BASIC ACCOUNTING SOFTWARE LAB PROJECT REPORT

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF COMMERCE (HONOURS)

BASIC ACCOUNTING SOFTWARE LAB PROJECT REPORT

Batch 2022-2025
Submitted by: PROJECT GUIDE
Name of student: Ebin Joseph Name: BHANUJ SOBTI
Enrollment No. 03719588822 Designation:

DON BOSCO INSTITUTE OF TECHNOLOGY

(Affiliated to Guru Gobind Singh Indraprastha University,New Delhi)
 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the Research Methodology for Commerce project

work “Basic Accounting Software Lab Project” made by __Name of
student, course, class Enroll no._ is an authentic work carried out by
his/her under guidance and supervision of Project guide Name
The project report submitted has been found satisfactory for the partial
fulfillment of the degree of Bachelor of Commerce (Honours).

Project Supervisor
Name-Bhanuj Sobti

Signature
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my

mentors who graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts, and
friendly approach. It would have been difficult to achieve the results in
such a short span of time without their help.
I deem it my duty to record my gratitude towards the Project supervisor
__Name_____ who devoted his/her precious time to interact, guide and
gave me the right approach to accomplish the task and also helped me to
enhance my knowledge and understanding of the project.

Signature:
Name of Student:
Enroll. No:
Course:
Class/Section:
Semester:
 DECLARATION

I hereby declare that the following documented Project report titled “Basic
Accounting Software Lab Project” is an original and authentic work done
by me for the partial fulfillment of Bachelors of Commerce (Honours)
degree program.
I hereby certify that all the Endeavour put in the fulfillment of the task are
genuine and original to the best of my knowledge & I have not submitted it
earlier elsewhere.

Signature:
Name of Student:
Enrollment No.:
Course:
Class / Section:
Semester:
 Basic Accounting Software Lab
Setting up a basic accounting software lab involves creating an environment
where individuals or students can learn and practice accounting principles and
software usage. Here are steps to set up a basic accounting software lab:

A. Hardware Requirement details

The general hardware requirements for Tally ERP 9 (these might vary
depending on the version and updates):
Processor: Intel Pentium 4 or higher processor
RAM: Minimum 1 GB RAM for single-user and 2 GB for multi-user
Hard Disk: Minimum 150 MB Free Space on the hard disk
Operating System: Tally ERP 9 is compatible with Windows
operating systems (Windows XP or later versions)
Monitor: Minimum 1024 x 768 or higher resolution recommended
Additionally, for setting up a lab environment, consider the following:
Network: If setting up for multi-user access, a network setup or LAN
infrastructure might be required.
Server Configuration: For hosting Tally data in a multi-user
environment, a dedicated server may be necessary with higher
specifications.
Backup Solution: Implementing a backup system to prevent data loss
is essential. This could include external hard drives, cloud storage, or
a dedicated backup server.
 B.Software Requirement details
The software requirements for using Tally typically include:
Operating System: Tally.ERP 9 is primarily designed to run on
various Windows operating systems. It's compatible with Windows
XP, Vista, 7, 8, and 10. Additionally, it supports Windows Server
versions.
Microsoft .NET Framework: Tally.ERP 9 requires Microsoft .NET
Framework to be installed on the system. The specific version
required might vary based on the Tally version you're using.
Internet Connectivity: While not mandatory for Tally's regular
functioning, internet connectivity is necessary for some features like
online banking, downloading updates, or accessing certain services
provided by Tally Solutions.
Browser: For some Tally features like Tally.NET, a compatible web
browser (such as Google Chrome, Mozilla Firefox, or Microsoft
Edge) might be required.
Security Software: It's essential to configure any security software
(like antivirus or firewall) to allow Tally to run without interference.
Sometimes, security software might block certain Tally functions,
causing issues during operation.
Tally Software License: Obviously, you'll need a valid and
authorized Tally software license to use Tally.ERP 9 or any other
Tally product.
 INTRODUCTION-TALLY.ERP 9

Tally.ERP 9 is a comprehensive business management software

developed by Tally Solutions Pvt. Ltd. It's one of the most widely
used accounting and ERP (Enterprise Resource Planning) software in
India and various other countries, known for its user-friendly interface
and robust functionalities.
Overview:
Tally ERP 9 is designed to help businesses manage their accounting,
finance, inventory, sales, purchases, taxation, payroll, and more. It
caters to the needs of small, medium, and large enterprises across
various industries.
Key Features:
Accounting: Tally ERP 9 facilitates accurate and efficient accounting
operations, including ledger management, vouchers, balance sheet
generation, and bank reconciliation.
Inventory Management: It helps in managing inventory by tracking
stock movements, recording purchases and sales, managing batches,
maintaining stock valuation, etc.
Financial Management: Enables financial control through features
such as budgeting, cash flow management, financial statements
generation (P&L, Balance Sheet), and ratio analysis.
Taxation Compliance: Supports various taxation requirements like
GST (Goods and Services Tax) compliance in India and other tax
regimes prevalent globally.
Payroll Management: Manages employee payroll, tracks attendance,
generates payslips, calculates salaries, and assists in compliance with
statutory payroll requirements.
Banking: Facilitates bank-related transactions, including
reconciliation, cheque printing, fund transfers, and managing bank
accounts.
Remote Access and Collaboration: Allows remote access, enabling
multiple users to work concurrently on the same data.
Reporting and Analysis: Provides numerous customizable reports
and tools for data analysis to aid decision-making.

