Tally ERP9

Tally.
ERP 9
Tally is a financial accounting software used to store and maintain daily business transactions
like purchase, sales, receipts, payments, purchase returns, sales returns, deposits and withdrawals
etc. Tally developed by Tally Solutions (P) Ltd at Bangalore in 1990 -91.
Features of Tally
A user-friendly package
At any moment you get the results of the business.
A codeless package.
It has the complete range of book-keeping facilities.
It has scenario management feature to analyse your business performance under varying
assumptions.
It is higly secured against data tampering.
It has very powerful audit facility.
Tally provides an interactive online help.
As Open Database Connectivity [ODBC] facility is available it can be connected to
other programs and exchange data dynamically.
All the reports can be published on web and may be directly e-mailed.
It is VAT, Service Tax, FBT, TDS, TCS compliant.
It is multilingual. Accounts can be maintained in Hindi, Marathi, Tamil, Telgu,
Kannda, Punjabi, Gujrathi, Bengali, Malayalam.
It has complete Payroll management system and much more..
ACCOUNTING
American Accounting Association defines accounting as the process of identifying, measuring

and communicating economic information to permit informed judgments and decision by users
of the information.
It is the art of recording, classifying and summarizing in a significant manner and in terms of
money, transactions and events which are in part at least of a Financial Character and interpreting
the result thereof. In simple terms accounting means:a) Recording
b) Classifying
c) Summarizing all the transactions which take place in the day to day business.
It is the art of recording, classifying and summarizing all the day to day business transactions
This is done for a particular period of 12 months called a 'Financial Year'. It generally
starts on 1st April and ends on 31st March.
The main objectives of accounting are
i. To maintain accounting records.
ii. To calculate the result of operations.

iii. To ascertain the financial position.
iv. To communicate the information to users
Transactions are those activities of a business, which involve transfer of money or goods or
services between two persons or two accounts. Transactions are of two types, namely,
cash and credit transactions.
Cash Transaction is one where cash receipt or payment is involved in the transaction.
Credit Transaction is one where cash is not involved immediately but will be paid or received
later
Classification of Accounts:
Transactions can be divided into three categories.
i. Transactions relating to individuals and firms
ii. Transactions relating to properties, goods or cash
iii. Transactions relating to expenses or losses and incomes or gains.
ACCOUNTS
PERSONAL
IMPERSONAL
REAL
NATURAL ARTICIAL REPRESENTATIVE
NOMINAL
TANGIBLE INTANGIBLE
Golden Rules of Accounting

NAME OF ACCOUNT
DEBIT ASPECT
CREDIT ASPECT
Personal
The receiver
The giver
Real
What comes
What goes out
Nominal
All expenses and Losses
All incomes and gains
Assets = Capital + Liabilities

Liabilities = Assets Capital
Capital = Assets Liabilities
Assets = Capital + Liabilities + Revenue/Income - Expenses
Proprietor
The person who makes the investment and bears all the risks connected with the business is
known as proprietor.
Capital
It means the amount (in terms of money or assets having money value) which the proprietor has
invested in the firm or can claim from the firm. It is also known as owners equity or net worth.
Owners equity means owners claim against the assets. It will always be equal to assets less
liabilities, say: Capital = Assets - Liabilities.
Asset
Any physical thing or right owned that has a money value is an asset. In other words, an asset is
that expenditure which results in acquiring of some property or benefits of a lasting nature.
Assets are properties of business.
a) Tangible Assets:
Assets which have some physical existence are known as tangible assets. They can be seen,
touched and felt, e.g. Plant and Machinery Tangible assets are classified into
i. Fixed assets :
Assets which are permanent in nature having long period of life and cannot be converted into
cash in a short period are termed as fixed assets.
ii. Current assets :
Assets which can be converted into cash in the ordinary course of business and are held for a
short period is known as current assets. This is also termed as floating assets. For example,
cash in hand, cash at bank, sundry debtors etc. Asset converted into cash within a year.
b) Intangible Assets
The assets which have no physical existence and cannot be seen or felt. They help to generate
revenue in future, e.g. goodwill, patents, trademarks etc.
c) Fictitious Assets
These assets are nothing but the unwritten off losses or non-recoupable expenses. They are really
not assets but are worthless items.eg. Preliminary expenses.
Liabilities
The amount which a business owes to others is liabilities. Credit balance of personal and real
accounts together with the capital account are liabilities.
a) Long Term Liabilities
Liabilities which are repayable after a long period of time are known as Long Term Liabilities.
For example, capital, long term loans etc.
b) Current Liabilities
Current liabilities are those which are repayable within a year. For example, creditors for goods
purchased, short term loans etc.
c) Contingent liabilities
It is an anticipated liability which may or may not arise in future. For example, liability arising
for bills discounted. Contingent liabilities will not appear in the balance sheet. But shown as foot
note.
Drawings
It is the amount of cash or value of goods withdrawn from the business by the proprietor for his
personal use. It is deducted from the capital.
Debtor
A person who owes money to the firm mostly on account of credit sales of goods is called a
debtor. The debtors are shown as an asset in the balance sheet. Debtors are the persons who
receive goods on credit.
Creditor
A person to whom money is owned by the firm is called creditor. The creditors are shown as a
liability in the balance sheet. The creditors are shown as a liability in the balance sheet.
Creditors are the persons who supply goods on credit, or bankers or lenders of money.
Sundry Debtors: The person who is the receiver or customer.
Sundry Creditors: The person who is the giver or supplier
Purchases
Purchases refer to the amount of goods bought by a business for resale or for use in the
production. Goods purchased for cash are called cash purchases. If it is purchased on credit, it is
called as credit purchases. Total purchases include both cash and credit purchases.
Purchases Return or Returns Outward
When goods are returned to the suppliers due to defective quality or not as per the terms of
purchase, it is called as purchases return.
Sales
Sales refer to the amount of goods sold that are already bought or manufactured by the business.
When goods are sold for cash, they are cash sales but if goods are sold and payment is not
received at the time of sale, it is credit sales. Total sales include both cash and credit sales.
Sales Return or Returns Inward
When goods are returned from the customers due to defective quality or not as per the terms of
sale, it is called sales return or returns inward
Stock
Stock includes goods unsold on a particular date. Stock may be opening and closing stock. The
term opening stock means goods unsold in the beginning of the accounting period. Whereas the
term closing stock includes goods unsold at the end of the accounting period.
Direct expenses: Direct expenses are incurred to make the goods sale able. They include wages,
carriage and freight on purchases, import duty, customs duty, clearing and forwarding charges
manufacturing expenses or factor. Expenses
Some of the direct expenses are:
i. Wages: It means remuneration paid to workers.
ii. Carriage or carriage inwards: It means the transportation charges paid to bring the goods
from the place of purchase to the place of business.
iii. Octroi Duty: Amount paid to bring the goods within the municipal limits.
iv. Customs duty, dock dues, clearing charges, import duty etc.: These expenses are paid to
the Government on the goods imported.
v. Other expenses: Fuel, power, lighting charges, oil, grease, waste related to production and
packing expenses.
Revenue
Revenue means the amount receivable or realised from sale of goods and earnings from interest,
dividend, commission, etc.
Expense
It is the amount spent in order to produce and sell the goods and services. For example, purchase
of raw materials, payment of salaries, wages, etc.
Income
Income is the difference between revenue and expense.
Expenses Outstanding: unpaid expenses/expenses due
Expenditure incurred during current year but the amount on which is not yet paid.
Income Outstanding: Income accrued/Income earned but not received
Income earned during the current year but the amount on which is not received.
Income received in Advance/Income received but not earned
Income received during current year but not earned or a part of which relates to the next year.
Prepaid expense/Prepaid advance
Expenditure paid during current year but not incurred or a part of which relates to the next year.
Voucher
It is a written document in support of a transaction. It is a proof that a particular transaction has
taken place for the value stated in the voucher. It may be in the form of cash receipt, invoice,
cash memo, bank pay-in-slip etc. Voucher is necessary to audit the accounts.
Invoice
Invoice is a business document which is prepared when one sell goods to another. The statement
is prepared by the seller of goods. It contains the information relating to name and address of the
seller and the buyer, the date of sale and the clear description of goods with quantity and price.
Receipt
Receipt is an acknowledgement for cash received. It is issued to the party paying cash. Receipts
form the basis for entries in cash book.
Account
Account is a summary of relevant business transactions at one place relating to a person, asset,
expense or revenue named in the heading. An account is a brief history of financial transactions
of a particular person or item. An account has two sides called debit side and credit side.
Trial balance is a statement, prepared with the debit and credit balances of ledger accounts to
test the arithmetical accuracy of the books J.R. Batliboi.
Trial balance is a statement which shows debit balances and credit balances of all accounts in
the ledger. The entire ledger is summarized in the form of a Trial Balance. It is a statement
containing the various ledger balances on a particular date.
Final Accounts
The final accounts of business concern generally includes two parts. The first part is Trading and
Profit and Loss Account. This is prepared to find out the net result of the business. The second
part is Balance Sheet which is prepared to know the financial position of the business.
Balance sheet is defined as 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. It is
a statement showing the financial position of a business.
Petty means small. The petty cash book is a book where small recurring payments like carriage,
cartage, postage and telegram, printing and stationery etc., are recorded by the petty cashier, a
person other than the main cashier.
Adjustment Entries:
While preparing the Profit and Loss Account for a particular period it is absolutely essential
that the expenses, losses, income and gains relating only to that period are considered. Therefore
the figures in the Trail Balance must be adjusted before preparing Profit and Loss account and
Balance sheet.
These entries usually relate to the following:

1) Closing stock
2) Outstanding expenses
3) Prepaid expenses
4) Outstanding or accrued income
5) Income received in advance
6) Depreciation
7) Bad debts
8) Provision for bad debts
9) Interest on capital
Main Parts of Gateway of Tally
1. Title Area
2. Main Area
3. Calculated Area
4. Button Bar
5. Other Parts:
a. Current Period: This is the currently loaded or selected companys accounting period
b. Current Date: This is the date of the last voucher entry of the selected company (Not
the calendar date)
c. List of Selected Companies: This displays the name of the loaded or selected
company
d. Masters: for creation of Accounting masters and inventory masters and importing
master information
e. Transactions/Vouchers: for creation of Accounting vouchers and importing
transaction information
f.
Reports: Consist of all the reports of financial and inventory records
Pre-define/Reserved groups?
During creation of a company, Tally automatically created 15 main/primary group and 13 subgroups known as predefined groups. These groups cannot be deleted. We can add new primary
and sub groups through group creation.
Primary Groups (9)
Capital Account
Sub Groups (13)

