Final New Tally Material

Tally

TABLE OF CONTENTSLesson: 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

Lesson: 2 Business Organizations......................................................................................... 9

2.1 Service Organizations ...................................................................................................................... 9

2.2 Trading Organizations...................................................................................................................... 9

2.3 Manufacturing Organizations ........................................................................................................10

Lesson: 3 Accounting on Computers....................................................................................11

3.1 Accounting System...................................................................................................................11

3.2 Benefits of Accounting on computers ....................................................................................11

Lesson: 4 Tally Fundamentals ...............................................................................................12

4.1 Features of Tally .............................................................................................................................12

4.2.1 Switching between screen Areas...............................................................................................12

4.2.2 Quitting Tally................................................................................................................................13

4.3 Creations setting up of company in Tally ....................................................................................13

4.3.1 Creations of a company..............................................................................................................13

4.4 F11 Company Features ..................................................................................................................15

4.5. F12: Configure ...............................................................................................................................16

4.5.2 Voucher Configurations..............................................................................................................17

Lesson: 5 Processing Transactions in Tally.........................................................................18

5.1 Ledgers and Groups.......................................................................................................................18

5.2 Accounting Vouchers: ...................................................................................................................18

5.2.1 Contra Voucher............................................................................................................................18

5.2.2 Payment Voucher ........................................................................................................................18

5.2.3 Receipt Voucher ..........................................................................................................................19

5.2.4 Sales Invoice ................................................................................................................................19

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Ph: Manjalpur 9328994901, Sayajigunj 9016667242, Racecourse 9327219987

5.2.5 Purchase Invoice .........................................................................................................................19

5.3 Recording Transactions of Sample Data .....................................................................................19

5.3.1 Transactions for April 2009 ........................................................................................................19

5.3.2 Transactions for May 2009..........................................................................................................22

5.3.3 Transactions for June 2009 ........................................................................................................22

5.3.4 Transactions for JULY 2009 .......................................................................................................23

5.3.5 Transactions for August 2009 ....................................................................................................23

5.3.6 Transactions for September 2009..............................................................................................24

Lesson: 6 Introductions to Trading Organizations...............................................................24

6.1 Trading Organizations....................................................................................................................24

6.1.2 Differences between Trading and Services Organizations:....................................................24

6.1.3 Introductions to Inventory ..........................................................................................................24

6.1.4 Kinds of Inventory .......................................................................................................................24

Lesson: 7 Purchases and Sales.............................................................................................25

7.1 Cash and Credit purchase .............................................................................................................25

7.1.1 Cash and Credit Sales.................................................................................................................25

7.1.2 Price Levels..................................................................................................................................26

7.1.3 Debit note: ....................................................................................................................................26

7.1.4 Credit note:...................................................................................................................................26

7.1.5 Bills Receivable and Bills Payable.............................................................................................26

7.2. Duties and taxes ............................................................................................................................27

7.2.1 Vat .................................................................................................................................................27

7.2.2 Vat Tax Classification.................................................................................................................27

7.3 F11 Features....................................................................................................................................28

7.4 F12: Configure ................................................................................................................................29

7.5 Master configurations ....................................................................................................................29

Transactions for April 2009 .................................................................................................................31

Transactions for April 2009 .................................................................................................................35

7.6 Bank Reconciliations .....................................................................................................................38

7.7 Cheque Printing ..............................................................................................................................38

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Lesson: 8 Manufacturing Organization .................................................................................39

8.1 Manufacturing Organizations ........................................................................................................40

8.2.1 Accounting and commercial terms associated with manufacturing ..................................... 40

8.3 Cost Centres ...................................................................................................................................41

8.3.1 Analysis using Cost Centres ......................................................................................................41

8.4 Fiscal Environment of a Manufacturing Organisation................................................................42

8.4.1 Direct Taxes .................................................................................................................................42

8.4.2 Indirect Taxes..............................................................................................................................43

1. Central Excise Duty: .....................................................................................................................43

2. Custom Duties:..............................................................................................................................43

3. Sales Tax:.......................................................................................................................................44

Lesson: 9 Purchase, Sales and Manufacturing ....................................................................44

9.1 Processes in Manufacturing..........................................................................................................44

9.2 Purchases........................................................................................................................................44

9.2.1 Types of purchases in Manufacturing Organization................................................................45

9.2.2Recording of Purchases ..............................................................................................................45

9.3 Sales.................................................................................................................................................45

9.3.1Types of Sales in Manufacturing Organization .........................................................................45

9.3.2 Recording of Sales ......................................................................................................................45

9.4 Manufacturing/ Stock Journal .......................................................................................................46

9.4 Reorder level ...................................................................................................................................47

Transaction for November 2009 ..........................................................................................................49

Transaction for December 2009 ..........................................................................................................50

Transaction for January 2010..............................................................................................................52

Transaction for February 2010 ............................................................................................................55

Transaction for March 2010 .................................................................................................................58

Lesson: 10 Payroll ..................................................................................................................63

10.1 Payroll Introduction......................................................................................................................63

10.2 Payroll Info. ...................................................................................................................................66

10.3 Voucher Types in Tally.ERP 9 Payroll ........................................................................................72

10.4 Statements of Payroll ...................................................................................................................74

Lesson: 11 Excise in Tally......................................................................................................77

11.1 Introduction...................................................................................................................................77

11.2 Excise Transactions .....................................................................................................................78

Lesson: 12 Budgeting Systems, Scenario Management and Variances Analysis .............80

12.1 Budgets-Definition and Types: ...................................................................................................80

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12.1.1 Advantages of a Budget............................................................................................................80

12.1.2 Types of Budgets.......................................................................................................................80

12.1.3 Treatment of Budgets................................................................................................................81

12.1.4 Budgets in Tally .........................................................................................................................81

12.1.5 Variance Analysis:.....................................................................................................................82

12.1.6 Scenario Forecasts....................................................................................................................82

12.1.7Scenario management in Tally..................................................................................................82

12.2 Security control ............................................................................................................................84

12.3 Created users and Passwords ....................................................................................................85

Lesson: 13 Tally.ERP 9...........................................................................................................88

13.1 Advantage of Tally.ERP 9 ............................................................................................................88

13.2 Remote Access .............................................................................................................................88

13.3 Tally .NET.......................................................................................................................................89

13.4 Introduction to TDL Server DLL Component .............................................................................90

13.5 Control Centre...............................................................................................................................90

13.6 Support Centre..............................................................................................................................91

Lesson: 14 Ratio Analysis......................................................................................................91

Lesson: 15 Cash Flow and Fund Flow Statement.................................................................92

15.2 Objectives......................................................................................................................................92

15.2.1 Limitations..................................................................................................................................93

15.2.2 Preparation of Cash Flow Statement.......................................................................................93

15.2.3 Fund Flow statement.................................................................................................................93

15.3 Objectives......................................................................................................................................93

15.3.1 Limitations..................................................................................................................................93

15.3.2 Preparation of Fund Flow Statement.......................................................................................94

Lesson: 16 System Administrator and Other Utilities ..........................................................95

16.1 Consolidation of Accounts ..........................................................................................................95

16.2 Split Company Data......................................................................................................................95

16.3 Export and Import of Data............................................................................................................96

16.2 Import of Data ...............................................................................................................................96

16.3 ODBC Compliance........................................................................................................................97

16.3.1 Using ODBC in Tally..................................................................................................................97

Lesson: 17 Display and Report ..............................................................................................99

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Lesson: 1 Basic of Accounting

Introduction

Accounts is a finance Support System that

Records Transactions.Classifies Transactions on Events.Expresses Transactions in Monetary terms.Helps to Monitor the Financial Performance and Condition of the Business Helps to evaluate the businessHelps to establish control for the Business

Accounts helps to arrive at the financial Position of an organization at any point of time the organization’s financial status as one Particular date is Captured in the balance sheet, while financial Performance for the year is summarized in Profit & Loss Statement.

1.1 TransactionsA Transaction is an event that changed the organization’s 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:

Receipts–cash or bankPayment-cash or bankPurchaseSales

1.1.2 Recording transactionsThe essential function of accounting is to record transactions to ascertain the financial of a company as on a particular date.

The usual transactions of a business are:

Purchase of goods either as raw material for further good for resale.Payment of exp. incurred towards business.Sale of goods or services.Receipts in cash or via cheque.Other payment, in cash & cheque.


Figure 1.1 parties

1.1.2 Types of AccountsThe three type of accounting maintain for transactions with parties are

1) Real Accounting 2) Personal Accounting 3) Nominal Accounting

1) Real Accounts are maintained for assets owned or possessed by the business. Examples Include:

Buildings FurnitureCash

2) Personal Accounts are the accounts of personal whom the business is required to with.Examples include

SuppliersCustomersLenders

3) Nominal Accounts are accounts Examples Include

AssetsLiabilitiesCapital RevenueExpenses

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Figure 1.1 parties dealt with in a business Process

The three type of accounting maintain for transactions with parties are

are maintained for assets owned or possessed by the business. Examples

are the accounts of personal whom the business is required to

are accounts where income & Exp are recorded.


are maintained for assets owned or possessed by the business. Examples

are the accounts of personal whom the business is required to deal


Double entry system:Double entry accounting is a system of recording transactions in a manner that maintains the equality of the accounting equation .this accounting technique debit & a credit, where every debit has

Figure 1.2 Double Entry Systems

1.2 Rules of AccountingReal A/c

Debit What comes inCredit What Goes out

1.3 Mode of Accounting 1.3.1 Journal and Ledgers

A Journal is a book which business transactionssingle business transactions is called a evidencing the related transactions.

A voucher is document containing the details of a invoice, Purchase invoice, payslip, Rent receipt and so on

An account is a statement of transactionsincome. A ledger is the in a/c which all the accoaccounts titles used by an organization.Categorizations and grouping of its ac

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is a system of recording transactions in a manner that maintains the equality of the accounting equation .this accounting technique recorded each transaction

every debit has a corresponding credit & vice versa.

Personal A/c Nominal A/cWhat comes in The Receiver Exp and LossesWhat Goes out The Giver Income and Gains

business transactions are entered in Chronological Order .A record is called a Journal entry. Every Journal entry supported by a voucher,

.

is document containing the details of a financial transactions Example: Includes sales invoice, Purchase invoice, payslip, Rent receipt and so on.

is a statement of transactions affecting any particular assets, Liabilitywhich all the accounts are maintained. A chart of Accounts is a list of all

organization. The chart of accounts of the business shows the Categorizations and grouping of its accounts.


is a system of recording transactions in a manner that maintains the transaction as a

Nominal A/cExp and LossesIncome and Gains

onological Order .A record of supported by a voucher,

transactions Example: Includes sales

assets, Liability, expense orof Accounts is a list of all

of the business shows the

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1.3.2 Trial BalanceA Trial Balance is a list of the Balance of all Ledgers of all Ledger accounts. It is prepared after all the transactions are entered in a journal entries posted to the ledger and accounts balanced It is the sum of balance of all real & nominal accounting of the Organization. A Detailed Trail Balance has columns:

Accounts nameDebit BalanceCredit Balance

1.4 Financial StatementA Financial statement is a periodic report prepared from the accounting records of a company financial statement including the profit & loss statement the Balance sheet and cash flow statement.Financial statements are usually compiled on a quarterly basis or an annual basis.

For Reporting convenience, the Profit & loss Statement is divided into

Trading accounts Profit & Loss A/c

The profit & Loss statement can be further classified into two levels:

Gross Profit: Gross Profit is arrived at, after considering the core activities of the company. It is expressed as

Gross Profit=Net sales –cost of sales

Net Profit: Net Profit is arrived at after considering the other administrative costs incurred for the Period .It is expressed as

Net profit = (Gross Profit + other Income)-(Selling and Administrative Expenses+ Depreciation+ Interest +Taxes + Other Expenses)

1.4.1 Trading AccountsThe trading accounts is Prepared so as to arrive the gross profit earned by an organization over a specified period. This helps the Organization to arrive at the cost its core activity and calculate the direct profit from its Operation.

1.4.2 Profit and Loss Accounts:The Profit & loss accounts give the net profit earned by a company after considering all other Incomes and Expenses incurred over a period. This helps the company to monitor and control the costs incurred and improve its efficiency. In other words the profit and loss statement shows the performance of company in terms of profit or losses over a specified period.

All revenue and expense accounts are closed once the profit & loss account is prepared. They will not have an opening balance for the next accounts cycle.

1.4.3 Balance sheetThe balance sheet is a Statement that summarizes the assets and Liabilities of a business. The excess of Assets over Liabilities is the net worth of a business.

The Balance sheet provides information that helps in assessing

A company‘s Long –terms financial strength.A company‘s Efficient day to-day working capital management A company‘s Assets Portfolio.A company‘s Sustainable Long –term –performance


Lesson: 2 Business Organizations

Introduction

Business organization Perform a variety of

1. Services Organizations2. Trading Organizations3. Manufacturing Organizations

2.1 Service Organizations An Organizations providing services is called a services

Services are defined as work done for other in lieu of a payment or pricesphysical form or substance.

