MIS 

REPORTS
IN TALLY
INTRODUCTION TO MIS 

MIS is a phrase consisting of three words: Management,

Information and System. Looking at these three words, its
easy to define MIS as a system that provide information to
management.
MIS can be analyzed as follows:
 Management: It covers the planning, control, and
administration of the operations of a concern.
 Information: Information, in MIS, means the
processed data that helps the management in planning,
controlling and operations.
 System: Data is processed into information with the
help of a system.
Thus, MIS means a system of processing data in order to
give proper information to the management for performing
its functions.
 Components of MIS
To effectively deliver the information needed to decision makers, MIS
need to have necessary components.
 Capturing Data: Capturing contextual data or operational
information that will contribute in decision making from various
internal and external sources of organization.
 Processing Data: the captured data is processed into
information needed for planning, organizing, coordinating, directing
and controlling functionalities at strategic, tactical and operational.
 Information Storage: information or processed data need to
be stored for future use.
 Information Retrieval: the system should be able to retrieve
this information from the storage as and when required by various
users.
 Information Propagation: Information or the finished
product of the MIS should be circulated to its users periodically using
the organizational network.
- By Shruthika
Types Of Information System
There are different types of information system used in the business. The type of system
to be used in business depends upon size of organization, information need, quantum of
data, complexity of data, resources available etc.
 Transaction processing system: these systems have been designed to collect,
process and store transactions that occur in the day-to-day operations of a company.
These systems are capable to handle large volumes of transactions.
Eg: stock control system, payroll systems, order processing systems etc.
 Decision support system: these systems help decision makers to make the best
decisions by generating statistical projections from analyzed data. These system
compile information from several sources for purposes of aiding in decision making.
Eg: Computer supported cooperative work, logical systems etc.
 Executive Information System: These systems provide quick and easy to use reports
that are presented in graphical displays that are easy to compare. These systems need
to be highly individualized hence they are usually custom made for specific clients.
 Management Information System: these system make use of information technology
to help managers ensure a smooth and efficient running of the organization.
 Advantages of MIS
By using MIS, managers can have an overall brief look at the
company. They can use these statistics to compete in the market.
• With help of MIS the instant messaging, emails, voice and video
calls become cheaper and much efficient.
• It facilitates the planning.
• It minimizes information overload.
• MIS encourages decentralization.
• It brings coordination. It connects all decision centers in the
organization.
• It reduces the risk in decision making.
• It provides information about various aspects of business.
• The database helps in inducting research.
• It provides information regarding inventory position.
• It provides information regarding product, price, promotion,
segmentation, demand, sale etc.
- By
 MIS REPORTS IN TALLY

MIS are reports required by the management to assess the performance of the
organisation and allow for faster decision-making.
 Financial reports: to determine the financial condition of an organisation as
required by the shareholders, creditors and government units.
 Inventory reports: to manage the inventory effectively since the actual status
of stock items is obtained.
 Management control reports: to utilise budgets, cost centre reports,
scenario reports etc. for controlling activities.
 Accounting reports: to obtain information on the financial position,
operational performance and economic activities of the business.
COST CENTRE REPORTS IN TALLY ERP9
Cost centre reports are primarily performance reports that give a different
perspective to transaction.
Ensure the option Maintain cost centres is set to Yes in F11: Features. 
Cost centre Break-up shows the ledger accounts that are used in vouchers, the
cost centre they were allocated to, their total transaction values and the balance. 
If you consider only the revenue accounts, the Cost Centre break-up becomes the
profit or loss statement of activities for the cost centre, and hence a powerful
performance statement.
Go to Gateway of tally >Display > Statements of accounts > Cost centres >
category summary
 Ratio analysis is powerful tool for financial

RATIO ANALYSIS REPORTS analysis. A meaningful analysis of a financial

statement is made possible by the use of
ratios.
IN TALLY ERP9 Ratios are set figures compared with another
set.
The comparison gives an understanding of the
financial position of a business unit. There are a
number of ratios which can be computed from
single set of financial statements.
The ratios to be computed depend on the
purpose for which these ratios are required.
A single ratio may sometimes give some
information, but to make a comprehensive
analysis, a set of inter-related ratios are required
to be analysed.
The ratio Analysis Reports is divided into two
parts, Principal Groups and Principal Ratios.
The Principal groups are the key figures that
give perspective to the ratios. Principal Ratios
relate two pieces of financial data to obtain a
comparison that is meaningful.
Go to Gateway of tally > Ratio Analysis
 

 
 Cash Flow Reports in Tally ERP9
 Cash Flow is the inflow and outflow of cash during an accounting period. A cash
flow statement concentrates on the transactions that have a direct impact on cash.
 It deals with the inflow and outflow of cash between two balance sheet dates. That
is, it explains the changes in cash position between the two periods.
 Here the term cash stands for cash and bank balances.
 Cash flow statements can also be used as receipts and payment statement.  
 This is particularly useful for businesses such as Non-Profit Organisations where
receipts and payments statements need to be generated. 
Go to Gateway of tally > Display > cash/funds flow > cash flow 
Press Alt+F2, change the period – from 1-4-2020 to 31-09-2020