Reserves & Surplus (Retained Earnings)
Bank Accounts
Cash-in-hand
Deposits(Asset)
Current Assets
Loans & Advances (Asset)

Stock-in-hand
Sundry Debtors
Duties & Taxes
Current Liabilities
Provisions
Sundry Creditors
Fixed Assets
Investment
Bank OD A/c [Bank OCC A/c]
Loans (Liability)
Secured Loans
Unsecured Loans
Suspense A/c
Misc. Expenses (Assets)
Branch/Divisions
Out of the 15 pre-defined primary groups, the following are the six pre-defined groups that
appear in the Profit & Loss Account.
1. Sales Accounts
2. Purchase Accounts
3. Direct Incomes [Income (Direct)]
4. Indirect Incomes [Income (Indirect)]
5. Direct Expenses [Expenses (Direct)]
6. Indirect Expenses [Expenses (Indirect)]
Accounting Voucher
Inventory Voucher
NonAccounting
Voucher
Order Voucher
Contra (F4)
Rejection in (CTRL+F6)
Memo (CTRL+F10)
Purchase Order
(CTRL+F4)
Payment (F5)
Rejection Out (ALT+F6)
Reversing Journals
(F10)
Sales Order
(CTRL+F5)
Receipt (F6)
Stock Journal (ALT+F7)
Optional (CTRL+L)
Journal (F7)
Delivery Note (ALT+F8)
Post-Dated(CTRL+T)
Sales (F8)
Receipt Note (ALT+F9)
Purchase (F9)
Physical Stock (ALT+10)
Credit Note (CTRL+F8)

Debit Note (CTRL+F9)
Types of Ledger
Gateway of Tally > Accounts Info > Ledger > Create
S.N
Ledger
Group
S.N
Ledger
Group
Opening stock
Stock-in-hand
34
Carriage Inward for purchase
Direct Expenses
Closing stock
Stock-in-hand
35
Cartage and coolie
Direct Expenses
Capital
Capital Account
36
Octroi
Direct Expenses
Drawings
Capital Account
37
Manufacturing Wages
Direct Expenses
Cash/credit purchase
Purchase account
38
Coal, gas, water, oil & fuel
Direct Expenses
Cash/Credit Sales
Sales Account
39
Factory rent, Insurance
Direct Expenses
Cash-in-hand
Cash-in-hand
40
Electricity, Light & Heating
Direct Expenses
Cash at Bank
Bank Account
41
Salary
Indirect Expenses
Bank Overdraft
Bank OD
42
Postage & Telegrams
Indirect Expenses
10
Sundry Creditors
Sundry Creditor
43
Telephone Charges
Indirect Expenses
11
Sundry Debtors
Sundry Debtor
44
Rent paid
Indirect Expenses
12
Investment
Investment
45
Rates & Taxes
Indirect Expenses
13
Expense Outstanding
Current Liabilities
46
Insurances
Indirect Expenses
14
Income received in
advance
Current Liabilities
47
Interest on Bank Loans
Indirect Expenses
15
Other Liabilities
Current Liabilities
48
Interest on Loan Paid
Indirect Expenses
16
Bills Payable
Current Liabilities
49
Bank Charges
Indirect Expenses
17
Bills Receivable
Current Asset
50
Legal Charges
Indirect Expenses
18
Stock of stationery
Current Asset
51
Audit Fees
Indirect Expenses
19
Prepaid Expenses
Current Asset
52
Printing & Stationery
Indirect Expenses
20
Income Outstanding
Current Asset
53
General Expenses
Indirect Expenses
21
Loose Tools
Fixed Asset
54
Discount Allowed
Indirect Expenses
22
Furniture& Fittings
Fixed Asset
55
Carriage Outward for Sales
Indirect Expenses
23
Motor Vehicles
Fixed Asset
56
Repair Renewals
Indirect Expenses
24
Plant & Machinery
Fixed Asset
57
Motor Expenses
Indirect Expenses
25
Land & Building
Fixed Asset
58
Depreciation on assets
Indirect Expenses
26
Household Property
Fixed Asset
59
Commission Received
Indirect Income
27
Patens
Fixed Asset
60
Discount Received
Indirect Income
28
Goodwill
Fixed Asset
61
Rent Received
Indirect Income
29
Loan from Others
Loan Liabilities
62
Dividend Received
Indirect Income
30
Bank Loan
Loan Liabilities
63
Bad Debts Recovered
Indirect Income
31
Mortgage Loans
Secured Loans
64
Profit by sales of assets
Indirect Income
32
Fixed Deposit at Bank
Deposit
65
Sundry Income
Indirect Income
33
Interest on Invest./Deposit Indirect Income

Received
66
Interest on Loan Received
Indirect Income
VOUCHER ENTRY
Voucher is a document containing the details of financial transaction. For every transaction
made, a voucher is used to enter the details into the ledger to update the financial position of the
company. In manual, recording the business transaction is called journal entry. In tally this
process is called Voucher entry.
Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform

a different job. The standard Accounting Vouchers are:
1. Contra Voucher (F4)
2. Payment Voucher (F5)
3. Receipt Voucher (F6)
4. Journal Voucher (F7)
5. Sales Voucher (F8)
6. Purchase Voucher (F9)
7. Credit Note Voucher (Ctrl+F8)
8. Debit Note Voucher (Ctrl+F9)
Contra Voucher (F4):
Transaction related with transfer of funds between banks, cash, withdrawals and deposits
Cash to Bank
Bank to Cash
Bank to Bank
Cash to Cash (Petty cash)
Payment Voucher (F5):

Used to record both cash and cheque payments
Payment to supplies
Business expenses like rent, salaries, Commission paid, wage paid etc.
Purchase of fixed asset by cash or cheque payment.
Give loans, repayments of loans and paid advance.
Receipt Voucher (F6):

Used to record all cash and cheque receipts
Collection from debtors
Income by sales of fixed assets for cash
Receipt like commission received, advances received, Interest received etc.
Received Capital
Received loans and repayment of loans.
Journal Voucher (F7):

Used to enter the adjustment transactions or the transactions without money movement like
depreciation, party-to-party adjustments. i.e. Ledger to Ledger adjustments.
Fixed assets purchased for credit
Purchase return
Sales return
Indirect expenses met for credit
Sales Voucher (F8): Used to record both cash and credit sales. Records the delivery of goods
and invoice to customers.
Purchase Voucher (F9): Used to record both cash and credit purchase. Records the receipt of
goods with invoice from suppliers.
Credit Note Voucher (Ctrl+F8): Sales return and payables. Credit Note for Goods rejected and
returned by customer.
Debit Note Voucher (Ctrl+F9): Purchase return and received transactions. Debit Note for
Goods rejected and returned to supplier.
Note:
Voucher Mode: Debit and credit formation. Trade discounts and sales tax are calculated
manually.
Invoice Mode: Similar to actual invoice. Trade discounts and sales tax are automatically
calculated.
Non-Accounting Voucher
Memo Voucher (CTRL+F10): It is a non accounting voucher whose entries do not affect your
accounts at all.
Optional Vouchers (CTRL+L): This is not a separate voucher type. You can mark a Regular
voucher as optional and then can be regularized the same.
Reversing Journals (F10): These are the vouchers for a single day.
Post-dated Vouchers (CTRL+T): You can mark voucher as post-dated while entering it. Tally
will include the same on the due date.
Example: Accounting Only
1.4.2013: Arun start business with capital Rs.1, 00,000
2.4.2013: Bought goods for cash Rs. 10,000
3.4.2013: Sold goods to Kannan on credit Rs. 11,000
4.4.2013: Purchase goods from Mahesh Rs. 8000 on credit
5.4.2013: Received cash from kannan Rs. 7,500
6.4.2013: Paid to Mahesh on account Rs. 5,000
7.4.2013: Sold goods to Mano Rs. 6,000 on credit
8.4.2013: Cash sales Rs. 7,500
9.4.2013: Received cash from Mano Rs. 5,000
10.4.2013: Paid rent Rs. 2,000
11.4.2013: Paid salaries to office staff Rs. 3,000
12.4.2013: Received commission Rs.1,200
Example: Accounting Only

Lathika Computers started business from 1.4.2013
1.4.2013: Received from capital by cash Rs.2, 00,000
2.4.2013: Cash deposited into ICICI bank Rs. 50000
5.4.2013: Credit purchase from Power Traders Rs. 20,000

5.4.2013: Credit purchase from City Traders Rs. 20,000
10.4.2013: Credit purchase from Power Traders Rs. 20,000
10.4.2013: Credit purchase from City Traders Rs. 20,000
12.4.2013: Return goods to Power Traders Rs. 5000
12.4.2013: Return goods to City Traders Rs. 5000
13.4.2013: Credit sales to Deem & Co Rs. 50, 000
13.4.2013: Credit sales to Malar & Co Rs. 50, 000
15.4.2013: Cash sales to Pooja & Co Rs. 20000
15.4.2013: Received from cash Pooja & Co Rs. 20000
17.4.2013: Credit sales to Deem & Co Rs. 50, 000
17.4.2013: Credit sales to Malar & Co Rs. 50, 000
18.4.2013: Good returns by Deem & Co Rs. 5000
18.4.2013: Good returns by Malar & Co Rs. 5000
20.4.2013: Payment made by cheque to Power Traders Rs. 30, 000
20.4.2013: Payment made by cheque to City Traders Rs. 30, 000
22.4.2013: Received from cheque Deem & Co Rs.75, 000
22.4.2013: Received from cheque Malar & Co Rs.75, 000
25.4.2013: Payment made by cash
Petty cash Rs. 1000
Furniture Rs. 1000
Salaries Rs. 1000
Rent Rs. 1000
EB Bill Rs. 1000
Telephone Rs. 1000
Cash Purchase Rs. 1000

30.4.2013: Payment made by Petty Cash
Conveyance Rs. 150
Postage Rs. 100
Stationery Rs. 200
Staff Welfare Rs. 100
Example:
1.4.2013: Received from capital Rs. 200000
2.4.2013: Cash deposit in SBI bank Rs. 20000
Cash deposit in IOB bank Rs. 17000
Cash deposit in ICICI bank Rs. 33000
3.4.2013: Cash withdraw in SBI bank Rs. 8000
Cash withdraw in IOB bank Rs. 10000
Cash withdraw in ICICI bank Rs. 7000
4.4.2013: Cash transfer SBI to IOB Rs. 5000
Cash transfer IOBI to ICICI Rs. 10000
BILL WISE DETAILS

