This GSEB Class 11 Commerce Accounts Notes Part 2 Chapter 8 Introduction of Deshi Nama System covers all the important topics and concepts as mentioned in the chapter.
Introduction of Deshi Nama System Class 11 GSEB Notes
Deshi Namu is the oldest and very popular accounting system in India. Many traders and small entrepreneurs maintain their books of accounts as per Deshi Nama System. In the Deshi Nama System, books of accounts are written, based on the particular principles just like the Double Entry System of accounting. This accounting system is being used even today in the different states in India, in the different regional languages with some alteration as this accounting system is very easy to understand, less expensive and more convenient. This system of accounting possess certain characteristics and therefore it emerged and developed as a different accounting system.
→ Deshi Nama System is the oldest Indian method of writing the books of accounts.
→ In Deshi Nama System, the books of accounts are known as *Vahi’ and therefore this system is also known as ‘Vahi Khata Paddhati’.
→ Generally, the books under Deshi Nama System are written in the regional language.
→ Deshi Nama is usually maintained for a Vikram Samvat year, i.e., from Kartak Sud 1 (ekam) to Aso Vad 0)) (amaas).
→ Small traders record their economic transactions of the day on a slate or loose sheets or in a rough diary, such record is known as ‘Tanchan’ or ‘Tippan’.
→ Big traders record their economic transactions of the day either in a diary or notebook or a book maintained for this purpose, such a record book is termed as ‘Ghadiya’, ‘Sudiyun’ or ‘Daniya’.
→ A book in use for rough records is known as ‘Adadhiya’.
→ Rojmel is the basic or primary book of accounting under Deshi Nama.
→ Bethomel is a composite or collective Rojmel for a pre-determined period of days. It is also known as ‘Thammel’.
→ In Deshi Nama, ‘Aavro’ is written / prepared for making the accounts paku and for control purposes. ‘Aavro’ is generally maintained by Shroffs and big businessmen.
→ Opening Cash Balance of Rojmel or Bethomel is known as ‘Shri Purant Janse’ and Closing Cash Balance is known as ‘Shri Purant Baki.’
→ In Deshi Nama, Capital is known as Shri Bhandol, Drawings is known as Shri Ghar- Kharch and Sales is known as Shri Vakara.
→ Shri Tasalmat Khatu is a temporary account just like the Suspense Account in Double Entry System. During the trade, when there is any receipt or payment but the name of the account is not remembered or not decided, the entry for the transaction made is recorded to Shri ‘Tasalmat Khate’.
→ In Deshi Nama, goods-return accounts are not maintained. Therefore purchase return will be credited to Shri Vakara Khate and Sales-return will be debited to Shri Kharid Khate.
→ In Deshi Nama, a book which is maintained to record the incoming (receipt) and outgoing (issue) of goods, is known as Daginamel or Janasvahi or Stock Register.
→ Aankadavahi is a Kachi Khatavahi; in which, the- ledger accounts of the customers are opened, which is useful for collection.
→ The book maintained by the businessmen to record the details of the forward transactions, is known as ‘Kabalavahi’. Kabalavahi is also known as ‘Sauda Patrak.’
→ Three types of Khatavahi are maintained in Deshi Nama :
- Simple (Sadi) Khatavahi
- Bethi or Tham Khatavahi and
- ama Daskatni Khatavahi.
→ Bethi Khatavahl serves the purpose of both Rojmel and Khatavahi.
→ The money lenders and shroffs maintain Sama Daskatni Khatavahi.
→ ‘Kandhu’ means instalment. The amount which is receivable from a person is divided into instalments and fixed, then it is said that kandhu is done. (Kandhu Kari Aapiyu)
→ The shroff charges the customer a certain amount, for opening the customer’s account in his books. Such an amount is known as ‘Khatu Mandamani’.
→ Many a times, the shroff deducts a certain amount in advance out of money lent and remaining amount is given to customer while lending the money, it is known as ‘Kothali Chhodamani’.
→ The process of carring forward an account to the blank pages at the end, is known as ‘Khatanu Sandhan.’
→ Process of marking sign ‘(0)’ is known as ‘Fanku Marvu’. This sign indicates that the posting is completed or done.
→ In Deshi Nama, the accounts are classified into two types :
- Kacha Khata and
- Paka Khata.