2.2 Trading OrganizationsAn Organization involved in the process of buying & selling is called a Tradingis defined as exchange of goods for a fixed market price or a perceived value.channels that provide goods produced by the manufacturers at a convenient place(quantity) and time to the consumers

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Organizations

Business organization Perform a variety of transactions and can classified as:

Organizations

providing services is called a services Organizations.

as work done for other in lieu of a payment or prices. Services do not have a

An Organization involved in the process of buying & selling is called a Trading-Organizationas exchange of goods for a fixed market price or a perceived value. Traders act as

goods produced by the manufacturers at a convenient placetime to the consumers.


ervices do not have a

Organization. Trading Traders act as

goods produced by the manufacturers at a convenient place, price pack


Business process in a

2.3 Manufacturing OrganizationsManufacturing is a process of transforming raw materials (input) into finished goods (outputs) for consumers or for further processingits ability to carry out this process profitableManufacturing Organization must consider

Business process in a

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Business process in a Trading Organization

OrganizationsManufacturing is a process of transforming raw materials (input) into finished goods (outputs) for

further processing by other in the channel. The success of organization dependsto carry out this process profitable. As compared to services & trading organization, a

consider more factors to define its style of function.

Business process in a Manufacturing Organizations


Manufacturing is a process of transforming raw materials (input) into finished goods (outputs) for success of organization depends on

organization, a

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Lesson: 3 Accounting on Computers

Introduction

This chapter discusses the connective between Information systems and accounting systems in as Organizations and explains the benefits and Challenges of accounting on computer.

3.1 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 Benefits of Accounting on computers

As an Organization grows, maintaining accounts manually becomes a time–consuming and costly

process. Several people must be employed to maintain accounts, possibly at different locations

there may not be consistency quality of accounting. The generations of consolidated reports are

long drawn out and expensive. Thus information that is vital for quick strategic decisions is usually

delayed or not available.

Accounting on computers resolves this issued as it results in a generation of timely report in

desired formats and resolves real time enquiry needs quickly and accurately to enable faster

decision making.

It facilitates knowledge, sharing between accounts across different locations of an Organizations

supports financial tools such budget and performance report which in turn facilitate control.

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Lesson: 4 Tally Fundamentals

4.1 Features of TallyBasic Accounts Basic Inventory

Complete book-keeping Stock categories

Books, register and statement of accounts Stock query by stock group, or stock category

General ledger Multiple godowns

Accounts receivable and accounts payable Stock transfer to godowns and branches

Flexible voucher numbering Multiple Stock valuations method

Flexible classifications of accounts heads Batch-wise / Lot-wise, including expiry date handing

Panoramic view Alternate units of measure and tail units

Drill –down display Tracking thought receipt notes /Deliver notes/ rejections out wards.

Databases repotting Additional Costs incurred on purchase

Voucher and cheque printing Movement Profitability analysis Party wise/Item wise /stock Group-wise

Columnar Reporting Customizable sales invoices using price lists with multiple Prices

Bank reconciliation Sales and Purchase Order Processing

Advance Accounts Advance Inventory

Multiple Companies Stock Items Classified as raw Materials, work-in-process, finished goods

Multi Currency Bill of material with auto–adjustment of stocks

Multiple financial years Job-work Concept, including sub–contracting

Company of data using multi- columnar repotting Additional Cost of manufacturing with narrations, value and presenting

Memo Vouchers Excise / VAT/Central sales tax(CST)/tax Collected at Sources (TCS) related transactions and reports

Post–data voucher Modvate supports

User-define voucher Reorder levels

Sales and purchase extract Stock ageing analysis

Cash flow statement Batch related stock reports

Daily balance and transactions values/ Interest Point of sales (pos)

4.2.1 Switching between screen Areas When Tally first loads, the Gateway of tally screen display to toggle between this screens. The Calculators/ODBC server area at the bottom of the screen press Ctrl +N or Ctrl +M as indicated on the Screen. A green bar highlights the active area of the Screen.

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4.2.2 Quitting Tally You can exit the Program any Tally Screen, but Tally Requires all Screen to be closed before it shuts down. To quit working on Tally

Press Esc until you see the message Quit? Yes or No? Press Enter or Y, or Click yes to quit Tally.Alternatively to exit without Confirmations, press Ctrl+ Q from Gateway of Tally.You can also exit, while the options Quit is selected from Gateway of Tally

4.3 Creations setting up of company in Tally The first step towards understand Tally is to Create a company in Tally .Create a company using the company creation screen.

4.3.1 Creations of a company Go to Gateway of Tally > company info > Create company.

The company creations Screen display as shown-

Company Creations – BIT (Baroda Institute of technology)Field descriptions Data to entered Directory: Tally assumes that the company is to be created in the data path given in the tally .INI file, which is displayed by default. However ,you can change this path on the Screen so Tally saves the data to a different directory

Accepts what display on data the Screen

Name :Enter the name the company BIT (Baroda Institute of technology)Mailing Name :Usually ,company name and Mailing name are the same ,but tally allows a different mailing name if needed

BIT (Baroda Institute of technology)

Address: Fill in the company address details No Note: Tally picks up the mailing Name and Address details in any report such as balance sheets statement of accounts and so on which needs to have the company name and address Statutory company for: Select the appropriate country the list of countries

Selected India from the list of countries displayed

State: Selected the appropriate state from the Selected Gujarat from the List of state displayed

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list of state PIN code : Enter the PIN code specified address (This field is optional)

560019

Telephone NO: 25547770E-Mail Address: E-Mail Address is used to E-mail document reports and data from tally.

BIT [email protected]

Currency Symbol: Tally displayed Rs by default this cannot be modified at the time of the creation of the company

Rs.(Per-defined)

Maintain :This field is used to specify which sections of tally your company would like to use tally displayed two options –Accounts only and Accounts with inventory

Accounts only

MaintainOptions DescriptionsAccounts 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 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 example, if you give 1st April 2009 your FY will be April 1.2009 to March 31,2010

1-4-2009

Books beginning from: The date given for ‘financial Year from’ automatically displayed this can be charges to be the actual date on which the books of accounts are opened

1-4-2009

Tally Vault Password (If any )Tally vault is a 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

Skip field –do not enter any details

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 oftechnology)

Tally will take you the Gateway of tally Screen that display as shown

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4.4 F11 Company Features The F11 buttons is used to modify the Various Feature of company. This buttons is available in most applications of tally. The Company Features are specific to the current company only thus each company may have different Features activated.

F11: company Features is divided into Accounts Features and Statutory Taxations

Press Enter or the Hotkey A to go the accounting Fractures screen.

The Accounting Features Screen displayed as shown:

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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4.5. F12: Configure F12: Configure is used to configure setting for various applications available in tally .Before starting work on the company configure it by pressing the F12: Configure button.

Configurations setting affect all company maintain in the same data directory. Setting the configurations for one company affects other companies in that data directory.

4.5.1 Master configurations

Master Configurations is used to set the details that should display in the accounts masters. This is availed in the accounts and inventory master Screen thought the F12: configure buttons and can be modify as per the requirement. Go to Gateway of tally > F12: Configure >Accts /Inv Info.

Set the Master Configurations as shown:

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4.5.2 Voucher Configurations Voucher Configurations used to configure features during voucher entry

Go to Gateway of tally F12: configure >voucher entry

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Lesson: 5 Processing Transactions in Tally

5.1 Ledgers and GroupsAll Financial Entries are made using ledger accounts heads. Even transactions /voucher can be related to a ledger accounts head to which it belongs. Ledgers which have transactions of the same natures are classified under one group.

A group is collections of ledger which have similar transactions. For Example all ledger accounts heads relating to the fixed assets of company are grouped under Fixed Assets primary group in tally. Using classifications you can generate reports which are meaningful and compliant with statutory requirements.

Tally offers flexibility in relation to building a chart of accounts. Ledger accounts can be grouped together to create multiple ledger accounts. A single ledger accounts can be created. Reports and statements reflect the classification which has been made while creating the chart of accounts.

At the highest level, accounts are classified into capital and revenue accounts, and then specifically, into assets, liabilities, income and expenditure. Based on mercantile accounting principles, tally provides a set of 28 pre-defined groups under which ledgers can be classified.

Primary group-15Sub groups-13

Out of the 15 pre-defined groups,Nine primary groups, which are capital in nature, display in balance sheet.Six primary groups, which are revenue in nature, display in the profit and loss account.

All the 13 sub-groups are classified under the nine primary groups that are capital in nature and they appear in the balance sheet. Tally has pre-defined ledger for cash (under cash-in-hand group) and profit and loss account (under primary group).

5.2 Accounting Vouchers:Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a specific function. The standard vouchers are

Contra voucherPayment voucher Receipt voucherJournal voucherSales voucherPurchase voucher

5.2.1 Contra VoucherAs per accounting rules, contra entry is a transaction which indicates the transfer of funds from

Cash account to bank account.Bank account to cash account.One bank account to another bank account.

Go to Gateway of tally > accounting vouchers > F4: contra to display the contra voucher.

5.2.2 Payment VoucherPayment transactions are accounted using Tally’s payment voucher.

Go to Gateway of tally > accounting vouchers > F5: payment to display the payment voucher.

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5.2.3 Receipt VoucherTransactions involving receipt of money are entered in the receipt voucher.

Go to Gateway of tally > accounting vouchers > F6: receipt to display the receipt voucher.

5.2.4 Sales InvoiceWhen goods/services are sold, a voucher, which the customer (debtor) can use as proof of purchase, needs to be created. This document is called as invoice according to business requirements.

Go to Gateway of tally > accounting vouchers > F8: sales to display the sales invoice.

5.2.5 Purchase InvoicePurchase invoice is a bill issued by the supplier for the purchases made by the customer. Tally has the facility to generate purchase invoices.

Go to Gateway of tally > accounting vouchers > F9: purchases to display the purchase invoice.

5.3 Recording Transactions of Sample DataThe following example shows you how to record transaction in tally.

Ms. Pooja Patel, an MBA from Bangalore, worked in software and financial service organization for 15 years. She then started her own enterprise called BIT on April 1, 2005, to provide management of consultancy services.

Ms. Patel wants to maintain her accounts using Tally 9. She maintains the books of account under the accrual system of accounting.

The transactions are recorded for BIT is as follows.

5.3.1 Transactions for April 2009S.L NO. Date Transactions1) 1-4-2009 Patel Pooja Stared BIT by bringing in cash of Rs 3, 00,000.

Pooja Patel capital A/c Dr=3,00,000Cash Cr=3,00,000

(F6 receipt)2) 2-4-2009 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=22,500Cash Cr=22,500

(F5 payment)3) 5-4-2009 Ms. Patel opened a bank accounts with HDFC bank Gujarat for the firm by

depositing cash 1,00,000.Cash Cr=1,00,000HDFC Dr=1,00,000

(F4 contra)4) 10-4-2009 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 Assets)

Dr=25000

HDFC Cr=25000(F5 payment)

5) 15-4-2009 Ms. Patel issued cheque and purchase the following fixed assetsA cell phone for office use for Rs. 6000Furniture for Rs. 20,000

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An air conditioner for Rs. 20,000Electrical fitting for Rs. 15,000 (F5 payment)

6) 17-4-2009 Ms. Patel obtained a mobile phone Subscription from Planet telecommunications Ltd. by paying a deposit of Rs. 3,000 in cash.

Security deposit–phone(deposit Assets)

Dr=3000

Cash Cr=3000Ms. Patel Purchased stationery Consumables worth Rs. 12,500 from Global House on credit.

Stationary exp(In.exp) Dr=12500Global house (S.creditors) Cr=12500

(F7 Journal )8 25/4/2009 Ms. Patel Signed a contract with silver services to provide consultancy

services at an agreed prices of Rs. 75,000 she received an advance of Rs. 25000 by cheque.

Advance consulting Revenue Cr=25000HDFC Dr=25000

Advance from customer (groups creation) (F6 Receipt)

9 27/4/2009 Ms. Patel received invoices for Rs. 6000 from INK and paper publisher for printing offices stationery.

Stationary exp Dr=6000INK and paper publisher(sun.cr) Cr=6000

(F7 Journal)10 28/4/2009 Ms. Patel withdrew Rs. 7500 cash for personal use.

Withdrawals (Capital A/c) Dr=7500Cash Cr=7500

(F5 payment)11 29/4/2009 Ms. Patel paid Rs. 750 in cash toward offices maintenances charges for

April 2009.Offices Maintenances exp(in Exp) Dr=750Cash Cr=750

(F5 payment)

Opening Balances (01/4/2009) leave the field blank

20/4/20097)

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Accounting Voucher creations –Receipt voucher

Accounting Voucher creations –Payment voucher

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Accounting Voucher creations –contra voucher

Example:

5.3.2 Transactions for May 2009S.L NO 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 Ms. Patel Paid Salaries thought Cheque For April 2009 toMaya Nair–Rs. 6500Vijay Patel–RS. 3900

4) 10-5-2009 Ms. Patel received and paid her mobile phone bill amounting to Rs. 1250 in cash for April 2009.

5) 12-5-2009 Ms. Patel issued a cheque of Rs. 12,500 Global house.

6) 19-5-2009 Ms. Patel paid Rs. 1100 in cash towards electricity Charges for April 2009.

7) 20-5-2009 Ms. Patel Received a Further Advance of Rs. 25000 from silver services by cheque.

8) 22-5-2009 Ms. Patel Reimbursed conveyances bills amounting to Rs. 650 to Vijay Patel.9) 23-5-2009 Ms. Patel Paid Rs. 150 in cash towards miscellaneous offices expenses.10) 25-5-2009 Ms. Patel Received Rs. 15000 as consulting miscellaneous revenue in cash

from omega InfoTech.11) 27-5-2009 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.

12) 28-5-2009 Ms. Patel withdraws Rs.6, 000 cash for personal use.

5.3.3 Transactions for June 2009SL.NO Date Transactions

1) 3-6-2009 Ms. Patel paid Rs. 2,500 in cash towards office rent for May 2009.

2) 4-6-2009 Ms. Patel paid salaries by cheque for May 2009.

3) 5-6-2009 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.

4) 9-6-2009 Ms. Patel received Rs. 35,000 in cash as consulting revenue from Eateries Food Chain.

