A

Project Report
On: -
“A Study of Using Tally Software for Recording And

Analyzing Accounting Data with Respect To GST”

BY

Ashish N. Satao

Under Guidance Of

Dr. Ashutosh Gadekar

Submitted To

Savitribai Phule Pune University

Requirement For -

Master Of Business Administration (MBA)

Through

SAIBALAJI INTERNATIONAL INSTITUTE OF MANAGEMENT

SCIENCES, PUNE

Academic Year: 2021-23

I
I
 DECLARATION

I, Ashish Nivrutti Satao hereby declare that this project report on “A Study Of Using Tally
Software For Recording & Analyzing Accounting Data With Respect To GST” is the record of
authentic work carried out by me in fulfilment of the course curriculum of MBA at SaiBalaji
International Institute of Management Sciences, Pune and has not been submitted to any other
University or Institute for the award of any degree / diploma etc.

The summer internship gave me an opportunity to study, understand and have practical exposure
on different aspects. This report is the result of the authentic work carried out by me under the
guidance of Dr. Ashutosh Gadekar project guide.

Date:

Place: Pune (Ashish N. Satao)

I
 ACKNOWLEDGMENT

I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and the organization. A special gratitude I
give to my project manager Mr. Arvind Bhosale and my college mentor Dr. Ashutosh Gadekar
whose contribution in stimulating suggestions and encouragement, helped me to coordinate my
project specially in writing this report.

Furthermore, I would also like to acknowledge with much appreciation the crucial role of the staff,
who gave the permission to use all required equipment and necessary materials throughout the
period. Last but not least, my thanks go to the head of the project Mr. Arvind Bhosale who have
invested his full effort in guiding the team in achieving the goal. I have to appreciate the guidance
given by Dr. Ashutosh Gadekar especially in my project presentation that has improved the
presentation skills thanks to their comment and advice.

II
 Executive Summary

This report was originated in result of my internship on the topic “A Study Of Using Tally Software
For Recording & Analyzing Accounting Data With Respect To GST”, which I did, as must
requirement of MBA program. This report was done based on my learning of 3 Month’s internship
in Arvind Bhosale & Associates. The objective of this report was to gain knowledge from one of
the job experiences and analyzing the financial performance, based on the knowledge that I
gathered in the MBA courses. Arvind Bhosale & Associates is CA Firm. The firm provide financial
services including financial analysis, tax advisory, GST advisory etc.
This report aims toward providing an overview on account management department of Arvind
Bhosale & Associates. While preparing this report it has been tried to reveal the insights of the
account management Department & performance analysis of the organization. A few
recommendations and suggestions were also prescribed based on the observation and findings.
Meanwhile I have included my suggestions and recommendations in order to eradicate the
weaknesses of their department. Finally, I have ended my report through including references and
sources that I have used to make this report.

III
 INDEX

Sr. No. Title Page No.

1 Introduction 1-4

2 Objectives of Study 5-6

3 Company Profile 7-13

4 Review of Literature 14-30

5 Research Methodology 31-34

6 Data Analysis & Interpretation 35-40

7 Findings 41-42

8 Suggestions 43-44

9 Conclusion 45-46

10 Limitations 47-48

11 Bibliography 49-50
 CHAPTER 1
INTRODUCTION

1
 1.1 INTRODUCTION

About The Industry

Organization is working as Chartered Accountants firm under the rules and regulations and code
ofethics designed for CA firms by ICAI (The Institute of Chartered Accountants of India).
The Institute of Chartered Accountants of India (ICAI or the Institute) was established as statutory
body on July 1, 1961, under Chartered Accountants Ordinance, 1961 to regulate the profession of
accountancy in the country.
ICAI is governed by the Council which consists of nineteen members. Fifteen members are elected
from amongst the members for a period of four years. The remaining four of the Council
membersare nominated by the Government of India.
These kinds of firms provide different kinds of professional services like audit, taxation, and
management consultancy to its clients.
The Chartered Accountancy course is conducted by the Institute of Chartered Accountants of
India, which has its headquarters in New Delhi, 5 regional offices (Calcutta, Kanpur, Chennai,
Mumbai, and New Delhi) and 81 branches under these regional centers.

2
 2.1 MISSION & VISION

Mission of ICAI
Is to achieve excellence in professional competence, add value to businesses and economy,
safeguard public interest; ensure ethical practices and good corporate governance while
recognizing the needs of globalization.

Vision of ICAI

The profession of Chartered Accountants in India should be the benchmark of professional

excellence upholding the principles of integrity, transparency, and accountability.

