A complete practice book

of
Tally Accounting Software
With Full Accounting Knowledge
Prepared for
DOT NEPAL EDUCATIONAL ACADEMY
Kathmandu, Nepal
2006
For Comment:
yoursown.p@gmail.com
This book is based on Tally eis 5.4, but it helps to operate recent versions.
Part I Tally Entry System:
How to open Tally?
Click on Start
Go to Programs
Go to Tally for win95
Click on Tally 5.4
Or there may be shortcut on the Desktop. If that appear on there, double click on Tally icon
Create Company
We have to create company to prepare the function on Tally. Creating company means we are
crating our separate file on Tally. Follow this process to Create New Company:
Start Tally; window displays Gateway of Tally then choose Create Company and press Enter. Then
window displays a form, fill the form as follows:
Name : Name of Company
Mailing Name : Automatically displayed
Address : Address of Company
Income Tax no : PAN NO (9 digit Stating from 3 or 5)
Currency Symbol : Rs.
Maintain : (Choose) Account Only; Account with Inventory; Inventory only*
Financial Year From : The starting date of Fiscal Year. (Date must be in AD)
Book beginning From : It will be same as financial year, if you start your company from the middle of
the financial year it will be different.
Tally Vault Password : Password to open the Tally Software; if need.
Use Security Control : if you choose Yes; Tally asks for User name & password to open.
Base Currency Information

Base Currency Symbol : Rs. (For Nepal)

Formal Name : Rupees (for Rs)
Number of Decimal Place : 2 (Digits after decimal) Show Amount in Million? Yes/No
Is Symbol Suffixed to Amount ? No Put Space between Amount & Symbol Yes
* If your company don't deals with Inventory Choose Accounts Only, if deals with both accounts &
inventory Choose Accounts with Inventory or for Store choose Inventory Only but Recent Version of
Tally remove this Inventory Only option.

Select Company
Start Tally When window displays Gateways of Tally> Company Info. Choose Select Company &
press Enter. Then choose your company from the list and press Enter. Your company will open. You
can see the Folder Number in bracket which is lies on Directory.
Menus on Tally
When you open your company, you will see the main menus named Gateway of Tally it displays the
10 menus on Screen they are:
Accounting Info
Inventory Info
Voucher Entry
Import Of Data
Balance Sheet
Profit & Loss A/c
Stock Summary
Ratio Analysis
Display
Multi-Account Printing
There are only 2 more menus on Tally 7.2. They are Import MastErs and InvenTory Vouchers. We
can open the menu by pressing Highlighted key of that menu. For example we can open the Account
info by pressing A.
Account Info:
Group: Group means the secondary Account head (Primary are Assets, Liabilities & Capital) where
the ledger is. Tally creates 34 Groups so we don't need to create the Groups.
Voucher Types: Tally creates 19 types of voucher (see Voucher Entry) so we don't need to create it.
Ledger
Ledger is the title of transaction. It is also a sub-group.
Creation
Account Info>Ledger>Create
We have to create ledger to prepare account in different accounting transactions. Cash and Profit &

Loss A/c are pre-created by Tally, because these ledgers take place in each and every company. To
create ledger follow this process:

Name : Name of Ledger

Alias : Tally (or blank)
Under : Group (Choose)
Inventory values are affected ? Yes (for Purchase/Sales) No (for other)
Opening Balance : If you have got last years closing balance (Purchase/ Sales/ Expenses ledger has
no opening balance)*
Mailing & Related Details
Give the Address Details of the ledger (Bank, Debtor/Creditor, Advance etc. ledgers only.)
*Asset has Dr. Balance and Capital/Liabilities have Cr. Balance, but in case of putting opening
balance sometimes Sundry Debtor (Assets) makes advance payment and they become our liabilities
so in this case the balance is Cr. Such like sometime we make advance payment to our supplier
(Current Liabilities) and the balance is Dr. in this case.
Tally can't recognize our Ledgers but it recognize them by Groups, is this Assets or
Capital/Liabilities? So be careful when choosing Groups otherwise you make blunder mistake and it
also affect on Reporting.
Display:
To View Created Ledger, Accounting Info>Ledger>Display
Then Choose the Ledger and Press Enter. (Multiple: Display>All Items)
Alter:
To Edit Created Ledger, Accounting Info>Ledger>Alter
Then Choose the Ledger to edit and Press Enter. (Multiple: Alter>All Items)
Exercise
Create the following ledgers
Ledger Accounting Head (Under)
1. Computer Fixed Assets
2. Telephone Expenses Indirect Expenses
3. Salary Indirect Expenses
4. Custom Duty Direct Expenses
5. Land & Building Fixed Assets
6. Baneshwor Department Store Sundry Debtors (Assumed our Customer)
7. Sales A/c (Income Generating Process) Sales Account
8. Purchase A/c Purchase Account
9. <Your Name> Capital Account (Assumed as owner)
10. Himalayan Bank Ltd Bank A/c (Where is your Deposit)
11. VAT A/c Current Liabilities (See VAT Statement)
12. Choudary Group Sundry Creditors (Assumed as Supplier)

