WO2025041157A1 - A system of recording business accounting transactions (bat) into specified day-books" (asrat) - Google Patents

Abstract

A System of Recording Business Accounting Transactions (BAT) into specified day-books" (ASRAT) 5 A System of Recording Business Accounting Transactions (BAT) into specified day-books" (ASRAT) via a computer implemented system for recording of various categories of Business-accounting-transactions based upon unique identification number (BAT/ extended BAT-ID), characterised by A server computer equipped with a processing unit, Scanning-Device, a network port, one 10 or more data storage units/ access units and an accounting system configured upon the as per present invention, comprising of:- System of Allocation of a unique identification number to each category of Business Accounting Transaction Identification Number to plurality of the business-accounting-transactions of a given category and a system of recording of 15 Business-Accounting Transactions, based upon BAT-ID or extended BAT-ID, fetched through "a Scanning Device, as an input mechanism or through any other input mechanism" configured with system to recognise the BAT-ID and /or Extended BAT-ID, as specified/ identified by the user for the given accounting voucher to be recorded, as a business-accounting-transactions, whereby enabling 20 the completion of the recording of the transactions (data entry), just by providing particulars in the given predefined formats, relevant for such category of business- accounting transactions, and selecting the relevant accounting-ledger-heads from the system-driven selected predefined accounting-ledger-head group/ sub-groups

Description

TITLE OF THE INVENTION

A System of Recording Business Accounting Transactions (BAT) into specified day-books” (ASRAT)

FIELD OF INVENTION

[001] The present invention generally relates to the field of information management, identification Number, and coding systems. The present invention particularly relates to a standard system of structuring, managing, classification and recording of Accounting-Transactions into specified day-books” operated through a computerised mechanism. The invention also relates to a process of creating a unique identification number (BAT-ID) for each category of businessaccounting-transactions (BAT)” to enable the recording of BAT-transactions into specified day-books.

BACKGROUND OF THE INVENTION

[002] Accounting is an age-old concept. Initially, the books of accounts were maintained manually. Technological developments enabled the bookkeeping to be software driven. The objectives of accounting includes recording of the business transactions and to process recorded data, to provide required output i.e. present financial statement/ MIS reports, for the stakeholders. There are many stakeholders (both internal and external) for accounting systems, requiring these outputs from accounting as a base for various analyses, decision-making, compliances, and various other purposes. The accounting system or cycle has two ends and three major steps. Two ends are the input/entry side and reporting side and three stages are:-

(i) Input Side:- Involving recording of accounting-transactions into daybooks (also called as subsidiary books), in the suitable and relevant accounting ledger-heads, based upon applicable accounting rules and principles. (ii) Processing: - Processing of the data recorded into day-books, by way of posting the same into the well-defined Accounting ledger-heads under various groups/sub-groups. Processing also includes preparation of Trial-balance and ensuring arithmetic accuracy of the data recorded.

(iii) Output Side:- Preparation of financial statements, ratio analyse, MIS reports, etc

[003] The Input- side of the accounting system, at present, lacks well defined standard structure, categorisation, standard methodologies, and systems for recording transactions into well defined day-books, at the data entry level. On the other hand, the aspects towards the output side, of the accounting system, have witnessed huge quantum of work being done by various internationally reputed agencies of accountancy, around the world, for example: -

• Schedule VI to the Companies Act, 1956 in India,

• Tax Audit format introduced by Income Tax department in India,

• IFRS (International Financial Reporting Standards),

These laws or bodies, related to accounts, finance or taxation, have worked extensively on standardising the reporting systems, while the standardisation of the accounting system towards the entry side is lacking. The processing part of accounting, in between the input side and output side, is mostly software driven.

[004] The present invention is to provide systems for structuring, classification of the aspects towards the Input side of accounting, and standardising the system of recording of accounting transactions, into well-defined day-books

[005] There are various governing bodies for accountancy courses, the world around and most countries have their own governing body for accounting. In India, The Institute of Chartered Accountants of India, and the Income Tax Act, are the relevant bodies for specifying various books of accounts, required to be maintained by business-entities, as part of the accounting process and compliances. For reference purposes, the related contents of the relevant portion of the documents of these institutions are discussed below, in sections A & section B.

[006] Reference section A: Books of account and other documents to be kept and maintained under section 44AA (3) by persons, AS PER RULE 6F (2) of the Income Tax Act, in India.

The Books of accounts and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions

6F. (2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely: -

1. a cash book

2. a journal, if the accounts are maintained according to the mercantile system of accounting;

3. Ledger

4. carbon copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:

[Provided that nothing in this clause shall apply in relation to sums not exceeding twenty-five rupees;]

5. Original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person:

[007] Reference section B:- Training Material: Introduction to Accounting of Transactions — With Specific Reference to MGNREGA Scheme A JOINT INITIATIVE OF Ministry of Rural Development, Government of India & Professional Development Committee of the ICAI, published in July 2014, Chapter 7 spells out, the requirements of subsidiary books, as under: -

Kinds of Subsidiary Books: -

1. Purchases Book records only credit purchases of goods by the trader

2. Sales Book is meant for entering only credit sales of goods by the trader.

3. Purchases Return Book records the goods returned by the trader to suppliers.

4. Sales Return Book deals with goods returned (out of previous sales) by the customers.

5. Bills Receivable Book records the receipts of bills (Bills Receivable)

6. Bills Payable Book records the issue of bills (Bills Payable).

7. Cash Book is used for recording only cash transactions i.e. receipts and payments of cash.

8. Journal Proper is the journal that records the entries which cannot be entered in any of the above-listed subsidiary books.

[008] The list of day-books used in accounting, as mentioned in Reference A and Reference B above is age-old and these are a limited number of day books (subsidiaries). These books have been in use for a long time. However, the limitation of these day books of accounting is that these are not sufficient enough to accommodate the specific needs of all the types of business dealings or related categories of business accounting transactions. Because of this limitation, there exists a confusion as to which type of business transactions are to be recorded in which day book. The invention presents “a system of category specific businessaccounting transactions to be recorded in a specific day book”.

[009] Further, there exists a contradiction in the related provisions of the Income-Tax Act and the provisions of study materials of ICAI as under: - The ICAI study materials referred in section B, while listing days book, named Journal Proper at Sr. number 8, reads as “Journal Proper is the journal which records the entries which cannot be entered in any of the above-listed subsidiary books”. As such, as per ICAI, Journal Proper is like a default book for recording all those transactions which cannot be entered in a specific daybook, mentioned at Sr no 1 to 7. While as , the sub-clause 2, AS PER RULE 6F (2) of the Income Tax Act, in India, as discussed in reference section A, above, reads as under: -

“(2) a journal, if the accounts are maintained according to the mercantile system of accounting”. As such, as per the The Income Tax Act, a Journal Book is needed only for those business organisations, having a mercantile system of accounting, while as per ICAI, Journal book is default book, for recording all those entries which can not be entered in a specific day-book.

As per the Income Tax Act, the purpose of the journal proper book, it is required only for journal entries necessitating because of the mercantile system, meaning thereby that this book should not be used for accounting for transactions related to business dealings.

