TRAINING COURSE ON ADVANCE OFFICE MANAGEMENT

1. ABACUS Manual calculative device, 5000 years old

2. Arithmetic machine Automatically manual calculative device found by

Mr. Blaise Pascal in

1642. Ex: Calculator.

3. Modern Computer - Automatically manual calculative device found by Mr. Charles Babbage in
1812.
ASCII CODE: American Standard Code o International user level Language/ High level language.

MEMORY UNIT
Primary memory
1.
2.
3.
4.

Secondary memory

Internal memory
High Speed
Less storage
Expensive in cost
Ex: RAM/ROM

1. External Memory
2. Low speed
3. High storage
4. Less expensive in cost.
Ex: Hard Disk/Floppy/
DVC/CD/Pen drive etc.

RAM: Random Access Memory

- Temporary memory/User memory/Volatile memory.
RAM: Read on memory
-

Permanent storage/Computer memory/Programmable memory

SOFT WARE

A set of programmes which acts according to the instructions is called Soft Ware.
There are 3 types of Soft ware:
1) System Software
2) Application Software
3) Utility Software
1. SYSTEM SOFTWARE: It is software which contains set of programmes provided by
manufacturer along with computer. This software makes machine easier to use. Without this
software user will not be in a position to operate systems. Eg: Operation system (O/S)
2. APPLICATION SOFTWARE: It contains a set of programmes created by the user to perform his
own task. It is a readymade software and also available in C.D.

Eg: M.S. Word, M.S. Excel,

M.S. Power Point, Tally, Photoshop etc.

OPERATING SYSTEM: It is software which acts as interference between user and computer. Eg:
DOS, WINDOW, LIUNEX, UNIX & MAC etc.
BOOTING: Bringing all units of the computer to the user level is called booting.
WINDOWS:
Windows is a multi-user, multi-Tasking operating system, which is user friendly.
ADVANTAGES OF WINDOWS:
1) It is a multi user& multi operating system.
1

2)
3)
4)
5)

It is a graphical user interference

It is a picture oriented operating system
We can open more than one application.
It is a dynamic data exchange (DDE)

COMPONENTS OF WINDOWS:
1) Desk top 2) Icons

3) Task Bar 4) Date/Time area 5) Start Button.

COMMON ELEMENTS OF WINDOWS:

1) Title Bar

2) Control Box

3) Menu Bar

4) Status Bar

VERSIONS OF WINDOWS:
WINDOW-95, WINDOW-98, WINDOW-2000, WINDOW-NT, WINDOW-MILLENNIUM, WIDNOW-XP,
WINDOW-VISTA, WINDOW-7, WINDOW-8
FILES & FOLDERS:
A set of information with meaningful name is called file.
Folder is a storage area where we can store a set of files.
STEPS TO CREATE FOLDER:
Open computer/

+ E open drive (C or D) Go to file new folder type name enter.

OR

Right click on desktop/ Drives window new folder type the name enter.
HOW TO RENAME FOLDER:
Select folder right click the mouse rename change the name - enter
HOW TO DELATE FOLDER:
Select folder right click the mouse delete Yes

M.S. OFFICE
It is an application software package used in office related works such as creating documentation,
statements, presentations and database files.
VERSONS OF M.S. OFFICE:
Ms-Office -97, Office 2000, Office XP, Office 2003, Office 2007, Office - 2010, Office 2012

The software available in M.S. Office:

SL.
NO
1
2
3
4

S.W. NAME
M.S. WORD
M.S. EXCEL
M.S. POWER POINT
M.S. ACCES

TECHNICAL NAME
WORD PROCESSOR
SPREAD SHEET
PRESNETATION PACKAGE
DATEBASE / RDBMS
2

EXTENSION
*.doc
*.xlsx
*.pptx
*.accdb

M.S. WORD:
It is software used to create professional documents such as letters, bio-data, drafts, invitations,
quotations & book documentation etc.
IMPORTANT FEATURES OF M.S. WORD:
a) Spelling & grammar check - F7
b) Protection of documents
i) Opening protection
ii) Editing protection
c) Header & Footer
d) Macros.
e) Mail merge.
HOW TO OPEN M.S. WORD:

Start All programmes M.S. office M.S. word 2010.

OR

Press

+ R Type winword OK.

HOW TO SAVE:
Go to file save as OR F12 displays save as window select location (computer drive
folder) type file name save.

CREATING M.S. WORD FILES IN FOLDER:

Open folder right click mouse new Microsoft word document type the file name enter -- Open
file add the contents Ctrl+Sto saves the document.
SPELLING & GRAMMER CORRECTION:
Right click on mistaken word displays correct suggested word list -- select the correct word from
suggested list and click to replace or correct.
TYPES OF SELECTION:

Word selection
Line selection
Paragraph selection
3

Picture selection,
Selecting all
Multiple selections.

Multiple selection Ctrl+selection for different words/lines/paragraphs

a) Cut & paste select the contents to be cut right click mouse cut or Ctrl+x place the
cursor on insertion point right click mouse paste/Ctrl+V.
b) Copy & paste - select the contents to be copy right click mouse copy or Ctrl+C place
the cursor on insertion point right click mouse paste/Ctrl+V.

FORMATING/SETTINGS:
TEXT FORMATING: Under this option the following features will be done.
I) Font setting
II) Paragraph setting
III)Applying Bullets & numbers
IV) Applying Borders & shading
V) Applying changed case.
I) Font setting:
a) Font type
b) Font Style Normal / Bold (Ctrl+B)/ Italic (Ctrl+I)
c)Font Size:
i) Increase font size

Ctrl+] OR big A

ii) Decrease font size

Ctrl+[ OR small A

a) Font underline
b) Font colour
c) Font effect
i) Superscript

Ctrl+U

ii)Subscript

- Ctrl+=

- Ctrl+Shift+=ORX2
OR X2

II) PARAGRAPH SELECTION:

a) Indent
i) 1st Line
1) Apply

- tab

2) Remove

-Shift+Tab

ii) 2nd Line

1) Left
2) Right
a) Alignment
i) Left
j) Centre
k) Right
l) Justify
b) Line spacing
i) Single line
ii) Double line
iii) 1.5 line

- Ctrl+L
- Ctrl+E
- Ctrl+R
- Ctrl+J
- Ctrl+1
- Ctrl+2
- Ctrl+5

APPLYING CHANGE CASE: (Shift+F3) Home font Aa

5

Sentence case Upper case

Lower case

Title case
Toggle case

It capitalizes the first character of the selected text

It changes all character of the selected text to upper case
character.
It changes all character of the selected text to lower case
character.
It capitalizes the first character of each word in the selected text.
It capitalized the first character of work in lower case character
and remaining character in upper case.

