Here are the key steps involved in payroll calculations: 1. Calculate basic salary as per employment terms 2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules 3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay 4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules 5. Calculate other benefits like leave encashment, bonuses, incentives if any 6. Generate payslip showing calculations of gross pay, deductions and net pay 7. Process payment to employees and file statutory returns The payroll software automates these calculations to ensure accuracy as per rules. It is important to

1. ACCOUNT EXECUTIVE
(PAYROLL ACCOUNTING)

2. UNIT: 01
INTRODUCTION TO ACCOUNTING
At the end of this lesson,
students should be able to
demonstrate appropriate
knowledge, and show an
understanding of the following:
Accounting Conventions
Classification of Accounts
System of Accounting
Rules of Double Entry Accounting System
Definition of Accounting
Objectives & Scope
Accounting Process
Accounting Concepts

3. INTRODUCTION & GETTING FAMILIAR
Dear participants, welcome to the 30 days training program for
Accounts executive. In coming 30 days we will be discussing
about various aspects of accounting with a key focus on accounts
payable and receivable. So after a short introduction of training
program and getting familiar with each-other we will cover
below topics:
Introduction To Accounting,
Basic accounting concepts; and
techniques for recording transactions.

4. Accounting is a business language. We can use this
language to communicate financial transactions and their
results. Accounting is a comprehensive system to collect,
analyze, and communicate financial information.
Or,
“the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions
and events which in part at least of a financial character
and interpreting the results thereof.”

5. OBJECTIVES AND SCOPE OF ACCOUNTING
To keep systematic records: Accounting is done to keep systematic record of
financial transactions.
To ascertain profitability: With the help of accounting, we can evaluate the
profits and losses incurred during a specific accounting period.
To ascertain the financial position of the business: A balance sheet or a
statement of affairs indicates the financial position of a company as on a
particular date.
To assist in decision-making: To take decisions for the future, one requires
accurate financial statements.
To fulfil compliance of Law: Business entities such as companies, trusts, and
societies are being run and governed according to different legislative acts.

6. ACCOUNTING PROCESS
Steps followed in accounting process
 Collecting and Analyzing
Accounting Documents
 Posting in Journal
 Posting in Ledger Accounts
 Preparation of Trial Balance
 Posting of Adjustment Entries
 Adjusted Trial Balance
 Preparation of Financial Statements
 Post-Closing Entries
 Post-Closing Trial Balance

7. ACCOUNTING CONCEPTS
The most important concepts of accounting are as follows:
• Business Entity Concept
• Money Measurement Concept
• Going Concern Concept
• Cost Concept
• Dual Aspects Concept
• Accounting Period Concept
• Matching Concept
• Accrual Concept
• Objective Evidence Concept
The first two accounting
concepts, namely, Business
Entity Concept and Money
Measurement Concept are
the fundamental concepts of
accounting.

8. ACCOUNTING CONCEPTS
Business Entity Concept: According to this concept, the business and the
owner of the business are two different entities.
Money Measurement Concept : According to this concept, “we can book
only those transactions in our accounting record which can be measured
in monetary terms.
Going Concern Concept: Accounting is based on the assumption that a
business unit is a going concern.

9. ACCOUNTING CONCEPTS
Cost Concept: As per this concept we book the value of
assets on the cost basis, not on the net realizable value or
market value.
Dual Aspect Concept: Debit should be always equal to credit.

10. ACCOUNTING CONCEPTS
Accounting Period Concept: To determine the profit or loss of a firm, and
to ascertain its financial position, profit & loss accounts and balance sheets
are prepared at regular intervals of time.
Matching Concept: Matching concept is based on the accounting period
concept.

11. ACCOUNTING CONCEPTS
Accrual Concept: The revenue generated in the accounting
period is considered and the expenditure related to the
accounting period is also considered.
Objective Evidence Concept: Every financial entry should be
supported by some objective evidence.

