User:JayShah2002/sandbox

Introduction
Desi Namu is an ancient accounting system derived and adopted in the Indian subcontinent to write accounts. In this system the books are known as ‘vahi’ therefore it is also known as ‘Vahi Padhdhati’. Generally Desi Namu is written in regional language like Gujarati, Marathi etc. It can also be written in English. This system was used in India long before the double entry book keeping system was developed in Europe. Hence it is older than the latter. In earlier times it was maintained as ‘Vikram Samvat’ year, it is said to be named after the great king Vikramaditya of Ujjain. He established Vikram Samvat era after defeating the Sakas. It’s design is similar to the Gregorian calendar but different from the Jewish calendar. In modern times it is also maintained as per the English calendar. In desi namu the books are covered with red cloth and are hard bound. These books are in the vertical form and they contain blank pages, however in modern times, books of accounts with lined pages are also in use. The money received from others or money received in any other way is called ‘jama’(credit) and money given to others or money going out is called ‘kharch’(debit).

Vikram Samvat:
Desi Nama system uses months and year of Vikram Samvat which comprises the twelve months period from Kartik to Aso. Now, even in this system, the dates according to English calendar are written.(According to Income-tax Law accounts of all assesses must be closed on 31st March. Hence traders keeping books under Desi Nama also keep their accounting year from 1st April to 31st March now.)

Special types of books:
The books in Deshi Nama are usually long, double folded and tied with the thick string. The papers are blank, i.e. not ruled but are folded into generally eight folds (sals).

Credit and debit sides:
The sides are reverse of those used in double entry system. The left-hand side is known as ‘Jama' (Credit) and right-hand side is known as 'Udhar' (Debit).

Eight Folds:
As stated above the books in Deshi Nama are not ruled but are blank, each leaf is folded into eight folds. The first four folds are used for jama and the last four folds (Sals) are used for Udhar. Sometimes a leaf is folded into six folds, three on each side meant for Jama and Udhar respectively. Generally, in case of subsidiary books, six folds are kept.

Rojmel:
The book of original entry is the Rojmel in Deshi Nama. It resembles the journal but as far as the balance is concerned, it is a Cash Book of Double Entry System.

Black Ink:
It was the practice to write accounts in black ink only, but now blue ink has become common.

Use of folds:
The first fold (sals) on each side is used for recording the amount and the remaining three are meant for recording the details of the transaction.

Use of ‘Shri':
Under Desi Nama the word 'Shri' is used before the names of even nominal accounts, e.g. Shri Bhada Khatun (Rent Account).

Posting:
The posting from Rojmel or BethoMel is on the same side of the Ledger. e.g. A has paid us Rupees 500. This will be recorded on the Jama side of Rojmel. Now in the Khatavahi (Ledger) also, this would be recorded on the Jama side of A's Account.

Details in Khatavahi:
In the Khatavahi under Deshi Nama only the amount, the Rojmel Pan (folio) number and the tithi (date) are written. No details about the transactions are given.

Binding of Books:
The books are bound in the middle by a thick string in such a way that leaves can be removed and replaced.

Style of writing amount:
The amount is written in the first fold on both sides. The rupees and paisa are separated by a sign called 'holayo' (J), e.g. rupees 520-25 is written as 520)2

A page for worshipping:
In deshi nama most of the traders keep the first page for worshipping their Gods e. g. Shri Ganeshay Namah or Mahalaxmi Matani Maher Hajo. This is a very old system.

Ublek:
When money is paid to someone, his account is debited on the Udhar side of Rojmel. In the ledger, the account of that person is debited. But when a person takes away money for a very short period to be returned within two-three days. The same is recorded on the Udhar side of Rojmel. However, it is not posted to the account of the receiver in Khatavahi. Simply the letter 'U' is written just below the amount on the Udhar side in the Rojmel. The letter 'U' signifies that the same is not to be posted an L.F. is not to be written. If, however, the amount is not returned within the short period, the same is posted to the Other side of the receiver's account in the ledger.

Upar Tapake:
When money is given to someone for a very short period i.e. up to 24 hours, the same is not entered in Rojmel. Simply a record is made in rough book. At the end of the day, such amount is included in the cash balance in hand. The details are shown in the closing balance. If the amount is not returned the next day then the amount is entered in Rojmel as an Ublek item.

Bhandol Khatun:
This is the name given to Capital Account. When the trader brings capital into the business, it is entered on the Jama side of Rojmel with words "Shri Bhandol Khate Jama" or "Shri Thapan Khate Jama" or "Shri Dukan Khate Jama."

In case of partnership a capital account of each partner is opened and the amount contributed by a partner is credited to his Capital Account.