3
 1.2 ORGANISATIONAL STRUCTURE

A hierarchy is an arrangement of items (objects, names, values, categories, etc.) in which the items
are represented as being "above," "below," or "at the same level as" one another and with only one
"neighbor" above and below each level. These classifications are made with regard to rank,
importance, seniority, power status, or authority. A hierarchy of power is called a power structure.
Following is the organizational hierarchy of the firm: -

 Partners
 Directors
 Senior Managers
 Managers
 Supervisors
 Senior Trainee Students
 Junior Trainees

Various levels of the firm have different functions. Partners are often the founders of the firms.
Most of the firms’ names are associated with the names of partners. They are basically the main
parties who issue and sign any report (specifically audit report) on behalf of the firm. Partners
mostly communicate with the Senior Managers. In other words, the progress of any report and any
inquiry is made from the Senior Managers and hierarchal structure is strictly followed to avoid any
disruption.

Managers are inquired of by Senior Managers and mostly manager manage audit field works etc.
and after field work managers with cooperation of senior managers makes and finalize any audit
report to be issued. Senior Manager is a qualified Chartered accountant having more than 10 year
working experience.

Field work and information collection and implementation of policies by adopting changes in rules
& regulations is the main responsibility of supervisors and trainees. They use different kind of
techniques for error and fraud detection.

4
 CHAPTER 2
OBJECTIVES OF STUDY

5
 OBJECTIVES OF STUDY

I choose to work with Arvind Bhosale & Associates. During this internship I have learnt many
new skills. Before internship I have only theoretical knowledge about work in organization but
now, I have practical some practical experience of working in organization. Now I have knowledge
about the organization’s working environment and how organizations work and achieve their goals
and objectives.
This internship has to gives me the understanding of business and also about the elements of
strategic thinking, planning and implementation, and how these things are applied in a real world
organization environment. Following are the objectives that I have in my mind before working as
an internee.

 To study and understand basic concepts of Tally.

 To study of using Tally for corporate purposes.
 To understand current goods and service tax system in India.
 To impart knowledge regarding concept of financial accounting.
 To study and evaluate the effect of financial planning.

6
 CHAPTER 3
COMPANY PROFILE

7
 3.1 About The Company

Arvind Bhosale & Associates is a leading chartered accountancy firm. It is rendering

comprehensive professional services which include audit, GST Consultants, Finance Consultants,
Tax Consultants, Investment consultants, Accounting Services, GST Return Filing Services,
accounting services etc.

It is a professionally managed firm. The team consists of distinguished chartered accountants,

corporate financial advisors and tax consultants. The firm represents a combination of
specialized skills, which are geared to offers sound financial advice and personalized proactive
services. Those associated with the firm have regular interaction with industry and other
professionals which enables the firm to keep pace with contemporary developments and to meet
the needs of its clients.

Arvind Bhosale & Associates has a clear vision for the future growth and development of financial
markets and services and research to stay ahead of these trends and developments. Arvind Bhosale
& Associates molds its operations and areas of competencies and introduces services so as to assist
clients in their business operations and growth.

8
 3.2 Department of The Company

Arvind Bhosale & Associates is having its office in Nehru Nagar, Pimpri-Chinchwad Pune. All the
controls and regulations are dealt at the office place. The office constitutes different number of
departments who basically handle their respective functions. The major departments include:

Audit and Assurance Department: -

Firm provides audit and assurance services to wide range of clients which include performing
audits of financial statements of limited companies, NGOs and partnerships. Firm also performs
special assignments which include management audits, internal audits and investigations. Audit
focuses on business issues and the matters that can impact on the financial statements, whilst also
retaining the basic audit procedures that test the information contained in the financial
statements.Services are aimed to comply with the legal requirements as defined under the various
laws and regulations in India. In doing so firm not only identify the non-compliances but also
assists clients in its rectification, designing remedial measures and provides guidance to adhere
with the laws and regulations. Firm always endeavor to meet reporting deadlines as set out by the
laws and regulations or as mutually agreed with clients, without compromising the professional,
legal and ethical requirements.

Firm’s emphasis is on delivering high quality services to clients, adding value to their business
through identification of existing and potential control risks and suggesting best possible measures
in the given circumstances. Firm always places priority to deploying audit teams to clients who
arewell equipped with the specific industry knowledge, experience and are professionally sound.

9
Tax and Corporate Department: -

Firm delivers taxation services to clients and assists them in obtaining optimal tax benefits
available under the laws. Firm also assist clients to comply with the tax rules and regulations and
always keep them updated with the latest developments and amendments. Tax personnel are
qualified professionals, experienced and knowledgeable. We maintain a comprehensive tax library
which always provides ready references and timely solution in complex situations. Firm provides
a comprehensive range of tax services which includes.

