Professional Documents
Culture Documents
1.Find the nature of the following entries (Please put tick mark in the appropriate
column)
2. Prepare Trial Balance for the following balances taken from the books of MM
Traders:
Balances Amount (Rs.)
Capital 40000
Creditors 13000
Salaries 7200
Bills Receivable 15800
Bills Payable 8700
Debtors 28000
Sales 144000
Insurance 1200
Miscellaneous Expenses 600
Land and Buildings 23000
Discount paid 900
Commission received 800
Sales returns 3400
Purchase returns 2400
Carriage inwards 1400
Purchases 97500
Stock Opening 29900
3. Prepare the trial balance for the following balances taken from the books of
MM Agency.
4. Prepare Trial Balance for the following balances taken from the books MM
General Merchants:
(c)List the ledger accounts to be opened for the above said transactions.
(c)List out the ledger accounts to be opened for the above said transactions.
3(b) Write the above transactions in the form of accounts to be debited and
credited.
3(c) List out the ledger accounts to be opened for the above said transactions.
ACCOUNTING VOUCHERS
Procedure:
1. If the tally package was present in the desk top window double click the icon to
open it.
2. In company information select create company-> to create a new company.
3. Creation of Ledger Accounts:
In Gate way Tally select Account information
Select Ledger – Select single ledger create
Then type all the ledger accounts required based on the transactions.
Note:1. While entering the transaction if any new ledger to be created use Alt
C
2. Save every entry by control A.
PART A
PART B
51. Discuss the different concepts and conventions of Accounting.
52. Describe the features of TALLY Package.
53. Elucidate the needs of Accounting for Business Organizations.
54. How do you classify the business organizations based on its transactions and
TALLY
PART A
Accounting Definition:
Accounting is the art of recording, classifying and summarizing the business transactions
in a significant manner.
Accounting Cycle:
The accounting cycle is a complete sequence of accounting procedures, which are
repeated in the same order during accounting period.
Service Organization:
An organization providing services is called as service organization.
Trading organization:
An organization involved in the process of buying and selling is called as trading
organization.
Manufacturing Organization:
An organization in the process of transforming raw materials into finished goods for
consumers, or for further processing by others is called manufacturing organization.
Concepts in Accounting;
Entity concept
Book Keeping:
Art of recording in a systematic manner in the books of accounts.
Real Account:
Real Account refers the visible and real items. E.g. cash, bank etc
Personal Account:
Personal Account refers the person with whom the company has dealings. E.g. customers
and suppliers.
Nominal Account:
It refers the expenses and income accounts. E.g. salaries , rent received
Journal:
A journal may be defined as the book of original or prime entry containing a record of
transactions from which the posting is done to the ledger.
Voucher:
A voucher is a document containing the details of financial transactions. E.g., Sales
invoice, purchase invoice, pay slip etc.
Trial Balance:
Trial balance can be defined as a list of balances standing on the ledger accounts and cash
book of a concern.
Balance sheet:
A statement which sets out the Assets and Liabilities of a business firm and which serves
to ascertain the financial position of the same on any particular date.
Assets:
Assets represent everything, which a business owns and has money value.
Liabilities:
It represents the responsibility of the business to repay in terms of Rupees.
Classification of Assets:
Fixed Assets
Current Assets
Tangible Assets
Fictitious Assets
Classification of Liabilities:
Long term liabilities
Current liabilities
Contingent liabilities.
Deleting a Company:
Follow the same path as that used for Alter company to display company alteration
screen. Here use Alt + D key and Tally displays a message ‘Delete’ Yes or No. By
pressing yes or enter key . Tally displays another message ‘Are you sure?’ Yes or No. By
pressing yes company will be deleted.
Groups:
Collection of ledgers based on similar nature of ledgers are known as groups.
Primary Group:
Primary Groups are the main groups which will be useful at the time of reporting.
Sub-Groups:
Sub groups are the secondary groups, which is based on the primary Group.
Primary Groups:
Capital Accounts
Current Assets
Current Liabilities
Fixed Assets
Loans and liabilities etc.
Sub Groups:
Cash in hand
Cash at Bank
Sundry Debtors
Provisions etc.,
Ledger:
Ledger is an accounting head which is used to enter the transaction and identify the same.
Contra Entry:
Contra entry is a transaction indicating transfer of funds from cash account to bank
account / bank account to cash account / one bank account to another bank account.
Day Book:
The day book is a list of all transactions for a particular day.
PART B
Nature:
Service organizations provide their services at the point of consumption by the
customer . Thus, such organizations could be severely hit on price if there is
demand dip at the time for production.
Services are perishable, So the pressure on the service organization to provide
services is more than that on a manufacturing organization or a trading
organization.
Customer interaction is greater in service organizations than in manufacturing
or trading organizations.
In service organization, services are usually provided by people, not
machines. So, service organizations are more labour intensive than
manufacturing organizations.
Customer goodwill is an intangible asset for service organizations, which can
be destroyed quickly.
CUSTOMER
Services Payment of
bills
Service Organization
Trading Organization:
Collections
Customer
Demand Trading organization
Manufacturing Organization:
The process of transforming raw materials into finished goods for consumers, or for
further processing of others in the channel is called Manufacturing.
Inventory Planning
Demand
Working capital
management
A leading accounting package: The first version of Tally was released in 1988 and
through continuous development, is now recognized as one of the leading accounting
packages across the globe, with over quarter million customers. Tally’s market share is
more than 90%
Flexible and easy to use: Tally is very flexible. It minimize the human thought process,
which means that Tally can adapt to any business need, rather than the user trying to
change the way the business is run to adopt to the package.
Versatility: Tally is suitable for a range of organizations from small grocery stores to
large corporations with international locations and operations.
Multi-Platform availability: Tally is available on Windows 95, 98, ME, 2000 and NT.
It runs on a single PC or a network , supports access via any combination of platforms.
Simple and rapid installation: Tally has a simple, menu-driven installation procedure.
The user can install the program files on any drive, if the hard disk has partitions.
Internal back up/restore: Tally has in built, user friendly back up and restores option.
Tally helps the user to take back ups of one or more companies or all companies in a
single directory in the local hard disk or in any external media.
Tally Audit: The Tally audit feature provides the user with administrator rights, a
capability to check the correctness of the entries made by the authorized users and alter
these entries, if necessary. Once the entries are audited, Tally displays the altered entries,
if any, along with the name of the user who has altered the entry and the date and time of
the alteration.
Multi-directory for company management: The user can create multiple directories
where he can store data. The data stored in these directories can be accessed directly in
Tally by specifying the path
F2 - To change Date
Control A - To save
Control Q - Exit
Alt F2 - To change period
F4 - Contra
F6 - Receipts
F8 - Sales
F9 - Purchase
F 11 - To set features
F 12 - To set configuration
Esc - To go back to the previous screen
F1 - Select company
Alt C - To create new ledgers, settings etc.
Alt F2 - To shut the company