[0010] Well-defined structures, classification, and standardisation, for any task, subject, process, work, or activity, is part of the modem era of civilization, For example: -

• HSN codes:- HSN code stands for Harmonised System of Nomenclature, which consists of a globally used coding system and harmonised commodity description, introduced way back in 1988 by the World custom organisation. The HSN code is very vast as it covers entire commodities traded worldwide. The use of the HNS code has made international trade easy. In India, HSN coding was used for excise, customs, and state value- added Tax (VAT) law and is used under goods and services Tax (GST) law, for the classification of products/Goods. Likewise, worldwide, most of the countries refer to the HSN code for prescribing tax rates and laws. • IFRS specify in detail how companies must report their financial statements. These were established to create a common accounting language that could be understood globally by investors, auditors, government regulators, and other interested parties.

• The standards are designed to bring consistency to accounting language, practices, and statements and to help businesses and investors make educated financial analyses and decisions.

• They were developed by the International Accounting Standards Board, which is part of the not-for-profit, London-based IFRS Foundation. The Foundation is with the objective is to set the standards to “bring transparency, accountability, and efficiency to financial markets around the world."

Standard IFRS Requirements: - IFRS covers a wide range of accounting activities. There are certain aspects of business practice for which IFRS set mandatory rules

Statement of Financial Position: This is the balance sheet. IFRS influences the ways in which the components of a balance sheet are reported.

Statement of Comprehensive Income: This can take the form of one statement or be separated into a profit and loss statement and a statement of other income, including property and equipment.

Statement of Changes in Equity: Also known as a statement of retained earnings, this documents the company's change in earnings or profit for the given financial period.

Statement of Cash Flows: This report summarises the company's financial transactions in the given period, separating cash flow into operations, investing, and financing. From the above examples (given only for reference without any intention to make any of these as part of the claim under the application), it is clear that when there are well-defined structures and standard systems for a given task, it brings it convenience, better relevance, better understanding, compatibility, meaningful comparisons, efficient managerial information system, ease of analysis required as a basis for managerial decisions, helps in avoiding huge amounts of repetitive work at various levels, and bring clarity.

OBJECTIVES OF THE INVENTION

[0011] The primary objective of the present invention is to bring a standard system of recording the accounting transactions through a process of Structuring, classification, managing, and Recording of Accounting Transactions into specified day-books operated through a computerized mechanism.

[0012] Another objective of the present invention is to provide a unique, convenient and efficient system for the recording of accounting transactions into well-defined day-books, enabling the accounting to become more system-driven, and minimize the decision making at data entry level, through a process of creating a unique identification number (BAT-ID) for each well-defined category of business-accounting transactions (BAT) to enable the recording of BAT transactions into well-defined specified day-book, with predefined accounting ledger-head groups.

[0013] Another objective of the present invention is to provide a system for specified day-books for recording each category of business accounting transactions and thereby introducing new day books for recording businessaccounting-transactions, as part of the accounting system. The system also involves a process of allocating identification numbers for such accounting transactions and the related day books and business accounting transactions. [0014] Enabling accounting system more dynamic to meet reporting requirements of stakeholders by incorporating additional fields related to MIS in the day book itself.

The objectives of the invention can be better understood from the detailed description.

SUMMARY OF THE INVENTION

[0015] The present invention relates to a computer implemented system for recording of various categories of Business-accounting-transactions based upon unique identification number (BAT/ extended BAT-ID), characterised by :-

• A server computer equipped with a processing unit,

• Scanning-Device

• A network port,

• one or more data storage units, and one or more access units and an accounting system configured upon the ASRAT system as per present invention, comprising of:-

[A] System of Allocation of a unique identification number to each category of Business Accounting Transaction Identification Number (BAT-ID/ or extended BAT-ID) to plurality of the business-accounting-transactions of a given category, configured upon:-

- Single digit of identification number of the Type of Account, the BAT related transaction to be recorded belongs to,

- First Two digit (including the first digit) Identification number of base accounting ledger-head group or day-book where such category of transaction is to be recorded

- The last digit the nature of business-transaction, involved in each such category of such Business-Accounting-Transactions (BAT), to enable defining the status of the another person(s) as a Giver or Receiver When the user opts for the BAT-ID based system for recording of the transaction, and additionally,

• Personal Accounting sub-ledger-head groups to be debited/ credited Where the user has opted for the extended BAT-ID based system for recording the transaction.

[B] A system of recording of Business-Accounting Transactions, based upon BAT-ID or extended BAT-ID, fetched through “a Scanning Device, as an input mechanism or through any other input mechanism” configured with system to recognise the BAT-ID and /or Extended BAT-ID, as specified/ identified by the user for the given accounting voucher to be recorded, as a business-accounting-transactions, whereby

I. On receiving the input of the BAT-ID (when the user has opted for recording the transaction based upon BAT-ID), through the process of scanning or any other input mechanism (discussed in Para C below), used as a mode of input of the the BAT-ID, the system is configured to automatically proceed with -

• System driven selection of the relevant specified day-book, where such a category of BAT related transaction is to be recorded.

• System driven selection of predefined “Base accounting-ledger-head group/ sub-group” to be debited/ credited for the given category of business-accounting-transactions.

• System driven selection of the status of the person involved in the category of the BAT related transactions, as a Giver or Receiver, based upon the nature of the transactions,

• System driven selection of the predefined “Related personalaccounting-ledger-head group” to be debited/ credited for the given category of business-accounting-transactions.

• With a specified format for providing the required details suitable for the related BAT category transaction, And/or

II. On receiving the input of the extended BAT-ID (when the user has opted for recording the transaction based upon extended BAT-ID), through the process of scanning or any other input mechanism (discussed in Para C below), used as input of the extended BAT-ID, the system is configured to automatically proceed with -

• System driven selection of the relevant specified day-book, where such a category of BAT related transaction is to be recorded.

• System driven selection of predefined “Base accounting-ledger-head group/ sub-group” to be debited/ credited for the given category of business-accounting-transactions.

• System driven selection of the status of the person involved in the category of the BAT related transactions, as a Giver or Receiver, based upon the nature of the transactions,

• System driven selection of the predefined “Related personalaccounting-ledger-head Sub-group” to be debited/ credited for the given category of business-accounting-transactions.

• With a specified predefined format for providing the required details suitable for the related BAT category transaction,

III. Enabling the completion of the recording of the transactions (data entry),

• just by providing further particulars/ information/ figures/ data in the given predefined formats, relevant for such category of businessaccounting transactions, and

• selecting the relevant accounting-ledger-heads from the system-driven selected predefined accounting-ledger-head group/ sub-groups

[C] Input mechanism: - The BAT-ID or the extended BAT-ID can be captured in the system, through any of the following input mechanism:- • Scanning of the BAT-ID or the extended BAT-ID as specified by the users on the accounting voucher, and/or

• Manual input of the BAT/ extended BAT-ID in the system, and/or

• Selection of the relevant category from the chart of all the BAT-IDs or extended BAT-IDs, as configured in the accounting system used by the users.

The various aspects and concepts of the system can be further understood from the detailed description section and Drawing section.

BRIEF DESCRIPTION OF DRAWINGS

[0016] The present invention shall be better understood after reading the following detailed description of the presently preferred aspects thereof with reference to the appended drawings, in which the features, other aspects and advantages of certain exemplary embodiments of the invention will be more apparent from the accompanying drawing in which:

[0017] Figure 1 illustrates a System of Recording of BAT transactions based upon BAT-ID / Extended BAT-ID.