HOW APPLY BULLETS & NUMBERS:

Select Para right click the mouse select Bullets - Bullet type or select numbering number
type.
HOW TO APPLY OPENING PASS WORD:
Open file press F12 (save as) tools general options pass word to open type the pass
word OK retype the same pass word OK save.
PAGE LAYOUT:
Go to page layout page setup size (for size selection) orientation (for page orientation
portrait or landscape) Margins (Select pre-defined margins OR custom margins to make own margin
selection)
HOW TO CONVERT/SPLIT PARAGRAPH INTO NUMBER OF COLUMNS:
Select paragraph page layout page setup columns select required columns.
HOW TO BREAK THE CONTENTS:
Place the cursor before paragraph page layout page setup break OK.
HOW TO APPLY WATER AND REMOVE MARK:
Go to page layout page background water mark custom water mark (1) Picture water
mark select picture select the picture from location insert.
(2) Text water mark select text type the text select colour select diagonal/Horizontal OK
To remove page layout water mark remove water mark.
HOW TO APPLY PAGE BORDER:
Go to page layout page background page borders select required type.
INSERTING PICTURE:
a)

Clip Art: Place the cursor in document - insert Illustrations clip art displays

b)

art window click go displays clip art list select & click on the clip art to insert.
Inserting Picture: Go to insert illustrations picture select picture from the
location insert.

FORMATING PICTURE/CLIP ART:

Select picture go to format size set the required size.
APPLYING TEXT WRAP SETTING:
6

Select picture right click mouse wrap text select the Style (Tight/square/behind text/in front
of text)
APPLYING FRAME:
Select picture go to format picture styles click frame list select frame size and click.
APPLYING COLOUR:
Select picture go to format adjust colours select the required style/colour.
APPLYING MIRROR EFFECT:
Select the picture go to format arrange mirror typeHorizontal or Vertical.
INSERT OF HEADER & FOOTER:
Go to insert header & footer header - select the style from the list - click type of the header
contents click close header & footer.
INSERT FOOTER:
Go to insert - header & footer footer - select the style from the list click close header &
footer.
INSERTING PAGE NUMBER:
Go to insert - page no. - Select bottom or top of the page - select the style-ok.
CHANGING PAGE NO. FORMAT:
Go to insert - header & footer - page no. Format page no. Click number format list select
number style OK.
INSERT TEXT BOX:
Go to insert text - text box - draw text box - press and drag into the document is required &
place - enter the text to display.
REMOVING TEXT BOX OUTLINE:
Select text box - go to format - shape style - shape outline - no outline - OK.
INSERTING WORD ART:
Go to insert text - word art - select the style - type the contents to be display in selected style.
INSERTING SIGNATURE LINE:
Go to insert text - signature line OK type suggested signature - type suggested signature
title (Designation) - OK.
HOW TO CREATE FORMATS USING MACROS:
a) Create new files or press Ctrl + N. Go to view macros - type the macros name - OK.
b) Type the contents or format to be record at last - go to view macros macros - stop
recording.
HOW TO RUN MACROS:
Press Alt+F8 select the record macro from the list run.
HOW TO DELATE MACROS:
7

Press Alt + F8 (view macros) select macros from the list delete yes.
TRACK CHANGING
HOW TO SET TRACK CHANGING OPTION
Open file review tracking track changes change tracking option select the required
settings OK.
HOW TO REJECT CHANGES:
Go to review changes reject reject all changes in the document.
HOW TO APPLY TRACK CHANGES PROTECTION USING PASS WORD:
Go to review protect protect document restrict formatting & editing select allow only this
type of editing in the document select tracked changes yet, start enforcing protection type the
pass word re-enter the same pass word OK.

HOW TO REMOVE PASSWORD

Go to review protect protect document restrict formatting & editing stop protection type
the pass word OK.
HOW TO INSERT TABLE:
Go to insert tables insert table select No.of columns &no.of rows enter.
RESIZING OF ROWS & COLUMNS:
Select column or row go to layout cell size set row height or column width according to the
requirement.
HOW TO SET CELL ALLIGNMENT:
Select row/column/table right click on mouse select cell alignment set the required
alignment from the list.
HOW TO INSERT ROW OR COLUMN:
Select the column or row go to layout go to rows & columns use following option:
1) For insert rows: Insert above or insert below
2) For insert columns: Insert left or right.
HOW TO REMOVE/DELATE ROW OR COLUMN OR TABLE:
Select the column or row or table go to layout go to rows & columns delete select delete
cell/column/row/table.
HOW TO INSERT ADDITIONAL ROWS OR COLUMNS WITHIN CELL:
Select the cell go to layout merge split cell specify no. of rows and no. of columns OK.
HOW TO SPLIT THE TABLE:
8

Select the cell from where the table has to be split go to layout merge select split table.
HOW TO MERGE THE CELLS:
Select the cells to be merged from the table right click on mouse select merge the cells.
OR
Select the cells to be merged from the table go to layout merge merge cells.

HOW TO SORT RECORDS:

Select table go to layout data sort click sort by list select the fields to be sort select
ascending or descending OK.
HOW TO REPEAT HEADER ROWS TO ALL THE PAGE:
Go to page layout page setup margins go to sheet select rows to repeat at top OK.
Go to layout data repeat header rows
MAIL MERGE
It is an option used to send a single letter to different addresses.
STEPS TO BE FOLLOWED:
1) Prepare a required letter without To address.
2) Prepare address list in a table with headings (fields).
Model:
Name

House no.

