GURU GOBIND SINGH

INDRAPRASTHA UNIVERSITY
NEW DELHI

Practical Lab File

Basic Accounting Software (BAS Lab)

BCOM-211
Submitted in partial fulfillment of the requirement
for the award of degree of B.Com.(Hons.)
[Session:2022-23]

SUBMITTED AT:
DELHI SCHOOL OF PROFESSIONAL STUDIES & RESEARCH
ROHINI, NEW DELHI-110085
[AFFILIATED TO GGSIPU-NEW DELHI]

Submitted by: Submitted to:

Khushi Jain Mr. Shubham Gaur
01012588821 Assistant Professor
B. Com (H)-3A DSPSR
 Acknowledgement

I take this opportunity to express my profound gratitude and deep regards to my

guide (Mr. Shubham Gaur) for his exemplary guidance, monitoring and
constant encouragement throughout the course of this project. The blessing, help
and guidance given by (him/ her) time to time shall carry me a long way in the
journey of life on which I am about to embark.

Last but not least, my sincere thanks to my parents and friends for their
wholehearted support and encouragement.

I also hereby declare that the project work entitled “BASIC ACCOUNTING
SOFTWARE (BAS Lab) FILE” under the guidance of “Mr. Shubham Gaur” is
my original work and it has not been submitted earlier in any other university or
institution.

(Khushi Jain )

(BCOM HONS)- (3rd Sem)

 Certificate

This is to certify that the project titled “(BAS LAB FILE)” is an academic work
done by (Ms. Khushi Jain) submitted in the partial Fulfillments of the
requirements for the award of degree of Bachelor of Commerce Hons. at Delhi
School of Professional Studies and Research, New Delhi under my guidance
and direction.

(Ms. Khushi Jain) has given an undertaking that the information presented in
the project has not been submitted earlier.

(Signature of Faculty)

(Mr. Shubham Gaur)

(ASSISTANT PROFESSOR), DSPSR

 CONTENT TABLE

S No Topic Page No
TITLE PAGE
1 1
ACKNOWLEGEMENT
2 2
CERTIFICATE
3 3
BASIS OF ACCOUNTING
4 4
ACCOUNTING
Accounting Principles and Convention
Types of Account
5 Golden Rules of Accounts 5-6
TALLY
Features of tally
Version of tally
Overview of tally erp9
Uses of tally erp9
6 Importance’s of accounting in tally erp9 7-12
CREATING NEW COMPANY IN TALLY
7 12-13
LEDGER
(CREATING LEDGER IN TALLY)
8 14-17
VOUCHER
(CREATING VOUCHER IN TALLY)
9 18-24
TRIAL BALANCE
Importance of trial balance
Creating trial balance in tally
10 25-27
REPORTS IN TALLY ERP9
(CREATING VARIOUS REPORT IN TALLY)
11 27-33
1

RATIO ANALYSIS REPORT IN TALLY ERP9

(CREATING [RAR] IN TALLY)
12 34-37
EXPORT OF TALLY DATA IN EXCEL SHEET
37-39
13
EXPORT AND IMPORT DATA IN TALLY
14 39-41
SHORTCUT KEY IN TALLY ERP9
15 42-45
BIBLOGRAPHY
16 46

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BASIS OF ACCOUNTING

Accounting Principles: “Principles of Accounting are the

general law or rule adopted or proposed as a guide to action, a settled
ground or basis of conduct or practice.”
--The American Institute of Certified Public Accountants
Accounting Principles are the rules of action or conduct adopted by
accountant universally while recording accounting treatment to
various items of assets, liabilities, expenses, income, etc.
These principles are classified into two categories:
1. Accounting Concepts.
2. Accounting Conventions.

1. Accounting Concepts: Accounting Concepts are the basic

assumptions or fundamental a proposition within which accounting
operates. They are generally accepted accounting rules based on
which transactions are recorded and financial statements are prepared.
It is important to follow the accounting concepts because it enables
the user of financial statements to understand them better and in the
same manner.

2.Accounting Conventions: Accounting Conventions are the outcome

of accounting practices or principle being followed by the enterprises
over a period of time. Conventions may undergo a change with time
to bring about improvement in the quality of accounting information.

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FUNDAMENTAL ACCOUNTING ASSUMPTIONS OR CONCEPTS
Fundamental Accounting assumptions or Concepts are the assumptions
which are presumed to have been followed in preparing the annual
accounts. The entities which do not follow any of the fundamental
accounting assumptions are required to disclose which of these
assumptions have not been followed and the reason for not following
them. The Fundamental Accounting Assumptions are:
1. Going Concern Assumption;
2. Consistency Assumption; and
3. Accrual Assumption.

