Tally ERP9

Tally.ERP 9 Tally is a financial accounting software used to store and maintain daily business transactions like purchase, sales, receipts, payments, purchase returns, sales returns, deposits and withdrawals etc. Tally developed by Tally Solutions (P) Ltd at Bangalore in 1990 -91. Features of Tally             

A user-friendly package At any moment you get the results of the business. A codeless package. It has the complete range of book-keeping facilities. It has scenario management feature to analyse your business performance under varying assumptions. It is higly secured against data tampering. It has very powerful audit facility. Tally provides an interactive online help. As Open Database Connectivity [ODBC] facility is available it can be connected to other programs and exchange data dynamically. All the reports can be published on web and may be directly e-mailed. It is VAT, Service Tax, FBT, TDS, TCS compliant. It is multilingual. Accounts can be maintained in Hindi, Marathi, Tamil, Telgu, Kannda, Punjabi, Gujrathi, Bengali, Malayalam. It has complete Payroll management system and much more…….. ACCOUNTING

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

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

IMPERSONAL REAL

NATURAL ARTICIAL REPRESENTATIVE

NOMINAL

TANGIBLE INTANGIBLE

Golden Rules of Accounting NAME OF ACCOUNT

DEBIT ASPECT

CREDIT ASPECT

Personal

The receiver

The giver

Real

What comes

What goes out

Nominal

All expenses and Losses

All incomes and gains

Assets = Capital + Liabilities Liabilities = Assets – Capital Capital = Assets – Liabilities Assets = Capital + Liabilities + Revenue/Income - Expenses

Proprietor The person who makes the investment and bears all the risks connected with the business is known as proprietor. Capital It means the amount (in terms of money or assets having money value) which the proprietor has invested in the firm or can claim from the firm. It is also known as owner’s equity or net worth. Owner’s equity means owner’s claim against the assets. It will always be equal to assets less liabilities, say: Capital = Assets - Liabilities. Asset Any physical thing or right owned that has a money value is an asset. In other words, an asset is that expenditure which results in acquiring of some property or benefits of a lasting nature. Assets are properties of business. a) Tangible Assets: Assets which have some physical existence are known as tangible assets. They can be seen, touched and felt, e.g. Plant and Machinery Tangible assets are classified into i. Fixed assets : Assets which are permanent in nature having long period of life and cannot be converted into cash in a short period are termed as fixed assets. ii. Current assets : Assets which can be converted into cash in the ordinary course of business and are held for a short period is known as current assets. This is also termed as floating assets. For example, cash in hand, cash at bank, sundry debtors etc. Asset converted into cash within a year. b) Intangible Assets The assets which have no physical existence and cannot be seen or felt. They help to generate revenue in future, e.g. goodwill, patents, trademarks etc. c) Fictitious Assets These assets are nothing but the unwritten off losses or non-recoupable expenses. They are really not assets but are worthless items.eg. Preliminary expenses. Liabilities The amount which a business owes to others is liabilities. Credit balance of personal and real accounts together with the capital account are liabilities. a) Long Term Liabilities Liabilities which are repayable after a long period of time are known as Long Term Liabilities. For example, capital, long term loans etc.

b) Current Liabilities Current liabilities are those which are repayable within a year. For example, creditors for goods purchased, short term loans etc. c) Contingent liabilities It is an anticipated liability which may or may not arise in future. For example, liability arising for bills discounted. Contingent liabilities will not appear in the balance sheet. But shown as foot note. Drawings It is the amount of cash or value of goods withdrawn from the business by the proprietor for his personal use. It is deducted from the capital. Debtor A person who owes money to the firm mostly on account of credit sales of goods is called a debtor. The debtors are shown as an asset in the balance sheet. Debtors are the persons who receive goods on credit. Creditor A person to whom money is owned by the firm is called creditor. The creditors are shown as a liability in the balance sheet. The creditors are shown as a liability in the balance sheet. Creditors are the persons who supply goods on credit, or bankers or lenders of money. Sundry Debtors: The person who is the receiver or customer. Sundry Creditors: The person who is the giver or supplier Purchases Purchases refer to the amount of goods bought by a business for resale or for use in the production. Goods purchased for cash are called cash purchases. If it is purchased on credit, it is called as credit purchases. Total purchases include both cash and credit purchases. Purchases Return or Returns Outward When goods are returned to the suppliers due to defective quality or not as per the terms of purchase, it is called as purchases return. Sales Sales refer to the amount of goods sold that are already bought or manufactured by the business. When goods are sold for cash, they are cash sales but if goods are sold and payment is not received at the time of sale, it is credit sales. Total sales include both cash and credit sales. Sales Return or Returns Inward When goods are returned from the customers due to defective quality or not as per the terms of sale, it is called sales return or returns inward

Stock Stock includes goods unsold on a particular date. Stock may be opening and closing stock. The term opening stock means goods unsold in the beginning of the accounting period. Whereas the term closing stock includes goods unsold at the end of the accounting period. Direct expenses: Direct expenses are incurred to make the goods sale able. They include wages, carriage and freight on purchases, import duty, customs duty, clearing and forwarding charges manufacturing expenses or factor. Expenses Some of the direct expenses are: i. Wages: It means remuneration paid to workers. ii. Carriage or carriage inwards: It means the transportation charges paid to bring the goods from the place of purchase to the place of business. iii. Octroi Duty: Amount paid to bring the goods within the municipal limits. iv. Customs duty, dock dues, clearing charges, import duty etc.: These expenses are paid to the Government on the goods imported. v. Other expenses: Fuel, power, lighting charges, oil, grease, waste related to production and packing expenses. Revenue Revenue means the amount receivable or realised from sale of goods and earnings from interest, dividend, commission, etc. Expense It is the amount spent in order to produce and sell the goods and services. For example, purchase of raw materials, payment of salaries, wages, etc. Income Income is the difference between revenue and expense. Expenses Outstanding: unpaid expenses/expenses due Expenditure incurred during current year but the amount on which is not yet paid. Income Outstanding: Income accrued/Income earned but not received Income earned during the current year but the amount on which is not received. Income received in Advance/Income received but not earned Income received during current year but not earned or a part of which relates to the next year. Prepaid expense/Prepaid advance Expenditure paid during current year but not incurred or a part of which relates to the next year.

Voucher It is a written document in support of a transaction. It is a proof that a particular transaction has taken place for the value stated in the voucher. It may be in the form of cash receipt, invoice, cash memo, bank pay-in-slip etc. Voucher is necessary to audit the accounts. Invoice Invoice is a business document which is prepared when one sell goods to another. The statement is prepared by the seller of goods. It contains the information relating to name and address of the seller and the buyer, the date of sale and the clear description of goods with quantity and price. Receipt Receipt is an acknowledgement for cash received. It is issued to the party paying cash. Receipts form the basis for entries in cash book. Account Account is a summary of relevant business transactions at one place relating to a person, asset, expense or revenue named in the heading. An account is a brief history of financial transactions of a particular person or item. An account has two sides called debit side and credit side. “Trial balance is a statement, prepared with the debit and credit balances of ledger accounts to test the arithmetical accuracy of the books” – J.R. Batliboi. Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. The entire ledger is summarized in the form of a Trial Balance. It is a statement containing the various ledger balances on a particular date. Final Accounts The final accounts of business concern generally includes two parts. The first part is Trading and Profit and Loss Account. This is prepared to find out the net result of the business. The second part is Balance Sheet which is prepared to know the financial position of the business. Balance sheet is defined as ‘a statement which sets out the assets and liabilities of a business firm and which serves to ascertain the financial position of the same on any particular date’. It is a statement showing the financial position of a business. Petty means ‘small’. The petty cash book is a book where small recurring payments like carriage, cartage, postage and telegram, printing and stationery etc., are recorded by the petty cashier, a person other than the main cashier. Adjustment Entries: While preparing the Profit and Loss Account for a particular period it is absolutely essential that the expenses, losses, income and gains relating only to that period are considered. Therefore the figures in the Trail Balance must be adjusted before preparing Profit and Loss account and Balance sheet.

These entries usually relate to the following: 1) Closing stock 2) Outstanding expenses 3) Prepaid expenses 4) Outstanding or accrued income 5) Income received in advance 6) Depreciation 7) Bad debts 8) Provision for bad debts 9) Interest on capital Main Parts of Gateway of Tally 1. Title Area 2. Main Area 3. Calculated Area 4. Button Bar 5. Other Parts: a. Current Period: This is the currently loaded or selected company’s accounting period b. Current Date: This is the date of the last voucher entry of the selected company (Not the calendar date) c. List of Selected Companies: This displays the name of the loaded or selected

company d. Masters: for creation of Accounting masters and inventory masters and importing

master information e. Transactions/Vouchers: for creation of Accounting vouchers and importing

transaction information f.

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

Pre-define/Reserved groups? During creation of a company, Tally automatically created 15 main/primary group and 13 subgroups known as predefined groups. These groups cannot be deleted. We can add new primary and sub groups through group creation. Primary Groups (9) Capital Account

Sub Groups (13) Reserves & Surplus (Retained Earnings) Bank Accounts Cash-in-hand Deposits(Asset)

Current Assets

Loans & Advances (Asset) Stock-in-hand Sundry Debtors Duties & Taxes

Current Liabilities

Provisions Sundry Creditors

Fixed Assets Investment Bank OD A/c [Bank OCC A/c] Loans (Liability)

Secured Loans Unsecured Loans

Suspense A/c Misc. Expenses (Assets)

Branch/Divisions

Out of the 15 pre-defined primary groups, the following are the six pre-defined groups that appear in the Profit & Loss Account.

