Tally Assignment

Accounting Package - Tally
Basic concept of accounting

Accounting : It is an art of recording, classifying and summarizing in significant manner and in terms of
money, transactions and events which are of financial character and interpreting the results thereof.
Business Transaction : A business transaction is “The movement of money and money’s worth form
one person to another”. Or exchange of values between two parties is also known as “Business
Transaction”.
Purchase : A purchase means goods purchased by a businessman from suppliers.
Sales : Sales is goods sold by a businessman to his customers.
Purchase Return or Rejection in or Outward Invoice : Purchase return means the return of the full or a
part of goods purchased by the businessman to his suppliers.
Sales Return or Rejection out or Inward Invoice : Sales return means the return of the full or a part of
the goods sold by the customer to the businessman.
Assets : Assets are the things and properties possessed by a businessman not for resale but for the use
in the business.
Liabilities : All the amounts payable by a business concern to outsiders are called liabilities.
Capital : Capital is the amount invested for starting a business by a person.
Debtors : Debtor is the person who owes amounts to the businessman.
Creditor : Creditor is the person to whom amounts are owed by the businessman.
Debit : The receiving aspect of a transaction is called debit or Dr.
Credit : The giving aspect of a transaction is called credit or Cr.
Drawings : Drawings are the amounts withdrawn (taken back) by the businessman from his business for
his personal, private and domestic purpose. Drawings may be made in the form cash, goods and assets
of the business.
Receipts : It is a document issued by the receiver of cash to the giver of cash acknowledging the cash
received voucher.
Account : Account is a summarized record of all the transactions relating to every person, every thing or
property and every type of service.
Ledger : The book of final entry where accounts lie.
Journal entries : A daily record of transaction.
Trail Balance : It is a statement of all the ledger account balances prepared at the end of particular
period to verify the accuracy of the entries made in books of accounts.
Profit : Excess of credit side over debit side.
Profit and loss account : It is prepared to ascertain actual profit or loss of the business.
Balance Sheet : To ascertain the financial position of the business. It is a statement of assets and
liabilities.
Page 1 of 90
Types of accounts
Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions
which the businessmen deal.
Principles: Debit the receiver
Credit the giver
Real Account: These are the accounts of things, materials, assets & properties. It has physical
existence which can be seen & touch.
Ex. Cash, Sale, Purchase, Furniture, Investment etc.
Principles: Debit what comes in
Credit what goes out
Nominal account: Nominal account is the account of services received (expenses and Losses) and
services given (income and gain)
Ex. Salary, Rent, Wages, Stationery etc.
Principles: Debit all expense/losses
Credit all income/ gains
Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting
software.
Procedure for creating company in Tally
Double click on Tally icon on desktop. Alt+F3 Company info-Create company.
Accounts Only : To maintain only the financial accounts of the company. Inventory (stock) management
is not involved in it.
Account with Inventory : This is the default option, which allows maintaining both the financial account
of the company as well as the inventory of the company.
Select Company : We can choose the company which is already created. Shortcut key - F1.
Shut Company : It is used to close the company which is opened. Shortcut key - Alt+F1.
Alter : It is used to make alterations in the company creation like name, date, maintain etc.
Quit : Exits from Tally. 1. Click on quit button.
2. Esc, Esc, Esc and enter.
3. Ctrl+Q
Page 2 of 90
Short cut keys

Alt+F3 Company information menu
Enter To accept information typed into a field.
To accept a voucher or master.
To get a report with further details of an item in a report.
Esc To remove what has been typed into a field.
To exit a screen.
To indicate you do not want to accept a voucher or master.
Ctrl+A To accept a form wherever you use the key combination the screen or report will be
accepted as it is on this screen.
Ctrl+Q It quits the screen without making any changed to it.
Alt+C To create a master at a voucher screen.
When working within an amount field presses Alt+C to act as a calculator.
Alt+D To delete a voucher.
To delete a master.
Ctrl+Enter To alter a master while making an entry or viewing report.
F2 Date
Alt+F2 Change period
Alt+F1 To see detail
F11 Features company
F12 Configuration options are applicable to all the companies in a data directory.
Ctrl+N Calculator screen.
Ctrl+V Voucher mode (Cr. Dr)
Invoice mode (name of item, rate, quantity, and amount)
Gateway of tally-Accounts info-Group

Bank account Direct income
Bank Od account Indirect expense
Branch/division Indirect income
Capital account Duties and tax
Cash in hand Fixed asset
Current asset Investment
Current liability Loans and advance
Deposit Loan (liability)
Direct expenses Miscellaneous expenses
Page 3 of 90
Provisions Stock in hand

