Mahajani System of Accounting: It is thousands of years old system in India. The old businessmen keep their accounts in this system. It is one of the oldest systems of the world. The accounts are kept in large sized folded books, bound in red colour cloth.
Its main characteristics are:
1. It is a complete and scientific method.
2. The principles of Double Entry system are followed in this system.
3. Bahis are used to keep accounts. They are large sized folded books, bound in thin red colour cloth, having a strong string at one end.
4. Lines are not sketched as in registers but the leaves of Bahis are folded to divide the pages.
5. Mostly, the entries are made in black ink.
6. Accounts can be written in Hindi, and other Indian languages as Gujarati, Marathi, Sindhi, Urdu, Gurumukhi, etc.
7. Both the Hindi Tithi’ and the English ‘dates’ are used.
8. Amount is written in the ‘Hindustani style without making columns for rupees, and paise.
9. On the left hand side ‘Credit’ and on the right hand side ‘Debit’ are written.
Types of Bahis used
10.Closed Bahi or Rojnamcha.
11.Cash Bahis
1. Credit Nakal Bahi
2. Purchase Return Nakal Bahi
3. Debit Nakal Bahi
4. Sales Return Nakal Bahi
5. Petty Nakal Bahi
6. Other subsidiary Bahis