12. ACCOUNTING CONVENTIONS
We will discuss the following accounting conventions in
this section:
CONVENTION OF CONSISTENCY
CONVENTION OF DISCLOSURE
CONVENTION OF MATERIALITY
CONSERVATION OF PRUDENCE

13. Convention of Materiality
If the disclosure or non-disclosure
of an information might influence
the decision of the users of
financial statements, then that
information should be disclosed.
Convention of Disclosure
The Companies Act, 1956, prescribed
a format in which financial statements
must be prepared.
Conservation or Prudence
For future events, profits are not
anticipated, but provisions for
losses are provided as a policy of
conservatism.
Convention of Consistency
To compare the results of different years,
it is necessary that accounting rules,
principles, conventions and accounting
concepts for similar transactions are
followed consistently and continuously

14. CLASSIFICATION OF ACCOUNTS
Know the classification of accounts
Treatment in double entry system of accounts. Broadly, the accounts are
classified into three categories:
PERSONAL ACCOUNTS
REAL ACCOUNTS
Tangible accounts
Intangible accounts
NOMINAL ACCOUNTS

15. Personal Accounts: classified into three categories:
Natural Personal Account: An account related to any individual like
David, George, Ram, or Shyam is called as a Natural Personal
Account.
Artificial Personal Account: An account related to any artificial person
like M/s ABC Ltd, is called as an Artificial Personal Account.
Representative Personal Account: Representative personal account
represents a group of account. E.g. salary payable accountand
drawing account, etc.

16. REAL ACCOUNTS:
Every Business has some assets and every asset has an account. Thus, asset
account is called a real account. There are two type of assets:
Tangible assets are touchable assets such as plant, machinery, cash, etc.
Intangible assets are non-touchable assets such as goodwill, patent, etc.
Accounting treatment for both type of assets is same.
NOMINAL ACCOUNTS
This account does not represent any tangible asset, it is called nominal or
fictitious account. All kinds of expense account or income accounts etc.
come under this category.

17. ACCOUNTING SYSTEMS
• Single Entry System: Single entry system is an incomplete
system of accounting, followed by small businessmen,
where the number of transactions is very less.
• Double Entry System: Double entry system of accounts is a
scientific system of accounts followed all over the world
without any dispute.
• Assets = Liabilities
• If we give something, we also get something in return and
vice versa.

18. GOLDEN RULE
Classification of Rules Effect
accounts
Receiver is Debit
Personal Accounts Giver is Credit Debit = credit
What Comes In Debit
Real Accounts What Goes Out Credit Debit = credit
Expenses are Debit
Nominal Accounts Incomes are Credit Debit = credit

19. UNIT: 02
FINANCIAL ACCOUNTING
At the end of this
lesson, students should
be able to demonstrate
appropriate knowledge,
and show an
understanding of the
following:
Rules of Journal
Posting in Ledger Accounts
Ruling of Accounts

20. RULES OF JOURNAL
“The process of recording a transaction in a journal is called journalizing
the transactions.” --Meigs and Meigs and Johnson
Journal is a book that is maintained on a daily basis
for recording all the financial entries of the day.
Passing the entries is called journal entry.
Journal entries are passed according to rules of debit
and credit of double entry system.

21. POSTING IN A LEDGER
Transferring journal entries into a ledger account
is called ‘posting’
The ledger helps us in summarizing journal
entries of same nature at single place. For
example, if we pass 100 times a journal entry for
sale, we can create a sales account only once and
post all the sales transaction in that ledger account
date-wise.

22. LEDGER FORMAT

24. IMPORTANT POINTS REGARDING LEDGER
• Each side of a journal entry is posted in the same side of the ledger. It means the debit entry of a
journal is posted in the debit side and vice-a-versa.
• Balance c/d refers to the balance carried down and balance b/d refers to the balance brought
down.
• After posting in ledger, balancing of ledger is done. In the column named
• The difference of both sides (in this case, it is Rs 5,000) is written in the last row of the credit side
as ‘balance c/d’. This balance is called the debit balance of account or vice-a-versa.
• All expenses and assets represent debit balance.
• All the income and liabilities represent credit balance including capital account.
• Debit balance of personal account represents ‘Amount Receivable’. This comes under the category
of assets. For example debtors.
• Credit balance of personal accounts signifies ‘Amount Payable’. This comes under liabilities side
and represents that we need to pay this amount which is credited due to goods, service, loan, or
advance received.