 Preparation and submission of annual tax returns.

 Compliance services.
 Tax advisory services.
Representation and litigation with tax authorities.
 Personal income tax services.

In Arvind Bhosale & Associates same staff is handling with tax matters as well as corporate sector.

Computer Department: -

Department handles the computer related matters and assists other departments in working properly
and efficiently. Department deals with online filing of returns of income for tax department and
finalize audit reports in proper format in a presentable manner. It deals with networking of
computers in office and all other problems which may be faced by computer users time to time.

Correspondence Department: -

It handles with all the correspondence of the firm by sending the solicited and unsolicited
information from time to time. Effectively and efficiently manage the day-to-day operations of
the Correspondence. Interact with clients to resolve policy and customer issues. Identify trends
and remove obstacles in Statement production and delivery by properly maintaining record of all
communication for future reference.

10
CORPORATE SERVICES

 Incorporation of company

 Consultancy on Company Law matters.

 Filing of annual returns and various forms, documents.

 Filing GST return, ITC claim.

 Secretarial Matters including share transfers.

 Maintenance of Statutory records

 Consultancy Services on Public/Rights/Bonus Issue of shares.

 Change of Name, Objects, Registered Office, etc.

11
3.3 SERVICES OFFERING

Tally Accounting: -

Tally is most used accounting software. Small and medium sized business can take services
fromCA firms who can allocate accountants to handle accounting for your business.

GST Registration: -

GST registration of business is to enable selling of goods with turnover value beyond a certain
limit. Limit may differ from state to state. It is necessary to get GST Input Tax Credit.
Experienced CAfirms can ease out the process within reasonable fees.

Project Financing: -

Companies need funds to grow their business. Experienced CA can prepare project report for loan
financing to ensure that you get best eligible amount in the shortest time. Generally, fees are
charged as percentage of financed amount.

GST Return: -

GST returns to be filed on periodic basis by business to provide information about value of
turnover & total GST liability & mode of payment. Frequency may differ from state to state.
Delays will attract penalty. Experienced CA firms can ensure compliance with reasonable fees.

TDS Return: -

Income tax act requires TDS (Tax Deducted at Source) deduction file the TDS return on
periodicbasis by mentioning TAN No.

Income Tax (Salaried): -

Income tax return of salaried employee can be filed with help of Form 16 & Form 16A. Form 26
AS will help you in getting information about TDS on salary. Experienced CA firm can help
you for better tax planning and reduce the TDS.

12
Income Tax (Business): -

Income Tax returns filing is requirement of Income Tax Act for companies/businesses. Tax Audit
Report helps in compliance of income tax laws. Experienced CA firms can help in reducing non-
compliance of income tax laws.

Data Management –

To manage the data of the clint it uses MS Excel to store the data properly and later carry forward
the data to Tally accounting for the purpose of GST Filling and other accounting process.

Statutory Audit: -

Get the statutory audit of your company under Companies Act 2013 from experienced CA firms.
Statutory Audit is compulsory for any type of company.

Tax Audit: -

Tax Audit is requirement of Income Tax Act for companies/large businesses. Tax Audit
Report helps in compliance of income tax laws & highlights key tax related information.
Experienced CA firms can help in reducing non-compliance of income tax laws.

Internal Audit: -

Internal Audit & Internal Financial Control Testing is needed as per Companies Act. Internal Audit
is not as compulsory as Statutory Audit.Internal auditor can add value to your business to arrest
leakage & improve control and efficiency.

13
 CHAPTER 4
REVIEW OF LITERATURE

14
 4.1 JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge that I gained during the
studies. On my first day at firm, company in- charge Mr. Arvind Bhosale gave me training session
about client follow-up and computerized accounting in tally software and also shared his practical
experience with me and gave me some techniques of this process. He also guided me that how to
use Tally Software for corporate record and prepare GST return.

 Different task that I performed during my internship:

 Vouching
 Taking client follow up.
 Maintaining client data in MS Excel
 Preparing books of accounts in tally
 Voucher Entry
 Making summary of bank transactions
 Clearing suspense account
 Prepare Projected and other Balance Sheet
 Auditing
 Learned About CARO 2020(Company Auditor’s Report Order)
 Theoretical learning of different type of Taxation and GST
 Maintenance of accounts/ bookkeeping.