Shri Ghar-Kharch Khatun:
Any amount spent for personal expenses of the proprietor is debited to "Ghar Kharch Khate". Sometimes this amount is split up into various types of expenses like Anaj Khatun, Tel-Ghee Khatun, Bhada Khatun etc. However, now the amount, withdrawn in cash or in the form of goods by the owner is debited to "Upad Khate" (Drawings Account).

Dukan Kharch Khatun:
Small traders debit small expenses of the business to Dukan Kharch Karte, e.g. postage, stationery, tea and drinks, Muhurt expenses etc.

However, in large business separate accounts for such expenses.

Vatay Khatun:
This account is used in two senses in one sense, it is the Profit and Loss Account In the other sense, it is an account where allowance, discount, bad debts etc. are debited. Similarly, the incomes from commission, discounting of accounts are opened for each of these expenses and incomes bill etc. are also credited to Vatva Khate. However, in modern times, separate

Vigat Khatun:
This is the heading given to a number of transactions relating to one person only, e.g. Two or more transactions with one person has taken place. We have purchased goods of rupees 500 from Suresh Shah, also purchased furniture of rupees 300 for personal use and he has asked us to collect Rupees 200 from Ramesh on his behalf and credit it to this account; then we have to credit Rupees 1,000 to his account in Rojmel and three accounts are to be debited. In this case, on the Udhar side we write "Shri Vigat Khate Udhar" with amount rupees 1,000 and names of all the three accounts, viz. Kharid Khatun, Ghar-Kharch Khatun and Ramesh nu Khatun are written in the inner column. Of course, in the Khatavahi all these three accounts are separately opened and are debited separately.

Shah Khatun or Shree Khatun:
When an amount is received or paid to someone whose name is not to be disclosed, then the amount is debited or credited to "Shah Khate". Similarly when an amount is paid to or received from someone and their name is forgotten, the same in debited or credited to Shree. Khate and when the name is remembered, the name of the person is inserted in the blank space.

Tasalmat Khatun:
This is a temporary account just like Hatthu Khatun. When money is received from any account (except a personal account) and when it cannot be ascertained to which account it should be credited, then it is credited temporarily to the Tasalmat Khate. When the exact account is ascertained, then the Tasalmat Khatun debited and credited to the ascertained account. On the contrary, when the entry of the amount paid can't be ascertained, it is temporarily debited to the Tasalmat Khate and when the account for which payment is made is ascertained then the Tasalmat Khatun is credited and debited to the account which should have been debited. Thus, tasalmat Khatun is similar to Suspense Account of double entry bookkeeping system.

Deshavar Khatun:
When the owner of business or his salesman, munim or any other employee goes out of station to some other place (desawar), a lump sum is given to him for expenses. This amount is not debited to his personal account, but is debited to Desawar Account. When he collects money from debtors and informs the firm it is debited to Deshavur Account and credited to Debtor's Account. If he sends amount by cheque or draft, it is debited to Bank Account and credited to Desawar Account. Similarly, if that person makes any payment on account of business, it is credited to Deshavar Account and debited to Creditor's Account when he returns from tour, he gives details of his account. The expense incurred by him are debited to Travelling Expenses Account and credited to Desawar Account. If he has incurred his personal expenses, it is debited to his personal account and credited to Deshavar Account. The balance paid by him to the firm is credited to his Desawar Account. Thus, they Desawar Account is closed.

Hatthu Khatun:
It is a temporary account. When money is sent to the creditor through munim clerk or Angadia, the same is not directly debited to the creditor. In the first instance, the amount is debited to Hatthu Khate of the person carrying the amount when a receipt is received from the creditor, amount is debited to the creditor's account and the Hatthu Khatun is credited and closed. If the amount is stolen or lost in transit, the same is debited to Vatay Khate and not to the creditor's account. When payment is made to the creditor the Hatthu Khatun is credited and closed.

Chanlla Khatun:
There is a tradition of paying a gift in the form of cash at the time of auspicious occasion like marriage in the Indian society. Such cash gift is known as "Chanlla". Such gifts are very helpful on such occasions when heavy expenses are to be made. However, such gifts are to reciprocated on such occasions in the relatives and friends' families. Hence the amount of challan paid is debited to "Shri Challan Khate". When the Chanlla is given to the relative from whom it is not to likely to be returned, it is debited to Vatav Khate.

Silak Vadh-ghat(increase-decrease) Khatun:
If a mistake is committed in writing the Rojmel or any transaction is left out to be recorded in Rojmel, then the closing cash balance as shown by Rojmel would not tally with the actual cash on hand. Till the error is located and rectified, the difference is put to "Silak Vadh-ghat Khate." If the actual cash on hand is more, the difference is credited to "Silak Vadh-ghat Khate". Conversely, if the actual cash is less and Rojmel shows more balance, the difference is debited to Silak Vadh-ghat Khate. When the error is located, the difference is either credited or debited as the case may be to Silak Vadh-ghat Khate.