25. • Debit side of real account means stock in hand or any kind of assets. Credit
balance of Real account is not possible.
• Debit balance of nominal account means expenses of organization.
• Credit balance of nominal accounts means income earned.
• Debit balance of cash book means cash in hand.
• Debit side of Bank book means balance at bank.
• Credit balance of Bank book indicates ‘Bank Overdraft’.
• Debit and credit balances of nominal account (Expenses and income will be nil,
because these balances get transferred to trading, and profit & loss account to
arrive at profit and loss of the company.
• Balances of real and personal account appear in balance sheet of the company
and to be carried forward to next accounting years.

26. USES OF BOTH THE FORMATS
Format-1 is used for academic purpose.
Hence, this format is useful to learn the basics
and principles of accounting.
Format-2 is used by banking and financial
organization as well as well as by most of the
business organizations.

27. UNIT: 03
SUBSIDIARY BOOKS
At the end of this lesson,
students should be able to
demonstrate appropriate
knowledge, and show an
understanding of the
following:
Bills payable book
Bank reconciliation
Trial balance
Financial statements
Depreciation and its roles
Cash Book
Petty Cash Book, Purchase Book & Sale Book.
Purchase Return Book
Sale Return Book
Bills receivable book

28. CASH BOOK
Cash book is a record of all the transactions related
to cash. Examples include: expenses paid in cash,
revenue collected in cash, payments made to
creditors, payments received from debtors, cash
deposited in bank, withdrawn of cash for office use,
etc.

29. SINGLE COLUMN CASH BOOK
Cash book is just like a ledger account. There is no
need to open a separate cash account in the ledger.
The balance of cash book is directly posted to the trial
balance. Since cash account is a real account, ruling is
followed, i.e. what comes in – debit, and what goes
out – credit. All the received cash is posted in the
debit side and all payments and expenses are posted
in the credit side of the cash book.

30. DOUBLE COLUMN CASH BOOK
Here, we have an additional Discount column on each side of
the cash book. The debit side column of discount represents the
discount to debtors of the company and the credit side of
discount column means the discount received from our
suppliers or creditors while making payments.
The total of discount column of debit side of cash book is
posted in the ledger account of ‘Discount Allowed to
Customers’ account as ‘To Total As Per Cash Book’. Similarly,
credit column of cash book is posted in ledger account of
‘Discount Received’ as ‘By total of cash book’.

31. TRIPLE COLUMN CASH BOOK
When one more column of Bank is added in both sides
of the double column cash book to post all banking
transactions, it is called triple column cash book. All
banking transactions are routed through this cash book
and there is no need to open a separate bank account
in ledger.

32. PETTY CASH BOOK
In any organization, there may be many petty
transactions incurring for which payments have to be
done.
Therefore, cash is kept with an employee, who deals
with it and makes regular payments out of it. To make
it simple and secure, mostly a constant balance is kept
with that employee.

33. PURCHASE BOOK
Purchase book is prepared to record all the credit purchases
of an organization. Purchase book is not a purchase ledger.
The features of a sale book are same as a purchase book,
except for the fact that it records all the credit sales.
SALE BOOK

34. PURCHASE RETURN BOOK
Sometimes goods are to be retuned back
to the supplier, for various reasons. The
most common reason being defective
goods or poor quality goods. In this case,
a debit note is issued.

35. SALE RETURN BOOK
Sometimes customers return the
goods if they don’t meet the quality
standards promised. In such cases, a
credit note is issued to the customer.

36. BILLS RECEIVABLES BOOK
Bills are raised by creditors to debtors. The
debtors accept them and subsequently return them
to the creditors. Bills accepted by debtors are
called as ‘Bills Receivables’ in the books of
creditors, and ‘Bills Payable’ in the books of
debtors.

37. BILLS PAYABLE BOOK
Bills payable issues to the supplier of goods or services
for payment, and the record is maintained in this
book.
BANK RECONCILIATION
On a particular date, reconciliation of our bank
balance with the balance of bank passbook is called
bank reconciliation.

38. TRIAL BALANCE
Trial balance is a summary of all the debit and
credit balances of ledger accounts. The total of
debit side and credit side of trial balance
should be matched. Trial balance is prepared
on the last day of the accounting cycle.

39. FINANCIAL STATEMENTS
Financial statements are prepared to ascertain the
profit or loss of the business, and to know the
financial position of the company.
Trading, profit & Loss accounts ascertain the net
profit for an accounting period and balance sheet
reflects the position of the business.