[0018] Figure 2 illustrates the input Mechanism

[0019] Figure 3 illustrates System of operations of the portal for “Recording categories of Business Accounting Transactions (BAT) into specified day-books” (ASRAT)

[0020] Figure 4 illustrates Module 01: System of Categorisation of Accounting Transaction

[0021] Figure 5 illustrates Module 02:- Process of Categorisation of Business Transaction based upon subject matter and nature.

[0022] Figure 6 illustrates Module 03:- System of categorisation of Business Accounting Transaction [0023] Figure 7 illustrates Module 04:- System for allocation of 2 DIGIT identification number for Base-accounting-ledger-head Group for each Business Accounting Transaction

[0024] Figure 8 illustrates Module 05:- System for allocation of 2 digit identification number for Related personal accounting ledger-head group for each type of Business Accounting Transaction

[0025] Figure 9 illustrates Module 06:- System for allocation of 2 DIGIT identification number for Day Book

[0026] Figure 10 illustrates Module 07:- System for creating 3 Digit BAT-ID.

[0027] Figure 11 illustrates Module: - 08 System for creating 7 digits Extended BAT-ID.

[0028] Figure 12 illustrates Standard BAT-ID and Extended BAT-ID as per module 05 and 06

[0029] Figure 13 illustrates Module 09:- System for Four digit identification number for sub-ledger heads groups for each Base-accounting-ledger-head Group.

[0030] Figure 14 illustrates Module 10:- System for 4 Digit identification number for sub ledger head group to Related personal accounting heads groups

[0031] Figure 15 illustrates Module l l:-The system provides for 11 digits (or more digits at option of the users) identification numbers for Accounting Ledgerheads under Base sub-groups/ groups under each category of Business Accounting Transactions

[0032] Figure 16 illustrates Module 12:- The system provides for 11 digits (or more digits at option of the users) identification numbers for Accounting Ledgerheads under related Personal sub-groups/ groups under each category of Business Accounting Transactions

DETAILED DESCRIPTION OF THE INVENTION [0033] The Detailed description explains various method, features and functions of the disclosed system with reference to the accompanying figures. In the figures, similar symbols identify similar components, unless context dictates otherwise. The illustrative aspects described herein are not meant to be limiting. It may be readily understood that certain aspects of the disclosed system can be arranged and combined in a wide variety of different configurations, all of which have not been contemplated herein.

[0034] Accordingly, those of ordinary skill in the art will recognize that various changes and modifications of the embodiments described herein can be made without departing from the scope of invention. In addition, descriptions of well- known functions and constructions are omitted for clarity and conciseness.

[0035] Features that are described and/or illustrated with respect to one embodiment may be used in the same way or in a similar way in one or more other embodiments and/or in combination with or instead of the features of the other embodiments.

[0036] The terms and words used in the following description are not limited to the bibliographical meanings, but, are merely used to enable a clear and consistent understanding of the invention. Accordingly, it should be apparent to those skilled in the art that the following description of exemplary embodiments of the present invention are provided for illustrative purpose only and not for the purpose of limiting the invention.

[0037] It is to be understood that the singular forms “a”, “an” and “the” include plural referents unless the context clearly dictates otherwise.

[0038] It should be emphasized that the term “comprises/comprising” when used in this specification is taken to specify the presence of stated features, integers, steps or components but does not preclude the presence or addition of one or more other features, steps, components or groups thereof. The equations used in the specification are only for computation purpose. [0039] The present invention relates to a system for recording and managing accounting transactions. The system comprises a server computer equipped with a processing unit, a network port, Scanning Device one or more data storage units, and one or more access units. An accounting system, configured upon the system and categorisation of transactions as per present invention 'ASRAT" for recording category specific accounting transactions into specified day-book, operated through a set of hardware and software understanding the computer executable language, instructions and commands for recording/ processing the data captured through ASRAT system, BAT-IDs.

[0040] An accounting system, configured upon the system and categorisation of transactions as per present invention 'ASRAT” comprises of following sections :

[0041] Description Section 1:- System and process of structuring and classification of accounting transactions:- As per this system, the entire transactions taking place in the accounting can be broadly classified and structured on the basis of a criteria, “Whether another person(s) is involved (as a giver or receiver), in the given transaction to be recorded, or Not”. If the answer is yes, the transaction is of category one as described below otherwise category two:-

• Category one of accounting transactions, includes accounting transactions resulting from business dealings with another person(s), where the the given transaction to be recorded involves another person(s), either as a Giver or as a Receiver, of anything such as Goods, Services, Fixed-assets, Investment or Money, or anything else (subject-matter of the deal). Such transactions, related to Business-dealings with another person(s)” can be called “Business Accounting Transactions (BAT)

• Category two of accounting transactions, includes accounting transactions related to a journal accounting adjustments, where another person(s) is not directly involved, either as a Giver or a Receiver of any subject-matter of the deal. Such category of accounting transactions can be called “Journal Accounting Adjustments” related transactions or Journal Accounting

Transactions (J AT)

Table 1: Categories of Accounting-transactions

[0042] Description section 2:- System and process of structuring, classification, and coding of business dealings, based upon the subject-matter of the deal, any business-accounting-transaction related to business dealings can be further classified, based upon the subject-matters involved in the given dealings, such as but not limited to, Goods or Services or Fixed-Assets or Investment, or Money or anything else. Based upon the subject-matter of the deal, the business transactions related to business dealings, can at present be further classified into five categories, as per table below.

ASRAT system also provides for a system of allocation of “a unique code for each category of business dealings", for better understanding or clarity of the users. The system involves allocation of a three letter code to various categories of business dealings, where the last letter of the code, is identified with the subjectmatter: -

Table 2:- Categories of Business dealings and related code:-

Any new category of dealing can be further added for any new-subject-matter, and can be called “Dealing of “specific subject-matter” and can be given a code accordingly.

[0043] Description section 3: - System and process of classification of nature of business transaction and system of its coding:, System and process of classification of business transaction based upon its nature and system of its coding :- In any business-transactions, any of the subject-matter of the deal, as categorised in Table 2 above, is either received by the business entity from another persons (Inward nature transactions), or is given by the business entity to another persons (Outward nature transactions). As such, Based upon its Nature (receiving/ giving) any Business Transaction, may be classified as per table below

The classification of any business transaction based upon nature shall enable an easy identification of the status (As a giver or receiver” of any person, in any BAT transaction. Any BAT transactions, being business dealing related accounting transactions with another person, one account to be debited/credited, out of two accounts as part of double entry system, shall always be a personal account, with whom dealings are made. As such

• In any BIT transaction, where the subject-matter of the business transaction is received by the business entity, a personal account is always credited, as the other person is always a giver.

• In any BOT transaction, where the subject-matter of the business transaction is given/ provided by the business entity, a personal account is always debited, as the other person is always a Receiver.

The clarity of status of the person enables the decision as to debit/credit of the personal account becomes clearer. The two natures of business transactions can be given a three digit alphabetic code and a single digit numerical identification number, as under: -

Table 3:-Nature of Business Transactions with related code and identification number

As per system discussed in FIG05 of Drawing

[0044] Description section 4 System and process of structuring, defining, classification, and coding of business transactions

The system provides for the classification of business transactions, based upon two factors as under:-

• The subject-matter of dealings (as discussed in description section 2) and

• The nature of transaction (as discussed in description section 3) above.