The details of all the sales and purchase transactions made with the debtors and creditors have to
be maintained at the invoice level. In order to maintain these details Tally.ERP 9 provides a
feature called as Bill-wise details for bill-wise accounting.
Methods of Adjustment:
New Reference:
This reference is used in a sales or purchase voucher when they were made on credit. This is
selected for new financial transactions.
Against Reference:
This reference is used during payment/receipt made against a credit sales or credit purchase
made earlier and recorded with a new reference.
Advance:
This is applicable for the payment/receipt made in advance for the future events.
On Account:
This reference is used where we are unable to adjust any payment or receipt against any specific
pending bills.
Activate:
F11: Features > Accounting Features (F1) > Maintain Bill-Wise Details Yes
> (For Non-Trading Accounts also) No
Result:
Display Ledger Outstanding Statement
Gateway of Tally > Display > Account Books > Ledger > Select (Options) > ALT+B (View Bill
Wise details)/Select the Bill-Wise button to view the bill-wise details of the customer.
Bill-Wise outstanding report:
Gateway of Tally > Display > Statements of Accounts > Outstandings >
Receivables/Payables/Ledger > ALT+F1 (Detail)
Example:
Memo Traders listed their credit transactions with their various parties
1-4-2013: Credit sales to Rani Traders Rs.60000; Bill No: S-125; Due Date: 15 days.
4-4-2013: Credit purchase from Niva Ltd for Rs. 75000; Bill No: P-66; Due Date: 15 days.
7-4-2013: Advance money received from Revathi Traders Rs.10000 for future sales;
Bill No: A-101.
10-4-2013: Received cash from Rani Traders Rs.30000; Bill No: S-125
12-4-2013: Credit sales to Revathi Traders for Rs. 75000; Bill No: S-127; Due Date: 20-4-2013
(Adjust Advance money Rs.10000 (A-101) in Against Ref)
13-4-2013: Advance amount paid to National Ltd for future purchase Rs.15000; Bill No: A-501.
14-4-2013: Received cash from Rani Traders Rs.20000; Bill No: S-125.
15-4-2013: Received cash from Revathi Traders Rs. 50000; Bill No: S-127.
18-4-2013: Paid cash to Niva Ltd Rs.40, 000; Bill No: P-66.
20-4-2013: Credit purchase from National Ltd for Rs.40, 000; Bill No: P-68.
25-4-2013: Paid cash to National Ltd Rs.20, 000 against Bill No: P-68.
CURRENCIES
Due to the globalization of business, many organizations have found the necessity to work with
more than one currency. Transactions are often made in currencies other than the home currency.
Tally.ERP 9's multi-currency feature is very powerful and allows to:
Record transactions with different currencies by allowing you to specify and change the
currency rate of exchange.
Maintain the balance of the specified account in a foreign currency.
Tally.ERP 9 uses the term base currency for the currency in which your account books are
maintained (typically in the home currency).
Activate:
F11: Features > Accounting Features > Allow Multi-Currency Yes
Gateway of Tally > Account Info > Currencies > Create
Currency Name
Shortcut Keys
Symbol
Pound
ALT+156
Yen
ALT+0165 (157)
Euro
ALT+0128
Franc
ALT+159
Dollar
Shift+4
Gateway of Tally > Account Info > Currencies > Rates of Exchange
Standard Rate: Optional field used to calculate variances from actual transaction rates.
Selling Rate: Used for Receipt Voucher where we receive in foreign currency
Buying Rate: Used for Payment Voucher where we pay in foreign currency
Entries are made by Date and Specified rate.
Note:
Press CTRL+A for saving the key. Dont press Enter key because it is repeated again.
Gateway of Tally > Account Info > Currencies > Alter (Mode) after the entry press CTRL+A.
To view the foreign exchange gain or loss: Gateway of Tally > Balance Sheet (Report)
Example 1:
1-04-09 Credit purchase for $1000 from Hi-Tech Company, USA
Buying Rate: Rs. 46/$
Selling Rate: Rs. 47/$
10-04-09 Paid $1000 to Hi-Tech Company, USA
Example 2:
1-04-09 Credit purchase for 2000 from Yuan Swang Co, China
Buying Rate: Rs. 38/
Selling Rate: Rs. 39/

14-04-09 Paid 2000 to Yuan Swang Co, China
Buying Rate: Rs. 37/
Selling Rate: Rs. 38/
Example 3:
1-04-09 Credit sales to Mr. Bill Clinton, USA worth $1000
14-04-09 Received $1000 from Mr. Bill Clinton, USA
COST CATEGORY & COST CENTRE
Cost Categories have been introduced specially for project oriented organisations as they require
allocation of resources to parallel sets of cost centres. This requirement can be achieved using
Tally.ERP 9's Cost Category feature. Any number of parallel allocations can be done as per
requirements.
Centre: Means a unit of an organisation to which transaction are allocated.
Cost Centre: means when only cost or expenses are allocated to those centres.
Activate:
F11: Features > Accounting Features (F1) > Maintain Cost Centres > Yes
More than ONE Payroll/Cost category > Yes
Gateway of Tally > Accounts Info > Cost Categories > Create
Gateway of Tally > Accounts Info > Cost Centres > Create
Example:
Paid RentRs.30000 for the following branches of Kalvi Institute on 1.4.2013
Dindigul: Rs.10000
Madurai: Re.15000
Trichy: Rs.15000
Erode: Rs.10000
Answer:
1. Gateway of Tally > Accounts Info > Cost Categories > Create
2. Gateway of Tally > Accounts Info > Cost Centres > Create
3. Accounts Info >Ledgers > Cost center are applicable : Yes
4. Accounting Voucher > Payment
5. Note: Cost Category Branches, Cost Centre Dindigul, Madurai, Trichy and Erode
Cost Centre Class
Cost Centre Classes are used to automate Cost Centre allocations in transactions. On creating a
cost centre class, you need to select it in the voucher screen before making the entry. You can
also use cost centre classes when Voucher Classes are being used.
Activate:
F11: Features > F1: Accounting Features
> Use Pre-defined Cost Centre allocations during Entry Yes
Result:
Gateway of Tally > Display > Statement of Accounts > Cost Centres > Category Summary
Cost Centre Break-up/Ledger Break-up/Group Break-up
Example:
Paid Conveyance Rs. 4000 totally for four departments namely: Accounts (20%), Computer
(30%), purchase (15%), sales (35%). Enter the cost centre
Answer:
1. Cost category Department;

2. Cost Centre: Accounts, computer, purchase, sales
3. F11: Features > Accounting Features > Use Pre-defined Cost Centre allocations during
Entry Yes. Note: Class Name: Expenses Allocation
4. Ledger Creation:
Name: Conveyance expense
Under: Indirect Expenses
Cost centre are applicable? Yes
5. Voucher Entry: Payment: Cost Centre class: Expenses Allocation
Allocation will be made automatically.
Example:
1. Kalvi institute paid salary Rs.70000/- to various departments on 1-5-2009. The details:
Accounts Department: Rs.20000
Computer Department: Rs.25000
Sales Department: Rs.10000
Purchase Department: Rs.15000
2. Rent paid Rs.50, 000 for branches
Dindigul: Rs.10000
Madurai: Re.15000
Trichy: Rs.15000
Erode: Rs.10000
3. Paid Telephone Charges Rs. 8500
101: Rs.3000
102: Rs.2000
103:Rs. 1500
104:Rs.2000
4. Paid cleaning charges Rs.6000 for Accounts Department(25%), Computer Department(20%),
Sales Department(25%), Purchase Department(30%).
Note: We define the percentage of cost, when activate in F11 features
BUDGET
The main purpose of Budgeting is to control the expenditure. This is possible by creating budgets
and comparing the budgeted figures against the actual figures. You can generate reports based on
this need and view the variances or differences between the actual and budgeted figures.
Tally.ERP 9 allows you to create multiple budgets and also maintain budgets for specific
purposes, e.g. for the Bank, for the Head Office, Marketing Budget, Finance Budget etc.
Activate:
F11: Features > Accounting Features > Maintain Budgets and Controls - Yes
Gateway of Tally > Account Info > Budgets > Create
Budget Alteration: Name: Official Budget/Expenses Budget
Under: Primary
Period of Budget: Give the period range
Area of Budget:
Group: We can set budget for groups of ledger accounts.
Ledger: Budget for individual ledger
Cost Centre: To mark for the particular cost centre for each group
Type of Budget:
On Net Transactions:
This option used for creating budgets for revenue accounts. Because the revenue accounts net
transactions should be monitored or controlled.
e.g. Telephone charges, office expenses, maintenance charges etc.
On Closing Balance:
The closing balance of non-revenue accounts like capital a/c, Bank a/c, Loans, current liability
etc should be monitored.
e.g. Credit purchase/sales, sundry debtors/creditors.

Result:
Gateway of Tally > Display > Trial Balance > ALT+B (Budget Variance)
Example:
Hi-Tech Company plans their budget on 30-4-2013 for coming May month (1.5.2013 to
31.5.2013)
Expense Budget:
Telephone Charges
2000
Office Expenses
1500
Maintenance charges
1000
Conveyance
2000
Credit purchase
25000
Advertisement Charges
3000
Steps:
1. Ledger Creation
2. Budget Creation: Account info > Budget > Create: Name: Expenses Budget
Hi-Tech Company enter their transactions on 31.5.2013
Cash paid to Telephone charges Rs. 3000, Office expenses Rs. 1000, Maintenance charges Rs.
1000, Conveyance Rs. 2500, Advertisement charges Rs. 2000.
Credit purchase made from Arun Tex Rs. 30000. Do the voucher entry on 31.5.2013 for the
above transaction.
Steps
1. Record the above transaction in payment and purchase voucher as usual
2. To view the budget result
Result: Gateway of Tally > Display > Trial Balance press ALT+B for Budget Variation
BANK RECONCILIATION STATEMENT
Reconciling the Company's Bank Accounts with the Bank Statement is a fundamental and
regular task of accounting. This process is referred to as Bank Reconciliation. It is one of the prerequisites of audit.
Methods for Reconciliation
Step 1: Display the ledger a/c of Bank (Ex: SBI Bank)
i.e Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c
Step 2: Press F7:Select the month for reconciliation and press Enter to have vouchers for that
month.
Step 3: Press F12 for configuration and activate show narration- yes. It is helpful to see the
narration as that contains cheque numbers and other details
Step 4: Press F5Reconcile appeared in the button panel for shift to reconciliation mode. A new
column appears as Bank Date.
Step 5: Enter the bank date in the Date field. For every entry of the bank date the vouchers are
reconciled.
Note: After the reconciliation done, we get only non-reconciled statements.(Vouchers). Press
F12 and set to show Reconciled voucher also Yes.
Example:
Eminent Tech, Madurai gives their Bank Transactions for the month of April 2009. They also
show their Bank pass book detail (SBI Bank, Anna Nagar)
1-4-2013: Eminent Tech, Madurai deposited cash into SBI Bank Rs.100000
2-4-2013: Software sold for credit to the following persons:
Azeer
Rs. 25000
Sounder
Rs.23000
Chellapandi
Rs.15000
Anand
Rs.30000
Vaitheki
Rs.28000
5-4-2013: Cheque received fom Azeer Rs.25000 and immediately deposited into SBI Bank for
collection (Chq.No. 5678348)
8-4-2013: Cheque received from Chellapandi Rs.15000 and immediately deposited into SBI
Bank for collection (Chq.No. 5678350)
10-4-2013: Cheque received from Anand Rs.30000 and immediately deposited into SBI Bank for
collection (Chq.No. 5678355)
15-4-2013: Cheque paid to Modern Computers Rs.15000 (Chq.No. 367890)
18-4-2013: Cheque received from Sounder Rs.23000 and immediately deposited into SBI Bank
for collection (Chq.No. 5678360)
25-4-2013: Cheque paid to Kumar Agencies for Rs.20000 (Chq.No. 367896)
BANK PASS BOOK (as on 30-4-2013)

