Professional Documents
Culture Documents
TABLE OF CONTENTS
Lesson: 1 Basic of Accounting ............................................................................................... 5
1.1 Transactions ..................................................................................................................................... 5
1.1.2 Recording transactions................................................................................................................. 5
1.1.2 Types of Accounts......................................................................................................................... 6
Double entry system: ............................................................................................................................. 7
1.2 Rules of Accounting ......................................................................................................................... 7
1.3 Mode of Accounting ......................................................................................................................... 7
1.3.2 Trial Balance .................................................................................................................................. 8
1.4 Financial Statement.......................................................................................................................... 8
1.4.1 Trading Accounts .......................................................................................................................... 8
1.4.2 Profit and Loss Accounts: ............................................................................................................ 8
1.4.3 Balance sheet................................................................................................................................. 8
Accounting System................................................................................................................... 11
3.2
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2.
Custom Duties:.............................................................................................................................. 43
3.
Sales Tax:....................................................................................................................................... 44
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
1.1 Transactions
A Transaction is an event that changed the organizations financial position and /or earnings.
For Example:
When you deposit cash in the bank your cash balance reduces and bank balance increases; when
you sell goods for cash balance increases and your stock reduces. Transactions can be classified as
follows:
Receiptscash or bank
Payment-cash or bank
Purchase
Sales
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1) Real Accounts are maintained for assets owned or possessed by the business. Examples
Include:
Buildings
Furniture
Cash
2) Personal Accounts are the accounts of personal whom the business is required to deal
with.
Examples include
Suppliers
Customers
Lenders
3) Nominal Accounts are accounts where income & Exp are recorded.
Examples Include
Assets
Liabilities
Capital
Revenue
Expenses
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Real A/c
What comes in
What Goes out
Personal A/c
The Receiver
The Giver
Nominal A/c
Exp and Losses
Income and Gains
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Accounting System
Information teaching has change the way as business is conducted. An effective accounting
system must support the management in marking Strategic business decisions quickly. Thus as
the process of decision Making Changes the accounting system must also change and evolve to
meet both internal and external needs.
3.2
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Basic Inventory
Complete book-keeping
Stock categories
General ledger
Multiple godowns
Panoramic view
Databases repotting
Columnar Reporting
Bank reconciliation
Advance Accounts
Advance Inventory
Multiple Companies
Multi Currency
Memo Vouchers
Postdata voucher
Modvate supports
User-define voucher
Reorder levels
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
list of state
PIN code : Enter the PIN code specified
560019
address (This field is optional)
Telephone NO:
25547770
E-Mail Address: E-Mail Address is used to EBIT 25@Gmail.com
mail document reports and data from tally.
Currency Symbol: Tally displayed Rs by default Rs.(Per-defined)
this cannot be modified at the time of the creation
of the company
Maintain :This field is used to specify which
Accounts only
sections of tally your company would like to use
tally displayed two options Accounts only and
Accounts with inventory
Maintain
Options
Descriptions
Accounts Only
Only financial accounts of the company
Accounts with-Inventory
Both financial accounts and inventory records of
the company
Financial year from: this field is used to Specify
1-4-2009
the financial year (FY) for the company. Tally
consider 12 months from the months from date
which is given hear as the financial year for
st
example, if you give 1 April 2009 your FY will
be April 1.2009 to March 31,2010
Books beginning from: The date given for
1-4-2009
financial Year from automatically displayed this
can be charges to be the actual date on which
the books of accounts are opened
Tally Vault Password (If any )Tally vault is a
Skip field do not enter any details
Facility to keep the data protected using a
password Once the password is set data is
Maintained permanently in an encrypted form
this field is optional
Note: the Tally vault password Feature needs to be used with care .If the password is lost ,all data
Maintained in tally is irrecoverable
Press Enter or Y to accepts the screen and compete creation of the company, BIT (Baroda Institute of
technology)
Tally will take you the Gateway of tally Screen that display as shown
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
By default, Maintain Bill- wise Details? Is activated set this Option to NO & ensure that your screen
display as shown.
From the computer Screen. Press Hotkey S to go the Statutory & Taxations Screen the Statutory &
taxations Screen display as shown.
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Date
1-4-2009
2)
2-4-2009
3)
5-4-2009
4)
10-4-2009
5)
15-4-2009
Transactions
Patel Pooja Stared BIT by bringing in cash of Rs 3, 00,000.
Pooja Patel capital A/c
Dr=3,00,000
Cash
Cr=3,00,000
(F6 receipt)
Ms. Patel paid Rs 22,500 in cash to Purchase a computer with Preloaded
Tally Erp9. The computer does not have any disposal value at the end of its
useful life of four year. All assets are to be depreciated using Straight Line
method.
Computer
Dr=22,500
Cash
Cr=22,500
(F5 payment)
Ms. Patel opened a bank accounts with HDFC bank Gujarat for the firm by
depositing cash 1,00,000.
Cash
Cr=1,00,000
HDFC
Dr=1,00,000
(F4 contra)
Ms. Patel rented an office space for Rs 2500 per month on April 01, 2009.
She paid the security deposing of Rs 25,000 by cheque.
Security depositing (deposit
Dr=25000
Assets)
HDFC
Cr=25000
(F5 payment)
Ms. Patel issued cheque and purchase the following fixed assets
A cell phone for office use for Rs. 6000
Furniture for Rs. 20,000
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6)
17-4-2009
7)
20/4/2009
25/4/2009
27/4/2009
10
28/4/2009
11
29/4/2009
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Date
Transactions
1)
2-5-2009
Ms. Patel paid Rs. 6000 in cash in Ink and Paper Publisher.
2)
3-5-2009
Ms. Patel paid Rs. 2500 by cheque towards Offices rent for April 2009.
3)
5-5-2009
4)
10-5-2009
5)
12-5-2009
6)
19-5-2009
Ms. Patel paid Rs. 1100 in cash towards electricity Charges for April 2009.
7)
20-5-2009
8)
9)
10)
22-5-2009
23-5-2009
25-5-2009
11)
27-5-2009
12)
28-5-2009
Ms. Patel Received a Further Advance of Rs. 25000 from silver services by
cheque.
Ms. Patel Reimbursed conveyances bills amounting to Rs. 650 to Vijay Patel.
Ms. Patel Paid Rs. 150 in cash towards miscellaneous offices expenses.
Ms. Patel Received Rs. 15000 as consulting miscellaneous revenue in cash
from omega InfoTech.
Ms. Patel raised an invoice for Rs. 75000 on silver Services after completions
of the Services. Silver services paid the Balances amounts of Rs. 2500 in cash
after deducting the advance.
Ms. Patel withdraws Rs.6, 000 cash for personal use.
Date
Transactions
1)
3-6-2009
Ms. Patel paid Rs. 2,500 in cash towards office rent for May 2009.
2)
4-6-2009
3)
5-6-2009
4)
9-6-2009
Ms. Patel received an invoice for Rs. 5,500 form Raj travels. This includes Rs.
2,300 towards cab hiring charges and Rs. 3,200 towards outstation tours.
Ms. Patel received Rs. 35,000 in cash as consulting revenue from Eateries Food
Chain.
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5)
10-6-2009
6)
15-6-2009
Ms. Patel paid mobile phone bill amounting to Rs. 1,350 by cheque for May
2009.
7)
16-6-2009
Ms. Patel reimbursed conveyance bills amounting to Rs. 750 in cash to Vijay
Patel.
8)
20-6-2009
Ms. Patel paid Rs. 1,250 in cash towards electricity bill charges for May 2009.
9)
21-6-2009
10)
23-6-2009
Ms. Patel paid Rs. 750 in cash towards office maintenance charges for May
2009.
Ms. Patel paid Rs. 3,000 in cash as salary advance to Maya Nair.
11)
27-6-2009
3-7-2009
Ms. Patel raised an invoice for Rs. 65,000 on Alfatech Solutions for services
provided.
2)
6-7-2009
Ms. Patel subscribed for the Management Consultant Journal paying Rs.
2,400 by cheque. The subscription period is from July 2009 to Jane 2011.
3)
7-7-2009
Ms. Patel paid salaries for Jane 2009 by cheque. Salary advance paid to Maya
Nair is against the salary paid.
4)
5)
6)
10-7-2009
15-7-2009
18-7-2009
7)
19-7-2009
Ms. Patel paid Rs. 850 in cash towards electricity charges for June 2009.
8)
9)
10)
20-7-2009
25-7-2009
28-7-2009
Ms. Patel paid Rs.1, 650 by cheque as mobile phone bill charges for June 2009.
Ms. Patel reimbursed conveyance bills of Rs. 550 in cash to Vijay Patel.
Ms. Patel withdraws Rs. 6,500 cash for personal use.
1-8-2009
Ms. Patel paid by cheque Rs. 6,000 for insurance of fixed assets. The period
of insurance is from August 1, 2009 to July 31, 2008.
2)
2-8-2009
3)
4)
5)
6)
7)
5-8-2009
10-8-2009
12-8-2009
14-8-2009
15-8-2009
8)
9)
16-8-2009
18-8-2009
10)
22-8-2009
11)
12)
13)
23-8-2009
25-8-2009
29-8-2009
Ms. Patel received Rs. 30,000 in cash as consulting revenue from Worlds
Multimedia.
