BASIC ACCOUNTING SOFTWARE LAB PROJECT REPORT

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF COMMERCE (HONOURS)

BASIC ACCOUNTING SOFTWARE FOR COMMERCE LAB PROJECT REPORT

Batch: 2022-2025

Submitted By: PROJECT GUIDE

Name of student: Aby Abraham Name: Bhanuj Sobti
Enrollment No: 03219588822 Designation: Assistant Professor

DON BOSCO INSTITUTE OF TECHNOLOGY

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

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 INDEX
Sl. Page
No. Description No.
1 Cover page
Index page
Certificate 1-5
Declaration
Acknowledgement
2 Basic Accounting Software Lab
a. Hardware Requirement details 6
b. Software Requirement details
3 Introduction to Accounting Software ‘TALLY.ERP 9’ 7
4 Screen Shots and Descriptions
a. Installation of Tally
b. Opening of Tally 8-10
c. Details of Working in Tally
5 Question and Solution on creation a new company procedure on
Tally software application along with Basic Configurations 11-13

6 Question and solution on Tally software application related

to creation of Ledgers, posting Journal entries through 14-23
vouchers and Trial Balance
7 Questions and solution on Maintenance of cash Book 24-31
8 Question and solution on Reconciliation of Cash Book with
32-38
Bank Statements.
9 Questions and solution on Inventory or Stock 39-53
10 Questions and solution on Calculation of Interest 54-60

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 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 Aby Abraham, B.Com. (Hons),
Enrollment no. 03219588822, is an authentic work carried out by his/her under guidance
and supervision of Project guide

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

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 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: Aby Abraham
Enrollment No.: 03219588822
Course: B. Com. (Hons)
Semester: 3rd Semester

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 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 Bhanuj Sobti wh o
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: Aby Abraham
Enrollment No.: 03219588822
Course: B. Com. (Hons)
Semester: 3rd Semester

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 2. Basic Accounting Software Lab
a) Hardware Requirement
 Operating System: TALLY.ERP 9 is compatible with Windows 7 or later.
 Processor: A minimum of a 1.5 GHz Intel Pentium processor or equivalent is
required.
 RAM: At least 1 GB of RAM is the minimum requirement, but 2 GB or more is
recommended for better performance.
 Hard Disk: A minimum of 150 MB of free disk space is necessary for installation.
 Display: A monitor with a minimum resolution of 1024x768 is needed.
 Internet Connectivity: A stable internet connection is required for some features,
like online updates and data synchronization.
 Input Devices: Standard input devices such as a keyboard and mouse are essential.
 Multi-User Configuration: For multi-user access, a Local Area Network (LAN)
setup is needed.
 Backup Storage: Sufficient storage space for regular data backups is crucial to
safeguard your financial data and transactions.

b) Software Requirement
 Operating System: TALLY.ERP 9 is compatible with Windows operating systems,
including Windows 7, Windows 8, Windows 8.1, and Windows 10. It can also run
on various Windows Server editions.
 .NET Framework: To use TALLY.ERP 9, you must have Microsoft .NET
Framework 4.5.2 or a later version installed on your computer. This framework is
essential for several core functionalities.
 Web Browser: While TALLY.ERP 9 is primarily a desktop application, it may
require a standard web browser, such as Internet Explorer, Microsoft Edge, or
Mozilla Firefox, for accessing online features, updates, and support resources.
 Database Management System: TALLY.ERP 9 utilizes its proprietary database
system, and there's no need to install a database management system (DBMS).
 Administrator Rights: You need administrator rights on your computer for a
successful installation and proper configuration of TALLY.ERP 9.
 Anti-virus Software: It's essential to have up-to-date antivirus software installed,
but ensure it's configured not to disrupt TALLY.ERP 9's operations and data access.
 Firewall Configuration: Configure your firewall to permit TALLY.ERP 9's
communication, especially if it requires internet access for updates and data
synchronization in a multi-user environment.
 PDF Software: A PDF viewer or writer is necessary for generating and viewing PDF
documents, which are TALLY.ERP 9 is frequently used for reports and invoices.

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 3. Tally .ERP 9

Introduction
Tally .ERP 9 is one of the most popular business management software used in India. It is a
complete enterprise software for small & medium enterprises.
Tally .ERP 9 is a perfect business management solution and GST software with an ideal
combination of function, control, and in-built customisability.

Tally .ERP 9 permits business owners and their associates to interact more in accounts related
discussions and is a complete product that retains its original simplicity yet offers
comprehensive business functionalities such as Accounting, Finance, Inventory, Sales,
Purchase, Point of Sales, Manufacturing, Costing, Job Costing, Payroll and Branch
Management along with compliance capabilities for Excise, TDS, TCS, and now GST too!

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 4. Screenshots and Description
a) Installation of Tally .ERP 9
Tally software can be purchased and downloaded from the Tally website. We can download a
30-day trial version if we are not sure if we want to use it yet. Tally 9 is for Windows only. We
can also use Tally in Educational Mode, which allows you to learn how to use the software
without having to purchase a license. Some features are restricted in this mode.

Open the Tally .ERP 9 installer software in the device and fulfil all the requirement such as
(location, acceptance, and compatibility) in the device and Click ‘Install’ to install the software
in the device.

b) Opening of Tally
Open the Tally .ERP 9 software in the device from the installed location in the device

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c) Detail of working in Tally .ERP 9
Operations How to use Tally .ERP 9 in Detail
Creating Ledgers Understanding what ledgers are for: Ledgers
in Tally record all of the transactions for
that account. One will need to create a
ledger for each account that they do
business with. Two ledgers are included in
Tally by default: "Cash" and "Profit and
Loss Account". We can create as many
other ledgers as we need. How to?