 Software used during internship:

 MS office
 Tally software

15
 4.2 OVERVIEW OF VOUCHING

Vouching is a technical term which refers to the inspection of documentary evidence supporting
and substantiating a transaction, by an auditor. It is the practice followed in an audit, with the
objective of establishing the authenticity of the transactions recorded in the primary books of
account. It essentially consists of verifying a transaction recorded in the books of account with the
relevant documentary and the authority on the basis of which the entry has been made; also
confirming that the authority on the basis of which the entry has been made; also confirming that
the amount mentioned in the voucher has been posted to an appropriate account which would
disclose the nature of the transaction on its inclusion in the final statements in account. Vouching
do not include valuation. Vouching can be described as the essence or backbone of auditing.

16
 4.2.1 PREPARATION OF BOOKS ON TALLY

Following are the books that were made in tally:

 VOUCHER ENTRY: -

Tally provides flexibility to use predefined voucher types, comprising of accounting and inventory
voucher types to record various business transactions. It also allows you to use Keyboard Shortcut
Keys as well as mouse operations during voucher entry.

To create a new Voucher Type,

Go to Gateway of Tally > Accounts Info. > Voucher Type > Create.
 Enter the Voucher name.

 Specify the Type of voucher.

 Specify the Method of numbering.

 Activate or deactivate the other functions as required.

 BOOKS AND REGISTERS: -

Tally provides you capability to generate various books and registers for any specific period viz.,
month, date, and year and as on date. In Tally, once voucher entry is made, the transactions are
automatically &immediately in the Day Book and other Books of Accounts without any
additional effort. Tally allows you to maintain and generate all primary books of accounts and
registers like:
 Cash Book
 Bank Book
 Purchase Register
 Sales Register
 Journal Register
 Debit Note Register
 Credit Note Register
 General Ledger
17
 4.2.2 Overview Of Tally ERP 9

 Definition of Tally ERP 9 Software

What is Tally? understand about Tally. ERP 9, its features, versions and its advantages and
disadvantages.

What is Tally

Tally is an ERP accounting software package used for recording day to day business data of a
company. The latest version of Tally is Tally ERP 9.

Tally ERP 9 Software is one acclaimed financial accounting system and inventory management
system with power computer.

Tally ERP 9 is one best accounting software that can integrated with other business applications
such as Sales, finance, Purchasing, Payroll, Inventory, etc.

Tally software stores all the business transactions of each account in detail. Tally ERP 9 follows
double entry accounting system and hence eliminates and rectifies possible errors.

18
 Features of Tally

Tally ERP 9 supports multi languages, so it is called as multi-lingual tally software. Accounts can
be maintained in one language and reports can be viewed in another language.

You can create and maintain accounts up to 99,999 companies.

Using payroll feature, you can automate employee records management.

Tally has feature of synchronization, the transactions maintained in multiple locations offices can
be automatically updated.

Generate consolidated financial statements as per requirements of company.

Managing single and multiple groups are very important features of tally.

 Advantages of Tally ERP 9

Tally ERP 9 software is a low cost of ownership, and it can be easily implemented and customize.

Supports multi operating systems such as Windows & Linux and can be installed on multiple
systems.

Tally software utilizes very low space for installation and the installation of tally is an easy method.

It is built in backup and restore, so the user can easily backup all companies’ data in a single
directory, in a local system disk.

Supports all types of protocols such as HTTP, HTTPS, FTP, SMTP, ODBC, etc.

19
 Short cut keys use in Tally ERP 9

1. CTRL + F1: Selects the payroll voucher from Inventory Voucher or Accounting Screen.

2. CTRL + F2: This key selects Sales Order Voucher from Accounting and Inventory Voucher
Screen from Tally ERP 9.0.

3. CTRL + F4: The key selects Purchase Order Voucher from Accounting Entry Screen.

4. CTRL + F10: To go to the memorandum voucher screen.

5. CTRL + F9: Go to Debit note voucher from the Gateway of Tally.

6. CTRL + F8: Go to the Credit note voucher screen.

7. ALT + J: Job work Issue/out Screen

8. ALT + W: Job Work Receipt Voucher

 Short cut Keys use for Voucher entry record in Tally.

9. F1: Select or open the Company from the gateway of Tally.

10. F2: Change the Current Date

11. F4: Contra Voucher

12. F5: Payment Voucher

13. F6: Receipt voucher

14. F7: Shortcut key Journal Voucher

15. F8: Sales Voucher Screen

16. F9: Purchase Voucher Shortcut

17. F11: Tally Features Configuration

18. F12: Configure Tally setups for a voucher, Generate, Printing, Licensing, etc.

20
 Journal Entry
Journal Vouchers are used to adjust the debit and credit amounts without involving the cash or
bank accounts. Hence, they are referredto as adjustment entries.