Going Concern Assumption:

According to this assumption, it is assumed that business shall continue for
a Foreseeable Period and there is no intention to close the business or scale
down its operations significantly. This implies that it will not be dissolved
in the immediate future unless there clear evidence of closure. It is because
of this concept that a distinction is made between a capital expenditure,
i.e., expenditure that will give benefit for a long period and revenue
expenditure, i.e., one whose benefit will be consumed or exhausted within
the accounting period. On the basis of this concept, fixed assets are
recorded at their original cost and depreciated in a systematic manner
without reference to their market value.

Consistency Assumption: According to the Consistency Assumptions,

accounting practices once selected and adopted, should be applied
consistently year after year. The concept helps in better understanding of
accounting information and makes it comparable (a qualitative
characteristic of accounting information) with that of previous years.
Consistency eliminates personal bias and help in achieving results that are
comparable. The concept is particularly important when alternative
accounting practices are equally acceptable.

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 Accrual Assumption: According to the Accrual Assumption, a
transaction is recorded in the books of account at the time when it is
entered into and not when the settlement takes place. Thus, revenue is
recognised when it realised, i.e., when sale is complete or service is
rendered; it is immaterial whether cash is received or not. Similarly,
expenses are recognised as expenses in the accounting period in which the
revenue related to it is recognised, whether paid in cash or not. The
concept is particularly important because it recognizes the assets,
liabilities,, income and expenses as earned at the time goods or services
are sold to a customers, i.e., the legal title is passed to the customer , who,
in turn, has an obligation to pay for them. Similarly, expenses is regarded
as incurred. When the goods or services are purchased and an obligation to
pay for them is assumed.

ACCOUNTING PRINCIPLES
BUSINESS ENTITY CONCEPT
The business entity concept (also known as separate entity and economic
entity concept) states that the transactions related to a business must be
recorded separately from those of its owners and any other business. In other
words, while recording transactions in a business, we take into account only
those events that affect that particular business; the events that affect anyone
else other than the business entity are not relevant and are therefore not included
in the accounting records of the business.

MONEY MEASUREMENT CONCEPT

The money measurement concept states that a business should only record an
accounting transaction if it can be expressed in terms of money. This means
that the focus of accounting transactions is on quantitative information, rather
than on qualitative information. Thus, a large number of items are never
reflected in a company's accounting records, which means that they never
appear in its financial statements. Examples of items that cannot be recorded
as accounting transactions because they cannot be expressed in terms of
money include:

• Employee skill level

• Employee working conditions

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ACCOUNTING MEASUREMENT PRINCIPLE

This concept helps in estimating the profit or loss and financial position of a
business for a particular period. If there are different accounting periods then
various problems can arise like in the calculation of profits, comparability of
various incomes & expenses etc. Thus to study the results of a business, the life
of a business is divided into short periods of equal length. Each such period is
known as accounting period. While true profit or loss of a business can only be
determined when the business finally closes down, it would be unwise to wait
for that. Accounting information is needed by all concerned on a regular basis
and should, therefore, be prepared on an ongoing basis. For the purpose of
having a reliable and comparable set of financial statements, the performance
and position of a business is measured at the end of predetermined periods
called accounting periods.

Full Disclosure Principle

The Full Disclosure Principle states that all relevant and necessary information
for the understanding of a financial statement should be included on a set of
financial statements for public company filings. Financial Analysts who
read financial statements need to know what inventory valuation method has
been used, if there have been any significant write-downs, how depreciation is
being calculated, and other critical information for the understanding of the
financial statements. This principle is crucial to ensure that there is limited
information asymmetry between the company’s management and its current
shareholders.

Materiality Principle

Materiality Principle or materiality concept is the accounting principle that

concern about the relevance of information, and the size and nature of
transactions that report in the financial statements.
The main objective of Materiality Principle is to provide guidance for the
accountant to prepare entity financial information. And the most important
thing is to make sure that information using by shareholders and investors are
sufficient enough for them in making the correct decision.
The information, size, and nature of transactions are considered material if
the omission or error of it could potentially lead to the decision of users of
financial information.

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CONSERVATISM PRINCIPLE

The conservatism principle is the general concept of recognizing expenses

and liabilities as soon as possible when there is uncertainty about the
outcome, but to only recognize revenues and assets when they are assured of
being received. Thus, when given a choice between several outcomes where
the probabilities of occurrence are equally likely, you should recognize that
transaction resulting in the lower amount of profit, or at least the deferral of a
profit. Similarly, if a choice of outcomes with similar probabilities of
occurrence will impact the value of an asset, recognize the transaction
resulting in a lower recorded asset valuation. Under the conservatism
principle, if there is uncertainty about incurring a loss, you should tend toward
recording the loss. Conversely, if there is uncertainty about recording a gain,
you should not record the gain.