Kabulat or Havalo:
When a debtor asks us to recover the amount due from him, from some other person, whom we know or in whom we have faith, and if we accept the arrangement, the same is known as Kabulat or Havalo. The entry for this is to debit the person's account who agrees to pay money and credit the old debtor's account. Of course, a written acceptance from the person who accepts the liability must be taken.

Haste:
The name of the person through whom cash is received or cash is sent is also noted in the books of account in Deshi Nama. Suppose rupees 200 is received from B. Bhavsar but the amount was brought by this accountant Shri Babubhai, then in the Rojmel, the entry on the Jama side would be "B. Bhavsar Khate Jama Ha. Babubhai". The word "Haste" is abbreviated to Ha. or the full word *Haste' may also be written*.

Miti:
In Deshi Nama, the year, month and dates used are that of Vikram Samvat, Its months and tithis are called Miti, e.g. Kartik 11 of Samvat Year 2049.

Mandamani or Kothali Choodamani:
When a shroff or a moneylender lends money to a borrower, he pays something less than the actual amount. This amount so deducted in advance by the moneylender is known as Mandamani and is credited to Vyaj-Vatav Khate. Some people believed that this amount is in addition to the interest that he charges. It is a return for the labor of account keeping. Full amount is debited to the borrower.

Milkat Khatun:
Various types of assets (milkats) are purchased for its use in the business.

For each asset a separate account is prepared. When building is purchased for its use in the business then it is debited to 'Imarat Khate'. Similarly, expenses incurred on purchase of building such as stamp duty, brokerage etc. are debited to Imarat (building)Khate. When building is sold, it is credited to Imarat Khate. For furniture the word "Sadhan Saranjam Khatun" is used. Similarly, when any vehicle like motorcycle, scooter or motorcar is purchased then it is debited to ‘Vahan Khate’ and when it is sold Vahan Khatun is credited.

Janas Khatun:
This is nothing but stock account. The closing stock of goods is known from this account. In big firms, a separate register called 'Dagina Mel' (Stock Register) is kept for this purpose.

Shri Sava:
This sign suggests good wishes. Of course, this is not considered while totalling the amounts.

Shri Purant Janase:
This suggests the opening cash balance and is written as the first item on the Jama side of Rojmel. It resembles the wordings "Balance brought down (b/d)” of double entry system.

Shri Puran Baki:
The closing cash balance is termed as "Shri Purant Baki" which is written at   the end of the Udhar side of Rojmel. "Shri Puran baki" is written in Deshi Nama on the same line as "Balance carried down (c/d)" in Double Entry System.

Mel Tallied:
At the end of the day, the Rojmel is balanced and closing balance is found out. When this balance tallies with actual cash on hand, it is said that "Mel has Tallied". If these two sides do not agree, it suggests that there is some error.

Fankun Marvun:
When entries in the Rojmel and Peta Nondh’s are posted in the ledger, a "0" (zero) is put just below the amount in the Rojmel etc. This process is called Fankun Marvun, i.e. to put the symbol "o" suggesting that the entry is already posted into the ledger. This ensures that no entry is left out while posting.

Dharmada Khatun:
There is a tradition with some business firms to contribute some amount for charitable purpose regularly. When a donation is given to an educational or religious institution etc. it is debited to "Dharmada Khate". Sometimes, a certain portion of the profit is reserved for charity at the end of the year. The amount is credited to "Dharmada Khate" and whenever, charity is made it is debited to this Dharmada Khate. If the whole amount set apart is not utilized for charity during the year, the "Dharmada Khatun" will show credit balance and it would be carried forward.

Rules in Desi Namu
The rules of Desi namu are same as the rules double entry book keeping system because there is no difference in the principles under both the systems. However, the method of writing under both systems is very different.

For personal accounts:

a) The account of a person who gets the benefit from the business is debited.

b) the account of a person who gives the benefit to the business is credited.

For Real accounts:
a) When goods or assets come in the business they are credited.

b) When goods or assets go out of business they are debited.

For Nominal accounts:
    a) Incomes or gains or profits of the business are credited.

b) Expenses or losses occurred in business are debited.

Rough work
In business, transactions take place continuously during a day. It is not convenient to write the books during the day. At the same time, it is also not proper, if receipts and payments i.e. transactions are not at all recorded at the time, because there is a likelihood of forgetting to record some transactions. Therefore, small traders record their transactions of the day on slate or loose sheets or in a diary. Such record is known as Tanchan or Tippan. Whereas big businessmen have many entries so they record them in books. Such a record is termed as ‘Ghadiya’, ‘Sundiya’ or ‘Daniya’. These are some of the terms used for the record of rough book. A book in use for such rough records is called ‘Adadhiya’ businessmen take brief notes in it as per requirement. As per convenience with the rough book regular accounting is done.

