-Operative Expenses, Profit & Loss, Revenue Accounts.

The secondary Account Groups under Revenue Accounts Account Group are:

• Expenses (Direct/Mfg.)
• Expenses (Indirect/Admn.)
• Income (Direct/Opr.)
• Income (Indirect)
• Purchase
• Sale

BUDGET VS ACTUAL: In the Financial System, these terms used together refer to contrasting transactions according to whether they were changes in the plan (budget) or changes in expenditures or revenue (actual.) When funds are transferred in or out of an account, the transaction is “actual”, and can happen when cash or cheques are deposited, when cheques are issued from the account, or when a debit or credit is generated by a journal voucher.

If the budget of an account is altered in any way, whether increased or decreased or simply shifted between object codes, this represents a “budget” transaction. Both actual and budget transactions affect the balance of an account. When a financial report prompts for “budget” or “actual” it will give you data according to your choice, and exclude the other. The ASR combines both budget and actual data to calculate the budget balance available.