HISTORICAL COST PRINCIPLE

For the purpose of initial recognition, cost includes all the costs that are
necessary to be incurred to bring the asset in the state of its intended use.
Accounting frameworks around the world favors historical cost concept for
enhance financial information’s reliability and comparability. Reliability is
increased as assets are measured exactly at the value of resources sacrificed by
the entity at the time of acquisition. And as historical cost principle doesn’t
allow for change in asset’s value due to market appreciation or decline, value of
asset stays the same and helps in comparing financial statements over different
periods.

MATCHING CONCEPT

Matching concept of accounting further implies that the revenues are recognized when
they are earned and expenses are accounted for when they are incurred or benefits are
received from these expenses, rather than when the related receipt or payment of cash
takes palace.

The application of matching concept of accounting is not an easy task. The

determination of life or residual value of a non-current asset may cause problem for
calculating correct depreciation charge. Problems may also arise when determining
the provision for doubtful debts. An item appearing in current year’s income statement
should better appear in last year’s income statement or be deferred to the following
year. The accountants should therefore make their best efforts to apply the concept in
its true spirit.

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DUAL ASPECT

The dual aspect concept states that every business transaction requires
recordation in two different accounts. This concept is the basis of double entry
accounting, which is required by all accounting frameworks in order to produce
reliable financial statements.

Types of Accounts:

There are basically three types of Accounts maintained for transactions: ‡

1. Real Accounts ‡ 2. Personal Accounts 3. Nominal Accounts

Golden Rules of Accounting :-

A] Real Accounts:-
1) Debit what comes in.
2) Credit what goes out.

B] Personal Accounts :-
1) Debit the receiver.
2) Credit the giver.

C] Nominal Accounts :-
1) Debit all expenses & Losses.
2)Credit all Incomes & Revenue.

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Modern Approach of Accounting
The Journal is the basis of the accounting system, In Journal we record all day to day
transaction of business. For journalizing all day to day transaction of the business we
have to know about two type of principles/ Rules/ Modern Approach of
Accounting shown in the diagram below.

1. Capital Account
This rule is applicable to all transactions which are related to an owner of the business.
Ex of Capital A/c:- Cash invested by an owner into business, Cash withdraw by an
owner from the business, Etc.

2. Assets Account
This rule is applicable to all assets of the business when an asset is purchased, sold,
depreciated or disposed of.
Ex of assets A/c :- Cash, Land and Building, Plant and Machine, Etc.

3. Liabilities Account
This rule is applicable to all Liabilities of the business when a liability is created,
repaid, etc.
Ex of Liabilities A/c :- Bank Loan. Mortgaged Loan Creditors, Short Etc.

4. Expenses Account
This rule is applicable to all Expenses of the business.
Example of Expenses A/c:- Salary, Wages, Rent, Carriage, Freight, Etc.
5. Income Account
This rule is applicable to all Income of the business.
Example of Expenses Accounts:- Sale of goods, Gain on Sale of Assets, Commission
Received, Rent Received, Etc.
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 Introduction to Tally.ERP 9 Accounting Software
Tally.ERP 9 is one of the most widely used financial software. Tally.ERP 9
reports can help a business owner make informed decisions to increase
efficiency, reduce costs, and organize business operations.
With Tally.ERP 9, accurate, up-to-date business information is available at
your fingertips anytime.
It provides a Comprehensive solution for the accounting and inventory needs of
a business. It provides the capability to generate fully accurate tax returns in a
matter of minutes and is also capable of extracting, interpreting and presenting
financial data.
Tally.ERP 9 is the world’s fastest and most powerful concurrent Multi-lingual
business Accounting and Inventory Management software. Tally.ERP 9,
designed exclusively to meet the needs of small and medium businesses, is a
fully integrated, affordable and highly reliable software. Tally.ERP 9 is easy to
buy, quick to install, and easy to learn and use.

Tally ERP Icon.

Please double Click on Tally ERP9 Icon or select and

press enter on Tally ERP9 Icon to start the Tally ERP
Program

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 Salient Features of Tally.ERP 9

A leading accounting package: The first version of Tally was released in

1988 and, through continuous development, is now recognized as one of the
leading accounting packages across the world, with over a quarter million
customers. Tally’s market share is more than 90%.
No accounting codes: Unlike other computerized accounting packages which
require numeric codes, Tally.ERP 9 pioneered the ‘no accounting codes’
concept. Tally.ERP 9 users have the freedom to allocate meaningful names in
plain English to their data items in the system.
Complete business solution: Tally.ERP 9 provides a comprehensive solution
to the accounting and inventory needs of a business. The package comprises
financial accounting, book-keeping and inventory accounting. It also has
various tools to extract, interpret and present data.
Integrated/Non-integrated accounting and inventory: With Tally.ERP 9,
the user is able to choose to maintain accounts only. If accounting with inventory is
opted for, the user can choose whether it should be integrated or not.