 Creating a Journal Entry: -

Journal entries are usually used for finalization of accounts. To pass a Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers
 Click on F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest due. If you have to receive
Interest from a party, the same can be entered using Journal Voucher.
Debit the Party
Credit the Interest Receivable Account the Journal entry is displayed as shown:

 How To Pass Journal Entries In Tally ERP Software

To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown:

21
 Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting their Account in your
Books of Accounts for the stated reason or vice versa. It is commonly used in case of Purchase
Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the
party etc. Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in
F11: Accounting or Inventory features.
To use it in Voucher mode you need to enable the feature in F11: Accounting Features - Use Debit
/ Credit Notes.
To make the entry in Invoice mode enable the option F11: Accounting Features - Use invoice
mode for Debit Notes.
To go to Debit Note Entry Screen,
Go to Gateway of Tally > Accounting Vouchers
Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.You can toggle between voucher
and Invoice mode by clicking CTRL. Pass an entry for the goods purchased returned to Supplier
A:

22
 Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their Account in your
Booksof Accounts for the stated reason or vice versa. It is commonly used in case of Sales
Returns.

A Credit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11. Accounting or Inventory features.
To use it in Voucher mode you need to enable the feature in F11:Accounting Features - Use
Debit / Credit Notes.
To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.To
go to Credit Note Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.
You can toggle between voucher and Invoice mode by clicking Ctrl +V. Pass an entry for goods sold
returned from Customer A:

23
 Cash Book and Bank Book Registration

The Cash Book is a record of the receipts and payments of cash. It is a book of original entry as
well as a ledger account. Similarly, the Bank Book is a record of all the receipts and payments
made through the bank. The Cash/Bank Book in Tally ERP is a two-in-one report where you can
see both the cash and the bank transactions on the same screen, but in separate sections.

Both the Cash Book and Bank Book in Tally ERP are account books that are used to record
individual transaction details. Though the items are posted to different ledgers, Tally ERP will
help you see all the transactions of one category in one place. Accordingly, all transactions that
affect cash will appear in the Cash Book, while all transactions that involve a bank, such as
deposits, credits, and withdrawals, will appear in the Bank Book.

What’s more, you can view the Cash/Bank Book in your browser!

View Cash Book

With the Cash Book in Tally ERP, you can view all the receipts and payments of cash at one place.

Gateway of Tally > Display More Reports > Account Books > Cash/Bank Book.

You can use the shortcut key as, F4: Contra Voucher

The Cash ledger account screen displays the debit and credit amounts of all the vouchers for the
period. If cash balance is negative for a particular date, then Tally ERP displays the credit cash
balance in red color as the Closing Balance.

24
 Purchase Registration
Purchase Registration is the voucher use to record the purchase invoices that occurs in the business
at the time of making the purchase. This voucher is commonly used to record when purchase of
items are made.

Recording a Purchase Entry

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase
transactions of the company.

● Go to Gateway of Tally > Accounting Vouchers.

● Click on F9: Purchase on the Button Bar or press F9.

For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-

● Debit Purchase Account.

● Credit Party Account.

To pass a Purchase entry in the Invoice mode, you need to enable the option Enable Invoicing in
F11: Features (F1: Accounting or F2: Inventory Features).

After enabling the feature now you can pass the entry in Tally.

 Sales Registration: -
Sales Registration is the voucher use to record the Sales invoices that occurs in the business at the
time of making the sales of company products. This voucher is commonly used to record when
sales of items or commodities are made.

25
 Recording a Sales Entry

When a company sold goods on credit or cash, Sales voucher is used to record all the Sales
transactions of the company.

 Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

 In Party A/c name, select the customer ledger or the cash ledger.

 Select the common sales ledger in which GST rate is not defined.

 Select the stock items defined with different GST rates and specify the quantities and rates for
each of them.

 Select the central and state tax ledgers. GST will be calculated based on the GST rates defined
in the stock items.

 You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax
break-up.

 How To Enable GST Feature In Tally

 Enabling GST features in Tally

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation.

On the screen you will find the following option:

Enable goods and service tax (GST): Yes.

Set/alter GST Details: Yes.

26
 Top 5 Accounting and Financial Data analysis Software’s In India: -

27
 4.4 OVERVIEW ON GST

 What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service
Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July
2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination- based tax
that is levied on every value addition.

In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods
and services. This law has replaced many indirect tax laws that previously existed in India.

GST is one indirect tax for the entire country.

Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales,
Central GST and State GST are charged. Inter- state sales are chargeable to Integrated GST.

Now let us try to understand the definition of Goods and Service Tax – “GST is a comprehensive,
multi-stage, destination-based tax that is levied on every value addition.”