Ms. Patel paid salaries for July 2009 by cheque.
Ms. Patel paid office rent for July 2009 by cheque.
Ms. Patel withdraws Rs. 25000 from HDFC Bank.
Ms. Patel Paid Rs. 750 in cash towered offices charges for July 23, 2009.
Ms. Patel raised invoices for Rs. 50,000 on Media Live Productions for
services provide. The terms of credit are 30 days.
Ms. Patel paid Rs. 950 in cash toward electricity Charges for July 2009.
Ms. Patel Paid Rs. 2100 by cheque toward Mobile phone bill charges for July
2009.
Media live Productions settled the bill for final amounts of Rs. 48,000 by
Paying Rs. 20,000 in cash and Rs. 28,000 by cheque.
Ms. Patel withdraws Rs. 7000 cash for Personal use.
Ms. Patel received Rs. 30,000 by cheque from Alfatech Solutions.
Ms. Patel reimbursed conveyance bills amounting to Rs. 1200 in cash in Vijay
Patel.
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1-8-2009
2)
2-8-2009
3)
4)
5-8-2009
10-8-2009
5)
12-8-2009
6)
14-8-2009
7)
8)
15-8-2009
16-8-2009
9)
10)
18-8-2009
22-8-2009
11)
23-8-2009
Ms. Patel paid Rs. 3800 in cash for repairs and Maintenances of offices
Premises.
Ms. Patel paid salaries for August 2005 by cheque. As Maya Nair was on lever
for 15 days. She was paid Half-months Salary.
Ms. Patel Paid offices rent for August 2005 by Cheque.
Ms. Patel received invoices for Rs. 7600 from Raj Travels. This includes Rs.
3150 towards cab hiring charges and Rs. 4450 towards outstations tours.
Ms. Patel paid Rs. 750 in cash toward offices Maintenances charges for
August 2009.
Ms. Patel revised Rs. 25000 in cash as consulting revenue from cam and cut
productions.
Ms. Patel paid Rs. 1300 in cash toward electricity charges for August 2009.
Ms. Patel reimbursed conveyance bills amounting to Rs. 500 in cash to Vijay
Patel.
Ms. Patel paid Rs. 10,000 by cheque to Raj Travels.
Ms. Patel Rs. 1750 by cheque towards mobile phone bill charges for August
2009.
Ms. Patel withdraws Rs. 5500 cash personal use.
Services Organizations
Sells services
Does not have inventory
Cost for services Organizations is the cost of
providing services
Services are not tangible
Raw Materials are the items purchased to be used in the productions process. They are
Modified or transformed into the final product.
For example:
Rubber is the raw material for tyres.
WIP is an acronym for work-in-process. It is the value of party finished goods.
Finished goods inventory is the portions of goods in inventory which are manufactured and
available for sale.
Supplies are the item consumed in the normal functions of a firm. They are not a part of the final
product.
Dr
Cr
1000
1000
When both parties involved in the transactions agree upon later date as the date of payment for the
goods purchased, it is known as credit purchase. If the goods are purchased in smaller units vendor
details are not record in the books however if the buyer orders on a regular basis, the transactions
are usually routed a vendor through accounts. This helps buyers to:
Record payment to be affected in future
Negotiate trade and cash discounts.
Bargain for greater credits periods
Example: National stores bought glass cups worth Rs. 1000 from KP Glassware Company and paid
after 90 days of purchase the entry the time of purchase is as follows:
Purchase Accounts
Dr
1000
KP Glassware company
Cr
1000
accounts
At the time of making payment, the entry passed is as follows:
KP Glassware company
Dr
1000
accounts
Cash/bank Accounts
Cr
1000
Note that KP Glassware company accounts are netted off and the second entry matches with the
earlier cash purchase entry.
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Cr
1200
DR
Cr
2000
2000
DR
2000
DR
2000
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Cr
2000
Cr
2000
Description
Tax paid on Purchases
Output
NAME OF LEDGER
GROUP / CLASS
Purchase @ 1%
Purchase Account
Purchase @ 1%
Purchase @ 4%
Purchase Account
Purchase @ 4%
Purchase @ 12.5%
Purchase Account
Purchase @ 12.5%
Purchase - Exempt
Purchase Account
Purchase - Exempt
Input vat @ 1%
Input vat @ 1%
Input vat @ 4%
Input vat @ 4%
Sales @ 1%
Sales accounts
Sales @ 1%
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Sales @ 12.5%
Sales accounts
Sales @ 12.5%
Sales exempt
Sales accounts
Sales exempt
Output vat @ 1%
Output vat @ 1%
Output vat @ 4%
Output vat @ 4%
Integrate Accounts and inventory?: If accounts are not integrated with inventory voucher will not
have any impact on the balances sheet, stock figures, stock balances will be maintained separately
however, If the company and inventory are integrated by setting this field to yes, Inventory entries
system is activated
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Skip Date Field in Created mode (faster entry!)? If this is set to yes, Tally goes depending on the
voucher type. If this is set to no, Tally goes to the date field. If there are many entries to be made on
the same date, it is advantageous to set these options to yes, for faster entry.
Show Inventory details? If this is set to yes, Tally show the Name of the stock quantity, rate and
value details.
Show table of Bill details for selections? If this field is set to yes. Tally display a table listing the
pending bills references.
Show Bill-wise Details? If this Field is set to Yes, bill-wise details are available. Bill-wise Details are
pertinent only for party accounts, I.E., ledger accounts classified under sundry debtors, Sundry
Creditors and Branch/Divisions, Bill-Wise details sub-screen does not come up for inventory voucher.
It is relevant only for accounts purposes.
Bill-wise details need to be set to yes if the user has to track each invoices to its conclusions and to
adjust the bills and payment, bill by bill. Information about outstanding analysis, ageing analysis.
Pending, Due and overdue bill and so on can be obtained from this feature.
Expand into multiple lines? This is the field display when Show Bill-wise details are activated. If this
field is set to yes .Tally display all bill-wise information for example, There due date based on the
credit days given
Show Ledger Current Balances? If this field is set to yes, Tally display the current balances of the
ledger selected while the user makes an entry. This avoids the need to the report to get the balances
information
Show Balances as on voucher Date? This is the additional options display the when show Balances
is set to yes. If this is set to yes then any voucher viewed in alterations mode will display the balances
on the voucher screen based on the voucher date and not the balances based on the last entry.
Allow cash Accounts in Journals? If this Field is set to Yes. Tally allows entry of transactions which
affect cash and bank accounts in journal voucher.
Use Cr/Dr Instead of to/By during entry? if this field is set to yes, tally uses Dr/Cr instead of the
default To/by .each voucher line display a prompt of Dr or by for debit entries or Cr or to for credits.
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Depending on the on the voucher type, Tally select either Dr/Cr for the first prompt, which the
user the user cannot changes. Thereafter, the prompt can be charges by typing over with a D or C.
Warn On if Negative Cash Balances? This field is set to yes, Tally warns you in case the cash
ledger reaches a negative balances. Tally displayed the credit the cash balances in Red. The user
can accordingly decide whether to do with the entry.
Gateway of tally >f12: configure >Invoices /Orders Entry set Accepts Supplementary details?
To NO.
Date
1-4-2009
Transactions
Karan Kundra started Kirti Agencies by bringing in capital of Rs.15,00,000 by cheque and
deposited the same in ICICI bank by opening a new accounts.
Voucher type:
A voucher is the primary online document for recording transactions. Transactions
recording and analysis are greatly facilitated by having specific formats for different types of
transactions .Tally provides 16 pertaining to both accounting and inventory. Some of this
voucher can also be used differently accounting to the situations, for example, sales
voucher can be used as invoices. Such use can be decided at the time of voucher entry
by selecting the appropriate button.
i) create ledger Karan Kundra A/c(Under capital Accounts)ICICI bank (under bank
accounts)
ii) Create voucher type bank Receipt.
Go to Gateway of Tally >Accounts info >voucher type >create to view the voucher type
creations screen
1.Name:Bank Receipt
2.Type of voucher :select Receipt from the list of voucher type
3.Abbr:Rcpt
4. Method of voucher Numbering? Select Automatic from types of numbering list.
5.Use Advances configurations :yes
6.Prefix details Particulars :Type BR/
7.suffix details - Particulars :Type /09-10
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Go to Gateway of tally >Accounting Vouchers>F6: receipt >select Bank receipt from voucher type list to view
bank entry screen.
1.Credit particulars :Karan Kundra capital A/c =15,00,000
2. Debit particulars: ICICI bank =15,00,000
3.Narrations:Ch.No 187962 being cheque deposited in ICICI bank
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2009
Mr. Kundra withdrew Rs. 50,000 by cheque for shop expenditure from ICICI bank (Cheque
number-123451)
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8-4-2009
Mr. Kundra rented a premise On 1-4-2009 for his business at Rs. 3500 per month .He
paid a Security deposit of Rs. 25,000 by cheque (Cheque number 123453)
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Stock Item:
Stock item is the primary inventory entity stock items are used while recoding and receipts and issued of inventory.