Benefits of Tally
Ease of Use: Tally ERP 9 offers a simple and intuitive interface,
making it accessible for users with varying levels of accounting
knowledge.
Scalability: Suitable for small businesses as well as large enterprises,
it scales with the business's growth and needs.
Comprehensive Solution: It integrates multiple business functions
into one software, eliminating the need for separate applications for
different purposes.
Reliability and Security: Provides secure data handling and ensures
reliability in data accuracy.
 QUESTIONS
Q1: Write all the steps for creation of a new company procedure on Tally software
application
along with Basic Configurations.
ANS: Step 1: Launch Tally. ERP 9
• Open the Tally. ERP 9 software on your computer.

Step 2: Select "Create Company"

• Once Tally is open, on the Gateway of Tally screen, you'll see various options.
Click
on "Create Company" to start the company creation process.

Step 3: Company Creation Form

• After selecting "Create Company," you'll be presented with a Company Creation
form.
Fill in the necessary details in this form.

Step 4: Enter Company Name and Address

• In the Company Creation form, you will need to provide the following information:
• Company Name: Enter the name of your company.
• Mailing Name: Enter the name you want to appear on your invoices and reports.
• Address: Provide the complete address of your company.

Step 5: Set Financial Year and Books Beginning Date

• You'll also need to specify your financial year details:
• Financial Year From: Enter the start date of your financial year.
• Books Beginning From: Enter the date from which you want to start maintaining
your accounts. This can be the start date of your financial year or any other date
of your choice.
Step 6 : Accept and Save
• Review all the information you've entered in the Company Creation form. If everything
is correct, press the "Accept" button to save the company details

Step 7: Confirmation
• Once you accept and save the details, you'll receive a confirmation message that the
company has been created successfully.
 * Question and solution on Tally software application related
to creation of Ledgers, posting Journal entries, through
vouchers and Trial Balance.
Q2. Write the steps to create ledgers for the transactions given and also pass
the following journal entries in appropriate vouchers: -

1. Business started with cash Rs. 20,00,000

2. Cash deposited in SBI a/c Rs. 10,00,000
3. Cash deposited in PNB a/c Rs. 5,00,000
4. Furniture purchased payment made by SBI cheque Rs. 1,00,000.
5. Machinery purchased from Tarun Rs. 1,50,000. 6. Goods purchased from
Harish Rs. 50,000
7. Goods sold to Jai Rs. 2,00,000.
8. Goods returned to Harish Rs 1000.
9. Rs. 45,000 paid to Harish in full settlement of his account. (Discount
received = 4,000).
10. Goods returned by Jai Rs. 10,000
11. Rs. 1,80,000 cheque (PNB a/c) received from Jai in full settlement.
(Discount allowed = 10,000).
12. Cash withdrawn from SBI for personal use Rs. 5,000.
13. Depreciation on furniture Rs. 10,000.
14. Loan taken from ICICI Bank deposited in SBI Rs. 1,00,000.
15. Interest charged by ICICI Rs. 10,000.
16. Loan paid back along with interest to ICICI Rs. 1,10,000 through SBI.
17. Loss of goods by theft Rs. 1,000.
18. Investment made in Reliance Info COMM by SBI cheque Rs. 70,000

ANS:
Step 1: Create a new Company
 Select ‘Create Company’ and fill the necessary details in the form.

Step 2: Accounting Info

 Select Accounting Vouchers from Gateway of Tally.
Gateway of Tally < Masters < Accounting Info

Step 3: Ledgers
 Select ‘Create’ in Ledger.
 Accounting Info < Ledger < Create

Create no. of ledgers account as per the question.

Step 4: Accounting Vouchers
 Select Accounting Vouchers from Gateway of Tally.
Gateway of Tally < Accounting Vouchers

Step 5: Configure Vouchers

 Proceed forward by clicking on F12 button, Voucher Configuration will
appear and Give ‘Yes’ and ‘No’ to the rightful requirement.

Step 6: Payment, Receipt, Contra, Journal, Debit Note, Credit Note

 Select Appropriate options from the following
 F4 - Contra
F5 - Payment
F6 - Receipt
F7 - Journal
F8 - Credit Note
F9 - Debit Note

Step 7: Journal Entries

• Now write the journal entries in the appropriate vouchers from the
above given question.
• Journal entry of the 1st transaction
1. Receipt Voucher
Particulars Amount
Cash A/c Dr Rs. 20,00,000
To Capital A/c Rs. 20,00,000
(Being business started with
cash)
2.Contra Voucher
Particulars Amount
SBI Bank A/c Dr Rs. 10,00,000
To Cash A/c Rs. 10,00,000
(Being cash deposited in SBI Bank A/c)
3. Contra Voucher
Particulars Amount
PNB Bank A/c Dr Rs. 5,00,000
To Cash A/c Rs. 5,00,000
(Being cash deposited in PNB Bank A/c)

