Gujarat Board GSEB Textbook Solutions Class 11 Commerce Accounts Part 2 Chapter 8 Introduction of Deshi Nama System Textbook Exercise Questions and Answers.

Gujarat Board Textbook Solutions Class 11 Accounts Part 2 Chapter 8 Introduction of Deshi Nama System

GSEB Class 11 Accounts Introduction of Deshi Nama System Text Book Questions and Answers

Question 1.
Write the correct option from those given below each question :

1. Which is the oldest Indian method of writing books of accounts?
(a) Deshi Nama System
(b) Double Entry System
(c) Single Entry System
(d) Deshi Nama and Double Entry System
Answer:
(a) Deshi Nama System

2. What is called ‘J’ sign used in Deshi Nama between rupees and paise while writing an amount?
(a) Avro
(b) Olayo
(c) Utero
(d) Fanku Marvu
Answer:
(b) Olayo

3. Out of the following, what is called ‘Sudiu’ or ‘Daniu’?
(a) Subsidiary book
(b) Bethel
(c) Kachi Nondh
(d) Rojmel
Answer:
(c) Kachi Nondh

4. Which books in Deshi Nama are called as Basic or Primary books?
(a) Aam Nondh
(b) Karar Nondh
(c) Khatavahi
(d) Rojmel
Answer:
(d) Rojmel

5. Which Mel is known as Thammel ?
(a) Rojmel
(b) Jama-Kharchi mel
(c) Bethomel
(d) Daginamel
Answer:
(c) Bethomel

6. If the name of a person with whom financial transaction has been taken place is forgotten, the financial transaction is recorded by which name?
(a) Shri Tasalmat Khate
(b) Shri Shah Khate
(c) Shri Haththu Khate
(d) Shri Vatav Khate
Answer:
(b) Shri Shah Khate

7. The amount payable to a creditor of the business is sent through a person or aangadia, the amount is credited to which account instead of creditor?
(a) Shri Haththu Khate
(b) Shri Shah Khate
(c) Shri Deshavar Khate
(d) Shri Tasalmat Khate
Answer:
(a) Shri Haththu Khate

8. When money is lended to a person for one day, the amount is known by which name?
(a) Ublek
(b) Upartapke
(c) Deshavar
(d) None of these
Answer:
(b) Upartapke

9. Transactions of credit purchase of goods of business are recorded in which subsidiary books?
(a) Jama Nondh
(b) Udhar Nondh
(c) Kabalavahi
(d) Hundivahi
Answer:
(a) Jama Nondh

10. The books kept in Deshi Nama for recording receipt and issue of goods is known by which name?
(a) Ankdavahi
(b) Sudhavahi
(c) Kabalavahi
(d) Janasvahi
Answer:
(d) Janasvahi

11. Which book is maintained by the traders of forward market to record forward transactions?
(a) Hundivahi
(b) Kabalavahi
(c) Sudhavahi
(d) Vyajvahi
Answer:
(b) Kabalavahi

12. Havalamel is known by which name?
(a) Utero
(b) Sarvaiyun
(c) Rojmel
(d) Achalmel
Answer:
(d) Achalmel

13. Which account of the following is not Kachu Khatu?
(a) Shri Ghar-Kharch Khatu
(b) Shri Pagar Khatu
(c) Shri Vakara Khatu
(d) Shri Commission Khatu
Answer:
(a) Shri Ghar-Kharch Khatu

14. Which accounts are closed at the end of the year in Deshi Nama?
(a) Paka Khata
(b) Kacha Khata
(c) Milk at Khata
(d) Personal accounts
Answer:
(b) Kacha Khata

15. Where the entry of closing Kacha Khata in Deshi Nama is made?
(a) Sudhavahi
(b) Jama-Kharchi Mel
(c) Jamavahi
(d) Udharvahi
Answer:
(b) Jama-Kharchi Mel

16. Where the Paka Khata are recorded, in Deshi Nama System?
(a) Havalamel
(b) Kharid-Vakara Khata
(c) Vatav Khata
(d) Sarvaiyun
Answer:
(d) Sarvaiyun

17. The difference between the credit side and the debit side of Sarvaiyun in Deshi Nama recorded on debit side as ……………… .
(a) Akhar stock
(b) Silak Vadh-ghat
(c) Shri Purant Janse
(d) Shri Purant Baki
Answer:
(d) Shri Purant Baki

18. In Deshi Nama System, the nature of Sarvaiya is like ………………………………. .
(a) Utaro
(b) Daginamel
(c) Rojmel
(d) Udhar Nondh
Answer:
(a) Utaro

19. Which value of closing stock is taken into consideration for Havala Nondh of Akhar stock to calculate profit or loss at the end of the year?
(a) Cost price
(b) Market price
(c) Cost price or market price, whichever is less
(d) Cost price of market price, whichever is more
Answer:
(c) Cost price or market price, whichever is less