For Quarterly Cash Flow statement:

 Change period by pressing F2: Period and set the period, eg:1-4-2022.
 Select the option Auto column from the button bar.
 You can also select quarterly (or monthly or any other period) from the list. The
cash flow screen appears as shown below:
Funds Flow statement reports in Tally ERP9
A Fund Flow statement is report, which explains the movement of funds during an accounting period
This statement consists of two parts
 Sources of funds
 Application of funds
• The difference between the two shows the net change in the working capital during the period.
Only those transaction that affect the net working capital of the firm, find place in this statement
• The Fund Flow statement is supplement to the two principal financial statements.
• While supplementing the position statement, it describes the source from which additional fund
were derived and for which these funds were used.
• The transaction, which increases working capital are sources of funds and transactions, which
decreases working capital, are application of funds.

Go to Gateway of tally > display > cash/funds flow > funds flow
Press Alt+F2, change period- the funds flow statement is displayed
 A monthly funds flow summary with the movement of working capital for each month is displayed. It
shows the opening and closing balances of each month with a column for funds flow.

 Select a month and press enter to drill down.

 Select F1:Detailed to see the funds flow for the selected month.
- By Md. Asma
DISPLAY
MENU IN
TALLY

The Gateway of Tally menu of
an Accounts Only company
appears as shown below:
• To view the Display Menu:
• Go to Gateway of Tally > Display
• The Display Menu screen is displayed as shown:

• Gateway of Tally displays only the Balance Sheet and Profit & Loss
Account directly as these statements are considered the most
important. All the other Tally.ERP 9 reports are classified into two
broad categories, namely. Accounting reports and Inventory reports
conforming to the two major areas of operations. Each area is further
grouped into books and statements.
• The Day Book contains all vouchers for the day, including inventory
vouchers. Its purpose is to show you a day's transactions, though you
can display a report for any period using Change period option.
• Statements of Accounts are derived from the transactions recorded
in the books of accounts. In Tally.ERP 9, they are generated for cost
centres and outstanding accounts.
• The gives the tree structure of all your masters,
namely, Groups, Ledgers, Stock items, Cost
Centers, Currencies, and so on.

• Exception Reports are those reports that

track unusual transactions or balances.

- By Amulya
MODIFICATION OF ACCOUNTING
REPORTS IN TALLY

• On selecting a report name from a menu, the report is displayed. You can
modify the display to suit your requirements using the appropriate buttons
from the button bar.
• F1 : Detailed/Condensed

• Adds a further level of detail to the report, or condenses the report.

• F2: Period

• You can change the period of the report by specifying From/To dates.
• F3: Company

• If you have more than one company selected, this button enables you to switch
among them to display the new company data in the current screen format.
• F11: Features

• Use this button to navigate to the Company Features menu.

• The F11: Features menu is displayed as shown.
• F12: Configure
• This button enables you to define the display
of information in a report.
• For example, depending on the report
displayed you can specify whether it should
be in horizontal/vertical/detailed/condensed
format, show percentages, show gross profit,
show opening and/or closing balances,
change the periodicity, change the basis on
which information is sorted, and so on.
• F12 : Range
• This button enables you to filter the
information displayed based on monetary
values.
• For example, you can specify that you want
Tally to display only Vouchers having Batch
Names greater than 5,000 in a Day Book.
• F12: Value
• This button enables you to filter
vouchers .
• For example, you can specify that
you want vouchers having
Employee-Attendance Entries
with their Designation containing
all the details about the employee.

C : New Column
• This button enables you to add
and display another column in the
report to compare information.
• You may choose to include post-
dated transactions in the values
while adding the column, by
setting the option Types of Value
to show to Actuals with Post-
dated . You can also view reports
with the values of only the post-
dated transactions.
• A: Alter Column
• This button enables you to alter the details of a new column added
previously, for example, the date range.  Select the column to be
altered by positioning the cursor on it.
• D: Del Column
• Use this button to delete the columns, which you no longer wish to
have in the report.
• N: Auto Column
• Use this button to add multiple columns to a report.
• For example, add columns for each month, or to accommodate other
companies if more than one company has been selected. You can also
have a total column for some of the reports.

- By Sanjana
 TRiaL BALANCE
Trial Balance
• A trial balance is a summary of all ledger balances and helps in
checking whether the transactions are correct and balanced. If journal
entries are error-free and posted correctly to the general ledger, the
total of all debit balances should be equal the total of all credit
balances.

Objectives of preparing a Trial Balance

• It gives the balances of all accounts of the ledger. The balance of each
account can be found in a trial balance.

• It facilitates the preparation of profit and loss account and balance

sheet.

View Trial Balance

Go to Gateway of Tally > Display > Trial Balance . The Trial
Balance appears as shown below:
Configuration of Trial Balance in
Tally

• Press F12 to configure. The

configuration screen appears as shown
above.