4. Payment Voucher
Particulars Amount
Furniture A/c Dr Rs. 1,00,000
To SBI Bank A/c Rs. 1,00,000
(Being furniture purchased payment made by SBI cheque)

5. Journal Voucher
Particulars Amount
Machinery A/c Dr Rs. 1,50,000
To Tarun A/c Rs. 1,50,000
(Being machinery purchased by Tarun on credit)
6. Journal Voucher
Particulars Amount
Purchase A/c Dr Rs.
50,000
To Harish A/c Rs. 50,000
(Being goods purchased from Harish on
credit)

7. Journal Voucher
Particulars Amount
Jai A/c Dr Rs. 2,00,000
To Sales A/c Rs. 2,00,000
(Being goods sold to Jai on
credit)

8. Debit Note voucher

Particulars Amount
Harish A/c Dr Rs. 1,000
To Purchase Return A/c Rs. 1,000
(Being purchased goods return to Harish which was on credit)
9. Payment Voucher
Particulars Amount
Harish A/c Dr Rs. 45,000
To Discount Received A/c Dr Rs. 4,000
To Cash A/c Rs. 41,000
(Being cash paid by Harish discount received of Rs. 4,000 )

10. Credit Note

Particulars Amount

Sales Return A/c Dr Rs. 10,000

To Jai A/c Rs. 10,000

(Being sold goods return from Jai on credit )

1. Receipt Voucher
Particulars Amount
PNB Bank A/c Dr Rs. 1,70,000
Discount Allowed A/c Dr Rs. 10,000
To Jai A/c Rs. 1,80,000
(Being cheque received from Jai discount allowed of Rs. 10,000)

2. Payment Voucher
Particulars Amount
Drawings A/c Dr Rs. 5,000
To SBI Bank A/c Rs. 5,000
(Being cash withdrawn from SBI Bank for personal use)

3. Journal Voucher
Particulars Amount
Depreciation A/c Dr Rs. 10,000
To Furniture A/c Rs. 10,000
(Being furniture depreciated)

4. Receipt Voucher
Particulars Amount
SBI Bank A/c Dr Rs. 1,00,000
To ICICI Bank Loan A/c Rs. 1,00,000
(Being loan taken from ICICI Bank and deposited in SBI bank)

5. Journal Voucher
Particulars Amount
Interest on Loan A/c Dr Rs. 10,000
To ICICI Bank Loan A/c Rs. 10,000
(Being interest charged on ICICI Bank loan)

6. Payment Voucher
Particulars Amount
ICICI Bank Loan A/c Dr Rs. 1,10,000
To SBI Bank A/c Rs. 1,10,000
(Being loan paid back along with interest to ICICI Rs. 1,10,000 through SBI)

7. Journal Voucher
Particulars Amount

Loss by Theft A/c Dr Rs. 1,000

To Goods A/c Rs. 1,000

(Being loss of goods by theft)

8. Payment Voucher
 Particulars Amount
Reliance Info COMM A/c Dr Rs. 70,000
To SBI Bank A/c Rs. 70,000
(Being investment made in Reliance Info COMM by SBI cheque)

Step 8: Day Book

 After all the journal entries you can edit and check your journal entries in Day Book Gateway
of Tally < Display < Day Book

Step 9: Trial Balance

 Gateway of Tally < Display < Trial Balance
 7. Questions and solution on Maintenance of cash Book
Q3. Record the following transaction in the cash book.

Date Particulars Amount(Rs)

Oct 1 Cash balance 200
Oct. 01 Bank balance 500
Oct. 02 Cash received from sale of shares 12,000
Oct. 02 Paid into Bank 10,000
Oct. 03 Paid Amrit by cheque 2,400
Oct. 03 Received cheque from Amit 1,960
Oct. 03 Allowed him discount 40
Oct. 04 Paid wages by cash 500
Oct. 10 Paid Amit's cheque into Bank ─
Oct. 16 Bought goods for cash 1,200
Oct. 18 Paid for stationery cash 300
Oct. 19 Paid Hema by cheque 750
Oct. 19 Discount allowed by her 50
Oct. 19 Drawn from Bank 640
Oct. 20 Received from cash sales 340
Oct. 24 Cash withdrawn for personal use 400
Oct. 24 Received from Dev Anand Allowed 3,600
him discount 150
Oct. 25 Paid into bank 400
Oct. 26 Issued cheque for purchases Paid 400
salary by cash 650
Oct. 27 Received cheque from Sanjay and paid into Bank Drew 800
cheque for office use 600
ANS:
Step 1: Create a new company.

Step 2: Create no. of ledger as per the question.