This is the lowest of information of inventory each item that is required to be accounts is created for each item and
Tally calls this accounts Stock Item.
Stock Group:
Stock Item can be grouped together under stock group to reflect their classifications based on same commonality.
Grouping enable easy locations and reporting stock item in statements. Hence, Items of a particular brand or type
can be grouped together so that one can extract stock of all Item of that brand or type for further analysis, Subgroups of stock group can be created.
Unit of Measure:
Unit of measure is the basic unit of measurement used to measure stock item for every stock item, units of
measure need to be created. These can be units (for example numbers, Meters, Kilogram, Pieces) or compound
units. A compound units is created, ensures that the two simple units are created.
7
21-4-2009
Mr. Kundra purchased the following item from A2Z Traders on Credit.
Item
Quantity Rate Value
Input vat Total Vat
Low capacity 100
400
40,000
12.5%
45000
stabilizers
Open well
50
1500 75000
4%
78,000
pumps
Submersible
100
2000 2,00,000 4%
208000
pumps
Gross
331000
Total
Dr
Dr
Dr
Dr
Cr
40,000
2,75,000
5000
11,000
3,31,000
22-4-2009
Mr. Kundra paid Carriage inward expense of the Rs. 500 in cash to meet the day to day
expenses.
28-4-2009
10
30-4-2009
VAT adjustment Entry.
The journal entry for the above transactions is as follows:
Cerate ledger vat Adjustment A/c(under Duties and t axes )
Go to Gateway of tally >Accounts info>Ledger>create
Name :Vat Adjustment A/c
Under: Duties and taxes
Type of Duty /Tax: select vat from Type of duty/Tax list
Make an entry of the transactions in journal Voucher
Vat Adjustment A/c
Dr
23,500
To Input vat@12.5%
Cr
12,500
To Input vat@4%
Cr
11,000
Date
1-5-2009
Transactions
Mr. Kundra paid salaries thought cheque for April 2010 (cheque number123455) the
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Cost Centre:
Cost centre are the cost objects for which expenses are incurred under various accounts head and the coat
control can be effectively established by keeping track of cost at one place.
Similar to cost centre, You can have revenue centre to keep track of revenues and profit centre to keep track of
profit
In Tally, Cost centre represent all of the above. Tallys concept of cost adds an additional dimensions to a
transactions. While a ledger accounts indicates the of a transactions, It does not readily disclose which part of an
organizations is involved. By creating cost centers a transitions can be allocated to it which would then enable
extractions of all transactions for a cost centre.
1) Created cost centers Roshani Shah ,Vaishali Sane, Minal Patel ,Kirti Pradhan (all under primary)
Go to Gateway of Tally >Accounts info>Cost Centers >Multiple Cost Centers>Create
Under cost Center :All Items
Enter details as shown in the following table
Create ledger salary Expanes
2) Create ledger expanses (under Indirect exp) Note: set the field cost centre are applicable? To yes at the time
salary expanse ledger crated
Make an entry of the transactions in Bank payment voucher
Go to Gateway of tally >Accounting info >F5:payment>Select Bank payment
Dr salary exp=17700
2-5-2009
Mr. Kundra Paid Rs 2500 in cash for Stationery and Printing Invoices and voucher to
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cannon Traders.
i)Created Ledger printing and stationery exp (Under In.Exp)
Note: set the field cost Centers are applications? To No at the time of printing and stationary expanse ledger
creations.
ii) Make an entry of the transactions in payment voucher
Dr- printing and stationery exp
3
3-5-2009
Mr. Kundra Received the statement of Expenditure from the pretty cashier for April
2009.The Statement is as follows:
Nature of Expenses
Amounts
Stationery Purchased
2500
Cell phone bill
600
Shop maintenances expense
450
Conveyances expenses of marketing executives
250
As per tally Conveyances Exp., Telephone Exp and Shop maintenances expense(all under In.exp)
Allow Cash Accounts is Journal ?is Set to Yes in F12 :Configurations
Cost Centers are Applicable? To No
4
6-5-2009
Mr. Kundra Paid Rs. 3500 by cheque towards Shop rent for April 2009 (Cheque
number :123456)
Created Ledger Rent Exp(Under in.exp)
Bank payment
Dr-Rent Exp-3500
Cr-ICICI bank-3500
5
10-5-2009
Mr. Kundra Sold the Following Item for cash, Details as are Follows
Item
Quantity Rate Value
Input vat Total Vat
High capacity 50
850
42,500
12.5%
47813
stabilizers
Open well
15
1700 25,500
4%
26,520
pumps
6
15-5-2009
Mr. Kundra issued a cheque to A2Z Traders for Rs. 396500 after deducting of Rs.
2000 he received discounts as he agreed to pay the entries bill amount (Cheque
123457)
7
28-5-2006
Mr. Kundra withdrew Rs. 4000 in cash for personal use
Payment voucher
Dr-Karan Kundra 4000
Cr=cash 4000
8
30-5-2009
Mr. Kundra Received the statement of expenditures from the petty casher for May
2009 .The Statement
Natures of Expenses
Amounts
Cell phone bill
1500
Shop maintenances expense
200
Conveyances expenses of marketing
800
executives
Make an entry of the transactions in journal voucher
Dr-telephone exp-1500
Dr-Conveyances exp -800
Dr-Shop maintenances exp-200
Cr-petty cash-2500
9
31-5-2009
Vat Adjustment Entry
Make an entry of the transactions in journal voucher
Dr-output vat @12.5 %
Dr-Output vat@4%
Cr-vat Adjustment A/c
37
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Particulars
Cheque No:187962 Deposited (Karan
Kundra capital)
Cheque No:123451(Cash Withdrawn)
Cheque No:123452(Furniture and
deposit)
Cheque No:123453(As security
Deposit)
Cheque No:123454(For Assets
purchased )
Cheque No:123455(salary paid)
Cheque No:123456(Rent paid)
Cheque No:123457(Issued to A2Z
Traders )
Cheque No:123458(Cash with drawn
for petty cash )
Cheque No:123459(Salary paid)
Cash(Cash deposited)
Cheque no1234560
Cheque No:1234561(Purchases
made)
Cheque No:1234562(Issued to pacific
Merchants )
Cheque deposited(Java Trading
company)
Cheque deposited (Data tech
Services )
Deposits
1500000
Withdrawals
Balances
15,00,000
50,000
150000
1,450000
1300000
25000
12,75,000
75500
1199500
6900
3500
396500
1192600
1189100
792600
11,000
781,600
11500
11000
45563
770100
810100
799100
753537
647395
106142
40,000
52,312
1,58,454
61,875
2,20,329
38
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
MATERIALS
PURCHASED
COST OF GOODS
MANUFACTURED
COST OF
MATERIALS
USED
MATERIALS
INVENTORY
COST OF GOOD
SOLD
FINISHED GOODS
INVENTORY
WORK-IN-PROCESS
INVENTORY
40
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Purchases for a manufacturing signifies bying goods, primarily with the intention of frther
processing, to sell them to customers. This includes the cost of all raw materials or parts purchased
for manufacture into finished products. Cost of purchases includes the purchase price as well as
duties and taxes. Fright inwards and other expenses directly attributable to the purchase.
Manufacturing
Manufacturing involves the transformation, development or modification of raw materials or semi
finished goods from one form to the other.The input is commonly reffered to as raw material and the
final output as finished goods. The output of any stage prior to the final output is termed as semifinished goods.
Once the finished goods are produced, the cost of goods available for sale can be determind. It
represents the sum of the opening stock of finished goods and finished goods manufactured in a
period. The goods purchased can also be in the process of production for such sale.
Cost of goods available for sale=Opening stock of finished goods + Finished goods manufactured
during the period
Cost of production refers to the cost of goods brought to completion whether they were started
before or during the current acconting period. It refers to the sum of direct and indirect manufacturing
costs which were incurrent or efore or during the current accounting period for goods produced in a
period.
Sales
A transactoin which involves the trensfer of goods or services for money is called sales. It is
reported in financial statement, net of trade discount.The Cost of goods sold represents direct costs
incuured by businesses in the process of selling goods. It is required to determine the gross profit of
an organisation.
41
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
1. Income Tax
Income Tax, as the name suggests, is a tax on the income of an individual. The persons liable to pay
this tax are determined based on the provisions of the Income Tax Act. In india, the Income Tax Act
classifies the income of individuals into 5 different sources.
Income from Salaries.
Income from business and profession.
Income from house property.
Capital gains.
Other income.
According to the taxation laws in india, every company has to pay a tax on income earned. Financial
statements prepared by an organisation, in accordance with the Income Tax Act, may differ from the
statutory forms adopted by the organisation. In India, the statutory reporting form for a company is
defined by the Companies Act,1956.
2. TDS
Tds or Tax Deducted at Source is one of the moe of collecting Income Tax. The buyer/payer
(deductor) deducts the tax from payment made to the seller/payee (deductee). The Deductor then
deposits the same at any designated branch of banks authorised to collect taxes on behalf of the
Income Tax Department.