Street No.

Area

City

HOW TO MERGE ADDRESS FILE WITH LETTER (MAIL MERGE)

Create a letter without To address go to mailings start mail merge start mail merge letters
OK.
Select recipient use existing list select address file which is already created or stored open.
Insert the fields in letter by clicking insert merge field and selecting fields.
Go to finish finish & merge - edit individual document all - OK.

M.S. EXCEL:
M.S. Excel is software used to create financial statements such as Salary statement, stock statement,
marks list, budget, Income & expenses report etc. Technical name of M.S. Excel is SPREAD SHEET.
CONCEPT OF SPREAD SHEET PACKAGE:
M.S. Excel is a workbook by default it contains 3 worksheets named as sheet-1, sheet-2 & sheet3.
Each worksheet contains grid of 1048576 rows and 16384 columns. Row header named as Numbers

(1, 2, 3, 4etc.) and column header named as alphabetic character (A,B,C,Detc). The first row is No.1
and last row is 1048576. First column name is A & last column name is XFD.
CELL: It is intersection of rows and columns. First cell is called as A1 and last cell is called 1048576.
We can insert up to 255 worksheet in a single workbook.
1) TOTAL: = SUM(first cell name: last cell name) OR select total cell press
Alt + = OR go to home editing click sigma( .
2)
3)
4)
5)

AVERAGE: =AVERAGE (first cell: Last cell)

MINIMUM: =MINIMUM (first cell: last cell)
MAXIMUM: =MAXIMUM (first cell: last cell)
RESULT: =IF(and(subject1>=35,subject2>=35, subject3>=35,subject4>=35), PASS,FAIL)

If minimum is calculated and ready then =IF(minimum cell name >=35, P,F)
6) AUTO FILL: Select the formula contained cell along with blank cell press Ctrl + D

OR
Select the formula contained cell and drag to the blank cells up to where required.
FORMATING STATEMENTS:
1) HOW TO SET ROW HEIGHT:
Select statement (table) go to home cells format row height type the height click OK.
2) HOW TO SET CELL ALLIGNMENTS:
Select statements go to home alignment vertical (middle alignment) OK.
Select statements go to home alignment Horizontal (middle alignment) OK.

3) HOW TO MERGE CELLS:

Select the cells to be merging go to home alignment merge and centre.
4) HOW TO MOVE TEST TO THE NEXT LINE WITHIN CELL (WRAP TEXT):
Select the cells to be wrapping go to home alignment wrap text or Alt + enter.

5) HOW TO APPLY BORDER:

Select statement go to home format border all borders.
6) HOW TO SET DECIMAL DEGITS TO THE NUMBER:
Select number contain cells go to home number click general list select number.
7) HOW TO INSERT ROW & COLUMNS:
Select row or column go to home cells insert insert sheet rows or insert sheet columns.
OR put the cursor where the column/row to be inserted click right mouse select insert OK.
(same steps for delete option also)
8) HOW TO INSERT WORK SHEET:
Go to home cells insert insert sheet ORpress Shift + F11.
9) HOW TO DELETE WORK SHEET:
Go to home cells delete delete sheet. OR put the cursor on the sheet which is to be
deleted click right mouse select delete OK.
10) HOW TO RENAME WORKSHEET:
Select sheet go to home cells format rename sheet type the name enter.

OR
10

Right click on work sheet rename type the name enter.

11) HOW TO MAKE DUPLICATE COPIES OF WORKSHEET:
Select sheet go to home cells format move or copy sheet select the sheet to be copy
select create a copy OK. OR select sheet press Ctrl button + left mouse leave the mouse
where the duplicate worksheet required release Ctrl button.
12) HOW TO PROTECT WORK SHEET:
Select sheet to be protected go to home cells format protect sheet type the pass word
OK re-enter the same pass word OK.
13) HOW TO UN PROTECT WORK SHEET:
Select protected work sheet go to home cells format un protect sheet type the pass
word OK.

PAGE LAYOUT
1) HOW TO SET PAPER SIZE:
Go to page layout page setup size select required page size OK.
2) HOW TO SET ORIENTATION:
Go to page layout page setup Orientation select portrait / landscape OK

3) HOW TO SET PAGE MARGIN:

Go to page layout page setup margin select available page margin option or custom
margins set the margin according to requirement OK
4) HOW TO SET PRINT AREA:
Select required portion in a statement - Go to page layout page setup print area set print
area OK
5) HOW TO INSERT PAGE BREAK:
Select the starting column of the record - Go to page layout page setup break insert page
break OK.
For removing remove page break OK.
6) HOW TO REPEAT ROW HEADER (FIELD TO EACH PAGE):
Go to page layout page setup print title rows to repeat at the top select the field row
header OK
7) HOW TO ADJUST SCALE MARGIN:
Go to page layout page setup scale to fit scale adjust the scale percentage.
11

HOW TO INSERT GRAPH CHART.

1) Select the required columns by holding Ctrl button + right mouse go to insert chart
columns select the chart type.
2) HOW TO CHANGE CHART TYPE:
Select chart go to design types change the chart type select the required chart type
OK.
3) HOW TO MOVE CHART/CHART SHEET:
Select chart design location move chart select new sheet OK.
4) HOW TO CHANGE CHART DESIGN:
Select chart design chart size click the list select the style.
5) HOW TO DISPLAY DATE LABLES:
Select chart layout labels date labels show or note to remove.

HOW TO SORT RECORDS

Select the table/statement data sort & filter sort click sort by list select the field name
select order A to Z or Z to A OK.