1. Sales Accounts 2. Purchase Accounts 3. Direct Incomes [Income (Direct)] 4. Indirect Incomes [Income (Indirect)] 5. Direct Expenses [Expenses (Direct)] 6. Indirect Expenses [Expenses (Indirect)]

Accounting Voucher

Inventory Voucher

Non–Accounting Voucher

Order Voucher

Contra (F4)

Rejection in (CTRL+F6)

Memo (CTRL+F10)

Purchase Order (CTRL+F4)

Payment (F5)

Rejection Out (ALT+F6)

Reversing Journals (F10)

Sales Order (CTRL+F5)

Receipt (F6)

Stock Journal (ALT+F7)

Optional (CTRL+L)

Journal (F7)

Delivery Note (ALT+F8)

Post-Dated(CTRL+T)

Sales (F8)

Receipt Note (ALT+F9)

Purchase (F9)

Physical Stock (ALT+10)

Credit Note (CTRL+F8) Debit Note (CTRL+F9)

Types of Ledger Gateway of Tally > Accounts Info > Ledger > Create S.N

Ledger

Group

S.N

Ledger

Group

1

Opening stock

Stock-in-hand

34

Carriage Inward for purchase

Direct Expenses

2

Closing stock

Stock-in-hand

35

Cartage and coolie

Direct Expenses

3

Capital

Capital Account

36

Octroi

Direct Expenses

4

Drawings

Capital Account

37

Manufacturing Wages

Direct Expenses

5

Cash/credit purchase

Purchase account

38

Coal, gas, water, oil & fuel

Direct Expenses

6

Cash/Credit Sales

Sales Account

39

Factory rent, Insurance

Direct Expenses

7

Cash-in-hand

Cash-in-hand

40

Electricity, Light & Heating

Direct Expenses

8

Cash at Bank

Bank Account

41

Salary

Indirect Expenses

9

Bank Overdraft

Bank OD

42

Postage & Telegrams

Indirect Expenses

10

Sundry Creditors

Sundry Creditor

43

Telephone Charges

Indirect Expenses

11

Sundry Debtors

Sundry Debtor

44

Rent paid

Indirect Expenses

12

Investment

Investment

45

Rates & Taxes

Indirect Expenses

13

Expense Outstanding

Current Liabilities

46

Insurances

Indirect Expenses

14

Income received in advance

Current Liabilities

47

Interest on Bank Loans

Indirect Expenses

15

Other Liabilities

Current Liabilities

48

Interest on Loan Paid

Indirect Expenses

16

Bills Payable

Current Liabilities

49

Bank Charges

Indirect Expenses

17

Bills Receivable

Current Asset

50

Legal Charges

Indirect Expenses

18

Stock of stationery

Current Asset

51

Audit Fees

Indirect Expenses

19

Prepaid Expenses

Current Asset

52

Printing & Stationery

Indirect Expenses

20

Income Outstanding

Current Asset

53

General Expenses

Indirect Expenses

21

Loose Tools

Fixed Asset

54

Discount Allowed

Indirect Expenses

22

Furniture& Fittings

Fixed Asset

55

Carriage Outward for Sales

Indirect Expenses

23

Motor Vehicles

Fixed Asset

56

Repair Renewals

Indirect Expenses

24

Plant & Machinery

Fixed Asset

57

Motor Expenses

Indirect Expenses

25

Land & Building

Fixed Asset

58

Depreciation on assets

Indirect Expenses

26

Household Property

Fixed Asset

59

Commission Received

Indirect Income

27

Patens

Fixed Asset

60

Discount Received

Indirect Income

28

Goodwill

Fixed Asset

61

Rent Received

Indirect Income

29

Loan from Others

Loan Liabilities

62

Dividend Received

Indirect Income

30

Bank Loan

Loan Liabilities

63

Bad Debts Recovered

Indirect Income

31

Mortgage Loans

Secured Loans

64

Profit by sales of assets

Indirect Income

32

Fixed Deposit at Bank

Deposit

65

Sundry Income

Indirect Income

33

Interest on Invest./Deposit Indirect Income Received

66

Interest on Loan Received

Indirect Income

VOUCHER ENTRY Voucher is a document containing the details of financial transaction. For every transaction made, a voucher is used to enter the details into the ledger to update the financial position of the company. In manual, recording the business transaction is called journal entry. In tally this process is called Voucher entry.

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard Accounting Vouchers are: 1. Contra Voucher (F4) 2. Payment Voucher (F5) 3. Receipt Voucher (F6) 4. Journal Voucher (F7) 5. Sales Voucher (F8) 6. Purchase Voucher (F9) 7. Credit Note Voucher (Ctrl+F8) 8. Debit Note Voucher (Ctrl+F9) Contra Voucher (F4): Transaction related with transfer of funds between banks, cash, withdrawals and deposits 

Cash to Bank



Bank to Cash



Bank to Bank



Cash to Cash (Petty cash)

Payment Voucher (F5): Used to record both cash and cheque payments 

Payment to supplies



Business expenses like rent, salaries, Commission paid, wage paid etc.



Purchase of fixed asset by cash or cheque payment.



Give loans, repayments of loans and paid advance.

Receipt Voucher (F6): Used to record all cash and cheque receipts 

Collection from debtors



Income by sales of fixed assets for cash



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



Received Capital



Received loans and repayment of loans.

Journal Voucher (F7): Used to enter the adjustment transactions or the transactions without money movement like depreciation, party-to-party adjustments. i.e. Ledger to Ledger adjustments. 

Fixed assets purchased for credit



Purchase return



Sales return



Indirect expenses met for credit

Sales Voucher (F8): Used to record both cash and credit sales. Records the delivery of goods and invoice to customers. Purchase Voucher (F9): Used to record both cash and credit purchase. Records the receipt of goods with invoice from suppliers. Credit Note Voucher (Ctrl+F8): Sales return and payables. Credit Note for Goods rejected and returned by customer. Debit Note Voucher (Ctrl+F9): Purchase return and received transactions. Debit Note for Goods rejected and returned to supplier. Note: Voucher Mode: Debit and credit formation. Trade discounts and sales tax are calculated manually. Invoice Mode: Similar to actual invoice. Trade discounts and sales tax are automatically calculated. Non-Accounting Voucher Memo Voucher (CTRL+F10): It is a non accounting voucher whose entries do not affect your accounts at all.

Optional Vouchers (CTRL+L): This is not a separate voucher type. You can mark a Regular voucher as optional and then can be regularized the same. Reversing Journals (F10): These are the vouchers for a single day. Post-dated Vouchers (CTRL+T): You can mark voucher as post-dated while entering it. Tally will include the same on the due date. Example: Accounting Only 1.4.2013: Arun start business with capital Rs.1, 00,000 2.4.2013: Bought goods for cash Rs. 10,000 3.4.2013: Sold goods to Kannan on credit Rs. 11,000 4.4.2013: Purchase goods from Mahesh Rs. 8000 on credit 5.4.2013: Received cash from kannan Rs. 7,500 6.4.2013: Paid to Mahesh on account Rs. 5,000 7.4.2013: Sold goods to Mano Rs. 6,000 on credit 8.4.2013: Cash sales Rs. 7,500 9.4.2013: Received cash from Mano Rs. 5,000 10.4.2013: Paid rent Rs. 2,000 11.4.2013: Paid salaries to office staff Rs. 3,000 12.4.2013: Received commission Rs.1,200

Example: Accounting Only Lathika Computers started business from 1.4.2013 1.4.2013: Received from capital by cash Rs.2, 00,000 2.4.2013: Cash deposited into ICICI bank Rs. 50000

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

Cash Purchase – Rs. 1000 30.4.2013: Payment made by Petty Cash Conveyance – Rs. 150 Postage – Rs. 100 Stationery – Rs. 200 Staff Welfare – Rs. 100 Example: 1.4.2013: Received from capital Rs. 200000 2.4.2013: Cash deposit in SBI bank Rs. 20000 Cash deposit in IOB bank Rs. 17000 Cash deposit in ICICI bank Rs. 33000 3.4.2013: Cash withdraw in SBI bank Rs. 8000 Cash withdraw in IOB bank Rs. 10000 Cash withdraw in ICICI bank Rs. 7000 4.4.2013: Cash transfer SBI to IOB Rs. 5000 Cash transfer IOBI to ICICI Rs. 10000

BILL WISE DETAILS The details of all the sales and purchase transactions made with the debtors and creditors have to be maintained at the invoice level. In order to maintain these details Tally.ERP 9 provides a feature called as Bill-wise details for bill-wise accounting. Methods of Adjustment:

New Reference: This reference is used in a sales or purchase voucher when they were made on credit. This is selected for new financial transactions. Against Reference: This reference is used during payment/receipt made against a credit sales or credit purchase made earlier and recorded with a new reference. Advance: This is applicable for the payment/receipt made in advance for the future events. On Account: This reference is used where we are unable to adjust any payment or receipt against any specific pending bills. Activate: F11: Features > Accounting Features (F1) > Maintain Bill-Wise Details – Yes > (For Non-Trading Accounts also) – No Result: Display Ledger Outstanding Statement Gateway of Tally > Display > Account Books > Ledger > Select (Options) > ALT+B (View Bill Wise details)/Select the Bill-Wise button to view the bill-wise details of the customer. Bill-Wise outstanding report: Gateway of Tally > Display > Statements of Accounts > Outstandings > Receivables/Payables/Ledger > ALT+F1 (Detail)

Example: Memo Traders listed their credit transactions with their various parties 1-4-2013: Credit sales to Rani Traders Rs.60000; Bill No: S-125; Due Date: 15 days. 4-4-2013: Credit purchase from Niva Ltd for Rs. 75000; Bill No: P-66; Due Date: 15 days.