[0045] As explained in step 2 above, business dealings are at present classified into five categories, based upon its subject-matter, and as explained in Step 3 above, every business transaction involves, either the subject-matter is received (Inward nature) from another person, or the subject-matter is given (Outward nature) to another person. As part of the dealings, when the actual giving or taking of any subject matter of the dealings, takes place, results in a business transaction. As such business transactions are results of execution of business dealings. As such, in any business transactions, involving any of the five subjectmatters, such as goods/ services/ fixed-assets/ investment/ money, may be either received or given, resulting into 10 types (5 *2) of business transactions at present, as detailed in table 4 below: -

Table 4:- Categories of Business Transactions with related Codes:

As per system discussed in FIG05 of Drawing

Further, each type of business transaction can be added if any subject-matter is added. An addition of one subject-matter shall add two categories of business transaction and allocated a three digit alphabetic code, by a system of combining the last one word of business dealings code and last two words of code of nature of business transaction, as discussed above.

[0046] Other Income Business Transaction as BAT Transaction:- Further there are certain BAT Transactions, which take place because of owning or possessing any fixed-asset or Investments. Such transactions are recorded as other income transactions as the subject-matters, i.e. Fixed-assets or Investment, itself are not dealt with and thus such subject-matters do not go-out or come-in. Such transactions are results of certain benefits arising out of owning/ possessing such subject-matters, and are recorded as Other Income, as explained in the next description.

As such the system provides for categorization of Business Transactions into total eleven categories, including Other Income Business Transactions, as standard category of Business-Transactions, and further categories can be added, as per ASRAT system.

[0047] Section 5:- System and process of structuring, defining, classification, and coding of Business Accounting Transactions (BAT) related to each category of business transactions:- In accounting- system, any business transaction, which has an impact either on Income/ Expenses/ Assets/ Liabilities of the business-entity and are to be recorded in relevant day-book of the subject business-entity, under a title called “accounting-ledger-head”.

The system provides for the classification of business transactions, as defined in step 4 above, into various categories of Business Accounting Transactions (BAT), as detailed in table 5 and 5.1 below, based upon following logical process (linking of category of ledger-head groups/ sub-groups with category of businesstransaction), called the BAT process, as follows:-

• Every business-transaction has an impact on either Income/ expenses/ Assets/ Liabilities.

• Income/ expenses/ Assets/ Liabilities can be further divided into various subcategories, based upon the requirement of structure of the reporting system or financial statement presentation requirements. As such the process of categorisation of Business Accounting Transaction, in the system as per invention is guided by the requirements of structure/ formats of reporting side or financial statements. The process of classification of BAT is the link between the requirements of format or structure of the reporting side with related business dealings.

Any business deal when executed results in a business transaction. Business- Transaction has an impact on the Income/ expenses/ Assets/ Liabilities and is required to be captured, in different groups/heads, in financial statements or reports to various stakeholders. As such system provides classification of business-accounting-transactions is grouped for meeting the requirements of structure of financial statements or other reports.

[0048] BAT CATEGORISATION SYSTEM AND CODING SYSTEM :- The system, as per the ASRAT invention, provides for categorisation of BAT related transactions in such a way that • Each category of BAT transaction can be linked with well defined baseaccounting ledger-head groups/ sub-groups, representing a given type/ sub-type of Income/ expenses/ Assets/ Liabilities. (Table 5.1)

• Each category of BAT transaction can be linked with well defined related- accounting ledger-head groups/ sub-groups, representing a given type/ sub-type of Income/ expenses/ Assets/ Liabilities. (Table 5.1 and 7.1.C)

• Each category of BAT transaction can be recorded by selecting a single accounting rule, out of four rules as defined in AKS -Accounting Rules. The four AKS accounting rules are reproduced hereunder as a reference only:-

AKS Rule 1:- debit the receiver and credit what goes out

AKS Rule 2:- debit what comes in and credit the giver

AKS rule 3:- debit the expenses and credit the service provider/ supplier/ the person in whose favor the benefit is due

AKS rule 4:- debit the receiver of goods/service/beneficiary and credit the income

• Each category of BAT transaction is provided with a dedicated day-book for recording the related transactions (Table 6.2)

• The categorization facilitates the convenient grouping for efficient reporting side requirements and standardization of system of recording of accounting transaction.

System also provides for code to each category of business accounting transaction as under: -

Table 5.1:- Categories of Business Accounting Transactions (BAT) related to each category of Business Transactions, with a system of providing Codes to each category:

As per system discussed in FIG06 of Drawing

The above categories of BAT transactions are given as part of explaining the process claimed in the invention for classification of business accounting transactions, and are limited to above categories. Likewise, any number of BAT categories can be further added in each category of business accounting transaction and can be allocated a code by adding a 2 digit running serial number after the category of related business transactions.

[0049] 5.2 Other Income Transactions (OIT) category of BAT As referred and defined in previous description, other category of BAT transactions also takes place when such category of BAT transactions does-not involve receiving or giving of the subject-matter itself. Such a category of BAT transactions takes place because of

• using the Fixed-assets temporarily for any purposes other than business, or

• on account of owning investments or funds

Such category of BAT transactions can be defined as “Other Income Transactions category of BAT Transactions” as explained in table below:- Table 5.2 Other Income Transactions category of BAT Transactions related to business dealings

[0050] 5.3 Debit/Credit Note registers as a day-book: - Further, the

Debit/Credit Note Day-books are like Journal accounting Transactions related to personal accounts under any groups like creditors/ debtors/ lenders etc. Since the transactions related to debit/credit notes, does not involve actual giving or taking of any subject-matter of the dealing, but arises as a result of any benefit or advantages due in favour of another person from the subject business -entity/ or in favour of subject business-entity from another persons, such transactions are considered as Journal Accounting Transactions, related to another persons and the accounting transaction related to such day-books are as under:-

Table 5.3 Journal Accounting Transactions related personal accounts via Debit/Credit note Books: - (Other than transactions of Dealings of goods, services, Fixed-assets, investment or money or any other subject-matter)

[0051] Description section 6:- System of specified Day Book for the recording of each category of BAT (Business Accounting Transaction), together with system of allocation of Identification number for each day-book:-

Day books are the place where the accounting transactions are recorded. ASRAT provides for a system for recording specific categories of BAT transactions into a specified day book. This process is explained in followings steps: -

[A] List of existing books in use, (presented in this invention only for reference):- Followings are specific books, already in use, for given specific nature of transactions:-

The above day-books are commonly in use at present. Further we refer to study materials, referred to in section B of MGNREGA Scheme A JOINT INITIATIVE OF Ministry of Rural Development, Government of India & Professional Development Committee of the ICAI, published in July 2014, Chapter 7 spells out following subsidiary-books:-Kinds of Subsidiary Books

1. Purchases Book records only credit purchases of goods by the trader.

2. Sales Book is meant for entering only credit sales of goods by the trader. 3. Purchases Return Book records the goods returned by the trader to suppliers.

4. Sales Return Book deals with goods returned (out of previous sales) by the customers.

5. Bills Receivable Book records the receipts of bills (Bills Receivable). 6. Bills Payable Book records the issue of bills (Bills Payable).