After the configurations have been set,

the Trial Balance appears as shown above

- By Ravi
 Balance Sheet in Tally
The businessman will be anxious to know his financial position at the end of the year.
For this purpose, he prepares a statement that shows the financial position of the
business on a given date. This sheet is known as balance sheet. the balance sheet
consists of assets and liabilities. 
In the process of preparing a balance sheet,
 First, start with the assets side. Start capturing fixed assets ledgers like land and
buildings, furniture, etc., and then investments and all the current assets like cash,
Bank, Accounts receivables, Closing stock, etc.
 Next step is to bring all the ledgers having nature of liability under the liabilities side
of the balance sheet. Remember, if there is any adjustment like depreciation, bad
debts, etc. you can do it in the balance sheet as well. 
 Once you have captured all details into the balance sheet, the assets side should be
equal to the liabilities side of the balance sheet. Only then, your balance sheet is
arithmetically correct.  
 CLASSIFICATION OF ASSETS 
Fixed Assets: Fixed assets are the assets which are acquired and held permanently and used in the business
with the objective of making profits.
Eg: land, Buildings etc.
Current assets: Current assets are those assets that can be converted into cash within one year.
Eg: Cash, Bank balance, Deposits.
Tangible assets: tangible assets have definite physical shape or identity and existence ; they can be seen, felt
and have volume.Tangible assets can be both fixed assets and current assets.
Eg: Cash, Stock, Land etc.
Intangible assets: An intangible asset is an asset that is not physical in nature. Intangible assets exist in
opposition to tangible assets.
Eg: Goodwill, Patents, Copyrights.
Fictitious assets: Fictitious assets can be defined as fake assets, which are normally used to record assets that
do not have physical substance.
Eg: Past accumulated losses, Discount on issue of shares.
Wasting assets: The value of wasting assets declines over the period of time and the asset will not be put to use
also the scrap value of the asset .becomes very low. It has a declining value but the life span of the asset is fixed.
CLASSIFICATION OF LIABILITIES
A Liability is an amount for which a business firm is ‘liable to pay’ legally. All the amounts which are
claims by outsiders on the assets of the business are known as liabilities. They are credit balances in
ledger. liabilities are classified into four categories as given below.
• Owner’s capital: capital is the amount contributed by the owners of the business. In addition to
initial capital introduced, proprietors may introduce additions capital and withdraws some amounts
from business over a period of time.it is also called as net worth.
• long term liabilities: A long-term liability is an obligation resulting from a previous event that is
not due within one year of the date of the balance sheet (or not due within the company's operating
cycle if it is longer than one year). Long-term liabilities are also known as noncurrent liabilities.
• Current liabilities: Current liabilities are a company's short-term financial obligations that are
due within one year or within a normal operating cycle. Current liabilities are typically settled using
current assets, which are assets that are used up within one year. Examples are bills payable, etc.
• Contingent liabilities: these liabilities will result into liabilities only if certain events happen.
Examples are discounted bills which are dishonored , unpaid , calls on investments.
Display of balance sheet

A balance sheet is a financial statement that reports a firm’s

financial position at a specific time. The term balance sheet
implies that a report shows the balance between the two
figures. It shows a balance between the assets of a firm and the
owners funds. The fundamental accounting equation
applicable is therefore assets = liabilities + owner’s equality. In
tally balance sheet is automatically generated and shown in
the” gateway of tally”.
• To view the balance sheet in tally
• 1. Open tally program
• 2. Select your company
• 3. Select desktop under gateway of tally
• 4. Select balance sheet. After you select balance sheet then
the screen shall appear as under

- By Vamshi
Schedule VI Balance Sheet in Tally

• Tally provides the option of displaying Balance Sheet according

to Revised Schedule VI of Companies Act 1956 ,which is similar
to schedule III of New Companies Act 2013.For this purpose
there is a button on the side button panel of Balance Sheet of
Tally. By clicking this button, Balance Sheet automatically get
converted into Revised Schedule VI Performa.
Configuration of Balance Sheet in Tally
Go to Gateway of Tally > Audit & Compliance > Financial
Statements > Balance Sheet .
Click F9: Master Config or press Alt+F9 . The
Schedule VI Master Configuration report
appears:

Button options in Schedule VI

Configuration - Balance Sheet
● F1: Detailed : Click F1 : Detailed or
press Alt+F1 to view a detailed Schedule
VI Master Configuration report:
● F4: Group : Click F4 : Group or press F4 to view the
Schedule VI Master.
Configuration for a specific Group.
● F5: Led-wise : Click F5 : Led-wise or press F5 to view the
Schedule VI Master.
Configuration for every Ledger.
● Ctrl+F10 : Restore Def. : Click on Ctrl+F10 : Restore
Def. or press Ctrl+F10 to undo any reclassifications done to the
Tally Groups.
● F9: Inv Reports : Click F9 : Inv Reports or press F9 to
navigate to the default Inventory Reports like Godown
Summary , Movement Analysis , Stock Summary and so
on.
● F10: Acc Reports : Click F10 : Acc Reports or press F10 to
navigate to the default Accounting Reports like Balance
Sheet , Cash Flow , Trial Balance and so on.
● F10 : Audit Reports : Click F10 : Audit Reports or
press Alt+F10 to navigate to the other Audit
Reports within Statutory Audit .
● Ctrl+F9: Rename Heads : Click on Ctrl+F9 : Rename
Heads or press Ctrl+F9.
The Configuration Schedule VI Heads report appears:
- By Rahul
 Profit & loss a/c
•The businessman is interested in knowing whether is business is running on profit or loss. And in these profit and loss account the main aim is to know
the business is going in the right way or in right time.
Trading Account:
To know the trading results of the business on account is prepared at end of the accounting period which is called trading account.
1) Opening stock :

