Hi,
I had discussions with the client and he provided me with a list of gl accounts. He has sorted the same as per his needs. I am unable to figure out what the account groups should be for the g/l's. Am pasting an extract.
FINAL GROUPING
Level 1 Level 2 Level 3 GL-ACCOUNTS
01SHAREHOLDERS' FUNDS
01 SHARE CAPITAL
01AUTHORISED,ISSUED,SUBSCRIBED AND PAID- UP
0001 EQUITY SHARE CAPITAL
02 RESERVES AND SURPLUS
01RESERVES AND SURPLUS
0001 CAPITAL RESERVE
0002 GENERAL RESERVE
0003 PROFIT & LOSS ACCOUNT-SURPLUS
02 LOANS
01 SECURED LOAN
01 TERM LOANS FROM BANKS
0001 PUNJAB NATIONAL BANK
0002 TERM LOAN FROM PNB
02 UNSECURED LOANS
01 LOAN FROM HOLDING COMPANY
0001 V.S HOLDINGS PVT LTD(LOAN WITH INT
0002 V.S. HOLDINGS P.LTD(LOAN W/OUT INT)
02 LOAN FROM DIRECTORS
0001 YATISH S (CAR)
At what level should the account group be. Am confused between level 2 and 3 as I see pros and cons for both.
I thank you for your help in advance.
Regards,
Sailesh