7. Cash Book is used for recording only cash transactions i.e. receipts and payments of cash.

8. Journal Proper is the journal which records the entries which cannot be entered in any of the above listed subsidiary books

There are two issues to be addressed in the above list of day-books as discussed in the said study material, which is providing for system of day-books.

The above subsidiary books are not sufficient enough to cater to the specific types of accounting transactions, and related needs of recording formats for specific nature of the specific business transactions.

Journal Book should not be used as a default book, it should be used only for the limited purposes of year end entries or entries required for enabling the accounting process to be completed on mercantile basis.

As such, there is need for introducing new category of day-books, as part of the invention, to enable a well defined specific day book for recording following types of BAT transactions: -

In absence of a specific day book for above types of business transactions at present, there is confusion and ambiguity and the users opt for any day book like Purchases Book or sale book or Bank-book or Journal for recording such transactions. The introduction of new day books, as above, will help in establishing a system of well defined methodology for recording business accounting transactions, by providing a specified day book for recording related dealings.

[0052] [B] New Day Books, as part of our claim, and related categories of BAT, to be recorded as part of the invention, are as under:- To enable an efficient system of recording of each category of BAT transaction, into a specified day book, we introduce following day-books

Table 6.1:- Details of New Day Books and related categories of BAT

The system provides for that likewise new categories of day-books can be further added for any new category of BAT transactions, when devised for any new subject-matter.

[0053] [C] The day-books claimed as above configured with system of additional in-build fields for efficient system of managerial-informationsystem, checks and control :-

The system is configured with unique feature for incorporating multiple independent additional fields, in day-books, for facilitating managerial information, checks and control. This shall enable the day-books to become more dynamic with an objective to provide improved reporting system and improved checks & control for the stakeholders.

As an example, we explain the three additional such field proposed for “Services Availed/ Expense Book” with the objective for each such field and how it shall make the accounting system more dynamic, than it exists today.

The system is configured to inbuilt related specific fields (over and above the normal fields of the day-books) in the specified formats of the “Services Availed/ Expense Book” as under

Field for Next due date for the related expenses:- enabling an alert for stakeholders when the expenses is due for payment next time. This shall enable the users to use the system for identifying the important due dates such as due-date for insurance premium, due-date for GST payment, Due- date for advance-tax payment.

Filed for period covered for the expenses:- Enabling the users to

• Calculate prepaid expenses beyond the financial year or accounting period covered by the financial statements.

• Identify those expenses incurred by the user which are related to the accounting period covered under financial statements but incurred on a later date or prior date.

Identification number of any Master for the expenses:- Enabling the users to absorb the expenses on certain Fixed-assets or department or product.

Any additional field for the book :- As per the needs of the users

[0054] The need for above category of new Day-books is summarised as under: -

• Enabling recording of specific type of business transactions in a specific day book. All above are of repetitive nature of business transactions taking place in business and involve a specified category of business dealing. These types of transactions may occupy large volumes of transactions taking place in business. At present there is a lack of a system to clearly specify where these categories of business transactions are to be recorded. Thereby these categories of transactions are either recorded through Purchases/ sales Books, bank book or Journal Book or debit/credit note registers. As such the introduction of these day-books shall bring clarity as regards the daybook where these BAT transactions are to be recorded. This shall make the entire accounting system more easy, convenient, relevant, transparent, enable better understanding and analyses.

Need for specific format to record specific nature of transactions: - These transactions, as listed in table above, being specific in nature, need a specific format, for better understanding, ready reference, better analyses and ease of recording. For example, Sales Book is there to facilitate recording of Sales invoices for sales of goods. The Purchases Book is there to facilitate recording of Purchases invoices related to goods. These books have a specific format so that all relevant information and data can be conveniently recorded and no major information is missed out. Likewise, the five new day books as introduced as part of the invention, shall service the same purpose for above types of specific business dealings. These categories of transactions require specific details/ information to be captured while being recorded, which require specified day books.

Journal Book with better clarity and limited objective:- At present, Journal Book is used as a default book to record all those transactions, which does not find place in a specific day-book. The purpose of a Journal Book should be limited. Journal Book should be used as a specific day-book, for recording accounting adjustment entries including the year end adjustments transactions and related data entries. Recording business transactions related to business dealings, involving purchases/sales of goods/services/fixed-assets/money, should not be in the scope of a Journal Book As discussed above under section 44AA(3) by persons, AS PER RULE 6F (2) of the Income Tax Act, in India, the Act prescribes that a Journal Book is needed only for those business organisations, having mercantile system of accounting. The intention of journal proper, as per Income tax Act, should not be for accounting for transactions related to business dealings, as the book is required only for journal entries necessitating because of mercantile system.

Improved GST management: - After GST is implemented in various countries world across, it is important that different categories of BAT transactions are recorded separately to enable an efficient system of GST-related accounting, and GST-related management regarding input credit available for different types of transactions. At present, GST-related recording and its implications are cumbersome because these types of BAT transactions are recorded in different day books by different users. For example, the GST related to sales of goods or sales of services or other income, sales of Fixed-assets needs to be separately identified and recorded, and likewise, GST related to purchases of goods or availing of services or other expenses, Purchases of Fixed-assets needs to be separately identified, as the system of input credit may be different for different categories of such transactions. The system of specified day books for each related category shall enable calculations of cumulative periodical figures on account of such different transactions, in the respective day books Improved and efficient managerial information system can be achieved by recording such transactions in related day-books for the purpose, for example The basis on which revenues related to sales of goods are recorded and the basis of sales of services is to be recorded may be different. For example, goods being sold on the basis of quantity and also has an impact on the stocks of the users, while as the sale of services may be linked to time spent or adhoc basis. Sale of Fixed-assets may be on unit basis and impact inventory of fixed assets. As such these different BAT transactions need different treatment in the books of accounts.

[0055] To justify the need of above 5 new day-books, We refer to “Training Material: Introduction to Accounting of Transactions” MGNREGA Scheme A JOINT INITIATIVE OF Ministry of Rural Development, Government of India & Professional Development Committee of the ICAI, published in July 2014, Chapter 7, to justify the need for above new day books, introduced in the present invention. The said Training material of ICAI has mentioned following advantages for any specific subsidiary Book (day book) The advantages of maintaining subsidiary books can be summarised as under:

Division of Labour: The division of journal, resulting in division of work, ensures more clerks working independently in recording original entries in the subsidiary books.

Efficiency: The division of labour also helps the reduction in work load, saving in time and stationery. It also gives advantages of specialisation leading to efficiency.

Prevents Errors and Frauds: The accounting work can be divided in such a manner that the work of one person is automatically checked by another person. With the use of internal check, the possibility of occurrence of errors and frauds may be avoided.

Easy Reference: It facilitates easy references to any particular item. For instance total credit sales for a month can be easily obtained from the Sales Book.

Easy Postings: Posting from the subsidiary books are made at convenient intervals depending upon the nature of the business.

The introduction of these 5 new daybooks in the present claim shall fulfil the advantages as envisaged in the above referred material of ICAI.