7-4-2013: Advance money received from Revathi Traders Rs.10000 for future sales; Bill No: A-101. 10-4-2013: Received cash from Rani Traders Rs.30000; Bill No: S-125 12-4-2013: Credit sales to Revathi Traders for Rs. 75000; Bill No: S-127; Due Date: 20-4-2013 (Adjust Advance money Rs.10000 (A-101) in Against Ref) 13-4-2013: Advance amount paid to National Ltd for future purchase Rs.15000; Bill No: A-501. 14-4-2013: Received cash from Rani Traders Rs.20000; Bill No: S-125. 15-4-2013: Received cash from Revathi Traders Rs. 50000; Bill No: S-127. 18-4-2013: Paid cash to Niva Ltd Rs.40, 000; Bill No: P-66. 20-4-2013: Credit purchase from National Ltd for Rs.40, 000; Bill No: P-68. 25-4-2013: Paid cash to National Ltd Rs.20, 000 against Bill No: P-68. CURRENCIES Due to the globalization of business, many organizations have found the necessity to work with more than one currency. Transactions are often made in currencies other than the home currency. Tally.ERP 9's multi-currency feature is very powerful and allows to: 

Record transactions with different currencies by allowing you to specify and change the currency rate of exchange.



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

Tally.ERP 9 uses the term base currency for the currency in which your account books are maintained (typically in the home currency).

Activate: F11: Features > Accounting Features > Allow Multi-Currency – Yes Gateway of Tally > Account Info > Currencies > Create Currency Name

Shortcut Keys

Symbol

Pound

ALT+156

£

Yen

ALT+0165 (157)

¥

Euro

ALT+0128

€

Franc

ALT+159

ƒ

Dollar

Shift+4

$

Gateway of Tally > Account Info > Currencies > Rates of Exchange Standard Rate: Optional field used to calculate variances from actual transaction rates. Selling Rate: Used for “Receipt Voucher” where we receive in foreign currency Buying Rate: Used for “Payment Voucher” where we pay in foreign currency Entries are made by Date and Specified rate. Note: Press CTRL+A for saving the key. Don’t press “Enter” key because it is repeated again. Gateway of Tally > Account Info > Currencies > Alter (Mode) after the entry press CTRL+A. To view the foreign exchange gain or loss: Gateway of Tally > Balance Sheet (Report) Example 1: 1-04-09 – Credit purchase for $1000 from Hi-Tech Company, USA Buying Rate: Rs. 46/$ Selling Rate: Rs. 47/$ 10-04-09 – Paid $1000 to Hi-Tech Company, USA Buying Rate: Rs. 47/$ Selling Rate: Rs. 48/$ Example 2: 1-04-09 – Credit purchase for ¥2000 from Yuan Swang Co, China Buying Rate: Rs. 38/¥

Selling Rate: Rs. 39/¥ 14-04-09 – Paid ¥2000 to Yuan Swang Co, China Buying Rate: Rs. 37/¥ Selling Rate: Rs. 38/¥ Example 3: 1-04-09 – Credit sales to Mr. Bill Clinton, USA worth $1000 Buying Rate: Rs. 46/$ Selling Rate: Rs. 47/$ 14-04-09 – Received $1000 from Mr. Bill Clinton, USA Buying Rate: Rs. 47/$ Selling Rate: Rs. 48/$ COST CATEGORY & COST CENTRE Cost Categories have been introduced specially for project oriented organisations as they require allocation of resources to parallel sets of cost centres. This requirement can be achieved using Tally.ERP 9's Cost Category feature. Any number of parallel allocations can be done as per requirements. Centre: Means a unit of an organisation to which transaction are allocated. Cost Centre: means when only cost or expenses are allocated to those centres. Activate: F11: Features > Accounting Features (F1) > Maintain Cost Centres > Yes More than ONE Payroll/Cost category > Yes

Gateway of Tally > Accounts Info > Cost Categories > Create Gateway of Tally > Accounts Info > Cost Centres > Create Example: Paid RentRs.30000 for the following branches of Kalvi Institute on 1.4.2013

Dindigul: Rs.10000 Madurai: Re.15000 Trichy: Rs.15000 Erode: Rs.10000 Answer: 1. Gateway of Tally > Accounts Info > Cost Categories > Create 2. Gateway of Tally > Accounts Info > Cost Centres > Create 3. Accounts Info >Ledgers > Cost center are applicable : Yes 4. Accounting Voucher > Payment 5. Note: Cost Category – Branches, Cost Centre – Dindigul, Madurai, Trichy and Erode Cost Centre Class Cost Centre Classes are used to automate Cost Centre allocations in transactions. On creating a cost centre class, you need to select it in the voucher screen before making the entry. You can also use cost centre classes when Voucher Classes are being used. Activate: F11: Features > F1: Accounting Features > Use Pre-defined Cost Centre allocations during Entry – Yes Result: Gateway of Tally > Display > Statement of Accounts > Cost Centres > Category Summary Cost Centre Break-up/Ledger Break-up/Group Break-up

Example: Paid Conveyance Rs. 4000 totally for four departments namely: Accounts (20%), Computer (30%), purchase (15%), sales (35%). Enter the cost centre Answer:

1. Cost category – Department; 2. Cost Centre: Accounts, computer, purchase, sales 3. F11: Features > Accounting Features > Use Pre-defined Cost Centre allocations during Entry – Yes. Note: Class Name: Expenses Allocation 4. Ledger Creation: Name: Conveyance expense Under: Indirect Expenses Cost centre are applicable? – Yes 5. Voucher Entry: Payment: Cost Centre class: Expenses Allocation Allocation will be made automatically. Example: 1. Kalvi institute paid salary Rs.70000/- to various departments on 1-5-2009. The details: Accounts Department: Rs.20000 Computer Department: Rs.25000 Sales Department: Rs.10000 Purchase Department: Rs.15000 2. Rent paid Rs.50, 000 for branches Dindigul: Rs.10000 Madurai: Re.15000 Trichy: Rs.15000 Erode: Rs.10000 3. Paid Telephone Charges Rs. 8500 101: Rs.3000 102: Rs.2000 103:Rs. 1500

104:Rs.2000 4. Paid cleaning charges Rs.6000 for Accounts Department(25%), Computer Department(20%), Sales Department(25%), Purchase Department(30%). Note: We define the percentage of cost, when activate in F11 features BUDGET The main purpose of Budgeting is to control the expenditure. This is possible by creating budgets and comparing the budgeted figures against the actual figures. You can generate reports based on this need and view the variances or differences between the actual and budgeted figures. Tally.ERP 9 allows you to create multiple budgets and also maintain budgets for specific purposes, e.g. for the Bank, for the Head Office, Marketing Budget, Finance Budget etc. Activate: F11: Features > Accounting Features > Maintain Budgets and Controls - Yes Gateway of Tally > Account Info > Budgets > Create Budget Alteration: Name: Official Budget/Expenses Budget Under: Primary Period of Budget: Give the period range Area of Budget: Group: We can set budget for groups of ledger accounts. Ledger: Budget for individual ledger Cost Centre: To mark for the particular cost centre for each group Type of Budget: On Net Transactions: This option used for creating budgets for revenue accounts. Because the revenue accounts net transactions should be monitored or controlled. e.g. Telephone charges, office expenses, maintenance charges etc. On Closing Balance: The closing balance of non-revenue accounts like capital a/c, Bank a/c, Loans, current liability etc should be monitored.

e.g. Credit purchase/sales, sundry debtors/creditors. Result: Gateway of Tally > Display > Trial Balance > ALT+B (Budget Variance) Example: Hi-Tech Company plans their budget on 30-4-2013 for coming May month (1.5.2013 to 31.5.2013) Expense Budget: Telephone Charges

2000

Office Expenses

1500

Maintenance charges

1000

Conveyance

2000

Credit purchase

25000

Advertisement Charges

3000

Steps: 1. Ledger Creation 2. Budget Creation: Account info > Budget > Create: Name: Expenses Budget Hi-Tech Company enter their transactions on 31.5.2013 Cash paid to Telephone charges Rs. 3000, Office expenses Rs. 1000, Maintenance charges Rs. 1000, Conveyance Rs. 2500, Advertisement charges Rs. 2000. Credit purchase made from Arun Tex Rs. 30000. Do the voucher entry on 31.5.2013 for the above transaction.