Retained earning Sundry debtor’s
Reserves and surplus Sundry creditors
Purchase account Suspense
Sales account Unsecured account
Secured loan
Meaning:
Current asset : It is converted into cash with in a year. Ex. Bills receivable
Direct expenses : These are the expenses which are directly related to manufacturing of goods.
Ex. Wages, factory rent, heating, lighting etc
Indirect expense : These are the expenses which are indirectly related to manufacturing of goods.
Ex. Salary, rent, stationery, advertisement, printing
Depreciation : Decrease the value of the asset.
Sundry debtors : The person who is the receiver or customer
Sundry creditors : The person who gives or supplier.
Expenses Outstanding or Unpaid expenses or Expenses due : Expenditure incurred during current
year but the amount on which is not yet paid. (Added to the expenditure on the debit side and entered on
the liability side.)
Income received in advance or Income received but not earned
Income received during the current year but not earned or a part of which relates to the next year.
(Deducted form the concerned income on the credit side and entered on the liability side)
Prepaid advance or Expenses or Prepaid expenses
Expenditure paid during current year but not incurred or a part of which relates to the next year is called
expenditure prepaid. (Deducted form the concerned expenditure on the debit side and entered on the
assets side)
Income outstanding or income earned but not received or Income accrued
Income outstanding means income earned during the current year but the amount on which is not yet
received (added to the concerned income on the credit side and entered on the asset side)
Gateway of Tally-Accounts info-ledger-create
Ledger Group Direct

Fright charges
expenses
Opening stock Stock in hand
Direct
Purchase Carriage inwards or Purchases
Purchase expenses
account
Direct
Purchase Cartage and coolie
expenses
Purchase return account
Direct
Octroi
expenses
Page 4 of 90
Direct Indirect
Manufacturing wages Sundry expenses
expenses expenses
Indirect
Discount allowed
Direct expenses
Coal, gas, water
expenses
Indirect
Carriage outwards or sales
Direct expenses
Oil and fuel
expenses
Indirect
Traveling expenses
Factory rent, insurance, Direct expenses
electricity, lighting and heating expenses
Indirect
Advertisement
Sales Sales account expenses
Indirect Indirect
Salary Bad debts
expenses expenses
Indirect Indirect
Postage and telegrams Repair renewals
expenses expenses
Indirect Indirect
Telephone charges Motor expenses
expenses expenses
Indirect Indirect
Rent paid Depreciation on assets
expenses expenses
Indirect Indirect
Rates and taxes Interest on investment received
expenses income
Indirect Indirect
Insurance Interest on deposit received
expenses income
Indirect Indirect
Audit fees Interest on loans received
expenses income
Indirect Indirect
Interest on bank loan Commission received
expenses income
Indirect Indirect
Interest on loans paid Discount received
expenses income
Indirect Indirect
Bank charges Rent received
expenses income
Indirect Indirect
Legal charges Dividend received
expenses income
Indirect Indirect
Printing and stationery Bad debts recovered
expenses income
Indirect
Profit by sale of assets
income
Indirect
General expenses
expenses Indirect
Sundry income
income
Page 5 of 90
Loan Land and building Fixed asset

Loan from others
Liabilities
Leasehold property Fixed asset
Loan
Bank loan Patents Fixed asset
Liabilities
Bank overdraft Bank OD Goodwill Fixed asset
Current Prepaid expenses Current asset

Bills payable
Liabilities
Income outstanding Current assset
Sundry
Sundry creditors
creditors
Mortgage loans Secured loans
Current
Expense outstanding
Liabilities
Current
Income received in advance
Liabilities
Current
Other liabilities
Liabilities
Capital
Capital
account
Capital
Drawings
account
Cash in hand Cash in hand
Cash at bank Bank account
Fixed deposit at bank Deposit
Investments Investments
Bills receivable Current asset
Sundry
Sundry debtors
debtors
Closing stock Stock in hand
Stock of stationery Current asset
Loose tools Fixed asset
Fixtures and fittings Fixed asset
Furniture Fixed asset
Motor vehicles Fixed asset
Plant and machinery Fixed asset
Page 6 of 90

Trading account : Buying and selling of goods.

