Guides

How to Keep a Digital Udhar Khata (Step-by-Step)

12 June 2026 · LenDen Team

Switching from a paper notebook to a digital udhar khata is easy once you understand the three basic ideas: parties, transactions, and balances. Here is exactly how to set it up and keep it tidy.

Step 1: Add your parties

A "party" is anyone you do len-den with — a customer who buys on udhaar, a distributor you pay, or an agent. Start by adding the people you deal with most.

For each party, add at least a name. A phone number is optional but useful for following up on udhaar later.

Step 2: Record every transaction the same day

Each entry is either:

  • Given — money or goods you gave on credit (the party now owes you), or
  • Received — money the party paid back.

The golden rule: enter it the same day. A digital khata is only as accurate as your habit of logging entries. Pick the party, type the amount, choose Given or Received, and save. It takes about two seconds.

Step 3: Read the balance correctly

After each entry, the app updates the party's balance automatically. A positive balance usually means the party still owes you; a settled party shows zero. You never have to add anything by hand.

If your app supports it, choose between Credit Mode (shopkeeper-friendly: "kitna baaki hai") and Accounting Mode (debit/credit) so the balance reads the way you think.

Step 4: Keep it clean

  • Enter transactions daily, not weekly.
  • Use clear party names (add a shop or area if two people share a name).
  • Add a short note for unusual entries (e.g. "advance for Diwali stock").
  • Review your top few balances once a week.

Step 5: Back up and review

A good digital khata backs up automatically to the cloud, so you don't need to copy anything manually. Once a week, glance at who owes the most and follow up.

Frequently asked: what if I make a wrong entry?

Just edit or delete it. Unlike a paper khata where you scratch out numbers, a digital khata lets you correct an entry and the balance recalculates instantly.

That's the whole system. Add parties, log Given/Received the same day, and let the app do the maths. Start your digital khata free and you'll be set up before your next customer walks in.

Ready to ditch the paper khata?

Start tracking udhaar and balances with LenDen — free to start.

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