Steps 1. Record the above transaction in payment and purchase voucher as usual 2. To view the budget result Result: Gateway of Tally > Display > Trial Balance press ALT+B for Budget Variation BANK RECONCILIATION STATEMENT

Reconciling the Company's Bank Accounts with the Bank Statement is a fundamental and regular task of accounting. This process is referred to as Bank Reconciliation. It is one of the prerequisites of audit. Methods for Reconciliation Step 1: Display the ledger a/c of Bank (Ex: SBI Bank) i.e Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c Step 2: Press ‘F7”:Select the month for reconciliation and press ‘Enter’ to have vouchers for that month. Step 3: Press ‘F12’ for configuration and activate ‘show narration’- yes. It is helpful to see the narration as that contains cheque numbers and other details Step 4: Press ‘F5’Reconcile appeared in the button panel for shift to reconciliation mode. A new column appears as ‘Bank Date’. Step 5: Enter the bank date in the “Date” field. For every entry of the bank date the vouchers are reconciled. Note: After the reconciliation done, we get only non-reconciled statements.(Vouchers). Press ‘F12’ and set to ‘show Reconciled voucher also’ – Yes. Example: Eminent Tech, Madurai gives their Bank Transactions for the month of April 2009. They also show their Bank pass book detail (SBI Bank, Anna Nagar) 1-4-2013: Eminent Tech, Madurai deposited cash into SBI Bank Rs.100000 2-4-2013: Software sold for credit to the following persons: Azeer

Rs. 25000

Sounder

Rs.23000

Chellapandi

Rs.15000

Anand

Rs.30000

Vaitheki

Rs.28000

5-4-2013: Cheque received fom Azeer Rs.25000 and immediately deposited into SBI Bank for collection (Chq.No. 5678348)

8-4-2013: Cheque received from Chellapandi Rs.15000 and immediately deposited into SBI Bank for collection (Chq.No. 5678350) 10-4-2013: Cheque received from Anand Rs.30000 and immediately deposited into SBI Bank for collection (Chq.No. 5678355) 15-4-2013: Cheque paid to Modern Computers Rs.15000 (Chq.No. 367890) 18-4-2013: Cheque received from Sounder Rs.23000 and immediately deposited into SBI Bank for collection (Chq.No. 5678360) 25-4-2013: Cheque paid to Kumar Agencies for Rs.20000 (Chq.No. 367896)

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

Name

Deposit(Dr)

Withdraw(Cr)

Balance

1-4-2013

Cash

100000

-

100000 Cr

10-4-2013

Azeer

25000

-

125000 Cr

13-4-2013

Chellapandi

15000

-

140000 Cr

20-4-2013

Anand

30000

-

170000 Cr

25-4-2013

Modern Comp

-

15000

155000 Cr

29-4-2013

Kumar Agency

-

20000

135000 Cr

Answer: 1. Do voucher entry for the above transactions. 2. Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c >Press F7 for April month/ Press F5 for Reconcile 3. In Bank date column enter the date as shown in Bank Pass Book. 4. After the reconciliation: Balance as per Company books: Rs. 1, 58,000 Amounts not reflected in Bank: Rs. 23,000 Balance as per Bank: Rs. 1, 35,000 INVENTORY VOUCHER

Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock, stock movement between storage locations or godowns and providing information on stock availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that the financial statements reflect the closing stock value from the Inventory system. Group is the collection of ledger of the same nature. Stock Group are provided to help the classification of stock items Stock Categories offers a parallel classification of stock items Godown is a place where stock items are stored Unit of Measure Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. A Compound Unit is a combination of two simple units of measure. Examples of simple units are: nos., metres, kilograms, pieces etc. Examples for compound units are: a box of 10 pieces etc. Create the Units of Measure before creating the Stock Items. Gateway of Tally > Inventory Info. > Units of Measure > Create.(Unit Creation) Let us create the unit Nos. 1. Type: Simple 2. Symbol: Nos 3. Formal Name: Numbers 4. Number of Decimal Places: 0

Unit of Measure Simple Units

Symbol

Compound Units

Number

No

Doz of 12 No

Meter

Mtr

Box of 50 Pack

Kilogram

Kg

Box of 25 Pack

Litre

Ltr

Box of 25 No

Box

Box

Pack of 100 No

Pack

Pk

Dozen

Doz

Order Voucher: 1. Purchase Order (Alt+F4) 2. Sales Order (Alt+F5) Inventory Voucher: 3. Rejections In (Ctrl+ F6) 4. Rejections Out (Alt+F6) 5. Stock Journal (Alt+F7) 6. Delivery Note (Alt+F8) 7. Receipt Note (Alt+F9) 8. Physical Stock (Alt+F10) Activate: F11: Features > Inventory Features (F2) > Use Tracking Numbers (Delivery/Receipt Notes)–Yes Use Rejection inward/outward notes – Yes

Purchase Order (Alt+F4): Records placing an order for stock items to suppliers. Sales Order (Alt+F5):

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

Example:

Accounts with Inventory

1-4-2013: Received from capital by cash Rs. 5, 00,000 2-4-2013: Cash deposited into SBI Bank Rs. 2, 00,000 5-4-2013: Purchase from Royal Textiles

Cotton saris

50nos at

Rs. 300/nos

Chudithar

50nos at

Rs. 400/nos

7-4-2013: Purchase from Kishore Textiles Cotton saris

50nos at

Rs. 300/nos

Chudithar

50nos at

Rs. 400/nos

10-4-2013: Purchase from Santhose Textiles Cotton saris

50nos at

Rs. 300/nos

Chudithar

50nos at

Rs. 400/nos

T-shirt

100nos at

Rs. 100/nos

Jeans

100nos at

Rs. 1000/nos

11-4-2013: Sales to London store Cotton saris

60nos at

Rs. 500/nos

Chudithar

60nos at

Rs. 750/nos

T-shirt

60nos at

Rs. 1000/nos

Jeans

60nos at

Rs. 1300/nos

17-4-2013: Cash sales Cotton saris

40nos at

Rs. 500/nos

Chudithar

40nos at

Rs. 750/nos

T-shirt

20nos at

Rs. 1000/nos

Jeans

20nos at

Rs. 1300/nos

TNGST (Tamil nadu state government sales tax) – 4% 20-4-2013: Payment by cheque Royal Textiles Rs. 25000 Kishore Textiles Rs. 25000 Santhose Textiles Rs. 100000

22-4-2013: Received cheque London store Rs. 2,00,000 25-4-2013: Payment made by cash Petty cash – Rs.2000 Furniture – Rs.25000 Salary – Rs.30000 Wages – Rs.25000 Carriage inwards – Rs.4000 Rent – Rs.10000 EB – Rs.5000 Telephone– Rs.8000 26-4-2013: Payment made by petty cash Postage – Rs.300 Conveyance – Rs.250 Stationery – Rs.150 Staff Welfare – Rs.200 Maintenance – Rs.250 General Expenses – Rs.150 Example:

Accounts with Inventory

1-4-2013: Received from capital by cash Rs. 5, 00,000 2-4-2013: Cash deposited into UCO Bank Rs. 2, 00,000 7-4-2013: Credit Purchase from Govind Electricals Ceiling Fan

100nos at

Rs. 800/nos

Table Fan

100nos at

Rs. 1000/nos

Mixie

100nos at

Rs. 1500/nos

Grinder

100nos at

Rs. 2000/nos

10-4-2013: Credit sales to Ram Electricals Ceiling Fan

70nos at

Rs. 1000/nos

Table Fan

70nos at

Rs. 1500/nos

Mixie

70nos at

Rs. 2000/nos

Grinder

70nos at

Rs. 2500/nos

TNGST (Tamil nadu state government sales tax) – 5% 15-4-2013: Cash sales Ceiling Fan

10nos at

Rs. 1000/nos

Table Fan

10nos at

Rs. 15000/nos

Mixie

10nos at

Rs. 2000/nos

Grinder

10nos at

Rs. 2500/nos

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

Staff Welfare – Rs.20 TRACKING NUMBER

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

Rs.1500/No

N300 25Nos @

Rs.1800/No

5-4-2013: Received the invoice (Purchase Bill No: P-300) from Nokia Co, Chennai for the goods received on 1.4.2013 (Ref No/TrackingNo.R-101) Answer:

1. Inventory Voucher > Receipt Note (ALT+F9) 2. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending “Goods Received but bills not Received” 3. Accounting Voucher > Purchase (F9) 4. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending Note: Since we received both goods and bills for Nokia Co, Chennai so there is no report in purchase bills pending Example: Universal Mobile store purchased from Motorola Co, Chennai for credit 1-4-2013: Received the following items with Receipt Note (Ref No/TrackingNo.R-966) W230 25Nos @

Rs.2000/No

Z750 25Nos @

Rs.2200/No

5-4-2013: Received the invoice (Purchase Bill No: 225) from Motorola Co, Chennai for the goods received on 1.4.2013 (Ref No/TrackingNo.R-966) 8-4-2013: Delivered the following items with Delivery note to Neelavathi Mobiles, Madurai (Ref No/TrackingNo.D-456) W230 10Nos @

Rs.2200/No

Z750 15Nos @

Rs.2500/No

12-4-2013: Send the sales bill to Neelavathi Mobile, Madurai for the good delivered on 8-4-2013(Ref No/Tracking No: D-456) Sales Bill No:S-875

ORDER PROCESSING Order Processing refers to placing orders with suppliers for purchasing from them or receiving orders from customers for the purpose of selling. In Tally.ERP 9, Order Processing is linked to Inventories. We can compare the sales or purchase order, delivery notes and receipt notes and know the pending status of the order.