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5) 10-6-2009 Ms. Patel received Rs. 30,000 in HDFC Bank.

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 Ms. Patel paid Rs. 750 in cash towards office maintenance charges for May 2009.

10) 23-6-2009 Ms. Patel paid Rs. 3,000 in cash as salary advance to Maya Nair.

11) 27-6-2009 Ms. Patel withdraws Rs. 6,000 cash for personal use.

5.3.4 Transactions for JULY 20091) 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) 10-7-2009 Ms. Patel paid office rent by cheque for June 2009.

5) 15-7-2009 Ms. Patel received Rs. 35,000 by cheque from Alfatech Solutions.

6) 18-7-2009 Ms. Patel paid Rs. 750 in cash towards office maintenance charges for June 2009.

7) 19-7-2009 Ms. Patel paid Rs. 850 in cash towards electricity charges for June 2009.

8) 20-7-2009 Ms. Patel paid Rs.1, 650 by cheque as mobile phone bill charges for June 2009.9) 25-7-2009 Ms. Patel reimbursed conveyance bills of Rs. 550 in cash to Vijay Patel.10) 28-7-2009 Ms. Patel withdraws Rs. 6,500 cash for personal use.

5.3.5 Transactions for August 20091) 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 Ms. Patel received Rs. 30,000 in cash as consulting revenue from Worlds Multimedia.

3) 5-8-2009 Ms. Patel paid salaries for July 2009 by cheque. 4) 10-8-2009 Ms. Patel paid office rent for July 2009 by cheque. 5) 12-8-2009 Ms. Patel withdraws Rs. 25000 from HDFC Bank.6) 14-8-2009 Ms. Patel Paid Rs. 750 in cash towered offices charges for July 23, 2009. 7) 15-8-2009 Ms. Patel raised invoices for Rs. 50,000 on Media Live Productions for

services provide. The terms of credit are 30 days. 8) 16-8-2009 Ms. Patel paid Rs. 950 in cash toward electricity Charges for July 2009.9) 18-8-2009 Ms. Patel Paid Rs. 2100 by cheque toward Mobile phone bill charges for July

2009.10) 22-8-2009 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. 11) 23-8-2009 Ms. Patel withdraws Rs. 7000 cash for Personal use.12) 25-8-2009 Ms. Patel received Rs. 30,000 by cheque from Alfatech Solutions.13) 29-8-2009 Ms. Patel reimbursed conveyance bills amounting to Rs. 1200 in cash in Vijay

Patel.

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5.3.6 Transactions for September 20091) 1-8-2009 Ms. Patel paid Rs. 3800 in cash for repairs and Maintenances of offices

Premises. 2) 2-8-2009 Ms. Patel paid salaries for August 2005 by cheque. As Maya Nair was on lever

for 15 days. She was paid Half-month’s Salary.3) 5-8-2009 Ms. Patel Paid offices rent for August 2005 by Cheque.4) 10-8-2009 Ms. Patel received invoices for Rs. 7600 from Raj Travels. This includes Rs.

3150 towards cab hiring charges and Rs. 4450 towards outstations tours. 5) 12-8-2009 Ms. Patel paid Rs. 750 in cash toward offices Maintenances charges for

August 2009.6) 14-8-2009 Ms. Patel revised Rs. 25000 in cash as consulting revenue from cam and cut

productions.7) 15-8-2009 Ms. Patel paid Rs. 1300 in cash toward electricity charges for August 2009.8) 16-8-2009 Ms. Patel reimbursed conveyance bills amounting to Rs. 500 in cash to Vijay

Patel. 9) 18-8-2009 Ms. Patel paid Rs. 10,000 by cheque to Raj Travels.10) 22-8-2009 Ms. Patel Rs. 1750 by cheque towards mobile phone bill charges for August

2009.11) 23-8-2009 Ms. Patel withdraws Rs. 5500 cash personal use.

Lesson: 6 Introductions to Trading Organizations

6.1 Trading OrganizationsTrading is an exchange of Goods for a Fixed Market prices or a perceived value. Traders act as channels which provide goods products by the manufactures at a convenient place, prices quantity and time to the consumers. Thus an Organization involved in the process of buying and selling is called a trading Organizations.

Traders can be broadly classified:Wholesalers: Wholesalers Purchased merchandise in bulk from manufactures and sell to retails.Retailers: Retailers Purchased merchandise from wholesalers and sell to consumers.

6.1.2 Differences between Trading and Services Organizations:

Trading Organizations Services OrganizationsSells Goods Sells services Maintains Inventory Does not have inventoryCost for trading Organizations is the cost of Goods sold

Cost for services Organizations is the cost of providing services

Goods are Tangible Services are not tangible

6.1.3 Introductions to InventoryInventory consists of raw materials and other item available for sales or the process of being made ready for In other words word inventory is the money invested by an Organization in raw materials work-in process and finished goods for expected future sale. The funds invested in inventory cannot be used for other purposes until cash is received on sale of goods. Inventory is current asset as it is converted into cash sale.

6.1.4 Kinds of Inventory

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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.

Lesson: 7 Purchases and Sales

7.1 Cash and Credit purchaseWhen payment is made on a purchase instantly either cash of cheque, it is known as cash purchase.Example: National stores bought glass cups by paying Rs. 1000 at the time of purchase from Goblets and sparkles. The accounting entry passed is as follows:

Purchases Accounts Dr 1000Cash /Bank Accounts Cr 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 1000KP Glassware company accounts

Cr 1000

At the time of making payment, the entry passed is as follows:KP Glassware company accounts

Dr 1000

Cash/bank Accounts Cr 1000Note that KP Glassware company accounts are netted off and the second entry matches with the

earlier cash purchase entry.

7.1.1 Cash and Credit SalesWhen payment is received for goods sold instantly, either by cash or cheque, it is Know as cash salesExample: Mr. Dalwadi Traders sold glass cups to Abode Bazaar on immediate payment Rs. 1200 the entry passed is as follows:Cash/bank Accounts Dr 1200Sales A/c Cr 1200When both parties involved in the transactions agree upon a letter date as the date of payment for the goods sold it is known as credit sales.Example: KP Glassware Company sold glass cups worth Rs. 1200 to variety stores on credit of 60 days, the entry passed at time of sale is as follows:variety stores A/c Dr 1200Sales A/c Cr 1200At the time of collecting the amounts the entry passed is as followsCash/bank Accounts Dr 1200

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variety stores A/c Cr 1200

7.1.2 Price LevelsProducts are sold in different marks for different prices and to different customers segments based on the demand for and supply of the products and competition from other dealing in similar products. The diversity followed in assigning different values for the same products setting up of prices levels.The prices level feature in tally allows the setting up of different prices lists for the same Item. You canprepare invoices with ease for different customers for the same products with different prices lists based on customers or market segmentations.

7.1.3 Debit note:Is a note which an accounts for an accounts owed by a person or company.

A debit note is prepared showing the date of return, name of the supplier to whom the goods have been returned details of the goods returned and retuning the goods. It informs the supplier that his/her accounts have been debited with the value of goods returned. If discounts were allowed by the supplier, this should be taken into considerations the value of the goods returned.The scope of a debit note in not limited to purchase return. It can also be issued when

The buyer does not agree with the sales invoices of the supplier after booking the purchases. The supplier intimates the buyer that is due for delayed payments.The supplier accounts for and intimates the buyer that expenditure incurred on his/her behalf is recoverable.

7.1.4 Credit note: Is a note which acknowledges and accounts for an amounts for an amounts owned by a person or a company. It is a simple and efficient system the supplier of all the receipts due.Credit note are usually used when

The supplier acknowledger the goods returned by the buyer.The buyer acknowledgers to the supplier that interest is due for delayed payment.

7.1.5 Bills Receivable and Bills Payable A bill of exchanges is treated as both bills receivable and bills payable when the drawee accepts the bill and sends it back to the drawer, it becomes bill receivable to drawer as money is receivable on the bill. Therefore, it becomes an asset to the drawer. On the other hand, it becomes a bills payable to the drawee as money is payable on the bill and is, therefore, a liability to him/her.

The drawer can make use of the bill in any of the following ways:

Retain the bill till the date of maturity and collect the money from the drawee.Endorse the bill to the creditor.Discounts the bill with the banker.Send the bill to the banker for collection.

Example: KP Glassware Company sold to variety stores glass cups worth Rs. 2000 and drew upon them a bill of two months, for the amounts on 1-6-2010 variety stores accepts the bill and returned it to KP Glassware Company, which retained the bill, and on its maturity, presented it to the drawee.The bill was honored.

Accounts Entries in the Books of drawer Accounts Entries in the Books of drawerWhen goods are sold on credit

variety stores a/c DR 2000To Sales A/c Cr 2000

When goods are purchased on credit Purchase A/c DR 2000KP Glassware company A/c Cr 2000

When the bill is drawn and Accepts

Bills Receivable a/c DR 2000variety stores a/c Cr 2000

When the bill is accepted KP Glassware company A/c DR 2000To bills payable a/c Cr 2000

When the bill is honoredBills Receivable a/c DR 2000

When the bill is honoredKP Glassware company A/c DR 2000

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variety stores a/c Cr 2000 To bills payable a/c Cr 2000

7.2. Duties and taxes

7.2.1 VatValue Added tax (VAT) is an indirect tax on goods, Introduced in lieu of sales tax, to ensure transparency and compliance with statutory norms. The basic premise of Vat is to tax the “True Value” added to the goods, at each stage of the transaction chain. This ultimately reduces:

Tax paid to the government.Cost/Tax passed onto the consumer

VAT is a multi-Point tax as against sales tax, which is a single–point tax, under the sale tax regime,the value of to be taxed at each stage is computed as basic Cost + Profit margin + sales tax paid at the earlier stage. Vat does away cascading effect of tax on tax, by allowing a set off for input tax i.e., tax paid at the earlier stages on purchased therefore, it is an efficient globally acceptable & easy to administer taxation system.

The advantages of implementing VAT are as follows:Enhancement of the competitiveness by removal the cascading effect of taxes.

Simplifying the process of the taxations.

Self–regulatory mechanism ensuring greater compliances.

Terms associated with vat

7.2.2 Vat Tax Classification

Term DescriptionInput tax Tax paid on Purchases

Output Tax charges on sales

NAME OF LEDGER GROUP / CLASS VAT / TAX 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% Duties & taxes Input vat @ 1%

Input vat @ 4% Duties & taxes Input vat @ 4%

Input vat @ 12.5% Duties & taxes Input vat @ 12.5%

Sales @ 1% Sales accounts Sales @ 1%

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7.3 F11 Features The F11 buttons is used to modify the Various Feature of company. This buttons is available most applications of tally. The Company Features are specific to the current company only thus each company may have different Features activated.

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

Sales @ 12.5% Sales accounts Sales @ 12.5%

Sales exempt Sales accounts Sales exempt

Output vat @ 1% Duties & taxes Output vat @ 1%

Output vat @ 4% Duties & taxes Output vat @ 4%

Output vat @ 12.5% Duties & taxes Output vat @ 12.5%

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Allow Multi- Currency? Tally is multi–currency enabled. If required, Transactions can be recorded in foreign currency, invoices can be raised in US Dollars (or any other currency), bankaccounting or if Allow Multi–currency is set Yes

In the base currency symbol field, different currency symbols can be provided.In the formal name field, the corresponding formal name for the base currency can be set.The number of decimal places for the base the currency can be altered.

Allow invoicing? Invoices are generally used for sale of stock where the details of the item sold are listed. Without invoicing, the options for price lists will not be available.

Enter Purchases in invoice format? If this field is set to Yes, Purchase vouchers can be created invoices mode. The supplier’s invoices can be entered in the same way as they physically appear in Invoices mode; Purchases can be allocated to cost centers only when cost center classes are used.Using the mode the voucher mode of entry for purchases allows manual allocations of purchases tocost centers.

Maintain bill wise details? The field has to be set to yes for it to be available for ledger accounts.Each ledger accounts can then individually be set for feature as required.

To view of alter the inventory features

Go to Gateway of tally >F11: features> inventory features

The inventory features screen display as shown

7.4 F12: Configure F12: Configure is used to configure setting for various applications available in tally. Before starting work on the company configure it by pressing the F12: Configure button.

Configurations setting affect all company maintain in the same data directory. Setting the configurations for one company, affect other companies in that data directory.

7.5 Master configurations Master Configurations is used to set the details that should display in the accounts masters. This is availed in the accounts and inventory master Screen thought the F12: configure buttons and can be modify as per the requirement Go to Gateway Of tally >F12: Configure>Accts/Inv info

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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 onthe 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.