Flexible and easy to use: Tally.ERP 9 is very flexible. It mimics the human
thought process, which means that Tally.ERP 9 can adapt itself to any business
need. Tally.ERP 9 users need not change the way their business is run to adapt
themselves to the package.
Speed: Tally.ERP 9 provides the capability to generate instant and accurate
reports, which assist the management to take timely and correct decisions for
the overall productivity and growth of the company.
Power: Tally.ERP 9 allows the user to maintain multiple companies and with
unlimited levels of classification & grouping capabilities. It also allows drill
down facility from report level to transaction level.
Flexibility: Tally.ERP 9 provides flexibility to generate instant reports for any
given period (month/year) or at any point of time besides providing the facility
to toggle between Accounting & Inventory reports of the same company or
between companies.
Concurrent multilingual capability: Tally.ERP 9 offers you the exclusive
capability of maintaining your accounts in any Indian language, viewing them
in another language and printing them in yet another Indian language.

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Creating a Company in Tally.ERP 9
The first step towards working with Tally.ERP 9 is to create a ‘company’.
A ‘company’ in Tally.ERP 9 is a central repository where you can
maintain all the financial records of your business, and from where you
can extract the required financial reports and statements. The procedure to
create a company is explained below. To facilitate understanding, we have
illustrated the creation of a company named “Khushi Pvt Ltd”
STEP:- Go to Gateway of Tally → Company Info→ Create Company

The fields in the company creation screen and the information to be

filled in each of them are explained below. To navigate between the
fields, use the Enter/Tab/Arrow Keys, or Mouse clicks.
Directory: The path to the location of Tally.ERP 9 data is displayed
here. By default, the path provided while installing Tally.ERP 9 will be
displayed. However, you can press backspace and specify the location in
which you want the data to be stored.
Name: Provide a name for the company that is being created. In this
example, we are creating a company named “Khushi Pvt Ltd”
Primary Mailing details: The mailing name and address details are
picked from here for any report such as balance sheet and statements of
accounts.
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 Mailing Name: The name provided for the company in the name field
is automatically displayed here. However, you can change it as per
requirements. The name specified here will be used for mailing purposes.
In this example, “Khushi Pvt Ltd ” Traders is retained.
Fill in the company’s address.
Country: Select the country in which the company is located. This will
allow users to choose the statutory capabilities available for that country.
In this example, the country selected is India.
Fill in the relevant numbers in the Telephone No. and Mobile No.
fields.
E-Mail: Fill in the company’s official e-mail ID here. This will be used
while e-mailing reports and statements from Tally.ERP 9.

Select a Company
By ‘selecting’ a company, you are essentially opening the company it in
Tally.ERP 9.
1. Go to Gateway of Tally → F3: Company Info. (Alt+F3)
2. Click Select Company, or press S. Tally.ERP 9 displays the Select
Company screen, with a List of Companies that are available in the
location specified. You can also press F1 to get to the Select Company
screen.

Shut a Company
By ‘shutting’ a company, you are essentially closing a company.
Go to Gateway of Tally → F3: Company Info. (Alt+F3)
1. Click Shut Company. Tally.ERP 9 displays the Close Company screen,
with the List of Companies that are open. You can also use Alt+F1
from the Gateway of Tally together to this screen.

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Creation of Ledgers
A ‘Ledger’ is an account head. For instance, the sales account head will
be called a ‘Sales Ledger’ in Tally.ERP 9. Similarly, a customer would be
an account head, and will be called a ‘party ledger’. We can create ledgers
specific to your business transactions. For a newly created company, there
are two pre-defined ledgers available in Tally.ERP 9:
Cash
Profit & Loss A/c

Ledger Creation
In Tally.ERP 9, we can create the ledgers in two ways given below:
I. Single Ledger Creation: Here we can create one ledger at time.
II. Multiple Ledger Creation: Here we can create different ledgers at one
go and also ledgers which belong to particular group.

Single Ledger Creation

Creation of Proprietor’s Capital Account ledger from single ledger
creation screen.
1. Go to Gateway of Tally →Accounts Info → Ledgers → Create (Single
Ledger Creation)
2. Enter Name as Proprietor’s Capital Account
3. Select Capital Account from the List of Groups

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Accounting Vouchers
Introduction In accounting terms, a voucher is a document containing the details
of a financial transaction. For example, a purchase invoice, a sales receipt, a
petty cash docket, a bank interest statement, and so on. For every such
transaction made, a voucher is used to enter the details into the ledgers to update
the financial position of the company. This feature of Tally.ERP 9 will be used
most often.