Dr. Receiving aspect Giving aspect Cr.
Direct expenses Amount Direct Income Amount
To Opening stock xxx By Sales xxx
To Purchases xxx By (-)Sales return xxx
To (-)purchase return xxx By Closing stock xxx
To Freight charges xxx
To Cartage and coolie xxx
To Lorry hire xxx
To Manufacturing expenses xxx
To Wages xxx
To Factory rent, fuel power xxx
To Gross profit (transfer to profit

xxx
and loss account)
To Profit and loss account : Actual profit and loss of the business
Indirect expenses or payments Amount Indirect income or receipts Amount
To Salary xxx By Gross profit xxx
To Postage and Telegram xxx By Interest on investment received xxx
To Telephone charges xxx By Interest on deposit received xxx
To Rent paid xxx By Interest on loans received xxx
To Rate and taxes xxx By Discount received xxx
To Insurance paid xxx By Discount received xxx
To Interest on bank loan xxx By Rent received xxx
To Bank charges xxx By Bad debts received xxx
To Printing and stationery xxx By Net loss xxx
To Discount allowed xxx
To Advertisement
Page 7 of 90

To Carriage outward (sales)
To Depreciation on assets
To General expenses
To Traveling
To Bad debts
To Net profit
Balance sheet: Actual financial position
Liabilities Amount Assets Amount
Bank loan xxx Cash in hand xxx
Bank overdraft xxx Cash at bank xxx
Bills payable xxx Fixed deposit at bank xxx
Sundry creditors xxx Investments xxx
Expenses outstanding xxx Bills receivable xxx
Capital xxx Sundry debtors xxx
(-)drawings xxx Closing stock xxx
Net profit xxx Stock of stationery xxx
Furniture xxx
Plant machinery xxx
Land and building xxx
Motor vehicles xxx
Prepaid expenses xxx
Income outstanding xxx
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F4 Contra: Records funds transfer between cash and bank accounts.

Deposit into bank or Opened bank account Cr. Cash
Dr. Bank
Withdraw form bank Cr. Bank
Dr. Cash
F5 Payment: Record all bank and cash payments.

Paid or Give Dr.
Cr. Cash/bank (in case cheque)
F6 Receipt: Records all receipts into bank or cash accounts.

Received or Borrow or Take Cr.
Dr. Cash/bank (in case cheque)
F7 Journal: Records adjustments between ledger accounts.
F8 Sales: Records all sales.

Dr. Cash/party (incase of credit-party)
Cr. Sales
F9 Purchase: Records all purchase.

Cr. Cash/party (incase of credit-party)
Dr. Purchase
Page 9 of 90

Class Room Assignment No.1:-

0B
Create a company Milan Trade for the year 2009-10, and pass necessary Journal Entries
Journalize the following transactions
1. Commenced business with cash Rs.10, 000.
2. Deposit into bank Rs. 15,000
3. Bought office furniture Rs.3,000
4. Soled goods for cash Rs.2,500
5. Purchased goods form Mr X on credit Rs.2,000
6. Soled goods to Mr Y on credit Rs.3,000
7. Received cash form Mr. Y on account Rs.2,000
8. Paid cash to Mr X Rs. 1,000
9. Received commission Rs. 50
10. Received interest on bank deposit Rs. 100
11. Paid into bank Rs. 1,000
12. Paid for advertisement Rs.500
13. Purchased goods for cash Rs. 800
14. Sold goods for cash Rs. 1,500
15. Paid salary Rs. 500
Gateway of tally-Account info-Ledger-Create Gateway of tally – Accounting voucher
Sl. Type of
No Key Voucher Ledger Group account Principles Amount
Cr. Capital Capital account Personal Giver 10,000
1 F6 Receipt Dr. Cash Cash in hand Real Comes in 10,000
Cr. Cash Cash in hand Real Goes out 15,000
2 F4 Contra Dr. Bank Bank account Real Comes in 15,000
Dr. Office
furniture Fixed asset Real Comes in 3,000
3 F5 Payment Cr. Cash Cash in hand Real Goes out 3,000
Dr. Cash Cash in hand Real Comes in 2,500
4 F8 Sales Cr. Sales Sales account Real Goes out 2,500
Cr. X Sundry creditor Personal Giver 2,000

Purchase
5 F9 Purchase Dr. purchase account Real Comes in 2,000
Dr. Y Sundry debtors Personal Receiver 3,000
Cr. Y Giver 2,000
7 F6 Receipt Dr. cash Cash in hand Real Comes in 2,000
Dr. X Receiver 1,000
8 F5 Payment Cr. Cash Cash in hand Real Goes out 1,000
Page 10 of 90