13. Advance Income Tax Loans & Advances (Assets)

14. Paluwa Saving & Credit Coop. Ltd Loans (Liabilities) (As Loan Granter)
15. Electricity Expenses Indirect Exp. (Direct if used in Production)
16. Carriage Inwards -vl/bdf ef8f_ Direct Expenses
17. L/C No 001245 Sundry Creditors
18. TDS Current Liabilities
19. Interest on Deposit Indirect Income
20. Provision for Income Tax Provisions
21. Gausala Kirana Pasal Sundry Debtors
22. Newspaper & Magazine Indirect Expenses
23. Motorcycle Fixed Assets
24. Syakar Company Ltd. Current Liabilities
25. Directors C/A (Current A/c) Current Liabilities
Sundry Creditor is one, by whom we Purchase Goods. Remember the Term Goods in Accounting.
Goods mean our Regular Transaction Item. The Supplier other then Regular Transaction Item is lies
in Current Liabilities only.
Inventory Info:
You must create item to operate the inventory function on Tally. To create an item you have to specify
the Group where the item is & the measuring unit to measure the item. This menu helps you to
create them. E.g. for Fair & Lovely, it lies in Cosmetic and measured by Packet.
Where Item : fair &lovely
Group : cosmetic
Unit : Pkt.
Stock Groups
Stock Groups means the set of similar Items. It also can be defined as the group of same category
goods. We create Stock Groups to categorize the Stock Items.
Create
Gateway of Tally > Inventory info > Stock Group > Create
Name: Name of group
Under: Primary
Can Quantity of items be ADDED Yes (To add the Qty& Amount of all items lies in this Group.)
Display
To View Created Stock Group, Inventory Info>Stock Group>Display
Then Choose the Stock Group and Press Enter. (Multiple: Display>All Items)
Alter
To Edit Created Ledger, Accounting Info> Stock Group >Alter
Then Choose the Stock Group to edit and Press Enter. (Multiple: Alter>All Items. You can't delete it
so make it carefully.)

Units of Measure
We count everything in a specific unit of measure. Therefore we have to create units of measure to
count our stock items in a reasonable unit.
Create
Gateway of Tally > Inventory Info > Units of Measure > Create
Type : Simple (can choose Compound also.)
Name : Name of unit
Formal Name : Full Name
Decimal Place : 2/0 (0 for pcs, pair etc & 2 for Kg, Ltr etc.)
Display
To View Created Units, Inventory Info > Units of Measure > Display
Then Choose the Unit and Press Enter.
Alter
To Edit Created Unit, Accounting Info > Units of Measure > Alter
Then Choose the Unit to edit and Press Enter.
Stock Items
Gateway of tally > Inventory info>Stock Items > Create
Name : Name of Item
Under : Group
Units : Unit
Opening balance (if you have; put Quantity & Rate.)
Display
To View Created Items, Inventory Info > Stock Items > Display.
Then Choose the Stock Item and Press Enter. (Multiple: Display>All Items)
Alter
To Edit Created Unit, Inventory Info > Stock Items > Alter
Then Choose the Stock Item to edit and Press Enter. (Multiple: Display>All Items)

Exercise
Create the following Items with Groups and Units
Tea Food Pack
Rice Food Bags
Pen Stationary Pcs
Shirt Cloth Pcs
Sun silk shampoo Cosmetic Pcs