Types Accounting Vouchers

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each
designed to perform a different job. The standard accounting vouchers are:
Contra Voucher (F4)
Payment Voucher (F5)
Receipt Voucher (F6)
Journal Voucher (F7)
Sales Voucher/Invoice (F8)
Credit Note Voucher (Ctrl+F8)
Purchase Voucher (F9)
Debit Note Voucher (Ctrl+F9)

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Contra Voucher (F4)

STEPS:
1. Go to Gateway of Tally →Accounting Vouchers (Press V) →F4 for contra

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Payment Voucher (F5)

STEPS:
Go to Gateway of Tally →Accounting Vouchers (Press V) →F5 for Purchase

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Receipt Voucher (F6)

STEPS:
Go to Gateway of Tally →Accounting Vouchers (Press V) →F6 for Receipts

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Journal Voucher (F7)

STEPS:
Go to Gateway of Tally →Accounting Vouchers (Press V) →F7 for Journal

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Sales Voucher/Invoice (F8)

STEPS:
Go Gateway of Tally →Accounting Vouchers (Press V) →F8 for Sales Voucher

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Credit Note Voucher (Ctrl+F8)

STEPS;
Go Gateway of Tally→Accounting Vouchers (Press V) → Ctrl+F8 Credit Note

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Purchase Voucher (F9)

STEPS:
Go to Gateway of Tally →Accounting Vouchers (Press V) →F9 for Purchase

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Debit Note Voucher (Ctrl+F9)

STEPS:
Go to Gateway of Tally →Accounting Vouchers (Press V) → Ctrl+F9 for Purchase

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What is Trial Balance?
Multiple entries in various accounts will make a Ledger. Taking all the ledger
balances and presenting them in a single worksheet as on a particular date is
Trial Balance.
To understand a trial balance, we must first understand the following:

• Double entry system – Recording two entries for a single transaction that
is equal and opposite in nature
• Journal – All transactions recorded in double entry system of
bookkeeping
• Ledger – Summary of all journals of a similar nature.

Concept of Trial Balance

Let’s say you record all your activities in a diary. At month end you summarize
your diary and classify it into various categories. Now you make a sheet and
divide the categories into productive / non productive. That’s exactly what
businesses do.

• Recording of transaction is a Journal entry.

• Summarizing them and categorizing them are Ledgers.
• Creating a worksheet and classifying the ledgers is a Trial Balance.

A trial balance is a sheet recording all the ledger balances categorized into debit
and credit. A typical trial balance will have name of ledger and the balances.
This is prepared as at a particular date which can be financial year end or
calendar year.

Advantages of Trial Balance

Arithmetical accuracy
Given the nature of double entry system, every transaction will result in two
entries of equal and opposite nature. Hence at any point in time all debit ledger
totals will match to credit ledger totals. Since Trial Balance lists all the accounts
as on a particular date, the debit total of a trial balance must match to the credit
total.

Therefore a Trial Balance is an indicator of the Arithmetical accuracy of the

books of accounts.

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 Bird’s-eye view
A trial balance is a summary sheet listing all ledges and balances. Hence it
provides a bird eye view of the accounting transactions of an organization.

Prerequisite for preparation of Financial statements

An organization needs to know profit or loss and financial position at year end.
And thus to prepare financial statements, Trial Balance is prerequisite. All
stakeholders also need this information. It is the first step towards closure of
accounts for a particular period.

STEPS:
1. Gateway of Tally
2. Display (Press D)
3. Trial Balance (Press T)

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What are the different versions of Tally?

Over the years, Tally has undergone a revolution that led it to discover different
versions of Tally initially; Tally has a single version which by meantime
replicated into different versions. Let us have a look at those different versions
of Tally.

Tally 3.0 (1990)

Tally 3.0 is the first version of Tally that has been used for basic accounting
needs of small businesses. But, the software needs external and special
commands to perform the operation. And, it supports only Microsoft DOS.

Tally 3.12 (1991)

Tally 3.12 is similar to the before version i.e. Tally 3.0. Here, few features have
been updated. Still, it resembles the operation done as like Tally 3.0

Tally 4 (1992)

Tally 4 is the next version of Tally came up in the year 1992. As like Tally 3.0
and Tally 3.12, it also supports Microsoft DOS and differs slightly from that of
the rest two versions.

Tally 4.5 (1994)

Tally 4.5 is a DOS-based program. DOS program is very lightweight and hence
the operation will be completed quickly.

Tally 5.4 (1996)

Followed by Tally 4.5, Tally 5.4 is the next version of Tally. It is a graphic
interface version that became popular in masses. Within a short period, its
pirated version has made Tally as the best accounting software.

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Tally 6.3 (2001)

Tally 6.3 is the next Tally version that supports Windows operating system. It is
the true windows based version thereby supporting printing and VAT. In
addition, Tally 6.3 has been built with watertight security that made the software
hard to crack.

Tally 7.2 (2005)

Tally 7.2 is the version that came up with new additional features. It is the fastest
version where operations are completed faster than before. Additional features
including statutory compliant features, different VAT values, etc made it more
unique than usual versions.

Tally 8.1 (2006)

Tally 8.1 is the version that adds new data structure to the Tally. It adds the
module of POS and payroll feature in this version. The version was not
welcomed by people as expected. Hence, Tally team has moved forward to
launch another version.