Date
Name
Deposit(Dr)
Withdraw(Cr)
Balance
1-4-2013
Cash
100000
100000 Cr
10-4-2013
Azeer
25000
125000 Cr
13-4-2013
Chellapandi
15000
140000 Cr
20-4-2013
Anand
30000
170000 Cr
25-4-2013
Modern Comp
15000
155000 Cr
29-4-2013
Kumar Agency
20000
135000 Cr
Answer:
1. Do voucher entry for the above transactions.
2. Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c >Press F7 for April
month/ Press F5 for Reconcile
3. In Bank date column enter the date as shown in Bank Pass Book.
4. After the reconciliation: Balance as per Company books: Rs. 1, 58,000
Amounts not reflected in Bank: Rs. 23,000
Balance as per Bank: Rs. 1, 35,000
INVENTORY VOUCHER
Inventory accounting includes recording of stock details like the purchase of stock, the sale of
stock, stock movement between storage locations or godowns and providing information on
stock availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting
systems so that the financial statements reflect the closing stock value from the Inventory
system.
Group is the collection of ledger of the same nature.
Stock Group are provided to help the classification of stock items
Stock Categories offers a parallel classification of stock items
Godown is a place where stock items are stored
Unit of Measure
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is
measured by units. In such cases, it is necessary to create the Unit of Measure. The Units of
Measure can either be simple or compound. A Compound Unit is a combination of two simple
units of measure. Examples of simple units are: nos., metres, kilograms, pieces etc. Examples for
compound units are: a box of 10 pieces etc. Create the Units of Measure before creating the
Stock Items.
Gateway of Tally > Inventory Info. > Units of Measure > Create.(Unit Creation)
Let us create the unit Nos.
1. Type: Simple
2. Symbol: Nos
3. Formal Name: Numbers
4. Number of Decimal Places: 0
Unit of Measure
Simple Units
Symbol
Compound Units
Number
No
Doz of 12 No
Meter
Mtr
Box of 50 Pack
Kilogram
Kg
Box of 25 Pack
Litre
Ltr
Box of 25 No
Box
Box
Pack of 100 No
Pack
Pk
Dozen
Doz
Order Voucher:
1. Purchase Order (Alt+F4)
2. Sales Order (Alt+F5)
Inventory Voucher:
3. Rejections In (Ctrl+ F6)
4. Rejections Out (Alt+F6)
5. Stock Journal (Alt+F7)
6. Delivery Note (Alt+F8)
7. Receipt Note (Alt+F9)
8. Physical Stock (Alt+F10)
Activate:
F11: Features > Inventory Features (F2) > Use Tracking Numbers (Delivery/Receipt Notes)Yes
Use Rejection inward/outward notes Yes
Purchase Order (Alt+F4):

Records placing an order for stock items to suppliers.
Sales Order (Alt+F5):
Records order details for stock items received from customers.

Rejections Out (Alt+F6): (Purchase Return)
Records rejected stock details returned to suppliers. Used to record the goods returned to the
supplier
Rejections In (Ctrl+ F6): (Sales Return)
Records rejected stock details received from customers. Use to record the rejection by the
customer which is delivered already. Used to record the goods returned from the customer
Stock Journal (Alt+F7):
Essentially records the transfer of stock from one Godown to another. This voucher type is used
to record godown adjustments like transfer of goods from one godown to another godown or
manufacturing unit or goods is entered in destination.
Delivery Note (Alt+F8):
Records delivery of new stock to customers. Delivery note is an authentication for the goods
delivered to a customer. This voucher type used to record delivery of goods to customer
without invoice. Movement of goods is recorded without affecting the financial goods.
Receipt Note (Alt+F9):
Records receipt of new stock from suppliers. Used to record the goods received from the
supplier without purchase invoice. It is an authentication for the goods received.
Physical Stock (Alt+F10):
Records the physical stock count as the new stock balance. If any difference between actual
stock and stock report from Tally, change can be made by adjusting the stock using this voucher.
Tally.ERP 9 considers the stock available based on the entry made in a physical stock voucher.
Example:
Accounts with Inventory
1-4-2013: Received from capital by cash Rs. 5, 00,000

2-4-2013: Cash deposited into SBI Bank Rs. 2, 00,000
5-4-2013: Purchase from Royal Textiles
Cotton saris
50nos at
Rs. 300/nos
Chudithar
50nos at
Rs. 400/nos
7-4-2013: Purchase from Kishore Textiles

Cotton saris
50nos at
Rs. 300/nos
Chudithar
50nos at
Rs. 400/nos
10-4-2013: Purchase from Santhose Textiles

Cotton saris
50nos at
Rs. 300/nos
Chudithar
50nos at
Rs. 400/nos
T-shirt
100nos at
Rs. 100/nos
Jeans
100nos at
Rs. 1000/nos
11-4-2013: Sales to London store

Cotton saris
60nos at
Rs. 500/nos
Chudithar
60nos at
Rs. 750/nos
T-shirt
60nos at
Rs. 1000/nos
Jeans
60nos at
Rs. 1300/nos
17-4-2013: Cash sales

Cotton saris
40nos at
Rs. 500/nos
Chudithar
40nos at
Rs. 750/nos
T-shirt
20nos at
Rs. 1000/nos
Jeans
20nos at
Rs. 1300/nos
TNGST (Tamil nadu state government sales tax) 4%

20-4-2013: Payment by cheque
Royal Textiles Rs. 25000
Kishore Textiles Rs. 25000
Santhose Textiles Rs. 100000
22-4-2013: Received cheque London store Rs. 2,00,000

25-4-2013: Payment made by cash
Petty cash Rs.2000
Furniture Rs.25000
Salary Rs.30000
Wages Rs.25000
Carriage inwards Rs.4000
Rent Rs.10000
EB Rs.5000
Telephone Rs.8000
26-4-2013: Payment made by petty cash
Postage Rs.300
Conveyance Rs.250
Stationery Rs.150
Staff Welfare Rs.200
Maintenance Rs.250
General Expenses Rs.150
Example:
Accounts with Inventory
1-4-2013: Received from capital by cash Rs. 5, 00,000

2-4-2013: Cash deposited into UCO Bank Rs. 2, 00,000
7-4-2013: Credit Purchase from Govind Electricals
Ceiling Fan
100nos at
Rs. 800/nos
Table Fan
100nos at
Rs. 1000/nos
Mixie
100nos at
Rs. 1500/nos
Grinder
100nos at
Rs. 2000/nos
10-4-2013: Credit sales to Ram Electricals

Ceiling Fan
70nos at
Rs. 1000/nos
Table Fan
70nos at
Rs. 1500/nos
Mixie
70nos at
Rs. 2000/nos
Grinder
70nos at
Rs. 2500/nos

15-4-2013: Cash sales
Ceiling Fan
10nos at
Rs. 1000/nos
Table Fan
10nos at
Rs. 15000/nos
Mixie
10nos at
Rs. 2000/nos
Grinder
10nos at
Rs. 2500/nos

Cash discount on total sales value (-5%)
15-4-2013: Paid to cheque Govind Electricals Rs. 2,00,000
20-4-2013: Received cheque from Ram Electricals Rs. 3,00,000
23-4-2013: Payment made by cash
Petty cash Rs.2000
Furniture Rs.15000
Salary Rs.100000
Wages Rs.7000
Carriage inwards Rs.1500
25-4-2013: Payment made by petty cash
Postage Rs.150
Conveyance Rs.200
Stationery Rs.150
Staff Welfare Rs.20

TRACKING NUMBER
Generally in business, deliver the stock with delivery note and receive the stock with receipt
note. The bill will be raised later. The bill has to be linked or tracked with the goods already
delivered/received when the bill is made.
'Tracking' the delivery or receipt of inventory, is purely an inventory-related activity. Tracking
number option is an additional facility which provides links between transactions.
Tracking number links the different accounting and inventory vouchers as follows:
1. Receipt note with purchase vouchers
2. Delivery note with sales voucher
3. Rejections-in with credit note
4. Rejections-out with Debit note
Activate:
F11: Features > Inventory Features (F2) > Use Tracking Numbers (Delivery/Receipt Note) Yes
Use Rejection inward/outward notes Yes
Result:
Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending
Sale Bills Pending
Example:
Poorvika Mobile store purchased from Nokia Co, Chennai for credit
1-4-2013: Received the following items with Receipt note (Ref No/Tracking No: R-101)
N100 50Nos @
Rs.1500/No
N300 25Nos @
Rs.1800/No
5-4-2013: Received the invoice (Purchase Bill No: P-300) from Nokia Co, Chennai for the goods
received on 1.4.2013 (Ref No/TrackingNo.R-101)
Answer:
1. Inventory Voucher > Receipt Note (ALT+F9)

2. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending
Goods Received but bills not Received
3. Accounting Voucher > Purchase (F9)
4. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending
Note: Since we received both goods and bills for Nokia Co, Chennai so there is no report in
purchase bills pending
Example:
Universal Mobile store purchased from Motorola Co, Chennai for credit
1-4-2013: Received the following items with Receipt Note (Ref No/TrackingNo.R-966)
W230 25Nos @
Rs.2000/No
Z750 25Nos @
Rs.2200/No
5-4-2013: Received the invoice (Purchase Bill No: 225) from Motorola Co, Chennai for the
goods received on 1.4.2013 (Ref No/TrackingNo.R-966)
8-4-2013: Delivered the following items with Delivery note to Neelavathi Mobiles, Madurai (Ref
No/TrackingNo.D-456)
W230 10Nos @
Rs.2200/No
Z750 15Nos @
Rs.2500/No
12-4-2013: Send the sales bill to Neelavathi Mobile, Madurai for the good delivered on
8-4-2013(Ref No/Tracking No: D-456) Sales Bill No:S-875
ORDER PROCESSING
Order Processing refers to placing orders with suppliers for purchasing from them or receiving
orders from customers for the purpose of selling.
In Tally.ERP 9, Order Processing is linked to Inventories. We can compare the sales or purchase
order, delivery notes and receipt notes and know the pending status of the order.
Activate:
F11: Features > Inventory Features (F2) > Allow Purchase Order Processing - Yes
Allow Sales Order Processing Yes
Use Tracking Numbers (Delivery / Receipt Notes) - yes
Result:
Gateway of Tally > Display > Statements of Inventory > Sales order Outstandings
Purchase order Outstandings
Example:
1-4-2013: Poorvika Mobiles, Dindigul make the following purchase order to LG Mobiles Co.
Bangalore. Cell phones:
L445 50No @
Rs.2500/No
L777 50No @
Rs.2800/No
Purchase Order No: PO-101

Due on: 6-4-2014
7-4-2013: Received the ordered items from LG Mobiles Co. Bangalore for the purchase order
No: PO-101. Ref. No./Tracking No:R-105
Answer:
1. Enter purchase order (ALT+F4)
2. To view order position: Gateway of Tally > Display > Statements of Inventory >
Purchase order outstanding
3. Enter Receipt Note (ALT+F9)
4. To view order position: Gateway of Tally > Display > Statements of Inventory >
Purchase order outstanding > All Orders
Note: Since the purchase order is cleared there will be no purchase order details.
Example:
New Century Book House, Madurai
Opening Stock as on 1-4-2013
English Grammar
10 no @
Rs.120 each
Business Ethics
50 no @
Rs.95 each
Modern Science
50 no @
Rs.115 each
Micro biology
50 no @
Rs.140 each
Bio-Chemistry
75 no @
Rs.130 each
New Century Book House, Madurai shows the following business transactions for the month of
April 2014
1-4-2013: Purchase order to S.Chand Co. Delhi Order No: PO-150, Due on:8.4.2013
Advanced Accountancy
100 no @
Rs.200 each
Company Law
75 no @
Rs.120 each
Business Organization
75 no @
Rs.80 each
Cost Accounting
50 no @
Rs.175 each
5-4-2013:Sales order received from PR Book shop, Trichy Order No:SO-215, Due on:10-4-2014
Business Ethics
10 no @
Rs.95 each
Modern Science
15 no @
Rs.115 each
Micro biology
25 no @
Rs.140 each
Bio-Chemistry
30 no @
Rs.130 each
7-4-2013: Received goods from S.Chand Co for purchase order No:PO-150, Ref:R-801,
Tracking No:R-801.
8-4-2013: Purchase Bill Received from S.Chand Co for Receipt Note No:R-801, Bill No:P-2001
10-4-2013: Good delivered to PR Book Shop for Sales order No: SO-215, Ref: D-1300, Tracking
No: D-1300
11-4-2013: Sales Bill made to PR Book shop for Delivery Note No: D-1300, Bill No: S-3001
BATCH-WISE DETAILS
Batch details are used to identify the movement of inventory in batches or lots. Although this is a
requirement primarily of the pharmaceutical industry, the same can be used by other industries
that maintain or manufacture perishable goods. Many organisations also purchase in batches in
order to monitor the result of the batch purchased individually. Hence, Tally.ERP 9 has used the
term Batch/Lot.
Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the
expired date. Expiry date cannot be prior to the voucher date.
Activate:
F11: Features > Inventory Features (F2) > Maintain Batch-Wise details - Yes
(Set Expiry Dates for Batches) Yes
Gateway of Tally > Inventory Info > Stock Items > Maintain in Batches Yes
Track Date of Mfg - Yes
Use Expiry Dates - Yes
Result:
Gateway of Tally > Display > Inventory Books > Ageing Analysis
Example:
Reliance store furnishes the following details
On 1-4-2013 purchased for cash
Products
Batch No
Mfg Date
Expiry Date
Qty
Rs.
Parle-G
101
1-5-2013
1-5-2014
100pack
5/pack
Good Day
102
1-4-2013
1-6-2014
75pack
10/pack
Britannia
103
1-3-2013
1-9-2014
120pack
8/pack
50-50
104
1-2-2008
1-12-2014
50pack
6/pack
On 1-4-2013 sold for cash

Products
Batch No
Mfg Date
Expiry Date
Qty
Rs.
Parle-G
101
1-5-2013
1-5-2014
40pack
6/pack
Good Day
102
1-4-2013
1-6-2014
25pack
12/pack
Britannia
103
1-3-2013
1-9-2014
30pack
10/pack
50-50
104
1-2-2008
1-12-2014
20pack
7/pack
USE DIFFERENT BETWEEN ACTUAL & BILLLED QUANTITY

Bill is made only for Actual goods not for free goods. But the stocks contain both billed and
actual quantity.
Activate:
F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty - Yes
Result:
Gateway of Tally > Stock Summary
Example:
1 pack of Hamam soap is given free on every 3 pack of Hamam soap Rs.15/soap
1 Bottle of Lion Date Syrup is given free on every 1 bottle purchased Rs.80/bottle
Note:
Actual quantity will update stock and billed quantity will be used to compute transaction value.
TRACK ADDITIONAL COST OF PURCHASE
The cost of an item is the rate at which the item is purchased. However, there are other expenses
like Packing charges, Freight charges, Cartage incurred, etc. which add to the cost of purchasing
the item. Thus, the additional cost details are required to be added to the actual cost of purchase.
Purchase cost includes all those expenses related to purchase. The use of this option are known
as the Effective rate of purchases
Activate:
F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty Yes
Track additional cost of purchase - Yes
Result:
Gateway of Tally > Display > Inventory Books > Stock Item
Example:
1-4-2013: Purchased writing board from Newply Co. 100 nos @ Rs. 80/no (Credit Purchase)
Additional Cost Details: Sales Tax 4%, Packaging Charges Rs.100, Carriage Rs.100
Bill Details:
1-4-2013
Newply Co
Bill No: 525
Particulars
Qty
Rate (Rs.)
Writing Board
100nos
80
Total (Rs.)
8,000
Additional Cost:
Sales Tax (4%)
300
Packaging Charges
100
Carriage
100
8,520
Answer:
Ledger and stock item creation
Voucher entry Enter in voucher format (CTRL+V)
Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Item Analysis >
Select the item Press enter key. Form that screen press F12: Configure set yes to all option.
BILL OF MATERIALS
In manufacturing process product will be produced with many components or spare parts or raw
materials. These goods are called Bill of Materials.
The BOM should be available while manufacturing an item. Hence, first enable manufacturing
entries. This is done through a stock journal. It is wise to create a new voucher type
Manufacturing journal which is based on stock journal. Stock journal is used as manufacturing
journal
Activate:
Gateway of Tally > F12: Configure > Accts/Inventory Info > Allow component list details (Bill
of Materials) Yes
Result:
Gateway of Tally > Display > Inventory Books > Stock Item
Example:
Following is the opening stock of Vicco Laboratories on 1-4-2013
Ingredients
Opening Qty
Rate
Babhul
500 gm
0.25/gm
Manji
500 gm
0.25/gm
Bor
500 gm
0.25/gm
Vajradanthi
500 gm
0.25/gm
Bakul
500 gm
0.25/gm
Maifal
500 gm
0.25/gm
To manufacture 100gm/1 unit of Vicco Tooth powder needs the following components
Ingredients
Qty (gms)
Babhul
16
Manji
16
Bor
22
Vajradanthi
14
Bakul
22
Maifal
10
On 1-4-2013 Vicco Laboratories, manufactured 100 units of Vicco Tooth Paste

Additional Cost: Wages Rs.300, Power Rs.60
Steps:
1. Voucher Type creation : Gateway of Tally > Accounts Info > Voucher Type > Create
Manufacturing Journal Stock Journal. Use as Manufacturing Journal - Yes
2. Units of Measure Create Compound units 1 unit of 100gms
3. Stock Item Creation: 1. In Component stock item creation screen ex. Babhul
Set component (BOM)? No. Create other Component stock item
2. In Main Stock item creation screen (ex. Vicco Tooth Powder)
Set component (BOM)? Yes
Components of: Vicco Tooth Powder
of Manufacture :1 Unit
Unit
4. Voucher Entry: Voucher Type > Stock Journal (ALT+F7) > Select Manufacturing Journal.
In Manufacturing Journal:
(a) Name of the Product: Vicco Tooth Powder
Qty: 100 unit
Now tally automatically fill the component details
(b) Provide Additional Cost details for power and wages
Example:
Following is the opening stock of Raj Health Products on 1-4-2013
Ingredients
Opening Qty
Rate
Wheat
1500 gm
3/gm
Maize
1500 gm
4/gm
Soya Beans
1500 gm
5/gm
Rice
1500 gm
2/gm
Beans
1500 gm
4/gm
To manufacture 500 gm/1 unit health powder needs the following components
Ingredients
Qty (gms)
Wheat
75
Maize
125
Soya Beans
100
Rice
150
Beans
50
On 1-4-2013 Raj Health products manufactured 5 units of Health powder