 Name of the Ledger Groups Groups
Cash Cash in hand
Bank Bank account
Sale of Shares Sales account
Amrit Sundry Debtors
Discount allowed Indirect expenses
Amit Sundry Creditor
Wages Direct expense
Check in Hand Bank account
Goods Purchase account
Stationary Expense Indirect expenses
Hema Sundry Debtors
Discount received Indirect income
Sales Sales account
Drawings Capital account
Dev Anand Sundry Creditors
Salaries Indirect expenses
Sanjay Sundry Creditors
Office expenses Indirect expenses
Purchases Purchase account
Step 3: Pass Entry in the Ledger
While creating the ledger pass the required opening balance as per the questions

Step 4: Accounting Vouchers

• Select Accounting Vouchers from Gateway of Tally.
Gateway of Tally < Accounting Vouchers
Step 5: Journal Entries.
• Now write the journal entries in the appropriate vouchers from the above given question.
• Journal entry of the 1st transaction. 1. Sales Voucher
Date Particulars Amount
Oct 1 Cash A/c Dr Rs. 12,000
To Sale of Share A/c Rs. 12,000
(Being cash received from sale of shares)

2. Contra Voucher
Date Particulars Amount
Oct 2 Bank A/c Dr Rs. 10,000
To Cash A/c Rs. 10,000
(Being cash paid into Bank)
3. Payment Voucher
Date Particulars Amount
Oct 3 Amrit’s A/c Dr Rs. 2,400
To Bank A/c Rs. 2,400
(Being cheque paid to Amrit)

4. Receipt Voucher
Date Particulars Amount
Oct 3 Cheque in Hand A/c Dr Rs. 1,960
Discount Allowed A/c Dr Rs. 40
To Amit’s A/c Rs. 2,000
(Being cheque received from Amit discount
allowed Rs. 40)
5. Payment Voucher
Date Particulars Amount
Oct 4 Wages A/c Dr Rs. 500
To Cash A/c Rs. 500
(Being wages paid by cash)

6. Contra Voucher
Date Particulars Amount
Oct 10 Bank A/c Dr Rs. 1,960
To Cheque in Hand A/c Rs. 1,960
(Being Amit’s cheque paid into
bank)

7. Purchase Voucher
Date Particulars Amount
Oct 16 Goods A/c Dr Rs. 1,200
To Cash A/c Rs. 1,200
(Being goods purchased for cash)
8. Payment Voucher
Date Particulars Amount
Oct 18 Stationary Expense A/c Dr Rs. 300
To Cash A/c Rs. 300
(Being cash paid for stationary
expense)

9. Payment Voucher
Date Particulars Amount
Oct 19 Hema A/c Dr Rs. 800
To Discount Received A/c Rs. 50
To Bank A/c Rs. 750
(Being cheque paid to Hema discount received of Rs.
50)

10. Contra Voucher

Date Particulars Amount
Oct 19 Cash A/c Dr Rs. 640
To Bank A/c Rs. 640
(Being cash drawn from bank)

11. Sales Voucher

Date Particulars Amount
Oct 20 Cash A/c Dr Rs. 340
To Sales A/c Rs. 340
(Being cash received from Sales)

12. Payment Voucher

Date Particulars Amount
Oct 24 Drawings A/c Dr Rs. 2,400
To Cash A/c Rs. 2,400
(Being cash withdrawn for
personal use)

13. Receipt Voucher

 Date Particulars Amount
Oct 24 Cash A/c Dr Rs. 3,600
Discount Allowed A/c Dr Rs. 150
To Dev Anand’s A/c Rs. 3,750
(Being cash received from Dev Anand discount
allowed Rs. 150)

14. Contra Voucher

Date Particulars Amount
Oct 25 Bank A/c Dr Rs. 400
To Cash A/c Rs. 400
(Being cash paid into Bank)

15. Purchase Voucher

Date Particulars Amount
Oct 26 Purchases A/c Dr Rs. 400
To Bank A/c Rs. 400
(Being cheque issued for
purchases)

16. Payment Voucher

Date Particulars Amount
Oct 26 Salaries A/c Dr Rs. 650
To Cash A/c Rs. 650
(Being salaries paid)

17. Receipt Voucher

Date Particulars Amount
Oct 27 Bank A/c Dr Rs. 800
To Sanjay’s A/c Rs. 800
(Being cheque received from Sanjay and paid into
Bank)

18. Payment Voucher

Date Particulars Amount
 Oct 27 Office expenses A/c Dr Rs. 600
To Bank A/c Rs. 600
(Being cheque used drawn for
office use)

Step 6: Cash/Bank Books

 The Cash Book is a record of the receipts and payments of cash within a
financial year. It is a book of original entries as well as a ledger account.
Similarly, the Bank Book is a record of all the receipts and payments
made through the bank. This enables you to maintain daily record of your
business transactions in a chronological order. You can view the
Cash/Bank Book, daily breakup of ledgers, negative cash report and
compare information using the Cash/Bank Book in Tally.