20. Profit or loss of Kharid-Vakara Khata is transferred to which account while preparing final accounts by Vatav Khata method in Deshi Nama?
(a) Bhandol Khate
(b) Vatav Khate
(c) Havalamel
(d) Ghar-Kharch Khate
Answer:
(b) Vatav Khate

Question 2.
Answer the following questions in one or two sentences:

1. By which other name the Deshi Nama System is known?
Answer:
Deshi Nama System is also known as ‘Vahi Khata Paddhati’.

2. Explain the meaning of ‘Miti’ in Deshi Nama.
Answer:
In Deshi Nama, Vikram Samvat, Deshi Mass, Paksha and Tithi are known as ‘Miti’, e.g., Samvat 2072 Kartak Sud 9.

3. What is Rojmel?
Answer:
Rojmel is a basic or primary book under Deshi Nama. The businessman prepares Rojmel with the help of vouchers and the rough book. Rojmel is written and prepared daily and the closing balance is derived daily. Hence, this Mel, is known as Rojmel.

4. By whom and when the Bethomel is kept?
Answer:
Small traders keep a Bethomel. Small traders, whose daily business transactions are comparatively less in number, then they keep Bethomel.

5. State any two types of Khatavahi.
Answer:
In Deshi Nama, there are three types of Khatavahi:

1. Simple (Sadi) Khatavahi,
2. Bethi Khatavahi or Tham Khatavahi and
3. Sama Daskatni Khatavahi.

6. What is ‘Sakadiyu’ or ‘Panotri?
Answer:
The index of the Khatavahi is called ‘Sakadiyu’ or ‘Panotri’. From this we can know that which account is on which page in Khatavahi.

7. When there is expense or revenue in business, but the name of the account is not remembered, such transaction is recorded in which account?
Answer:
When there is expense or revenue in business, but the name of the account is not remembered then such transaction is recorded to ‘Shri Tasalmat Khate.’

8. What is Ublek amount?
Answer:
Whenever an amount is lent for a few days to a person in the business, it is called Ublek amount.

9. What is Tarija?
Answer:
At the end of the month, the total amounts of Jama Nondh is recorded to Shri Kharid Khate and the total amounts of Udhar nondh is recorded to Shri Vakra Khate. They are known as Tarij (Summary).

10. What is Jangad Nondh?
Answer:
In Deshi Nama, the book in which the Jangad sale transactions are recorded is known as Jangad Nondh.

11. What is Fanku Marvu?
Answer:
Once the posting for a transaction is done, a sign (0) is marked in the first fold below the amount of the transaction in Rojmel or Bethomel or Peta Nondh. This sign indicates that the posting is completed. Process of marking sign ‘(0)’ is known as ‘Fanku Marvu’.

12. What is Khatanu Sandhan?
Answer:
The process of carrying forward an account to other blank pages is known as ‘Khatanu Sandhan.’

13. What is Mand-Chhod Mel?
Answer:
Entries are to be passed to give the accounting effects of havalas and to close Kacha Khata and transferred to some other accounts (e.g., Shri Kharid-Vakra Khate). The meal prepared with this objective is called Mand-Chhod Mel or Havalamel.

14. Generally, when is the Havalamel prepared?
Answer:
Generally, the Havalamel is prepared at the end of an accounting period.

15. Which two methods are prevalent in Deshi Nama for calculating profit or loss?
Answer:
Two methods are prevalent (used) in Deshi Nama to determine profit or loss:

1. By Kharid-Vakra Khata method and
2. By Vatav Khata method.

16. Write Havala Nondh for Vyaj on Bhandol.
Answer:
Havala Nondh:
Vyaj on Bhandol Khate Udhar
Bhandol Khate Jama.

17. Write Havala Nondh for Ghal-Khadh Anamat.
Answer:
Havala Nondh:
Kharid-Vakra Khate Udhar
Ghal-Khadh Anamat Khate Jama.

18. Write Havala Nondh for transferring profit calculated from Kharid-Vakara Khate to Bhandol Khate.
Answer:
Havala Nondh:
Kharid-Vakra Khate Udhar
Bandol Khate Jama.

19. Write Havala Nondh for transferring loss calculated from Vatav Khata to Bhandol Khate.
Answer:
Havala Nondh: Bhandol Khate Udhar Vatav Khate Jama.

20. What is called Paka Khate in Deshi Nama System.
Answer:
The accounts, which are not closed at the end of the year but the balances are carried forward for the next year, are called ‘Paka Khata’.

