Basics of Accounting

Tally is an Accounting Software that helps you in maintaining

Accounts and Inventory of your office.
General Accounting
What is Accounting
Accounting 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 American Institute of
certified pu!lic accountants.
Methods of Accounting
There are two types of Accounting Systems.
". American #ethod or Single $ntry System.
%. $nglish #ethod or &ou!le $ntry System.
1. American Method or Single Entry System.
It has further five types of accounting.
I. Assets Accounts
II. 'ia!ilities Accounts
III. (apital Accounts or )wner*s $+uity A,c
IV. -evenue or Income Accounts
V. 'oss or $.penses A,c
Methods of Recording
I. &e!it the Increase in the Assets and (redit the &ecrease in the
Assets.
II. (redit the Increase in the 'ia!ilities and &e!it the &ecrease in the
'ia!ilities.
III. (redit the Increase in the (apital and &e!it the &ecrease in the
(apital.
IV. (redit the Increase in the Income and &e!it the &ecrease in the
Income.
V. &e!it the Increase in the $.penses and (redit the &ecrease in the
$.penses.
2. English Method or ou!le Entry System.
"lassification of Accounts
". #ersonal Accounts$ These accounts are those accounts which are
opened !y a name of a person, firm, company, society or organization.
Rules$ %e!it the Recei&er and "redit the Gi&er'.
Types of #ersonal Accounts$
(. )atural #ersonal Accounts$
a/ #A0$S0*s Accounts
!/ )wner*s (apital Accounts
c/ )wner*s &rawing Accounts
d/ &e!tors Accounts
e/ (reditors Accounts
((. Artificial #ersonal Accounts
a/ 1irm*s Accounts
a/ (ompany*s Accounts
!/ )rganization Accounts
c/ Ban2 Accounts
d/ (lu! Accounts
e/ Insurance (ompany Accounts
f/ 3overnment Sector accounts
(((. Representati&e #ersonal Accounts
a/ )utstanding Salary &ue to Staff account
!/ 4repaid Insurance Account
c/ Accrued Income Account
d/ 5nearned (ommission Account
6. Real Accounts $ Those Business assets which can !e measure in the term
of money
their accounts are called -eal Accounts.
Rules$ %e!it what comes in and "redit what goes out'.
Types of Real Accounts$
I. Tangi!le Real Accounts$ These accounts are those assets
account which can !e touched.
a/ (ash Account
!/ Stoc2 Account
c/ 1urniture Account
d/ 'and Account
e/ Building Account
II. (ntangi!le Real Accounts$ Those accounts are those assets
account which can*t touch !ut can !e measured in the term of
money.
a/ 3oodwill Accounts
!/ 4atents Accounts
c/ Trade #ar2 Accounts
d/ (opy -ight Accounts
7. )ominal Accounts $ Income and $.penditure accounts of a !usiness
are called nominal accounts.
Rules$ %All the E+penses are de!ited and (ncomes are
credited'.
Types of Real Accounts$
I. E+penditure Accounts$
a/ Salary 4aid Accounts
!/ -ent 4aid Accounts
c/ Bed &e!ts Accounts
d/ (ommission 4aid Accounts
((. (ncome Accounts$
a/ Salary -eceived Accounts
!/ -ent -eceived Accounts
c/ (ommission -eceived Accounts
d/ Interest -eceived Accounts
e/ Bed &e!ts -ecovered Accounts
Steps for wor,ing in the Tally
". "reate "ompany$ In Tally this is the 1irst tas2 or primary tas2 to create a
company. 1or this 4urpose we have to select the (reate (ompany option
from menu 3ateway of Tally. After selecting the option we have to fill up
the details for the (ompany li2e (ompany 8ame, Address, Started &ate,
and Income Ta. 8o etc.
%. "reates Groups$ 3roups are created for same type of 'edger A,cs. In
Tally There are many groups which are used for ma2ing ledgers. So in
the rare cases we have to create groups. These are the main groups in
the tally.
I. Reser&e and Surplus -Retained Earning.$ 9ou can use this
group heads li2e
Investment Allowance -eserve, Select 'edger and other such reserve
accounts.
a/ "urrent Assets$ This is the primary group that has all the
current assets accounts. It has Si. Su! 3roups under it.
!/ /an, Accounts$ It is used to hold all accounts of !an2s.
c/ "ash in hand$ It is used to hold ledger account of cash.
d/ eposits$ It is used to hold assets li2e security deposits, rental
deposits and all other deposits made !y the company.
e/ 0oan and Ad&ances$ It is used to hold all advances and loans of
non trading nature given !y the company.
f/ Stoc, in hand$ It is used to hold certain special accounts li2e
raw material, finished goods and wor2 in progress.
g/ Sundry e!tors$ It is used to hold accounts of companies and
individuals that give goods on credit to the company.
III. "urrent 0ia!ilities$ This is a primary group and is used to hold
outstanding and statuary lia!ilities of the company. The group has
three su! groups under it which are as follows.
a/ uties and ta+es$ It consists all types of ta.es and duties li2e
$.cise, 'ocal Sales ta., (entral Sales Ta., :AT etc.
!/ #ro&isions$ It is used to hold other ta. provisions li2e Income
ta., depreciation in it.
c/ Sundry "reditors$ It is used to hold accounts trade creditors of the
company.
(1. 2i+ed Assets$ This is used to 2eep accounts of all the fi.ed
assets, patents, trade tights etc.
1. (n&estment$ This is used to hold ledger accounts of shares, !onus
and other securities of the company.
1(. 0oan 0ia!ilities$ This is used to 2eep trac2 of loan ta2en !y the
company. This group has three su! groups which are as follows.
a. /an, 3 Accounts$ It is used to hold all overdraft accounts with
!an2s.
!. Secured 0oans$ It is used to hold long,medium term loans ta2en
!y the company from financial companies and Ban2s etc.
c. 4nsecured 0oans$ It is used to hold the loans ta2en
unconditionally !y the company.
1((. Suspense Accounts$ This is used !y many companies to
maintain a suspense ledger which 2eeps trac2 of money received or
paid !y the companies, whose nature of transaction is not yet 2nown.
1(((. Miscellaneous E+penses$ The loss of the company, which has
not !een written off !ut carried forward to the ne.t year, should fall
here. 0owever, tally treats it as a negative profit and carries it to the
profit and loss account.
(5. /ranches6i&ision$ This is used to 2eep the names of all
companies which may !e !ranches, divisions of the company.
5. Sales Account$ It is used to all goods sales accounts of the
companies.
5(. #urchase Account$ It is used to all goods purchase accounts of
the companies.
5((. irect (ncome$ It is used to hold ledger accounts of non;trade
income accounts that affect gross profit.
5(((. (ndirect (ncome$ This is used to hold ledger accounts of those
e.penses of the company that determine its gross profit. 1or e.ample
interest received and
commission received.
5(1. irect E+penses$ This is used to hold ledger accounts of those
e.penses of the company which determine its gross profit. $.penses
li2e salary paid to la!our,
transportation, electricity !ills etc.
51. (ndirect E+penses$This is used to hold ledger account of those
e.penses of the company, which determine its net profit. $.penses li2e
advertising, maintenance of vehicles, administrative e.penses etc.
6. "reate 0edgers$ 'edgers are actual account heads to which the
transactions are identified. 9ou #a2e all voucher entries in these
accounts. 9ou have to classify all ledgers in to groups.
7. 1oucher Entries$ 1or #a2ing the :oucher $ntries first of all we have to
set the voucher date !y pressing 1% then enter the voucher date. There
are various types of vouchers in tally. Those are descri!es as follows< ;
I. "ontra 1oucher$ This type of voucher is used for (ash to Ban2,
Ban2 to (ash and Ban2 to Ban2 $ntries. 4ress 17 to select the
voucher type.
II. #ayment 1oucher$ This type of voucher is used for the (ash
4ayment $ntries. 4ress 1= to select the voucher type.
III. Receipts 1oucher$ This type of voucher is used for the (ash
-eceipts $ntries. 4ress 1> to select the voucher type.
(1. 7ournal$ This is used for the ?ournal $ntries li2e de!it of credit
$ntries. 4ress 1@ to select the voucher type.
:. Sales 1oucher$ This is used for the 3oods Sales $ntries. 4ress 1A to
select the voucher type.
1(. #urchase 1oucher$ This is used for 3oods 4urchase $ntries. 4ress
1B to select the voucher type.
1((. Memo$ This is used to create #emorandum or -everse ?ournal
:oucher. 4ress 1"C to select the voucher type.
=. isplay Reports$ There are several types of reports are generated !y
the tally li2e Trading and 4rofit and 'oss Account, Balance Sheet,
Inventory -eporting -atio Analysis etc.
Introduction to Tally
Tally is a 1inancial and Inventory #anagement System. Tally is
one of the acclaimed Accounting Software with large user !ase in
India and a!road, which is continuously growing. Tally is developed in
India using Tally &evelopment 'anguage DT&'/. Tally software was
developed !y #r.Bharat 3oen2a in the year "BAA.
1eatures of Tally
". Accounting wihtout codes
%. (omprehensive Accounting. #aintains complete range of !oo2s
of Accounts, 1inal A,c*s li2e Balance Sheet , 4rofit E loss A,c, cash
and fund flow , Trial Balance and others.
6. 4rovides #ultiple reports in &iverse formats
7. :arious options for interest (alculations
=. #aintain multiple 3odowns for stoc2 management.
>. 5nlimited su!Fclassifications to get multiFdimensional analysis
and comparatives.
@. Allow accounts of multiple companies simultaneously.
A. #ultiple currencies in the same transaction and viewing all
reports in one or more currency.
B. 4rints online.
"C. print day!oo2 and !alance sheet and ledger , trial !alance and
profit and loss a,c.
"". Bac2up and restore option
"%. Tally is allow to che+ue printing
"6. #ulti ta. calculation li2e :AT, T&S, T(S, 1BT, et c.
"7. (alculate 4ayroll calculation easily.
"=. 5se Security levels for audit purpose.
To start Tally <
Start FG 4rograms FGTally B FG Tally B -elease %
)r
&ou!le clic2 on the Tally shortcut in the des2top to open Tally
Tally Screen (omponents<
"/ Title Bar F &isplays the version num!er , system date and time
%/ 3ateway of Tally F &isplays menus, screens and reports.
6/ (alculator F used for calculator functions.
7/ Buttons tool!ars F displays !uttons that provide +uic2 interaction
with tally.
=/ #inimize Button F 4erforms the standard windows function
allowing us to minimize tally to wor2 on other applications.
(reating a (ompany
Hhen Tally first loads the 3ateway of Tally area is availa!le.
Hhen no companies are there , then the Select company option is not
activated. The cursor is placed the create company meaning that a
company should !e created. 4ress enter in (reate company option
in order to create a company.
To create a company choose create company option in the gateway of
tally screen or company information menu. Hhile creating a new
company it will as2 for the following inforamtion.
a/ &irectory F In this if needed we have to specify the path where
the company file should !e stored in your computer. By default
&<ITallyI&ata is the path ta2en.
!/ 8ame F In this we have to type the name of the
company.
c / #ailing 8ame F In this we have to type the mailing name, which
is used to all the letters used in Tally.
d/ #ailing Address F In this we have to type the mailing address, such
as street , city, pincode for the company.
e / $Fmail Address F In this we have to type the $Fmail id for the
company.
f/ Statutory compliance for F By default the statutory compliance for
India. It is used for ta. calculation for country wise.
g/ (urrency Sym!ol F By default the currency sym!ol -s is ta2en.
Since Tally is a Indian product.
h/ #aintain F In this we have to choose either Accounts only or Accounts with
Inventory
i / 1inancial 9ear F In this we have to type the starting date of the
financial year. In accountancy financial year start from April " of year to
#ar 6" of the ne.t year. 1or e.ample " april %CC@ to 6" march
%CCA. Automatically tally adds "% months with the starting date of the
financial year.
J / Boo2 Beginning 1rom F In this we have to specify the date in which the
!oo2 should !e started. The date given must lie in !etween the financial
year starting date and ending date.
2/ Tally :alut 4assword F In this we have to specify the password for the
company, if so the company name will not !e displayed in the Select
company option.
l / 5se Security (ontrol F Hhile opening the company if we need to specify the
user name and password for protection D e.< other person can*t open
our company/ , we can ma2e this option to yes and specify the user
name and password.
m/ Base (urrency Sym!ol F This option specifies the information a!out
currency used in the company. Such as Base (urrency Sym!ol, 1ormal
8ame,8um!er of decimal places, Is sym!ol suffi. with amount, sym!ol for
decimal portion, show amount in #illions, Is sym!ol suffi.ed with amount
etc.
8ote < All the a!ove information is not must, we can specify the
important things and omit the others.
Group And 0eger
Accounts )rganization< 'edger accounts and groups
In manual accounting, accounts are grouped upon preparation of Trial !alance to
prepare final accounts, namely 4rofit and loss A,c and Balance Sheet. In tally at
the time of creation ledger accounts, we place it under appropriate account
group. Account 3roups provide us the a!ility to classify our accounts to get all
the reports instantly and properly classified. He have the li!erty to reFgroup
later to suit our re+uirements.
(reating a 3roup
Tally provides a list of %A preFdefined groups. )f these, "= are primary groups and
"6 are su!Fgroups. He may configure our groups to ena!le , disa!le advanced
mode.
4ress 1"% FG Accts, Inv info FG Account #asters FG Set to yes the following
options
Allow Advances entries in masters F 9es
5se Address for 'edger Accounts F 9es
Single group F Allows us to wor2 on one group or su!Fgroup at a time.
3ateway of Tally FG Accounts Info FG 3roups FG Single FG (reate
8ame of 3roup < $nter the name of the desired group or su!Fgroup D eg<
Salary/
Alias < 3ive an alias to allow access the group using the alias in addition to its
name , or leave it !lan2
5nder< Specify under which e.isting D4arent/ group the su!Fclassification is
needed. He can create a new parent group !y using Alt Kc. In other words Alt
K( is the shortcut 2ey to create a ledger or group during creation or during
voucher entry.