Gateway of Tally < Display < Account Books < Cash/Bank Books

8. Question and solution on Reconciliation of Cash Book with Bank

Statements.
Q4. Bank Reconciliation Statement
Particulars Dr Cr
Capital 350000
Cash 100000
Indian bank 300000
Loan liability 150000
Bank o/d 48000
Furniture 30000
Good will 15000
Bills payable 200000
Land & building 50000
Bills receivable 130000
Bank deposit 100000
SUNDRY CREDITORS:
a. Mr. WIN INDIA was Rs.5000 Bill. No.AC75
b. Mr. COOL DREAM was Rs.7000 Bill. No. AG085

SUNDRY DEBTORS:
a. Mr. FIVE STAR Ltd Rs.15000 Bill. No. AG076
b. Mr. LINE MARK Ltd Rs.20000

TRANSACTION DURING THE PERIOD OF APRIL:

1. Paid Telephone Charge Rs.2000 by Cheque [Vodafone] Ch.No.25131

2. Amount Paid to Mr. Win India was Rs.5000 Against Bill. No. AC75,
Ch.No. 25132
3. Commission Received by Cheque Rs.10000, Ch.No.75461
4. Month Salary Rs.10000 by Cheque Paid, Ch.No.25133
5. Amount Received M/r. Five Star Rs.15000 by Cheque Discount allowed
Rs. 750, Ch.No.42678
6. Dividend Received Rs.29000 by Cheque, Ch.No. 13555 (Posted Date on
09.04.2009)
7. Paid Rent by Cheque Rs.4500, Ch.No.25134
8. Amount Paid to Mr. Cool Dream Rs.7000 by Cheque Discount Received
Rs.700, Ch.No.25135
9. Interest Received by Cheque Rs.2000, Ch.No.41596
10. Amount Received Mr. Lion Mark was Rs.19000 Discount Allowed of Rs.
1000 by Cheque, Ch.No. 89576
11. Received Branch Income Rs. 25000 by Cheque, Ch.No. 89156
12. Paid Trade Expenses by Cheque Rs.2500, Ch.No.25137
 13. Paid to General Expenses Rs.6000, Ch.No.25138
14. Received House Rent Rs.3000, Ch.No.695472
15. With Draw From Bank Rs.7000, Ch.No.25139
16. Deposit to Bank Rs.9000

ANS.
Step 1: Create a new company

Step 2: Create no. of ledger as per the question

Name of the Ledger Groups Groups

Capital Capital
 account
Cash Cash in hand
Indian Bank Bank account
Loan Liability Loan
(Liability)
Bank O/D Bank O/D
Furniture Fixed Assets
Goodwill Intangible Assets
Bill Payable Current Liability
Land & Building Fixed Assets
Bills receivables Current Assets
Bank Deposit Deposit Account
Mr. Win India Sundry Creditors
Mr. Cool Dream Sundry Creditors
Mr. Five Star Ltd Sundry Debtors
Mr. Line Mark Ltd Sundry Debtors
Telephone charge (Vodafone) Indirect expenses
Commission Received Indirect income
Salary Indirect expenses
Discount Allowed Indirect expenses
Discount Received Indirect income
Dividend Received Indirect income
Rent Indirect expenses
Interest Received Indirect income
Branch Income Indirect income
Trade Expenses Indirect expenses
General Expenses Indirect expenses
House Rent Indirect expenses
Drawings Capital account

Step 3: Pass Entry in the Ledger

 While creating the ledger pass the required opening balance as per the
question.
Step 4: Accounting Voucher
 Select Accounting Vouchers from Gateway of Tally.
Gateway of Tally < Accounting Vouchers

Step 5: Journal Entries

• Now write the journal entries in the appropriate
vouchers from the above given question.
• Journal entry of the 1st transaction. 1) Payment
Voucher
 Particulars Amount
Telephone charge (Vodafone) Rs. 2,000
A/c Dr
To Indian Bank A/c Rs. 2,000
(Being cheque paid for Telephone charge)

2) Payment Voucher
Particulars Amount
Mr. Win India A/c Dr Rs. 5,000
To Indian Bank A/c Rs. 5,000
(Being cheque paid to Mr. Win India)

3) Receipt Voucher
Particulars Amount
Indian Bank A/c Dr Rs. 10,000
To Commission Received A/c Rs. 10,000
(Being commission received)
4) Payment Voucher
Particulars Amount
Salaries A/c Dr Rs.
10,000
To Indian Bank A/c Rs. 10,000
(Being salaries paid)

5) Receipt Voucher
Particulars Amount
Indian Bank A/c Dr Rs. 14,250
Discount Allowed A/c Dr Rs. 750
To Mr. Five Star Ltd A/c Rs. 15,000
(Being cheque received from Mr. Five Star Ltd, discount
allowed of Rs. 750 )

6) Receipt Voucher
Particulars Amount
Indian Bank A/c Dr Rs. 29,000
To Dividend Received A/c Rs. 29,000
(Being dividend received by
cheque)
7) Payment Voucher
Particulars Amount
 Rent A/c Dr Rs. 4,500
To Indian Bank A/c Rs. 4,500
(Being rent paid)

8) Payment Voucher
Particulars Amount
Mr. Cool Dream A/c Dr Rs. 7,000
To Indian Bank A/c Rs. 6,300
To Discount Received A/c Rs. 700
(Being cheque paid to Mr. Cool Dream discount received of Rs.
700)