Question 3.
Answer following questions in short:
1. Explain the following terms used in Deshi Nama:
1. Avro
2. Vigat Khatu
3. Shah Khatu
4. Tasalmat Khatu
5. Deshavar Khatu
6. Haththu Khatu
7. Kabulat Apvi (to be given)
8. Bethi Khatavahi
9. Kandhu Kari Apvu
10. Kothali Chhodamani
11. Daginamel
12. Ankdavahi
13. Jangad Nondh
14. Karar Nondh
Answer:
1. Aavro: The transactions recorded in the Rojmel or Bethomel and Peta Nondh are once again recorded in another book at the end of fifteen days or a month or a specified period. This book is known as ‘Aavro’.
Avro is a book showing all the business transactions. All those transactions recorded in Rojmel or Bethomel and subsidiary books are again recorded in this book at the end of fifteen days or a month or a specified period.
Aavro is prepared like Rojmel and for the purpose, a book that has pages with eight folds pages is used.

All the transactions recorded in Aavro and the closing balance (Purant Baki) is arrived at. Such closing balance tallied with the closing balance as per Rojmel or Bethomel. The accounting accuracy is maintained by recording all the business transactions in Aavro. ‘Aavro’ is also useful as a tool to find out and control errors in all the transactions recorded in the books of accounts. ‘Aavro’ is generally maintained by shroffs and big businessmen.

2. Vigat Khatu: When there are a number of transactions with a single person or a transaction relating to expense or income or like that matter then separate account is not opened for each transaction. The whole amount is debited or credited to Vigat Khatu and the other details of this Khatu is shown in the inner column. But if there is no posting of Vigat Khatu, all the accounts are separately posted. This saves both the time and labour.

3. Shah Khatu: When an amount is received from someone or paid to someone whose name is forgotten by the trader, the same is recorded to Shri Shah Khate immediately and the Rojmel or Bethomel is closed. When the name is remembered, a reverse entry is passed against Shri Shah Khate and the correct entry is recorded against such a person’s account. When the name of the person is not be disclosed, in such a case also Shri Shah Khatu is used.

4. Tasalmat Khatu: When any expense or income is incurred by the trader but the reason is forgotten or the concerned account cannot be ascertained, then it is temporarily transferred to Tasalmat Khatu and the Rojmel is closed. Later on when the reason is remembered or the concerned account is ascertained then the Tasalmat Khatu is closed by giving an opposite entry and debited or credited to the concerned account. Tasalmat Khatu is like a suspense account under Double Entry System of accounting.

5. Deshavar Khatu: When the owner of the business or his salesman, munim or any other person goes out of station for business purpose, a lump sum amout is given to him for expense. This amount is not debited to his personal account, but is debited to Deshavar khatu of that individual. During the tour when he collects money from debtors, it is also debited to Deshavar Khatu and if he makes any payment on behalf of business, it is credited to Deshavar Khatu. When he returns back from the tour, he gives details of his account, appropriate accounting entires are made for the transactions which had taken place and thus the Deshavar Khatu is closed by crediting the amount. Deshavar Khatu is a temporary account.

6. Haththu Khatu: In order to make payment to his creditor when the trader sends the amount through a clerk, a munim or angadia, the amount is not debited to the creditor’s account, but it is debited to the clerk’s or angadia’s or munim’s Haththu Khatu. After receiving the money receipt from the creditor, Haththu Khatu is credited and the creditor’s account is debited. This way the Haththu Khatu is closed. Haththu Khatu is a temporary account.

7. Kabulat Apvi (to be given): On mutual understanding, the businessman agrees to pay an amount, payable to a creditor, to another person. This is known as Kabulat (Acceptance). In the same way, when a businessman agrees to accept an amount from another person instead of from his debtor, it is also Kabulat (Acceptance). Because of Kabul, there is an effect on the businessman’s debt and receivables. Kabul is based on the consent of the debtor and the creditors, e.g., Dues of ₹ 5,000 from Anish, are accepted by Arjun.

8. Bethi Khatavahi: The small businessmen, whose transactions are comparatively less in number, they maintain only creditor and debtor accounts in the Khatavahi (ledger). Businessmen show the entire transaction in the account while doing the positing due to which receivable-payables can be known quickly. Such an account is known as Betha Khata and such a Khatavahi is known as Bethi Khatavahi or Tham Khatavahi. Instead of recording the transactions of credit purchase and credit sales, in Rojmel or Bethomel, they are recorded directly in the Bethi Khatavahi. Thus, Bethi Khatavahi serves the purpose of both Rojmel and Khatavahi.

9. Kandhu Kari Apvu: Kandhu means instalment. The amount which is receivable from a person is divided into instalments and fixed, then it is said that Kandhu Kari Apvu. The amount for each instalment is called the amount of kandhu.