Rojmel:
Rojmel is the book of original entry just as Journal is in the Double Entry System. Daily transactions are recorded in this book. Both cash and credit transactions are entered in Rojmel. However, credit transactions are written on both the sides. The closing balance of Rojmel shows the closing cash balance. The ledger is written from Rojmel.

BethoMel:

If the transactions in a business are not many, the Rojmel is not written daily. The Mel for a week, a fortnight or a month is written and the balance is struck at the end of that period. Such Mel is then called BethoMel or tham mel.

Khatavahi (Ledger):
This is the main book of accounts in which different accounts (khatans) are opened. Each page is folded into eight sals, of which first four sals are meant for Jama side and the remaining four sals are meant for Udhar side. A separate page is kept for each account. It is possible to know the details about expenses, incomes, assets, liabilities, capital etc. of the business from the ledger. Small traders keep Bethi Khatavahi or Tham Khatavahi.

Avro:
A special book peculiar to Deshi Nama only is called Avro. This book is written for control purposes and for making the accounts pucca. It is particularly useful for money lenders. Generally, the transactions are first recorded in the Rojmel or Jama Nondh and Udhar Nondh. After a week or a fortnight these transactions are transferred to a book called Avro. e.g. If there were fifteen

transactions with Anil during the month of Shravan, the total of all these fifteen transactions are record in Avro and the individual amounts are the written in the inner folds. i.e. there would be 15 figures in inner folds. and dates (mitis) are written against each individual item. After entering all these transactions in Avro the totals of Jama and Udhar sides are made and the balance is struck. This balance should tally with closing cash balance of Rojmel.

When the posting is made after prepaying Avro, it is called Pakun Namun (pucca nama) because the transactions are first written in Rojmel and then the same transactions are entered in another book. It can therefore be said that if Avro is prepared, the chances of errors are reduced to nil.

Subsidiary Books or Peta Nondh:
The books in addition to those mentioned above are also maintained in Deshi Nama. They are:

(1) Udhar Nondh (i.e. Sales Book) or Vakra Nondh (2) Jama Nondh (Purchase Book) or Kharid Nondh (3) Jangad Nondh (Sale or Return Book) (4) Ugharani Nondh (Collection Book) (5) Dagina Mel (Stock Register) (6) Karar Nondh (Contract Book) (7) Ankada Vahi or Sudha Vahi (8) Vyaj Vahi (Interest Book).

Rojmel:
Rojmel is a book of original entry just as Journal is the book of original

entry in Double Entry System. Day to day transactions are recorded in Rojmel. It is a two feet long book, folded from the middle and bound by thick string on one side. It is bound by red cloth in order to protect it. Now, of course, the ruled books without folds are being used. The date, month and day are written at the top of each day's records. The left-hand side is known as Jama side and the right-hand side is known as Udhar side. Daily records start on a new page and the closing balance is found out in the evening. This balance should tally with the actual cash in hand. Thus, Rojmel is a combination of Journal and Cash Book of Double Entry System. There is no need to prepare Cash Account in the Khatavahi. Small traders enter all transactions in Rojmel, whereas big business firms record only cash transactions in Rojmel, while for credit transactions, they keep separate subsidiary books, i.e., peta nondh.

Characteristics of Rojmel:
According to the old system, Rojmel was a two feet long book, folded and bound by string from middle. It has a red-cloth binding from outside.

At the top are written the Samvat year, the tithi (dale) and day or the week.

The left-hand side is called Jama side and its right-hand side is called udhar side.

Rojmel is written on a new page every day. Every page is numbered, which is called R. P. (Rojmel Page) is short is used as a reference in the ledger.

Balance of Rojmel is found out daily at the end of the day, which must tally with cash on hand in the cash book. Thus, it helps in checking cash balance.

Rojmel is a combination of both Journal and Cash Book of double entry and so there is no need to keep a cash account.

Small traders record all the transactions in rojmel with big firms only record cash transactions.

Bethomel:
It is not always convenient for small traders to prepare rojmel due to less daily transactions, hence such businessmen prepare a composite mel on weekly, fortnightly or monthly basis. Thus, we can say that bethomel is a kind of rojmel. It is also known as Thammel.

Points to be remembered while recording bethomel:
a)    The period details for which bethomel is prepared are mentioned e.g. Bethomel for Samvat 2061.

b)   In bethomel, while recording every transaction, besides the effected account, after writing Jama or Udhar, the tithi of the transaction is written.

c)    The closing balance in bethomel, is found out in the same way as in Rojmel.