Step 1: Open Create Ledger window by

following the given direction: Gateway of
Tally > Account’s Info > Ledger > Create

Step 2: Select the group. Here we will be

required to select as to which group the
ledger will be assigned to. Choosing the
right group is important, as it will affect
how numbers and sales are totalled later

Step 3: Give the ledger a name. Enter a

name for your ledger to know what the
ledger contains in it without having to open
it

Step 4: Enter an opening balance (if

any).For Example: If you are creating a
ledger for your bank account, this would be
the amount currently in it. If you are starting
a ledger for the amount owed to a Vendor,
the amount you owe would be the starting
balance
Creating Vouchers Understand the purpose of vouchers: It is a
document that contains the details of a
financial transaction. These are used for all
aspects of a business, from sales to deposits.
Tally .ERP 9 comes with several of the most
popular types of vouchers pre-configured
for usage. How to create different vouchers?
Step 1: Open the vouchers screen using the
following direction: Gateway of Tally >
Accounting Vouchers

Step 2: In this step, we can choose the

voucher we want to create. Here’s is the list
:

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F4: Contra : For recording money
deposited into or withdrawn
from the bank, or for
recording any sum transferred
between two accounts in the
same company.
F5: Payment This voucher is used for
payments made by the
business.
F6: Receipts For recording any income
earned by the company (sales,
rent, interest, etc.) and for
recording the proceeds
received from Sundry debtors.
F7: Journal For recording all adjustment
or due entries such as prepaid
expense, accrued income etc.,
For recording purchase of
assets for recording Input tax
reversal entries, reverse
charge entries under GST
F8: Sales This is used for recording all
the sales made by the
company
F9: Purchase This is used for recording all
the inventories purchased by
the company in the course of
business.
Step 3: Enter the required information.
The information needed to complete the
voucher will vary depending on the type of
voucher we want to create. We will have to
typically need to determine which ledger the
voucher will be attached to, as well as enter
the date and names of any involved parties.

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 5. Create a new company procedure on Tally software
application along with the Basic Configuration.
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.

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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.

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Step 5: Set Financial Year and Books Beginning Date
 You'll also need to specify your financial year details:
1) Financial Year From: Enter the start date of your financial year.
2) 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: Select the Appropriate Statutory Compliance

 Tally .ERP 9 supports different statutory compliance requirements based on your
location and business type. You'll need to select the relevant options, such as VAT,
GST, TDS, etc., and configure them as needed.
Step 7: Provide Security Control Information
 Set the security control options based on your needs. This includes setting a password
for the company and providing the name of the administrator.
Step 8: Enable/Disable Features
 You can enable or disable various features based on your business requirements.
These features include inventory management, order processing, job costing, etc.
Step 9: 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 10: Confirmation
 Once you accept and save the details, you'll receive a confirmation message that the company has
been created successfully.

The new company is now created in Tally. ERP 9, and you can start entering your financial
transactions and manage your accounts within this company file. It's important to maintain
your company data regularly and ensure data backups for data security.

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 6. 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.

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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.

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 Name of the Ledger Groups
Capital Capital Account
Cash Cash in Hand
SBI Bank Bank Account
PNB Bank Bank Account
Furniture Fixed Assets
Machinery Fixed Assets
Tarun A/c Sundry Creditors
Harish A/c Sundry Creditors
Purchases Purchase Account
Sales Sales Account
Purchase Return Purchase Account
Sales Return Sales Account
Discount Allowed Indirect Expense
Discount Received Indirect Income
Drawings Capital Account
Jai A/c Sundry Debtor
Depreciation Indirect Expense
ICICI Bank Loan Loan Liabilities
Interest on Loan Indirect Expenses
Loss by theft Indirect Expenses
Reliance Info COMM Investments
Goods Account Current Assets

Step 4: Accounting Vouchers

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

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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

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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)

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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)

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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 )
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11. 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)

12. 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)

13. Journal Voucher

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

14. 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)

15. 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)
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 16. 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)

17. 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)

18. 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

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Step 9: Trial Balance
 Gateway of Tally < Display < Trial Balance

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 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 3,600
Allowed him discount 150
Oct. 25 Paid into bank 400
Oct. 26 Issued cheque for purchases 400
Paid salary by cash 650
Oct. 27 Received cheque from Sanjay and paid into Bank 800
Drew cheque for office use 600
ANS:
Step 1: Create a new company.

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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

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Step 3: Pass Entry in the Ledger
 While creating the ledger pass the required opening balance as per the question.

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.
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 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)

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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)

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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)

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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

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 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

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 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

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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

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 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.

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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) A/c Dr Rs. 2,000
To Indian Bank A/c Rs. 2,000
(Being cheque paid for Telephone charge)

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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)

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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

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 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

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 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
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  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-Pad 10nos only
Ans:
Step 1: Create a new company

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

Name of the Ledger Group

Capital Capital account
Royaltypayable Indirect expenses
Cash Cash in hand

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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:

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  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

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  Inventory Info<GoDowns<Create

Step 6: 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

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 Sony I-pad 15nos Rs.500

 Lenovo laptop 7nos Rs.12000

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  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 7: 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)

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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)

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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)

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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)

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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)

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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 )

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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

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Step 8: Profit & Loss
Gateway of Tally<Reports<Profit & Loss A/c

Step 9: Balance Sheet

Gateway of Tally<Reports<Balance Sheet

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 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. VengalaRao Sold goods to us 27000 B.No 111 Interest 2%P.M.
Ans:

Step 1: Create a company

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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 ─

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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
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 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)

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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)

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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)

16. 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)

17. 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%)

18. 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)

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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

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