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Round Off amount

angel0in (n/a) (34 Points)

07 May 2009

I want to create an account for Round Off (for sale bills)

In which major account head it will belong ?

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5 Replies

Sandeep Keswani (Tax Consultant) (1064 Points)
Replied 07 May 2009

It can either be in "Indirect Expenses" or "Indirect Incomes" in the P & L A/c. depending upon whether there is credit balance or debit balance.

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Vibhash Kumar Sah (CA) (73 Points)
Replied 07 May 2009

As u want to create rouding off account for the purpose of rouding of the sales figure, it may be grouped under Direct Expenses/Income.

angel0in (n/a) (34 Points)
Replied 07 May 2009

Thanks Sandeep and Vibhash

Should I create Two RoundOff accounts for each balance type (debit/credit) to put in Direct/Indirect Incom/Expenses

-RoundOff (Up)

-RoundOff (Down)

It is not sure that at the end of Financial Period what type of balance will be (debit or credit).

I want to see the ledger of RoundOff at any time

What I should I do

Thanks

shailesh agarwal (professional accountant) (7642 Points)
Replied 07 May 2009

if you are using tally then you can use to open in any where direct or indirect -in last of year-------------------you can adjust as per the case may be and-----------only one round off a/c will be open -----------------and in last it will be merged in discount paid or received a/c as such income tax as no such type of a/c allowed