The stock at the beginning of the year is called opening stock. It may include raw materials, work in progress and finished goods, opening stock is the
closing stock as per the last balance sheet.

2) Purchase:
Any materials and goods which are used for carriage inward and royalty on productions and these examples are factory rent, wages, import duty,
custom duty, oil, grease &wages and salaries.

A)Sales:
Sales are made during the year is called sales of goods. If sales return subtracted from the gross sales the balance is known as net sales.
 
B)Closing stock: 
The unsold goods which are lying in the godown at the end of the accounting year is known as closing stock.
 If credit side total is more then it will be in gross profit & if debit side total is more then it will be in gross loss.
1)Gross loss:
Gross loss is the first item appearing on the debit side of profit & loss account.
2)operating expenses:
These expenses are incurred to operate the business efficiently and they are incurred in running the organization.
Operating expenses include administration, selling, distribution, depreciation and maintenance expenses.
 

3)Non-Operating expenses:
These expenses are not directly associated with day to day operations of the business concern. They include loss on
sale of assets, extraordinary losses, etc.
A) Gross profit:
It is the first item appearing on the credit side of profit and loss account.
B) operating incomes:
These incomes are incidental to business and earned from usual business carried on by the concern.
Eg: discount received & commission received.
C) Non- operating incomes: 
These incomes are not related to the business carried on by the firm.

Eg: profit on sale of fixed assets & refund of taxes.

Display of profit and loss account in tally:
 
Profit and loss account or income statement is a periodic statement, which
shows the net result of business operations for a specified period. The profit &
loss account in tally erp.9 displays the information based on the default
primary groups. It is updated instantly with every transactions / voucher that is
entered and saved.
1)Open tally program
2)Select your company
3)Select “Display” under gateway of tally
4)Select “profit & loss account ”. After you select profit &loss a/c then the
screen appears as
 
Configuration of profit and loss a/c in tally:
• Tally give option of configuration of profit & loss a/c according to need
to the user and for this configuration of p&l a/c in tally there is a
shortcut key F-12 after you select configuration.
 
• After you press enter on last command then format of your profit and
loss a/c will change into parts it will show trading a/c and profit &loss
a/c in two parts. Now, you can see gross profit and net profit separately.
 
• If you see the profit & loss a/c in above format, you will find that all
the ledger accounts are shown in groups.

Eg: direct expenses, indirect expenses now, you want to see the profit and
loss account in more detailed manner then you just select “Detailed” on
screen.