TRANSPOSING RECORDS:
Select the record to be transpose Ctrl + C select the cell home clip board paste
paste special select transpose OK.~

FILTERING
1) HOW TO APPLY FILTER:
Select fields (column heads) go to data sort & filter filter. (for removing same steps)
2) HOW TO FILTER RECORDS:
Select required fields click filter arrow uncheck select all select the details to be displayed
OK.
3) HOW TO FILTER NUMBERS:
Select number contained field - click filter arrow number filter select the following options:
a) Greater than
b) Less than
c) Greater than or equal to
d) Less than or equal to
e) Between
f) Top 10
g) Bottom.
4) HOW TO CLEAR NUMBER FILTER:
Select FILTERED COLUMN click filter arrow clear filter from.

12

5) HOW TO REMOVE DUPLICATE RECORDS:

Select table/statement data data tools remove duplicate click unselect all select the
required field OK.
6) HOW TO GROUP ROWS/COLUMNS:
Select row/column to be grouped data outline group select rows or columns OK use
() buttons to hide & use (+) button to unhide in column/rows header. (For ungroup same
procedure use ungroup instead of group).
7) RESTRICTING CELL CONTENTS: (TEXT OR NUMBERS)
Select input cells go to data data tools data validation list select data validation settings
click allow link select whole number click data list select between type minimum
number & maximum number select error alert type title (warning) type error message
OK.
8) HOW TO CIRCLE INVALID DATA:
Select restricted cells go to data data tools data validation list circle invalid data OK.
9) HOW TO REMOVE CELL RESTRICTION:
Select restricted cells go to data data tools data validation list data validation click clear
all OK.
NAMING OF SHEET (SHORT CUT METHOD OF GETTING INFORMATIONS)
HOW TO NAME TABLE & COLUMNS:
Select table or statement go to formula defined names define name type the name OK.
Select column along with field formulas defined names define name type the name
OK.

VLOOKUP
HOW TO ACCESS RECORDS FROM THE STATEMENT OR TABLE USING V-LOOKUP
FUNCTION.
Create a table to access required fields.
MO
NT
H

BAS
IC

Apr09

1300
0.00

May
-09

1300
0.00

Jun
-09

1300
0.00

Jul09

1300
0.00

Aug
-09

1300
0.00

D.A

H.R
.A.

C.
C.
A

M.
A,

347
8.0
0
347
8.0
0
347
8.0
0
425
8.0
0
425
8.0
0

260
0.0
0
260
0.0
0
260
0.0
0
260
0.0
0
260
0.0
0

30
0.0
0
30
0.0
0
30
0.0
0
30
0.0
0
30
0.0
0

20
0.0
0
85
0.0
0
20
0.0
0
20
0.0
0
20
0.0
0

GRO
SS
1957
8.00
2022
8.00
1957
8.00
2035
8.00
2035
8.00

EP
F

D.
F.

P.T
.

LI
C

GI
S

197
7.0
0
197
7.0
0
197
7.0
0
207
1.0
0
207
1.0
0

10
0.0
0
10
0.0
0
10
0.0
0
10
0.0
0
10
0.0
0

20
0.0
0
20
0.0
0
20
0.0
0
20
0.0
0
20
0.0
0

73
9.0
0
73
9.0
0
73
9.0
0
73
9.0
0
73
9.0
0

75
.0
0
75
.0
0
75
.0
0
75
.0
0
75
.0
0

I.D
MONTH
B.P
G.P
T.D
N.P

13

TO
TAL
DE
DU
309
1.0
0
309
1.0
0
309
1.0
0
318
5.0
0
318
5.0
0

NET
PAY
1648
7.00
1713
7.00
1648
7.00
1717
3.00
1717
3.00

1)
2)
3)
4)
5)

Month: =VLOOKUP(select input cell(ID),table name(table name),column No.1,0) enter.

B.P: =VLOOKUP(select input cell(ID),table name(table name),column No.2,0) enter.
G.P: =VLOOKUP(select input cell(ID),table name(table name),column No.7,0) enter.
T.D: =VLOOKUP(select input cell(ID),table name(table name),column No.13,0) enter.
N.P: =VLOOKUP(select input cell(ID),table name(table name),column No.14,0) enter.

HOW TO FREAZE FIELDS & NAMES:

Select the cell below the field & right side of the name go to view window freeze panes
freeze panes.
HOW TO REMOVE FREEZE:
Select the cell below the field & right side of the name go to view window freeze panes
unfreeze panes.
HOW TO APPLY CONDITIONAL FORMAT:
Select the required fields go to home styles conditional formatting Highlight cell rules
greater than/less than/between/equal to/text that contains/A date occurring/Duplicate values type the
required details select format setting OK.
HOW TO REMOVE CONDITIONAL FORMAT:
Select the required fields go to home styles conditional formatting Clear rules clear
rules from entire sheet OK.

POWER POINT
Power point is a software use to create project presentation, product presentation and seminar
presentation etc.
HOW TO INSERT NEW SLIDE:
Go to home slides new slide select slide type to insert.
HOW TO DUPLICATE SLIDE:
Select the slide from the slide list go to home slides new slide duplicate selected slide
OR Ctrl + D.
HOW TO CHANGE SLIDE LAYOUT:
Select the slide from slide list - Go to home slides layout select slide type.
HOW TO DELATE SLIDE:
Select the slide from the slide list right click the mouse delete slide OR press delete button.
HOW TO DISPLAY SLIDE SHOW:
Go to slide show start slide show from beginning or press F5
HOW TO APPLY SLIDE DESIGN:
Select slide go to design themes click design list clip design list focus design right
click apply to selected slide.

14

HOW TO SET SLIDE TIMING USING TIMER:

Go to slide show setup rehearse timings displays slide show along with timer click next
button by setting time to each slide at least click S to set the total slide show time.
HOW TO SET CONTINUOUS SLIDE SHOW (LOOP SHOW):
Go to slide show set up setup slide show select loop continuously until Esc OK.

HOW TO APPLY SLIDE TRANSICTION (ANIMATION)

Select slide from slide list area go to transition truncation to this slide click animation list
sect the animation to apply.
HOW TO APPLY ANIMATION EFFECTS TO THE TEXT & PICTURE:
Select slide select text or picture go to animation animation click animation list more
entrance effect select the animation type OK.
HOW TO ADD ADDITIONAL ANIMATION TO THE TEXT & PICTURE:
Select the slide select the text go to animations advanced animation add animation
more exit effects select the animation type OK.