Table 6.2:- The complete list of day books (by combining commonly used existing day books at present and new day-books introduced as per the invention) together with the system of allocation of the identification number for such Day book (The system of allocation of day book identification Number is discussed in step related to BAT-ID)

As per system discussed in FIG09 of Drawing

[0056] Description section 7:- System of allocation of a Three-digits numerical identification number to BAT (Business Accounting Transactions):- The classification of business accounting transactions and the logic of classification is discussed in description section 5. The object of BAT classification is to link each BAT category with well defined base-accounting ledger-head groups/ sub-groups, representing a given type/ sub-type of Income/ expenses/ Assets/ Liabilities. (Table 5.1) and with well defined related personal accounting ledger-head groups/ sub-groups, representing a given type/ sub-type of Income/ expenses/ Assets/ Liabilities. (Table 5.1 and 7.1.C), to facilitate recording of BAT transaction in a dedicated day-book based upon selecting a single accounting rule, out of four rules as defined in AKS -Accounting Rules . Now we provide for allocation of identification number for each category of BAT transaction.

[0057] The system provides for a system of recording BAT transactions based upon BAT-ID or extended BAT-ID at the option of the user. The process of three digit BAT-ID is explained in three steps below, as under:

Step I, as part of our claim, we define identification number for the Type of Account and link each type with each category of Business Accounting Transaction

Table 7. LA:- Type of Account and its first stage identification number

We provide a system of linking the accounting ledger-head groups/ sub-groups under each category of BAT and related identification number for each accounting ledger-head groups/ sub-groups: -

Table 7.1.B Base accounting Ledger head Groups with two digit identification number under each Type of Account and related sub groups for under such group with a four digit identification number, for such sub- group:-

The two digit identification number for the base accounting ledger group head is created by taking the first digit from the type of account under which the BAT transaction is to be recorded and then adding another single digit as a running serial number for each accounting ledger head group for the respective type of account.

The same two digit identification number is used as identification number for related day-book for recording such type of BAT transactions, as explained in description 6 above.

The four digit identification numbers for Sub-ledger heads groups under Base accounting ledger-head groups under which each business accounting transaction are to be recorded, are created by adding two digits in running serial numbers to the two digit identification number for the Base Accounting ledger head Group under which such sub-group is to be created:-

As per system discussed in FIG07 of Drawing

The above relates to Base categories of account types, as these form the basis of recording of transaction and selection of related day-books, and referred to as “Base category of Account types and such accounting ledger-head groups are called “ base accounting ledger-head groups” . These transactions have a effect on personal accounts and these personal account related accounting ledger-heads are created under various groups, for each type of business accounting transactions, as per table below and can be referred to and termed as “Related personal accounting-ledger head groups”

Table 7.1.C Related personal accounting Ledger head Groups with two digit identification number under each Type of Account and related sub groups for under such group with a four digit identification number, for such subgroup and JAT category Account:- Certain sub-groups are results of JAT transaction as discussed in description section 10. However for compiling the list of sub-groups for related types of account, these are included in the below table, in a separate column JAT category and later discussed in the JAT category transaction section.

As per system discussed in FIG08 of Drawing

Further the above list of sub-groups are given as an example, and the users can add further such groups as a running serial number for each group. However the above sub-groups, already allocated a four digit identification number, can be taken as standard identification number for such sub-groups.

[0058] Step II. As part of our claim, we provide a system of two-digit identification numbers for the type of Day-Book used for recording, as under, and the system provides for that the first two digits of BAT-ID, reflecting the Base accounting ledger head identification number shall be used as the day-book identification number also:- The day-books are the place to record any BAT transaction. BAT provides for a system of recording each category of BAT transaction in a dedicated book and the first two digits of BAT-ID, reflecting the Base accounting ledger head identification number shall be used as the day-book identification number also. Likewise we can keep adding any new day-book in Income category. Accordingly we have provided for the identification number for each day-book used for recording other types of accounts, as per table below, and when any new day-book is introduced in future, the identification numbers for each new day-book can be further provided as per the system discussed here in step II.

[0059] Step III. As part of our claim, the system provides for that the third digit (last digit) of the BAT-ID shall be a single-digit identification number, reflecting the nature of business accounting transaction (BIT/BOT), as under which also signifies the status of another person (as a giver /receiver) involved in the given transaction, as under: -

Table for single digit identification number for nature of transaction: BIT/BOT

[0060] Table 7.2:- System of an Identification number to Business Accounting Transaction Identification Number (BAT-ID):- The system, provides for the creation of BAT-ID for any BAT accounting transactions consisting of three digits, which shall be created as per the steps provided for in the three steps above, which signifies, as under

Table 7.3.A:- Categories of BAT Transaction and its BAT-ID/ extended BAT-ID, related day-book for recording the transaction, related category of Base/ Personal Accounting-ledger head groups to be impacted:- As an example, we are providing for 19 BAT-IDs as standard BAT-IDs, as under and system provides that new BAT-IDs can be further created from as per the process provided in the following 4 steps above.

As per system discussed in FIG 10 and 11 of Drawing Table 7.3.B: -Extended BAT-IDs for BAT transaction originating from dealing of Money.

INPUT MECHANISM FOR BAT-ID AND EXTENDED BAT-IDS:- As explained, the system provides for recording of a BAT transaction based upon BAT/Extended BAT-IDs, which can be captured in an accounting system operated on ASRAT system, by any of the following options: -

Scanning device:- The BAT/Extended BAT-ID can be written on the accounting voucher and can be captured through a process of scanning Manual entry:- The BAT/Extended BAT-ID can be manually entered in the accounting system based on ASRAT

Selection from the chart:- The accounting system based upon ASRAT shall present a CHART of all BAT/Extended BAT-ID as per table 7 and the users can select the same.

On capturing the BAT/Extended BAT-ID, from any of the above options, the users shall automatically get the access to the respective day-book, where data entry is to be recorded for the given transaction.

[0061] Description Section 8:- System of allocation of identification numbers for Accounting Ledger-heads under each sub-groups/ groups under each category of Business Accounting Transactions:- The identification numbers for accounting head shall be configured of 11 or more digits. The additional digits above 11 can be added to suit the large size of ledger-heads of any organisation, as per their own needs.

I. The system provides for that the logic for base accounting ledger heads identification number is as under :- i. First digit to be type of account and Second digit to be running serial number for each type of account: whereby First two digits together representing Base Accounting Ledger-head group or Day Book identification number. ii. The next two digits (3rd and 4th) shall be representing the subgroup accounting ledger-head group identification as a running serial number under each base accounting ledger-head group. iii. The next two digits (5th and 6th) shall be representing the subaccounting ledger-head group for such sub-accounting ledger-head groups of base accounting ledger-head group., if required by the users, and which can be generated as running running serial number under each sub-group. In case there is no such sub-group required under any sub-group, these two digits i.e. 5th and 6Th shall remain “00”, indicating that there no such sub-groups and the accounting ledger-head is opened directly under the group or main sub-group. iv. The next five digits shall be representing the accounting ledgerhead under each group/ sub-groups, in running serial number for each group/sub-group, to be allocated by the users at their discretion.