Jamanodh (purchase book)
In a business credit purchases and transactions related to credit purchases are recorded in this book. It is also known as Kharidnodh or Jamavahi.

Udharnodh (sales book)
In a business, when transactions related to credit sales are more, this book is prepared. It is also known as Vechannodh or Vakranodh.

Daginamel (Janasvahi or Stock Register):
In Deshi nama, a book, which is maintained to account for the incoming and outgoing of goods, is known as Daginamel or Janasvahi or Stock Register. There are two known methods of preparing a Daginamel. As per one method, Daginamel is prepared like Rojmel, with pages that have eight folds and with two columns Jama and Udhar. As per the other method, it is

prepared in the format of a register, with three main columns that is Receipts (Avak or Incoming) Outgoing (Javak) and the balance, as under Double Entry System.

Aankdavahi: (Sudha Vahi):
Aankdavahi is a Kachi Khatavahi. In it, the ledger accounts of the customers are opened and daily posting of their accounts is done from the Rojmel, Bethomel and Udharnodh. Afterwards at a convenient time, proper posting is done in the ledger (wherein all the ledger accounts for the business are opened). In this way, as the posting is done Bill twice, chances of committing the errors or of forgetting to record a transaction/s are reduced. At the same time a person, who goes for collection, can carry it with him.

Ugharani Nodh:
A clerk or munim who goes for collection keeps with him a book or dairy. In such a book, the brief details/particulars, regarding the amounts due from the debtors, are shown. Such a book or diary is known as Ughraninodh. The person, who goes for collection, records there in the amounts received by him during the collection, based on which the detailed/proper posting is done in the ledger.

Jangad Nodh:
In Jangad Nodh, the sale transactions are recorded. Under Jangad sale transactions (transactions based on 'Sale or Return'), if the customer is not satisfied with the goods, he can return the goods within an agreed time limit. Thus, till the customer's confirms the purchase of such goods or the time limit (the date) for such Jangad sale is not over, it cannot be treated as actual sale. After the time limit for such Jangad sale is over, even if no intimation of the confirmation is received from the customer, such Jangad sale is treated as actual sale. Jangad Nodh is written in the same way as Rome. When in a business, the goods are sold on Jangad, it is recorded in this book on Jama side and when such goods on receiving back or at the end of the agreed time limit it is recorded on the debit side. Of course, the entry for the real sale transaction is recorded in Udharnodh by the businessman.

Karar Nodh (Contract Book):
Many a time, many contracts are entered into regarding purchase. sale or any other matter in a business. These contracts

made with different terms and conditions. Some contracts which may be for longer duration, should always be written contracts and it is also necessary to maintain separate and proper note for each of them. For maintaining a record of such contracts in business, a separate book called Karar Nodh is kept.

Vijayavani:
Generally, the shroffs or money lenders maintain such a book in which an entry is recorded for the interest. Such businessmen accept the deposits also and lend the money to those, who need funds (money). For the purpose, the businessman has to pay the interest to the depositor and charge the Interest from the borrower. In it, an account per such depositor /borrower is opened and after calculating interest on its amount, an entry for the interest is passed recorded. In this Vyajvahi, in addition to interest in general, interest on the installment (Kandhu) is also recorded. If the businessman has borrowed an amount. its

details and the interest on it’s also recorded. In addition, interest on the debt amounts and receivables is also charged for the late payment of the balance. Such interest is also recorded in this book

Hundivahi:
When there are numerous bill transactions by the businessmen

they maintain a separate book called 'Hundi Vahi' to record such information. Such Hundivahi is also prepared like a Rojmel. Of course, the accounting entries for the bills, are recorded in Rojmel or Bethomel. This Hundivahi (Bills Book) provides information, regarding the parties to bills, period, amount etc. to the businessman.

Kabalavahi:
The book, which is maintained by the businessmen in 'For

ward Trading' to record the details of their forward transactions, is known as "Kabalavahi'. Kabalavahi is also known as 'Sauda Patrak'.

Bank Register:
When a businessman maintains more than one bank account for his transactions with the bank, he maintains a register to record his numerous bank transactions. Such 'Register is known as 'Bank Register'. In it, different columns for each bank /bank accounts are kept, and the transactions are recorded in it.