Additional Cost: Wages Rs.500, Power Rs.100
PRICE LIST
Price List refers to a list of items maintained by an organisation along with their price details. A
price list is generally used by organisations which deal in multiple products. Price Lists are
maintained in various structures for different types of buyers (customers), viz., Wholesalers,
Dealers, Retailers, etc. The price list is structured based on the classification of buyers and is
referred to at the time of making sales. Whenever the sale prices change (on the basis of time),
the changes reflect in the Price List also. In case of bulk sales, discounts can also be given to the
buyers.
Usage:
Various price lists available
a) For classes of business like whole sale, retail, export and dealership.
b) For different geographical areas.
c) For quantity and volume.
Activate:
F11: Features > Inventory Features (F2) > Use Multiple Price Levels Yes
Company Price Levels > 1) Whole Sales
2) Retail Sales
3) Export
4) Dealerships
Gateway of Tally > Inventory info > Stock Groups
Stock Items
Units of Measure
Price List (Set the price list)
Result:
Gateway of Tally > Stock Summary (Reports)
Note: Cash sales/purchase never mentioned their name in Voucher
Example:
Opening stock of Saranya Book store as on 1-4-2013
Accounts Book 350Nos
Maths Book 400Nos
English Book 500Nos
Following are the price list of Saranya Book Store, Madurai on 1-4-2013
(A)Retail Price
Account Book
Less than 50Nos
Rs. 400
50 to 100Nos
Rs. 390
More than 100Nos
Rs. 375
Maths Book
Less than 40Nos
Rs. 325
40 to 80Nos
Rs. 310
More than 80Nos
Rs. 300
English Book
Less than 50Nos
Rs. 350
50 to 100 Nos
Rs. 325
More than 100Nos
Rs. 315
(B) Whole Sales

Account Book
Less than 50Nos
Rs. 315
50 to 100Nos
Rs. 300
More than 100Nos
Rs. 295 (Disc 2%)
Maths Book
Less than 40Nos
Rs. 950
40 to 80Nos
Rs. 550
More than 80Nos
Rs. 350 (Disc 1%)
English Book
Less than 50Nos
Rs. 335
50 to 100 Nos
Rs. 300
More than 100Nos
Rs. 280
15.4.2013: Sold to Neelavathi Book Shop (Whole sales) for credit

25.4.2013: Sold to New Century Book Shop (Retail sales) for cash
26.4.2013: Sold to Anitha Book Shop (Whole sales) for credit
28.4.2013: Sold to Deepika Book Shop (Retail sales) for cash
Value Added Tax (VAT)

Value Added Tax (VAT) is an indirect tax on goods, introduced in lieu of sales tax, to ensure
transparency and greater compliance. The basic premise of VAT is to levy tax on the true value
added to the goods, at each stage in the transaction chain.
This ultimately reduces:
Tax paid to the government.
Cost/tax passed on to the customer.
Activate:
F11: Features > Statutory & Taxation (F3) > Enable Value Added Tax Yes
Set/Alter VAT Details Yes
VAT Computation Report
Depending on the Input VAT paid during purchases and the output VAT availed on sales, VAT
Refundable or Payable is calculated in this section by Tally.ERP 9. The difference between Input
VAT and Output VAT = VAT Refundable.
Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation
Input Tax - Tax paid on purchase
Output Tax Tax paid on sales
VAT Rates:
Vat @ 1%: Goods like gold, silver, precious metals and stones etc.
Vat @ 4%: Largest no of goods (270) which include commodities used in daily life, drugs,
medicines, agriculture, industrial inputs, capital goods and declared goods.
Vat @ 12.5%: The remaining items are under this rate.
Goods outside VAT: Items whose prices are not fully marketed determined. E.g. Liquor, lottery
tickets, petroleum products
Exempted from VAT: It is a list of 40 commodities which includes natural and unprocessed
products in unorganized sector
PAYROLL
Payroll refers to a series of accounting transactions involved in the process of paying employees
for the services rendered after taking all the statutory and non-statutory deductions into account,
in conformance with the terms of employment, company policy and the law of the land i.e.,
payment of payroll taxes, insurance premiums, employee benefits and other deductions.
Tally payroll is integrated with accounting to give the user the benefit of simplified payroll
processing and accounting. Tally payroll enables user to setup and implement salary structure
ranging from simple to complex as per the organization requirement.
Activate:
F11: Features > Accounting Features (F1) > Maintain Payroll Yes
More than ONE Payroll/Cost Category Yes
F11: Features > Statutory & Taxation (F3) > Enable Payroll Statutory - Yes
Set/Alter Payroll Statutory Details - Yes
Result:
Gateway of Tally > Payroll Reports > Statements of Payroll
STEP 1:
Gateway of Tally > Payroll Info > Units (Work) > Create > Unit Creation
Simple Unit: Month, Day, Hour, Minutes
Compound Unit: Month of 26 Days, Hours of 60 Minutes
STEP 2:
Gateway of Tally > Payroll Info > Attendance/Production Types > Create
Name
Attendance Type
Present
Attendance/Leave with pay
Absent
Leave without pay
Overtime
Production
Paid Leave
Attendance/Leave with pay
Unpaid leave
Leave without pay
STEP 3:
Gateway of Tally > Payroll Info > Employee Groups > Create
Employee Group: Manager, Supervisor, Administrator, Marketing
STEP 4:
Gateway of Tally > Payroll Info > Employees

Employee Name and details
STEP 5:
Gateway of Tally > Payroll Info > Pay Heads > Create
Pay Head Type
Earning for Employees
Deduction from Employees
Employee Statutory deductions
Employers statutory Contributions
Gratuity
Loans and Advances
Reimbursements to Employees
(1)Basic Salary
Pay Head Type: Earnings for Employees
Income Type: Fixed
Affect Net Salary? Yes
Name to appear in Payslip: Basic Salary
Use for Gratuity? No
Calculation Type: On Attendance
Attendance/Leave with pay: Present
Calculation Period: Months
Per Day Calculation Basis: As per calendar period
(2)HRA
Income Type: Fixed

Name to appear in Payslip: HRA
Calculation Type: As Computer Value
Computation Info: Compute: On Specified Formula
Specified Formula: Basic Salary Enter Values
(3)Conveyance
Income Type: Fixed
Name to appear in Payslip: Conveyance
Calculation Type: Flat Rate
(4)DA
Income Type: Fixed
Name to appear in Payslip: DA

(5)PF
Pay Head Type: Deductions from Employees
Under: Current Liabilities
Name to appear in Payslip: PF
(6)Professional Tax
Pay Head Type: Employees Statutory Deductions
Name to appear in Payslip: Professional Tax
Computation Info: Compute: On Current Earnings Total (Slab Type Value)
(7)Gratuity
Pay Head Type: Gratuity
(8)Salary Payable Ledger
Pay Head Type: Not Applicable

STEP 6:
Gateway of Tally > Payroll Info > Salary Details > Define > Name of Employee/Group (select)
Effective from > Date
Pay Head > Copy for Employee Group/ Start Afresh
STEP 7:
Gateway of Tally > Payroll Vouchers > Attendance (CTRL+F5)
Payroll (CTRL+F4)
Attendance Voucher: Select Employee Name, Present, Absent, Paid Leave
Payroll Voucher: ALT+A for Autofill. Now a screen Employee Filters appear
Employee Group: Ashok, Payroll Ledger : Salary Payable
STEP 8:
Gateway of Tally > Accounting Voucher > Payment (F5)
Enter only in single entry mode (F12: Configure)
Account: Cash; Press ALT+A, Select salary payable and press enter. Now tally
Automatically transfer the salary amount employee a/c is debited and cash a/c is credited.
Display:
Gateway of Tally > Payroll Reports > Statements of Payroll
Example:
Eminent Technologies provide the salary details for the month of April 2013
Employee Name
M. Amala
S. Bala
C. Chandru
Employee Group
Manager
Supervisor
Administrator
Designation
Assistant Manager
Lab in Charge
System Administrator
Employee Number
101
102
103
Employee I.T.PAN
TN239800PP
TN233459PP
TN235674PP
Bank Detail
6601, SBI, MDU
6602, SBI, MDU
6607, SBI, MDU
Basic Salary
Rs. 12, 000
Rs. 8,000
Rs. 10,0000
HRA
Upto Rs. 5000 -> 3%
Upto Rs. 5000 -> 3%
Upto Rs. 5000 -> 3%
Upto Rs. 5000 -> 4%
Upto Rs. 5000 -> 4%
Upto Rs. 5000 -> 4%
Rs.3000
Rs.2000
Rs. 3000
6%
7%
8%
Ref *
Ref *
Ref *
Salary Heads
Monthly Payments
DA
Upto Rs. 8000 -> 3%

Above Rs. 8000-> 4%
Conveyance
PF
Professional Tax
Gratuity
25days upto 24months 25days upto 24months 25days upto 24months
Attendance Details
Month Days
26
26
26
Present
22
20
21
Absent
Paid leave
Unpaid Leave
Over Time
Net Salary
From Amount
Amount upto
Slab Type
Value Basis
3,000.00
Value
Professional Tax (Ref.No.1)*:
3,000.00
4,999.00
Value
30
4,999.00
7,999.99
Value
60
7,999.99
9,999.99
Value
100
9,999.99
14,999.99
Value
150
14,999.99
Value
200
SHORT CUT KEYS

FUNCTION KEY COMBINATION
Function Key
F1
CTRL+F1
F2
Functionality
Availability
To select Company
At all masters menu screen
To select Accounting Features
F11: Features Screen
To select payroll vouchers to alter
At Accounting/Inventory Voucher
Creation & Alteration screen
To change the current date
AT almost all screen in Tally
To select Inventory Features
CTRL+F2
To select order buttons
To select the company
AT almost all screen in Tally
F3
To select Statutory and Taxation

Features
F4
To select the Contra Voucher
F5
To select the payment voucher
F6
To select the Receipt Voucher
To select the rejection in voucher
F7
To select the Journal Voucher
F8
To select the Sales Voucher
To select the credit note Voucher
F9
To select the Purchase Voucher
CTRL+F9
To select the debit note Voucher
F10
To select the Reversing Journal

Voucher
CTRL+F10
To select the Memorandum Voucher
F11
To select the functions and features

screen
At almost all screens in Tally
F12
To select the configure screen
At almost all screens in Tally
CTRL+F6
CTRL+F8
NAVIGATION KEYS
Keys
Functionality
Availability
Pg up
To display previous voucher during

voucher entries/alter
At voucher entry and alteration screen
Pg dn
To display next voucher during

voucher entries/alter
At voucher entry and alteration screen
Enter
To accept anything typed into a field.

To accept a voucher or master
At almost all areas in tally
To remove what you typed into a field.