Buyers (corporate and non-corporate) make payments under various heads such as salary, rent,
interest on securities, dividends, insurance on commission etc. to seller of these services. The tax on
such transactions is deducted at the same time of payment or credit to the account of the payee,
whichever is earlier and remitted to the government within the limits prescribed by the Law. The
seller/payee collects Form 16/16 A/ 16 AA, which is the certifiate for deduction of tax, from the
42
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
buyer/payer and files this certificate with his return of Income to claim credit for tax deducted
at the source of Income.
The Income Tax website (www.incometaxindia.gov.in) provides information about filling returns. To
enable automation of collection, compilation and processing of TDS returns, the Income Tax
department has notified the Electronic Filling of Returns of Tax Deducted at Source Scheme, 2003.
This scheme is applicable to all deductors furnishing their TDS return in electronics form.
As per this scheme
It is mandatory for corporate deductors to furnish their TDS returns in electronic form (ETDS
return).
Form furnishing TDS return in electronic form is also mandatory for government deductors in
addition to corporate deductors.
Deductors (other than government and corporates) may file TDS return in electronic or
physical form.
Deductors can submit ETDS returns through TIN-facilitation Centres (TIN-FC) established by national
Securities Depository Ltd. (NSDL) or directly upload it through NSDL web site. For more information
on filling of ETDS return through TIN facilitation centres refer to their website (www.nsdl.co.in).
TDS reports : TDS reports in Tally enable the generation and printing of Form 16A and Form 27A.
Tally also enables the export of ETDS forms, that is Forms 26, 26Q, 27 and 27Q in NSDL compliant
format.
2. Custom Duties:
Customs is a duty imposed on imported goods. Under section 12 of the Customs Act, the goods
are taxable when they are brought into India, that is, they fall under the expression Imported
Goods. Before the clearance of any imported goods, an importer has to comply with prescribed
customs clearance formalities.
Essentially, these involves the presentation of certain documents along with a prescribed
application, normally termed as
Bill of entry, seeking clearance of goods for home
consumption/warehousing and so on. The Bill of entry gives essential particulars in relation to
Imported goods. Its country of origin, particulars of vessels/aircraft and so on. The dutiable event
will only be at the time when the goods reach the customs barriers and the Bill of entry is filed.
Tally supports the following:
Capturing of invoice particulars for imports
43
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Multicurrency operation.
3. Sales Tax:
Sales Tax is a levy on purchase and sale of goods. It is levied under suthority of both central
legislation (Central Sales Tax ) and state governments Legislations (Local Sales Tax). Central
Sales Tax is governed by the Central Sales Tax Act, 1956 which covers inter-state transactions of
sale of goods as well as transactions of import of goods or export of goods. It provides For the
levy, collection and distribution of taxes on sales of goods in the course of inter-state trade or
commerce.
A dealer shall be liable to pay under this Acr on asale of any goods effected by him in the course
of inter-state trade or commerce, not with standing that no tax would have been leviable (whether
on the seller or purchaser) under the Sales Tax of the appropriate state if that sale had taken
place inside that state.
The Local Sales Tax is governes by the respective State Sales Tax Acts under which tax is levied
on intra-state transactions of sales.
Tally has features of which
Support Tax calculations.
Generate Sales Tax forms.
Service Tax
Service Tax is an indirect tax levied by the Government of India on certain categories of services
provided by a person, firm, and agency and so on. The Government of India has marked a set of
services as taxable under the service tax structure. The responsibility of paying the Service Tax rests
with the service provider, that is, the seller.
Currently, the rate of Service Tax on taxable services is 12% and an additional education cases @
2% is changed on Service Tax. Service Tax is currently applicable on 73 categories of services.
Service Tax returns are to be filed with the commisionerate of Service Tax for the fiscal half-year.
A few of the listed services have an abatement facility. For services with this facility, the government
allows a deduction on the value to be considered for Service Tax. For example, a caterer has to
procure raw materials to prepare food products and sell services. Here, the assessable value of the
service will not include amount paid for the materials procured. This deduction allowed by the
Government is called abatement. Abatement is either a percentage of the service charges or a lump
sum amount.
Tally supports service tax requirements such as
Basic masters configuration.
Service Tax transactions.
Service Tax forms and reports.
9.2 Purchases
The five basic quantities required for a good purchase are:
Purchase of the right quality
Purchase at the right time
44
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
9.2.2Recording of Purchases
Purchase Order: A Purchase Order is a written authorization sent to a vendor to supply goods or
services at a specified price over a specified time period. Acceptance of the Purchase Order
constitutes a purchase contract and legally binds all parties.
Purchase Account: Purchase Account is an account where all transactions relating to inventory
are recorded. Only purchase of goods for resale is recorded in a purchase account. It is an error
of principle to record purchase of assets or stationery in purchase account.
Purchase Returns: Purchase Return Book or return outwards account records the details of
goods returned to suppliers. Goods are often returned if they are not according to the terms and
conditions agreed upon between the business enterprises and the supplier. Rejection Out
voucher is used to record goods which are rejected and returned to a supplier.
9.3 Sales
The transaction which involves transfer of goods or services for money is called sales. The purpose of
goods purchased or manufactured by the business is for sales and to earn profit. It is reported in
financial statements net of trade discount.
Sales refer to the sales of goods which form a part of the stock in trade of the business unit. The sale
of old fixed assets are not sales. In terms of accounting it would be an error of principle to record
sales of fixed assets in the sales account.
45
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Sales Account: Sales account is an account where all transactions relating to inventory
are recorded. Only the sale of goods is recorded in a sales account. It is an error of principle to
record the sale of assets in the sales account.
Rejection-In Voucher: Rejection In voucher records goods received after being rejected by a
customer. Items rejected by a customer are taken back into stock by the company. The return of
goods by the customer (sales return) is recorded in the Return Inward Account or Sales Return
Account.
Tracking numbers are used to maintain relation between debit/credit notes and invoiced/bills.
They are available for both purchases as well as sales. They also create a link between inventory
records and accounting records.
Bills of materials
Bill of Materials or (BOM) is a listing of all the assemblies, sub assemblies, parts and raw
materials, which are needed to produce one unit of a finished product. Each finished product has
its own bill of materials. For example, a BOM for one computer may consists of
One motherboard
One sound card
One monitor
One mouse
One keyboard
One tower
One set of speakers and so on.
For example, if you have an order to produce 100 personal computers, the BOM makes it easy to
calculate and plan
Quantity of parts or raw materials required to complete the order.
Quantity of stock at the start of production.
Responsibilities of each department related to the production process.
Uses of BOM
Purchase department- material requisitions are prepared by the production or maintenance
department based on BOM and sent to the purchase department for procurement of
materials.
Store department- The BOM helps the store keeper track materials in the store. He receives
a material requisition from the production department and issues material accordingly.
Production department- The BOM serves to create a work order for the production
department.
Costing department- On the basis of the BOM, the cost of consumption of raw materials with
respect to each order can be calculated even before work is completed.
46
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
01-10-2009
The directors of the company brought in Rs. 25, 00,000 in the form of equity
share capital. The company has a bank account with HDFC Bank.
Create ledgers equity share capital under capital account and HDFC Bank under bank accounts.
Make an entry of the transaction in Receipt voucher.
Cr. equity share capital
Dr. HDFC Bank
2.
04-10-2009
47
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
06-10-2009
The company rented a godown and paid a security deposit of Rs. 75000 by
cheque.
Create ledgers security deposit-rent under deposit-Asset.
Make an entry of the transaction in Payment voucher.
Dr. security deposit-rent
Cr. HDFC Bank
4.
08-10-2009
The company applied for two telephone connections. A security deposit of Rs.
6000 was paid for the same by cheque.
Create ledgers security deposit-telephone under deposit-Asset.
Make an entry of the transaction in Payment voucher.
Dr. security deposit- telephone
Cr. HDFC Bank
5.
10-10-2009
13-10-2009
The company withdrew Rs. 50000 from the bank for office use, of which Rs.
3000 was advanced to petty cashier.
Create ledgers petty cash under cash-in-hand.
Make an entry of the transaction in contra voucher.
Cr. HDFC Bank Rs. 50000
Dr. cash Rs. 20000
Dr. petty cash Rs. 30000
7.
17-10-2009
The company purchased raw material on 15 days credit from Ultratech computer,
stored them in the raw material godown and paid carriage inward expense of Rs.
400.
Item
quantity rate
vat
Processor Athlon
50
3700
Hard disk
100
2300
Monitor
110
3500
Processor p4
50
5700
4%
48
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
18-10-2009
The company purchased raw material on 30 days credit from Islion systems,
stored them in the raw material godown and paid carriage inward expense of Rs.
350.
item
quantity rate
vat
Keyboard
110
200
Mouse
100
150
motherboard
100
3200
4%
28-10-2009
The following items were transferred from raw material godown to assembling
godown.
item
quantity
Processor p4
25
Monitor
50
Hard disk
50
Keyboard
50
Mouse
50
motherboard
50
Processor Athlon
25
Use stock journal Alt+F7.
When there is an internal transfer from raw material godown to assembling godown, the value
of the stock item should be uniform in both the godown.
10.