- By J.
Siddartha
 SCHEDULE VI PROFIT & LOSS A/c
The statement of Profit & Loss A/c as per the
Revised Schedule VI is available in Tally.ERP 9.
• On this page
• View Schedule VI Profit and Loss A/c
• Exceptions in Schedule-VI Profit & Loss A/c
• Button options in the Schedule VI Profit and Los
s A/c
• View Schedule VI Profit and Loss A/c
Go to Gateway of Tally > Audit &
Compliance > Financial Statements > Profit &
Loss A/c 
● The report displays the Schedule VI Income and Expense Heads with the respective
balances. Default Tally Accounting Groups are automatically linked to their respective
Schedule VI Income/Expense Heads. The Ledgers that are classified under these
Accounting Groups to get linked to the Schedule VI Heads. This is a broad
classification provided by Tally.ERP 9. Users can reclassify the Groups/Ledgers under
other Schedule VI Income/Expense Heads as required
● Schedule VI Income/Expense Heads consisting of Groups/Ledgers that have not been
categorised by the user, will be displayed as Ungrouped and in red, to bring the same to
attention.
● Press Enter on the required Schedule-VI head/sub-head to view the respective Note
Summary report.
● Total value of Ledgers grouped under Exceptional Items from 
Schedule VI Configuration screen will be captured for the same Head on the face of the
Statement of Profit and Loss.
● Total value of Ledgers grouped under Extraordinary Items from 
Schedule VI Configuration screen will be captured for the same Head on the face of the
Statement of Profit and Loss.
● Where F11 : Statutory Features are enabled and used, Tally.ERP 9 will
automatically categorise VAT and CST enabled Sales Ledgers under Sale of Products,
and Service Tax enabled Ledgers under Sale of Services.
Exceptions in Schedule-VI Profit & Loss A/c
• In the Schedule-VI Profit & Loss A/c all the possible
exceptions will be displayed in red for users’ attention.
• Previous Year Ungrouped : Any Ledger/Group present
only in Previous Year that remain unclassified under
Schedule VI Groups, will be shown under this Exception.
• Difference in Bifurcation : This exception occurs where
Ledgers have been mapped to Schedule VI Heads using
the Bifurcate Balance option. If their opening balances
have been modified, or transactions have been passed
using these ledgers, this exception occurs, and is displayed
as Difference in Bifurcated Balance
• Negative Balance of Stock : This exception indicates that
the inventory of a business has negative balance.
• Button options in the Schedule VI Profit and Loss A/c
● F1 : Detailed : Click F1 : Detailed or press Alt+F1 to
view the Profit & Loss A/c in detailed form.
● F2: Period : Click F2 : Period or F2 to change the selected
period for the Audit Year (Current Year). If two separate companies
are loaded or if the multiple years transactions are in the same data
then the Period for the Previous Year is also changed accordingly.
● F3: Hide Prev. Year : Press F3 or click on F3: Hide Prev.
Year to display the Previous Year column while displaying report.
This will be highlighted only when the company has more than one
year data.
● Ctrl+O: Copy Classify : Click Ctrl+O : Copy Classify or
press Ctrl+O to copy the configurations of the Schedule-VI
Balance sheet from another Company on Tally.ERP 9.
● Ctrl+F3: Compare Cmp : Click Ctrl+F3 : Compare Cmp or
press Ctrl+F3 to load the Company having previous year's data .
Note: If the data for both the years is there in the same Company,
then it is not required to load the other Company.
For the Company with two years data, system will check for the
Vouchers passed on any Day in the month March to determine the
Audit Year.
The Schedule-VI Profit & Loss A/c with two years' data is as
shown:
●  F8: Note. No. : Click F8 : Note No. or press F8 for 
Note Number Configuration .
●  F9: Master Config. : Click F9 : Master Config. Or
press Alt+F9 to view the Schedule VI Master Configuration .
●  A : Additional Info. : Place the cursor on a Schedule VI Head
and click on A : Additional Info. or press Alt+A to go to the
respective Additional Details report.
●  N : Show Negative Stock : Press Alt+N to view Stock
Items having negative balances.
●  F10: Audit Reports : Click on F10 : Audit Reports or
press Alt+F10 to navigate to the other Audit
Reports within Statutory Audit .
●  F12: Configure : Click F12 : Configure or press F12 to
change the default display for the Schedule-VI Profit & Loss
A/c report.
Scale Factor for Values: Select the required Scale Factor from
Crores, Hundreds, Lakhs, Millions, Ten Lakhs, ten Millions, Ten
Thousands, Thousands or Default for displaying the balances in
the Schedule-VI Profit and Loss A/c.

- By Harish
 TYPES OF RATIOS

Type #1 – Profitability Ratios

• This type of ratio analysis suggests the returns
generated from the Business with the Capital Invested.
Gross Profit Ratio
• It represents the company’s operating profit after adjusting
the cost of the goods that are sold. The higher the gross profit
ratio, the lower the cost of goods sold, and the greater
satisfaction for the management.

Gross Profit Ratio Formula = Gross Profit/Net Sales*100

Net Profit Ratio
• It represents the company’s overall profitability after
deducting all the cash & no cash expenses: the higher the net
profit ratio, the higher the net worth, and the stronger the
balance sheet.

Net Profit Ratio Formula = Net Profit/Net Sales*100

Operating Profit Ratio
• It represents the soundness of the company and
the ability to pay off its debt obligations.
Operating Profit Ratio Formula = Ebit/Net sales*100
Return on Capital Employed
• ROCE represents the company’s profitability with
the capital invested in the business.
Return on Capital Employed Formula = Ebit/Capital
Employed.
Type #2 – Solvency Ratios
• These ratio analysis types suggest whether the company is
solvent & can pay off the lenders’ debts or not.
Debt-Equity Ratio
• This ratio represents the leverage of the company. A low d/e
ratio means that the company has a lesser amount of debt on
its books and is more equity diluted. A 2:1 is an ideal debt-
equity ratio to be maintained by any company.
Debt Equity Ratio Formula = Total Debt/Shareholders Fund.
• Where, total debt = long term + short term + other fixed
payments shareholder funds = equity share capital + reserves
+ preference share capital – fictitious assets.
Interest Coverage Ratio
• It represents how many times the company’s profits can cover
its interest expense. It also signifies the company’s solvency
shortly since the higher the ratio, the more comfort to the
shareholders & lenders regarding servicing of the debt
obligations and smooth functioning of the business
operations of the company.
Interest Coverage Ratio Formula = Ebit/Interest Expense
Type #3 – Liquidity Ratios
These ratios represent whether the company has enough
liquidity to meet its short-term obligations or not. Higher
liquidity ratios are more cash-rich for the company .
Current Ratio
• It represents the company’s liquidity to meet its
obligations in the next 12 months. Higher the current
ratio, the stronger the company to pay its current
liabilities. However, a very high current ratio signifies
that a lot of money is stuck in receivables that might
not be realized in the future.
Formula = Current Assets / Current Liabilities