15

TALLY
Business:
A System of sub components working together to accomplish a goal, making profit is business. Such
a business can be categorized in four groups, they are:

1. Finance
2. Industry
3. Trade
4. Service
According to these categories we can maintain the accounts in 2 ways. They are:
1. Accounts Only Or Cash Transaction
2. Accounts With Inventory Or Cash With Goods Transaction
TYPES OF ACCOUNT MAINTENANCE:
a) From 1st January to 31st December
b) From 1st April to 31st March

- Foreign Type
- Asian Type

VAT (Value Added Tax)

VAT is a form of sales tax. it is collected in stages on transactions involving sales of goods. Tax
paid on purchases is given credit against tax payable on sales. it is a simple and transparent system of
taxation that is fair to business and customers.
VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is the tax
paid by the producers, manufacturers, retailers or any other dealer who add value to the goods and
that is ultimately passed on to the consumer. VAT has been introduced in India to ensure a fair and
uniform system of taxation. It is an efficient, transparent, revenue-neutral, globally acceptable and easy
to administer taxation system. It benefits the common man (consumer), businessman and the
Government.

Advantages of VAT over Sales Tax

As VAT is a multi-point taxes with set-off for tax paid on purchases, it prevents repeated taxation
of the same product.

Simple and Transparent In the Sales tax system the amount of tax levied on the goods at all
stages is not known. However, in VAT, the amount of tax would be known at each and every
stage of goods sale or purchase.

VAT has the flexibility to generate large and buoyant revenues, as it levies tax on value
additions.

16

Zerorating of tax on exports is possible in case of VAT.

Fair and Equitable VAT introduces uniform tax rates across the state so that unfair advantage
cannot be taken while levying the tax.

Procedure of simplification Procedures, relating to filing of returns, payment of tax, furnishing

declaration and assessment are simplified under the VAT system so as to minimize any
interface between the taxpayer and the tax collector.

Ability to provide same revenue to the Government with lower rates of tax.

Tax does not become a cost of doing business.

Input Tax, Output Tax & Net Tax

Input Tax :It is a Tax paid by the Dealer on purchase of taxable goods from a registered dealer in
the state of Karnataka, which are used for manufacture or processing or resale. It also includes tax
paid on purchase of certain capital goods subject to certain conditions prescribed. Input Tax
includes the tax paid by the commission agent on purchase of taxable purchases within the state on
behalf of his principal.
Normally, dealer is eligible to claim input tax credit on purchase of:
Raw material, Capital goods, Packing material, Tools & Accessories used in the business and Goods of
resale.

Output Tax:It is a Tax payable by the registered dealer in respect of taxable sale of goods in the
course of his business. It includes the tax payable by the commission agent on sale of taxable
goods made by him on behalf of his principal.

Net Tax:is the Amount of output tax payable by a dealer in respect of each tax period less the input
tax deductible by him subject to the input tax credit restriction as prescribed in the act.
Accounting:
Accounting is an 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.
Accounting Cycle:
Transactions

17

Profit & Loss

Journal

Trail Balance

Ledger

This accounting cycle is generally completed in an accounting year and is again repeated in each
subsequent year.
Transactions: It is a record between two accounts.
Journal: It is a primary book of accounting.

It is a book, which contains chronological record of

transactions.
Ledger:In a business there may be several transactions relating to one particular account. In Journal these
transactions appear in different pages in chronological order while they appear in a classified form under
that particular account is the ledger, ledgers are actual account heads through which transaction is
identified. Ledgering is summarizing and classifying transactions. Separate ledger is opened for each type
of accounts. It has two sides a) Debit side. b) Credit side.
Trial Balance:The entire ledger is summarized in form of Trial Balance. It is statement of the various
ledger balances on a particular date. The various debit and credit balances of the different accounts are
debit and credit balances of the different account are taken into it. The two sides of the trial balance should
match.

If the two sides do not match, then there must be some arithmetical mistake in the book of

accounts.
Profit and loss:It is a nominal account which checks net profits or loss and finally posted to balance sheet.

Types of accounts:
Accounts

Personal a/c

Impersonal a/c

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Real a/c

Tangible a/c

I.

Nominal a/c

Intangible a/c

Personal account:
This account dealing with an individual or accounts of corporate bodies or institutions, which are

recognized as person in business dealings.

Ex: Customers accounts, Creditor account, Debtors accounts, Owners accounts, firm account and capital
account.
Rules of Personal account:
Credit --- is a giver
Debit --- is a Receiver.

II.

Impersonal Account:

1) Real account: this account related to things. There are two types in real account they are
a) Tangible account
a)

b) Intangible account

Tangible account: This accounts related to things that can be touched, felt measured etc.

Which is visible could be fixed or current asset in nature.

Ex: Cash, Building, Furniture and stocks etc.
b)

Intangible account: This accounts related to things, which are invisible that cannot be

touched but they can be measured in terms of money.

Ex: Patent account, Goodwill account etc.
Rule for Real account
Credit --- What goes out / out flow.
Debit --- What comes in / in flow.
2) Nominal account: It deals with expenses and losses, income and gains, these accounts are opened in
the book to simply explain the nature of transactions.
Ex: salary paid to employee, commission to salesman, rent to land cord etc.
Rules for normal account
Credit ---- all income and gains.
Debit ---- all expenses and losses.

Asset:Anything what will enable in business enterprise to get cash or benefit in future. Assets are the
properties of every description belonging to the trader.

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Ex: cash, goods, buildings, furniture, plant and machinery, book debts, investments, etc. They also include
nominal or intangible assets.
There are three types of assets.
1. Fixed assets

2. Current assets

3. Liquid assets

Fixed assets:
Assets that are acquired for relatively long periods for carrying on the business of the enterprise and
not meant for resale. Ex: land, building, plant, and machinery.
Current assets:
Assets, which are held essentially for a short period and are meant for converting into cash within
one operating cycle of business. Ex: cash, inventories, bills receivable, debtors etc.
Liquid assets:
Assets, which are immediately, convert table into cash within much loss. Ex: bones, stamps,
marketable securities etc.