31-10-2009
49
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Employee name
Rohan Rai
Preeti Raj
Paresh Shenoy
Dilip Chari
Shrinath
Nitin Nagraj
Make an entry of transaction in Journal voucher.
Monthly salary
3500
3000
3000
3500
1000
4000
10-11-2009
14.
24-11-2009
28-11-2009
16.
50
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
18.
04-12-2009
19.
5-12-2009
20.
08-12-2009
21.
22.
09-12The following items were transferred from raw material godown to assembling
2009
godown.
item
quantity
Processor p4
25
Monitor
50
Hard disk
50
Keyboard
50
Mouse
50
motherboard
50
Processor Athlon
25
10-12-2009
The company received a sale order for 10 Computer Athlon from Informatics
India Ltd to be delivered on 20-12-2009 at Rs. 22000 each. (Order no. IIP-01)
In F11 features- Inventory features- set allow sales order processing to yes.
13-12-2009
24.
Items
Monitor
Hard disk
Raised a Purchase order with Raheem Computer (Order no. PO-01) due date
24-12-2009 for the following items.
Quantity(no.s)
100
100
51
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Keyboard
Mouse
motherboard
100
100
100
yes.
Vat rate is 4%.
25.
26.
19-12-2009
27.
20-12-2009
Delivered to Informatics India Ltd. Towards sales order IIP-01 as per delivery
note number DN-01 as per following details.
Item
Quantity
Rate
Computer Athlon
10 nos
22000
In F11 features- F2- set use tracking numbers (delivery/receipt notes) to yes.
Make an entry of transaction in Delivery Note Alt+F8 using sales vat rate @ 4%.
28.
23-12-2009
23-12-2009
30.
25-12-2009
31.
26-12-2009
32.
29-12-2009
33.
Received from Raheem Computers against order no. PO-01 as per RN-01.
Item
quantity
Monitor
100
Hard disk
100
Keyboard
100
Mouse
100
Motherboard
100
Make an entry of transaction in Receipt Note (Alt+F9)
A sales invoice was raised on Informatics India Ltd for 8 nos of Computer
Athlon retained by them and a cheque was received.
Make an entry of transaction in sales voucher and receipt voucher.
52
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
35.
01-01-2010
An unsecured loan of Rs. 75000 was taken from Smith & brothers at simple
interest 10% p.a. interest to be paid quarterly. The amount was deposited in the
bank.
Create a ledger Smith & brothers under Unsecured Loans. Make an entry of transaction in
receipt voucher.
36.
02-01-2010
03-01-2010
2,50,000
20,000
10,000
20,000
2,000
Raheem Computers sent an invoice for the goods retained by the company
towards PO/01.
item
quantity
rate
vat
Monitor
100
3600
Hard disk
100
2200
Keyboard
100
210
4%
Motherboard
100
3100
Mouse
100
140
05-01-2010
The company paid Raheem Computers Rs. 561272 by cheque as part payment.
39.
06-01-2010
Item
Quantity
Computer P4
10
Computer Athlon 10
Make an entry in Stock Journal Voucher.
Create godown branch godown
Rate
16657
16656
Godown
Finished goods godown
Finished goods godown
40.
07-01-2010
credit of 10 days.
Rate
CST @ 4%
200
3800
4%
5800
41.
08-01-2010
42.
10-01-2010
Total amount in
Rs.
Rs. 337500
Computer(P4)
15
$500
$7500
Billing is to be done in US dollars as per the agreement.
In F11 features - (F1) set multicurrency to yes. The Rs. was traded as Rs. 45/ $.
Create the ledger Acron clothing ltd. under Sundry Debtors.
53
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Sales export under sales a/c (vat applicable yes, vat/tax class export).
Create a currency: US Dollar and symbols as $.
Make an n entry of transaction in sales voucher.
43.
14-01-2010
44.
15-01-2010
45.
18-01-2010
46.
20-01-2010
The following items were sold to concord packing services on credit of 10 days.
Interest is applicable at 10% p.a. after the due date and 12% interest is further
chargeable from 10-2-10 onwards.
Item
Quantity
Rate
Vat
Computer(P4)
10
28000
4%
Computer(Athlon) 10
25000
4%
In F11 features - (F1) set Activate interest calculation and advanced feature to yes.
Create ledger concord packing services under sundry debtor. Set activate interest calculation and use
advanced parameter to yes.
Ensure that the interest parameter screen displays as shown:
47.
21-01-2010
The company decides to have a price list names price list-1 for the following
items.
Item
Rate
Discount
Computer(P4)
28500
10%
54
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
Computer(Athlon) 25500
10%
In F11 features- (F2) create a price list-1 for finished goods.
48.
27-01-2010
49.
28-01-2010
50.
29-01-2010
Branch sold the following items for cash and remitted the same into head office
bank account. Sale was made as per price list-1.
Item
Quantity
Rate
Discount
Vat
Computer(Athlon) 5
25500
10%
4%
In F11 features- (F2) set separate discount column on Invoice to yes.
Make an entry of transaction in sales voucher using price list-1.
51.
01-02-2010
The petty cashier submitted the statement of expenses for January 2010.
Telephone expense Rs. 1650.
Salary to staff Rs. 18000.
Electricity expenses Rs. 530.
Conveyance expenses Rs. 1000.
Rent expenses Rs. 15000
Printing & stationery expenses Rs. 1000.
53.
04-02-2010
54.
06-02-2010
The company purchased a cabinet manufacturing machine for 50,000 for which
they paid vat @ 4% (Rs. 2000), payment was made through cheque.
In F12, set allow expense/fixed asset in purchase voucher to yes.
Create ledger cabinet manufacturing machine under fixed assets.
Make a transaction in purchase voucher.
Cr. HDFC bank Rs. 52000
Dr. Cabinet manufacturing machine
55
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
To associate the full value of the goods purchased, the Vat amount is also calculated along
with the original price of the asset purchased.
55. 10-02-2010 Tax authorities allowed tax credit of Rs. 2000 to be set off in a single installment.
Create ledger tax paid on capital goods under current assets.
This ledger is used to record the tax set aside for future amortization (decrease in the value of
intangible assets).
Make a transaction in journal voucher.
Dr. Tax paid on capital goods
Cr. Cabinet manufacturing machine
56.
10-02-2010
57.
12-02-2010
16-02-2010
The following items were delivered to Mahajan Education Trust by price list-1.
(use default tracking number)
Item
Quantity
Rate
Discount
Vat
Computer(P4)
5
28500
10%
4%
18-02-2010
Received a cheque from Concord packing services with interest in the full
settlement of bill dated 20-01-2010.
Alter debit note by defining name of class-simple interest and use class for interest calculation in
voucher type to yes.
In F11 features- (F1) set use debit/credit note to yes.
Create ledger-Interest received (under indirect income).
Make an entry in debit note.
Dr. Concord packing services Rs. 2930
Cr. Interest received
Rs. 2930
Make another entry in receipt voucher.
Cr. Concord packing services Rs. 554130
Dr. HDFC bank
Rs. 554130
60.
19-02-2010
Paid to Ultratech Computers through cheque Rs. 300000 in full settlement of bill
dated 17-0-2009.
61.
20--02-2010
56
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
62.
Paid to Mohan Bhargav, towards hid invoice after deducting TDS Rs. 1403 on
amount payable to him.
Make an entry of transaction in payment voucher.
Dr. Mohan Bhargav
Cr. HDFC bank
63.
22-02-2010
Received the following items from Islion systems as per GRN No. 786/20-22010
Item
Quantity
Rate
Discount
Vat
Motherboard
10
3200
-4%
Make an entry of transaction in Receipt Note.
64.
23-02-2010
The company decides to use a revised price list to capture a higher market
share for the following items.
Create a price lst-2 with change in prices, effective date as on 23-02-2010.
Item
Rate
Discount
Computer(P4)
28500
15%
Computer(Athlon) 25500
15%
65.
24-02-2010
The following items were sold to Sofdesk systems as per price list-2 and
received payment by cheque. The details are as follows
Item
Quantity
Rate
Vat
Discount
Computer(P4)
10
28500
4%
15%
Computer(Athlon) 12
25500
4%
15%
26-02-2010
The company invested Rs. 14, 00,000 in 6% bonds, interest receivable half
yearly. (Payment made through cheque.
Make an entry of transaction in payment voucher.
57
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
01-03-2010
The petty cashier submitted the statement of expenses for February 2010.
Salary to staff Rs. 18000.
Electricity expenses Rs. 480
Conveyance expenses Rs. 1200.
Rent expenses Rs. 15000
Carriage outward expenses Rs. 1000.
Create ledger Carriage outward expenses under indirect expenses.
72.
03-03-2010
73.
04-03-2010
Paid TDS deducted on Mohan Bhargav invoice, amounting to Rs. 1403 through
cheque.
Sold to Stylex Trading Corporation, on credit, the following items: (Form-C was
issued)
Item
Quantity
Rate
CST
Computer(P4)
5
28500
4%
Computer(Athlon) 8
25500
4%
Create ledger Stylex Trading Corporation under sundry debtors. Type address as Hyderabad and
state Andhra Pradesh.
Make an entry of transaction in sales voucher.
74.
08-03-2010
75.
10-03-2010
76.