Credit all
Cr. Commission Indirect income Nominal income 50
9 F6 Receipt Dr. cash Cash in hand Real Comes in 50
Cr. Interest on Credit all
bank deposit Indirect income Nominal income 100
10 F6 Receipt Dr. Bank Bank account Real Comes in 100
Cr. Cash Cash in hand Real Goes out 1,000
11 F4 Contra Dr. Bank Bank account Real Comes in 1,000
Dr. Indirect Debit all
Advertisement expenses Nominal expenses 500
12 F5 Payment Cr. Cash Cash in hand Real Goes out 500
Cr. Cash Cash in hand Real Goes out 800
Dr. purchase Purchase
13 F9 Purchase Cr cash account Real Comes in 800
Dr. cash Cash in hand Real Comes in 1,500
Debit all
Dr. salary Indirect expense Nominal expenses 500
15 F5 Payment Cr. Cash Cash in hand Real Goes out 500
Lab Assignment No.1.1:-

1B
Create a company ‘InfoSoft Pvt. Ltd.’ On 1-4-2006.

Pass the Journal Entry for the following transactions:-
1. Commenced business with Rs. 15000, goods of Rs. 3000 & Building Rs. 12000.
2. Purchase goods for Rs. 1000.
3. Sold goods to Pallavi for Rs. 15000.
4. Sold goods for Rs. 2000.
5. Paid office rent Rs. 200.
6. Paid cash to Dhanashi Rs. 500.
7. Received Commission Rs. 100.
8. Returned goods by Pallavi of Rs. 150.
9. Withdrawn Rs. 2000 for personal use.
10. Purchase Furniture for Rs. 10000.
11. Borrowed from Bank Rs. 8000.
12. Paid carriage on behalf of Sudesh Rs. 30.
13. Sold Building of Rs. 8000 for Rs. 7500.
14. Depreciation charged on all the assets @ 5% p.a.
15. Repaid loan to bank Rs. 3400.
16. Goods purchase from Kanji worth Rs. 1500.
17. Purchase Motor Car worth Rs. 8000 in exchange of Furniture worth Rs. 10000.
18. Sold half of the goods purchase from Kanji to Kalidas, getting profit of Rs. 15 on each Rs. 100.
Page 11 of 90

Class Room Assignment No.2:-

2B
Create a company ‘M/S Albert & Brothers’ for the year 01.04.2006 and books beginning from
01.05.2006 and pass the transactions considering the following
2006
May 1 Albert starts business with Rs. 50,000. He opens a bank account and deposits
Rs. 20,000.
May 1 Bought furniture for Rs. 5,000, machinery for Rs. 10,000.
May 2 Purchased goods for Rs. 14,000.
May 31 Sold goods for Rs. 8,000.
May 31 Purchased goods from Malhotra & Co. Rs. 11,000.
June 1 Paid telephone rent for the year by cheque Rs. 500.
June 1 Bought one typewriter for Rs. 2,100 from ‘Universal Typewriter Co.’ on credit.
June 2 Sold goods to Keshav Ram for Rs. 12,000.
July 1 Sold goods to Rajesh Kumar for Rs. 2,000 cash.
July 1 Amount withdrawn from bank for personal use Rs. 1,500.
July 2 Received cash from Keshav Ram Rs. 11,900 and discount allowed Rs. 100.
July 31 Paid into bank Rs. 5,800.
July 31 Bought 50 shares in X Y & Co. Ltd. At Rs. 60 per share, brokerage paid Rs. 20.
Aug 1 Goods worth Rs. 1,000 found defective were returned to Malhotra & Co. and balance of
the amount due to them settled by issuing a cheque in their favour.
Aug 1 Sold 20 shares of X Y & Co. Ltd. at Rs. 65 per share, brokerage paid Rs. 20.
Aug 2 Bought goods worth Rs. 2,100 from Ramesh and supplied them to Suresh at Rs. 3,000.
Aug 2 Suresh returned goods worth Rs. 100, which in turn were sent to Ramesh.
Aug 31 Issued a cheque for Rs. 1,000 in favour of landlord for rent .
Aug 31 Paid salaries to staff Rs. 1,500 & received from travelling salesman Rs. 2,000 for goods
sold by him, travelling expenses Rs. 100.
Lab Assignment No. 2.1:-

3B
Create a Company by name “Khanna Sons” for the year 2007-08, prepare following ledgers and pass
necessary entries
1. Commenced business with cash Rs.10, 000, as on 1/4/2007
2. Deposit into bank Rs. 15,000 on 2/4/2007
3. Bought office furniture Rs.3,000 on 2/4/2007
4. Sold goods for cash Rs.2,500 on 1/5/2007
Page 12 of 90