Meanings:
Goods:It refers to any merchandise in which the trader deals for example for merchant cloths are goods
and so on.
Transactions: A transaction is a business dealing, which involves transfer of money or moneys worth from
one person to another.
Cash Transactions: Cash Transactions are those where cash is received or paid in the exchange.
Credit Transactions: Are those which give rise to the relationship of debtor and creditor between the two
parties to the exchange and where cash is not immediately received or paid.
Creditor: Any person who gives credit is a creditor.
Debtor: A person who owes money to the business is a debtor.
Liabilities: It is the amount, which a business owes and has to return. It is debts owned by the trader to
others. They include amounts owned by the trader for cash borrowed, goods supplied to or services
rendered to him, loans from banks, trade creditors.
Capital: It refers to the amount invested by the proprietor in a business enterprise. It is an owners a/c and
personal a/c. A trader commences his business with a certain amounts of capital. This capital may be in
the form of cash or in the form of other assets. After starting the business these capital does not remain in
the original form. The surplus or excess of assets over liabilities represents his capital. Capital is a liability
towards the owner. Therefore, it is also called owners equity (owners claim against the assets).
Sundry creditor: It refers to a group of creditors.
Sundry debtor: A group of debtors is known as sundry debtors.

20

On credit: When goods are purchased or sold without paying or receiving cash on delivery of goods are
said to e purchased on credit.
On Account: When a trader makes a part payment or receives a part payment to his creditors or from his
debtors respectively he is said to have on account.
Drawings: Drawings are referring to cash withdrawn or the value of goods utilized by a proprietor of a firm
for his private, the amount of drawings is transferred to the capital accounts at the end of the trading period.

Tally Screen
Tally is a financial Accounting Software Package. It is very popular than other Accounting Software
packages like WINCA, DOCEASY, WINGS, DUSYLITE etc. Tally is legendary power of simplicity has
proven to be the perfect solution for all Accounting, pay roll and inventory needs. Tally is easy to use with
basic computer skills and some knowledge of accounting concepts and windows operation. The latest
version of the Tally package is Tally 9. The dynamic features and Micro soft capabilities in Tally 9 are
designed to simplify business operations, while giving complete control over accounting, inventory and
statutory process Multi lingual and data synchronization capabilities allow the business to transact without
language barriers or geographical boundaries. Tally Accounting Software works on all major PC operating
plot forms like Windows 95/98/ME/XP operating system. In network environment data could reside on any
file server including windows 98/ME/NT/2000 Network, Unix and Linux Servers. The network protocol
supported is TCP/IP.
The gateway of tally screen can be divided into following 4 parts:
a) Product Information
d) Calculator

b) Working Area

c) Button Bar

a) Product Information: It displays information about software version and release, current date, time etc.
b) Work Area: The work area at Gateway is broadly separated into two sections. The right hand side
contains the menu, and left hand side displays list of selected companies, current period and current date.
c) Button Bar: It consisted of buttons appear at the right of the screen. Buttons provide quick access to
different options, which varies from screen to screen. Active buttons are shown in solid color, inactive
buttons are grayed.
d) Calculator: While working with Tally, at any moment we can work at work area or with calculator. By
default work area becomes active and calculator remains inactive. Press Ctrl+N to activate calculator and
enter values and operators, by pressing enter result would be displayed in next line to return to work area,
press Ctrl+M.

Creation of Company:To create a company, select "Create Company" option from

"Company
Info." menu. Company creation screen is divided into two section, in top section, enter the information
related to the company and at bottom section information related to base currency in which accounts of the
company would be maintained.
Selection of Menu options:
You can select a menu in either of the following options/mode
(a) Press the highlighted characters.
(b) Move highlight bar on the option with up and down arrow keys and press enter.
21

(c) Double click the option-using mouse.

(d) Get the use of Function Keys.
Function Keys:
F1-Select Company
F1-Shut Company (Alt+F1)
F2-Date
F2-Period (Alt+F2)
F3-Company Info.
Accept- Enter or Y
Cancel- Esc or N

Groups:
Classifying ledger information based on their functions is called groups. Groups are helpful in
classifying& identifying accounts heads based on their nature. Grouping helps in presenting summarized
information at the highest level of grouping a/cs are classified into assets & liabilities, income &
expenditure.

Groups by default (pre-defined groups):

Tally provides you with 28 pre-defined groups to save you from unnecessary burden of creating
frequently used groups. Out of these 28 groups,15arePrimary groups&13 Sub-groups. Subgroup is a part
of the main group.

Capital in Nature
1. Capital assets It holds capital & reserves of the company.
Ex: Proprietors or Owners Capital a/c, Partners Capital a/c, Share Capital.
a)Reserves & surplus related reserves retained earnings is the alias name for reserves & surplus.
Ex: Capital Reserve, General Reserve, Reserve for Depreciation.

2. Current assets It consists of 6 sub-groups. It all the assets of the company could not be allocated
in any of these sub-groups then the primary group current assets can accommodate it.
a) Bank a/c s It holds current savings, short term deposits etc.
b) Cash-in-hand this holds ledger a/c for cash more than one cash a/c can be opened if headed.
Ex: petty cash a/c.
c) Deposits (assets) It holds deposits like Fixed Deposits, Rental Deposits, Security deposits
etc.
d) Loans & Advances (assets) It is for holding loans given by the company which are nontrading in nature. Ex: Salary advance, Advance for purchase of Fixed Assets.
e) Stock-in-hand It holds opening and closing stocks. It is a special group. Balances depend on
the type of inventory management option selected while creating a company. Ex: Raw-Materials
a/c, Work in progress, finished goods.
f) Sundry Debtor It holds the account of the debtors who owe money to the business.