40. DEPRECIATION
Depreciation reduces the value of assets on a residual basis. It also reduces the
profits of the current year.
Method of Depreciation
Depreciation can be calculated using any of the following methods, however the most popular
methods remain (a) Straight Line Method and (b) Written Down Value Method.
Straight Line Method
Written Down Value Method
Annuity Method
Insurance Policy Method
Machine Hour Rate Method
Depletion Method
Revaluation Method
Depreciation Fund Method

41. UNIT: 04
PAYROLL ACCOUNTING

42. At the end of this lesson, students should be able to demonstrate
appropriate knowledge, and show an understanding of the following:
Understanding salary slip and its components
What is payroll and how payroll calculations are done?
Statutory compliances in Indian payroll management system
Payroll accounting
How to do step by step payroll accounting in tally
Working with HR department
Obtaining information & record from HR
Initial/basic steps to create payroll
Rules and regulations governing pay roll
Filing of accounting records
Storage of accounts records

43. 4.1 UNDERSTANDING SALARY SLIP AND ITS COMPONENTS
• Every month, your finance department will send you a salary slip
once the salary gets paid out. For most people, the importance of
salary slip is only when they apply for a loan or a new credit card.
Otherwise, the confusing terms and figures seem like a puzzle you
don't want to solve.
• But here’s why you might want to understand your salary slip
better.
• Choose smartly from competing offers when you are looking to
switch jobs
• Optimize tax liability by making full use of the deductions available
• Understand what percentage of your salary is forced savings (EPF,
ESI etc.)

44. 4.1 UNDERSTANDING SALARY SLIP AND ITS COMPONENTS

45. 4.2 WHAT IS PAYROLL AND HOW PAYROLL CALCULATIONS ARE
DONE?
• Payroll processing consists of calculation of payments to
employees for their work in the company – whether it is based on
time or productivity, calculation of benefits, and statutory
deductions. Payroll needs to be processed by each company
periodically. It may be processed weekly, bimonthly, monthly or
daily (for daily wage workers).
• Payroll processing involves accurate payroll calculations, disbursal,
payslip generation, and managing payroll taxes and record keeping
compliance. All these activities cannot be rushed into and must be
performed using a payroll software to ensure that employees do
not get erroneous paychecks and all statutory compliances are
met.

46. 4.2 WHAT IS PAYROLL AND HOW PAYROLL CALCULATIONS ARE
DONE?
• HRA – House Rent Allowance Exemption is possible based on the defined criterion, if expenditure
on rent is actually incurred. HRA is taxable if residing in self-occupied house property.
• TRAVEL ALLOWANCE – Tax free upto 800/-pm as per current rules.
• LEAVE TRAVEL ALLOWANCE: Exemption available only in respect of two journeys performed in a
block of 4 calendar years.
• CHILDREN EDUCATION ALLOWANCE – Exempt up to Rs. 100 per month per child for a maximum of
2 children
• MEDICAL ALLOWANCE – Taxable (medical reimbursement is tax-free upto 15,000).
• INVESTMENTS: Investments in approved fixed deposit schemes, Equity oriented MF, PPF (Public
Provident Funds), life insurance premiums, Company Provident Fund etc.
• 12B: Declaration of income from previous employer, other income, and commissions can be made
on form 12B for proper TDS calculation for salaried employees.
• Considering Employee Benefits For Payroll Calculations
• The employees of the company get many payroll benefits in addition to their regular salary. Most of
the benefits that employees get impact tax calculations. Some such benefits are:
• FLEXI ALLOWANCE BASKET: The salary packages these days include a basket of flexible allowances
to minimize the tax outgo. For example the employees can choose medical reimbursements and
leave travel concession components that are exempt under limits prescribed by the Act.
• PERQUISITES: Perquisites are also the privileges given to employees by the employer over and
above the regular income of the employees.

47. 4.3 STATUTORY COMPLIANCES IN INDIAN PAYROLL
MANAGEMENT SYSTEM
• Statutory compliance, in HR, refers to the legal framework
within which organizations must operate, in the treatment of
their employees.
• Every country has several hundreds of federal and state labour
laws that companies need to align with. This list is forever being
added to.
• A lot of your company’s effort and money goes into ensuring
compliance to these laws which could deal with a range of
issues; from the payment of minimum wages to maternity
benefits or professional taxes.
• Therefore, dealing with statutory compliance requires for
companies to be well-versed with the various labor regulations
in their country of operation.