Activate: F11: Features > Inventory Features (F2) > Allow Purchase Order Processing - Yes Allow Sales Order Processing – Yes Use Tracking Numbers (Delivery / Receipt Notes) - yes Result: Gateway of Tally > Display > Statements of Inventory > Sales order Outstandings Purchase order Outstandings Example: 1-4-2013: Poorvika Mobiles, Dindigul make the following purchase order to LG Mobiles Co. Bangalore. Cell phones: L445 50No @

Rs.2500/No

L777 50No @

Rs.2800/No

Purchase Order No: PO-101 Due on: 6-4-2014 7-4-2013: Received the ordered items from LG Mobiles Co. Bangalore for the purchase order No: PO-101. Ref. No./Tracking No:R-105 Answer: 1. Enter purchase order (ALT+F4) 2. To view order position: Gateway of Tally > Display > Statements of Inventory > Purchase order outstanding 3. Enter Receipt Note (ALT+F9) 4. To view order position: Gateway of Tally > Display > Statements of Inventory > Purchase order outstanding > All Orders Note: Since the purchase order is cleared there will be no purchase order details. Example: New Century Book House, Madurai Opening Stock as on 1-4-2013

English Grammar

10 no @

Rs.120 each

Business Ethics

50 no @

Rs.95 each

Modern Science

50 no @

Rs.115 each

Micro biology

50 no @

Rs.140 each

Bio-Chemistry

75 no @

Rs.130 each

New Century Book House, Madurai shows the following business transactions for the month of April 2014 1-4-2013: Purchase order to S.Chand Co. Delhi Order No: PO-150, Due on:8.4.2013 Advanced Accountancy

100 no @

Rs.200 each

Company Law

75 no @

Rs.120 each

Business Organization

75 no @

Rs.80 each

Cost Accounting

50 no @

Rs.175 each

5-4-2013:Sales order received from PR Book shop, Trichy Order No:SO-215, Due on:10-4-2014 Business Ethics

10 no @

Rs.95 each

Modern Science

15 no @

Rs.115 each

Micro biology

25 no @

Rs.140 each

Bio-Chemistry

30 no @

Rs.130 each

7-4-2013: Received goods from S.Chand Co for purchase order No:PO-150, Ref:R-801, Tracking No:R-801. 8-4-2013: Purchase Bill Received from S.Chand Co for Receipt Note No:R-801, Bill No:P-2001 10-4-2013: Good delivered to PR Book Shop for Sales order No: SO-215, Ref: D-1300, Tracking No: D-1300 11-4-2013: Sales Bill made to PR Book shop for Delivery Note No: D-1300, Bill No: S-3001

BATCH-WISE DETAILS Batch details are used to identify the movement of inventory in batches or lots. Although this is a requirement primarily of the pharmaceutical industry, the same can be used by other industries

that maintain or manufacture perishable goods. Many organisations also purchase in batches in order to monitor the result of the batch purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot. Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the expired date. Expiry date cannot be prior to the voucher date. Activate: F11: Features > Inventory Features (F2) > Maintain Batch-Wise details - Yes (Set Expiry Dates for Batches) – Yes Gateway of Tally > Inventory Info > Stock Items > Maintain in Batches – Yes Track Date of Mfg - Yes Use Expiry Dates - Yes Result: Gateway of Tally > Display > Inventory Books > Ageing Analysis Example: Reliance store furnishes the following details On 1-4-2013 purchased for cash Products

Batch No

Mfg Date

Expiry Date

Qty

Rs.

Parle-G

101

1-5-2013

1-5-2014

100pack

5/pack

Good Day

102

1-4-2013

1-6-2014

75pack

10/pack

Britannia

103

1-3-2013

1-9-2014

120pack

8/pack

50-50

104

1-2-2008

1-12-2014

50pack

6/pack

On 1-4-2013 sold for cash Products

Batch No

Mfg Date

Expiry Date

Qty

Rs.

Parle-G

101

1-5-2013

1-5-2014

40pack

6/pack

Good Day

102

1-4-2013

1-6-2014

25pack

12/pack

Britannia

103

1-3-2013

1-9-2014

30pack

10/pack

50-50

104

1-2-2008

1-12-2014

20pack

7/pack

USE DIFFERENT BETWEEN ACTUAL & BILLLED QUANTITY Bill is made only for Actual goods not for free goods. But the stocks contain both billed and actual quantity. Activate: F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty - Yes Result: Gateway of Tally > Stock Summary Example: 1 pack of Hamam soap is given free on every 3 pack of Hamam soap Rs.15/soap 1 Bottle of Lion Date Syrup is given free on every 1 bottle purchased Rs.80/bottle Note: Actual quantity will update stock and billed quantity will be used to compute transaction value. TRACK ADDITIONAL COST OF PURCHASE The cost of an item is the rate at which the item is purchased. However, there are other expenses like Packing charges, Freight charges, Cartage incurred, etc. which add to the cost of purchasing the item. Thus, the additional cost details are required to be added to the actual cost of purchase. Purchase cost includes all those expenses related to purchase. The use of this option are known as the “Effective rate of purchases”

Activate: F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty – Yes Track additional cost of purchase - Yes Result: Gateway of Tally > Display > Inventory Books > Stock Item

Example: 1-4-2013: Purchased writing board from Newply Co. 100 nos @ Rs. 80/no (Credit Purchase) Additional Cost Details: Sales Tax 4%, Packaging Charges Rs.100, Carriage Rs.100 Bill Details: 1-4-2013

Newply Co

Bill No: 525

Particulars

Qty

Rate (Rs.)

Writing Board

100nos

80

Total (Rs.) 8,000

Additional Cost: Sales Tax (4%)

300

Packaging Charges

100

Carriage

100 8,520

Answer: Ledger and stock item creation Voucher entry – Enter in voucher format (CTRL+V) Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Item Analysis > Select the item – Press enter key. Form that screen press F12: Configure set ‘yes’ to all option.

BILL OF MATERIALS In manufacturing process product will be produced with many components or spare parts or raw materials. These goods are called Bill of Materials. The BOM should be available while manufacturing an item. Hence, first enable manufacturing entries. This is done through a stock journal. It is wise to create a new voucher type – Manufacturing journal which is based on stock journal. Stock journal is used as manufacturing journal

Activate: Gateway of Tally > F12: Configure > Accts/Inventory Info > Allow component list details (Bill of Materials) – Yes Result: Gateway of Tally > Display > Inventory Books > Stock Item Example: Following is the opening stock of Vicco Laboratories on 1-4-2013 Ingredients

Opening Qty

Rate

Babhul

500 gm

0.25/gm

Manji

500 gm

0.25/gm

Bor

500 gm

0.25/gm

Vajradanthi

500 gm

0.25/gm

Bakul

500 gm

0.25/gm

Maifal

500 gm

0.25/gm

To manufacture 100gm/1 unit of Vicco Tooth powder needs the following components Ingredients

Qty (gms)

Babhul

16

Manji

16

Bor

22

Vajradanthi

14

Bakul

22

Maifal

10

On 1-4-2013 Vicco Laboratories, manufactured 100 units of Vicco Tooth Paste Additional Cost: Wages Rs.300, Power Rs.60 Steps:

1. Voucher Type creation : Gateway of Tally > Accounts Info > Voucher Type > Create – ‘Manufacturing Journal’ – Stock Journal. Use as Manufacturing Journal - Yes 2. Units of Measure – Create Compound units ‘1 unit of 100gms’ 3. Stock Item Creation: 1. In ‘Component’ stock item creation screen ex. Babhul Set component (BOM)? No. Create other Component stock item 2. In ’Main’ Stock item creation screen (ex. Vicco Tooth Powder) Set component (BOM)? Yes Components of: Vicco Tooth Powder of Manufacture :1 Unit

Unit

4. Voucher Entry: Voucher Type > Stock Journal (ALT+F7) > Select Manufacturing Journal. In Manufacturing Journal: (a) Name of the Product: Vicco Tooth Powder Qty: 100 unit Now tally automatically fill the component details (b) Provide Additional Cost details for power and wages Example: Following is the opening stock of Raj Health Products on 1-4-2013 Ingredients

Opening Qty

Rate

Wheat

1500 gm

3/gm

Maize

1500 gm

4/gm

Soya Beans

1500 gm

5/gm

Rice

1500 gm

2/gm

Beans

1500 gm

4/gm

To manufacture 500 gm/1 unit health powder needs the following components Ingredients

Qty (gms)

Wheat

75

Maize

125

Soya Beans

100

Rice

150

Beans

50

On 1-4-2013 Raj Health products manufactured 5 units of Health powder Additional Cost: Wages Rs.500, Power Rs.100 PRICE LIST Price List refers to a list of items maintained by an organisation along with their price details. A price list is generally used by organisations which deal in multiple products. Price Lists are maintained in various structures for different types of buyers (customers), viz., Wholesalers, Dealers, Retailers, etc. The price list is structured based on the classification of buyers and is referred to at the time of making sales. Whenever the sale prices change (on the basis of time), the changes reflect in the Price List also. In case of bulk sales, discounts can also be given to the buyers. Usage: Various price lists available a) For classes of business like whole sale, retail, export and dealership. b) For different geographical areas. c) For quantity and volume. Activate: F11: Features > Inventory Features (F2) > Use Multiple Price Levels – Yes Company Price Levels > 1) Whole Sales 2) Retail Sales 3) Export 4) Dealerships Gateway of Tally > Inventory info > Stock Groups Stock Items Units of Measure Price List (Set the price list)

Result: Gateway of Tally > Stock Summary (Reports) Note: Cash sales/purchase never mentioned their name in Voucher Example: Opening stock of Saranya Book store as on 1-4-2013 Accounts Book 350Nos Maths Book 400Nos English Book 500Nos Following are the price list of Saranya Book Store, Madurai on 1-4-2013 (A)Retail Price Account Book Less than 50Nos

Rs. 400

50 to 100Nos

Rs. 390

More than 100Nos

Rs. 375

Maths Book Less than 40Nos

Rs. 325

40 to 80Nos

Rs. 310

More than 80Nos

Rs. 300

English Book Less than 50Nos

Rs. 350

50 to 100 Nos

Rs. 325

More than 100Nos

Rs. 315

(B) Whole Sales Account Book

Less than 50Nos

Rs. 315

50 to 100Nos

Rs. 300

More than 100Nos

Rs. 295 (Disc 2%)

Maths Book Less than 40Nos

Rs. 950

40 to 80Nos

Rs. 550

More than 80Nos

Rs. 350 (Disc 1%)

English Book Less than 50Nos

Rs. 335

50 to 100 Nos

Rs. 300

More than 100Nos

Rs. 280

15.4.2013: Sold to Neelavathi Book Shop (Whole sales) for credit 25.4.2013: Sold to New Century Book Shop (Retail sales) for cash 26.4.2013: Sold to Anitha Book Shop (Whole sales) for credit 28.4.2013: Sold to Deepika Book Shop (Retail sales) for cash

Value Added Tax (VAT) Value Added Tax (VAT) is an indirect tax on goods, introduced in lieu of sales tax, to ensure transparency and greater compliance. The basic premise of VAT is to levy tax on the ‘true value’ added to the goods, at each stage in the transaction chain. This ultimately reduces: 

Tax paid to the government.