Multi-stage

There are multiple change-of-hands an item goes through along its supply chain: from manufacture
to final sale to the consumer.

Let us consider the following case:

• Purchase of raw materials

• Production or manufacture

• Warehousing of finished goods

• Sale to wholesaler

• Sale of the product to the retailer

• Sale to the end consumer

28
 Advantages of GST

GST has mainly removed the Cascading effect on the sale of goods and services. Removal of
cascading effect has impacted the cost of goods. Since the GST regime eliminates the tax on tax,
the cost of goods decreases. GST is also mainly technologically driven. All activities like
registration, return filing, application for refund and response to notice needs to be done online on
the GST Portal; this accelerates the processes.

 Components of GST

There are 4 taxes applicable under this system: CGST, SGST, UGST & IGST.

CGST: CGST is a tax levied on Intra State supplies of both goods and services by the Central
Government and will be governed by the CGST Act. SGST will also be levied on the same Intra
State supply but will be governed by the State Government. the taxes levied by the central
government.
(E.g.: transaction happening within Maharashtra)

SGST: SGST is levied and collected by the states on all goods and services supplied for
consideration. SGST is not applicable to the exempted goods and services as they do not come
under the influence of GST. Furthermore, SGST is also not applicable where the aggregate annual
turnover is less than the prescribed limit.

(E.g.: transaction happening within Maharashtra)

UTGST: UTGST stands for the Union Territory Goods and Services Tax. Similar to how SGST
is levied by the state governments on the intra-state supply of goods and services, UTGST is levied
by the handful of Union Territory governments. It refers to the tax levied on the intra-Union
Territory supply of goods and services

(E.g.: Transaction happening within any two-union territory of India)

29
 IGST: IGST; Integrated Goods and Services Tax. IGST stands for Integrated Goods and Services
Tax. IGST is one of the three components of Goods and Services Tax. IGS tax is levied when there
is an inter-state transfer of goods and services.

(E.g.: Maharashtra to Tamil Nadu)

 Rates of GST On Some Daily Use Items: -

Items SGST CGST IGST

Daily usage items like tea,

coffee (except instant), spices, 2.50% 2.50% 5%
edible oil, and sugar. Charcoal,
necessary drugs, and Indian
Sweets are also covered under
this GST slab.

Processed food and computers 6% 6% 12%

Hair oil, body soaps and 9% 9% 18%

toothpaste, capital goods, and
industrial intermediaries.

Luxury items, including luxury

and posh cars, consumer 14% 14% 28%
durables like Air Conditioners
and refrigerators, cigarette
packs, aerated drinks, and high-
end motorcycles

30
 CHAPTER 5
RESEARCH METHODOLOGY

31
5.1 WHAT IS RESEARCH METHODOLOGY?

Research methodology is a way to systematically solve the research problem. It may be understood
as a science of studying how research is done scientifically. In it the researchers study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them.

It is necessary for the researcher to know not only research methods or techniques but also the
methodology. Researcher not only need to know how to develop certain indices or tests, how to
calculate the mean, mode, median or the standard deviation, how to apply particular techniques,
but they also need to know which of these methods or techniques are relevant and which are not.

Researcher also needs to understand assumption underlying various technique and they need to
know the criteria by which they can decide that certain techniques and procedures will be
applicable to certain problems and other will not. All it means that it is necessary to the researcher
to designed his methodology for his problem as the same may differ from problem to problem.

Following are the questions for research methodology concerning a research problem or study:

1. Why a research study has been undertaken?

2. How the research problem has been defined?

3. In what way and why the hypothesis has been formulated?

4. What data have been collected?

5. Why particular technique of analyzing data has been used?

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 5.1 COLACTION OF DATA

The task of collecting data begins after a research problem has been defined and design/plan
chalked out. While deciding about the method of data collection to be used for the study, the
researcher should keep in mind two types of data i.e. primary data and secondary data.

Primary data
Secondary data

5.1.1 PRIMARY DATA: -

COLLECTION OF PRIMARY DATA

Primary data is the data which is collected by the researcher directly from his own observation and
experiences. Primary data are collected afresh and for the first time, especially for the designated
study.

METHODS:

1. Follow-up Method:
It is the method use to collect the company related financial data of the client. Here, the information
collected by the client is used to formulate the financial statements and prepare the audit report
through Tally Software.

2. Observation method:
It is the most commonly used method especially in studies relating to behavioral sciences. Here,
the information is sought by way of investigator's own direct observation without asking from the
respondent.

3. Through Schedules:
In this method, the enumerators who are specially appointed for the purpose are filling in schedules
(Performa containing a set of questions).