Quick Ratio
• It represents how cash-rich the company is to pay off
its immediate liabilities in the short term.
Quick Ratio Formula= Cash & Cash Equivalents + Marketable
Securities + Accounts Receivables/Current Liabilities
Type #4 – Turnover Ratios
These ratios signify how efficiently the assets and
liabilities of the company are used to generate
revenue.
Fixed Assets Turnover Ratio
• Fixed asset turnover represents the efficiency of
the company to generate revenue from its assets.
In simple terms, it is a return on the investment
in fixed assets. Net Sales = Gross Sales – Returns.
Net Fixed Assets = Gross Fixed Assets –
Accumulated Depreciation.
• Average Net Fixed Assets = (Opening Balance of
Net Fixed Assets + Closing Balance of Net Fixed
Assets)/2.
Fixed Assets Turnover Ratio Formula = Net Sales /
Average Fixed Assets
Inventory Turnover Ratio
• The Inventory Turnover Ratio represents how
fast the company can convert its inventory into
sales. It is calculated in days signifying the time
required to sell the stock on an average. The
average inventory is considered in this formula
since the company’s inventory keeps on
fluctuating throughout the year.
Inventory Turnover Ratio Formula = Cost of Goods
Sold/Average Inventories
Receivable Turnover Ratio
• Receivables Turnover Ratio reflects the efficiency
of the company to collect its receivables. It
signifies how many times the receivables are
converted to cash. A higher receivable turnover
ratio also indicates that the company is collecting
money in cash.
Receivables Turnover Ratio Formula = Net Credit
Sales/Average Receivables
Type #5 – Earning Ratios
This ratio analysis type speaks about the company’s returns for its
shareholders or investors.
P/E Ratio
• PE Ratio represents the company’s earnings multiple and the market
value of the shares based on the pe multiple. A high P/E Ratio is a positive
sign for the company since it gets a high valuation in the market for m&a
opportunities.
P/E Ratio Formula = Market Price per Share/Earnings Per Share
Earnings Per Share
• Earnings Per Share represents the monetary value of the earnings of each
shareholder. It is one of the major components looked at by the analyst
while investing in equity markets.
Earnings Per Share Formula = (Net Income – Preferred Dividends) / (Weighted
Average of Shares Outstanding)
Return on Net Worth
• It represents how much profit the company generated with the invested
capital from equity & preference shareholders both.
Return on Net Worth Formula = Net Profit/Equity Shareholder Funds. Equity
Funds = Equity+Preference+Reserves -Fictitious Assets.
 
- By
 BOOKS AND
REPORTS
BOOKS
Books of account record the transaction details as
entered. Although items are posted too many different
ledgers, Tally.ERP.9 brings all the transactions of a
particular category together into a book of account for
viewing and printing.
The most common books of accounts are:
1.Cash book
2.Bank book
3.Purchase register
4.Sales register
5.Day book
1.Cash book
 A cashbook records the cash transactions of an
organisation that takes place within a financial
year.
 Go to Gateway of Tally > Display > Account Books >
Cash Book.

2.Bank book:
A Bank book records the bank related
transaction of an organisation that takes place
within a financial year.
Gateway of Tally > Display > Account Books > Bank
Book.
3.Purchase register
A purchase register displays the information on the
periodic purchases of a business concern. Purchase
register shows the details of the transactions that are
of purchase nature.
Gateway of Tally > Display > Account Books > Purchase
register.

4.Sales register
A sales register displays the information on the
periodic sales of a business concern. Sales register
shows the details of the transactions that are of sales
nature.
Gateway of Tally > Display > Account Books > sales
register.
5.Day book:
A daybook is a book of original
entry in which an accountant
records transactions by date, as
they occur.
Gateway of Tally > Display >
Daybook
REPORTS
Tally provides several different reports
which can be utilized by most businesses to
evaluate the efficiency of their various
processes. Reports such as the Balance
sheet, Profit and loss etc are some common
business financial reports available in Tally.
The most common reports of accounts are:
1.Balance sheet.
2.Profit & loss a/c.
3.Stock summary.
4.Ratio analysis.
1.Balance sheet
A balance sheet is a financial statement that reports a
company's assets, liabilities, and shareholder equity.
The balance sheet is one of the three core financial
statements that are used to evaluate a business. It
provides a snapshot of a company's finances (what it
owns and owes) as of the date of publication.
Gateway of Tally > Balance Sheet

2.Profit & Loss a/c

The Profit & Loss A/c is a periodic statement, which
shows the net result of business operations for a
specified period. All the expenses incurred and
incomes earned during the reporting period are
recorded here.
Gateway of Tally > Profit & Loss a/c
3.Stock Summary
Stock Summary is a statement of the stock-in-hand on a
particular date. It is one of the primary inventory statements
and updates the stock record as and when transactions are
entered.
Gateway of Tally > Stock Summary