Cost/tax passed on to the customer.

Activate: F11: Features > Statutory & Taxation (F3) > Enable Value Added Tax – Yes Set/Alter VAT Details – Yes VAT Computation Report Depending on the Input VAT paid during purchases and the output VAT availed on sales, VAT Refundable or Payable is calculated in this section by Tally.ERP 9. The difference between Input VAT and Output VAT = VAT Refundable. Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation Input Tax - Tax paid on purchase Output Tax – Tax paid on sales VAT Rates: Vat @ 1%: Goods like gold, silver, precious metals and stones etc. Vat @ 4%: Largest no of goods (270) which include commodities used in daily life, drugs, medicines, agriculture, industrial inputs, capital goods and declared goods. Vat @ 12.5%: The remaining items are under this rate. Goods outside VAT: Items whose prices are not fully marketed determined. E.g. Liquor, lottery tickets, petroleum products Exempted from VAT: It is a list of 40 commodities which includes natural and unprocessed products in unorganized sector

PAYROLL Payroll refers to a series of accounting transactions involved in the process of paying employees for the services rendered after taking all the statutory and non-statutory deductions into account, in conformance with the terms of employment, company policy and the law of the land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions. Tally payroll is integrated with accounting to give the user the benefit of simplified payroll processing and accounting. Tally payroll enables user to setup and implement salary structure ranging from simple to complex as per the organization requirement.

Activate: F11: Features > Accounting Features (F1) > Maintain Payroll – Yes More than ONE Payroll/Cost Category – Yes F11: Features > Statutory & Taxation (F3) > Enable Payroll Statutory - Yes Set/Alter Payroll Statutory Details - Yes Result: Gateway of Tally > Payroll Reports > Statements of Payroll STEP 1: Gateway of Tally > Payroll Info > Units (Work) > Create > Unit Creation Simple Unit: Month, Day, Hour, Minutes Compound Unit: Month of 26 Days, Hours of 60 Minutes STEP 2: Gateway of Tally > Payroll Info > Attendance/Production Types > Create

Name

Attendance Type

Present

Attendance/Leave with pay

Absent

Leave without pay

Overtime

Production

Paid Leave

Attendance/Leave with pay

Unpaid leave

Leave without pay

STEP 3: Gateway of Tally > Payroll Info > Employee Groups > Create Employee Group: Manager, Supervisor, Administrator, Marketing STEP 4:

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

Income Type: Fixed Under: Indirect Expenses Affect Net Salary? Yes Name to appear in Payslip: HRA Use for Gratuity? No Calculation Type: As Computer Value Calculation Period: Months Computation Info: Compute: On Specified Formula Specified Formula: Basic Salary – Enter Values (3)Conveyance Pay Head Type: Earnings for Employees Income Type: Fixed Under: Indirect Expenses Affect Net Salary? Yes Name to appear in Payslip: Conveyance Use for Gratuity? No Calculation Type: Flat Rate Calculation Period: Months (4)DA Pay Head Type: Earnings for Employees Income Type: Fixed Under: Indirect Expenses Affect Net Salary? Yes Name to appear in Payslip: DA Use for Gratuity? No

Calculation Type: As Computer Value Calculation Period: Months Computation Info: Compute: On Specified Formula Specified Formula: Basic Salary – Enter Values (5)PF Pay Head Type: Deductions from Employees Under: Current Liabilities Affect Net Salary? Yes Name to appear in Payslip: PF Calculation Type: As Computer Value Calculation Period: Months Computation Info: Compute: On Specified Formula Specified Formula: Basic Salary – Enter Values (6)Professional Tax Pay Head Type: Employees’ Statutory Deductions Under: Current Liabilities Affect Net Salary? Yes Name to appear in Payslip: Professional Tax Calculation Type: As Computer Value Calculation Period: Months Computation Info: Compute: On Current Earnings Total (Slab Type – Value) (7)Gratuity Pay Head Type: Gratuity Under: Current Liabilities (8)Salary Payable Ledger

Pay Head Type: Not Applicable Under: Current Liabilities STEP 6: Gateway of Tally > Payroll Info > Salary Details > Define > Name of Employee/Group (select) Effective from > Date Pay Head > Copy for Employee Group/ Start Afresh STEP 7: Gateway of Tally > Payroll Vouchers > Attendance (CTRL+F5) Payroll (CTRL+F4) Attendance Voucher: Select Employee Name, Present, Absent, Paid Leave Payroll Voucher: ALT+A for Autofill. Now a screen “Employee Filters” appear Employee Group: Ashok, Payroll Ledger : Salary Payable STEP 8: Gateway of Tally > Accounting Voucher > Payment (F5) Enter only in single entry mode (F12: Configure) Account: Cash; Press ALT+A, Select salary payable and press enter. Now tally Automatically transfer the salary amount employee a/c is debited and cash a/c is credited.

Display: Gateway of Tally > Payroll Reports > Statements of Payroll Example: Eminent Technologies provide the salary details for the month of ‘April – 2013’ Employee Name

M. Amala

S. Bala

C. Chandru

Employee Group

Manager

Supervisor

Administrator

Designation

Assistant Manager

Lab in Charge

System Administrator

Employee Number

101

102

103

Employee I.T.PAN

TN239800PP

TN233459PP

TN235674PP

Bank Detail

6601, SBI, MDU

6602, SBI, MDU

6607, SBI, MDU

Basic Salary

Rs. 12, 000

Rs. 8,000

Rs. 10,0000

HRA

Upto Rs. 5000 -> 3%

Upto Rs. 5000 -> 3%

Upto Rs. 5000 -> 3%

Upto Rs. 5000 -> 4%

Upto Rs. 5000 -> 4%

Upto Rs. 5000 -> 4%

Rs.3000

Rs.2000

Rs. 3000

6%

7%

8%

Ref *

Ref *

Ref *

Salary Heads Monthly Payments

DA

Upto Rs. 8000 -> 3% Above Rs. 8000-> 4%

Conveyance PF Professional Tax Gratuity

25days upto 24months 25days upto 24months 25days upto 24months

Attendance Details Month Days

26

26

26

Present

22

20

21

Absent

2

2

1

Paid leave

2

2

2

Unpaid Leave

_

2

2

Over Time

_

_

_

Net Salary

?

?

?

From Amount

Amount upto

Slab Type

Value Basis

_

3,000.00

Value

0

Professional Tax (Ref.No.1)*:

3,000.00

4,999.00

Value

30

4,999.00

7,999.99

Value

60

7,999.99

9,999.99

Value

100

9,999.99

14,999.99

Value

150

14,999.99

_

Value

200

SHORT CUT KEYS FUNCTION KEY COMBINATION Function Key

F1 CTRL+F1

F2

Functionality

Availability

To select Company

At all masters menu screen

To select Accounting Features

F11: Features Screen

To select payroll vouchers to alter

At Accounting/Inventory Voucher Creation & Alteration screen

To change the current date

AT almost all screen in Tally

To select Inventory Features

F11: Features Screen

CTRL+F2

To select order buttons

At Accounting/Inventory Voucher Creation & Alteration screen

To select the company

AT almost all screen in Tally

F3

To select Statutory and Taxation Features

F11: Features Screen

F4

To select the Contra Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F5

To select the payment voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F6

To select the Receipt Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To select the rejection in voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F7

To select the Journal Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F8

To select the Sales Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To select the credit note Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F9

To select the Purchase Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

CTRL+F9

To select the debit note Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F10

To select the Reversing Journal Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

CTRL+F10

To select the Memorandum Voucher

At Accounting/Inventory Voucher Creation & Alteration screen

F11

To select the functions and features screen

At almost all screens in Tally

F12

To select the configure screen

At almost all screens in Tally

CTRL+F6

CTRL+F8

NAVIGATION KEYS Keys

Functionality

Availability

Pg up

To display previous voucher during voucher entries/alter

At voucher entry and alteration screen

Pg dn

To display next voucher during voucher entries/alter

At voucher entry and alteration screen

Enter

To accept anything typed into a field. To accept a voucher or master

At almost all areas in tally

To remove what you typed into a field. To come out of a screen

At almost all screens in tally

Collapse next level details

At voucher register screen and Trail balance report

To alter a master while making an entry or viewing a report

At all Reports

Esc Shift+Enter CTRL+Enter

SPECIAL FUNCTION KEY Function Key

ALT+F1

Functionality

Availability

To close/shut the company

At all menu screens

To view detailed report

At almost all report screens

To explode a line into details

At almost all screens in tally

To select the inventory voucher to alter At Accounting Voucher Creation & Alteration screen ALT+F2