3. Current Liabilities - It holds outstanding Liabilities, Statutory Liabilities and some other minor
Liabilities. Liabilities such as PR, TDS, ESI, also fall under this group.
a) Duties & Taxes It holds the accounts of Trade duties, Excise duty, Local Sales Tax (LST),
Central Sales Tax (CST)
b) Provisions This acts as a reserve like provision for depreciation, provision for taxation etc.
c) Sundry Creditors It holds the account of the trade creditor of the company.
22

4. Fixed Assets It is a convenient place for holding the fixed assets of the company.
5. Investment It holds the accounts of overall investments like bonds, shares, government security,
long-term bank deposits etc.

6. Loans (Liability)

It keeps an account of the loans taken by the company.

a) Bank OD account Bank OCC is the alias name for Bank OD account. It holds overdraft
account like hypothecation accounts, bill-discounting account etc. of the bank.
b) Secured loans It holds the accounts of the loans taken by the company from banks and other
financial bodies by mortgaging its fixed assets. It is a secured loan so it has to be returned from
the fixed assets of the company even if the company fails.
c) Unsecured loans This is unconditional loan obtained from partner/director or outside parties.

7. Suspense account -As the name implies it is created when there is some discrepancy in the
balance sheet. It is a balance sheet item.
Ex:Travelling advance whose details will be known only after the submission of TA bill.

8. Miscellaneous Expenses (Asset) This is mainly for legal disclosure requirements, like
schedule VI of the Indian companys act. It is rarely used.

9. Branch/Division It holds the accounts of the entire companies sister concern, branches, divisions,
affiliation etc. of the existing company.

Revenue in Nature
1. Sales Account - It holds the different sales account. The sales account can be categorized as types
of sales (Domestic sales, Export sales) and the tax slabs. To have an idea of net sales after return one can
even open an account sales return under the group domestic sales.

2. Purchase account It holds the accounts related to purchase.

3. Direct Income It holds the account of the direct income like income due to sales of goods. A
professional service company may like to open an account as professional fees instead of sales account
under this group.

4. Indirect income It holds the accounts of non-sale indirect income, like income from rent received,
commissions received, interest received etc.

5. Direct Expenses It holds the direct trading expenses of the factory, like wages paid to labours,
transportation & electricity bill.

6. Indirect Expenses Expenses incurred in the administrative building, like salary paid to staff,
maintenance of vehicle etc.

23

Pre-defined Groups
Capital in Nature
1. Capital a/c
c) Reserves & Surplus
2. Current Asset
b) Bank a/c
c) Cash-in-hand
d) Deposits (Assets)
e) Loans & Advances (Assets)
f) Stock-in-hand
g) Sundry Debtor
3. Current Liabilities
a) Duties & Taxes
b) Provisions
c) Sundry Creditors
4. Fixed Assets
5. Investment

Revenue in Nature
1. Sales Account
2. Purchase Account

3. Direct Income

4.Indirect Income
(Income Indirect)
5. Direct Expenses
(Expenses Direct)
6. Indirect Expenses
(Expenses Indirect)

6. Loans (Liability)
d) Bank OD a/c (Over draft)
(Bank OCC a/c)(Over cash credit)
e) Secured loan
f) Unsecured loan
7. Suspense A/c
8. Miscellaneous expenses (Asset)
9. Branch/Divisions
Vouchers: Vouchers are used for recording day-to-day transactions. Tally has several pre-defined
vouchers with different formats, for different types of transactions. This voucher can be created only in
single mode.

1. Contra Voucher:Contra voucher is formed entering fund transfer transaction where net inflow and
outflow or equal. It can enter transaction between Cash and Bank accounts only (ledgers placed under
groups cash-in-hand, Bank accounts and Bank OCC only). The function key of Contra Voucher is F4&
background color is White.
Entry Rule: The first entry is always credit. From second entry onwards you may select Debtor (Dr.) or
Creditor (Cr.). List of ledger accounts popup would display only the ledgers place under cash, bank
account and bank OCC group at all entries.

2. Payment Voucher:All transactions related to payment (by cash or through bank) are recorded in
payment voucher. Such payments may be towards purchase, expenses; acquisition of fixed assets, dues
to creditor, loans/advances given by you or repayment of loans and advances taken by you earlier. The
function key of Payment Voucher is F5& background color is Yellow.
Entry Rule: The first entry is always debit and second entry onward you may specify debit or credit. In a
payment voucher atleast one-ledger account placed under the cash-in-hand, bank accounts or bank OCC
group must be credited else the voucher will not be accepted. You can make a multiple entries in a single
voucher.

3. Receipt Voucher:All inflow of money is recorded through receipt voucher. Such receipts may be
towards any income or from debtors or loans and advances or refund of loans and advances given earlier.
24

The voucher is similar to the payment. Voucher except that you debit cash or bank accounts and credit the
ledger from which you receive. The function key of Receipt Voucher is F6& background color is Green.
Entry Rule:
The first entry is always credit and second entry onwards you may specify debit and credit. In a receipt
voucher atleast one-ledger account placed under the cash-in-hand, bank accounts or bank occ group must
be debited; otherwise the voucher will not be accepted you can make multiple entries in a single voucher.

4.

Journal Voucher:Journal is an adjustment voucher, normally used for non-cash transactions like

adjustment between ledger accounts. The function key of Journal Voucher is F7& background color is
Yellow.
Entry Rule:
In a Journal Voucher one account may be debited and another account may be credited. There is no
restriction on number of debits and credits, provided the total of all debits is equal to total of all credits,
normally cash and bank accounts are not permitted to transact in journal voucher by if you respond Yes to
the query allow cash accounts in journal. Under voucher configuration you can transact cash and bank
account also.

5.

Sales Voucher:All Sales transaction is entered in sales voucher. Cash sales entry would
automatically appear both in sales register and in cashbook. The function key for Sales Voucher is F8&
background color is Green.
Entry Rule:
The first entry must be debit involving any debtor and second entry should be credit to a ledger placed
under sales account rules.