To come out of a screen
At almost all screens in tally
Collapse next level details
At voucher register screen and Trail

balance report
To alter a master while making an

entry or viewing a report
At all Reports
Esc
Shift+Enter
CTRL+Enter
SPECIAL FUNCTION KEY

Function Key
ALT+F1
Functionality
Availability
To close/shut the company
At all menu screens
To view detailed report
At almost all report screens
To explode a line into details
To select the inventory voucher to alter At Accounting Voucher Creation &

Alteration screen
ALT+F2
To change the period
ALT+F3
To select the company info (To

create/alter/shut a company)
At gateway of Tally screen
ALT+F4
To select the purchase order voucher
To select the sales order voucher
To view monthly and quarterly report
At almost all report screens in Tally
To select the Rejection out voucher
To select the stock journal voucher
To accept all audit list
At tally audit listing screen
To select the Delivery Note voucher
To view the columnar report
At ledger voucher screen
ALT+F9
To select the Receipt Note voucher
ALT+F10
To select the physical stock voucher
ALT+F12
To filter the information based on

monetary value (Range)
At almost all report screens
ALT+F5
ALT+F6
ALT+F7
ALT+F8
CTRL+M
To access the Gateway of Tally
CTRL+N
To access the calculator/ODBC server frame
CTRL+A
To accept as it is on the screen/Saving
CTRL+Q
Quit the screen without making any change
CTRL+V
Voucher Mode
CTRL+Enter
To alter a master while making an entry or viewing report
Enter
To accept information typed into a field
Esc
To exit a screen
ALT+C
Create master at a voucher screen
ALT+D
Delete single ledger/Voucher
ALT+X
Cancel Voucher
ALT+P
Print
ALT+I
Print preview
ALT+2
Duplicate Voucher
F1
Select company/ Accounts Button
ALT+F1
Inventory Button/Shut Company
CTRL+F1
Payroll Button
ALT+F3
Company Info
F2
Date
ALT+F2
Period
CTRL+F2
Order Button
Problem: 1
1.
2.
3.
4.
5.
6.
7.
Mr. Ram started business with cash Rs. 3, 00,000.

Purchases 10 Ctvs from ABC & Co @ Rs. 15,000 each.
Purchases 15 Ctvs for cash @ Rs. 15,000 each.
Paid carriage on purchases Rs. 500.
Cash sales 10 Ctvs @ Rs. 20,000 each.
Sales to Shalimar & co 15 Ctvs @ Rs. 20,000 each.
Paid salaries Rs. 4,000 & Rent 1,000.
Answers:
Gross Profit: 1, 24,500 Net profit: 1, 19,500
B/S: 5, 69,500
Problem: 2
1.
Mr. Gandhi commenced business with cash Rs. 5,00,000
2.
3.
4.
5.
6.
7.
8.
9.
10.
Purchase Furniture worth Rs. 80,000 for business use.

Deposited in ICICI bank Rs. 1,00,000
Purchase Office desk paid by cheque Rs. 2,000
Purchase 10 CD players from Aiwa & co.@Rs. 7000 each
Paid carriage Rs. 250
Sold 5 CD players for cash @Rs.9000 each.
Sold 5 CD players to X & Co. @Rs.9000 each.
Paid Salaries Rs. 3,000
Paid Rent Rs.2,500.
Answers:
Gross Profit: 19,750
Net Profit: 14,250
B/S: 5,84,250
Problem: 3
1. Mr. R.S. Reddy started business with capital Rs. 3, 00,000.
2. Purchase from XYZ & Co.
50 Shirts @ Rs. 150 each
100 Trousers @ Rs. 200 each
3. Cash Sales
4. Sales to Vijay & Co
5. Paid to XYZ & Co. Rs. 25,000.
6. Received Cash from Vijay & Co. Rs. 10,000.
7. Paid Salaries Rs. 3,000.
8. Paid Rent Rs. 2,000.
Answers:
Gross Profit: 7,500 Net profit: 2,500
B/S: 3, 05,000
Problem: 4
1. Mr. Leave started business with capital Rs. 5, 00,000.
2. Purchase from A-Z furniture.
50 Tables @ Rs. 200 each
200 Chairs @ Rs. 150 each
3. Cash Purchase
20 Boards @ Rs. 5,000
4. Sales to Princess Esen School

5 Boards @ Rs. 400 each
5. Cash Sales
10 Boards @ Rs. 400 each
Charge 10 % Sales Tax
6. Returned to A-Z furniture
5 Tables, 10 Chairs
7. Paid to A-Z furniture Rs. 15,000
8. Received cash from Princess Esen School in full settlement of his account.
9. Paid Salaries Rs. 5,000 & Rent Rs. 2,000.
Answers:
B/S: 5, 30,150
Net profits: 4,750

Closing Stock: 8,250
Problems 5
1. Mr. Babu started business with cash Rs.5,00,000
2. Purchased 15 audio systems @Rs.5,000 each for cash
3. Paid carriage on purchases Rs.200
4. Sold 10 audio systems @Rs.6500 each for cash+10% sales tax.
5. Sold 3 audio systems @Rs.6500 to Mr.Vikrant+10% sales tax
6. Cash withdrawn from business for personal use Rs.10,000
7. Paid Salaries Rs.5,000
Electricity charges Rs.1,000
Rent Rs.2,000
Answers:
Closing stock: 10,000
Net Profit: 11,300

Balance Sheet: 5,09,750
Choose the Answer:

1. We can change the Company Information from
a. Company Info > Back up b. Company Info > Split Company Data
c. Company Info > Alter
d. None of these
2. Company Restore option is available in

a. Company Features b. Company Information
c. Configuration
d. None of these
3. Tally package is developed by

a. Peutronics b. Tally Solutions
c. Coral Softwares
d. Vedika Softwares
4. In general the Financial year from shall be from

a. 1st April of any year b. 31st March of any year c. All of them are true d.None of these
5. We can Modify an existing Company from

a. Company Info > Alter b. Company Info > Alter Company c.Gateway of Tally > Modify
Company
d.
None of these
6. To change Current Date from Gateway of Tally press the key
a. F1
b. F5
c. F2
d. F9
7. Party account can be created through

a. Group creation window
b. Ledger creation window
c. Inventory creation window
d. Any one of them
8. A ledger may get declaration space for its Alias through

a.
F12
b.
F11
c.
Alt + F1
d.
Alt + F2
9. F12 is known as
a.
Company Features
b.
Company Configuration
c.
Accounting Features
d.
None of these
10. What is the utility of Tally Vault Password?

a.
It will lock the period of Company
It will lock all voucher entries for that Company
c.
It will not show the Company Name in the Company Select List.
d.
None of these
11. We can show Bill wise details of Debtors and Creditors by activating
a.
Bill by bill
b.
c.
Maintain References d.
Maintain Bill wise Details

None of these
12. The shortcut key to quit from Tally is

a. Ctrl + L
b.
Ctrl + P
c.
Ctrl + M
13. A Ledger can't be deleted if it is caring Opening Balance:
d. Ctrl+Q
a. True
b. False
14. How many inbuilt Accounts group are in tally by default?

a.
29
b.
31
c.
25
d.
34
Ctrl + A
d.
Ctrl + B
15. The shortcut used to activate calculator is

a.
Ctrl + N
b.
Ctrl + M
c.
16. Suspense Account Group is defined under

a. Income
b. Expenditure
c. Liabilities d. Assets
17. To activate MRP feature from Gateway of Tally initially we need to press
a.
F11
b.
F12
c.
F10
d.
Alt + F1
18. MRP formula for inclusive of vat is

a.
c.
{vat%*(MRP * QTY)}/100
Both a & b
b.
(100*rate of vat)/(100+rate of vat)
d.
None of these
19. Manufacturing Journal creates based on

a. Journal
b. Receipt Note
c. Stock Journal
d. Purchase Quotation
20. To create Manufacturing Journal which option must be activated

a.
Use Common Narration
b.
Narrations for each entry
c.
Prefill with Zero
d.
Use as manufacturing Journal
21. How many types of Measurement Units we can create in Tally?

a. 2
b. 3
c.5
d. Unlimited
22. To activate Job Costing which options require to be activated?

a. Maintain Cost Centre
b.
c. Both a & b
d.
Use Cost Centre for Job Costing

None of these
23. Multiple Godowns are activated from

a.
F11
b.
F11 > F1
c.
F11 > F2
d.
F11 > F3
Two
d.
Four
24. There are _________ predefined ledgers

a.
One
b.
Three
c.
25. We can see list of Memorandum Vouchers from

a. Cash/Bank Books b. Exception Reports c. Accounts Books d. Trail Balance
26. To print a voucher from Tally we need to press
a. Ctrl + P
b. Shift + P
c. Alt + P
d. Ctrl + Alt + P
27. We can see Working Capital figure changing

a. Voucher configuration
b. Profit & Loss configuration
c. Balance Sheet configuration
d. Ledger configuration
28. Input Vat Ledger is created under which account?

a. Duties & Taxes b. Sales
c. Sales Return
d. None of these
29. We can create multiple users in Tally activating

a. Tally Audit b. Use Security Control c. Both (a) and (b)
d. None of these
30. Allow components list details (Bill of Materials) option is activated for
a. Ledgers
b. Cost Category
c. Stock Items
d.
Budgets
31. Retained Earnings is an alias of

a. Indirect Income b. Reserve and Surplus c. Capital Account
32. We can repeat narration by pressing
a. Shift + R
b. Alt + R
33. What is MRP?
c. Ctrl + R
d. Alt + Shift + R
d. Investments
a. Market Price b. Maximum Retail Price c. Marginal Price d. Minimum Retail Price
34. We can use Stock Journal for
a.
Production and Consumption
b.
Inter Godown transfer for stock
c.
Both (a) and (b)
d.
None of these
35. Discount Column is available in

a. Sales Invoice
b. Purchase Invoice
c. Both (a) and (b)
d. None of these
36. We can get the report of Interest from

a. Account Books b. Cash and Fund flow c. Inventory Books
d. Statements of Accounts
37. We can cancel a voucher using

a. Alt + X
b. Ctrl + X c. Shift + X
d. Ctrl + Shift + X
38. To see reports of Job Work Analysis

a.
Display-Statement of a/cs
b.
Display-Statement of a/cs-Job Work Analysis
c.
Display-Statement of a/cs-Cost Center-Job work
d.
None of these
39. For reconciliation of Bank press

a.
F12
b.
F10
c.
40. We can't select cash in Journal Voucher:
F5
d.
a. True
F6
b. False
41. To create Scenario which option require to be activated?