Transactions for April 2009SL.NO Date Transactions 1 1-4-2009 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 screen1.Name:Bank Receipt2.Type of voucher :select Receipt from the list of voucher type 3.Abbr:Rcpt4. Method of voucher Numbering? Select Automatic from types of numbering list.5.Use Advances configurations :yes6.Prefix details – Particulars :Type BR/7.suffix details - Particulars :Type /09-10

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Voucher type Creations: Bank Receipt

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 =15,00,0002. Debit particulars: ICICI bank =15,00,0003.Narrations:Ch.No 187962 being cheque deposited in ICICI bank

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2 2009 Mr. Kundra withdrew Rs. 50,000 by cheque for shop expenditure from ICICI bank (Cheque number-123451)

Make an entry of the transactions in contra voucher GO to Gateway of tally > Accounting voucher >F4 contra to view contra voucher entry screen1.Credit particulars : ICICI bank =50,0002. Debit particulars: cash=50,0003 5-4-2009 Mr. Kundra purchased furniture Rs. 150000 for the shop by cheque (Cheque number-

123452)

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4 8-4-2009 Mr. Kundra rented a premise On 1-4-2009 for his business at Rs. 3500 per month .Hepaid a Security deposit of Rs. 25,000 by cheque (Cheque number 123453)

Bank payment voucher Create ledger Security Deposit(Deposits Assets)Dr- Security Deposit-25,000Cr-ICICI bank-25,0005 12-4-2009 Mr. Kundra issued a cheque to purchase the following Assets(Cheque number

123454)Assets CostCell phone 5500Computer 25000Electrical Fitting 50000Motor Vehicle(2 wheeler ) 40,000

Bank payment voucher 6 20-4-2009 Mr. Kundra Purchased the following from Traders on credit

Item Quantity Rate value Input vat

Total

High capacity stabilizers

100 600 60,000 12.5% 67,500

i)Create group Local creditors (Under Sundry Creditor )Go to Gateway of tally >Account info >Group> createName: Local Creditors Under: Sundry CreditorGroup behaves like sub-ledger: Yesii) Create ledger A2Z traders(under local Creditors )Name: A2Z TradersUnder: Local Creditors

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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, Sub-groups 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 VatLow capacity stabilizers

100 400 40,000 12.5% 45000

Open well pumps

50 1500 75000 4% 78,000

Submersible pumps

100 2000 2,00,000 4% 208000

Gross Total

331000

As per Accounting ConventionPurchases @12.5% Dr 40,000Purchases @ 4 % Dr 2,75,000Input vat @12.5% Dr 5000Input vat @ 4 % Dr 11,000To A2Z Traders Cr 3,31,000

8 22-4-2009 Mr. Kundra paid Carriage inward expense of the Rs. 500 in cash to meet the day to day expenses.

9 28-4-2009 Mr. Kundra withdrew Rs. 5000 in cash for personal use.Payment voucher Cerate ledger Karan Kundra drawing(Capital account)Dr-Karan Kundra drawing-5000Cr-cash-5000

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>createName :Vat Adjustment A/c Under: Duties and taxes Type of Duty /Tax: select vat from Type of duty/Tax listMake an entry of the transactions in journal Voucher

Vat Adjustment A/c Dr 23,500To Input [email protected]% Cr 12,500To Input vat@4% Cr 11,000

Transactions for April 2009SL. No Date Transactions1) 1-5-2009 Mr. Kundra paid salaries thought cheque for April 2010 (cheque number123455) the

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details are as followsName Salary paid Number of daysRoshani shah Rs 4000 18Vaishali sane Rs 4200 18Minal Patel Rs 4500 18Kirti Pradhan Rs 500 18

Note: cost centre has to be created in each employee’s name. Ensure that Maintain Cost centers is set yes in F11:Features >Accounting Features

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. Tally‘s 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 tableCreate 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 cratedMake an entry of the transactions in Bank payment voucherGo to Gateway of tally >Accounting info >F5:payment>Select Bank payment Dr salary exp=17700

Cr=ICICI bank =17700

2 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 2500Cell phone bill 600Shop maintenances expense 450Conveyances 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 VatHigh capacity stabilizers

50 850 42,500 12.5% 47813

Open well pumps

15 1700 25,500 4% 26,520

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 usePayment voucherDr-Karan Kundra 4000Cr=cash 40008 30-5-2009 Mr. Kundra Received the statement of expenditures from the petty casher for May

2009 .The Statement Natures of Expenses AmountsCell phone bill 1500Shop maintenances expense 200Conveyances expenses of marketing executives

800

Make an entry of the transactions in journal voucher Dr-telephone exp-1500Dr-Conveyances exp -800Dr-Shop maintenances exp-200Cr-petty cash-25009 31-5-2009 Vat Adjustment Entry Make an entry of the transactions in journal voucherDr-output vat @12.5 %Dr-Output vat@4%Cr-vat Adjustment A/c

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7.6 Bank Reconciliations Bank Reconciliations is routine procedure of systematically adjusting the accounts balances reports by a bank with the accounts balances on the company books and explaining any differences.Differences can occur if deposits are not yet cleared or Cheques are not yet presented. Bank statement for the period 1-4-2009 to 4-8-2009 sent Kirti Agencies from ICICI bank is as follows:

Date Particulars Deposits Withdrawals Balances 2-4-2009 Cheque No:187962 Deposited (Karan

Kundra capital)1500000 15,00,000

3-4-2009 Cheque No:123451(Cash Withdrawn) 50,000 1,4500008-4-2009 Cheque No:123452(Furniture and

deposit)150000 1300000

10-4-2009 Cheque No:123453(As security Deposit)

25000 12,75,000

13-4-2009 Cheque No:123454(For Assets purchased )

75500 1199500

2-5-2009 Cheque No:123455(salary paid) 6900 11926006-5-2009 Cheque No:123456(Rent paid) 3500 118910019-5-2009 Cheque No:123457(Issued to A2Z

Traders )396500 792600

4-6-2009 Cheque No:123458(Cash with drawn for petty cash )

11,000 781,600

7-6-2009 Cheque No:123459(Salary paid) 11500 77010020-6-2009 Cash(Cash deposited) 40,000 8101004-7-2009 Cheque no1234560 11000 79910017-7-2009 Cheque No:1234561(Purchases

made)45563 753537

1-8-2009 Cheque No:1234562(Issued to pacific Merchants )

647395 106142

3-8-2009 Cheque deposited(Java Trading company)

52,312 1,58,454

4-8-2009 Cheque deposited (Data tech Services )

61,875 2,20,329

7.7 Cheque Printing A cheque is a written order to any bank and to display. To pay a stated sum of money Conventionally, Cheque are hand written. Tally allows the printing of cheque and also accepts user-defined cheque dimensions cheque printing can be done from a payment voucher prior to cheque printing in F11: Features-accounting Features ensure that the following features are set to yes.

Enable Cheque printing. Set/Alter cheque printing configurations. Enter the following details in the company cheque details screen.

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Company Name on Cheque: Kirti Agencies, Name of Banks: ICICI: Bank

To print a cheque, Go to Gateway of tally >Display >Day book

Click Alt+F2: Periods to changes period from 1-5-2009 to 31-5-2009

Select a payment voucher for example, select bank payment voucher dated 15-5-2009

On enabling cheque printing options, two filed are include in the payment voucher.

Name on cheque: Type A2Z traders

Cross cheque using: by default, it shown A/c payee. However, this can be change.

Lesson: 8 Manufacturing Organization

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8.1 Manufacturing OrganizationsThe process of transforming raw materials input into finished goods for consumers or for further processing by others in the channel is called manufacturing. The success for a manufacturing organization depends on its ability to carry out this process, effectively and profitably. A manufacturer, before making decisions on the production process, usually needs to know the following:

Is the product to be customized or standardized?If customization takes place,

o Will it be manufactured by re-assembling the sub-component? ORo Will change BE implemented at the process level to arrive at customer acceptance?

What will be the order volumes?What will be the time required by the production team from receipt of order to production, considering the resources which are available?What will be the requirement life cycle (time line form placement of order to receipt of goods) as agreed upon by both the customer and manufacture, considering the demand and competition for competition for the product in the market?

Accounting in Manufacturing Organization

Some of the key features of accounting in manufacturing organizations areAccounting for inventories such as raw materials, work in progress and finished goods to arrive at the profit made for the period.Impact of changes in the inventory valuation method on the profits made during the period.Accounting in manufacturing organization, requires greater planning, preparation and scheduling as compared to trading and service organizations.Calculating cost of sales is relatively complex in manufacturing organization as compared to trading organizations.Research and development costs in manufacturing organization are much higher as compared to trading organizations.

8.2.1 Accounting and commercial terms associated with manufacturingEach stage in manufacturing can be represented and recorded using an accounting or commercial term.

Purchases

COST OF GOODS MANUFACTURED

COST OF MATERIALS

USEDMATERIALSPURCHASED

MATERIALSINVENTORY

WORK-IN-PROCESS INVENTORY

FINISHED GOODS INVENTORY

COST OF GOOD SOLD

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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.ManufacturingManufacturing 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 semi-finished 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 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.

8.3 Cost CentresA cost centre is a locatoin, person or item of equipment (or group of these), in relation to which costs may be ascertained and used for purposes of cost control.

Any raw material, labour,or other input used by an organisation for the manufacturing process is cost which is allocatable as direct or indirect costs to cost centres.

Direct cost-A cost which is allocated to a cost centre is a direct cost of that particular cost centre.Indirect cost- A cost which is apportioned to different cost centres on a suitable basis is an indirect cost of that particular cost centre.

For example, a company has three production departments ‘A’, ’B’ and ‘C’. Each department has been identified as a cost centre.The wages paid to the respective workers of the department concerned is the direct cost of that particular cost centre(department). However, if the rent of the building in which the production departments are located is apportioned to the departments on a scientific basis, then it is termed as an indirect cost of the cost center.

8.3.1 Analysis using Cost CentresCost centre performance can be measured using volume or relative percentage. For example, direct variable cost can be monitored as a percentage of sales or even as a percentage of cost of production if there are effective process controls. Indirect expences can be monitored by creating a reasonable limit on the amount to be spent.

The following elements have to be kept in mind measuring cost performance.

Cost of goods available for sale=Opening stock of finished goods + Finished goods manufactured during the period

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Overall objective of the business.Changes in the business environment.Ground realities.

There are needs to be a recognition that planning, however scientific, may not always be achieved.

Examples of encouraging greater cost control are:

The cost of direct expenses can be expressed as a percentage of sales leading to an efficient production system.Incentives to sales persons can be directly linked to the volume of sales achieved.A limit can be set for administrative costs such as telephone expences.Power cost and other additional expences can be linked with proper planning or prior execution of an order.Cost of non-core employee activities can be fixed as a percentage for evalution.Effective sales promotion can be linked to actual sales.

8.4 Fiscal Environment of a Manufacturing Organisation

8.4.1 Direct TaxesDirect Taxes are taxes collected by the government, directly from tax payers, through levies such as income tax, wealth tax interest tax. In the case of direct taxes, the incidence and burden of paying the tax fails on the same person.

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

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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.

8.4.2 Indirect TaxesIndirect taxes are imposed on commodities , is directly borne by the people,. It includes Excise Duty, Sales Tax, Custom Duty and Value Added Tax. In the case of indirect taxes the person on whom the incidence to pay the tax falls in different from the person who carries the burden of paying the tax.

1. Central Excise Duty:Central excise duty is charged on goods manufactured in India under section 3(1) of the Central Excise Act, 1944. The levy and collection are govered by this ACT.The rates of duty are prescribed under the Schedule I (CENVAT duty) and Schedule II (special Excise duty) of the Central Excise Tariff Act, 1985.The taxable event under the Central Excise law is ‘manufacturer’. The liability of Central Excise duty arises when the goods are manufactured. However the payment is required to be made at the time of removal of goods from the factory. The tax administration and goods clearance are effected based on the manufacturer’s invoice.Cenvat Credit Rules, 2004, has introduced input credit for excise duty and service tax on input materials and services for final products.Tally supports the following:

Excise invoiceInput credits

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

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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 master’s configuration.Service Tax transactions.Service Tax forms and reports.

Lesson: 9 Purchase, Sales and Manufacturing

9.1 Processes in ManufacturingManufacturing may consists of the following processes:

Assembling where components are assembled into a finished product.Processing where several products are produced from a common batch of a raw material.Job work where material are issued to external agencies for carrying out conversion work and returned as finished or semi finished goods.

9.2 PurchasesThe five basic quantities required for a good purchase are:

Purchase of the right qualityPurchase at the right time

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Purchase of the right quantityPurchase at the right pricePurchase from the right source

An effective purchase system will have a purchase budget as its starting point. Inputs are taken from a consumption budget which indicates the quantity, quality and specification of each item of raw material required for production. Other input includes the opening stock of each material, the quantity already ordered and the expected closing stock needed at the end of the year. Other factors taken into consideration are:

Availability of raw materialSources of supplyAvailability of cashDelivery dated for finishing goods

9.2.1 Types of purchases in Manufacturing OrganizationA purchase for which payment is made instantly by cash or cheque is a Cash Purchase. When goods are purchased or sold for cash, the name of the supplier or customer is immaterial. Therefore it can be ignored at the time of recording transaction.When both parties are involved in the transaction agree upon a later date as the date of payment for the goods purchased, it is called Credit Purchase.

9.2.2Recording of PurchasesPurchase 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 Outvoucher is used to record goods which are rejected and returned to a supplier.

9.3 SalesThe 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.

9.3.1Types of Sales in Manufacturing OrganizationWhen a Payment is received on goods sold instantly, either by cash or cheque, it is known as a Cash Sales. However, when both parties involved in the transaction agree upon a later date as the date of payment for the goods sold, it is known as Credit Sales.

9.3.2 Recording of SalesSales are reported in financial statements, net of trade discount; value added tax and other sale based taxes.

Sales Order: Sales order is also known as sales contract. It is contract by which buyer and seller agree to the terms and conditions of a sale.

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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.

9.4 Manufacturing/ Stock JournalManufacturing involves transformation, development or modification of raw materials or semi finished

goods from one form to the other. The input is commonly referred to as raw materials and the final output as finished goods. The output of any stage of production prior to final output is termed as semi finished goods.

A Stock Journal records:Consumption of raw materialTransfer of stock from one location or department to another or to an external agency.Manufacture of finished goods.

Bills of materialsBill 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 motherboardOne sound cardOne monitorOne mouseOne keyboardOne towerOne 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 BOMPurchase 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.