4.Ratio Analysis
Ratio Analysis helps you compare different sets of financial
data. This comparison gives an understanding of the financial
position of a business unit. The Ratio Analysis report consists
of Principal Groups and Principal Ratios. The Principal Groups
are the key figures that give meaning to the ratios.
Gateway of Tally > Ratio Analysis
- By Ravinder
 RECEIPTS AND PAYMENTS
• A receipt and payment account is a summarized cash book (cash and bank) for a given
period.
• This is simply a summary of the cash transactions as in the cash book, analyzed and
classified under suitable headings, including the opening and closing balances.
• Non-profit organizations prepare receipt and payments account and the end of the year.
With help of this account and some information, an income and payment account is
prepared to disclose the true result of non-profit organizations.
• All the information necessary for the preparation of this account is available from cash
book.
• Its closing balance indicates cash in hand and cash at bank at the year end.
Characteristics of Receipt and Payments Amount
All cash receipts during the whole year are recorded on its left-hand side, while
all the cash payments during the whole year written on its right-hand side,
arranged in a classified form.
 Only cash transactions are recorded in this account.
 Its closing balance indicates closing cash in hand and closing cash at bank.
 It is prepared on the last day of the accounting year in manual accounting.
However, in Tally, it is readily available.
• TALLY ERP 9, has Receipts and payments report that displays the cash flow
summary of an organization with cash and bank balances for a specified
period.
• The report begins with the opening Cash and Bank balance at the
commencement and ends with closing cash and bank balance, in contrast to
Cash flow report that does not consider the Opening Balance of cash.
• On the report, the receipts are presented on the debit side while payments are
on the credit side. Most importantly, the report displays up to date information
from the date of opening the Cash book till the last entry of the date specified.
To view Receipts and Payments
report in Tally ERP 9,
 Go to Gateway of Tally,
 Enter Display,
 Click Receipts and Payments,
 The Receipts and Payments
Account is displayed,
 Press F2. Period to change period
is required,
 Select the organized group and
press Enter to go to Receipts and
Payments Summary Reports.
- By Tarun
Purchase & Sales Register
• A Purchase Register displays the information on
the periodic purchases of a business concern.
Purchase register helps in analysing the details of
movement of purchased goods to various godowns,
on the basis of which the stock movement at each
godown is determined. You can also view the 
columnar register for purchase. You can view this 
report in browser .
• Purchase returns made during a year can also be
traced. The parties to whom the purchase returns
have been made and the causes thereof can be
analysed to draw conclusions on the supplier and
the quality of purchases made.
1. Go to Gateway of Tally > Display > Account
books > Purchase  Register . The Purchase
Register appears as shown:
2. You can configure the report by
pressing Ctrl+F12 to view the
following information.
3. In the Purchase Register , select
the required month and press Enter.
4. Click F5: Columnar and set the
options as required, to view the
purchase columnar register. Set the
options Show supplier invoice
number and Show supplier invoice
date to view these details in separate
columns.
5. Press Enter to view the register. Separate columns
will be displayed for supplier invoice number and date
as shown:
To change voucher type press F4 at the voucher
register screen and select the required voucher type.
To view the Post-dated Transactions report for the
specified period, click T : Post-Dated .
Post-dated Transactions Report
• The Post-dated Transactions report displays month-
wise list of transactions recorded with post-dated
cheque entries.
• Drill down from one of the months in
the Particulars column. The Post-dated
Transactions report appears as shown:
The report displays information as follows:
● Date: This column displays the date provided in the voucher while recording the post
-dated transaction in Tally.ERP 9.
● Type: This column will indicate if a post-dated cheque has been issued or received.
● Bank: This column displays the bank ledger that has been used to record the transaction.
● Particulars: This column displays the name of the party ledger that has been used to
record the transaction.
● Inst. No.: This column displays the instrument number entered in the Bank
Allocations screen
while recording the transaction.
● Inst. Date: This column displays the instrument date entered in the Bank
Allocations screen
while recording the transaction. That is, the date provided on the face of the cheque.
● Status: This column indicates if the current status of the cheque. There are two types of
status for a cheque.
o Regularized, if the date of the cheque is equal or more than the Date of Last
Entry indicated in the Gateway of Tally.
o Pending, when the cheque date is lesser than the Date of Last Entry .
Sales Register (Sales Day Book)
Tally.ERP 9 provides a comprehensive day book for sales
information in the Sales Register.