Tally 9 (2006)

Tally 9 is the next version of Tally with 9 added features. The features of Tally
9 includes excise, payroll, e- TDS filing facility, FBT, TDS, and other regular
features related to accounting and inventory management.

Tally ERP 9 (2009)

Tally ERP 9 is the latest version of Tally since 2009. It has lingual many
business organizations. It has advanced features including GST calculations,
invoice and payroll procedures, remote access, multi-user login, and transaction
procedures. Nowadays, businessmen wish to have complete business solution
software like Tally.

Tally ERP 9.2

Tally 9 Release 2.0 unleashes the full power of the new engine built into it to
give us superlative performance. The response time of the application can now
be measured in seconds rather than minutes, even for high volume data. This
percolates down to a tenfold increase in performance in several operations. It
will improve the user experience with the application and will substantially
increase productivity.
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Reports we can generate in Tally
Reports play an important role for businesses to help manage their day-to-day
business operations efficiently. Understanding this need, Tally.ERP 9 provides
many insightful reports. Reports in Tally.ERP 9 are designed to suit all the
aspects of accounting management, inventory management and statutory.

Balance Sheet in Tally.ERP 9

The Balance Sheet gives a complete glance of the financial position of a
business. The Balance Sheet in Tally.ERP 9 shows the assets and liabilities of a
company. From the Gateway of Tally screen, a business owner can access the
Balance Sheet. The Balance Sheet can be configured using F12 configuration in
Tally.ERP 9. Tally.ERP 9 also offers Schedule VI Balance Sheet for businesses.
The Balance Sheet can be viewed for any given dates. Multiple valuation types
are given for defining stock valuations such as FIFO, LIFO, Average Cost,
Average Price and many more.

STEPS:
1. Go to Gateway of Tally
2. Reports
3. Balance Sheet (Press B)

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Profit & Loss Account in Tally.ERP 9
The Profit & Loss report in Tally.ERP 9 shows a company’s net profit or loss in
a given period. By default, this Tally report considers the period starting from
the date when the books begin to the entry date of the last voucher. The Profit &
Loss report in Tally.ERP 9 can be configured with F12 configuration available
within the report. A business owner can see Schedule VI Profit & Loss account
or P&L statement in vertical format based on the requirements.

STEPS:

1. Go to Gateway of Tally
2. Reports
3. Profit & Loss A/c (Press P)

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Cash Flow/Fund Flow Report in Tally.ERP 9
The Cash Flow report in Tally.ERP 9 has been provided to help get a view
of cash inflow and outflow during an accounting period. This report makes
it easy for business owners to understand the cash flow situation for a
specific period and helps make decisions.
Similarly, the Fund Flow report in Tally.ERP 9 provides details on the
sources of funds and their net flow status on a monthly basis.

STEPS:
1. Go to Gateway of Tally
2. Display (Press D)
3. Cash/Fund Flow ( Press C)

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Ratio Analysis Report in Tally.ERP 9
The Ratio Analysis report is a powerful report for financial analysis in
Tally.ERP 9. The multiple ratios in the report give a clear understanding of
the financial position of a business. These are Debt Equity Ratio, Quick
Ratio, Return on Working Capital, Return on Investment and so on. This is
one of the key Tally report.

STEPS:
1. Go to Gateway of Tally
2. Reports
3. Ration Analysis (Press R)

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Outstanding Report in Tally

A business owner can see receivables ledger-wise and bill-wise in Tally.ERP 9.

He can see ageing analysis which can be applied based on due dates or as per
the bill dates. Based on the time that has passed (ageing), a business can
accordingly connect with parties or manage funds to make payments. With the
bill wise ageing details, the user can see and understand the details of bills for
which payment is pending.

STEPS:
1. Go to Gateway of Tally
2. Display
3. Statement of Account

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Stock Summary Report in Tally.ERP 9
The Stock Summary report displays the current position of stocks or stock
in hand for a particular date. From this Tally report a business owner can
view item-wise rates, quantity and value of stocks available. The Stock
Summary report in Tally.ERP 9 also enables business owners to view
gross profit at each item level based on landing cost and sales price. It also
shows the status of stocks available across various go downs. The user can
see the net stock position by considering purchase and sales orders which
are yet to be processed.

STEPS:
1. Go to Gateway of Tally
2. Reports
3. Stock Summary (Press S)

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 Statutory Reports in Tally.ERP 9

GST Reports in Tally.ERP 9

In GST, Tally.ERP 9 provides GSTR-1, GSTR-2, GSTR-3B and e-Way Bill related
reports. The GSTR-1 report in Tally.ERP 9 is designed exactly as the form GSTR-1 to
make life easy for users.
Business owners can see -
• Details of transactions participating in GSTR-1
• Transactions not relevant for returns
• Transactions not participating because of incomplete information or mismatches
• Serial number-wise details of values as mentioned in GSTR-1
A user can navigate from any value up to the actual transaction itself. Users can
correct transactions under Incomplete/mismatch in Information section and allow
these transactions to participate in GST returns. This way, Tally ensures that a user
files the most accurate GST returns. Similar experience is given for GSTR-2 and
GSTR-3B.