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9.4 Reorder levelReorder level is the minimum level of a stock item that would necessitate the reordering of that item. Reorder levels are fixed based on the production plan, to ensure that there is sufficient stock to service customer orders without allowing for overstocking.

Reorder level are decided byAverage time taken between a purchase order and receipt of materials from suppliers (lead time). Delivery time specified by the customer.The stock in hand to satisfy orders in the meantime.

Computation of reorder levelInformation on the following is necessary to computer reorder levels.

Maximum usage of materialsMaximum lead timeMaximum stock levelMinimum stock level

Reorder level = Maximum usage × Maximum lead time

Maximum stock level is the maximum quantity of stocks allowed.

Minimum stock level is that quantity below which stocks are not normally allowed to fall.

Reorder level in Tally

In Gateway of tally > Inventory info > Reorder level > select raw material

Example of Manufacturing Organization

Create a company SYSCON COMPUTERS LTD.

Set the features:

In F11- F3 :statutory & taxation Set Enable Value Added Tax to yes. Enter the Vat details.

Transaction for October 2009

1. 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 Preliminary expenses of Rs. 100000 incurred by the promoters were reimbursed

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to them by issuing cheque.Create ledgers Preliminary expenses under Misc. expenses-Asset.

Make an entry of the transaction in Payment voucher. Dr. Preliminary expenses Cr. HDFC Bank

3. 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 To start operations company purchased the following items by issuing cheque.

Static electric resistant gloves Rs. 40000 (depreciation – 60%)Voltage parameter testing meter Rs. 30000(depreciation –50%)Electric fittings Rs. 20000 (depreciation – 10%)Computer administration Rs. 40000 (depreciation – 60%)Assembling tables Rs. 50000 (depreciation – 10%)Furniture and fixtures Rs. 50000 (depreciation – 15%)The company follows the written down method to depreciate the assets.

Create all ledgers under fixed assets.Make an entry of the transaction in Payment voucher.

6. 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

4%Hard disk 100 2300

Monitor 110 3500

Processor p4 50 5700

Create a separate subgroup for expense on purchase under purchase a/c.Create ledgers:

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Ultratech computer under sundry creditors. Purchase @ 4% vat under purchase a/c. Input vat @ 4% under duties & taxes. Carriage inward under expense on purchase.

Create godown raw material godown.Create stock group raw material.Create stock categories – p4 and Athlon.Create stock item mentioned in table.

Make an entry of the transaction in purchase voucher.

8. 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

4%Mouse 100 150

motherboard 100 3200

Make an entry of the transaction in purchase voucher.

9. 28-10-2009 The following items were transferred from raw material godown to assembling godown.

item quantityProcessor p4 25Monitor 50Hard disk 50Keyboard 50Mouse 50motherboard 50Processor 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 Pass a vat adjustment entry.

Create a ledger vat adjustment account under duties & taxes. Make an entry of the transaction in journal voucher. Tax amount can be view by vat computation report.

Dr. Vat adjustment accountCr. Input vat @ 4%

Transaction for November 200911. 01-11-2009 The petty cashier submitted the statement of expenses for October 2009

Salary to staff Rs. 9000 (for 15 days).Electricity expenses Rs. 400Conveyance expenses Rs. 800.Rent expenses Rs. 15000.Printing and stationery expenses Rs. 2400.

Create ledgers Electricity expenses, Conveyance expenses, Rent expenses, printing and stationery expenses under indirect expenses.

Create ledger salary expense under indirect expenses.

Set F11 - Maintain cost center to yes and more than one cost category to yes.

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Employee name Monthly salaryRohan Rai 3500Preeti Raj 3000Paresh Shenoy 3000Dilip Chari 3500Shrinath 1000Nitin Nagraj 4000

Make an entry of transaction in Journal voucher.

Set F12: set allow cash account in Journal.

Dr. ExpensesCr. Petty cash12. 04-11-2009 Issued a bearer cheque for Rs. 40000 to petty cash.

Make an entry in Contra voucher.

13. 10-11-2009 To assembled one computer P4, the following peripherals are required.Name of the peripheral QuantityProcessor P4 1 no’sMonitor 1 no’sMotherboard 1 no’sHard disk 1 no’sMouse 1 no’skeyboard 1 no’s

The company assembled 20 computers with P4 configuration using the peripherals listed in the above table and stored the same in the finished goods godown. Wages of Rs. 30000 and overheads of Rs. 2000 were incurred. The wages were paid by cheque.

Create ledgers wages and overheads under direct expenses. Create stock item computer P4 (allow component list details -bill of material to yes). Set maintain in batch to yes. Create a manufacturing journal voucher. Make an entry in Manufacturing Journal Voucher and another in payment voucher.

14. 24-11-2009 The company sold Computer P4 to Interfex Corporation on credit of 15 days.item quantity Rate VatComputer P4 10 no’s 24,500 4%

Make an entry in sales Voucher.

15. 28-11-2009 The company paid to Ultratech Computers Rs. 528800 part payment.

16. 30-11-2009 Pass a vat adjustment entry. Make an entry of the transaction in journal voucher.

Cr. Vat adjustment accountDr. Output vat @ 4%

Transaction for December 200917. 01-12-2009 The petty cashier submitted the statement of expenses for October 2009

Telephone expenses Rs. 1800.Salary to staff Rs. 18000.Electricity expenses Rs. 600.Conveyance expenses Rs. 950.Rent expenses Rs. 15000.Advertisement expenses Rs. 2400.

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18. 04-12-2009 Issued a bearer cheque for Rs. 42000 to petty cash.

19. 5-12-2009 To assemble one Computer Athlon, the following peripherals are required.Name of the peripheral QuantityProcessor Athlon No 1Monitor No 1 Motherboard No 1Hard disk No 1 Mouse No 1Keyboard No 1

The company assembled 22 computers Athlon using the peripherals listed in the above table and stored the same in the finished goods godown. Wages of Rs. 33000 and overheads of Rs. 2200 were incurred. The wages Rs.33000 were paid by cheque.

20. 08-12-2009 Received cheque from Interfex Corporation in full settlement for sales bill.

21. 09-12-2009

The following items were transferred from raw material godown to assembling godown.

item quantityProcessor p4 25Monitor 50Hard disk 50Keyboard 50Mouse 50motherboard 50Processor Athlon 25

22. 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.

Create ledger Informatics India Ltd under sundry debtors.

Make an entry of the transaction in sales order voucher Alt+F5 using sales vat rate @ 4%.

23. 13-12-2009 Sold to Toonz Animation, Mumbai, 10 no.’s of Computer Athlon on credit of 15 days.

item quantity Rate CSTComputer Athlon 10 no’s 23,500 4%

Create ledger Toonz Animation under sundry debtor. Sales CST under sales account (vat return – Yes and select Vat/tax class – Inter State sales) Output CST @ 4%

Make an entry of the transaction in sales voucher using C Form type.

24. 14-12-2009 Raised a Purchase order with Raheem Computer (Order no. PO-01) due date 24-12-2009 for the following items.

Items Quantity(no.’s) In F11 features (F2) set allow zero values entries to yes.Set allow purchase order processing to

Monitor 100Hard disk 100

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Keyboard 100 yes.Vat rate is 4%.Mouse 100

motherboard 100

25. 15-12-2009 Advance Income tax of Rs. 5000 paid by cheque.Create ledger Advance Income tax under Current Assets.

26. 19-12-2009 Assembled 10 no.’s of Computer Athlon and 15 no. of Computer P4 and stored in finished godown.Wages: Computer Athlon: Rs. 15000, Computer P4: Rs. 22500.Overheads: Computer Athlon: Rs. 1000, Computer P4: Rs. 1500.The above wages amounting to Rs. 37500 were paid by cheque.

Make an entry of the transaction in manufacturing journal voucher

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 RateComputer Athlon 10 no’s 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 Informatics India Ltd. Returned 2 no.’s of Computer Athlon, which were delivered on 20-12-2009 as per delivery note no. DN-01, as they were not as per given specification.

In F11 features- F2- set use Rejection inward/outward notes to yes.Make an entry of transaction in Rejection In voucher (Ctrl+F6).

29. 23-12-2009 Received from Raheem Computers against order no. PO-01 as per RN-01.Item quantityMonitor 100Hard disk 100Keyboard 100Mouse 100Motherboard 100

Make an entry of transaction in Receipt Note (Alt+F9)

30. 25-12-2009 Received cheque for Rs. 244400 from Toonz Animation.

31. 26-12-2009 Returned 5 no.’s mouse to Raheem Computers which were not as per specification, towards receipt note.

32. 29-12-2009 A sales invoice was raised on Informatics India Ltd for 8 no’s of Computer Athlon retained by them and a cheque was received.

Make an entry of transaction in sales voucher and receipt voucher.

33. 31-12-2009 Pass a vat adjustment entry.Make an entry of transaction in journal voucher.Dr. Output CST@ 4% Dr. Output vat @ 4% Cr. Vat adjustment a/c

Transaction for January 201034. 01-01-2010 The petty cashier submitted the statement of expenses for December 2009

Salary to staff Rs. 18000.Electricity expenses Rs. 500.Conveyance expenses Rs. 1100.Rent expenses Rs. 15000.Selling and distribution expenses Rs. 1500.

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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 To expand its business, the company opens a branch. To carry on operation at the branch, the following assets were purchased by the head office by issuing cheque. The details of the same are as follows:

Building (branch) – depreciation 10% 2,50,000Furniture & fixture (branch) – depreciation 15% 20,000Electrical fittings (branch) – depreciation 10% 10,000Computer (branch) – depreciation 60% 20,000Cellphone (branch) – depreciation 15% 2,000

Create all branch ledgers under Fixed Assets.Make an entry in payment voucher.

37. 03-01-2010 Raheem Computers sent an invoice for the goods retained by the company towards PO/01.

item quantity rate vatMonitor 100 3600

4%Hard disk 100 2200Keyboard 100 210Motherboard 100 3100Mouse 100 140

Make an entry in purchase voucher using receipt note no. RN-01.

38. 05-01-2010 The company paid Raheem Computers Rs. 561272 by cheque as part payment.

39. 06-01-2010 Stock transferred from head office to branch.

Item Quantity Rate GodownComputer P4 10 16657 Finished goods godownComputer Athlon 10 16656 Finished goods godown

Make an entry in Stock Journal Voucher.Create godown branch godown

40. 07-01-2010 Purchased from Spic & Span traders on credit of 10 days. Item Quantity Rate CST @ 4%Mouse 10 200

4%Processor(Athlon) 25 3800Processor(P4) 25 5800

Make an entry in Purchase Voucher.

41. 08-01-2010 Cheque issued for Rs. 30,000 to petty cash.

42. 10-01-2010 Sold to Acron clothing ltd. Singapore on credit of 30 days.Item Quantity Rate Value $ Total amount in

Rs.Computer(P4) 15 $500 $7500 Rs. 337500

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.

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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 Paid to Spic & Span traders by cheque.

44. 15-01-2010 Transferred by cheque Rs. 75000 from head office to branch.

45. 18-01-2010 Paid to Ultratech computers by cheque Rs. 300000 as part payment.

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 VatComputer(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:

In sales voucher enter the details as per the following figure:

47. 21-01-2010 The company decides to have a price list names price list-1 for the following items.

Item Rate DiscountComputer(P4) 28500 10%

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Computer(Athlon) 25500 10%In F11 features- (F2) create a price list-1 for finished goods.

48. 27-01-2010 Assembled 10 no.’s of Computer Athlon and 10 no. of Computer P4 and stored in finished godown.Wages : Computer Athlon: Rs. 15000, Computer P4: Rs. 15000,Overheads: Computer Athlon: Rs. 1000, Computer P4: Rs. 1000,The above wages amounting to Rs. 30000 were paid by cheque.

49. 28-01-2010 Transferred 5 no.’s of Computer Athlon from finished goods godown to the branch godown.

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 VatComputer(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. 31-01-2010 Pass a vat adjustment entry.Make an entry of transaction in journal voucher.

Dr. Output vat @ 4% Dr. Vat adjustment a/c Cr. Input vat @ 4%

Transaction for February 201052. 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. 15000Printing & stationery expenses Rs. 1000.

53. 04-02-2010 Transferred the following items from raw material godown to assembling godown.

Items quantityProcessor p4 25Monitor 50Hard disk 50Keyboard 50Mouse 50Motherboard 50Processor Athlon 25

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. 52000Dr. Cabinet manufacturing machine

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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 goodsCr. Cabinet manufacturing machine

56. 10-02-2010 Assembled No.20 of Computer Athlon and 20 no. of Computer P4 and stored in finished godown.Wages : Computer Athlon: Rs. 30000, Computer P4: Rs. 30000Overheads: Computer Athlon: Rs. 2000, Computer P4: Rs. 2000The above wages amounting to Rs. 60000 were paid by cheque.

57. 12-02-2010 Received a payment from Acron clothing ltd., Singapore a cheque amounting to $7500 and bank charges of $50 (Rs. 2500) which is credited to the company’s account.Exchange rate of $ as on this date is Rs. 46/$.

Create ledger bank charges under indirect expense.Make a transaction in receipt voucher.Cr. Acron clothing ltd $7500 (In the fore rate of exchange: forex amount: $7500, Rate of exchange: Rs. 46/$, Value in Rs. 345000)Dr.Bank charges Rs. 345000 (In the forex rate of exchange: forex amount: $50, Rate of exchange: Rs. 46/$, Value in Rs. 2300)

58. 16-02-2010 The following items were delivered to Mahajan Education Trust by price list-1. (use default tracking number)

Item Quantity Rate Discount VatComputer(P4) 5 28500 10% 4%

Make a transaction in delivery note

59. 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. 2930Cr. Interest received Rs. 2930Make another entry in receipt voucher.Cr. Concord packing services Rs. 554130Dr. 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 Received invoice from Mohan Bhargav, chartered account towards Internal Audit Of Account Rs. 25000.