• To view Sales Register

•  Go to Gateway  of Tally > Display > Account
 books > Sales Register. The Sales Register screen
is displayed  as shown below:
• By default, all registers display Monthly
 Summary with transactions  and closing balances.
• Drill  down  into  each  month  to view  the  sales
 voucher  register  for  that  month and to go to the
accounting  voucher alteration  (secondary)  screen.
• Select a month and press Enter to see the List of All
Sales Voucher  Register , as shown below:
•A list of all sales vouchers pertaining to the month
you selected is displayed.  The options in the button
bar can be used to change the display according to
your preferences. You can change the period of the
report as well as the depth of information.
•Use F12: Configure to see the report with some or
all of the following information, namely Narrations,
Bill-wise details, Cost Centre details and Inventory
details.
Click F1 : Detailed to view the reports in detailed
format from within the Sales Voucher
Register screen.
To view the Post-dated Transactions report for the
specified period, click T : Post-dated Rep
- By Ayush Nair
 RECEIVABLES AND PAYABLES
Introduction of Bills receivable
A bill receivable is a bill of exchange drawn by a vendor on its customer/buyer. It serves as proof of debt. When
the drawee (customer) accepts the bill and sends it back to the drawer (vendor), it becomes a bill receivable for
the drawer as the money is receivable for him. On the other hand, it becomes a bill payable for the drawer as it is
a liability for him.
The drawer can make the following use of a bill receivable:
• He can retain the bill till maturity and collect the money from the drawee.
• He can endorse the bill in favour of his creditors.
• He can discount the bill with a bank.
• In simple terms, it is a legal arrangement between the seller and buyer to recover a debt.
Displaying Bills Receivable
Bills receivable is a bill of exchange on
which payment is expected to be received
later. Bills receivable report in TallyERP 9
displays all the outstanding receivables
during a specified period.
To view the receivables screen
Go to Gateway of Tally > Display > Statements
of Accounts > Outstandings > Receivables . The
Bills Receivable screen is displayed as shown
below: 
Introduction of Bills
payable
• Bills Payable is a bill of exchange on
which payment is expected to be made
at a later date.
• Bills payable report in Tally. ERP9
displays all the outstanding payable
during a specified period.

Displaying Bills Payable

To view the payable screen :
 Go to Gateway of Tally > Display >
Statements of Accounts > Outstanding
> Payables. 

- By Bhanu Chander
 FUNDS FLOW & CASH FLOW
Cash Flow in Tally ERP 9
• Cash Flow is the inflow and outflow of cash during an
accounting period.
• A cash flow statement concentrates on the transactions that
have a direct impact on cash. It deals with the inflow and
outflow of cash between two Balance Sheet dates. That is, it
explains the changes in cash position between the two
periods. Here the term cash stands for cash and bank
balances.
• Cash flow statements can also be used as receipts and
payments statement. This is particularly useful for
businesses such as Non-Profit Organizations where receipts
and payments statements need to be generated.
• 1. Go to Gateway of Tally > Display > Cash/Funds
Flow > Cash Flow.
• 2. Press Alt+F2, change the period - From: 1-4-2008 to
30-9-2008. The Cash flow statement is displayed as
shown:
• For Quarterly Cash Flow statement:
● Change Period by pressing F2: Period and set the period, e.g., 1-4-08 to 30-06-
2008.
● Select the option Auto Column from the button bar.
● You can also select Quarterly (or Monthly or any other period) from the
list. The Cash Flow screen appears as shown below:
Funds Flow Statement in Tally ERP 9
• A Fund Flow statement is a report, which explains the To view Funds Flow
movement of funds during an accounting period.
1. Go to Gateway of Tally > Display > Cash/Funds
• This statement consists of two parts Flow > Funds Flow . 
● Sources of funds 2. Press Alt+F2, change period - From: 1-04-2008 to
31-8-2008. The funds flow statement is displayed
● Application of funds
as shown below:
• The difference between the two shows the net change
in the working capital during the period. Only those
transactions that affect the net working capital of the
firm, find place in this statement.
• The Fund Flow statement is a supplement to the two
principal financial statements. While supplementing the
position statement, it describes the sources from which
additional fund were derived and for which these funds
were used. The transactions, which increase working
capital, are sources of funds and the transactions, which
decrease working capital, are application of funds.
 
3. A Monthly Funds Flow Summary with
the movement of working capital for
each month is displayed. It shows the
Opening and Closing Balances of each
month with a column for Funds Flow.
4. Select a month and press Enter to drill
down.
5. Select F1: Detailed to see the funds flow
for the selected month.
 

- By Varshith
INTRODUCTION & FEATURES OF
TALLY
Introduction to tally
• Tally Accounting is financial software that helps in business financial purposes. It is used
for recording the daily business data of a particular company. The name of the business
solution is derived from the word “tally”, which means to count and keep the record.

• Tally accounting software provides a solution around inventory management, stock

management, invoicing, purchase order management, discounting, stock valuation
methodology, etc

• The latest version of the software is Tally Prime released in November 2020 & Tally ERP 9,
which was released in 2009.
 Features of tally
The features of Tally are as follows:
 Tally is largely considered the best because it is easy to use, has
no codes, robust and powerful, executes in real-time, operates at
high speed, and has full-proof online help.
 Tally is also called multi-lingual tally software because Tally
ERP 9 supports multi-languages. In Tally, accounts can be
maintained in one language, and reports can be viewed in other
languages.
 Using the Tally, you can create and maintain the accounts up to
99,999 companies. 
 Tally has the synchronization feature, so the transaction which is
maintained in multiple locations offices can be updated
automatically.
 Tally is used to generate consolidated financial statements as per
the requirements of the company.
 Tally can manage single or multiple groups. 
 Tally software is used to handle financial and inventory
management, invoicing, sales and purchase management,
reporting, and MIS.
 
- By G. Siddarth
- Presented By
B.Com Honours 3rd Year