Altering 3roups
)nce created, groups can !e altered !y selecting Alter for single or
multiple groups. The procedure is the same as we used to display groups e.cept
of course we may alter the data.
Deleting Groups
He can delete a group via the 3roup Alteration screen !y pressing Alt
K&. 0owever , we cannot delete Tally preFdefined groups,or groups with su!F
groups, or groups containing ledgers. The lowest level must !e deleted first.
0edgers
)nce we have created necessary #asters, now it is the turn of
ledger creation. Tally on its own, (reates % ledgers listed !elow all
others we have to create.
(ash Dunder (ashF in F hand 3roup/ 4rofit E
'oss Account D4rimary edger/
'edger is the actual account head to which we identify a
transaction. He pass all accounting voucher entries using ledgers. All
ledgers have to !e classified into groups. 0ence, a through
understanding of account classification is important wor2ing with
ledgers
'ist of ledgers fre+uently used and their related 3roups
". (apital Account L (apital Account
%. 8ame of your creditors L Sundry (reditors
6. 8ame of your &e!tors L Sundry &e!tors
7. 8ame of $.penses L &irect $.penses or Indirect
$.penses according to the nature of e.penses
=. 8ame of Income L Indirect Income
>. 8ame of Ban2 L Ban2 Account
@. 8ame of (urrent Asset L (urrent Assets
stoc2 in hand
deposits
show short term investment
A. 8ame of 1i.ed Asset L 1i.ed Asset
B. 8ame of (urrent 'ia!ilities L (urrent 'ia!ilities
"C. 8ame of 1i.ed 'ia!ilities L 1i.ed lia!ilities
"". 8ame of 'oss L &irect $.penses or Indirect $.p.
"%. Bad &e!ts L Indirect $.p.
"6. 4rovision for Bad &e!ts L (urrent 'ia!ilities
"7. )utstanding $.penses L (urrent 'ia!ilities
"=. Advance Income L (urrent 'ia!ilities
">. )utstanding Income L (urrent Assets
"@. Sale Ta. , :AT L &uties and Ta.es
"A. $.cise &uty , ($8:AT L &uties and Ta.es
"B. &rawing L (apital
%C. 4urchase L 4urchase account
%". Sale L Sale Account
'edgers can !e created in single and multiple modes. In multiple mode you
can create multiple ledgers at a time.
3o to 3ateway of TallyG Accounts Info. G 'edgersG (reate Dunder Single
'edger/
)ame
$nter the 8ame of the account
Alias
$nter an alias name if re+uired
4nder
All accounts must !e classified under their appropriate 3roups. Select the
3roup under which the 'edger is created from the 'ist of 3roups.
3o to 3ateway of TallyG Accounts Info G 'edgers G (reate Dunder #ultiple
'edgers/
5nder 3roup
Select the name of the group under which you want to create the 'edgers
from the 'ist of 3roups.
S.8o
This is auto generated.
8ame of 'edger
$nter the name of the 'edger.
5nder
This field defaults to the parent group selected in 5nder 3roup
)pening Balance
This is the !alance remaining when you first enter your !oo2s on Tally, i.e.
the date of !eginning of !oo2s
Exercise: 1
Name : King Sons
Mailing Name : King
Address : 101, 7
th
Main, M.G. Road,
Bangalore
State : Karnataa
!"N #ode : $%% 00&
'elephone No : (7%))))
*+Mail : ing,gmail.-om
#urren-. S.m/ol : Rs.
Maintain : A--ount onl.
Exercise: 2
Name : G" *nterprises
Mailing Name : G"
Address : 0$, 1
rd
Main,
Ra2a2inagar,
#hennai
State : 'amil Nadu
!"N #ode : (00 &(%
'elephone No : 07%)001
*+Mail : -onta-ta//,.ahoo.-om
#urren-. S.m/ol : Rs.
Maintain : A--ount 3ith "n4entor.
Exercise: 3
"reate a 0edger$
#ariya*s (apital A,(
(anara Ban2
4urchase
Sales
-ent
$lectricity Bill
Hages
Stationery
&iscount 4aid
Insurance 4aid
&iscount -eceived
(ommission 4aid
4aid 4etty (ash
)ffice $.penses
Exercise: 4
-avi*s (apital A,(
SBI Ban2 A,(
4urchase A,(
Sales A,(
#achinery E 1urniture A,(
Investment A,(
Bro2erage A,(
Typewriter A,(
4urchase from 8ic2 (omputers A,(
-ent A,(
Salary A,(
-eturn Inward A,(
-eturn )utward A,(
&rawing A,(
Sold to Suresh A,(
Traveling $.penses A,(
&iscount Allowed A,(
Telephone (harges A,(
Sales to -a!a Traders A,(
Accounting :ouchers
In manual accounting, we record transactions through ?ournal
entries. In computerized Accounting systems we do it through
:oucher entry. 8ormally, a transaction is supported !y a &ocument,
e.g., Supplier*s Bill, (opy of Sales Bill , (ounter foil, -ecord Slip entry of
(he+ue !oo2 , 4ay FinFslip , 4ay -egister etc. 1or every transaction,
source document, we should enter a :oucher. A voucher contains
details of the transaction.
#articulars
If you create Accounts voucher
In this field you should specify &r or (r. Type the letter & or &r over the e.isting
prompt to change, then select the ledger name from the popFup list that Tally
opens. There may !e multiple &e!it and (redit entries in one single voucher.
If you create Inventory voucher
If you are creating inventory voucher in Tally you will give information a!out the
stoc2 item you receive or issue and item related details li2e the
3odown,warehouse, Batch &etails, Muantity, -ate, Amount etc.
e!it 6 "redit Amount$
This field appears in Accounts voucher only. $nter the amount of transaction and
press $nter 2ey. Tally will update current !alance of the ledger and display it. This
will happen only if you gave N9esN to the +uestion NShow 'edger (urrent BalanceON
under Accounting :oucher in :ouchers $ntry under 1"%< configure option. The total
will appear on the !ottom of the &e!it and (redit columns. If !oth credit and &e!it
totals are not e+ual Tally will prompt to enter further (redit , &e!it to !alance the
voucher. If !oth are e+ual Tally will move the cursor to 8arration field.
The )arration field
The last field of :oucher is 8arration, here you enter details of the transaction
entered in the voucher. It is not mendatory , compulsory to give narration. 9ou can
type anything a!out the transaction or Just leave this field !lan2. 9ou can turn off
narration !y responding 8o to the +uestion N5se (ommon 8arrationON at voucher
creation,alteration screen.
Sa&ing the 1oucher$
After entering narration, when you press $nter 2ey a confirmation prompt will
appear As2ing NAccept 9es,8oON. 4ress 9 or $nter to save the voucher or press 8 to
return cursor to the first entry allows you to alter any data in the voucher. If you
give 9 Tally will save the voucher and !lan2 screen will appear ne.t to continue
voucher entry.
1oucher Types in Tally$
#ayment &oucher$
The payment voucher is for all payments you ma2e through cash or Ban2. These
payments can !e towards e.penses, purchases, to trade creditors, etc. 1ollow the
!elow procedure to create a payment voucher.
All payment vouchers must have first entry a de!it and at least one credit to a
(ash or a Ban2 Account. 9ou can have any num!er of de!it and credit entries.
0owever, if you do not credit one cash or !an2 account and still try to accept the
voucher a message appears as2ing for a cash or !an2 account.
If configured, 1und Transfer entries can also !e made in payment voucher.
If you have given 9es to N4rint After Saving :oucherON in :oucher Type
creation,Alteration Tally will print the voucher immediately after saving.
Receipt 1oucher
The receipt voucher in Tally is for all receipts into the (ash,Ban2 account. The
voucher is similar to the payment voucher e.cept that you de!it cash or !an2 A,cs
and credit the ledger from which you receive. The first entry in receipt must !e
credit and at least one de!it to a cash or !an2 account. There can !y any num!er
of de!it and credit entries. If you do not de!it one (ash or !an2 account, a
message appears as2ing you to rectify the entry.
If you have given 9es to N4rint After Saving :oucherON in :oucher Type
creation,Alteration Tally will print the voucher immediately after saving.
Alternatively you can print any voucher later !y going to :oucher Alteration screen
using &isplay menu. )pen the voucher and press AltF4 to display the N4rint
:oucherN Screen. 3ive N9N to the 4rintO 4rompt.
Sales 1oucher
The first entry must !e a de!it involving any de!tor, !an2 or cash account and
second should !e a credit to ledger placed under sales account group. -est of the
accounts may !e any -evenue account or any account under the 3roup current
lia!ilities. Thus you can include &uties E Ta.es from 6rd entry onwards.
#urchase &oucher
The first entry must !e a credit involving any creditor, (ash or Ban2 account and
second entry should !e a de!it to a ledger placed under purchase account group.
-est of the accounts may !e any revenue account or any account under the 3roup
(urrent 'ia!ilities
"ontra 1oucher
The contra voucher is for 1und transfers !etween cash and Ban2 accounts only.
The following is the rule,
1or e.ample, If you pay -s. "CCCC cash into State !an2 Account. 9our contra entry
should !e li2e this,
4articulars &e!it,credit
(r. (ash (redit F "=CCC
&r. State !an2 ac &e!it F "=CCC
"redit )ote$
(redit 8ote is raised when a !uyer returns some goods that you sold him. or you
give him credit due to rate difference or discount,re!ate or when there is an e.ces
de!it to any party
e!it )ote$
9ou create a &e!it 8ote when you ma2e purchase return or when you have short
!illed a customer or you are granted credit !y your supplier due to rate difference,
discount etc.
Memo 1oucher
This is purely 8onFaccounting voucher. These entries will not affect your accounts
nor does affect your final results. 9ou can alter and convert a #emo :oucher into a
regular voucher when you decide to !ring the entry into your !oo2s.
9ou can use memo vouchers to ma2e suspense payments, vouchers not verified at
the time of entry, Items given on approval.
Exercise: 5
?ournalize the following<
8o &ate Transaction
C" C"FC%F%CC7 #aruthi E Sons Started !usiness with capital of -s.
%,CC,CCC
C% C%FC%F%CC7 4aid into Indian !an2 -s. =C,CCC
C6 C6FC%F%CC7 Bought goods for cash "7,@CC
C7 C>FC%F%CC7 Sold good to ?? Traders on (redit @,CCC
C= CBFC%F%CC7 (ash Sales "B,CCC
C> ""FC%F%CC7 -eceived (ommission 7CC
C@ "6FC%F%CC7 -eceived seven ta!les from Amirtha Stores at =CC each
CA "=FC%F%CC7 Bought goods from :ignesh %,CCC
CB %"FC%F%CC7 4aid cash to Amirtha Stores
"C %>FC%F%CC7 4aid rent ",CCC
"" %@FC%F%CC7 4aid Salary %,=CC
Exercise : 6
?ournalize the following<
8o &ate Transaction
C" C6FC@F%CC7 4eter started !usiness with -s. @=,CCC
C% C=FC@F%CC7 3oods purchased >,CCC
C6 "CFC@F%CC7 3ood sold -s. A,CCC
C7 "=FC@F%CC7 3oods purchased from #athew -s. %",CCC
C= "@FC@F%CC7 3oods sold to SanJay -s. %7,CCC
C> "AFC@F%CC7 3oods returned to #athew -s. ",6CC
C@ %CFC@F%CC7 3oods returned !y SanJay -s. =CC
CA %6FC@F%CC7 )pened an account with 0&1( Ban2 -s. "=,CCC
CB %=FC@F%CC7 &rew from Ban2 -s. 7,CCC
"C %=FC@F%CC7 1urniture purchased -s. 6,=CC
"" %@FC@F%CC7 SanJay settled his account
"% %AFC@F%CC7 Settled #athew*s Account
"6 %BFC@F%CC7 Insurance 4remium paid -s. 6=C
"7 %BFC@F%CC7 $lectric (harges paid -s. %=C
"= 6CFC@F%CC7 &rew for 4ersonal use -s. ",6CC
"> 6"FC@F%CC7 Salary paid -s. ",=CC
Exercise: 7
?ournalize the 1ollowing with invoice<
0S E (o started the !usiness from C",C7,%CC7
C",C7,%CC7 -eceived capital !y cash %,CC,CCC
C",C7,%CC7 (ash &eposited in 0&1( Ban2 =C,CCC
C7,C7,%CC7 (redit purchases from Piran Traders %C,CCC DInv.8o. "%%/
C7,C7,%CC7 (redit purchases from 4ooJa Traders %C,CCC DInv.8o. 766/
"",C7,%CC7 (redit purchases from Piran Traders %C,CCC DInv.8o. "77/
"",C7,%CC7 (redit purchases from 4ooJa Traders %C,CCC DInv.8o. 777/
"",C7,%CC7 -eturned 3oods to Piran Traders =CCC DInv.8o. "%%/
"6,C7,%CC7 -eturned 3oods to 4ooJa Traders =CCC DInv.8o. 777/
">,C7,%CC7 (redit Sales to -am E -am =C,CCC DInv.8o."/
">,C7,%CC7 (redit sales to Pavitha E co =C,CCC DInv.8o. %/
">,C7,%CC7 (ash Sales %C,CCC DInv.8o. 6/
"A,C7,%CC7 (redit Sales to -am E -am =C,CCC DInv.8o.7/
"A,C7,%CC7 (redit sales to Pavitha E co =C,CCC DInv.8o. =/
"A,C7,%CC7 3oods returned !y -am E -am =,CCC DInv.8o."/
"A,C7,%CC7 3oods returned !y Pavitha E co =CCC DInv.8o. =/
%",C7,%CC7 4ayment made !y che+ue to Piran Traders 6C,CCC (h. 8o. ">""%%
%",C7,%CC7 4ayment made !y che+ue to 4ooJa Traders 6C,CCC (h. 8o. ">""%6
%",C7,%CC7 -eceived che+ues from -am E -am @=CCC (h. 8o. 6%C6%"
%",C7,%CC7 -eceived che+ues from Pavitha E co @=CCC (h. 8o. ""%6"C
#ayment Made !y cash$
%>,C7,%CC7 4aid to 4etty cash !y cash ",CCC
%>,C7,%CC7 1urniture purchased %C,CCC
%>,C7,%CC7 Salaries paid "C,CCC
%>,C7,%CC7 -ent 7,CCC
%>,C7,%CC7 $lectricity charges 6,CCC
%>,C7,%CC7 Telephone charges 6,=CC
%>,C7,%CC7 (ash 4urchases =,CCC
#ayments Made !y #etty "ash$
6C,C7,%CC7 (onveyance "=C
6C,C7,%CC7 4ostage "CC
6C,C7,%CC7 Stationeries %CC
6C,C7,%CC7 Staff Helfare "CC
6C,C7,%CC7 Stationeries purchased from ?ain E (o "=CC on (redit
6C,C7,%CC7 &epreciation on 1urniture "CQ
Answer$ Balance Sheet Total -s. 6, %",B=C
Memorandum
Exercise: 8
&$ Apr &007 !aid ad4an-e in 'ra4ailing Rs.10000
&7 Apr &007 !aid salar. ad4an-e Rs.1000
01 Ma. &007 !aid salar. Rs.1000 against ad4an-e
0$ Ma. &007 !aid 'ra4eling e5p Rs.%)00 against ad4an-e
&$ Ma. &007 !aid rent Ad4an-e Rs.$000
0& 6une &007 !aid rent against ad4an-e
:oucher Types<
By default Tally 8 pro&ides 19 types of 1ouchers Dwith out counting
payroll vouchers/ for recording different natures of transactions. 0owever, if you
re+uire further :oucher Types that function li2e the one of the e.isting type, you
can create 8ew :oucher Types and give different :oucher 8um!ering series.