Meaning and Importance:
The main book of account in Deshi Nama as in Double Entry is the Khatavahi or Ledger. The Khatavahi enables the businessman to know expenses and incomes of his business, the purchases and sales, the amount payable or receivable as also the capital. In the Rojmel, the transactions are recorded in the chronological order (in order of dates). Hence, the transactions relating to one account are recorded at different places in Rojmel. It is, therefore, not possible to know all the details about one account from Rojmel or Peta Nondh, e.g. It is not possible to know at a glance from Rojmel as to what transactions took place during Samvat 2060 with one person, say, Shri Maganlal Parekh and consequently what amount is payable to him or is receivable from him on a particular date. This can be known from a book of account called Khatavahi. A separate page is kept for each account and all transactions relating to that account are recorded in that account on that page, which is divided into two parts: Jama and Udhar. From this record on a single page, we are able to see the actual position of the particular account, say, of Maganlal Parekh's Account. We are able to know what amount is payable to him or what amount is receivable from him on a particular date. Thus, from Khatavahi, we are able to ascertain

(1)  What are the total purchases and total sales of the year.

(2)  What amount is receivable and what amounts are payable to various persons.

(3) What expenses are incurred and what incomes are earned during the year.

(4) What types of expenses are incurred and what types of incomes are earned.

(5) Which assets are there in the business.

(6) What is the actual capital invested in business on a particular date.

There are generally eight folds, the first four folds are used for Jama side and the remaining four folds are used for Udhar side. Each page of Khatavahi is given a number and this page number is shown as reference in Rojmel as Khata Pan or L.F.

Method of Posting:
The method of posting is simple. The transaction recorded in Rojmel and subsidiary books like Jama Nondh and Udhar Nondh are transferred to the Ledger. A separate page is kept for each account. The amount transferred from Rojmel to Ledger is shown on the same side of the Ledger as in the Rojmel. e.g. We received rupees 300 from Mahesh Trivedi. This will be recorded on the Jama side of Rojmel with particulars "Shri Mahesh Trivedi Khate Jama." Now an account of Mahesh Trivedi will be opened in the ledger. This will be posted on the Jama side of Mahesh Trivedi's Account in the Ledger. Similarly, a transaction recorded on the Udhar side of Rojmel will be posted on the Other side of the account which receives the benefit It is interesting to note that complete details of the transactions are not recorded in the Khatavahi. Only the number of Rojmel Pan, the amount and miti (date) of the transactions are written in the Khatavahi. The amount is written in the first fold and the page number of Rojmel as well as the Miti are shown in the remaining three folds. Hence, it is not possible to know the details When an entry from Rojmel or any other subsidiary book is posted to the Ledger, 'O' is put just below the amount, signifying that the entry has already been posted to the Ledger. It is known as ‘Marvun' If this is used, it is possible that no transaction is left out without posting. It should be remembered that Shri Purant Janase, Shri Purant Baki and Ublek transactions are not posted in the ledger. In the Rojmel, Betho mel and other subsidiary books, the ledger folio number is shown. It shows the page number of the Ledger on which that transaction is recorded. Similarly, the page number of Rojmel or Betho mel is also written in the Khatavahi, showing that the transaction is entered on a particular page of Rojmel.

Types of Khatavahi: There are three types of Khatavahi, viz.

(i)           Sadi Khatavahi:

The ledger that we discussed above is called Sadi Khatavahi. All accounts are kept in this Khatavahi. The balances of these accounts are extracted at the end of the year and from that a trial balance called 'Utaro' is prepared. On the basis of this final accounts is prepared

prepared. On that basis, the final accounts are prepared.

(ii)          Bethi Khatavahi:

Businessmen doing business on small scale keep such type of Khatavahi. Only the accounts of persons with whom be deals, would be kept in the Khatavahi. He would be able to know the amounts receivable and payable in business. Secondly, he is able to know to whom payment is to be made next month from the income likely to be received next month. The ledger is also known as Tham Khatavahi also.

(iii)        Sama Daskatni Khatavahi:

This ledger is useful to moneylenders and shroffs. It is also known as Acknowledgement Ledger. Wherever the money-lender lends money to a borrower, his account is opened in this ledger. The amount lent, the rate of interest and other details are recorded in the account. A revenue stamp will be affixed on which the borrower will be asked to sign.

Kacha Khatan and Pakka Khatan:
Under double entry system, the nominal and goods accounts are closed at the end of the year. They are transferred to the profit and loss account. Other accounts are showed in the balance sheet. Such distinction is also made in Desi namu.

Kachu Khatun:
These are nominal accounts and goods accounts like purchases and sales accounts. These accounts which are closed at the end of the year and are not carried forward to next year are Kacha Khatan or Kacha Accounts. They are closed by making adjusting entries in the Havala Mel or Achad Mel. For ascertaining profit or loss they are transferred to Kharid Vakra Khatun or Vatav Khatun or Nafa-Nuksan Khatun (Profit and Loss Account).

Pakku Khatu:
The accounts that are not closed at the end of the year but are carried forward to the next year are called Pakku khatu or ‘pacca khata’. The accounts of people, capital accounts and accounts of property are pakka khata.