In F11 features – statutory & taxation:

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Set enable tax deducted at source (TDS) to yesSet set/alter TDS details to yesEnter company TDS deductor details field as per follows:

Tax assessment number (TAN) is a 10-digit alphanumeric number issued by the Income Tax Department to the deductor.

Income Tax Circle/ward (TDS) is issued by the Income Tax Department and represents the area where the deductor is supposed to file TDS returns.

Deductor type: corporate or non-Corporate. Name and designation of the authorized person who is responsible to file TDS returns.Create the following ledgers:Mohan Bhargav under sundry creditors. Set TDS applicable to yes.Internal Audit Expenses under Indirect Expenses.TDS on Internal Audit under Duties and Taxes. Select nature of payment.

Make an entry of transaction in journal voucher.Dr. Internal Audit Expenses Rs. 25000Cr. Mohan Bhargav Rs. 25000

Make a TDS deduction entry in journal voucher. Press alt+S button.Dr. Mohan BhargavCr. TDS on Internal AuditTDS details for TDS on Internal Audit is updated with the details such as gross amount, income tax, surcharge, Addl. surcharge and reference.

62. 21-02-2010 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 BhargavCr. HDFC bank

63. 22-02-2010 Received the following items from Islion systems as per GRN No. 786/20-2-2010

Item Quantity Rate Discount VatMotherboard 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 DiscountComputer(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 DiscountComputer(P4) 10 28500 4% 15%Computer(Athlon) 12 25500 4% 15%

Make an entry of transaction in sales voucher.Make an entry of transaction in Receipt voucher.66. 25-02-2010 The store keeper after a physical verification in the raw materials godown, found

that the stock of mouse was 53 no’s. This is adjusted by passing a physical stock.

Make an entry of transaction in Physical Stock voucher (Alt+F10.)

67. 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.

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Create ledger Investment in 6% bonds under Investments.68. 27-02-2010 Credit on capital goods claimed in one installment of Rs. 2000. Alter voucher type –Journal

Name of class: Vat Adjustment ClassSet use class for vat adjustment to yes.

Create ledger Input Vat on capital goods under duties & taxes.Type of duty: Vat, vat/tax class: Purchase – capital goods @ 4%.

Make an entry of transaction in journal voucher. Select Voucher class- Vat Adjustment Class, Used for: from the vat adjustment screen, select Adjustment towards purchase of capital goods.

Dr. Input Vat on capital goods Rs. 2000 (accessible value: Rs. 50000)Cr. Tax paid on capital goods Rs. 2000


Dr. Output vat @ 4% Cr. Input Vat on capital goods Cr. Vat adjustment a/c

Transaction for March 201070. 01-03-2010 Issued a cheque for Rs. 4000 to petty cash.

71. 01-03-2010 The petty cashier submitted the statement of expenses for February 2010.Salary to staff Rs. 18000.Electricity expenses Rs. 480Conveyance expenses Rs. 1200.Rent expenses Rs. 15000Carriage outward expenses Rs. 1000.

Create ledger Carriage outward expenses under indirect expenses.

72. 03-03-2010 Paid TDS deducted on Mohan Bhargav invoice, amounting to Rs. 1403 through cheque.

73. 04-03-2010 Sold to Stylex Trading Corporation, on credit, the following items: (Form-C was issued)

Item Quantity Rate CSTComputer(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 Received a cheque of Rs. 160360 from Stylex Trading Corporation, Towards part payment of sale made to them, dated 4.3.2010.

75. 10-03-2010 Stylex Trading Corporation returned one Computer Athlon as it was not according to the specification.

Make an entry of transaction in credit note voucher.

76. 15-03-2010 The company decided to provide maintenance services for computers. Services were outsourced to Tech services Ltd. for which an invoice of Rs. 5510 (inclusive of Service Charge Rs. 5000, Service Tax @ 12%. Rs. 600 and education cess @ 2% on Service Tax Rs. 12) was received.

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(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).

Create the following ledgers: Wintech Computers Under sundry debtors. Set Service tax applicable to yes Sales Maintenance Services under sales accounts. Set Service tax applicable to yes. Select

service tax category as Management, Maintenance or Repair. Output Service Tax on Maintenance under Duties & Taxes.

Make a transaction in sales Voucher.

79. 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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Cr. HDFC bank Rs. 61281. 31-03-2010 Pass the necessary journal entry in order to adjust Forex/Gain Loss.

Create ledger Forex gain/loss A/c under Indirect Income. Create Forex gain/loss voucher class.Go to gateway of Tally > account info > voucher type > alter >JournalName of class: Forex gain/lossIn the voucher type class screen, set use class for Forex gain/loss adjustment to yes. For ledger name: select ledger Forex gain/loss A/c. Make a transaction in Journal Voucher using class as Forex gain/loss class.Cr. Forex gain/loss A/cDr. Acron Clothing ltd.

82. 31-03-2010 Interest paid on unsecured loan taken on 1-01-09 Rs. 1875 for 3 months.

Create ledger interest on loan (under indirect expenses).Make a transaction in payment Voucher.

83. 31-03-2010 Branch submitted statement of expenses for the period (Jan., to march).Branch maintenance expense Rs. 6000Telephone charges Rs. 1800Salaries(to branch staff for 3 months) Rs. 18000Electricity expenses(for 3months) Rs. 1200Conveyance expenses(for 3months) Rs. 1500

Create the above branch ledgers under indirect expenses.Make a transaction in journal Voucher.Dr. All branch ledgersCr. Branch account


Dr. Output CST @ 4% Rs. 12840Cr. Vat adjustment a/c Rs. 12840

Provision/Adjustment entries

85. 31-03-2010 Pass the necessary provision/ Adjustment entries for the following:Staff salaries Rs. 18000Telephone expenses Rs. 1850Electricity expenses Rs. 575Conveyance expenses Rs. 900Preliminary expenses written off Rs. 20%

Create the following ledgers:Preliminary expenses written off under indirect expensesSalary expenses payable under provisionsTelephone expenses payable under provisionsElectricity expenses payable under provisionsConveyance expenses payable under provisionsMake an entry in journal voucher:Dr. Salary expenses

Telephone expenses Electricity expenses Conveyance expenses Preliminary expenses written off

Cr. Salary expenses payableTelephone expenses payableElectricity expenses payable

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Conveyance expenses payablePreliminary expenses written off

86. 31-03-2010 Rent to be paid for march 2010 is Rs. 15000.

Create ledgers rent expenses payable under provisions.Make an entry in journal voucher:Dr. Rent expense Rs. 15000Cr. Rent expense payable Rs. 15000

87. 31-03-2010 Interest accrued on 6% bonds for march 2009.

Create ledger Interest accrued under Current Assets. Interest on 6% bonds under Indirect Income.

Make an entry in journal voucher:Dr. Interest accrued Rs. 7000Cr. 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. 11688Cr. vat adjustment account Rs. 11688

89. 31-03-2010 Pass the required depreciation entry.

SL. No.

Asset nameOpening

balance (a)Depreciation (%)

(b)Depreciation (c)(a)*(b)*6/12=(c)

1 Assembling tables 50000 10% 25002 Static electricity resistance

gloves40000 60% 12000

3 Voltage parameter testing meter

30000 50% 7500

4 Furniture & fixture 50000 15% 37505 Furniture & fixture

(branch)20000 15% 1500

6 Electrical fittings 20000 10% 10007 Electrical fittings

(branch)10000 10% 500

8 Computer (admin) 40000 60% 120009 Computer branch) 20000 60% 600010 Building (branch) 250000 10% 1250011 Cell phone (branch) 2000 15% 150As 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. 59400Cr. Assembling tables Rs. 2500Cr. Static electricity resistance gloves Rs. 12000Cr. Voltage parameter testing meter Rs. 7500Cr. Furniture & fixture Rs. 3750Cr. Furniture & fixture (branch) Rs. 1500Cr. Electrical fittings Rs. 1000Cr. Electrical fittings (branch) Rs. 500Cr. Computer (admin) Rs. 12000Cr. Computer (branch) Rs. 6000

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Cr. Building (branch) Rs. 12500Cr. Cell phone (branch) Rs. 150

90. 31-03-2010 The board of directors declares a dividend of 20% (for 6 months) on Equity Share Capital.

Create ledger proposed dividend under current liabilities.Make an entry of the transaction in journal voucher.Dr. Profit & Loss a/c Rs. 250000Cr. Proposed Dividend Rs. 250000

91. 31-03-2010 The board of directors decides to transfer the remaining Profit to general reserve.

Create ledger General Reserve Account under reserve & surplus.Make an entry of the transaction in journal voucher.Dr. Profit & Loss a/c Rs. 340786Cr. General Reserve Account Rs. 340786

Lesson: 10 Payroll

10.1 Payroll IntroductionTo enable Payroll Feature in Tally.ERP 9

To enable Payroll Feature in Tally.ERP 9


Step 1: Create Employee Masters

Step 2: Create Payroll Masters

Step 3: Create Pay Heads

Employee Groups

Payroll Units

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Step 1: Create Employee Masters

Create Employee Master

Employee GroupsEmployee Masters

Create Payroll

Master

Payroll UnitsAttendance/Production

Types



Five Easy Steps to Generate a Payslip

Earnings Deductions

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Five Easy Steps to Generate a Payslip

Create Pay Heads

Deductions

Employees

Statutory

Deductions

Employers

Statutory

Contributions


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10.2 Payroll Info.

Creating Employee Group

An Employee Group allows you to group employees in a logical manner as required.

The Salary structure can be defined at the Employee Group level.

For example, you can create the Salary structure based on the department or function such as Production, Sales, Administration and so on, or by designation such as Managers, Supervisors, Workers and so on.

Creating Single Employee Group

Creating Multiple Employee Groups

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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.

Creating Single Employee

Creating Multiple Employees

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Creating Payroll Simple Unit

Select Type as Simple.Enter the Symbol for the Unit.Enter the Formal Name.Provide the Number of Decimal Places for the Unit if you want to use the Unit in fractions.

Creating Payroll Simple Unit

Creating Attendance/Production Types

The Attendance/ Production type is used to record the attendance and production data.

Examples for attendance/ production types are No. of days present or conversely, No. of days absent and production based such as Hours worked, Number of Pieces produced.

Creating Attendance Type

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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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Creating Computation based Earnings Pay Head

Creating Flat Rate based Earnings Pay Head

Creating Production based Earnings Pay Head

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Creating User Defined Earnings Pay Head

Creating Employees' PF Deduction Pay Head

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

Defining Salary Structure

Creating Salary Details for Employee Group

10.3 Voucher Types in Tally.ERP 9 PayrollAttendance Voucher is used to record employees’ Attendance / Production data for the Attendance/Production Types created in Payroll Masters. Payroll Voucher is a document to manually enter one-time/ad-hoc payroll transactions for individual employees; as well as Payroll processing activity for all or selected employees, using Auto Fill functionality.

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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

Creating Payroll Vouchers

Record the Payroll related data for Employees’ and Employer’s contribution.Enter separate vouchers for each day orEnter a single voucher for a given pay period, say a month, with aggregated values.Enter data for one or more or all employees.

Salary Process

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10.4 Statements of Payroll

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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Lesson: 11 Excise in Tally

11.1 IntroductionExcise 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. Category code1 Central Excise Manufacturers XM2 Registered Dealers 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: Tally’s ‘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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Easy to set up and use. Generates Excise invoices raised by first and second stage registered dealers to pass on

CENVAT Credit. Allow batch wise inventory details. Provides an option to print details of Manufacturer/Supplier and all other relevant particulars

of the purchase invoice. Track item history of Excisable goods. Generates statutory returns and excise related reports.

9. Company SetupCreate 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.

11.2 Excise Transactions

1. 15-4-2010 Arcelor Industries purchased the following items from Stalin Steel Industries (manufacturer) (Invoice No. 487)

Item description Hot rolled Coils – 100 mmQty (Mts) 400Rate 500Accessible Value 2,00,000Excise duty @ 16% 32,000Education cess @ 2% 640Total amount 2,32,640Vat @ 4% 9,30,560Invoice Amount 2,41,94,560

Create a voucher type for Excise purchases.Set feature Use for dealer Excise to yes.

Create ledger Stalin Steel Industries under Sundry creditors.

Set Excise details to yes. Purchase – Excisable goods under Purchase Accounts.

Set enable Vat to yes. Input vat @ 4% under duties and taxes.

Create unit of measure MT (metric tons)Create Stock item

Hot Rolled Colils-100 mm under primary

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Unit – MT, excise details to yes.The duty details for item display as follows:

Make an entry in Excise Purchase Invoice.Select party name Stalin Steel Industries, enter supplier details.Nature of purchase – Manufacturer.Select item Hot Rolled Coils – 100 mm, Enter quantity 400Press enter in amount field to view stock item excise details screen.

The completed excise purchase invoice displays as shown:

2. 20-4-2010 Arcelor Industries sold the following items to Decora Engineers.

Item description Hot rolled Coils – 100 mmQty (Mts) 250Rate 600Vat @ 4%

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Create a voucher type for Excise sales.Set feature Use for dealer Excise to yes.

Create ledger Stalin Decora Engineers under Sundry Debtors.

Set Excise details to yes. Sales – Excisable goods under Sales Accounts.

Set enable Vat to yes. Output vat @ 4% under duties and taxes.Make an entry in Excise sales Invoice.