The :oucher Type facility is great as you can ma2e several alternates of each
preFfi.ed :oucher Type. 1or e.ample, for Sales :oucher, it may !e convenient to
have several :oucher Types li2e (ash Sales, (redit Sales, Sales To -egistered
&ealers, Sales to 5nregistered &ealers, $.port Sales, etc. By creating separate
voucher types for them, you can independently configure their num!ering scheme,
layout, etc.
1oucher )um!er$
To identify a voucher uni+uely, normally every voucher is given uni+ue
num!er. The num!er may !e allotted !y the user, or can !e automatically
generated !y Tally, according to options set in voucher Types under Accounts Info.
Tally provides three options for voucher num!ering
"/ Automatic %/ #anual 6/ 8one
If Automatic is opted for the selected :oucher Types, Tally allots
incremental num!er and cursor would not move here. And we cannot change the
voucher num!er.
If #anual is specified for the selected voucher type, cursor would !lin2
at the voucher num!er field to input from 2ey!oard. He can modify the voucher
8um!er
If none is opted for the selected :oucher Type, voucher num!er field
would not appear.
1eatures
Tally controls operational 1eatures through 1""< 1eatures !utton.
1""<1eatures !utton appear almost in every screen upon selecting a
company. He get same option irrespective of screen where we launch
it. 1eature settings are company specific. He can activate an option for
one company and deactivate the same for another company.
Accounting 1eatures F ""
". Integrate Accounts and Inventory< This option !asically
affects accounts. If we set this option to 9es, the value of stoc2 is
automatically computed on the !asis of Inventory and posted in
Balance sheet, 4rofit E loss a,c and we are not allowed to input the
stoc2 value on our own as the accounts are integrated with the
Inventory 4art.
If we set 8o, our Accounts E Inventory remains separate and we
have to input the value of closing stoc2 in the ledger under Stoc2F
inFhand group which is posted in the Balance Sheet E 4rofit E 'oss
A,c.
%. Income ,$.pense Statement Instead of 4 E '< He change 4rofit and 'oss
A,c to Income and $.penditure statement. By default, 4rofit E 'oss A,(
6. Allow #ulti (urrency< If we wish to record transaction in foreign
currency, we should set this option to yes. )n setting this feature to yes,
(urrency option would !e availa!le at Accounts Info menu and in ledger creation
we can specify currency for the ledger. In case we do not need foriegn currency
option, we should respond 8o, that would 2eep, Accounts Info menu and ledger
creation screen tidly.
7. #aintain Billwise &etails< By default, Tally would maintain ledger wise
!alance and display net de!it or credit !alance for a ledger. If we receive or
grant credit on purchase or sales, mere ledger !alance may not reflect the true
state of affairsFas a ledger may show an amount due which may not !e over
due on that date. By maintaining Bill wise details, we can get !ill wise
outstanding ,compute !ill wise overdue interest , In case we need these
features, respond 9es to this option that would allow to selectively option to
maintain Bill Hise &etails for ledgers. In case mere ledger !alances is
sufficient to meet our re+uirement. -espond 8o to 2eep the ledger creation
screen more slee2.
=. #aintain (ost (entres< If we wish to ma2e cost centre wise allocation,
respond 9es that would activate (ost (entres option which we would get in
Accounts inof menu
>. #ore than )ne cost (ategory< If we respond 9es to the
a!ove option, we are as2ed this +uestion. If we wish to allocate a transaction to
more than one set of cost centres simultaneously, respond 9es that would
activate (ost (ategory option under accounts info menu and we would !e a!le
to allocate to multiple set of cost centres.
@. Interest (alculations<Interest is reFcalculated with every change in
!alance outstanding. The (r in the interest amount should not !e confused to
mean an Income. It only means that it is paya!le and is a lia!ility.
A. #aintain 4ayroll< If we set this option to yes, we can create a employee pay
slip.
B. Allow Invoicing< If we set this option to yes, we can enter sales
transactions in Invoice mode also if we respond 8o, we will ne restricted to enter
sales transactions in voucher mode only.
"C. #aintain Budgets and (ontrols< If we wish to use Budget to compare with
actual or other !udgets and get variance or set (redit 'imit for party,set this
feature to yes. Hhen we set this feature to yes, Budget option would !e
avalia!le at Accounts info and (redit 'imits under Accounts InfoF'edger menu.
In case we do not need to use Budgets or credit limits, set to 8o.
"". 5se -eversing ?ournals E )ptional :ouchers<If we set this option
to yes, It would !e ena!le to voucher entry.
"%. Allow Rero valued entries< If we need to ma2e :oucher entires
whose monetary transaction value is C, respond yes D1or e.ample, to
prepare an Invoice for sample of zero value/, otherwise respond 8o.
"6. $na!le (he+ue printing < 9ou can choose to write che+ues
directly from Tally. (he+ues will !e printed when printing a 4ayment
:oucher. 0owever, first activate the capa!ility and set dimensions
#ultiF(urrency
)rganizations who transact in multiple currencies need to record transaction in the
currencies they transact with. He can create and transact in any currency. He
can also enter selling and !uying rate of different currencies.
1""F 1eatures Allow #ulti currency 9es
)nce this option is said to yes we get currencies under accounts info.
Select currencies press enter
The currencies menu has the usual create, display and alter options.
Sym!ol < $nter currency sym!ol
1ormal 8ame < $nter the name of currency, must
!e different from the sym!ol.
8um!er of &ecimal places < $nter the num!er of decimal places for the
(urrency.
-ate of $.change<
Thee screen always comes up in Alter mode.
-ate of $.change< It operate on dayFtoFday
Standard -ate < The standard rate is used to calculate variances from
The actual transaction rates
Selling -ate < $nter the rate at which we are selling the currency
to our money e.change.
Buying -ate < $nter the rate at which we are !uying the currency
from our Ban2er or #oney $.changer.
(ome to voucher entry 4ress 1= 4ayment 4ayment is made to Prishna
Traders in &ollars that is =C dollars. The entry is passed as shown !elow <
)nce enter is pressed in the amount column the &ollar gets converted to -upee as
on the date of voucher $ntry as shown !elow and the amount is displayed !ased
on -upee currency.

$.ercise< B
Mr. 7a5man started a /usiness in the name o8 7a5mana 'raders on 19$9&00$
0&9$9&00$ Re-ei4ed -apital 8rom Murali 1000 Dollars.
0&9$9&00$ Standard rate Dollars (7,(%,($
019$9&00% !ur-hased items 8rom :imal ; -o 8or 1$0 Dollars
019$9&00% Standard rate Dollars (1, (1, (0
0(9$9&00% Sold goods to Ra2a ; Ra2a 8or 7$ Dollars
0(9$9&00% Standard rate Dollars 0(, 0%, 07
0%9$9&00% Re-ei4ed 70 Dollars 8rom Ra2a ; Ra2a
0%9$9&00% Standard rate Dollars $%, $), $7
$.ercise< "C
Create currencies for the following:
Standard Selling Buying
ate ate ate
< =Dollar> (& (1 (0
? =@ran> 0$ 07 0(
A =!ound> 7& 71 7&
B =Cen> $% (0 $)
D =*uro> %& %1 %&
1.&.&000 Sathesh Started /usiness 3ith Rs. $,00,000
01+0&+&000 Epened #urrent A--ount in FD@# Rs. &$,000
01+0&+&000 Bought goods 8rom 7e4i 'raders <&00
0(+0&+&000 Sold good to 6agan 'raders on #redit A1$0
0)+0&+&000 Goods !ur-hased 8rom Mahila ; #o B100
11+0&+&000 @urniture pur-hased A$00
11+0&+&000 Goods returned to Mahila ; #o B1$
1$.&.&000 Bought goods 8rom :inita ; Sons D100
&1+0&+&000 Settled Mahila ; #o A--ount
&(+0&+&000 !aid rent 1,000
&7.&.&000 !aid Salar. &,$00
&7.&.&000 Sold to !eter Steel *nterprises D &00
&%+0&+&000 !eter Steel *nterprises settled his a--ount.
&%+0&+&000 Dre3 8rom Ban Rs.10, 000
(ost (ategories and (ost (entres
By providing cost centre, a transaction can !e allocated to it which would then
ena!le e.traction of all transactions for a cost centre. 0ence, a cost centre can !e
said to !e any unit of an organization to which transactions can !e allocated when
only costs or e.penses are allocated to these unitsS they are referred to as cost
canters.
1""F1eatrues Set yes to two options
#aintain (ost centre yes
#ore than one (ost (ategory yes
Steps (n&ol&ed<
(ost (ategories Single create
8ame< &epartment
Allocated -evenue Items< yes
Accept yes
(ost (entre#ultiple (ost (entre (reate
5nder (ost (entre< All items.
In (ategory (olumn Select &epartment
5nder 8ame of (ost (entre Type the different types of (ost (entres
Accept yes
(ome to voucher $ntry
4ress 1= 4ayment and enter the following entry
By Salaries -s. 7=,>CC
)nce we press enter we get the following screen, select (ost (ategory, then select
cost centres and type the salary amount incurred for the different departments as
shown !elow<
Type to cash Type the 8arration Accept 9es
()ST ($8T-$ ('ASS
(ost (entre (lasses affect all voucher types. In voucher entry, the allocation
screen would not appear, !ut allocation would !e made automatically.
Steps Involved<
". 4ress 1"" FG 1eatures FG #aintain (ost (entres and more
than one cost category options should !e set to 9es.
%. press 1"" FG 1eatures FG 4reFdefined cost centre
allocation during entry set 9es.
6. The following screen appears.
7. Type a (lass name, say $.penses Allocation . 4ress $nter the
following screen appears.
=. Select the name of the cost category as &epartment , select
(ost (entres and type the 4ercentage of allocation for each
department. The percentage should !e typed !y us. 4ress $nter
Accept 9es.
>. (ome to :oucher $ntry. 4ress 1= FG payment FG 5nder (ost
(entre (lass FG Select the name of the class as $.penses
allocation. Then pass the entry.
To view the Allocation of $.penses under different (ost
(entre< &isplay FG Statements of Accouts FG (ost centres
Exercise No: ""
(ost (ategory< (hennai
(ost (entre< #ar2eting, 1inance, Administration
C",7,%CC= 4aid Salary -s.%A, CCC D#F"C, CCC, 1F"C, CCC, AF A,CCC/
C6,7,%CC= 4aid -ent -s. A, CCC D#F%, 6CC, 1F %,%CC, AF 6, =CC/
"@,7,%CC= 4aid Stationeries -s. 6,CCC for all departments
%7,7,%CC= 4aid $lectricity charges -s. "%,CCC D#F7, CCC, 1F 6,=CC, AF 7,=CC/
6C,7,%CC= 4aid Sales Ta. -s. ",>=C for all departments
C",7,%CC= 4aid Income Ta. -s. ",ACC for all departments
Exercise No: "%
"ost "ategory< &epartment
"ost "entre< Account, 4urchase, Sales, (omputer
&ate $.penses Accoun
t
4urchas
e
Sale
s
(ompute
r
Total
C6,=,C= $lectric Bill %CCC %CCC "7CC =CCC "C7C
C
C=,=,C= -ent "=CC "=CC 6CC 6CCC >6C
C
C@,=,C= Interest =CC %CC "=C A=
C
C=,=,C= Hages =CC %CC @C
C
CB,=,C= Stationery %=C =C "%
C
"CC =%
C
"6,=,C= Salary 7=CC %CCC 6CCC 7CCC "6=C
C
%=,=,C= 4ostal
(harge
7CC "=C ==
C
%@,7,C= Telepone
Bill
"6CC 6CC %CC "=CC 66C
C
BillFHise &etails
By activating the Bill wise feature in 1""< 1eatures, the ledger masters
under Sundry &e!tors and Sundry (reditors automatically displays an
additional option called #aintain !alances !illF!yF!ill. )n setting this option
to 9es, you get an additional option &efault (redit 4eriod.
Hhen you enter details of sales and purchases with BillFwise turned on,
Tally prompts you to identify the invoice with an appropriate reference
num!er. The reference can then !e used to allocate payments to the
correct invoice to maintain an accurate account of outstanding.