Utaro (trial balance):
The businessmen prepare a statement which is based on the Baki (balance) of every (all) account. This statement is called 'Utaro'. Under Double Entry System of accounting this statement is called "Trial Balance”. With the help of utaro, it can be ascertained whether the accounts are arithmetically correct or not Utaro is prepared at the end of an accounting year, before preparing final accounts. Shri Purant Baki (Closing balance of cash) as per Rojmel or Bethomel can also be obtained on the basis of utaro.

Utaro is prepared in pages with eight folds like Rojmel. In Utaro, the closing balance (Baki) of each account is written. For the purpose, the account (Kahtu) having a credit (Jama) balance (Baki) is written on the Jama side of the Utaro and the account (Khatu) having Udhar (debit) balance is written on the Other side of the Uterus. Then, the total of the amounts on Jama side and the total of the amounts on Udhar side, are arrived at and they are shown (written) on the respective sides in the third fold. Then, the difference of the total of the amounts on both the sides, is found out and written on the side which is short (always on Udhar side) and it is written as Shri Purant Baki in the fold for particulars. Shri Purant Baki as per Utaro, is tallied with Shri Purant Baki as per Rojmel or Bethomel. If Shri Purant Baki and actual cash on hand are the same, it can be assured that the accounts arithmetically correct.

Havala or Havalamel:
In order to ascertain profit or loss of the business, kacha khata is to be closed. True (correct) profit or loss can be found out by giving accounting effects for closing stock, unpaid expenses, depreciation, bad debts, rectification or errors etc. Besides, at the end of the year, Gharkharcha khata is closed by transferring it to Bhandol khata. Similarly, profit or loss arrived at in Kharid-Vakra khata or Vatay

khata or Nafa Nukshan Khata, is also transferred to bhandol khate. The method of finding out profit or loss through Nafa-Nuksan Khata is not expected to be covered here. The entries to be passed to give necessary accounting effects for such aspects in the books of accounts, are known as Havala or Havala nondh. Such havala nondh is passed, on the last day of the specified period or the year, in Havalamel. Besides, the closing entries passed to close the kacha khata (accounts relating to goods as well as incomes expenses) are also included in Havalamel. In order to record the entries (nondh) in Havalamel at the end of the year or specific period, Havalamel is written on the last page of Rojmel or Bethomel. In Havalamel, the accounting effects of the above said aspects are given in the same

way as are given in Rojmel. That is while passing the entries (nondh) for the above aspects, the account which is to be credited is written on Jama side of Havalamel and the account to be debited is written on Udhar side of Havalamel.

It is also known as Mandchhandnomel or Achamel. Havalamel is different from Jama Kharchmel which is only prepared as a part of rojmel to record the credit transactions only.

entries in Havalamel are-

a)    Stock of goods

b)   Unpaid expenses

c)    Prepaid expenses

d)   Income due but not received

e)    Depreciation

f)     Bad debts

g)    Interest on Bhandol (capital)

h)   Havala to Transfer Gharkharch Khatu (drawings) to Bhandol Khatu(capital accounts)

i)      Havala for Rectification of Errors

j)     Havala nodh to close Kacha Khata

k)    Kacha khata for udhar baki (debit balance)

l)      Kacha khata with jama baki (credit balance)

m)  Havala to Transfer the profit or loss of the business to bhandol (capital account)

By Kharid-Vakhra Khata
Small traders ascertain the profit or loss by Kharid vakra Khata. Instead of keeping a separate account for kharidi and vakra, they keep a combined Kharid-Vakra khata. The amount of purchase is written on the Udhar side of this khata account while the amount of vakra (sales) are recorded by posting to the Jama side of this khata. As we have already studied earlier, after passing the necessary nondhs in the Havalamel with respect to values of stock, income-expenses, bad debts, depreciation, rectification of errors, all the Kacha Khata is closed by transferring it to Kharid Vakra khata. In order to close kacha khata, Nondhs are made in the Havalamel. Thus after making Havala nodh for kacha khata, both the sides of Kharid vakra Khata are totalled and the respective totals are written on the respective sides, Thereafter, the difference between the total of the two sides is found out. The difference so calculated indicates either profit or loss of the business. If the total of the Jama side exceeds, it is profit and if the total of the Udhar side exceeds, it is a loss. The Havala nondh to transfer the profit or loss to Bhandol khate, is also written in the Havalamel itself. In case of profit, Bhandol Khata is credited by debiting Kharid-vakra Khata, as a result the Jama Baki of Bhandol khata increases and in case of loss, Bhandol khata is debited by crediting Kharid-vakra Khata, consequently, Jama baki of Bhandol Khata decreases. By the posting of this Nondh, the total of both the sides of Kharid-vakra Khata becomes equal.