10. Kothali Chhodamani: Many times the moneylender at the time of lending money deducts some amount from the loan amount and pays the remaining amount to the borrower, this deducted amount is known as Kothari Chhodamani or Mandamani. This deducted amount is an income for the moneylender and expense for the borrower. Shroff debited the total amount (Given amount + amount of Mandamani) to the borrower’s account.

11. Daginamel: The accounts book which is maintained in order to find out the receipt and issue of goods is known as Daginamel. Daginamel is like a stock register. In this, the receipt, issue and other details of stock are recorded. Daginamel is also known as Janasvahi or Stockvahi. Nowadays printed books are available for Daginamel due to which nowadays it is widely used. Some businessmen prepared Daginamel like Rojmel, with pages that have eight folds and with two columns Jama and Udhar.

12. Aankadavahi: In this book, parties personal accounts (debtor’s accounts) are opened and daily posting of their accounts is done from the Rojmel, Bethomel and Udhar Nondh. All types of information are not given in this book, but only the details like the amount of the transaction, miti or date, Rojmel or Udhar Nondh pana number are recorded. From this Khatavahi, the amount receivable from customers and other necessary details can also be available for collection clerk. Pakki Khatavahi is prepared on the basis of the Aankadavahi. So if there is any error or mistake, it can be found out. Aankadavahi is also known as Sudhavahi or Kachi Khatavahi.

13. Jangad Nondh: When goods are sent to a customer on the condition that he may keep the goods if he likes otherwise return it in specific period if he does not like it then goods are said to have been sent on ‘Jangad’. If such type of transactions are more in number then a separate book is kept for recording them which is known as Jangad Nondh.

When goods are sent to the customer on Jangad way or if the customer returns the Jangad goods, they are entered in the Jangad Nondh. If the customer keeps the Jangad goods, then its entry removed from the Jangad Nondh and entered to the Udhar Nondh because now this transaction can be treated as credit sales transaction. Thus, till the customer’s confirms the purchase of such goods or the time limit for such Jangad sale is not over, it cannot be treated as actual sale.

14. Karar Nondh: Sometimes, big business houses enter into contracts with certain conditions for purchase or sale of goods. The details of these types of contracts are entered in the book which is known as Karar Nondh.

2. Write short notes :
1. Rojmel
2. Bethomel
3. Extracting Baki of Khata
Answer:
1. Rojmel: Rojmel is the basic or prime book of accounting under Deshi Nama System. Rojmel is written and prepared daily and the closing cash balance is derived daily. That is why this mel is known as Rojmel.
In Rojmel cash as well as credit transactions are recorded. In addition, based on the transactions recorded in such Rojmel cash balance is found out at the end of the day, which is termed as ‘Purant Baki’. When a large number of transactions takes place every day in the firm, then the big trader keeps Rojmel. Rojmel is like a journal under Double Entry System of accounting.

The book of Rojmel contains blank pages with eight folds, out of which, first four folds of left-hand side are for Jama side and other four folds are for Udhar side. Rojmel is combined form of journal and a separate cashbook under Double Entry System of account. Hence, under Deshi Nama, there is no need to open cashbook or cash account. Ledger is prepared with the help of Rojmel.

2. Bethomel: Bethomel means a composite Rojmel for the days of a fixed period. Bethomel is another form of Rojmel. Bethomel is written for weekly, fortnightly or monthly period. Small traders, whose quantum of business transactions is comparatively less may maintain a Bethomel instead of Rojmel. At the end of each transaction, its Tithi (Date) is written. Balance (Silak) is found out at the end of the period for which the Bethomel is prepared. Bethomel is also known as Thammel.

Bethomel is also prepared like Rojmel in a vertical book, with pages that have eight folds. Bethomel is prepared like Rojmel. In Bethomel, while recording every transaction, besides the effected account, after writing Jama or Udhar, the Tithi of the transaction is written. The closing balance (Silak) in Bethomel, is found out in the same way as in Rojmel.

3. Extracting Baki of Khata: In order to know the position of a particular Khata (Account) on a particular day the Baki (Balance) is found. The difference between the total amount on the two sides of a Khata (an account) is called a Baki (Balance). In other words, Baki (Balance) is the difference between the total debits (Udhar) and the total credits (Jama) of an account. (Khata).

To arrive at a balance, first of all the total of the amounts on the Jama side is done and written in the third fold on Jama side and the total of the amount on Udhar side is written in the third fold on Udhar side. The difference between these two totals is found out, which is known as ‘Baki’. The ‘Baki’ of a ‘Khata’ is written/recorded on the side, where the total of the amounts is less.

The side of which the total is more is called as that balance, e.g., if total of Jama side is more the balance is called as ‘Jama Baki’ and if the total of Udhar side is more the balance is called as ‘Udhar Baki’. When the total of Jama side of the Khata (Account) is more the amount of difference (Balance or baki) is recorded on Udhar side. If accounts are Paka, ‘Baki Deva’ is written in the particular column.