Bulb Electric Pcs

Copy Stationary Pcs
Sugar Food Kg
Waiwai Food Pack (pkt)
Voucher Entry
Gateway of Tally > Voucher entry (Accounting voucher)
We can enter 9 kinds of vouchers, they are: Contra, Payment, Receipt, Journal, Sales, Sales Return,
Purchase, Purchase Return and Stock Journal.
Keys of these vouchers are: - Contra=F4 , Payment=F5 , Receipt=F6
Journal=F7 , Stock Journal=Alt+F7, Sales=F8 , Purchase=F9. It displays at right side of Tally
window. (But Tally Allows 19 Kinds of Vouchers).
To change the date Press F2 then put the date (or Press F2 then press Enter to go the Following
Days date). Ctrl+M use for Gateway of Tally and by pressing Ctrl+N you can activate calculator. We
have to entry the vouchers on right place. Tally allow as
Contra : All Bank & Cash vouchers.
Payment : All Cash, Bank Payment vouchers.
Receipt : All Cash, Bank Receipt vouchers.
Sales : All Sales vouchers & Sales return vouchers.
Purchase : All Purchase vouchers & Purchase return.
Stock Journal : All Stock Transfer and Consumption & Production entries.
Journal : Except above all vouchers are entries in Journal.
How to Entry the vouchers?
Go to Voucher Entry and choose the related voucher (like: to entry the suppliers invoice, choose
purchase) then press F2 and put the voucher date. If you are entering Sales or Purchase voucher
put the Invoice no in Ref. option. Then put the Dr. or Cr. ledger. (On purchase, receipt and contra
voucher format we see Cr. first where sales and payment format we see Dr). Than put the amount
and after that put second ledger, if you have choused Account with Inventory feature, you have to put
the stock items and their value on Purchase & Sales ledger. At last type a suitable Narration. Each
times press Enter to go next column.
While entering Vouchers you can create new ledger by pressing Alt+C delete voucher by Alt+D, save
voucher Ctrl+A, Paste previous Narration Ctrl+R.
Configuration (F12)
To show inventory detail in voucher. Show Inventory Details ? Yes
To show the current balance. Show Ledger & Vouchers Current balance ? Yes
To entry cased voucher in Journal. Allow Cash Accounts in Journals ? Yes
To use Dr/Cr in voucher entry. Use Cr/Dr instead of To/By during entry ? Yes
Alert on Negative Cash. Warm on Negative Cash Balance ? Yes
Alert on Negative Stock Balance. Warm on Negative Stock Balance (Inv) ? Yes

Exercise
Entry the following vouchers put the suitable Date and Narration.
Purchase:No. 1
Cr. L/C No 001245 67,800
Dr. Purchase 60,000
Sun silk shampoo 200pcs90 18,000
Sugar 500kg40 20,000
Bulb 100Pcs20 2,000
Shirt 50pcs400 20,000
Dr. VAT A/c 7,800
No. 2
Cr. Choudary Group 61,020
Dr. Purchase 54,000
Waiwai 2,000pkt11 22,000
Tom yam 1000pkt10 10,000
Waiwai Quick 2,000pkt11 22,000
Dr. VAT A/c 7020
No. 3
Cr. Balaram khadya udhog 7,03,000
Dr. Purchase 7,03,000
Rice 1000bgs700 7,00,000
Salt 300kgs10 3,000
No. 4
Cr. Cash 31,640
Dr. Purchase 28,000
Pen 200pcs15 3,000
Copy 1000pcs25 25,000
Dr VAT A/c 3,640
No. 5
Cr. Balaram khadya udhog 10,170
Dr. Purchase 9,000
Tea 75pkt40 3000
Coffee 50pkt120 6,000
Dr. VAT A/c 1170

No. 6
Cr. Nepal Cusmatic 31,357.50
Dr. Purchase 27,750
Fairever 200pkt80 16,000
fair&Lovely 175pkt 50 8,750
Lux 100pkt 30 3,000
Dr. VAT A/c 3607.50
No. 7
Cr. Nepa Fasion Collection 1,44,357.5
Dr. Purchase 12,7,750
Shirt 200pcs 400 80,000
T-shirt 85pcs 350 29,750
Jacket 20pcs 900 18000
Dr. VAT A/c 16,607.5
No. 8
Cr. Universal Electronics 23,956
Dr. Purchase 21,200
Bulb 200pcs 20 4,000
T.V. 2set 7,000 14000
DVD player 1set 3,000 3,000
Cord wire 1pcs 200 2,00
Dr. VAT A/c 2,756
No. 9
Cr. Nepal Cosmetic 73,450
Dr. Purchase 65,000
Sun silk Shampoo 200pcs 90 18,000
Detol Soap 200pcs 75 15,000
Life boy soap 200pcs 30 6,000
Clinic plus 200pcs 80 16,000
Fair &Lovely 200pcs 50 10,000
Dr. VAT A/c 8,450
No. 10
Cr. Universal Electronic 62,150
Dr. Purchase 55,000
Telephone set 50set 300 15,000
Fm Radio 200set 175 35,000
Blank C.D 1000pcs 5 5,000
Dr. VAT A/c 7,150

No. 11
Cr. Cash 10,735
Dr. Purchase 9,500
Paper 20rim 400 8,000
Pen 100pcs 15 1,500
Dr. VAT A/c 1,235
Sales:No. 1
Dr. Baneshwor Department Store 19,888
Cr. Sales A/c 17600
Waiwai 1000pkt12 12,000
Tomyam 400pkt11 4400
Waiwai Quick 100pkt12 1200
Cr. VAT A/c 2288
No. 2
Dr. Gausala Kirana Pasal 234550
Cr. Sales 234550
Rice 300Bags750 225000
Salt 50Kgs11 550
Sugar 200Kgs45 9000
No. 3
Dr. Cash 18080
Cr. Sales 16000
Pen 5opcs20 1000
Copy 500pcs30 15000
Cr. VAT A/c 2080
No. 4
Dr. Cash 3729
Cr. Sales 3300
Tea 20pkt45 900
Coffee 10pkt130 1300
Waiwai 50pkt12 600
Bulb 20pcs25 500
Cr. VAT A/c 429
No. 5
Dr. Cash 12260.50
Sales 10850
Sun silk shampoo 50pcs100 5000
Fair & Lovely 30pkt55 1650