15-03-2010
58
Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
(Service Tax amount is automatically calculated using the rates specified in the
statutory master in Tally.)
Service Tax is charged at 12.2%.
In F11 features F3
Set enable Service Tax to yes.
Set set/alter Service Tax details to yes.
Enter company service tax details field as per follows:
Service tax registration number enter the registration number allotted to your company
by the service tax department.
Date of registration- enter the date of registration of service tax for your service.
Assesses code-enter the code given to your company by the service tax department.
Type of Organization- selects the Type of Organization from the list of organizations
menu.
Major Service category name- selects the name of service category from the list of
service categories.
Note: if your company provides two or more services, select the service category that forms the
major part of your business.
Credit Adjustment (%): Enter the percentage of credit adjustment that you would like to
avail of. The default value is 20%.
Service Tax (Sales), which is adjustable Service Tax credit (purchase), is also called
availing input credit.
If your input service (purchase) can be directly related to the output service (sales) then
you can use 100% credit adjustment on the Service tax payable.
Credit adjustment while you pay service tax collected on the sale of services that come
under the service tax category. You can adjust service tax credit availed on purchase of
services (buyer). This adjustment is called Credit against Service Tax. The difference
between the service tax that you have to pay for selling services and the service tax credit
on Purchases that can be adjusted is the payable service tax.
Focal bank Details:
Focal bank code
Focal bank name
Focal bank address
Division
Range
Commisionerate
Create the following ledgers:
Tech Services LTD Under sundry creditors. Set Service tax applicable to yes
Purchases Maintenance Services under purchase accounts. Set Service tax applicable to
yes. Select service tax category as Management, Maintenance or Repair.
Input Service Tax on Maintenance under Duties & Taxes.
Make a transaction in Purchase Voucher.
Enter this using Account Invoice
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77.
17-03-2010
Paid Rs. 5510 by cheque to Tech services Ltd. towards bill dated 15-03-2007.
78.
20-03-2010
Raised an invoice on M/S Wintech Computers for maintenance services for Rs.
11224 (inclusive of service charges Rs. 10000 service tax and cess @12.2%
Rs. 1124).
25-03-2010
Received cheque from M/S Wintech Computers towards bill dated 20-3-2010.
80. 28-03-2010 Service tax paid and service tax input credit is adjusted to output service tax.
Make a transaction in payment Voucher.
In F12- set use single entry mode for payment/receipt/contra to no.
Dr. Output Service Tax on Maintenance
Rs. 1224
Cr. Input Service Tax on Maintenance
Rs. 612
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81.
82.
31-03-2010
Interest paid on unsecured loan taken on 1-01-09 Rs. 1875 for 3 months.
31-03-2010
31-03-2010
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31-03-2010
31-03-2010
Create ledger
Interest accrued under Current Assets.
Interest on 6% bonds under Indirect Income.
Make an entry in journal voucher:
Dr. Interest accrued
Rs. 7000
Cr. Interest on 6% bonds
Rs. 7000
88. 31-03-2010 Transfer the vat credit in vat adjustment account to vat credit receivable.
Create ledger Vat credit receivable (input) a/c under Loans and Advances
Make an entry in journal voucher:
Dr. Vat credit receivable (input).
Rs. 11688
Cr. vat adjustment account
Rs. 11688
89.
SL.
No.
1
2
31-03-2010
Asset name
Depreciation (%)
(b)
10%
Depreciation (c)
(a)*(b)*6/12=(c)
2500
Assembling tables
Static electricity resistance
40000
60%
12000
gloves
3
Voltage parameter testing
30000
50%
7500
meter
4
Furniture & fixture
50000
15%
3750
5
Furniture & fixture
20000
15%
1500
(branch)
6
Electrical fittings
20000
10%
1000
7
Electrical fittings
10000
10%
500
(branch)
8
Computer (admin)
40000
60%
12000
9
Computer branch)
20000
60%
6000
10
Building (branch)
250000
10%
12500
11
Cell phone (branch)
2000
15%
150
As per the policy, if assets are used for more than six months, full depreciation is charged. If used for
less than six months, half the depreciation amount is charged.
Create ledger Depreciation under indirect expenses.
Make an entry in journal voucher.
Dr. Depreciation
Rs. 59400
Cr. Assembling tables
Rs. 2500
Cr. Static electricity resistance gloves
Rs. 12000
Cr. Voltage parameter testing meter
Rs. 7500
Cr. Furniture & fixture
Rs. 3750
Cr. Furniture & fixture (branch)
Rs. 1500
Cr. Electrical fittings
Rs. 1000
Cr. Electrical fittings (branch)
Rs. 500
Cr. Computer (admin)
Rs. 12000
Cr. Computer (branch)
Rs. 6000
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31-03-2010
Rs. 12500
Rs. 150
31-03-2010
Lesson: 10 Payroll
10.1 Payroll Introduction
To enable Payroll Feature in Tally.ERP 9
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Create Employee
Master
Employee
Masters
Employee Groups
Create Payroll
Master
Payroll Units
Attendance/Production
Types
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Earnings
Deductions
Employees
Statutory
Deductions
Employers
Statutory
Contributions
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Creating Employees
Employee Master records the relevant information about the employee.
Tally.ERP also allows you to enter the Statutory, Expat and Contract details of the
employees.
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Flat Rate
Where the value of the Pay head is a fixed amount for a period. (Pro-rata will not happen in
this type of the component).
Examples of Flat Rate Calculation Type:
Conveyance Allowance of Rs. 800.00 per month is exempt from tax and followed by many
organizations.
Fixed Loan Installment deduction amount.
On Attendance
Based on the attendance data where the component will get pro-rated.
In Tally.ERP 9 the attendance can be recorded as positive days (Present) or loss of pay
(Absent) type.
Example: Basic Salary is calculated on Attendance.
Attendance / Leave with pay
If you want to calculate the Pay Head Value using the Positive Attendance (Present).
Leave without Pay
To calculate the Pay Head Value using the Negative Attendance (Absent).
On Production
On Production Calculation Type is used to calculate the pay value based on the
Production/Work down.
As Computed Value
As Computed Value is used if the Pay Head value is based on a dependent component.
You will be able to define the dependent component by specifying the formula or using the
current sub-total or current earning or deduction total.
You can also define the slab either by percentage to value or the combination in a slab.
Example: HRA as 40% of Basic Salary.
As User defined Value
As User defined Value allows you to manually enter the value at the time of processing the
salary.
This Calculation Type is used when the value of pay is not fixed and does not depend upon
any pay components.
Example: Incentives or Variable Salary.
Creating Attendance based Earnings Pay Head
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Similarly, you can create the Pay Head for Voluntary Provident Fund Deduction also.
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Note: To restrict the PF Deduction to Rs. 780, you can specify 12% in the Value Basis and 0
to 6500 in the Form Amount and Amount Up to fields respectively. For amount beyond 6500 the
specify 780 in the Value Basis field.
Creating Salary Advance Deduction Pay Head
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PAYROLL PROCESS
Recording Attendance / Production
Processing Payroll Vouchers
Processing Employer PF Admin Expenses
Payment of Salary
Payment of PF
Payment of ESI
Payment of PT
Creating Attendance / Production Voucher
Enter Attendance, Overtime, Leave or Production details.
Enter separate vouchers for each day or
Enter a single voucher for a given pay period, say a month, with aggregated values.
Enter data for one or more or all employees.
Enter one or more Attendance types together in a single voucher.
Attendance Voucher Manual Entry
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Payslip
Pay Sheet
Pay Sheet is a matrix report with category, groups and employees cascading in rows, and
Pay Heads appears as columns. The default report contains all earnings and deduction
details for a given month or period with a number of options to reconfigure the appearance of
rows and columns.
Format of the pay sheet report may be configured to serve as a Salary/Wage register as
required by the organization.
The selection of data can be filtered based on a given category or group of employees.
Pay Sheet
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Go to Gateway of Tally > Display > Payroll Reports > Statement of Reports > Pay Sheet
Payroll Register
Go to Gateway of Tally > Display > Payroll Reports > Statement of Reports > Payroll Register
Employee Payroll Register
Attendance Reports
Attendance Sheet
Attendance Register
The Attendance Sheet report is similar to Pay Sheet report, and displays a pre-formatted report
with columns, related to your Attendance/Production data.
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Attendance Register is report is similar to Payroll Register and displays the summary report of the
Attendance vouchers.
Attendance Register
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11.1 Introduction
Excise duty or Duty of Excise is a tax on goods purchased or manufactured in India and intended for
home consumption i.e. sale in India. Excise duty is chargeable at the time of production or
manufacturing, but for convenience it is charged at the time of removal.
It is an Indirect Tax on the manufacturer or producer which is passed on to the ultimate consumer.
The levy and collection of Duty of Excise is provided under authority of them Central Excise Act. 1944
at rates specified under the Central Excise Tariff Act. 1985. The duty is commonly referred to as Basic
Excise Duty. Certain items like fiber, yarn and so on also attract Additional Excise Duty under
Additional Duties of excise Act. 1975.