48. 4.4 PAYROLL ACCOUNTING
• Payroll Accounting is the method of accounting for payroll.
Payroll is the aggregate expenditure on wages and salaries
incurred by a business in an accounting period. It can also refer
to a listing of employees giving details of their pay.
• The analysis of payroll is shown below:
Payroll
Gross Pay Employer tax
Net pay Employee tax Deductions Employer tax
Payroll Accounting

49. • As an example of payroll accounting, if gross pay is 2,000,
employee tax is 500, and other deductions are 100, then the
net pay due do the employee is 1,400. The payroll accounting
journal entries would be as follows:
Account Debit Credit
Gross Wages 2,000
Employee tax
control 500
Other deductions
control 100
Net pay control 1,400
Total 2,000 2,000
Payroll Accounting – Gross pay

50. Journal entry for Salary: -
Let us take example: -
Basic + Dearness allowance=1200000
House rent allowance = 150000
Transport allowance = 75000
Other Allowance = 25000
ESI contribution (employer + employee) =45000(30000+15000)
PF contribution (employer + employee) = 100000(50000+50000)
TDS = 25000
Journal Entry will be: -
Salary A/C Dr 1450000(1200000+150000+75000+25000)
ESI contribution A/C Dr 45000
PF Contribution A/C Dr 100000
To Salary Payable A/C 1425000
To ESI contribution payable A/C 45000
To PF contribution payable A/C 100000
To TDS payable A/C 25000
(Being salary paid for the month of march)

51. Note:-
Debit: Salary is expense to the company, so as per nominal account rule (Salary A/C) “Debit all
expense or loss" (Expense Account)
Debit: ESI contribution is expense to the company, so as per nominal account rule (ESI contribution)
“Debit all expense or loss"(Expense Account)
Debit: PF Contiribution is expense to the company, so as per nominal account rule (PF Contribution
A/C)“Debit all expense or loss"(Expense Account)
Credit: Salary payable is liability to company, so as per personal account rule (Salary Payable A/C)
"Credit the giver account"(Current Liabilities)
Credit: ESI contribution payable is current liability and the same need to be paid to ESI department
with in due date, so as per personal account rule (ESI contribution payable A/C) "Credit the giver
account"(Current Liabilities)
Credit: PF contribution payable is current liability and the same need to be paid to PF department
with in due date, so as per personal account rule (PF contribution payable A/C) "Credit the giver
account"(Current Liabilities)
Credit: TDS payable is liability and the same need to be paid to income tax department, so as per
personal account rule (TDS payable A/C) "Credit the giver account"(Current Liabilities)

52. 4.5 HOW TO DO STEP BY STEP PAYROLL ACCOUNTING IN TALLY
(EXAMPLE ERP 9)
To start the company
Go to gateway of tally > Company info > Create company
fill the details of company and press YES
Press F11>Features >Accounting Features F1
Set maintain payroll to YES
Set more than one payroll cost category to YES allow you to
maintain more than one cost category

53. 4.5 HOW TO DO STEP BY STEP PAYROLL ACCOUNTING IN TALLY
(EXAMPLE ERP 9)

54. Go to gateway of Tally>F12>payroll configuration

55. Create group :
Employee cost under indirect Expenses:
Note the creation of this group helps in quickly ascertaining the total cost
incurred toward employees as salaries:
Got to gateway of tally > Accounts Info > group > create to view the group
creation.
Screen.
Ensure that the group creation screen display as shown.

56. Create attendance /production type:
Absent under primary
Go to gateway of tally > payroll info > attendance production type > create
name :absent
under : primary
attendance type : leave without pay
period type : days display automatically
Note: Tally display period type as days because attendance usually accounted for
on the basis of the lowest period.