5. Purchased goods form Mr X on credit Rs.2,000 on 2/5/2007

6. Sold goods to Mr Y on credit Rs.3,000 on 31/5/2007
7. Received cash form Mr. Y on account Rs.2,000 on 1/6/2007
8. Paid cash to Mr X Rs. 1,000 on 2/6/2007
9. Received commission Rs. 50 on 2/6/2007
10. Received interest on bank deposit Rs. 100 on 1/7/2007
11. Paid into bank Rs. 1,000 on 2/7/2007
12. Paid for advertisement Rs.500 on 31/7/2007
13. Purchased goods for cash Rs. 800 on 1/8/2007
14. Sold goods for cash Rs. 1,500 on 2/8/2007
15. Paid salary Rs. 500 on 31/8/2007
Lab Assignment No.2.2:-

4B
Create a company in the name of Raj Traders for the year ended 01.04.1998 and books beginning from
01.07.1998 and pass the transactions considering the following:-
Ledgers to be created:- 1) Purchase Account 2) Sales Account 3) Bank Account & Respective parties
Accounts, pass the entry in Voucher mode.
(a) On 01.07.1998 purchased goods worth Rs. 1,00,000/- from Mafatlal Industries Ltd.
(b) On 02.07.1998 sold goods worth Rs. 40,000/- to Rakesh Mills.
(c) On 31.07.1998 received Rs. 25,000/- from Rakesh Mills.
(d) Sold goods worth Rs. 50,000/- to Anil Textiles on 02.08.1998.
(e) Received Rs. 40,000/- from Anil Textiles on 31.08.1998.
(f) On 01.09.1998 paid Rs. 50,000/- to Mafatlal Industries Ltd.
(g) Purchased goods worth Rs. 80,000/- each from Arvind Mills and Vimal on 02.08.1998.
(h) On the same day sold goods worth Rs. 40,000/- each to Vikas Sales Agency and Rakesh Mills.
(i) Received Rs. 30,000/- each from Rakesh Mills and Vikas Sales Agency.
(j) On 31.08.1998 paid Rs. 25,000/- each to Arvind Mills and Vimal.
Class Room Assignment No. 3:-

5B
Accounts with Inventory

Create a company in the name of Asian Car Arcade for the year ending 2001.
Prepare the required ledgers, stock group, category, items, godown and pass the transactions taking the
following into consideration, entry to be done in invoice mode.
F11 Features to be activated:-
Under Maruti Maruti 800, Zen, Esteem, Baleno.
Under Hyundai Ascent, Hyundai Deluxe, Hyundai Regular.
Under Premiere Fiat, Uno, Siena.
Under Tata Indica, Sumo, Estate, Sierra.
Page 13 of 90

Under Hindustan Ambassador, Contessa.

Transaction
• Purchased the following on 01.06.2000, discount 2%
Quantity Name Rate Godown
3 Zen 400000 Mumbai
2 Ascent 550000 Mumbai
2 Uno 375000 Pune
4 Siena 575000 Pune
2 Sumo 500000 Mumbai
5 Indica 400000 Mumbai
• On 02.06.2000 sold following cars to Patel Motors, discount 2%
Quantity Name Rate
1 Zen 475000
1 Siena 610000
1 Indica 450000
• On 01.07.2000 sold following cars to Dhruv Motors, discount 2%
Quantity Name Rate
1 Ascent 580000
1 Indica 430000
• On 02.07.2000 sold following cars to Gupta Car Arcade, discount 2%
Quantity Name Rate
1 Zen 460000
1 Siena 600000
• On 31.07.2000 sold following cars to Continental Motors, discount 2%
Quantity Name Rate
1 Sumo 550000
1 Zen 450000
1 Siena 600000
• Received on 01.08.2000 Rs. 1125000/- from continental Motors after deducting discount on total
bill amount.
• Paid 50% bill amount from which 7.5% discount on bill amount has been paid for Hyundai motors
on 02.08.2000.
• On 31.08.2000 received 75% bill amount after deducting 11.25% on net bill from Dhruv Motors.
• Paid full amount after deducting 15% discount to Premeiere 01.09.2000.
• Sold 1 Indica @ Rs. 450000 to Ramesh Motors (add 4% sales tax) on 02.09.2000.
• Sold 1 Siena @ Rs. 600000 and 1 Uno @ Rs. 400000 to Trilok Motors (add 4.8% sales tax) on
31.09.2000.
Page 14 of 90