BillFHise Types<
)ew Ref$
To enter new credit purchase or new credit sales value
Ad&ance
To settle payment or receipt !efore purchase or sales
Against Ref$
To settle payment or receipt against purchase or sales
3n Account
To settle an opening !alance to study party
(reation of BillTHiseT&etails<
1""< Accounting 1eature<
#aintain BillFwise &etailsO 9es
Dfor 8onFtrading A,c s also/ 8o
'edger creation<
4urchase 4urchase A,c
-am E (o Sundry (reditor
:oucher (reation<
3ateway of TallyAccounting :oucher

-eport<
3o to 3ateway of Tally G &isplay G Statements of Accounts G )utstandingG
-eceiva!les,4aya!les.
Exercise No: 11
#apital &, $0,000
Sundry de!tors
Mil. =!>7td $1(0
Bill No Date Amount Due da.s
S901+0&9101 &790190& 1010 10
S901+0&9100 &(90&90& 1710 10
S901+0&910) &790190& &000 0$
Sundry Creditors
!ra4een ; Sons 70$0
Bill No Date Amount Due da.s
#901+0&91&0% &(9019&00& 1$00 10
#901+0&91&$& &190&9&00& 00$0 10
#901+0&91&%& &$9019&00& 1$00 0$
"ixed #ssets
@urniture 10,000
#omputer 00,000
Epening Sto- 10,000
#ash in hand 70,000
SB" 1, 01,%)0
$oucher Entry:
Sales !ill
Mil. =!>7tds
Bill No Date Amount Due da.s
&0& 1090090& 1010 10
&10 1$90$90& 1$00 10
&$( 1190790& 1(00 1$
101 &%91090& &7$0
1$1 &$910901 $0$0 0$
1)& 1$901901 11000 0$
Kamal ; #o
Bill No Date Amount Due da.s
017 1&90090& &&10 1$
011 1(90$90& &($0 1$
0$& 1790%90& $(10 10
$1$ 1$911901 107%0 0$
($) &1901901 1$10
%1$ 10901901 &110 10
%urchase !ills
!ra4een ; Sons
Bill No Date Amount Due da.s
0001 0190090& 0$$ +
000& 0$90$90& 1000 1$
0001 1(90%90& 1(7$ 10
0000 &&91190& 00$0 10
000$ 11901901 1&1$0 0$
Malar ; #o
000( 0&90&901 110$0 10
0007 1$90&901 $$00 1$
000% &090&901 %7$ 1$
000) 11901901 1&10 10
ecei&ed cash
Mil. =!> 7td
Bill No Date Amount
100 0&90$90& 1710
&10 1790(90& 1$00
101 0191190& &7$0
1$1 11901901 0000
Kamal ; -o
017 109090& &&10
0$& &09%90& $000
$1$ 1191901 10000
($) &$91901 1$10
%ay'ents (ade
!ra4een ; Sons
1&%& 1$9$90& 1$00
0001 09090& 0$$
0000 &09)90& 00$0
000$ 1091901 1&000
Malar ; Sons
000( $91901 10,000
0007 1$91901 $,$00
Interest (alculations
The Activate Interest (alculation field is displayed in the 'edger (reation
screen only if Activate Interest (alculations is set to 9es in 1""< 1eatures.
Set this field to 9es for each specific ledger account for which interest is to
!e calculated.
Simple Mode (Where advanced parameters are not applicable)
To calculate Interest in the Simple #ode<
". 3o to 3ateway of TallyG 1""< 1eatures G Set Activate Interest
(alculation to 9es. G Set 5se Advanced 4arameters to 8o.
%. In the 'edger (reation screen set Activate Interest (alculation to 9es.
6. The Interest 4arameters su! screen is displayed. $nter the -ate and
select the interest style from the list.
(nterest calculation transaction !y transaction
Interest calculated on )utstanding Balances.
". 3o to Gateway of Tally> Accounts Info> !ed"ers> Alter (Sin"le)>
#an$ !td (ban$ account)
%. Set Activate interest (alculation to 9es.
6. -ate< "=Q.
7. Interest Style<. )f the four options, select 6>=F&ay 9ear.
=. Accept the screen.
The Interest (alculations -eport can !e displayed and printed.
3o to 3ateway of TallyG &isplayG Statements of AccountsG Interest
(alculationsG 'edgerG Ban2 Account
(nterest calculation transaction !y transaction
". Alter a (ustomer account
%. Set Activate Interest (alculation to 9es.
6. Set (alculate Interest TransactionF!yFtransaction to 9es.
7. Set )verFride 4arameters for each transaction to 8o.
To view the Interest calculated
3o to 3ateway of TallyG &isplayG Statements of AccountsG Interest
(alculationsG 'edgerG
Advanced Mode ( Where advanced parameters are applicable)
The advanced parameters are particularly useful where interest rates change
from time to time.
". 3o to 3ateway of TallyG 1""< 1eatures G Accounting 1eatures G Set
Activate Interest (alculation to 9es. G Set 5se Advanced 4arameters to
9es.
%. The Interest 4arameters su!Fscreen is displayed
1or 'edgers created under the 3roup Sundry &e!tors,Sundry
(reditors, the Interest 4arameters su!Fscreen is displayed as
shown !elow<
1or 'edgers created under the 3roup Ban2 Accounts, or if the
option (alculate Interest Transaction !y Transaction is set to
8o, then the Interest 4arameters su!Fscreen is displayed as
shown !elow
To view the report on )utstanding !alances<
3o to 3ateway of TallyG &isplayG Statements of Accounts.G Interest
(alculationsG 'edgersG Ban2 'td.
Ad&anced #arameters : (nterest calculation transaction !y
transaction$
Activate and specify interest calculations in ledger masters.
Advanced 4arameters F Interest calculation transaction !y transaction
3o to 3ateway of TallyG &isplayG Statements of AccountsG Interest (alculation G
'edgerGU a,c
$.ercise< "7
".>.%CC7 #apital Rs. 1,$0,000
&.(.&000 !ur-hased goods 8rom Raa/i.a 'raders 8or a sum o8 Rs.7$,000
G#redit period is 0$ da.s, Bill no.&0H
"nterest Rate 1&I and 1$I
(.(.&000 Sold goods to Kamalam ; #o 8or a sum o8 Rs. 1,&$,000
G#redit period is 0$ da.sH
"nterest rate 11I and 1%I
&.1&.&000 Amount paid to Raa/i.a 'raders plus the interest rate.
1.1.&00$ Amount re-ei4ed 8rom Kamalam plus the interest rate.
Displa. the interest -al-ulations 8rom 1+0(+&000 to 11+01+&00$
Budgets
Budgets are used to set targets and compare against actual and get
variances. He can create multiple !udgets for different purpose.
4ress 1""FAccounting 1eatures #aintain Budgets and (ontrolsF set yes
(reation of Budgets<
3ateway of Tally Accounts Info Budgets create
)n selection of create option, we get a screen as shown !elow
8ame < $nter a name of the Budget for identification
5nder < 4rimary
4eriod of Budget < 3iven the period range of the Budget in the
(olumns 1rom and To
4ress $nter 5nder 'edgers Type yes, the ne.t screen appears and type
the contents as shown !elow<
Account 8ame < 8ame of the 3roup or 'edger for which the
!udget is created.
(ost (entre < 8ot applica!le
Type of Budget < He get % options to select the type of Budget,
namely
". )n 8ett Transactions
%. )n (losing Balance
)n 8ett Transactions< This option is suita!le for accounts where nett
transactions are to !e monitored Deg. -evenue A,(/
)n (losing Transactions< This option is suita!le for accounts where closing
!alance is to !e monitored Deg. 4ersonal A,(/
4ress $nter $nter Accept yes. Budget has !een created.
To view the Budget,
3o to 3ateway of Tally &isplay Trial Balance 4ress Alt K B Budget
:ariance select the name of the Budget 4ress $nter
$.ercise< "=
*5penses Budget

#on4e.an-e $,000
Jages $0,000
#arriage Eut3ards $00
*le-tri-it. *5penses 1,000
Ad4ertising &,000
Selling and Distri/ution 1,$00
Enter the following entries for Budget and Controls
Ma. &00$
!aid #on4e.an-e &00
!aid Jages $00
!aid #arriage Eut3ards &,$00
!aid *le-tri-it. *5penses 1,000
!aid Ad4ertising &,000
!aid Selling and Distri/ution 1,100
6une &00$
!aid #on4e.an-e $00
!aid Jages &$0
!aid #arriage Eut3ards 1,$00
!aid *le-tri-it. *5penses &,000
!aid Ad4ertising &,000
!aid Selling and Distri/ution 1,&&0
Ban2 -econciliation
Ban2 -econciliation means that the accounts maintained !y the !an2er tallies with
the !an2 ledger account in our Boo2s. $ven if !oth the accounts are in sync, the
!alances may not !e e+ual for various reasons. Ban2 -econciliation is the process
to ensure that even if these two !alances apparently differ, the !an2 4ass Boo2 is
in sync with the Ban2 Boo2 in the !oo2s of accounts.
Steps Involved<
". )ur current account statement has !een sent to us !y our Ban2 for the
month ended may %CC=
%. Bring up the monthly summary of (urrent Account D&isplayAccount
Boo2sBan2 Boo2s and select the !an2 Account/
6. Bring the cursor to #ay and 4ress $nter. This !rings up the vouchers for the
month of #ay %CC=
7. It is helpful to see the 8arration as that contains che+ue num!ers and other
details. So 4ress 1"%< (onfigure and activate Show 8arration.
=. Since this is a Ban2 Account, an additional !utton 1= -econcile will !e visi!le
on the right. 4ress 1=
>. The display now !ecomes an $dit screen in reconciliation mode. The primary
components are<
A (olumn for the Ban2er*s &ate
The -econciliation at the !ottom of the screen,
Showing<
Balance as per (ompany Boo2s, Amounts not
-eflected In Ban2 and Balance as per !an2
@. $nter the !an2 date for the payment voucher and contra voucher.
A. The ne.t time we come for reconciliation, we will !e presented with
only those vouchers, which remain unreconciled.
$.ercise< ">
01909&00$ Re-ei4ed #apital /. #ash 1,00,000
0&909&00$ #ash deposited in SB" $0000
Deposit Slips
0$909&00$ Kiran 0$000
07909&00$ San2a2 &$000
10909&00$ Ka4i &0000
11909&00$ Kiran &0000
1$909&00$ Ka4i 1$000
#ounter @oils
0%909&00$ Ka4itha 1$000
0)909&00$ Sa-hin $000
11909&00$ Amutha 7$00
1&909&00$ Sa-hin 10000
1$909&00$ Amutha 0$00
17909&00$ Ka4itha 1&000
10909&00$ Ban #harges &$0
!ass Boo o8 SB" as on 10909&00$
Date Name Deposits =Dr> Jithdra3al =#r> Balan-e
0&9090$ #ash $0000 $0000 #r
0(9090$ Kiran 0$000 )$000 #r
0)9090$ San2a. &$000 1&0000 #r
109090$ Ka4itha 10$000 #r
119090$ Amutha 7$00 )7$00 #r
109090$ Sa-hin 10000 %7$00 #r
179090$ Ka4i 1$000 10&$00 #r
109090$ Ban &$0 10&&$0 #r
$.ercise< "@
6ee4an ; #o Started /usiness on 1909&000
1909&000 Re-ei4ed -apital /. #ash Rs. $0,0000
1909&000 #ash deposited in #anara Ban Rs. &0,000
@ollo3ing is the details o8 Deposit Slip =Sundr. De/tors>
10909&000 Ka/ir 00,000
1&909&000 Ksha &$,000
10909&000 S.am &0,000
&$909&000 Ksha 1$,000
&)909&000 Ka/ir 10,000
@ollo3ing is the details o8 -ounter @oil o8 #heLue Boo =Sundr. #reditors>
11909&000 Ashima 'e5tiles 1&,$00
11909&000 @ashion 'e5tiles 1,1$0
1$909&000 Sil. $,000
17909&000 Ashima 'e5tiles 10,000
1)909&000 @ashion 'e5tiles $,000
&%909&000 Sil. 1,000
10909&000 Ban #harges 100
Date Name Deposits =Dr> Jithdra3al =#r> Balan-e
01909&000 #ash &0,000 &0,000 #r
1&909&000 Ka/ir 00,000 (0,000 #r
11909&000 Ashima 'e5tiles 1&,$00 07,$00 #r
10909&000 Ksha &$,000 7&,$00 #r
1$909&000 @ashion 'e5tiles 1,1$0 (),1$0 #r
17909&000 Sil. $,000 (0,1$0 #r
1%909&000 Ashima 'e5tiles 10,000
&(909&000 Ksha 1$,000 (),1$0 #r
10909&000 #heLue Boo 100
)ptional and 4ostF&ated :oucher
This is another nonFaccounting voucher. 5nli2e a #emo voucher, this is not a
separate voucher type. 9ou can mar2 an e.isting voucher Dfor e.ample, a
payment voucher or a receipt voucher/ as 3ptional. 4ress "TR0 ; 0 or clic2 on
3ptional from the Button Bar. This !utton toggles with Regular. By mar2ing a
voucher 3ptional, the voucher does not get posted anywhere !ut remains in
the )ptional -egister.
9ou can ma2e a voucher type default to 3ptional if you need to create a new
voucher type or alter an e.isting voucher type.
3o to Gateway of Tally > Accounts Info > Voucher Types> select a
Voucher TypeG Set Make ptional as default to <es.
Ena!ling 3ptional 1ouchers
1. 3o to Gateway of Tally
2. Select 211$2eatures G Accounting 2eatures to display "ompany
3perations Alteration screen
=. Set 4se Re&. 7ournals > 3ptional 1ouchers? to <es.
@. Accept the screen to save.
4se of 3ptional 1ouchers
V If you do not want a transaction that is incomplete to affect the accounts, you can
mar2 this as an )ptional :oucher. )nce the transaction is complete, modify the
voucher and post it as -egular :oucher. 1or e.ample, 4erforma sales invoice. In
fact, an optional sales invoice prints as a 4erforma Invoice.
V )ptional :ouchers allow you to see the impact of transactions without actually
posting them.
V )ptional :ouchers can !e used to forecast future sales. 1or e.ample, create a
8ew :oucher Type F Sales 1orecast. -ecord future sales proJections using this
voucher type.