a.
Use Rev Journal & Optional voucher in F12
b.
Use Optional voucher in F11
c.
Use Reversing voucher in F11
d.
Use Rev journal & Optional voucher in F11
42. Optional Voucher is one type of

a. Conventional Voucher b. Unconventional Voucher
43. TDS deduction entry can be made through
c. Both (a) & (b)
d. None of these
a. Payment Voucher
b. Journal Voucher c. Receipt Voucher d. All of these
44. To create Purchase Order press

a. Alt + F4
b. Ctrl + F4
c. F4
d. None of these
45. List of Optional Voucher we can get from

a. Cash Bank Books
b.
Exceptional Reports
c. Accounts Books
d.
Balance Sheet
46. Input Vat Credit on Capital goods should be defined under

a. Capital Account b.Current Liabilities
c. Duties & Taxes
d. Misc. Expenses (Assets)
47. Single Entry mode is applicable for

a.
Receipt Voucher
b.
Contra Voucher
c.
Payment Voucher
d.
All of these
48. Online voucher creation from Day Book report by pressing

a. Ctrl + A b. Shift + A
c. Alt + A d. None of these
49. Reversing journal is a
a.
Conventional Voucher
c.
Both (a) and (b)
b.
Unconventional Voucher
d.
None of these
50. To hide the name of the Company you need to define

a.
Security Control
b.
Tally Audit
c.
Create at least one User
d.
Tally Vault Password
51. To declare a voucher as Post Dated press

a.
Ctrl + T
b.
Alt + T
c.
Ctrl + P
d.
Ctrl + D
52. We can switch from Accounting Voucher to Inventory Voucher pressing

a.
F2
b.
Alt +F1
c.
Ctrl + F1
d.
F11
53. Goods returning to a Creditor after challan but before bill we need to pass
a.
Debit Note
b.
Receipt Note
c.
Rejection Out
d.
Rejection In
54. Branch / Division is a group defined under

a.
Liabilities
b. Assets
c.
Income
d. Expenditure
55. To use Dr/Cr instead of To/By during Voucher entry or vice versa, Press
a.
F10
b.
F12
c.
F11
d.
None of these
56. For Export of Data from Company to Company Tally uses

a.
SDF Format
b.
ASCII Format
c.
XML Format
d.
All of these
57. Voucher class is a pre defined voucher type that helps to

a.
Automatic Entry
b.
Automatic Calculation
c.
Minimize Errors
d.
All of these
58. To alter a master while making an entry or viewing a report

a. Alt + Enter
b.
Shift + Enter
c.
Ctrl + Enter
d. Tab + Enter
59. To view the TDS report go to

a.
Display > Statements of Accounts > TDS Outstanding > TDS Computation
b.
Accounts Book > TDS Outstanding > TDS Computation
c.
Display > TDS Outstanding > TDS Computation
d,.
None of these
60. To show the cheque number while reconciling Bank Accounts press
a.
F11
b.
F 12
c. CTRL + F11
d. CTRL + F12
61. Data Folder of a Company consists of

a.
3 digits
b.
4 digits
c.
6 digits
d.
5 digits
62. Total number of Ledgers, Groups, Entries etc. can be shown from
a.
Tally Audit
b.
Statistics
c. Accounts Information d. Company Information
63. Voucher Class for Interest calculation created based on

a.
Journal Voucher
b.
Debit and Credit Note
c.
Receipt and Payment Voucher
d.
Both (a) and (b)
64. ETCS means

a.
Enable Tax Collected at Source
b. Electronic Tax Collected at Source
c.
Electric Tax Collected at Source
d. None of these
65. What is TAN?

a.
Tax Account Number
b.
Tax Assessment Number
c.
Tax Assignment Number
d.
None of these
66. To get Payroll Reports choose

a.
Gateway of Tally > Display
b.
Gateway of Tally > Display > Statement of Accounts
c.
Gateway of Tally > Display > Statement of Payroll
d.
Gateway of Tally > Display > Payroll Reports
67. Payroll Auto fill is done through

a.
Ctrl + A
b.
Alt + A
c. Ctrl + B
d.
Alt + B
68. To see Gratuity Reports go to

a.
Gateway of Tally > Display > Payroll Report > Gratuity
b.
Gateway of Tally > Display > Gratuity Report
c.
Gateway of Tally > Display > Statement of Accounts > Gratuity Reports
d.
None of these
69. At the time of Branch Transfer, Sales ledger is created under which Vat/Tax Class?
a.
Export
b.
Consignment/Branch Transfer Outward
c.
Sales with Vat rate
d.
None of these
70. Memorandum Voucher does not affect Books of Accounts. a. True
b.
71. To remove a line at all reports screen, shortcut is

a.
Alt + R
b.
Alt + S
c.
Alt + 1
d.
Alt + T
False
72. There is no difference between Shut Company & Delete Company. a. True b. False
73. How can we see Vat Reports?
a.
Gateway of Tally > Display
b.
Gateway of Tally > Vat Reports
c.
Gateway of Tally > Display > Statutory Info
d.
Gateway of Tally > Display> Statutory Reports
74. BOM represents

a. Billing of Machines b. Bill of Maintenance
c. Bill of Materials
d. None of these
75. What is the full form of TCS?

a.
Tax Collected by Staff
b.
c.
Tax Collected at Source
Tax Consumption at Source

d.
Tax Collected from Sales
c.
Alt+F7
76. The shortcut used for Sales Order is

a.
Alt+F4
b.
Alt+F5
d.
Alt+F8
77. Bank OCC a/c is a group defined under

a.
Bank Account b.
Secured Loan c. Unsecured Loan
d. Loan & Liability
78. Sales Tax Ledger falls under which Group?

a. Indirect Expenses b. Duties and Taxes
c. Sales d.
79. "Alias" represents

a.
Short name
b.
c.
Code name
d.
All of these
c.
F2
d.
F1
Nick name
Purchases
80. To change the date, shortcut used

a.
Alt+F2
b.
Alt+F3
81. If we purchase any Fixed asset in credit, we can pass it from

a.
Payment mode b.
Receipt mode
c. Journal mode
82. To save entry without any amount, we have to use

a.
Cost Center
b.
Maintain Multiple godown
d. Contra mode
c.
Allow O value entry d.
Use Rej. Notes
83. To see the report of Unconventional vouchers go to

a.
Display-Day Book
b.
Display-Account Books
c.
Display-Exception Reports
d.
Display-Trial Balance
84. The shortcut used for Optional vouchers is

a.
Ctrl + N
b.
Ctrl + M
c.
Ctrl + A
d.
Ctrl + L
85. Transfer of materials from one godown to another godown, use

a.
Manufacturing Journal
b.
Stock Journal
c.
Purchase Journal
c.
Both A & B
86. BOM represents Bill of Materials.
a. True
b.
False
87. Recording of actual stock as physically verified or counted is done through

a.
Journal
b.
Stock Journal
c. Physical Stock
d.
Sales
88. Predefined Billing terms can be maintained through

a.
Cost Center
b.
Voucher Class
c.
Maintan Multiple Godowns
d.
Stock Categories
89. How many formats are available while Exporting?

a.
b.
c.
d.
d.
All of these
90. While exporting Ledgers from Tally to Web Page, we use

a.
XML Format
b.
ASCII Format
c.
SDF Format
d.
HTML Format
c.
Assumption
91. Budget represents

a.
Estimation
b.
Forecasting
92. To see any report in detailed way, press

a.
Alt+F2
b.
F2
c.
Alt + C
93. In Service tax Credit Adjustment (%) should be either
d. Alt+F1
a. 20%
b.100%
c. Both a & b
d.30%
94. Service Tax Report can be seen from

a.
Display > Day Book
b.
Display > Account Books
c.
Display > Statutory Masters
d.
Display > Statutory Reports
95. Can we allow Expenses/Fixed Assets in Purchase vouchers? a.Yes
b. No
96. Transfer from Main Cash to Petty Cash you require to pass voucher.
a.
Payment
b.
Contra c.
Receipt
d. None of these
97. If the Financial Year from is 1st April 2005 and the Books Beginning from is 1st January
2006 then what will be the Closing Date?
a.
31st Dec 2006
b.
31st March 2006
c.
31st December 2005 d.
None of these
98. Income Tax number of the Company will appear in which report?
a.
Cash/Bank Book
b.
Profit and Loss A/c
c.
Reminder Letter
d.
None of these
99. Patent account falls under

a. Investments
b.
Liabilities
c.
Current Assets
d.
None of these
100. Find out which is not a Default Ledger in Tally.

a. Cash in Hand
b. Capital Account
c.
Profit & Loss
d.
None of these

Tally ERP9

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Tally ERP9

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Tally.

American Accounting Association defines accounting as the process of identifying, measuring

ii. To calculate the result of operations.

NATURAL ARTICIAL REPRESENTATIVE

Golden Rules of Accounting

What goes out

All expenses and Losses

All incomes and gains

Assets = Capital + Liabilities

These entries usually relate to the following:

Reports: Consist of all the reports of financial and inventory records

Sub Groups (13)

Loans & Advances (Asset)

Rejection Out (ALT+F6)

Stock Journal (ALT+F7)

Delivery Note (ALT+F8)

Receipt Note (ALT+F9)

Physical Stock (ALT+10)

Credit Note (CTRL+F8)

Carriage Inward for purchase

Cartage and coolie

Coal, gas, water, oil & fuel

Factory rent, Insurance

Electricity, Light & Heating

Postage & Telegrams

Rates & Taxes

Interest on Bank Loans

Interest on Loan Paid

Printing & Stationery

Carriage Outward for Sales

Plant & Machinery

Land & Building

Loan from Others

Bad Debts Recovered

Profit by sales of assets

Fixed Deposit at Bank

Interest on Invest./Deposit Indirect Income

Interest on Loan Received

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform

Cash to Cash (Petty cash)

Payment Voucher (F5):

Purchase of fixed asset by cash or cheque payment.

Give loans, repayments of loans and paid advance.

Receipt Voucher (F6):

Collection from debtors

Income by sales of fixed assets for cash

Receipt like commission received, advances received, Interest received etc.

Received loans and repayment of loans.

Journal Voucher (F7):

Fixed assets purchased for credit

Indirect expenses met for credit

Example: Accounting Only

5.4.2013: Credit purchase from Power Traders Rs. 20,000

Cash Purchase Rs. 1000

BILL WISE DETAILS

Maintain the balance of the specified account in a foreign currency.

Selling Rate: Rs. 39/

1. Cost category Department;

e.g. Credit purchase/sales, sundry debtors/creditors.

BANK PASS BOOK (as on 30-4-2013)

Purchase Order (Alt+F4):

Records order details for stock items received from customers.

Accounts with Inventory

1-4-2013: Received from capital by cash Rs. 5, 00,000