To change the period

At almost all screens in tally

ALT+F3

To select the company info (To create/alter/shut a company)

At gateway of Tally screen

ALT+F4

To select the purchase order voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To select the sales order voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To view monthly and quarterly report

At almost all report screens in Tally

To select the Rejection out voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To select the stock journal voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To accept all audit list

At tally audit listing screen

To select the Delivery Note voucher

At Accounting/Inventory Voucher Creation & Alteration screen

To view the columnar report

At ledger voucher screen

ALT+F9

To select the Receipt Note voucher

At Accounting/Inventory Voucher Creation & Alteration screen

ALT+F10

To select the physical stock voucher

At Accounting/Inventory Voucher Creation & Alteration screen

ALT+F12

To filter the information based on monetary value (Range)

At almost all report screens

ALT+F5

ALT+F6

ALT+F7

ALT+F8

CTRL+M

To access the Gateway of Tally

CTRL+N

To access the calculator/ODBC server frame

CTRL+A

To accept as it is on the screen/Saving

CTRL+Q

Quit the screen without making any change

CTRL+V

Voucher Mode

CTRL+Enter

To alter a master while making an entry or viewing report

Enter

To accept information typed into a field

Esc

To exit a screen

ALT+C

Create master at a voucher screen

ALT+D

Delete single ledger/Voucher

ALT+X

Cancel Voucher

ALT+P

Print

ALT+I

Print preview

ALT+2

Duplicate Voucher

F1

Select company/ Accounts Button

ALT+F1

Inventory Button/Shut Company

CTRL+F1

Payroll Button

ALT+F3

Company Info

F2

Date

ALT+F2

Period

CTRL+F2

Order Button

Problem: 1 1. 2. 3. 4. 5. 6. 7.

Mr. Ram started business with cash Rs. 3, 00,000. Purchases 10 Ctv’s from ABC & Co @ Rs. 15,000 each. Purchases 15 Ctv’s for cash @ Rs. 15,000 each. Paid carriage on purchases Rs. 500. Cash sales 10 Ctv’s @ Rs. 20,000 each. Sales to Shalimar & co 15 Ctv’s @ Rs. 20,000 each. Paid salaries Rs. 4,000 & Rent 1,000.

Answers: Gross Profit: 1, 24,500 Net profit: 1, 19,500

B/S: 5, 69,500

Problem: 2 1.

Mr. Gandhi commenced business with cash Rs. 5,00,000

2. 3. 4. 5. 6. 7. 8. 9. 10.

Purchase Furniture worth Rs. 80,000 for business use. Deposited in ICICI bank Rs. 1,00,000 Purchase Office desk paid by cheque Rs. 2,000 Purchase 10 CD players from Aiwa & co.@Rs. 7000 each Paid carriage Rs. 250 Sold 5 CD players for cash @Rs.9000 each. Sold 5 CD players to ‘X’ & Co. @Rs.9000 each. Paid Salaries Rs. 3,000 Paid Rent Rs.2,500.

Answers: Gross Profit: 19,750

Net Profit: 14,250

B/S: 5,84,250

Problem: 3 1. Mr. R.S. Reddy started business with capital Rs. 3, 00,000. 2. Purchase from XYZ & Co. 50 Shirts @ Rs. 150 each 100 Trousers @ Rs. 200 each 3. Cash Sales 30 Shirts @ Rs. 200 each 70 Trousers @ Rs. 250 each 4. Sales to Vijay & Co 20 Shirts @ Rs. 200 each 30 Trousers @ Rs. 250 each 5. Paid to XYZ & Co. Rs. 25,000. 6. Received Cash from Vijay & Co. Rs. 10,000. 7. Paid Salaries Rs. 3,000. 8. Paid Rent Rs. 2,000. Answers: Gross Profit: 7,500 Net profit: 2,500

B/S: 3, 05,000

Problem: 4 1. Mr. Leave started business with capital Rs. 5, 00,000. 2. Purchase from A-Z furniture. 50 Tables @ Rs. 200 each 200 Chairs @ Rs. 150 each 3. Cash Purchase 20 Boards @ Rs. 5,000

4. Sales to Princess Esen School 5 Boards @ Rs. 400 each 50 Chairs @ Rs. 200 each 20 Tables @ Rs. 250 each 5. Cash Sales 10 Boards @ Rs. 400 each 100 Chairs @ Rs. 200 each 20 Tables @ Rs. 250 each Charge 10 % Sales Tax 6. Returned to A-Z furniture 5 Tables, 10 Chairs 7. Paid to A-Z furniture Rs. 15,000 8. Received cash from Princess Esen School in full settlement of his account. 9. Paid Salaries Rs. 5,000 & Rent Rs. 2,000. Answers: Gross Profit: 11,750 B/S: 5, 30,150

Net profits: 4,750 Closing Stock: 8,250

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

Gross Profit: 19,300 Balance Sheet: 5,09,750

Choose the Answer: 1. We can change the Company Information from a. Company Info > Back up b. Company Info > Split Company Data c. Company Info > Alter

d. None of these

2. Company Restore option is available in a. Company Features b. Company Information

c. Configuration

d. None of these

3. Tally package is developed by a. Peutronics b. Tally Solutions

c. Coral Softwares

d. Vedika Softwares

4. In general the Financial year from shall be from a. 1st April of any year b. 31st March of any year c. All of them are true d.None of these

5. We can Modify an existing Company from a. Company Info > Alter b. Company Info > Alter Company c.Gateway of Tally > Modify Company d. None of these 6. To change Current Date from Gateway of Tally press the key a. F1

b. F5

c. F2

d. F9

7. Party account can be created through a. Group creation window

b. Ledger creation window

c. Inventory creation window

d. Any one of them

8. A ledger may get declaration space for its Alias through a.

F12

b.

F11

c.

Alt + F1

d.

Alt + F2

9. F12 is known as a.

Company Features

b.

Company Configuration

c.

Accounting Features

d.

None of these

10. What is the utility of Tally Vault Password? a.

It will lock the period of Company

b

It will lock all voucher entries for that Company

c.

It will not show the Company Name in the Company Select List.

d.

None of these

11. We can show Bill wise details of Debtors and Creditors by activating a.

Bill by bill

b.

c.

Maintain References d.

Maintain Bill wise Details None of these

12. The shortcut key to quit from Tally is a. Ctrl + L

b.

Ctrl + P

c.

Ctrl + M

13. A Ledger can't be deleted if it is caring Opening Balance:

d. Ctrl+Q

a. True

b. False

14. How many inbuilt Accounts group are in tally by default? a.

29

b.

31

c.

25

d.

34

Ctrl + A

d.

Ctrl + B

15. The shortcut used to activate calculator is a.

Ctrl + N

b.

Ctrl + M

c.

16. Suspense Account Group is defined under a. Income

b. Expenditure

c. Liabilities d. Assets

17. To activate MRP feature from Gateway of Tally initially we need to press a.

F11

b.

F12

c.

F10

d.

Alt + F1

18. MRP formula for inclusive of vat is a. c.

{vat%*(MRP * QTY)}/100 Both a & b

b.

(100*rate of vat)/(100+rate of vat)

d.

None of these

19. Manufacturing Journal creates based on a. Journal

b. Receipt Note

c. Stock Journal

d. Purchase Quotation

20. To create Manufacturing Journal which option must be activated a.

Use Common Narration

b.

Narrations for each entry

c.

Prefill with Zero

d.

Use as manufacturing Journal

21. How many types of Measurement Units we can create in Tally? a. 2

b. 3

c.5

d. Unlimited

22. To activate Job Costing which options require to be activated? a. Maintain Cost Centre

b.

c. Both a & b

d.

Use Cost Centre for Job Costing None of these

23. Multiple Godowns are activated from a.

F11

b.

F11 > F1

c.

F11 > F2

d.

F11 > F3

Two

d.

Four

24. There are _________ predefined ledgers a.

One

b.

Three

c.

25. We can see list of Memorandum Vouchers from a. Cash/Bank Books b. Exception Reports c. Accounts Books d. Trail Balance 26. To print a voucher from Tally we need to press a. Ctrl + P

b. Shift + P

c. Alt + P

d. Ctrl + Alt + P

27. We can see Working Capital figure changing a. Voucher configuration

b. Profit & Loss configuration

c. Balance Sheet configuration

d. Ledger configuration

28. Input Vat Ledger is created under which account? a. Duties & Taxes b. Sales

c. Sales Return

d. None of these

29. We can create multiple users in Tally activating a. Tally Audit b. Use Security Control c. Both (a) and (b)

d. None of these

30. “Allow components list details (Bill of Materials)” option is activated for a. Ledgers

b. Cost Category

c. Stock Items

d.

Budgets

31. Retained Earnings is an alias of a. Indirect Income b. Reserve and Surplus c. Capital Account 32. We can repeat narration by pressing a. Shift + R

b. Alt + R

33. What is MRP?

c. Ctrl + R

d. Alt + Shift + R

d. Investments

a. Market Price b. Maximum Retail Price c. Marginal Price d. Minimum Retail Price 34. We can use Stock Journal for a.