9) Payment voucher
Particulars Amount
Indian Bank A/c Dr Rs. 2,000
To Interest Received A/c Rs. 2,000
(Being interest received by
cheque)

10) Receipt Voucher

Particulars Amount
Indian Bank A/c Dr Rs. 18,000
Discount Allowed A/c Dr Rs. 1,000
To Mr. Lion Mark Ltd A/c Rs. 19,000
(Being cheque received from Mr. Lion Mark Ltd discount
allowed of Rs. 1000 )

11) Receipt Note

Particulars Amount
Indian Bank A/c Dr Rs.
25,000
To Branch Income A/c Rs. 25,000
(Being Branch Income
received )
12) Payment Voucher
Particulars Amount
Trade Expenses A/c Dr Rs. 2,500
To Indian Bank A/c Rs. 2,500
(Being cheque paid for trade expenses)

13) Payment Voucher

Particulars Amount
General Expenses A/c Dr Rs. 6,000
To Indian Bank A/c Rs.6,000
(Being cheque paid for general expenses)

14) Receipt Voucher

Particulars Amount
Indian Bank A/c Dr Rs. 3,000
To House Rent A/c Rs. 3,000
(Being House Rent received)

15) Contra Voucher

Particulars Amount
Cash A/c Dr Rs. 7,000
To Indian Bank A/c Rs. 7,000
(Being cash withdrawn from
bank)

16) Contra Voucher

Particulars Amount
Indian Bank A/c Dr Rs. 9,000
To Cash A/c Rs. 9,000
(Being cash deposited into
bank)
Step 6: Bank Reconciliation
 Gateway of Tally< Utilities< Banking< Bank
Reconciliation

9. Questions and solution on Inventory or Stock

Q6. The following would be recording in journal using double entry system. Do
the posting process from journal entries and prepare the Trial balance, Trading
a/c, Profit & loss a/c and balance sheet with inventory maintain in the books of
M/s. ISPAT CO for the following year 2023 to 2024.

PARTICULARS Dr Cr
Capital 400000
Royalty Payable 70000
Cash 120000
 Bank O/D 50000
ICICI Bank 80000
Bills payable 20000
Furniture & Fittings 50000
Bills Receivable 50000
Land and buildings 60000
Loan from Ravi 10000

Stock In Hand
Sony TV 15nos Rs.5500
Sony I-pad 15nos Rs.500
Lenovo laptop 7nos Rs.12000
Micro max phone 8nos Rs.2000

TRANSACTION DURING THE PERIOD:

1) Purchased on credit from Mr. CITIZEN for the followings
• LC-10121 calculator 20nos Rs.1200
• USB 17nos Rs.2300
• Laptop battery 22nos Rs.2100 bill no:236 (35 days)
2) Withdraw from bank for office use Rs.5000
3) Purchased on credit from Mr. Micro Max for the followings
• Phone display 20nos Rs.500. Bill no: 12 (25 days)
4) Deposit into bank Rs.10,000
5) Sold goods on credit to Mr. BENN for the followings
• Sony TV 10nos Rs.7500
• Lenovo laptop 4nos Rs.15000. Bill no: 34 (15 days)
6) Return goods to Mr. CITIZEN for the followings
• LC-10121 calculator 3nos Rs.1200
• Laptop battery 2nos Rs.2100 again bill no:236
7) With Draw for Proprietors Own Use Rs.7000
8) Sold Goods to Mr. NETWORK for the followings
• Laptop Battery 15nos Rs.3000
• Phone Display 12nos Rs.750 bill no: 67 (24 days)
9) Paid Salary Rs.5000
10) Received Interest Rs.7500
11) Return by Goods Mr. BENN for the followings
• Sony TV 2nos Rs.7500
 • Lenovo Laptop 1nos Rs.15000. Again bill no: 34 12.
12) The Stock of LC10121 calculator 3nos transferred to Chennai
branch.
13. After Stock Verify the manual inventory the stock of Sony I-
10nos only

Step 1: Create a new company

Step 2: Create no. of Ledger as per the question

Name of the Ledger Group

Capital Capital account
Royalty payable Indirect expenses
 Cash Cash in hand
Bank o/d Bank o/d
ICICI bank Bank account
Bills payable Sundry creditor
Furniture & fittings Fixed assets
Bills receivable Current assets
Land & buildings Fixed assets
Loan from Ravi Loan (liability)
Purchases Purchase account
Mr. Citizen Sundry Creditors
Sales Sales account
Purchase Return Purchase account
Sales Return Sales account
Drawings Capital account
Office Expenses Indirect Expense
Mr. Micro Max Sundry Creditors
Mr. Benn Sundry Debtors
Mr. Network Sundry Debtors
Salaries Indirect Expense
Interest Received Indirect income

Step 3: Pass Entry in the Ledger

 While creating the ledger pass the required opening balance as per the question.