Lux soap 20pkt35 700

Detol soap 100pkt35 3500
Cr. VAT A/c 1410.50
No. 6
Dr. Kamal Dress 70060
Cr. Sales 62000
Shirt 40pcs450 18000
T-shirt 85pcs400 34000
Jacket 10pcs1000 10000
Cr. VAT A/c 8060
No. 7
Dr. Cash 9379
Cr. Sales 8300
F. M Radio 3pcs200 600
Telephone set 5pcs800 4000
Blank C. D 200pcs8 1600
Cord wire 10pcs210 2100
Cr. VAT A/c 1079
No. 8
Dr. Cash 21526.5
Cr. Sales 19050
Sun silk shampoo 50100 5000
Detol soap 20035 7000
Life boy 5035 1750
Fair &Lovely 5055 2750
Fairever 3085 2550
Cr. VAT A/c 2476.5
No.9
Dr. Pashupati stationary 14577
Cr. Sales 12900
A4 paper 12rim425 5100
Pen 90pcs20 1800
Copy 200pcs30 6000
Cr. VAT A/c 1677
No. 10
Dr. Kathmandu T. V shop 290975
Cr. Sales 257500
TV 15set16000 2, 40,000

DVD 5set3500 17500

Cr. VAT A/c 33475
Received Voucher:No. 1
Cr. Gausala kirana 15000
Dr. Himalayan Bank ltd. 15000
No. 2
Cr. Baneshwor Department store 21000
Dr. Cash 5000
Dr. Himalayan Bank 16000
No.3
Cr. Kamal Dress 11000
Dr. Cash 11000
No.4
Cr. Kathmandu TV soap 1, 20,000
Dr. Himalayan Bank 1, 20,000
No.5
Cr. Baneshwor Department store 12000
Dr. Cash 12000
No.6
Cr. Directors' C/A* 25000
Dr. Himalayan Bank 25000
No.7
Cr. Gausala kirana 4500
Dr. Cash 4500
(*Sometime business needs cash and director pays interest free loan to the business it must back
within a fiscal year. The Group for this Ledger is Current Liabilities.)
No.8
Cr. Kathmandu TV soap 55000
Dr. Himalayan Bank 50,000
Dr. Cash 5000

No. 9
Cr. Kamal Dress 10,000
Dr. Cash 10,000
Payment Voucher:No. 1
Dr. Telephone Expenses 500
Dr. VAT A/c 65
Cr. Cash 565
No. 2
Dr. Salary 4500
Cr. Cash 4500
No. 3
Dr. Universal Electronic 12000
Cr. Himalayan Bank 12000
No.4
Dr. Nepal cosmetics 45000
Cr. Cash 45000
No. 5
Dr. Balaram khadya udhog 35000
Cr. Cash 35000
No. 6
Dr. L/C No 001245 60000
Dr. L/C charge & commission 2500
Cr. Himalayan Bank 62500
No.7
Dr. Nepa fashion collection 1, 20,000
Cr. Himalayan Bank 1, 20,000
Contra:No. 1
Cr. Himalayan Bank 20,000
Dr. Cash 20,000
(Cash withdraw)

No. 2
Cr. Cash 7,500
Dr. Himalayan Bank 7,500
(Cash Deposit)
Journal:No. 1
Dr. Telephone Expenses 1,500
Cr. Telephone Expenses Payable 1,500
No. 2
Dr. Nepa Fashion collection 11,000
Cr. Gausala Kirana 11,000
Stock Journal
Source (Consumption) Destination (Production)
Name of Item Qty Rate Amount Name of Item Qty Rate Amount
Water 12cup 30 Tea 15 cup 65
Milk 1 Pkt. 15
Sugar 0.25 Kg 10
Green Tea 0.15 Kg 10
We can make production entries like this. We also can make single entry here, for example we
bought Sunsilk Shampoo and get a Hair Oil free, we put the entry of Sunsilk Shampoo purchase on
Purchase Voucher and make a entry on Stock Journals Production side for free Hair Oil. We also
can create the Inventory Items adjustment entries in Stock Journal. Normal shortage deduction, free
scheme etc.
Additional Cost of Purchase:
When we purchase goods there may another costs and that affects on the Rate of Item. After tracked
them, the rate of item will increase. Tally allows us to entry such costs on Purchase voucher. First of
all we need to change the Features by pressing F11 on Voucher Entry menu and change the
Inventory Feature: (Tally 9 Press F11 Then Press F2)
Track additional costs of Purchase? Yes
Then entry the purchase voucher, when we put the Inventory Value and press enter a new box
appear where we put the additional costs Name and Amount; such like Carriage Inwards (@ 10% of
amount or) Rs. 500. Finally we must credit the same amount on related ledger and if we pay them
we have to show the payment entry on Payment Voucher.
For Example:

If we purchase Fair & Lovely 120 Pcs @ 35.62 and pay Rs. 500 as carriage and Lux Soap 300 Pcs
@ 30 Rs and pays Rs. 700. We have to make a purchase entry and put the carriage as additional
cost. It increases the rate of item which shows as Actuals: below. At last the amount of additional
cost should be credit respectively. This feature is applicable in Accounts with Inventory feature only.
Additional Costs sf] af/]df hfgsf/L
;fdfg vl/b ug]{ 7fpFsf] cfwf/df vl/bnfO{ @ efudf afF9\g ;S5f}FM :yflgo vl/b / cfoft (Local Purchase &
Import Purchase) . b]zleq}af6 ul/Psf] vl/bnfO{ xfdL :yflgo vl/bdf /fV5f}F / cGo b]zaf6 ul/Psf] vl/bnfO{
-h:df s/sf] lx;fjn] Invoice geO{ eG;f/ k|1fkg kq a9L dxTjk"0f{ x'G5_ xfdL cfoft eGg] ub{5f}F . h'g;'s}
dfWodaf6 ;fdfg vl/b ul/Ptfklg vl/bdf nfUg] cGo vr{x ;a} xfd|f nflu Direct Costs x'g h;n] ;fdfgsf] d'Nodf k|
efj kfb{5g . tL vr{xsf] af/]df hfgsf/L xfdL lgDg :yfgaf6 kfpg ;S5f}FM
L/c Related Costs Bank Statement
Custom Related (Duty, LD Fee, Special Fee etc) e+;f/ k|1fkg kq
Freight and other Shipment Related (Beyond the home Nation) Transporters Documents
Carriage, Collie & other (In the Nation) Delivery Challan (rnfg / ekf{O)
e+;f/ k|1fkg kq
ljb]zjf6 cfoft ul/Psf ;fdfgx e+;f/df hfFrkf; ePkl5 dfq ;DalGwt ;+:yfn] Nofpg] cfb]z kfpF5 . j:t'sf] hfFr
ubf{ Invoice df ePsf] j:t' jf kl/df0f / jf:tljs j:t' jf kl/df0f ldN5 ldNb}g ;f] s'/fnfO{ x]g]{ ul/G5 . o;df km/s k/]df
P]gdf plNnlvt ;hfo lbOG5 ;fy} hl/jfgf ;d]t ul/G5 .
olb ;xL ePdf P]gn] Joj:yf u/] cg'?ksf z'Nsx nufOG5 / pQm z'NsxnfO{ a:t'sf] d'Nodf hf]8L pQm /sddf
Eof6 nufOG5 . oL z'Nsxdf e+;f/ z'Ns, :yflgo ljsf; z'Ns, ljz]if z'Ns, cGtMz'Ns cflb k5{g\ . oL z'Nsx j:t'sf]
k|sf/cg';f/ km/s km/s k|ltztn] nufO{G5 . cfwf/e"t cfjZostfsf j:t'xdf of] k|ltzt sd / ljnfzLtfsf j:t'xdf a9L x'G5
. o;nfO{ cy{ dGqfnon] a]nf a]nfdf ;dfof]hg ul/ /fhkqdf k|sflzt klg u5{ .
cGTodf j:t'sf] hfFrkf; ul/;s]kl5 ;fdfgwgLnfO{ e+;f/n] pQm ;fdfg, hfFrkf;sf] ljj/0f, nfu]sf] z'Ns / cGo hl/jfgf
;d]t -eP_ pNn]v ul/Psf] sfuhkq lbG5 pQm sfuhkqnfO{ e+;f/ k1fkg kq elgG5 .
Bank Statement
Bank is the essential parts of business. Most of business activities are handling through bank today.
To do such activities we have to create a bank account in a bank. Bank always dose fair and legal
activities and provides us a note of our activities through bank, which we say bank statement or pass
book. Bank statement is verification (proof) of our banking activities.
The entries of bank statement take place only on Receipt, Payment and Contra voucher. A specimen
of bank statement is present below:
Himalayan Bank Ltd. Bank Statement
New Baneshwor, Ktm.
Current A/c From 1 jul. 200 to 31jul. 200
Date Particular Debit Credit Balance

01 july Opening balance 22,380.00

05 july Cash deposited 10,000.00 32,380.00
17 july Ramesh, Home chq. 00345 5,000.00 27,380.00
21 july Gausala Kirana, deposited 1,50,000.00 1,77,380.00
24 july L/c 001245, Margin 7,800.00
24 july Bank commission 001245 1,500 1,68,080.00
28 july Baneshwor dep. Store, deposit 10,000.00 1,78,080.00
31 july L/c 001245, settlement 60,000.00
31 july Bank commission 001245 2,500.00 1,15,580.00
31 july Closing Balance 1,15,580.00