II. The system of allocation of identification numbers for Related Personal Accounting Ledger-heads i. The first four digits of such identification numbers shall be the same as four digit identification numbers for sub group of Related personal accounting ledger-head sub- group”, as per table 7.1.C above ii. The next two digits (5th and 6th) shall be representing the sub-accounting ledger-head group for such sub-group Related personal accounting ledger-head group, if required by the users, and which can be generated as a running serial number under each sub-group. In case there is no such sub-group required under any sub-group, these two digits i.e. 5th and 6Th shall remain “00”, indicating that there is no sub-group under the sub-group, and the accounting ledger-head is opened directly under the sub-group. iii. The next five digits shall be representing the accounting ledgerhead identification number, under each group/ sub-groups, in running serial number for each group/sub-group. Based upon the above system, the identification numbers for each BAT category transactions are allocated in the table below, provided as an example for certain accounting ledger-heads.

Table 8:- System for allocation of identification numbers for Accounting

Ledger-heads under sub-groups/ groups:- enabling the users to create identification number for any Accounting ledger-head at their discretion, under the identification number of Accounting ledger-head groups/ sub-groups for the related BAT category: -

System :- I. Select the Group/ Sub-group as created in Table 7.1.B or 7.1.C in detailed description section 7 above II Get related identification number for Accounting Ledger-heads in column 6 as running serial number prefixed with the sub-group/ group identification number as detailed in system above: -

[0062] Examples of creating Identification of ledger heads under Base Accounting ledger head groups /sub-ledger heads:

As per system discussed in FIG 13 of Drawing

[0063] Examples of creating Identification of ledger heads under related Personal

Accounting ledger head groups /sub-ledger heads

As per system discussed in FIG 14 of Drawing

Likewise accounting ledger-heads can be created under each group/ sub-group by the users at per their own requirement.

[0064] Description Section 9:- System of classification of Journal Accounting Transactions and providing identification numbers for the same:- As explained in description 01, there are various transactions, other than business accounting transactions resulting from a business dealing with another person(s), known as Journal Accounting Transactions (JAT) and are recorded into Journal Book. As part of our claim, we present a “system for classification of Journal Accounting Transactions (J AT) into three broad categories based upon the purpose with which such JAT related transactions are passed, as under: -

There is need for passing various accounting entries at the year-end to reflect the profit & loss on mercantile basis, for a given period of accounts. Most of the closing JAT entries are required to be reversed in the next year.

Apart from closing and opening Journal entries, there are certain accounting entries required to be passed as JAT transactions, where another person is not directly involved as a Giver or Receiver.

[0065] JAT Category I:- Year-end closing Journal Accounting Transactions (JAT):- JAT transactions related to year-end transactions to facilitate the accounting on a mercantile basis are are in year-end closing JAT category or “cJAT cJAT transactions are further categorised as under:- cJAT entries related to the Recording of Unsold or unused goods remaining at the end of the year, in the accounts and entries for Recording of closing stocks and can be assigned a code as cJATOl.

Making provision of income belonging or pertaining to the year which is ending. Such cJAT transactions, involving a provision of Income can be assigned a code :- cJAT02: Provision of Income.

Making provision of expenses belonging or pertaining to the year which is ending. Such cJAT transactions, involving a provision of Expenses can be assigned a code :- cJAT03: Provision of Expenses,

Making provision for prepaid expenses cJAT04

Writing off Deferred Revenue Expenditure cJAT05

Writing off Preliminary Expenses cJAT06

Creating Deferred Tax Liabilities cJAT07

Deferred Tex Liabilities as Assets cJAT08

Providing for Depreciation on fixed Assets cJAT09

Other JV Transactions related to year-end:- Any other JAt transactions related to year end, can be classified here and called “Other cJAT Transactions, to include any JAT transactions related to year-end, in the accounting cJATOlO

[0066] JAT category II:- Opening Journal Accounting Transactions (oJAT):- JAT entries involved in the process of reversal of closing cJAT entries of the previous year, are known as Opening JAT entries, can be as called oJAT. cJAT entries in cJATOl to cJAT04, passed in previous year are to be reversed in the accounts, in the next year, as part of opening JAT entries in the books of accounts. oJAT entries for taking Opening stocks in the accounts can be called oJATOl. oJAT for Reversal of Making of provision of income in the previous year. Such oJAT transactions, involving reversal of provisions made in the previous year related to Income can be called:- oJAT02:- Reversal of Provision of Income, oJAT for Reversal of cJAT related to Making provision of expenses in the previous year. Such oJAT transactions, involving a reversal of provision of Expenses made in the previous year can be called:- oJAT03:- Reversal of Provision of Expenses,

Reversal of provision for Pre -paid expenses made in the previous year can be called as oJAT04

Reversal of other closing entries made in last year can be called oJAT05.

[0067] JAT category III:-General category of JAT Transactions are necessitated when there is a need for accounting entries, in which other persons are not directly involved, either as a giver or as a receiver, in the particular transaction, to be recorded. Such JAT transactions can be called “gJAT”. Example of gJAt transaction is:- the allotment of share application money. Share Application, when received is a transaction of dealing of money, whereby share application money is received from another person. The transactions relating to the receipt of share application money are therefore entered into the Bank Book, as a BAT transaction. Later on when share application money is allotted as share capital, it is a transaction, not directly involving a giver or receiver in that transaction. The share application already received is accounted for by way of a Journal Accounting Transaction.

[0068] We classify general category of JAT transactions, in various categories as per table 9 below, as standard sub-categories of gJAT transactions, with a view of standardize the JAT accounting system, and linking these JAT categories transactions with related accounting ledger-head groups. Further categories of gJAT can be created as per needs based upon the same system. The benefits of categorising the JAT transactions into various categories and subcategories are:-

I. Ease of understanding:- The categorisation of the JAT transactions into various categories of specific nature shall make it easy for users to understand the purpose of the specific category of the transaction and shall facilitate a better implications of the transaction.

II. Ease of recording JAT transactions by standardising the recording of most of the JAT transactions:- The categorisation of the transaction shall facilitate to standardise the data entry process, whereby recording of most of the JAT transaction can be predefined, as in table 9 below. The system shall facilitate :-

Auto debit and credit of related accounting heads, based upon the selected transaction identification number. The involvement of the data operator for selection accounting heads shall be minimised, thereby minimising the probability of errors.

The data entry operator/user needs to understand the description/details/information of the transaction to be recorded, then just needs to select the relevant identification number from the relevant category of the transactions, from the drop-down menu. The transaction showing what accounting head is to be debited and what accounting head is to be credited in such selected transaction shall automatically appear, enabling error-free, efficient data entry of Journal Accounting Transaction. [0069] The system provides for a seven-digit transaction identification number for

JAT transactions with the following logic: -

Step I:- First digit “9” indicating that it is a JAT transaction.

Step II. The next four digits including first digit “9” shall be to indicate sub-group of accounting ledger-head as per type of account as per table 7.1.C

Step III. The last single digit shall be continuous serial number of accounting ledger-head under each category of JAT transactions.