Step 4: Stock group creation

• To create a stock group for "Stock in Hand", follow these steps:
• Inventory Info< Stock Groups< Create
Step 5: Stock unit creation
• To Create a Stock Unit for "Nos", follow these steps
• Inventory Info< Unit of Measure< Units< Create

Step 6: Godowns creation

• To Create a Godowns, follow these steps
ISPAT Godown

Chennai Branch

• Inventory Info<GoDowns<Create
Step 7: Stock item creation
• To create a stock item in , follow these steps:
• Inventory Info< Stock Items< Create
(Fill the stock item as per the question) 
Sony TV 15nos Rs.5500

 Sony I-pad 15nos Rs.500

 Lenovo laptop 7nos Rs.12000

 Micro max phone 8nos Rs.2000

 (Stocks which are included in the question)
 LC-10121 calculator 20nos Rs.1200
 USB 17nos Rs.2300
 Laptop battery 22nos Rs.2100
 Phone display 20nos Rs.500

Step 8: Transaction Entries

1. Purchase Voucher
Purchased on credit from Mr. CITIZEN for the followings:
 LC-10121 calculator 20nos Rs.1200
 USB 17nos Rs.2300
 Laptop battery 22nos Rs.2100 bill no:236 (35 days)
Particulars Amount
Purchases A/c Dr Rs. 5599.83
To Mr. Citizen A/c Rs. 5599.83
(Being goods purchased on credit from Mr. Citizen)

2. Payment Voucher
 Particulars Amount

Office Expenses A/c Dr Rs. 7,000

To ICICI Bank A/c Rs. 7,000

(Being cheque withdrawn for office use)

3. Purchase Voucher
Purchased on credit from Mr. Micro Max for the followings:  Phone
display 20nos Rs.500. Bill no: 12 (25 days)

Particulars Amount
Purchases A/c Dr Rs. 800
To Mr. Micro Max A/c Rs. 800
(Being goods purchased on credit from Mr. Micro Max)
 4. Contra Voucher
Particulars Amount
ICICI A/c Dr Rs. 10,000
To Cash A/c Rs. 10,000
(Being cash deposited into bank)

5. Sales Voucher
Sold goods on credit to Mr. BENN for the followings
 Sony TV 10nos Rs.7500
 Lenovo laptop 4nos Rs.15000. Bill no: 34 (15 days)
Particulars Amount

Mr. Benn A/c Dr Rs. 22500

 To Sales A/c Rs. 22500

(Being goods sold on credit to Mr. Benn)

6. Debit Note Voucher

Return goods to Mr. CITIZEN for the followings
 LC-10121 calculator 3nos Rs.1200
 Laptop battery 2nos Rs.2100 again bill no:236
Particulars Amount
Mr. Citizen A/c Dr Rs. 370.90
To Purchase Return A/c Rs. 370.90
(Being purchased goods return to Mr. Citizen)

7. Payment Voucher
 Particulars Amount

Drawings A/c Dr Rs. 7,000

To Cash A/c Rs. 7,000

(Being cash withdrawn for proprietors own use)

8. Sold Goods to Mr. Network for the following  Laptop Battery 15nos Rs.3000
 Phone Display 12nos Rs. 750 Bill.no.67(24 days)
Particulars Amount

Mr. Network A/c Dr Rs. 3750

To Sales A/c Rs. 3750

(Being goods sold on credit to Mr. Network)

9. Payment Voucher
Particulars Amount

Salaries A/c Dr Rs. 5,000

To Cash A/c Rs. 5,000

(Being salary paid)

10. Receipt Voucher

Particulars Amount

Cash A/c Dr Rs. 7,500

To Interest Received A/c Rs. 7,500

(Being interest received)

11. Credit Note Voucher
Return by Goods Mr. Benn for the followings:

 Sony TV 2nos Rs. 7500

 Lenovo Laptop 1nos Rs. 15000 against Bill.No. 3412.
Particulars Amount

Sales Return A/c Dr Rs. 5250

To Mr. Benn A/c Rs. 5250

(Being sold goods return to Mr. Benn )

12. Stock Journal (Inventory Voucher)

 Stock of LC10121 calculator 3nos transferred to Chennai Branch
 13. Physical Stock (Inventory Voucher)
 Stock verification of Sony I-Pad 10nos

Step 8: Profit & Loss

Gateway of Tally<Reports<Profit & Loss A/c
Step 9: Balance Sheet
Gateway of Tally<Reports<Balance Sheet

10. Questions and solution on Calculation of Interest

Q5: Pass the Journal entries of the following transactions for calculating the
interest:
Calculations to be done on the basis of 10 days.
Transactions:
1. Purchased from Sridhar 40000 B.No 25 Interest 2%P.M.
2. Purchased from Srikanth 35000 B.No 85 Interest 24%P.A.
3. Sold goods to Mohan 35000 (Trade Discount 5%) B.No 1 Interest
2%P.M.
4. Purchased from Ramu 42000 B.No 33 Interest 2%P.M .
5. Returned goods to Srikanth 2000 B.No 85 .
6. Goods returned by Mohan 1000 B.No 1 .
7. Sold to Sridevi Stores 20000 B.No 2 Interest 3%P.M
8. Sold to Sireesha’s Stall 10000 B.No 3 Interest 2%P.M .
9. Returns goods to Sridhar 4000 B.No 25 .
10. Bought goods from Srikanth for cash 50000.
11. Purchased from Anusha& Co 42000 B.No 105 Interest 2%P.M .
 12. Sold to Rami Reddy 20000 B.No 4 Interest 3%P.M .
13. Goods returned from Sireesha’s Stall 1000 B.No 3 .
14. Sold to Sarathi 80000 B.No 5 Interest 3%P.M .
15. Purchased from Rao Enterprises 65000 B.No 108 Interest 2%P.M .
16. Returned goods to Anusha& Co 1500 B.No 105 .
17. Sales to RangaRao (Trade Discount 10%)18000 B.No 6 .
18. Vengal a Rao Sold goods to us 27000 B.No 111 Interest 2%P.M.