0et us consider the following e+ample.
)n 6Cth ?une you want to view the Balance Sheet as of today !ut ?une rent is not
due for payment until the first wee2 of ?uly. This lia!ility is not reflected in the
Balance Sheet. To overcome this, enter an )ptional :oucher dated 6Cth ?une.
The a!ove entry is made as shown !elow
". $nter &ate
%. Select )ptional from the !utton !ar
6. &e!it -ent account
Hhen you view the Balance Sheet, generate a report with the )ptional :oucher
included. The )ptional :oucher should !e already defined as a Scenario D-efer
section on Scenario #anagement for more details/. The voucher affects the
report temporarily. )nce you +uit the report, Tally does not retain the Scenario
details. The ne.t time you view the !alance sheet, it will not include the effect of
the )ptional :oucher unless you include it.
4ostF&ated :ouchers
Hhile entering vouchers, you can mar2 them as post dated. Tally will not update
the vouchers in ledgers until the specified date is approached. This is useful to
enter transactions that ta2e place on a regular !asis. 1or e.ample, if you pay for
something !y installments, you can set up the payments in advance, and Tally
will only enter them in the ledgers as they fall due.
#ar2 vouchers #ost ated !y using "TR0 ; T or clic2 on 4ost dated !utton
from the Button Bar. This !utton toggles with "urrent.
Accounting with Inventory
Inventory accounting includes recording stoc2 details, the
purchase of stoc2, the sale of stoc2, stoc2 movement !etween
storage locations, godowns and providing information on stoc2
availa!ility. Hith Tally it is possi!le to integrate the inventory and
accounting systems so that financial statements reflect the closing
stoc2 value from the Inventory system.
The Inventory system operates in much the same way as
the accounting system. 1irst we set up the inventory details, which is a
similar operation to creating the chart of accouts although , in this case
there is no preFdefined set of stoc2 groups. Second, we create the
individual stoc2 items. which is similar to setting up the ledgers. 1inally,
He are ready to use vouchers to record the various stoc2 transactions.
Stoc2 items<
Stoc2 items are the actual items in stoc2, and we account for
the issued and receipts of stoc2 at this level.
Stoc2 3roups<
He classify stoc2 items into stoc2 group !ased on any
common feature.
Stoc2 (ategories<
This is a useful Tally feature, Hhich allows us to classify similar
stoc2 items together across different stoc2 groups, ena!ling us to
o!tain reports on alternatives or su!stitutes for a stoc2 item.
'ocations,3odowns<
He can specify where the stoc2 items are held, e.g., which
warehouse shelf or rac2, o!tain stoc2 reports for each 3odown, and
account for movement of stoc2 !etween locations,3odowns.
5nits of measure<
He will need to create units of measure for stoc2 items. These
can !e simple units such as nos, metres, 2ilograms, pieces, or compound
units, e.g., !o. of "C pieces or " dozen is "% nos.
#aintain Accounts with Inventory
Tally displays a popFup list called Type of (ompany this is how
your !oo2s of accounts will !e maintained.
Accounts only
Select this only if you do not have any inventory transactions Dsuita!le for
professionals and corporate offices/. Tally would not permit intrusion ofInventory
related information that are not re+uired.
0owever, at a later date Dif re+uired/ you can alter the information as #aintain
AccountsFwithFInventory Tally accordingly now provides all the inventoryFrelated
information.
AccountsFwithFInventory
This o!viously allows you to maintain !oth financial accounts and inventory. 9ou
may choose not to use one or the other until the need arises.
Stoc, Groups
Stoc2 items can !e grouped together under Stoc, Groups to reflect their
classification !ased on of some commonality. 3rouping would ena!le easy location
and reporting of stoc2 items in statements. 0ence, items of a particular !rand can
!e grouped together so that you can e.tract stoc2 of all items of that !rand.
1or e.ample, create Stoc2 3roups li2e Sony. 9our stoc2 items could then !e Sony
6.=W dis2s, Sony tapes, etc. (lassify the Sony products under the Stoc2 3roup
Sony.
(reating Single Stoc2 3roup<
3ateway of TallyInventory InfoStoc2 3roupSingle Stoc2 3roup
In the 8ame field $nter Sony
In the under field Select 4rimary
(an Muantities of Items !e AddedO Set yes
(hec2 the data is correct and press enter and Accept 9es
8ame
3ive the name of the stoc2 group. 0ere we wish to create a group Sony.
5nder
Specify whether it is a primary group or a su!Fgroup of another group.
(an +uantities of items !e A&&$&O
1ield allows us to specify if it is logical for totals of stoc2FinFhand to !e displayed
for this group heading in Stoc2 Summary.
(reating #ultiple Stoc2 3roup<
Select (reate in multiple Stoc2 groups to !ring up the multi
stoc2 group creation screen.
Select group name from the 4opFup list of 3roups for the 5nder
3roup field.
In 8ame of Stoc2 3roup type and enter su! group name.
In the ne.t line type another group name and Accept FG yes.
&isplaying and Altering Stoc2 3roups
)nce created, stoc2 groups can !e displayed and altered in single and
multiple mode. He can delete a stoc2 group via single Stoc2 group alter !y
pressing XAltGKX&G. 0owever. we cannot delete a stoc2 group with su!F
groups or stoc2 items.The lower levels must !e deleted first
&elete a Stoc2 3roup
8ote<9ou can delete a stoc2 group only if it does not have any children
under it. The children could !e stoc2 group or stoc2 item or !oth.
Gateway of Tally%>Inventory Info%>Stoc$ Groups%>Sin"le Alter
4ress YA'TZKY&Zto delete the stoc2 group
9ou cannot delete a stoc2 group from multiple mode.
Stoc, "ategories$
Stoc2 (ategories offers parallel classification of items. 9ou may create Stoc2
(ategories li2e 1loppy &is2s and 1loppy &rives.
-e+uire information li2e total stoc2 of floppy dis2s or alternative items that could
!e used, these would !e !est availa!le through Stoc2 (ategories.
1"" 1eatures< #aintain Stoc2 (ategories 9es
(reating Single Stoc2 (ategory<
3ateway of Tally G Inventory Info G Stoc2 (ategories
In the 8ame field $nter 1loppy &is2s
In the under field Select 4rimary
(reating #ultiple Stoc2 (ategories
Select create in multiple mode to !ring up the multi stoc2 category
creation screen.
Select any one stoc2 categories from the list of categories. Type and
enter su! stoc2 categories.
4ress $nter twise to accept the data and return to the stoc2
categories menu.
&isplay or Alter a Stoc2 (ategory
Gateway of Tally%>Inventory Info%>Stoc$ &ate"ories%>Sin"le'Multiple (isplay
)r
Gateway of Tally%>Inventory Info%>Stoc$ &ate"ories%>Sin"le'Multiple Alter
Select the stoc2 category whose particulars you wish to display. Hhen you display
or alter a stoc2 category, the information entered while creating it is displayed.
&isplay from this mode is for master information only. 9ou will not o!tain any
!alances for a stoc2 category here. 5se the &isplay option from the 3ateway
of Tally for display of !alances and transactions.
In earlier days of computing, one would loo2 at the master information for
!alances. Tally !elieves that !alances are a logical conse+uence of the
transactionsS hence, they should !e availa!le with the transaction
summaries. 9ou would find all summaries and details through the &isplay
option in the main 3ateway of Tally.
&elete a Stoc2 (ategory
9ou can delete a stoc2 category only if it does not have any children under it.
The children could !e stoc2 category or stoc2 item or !oth.
Gateway of Tally%>Inventory Info%>Stoc$ &ate"ories%>Sin"le Alter
4ress YA'TZKY&Zto delete the stoc2 category
4nits of Measure
9ou will need to create units of measure for stoc2 items. These can !e
simple units such as num!ers., metres, 2ilograms, pieces, or compound units,
e.g. !o., where, say, one !o. e+uals ten pieces.
(reate a 5nit of #easure
There are two types of 5nit of measure<
". Simple
%. (ompound
Select 5nits of measure from the Inventory info menu and select create the
5nits menu to !ring up the unit creation screen.
In sym!ol type and enter nos. in formal name type and enter 8um!er of press
$nter twice to accept the data without +uitting from the unit creation screen.
3ateway of Tally[GInventory Info.[G 5nits of #easure[G (reate
In Sym!ol type ad enter doz. In 1ormal 8ame type and enter &ozen.
4ress $nter twice to accept the data.
d
5se the up arrow or !ac2space 2ey to position the highlight in the
Type field. Select (ompound form the types of units 4opFup menu. Select
doz as the 1irst 5nit. Type and enter "% as the conversion factor.
Select nos as the Second 5nit and accept the data. 4ress enter to
return to the units menu.
&isplaying and altering units of measure
3ateway of Tally G Inventory Info. G 5nits of #easure G &isplay,Alter
)nce created, units of measure can !e displayed and altered. 9ou can delete a
unit of measure in the alteration screen !y pressing YAltZKY&Z. 0owever, you
cannot delete a unit of measure that is part of a compound measure. The
compound measure must !e deleted first.
Godown
3odown is the place to store goods. Tally allows us to create any num!er of
3odown and nest into any num!er of levels.
1"" 1eatures< #aintain #ultiple 3odownsO 9es
(reating single 3odown<
3ateway of Tally G Inventory Info. G 'ocations G (reate
8ame
In the 8ame field, give the name of the location.
Address
3ive a address of the godown, if re+uired.
5nder
3ive the location under which this location is to !e su!Fgrouped. 5se YaltZKY(Z to
create the parent location. Select primary if it is not a child of any location.
Allow Storage of #aterialsO
Tally permits you to create a location,godown where you may not
store materials at all !ut treat it as a virtual location. :irtual location are
useful in case li2e 0ead )ffice which may have many different stoc2
points under it that store materials. 0ence, 0ead )ffice acts li2e a
primary group location. )r , for e.ample, designate 'ondon as a
virtual location with Him!ledon Harehouse, 0arrow Harehouse,
Bri.ton Harehouse as su!locations, godowns. These su!Flocations or
godowns will allow storage of materials.
&isplaying and altering stoc2 godowns
)nce created, stoc2 locations can !e displayed and altered in single
and multiple mode. 9ou can delete a stoc2 location via Single 'ocation
Alter !y pressing YAltZKY&Z. 0owever, you cannot delete a stoc2
location with su!F locations. The lower levels must !e deleted first.
Stoc, (tem
Stoc2 items are the actual items in stoc2, and we account for the issued and
receipts of stoc2 at this level.
Stoc2 items are the actual items in stoc2, and we account for the issued and
receipts of stoc2 at this level.
(reating Stoc2 Item<
3ateway of TallyInventory InfoSingle Stoc2 Item
In the 8ame field $nter Sony &is2s 6.=
In the under field Select Sony
In the unit field Bo. of "CC 8os.
&elete a stoc2 item
9ou can delete a stoc2 item only if it has not !een used form transaction
entry.
Gateway of Tally > Inventory Info > Stoc$ Items > Sin"le Alter
4ress YA'TZKY&Z to delete the Stoc2 Item
Stoc, Group
Exercise No: "A
a. ?ournalize the following Transaction in the Boo2 of Anandha Stores
%CC@
Aug C" Anand Started the !usiness -s.@,CC,CCC
CA Anand &eposit into the Indian Ban2 -s.%=,CCC
"C 4urchase "CC 2g 4onni -ice per 2g -s.%C.=C
"B 4urchase from -asi Stores %CC 2g Am!ai "A per 2g -s."@
Sep C% Salary for staff -s.7,=CC
C= 4aid -ent for -s.=,CCC
"= 4urchase =C lit 3ingilly )il per lit -s.BA
"@ 4urchase 6CC 0amam soap D"CCg/ per soap -s."6
4aid Stationery -s. 7=C
%C 4aid to -asi Store for -s.6,7CC
4urchase from #il2y E (o "%= 'a. Soap per soap -s."%
)ct C" 4urchase @= 'it ::& (oconut )il per lit -s.@A
C= 4aid Salary -s.7,=CC
"= 4urchase %CC Sandal Soap per soap -s.%"
"A Sales "%= 0amam Soap D"CCg/ per soap -s. "=
%7 4urchase "CC 0amam Soap D"=Cg/ per soap -s."A from 0aJi Store
%B Sold to ?eya Traders,
=C 2g 4onni -ice -s.%%
7= 2g 0amam Soap D"=Cg/ -s.%C
8ov C6 Sales Am!ai "A, =C2g per -s."A and @= 'a. Soap per soap -s."6
to 'a.mi Store
= Sales "C lit ::& (oconut )il per lit AC
> 4aid Salary -s.7,=CC
"% 4urchase Height #achine -s. A,CCC
"A Sales 6= lit 3ingilly )il per lit -s.BB.=C
%6 4aid Telephone Bill -s. ",%CC
%7 -eturn !y ?eya Traders"7 2g 4onni -ice
%A Sales "= 0amam SoapD"CCg/ for cash per soap -s."=
&ec C= Amount Settled !y ?eya Traders
@ 4aid to 0aJi Store -s.",CCC
A 4aid Salary -s. 7,=CC
"= 4urchase %C lit 3ingilly )il -s. BA
Stoc2 3roup< -ice, Soap, )il
!.