Table 9:- Categories of JAT transactions, their transaction identification number, related accounts ledger-head getting impacted System of classification and allocation of an identification number to JAT-related transactions: -

Claims

We Claim:

1. A computer implemented system for recording of various categories of Business-accounting-transactions based upon unique identification number (BAT/ extended BAT-ID), characterised by

A server computer equipped with a processing unit, Scanning-Device a network port, one or more data storage units, and one or more access units and an accounting system configured upon the ASRAT system as per present invention, comprising of:- a) System of Allocation of a unique identification number to each category of Business Accounting Transaction Identification Number (BAT-ID/ or extended BAT-ID) to plurality of the business-accounting- transactions of a given category, configured upon:-

Single digit of identification number of the Type of Account, the BAT related transaction to be recorded, belongs to,

First Two digit (including the first digit) Identification number of base accounting ledger-head group or day-book where such category of transaction is to be recorded

The last digit as the identification number of nature of businesstransaction, involved in each such category of such Business- Accounting-Transactions (BAT), to enable defining the status of the another person(s) as a Giver or Receiver,

When the user opts for the three digit BAT-ID as a base system for recording of the transaction, and additionally,

Last four digits identification number for Personal Accounting sub-ledger-head groups to be debited/ credited

Where the user has opted for the seven digit extended BAT-ID based system for recording the transaction. b) A system of recording of Business-Accounting Transactions, based upon BAT-ID or extended BAT-ID, fetched through “a Scanning Device, as an input mechanism or through any other input mechanism” configured with system to recognise the BAT-ID and /or Extended BAT-ID, as specified/ identified by the user for the given accounting voucher to be recorded, as a business-accounting-transactions, whereby

I. On receiving the input of the BAT-ID (when the user has opted for recording the transaction based upon BAT-ID), through the process of scanning or any other input mechanism (discussed in para C below), used as a mode of input of the the BAT-ID, the system is configured to automatically proceed with -

System driven selection of the relevant specified day-book, where such a category of BAT related transaction is to be recorded.

System driven selection of predefined “Base accounting-ledger- head group/ sub-group” to be debited/ credited for the given category of business-accounting-transactions.

System driven selection of the status of the person involved in the category of the BAT related transactions, as a Giver or Receiver, based upon the nature of the transactions,

System driven selection of the predefined “Related personalaccounting-ledger-head group” to be debited/ credited for the given category of business-accounting-transactions.

With a specified predefined format for providing the required details suitable for the related BAT category transaction. or/ and

II. On receiving the input of the extended BAT-ID (when the user has opted for recording the transaction based upon extended BAT-ID), through the process of scanning or any other input mechanism (discussed in para C below), used as input of the the extended BAT-ID, the system is configured to automatically proceed with - System driven selection of the relevant specified day-book, where such a category of BAT related transaction is to be recorded.

System driven selection of predefined “Base accounting-ledger- head group/ sub-group” to be debited/ credited for the given category of business-accounting-transactions.

System driven selection of the status of the person involved in the category of the BAT related transactions, as a Giver or Receiver, based upon the nature of the transactions,

System driven selection of the predefined “Related personalaccounting-ledger-head Sub-group” to be debited/ credited for the given category of business-accounting-transactions.

With a specified predefined format for providing the required details suitable for the related BAT category transaction.

III. Enabling the completion of the recording of the transactions (data entry)

Just by providing further particulars/ information/ figures/ data in the given predefined formats, relevant for such category of business-accounting transactions, and

Selecting the relevant accounting-ledger-heads from the system-driven selected predefined accounting-ledger-head group/ sub-groups. c) Input mechanism:- The BAT-ID or the extended BAT-ID can be captured in the system, through any of the following input mechanism: -

Scanning of the BAT-ID or the extended BAT-ID as specified by the users on the accounting voucher, and/or

Manual input of the BAT/ extended BAT-ID in the system, and/or Selection of the relevant category from the chart of all the BAT- IDs or extended BAT-IDs, as configured in the accounting system used by the users.

2. The system as claimed in claim 1, A digital portal with system for enabling creation of BAT-ID, Extended BAT-ID based upon the category of business-accounting transactions and identification number for Accounting Ledger-head Group and/or Sub-group

The digital portal access is OTP password enabled. The portal is divided into various modules as under and operated as per FIG reference no given against each Module: -

- Module 01:- System of Categorisation of Accounting Transaction (FIG 04)

- Module 02:- Process of Categorisation of Business Transaction based upon subject matter and nature (FIG 05)

- Module 03:- System of categorisation of Business Accounting Transaction (FIG 06)

- Module 04:- System for allocation of 2 DIGIT identification number for Day Book (FIG07).

- Module 05:- System for creating 3 Digit BAT-ID. (FIG08)

- Module: - 06 System for creating 7 digit Extended BAT-ID. (FIG09)

- Module 07:- System for allocation of 2 DIGIT identification number for Base-accounting-ledger-head Group for each Business Accounting Transaction . (FIG 11)

- Module 08:- System for Four digit identification number for subledger heads groups for each Base-accounting-ledger-head Group. (FIG 12)

- Module 09:- System for allocation of 2 digit identification number for Related personal accounting ledger-head group Each type of Business Accounting Transaction (FIG 13) - Module 10:- System for 4 Digit identification number for sub ledger head group to Related personal accounting heads groups. (FIG 14)

- Module 11:- The system provides for 11 digits (or more digits at option of the users) identification numbers for Accounting Ledgerheads under Base sub-groups/ groups under each category of Business Accounting Transactions (FIG 15)

- Module 12:- The system provides for 11 digits (or more digits at option of the users) identification numbers for Accounting Ledgerheads under related Personal sub-groups/ groups under each category of Business Accounting Transactions (FIG 16)

3. The system as claimed in claim 1, the system for creating a unique identification number for each category of business-accounting transactions “BAT-ID”, and extended BAT-ID to be used as a basis for recording the BAT related transactions in the specified day-books, with various categories of predefined BAT/ extended BAT-IDs, as a standard IDs, for given common categories of BAT related transactions.

4. As per the system claimed in claim 1 system for introducing new daybooks, as part of the accounting system, for enabling the recording of each category of BAT related transactions into specified day-books of accounts and thereby introducing five new day-books, as under (the claim for each of such 5 day-books is independent for each day-book) :-

I. The system for recording the SIT category of BAT related transactions for Services-Inward or Expenses for availing any Services, in a new day-book called “Services Availed/ Expense Book”

II. The system for recording of the SOT category of BAT related transactions for Services-Outwards nature or Sale of Services, in a new day-book called “Sale of Services Book”. III. The system for recording the OIT BAT category of Transactions related to revenue receipts from Fixed Assets owned / Investments owned, into a new day-book called “Other Income Book”.

IV. The system for recording of FIT/ FOT categories of BAT related transactions for Purchases/ sale of Fixed Assets, into a new day-book called “Fixed Assets Book”.

V. The system for recording of IIT/ IOT BAT related category of transactions for Purchase/ sale of Investment, into a new day-book called Investment Book.

5. As per the system claimed in claim 1, A system for allocation of identification numbers to each day book used for recording the accounting transactions.

6. As per the system claimed in claim 1, A system for categorisation of business dealings based upon subject-matter of the deal and system of coding of these categories

7. As per the system claimed in claim 1, system for categorisation of business accounting transactions based upon the subject-matter of the deal and the nature of the transactions, and system of coding of these transactions.

8. As per the system claimed in claim 1, system for allocation of standard identification numbers for Accounting ledger-head groups, related subgroups, for enabling the users to provide the identification numbers to the related ledger-heads by the users at their own discretion.

9. As per the system claimed in claim 1, system for categorisation of accounting transactions into BAT/ JAT category, based upon whether any other person is involved in the transaction, as a giver or receiver, or not.

10. System of classification of Journal Accounting Transactions and providing identification numbers for the same.