On the other hand if the total of Udhar side of the Khata (Account) is more the amount of difference (Balance or Baki) is recorded on Jama side. If accounts are Paka, ‘Baki Lena’ is written in the particulars column. After noting down the balance (Baki) of an account (Khata) a line is drawn below it and the total of the opposite side is written. Below the total on both Jama side and Udhar side, two lines are drawn.

When the total of both sides of an account is the same, it is called as ‘Khatu Sarbhar thayu’. ‘Shri Sarbhar Khatu’ is written against the amount of total is Sarbhar Khata.

3. What is Havala?
Answer:
In order to ascertain profit or loss of the business, Kacha Khata are to be closed and in order to find out the true profit or loss accounting effects are to be given for closing stock, unpaid expenses, depreciation, bad debts, rectification of error, prepaid expenses, outstanding income, pre-received income, etc. Apart from that, the Ghar-Kharch Khatu is closed at the end of the year and transferred to Bhandol Khate, profit or loss is transferred to Bhandol Khate. All these effects have to be given and entries passed in this respect is known as Havala.

4. What is Utaro?
Answer:
In Double Entry System, the trial balance is prepared before preparing the final accounts to know any arithmetic error is there or not. Similarly, Utaro is prepared in Deshi Nama. Utaro is prepared on the basis of baki of Paka Khata and the total of the debit and credit sides of Kacha Khata.

Generally, Utaro is prepared on the last page of the Khatavahi. It has two sides, the Udhar and the Jama. In both the sides, the first column is meant for amount and the remaining columns are meant for details of the account. In the Utaro, the credit balance (Baki Deva) of Paka Khata are recorded on Jama side and debit balance (Baki Lena) of Paka Khata are recorded on Udhar side.

Without finding out the balance of Kacha Khata, the difference of the total of the debit and credit sides of Kacha Khata are recorded in the Utaro. If the total of the credit side is more then it is a credit balance and is recorded on the Jama side on the utaro and if the total of the debit side is more, then it is a debit balance and is recorded on the Udhar side of the Utaro.

This way the balances of Khata and the difference of amounts are shown in the Utaro and then the closing balance as per Rojmel or Bethomel is recorded on the Udhar side or on the Jama side of the utaro. If the total of the udhar side including the cash balance is equal to the total of the Jama side, then it is said that the utaro has tallied.

5. Explain Kacha Khata and Paka Khata.
Answer:
1. Kacha Khata: The accounts which are closed at the end of the year in order to find out the result of the business is known as Kacha Khata. The accounts pertaining to the purchase and sale of goods and accounts pertaining to incomes and expenses, in a business are known as Kacha Khata. Kacha Khata are closed at the end of the year and transferred to Kharid-Vakra Khate or Vatav Khate. Result of the business can be known from Kacha Khata. Havala Nondh is written to close Kacha Khata.
Illustrations: Shri Vakara Khatu, Shri Pagar Khatu, Shri Vyaj Khatu, Shri Dalali Malel (Received) Khatu, etc.

2. Paka Khata: The accounts which are not closed at the end of the accounting year but the balances are carried forward to the next accounting year in the new Khatavahi (Ledger), are called Paka Khatas. The personal accounts of individuals and assets accounts are included in the Paka Khata. Balances of Paka Khata are shown in the Balance Sheet (Sarvaiya). The position (Financial) of the business can be known from Paka Khata. Paka Khatas are not closed. Hence, no Havala Nondh is written for them.

Illustrations: Shri Imarat (Building) Khatu, Shri Sadhan Saranjam (Furniture) Khatu, Shri Anandnu Khatu, etc.

Question 4.
Answer following questions as asked :
1. Write short note on: Sama Daskatni Khatavahi
Answer:
Generally, the money lenders and bankers in money lending business maintain such type of Khatavahi. In this Khatavahi, the ledger account of each customer who borrowed money is opened. In this account, the amount lent, Miti (date), day, rate of interest, details of the instalments to be paid, penalty on late payment of instalment, etc. and assets and documents kept as mortgaged or taran are recorded. As a proof of the amount lent, a revenue stamp is affixed and on the same the signature of the borrower is obtained. Since it bears the signature of the person who has borrowed money, it is known as Sama Daskatni Khatavahi.

2. Explain, how the transactions of goods return are recorded in Deshi Nama System.
Answer:
In Deshi Nama, generally separate subsidiary book to record the goods return transactions is not maintained by traders but accounting effects of goods return transactions are passed in the Udhar Nondh and in the Jama Nondh. Only for the purchase return or for the sales return transactions when cash is received or cash is paid then it is entered in the Rojmel or Bethomel.