Production and Consumption

b.

Inter Godown transfer for stock

c.

Both (a) and (b)

d.

None of these

35. Discount Column is available in a. Sales Invoice

b. Purchase Invoice

c. Both (a) and (b)

d. None of these

36. We can get the report of Interest from a. Account Books b. Cash and Fund flow c. Inventory Books

d. Statements of Accounts

37. We can cancel a voucher using a. Alt + X

b. Ctrl + X c. Shift + X

d. Ctrl + Shift + X

38. To see reports of Job Work Analysis a.

Display-Statement of a/cs

b.

Display-Statement of a/cs-Job Work Analysis

c.

Display-Statement of a/cs-Cost Center-Job work

d.

None of these

39. For reconciliation of Bank press a.

F12

b.

F10

c.

40. We can't select cash in Journal Voucher:

F5

d.

a. True

F6

b. False

41. To create Scenario which option require to be activated? a.

Use Rev Journal & Optional voucher in F12

b.

Use Optional voucher in F11

c.

Use Reversing voucher in F11

d.

Use Rev journal & Optional voucher in F11

42. Optional Voucher is one type of a. Conventional Voucher b. Unconventional Voucher 43. TDS deduction entry can be made through

c. Both (a) & (b)

d. None of these

a. Payment Voucher

b. Journal Voucher c. Receipt Voucher d. All of these

44. To create Purchase Order press a. Alt + F4

b. Ctrl + F4

c. F4

d. None of these

45. List of Optional Voucher we can get from a. Cash Bank Books

b.

Exceptional Reports

c. Accounts Books

d.

Balance Sheet

46. Input Vat Credit on Capital goods should be defined under a. Capital Account b.Current Liabilities

c. Duties & Taxes

d. Misc. Expenses (Assets)

47. Single Entry mode is applicable for a.

Receipt Voucher

b.

Contra Voucher

c.

Payment Voucher

d.

All of these

48. Online voucher creation from Day Book report by pressing a. Ctrl + A b. Shift + A c. Alt + A d. None of these 49. Reversing journal is a a.

Conventional Voucher

c.

Both (a) and (b)

b.

Unconventional Voucher d.

None of these

50. To hide the name of the Company you need to define a.

Security Control

b.

Tally Audit

c.

Create at least one User

d.

Tally Vault Password

51. To declare a voucher as Post Dated press a.

Ctrl + T

b.

Alt + T

c.

Ctrl + P

d.

Ctrl + D

52. We can switch from Accounting Voucher to Inventory Voucher pressing a.

F2

b.

Alt +F1

c.

Ctrl + F1

d.

F11

53. Goods returning to a Creditor after challan but before bill we need to pass

a.

Debit Note

b.

Receipt Note

c.

Rejection Out

d.

Rejection In

54. Branch / Division is a group defined under a.

Liabilities

b. Assets

c.

Income

d. Expenditure

55. To use Dr/Cr instead of To/By during Voucher entry or vice versa, Press a.

F10

b.

F12

c.

F11

d.

None of these

56. For Export of Data from Company to Company Tally uses a.

SDF Format

b.

ASCII Format

c.

XML Format

d.

All of these

57. Voucher class is a pre defined voucher type that helps to a.

Automatic Entry

b.

Automatic Calculation

c.

Minimize Errors

d.

All of these

58. To alter a master while making an entry or viewing a report a. Alt + Enter

b.

Shift + Enter

c.

Ctrl + Enter

d. Tab + Enter

59. To view the TDS report go to a.

Display > Statements of Accounts > TDS Outstanding > TDS Computation

b.

Accounts Book > TDS Outstanding > TDS Computation

c.

Display > TDS Outstanding > TDS Computation

d,.

None of these

60. To show the cheque number while reconciling Bank Accounts press a.

F11

b.

F 12

c. CTRL + F11

d. CTRL + F12

61. Data Folder of a Company consists of a.

3 digits

b.

4 digits

c.

6 digits

d.

5 digits

62. Total number of Ledgers, Groups, Entries etc. can be shown from a.

Tally Audit

b.

Statistics

c. Accounts Information d. Company Information

63. Voucher Class for Interest calculation created based on a.

Journal Voucher

b.

Debit and Credit Note

c.

Receipt and Payment Voucher

d.

Both (a) and (b)

64. ETCS means a.

Enable Tax Collected at Source

b. Electronic Tax Collected at Source

c.

Electric Tax Collected at Source

d. None of these

65. What is TAN? a.

Tax Account Number

b.

Tax Assessment Number

c.

Tax Assignment Number

d.

None of these

66. To get Payroll Reports choose a.

Gateway of Tally > Display

b.

Gateway of Tally > Display > Statement of Accounts

c.

Gateway of Tally > Display > Statement of Payroll

d.

Gateway of Tally > Display > Payroll Reports

67. Payroll Auto fill is done through a. Ctrl + A b. Alt + A

c. Ctrl + B

d.

Alt + B

68. To see Gratuity Reports go to a.

Gateway of Tally > Display > Payroll Report > Gratuity

b.

Gateway of Tally > Display > Gratuity Report

c.

Gateway of Tally > Display > Statement of Accounts > Gratuity Reports

d.

None of these

69. At the time of Branch Transfer, Sales ledger is created under which Vat/Tax Class? a.

Export

b.

Consignment/Branch Transfer Outward

c.

Sales with Vat rate

d.

None of these

70. Memorandum Voucher does not affect Books of Accounts. a. True

b.

71. To remove a line at all reports screen, shortcut is a.

Alt + R

b.

Alt + S

c.

Alt + 1

d.

Alt + T

False

72. There is no difference between Shut Company & Delete Company. a. True b. False 73. How can we see Vat Reports? a.

Gateway of Tally > Display

b.

Gateway of Tally > Vat Reports

c.

Gateway of Tally > Display > Statutory Info

d.

Gateway of Tally > Display> Statutory Reports

74. BOM represents a. Billing of Machines b. Bill of Maintenance

c. Bill of Materials

d. None of these

75. What is the full form of TCS? a.

Tax Collected by Staff

b.

c.

Tax Collected at Source

Tax Consumption at Source d.

Tax Collected from Sales

c.

Alt+F7

76. The shortcut used for Sales Order is a.

Alt+F4

b.

Alt+F5

d.

Alt+F8

77. Bank OCC a/c is a group defined under a.

Bank Account b.

Secured Loan c. Unsecured Loan

d. Loan & Liability

78. Sales Tax Ledger falls under which Group? a. Indirect Expenses b. Duties and Taxes

c. Sales d.

79. "Alias" represents a. Short name b.

c.

Code name

d.

All of these

c.

F2

d.

F1

Nick name

Purchases

80. To change the date, shortcut used a.

Alt+F2

b.

Alt+F3

81. If we purchase any Fixed asset in credit, we can pass it from a.

Payment mode b.

Receipt mode

c. Journal mode

82. To save entry without any amount, we have to use a.

Cost Center

b.

Maintain Multiple godown

d. Contra mode

c.

Allow O value entry d.

Use Rej. Notes

83. To see the report of Unconventional vouchers go to a.

Display-Day Book

b.

Display-Account Books

c.

Display-Exception Reports

d.

Display-Trial Balance

84. The shortcut used for Optional vouchers is a.

Ctrl + N

b.

Ctrl + M

c.

Ctrl + A

d.

Ctrl + L

85. Transfer of materials from one godown to another godown, use a.

Manufacturing Journal

b.

Stock Journal

c.

Purchase Journal

c.

Both A & B

86. BOM represents Bill of Materials.

a. True

b.

False

87. Recording of actual stock as physically verified or counted is done through a.

Journal

b.

Stock Journal

c. Physical Stock

d.

Sales

88. Predefined Billing terms can be maintained through a.

Cost Center

b.

Voucher Class

c.

Maintan Multiple Godowns

d.

Stock Categories

89. How many formats are available while Exporting? a.

5

b.

4

c.

3

d.

2

d.

All of these

90. While exporting Ledgers from Tally to Web Page, we use a.

XML Format

b.

ASCII Format

c.

SDF Format

d.

HTML Format

c.

Assumption

91. Budget represents …………………… a.

Estimation

b.

Forecasting

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

Alt+F2

b.

F2

c.

Alt + C

93. In Service tax Credit Adjustment (%) should be either

d. Alt+F1

a. 20%

b.100%

c. Both a & b

d.30%

94. Service Tax Report can be seen from a.

Display > Day Book

b.

Display > Account Books

c.

Display > Statutory Masters

d.

Display > Statutory Reports

95. Can we allow Expenses/Fixed Assets in Purchase vouchers? a.Yes

b. No

96. Transfer from Main Cash to Petty Cash you require to pass ……………… voucher. a.

Payment

b.

Contra c.

Receipt

d. None of these

97. If the Financial Year from is 1st April 2005 and the Books Beginning from is 1st January 2006 then what will be the Closing Date? a. 31st Dec 2006 b. 31st March 2006 c.

31st December 2005 d.

None of these

98. Income Tax number of the Company will appear in which report? a.

Cash/Bank Book

b.

Profit and Loss A/c

c.

Reminder Letter

d.

None of these

99. Patent account falls under a. Investments

b.

Liabilities

c.

Current Assets

d.

None of these

100. Find out which is not a Default Ledger in Tally. a. Cash in Hand

b. Capital Account

c.

Profit & Loss

d.

None of these