Part II Tally Reporting:

Display the all powerful eis tool
Tallys Display of information has been designed to give you maximum benefit of the data that has
been entered through vouchers. You would have found that voucher entry itself is so much like your
thought process. Display of information and the amazing variety of it all, puts you in charge of your
business information. The best way to extract utmost from Displays is to experiment with the different
options. It is not possible to cover the almost infinite options and ways in which you can present your
data in a single manual. It is through Displays that Tally users get money saving ideas! The purpose
of putting in all your data is, after all, to present them in the form of comprehensible accounting
reports. Tally far exceeds these expectations. By way of entry, all you do is to enter your vouchers.
You do that, any way for your accounting purposes. Tally uses the same data and gives you
management control reports in addition to all books and statements. Tally is real-time all reports
are up-to-date at all times. They are displayed as at the last voucher entered.
If you select the buttons using the keyboard, the conventions are:
Fn: - just press the Fn key.
Fn: - press [Alt]+Fn.
Fn: - press [Ctrl]+Fn.
F1: Detailed/Condensed
Adds a further level of detail to the report, or condenses the report to a higher level of detail.
F2: Period
Enables you to change the period of the report by specifying new (from/to) dates.
F3: Company
If you have more than one company selected, this button enables you to change companies to
display the new company data in the current screen format.
F4: to F10:
The functions performed by these buttons vary from report to report.
F11: Company Features
This button is not related to displaying reports but to selecting options that affect voucher entry. The

screen it displays must not be changed during training.

F12: Configure
This button is very relevant to displaying reports and enables you to define the report-specific options
you wish to use. For example, depending on the report you are in, you can specify whether it should
be in horizontal or vertical format, show percentages, show gross profit, show opening and/or closing
balances, change the periodicity, change the sorting method, and so on. If you select F12: Configure
while in the Gateway of Tally screen, this takes you to a Configuration menu. If you select General, it
brings up an option screen which, amongst other things, enables you to specify that you wish to see
graphs with monthly reports.
F12: Range
This button enables you to filter the information you see displayed based on monetary value. For
example, you can specify you only want closing balances greater than 5,000.
F12: Value
This button enables you to filter which vouchers you wish to be used in the calculations. For
example, you can specify you only want vouchers having a narration containing the expression XYZ
Project.
New Column
This button enables you to add another column to the report to display comparable information for
another company, or for a different period for the same company, all on the same screen.
Alter Column
This button enables you to alter the details of a new column you have previously created, for
example, the date range. You select the column to alter by positioning the cursor in it prior to
selecting the button.
Del Column
You use this button to delete columns you no longer wish to see in the report.
Auto Column
You use this button to add multiple columns to a report, for example, columns for each month, or to
accommodate several companies. You can also have a total column for the total of each item across
all columns.
Accessing reports
The Gateway of Tally menus provide access to all the financial reports, as in the diagram opposite.
For example, if you want to view the Sales Register then, in the Gateway of Tally menu select
Display, Account Books and Sales Register in turn, and Tally will display the report for the currently
selected period.
Only the Balance Sheet and Profit & Loss Account are displayed directly from the Gateway of Tally.
Tally accords these statements the highest importance. As you can see from the menu, displays are
roughly organized into Accounts information displays and Inventory information displays
conforming to the two major areas of operations. Each area is grouped separately into books and
statements. Conforming to showing the main financial statements separately, the Cash and Funds
Flows are not grouped under Statements of Accounts. The Day Book contains all the vouchers for

the day, including inventory vouchers. Its purpose is to show you a days transactions. However, you
can display any report for any period by using the change period option.
Modifying reports
Once you have selected a report and its screen appears, you can modify the display to suit your
requirements using the appropriate buttons on the button bar. You will get to know the functions of
the various buttons as you become more familiar with Tally but some buttons perform similar
functions in all reports, providing they are appropriate to the screen you are viewing.
Display Account books & statements
Books of account record the individual transaction details you have entered. Although you may post
items to many different ledgers, Tally brings all the transactions of one category together into a book
of account for viewing and printing. For example, the Cash Book records all the transactions
affecting cash; the Sales Book records all the sales transactions.
Statement of Accounts pertain to cost centres and outstanding analysis. These are derived from
individual transactions but are not statutory requirements.
Financial statements on the other hand are still derived from individual transactions but tend to show
summary totals, ratios and statistics, analyzing a companys financial data in a wide variety of ways.
Typical financial statements include the Balance Sheet, Profit & Loss A/c, and Cash Flow Analysis.
Financial statements are usually statutory requirements in most countries. All books are displayed
first as a monthly summary with opening and closing balances. Select a month and press [enter] to
display all transactions for the month. The opening and closing balances as well as transaction totals
are also displayed. Select a transaction to bring up the voucher. This voucher comes up either in
display or in alteration mode depending upon the access rights available to you.
Viewing Bank books
Gateway of Tally> Display> Account Books> Bank Books
This displays the Bank Group Summary. Select a bank account if there are more than one. Press
Enter to display the Ledger Monthly Summary. Select F12: Configure to bring up the
configuration/Graphs option menu. Use the Tab key to tab down to Show with graph? And type Yes
and press Enter. Select Bar and press Enter to return to the Ledger Monthly Summary, now
displaying a graph of the figures. With the highlight bar over one months, say Julys figures, press
Enter to display the Ledger Vouchers screen. Note that all the vouchers for July are listed. Press
[Esc] to return to the Ledger Monthly Summary screen. Select F12: Value to bring up the Value to
Calculate in Report screen. From the Particulars menu, select Voucher Type. From the next
Particulars menu, select Name (the only option). From the Range of Info. Menu select equal to. Then
type Contra and press Enter. From the Condition menu select End of List and press Enter twice.
Notice in the Ledger Monthly Summary that the figures are now reduced as they only show Contra