Credit sales return and Credit purchase return transactions are recorded as follow:
1. Credit sales return transactions:

• When some of the goods sold are returned before the sales has been recorded, then the amount of return transaction would be deducted from the bill and net sales amount will be entered in the Udhar Nondh.
• If the goods sold are returned after the credit sales has been recorded in the Udhar Nondh but before drawing Tarija, then the amount of return transaction would be deducted from credit sales and only net amount is entered in the Udhar Nondh.
• If the goods sold are returned after drawing Tarija, the sales return will be treated as a credit purchase and will be recorded in the Jama Nondh.

2. Credit purchase return transactions:

• When some of the goods purchased are returned before the purchase has been recorded, then the amount of return transaction would be deducted from the bill and net purchase amount will be entered in the Jama Nondh.
• If the goods purchased are returned after the credit purchase has been recorded in the Jama Nondh but before drawing Tarija, then the amount of return transaction would be deducted from credit purchase and only net amount is entered in the Jama Nondh.
• If the goods purchased are returned after drawing Tarija, the purchase return will be treated as a credit sales and will be recorded in the Udhar Nondh.

3. Write detailed notes on Havalamel.
Answer:
Entries are to be passed to give the accounting effects of Havala and to close Kacha Khata and transferred to some other accounts (e.g., Kharid-Vakra Khate). The Mel prepared with this objective is called Havalamel. Many businessmen prepare the Havalamel on the last page of the Rojmel or Bethomel. Havalamel is also known as Achadmel, Mand-Chhod no Mel or Jama-Kharchi Mel.

In the Havalamel, the Kacha Khata are closed and accounting effects of adjustments like closing stock, outstanding expenses, prepaid expenses, outstanding income, pre-received income, depreciation on assets, bad debts, interest on capital, rectification of errors, etc. are given like the Rojmel. While recording the entries of the above effects in the Havalamel, the account which is to be credited is written on the Jama side of Havalamel and the account to be debited is written on the Udhar side of the Havalamel.

On the basis of this, the posting is to be done to the respective accounts. Lastly, the profit or loss (found out from the Kharid-Vakra Khata) are credited or debited to the Bhandol Khate. The total of both the sides of the Havalamel is always equal.

4. How the Sarvaiyu is prepared in Deshi Nama?
Answer:
After making all the Havala, the Paka Khata or the accounts of individuals and assets and the closing cash balance (Shree Pur ant Baki) are shown in a Jama-Udhar statement which reveals the financial position of the firm. It is known as Sarvaiyun. The format of a Sarvaiyun is like a Utaro in which first four folds are for the Jama side and the last four folds are for the Udhar side.

In the Jama side, the Jama Baki of Paka Khata (Baki Deva) are recorded and on the udhar side, the Udhar Baki (Baki Lena) are recorded. In both the sides the first fold shows the amount. In the rest three folds, the name of the khata and L.E are written. The Jama side is firstly written with the balance of Bhandol Khata. This way the bakis are recorded on both the sides and their totals are written on the respective sides. Thenafter, the amount of ‘Shri Purant Baki’ is written on the Udhar side. Afterwards the total of the Jama and Udhar sides should be equal.

5. How will you record the following items in Havalamel?
(i) Akharmal stock ₹ 15,000
(ii) Vyaj Malvanu Baki ₹ 3,500
(iii) Agauthi Chukvel Vimo ₹ 700
H.M.P. No
Havalamel of…

Question 5.
Answer following questions as asked :

1. State characteristics of Deshi Nama.
Answer:
From the viewpoint of principles of accounting, Deshi Nama System is similar to the Double Entry System of book-keeping. Deshi Nama System possesses certain special characteristics due to which it is known as a separate accounting system. It is also known as Vahi-Khata Paddhati.
1. Books of accounts: The books of accounts of Deshi Nama are vertical with plain white papers, tied with a string in the center and bound with red cloth covers of cloth.

2. Vikram Samvat: Deshi Nama is generally written according to Vikram Samvat from Kartak Mas to Aso Mas.

3. Sides: In the Deshi Nama books like Rojmel or Bethomel and Khatavahi, the right-hand side is the debit side and the left-hand side is the credit side.

4. Use of the word ‘Shree’ or ‘Shri: In Deshi Nama, ‘Shree’ or ‘Shri’ is written before every account.
5. Amount: In Rojmel and Khatavahi, the amount is written first and then the details are recorded at the side of it.
6. Olayo or Holayo: While writing the amount ‘J’ sign is mentioned between rupees and paise which is known as ‘Holayo’ or ‘Olayo’.