?ournalize the following Transaction in the Boo2 of -ahuman E Sons
%CC>
)ct C" Started !usiness with (apital -s. "C, CC,CCC
% )pened a Ban2 account in 0&1( -s. ",CC,CCC
= 4urchased Stationery item for -s.=,=CC
> 4urchased 1urniture for -s. %6,CCC
@ (redit 4urchased from 3uru Store Inv. 8o. "%6
Television -s. >,CCC "C nos
1ridge -s. A,ACC "= nos
Audio System -s. 7,=CC = nos
"C (redit 4urchased from A'# Traders Inv. 8o. "%7
Television -s. >,=CC 6 nos
1ridge -s. @,BCC = nos
"" Hithdraw from Ban2 -s. =,>CC for 4ersonal use (h.no. CBA@>=
"7 Bought a (omputer for -s."@,CCC from Sai System
"@ 3uru Store amount settled through a che+ue
"A Sold 3oods for (ash
Television -s. >,CCC = nos
Audio System -s. 7,=CC 6 nos
"B 4aid into Ban2 -s. "=,CCC
%C Sold 3oods to :arun E (o on (redit
Television -s. @,CCC "C nos
1ridge -s. B,CCC "= nos
Audio System -s. =,=CC = nos
%% 4aid Telephone (harges -s. "CCC
%6 -eceived cash -s. ">,CCC from :arun E (o
%7 4aid made !y (ash
4aid to 4etty (ash -s. %,CCC
Salaries -s."C,CCC
Hages -s. @,CCC
(arriage Inward -s. ",=CC
%> 4ayment #ade !y 4etty (ash
(onveyance -s. %CC
4ostage -s. "=C
Stationeries -s. "%C
Staff Helfare -s. %CC
Stoc, "ategories
Exercise No: "B
".7.%CC@ Pishore Trading (ompany Started !usiness with cash AC,CCC
7.7.%CC@ 4aid into Ban2 -s. "C,CCC
>.7.%CC@ 4urchase from 5thira E (o DInv.no. """/
Tele&ision
B4' (olor T: -s. @,CCC "C nos
B4' Blac2 E Hhite -s. B,CCC "% nos
Sony -s. "%,=CC "C nos
Samsung -s. "",%CC "= nos
B.7.%CC@ 4urchase from -u!a E Sons DInv. 8o. "%%/
"omputer
0(' -s. "%,CCC "= nos
'3 -s. "C,CCC "C nos
"".7.%CC@(redit Sales 0amsa Traders DInv.8o. "/
Tele&ision
B4' Blac2 E Hhite -s. B,=CC % nos
Sony -s. "6,=CC = nos
">.7.%CC@(redit 4urchase from Santhosh $lectricals DInv.8o. "66/
2an
5sha -s. ",CCC = nos
4hilips -s. ",%CC A nos
%C.7.%CC@(ash Sales DInv.8o.%/
"omputer
0(' -s. "%,CCC 7 nos
'3 -s. "C,CCC 7 nos
2an
5sha -s. ",CCC % nos
4hilips -s. ",%CC 7 nos
%%.7.%CC74aid into Telephone (harges -s. ",CCC
%7.7.%CC7"ash #urchase
Mi+ci
Panchan -s. ",%CC = nos
4reethi -s. ",=CC = nos
Butterfly -s. ",CCC = nos
%>.7.%CC7#ayments Made !y cash
4aid to 4etty (ash -s.%C, CCC
1urniture -s. ",=CC
Salaries -s."C, CCC
Hages -s. @,CCC
(arriage Inward -s. ",=CC
%@F7F%CC7 #ayment Made !y #etty "ash
(onveyance -s. %CC
4ostage -s. "=C
Stationeries -s. "%C
Staff Helfare -s. %CC
Godown
Exercise No: %C
?ournalize the following Transaction in the Boo2 of -eethu Stores
C"FBF%CC@ Started Business with cash -s. %C,CC,CCC
C%FBF%CC@ Stationery Items -s. =,CCC
C6FBF%CC@ (ash 4urchases

Godown
(tem Rate
-Rs..
#ettai
-,g.
Town
-,g.
I.-. %C "A "=CC %CCC
4onni %C "CCC "6CC
Basm
ati
%% "CCC "CCC
I.-. A "@ %CCC =CC
=.B.%CC@ 4urchase from Samir Stores DInvoice 8o. 77/

Godown
(tem Rate-
Rs..
7unction
-,g.
#alay
-,g.
Blac2
3ram
6= "CCC "CCC
3reen
3ram
%= %=CC "7CC
Hheat "A "ACC "=CC
A.B.%CC@ (redit Sales
'a.man Traders DInvoice 8o. "/
Godown
(tem Rate-
Rs..
7unction
-,g.
#alay
-,g.
Blac2
3ram
6A.=C =CC 7=C
3reen
3ram
%>.=C %CCC @=C
Hheat %C.%= "CCC %=C
"C.B.%CC@4urchase from Palyan Store DInvoice 8o. =7/

Godown
(tem Rate-
Rs..
7unction
-lit.
#alay
-lit.
::& (oconut )il %% "CCC "CCC
Idahaya 3ingili
oil
"6 %=CC "7CC
Sunflower
-efined )il
"A "ACC "=CC
"%.B.%CC@ -eceived che+ue from 'a.man Traders 1rom %,CC,CCC
%C.B.%CC@ 4ayment made !y (he+ue
Samir Stores -s. =C,CCC
Palyan Store -s. %=,CCC
%=.B.%CC@ 4ayments made !y cash
4aid to petty (ash -s. %,CCC
1urniture -s. %=,CCC
Salaries -s. 6C,CCC
Hages -s. %=,CCC
(arriage Inwards -s. 7,CCC
-ent -s. "C,CCC
$lectricity (harges -s. =,76C
Telephone (harges -s. A,67C
%@.B.%CC@ 4ayment made !y 4etty (ash
(onveyance -s. %=C
4ostages -s. 6CC
Stationeries -s. %=C
Staff Helfare -s. %CC
:ehicle #aintenance -s. %=C
3eneral $.penses -s. "=C
6C.B.%CC@ &epreciate "CQ on 1urniture
Integrate Accounts with Inventory
1""< 1eatures FG1%<
Inventory
)ffect on #alance Sheet and *rofit + !oss
Account
The option in 1""<1eatures has a significant effect on the Balance
Sheet and 4rofit E 'oss Account. If set to 9es, it !rings the
stoc2,inventory !alance figures from the inventory records and provides
a drill down to the Stoc2 registers from the Balance Sheet.
If it is set to 8o, it ignores the inventory !oo2s figures and pic2s up
manually entered closing stoc2 !alances.
Stoc2 records often contain compensating errors caused !y wrong
allocation to items and the li2e. The feature ena!les finalisation of
financial !oo2s without waiting for reconciliation of stoc2s that may
ta2e time.
Allow Rero value
entries
1""< 1eatures FG1%<
Inventory
To use zero values in vouchers, activate the feature in
1""<(ompany
1eatures.
There is usually no point in having a voucher that is totally without
value. 0owever, in some situations, zero values are re+uired, for
e.ample,
BatchF wise &etails
BatchFwise details are given for maintaining !atch information
pertaining to stoc2 items. The various options are activating !atchFwise
details, setting manufacturing date and e.piry date. #anufacturing date and
e.piry date options can !e used only in accordance with !atchFwise
details as per re+uirements. This is useful for !usiness that deal in goods that
have e.piry dates li2e medicines, food and other edi!les. &uring voucher
entry, &ate of manufacture of the product defaults to the date of the :oucher.
Hhich can !e changed !ut not to a date later than the voucher date. $.piry date
cannot !e a date prior to the voucher date.
Tally wal2 F through to activate !atchFwise
details<
". -eturn to 3ateway of
Tally.
%. Activate the option #aintain Batch wise details in 1""< 1eatures
FG (ompany features FG Inventory 1eatures
6. Activate Set $.piry &ates for
Batches.
7. Accept the
screen.
=. 1rom 3ateway of Tally go to Inventory
Info
>. (reate a new stoc2 item F Tomoto
Petchup
@. (reate it under Stoc2 3roup F Petchup Dcreate the group if it does
not e.ist.
A. 4ut it under Stoc2 (ategory
\Sauces*.
B. Activate the option #aintain in Batches in that
item.
"C. Trac2 date of #anufacture F
yes
"". 5se $.piry &atesF 9es
"%. Alter Standard -ates F
8o
"6. -ate of &uty F
=
"7. Accept defaults for other
options.
"=. (reate a ledgerAnantha &epartmental Store under sundry (reditors
">. 3et !ac2 to 3ateway of Tally menu an go to voucher entry.
"@. 4ress 1B< 4urchase.
"A. (reate the following entries.
"B. &ate< C%FC>F%CCA. 4urchase "=C nos form Anantha &epartmental
Stores "%C.CC. 4urchase Invoice num!er A&,CC"
%C. (redit period %C days.
%". After we enter item an item allocation screen will appear,
here enter !atch no as A&,CC" having manufacturing date as
C%,C>,%CCA and e.piry date as ",%,%CCB.
%%. Accept the voucher.
E+ercise$ 2A
$nter the following entries for Batches and $.piry dates<
%CC@ #ay C" Pa!ir invested -s. =,CC,CCC
C% 4aid into 0&1( !an2 -s. 7=,CCC
C= 4urchase (omputer -s. ">,CCC
C> 4urchase :iva "CC nos for -s. %>C YBatch no.:%C" $.piry date
%,"%,%CC@Z -aJia E (o
A 4urchase -in "CC gm =CC nos for -s. "B.=C YBatch no. -6C",$.piry
date "F"CF%CC@Z#ohana E (o
B Hithdraw (ash from Ban2 -s. =,CCC
"C 4urchase #altova %=C nos for %%C YBatch no. #%C%,$.piry
date "F@F%CC@Z
"" 4urchase 4ower Soap 6CC nos for "% =C YBatch no. 46C%, $.piry
date "FAF%CC@Z
"% 4aid Salary -s. "6,CCC
"6 4urchase 'a Soap "6C nos for -s."".=C YBatch no. '6C6, $.piry
date BF"CF%CC@Z #ohana E (o
"7 Sales :iva %= nos for -s. %@= to Pavitha Store
"= Sales -in "CC gm %6C nos for -s. %" to Pavitha Store
%= 4urchase 'iril %CC nos for -s.%%.=C YBatch no. 'i6C%, $.piry
date ""F"CF%CC@Z
%A Sales 'a Soap > nos for -s. "% and 'iril == nos for %7 to #alar
Traders
%CC@ ?une C% 4urchase #altova %=C nos for %%C YBatch no. #%C%, $.piry
date "F@F%CC@Z from -aJiya E (o
"> 4urchase 4ower Soap 6CC nos for "% =C YBatch no. 46C%, $.piry
date "FAF%CC@Z from #ohana E (o
"@ 4aid -ent -s. 6,CCC
"A 4aid Telephone Bill -s. 6,7CC
"B 4aid Salary -s. "6,CCC
%C 4urchase 'a Soap "CC nos for -s."".=C YBatch no. '6C6, $.piry
date BF"CF%CC@Z from #ohana E (o
%" Sales #altova %= nos for -s. %6C to ?erry Store
%% Sales 4ower Soap %6C nos for -s. "6 to ?erry Store
%B 4aid $lectricity Bill -s. %,6CC
6C Hithdraw (ash for 4ersonal use -s. ",6CC
%CC@ Sep C7 4urchase Boost =C nos for %6C Y Batch 8o. B%C6, $.piry date %=F
BF%CCBZ "" 4aid Salary "6,CCC
"6 4aid -ent -s. 6,CCC
%6 Sales 'a Soap >C nos for "6 YBatch no. '6C6, $.piry date BF"CF
%CC@Z
%7 4urchase 'u. 6CC nos for -s. "= YBatch 8o. '.6C7, $.piry date ""F
""F%CC@Z from #ohanaE(o
%= Sales 'u. "=C nos for -s.">.=C to 8irupama Store
5se &ifferent Actual E Billed Muantity
This option ena!les you to specify +uantities, that are different
from that delivered, when invoicing, and record the fact. It is possi!le
that you have delivered goods !ut some of them are in dispute and
your customer wishes to !e invoiced for only the +uantity that he
agrees to. 0e may consider the rest later and would then li2e to !e
invoiced. )n the other hand, the rest is so !ad that it is useless even for
you to ta2e !ac2. 0ence, you can record the fact when raising the
invoice without altering the delivery note or passing a reJection
entry. Select this option if you have many such occasions.
8ormally, the Billed and Acutal +uantity is same when we set the
option 5se different Actual and Billed Mty to 8o in 1""< 1eatures.
0owever the +uantity deliverd, received may !e different from
+uantity !illed u! same cases as<
i. 1ree items are received or given.D 1ree E sold items are same.
1or e.ample, " !o. of Surf $.cel is given free on every = !o. of
surf e.cel.
iii. 1ree items are received or given. D1ree E sold items are
different/.
1or e.ample, one piece of "CCgm 4romise tooth pase given free
on every = !o. Surf $.cel.
iv. The !illing +uantity is rounded off
v. Invoicing in 4art.
If the Billing +uantity is different from actual +uantity, to enter
!oth +uantities in transaction, we need to activate option 5se
different Acutal
E !illed +ty under 1""< 1eatures FG 1%< Inventory . (ons+uently
during transaction entry, we wil !e prompted to enter % +uantities,
i.e., Actual and !illed. Actual Muantity will update stoc2 and Billed
Muantity will !e used to compute transaction value.
$.ercise< %"
%C."C.%CC> 4urchased the following items from )mega InfoTech in an sale offer
made
!y them. The offer was that on every purchase of = items one item is
given free. 0e purchased the following items and agreed to ma2e
payment with in "C days.
(tems #urchased 2ree of Total Rate
Buantity cost Buantity
4rocessors %= = 6C =%CC
0ard &is2s %C 7 %7 6%CC
4rinters %C 7 %7 ="CC
#onitor %C 7 %7 "C=CC
54S %C 7 %7 "@CC
%=."C.%CC> :imal introduced the sale offer and sold the
following items on credit
4aramount Services and 4eripherals<
(tems #urchased 2ree of Total Rate
Buantity "ost Buantity
4rocessors %= = 6C >ACC
0ard &is2s %C 7 %7 6=CC
%A."C.%CC> I Tech 4eripherals
(tems #urchased 2ree of Total Rate
Buantity "ost Buantity
4rinters "C 7 "7 >CCC
#onitor "% 7 "> ""CCC
54S %C 7 %7 %6CC
)rder Hith Trac2ing 8um!er
In Tally, order processing is linked to inventories. You can track the order position of a stock item, know
what goods that were ordered have arrived, whether you have fulfilled the orders on time and what is the
delay, if any.
In this module, you learn how to record purchase orders, and to call the orders while entering a
purchase invoice and likewise with sales orders and sales invoices.