Basic concepts:
The following are the some basic terms related to Excise:
1. Excisable goods: Excisable goods are goods specified in the schedule of the Central Excise
Tariff Act, 1985 as being subject to duty of Excise. The basic conditions to be satisfied are:
The goods must be movable.
The goods must be marketable (saleable in market as such goods). Actual sale of goods in the
market is not necessary as excise duty is chargeable on manufacture and not on sale.
The goods must be specified in the Central Excise Tariff Act.
2. Dealer of Excisable Goods: A dealer of excisable goods is one who is registered under Central
Excise Rules. The following categories would constitute a registered dealer.
Depot of a manufacturer or the premises of the consignment agent of the manufacturer or any
other premises from where the goods are sold on behalf of the manufacturer.
First stage dealer of excisable goods.
Second stage dealer of excisable goods.
Depot of an importer or the premises of the consignment agent of the importer.
First stage dealer of imported goods.
Second stage dealer of imported dealer.
3. First stage dealer: A first stage dealer is a dealer who purchases the goods directly from:
The manufacturer registered under the provisions of Central Excise Rules, 2002, or
representative of such manufacturer, under cover of an invoice.
An importer or from the representative of such importer, under cover of an invoice.
4. Second stage dealer: A second stage dealer is a dealer who purchases the goods from a first
stage dealer.
5. Registration of dealer: Every dealer or importer issuing cenvatable invoices should be
registered with the jurisdictional range superintendent as per the procedure prescribed in rule 9 of
Central Excise (No. 2) rules 2001. The registration is valid only for the premises for which it is
granted. Where the manufacturer or dealer has more than one premise, it is necessary to obtain a
separate registration for each premise.
The registration number is a PAN based 15 digit alphanumeric numbers. The first 10 characters
denote permanent account number issued by Income Tax authorities and the next two characters
are code as shown below and the last three digits denote number of premises registered (001,
002 and so on).
S. No.
1
2
Category
Central Excise Manufacturers
Registered Dealers
code
XM
XD
6. CENVAT Credit: A manufacturer or producer or final products is allowed to take tax credit known
as CENVAT Credit.
7. Enable Dealer Excise in Tally: Tallys Dealer Excise module facilitates complete excise
accounting for dealers engaged in trading of excisable goods and desiring to issue cenvatable
invoices. It minimizes the possibility of erroneous data entry and ensures transparency.
8. Features of Dealer Excise Compliant tally: The features of the excise modules in tally are:
Simple and user friendly.
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9. Company Setup
Create a company Arcelor Industries, which deals with cold rolled coils, sheets, scalp, and has a
bank account in HSBC with an opening balance of Rs. 560000.
In F11 features in F3- set enable Dealer Excise to yes and set alter dealer excise to yes. Ensure
that the completed Company Excise details screen displays as shown.
Set enable Value Added tax (VAT) to yes and set alter vat details to yes.
1.
15-4-2010
Arcelor Industries purchased the following items from Stalin Steel Industries
(manufacturer) (Invoice No. 487)
Item description
Qty (Mts)
Rate
Accessible Value
Excise duty @ 16%
Education cess @ 2%
Total amount
Vat @ 4%
Invoice Amount
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2.
20-4-2010
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25-4-2010
Item description
Hot rolled Coils 100 mm
Qty (Mts)
5
Rate
600
Vat
@ 4%
Create a voucher type for Excise sale return. Type of voucher: credit Note
Set Use for dealer excise to yes.
Enter transaction in Credit Note (type of voucher: Excise sale return).
Select Goods Sold Returned as the type of vat adjustment in the Used For field.
Enter the required details.
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A Fixed Budget is one which is not adjusted for changes in the volume of service. It is
designed to remain unchanged, irrespective of the level of activity attained, and is usually prepared
for defined quantitative and financial levels.
A Flexible Budget is based on different levels of activity, i.e., it is dynamic in nature. It is a very useful
tool for comparing actual costs vis--vis the cost allowable, for the activity level activity level achieved.
Flexible budgeting distinguishes between fixed and variable costs, thereby allowing for a budget
which can be automatically adjusted to any level of activity. It is a budget which is designed to be
modified in accordance with the level of activity of operation
On net transaction
On net transaction
150000
12400
On net transaction
On net transaction
On net transaction
On net transaction
On net transaction
On net transaction
5400
150000
500
3000
2000
1500
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This fields which display in the scenario creation screen and the appropriate actions to be
taken are given in the following table.
Field
Name
Include Actual This Field is set to yes if the actual need to be viewed
in the reports.
Exclude forex Gain/Loss Calculations :This Field is set to yes if the
unadjusted forex Gain /Loss element need to be viewed in the
scenario
Exclude Inventory tracking Calculations :This field is set to yes if the
sales /purchased bills pending element need to be viewed in the
scenario
Include :In this field the type of voucher which are required to affect
the scenario created have to be selected from the list of voucher
displayed .only voucher which do not affect the books of accounts
are permitted for selections
Exclude: In this field the type of voucher which are required not to
affect the scenario created have to be selected from the list of
voucher displayed
Action
Type scenario one
Set -yes
Set-No
Set no
Select Journal
To Created Scenario- Two enter the details given in the following table
Field
Name
Include Actual
Exclude forex Gain/loss Calculations
Exclude Inventory Tracking Calculations
Include
Exclude
To view the effect of scenarios
Actions
Type Scenario two
Set Yes
Set No
Set No
Select Memorandum
Select end of List`
Make an entry in a Journal and mark it as optional by clicking the button ctrl + L
Particulars
Depreciations
Assembling Tables
Static Electricity Resistant
Globes
Dr
19375
-----
Cr
1250
6000
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---
3750
-------
500
6000
1875
1.
2.
3.
4.
5.
6.
7.
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Exit Tally after the modification implementented in the Security control fields. Now, attempt to open
Tally opens the Company Login screen where you will be asked to enter the User Name and
Password. Type Admin (Name of the Administrator) in the Name of User field and Admin in the
Password (if any) field. Press Enter Login.
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The menu allows you to define access under Users and Passwords
User Name: Karan
Password: Bit123
Security Level :Owner
Type of Security
In security Control, Click Type of Security .The screen display as show
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Leave Blank
The screen is divided into two broad columns with two sub-columns .The left of the screen is to
disallow access to the various options of the system ,While the right of the screen denotes the
security level for different facilities
The sub-columns are Types for Access and List of Report under both Allow and disallow Facilities
.Entry the type of Access which you wish t give and the options sought to be controlled .Once the
entry is completed, Select End of List form Type of Access field to complete the allocations.
After the setting have been entered, the screen for Level Definitions displayed as shown
Accepts the above setting and the screen Security Levels for Company opens .Following the same
procedure if you want to create another Security level .Else Accepts and return to the Security
Control menu
Note: Only the Administrator can assign users and their passwords
In the following transactions details or March 2009, you will see how the Security Level has been
implemented in tally
Open the company using the following
Username: Karan
Password: Bit123.
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Lesson: 13 Tally.ERP 9
Tally.ERP 9 has been designed with you in mind. Powerful connectivity makes information available
with your staff, CA and other professionals, round-the-clock, in any place. Tally.ERP 9 has all the
features required for high performance business management including remote access, audit &
compliance services, an integrated support center and security management.
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In case of any updates / changes in TDL, only TDL Server.dll file needs to be downloaded
and not the entire Tally application which enables faster downloads.
This will help in dynamic loading and unloading of TDL files while tally application is running.
Forthcoming Tally developer will be directly using this component, thus eliminating the need
for a separate DefTDL.dat file.
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system administrator can also create remote users (Tally.NET users & Tally.NET
auditors) and allow / disallow them to remotely access the data.
The predefined security levels in Tally.ERP 9 are:
Owner This security level refers to the ownership for the complete account. the owner can
create standard users or owners with required permissions.
Standard user Created by the owner with required permissions.
Tally.ERP 9 provides a new capability known as support centre, where in a user can directly
post his support queries on the functional and technical aspects of the product. Using support
centre feature, the user can view all the support queries reported via support centre and also
through other modes via., Email, calls, etc.
The support centre feature facilitates viewing queries for and activated license along with the
stats i.e. closed / pending and Ticket summary. The report is viewed based on Date, status
and location.
Faster reach for help and support
The support centre makes it easy and convenient to reach out tally support, including the tally
service partner, for nay product help and support, by a click of a button from within the
product.
Access solutions to your problems any time
This feature facilitates instant reference to the solutions provided for your queries at any point
of time.
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Ratios normally have decimal places. To view the true ratios in Ratio Analysis statement, the
number of decimal places in the currency information has to be altered.
To alter currency information
Go to G at ew ay of Ta ll y > Ac co u n t Inf o >Cu r ren ci es > Al t er
Retype the value in number of decimal places field.
To view the ratio analysis statement
Go to G at ew ay of Ta ll y > R at i o An a l ys i s
15.2 Objectives
A cash flow statement is of primary importance to the financial management. It is an essential tool of
short term financial analysis. Its main uses are as follows:
Cash flow statement facilitates sound financial policies, while helping to evaluate the current
cash position.
A projected cash flow statement is prepared to evaluate the future cash position of a company
and to enable a firm to plan and co-ordinate its financial operations properly.