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 Inventory Vouchers

Introduction
Tally.ERP 9 inventory transactions perform the same function in the inventory
system as accounting transactions do for the purpose of recording accounting
transactions. They are the means by which you enter transactions relating to
inventory. The transactions record entries relating to the issue and receipt of
stock, the transfer of stock between locations, and physical stock adjustments.
The following inventory transactions are available in Tally.ERP 9:
Purchase Order (Alt+F4)
Sales Order (Alt+F5)
Rejections Out (Alt+F6)
Rejections In (Ctrl+ F6)
Stock Journal (Alt+F7)
Delivery Note (Alt+F8)
Receipt Note (Alt+F9)
Physical Stock (Alt+F10)

Voucher Configuration

To use above given vouchers,

Go to Gateway of Tally → Press F11: Company Features → F2: Inventory
Features
To enable Delivery Note, Receipt Note and Rejections Voucher, set Yes to
Use Tracking Numbers (enables Delivery and Receipt Notes) and Use Rejection
Inward and Outward Notes.
Go to Gateway of Tally > F12: Configuration > Invoice/Orders Entry – Set
Provide Complete Accounting Allocations in Order/Delivery Note to Yes
Make sure that Inventory Values are affected? is set to Yes in all ledger
accounts under the groups sales accounts and purchase accounts

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Inventory Vouchers

Purchase Order (Alt+F4): A Purchase Order is an order placed by a business

entity with a supplier for the delivery of specified goods at a given price and at a
predetermined time.

Receipt Note (Alt+F9): Receipt Note voucher type is used for recording goods
received from the supplier.

Rejections Out (Alt+F6): The Rejections Out voucher records goods that are
rejected and returned to a supplier.

Sales Order (Alt+F5): Sales Order is an order placed by a customer for the
delivery of specified goods at a given price and at a predetermined time.

Delivery Note (Ctrl+F8): A Delivery Note is used for recording goods

delivered to a customer.

Rejection In (Ctrl+F6): A Rejection In voucher is used to record goods that

are rejected and returned by the customer.

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Data Backup and Restore
Introduction
Data on the computer is vulnerable to different types of threats and any data lost
will be disastrous for the organisation. Hence, there is a need to store data at a
different location by taking a backup.
Backup
Tally.ERP 9 helps users to take back up of one or more companies in a single
directory. Let us understand the backup feature of Tally.ERP 9 using the
example of “ Khushi Pvt Ltd ”. To take a single or multiple company data
backup,
1. Go to Gateway of Tally → Company Info. →Backup

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2. Enter Source and Destination of the backup

3. Press Enter and the List of Companies available for backup will appear. Select
the required companies for which data backup needs to be created.

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4. Once the required companies are selected, select End of List and accept the
screen. The backup file is created with the name TBK900_10003.001

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Restoring Data from a Backup File
The Restore functionality allows you to restore the data backup taken earlier.
Remember the following points before restoring data backup.
1. Do not restore old or irrelevant data.
2. Do not restore data from a damaged media.
3. Do not restore data in the same folder as the existing data, since it may
overwrite the existing data.

For restoring data from a backup file, follow the steps given below:
Go to Gateway of Tally → Company Info → Restore.

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2. Destination field: Enter the folder path where data backup needs to be
restored.

3. Select the required companies from the list of companies and then restore

4. Select End of List to complete the selection and accept the screen.

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Data Export and Import Procedure in Tally.ERP 9

The procedure to Export or Import the data in Tally.ERP 9 is as follows:

Step 1.Ensure that the F11: Features of both the companies are same. If
not make the required changes to have similar F11: Features in both
companies.
Step 2.Load the company whose data you would like to export and follow
the steps given below to export the data.
STEP3. Load the company where masters have to be imported.

Procedure to Export the data

▪ Go to Gateway of Tally → Display → List of Accounts

▪ Click E: Export or press Alt +E
The Exporting List of Ledgers screen is displayed.
▪ Select Default (All Languages) in the Language field
▪ Select XML (Data Interchange) in the Format field

▪ Enter the path of the location where the files are to be exported in the Export
Location field.

The Output File Name field is pre-filled with the name master with file
extension based on the option selected in Format field. You can change the
name, if required.

▪ Select the option All Masters in the Type of Masters field.

▪ Accept to export the data in selected format.

▪ Similarly export the company’s Vouchers from Display > Day Book
▪ Shut the Company after exporting the Masters and Vouchers.