You will also learn how to display outstanding orders position and the effect of orders on stocks.
Remember, orders do not affect financial records nor do they update inventories.
Activate Sales and Purchase Order Processing in F11: Company Features.
Activate Tracking numbers in F11: ompany !eatures, if it is not already activated. In this unit,
you will use "ot Applicable for Tracking "umbers. #e will take up entries using Tracking
numbers in the ne$t unit.
reate a stock item %ricks with unit of measure &cs. This is tradeable item as well as to be used
for construction. 'tock will be maintained. (ence, Treat all &urchases as onsumed should be
set to "o.
reate a 'upplier ) *niversal %ricks with bill)wise activated and no interest calculation.
Purchase Order Processing
&urchase +rder details will also depend on configuration settings. (ence, have a look at the
configuration and voucher types.
Activate Accounting allocations in +rder ,ntry.
Enter a Purchase Order
-. Return to .ateway of Tally.
/. 'elect Voucher ,ntry)0!12 &urchase )0'elect &urchase +rder3Alt456
7. Voucher date2 -89-/9:;. &arty<s A9c "ame2 *niversal %ricks
5. +rder "o2 The voucher number will be your &urchase +rder number. This particular +rder
"o. field is an additional field to record order number if different from the voucher number.
8. "ame of the item2 %ricks. 3+nce the name is given the Item Allocations subscreen pops)up
that needs to be filled in.6
=. >ue on2 /89-/9:; ) The due date for delivery of the item. This will enable monitoring of
outstanding deliveries. The order can be split for delivery on different dates.
?. @ocation2 #arehouse. 3in case multiple location feature is active, this field is reAuired to be
given, else it does not appear.6
;. Buantity, Rate and Amount ) 8::: &cs C 7 per &c. The amount is calculated but is modifiable
to enable rounding off.
Item allocation su!screen:
"e$t Item2 'ince no other item is reAuired, press D,nterE on the blank field to take the cursor to
the ta$9e$pense field.
,$pense9Ta$2 +nce the item details have been entered, you might specify ta$ to be charged
and other e$penses like freight, if any. The ta$ or e$pense has to e$ist as a ledger account or
it may be created using DaltE4DE. 'elect !reight C7F on the item values.
"arration2 +ptional.
Alter a Purchase Order
You can alter a &urchase +rder by displaying it from a variety of places but is easier through the
&urchase +rders %ook or the >ay %ook.
.ateway of Tally )0>isplay )0 >ay %ook or .ateway of Tally, Inventory %ooks, &urchase +rder %ook.
Sales Order Processing :!!
Create Sales Orders
Sales order entry is exactly like Purchase Orders.
'ales +rder details will also depend on configuration settings. (ence, have a look at the configuration
and voucher types.
-. .ateway of Tally)0Voucher ,ntry )0!;2'ales )0'elect 'ales +rder 3Alt486
/. Voucher date2 -=9-/9:;. &arty<s A9c "ame2 #imbledon &roperties
7. +rder "o2 The voucher number will be your internal serial number. This particular +rder "o.
field is for the customer<s order number which is different from the voucher number. ,nter
#&98.
5. "ame of the item2 %ricks.
8. >ue on2 /=9-/9:;.The due date for delivery of the item. This will enable monitoring of
outstanding deliveries. The order can be split for delivery on different dates.
=. @ocation2 #arehouse.
?. Buantity, Rate and Amount ) 5::: &cs C 8 per &c.
;. "e$t Item2 'ince no other item is reAuired, press D,nterE on the blank field to take the cursor to
the ta$9e$pense field.
1. ,$pense9Ta$2 +nce the item details have been entered, you might specify ta$ to be charged
and other e$penses like freight, if any. The ta$ or e$pense has to e$ist as a ledger account or it
may be created using DaltE4DE. 'elect or create Ta$ C -?.8F to be charged on the item
values.
Alter a Sales Order
You can alter a 'ales +rder by displaying it from a variety of places but is easier through the 'ales
+rders %ook or the >ay %ook.
.ateway of Tally)0>isplay)0 >ay %ook or >isplay, Inventory %ooks, 'ales +rder %ook.
"ie# Order position
'tock summary is perhaps the best place to view the order position.
.ateway of Tally )0 'tock 'ummary )0>etailed D!-E
urrently, all you see is the closing balances or stock in hand as on the last day of the period. (owever,
you do not know how much stock is on order both inward and outward. if you knew that, you could take
plan your stocks better and not lose out on orders.
-. &ress the +rders button DaltE4D!?E
/. 'elect 'ales +rders +utstanding
7. Type "o for >ue orders only.
You are now in 'ales +rder +utstanding screen showing +n +rder items. +f course, you have
only %ricks on order
5. 'elect the line %ricks and press ,nter.
The outstanding 'ales order for %ricks is detailed.
8. 'elect !-/2onfiguration.
=. 'elect Yes to all options.
You now see your +rder Analysis with 'ales and &urchase +rders outstanding position for the stock
item %ricks.
-. Return to the 'tock 'ummary screen
/. 'elect >etailed
7. &ress DaltE4DnE Auto)olumn %utton.
5. 'elect +rders G 'tock >etails.
8. Remove Rate and item from display by configuring it using !-/.
This will enable all columns to fit in one screen. Take note of the change in figures.
Can you accept an order $or %&&& ric's (
=. You may further drill down into each column to view greater detail. In the 'tock 'ummary
screen, you can even bring up a new column using DaltE4DE the "ew olumn button and get
more options for detail. ,$periment with Types of Values to get familiar with them. They are
powerful and give great business information.
Ad)ust Orders
You adHust orders at the time of raising delivery notes and invoices.
-. 'elect Voucher ,ntry
/. 'elect &urchase )0 &urchase
7. ,nter a &urchase invoice no *%9=
5. Voucher date2 /89-/9:;. &arty<s A9c "ame2 *niversal %ricks
8. "ame of the item2 %ricks. 3+nce the name is given the Item Allocations subscreen pops)up that
needs to be filled in.6
=. Tracking number 2 "ot Applicable as goods are accompanying the bill.
?. +rder "o2 'elect the order number.
;. All fields are filled up.
1. "ow enter as you would normally in a &urchase voucher. Buantity, Rate and Amount ) 8:::
&cs C 7 per &c.
-:. ,$pense9Ta$2 !reight C7F on the item values
-eorder 'evel
-eorder 'evel signifies the +uantity of a Stoc2 Item in hand, after
reaching which you must place orders for your supplies. The
importance of -eorder 'evel arises from the desire to have sufficient
stoc2s to service customer orders and, at the same time, not to
unnecessarily accumulate stoc2.
Therefore, the points to !e considered while deciding the reorder
levels are as follows.
o The leadFtime for suppliers to deliver the stoc2.
o The delivery time specified !y the customer.
o The stoc2FinFhand to satisfy orders in the meantime.
In simple mode, Tally accepts the +uantities that you specify. In
advanced mode, it considers the past consumption patterns to suggest
reorder levels. 9ou can however, choose to define your own reorder
levels. 9ou may also specify the minimum +uantity of the item to !e
ordered, either in simple or advanced mode.
The purpose of specifying reorder levels is to o!tain a report that
indicates the +uantity of a Stoc2 Item that you must order.
Specifying -eorder 'evels
3o to Gateway of Tally > Inventory Info > !eorder "evels
Select a group of Stoc2 Items from the 0ist of Groups, to specify -eorder 'evels for the
Stoc2 Items in the Specify Reorder 0e&els screen.
1or each item in stoc2, you can define a -eorder 'evel and the #inimum )rder Muantity. If
you clic2 Simple Reorder !utton, the consumption alternatives will not !e availa!le and
hence you have to input the +uantities.
)ote$ The option -eorder 'evels is displayed in the (n&entory (nfo. menu only if Allow
#urchase 3rder #rocessing is ena!led in 211$ 2eatures.
The -eorder level screen appears as follows<
The options that you have while defining -eorder 'evel and #inimum )rder Muantity for
individual stoc2 items are as follows.
Reorder 0e&el6Buantity
$nter the le&el6Cuantity in this field.
Ad&ance #arameter for Reorder 0e&el -"onsumption for the 0ast.
This field lets Tally calculate the reorder level,order +uantity !ased on the total
consumption in the past for a chosen period.
#eriod
The choices for periods are< &ays, Hee2s, #onths and 9ears. 8ote that it is not the average
consumption for the period !ut the total consumption. $nter zero DC/, if you do not want
Tally to calculate the reorder level !ased on the consumption of the item in the past.
"riteria
(hoose whether you want the higher,lower of the two, i.e., input,calculated level,+uantity.
Rounding Method
Specify whether the calculated level,+uantity must !e rounded and also the method of
rounding.
Minimum order Cuantity
9ou can specify the minimum order +uantity re+uired.
Trac2ing 8um!er
9ou were !uying and selling goods or services where the stoc2 would !e affected
when ma2ing the purchase or sales entry. #any !usinesses deliver stoc2 with a
delivery note or a challan. The !ill is raised later. The !ill has to !e lin2ed or
trac2ed with the goods already delivered. In Tally, trac2ing num!ers do the Jo!.
Trac2ing num!ers allow 3oods -eceipt and 3oods &elivery 8otes for goods not
accompanied !y an invoice to !e lin2ed with the invoice that is raised later. )f
course, Tally permits the opposite too. A !ill can !e raised first and the goods
delivered. Again, trac2ing num!ers do the tric2.
Tally wal2Fthrough for using trac2ing num!ers
". 3o to voucher entry.
, Select 4urchase, -eceipt 8ote.
6. $nter the following transaction<
7. )n "%,"%,BA F -ef 3-8,5B F "CCC 4cs of Bric2s received from 5niversal
Bric2s ]% per 4c.
=. 1or Bric2s, select Trac2ing 8um!er 3-8,5B and give item details.
>. 4ress $nter on the !lan2 Trac2ing num!er to return to the main voucher.
@. Accept the voucher and -eturn to 3ateway of Tally
A. Select N&isplayN, NStatements of InventoryN, and then N4urchase Bills 4endingN.
4urchase Bills 4ending screen<
". Tally trac2s down the 3oods received !ut whose !ills have not !een
received.
%. :iew the 4rofit E 'oss Account and the 4urchase Accounts.
6. Tally provides the purchase so that the profits are correctly arrived at.
7. :iew the Balance Sheet, Sundry (reditors. 0as Tally provided for the
lia!ilityO
=.
Trac2ing num!ers F trac2 !ills with goods delivered
8ow go !ac2 to :oucher $ntry
". )n "=,"%,CA, you receive the purchase !ill no 5B,"= from 5niversal Bric2s
for their &elivery 8ote no 3-8,5B for "CCC 4cs of Bric2s ] % per 4c. 9ou get
6C days credit.
%. Select 4urchase, 4urchase
-ef< 5B,"=
(r 5niversal Bric2s %CCC
Billwise 5B,"= 6C days %CCC
&r 4roJect 4urchase %CCC
6. Inventory Allocation
Trac2ing 8um!er< Select 3-8,5B. 8ote 5B,"= is also listed there. &o not
select this.
Accept the other information that is filled up. 4ress $nter on the !lan2
Trac2ing num!er to return to the main voucher.

7. (ost (entre is activated for 4roJect 4urchase. Select 4roJects and
Assignments (ategory and Buildings (ost centre.
=. Accept the voucher.
>. 8ow go !ac2 to 4urchase Bills 4ending. Is there anything pendingO
Exercise No: %%
a.
".7.%CCA -eceived (apital By (ash -s.=,CC,CCC
".7.%CCA (ash &eposited in SBI -s.%,CC,CCC
=.7.%CCA 4urchase )rder #ade to -ahul Te.tiles Y4.).8C."C"Z
=.7.%CCB &ue "%.7
(otton Sarees =C nos at -s.6CC
(hudithar =C nos at -s.7CC
@.7.%CCA 4urchase )rder #ade to Piran Te.tiles Y4.).8C."C%Z
&ue "=.7
(otton Sarees @= nos at -s.6CC
(hudithar >C nos at -s.7CC
"C.7.%CCA 4urchase )rder #ade to Sona Te.tiles Y4.).8C."C6Z
&ue %=.7
TFShirts "CC nos at -s."CC
?eans "CC nos at -s."CCC
"C.7.%CCA 4urchase invoice raised for the )rder "C% YBill 8o."%67Z
"%.7.%CCA -eceived #aterials 1or the 4urchase )rder 1rom Sona Te.tiles
Y4.).8C."C6Z Y-8.8) =>@Z
"=F7F%CCA -eturned TFShirts "C nos, ?eans = nos Y-8.8).=>@Z
%CF7F%CCA 4urchase invoice raised for Sona Te.tiles YBill 8o.=>@AZ
"AF7F%CCA Sales )rder -eceived 1rom ArJun Stores YS).8)."""Z
&ue &ate %=,7
(otton Sarees >C nos =CC
(hudithar 7C nos @=C
%%.7.%CCA Sales )rder -eceived 1rom Brin2ley 3arments
YS).8).""AZ &ue &ate 6C,7
TFShirts >C nos "=C
?eans >C nos "6CC
%@.7.%CCA Sales Invoice -aised 1or Sales )rder 8) """
YArJun StoresZ K T83ST 7Q
%B.7.%CCA &elivery 8ote 3iven 1or Brin2ley 3arments 1or Sales )rder 8o.""A
Y&8.8).==>Z
"F=F%CCA -eturns 1rom Brin2ley 3arments
TFShirts "C nos
?eans = nos
=.=.%CCA Sales Invoice -aised 1or The &elivery 8ote ==>
!.
