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Jan 18, 2011 at 06:17 AM

How to settle on G/L account groups

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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