6B
Create a Company Raman Shop, as on 2006-07

On 1-4-06 Raman commenced business with cash of Rs. 25,00,000. He further introduced Land and
Building costing Rs. 30,000, Plant and Machinery costing Rs. 25,000 and furniture and fixture costing Rs.
36,000.
2. On 2-4-06 Purchased Vehicle and Patents Rs. 20,000 and Rs. 15,000.
3. On1-5-06 He deposited Rs. 1,00,000 into Canara Bank.
4. On 2-5-06 Purchased from Cadbury Company, discount 1%
500 5 Stars @ Rs. 5 1000 Munch @ Rs. 5
100 Kit kat @ Rs. 4 200 Dairy milk @ Rs. 7
5. On 31-5-06 Purchased from Paras, discount 2%
500 Moov @ Rs. 20
500 D’Clod @ Rs. 12
6. On 1-6-06 Purchased from Amber, discount 2%
450 Adhensive tape roll @ Rs. 14.50
200 Band Aid box @ Rs. 240
300 Boric Acid powder @ Rs. 13
7. On 1-6-06 Sold to Pankaj, discount 2%
200 Moov @ Rs. 20.50
100 D’Clod @ Rs. 12.25
200 Adhensive tape roll @ Rs. 15.25
100 Band Aid box @ Rs. 252
200 Boric Acid powder @ Rs.14
8. On 2-6-06 Sold to Akbar, discount 2%
500 Munch @ Rs. 6
200 5 Star @ Rs.5.25
50 Kit Kat @ Rs. 6
9. On 1-7-06 Paid to Cadbury company Rs. 7500/- in cash.
10. On 2-7-06 Received from Pankaj Rs. 30000/- by cheque
11. On 31-7-06 Paid to Paras Rs. 12000/- by cheque
12. On 2-8-06 Received from Akbar Rs. 3500/- in cash
13. On 2-8-06 Purchase from Well Cloth
T-Shirts Lee 25Pc @ Rs.200
Nike 30Pc @ Rs.300
Formal Shirts Pan America 35Pc @ Rs. 400
Peter England 30Pc @ Rs. 450
Page 15 of 90

Jeans Pants Tiger 20Pc @ Rs. 500

Ruff and Tuff 30Pc @ Rs. 350
Cotton Pants Arrow 40Pc @ Rs. 200
Ex-Calibar 20Pc @ Rs. 250
13. Paid Postage Rs. 500 by cheque
14. Received commission Rs. 15,000
15. Paid wages Rs. 2,500
Procedure for Inventory Problem
Gateway of Tally-Inventory Info-Unit of Measure-Create-
Symbol- Nos. Pcs
Formal Name- Number Pieces
Gateway of Tally-Inventory Info-Stock Group-Create
Chocolate, Medicines, Cotton Pants, Jeans Pants, Formal Shirts, T-Shirts
Gateway of Tally-Inventory Info-Stock Item-Create
5 Stars
Kitkat Chocolate
Munch
Dairy milk
Moov
D’Clod
Adhensive tape rolls Medicines
Band Aid box
Boric Acid powder
Lee T-Shirts
Nike
Pan America Formal Shirts

Peter England
Tiger Jeans Pants

Ruff and Tuff
Arrow
Ex-Calibar Cotton Pants
Page 16 of 90


7B
Given below is the trial balance of M/s. Sameer and Reena on 31st Dec. 1988. They divide profits and
losses as 3:2 respectively. From the following trial balance you are required to prepare Trading and Profit
and loss account for the year ended 31st December 1988 and the Balance Sheet as on that date.
Create Groups for Ledgers, F11 features Interest Calculation, Currency (€ Euro (use Alt 0128 to insert
symbol)):-
Trial balance as on 31st December 1988
Particulars Debit Particulars Credit

Rs. Rs.
Stock (1-1-88) 60,000 Sales 1,01,250
Purchases 1,20,000 Purchases Returns 1,000
Sales Returns 1,500 Capital account Sameer 80,000
Drawings Sameer 9,000 Capital account Reena 60,000
Drawings Reena 7,000 Current A/c. Reena 2,000
Current A/c. Sameer 3,000 Bank Overdraft 4% p.a. 17,000
Sundry Expenses 1,750 Discount Received 600
Wages 15,000 Dividend Received 2,400
Salaries 16,400 Sundry Creditors 10,000
Travelling Expenses 1,600 Bills Payable 25,000
Advertisement 6,000 Outstanding Wages 2,000
Rent, Rates and Taxes 12,500 Loan from Dena bank @ 12% 5,50000
Bad Debts 13,000
Discount 1,400
Commission 1,500
Buildings 1,80,000
Machinery 1,20,000
Furniture 75,000
Sundry Debtors 30,000
Page 17 of 90

Cash in Hand 25,000
Cash at Bank 2.5% interest p.m 1,22,000
Bills Receivable 27,000
Prepaid Insurance 2600
8,51,250 8,51,250
Additional Information at the end of the year.