6. Purchase Voucher:All Purchase transactions are entered in purchase voucher. The function key of
Purchase Voucher is F9& background color is Yellow.
Entry Rule:
In a purchase voucher first entry should always be a credit involving any creditor and second entry should
be a debit to al ledger placed under purchase account group.

7.Credit & Debit note vouchers entry you should select Yes of Credit and Debit note in
Company Feature F11 menu.

Accessing Reports:
Important reports like Balance Sheet profit and loss account, ratio analysis can be accessed directly
from gateway, other reports through display options at gateway.
Balance Sheet:
Balance Sheet is the most important financial statement that reveals the state of affairs of the
company as on the date of report. Asset side lists what the company owes. All real and personal accounts
appear in balance sheet. By default balance sheet is shown with closing balance for primary groups of
liabilities in one side and assets on the other side in horizontal format.
Profit and loss account:

25

It is displayed which and the key financial statement that tells what the company earned during
reporting period all nominal accounts appear in this report. Sales, closing stock, direct & indirect income
appear in the income side. Opening stock, purchase, direct & indirect expenses appear in the expenditure
side. Excess of income over expenditure is shown as net profit. Deficit is shown as net loss.
Trial Balance:
In manual book beginning at year-end ledgers are summarized to get closing balance for each
ledger. A Trial Balance with closing balance of all ledgers to verify correctness of book once it tallies journal
entry is passed to transfer balance of all nominal accounts to profit and loss account. Thus, Profit and loss
account is generated. Balanced sheet carries balance of real and personal account. Initially you do not
need to do any such thing, as tally, internally transferred balance of all nominal accounts to profit & loss
account, real & personal account to balance sheet. Thus in tally Trial Balance is not that significant report
as in case of manual bookkeeping. However you can waive off the importance of Trail Balance that lists of
all primary group certainly showing group mane on the left & closing balance on the right.
Account Books:
The accounting reports you regularly need, namely cash and bankbooks. Ledger, sales and
purchase registers, journal registers (including debit & credit notes) can be accessed through this menu
option.

Inventory Entry (Stock):

Select Account with Inventory in Company Creation window to enter stock items.
In Gateway of Tally select Inventory Info. & create stock item /stock group.
Give the name of the stock group. Specify whether it is a primary group or a sub-group of another
group.
In Inventory Info. Select unit of measure to add units of measurement of your stock ex: Kgs,
Pcs, No,s etc.

HOW TO OPEN TALLY

Go to start all programmes tally ERP-9 Tally ERP-9.
Select work in Educational mode silver edition mode (single user) tally opens press Alt+F3 to
activate company info menu or company info button in button bar.
For selection of company press F1
For closing/shut a company Alt+F1
HOW TO CREATE COMPANY:
Go to company info menu create company fill the details accept Yes.
HOW TO SELECT COMPANY:
Go to company info select company

OR press F1 displays list select the company from

the list enter.

HOW TO SHUT COMPANY:
Go to company info shut company OR Alt+F1 select the company list select the company
shut.
26

HOW TO ALTER COMPANY:

Select company go to company info alter enter displays alteration window modify the
contents accept yes yes.
HOW TO DELATE COMPANY:
Select company go to company info alter enter displays alteration window modify the
contents press Alt+D yes yes.
HOW TO SPLIT TRANSACTION:
Select company go to company info split company data enter split from enter accept
yes.
HOW TO TAKE BACKUP:
Go to company info backup type the destination (drive) select the company to backup
end of list accept yes.
HOW TO RESTORE:
Go to company info restore type the source (location) select the company end of list
accept yes.
VAT ACTIVATION:
Press F11(features) company features statutory & taxation set the following options:
Enable VAT
- Yes
Type VAT TIN No.
- xxxxx
Type interstate sales tax No.
- xxxxx
Type PAN No.
- xxxxx
Accept
- yes.
HOW TO CREATE LEDGERS:
Gate way of tally masters accounts info ledgers single ledger
(a) Create use to create new ledger
(b) Display us to view existing ledgers
(c) Alter use to modify or delete existing ledgers (also to delete ledger press Alt+d in ledger
alteration window)
VOUCHER:
There are 6 built in vouchers in tally. They are as follows:
Contra Voucher
F4
Payment Voucher
F5
Receipt Voucher
F6
Journal Voucher
F7
Sales Voucher
F8
- Credit Note Voucher
6) Purchase Voucher
F9
- Debit Note Voucher
1)
2)
3)
4)
5)

1. CONTRA VOUCHER: It is used to enter cash to bank or bank to cash transactions.

2. PAYMENT VOUCHER:It is used to enter all types of payments (cash or cheque) transactions
except purchases.

27

3. RECEIPT VOUCHER: It is used to enter all types of cash or cheque received transactions
except sales.
4. JOURNAL VOUCHER: It is used to enter
5. SALES VOUCHER: It is used to enter all types of sale transactions except cash or credit sales.
6. PURCHASE VOUCHER: It is used to enter all types of purchase transactions except cash or
credit purchases.
CREDIT NOTE VOUCHER: It is used to enter sales return transactions.
DEBIT NOTE VOUCHER: It is sued to enter purchase return transactions.

HOW TO ENTER VOUCHAR:

Gate way of tally transactions accounting voucher.
VOUCHER CONFIGRATION:
Select voucher (payment/contra/journal/receipt/sales/purchase) press F12 to configure and set
the following options.
1) Skip date field in create mode (faster entry)
2) Use single entry mode for payment/receipt/contra etc
3) Use payment as contra
4) Use Cr/Dr instead of To/By during entry
5) Warn on negative cash balance
6) Pre allocate bills for payment/receipt/contra
7) Show inventory details
8) Show table of bill details for selection
9) Show bill wise details
10)Expand into multiple lines
11) Show ledger current balances
12)Show balance as on voucher date
13)Confirm each cheque before print
14)Use default for bank allocation
15)Use auto cheque numbering
16)Allow selection of cheque range
17)Show remarks in bank accounting details

28

Yes
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No

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