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5.1.2 SECONDARY DATA: -

COLLECTION OF SECONDARY DATA

Secondary data are those data, which are already published. It may be useful for many other person
than the researcher who has published it.
Secondary data include both raw data and published summaries.

SOURCES OF SECONDARY DATA

In most of studies the investigator finds it impracticable to collect first hand information on all
related issues and as such he makes use of the data collected by others.
There are a large number of resources from which secondary research information can be obtained.
Secondary data were collected from company's annual reports, memorandum of settlements,
transactional data, previous year’s financial reports, and from previous audit report, bay books and
other financial reports generated in Tally ERP 9.

ANALYTICAL TOOLS

The tool used in the analysis of the data for the study is simple statistical tools such as the data
reports generated in Tally Software, ratio analysis, financial statements report in Tally etc. The
study also takes the help of data analysis report generated in Tally for the simplified presentation
of the data collected.

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 CHAPTER 6
DATA ANALYS & INTERPRETATION

35
 6.1 DATA ANALYSIS

Data Analysis facilitates in conducting internal analysis and verification of the company's financial
data. Data Analysis will help in identifying exceptional areas and thereby ease the process of
verification.
In Tally Software Data Analysis is made through Data Analysis Report.
As the work performed during the internship, I learned how to analyse the client data that had been
recorded in Tally ERP.
In Tally Software, it generates various reports that helps to analysis the data of the company.
There are various reports like

Sales Purchase Annual Data Report, Profit & Loss Account, Balance Sheet Report, Cash Flow
Report, Ratio Analysis Report, Data Analysis Report

As the work done by me it helps me to collect the data from the Secondly Sources from the clients
annual transactions regarding sales, purchase, contra transactions, which generate the financial
reports helps to was assembled, stored, selected and analysed. The analysis of the data is as under
here-

1. Tally. ERP 9 provides a comprehensive day book for analysing the data regarding sales
information in the Sales Register.

Fig.6.1

36
 Interpretation –

• The Sales Day Book Report shows all registers display monthly summary with transactions and
closing balances.

• Sales Day Book helps in analyzing the monthly sales data recorded in chronological order in Tally
ERP.

2. Data analysis based on cash book and bank book.

Fig.6.2

Interpretation:

• The Cash/Bank Summary screen appears, displaying the Cash and Bank transactions of your
company.
• The Ledger Monthly Summary screen displays the Debit and Credit amounts of all the vouchers
for the period. The cash balance might be negative on varied days. In this case, Tally ERP displays
the credit cash balance in Red as the Closing Balance.

37
3. Tally ERP 9 generate Trading A/c & Profit & Loss A/C that provide comprehensive data for
analyzing the overall profitability performance.

Fig.6.3

Interpretation
• Using the Profit and Loss A/c in Tally ERP 9, you can measure the ability of your business to
generate profit.
• The Profit & Loss A/c is generated from the date of opening of the books till the date of last entry.
• You can use the to compare financial information across companies, time periods, valuation
methods, and so on. By comparing time periods, you can easily measure the profits, pattern of
expenses, and so on. You can choose different time periods such as daily, weekly, monthly,
quarterly, and so on.

4. The Balance Sheet in Tally ERP 9 will help you monitor the health of your business and also take
timely decisions for its growth and betterment.

Fig.6.4
38
Interpretation:
You can use the Balance Sheet as a powerful medium for comparison. You can compare financial
information across companies, time periods, valuation methods, and so on. By comparing time
periods, you can easily measure the growth rate, pattern of expenses, and so on. You can choose
different time periods such as daily, weekly, monthly, quarterly, and so on.

5. Analyzing data through of Cash Flow Statement in Tally ERP 9.

Fig.6.5

Interpretation:
• Cash Flow Statement in Tally ERP 9 considers the flow of cash and helps you anticipate the cash
to be generated or spent over a period of time.
• Tally ERP 9allows you to view your Cash Flow Projection report through distinctive filters which
include setting Overdraft limits of your bank, along with including Cash Account, Scenarios,
and Overdue to your report.

39
6. Ratio analysis report in Tally ERP 9.

Fig.6.6

Interpretation:

• Ratio Analysis in Tally ERP 9 helps you compare different sets of financial data. It consists of
Principal Groups and Principal Ratios, that help you know about the overall standing of your
business.
• The ratio analysis is auto generated report in Tally ERP 9 which provide detailed analysis of
the performance of the business that help to know about the financial status of the clients.

40
CHAPTER 7
FINDINGS

41
 Findings
Through my internship at Arvind Bhosale & Associates, I got to learn a lot about corporate
environment & practical knowledge of work. This is my great opportunity to work with Mr. Arvind
Bhosale Sir’s accounts department, the accounts department is well set-up. The company uses
Tally software is limited to accounts use only. But switching to customized software would give
more flexibility and productivity.