Adjustment for Goods Returned

3. 25-4-2010 Decora Engineers returned the following items to Arcelor Industries.

Item description Hot rolled Coils – 100 mmQty (Mts) 5Rate 600Vat @ 4%

Create a voucher type for Excise sale return. Type of voucher: credit NoteSet 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.

Lesson: 12 Budgeting Systems, Scenario Management andVariances Analysis

12.1 Budgets-Definition and Types:A budget is a quantitative statement which covers costs, revenues and output. It is a financial tool for managers which give an expected level of future performance against which the actual performance is measured. It could also be termed as a measure of the results expected from the planned activities of a company. In some cases, it serves as a financial and non-financial blue print for a company.A budget facilitates the following decisions.

Operating decisions: Cost of operation, business volume and revenue strategy decisions.Financing decisions: Trade credit, finance sourcing choices, dividend policy and so on.Investment decisions: Working capital restructuring, physical assets requirement, projects and decision on major expenditures.

12.1.1 Advantages of a BudgetSupports strategy development.Helps in performance assessment and incentives. Acts as a directive for day-to-day decisions and operational planning.Promotes co-ordination and communication within a company.A budget helps the management to decide what to expect of its resources for the period considered.

12.1.2 Types of BudgetsBudgets may be classified under two categories.

FixedFlexible

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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-à-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

12.1.3 Treatment of BudgetsThe budget process represents an orderly manner of sorting the financial impact of investment, operational and financial decisions. However, different organizations use budgets in different ways. In most cases, the budget is used is as a yardsticks to compare actual with budgeted figures. A revised budget is prepared if changes in the environment are drastic. Some organizations follow rolling budgets over each quarter or over 12 months to ensure that budgeting is a continuous exercise. Some centralized managements, with more rigid controls, prepare periodic budgets which are used to set controls and limits which cannot be exceeded.

12.1.4 Budgets in TallyTally has several user friendly features which enable the creation of multiple budgets. There could be budgets for specific purposes such as marketing budget, finance budget and so on. Set Maintain Budgets and Controls in F11: Features Accounting Features to Yes.

Go to Gateway of Tally>Accounts Info.>Budgets>Create

The fields which displays in the Budget creation screen and the actions to be taken are given as follows:

Fields ActionsName Type name of Budget (corporate budget)Under Select primaryPeriod of Budget: refers to the date range for which the budget will be generated. The period could be month, year or any other period specified.From Type starting periodTo Type ending periodSet/ Alter Budgets of: Tally allows you to set budget for groups of ledger accounts, individual ledger accounts, cost centers or all of them. You can budget for as many groups and ledgers as required.Groups Set yes and select the groups.Ledgers Set yes and select the ledgers

In the group budget screen, enter the following details:

Direct expenses On net transaction 150000Indirect expenses On net transaction 12400

In the ledger budget screen, enter the following details:

Conveyance expenses On net transaction 5400Wages On net transaction 150000Carriage outward expenses On net transaction 500Electricity expenses On net transaction 3000Advertisement expenses On net transaction 2000Selling and distribution expenses On net transaction 1500

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To view the budget created:Go to gateway of Tally > display > Trial balancePress alt+F2 to change the period.Click new column from the button bar. Enter the required details. In the type of value to show: select name of budgetTrial balance will show the budget details of actual and the corporate budget.

12.1.5 Variance Analysis:Variance is the deviation of the actual cost from the standard cost, whereby each variance is analyzed by sub-dividing it with the total variance.

To view budget variance:

Go to gateway of Tally > display > Trial balancePress alt+F2 to change the period.Click budget variance or press (Alt+B) from the button bar. In the budget analysis screen which displays, select corporate budget as the budget for the variance analysis.

12.1.6 Scenario ForecastsA forecast is the prediction of future results based on present performance. The difference between a forecast and a budget is that a budget is a planned exercise to achieve the desired possible result, where as a forecast predicts results in the future, based on the current day’s actual performance.Advantage of using Scenarios:

� It is useful for giving a business different forecast for a set of imagined circumstances in the future.

� An entry can be recorded when required and removed at a later stage, for example after printing the generated report.

Reversing journals:A reversing journal, which is a non-accounting voucher, is a special journals entry which can be automatically reversed after a specified date. It exists only till that particular date and is effective only when called for in reports such as the balance sheet.

Memorandum Vouchers:A memorandum voucher is a separate voucher type. It is a non accounting voucher. Tally does not post memorandums voucher to ledgers, but stores them in a separate Memo register.

Optional Voucher:An accounting can be excluded from the books of account by making it as Optional using a specific feature in Tally. To avail this facility, set Use Reversing Journal and Optional Vouchers to yes in F11 features – (F1). You can mark a voucher as optional by clicking the button L: optional voucher on the vertical button bar. Optional voucher is not a voucher type. User has the option to bring this voucher into accounting temporarily and see the effect on financial reports. Any voucher type, except non-accounting voucher, can be designed as an optional voucher.

12.1.7Scenario management in TallySet Use Reversing Journal and Optional Vouchers to yes in F11 features – (F1).To create a scenario – Go to gateway of tally > account info > scenario > create

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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 Action Name Type scenario –one Include Actual This Field is set to yes if the actual need to be viewed in the reports.

Set -yes

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

Set-No

Exclude Inventory tracking Calculations :This field is set to yes if the sales /purchased bills pending element need to be viewed in the scenario

Set no

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

Select Journal

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

Select End of list

The scenario creations screen displayed as show

To Created Scenario- Two enter the details given in the following table

Field ActionsName Type Scenario –twoInclude Actual Set YesExclude forex Gain/loss Calculations Set NoExclude Inventory Tracking Calculations Set NoInclude Select Memorandum Exclude Select end of List`To view the effect of scenarios

Make an entry in a Journal and mark it as optional by clicking the button ctrl + L

Particulars Dr CrDepreciations 19375 -Assembling Tables --- 1250Static Electricity Resistant Globes

--- 6000

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Voltage parameter Testing (VPT) Meter

--- 3750

Electrical Fittings --- 500Computer (Administrations) --- 6000Furniture and Fixture --- 1875

12.2 Security controlSecurity control is required in an environment where many people work on the accounts on a single computer or on a network. In a typical business environment, each level of staff have different responsibilities and, Therefore, different authority. Tally has a variety of management reports which are sensitive in nature .the Security control feature in Tally is used to set access and authority rights for groups of allow or private them from doing one or more of the following :Created ,Alter, Display and print information

Security Control can be used to prevent access to the system .the authority levels or type of Security in Tally decide the of the user

Tally has two security set-ups, one for the Owner and the for Data Entry

The owner has full access and right to all parts tally ,excepts Tally Audit, Which is reserved for the administrators alone Data Entry has restricted rights .You are allowed to create other security type based on these predefined types.

Security Control can be activated during Company Creation or from Company Alteration screen. Once activated, Tally instructs you to enter the name of the administrator and a password. This security control feature restricts unauthorized users from accessing, viewing and altering the data in Tally.

To active.

ate the Security Control System,

Go to Gateway of Tally >F3: Company Info > Alter

1. Select Syscon computer Ltd.2. Select yes in the Use Security Control field.3. Type Admin in the Name of Administrator field.4. Type admin as Password. (Password is case sensitive)5. Type admin in the Repeat field.6. Select No in the Use Tally Audit Features field.7. Press Enter to accept the changes.

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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.

12.3 Created users and Passwords Use Alt+F3 and view the company info menu

Press Enter on security Control and a sub-menu displayed

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The menu allows you to define access under Users and Passwords

User Name: Karan Password: Bit123Security Level :Owner

Type of Security

In security Control, Click Type of Security .The screen display as show

Under List of security Levels ,the default value is Data EntryPress the Down Arrow key to created a new security Enter Karan in the List of security Level field Press Entry to view the security Levels screen

Name of Security Level: This default to the name (Karan) which you have created. Press Enter to go the Level Definitions screen, where the following fields are displayed

Use Basic Facilities of: By default this field displayed owner .However, the other options, i.e., Data Entry as also available the list dose not display when you are the field, Press O and being to type the word for the list to display

Select Owner from the Security List

Days Allow for Bank-Dated voucher :This is the durations of time user ,at this level are allowed specifying zero will indicate that back dated voucher are not allowed .This is effective only if you disallow back dated entries in the Disallow Column

Retain the Default as 0

Cut –off date for back-dated vouchers: Specify the date before which user of this profile or security level cannot create or alter voucher .This is additional control over the previous Days Allowed .It is useful in cases where. For example, you have computed your tax Assessment for a period and no charges are desired in the data for that period.

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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.

13.1 Advantage of Tally.ERP 9Powerful remote capabilities that boost collaborationEasy to find qualified personnelEasy to customizeLow cost of ownership via quick implementation.

New features in Tally.ERP 9In ledger voucher’s report, the cost center details were not shown for ledgers other than the selected one.From the Tally.ERP 9 release 1.2 you can specify multiple paths for the data directories. In dealer excise invoice printing configuration invoice configurations are provided. Print Mfgr /importer name & address Print purchase excise duty details.Print Mfgr /importer excise duty details.Print passed on duty accessible value.In sales voucher the option special rate is provided.TDS computation party wise report is provided.TDS ledger outstanding report was displaying VAT duty ledgers outstanding details also.Journal register – columnar was displaying expense wise details.In voucher types decimal portion under percentage field in voucher class is increased from three to four decimal places in order to give more accuracy.In accounting report budget variance button is not required.The full screen has been enabled for all accounting and inventory masters by minimizing the calculator pane.In payroll a new group Misc. Expenses (Assets) under earning for employees is available for selecting while creating the Pay heads.Backup or restore option was not working for data whose company name consisted of special characters such as brackets or quotes. In sales order and purchase order summary, the shortcut key Alt+R used for removing the lines was not working. In payroll when the provident fund gross contains pay heads with user defined value, the provident fund was not getting calculated.

13.2 Remote AccessTally ERP 9 provides remote capabilities to its users to access data from anywhere, Using Tally.Net features, the user can create remote users (ids), authorize and authenticate them to access company remotely. Currently, the remote connectivity allows the user to view/display the required information on his system instantly.

The process for remote access is as follows:

Start Tally.Erp9, load the required company and connect to Tally.net Enter the remote user Id at the remote login location to access company data from Tally.Erp9

Licensed / Educational.

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Requirements for Remote Connectivity

At the customer’s Location: A valid Internet connection A valid Tally.ERP9 license with a Tally.net subscription Create and authorize remote users for a company that has to be accessed remotely Load & Connect the Company to Tally.NET for remote access

Note: for the company to be accessed by the remote user the computer has to be kept on and tally.erp9 with company loaded.

At the Remote Location: A valid internet connection Tally.ERP9 (Licensed / Education) A valid remote user Id and passwordBenefits of Remote Access: Provides anytime, anywhere access to required information Allows you to access reports & statements on the move to keep yourself updated with the

latest business happenings. Enhances response time to customers (for e.g. sales staff can access Customer’s

outstanding statement for immediate reference / discussion) Easy access to financial information for faster & timely decision making.Data Security: The remote connectivity is initiated with a secured handshake between two computers using

Tally.NET environment. customer can allow / disallow access to the company data for remote users at any point of

time. Data resides on the Customer’s Computer only. Encrypted Data is transferred between two computers on request. The customer can assign security controls to remote users depending upon what access to

be given. For the Remote user(s) Back up / restore options will not be available in the remote location.Remote TDL’s During remote access, the additonal TDL’s running at the customer’s place will also be

available to the remote user at the remote location. The user experience remains the same wither working locally on customer’s computer or

from a remote location. It is recommended to use broadband conncetions to enjoy the best remote experience.

13.3 Tally .NETTally.NET is an enabling environment which works behind the scenes to facilitate various internet based services in Tally.ERP 9. Each Tally.ERP 9 is enabled for Tally.NET services by default. Tally.Net provides the following services/ capabilities in this release of Tally.ERP 9:

Tally .NET Features Create and maintain Remote Users Remote Access Control Centre Support Centre Synchronization of data (via Tally.NET) Product updates & upgrades

The following services will be available in the forthcoming releases: Online help capability in the form of reference manuals, articles and FAQ’s

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Access information from Tally.ERP 9 via SMS from mobile Employer Recruitment Test

Tally Admin Tool

The Tally Admin tool is a new component that has been introduced with tally.ERP 9 which enables the user to perform the following activities without starting Tally.ERP 9

Initiate License Service operations. Display the active Tally.ERP 9 License Servers in a LAN. Administer site license for different products form Tally.ERP 9 Check network connections between the computers designated as Client and server. Convert TCP and TSF files of Tally 9 to the format compatible with Tally.ERP 9 The Tally Admin Tool is available in the Tally.ERP 9 application folder, on installation.

13.4 Introduction to TDL Server DLL ComponentTally.ERP 9 onwards, a new component TDL server. DLL has been introduced, which gets copied to the folder in which Tally.ERP 9 has been installed. All the default TDL files of Tally have been integrated in this component. On invoking Tally.ERP 9, these TDL’s will be loaded. The user TDL’s will be subsequently loaded as usual from Tally.ini. The componentization will result in a more robust application. The benefits of this componentization are as follows-

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.

Unified File Format for Tally.ERP 9

The Tally.ERP 9 application folder contains files other than the data files. These are referred to as secondary files. From this release onwards the file format of all the secondary files has been standardized.

TCP Files

All the TDL files which were compiled for previous versions of tally as.tcp have to be converted to a new format. Mentioned below are the ways in which this can be done.