7. Sal (folds): The pages in each of the books of accounts are with sal (folds). Rojmel, Bethomel and Khatavahi have pages with eight folds. But pages in Subsidiary Books have six-folds. However, now pages without folds and with columns drawn are being used.

8. Specific word: In Deshi Nama System, capital is known as Bhandol, drawings is known as Ghar-Kharch, furniture is known as Sadhan- Saranjam, sales is known as Vakra, opening cash balance is known as Purant Janse and closing cash balance is known as Purant Baki.

9. Particular in the ledger: In Deshi Nama System, the amount of the transaction, Rojmel page number and date (Tithi) is written in the ledger accounts.

10. Posting: The posting from Rojmel or Bethomel is on the same side of the ledger.
11. Language: Deshi Nama is written in the regional language.
12. Ink: Generally, Deshi Nama is written in black ink. However, blue ink is also used nowadays.

2. State types of Khatavahi as per Deshi Nama System and explain each of them.
Answer:
The book of account, in which separate account relating to the transactions of assets, goods, income and expenditure are opened, is known as Khatavahi. It is one of the main book of accounts.
Khatavahis are of the following types:
1. Saadi Khatavahi,
2. Bethi Khatavahi or Tham Khatavahi and
3. Sama Daskatni Khatavahi.
1. Saadi Khatavahi: In the Khatavahi where in all the accounts or Khatas of business are maintained is known as Saadi Khatavahi. From the accounting point of view this book is of great importance. Because from this Khatavahi all the information relating to persons, goods, assets, incomes and expense can be obtained at the end of every year. Utaro (Trial balance) and Varshik Hisabo (Annual accounts) can be prepared.

2. Bethi Khatavahi or Tham Khatavahi: Many businessmen show the entire transaction in the account while doing the posting due to which receivables-payables can be known quickly. Such an account is known as Betha Khata and such a Khatavahi is known as Bethi Khatavahi or Tham Khatavahi.

Generally, when the Udhar Nondh and Jama Nondh are not prepared in the business, then both Khatavahi is maintained in that business. A rough entry regarding credit sales and credit purchase is made in this. When the amount is received for the credit sales of the amount is paid in respect to credit purchase them the concerned account is closed in the Bethi Khatavahi and the entry is made in the Rojmel. This Khatavahi is not useful for preparing annual accounts. There is no special use of this Khatavahi.

3. Sama Daskatni Khatavahi: Generally, the money lenders and bankers in money lending business maintain such type of Khatavahi. In this Khatavahi, the ledger account of each customer who borrowed money is opened. In this account, the amount lent, Miti (date), day, rate of interest, details of the instalments to be paid, penalty on late payment of instalment, etc. and assets and documents kept as mortgaged or taran are recorded. As a proof of the amount lent, a revenue stamp is affixed and on the same the signature of the borrower is obtained. Since it bears the signature of the person who has borrowed money, it is known as Sama Daskatni Khatavahi.

In Deshi Nama, generally separate subsidiary book to record the goods return transactions is not maintained by traders but accounting effects of goods return transactions are passed in the Udhar Nondh and in the Jama Nondh. Only for the purchase return or for the sales return transactions when cash is received or cash is paid then it is entered in the Rojmel or Bethomel.

Entries are to be passed to give the accounting effects of Havala and to close Kacha Khata and transferred to some other accounts (e.g., Kharid-Vakra Khate). The Mel prepared with this objective is called Havalamel. Many businessmen prepare the Havalamel on the last page of the Rojmel or Bethomel. Havalamel is also known as Academy, Mand-Chhod no Mel or Jama-Kharchi Mel.

In the Havalamel, the Kacha Khata are closed and accounting effects of adjustments like closing stock, outstanding expenses, prepaid expenses, outstanding income, pre-received income, depreciation on assets, bad debts, interest on capital, rectification of errors, etc. are given like the Rojmel. While recording the entries of the above effects in the Havalamel, the account which is to be credited is written on the Jama side of Havalamel and the account to be debited is written on the Udhar side of the Havalamel.

On the basis of this, the posting is to be done to the respective accounts. Lastly, the profit or loss (found out from the Kharid-Vakra Khata) are credited or debited to the Bhandol Khate. The total of both the sides of the Havalamel is always equal.