1. To record the transactions in Tally needs clients’ sales, purchase With GST Invoices in
chronological order. … (As per fig. 6.1)

2. Clients bank statements are recorded in contra entries that generate Cash/Bank Book that
provide opening and closing balance of cash of the client company…. (As per fig 6.2)

3. The client’s data used to record in Tally helps to produce the financial reports…. (As per fig.
6.3 & fig. 6.4)

4. The data recorded in Tally generate Cash Flow Statement report to anticipate the cash to be
generated or spent over a period…. (As per fig. 6.5)

5. Tally Software helps to analyze the data with the help of ratios and financial statements….
(As per fig. 6.6)

6. From the data analysis and interpretation, it could be said that the report produced through
Tally Software are essential to evaluate the financial performance, fill GST return and to
prepare the audit report of the company.

42
 CHAPTER 8
SUGGESTIONS

43
 SUGGESTIONS

Though the organization is good at everything and everything is well maintained and managed.
But still there are some changes and imprudent in some areas are needed. In my opinion some of
the suggestions are:

1. To record the client’s data in Tally, it is more convenient to having the data in chronological
order. There should be a mechanism that keeps the data in proper sequence, so that it will
help to perform without errors…. (As per Finding 1)

2. While recording the bank statements the suspense account is generated that need to clear with
the help of client support. For this, client (customer) relationship management team should
be formed to schedule client’s appointments in regarding to clear suspense account and so
on…. (As per Finding 2)

3. There should be a proper training given to the staff enough to understand and handle the
financial reports…. (As per Finding 3)

4. The audit team should be well trained and having the expertise to understand the cash flow
statement report to make a proper and fair audit and remarking…. (As per finding 4)

5. To file GST return it need to transfer the Tally Sales data to GST portal before 23 of every
month, so the follow up team should be actively in touch with the clients and collect the sales,
purchase transaction data from the client before the due date. So that the data can be recorded
in Tally and the same can upload to GST portal within the due date to avoid inconvenience
regarding filling GST returns.

44
CHAPTER 9
CONCLUSION

45
 CONCLUSION

Arvind Bhosale & Associates is overall one of the profits making and reputed firm of in Pune,
India. The organization since its very first day is devoted to providing quality services. The detailed
and through review of work and clients’ trust shows the perfection with which it is working.

As the company works on Tally ERP it helps to perform the financial activities more effectively.
Tally ERP helps to handle multiple data at a time and helps to fulfill all legal compliance at a
single roof.

Tally accounting software on cloud has given businesses the advantage of accessing their tally
account from anywhere, anytime, using any device. Also accessing tally reports and tally data from
different locations has also become more convenient and secured.

Tally ERP Software is such type of Accounting Package which provides the simplest mode of
performing Various Accounting Treatments of Transactions.

Tally ERP Software provides the Facilities of Self-Generated Statements.

As a Whole, it can be said that Tally Software is the most desirable and required Accounting
Package.

46
CHAPTER 10
LIMITATIONS

47
 LIMITATIONS

 The firm have a small staff with limited skill set in many areas.

 The firm have a smaller number of staff members due to which the workload increased during
the end days of form filling.

 Developments in technology are changing this market. The firm needs to adopt new technology
and adapt to the changed market realities.

 Change in government policies and procedures may act as threat for company.

 A small change in focus of large competitor might wipe out any market position achieved.

 Arvind Bhosale & Associates has many competitors. Under certain circumstances stuff
competition can threaten the margins and hence the survival of the firm.

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 CHAPTER 11
BIBLIOGRAPHY

49
 BIBLIOGRAPHY

 Tally Reports:
https://help.tallysolutions.com/article/Tally.ERP9/Auditor_Edition/International_Audit/Data
_Analysis.htm

 Tally Voucher details:

https://tallysolutions.com/tally/reports-in-tally-erp-9/#gref.

 Tally Reports analysis:

https://help.tallysolutions.com/docs/te9rel66/Voucher_Entry/Accounting_Vouchers/#gref

 GST portal:
https://www.google.com/search?q=gst+images&oq=gst+images&aqs=chrome..

 GST and it’s components:

https://www.bajajfinservmarkets.in/gst/components-of-gst.html

 https://www.icai.org/

Books:

 Dr. Abhishek Shrivastava, “Advance Accounting with Tally ERP 9.”

 Akshay Rajgaria, “Tally ERP 9 Plus GST Implementation.”

 CA. Sharad Bhargava, “Tax Book GST Practice.”

50