13.5 Control CentreControl Centre is a new feature being introduced with Tally.ERP 9. This utilizes Tally.NET as an interface between the end user and Tally.ERP 9 installed at different locations. With the help of control centre, you will able to:

Create users with predefined Security levels Centrally Configure & manage your Tally.ERP 9 Surrender, confirm or reject activation of a site] Maintain Account related information

Following are brief descriptions of the features of the Control Center:Create users with predefined Security levels

Using the control Centre feature, the account administrator can create map them to a predefined security level and authorize them to access a site/Location linked to that account. Further, the

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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.

Surrender, confirm or Reject activation of a Site

The account Administrator is authorized to surrender, confirm a site license or Reject the request received on activation form another site.

Maintain Account related information The account administrator is authorized to surrender, confirm a site license or reject the

request received on activation from another site. Maintain account related information

Allows you to maintain information about the organization. Based on the requirements, the account administrator can merge multiple accounts into one or split an account into multiple accounts for easy and better management.

13.6 Support Centre 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.

Lesson: 14 Ratio Analysis

IntroductionsRatio Analysis is a key performance indicator of a company. This is a report which the management uses to gauge the financial health of a company and where it is headed in the short term. It is a single sheet report that allows a company’s performance over a specified period of time.

The ratio analysis report provided details on significant business issues such as operating cost figures and return on working capital. It helps to:

Evaluate company’s current performance.Compare company’s current performance with the pastCompare company’s current performance against that of other companies or industry standard.Study the efficiency in the production process.Study the risk involved in the production process.

Rat io analysis in Tal ly

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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 informationGo to Gateway of Tally > Account Info >Currencies > AlterRetype the value in number of decimal places field.

� To view the ratio analysis statementGo to Gateway of Tally > Ratio Analysis

Lesson: 15 Cash Flow and Fund Flow Statement

15.1 Cash Flow statementCash flow is the inflow and outflow of cash during an accounting period. A cash flow statement concentrates on transaction which has a direct impact on cash. It deals with the inflow and outflow of cash between two balance sheet dates.

15.2 ObjectivesA 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 LimitationsThe 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.

15.2.2 Preparation of Cash Flow StatementThe main purpose of preparing the cash flow statement is to report the sources and uses of cash during the reporting period. The structure of the cash flow statement is usually classified into three sections.

Cash flows from operating activities Cash flows from investing activities Cash flows from financial activities

15.2.3 Fund Flow statementA fund flow statement is a financial statement which reveals how the business has been financed and how resources were used between the opening and closing balance sheet date. Thus, a fund flow statement is a report which explains the movement of funds, during an accounting period.This statement consists of two parts:

Source of fundsApplication of funds

The difference between these two shows the net change in the working capital for a particular period. Only those transactions which affect the net working capital of the firm appear in the statement. The transactions which increase working capital are source of funds and the transactions which decrease working capital are application of funds.

15.3 ObjectivesA 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 LimitationsIt 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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15.3.2 Preparation of Fund Flow StatementThere is no legally prescribed form for a funds flow statement, but it requires the preparation of three statements.

Statement of changes in working capitalFund flow statementStatement showing operating profit

Cash/ Fund flow in TallyIn gateway of Tally > display > cash/fund flow >cash flow or fund flow

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Lesson: 16 System Administrator and Other Utilities

16.1 Consolidation of AccountsConsolidation of group accounts is often a mandatory requirement. Account of different companies belonging to the same management or owners are required to be consolidated to present the financial position of the group companies as a whole. Shareholders are entitled to know the performance of the group as whole, as well as performance of individual constituent companies can be consolidated or kept separate.

To achieve this, you will have to first create a group company which contains the accounts of member companies.

Create a Group Company

A group can be created only for companies that have been loaded. To achieve the group company feature, a minimum of two companies have to be loaded.

This feature can be opened by pressing Alt+F3 > create group company is activated.

Limitations:Transactions cannot be entered in Group Company.The group company will give the summary level consolidation and not transaction level consolidation. Therefore no merging of voucher is possible.The member companies of a group company should have the same formal name and base currency symbol.A group company can be a member of another group company.

16.2 Split Company Data Tally’s period less accounting permits you to enter data for any number of financial years. However, the presence of old data loads the system and slows processing speed. Splitting financial data over financial years helps you to retain the benefit of recording the data, while maintaining a highly responsive system.When data is split

New companies are created for the respective split periods.Full data is retained in the original company.

Important Pre-Split Activity: Before splitting data ensure thatAll unadjusted forex gains/losses have been fully adjusted by Journal entries. Verify that the item does not appear in the balance sheet.There is no purchase bill/sales bill pending entries. Check the profit and loss account and inventory statements for purchase/ sales bills pending. The pending bills have to be accounted to the respective party accounts or entered in the respective ‘Bills Pending’ account.Ensure that a backup of data exists.

o To Split company data > Gateway of Tally > alt+F3 > Split company data.

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16.3 Export and Import of Data16.3.1Export of Data: Export of data is a feature provided for a better presentation of summaries and statements/ reports such as trial balance, stock summary and so on. The important feature of this is to export data to a spreadsheet and recognize it for statutory presentation. The formats available for Exports are:

ASCII (Comma delimited): This is in plain text format, where data is separated by commas and it does not have any special formatting or fonts. This is the most common e-mail format as all mail programs recognize it. ASCII data can be easily worked upon by other programs.HTML (Web Publishing): HTML (hyper text markup language) is the language used for publishing hypertext on the World Wide Web. Reports retain their formatting and fonts and can be read by any HTML enabled mail program and even by the internet explorer.XML (Data Interchange): Extensible markup language is an extension of HTML through the data is capable of being imported by other XML aware system. This language is fast emerging as the de-facto standard for information exchange all over the world.

Purpose of Exporting DataTo re-import into another company run on tally.To export into other applications.

Export masters Go to Gateway of Tally> Display> List of Accounts> Click Export.The fields and their description with actions to be taken are given in the following table.

FILED ACTIONLanguage: In this field, select the required file format.

Select Restricted (ASCLL ONLY)

Format: In this field, select required file format.

Select XML (data interchange)

Output File Name: In this field, define the file name with extension and path.

Retain the system defined default Master.xml

Type of Master: In this field, select any from the list of type of masters displayed.

Select Ledgers.

Accept the setting to export data.

16.2 Import of DataImport Masters

The following steps are involved in this process.Go to Gateway of Tally.Shut Syscon Computers Ltd. and load Syscon Telecom Services.Select Import of Data from Gateway of Tally.Select Master from Import of Data screen.The action to be taken for field and their descriptions are given in the following table.FIELD ACTIONImport File Name (XML): In this field, type the name and path of the file that needs to be import.

Type Master.xml

Treatment of entries already existing: In this field, select one of the behaviors from the list displayed.

Select Modify with New Data

Accept the settings to import data.View the list of accounts to verify the data imported.

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16.3 ODBC ComplianceTally used ODBC to connect to other programs and exchange data dynamically. ODBC (open database connectivity) compliance allows other programs to use data from Tally directly. Thus any program such as Ms-EXCEL or Oracle, which is ODBC compliant, can use data from Tally. Data Connectivity is dynamic, which means that any update in Tally as reflected in other ODBC compliantsoftware, in real time. You can also extract data from Tally and design your own report formats in other ODBC compliance software.

16.3.1 Using ODBC in Tally To import into an Excel sheet from Tally:Start tally and select a company. Ensure that Tally is running and minimized.

Start Ms-Excel > click Data menu > from Other sources > select from Microsoft Query

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 updatingIf you create a new ledger in Tally, than excel sheet can also be updated on clicking Refresh all button.

16.4 Multilingual Capacity of TallyThe multilingual function is the facility to use more than one language in an application, while presenting, recording or retrieving information. Tally supports the following nine Indian languages and ‘Hinglish’ (Coloquital Hindi).

� Hindi

� Gurumukhi (Punjabi)

� Gujarati

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� Tamil

� Kannada

� Malayalam� Marathi

� Bengali

� TeluguYou 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 Tally’s 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 user’s 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.

Tally’s interface for different languagesTally 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.

Lesson: 17 Display and Report

Introductions

Reports generations is a powerful tool in tally which puts the user in charges of his business information .the display of information entered in Tally helps the user to

Prepare his financial statement based on the voucher entered to date.

Present strategic information in a manner that would aid his decision-making and control.

Tally reports are generated in real-time and the user has infinite options to display the information in the he requires

Gateway of Tally

1) Balances Sheet

2) Profit & Loss A/c

3) Stock Summary

4) Display

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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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To view the balance sheet of company, BIT,Go to Gateway of tally >Balance sheet

Click Alt +F1 details for a detailed view of the balance sheet

The balance sheet can be viewed using the following

F12 configure Auto columnNew Column

For a vertical view of the balance sheet

Click F12: Configure and set show vertical Balance sheet it yes

The balances sheet screen display as shown

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Use Alt + F1 to toggle between condensed and detailed mode

Use Alt + P to print the balance sheet

Click Alt + N auto column in condensed mode on the balance sheet screen .select half-yearly from the column details menu

The balance sheet with half yearly and annually details displayed as shown

2) Profit and Loss accounts The profit and loss accounts is financial stalemates that describes the operational results of the company or its earning capacity for a given period. It lists the company‘s income and expenditure. The profit and loss accounts in the tally displays the information based on the default primary groups its updated instantly with every transactions/voucher which is entered and saved .No special processing is required to productions a profit and loss accounts of BIT ,

Go Gateway of tally >Profit & Loss Accounts

Click Alt +F1: Details to view the detailed profit & loss accounts

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


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

To go to other voucher types from sales registers click on

To view sales voucher registers in a columnar from,

G to gateway of tally >Display >Accounts book >sales Regcolumnar

Click Alt +F1 details

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Go to Gateway of tally >display >Accounts Books >cash/Bank Book

Sales register displayed the monthly summary of sales made

Go to Gateway of tally >displayed >Accounts Books >sales Register

view sales register

to alter the sales register configurations setting and observe the different ways a

on quarterly basis on Alt +F5 quarterly

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 month voucher register >F5


to alter the sales register configurations setting and observe the different ways a

ister>Select month voucher register >F5:

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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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To access coat center reports,

Go to Gateway of tally >Display Statement of Accounts >Cost centers>Cost center break –up

Ledger Break-up

Ledger break-up in another view of cost center report .It enables the user to analyses the distributions of ledger accounts amongst different cost center

To view ledger break-up

Go to Gateway of tally >Display >Statement of accounts Cost center >Ledger Break-up

Select a ledger from the list of ledgers for example, select salary exp and press Enter to view cost break-up of ledger

8) Outstanding:

Receivable and payable are two important components of any firm’s 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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To view interest calculations statement

Go to Gateway of tally >Displayed>Statement Accounts > interest Calculations

User can opt to view interest receivable, interest payable interest ledger-wise or interest group-wise

Gateway of tally >Displayed>Statement Accounts > interest Calculations>Ledger selected company

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 – ExemptPurchases from unregistered dealers

Go to Gateway of Tally>Display> Statutory Info> VAT Classifications

10) Statutory Reports

1. VAT Reports

VAT Computation

VAT computation report is based on VAT classification and displays the net VAT position for the given period.

To view VAT computation report Go to Gateway of Tally > Display >Statutory Reports >VAT Computation.

VAT returns are to be filed in the forms prescribed by each state. The form discussed here is From 100, which is the VAT form for Karnataka. Tally enables printing of VAT form in the specified format.

To view the VAT form,

VAT returns are to be filed in the forms prescribed by each state. The form discussed here is From 100, which is the VAT form for Karnataka. Tally enables printing of VAT form in the specified format.

To view the VAT form,

Click With Preview button to view the VAT form before taking a print copy.Press ALT+Z to view an enlarged version of the VAT form.

2. CST Reports

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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 TradingCorporation.

Forms to be received for the selected ledger are displayed in the Forms Receivable screen. Enter the Form Number and Data forms received.

11) Day Book

Range Features

Display and reports in Tally can be customized as per user requirements using filters. This filter can scan through the range of information provided and give a precise summary of the information that the user is looking for.

To view customized day book,

Go to Gateway of Tally > Display >Day Book Click on F2: Period to change period. From : 1-4-2006 and To: 31-3-2007

Specified.

12) Exception Reports

Optional Vouchers

Optional voucher is not a separate voucher type. It is a non – accounting voucher which is typically used when transaction has not been completed, the user does not want it to affect the accounts. Anexisting voucher, (for example, a payment voucher or a receipt voucher can be marked as optional. This voucher does not get posted anywhere but remains in the optional voucher register. At a later date, it can be regularize and recorded by modifying the voucher to remove the optional mark. Todesignate any voucher type as optional

Activate ‘Use Reverse Journals and Optional Vouchers’ in Features > Accounting Features.Go to Gateway of Tally >Display > Day Book

Click on F2: Period to change period. From: 1-4-2006 To31-3-2007Select vouchers dated 1-4-2006 and 5-4-2006

Mark them optional by pressing CTRL+L or click on the optional button and accept them, View the balance sheet to see the effect of marking two vouchers as optional vouchers.

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Go to Gateway of Tally >Display >Exception Reports >Optional Vouchers.

Once all optional vouchers are regularized, the list of optional vouchers will be empty.To regularize the vouchersGo to Gateway of Tally > Display >Day Book

Select vouchers dated 1-4-2006 and 5-4-2006.Regularize them by pressing CTRL+; or click on the regular button.

13) Inventory Reports

Tally prepares inventory reports based on the vouchers enter till date the appearance of reports can be customized to a user’s need. For example, to make comparisons between different companies, periods of the financial year and so on. Inventory operates in exactly the same way as accounting regarding displaying, modifying and printing of reports.

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 fromGateway 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.

Final New Tally Material

Documents

Transcript of Final New Tally Material