58. Create pay head for house rent allowance :
Name : Conveyance allowance
Pay head type :earning for employees
Under : employee cost
Appears in payslip : yes
Name to appears in payslip : Conveyance
Use for gratuity : No
Calculation type : Flat rate
Calculation period : Month
Rounding method normal rounding
Limit : 1

60. Create pay head House rent Allowance
Name : House Rent Allowance
Pay head Type : earning for employee
Under : Employee Cost
Appears in Payslip: YES
Name to appear in payslip :HRA
Use of gratuity : No
Calculation Type : As computer Value
Calculation period : Month
Rounding method normal rounding
Limit : 1

61. Create Pay Head Variable Pay
Name : Variable Pay
Pay head Type : earning for employee
Under : Employee cost
Appears in Pay slip : YEs
Name to appear in Pay slip : incentive
use for Gratuity : No
Calculation Type : as under defined value

62. 4.6 WORKING WITH HR DEPARTMENT
The importance of a strong relationship between HR and Finance:
Most people see a fundamental difference between Human
Resources and Finance; after all they represent different
components of business. People (HR) vs. Money (Finance).
This assumption couldn’t be more wrong. While Finance views HR
as an unnecessary cost, HR thinks finance is out to squeeze every
penny they can find. Bottom line is both departments function as
gears powering a larger machine. Individually each department
provides services to the company, many of which overlap. When
HR and finance function cooperatively the company moves into a
new era of efficiency, production, customer satisfaction and most
important, profit.

63. 4.7 OBTEINING INFORMATION & RECORD FROM HR
What is Payroll and how it has been processed? Payroll is the
salary processing system.
Payroll is divided into two parts-Monthly and Annual
Monthly payroll includes the following :
• Basic salary
• Dearness Allowance
• HRA
• Conveyance/Petrol
• Medical
• Education
• Telephone
• Special allowance
• Other Perks
• Deductions

64. 4.8 INITIAL/BASIC STEPS TO CREATE PAYROLL
• An employee data base (i.e.) a Master List to created which
contains all the details of the employees like, Date of Joining,
Education, Work Experience, Personal details (DOB, Contact
info), Salary break up details
• Attendance/ Leave record details

65. 4.8 INITIAL/BASIC STEPS TO CREATE PAYROLL
• Other Related Inputs for Payroll
• The salary break up details of all the existing employees
• Employee Bank account No./PAN No.if any
• Attendance of all employees:: LOP details
• Salary Revision (w.e.f that particular month)
• New Recruits (To be calculated form the date of Joining)
• Full and final Settlements (If any are to be calculated separately
not with payroll)
• Additions-Arrears if anything to be paid, Reimbursements
• Deductions-
• Provident Fund, ESI, Professional Tax, Income Tax, LIC
• LOP, Loans/Advances, Other recoveries, Miscellaneous
• TDS

66. 4.9 RULES AND REGULATIONS GOVERNING PAY ROLL
• Indian Factories Act 1948
• Shops and Commercial Establishments Act 1961
• Beedi and Cigar Workers (Condition of
Employment) Act 1966.
• Plantation Labour Act 1951
• Motar Transport Workers Act 1961
• Building & Other Construction
Workers ( Regulation of Employment and Conditions of Service) Act 1996
• Inter-State-Migrant Workers (Regulation of Employment & Conditions of
Service) Act 1979
• Mines Act
• Contract Labour (A & R) Act
• EPF & MP Act
• ESI Act

67. FILING OF ACCOUNTING RECORDS
All accounting records must be filed in such a manner so that they
can be traced any time without wasting extra time. Before the
accounts records are filed’ following points must be kept in mind:-
All records and vouchers must be filed date wise.
Separate files must be kept for different types of vouchers, sales
invoices, receipts, purchase invoices etc.
Proper serial numbers should be given on all the vouchers.
All bank statements, party’s statements should be filed in separate
files.
Separate files must be maintained relating to different tax matters

68. STORAGE OF ACCOUNTS RECORDS
•All the accounts records must be kept in good bindings.
•Good quality of paper should be used for all vouchers, sales bills, delivery challans etc.
•Good quality of files must be used to keep all the vouchers, sales bills, purchase bills etc.
•Proper care should be taken to protect these records from rats and other insects.
•Filing of all records must be done in good manner.
•All the supporting documents must be properly attached with vouchers.
•In case of accounting data lying in computer, proper backup should be taken in floppies or
pen drives. Hard copy of all computer records must be taken.
•There should be a responsible person who can look after all records properly and he/she
should be responsible to keep the records in proper way.
•Proper and separate store room should be given to accounts department to keep their
records.