3. Explain different Peta Nondh kept under Deshi Nama System.
Answer:
The following Peta Nondh are kept under Deshi Nama System:

• Jama Nondh (Kharid Nondh)
• Udhar Nondh (Vechan Nondh or Vakra Nondh)
• Daginamel (Janasvahi or Stock Register)
• Aankadavahi (Sudhavahi or Kachi Khatavahi)
• Ugharani Nondh (Collection Book)
• Jangad Nondh
• Karar Nondh (Contract Book)
• Vyajvahi
• Hundlvahi
• Kabalavahi
• Bank Register (Bankvahi)

Explanation:

• Jama Nondh (Kharid Nondh): In which the transactions of credit purchases of goods are recorded.
• Udhar Nondh (Vechan Nondh or Vakra Nondh): In which the transactions of credit sales of goods are recorded.
• Daginamel (Janasvahi or Stock Register): In which the transactions of incoming and outgoing of goods are recorded.
• Aankadavahi (Sudhavahi or Kachi Khatavahi): Aankadavahi is a Kachi Khatavahi.
• Ugharani Nondh (Collection Book): Ugharani Nondh is prepared for the purpose of collection of amount from the debtors.
• Jangad Nondh: In Jangad Nondh, the Jangad sale transactions of the business are recorded.
• Karar Nondh (Contract Book): Many a time, many contracts are entered into regarding purchase, sale or any other matter in a business. For maintaining a record of such contracts, Karar Nondh is prepared.
• Vyajvahi: Generally, the shroffs and money lenders maintain such a book.
• Hundivahi: When there are numerous bills transactions by the businessmen, they maintain a separate book called ‘Hundivahi’ to record such information.
• Kabalavahi: The book, which is maintained by the businessmen in ‘Forward Trading’ to record the details of their forward transactions is known as ‘Kabalavahi’.
• Bank Register (Bankvahi): In which the transactions with the bank are recorded.

4. What is Utaro? How is it prepared?
Answer:
In Double Entry System, the trial balance is prepared before preparing the final accounts to know any arithmetic error is there or not. Similarly, Utaro is prepared in Deshi Nama. Utaro is prepared on the basis of baki of Paka Khata and the total of the debit and credit sides of Kacha Khata.

Generally, Utaro is prepared on the last page of the Khatavahi. It has two sides, the Udhar and the Jama. In both the sides, the first column is meant for amount and the remaining columns are meant for details of the account. In the Utaro, the credit balance (Baki Deva) of Paka Khata are recorded on Jama side and debit balance (Baki Lena) of Paka Khata are recorded on Udhar side.

Without finding out the balance of Kacha Khata, the difference of the total of the debit and credit sides of Kacha Khata are recorded in the Utaro. If the total of the credit side is more then it is a credit balance and is recorded on the Jama side on the utaro and if the total of the debit side is more, then it is a debit balance and is recorded on the Udhar side of the Utaro.

This way the balances of Khata and the difference of amounts are shown in the Utaro and then the closing balance as per Rojmel or Bethomel is recorded on the Udhar side or on the Jama side of the utaro. If the total of the udhar side including the cash balance is equal to the total of the Jama side, then it is said that the utaro has tallied.

5. Explain in brief the methods of calculating profit-loss under Deshi Nama System.
Answer:
There are two methods of finding out the profit or loss in Deshi Nama System:
1. Kharid- Vakra Khata system and
2. Vatav Khata system.
1. Kharid-Vakra Khata system: In this method, traders keep a combined Kharid-Vakra Khatu in which purchases (Kharid) are written on the Udhar side and sales (Vakra) are recorded on the Jama side of the account. Firstly, the trader transfer the opening stock of goods of Kharid-Vakra Khate. Then, Havala for closing stock, incomes- expenses, bad debts, depreciation, rectification of errors are given and after that all Kacha Khata are transferred to Kharid-Vakra Khate and closed. Their posting is done in the Kharid-Vakra Khate.

After totalling both the sides of Kharid-Vakra Khatu, the difference is found out. If the total of the Jama side is more, then it is profit and if the total of the Udhar side is more, then it is loss. The Havala for transferring the profit or loss to the Bhandol Khate is made in the Havalamel and by posting this nondh in the Kharid-Vakra Khate, the Kharid-Vakra khata is closed.

2. Vatav Khata System: Generally, big traders or traders dealing in more than one commodity, prepare a Vatav Khatu to find out the profit or loss.

Following two accounts are to be prepared to ascertain the profit or loss under this method:
(i) Kharid-Vakra Khatu: In this, the Havala for stock, as well as Havalas to close the accounts relating to the expenses on purchases and to close the accounts relating to the goods are recorded. Thenafter, the result of the Kharid-Vakra Khata is transferred to the Vatav Khate. It means, the profit or loss of Kharid-Vakra Khata is transferred to Vatav Khate.

(ii) Vatav-Khatu: Then after, the havalas of incomes-expenses, bad debts, rectification of errors, depreciation and Kacha Khata are closed by transferring them to Vatav Khata. The difference of this account, indicates the profit or loss of the business, which is transferred to Bhandol Khate and Vatav Khatu will be closed. If profit is there, Vatav Khatu will be debited and Bhandol Khatu will be credited, and if loss is there, Vatav Khatu will be credited and Bhandol Khatu will be debited.