It helps in obtaining loans from banks and other financial institutions. The repayment capacity
of the firm is assessed by going through its cash flow statement.
It helps the management in taking short term financial decisions.
This statement explains the causes for poor cash position despite substantial profits in a firm,
by throwing light on various applications of cash made by the firm.
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15.2.1 Limitations
The cash flow statement is a useful tool for financial analysis. However, it has the following limitations:
A cash flow statement only reveals the inflow and outflow of cash. The cash balance disclosed by
this statement may not depict the true liquidity position. There are controversies over a number of
items like cheque, stamps, and postal orders and so on, to be included in cash.
It cannot be equated with income statement. An income statement takes into account both cash
and non cash items. Hence, cash fund does not mean net income of the business.
Working capital being a wider concept of funds, a fund flow statement presents a more complete
picture than a cash flow statement.
15.3 Objectives
A fund flow statement is a useful tool for analysis of funds. The basic purpose of this statement is
to indicate the source and application of funds for a given period.
Fund Flow statement:
Determines the financial consequences of business operations. It shows how the funds were
obtained and used in the past.
Helps the management to formulate its financial manager can take remedial steps if there is
any deviation from budgeted figures.
Serves as a control device. The financial position of the enterprises.
Indicate the causes for changes in working capital.
Helps to identify the various uses of funds.
Inform whether sources of funds are increasing or decreasing.
15.3.1 Limitations
It is only a rearrangement of data appearing in the account books.
Indicates only the past position and not the future.
Indicates movement of funds in a summary form. It does not show various other changes
which take place continuously.
When both the aspects of a transaction are current they are not considered.
When both the aspects of a transaction are not current they are sometimes not included in
this statement.
It is not ideal tool for financial analysis
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Choose data source window opens, which displays a list of data sources from which the data can
be imported. Select Tally ODBC_9000 from the list of data sources. You can create a new data
source if required, by clicking the option <new data source>.
A query wizard dialogue window opens. Double click Leger in the list of available tables and
columns displayed.
Select ledgers and include them in the Columns in your query window.
On clicking next, the filter data dialogue window displays. Click next without making any
modifications. The next step is to define an order to sort the data that would be imported into the
Excel Sheet.
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Once the sort order is defined, the query wizard reaches its completion and provides options to
proceed with the import of data on the inputs defined in the query wizard. Select Return data to
Microsoft excel and click finish. The query wizard can be saved for future use.
A final dialogue box displays querying the destination where the data should be placed. You can
import data into the existing worksheet or a new worksheet.
To view the Effect of updating
If you create a new ledger in Tally, than excel sheet can also be updated on clicking Refresh all
button.
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Tamil
Kannada
Malayalam
Marathi
Bengali
Telugu
You can maintain your accounts in any one of the above Indian language and view the reports in any
other language supported by Tally. The script of data and the interface of tally changes on selecting a
language.
Using Tallys Multilingual Feature
Tally has the following salient features:
Offers concurrent multilingual support.
Allows dynamic selection of scripts.
Supports data input in the language of the users choice.
Has easy to use keyboard layout which are in script as well as phonetic.
Supports user interface in about eleven languages inclusive of English.
Provides the facility to switch to multilingual user interface quickly.
Has inbuilt dictionaries to provide appropriate language conversion during runtime.
Allows you to display and print bills, vouchers, invoices, receipts, reports and ledgers in the
language of your choice.
Generate MIS reports.
Allows you to cut or copy multilingual text from other applications such as Microsoft Word,
WordPad, Instant messenger, Outlook Express. Press ctrl+c to copy and ctrl+alt+V to paste in
tally.
Tallys interface for different languages
Tally allows you to change the interface and also create a company and maintain data in languages
other than English. Go to Gateway of Tally > press Alt + L > select Hindi from language
configuration.
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i) Trial Balances
ii) Day Boo
iii) Accounts Books
A) Cash/Bank Books
B) Ledger
C) Group summary
D) Group voucher
E) Sales Register
F) Parched Register
G) Journal Register
IV) Statement of Accounts
A) Outstanding
B) Interest Calculations
C) Cost Center
D) Statistics
v) Inventory Books
A) Stock Item
VI) Statutory Info
A) Vat Classifications
Vii) Statutory Report
A) Vat Reports
B) CST Reports
viii) Cash/Funds flow
ix) List of Accounts
x) Exceptions Reports
Accounting Reports
1) Balance sheet:
A Balance sheet is financial statement that indicates the financial health or net worth of a
company at any given point .It lists the assets and liabilities of a company.
The balance sheet in tally displays the information entered in the default primary groups .It is
updated in real time with every transaction/Voucher which is entered and save .No special
processing is required to produces a balance sheet in tally
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The balance sheet with half yearly and annually details displayed as shown
3) Accounts Book
Book of accounts :Books of accounts record the individual which you have entered .Though The Item
are posted to different ledgers .Tally brings together all the transactions of one category into a book of
accounts for viewing and printing .For expels ,The cash book records all the transactions which affect
cash
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Cash/Bank Books:
To view the cash/bank summary.
Go to Gateway of tally >display >Accounts Books >cash/Bank Book
4) Sales Register
Sales register displayed the monthly summary of sales made
To view sales register
Go to Gateway of tally >displayed >Accounts Books >sales Register
Different ways to view sales register
Use F12; Configure to alter the sales register configurations setting and observe the different ways a
sales register can be viewed
To view sales registers summary on quarterly basis on Alt +F5 quarterly
To
o go to other voucher types from sales registers click on F4: voucher type
To view sales voucher registers in a columnar from,
G to gateway of tally >Display >Accounts book >sales Register>Select
Register>Select month voucher register >F5
>F5:
columnar
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5) Purchase Register
Purchase register displays the monthly summary of all purchases made to view purchased register
Go to Gateway of tally >display >accounts Books >purchase Register
To view purchase Register summary on quarterly basis on Alt +F5 quarterly
To go to other voucher types from purchase Register click on F4: voucher type
To view purchase voucher Register in a columnar from,
G to gateway of tally >Display >Accounts book > purchase Register >Select month voucher register
>F5: columnar
6) Statement of Accounts
The tally, Display of statement of accounts pertains to cost center and outstanding analysis. There are
divide from individual transactions but are not statutory requirement.
7) Cost center
Cost Centers reports are primarily performances
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8) Outstanding:
Receivable and payable are two important components of any firms working capital. Receivables are
a parts of current whereas payable are a [art of current liabilities .Each influences the short-term
liquidity and financing of the company and effective control of both is necessary for the finical health
of the firm .Tally provides many reports and analysis and to aid credit control
Receivables
Receivables are amounts which are outstanding from debtors
To view receivables
Go to Gateway of Tally >Display >Statement of Accounts >Outstanding> Receivables
The reports give an invoice By-Invoices outstanding for all receivables as on the current date. This
report takes into considerations only those accounts that have bill-by-bill options activated
Payables
Payables are amounts which are outstanding to creditors
To view Payables
Go to Gateway of Tally >Display >Statement of Accounts >Outstanding>Payables
F4: Receivables in the payable screen switches to the receivable reports likewise, in the receivables
screen, F4 Payables button is available to switch to payables reports.
9) Interest Calculations:
In Tally, Interest is automatically calculated if Active interest calculations and use advanced
parameters features are active in tally F11: Features and the related parameters are set as required
for individual ledger accounts.
There are the types of interest calculations
Interest on loans and deposits.
Interest on overdue receivables /Payable.
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Statutory Masters
VAT Classifications
VAT Classification is a list of VAT rates, which describes the nature of the business activity and the
type of transaction. These are in-built into the system and will be updated if and when any statutory
changes take place. Some of the classifications are:
Input VAT @4%
Input VAT@ 1%
Input VAT @12.5%
Input VAT @1%
Input VAT @4%
Input VAT @12.5%
Purchases Capital Goods
Purchases Exempt
Purchases from unregistered dealers
Go to Gateway of Tally>Display> Statutory Info> VAT Classifications
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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987
CST Reports display forms to be received and issued. Use Tally to track pending forms and
reconcile forms.
To view CST Reports,
Go to Gateway of Tally >Display > Statutory Reports> CST Reports
The menu displays
Form Receivable.
Form Issuable.
Form Issuable.
Form Receivable
Go to Gateway of Tally > Display >Statutory Reports >CST Reports >Form Receivable> Ledger
Select a CST party ledger from the List of Ledgers. For example, select Mumbai State Trading
Corporation.
Forms to be received for the selected ledger are displayed in the Forms Receivable screen.
Enter the Form Number and Data forms received.
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1. Stock summary
Stock Summary is a statement of stock in hand on a particular date. The statement is updated with
every transaction to provide stock position at any given time.
Tally treats stock summary as one of the primary statements and makes it accessible directly from
Gateway of Tally. As with all Tally reports, it can be drilled down and configured to view different
details, as well as total flow of stock.
To view stock summary.
2. Inventory Books
Stock Item
Stock item summary is a statement which displays the inwards, outwards and the closing balance
details of a selected stock item summary
Go to Gateway of Tally > Display > Inventory Books > Stock Item
Select a stock item from the list of items. For example, select High Capacity Stabilizers.
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