vouchers. To check this, position the highlight bar over the July figures and press Enter to display the
details. Keep pressing [Esc] until you return to the Gateway of Tally menu.
Viewing the Balance Sheet
Gateway of Tally> Balance Sheet
Notice the format of the display. Select Detailed to give break-up of the grouped figures. Select F12:
Configure to bring up the Configuration screen. Select the following options and observe the new
display.
Configuration
Show vertical balance sheet? Yes
Show percentages? Yes
Show working capital figures? Yes
Method of showing balance sheet? Assets/Liabilities
Scale factor for values Default
Select New Column and enter a date range, e.g., 1-1-2006 to 1-5-2006 to show the change in the
balance sheet since 1st May.
Viewing the Profit & Loss A/c
Gateway of Tally> Profit & Loss A/c
Configuration
Show vertical balance sheet? Yes
Show percentages? Yes
Show Gross Profit? Yes
Appearance of Names? Name Only
Scale factor for values Default
Viewing Stock Report
Gateway of Tally> Stock Summary
Tally prepares the Stock Register if we activate the Account with Inventory feature while creating
company. By following above process we can check the status of inventory. We can check item wise
also, to do so choose the item and press Enter:
Configuration
Show Quantities? Yes
Show Rates? Yes
Show Values? Yes
Show Opening Balance? Yes
Show Goods Inwards? Yes
Show Goods Outwards? Yes
Show Closing Balance? Yes

Show Consumption and Gross Profits? Yes/No

Show using Alternate Units? No
Show Tail units of Compound Units? No
Appearance of Names Name Only
Scale Factor for Values Default
Sorting Method Default
Expand all levels in Detailed Format? No
Trial Balance
Gateway of Tally> Display> Trial Balance
Trial balance shows the state of business or transaction. We find each and every business reports
through trial balance. Trial balance also shows the accuracy of putting opening balance. If it shows
the Diff. in Opening Balances it means we make mistake when putting opening Balance.
F5= Ledger wise/Grouped view.
Configuration
Show Opening Balances? Yes
Show transactions? Yes
Nett transactions only? Yes/No
Show Closing Balances? Yes
Show Percentage Yes
Type of %-age Of Totals
Appearance of Names Name Only
Scale Factor for Values Default
Sorting Method Default
Expand all levels in Detailed Format? No
Ledger
Gateway of Tally> Display> Account Books> Ledger
Tally also prepares the detail ledger by which we know the transactions of a particular ledger.
F4= Choose another ledger
F6= Daily Break-up (To view the daily transactions and balances)
F7= Monthly (To view monthly transaction/Net)
F8= Columnar
Columnar
Show Voucher Type? If need Yes or No
Show Voucher Number? If need Yes or No
Show Voucher Ref.? If need Yes or No
Show Partys' Tax Regn No? If put Yes or No
Show Voucher Narration? If need Yes or No
Show Quantity Details? If need Yes or No
Show Rate Details? If need Yes or No
All Items (Automatic Columns) or Choose ledger and ledger name.

F12= Configuration
Configuration
Select Vouchers to Show Dr, Cr or All (Choose)
Format Detail or Condensed
Show Billwise Details Also? If need Yes or No
Show Cost Centre Details Also? If need Yes or No
Show Inventory Details Also? If need Yes or No
Show Narrations Also? If need Yes or No
Include Opening Balances? If need Yes or No
Appearance of Names Name Only
Sorting Method Default
Sales/ Purchase Register
Gateway of Tally> Display> Account Books> Sales/ Purchase Register
For the purpose of VAT we must prepare the Purchase and Sales Register including Seller/Buyers
Name, Tax regn No, Gross amount and Tax with transaction date. Tally prepares all registers itself
which help us to reconcile and find errors.
When we follow above process Tally displays monthly view of Purchase/Sales Register where:
F4= Voucher Type (Journal, Sales, Purchase)
F5= (Quarterly/ Monthly View)
Then choose required month and press enter to view the transactions of this month.
F5= Columnar
The columnar and configuration are as like as ledger views.
The End

Assignment for Practicing Tally 9/ Acc-Pac/ Myob/Quick-book

The following are the accounts of National (Pvt) Ltd. for the month of April 2012.
Complete the Assignment within 2 hours and half. It is recommended for the
biginners of studying Accounting package.