By Vatav Khata
Big traders who have numerous transactions and those who deal in more than one type of goods, ascertain profit or loss by Vatav khata. To ascertain the profit or loss under this method, Havala for stock, as well as Havala to close the accounts relating to the expenses on purchases and to close the accounts relating to the goods are recorded in kharid-vakra khata only. Thereafter the gross profit is found out from Kharid

Vakra khata, which is transferred to Vatav khata and Kharid-vakra khata is closed. (i.e. the profit or loss of Kharid Vakra khata is transferred to Vatav khata). If the Jama side total (i.e.

if there is profit) is higher, then the difference of the totals of Jama and Udhar side, is debited to Kharid-Vakra Khata and is credited to Vatav-Khate and reverse will be the effect if the total of the udhar side (i.e. loss) is higher. This nondh is also made in the Havala Nondh itself.

After passing the Havala nodh for the Havala of incomes, expenses, bad debts, depreciation, rectification of errors etc. all the remaining kacha khata e.g. accounts of incomes and expenses, are closed by transferring them to Vatav Khata.

In order to close Kacha Khata, nondh is made in Havalamel. Here only that kacha khata, which is not transferred to Kharid-Vakra khate, is to be transferred to Vatay Khate and accordingly nondh is made. Thus, after recording the Havala’s for Kacha khata, both the sides of Vatav Khata are added up and on the relevant side the difference in the amount is written down. The difference so found out, indicates the profit or loss of the business. If the total on the Jama side is more, it is called profit and if the total of the Udhar side is higher, it is called loss. Havalanondh to transfer this profit or loss is also written in the Havalamel itself. In case of profit Bhandol Khata is credited by debiting Vatav Khata and as a result Jama Baki of Bhandol khata increases. In case of loss, Vatav khata is credited by debiting Bhandol khata, as a result Jama Baki of Bhandol khata decreases. By posting this Havala nondh, the totals of both the sides of Vatav khata become equal.

Sarvaiya:
Earlier we have seen that to ascertain the profit or loss made by the business at the end of the year, the Kacha Khata is closed. Thus after making Havalanondh for the transfer of profit or loss to Bhandol khata, all Kacha khata stand closed. Now in Khatavahi (ledger) only Paka khata i.e. accounts of individuals (including Bhandol khata) and

accounts of assets (Baki Lena and Baki Deva) show balances. These balances and shree Purant Baki (closing cash balance) show the financial position of the business as on the particular day. Hence, on preparing the annual accounts, they are shown in Sarvaiya (Balance sheet). The format of Sarvaiya is similar to utaro. Here also the first four folds (sal) are kept for Jama side and the rest four folds for the udhar side. Therefore on the jama side of Sarvaiya, Jama Baki (Baki Deva) of Paka Khata and on the Udhar side, Udhar Baki (Baki Lena) of Paka Khata are shown. On both the sides, the amount is written in the first fold and in the remaining folds, the name of the account and page number of Khatavahi (L.F. No.) is written. On Jama side, first of all the balance of the Bhandol Khata is shown. After writing the balances on both the sides in Sarvaiya the totals on both the sides

are made and are written on the respective sides. Thereafter, on the udhar side, Shree Purant Baki is shown and thereafter, the totals of both the sides must be equal.

Advantages-
The system is very simple and can be learnt easily

It is economical.

Leaves (pages) can be added or removed as required.

A complete trial balance (utaro) can be prepared and the accuracy of accounts can be verified.

As Avro is prepared, no mistake is made in posting.

True profit or loss can be ascertained by preparing Profit and Loss Account and financial position can be ascertained by preparing Sarvaiyu.

It is appropriate for small traders. They can get the benefit of double entry system by making minor changes.

Defects-
The books of account under deshi nama are bound by string on one side, its pages are not ruled but are blank and are not numbered. Hence anybody can temper with them. Pages can be taken out or added by anybody. Hence the bound books with page numbers used in double entry must be used in deshi nama also.

There is no system of columnar book-keeping. Where various items are dealt in, it is convenient to have columnar books. e.g. if a person deals in hosiery and cutlery, it will be convenient to have two columns in Jama Nondh for recording separate purchases of these two items.

System of self-balancing ledger must be introduced in deshi nama. This will facilitate checking of books of account, when errors are to be located and arithmetical accuracy is to be verified.

Vouchers for all transactions are not systematically filed and maintained. This should be done to have a detailed record of each and every transaction.

There is no system of petty cash book for recording petty cash expenses. This should be introduced to facilitate the payment and recording of petty expenses.

Details of transactions are not available from accounts. Particularly, in the Khatavahi details of transactions are not entered.

It fails to satisfy the requirements of modern times. Particularly, it is not useful for decision-making in modern big business units.

It is inflexible, as necessary changes are not incorporated according to needs of modern.