• Closing Stock as on 31-12-1988 Rs. 57600/-
• Outstanding Rent Rs. 400/- Salaries Rs. 600/-
• Provide depreciation on Building 10% Machinery 20% and Furniture 15%.
• Provide 10% interest on partner’s capital. Sameer is entitled to get Rs. 1,500/- as salary per
month for his extra work for 3 Months.
• Partnership firm charges 5% interest on drawings.
• Share profit/loss in the ratio given
Display Balance sheet, Profit & Loss, Trial Balance in the the currency create (€ euro)
Transfer the company data to new blank company using Import/Export option.
Merge both the company and create a Group company, showing individual balance sheet, profit / loss
account, and also group wise details for the same.
Lab Assignment No. 4.1 :-

8B
Ramesh and Mahesh are partners sharing profits and losses 2:1. Following is the trial balance as on
31/12/1985.
Particulars Debit Rs. Credit Rs.
Land and Buildings 55,000
Machinery 40,000
Salary and Wages 21,000
Cash at bank 40,000
Cash in hand 1,100
Motor Vans 20,000
Office Expenses 1,000
Ramesh Capital 1,16,000
Page 18 of 90

Mahesh Capital 62,000
Carriage 5,000
Purchase and Sales 2,20,000 2,80,000
Returns 2,000 5,500
Bad Debts 1,000

Debtors and Creditors 32,800 20,000
Rent 1,100
Bills Payable 35,000
Printing and Stationary 1,500
Travelling Expenses 5,500
Stock (1/1/1985) 30,000
Insurance 1,500
Discount 8,000
Advertisement 12,000
Furniture 20,000
5,18,500 5,18,500
Adjustments:-
• Goods worth Rs. 5,000 taken over by Ramesh for personal use were not entered in the books of
accounts.
• For goods worth Rs. 5,000 were destroyed by fire and Insurance Company agreed to pay Rs.
4,000 in full settlement of the claim.
• Outstanding expenses, Rent Rs. 100/- and Salary Rs. 500/-
• Provide depreciation at 10% on machinery and 5% on furniture.

9B
Following is the trail balance of Sri Arora company for the year ended 31-3-01
Particulars Debit Credit
Capital account - 10,000
Drawings account 2,000 -
Page 19 of 90

Purchases 20,800 -
Opening stock 6,900 -
Sales - 27,500
Creditors - 8,100
Rent 1,000 -
Discount Received - 270
Furniture & Fixture 900 -
Machinery 5,000 -
Traveling expencess 650 -
Bad debts 120 -
Debtor 7,500 -
Sales Return 300 -
Purchase Return - 580
Carriage Inward 400 -
Wages 325 -
Salaries 900 -
Interest 480 -
Carriage Outward 700 -
Insurance 900 -
Bank Loan - 3000
Cash in hand 575 -
Total 49,450 49,450
Additional information:
1. Closing stock was values at Rs. 8900.
2. Insurance prepaid Rs.250.
3. Interest on bank loan outstanding Rs.150.
4. Depreciate machinery and furniture at 10%.
5. Provide for doubtful debts at 5% on debtors.
6. O/S rent Rs 200 O/S salary Rs 100
Page 20 of 90

Class Room Assignment No. 5 (VAT 4%):-

10B
M/S SAI TECHNOLOGIES
BALANCE SHEET AS ON 31-3-1998
Liabilities Amount Total Assets Amount Total
Capital Account 150000 Fixed Assets 72000
Kapil 75000 Office equipment 32000
Mayur 75000 Furniture & Fixture 40000
Loan Liabilities 100000 Investment 28000
City Bank 50000 Shares in ICICI 14000
(Term loan) Shares in HDFC 14000
Mohan Bansi 50000
Current Liabilities 113310 Current Assets 263310
Sundry Creditors A 101340 Stock 134424
Unpaid Expenses B 11974 Sundry Debtors C 88850
Cash in Hand 8528
Bank Accounts D 31512
Total 363314 Total 363314
Schedule A:
Sundry Creditors Bill No. Date Amount Total
Sachin Trader 1398 31/12/97 2070
1421 1/1/98 3073
1434 2/1/98 11020
1636 1/2/98 3079
1842 1/3/98 14011 33253
Navjot Enterprises 4120 1/2/98 8092
Page 21 of 90