Question 01
Create the following chart of the accounts.
Assets:
Fixed assets:
Motor Vehicle - motor Vehicle at cost
Office equipments - office equipments at cost
Building Building at cost
Current Assets:
Cash In Hand
HSBC
Commercial Bank
Cash Drawler
Inventory
Liabilities:
Long Term Liabilities:
Bank Loan HSBC
Bank Loan BOC
Debentures
Current Liabilities:
Electricity Payable

Incomes:
Sales:
Accounting Books
Song Books
Science Books
Magazines
Novels
English Song CDs
Games CDs

Expenses:
Advertising Fee
Postage
Fuel Expenses
Depreciation:
Motor Vehicle
Office equipment
Building

Cost of Sales:
Purchase
Accounting Books
Song Books

Science Books
Magazines
Novels
English Song CDs
Game CDs

Question 02
Following are the balances as of 01/04/2012.

Fixed Assets:
At Cost: (Dr)
Motor Vehicle

Rs. 125,000.00

Office Equipment

Rs. 52,000.00

Building

Rs. 200,000.00

Cash and Bank:

HSBC

Rs. 400,000.00

Commercial Bank

Rs. 250,000.00

Cash Drawer

Rs. 35,000.00

Long Term Liabilities:

At Cost: (Cr)
Bank Loan HSBC

Rs. 500,000.00

Bank Loan BOC

Rs. 500,000.00

Debentures

Current Liabilities

Rs. 50,000.00

Electricity Payable

Rs.

2,000.00

Debtors Total Rs. 241,000.00

Amount

Invoice #

Dilshan Book Service

Rs. 75,000.00

0058741

Hello Limited

Rs. 86,000.00

0064891

S. Mafas & Co.

Rs. 80,000.00

0000256

Creditors Total Rs. 116,600.00

Amount

Invoice #

A. Ranjith

Rs. 25,000.00

0008978

Free Books (Pvt) Ltd.

Rs. 56,800.00

0041542

Naveens Stores

Rs. 35,800.00

0009012

Inventory
Code

Description

Units

Cost

ACB-01/201

Accounting Books

20

Rs. 500.00

SCI-01/301

Science Books

30

Rs.1,000.00

MAG-01/801

Magazines

18

Rs. 650.00

COM-01/479

Computer Books

15

Rs. 850.00

NOV-02/01

Novels

05

Rs. 3,000.00
Rs. 750.00

SGB-02/01

Song Books

10

CDIS-02/01

English Song CDs

50

CDIG-02/01

Game CDs

20

Rs. 350.00
Rs. 450.00

Question 03

Update the following transactions.

2nd April

Purchase the following books for credit from Free Book (pvt) Ltd.

Vendor Invoice #0025896

Description

Units

Cost

Accounting Books

10

Rs. 500.00

Song Books

15

Rs. 750.00

Computer Books

15

Rs. 1,000.00

Magazines

30

Rs. 650.00

5th April

Cheque #

Pays the following expenses from HSBC.

Account Name

Amount

725099
VAT

Advertising

Rs. 22,000.00 +

725099

Postage

Rs.

2,500.00

725099
VAT

Utilities

Rs.

1,250.00 +

725101

Fuel Expenses

Rs.

5,500.00

On the same day sold the following items for credit to Asian Book Depot.
Invoice #00058973, Customer p/o #258741

Description

Units

Accounting Books

10

Computer Books

05

Game CDs

02

14th April

received payments deposits in HSBC

Invoices #

Amount

Cheque #
Dilshan Books Services
897456

0058741

Rs. 50,000.00

Hello Limited
457866

0064891

Rs. 60,000.00

21st April

following is the credit sales to S. Mafaz & Co.

Invoices #759812

Description
Science Books

Units
30

Magazines

18

Novels

05

25th April

Description
Motor Vehicle

Depreciate the following accounts

Amount
Rs. 5,000.00

Office Equipment

Rs. 6,275.00

Building

Rs. 10,500.00

26th April

Cheque #

pays the following expenses from HSBC

Account Name

Amount

725102`

Salary

Rs. 15,000.00

725103

Salary

Rs. 20,500.00

27th April

Index #

pays the following expenses from cash in hand

Account Name

Amount

701200
500.00

Postage

Rs.

701201
10,500.00

Fuel

Rs.

29th April
after completing all the activities, create a backup in the shared
folder with your name.