→ The Khatas or accounts, which are closed at the end of the year in order to find out the result of the business, is known as ‘Kacha Khata’. Goods Accounts and Nominal Accounts are included in ‘Kacha Khata’.
→ The accounts, which are not closed at the end of the year but the balances are carried forward for the next year, are called ‘Paka Khata.’ Personal Accounts and Real Accounts are included in ‘Paka Khata’.
→ Result of the business can be known from ‘Kacha Khata’ and the financial position of the business can be known from ‘Paka Khata’.
→ In Deshi Nama, the businessman prepares a statement based on the Baki (balance) of each account. This statement is called ‘Utaro’. Under Double Entry System of accounting this statement is called ‘Trial Balance’.
→ Remember the following account’s names:
- Opening Cash Balance = Shri Pur ant Janse
- Closing Cash Balance = Shri Purant Baki
- Sales Account = Shri Vakra Khatu
- Furniture Account = Shri Sadhan Saranjam Khatu
- Capital Account = Shri Bhandol Khatu
- Drawing Account = Shri Ghar-Kharch Khatu
- Sundry Expense Account = Shri Dukan Kharch Khatu
- Rent Account = Shri Bhada Khatu
- Salary Account = Shri Pagar Khatu
- Purchase Account = Shri Kharid Khatu
- Discount Account = Shri Vatav Khatu
- Advertisement Expense Account = Shri Jaherat Kharch Khatu
- Interest Account = Shri Vyaj Khatu
- Donation Account = Shri Dharmada Kharch Khatu
- Insurance Premium Account = Shri Vima Premium Khatu
- Building Account = Shri Imarat Khatu
- Brokerage Account = Shri Dalali Khatu
→ Remember the following Terminology:
- Books = Vahi
- Deshi Nama System = Vahi Khata Paddhati
- Accounting year = Vikram Samvat
- Journal = Rojmel or Bethomel
- Subsidiary books = Peta Nondho
- Credit = Jama
- Debit = Udhar
- Rough Book or Tanchan, Tippan, Ghadiya Diary or Notebook = Sudiyun, Daniyu, Adadhiya
- Ledger = Khatavahi
- Acceptance = Kabulat
- Transfer = Havalo
- Date = Miti .
- Index number = Panotri or Sankaliyun
- Bethomel = Thammel
- Hand to hand = Haste
- Purchase Book = Jama Nondh/Kharid Nondh
- Sales Book = Udhar Nondh/Vakra Nondh
- Stock Register = Daginamel or Janasvahi
- Collection Book = Ugharani Nondh
- Sale or Return = Jangad Nondh
- Contract Book = Karar Nondh
- Interest Book = Vyaj vahi
- Bill transaction book = HundiVahi
- Bank Register = Bankvahi
- Trial Balance = Utaro
- Rough ledger = Aankdavahi / Sudha- vahi/Kachi Khatavahi
→ Special features:
- When the name of expense or income account is forgotten, then such transaction is recorded to Shri Tasalmat Khate.
- If the name of person is forgotten, the amount of receipt or payment is recorded to ‘Shri Shah Khate’.
- If donation or charity is given, then that amount is recorded to ‘Shri Dharmada Khate’.
- Because of business relations when the business gives cash or gift to relatives in marriage or on other occasions, then that amount is recorded to ‘Shri Chandla Khate’.
- When the money is sent to an outstation creditor through an aangadia, the amount is recorded to ‘Shri Haththu Khate’.
- When any person of the firm, goes out of station for business purpose, a lump sum amount is given to him for expenses, this amount is recorded to ‘Shri Deshavar Khate’.
- If the closing cash balance is more or less than the actual cash on hand, the differential amount is recorded in ‘Shri Silak Vadh-ghat Khate.’
- If goods sold on credit in the previous month are returned, such sales return is recorded in Jama Nondh.
- If goods purchased on credit in the previous month are returned, such purchase return is recorded in Udhar Nondh.
- When any person is lent an amount for a day or even for a shorter time, then such an amount is called ‘Upartapke Rakam’.
- Whenever an amount is lent for a few days to a person in the business, then such an amount is called ‘Ublek Rakam.’
- The miscellaneous and small expenses of business are recorded to ‘Shri Dukan Kharch Khate.’
- Withdrawal by the owner from the firm for personal purpose is recorded / debited to ‘Shri Ghar-Kharch Khate.’