Piran $lectricals Started Business of $lectrical items
".A.%CC% -eceived (ash 1or (apital -s.A,CC,CCC,F
".A.%CC% &eposited in 5() Ban2 -s.6,CC,CCC,F
@.A.%CC% 4urchase )rder #ade to 8ithya 1an 0ouse Y8)."%7Z Y&ue &ate "7,AZ
(eiling 1an =CC nos ] -s."=CC
Ta!le 1an =CC nos ] -s."%CC
"C.A.%CC% 4urchase )rder #ade to Athi $lectricals Y8)."""Z Y&ue &ate "A,AZ
(eiling 1an "=C nos ] -s."=CC
Ta!le 1an "=C nos ] -s."%CC
"7.A.%CC% 4urchase Invoice -aised 1or )rder 8)."%7
"B.A.%CC% -eceived #aterials 1or the 4urchase )rder 8).""" through -eceipt
8ote 8)."%
%C.A.%CC% -eturned "C nos of the (eiling 1an E = nos of Ta!le 1an 1or the )rder
8)."%7
%%.A.%CC% Sales )rder -eceived 1rom A2shai Traders Y8).%,&ue &ate ",BZ
(eiling 1an 6CC nos ] -s.%CCC
Ta!le 1an 6CC nos ] -s."=CC
"FBF%CC% -aised Sales Invoice 1or the )rder 8).% with Sales Ta. ] 7Q
%.B.%CC% Sales )rder -eceived 1rom ABI Traders Y6.&ue &ate "C,BZ
(eiling 1an %CC nos
Ta!le 1an %CC nos
"CFBF%CC% &elivery 8ote -aised 1or the )rder 8).6
"%.B.%CC% -eturned = nos of (eiling 1an.Ta!le 1an
"7FBF%CC% Sales Invoice raised 1or the )rder 8).6
Trac2 Additional (ost )f 4urchase
8ormally, in case of purchase, ta.es etc, are also considered to !e part
of purchase and we may wish to de!it purchase account only for the
entire cost. Hith this feature, without de!iting separate account, we may
get !rea2up of !asic price as well as additional cost incurred, resulting
into the $ffective -ate on various inventory reports.
1or $.ample,
Athi E (o purchased the following components
(45 =Cnos "=CCC
Pey!oard =Cnos @CCC
At the time of purchase of components, they spent additional cost such
as
(arriage "=CCC
4ac2ing charges %CCC
1 "" 1eatures Activate the options
Trac2 Additional (ost of 4urchase F 9es
(reate ledger 5nder Sundry (reditor
Athi E (o
(reate an 5nit of #easure 8os as Shown !elow<
(reate a stoc2 item as (45
4ass purchase $ntry
After entering the purchase go to &isplay LInventory Boo2s L
#ovement Analysis L Stoc2 Item Analysis L Select the Item
$.ercise< %6
a.
)n ",",%CC= -eceived capital !y cash -s. =, CC,CCC
)n %,",%CC= &eposited in I(I(I Ban2 -s. %, CC,CCC
)n =,",%CC= 4urchased from 3T' =CC 8os. of 'u. Soaps ] "=,8o
Sales Ta. 7Q
4ac2ing -s. =CC
(arriage -s. @CC
Y(reate !ill no. (redit days 6CZ
)n A,",%CC= 4urchased from 3T' =CC 8os. of 4ower Soaps ] "C,8o
Sales Ta. 7Q
4ac2ing -s. @CC
(arriage -s. "CCC
Y(reate !ill no. (redit days 6CZ
)n %C,",%CC= 4urchased from 3T' %CC 8os. of Arial 4owder ] =C,8o
Sales Ta. 7Q
4ac2ing -s. @=C
(arriage -s. "%CC
Y(reate !ill no. (redit days 6CZ
)n 6",",%CC= 4aid to 3T' for all the products. &iscount received = Q
!.
-ahuvar E Sons purchased the following components
(45 "CC 8os "=CCC
Pey!oard "CC 8os @CCC
#ouse "CC 8os "=CC
I( (hips "=C 8os "CCC
At the time of 4urchase of components they spent additional cost such as
(arriage "=,CCC
Ta. 7Q
4ac2ing (harges %C,CCC
'a!our (harges =,CCC
Bill of #aterials
A /ill of Materials contains a list of items that ma,e up another item. (n
other wordsD it is a list of constituent items for a product.
Ena!le /ill of Materials 2acility
To activate or ena!le Bill of #aterials go to 3ateway of Tally, (lic2 on 1"%<
(onfigure and select Accounts,inventory Info from the menu. 8ow say yes to
WAllow component list details DBill of #aterials/OW
A Bill of #aterial should !e availa!le while manufacturing an item. 0ence, first
ena!le manufacturing entries. This is done through a stoc2 Journal.
"reate a new manufacturing Eournal
"reate a new &oucher type called Manufacturing 7ournal under Stoc,
7ournal.
". To create a new #anufacturing ?ournal go to 3ateway of Tally. Select Accts
Info, :oucher Type and then (reate.
%. 3ive #fg.?ournal D#anufacturing ?ournal/ as the name and under N :oucher
typesN select Stoc2 ?ournal.
6. 1ollow the normal :oucher type creation as e.plained earlier for the rest.
7. Select 9es for W5se as #anufacturing ?ournalW and accept the screen.
"reate a /ill of Material
9ou can create a Bill of #aterial DBo#/ for any stoc2 item. Typically, you would li2e
to create a Bo# only for those items that are !eing manufactured. 9ou will specify
a Bo# at the time of creating a stoc2 item or altering its master.
Tally wal,:through to specify its /ill of Materials
7" "omputer Supplies decides to get into the !usiness of Tele&isions.
They want to assem!le their own tele&isions and sell them.
ThereforeD
". (reate a stoc2 item Television. (reate it under a new stoc2 group 0ome
$lectronics.
%. 5nit of measure F nos.
6. Say 9es to WSet (omponents DBo#/OW
7. )nce this is made to yes it ta2es you to a screen where you can enter "
each for 5nit of #anufacture and items :&5, 4icture tu!e, I( (hips, Sound (ard
and aerial which are re+uired for the assem!ly of one Television. These items
do not e.ist. (reate them and group them under a stoc2 group Television
4arts. 5nit of measure F nos.
=. 3ive Standard (ost for each of the items as follows<F
>. :&5 F %CCC, 4icture Tu!e F 6@=C, Sound (ard F =CC, I( (hips F =CCC, Aerial F
6CC.
@. 9ou propose to store them )nFSite. Accept the screen. Accept all other
defaults. 8one of the items will have any opening stoc2 !alance.
The purpose of creating a !ill of material is to ena!le consumption of the materials
in the ratio specified when the product is manufactured. Tally uses a
#anufacturing ?ournal to enter goods manufactured with !ill of materials.
1irst you should purchase the components re+uired to produce the television.
#a2e a purchase voucher entry as follows<
3n 21 ecem!er A9D !ought 1A pcs each of the following at the standard
cost mentioned against them$
". :&5 F %CCC, 4icture Tu!e F 6@=C, Sound (ard F =CC, I( (hips F =CCC, Aerial F
6CC.
4aid che+ue from (urrent Account immediately. Stored )nFSite. Account F
4urchases. Ignore Ta..
Manufacturing 7ournal Entry
2rom the Gateway of Tally Menu select 1oucher EntryD As you ha&e
created new &oucher type Mfg. 7ournalD a pop:up menu will show !oth
the default Stoc, Eournal and the manufacturing Eournal.
". Select manufacturing Journal.
%. 5nder the 8ame of 4roduct to !e manufactured, type Television.
6. #anufacture it in the )nFSite.
7. Muantity to !e manufactured F =.
=. 5nder (omponent Dconsumption/ the component list for the television to !e
manufactured under proportionate +uantity of each component is pic2ed up
automatically. The default location as specified in the Bo# is also given for
each component. The standard cost is pic2ed up for each item. 0owever the
entire component list can !e altered.
>. It will ta2e you to the screen giving the details of additional cost. 5nder
Additional (ost (omponents you may specify the additional cost incurred for
producing the item.
Additional cost of Hages F 6CCC and 4ower F %CCC have !een incurred. Add
them in. If ledger accounts for these e.penses do not e.ist, create them under
&irect $.penses.
@. 8ote that the additional costs entered for the Iedgers, do not reflect in the
relevant ledger with the amount !ut only add to, the cost of the item.
$.ercise < %7
a.
Stoc2 Item :(& 4layer
(omponents Aerial -s.%, %=C
I( (hips -s.", %CC
Spea2er D% nos/ -s.", =CC
)n "BFCAF%CC@
#anufactured %=C 8os of :(& 4layer
Additional cost
4ower -s. %C,CCC
Hages -s. "=,CCC
!.
#oorthy E(o purchased the following components for used Switch
Boards<
". "%^A Hooden Board " 8o. "A.CC,no
%. Switches 7 8os. "=.CC,no
6. %pin plug point " 8o %C.CC,no
7. 6 pin plug point % 8os %=.CC,no
)n "C,=,%CC7 They manufactured "CC units of switch Boards
Additional costs incurred are as follows<
Hages "=CCC
4ower "CCCC
At the time of 4urchase of components, they spent additional cost such
as
(arriage =CCC
Ta. 7Q
c.
#anu E(o purchased the following components for used (omputer<
". #other Board " 8o. >,BCC
%. S#4S " 8o. 7,@AC
6. 0ard &is2 " 8o 7,BCC
7. -A# " 8o. %,=CC
=. 1loppy &rive " 8o. ==C
>. (& &rive " 8o. ",%AC
)n "C,=,%CC7 They manufactured "C 8um!ers of (omputer
Additional costs incurred are as follows<
Hages 6, CCC
4ower %, CCC
4rice 'ist
This feature is pro&ided in Tally to allow different pricing
structure for the same item depending on their Cuantity of
purchase or sale.
Acti&ate and create #rice 0ist Types
". 4ress 1""< 1eatures. At the !ottom the last option is Set,#odify
)ther (ompany 1eatures. Type 9es.
%. Activate W5se #ultiple price levels for invoicingW. Tally ta2es you to
W(ompany 4rice 'evelsW screen.
6. Type the different price levels F -etail Sales, $.port Sales and Hhole
Sale and accept the screen.
7. Accept all the features and return to 3ateway of Tally.
"reate a #rice 0ist
". The following are the steps to create a price list. Simply go through
them !ut create the price list in the e.ercise.
%. 1rom the 3ateway of Tally select Inventory Info and (lic2 on 4rice
'ist.
6. Select the re+uired stoc2 item group from the 'ist of 3roups or you
can even select All Items if you re+uire to set the price list for all the
Stoc2 Items you have created.
7. 8ow the 4rice 'ist screen is displayed.
=. Select the price level from the pop F up for e.g. -etail Sales and
enter the date from which your price list is applica!le.
>. $nter the Muantity, -ate and the &iscount Q for the respective
items. 9ou will find the Standard (ost 4rice of the items displayed
on the e.treme right of the screen
@. #ore than one 4rice level can !e entered for a single Stoc2 Item.
)ote$ These prices will automatically appear while ma,ing
an (n&oice once the price le&el is specified.
Hhen we change the price list with a new Napplica!le fromN date, the
previous prices given for the item will !e shown in the 0istorical &etails
column.
8ow the customer ledger accounts have to !e altered to put them in the
relevant price level.
a)
etail Sales
BronMe %
7ess than 10 Nos. Rs.($
10 Nos. to &$ Nos. Rs.($ $I
@rom &$ on3ards Rs.($ 10I
Gold %
7ess than 10 Nos. Rs.%0
10 Nos. to &$ Rs.%0 $I
@rom &$ on3ards Rs.%0 7.$I
Sil4er %
7ess then 10 Nos. Rs.100
10 Nos. to Nos. Rs.100 $I
@rom &$ on3ards Rs.100 %I
*hole Sales %rice
BronMe %
7ess than 10 Nos. Rs.$$
10 Nos. to Nos. Rs.$$ $I
@rom &$ on3ards Rs.$$ 10I
Gold %
7ess than 10 Nos. Rs.7$
10 Nos. to &$ Nos. Rs.7$ $I
@rom &$ on3ards Rs.7$ 10I
Sil4er %
7ess than 10 Nos. Rs.)$
10 Nos. to &$ Nos. Rs.)$ $I
@rom &$ on3ards Rs.)$ %I
En 0&+0(+&007 !ur-hased $0 Nos o8 Gold %, &$ Nos o8 Sil4er %, && Nos o8 BronMe %.
En 00+0(+&007 Sold to 'irumathi ; #o &$ Nos o8 Gold %, 1$ Nos o8 Sil4er %, 10 Nos o8
BronMe %. =Retail Sales>
En 1(+0(+&007 !ur-hased &$ Nos o8 Gold %, &$ Nos o8 Sil4er %, &$ Nos o8 BronMe %
En &$+0(+&007 Sold to 6e/a ; #o $ Nos o8 Gold %, $ Nos o8 Sil4er %, 10 Nos o8
BronMe % =Jhole Sales>
!)
Ex+ort +rice
#otton sari 7ess than $0 Nos. Rs.700
$0 to100 Nos . Rs.700 1I
More then 100 Rs.700 $I
#hudidhar 7ess than &0 Nos. Rs.1000
&0 to$0.Nos. Rs. 1000 &I
More then $0 Rs .1000 $I
etail %rice
#otton Saris 7ess than (0 Nos. Rs.%00
(0 to100 Nos. . Rs.%00 0I
More then 100 Rs.%00 (I
#hudidhar 7ess than &0 Nos. Rs. )00
&0 to $0.Nos. Rs. )00 &I
More then $0 Rs. )00 $I
*hole Sale
#otton Sarees 7ess than $0 Nos. Rs.700 1I
$0 to100 Nos. . Rs.%$0 0I
More then 100 Rs.%00 (I
#hudidhar 7ess than &0 Nos. Rs. )$0
&0 to $0 Nos. Rs. )$0 &I
More then $0 Rs. )$0 $I
En 0&909&000 #ash !ur-hase:
#ottan Sarees Rs. $00 1000 Nos
#hudidhar Rs. 100 %00 Nos
En 1(909&000 Sold to Ram traders #otton Sarees 1$0 Nos., #hudidhar 100 Nos
GJhole salesH
En &0909&000 Sold to Na4een *5porters #otton Sarees 1$0 Nos, #hudi %0 Nos
G*5port pri-eH
En 10909&000 Sold to Amirtha 'e5tiles #otton Sari )0Nos. #hudi 00 Nos
GRetail !ri-eH