Ans: Step 1: Create a company

Step 2: Create no. of Ledger as per the question

Gateway of Tally<Masters<Accounting Info<Ledger<Create
 Name of the Ledger Groups
Purchase Purchase Account
Sales Sales Account
Purchase Return Purchase Account
Sales Return Sales Account
Furniture Fixed Assets
Srikanth Sundry Creditor
Mohan Sundry Debtors
Sridhar Sundry Creditor
Ramu Sundry Creditor
Sridevi Stores Sundry Debtors
Sireesha Stall Sundry Debtors
Rao Enterprises Sundry Creditor
Rami Reddy Sundry Debtors
Vengala Reddy Sundry Creditor
Sarathi Sundry Debtors
Anusha & Co Sundry Creditor
Ranga Rao Sundry Debtors
Cash Cash in Hand

Step 3: Interest Calculation

F11 Features ─ Accounting Feature ─
Interest Activated ledgers: Capital, Banks, Sundry Debtors, Sundry Creditors
etc.
Creation of Ledger using Interest Fields Creation of ledger (Sundry
Creditors) Activate Interest Calculation- Yes

Step 4: Journal Entries

• Now write the journal entries in the appropriate vouchers from
the above given question.
• Journal entry of the 1st transaction 1. Purchase Voucher
Particulars Amount

Purchase A/c Dr Rs. 40,000

To Sridhar A/c Rs. 40,000

(Being goods purchased from Sridhar)

2. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 35,000
To Srikanth A/c Rs. 35,000
(Being goods purchased from Srikanth)

3. Sales Voucher
Particulars Amount
Mohan A/c Dr Rs.
33,250
To Sales A/c Rs. 33,250
(Being goods sold to Mohan trade
discount 5%)
4. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs.
42,000
To Ramu A/c Rs. 42,000
(Being goods purchased from Ramu)

5. Debit Note Voucher

Particulars Amount
Srikanth A/c Dr Rs. 2,000
To Purchase Return A/c Rs. 2,000
(Being purchased goods return to Srikanth)
6. Credit Note Voucher
Particulars Amount

Sales Return A/c Dr Rs. 1,000

To Mohan A/c Rs. 1,000

(Being sold goods return by Mohan)

7. Sales Voucher
Particulars Amount
Sridevi Stores A/c Dr Rs.
20,000
To Sales A/c Rs. 20,000
(Being goods sold to Sridevi
Stores)

8. Sales Voucher
 Particulars Amount
Sireesha Stall A/c Dr Rs.
10,000
To Sales A/c Rs. 10,000
(Being goods sold to Sireesha
Stall)

9. Debit Note Voucher

Particulars Amount
Sridhar A/c Dr Rs. 4,000
To Purchase Return A/c Rs. 4,000
(Being purchased goods return to Sridhar)

10. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs.
50,000
To Cash A/c Rs. 50,000
(Being goods purchased for
cash)

11. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs.
42,000
To Anusha & Co A/c Rs. 42,000
(Being goods purchased from Anusha &
Co)

12. Sales Voucher

Particulars Amount
Rami Reddy A/c Dr Rs.
20,000
To Sales A/c Rs. 20,000
 (Being goods sold to Rami
Reddy)

13. Credit Note Voucher

Particulars Amount
Sales Return A/c Dr Rs. 1,000
To Sireesha A/c Rs. 1,000
(Being sold goods return by Sireesha)

14. Sales Voucher

Particulars Amount
Sarathi A/c Dr Rs.
80,000
To Sales A/c Rs. 80,000
(Being goods sold to Sarathi)

15. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs.
65,000
To Rao Enterprises A/c Rs. 65,000
(Being goods purchased from Rao
Enterprises)

15. Debit Note Voucher

Particulars Amount
Anusha & Co A/c Dr Rs. 1,500
To Purchase Return A/c Rs. 1,500
(Being purchased goods return to Anusha
& Co)

16. Sales Voucher

Particulars Amount
Ranaga Rao A/c Dr Rs. 16,200
 To Sales A/c Rs. 16,200
(Being goods sold to Ranga Rao trade discount 10%)

17. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs. 27,000
To Vengala Rao A/c Rs. 27,000
(Being goods purchased from Vengala Rao)

Step 5: Day Book

 After all the journal entries you can edit and check your journal entries in
Day Book Gateway of Tally < Display < Day Book