Help Center › Accounting & Reports › Accounting basics — ledgers, journals & day book
Accounting basics — ledgers, journals & day book
You don't need to ‘do accounting’ — MGH Books does it as you bill and buy. This explains what's happening behind the scenes, in plain words, so you can trust your numbers.
Read this first
- ▸ Every invoice and bill posts the correct double-entry behind the scenes.
- ▸ A ledger is just the running history of one account, customer or supplier.
- ▸ The Day Book is a chronological list of everything that happened — handy to review a day.
Being straight with you
- • Automatic accounting works on every plan. Manual journal entries and the full general ledger are Samridhi and above — most owners never need them, but your CA might.
Step by step
- 1
Open a ledger
Accounting → LedgersPick any account or party to see every entry and the running balance.
- 2
Review the Day Book
See everything recorded on a given date — a quick way to spot a missed or duplicate entry.
- 3
Post a journal (advanced)
For adjustments your CA asks for (provisions, prepaid rent), post a journal entry with a note.
You don't ‘do accounting’ — it happens as you work
Here's the reassuring truth: you never have to post an accounting entry. Every invoice, bill and payment you record creates the correct double-entry behind the scenes. This page just explains what's happening, so you can trust your numbers.
Ledgers, in plain English
A ledger is just the running history of one account, customer or supplier — every entry and the balance. Open a customer's ledger to see every bill and payment and the exact outstanding; open an expense ledger to see everything spent under that head.
The Day Book: a daily diary of everything
The Day Book lists, in date order, everything recorded on a given day — sales, purchases, payments, journals. It's the fastest way to review a day or spot a missed or duplicated entry.
Journals (when your CA asks)
Most owners never touch these. But for adjustments — depreciation, provisions, prepaid rent — your CA may post a journal entry: a manual entry with a note and full audit trail. Available from the Samridhi plan.
The one habit worth keeping
Reconcile your bank monthly. It's the single best habit for trusting your books — it catches duplicates, missing entries and forgotten charges before they distort your reports, and it makes year-end painless.
Troubleshooting
A balance looks wrong in a ledger
Fix: Use the Day Book to find the date it went off, then click the entry to check or correct it.
My books don't match my GST
Fix: They share one data set, so they should agree — a draft invoice or unrecorded credit note is the usual cause.
I can't find the journals option
Fix: Manual journals are on the Samridhi plan and above; most owners never need them.
Words you’ll see (in plain English)
- Double-entry
- Every transaction touches two accounts so the books always balance — handled for you.
- Ledger
- The running history and balance of one account, customer or supplier.
- Day Book
- A date-ordered list of everything recorded on a given day.
- Journal entry
- A manual adjustment (e.g. depreciation) your CA may post.
- Reconcile
- Confirming your books agree with your bank statement.
Ready to try it?In the app, open the More menu → Accounting.
Open Accounting