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Procedure to Import the data

On successfully importing the Masters, you can proceed to import the vouchers

by following the steps: -

▪ Go to Gateway of Tally → Import of Data → Masters

▪ In Import of Masters screen, enter the required filename in Import
File Name (XML) field
▪ Select the required Behavior in Treatment of entries already
existing field

▪ Combine Opening Balance – Select this option to combine the

opening balances both existing and new balances
▪ Ignore Duplicates – Ignore all duplicate entries

▪ Modify with New Data – Does not combine opening balances but
modifies the existing data

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What is the use of Tally?

TO SIMPLIFY ACCOUNTS
The accounting software solutions influence the control in the hands of a
Non-accounting audience, as they are designed to give numbers a meaning, and
to perform automated calculations. With a little to spend on training costs these
systems, enables the business owners to complete all accounting operations and
comply with legal standards with ease and simplicity.

TO SAVE COST
The accounting software solutions automate most of the core calculations and
administrative procedures and thereby also take control of the revenue
framework so that businesses will not be required to outsource finance
management to an external expert. On a parallel thought, they also reduce the
costs related to printing and distribution of documents and store sensitive data in
secure and monitored locations (say cloud computing)

TRANSPARENCY
A good accountancy system is one that avoid costly and recurring human errors.
In the business sentiment, calculating inaccurate totals or failing to report data
in time can lead to a crisis, and that’s where automating calculations is most
helpful which plays an important role in financial transparency audit.

ACCURATE FORECASTING
It’s one of the major features of accounting software where without a proper
accounting system, detailing on the patterns and trends of financial performance
would take ages to complete. The accounting solution gives numbers a meaning,
helping the management to understand where to save on the expenses or where
to invest more. A best accounting solution also helps in developing smart
strategies and allocating resources to the right channel.

PRODUCTIVITY

Accounting software in India is a complete package of digitized services

which makes the most cumbersome, day-to-day tasks of companies look
Easier, and collects, organize, and analyze their outcomes. Most importantly it
makes smarter use of the available resources and thereby increase the efficiency
of reporting standards by providing accurate data which in turn helps
management in taking informed decision making.
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COMPLYING WITH TAX LAWS

Today almost all accounting software’s automatically complies with

taxation laws as part of their internal structure so the businesses can
avoid penalties and other consequences on defaults. The accounting systems of
today are so comprehensive that they provide every detail required to comply
with taxation laws for example TDS compliance with Tally.ERP 9 is very
simple task as one just needs to activate it at the statutory information screen
and Tally does the compliance part on its own.

DATA SECURITY

Data related to financial activity of business is a most valuable information and

it must be prevented from falling into the wrong hands. Here’s what the
accounting systems do for their users, they prevent accounting from being
jeopardized by theft by providing passwords and administration ID s and setting
up as who can view what.

What are Financial Statements?

Financial Statements represent a formal record of the financial activities of an
entity. These are written reports that quantify the financial strength,
performance and liquidity of a company. Financial Statements reflect the
financial effects of business transactions and events on the entity.

Four Types of Financial Statements:

1. Statement of Financial Position:

Statement of Financial Position, also known as the Balance Sheet, presents the
financial position of an entity at a given date. It is comprised of the following
three elements:

Assets: Something a business owns or controls (e.g. cash, inventory, plant

and machinery, etc)

Liabilities: Something a business owes to someone (e.g. creditors, bank

loans, etc)

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 Equity: What the business owes to its owners. This represents the amount of
capital that remains in the business after its assets are used to pay off its
outstanding liabilities. Equity therefore represents the difference between the
assets and liabilities.

2. Income Statement:

Income Statement, also known as the Profit and Loss Statement, reports the
company financial performance in terms of net profit or loss over a specified
period. Income Statement is composed of the following two elements:

Income: What the business has earned over a period (e.g. sales revenue,
dividend income, etc)

Expense: The cost incurred by the business over a period (e.g. salaries and
wages, depreciation, rental charges, etc) Net profit or loss is arrived by
deducting expenses from income.

3. Cash Flow Statement:

Cash Flow Statement, presents the movement in cash and bank balances over a
period. The movement in cash flows is classified into the following segments:

Operating Activities: Represents the cash flow from primary activities of a

Business.

Investing Activities: Represents cash flow from the purchase and sale of
assets other than inventories (e.g. purchase of a factory plant)

Financing Activities: Represents cash flow generated or spent on raising and

repaying share capital and debt together with the payments of interest and
dividends.

4. Statement of Changes in Equity:

Statement of Changes in Equity, also known as the Statement of Retained

Earnings, details the movement in owners; equity over a period. The movement
in owners’ equity is derived from the following components:

Net Profit or loss during the period as reported in the income statement
Share capital issued or repaid during the period
Dividend payments
Gains or losses recognized directly in equity (e.g. revaluation surpluses)
Effects of a change in accounting policy or correction of accounting error.
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BIBLOGRAPHY

www.google.com

www.slideshare.com

www.wikipedia.com

www.tally.erp9.com

www.timesofindia.com

www.nsdi.com

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