4121 1/3/98 4293 12385
Ganguly Tech 3268 2/2/98 6028
4198 1/3/98 9011 15039
Azhar Softech 12941 1/3/98 4219
12983 2/3/98 3024
13492 31/3/98 5360
13780 31/3/98 28060 40663
Schedule B:
Unpaid Expenses
Telephone Expenses Payable 8370
Electricity Expenses Payable 3604
Total 11974
Schedule C:
Sundry Debtors
Amitabh Corporation 31621
1020/97-98 1/2/98 3430
1029/97-98 1/2/98 6918
1019/97-98 2/2/98 7024
1068/97-98 1/3/98 4120
1076/97-98 2/3/98 6148
1092/97-98 31/3/98 3981
Dev Enterprises 20601
1024/97-98 1/2/98 13210
1071/97-98 1/3/98 7391
Khanna Brothers 36628
1048/97-98 1/2/98 14216
Page 22 of 90

1064/97-98 1/3/98 8929
1096/97-98 31/3/98 13483
Schedule D:
Bank Accounts
State Bank of India A/c 34292 9828
Mandavi A/c 21767 21684 31512
Enter the opening stock in M/s SAI Technologies:
Particulars Brand Name & Item Qty. Rate Per Nos. Amount Total
Nos.
Floppy Disk 15123
Sony
1.44 MB 15 210 3150
1.2 MB 8 185 1480
Maxell
1.44 MB 14 212 2968
1.2 MB 6 191 1146
Verbatim
1.44 MB 18 215 3870
1.2 MB 13 193 2509
Compact Disc CD’s 3640
Sony Writable 6 175 1050
HP Writable 14 185 2590
Mouse 14950
Logitech 20 590 11800
Genious 15 210 3150
Monitor 54082
Microtech 4 9025 36100
Page 23 of 90

Samtron 1 8981 8982
LG 1 9000 9000
Keyboard 9630
Chiconi 15 642 9630
Central Processing Unit 37000
Pentium II 2 18500 37000
Enter the following Purchase Transactions into M/s SAI Technologies: 4% Vat Applicable
Date Particulars
1-Apr-98 Purchased 20 Boxes of 1.44 MB Sony Floppies @ Rs. 215 each from M/s. Navjot
Enterprises Vide Bill No. 4304 amounting to Rs. 4300/-
1-Apr-98 Purchased 3 Pentium @ 18000/- each from M/s. Jadeja @ Co. vide Bill No. 24920
amounting to Rs. 54000/-
2-Apr-98 50 CD’s of HP purchased from M/s. Nayab Trade Links @ Rs. 175 per C.D. as per Bill
No. 18719 amounting to Rs. 8750/-
2-Apr-98 Purchased from M/s. Azhar Softechs Pvt. Ltd. As per Bill No. 13628 amounting to Rs.
5340/-. The items included ware 15 Boxes of Maxell 1.44 MB floppies @ 212/- & 10
Boxes Verbatim 1.44 MB Floppies Rs. 216/- per Box.
Enter the following Sales Transactions into M/s. SAI Technologies: 4% Vat Applicable
Date Bill No. Party & Items Details Qty Rate Amount Total
1-May-98 1101 Khanna Brothers 9750

Logitech Mouse 15 650 9750
1-May-98 1102 Kapoor Techno Pvt. Ltd. 8275

Sony 1.44 MB Floppies 10 240 2400
Sony 1.2 MB Floppies 5 210 1050
Verbatim 1.44 MB Floppies 15 250 3750
Verbatim 1.2 MB Floppies 5 215 1075
2-May-98 1103 Dev Enterprises 21600

Microtech Monitors 2 10800 21600
2-May-98 1104 Shahrukh Impex 30000

Pentium II CPU 2 15000 30000
Page 24 of 90

Enter the following receipt Transactions into M/s. SAI Technologies:
Date Particulars
31-May-98 Received Cash Rs. 13210/- from M/s. Dev Enterprises against Bill No. 1103/97-98
31-May-98 Received a Cheque of Rs. 14468/- from M/s. Amitabh Corporation against Bill No.
1020, 1029, & 1068, the same was deposited into Mandvi Bank.
1-June-98 Deposited into State Bank of India a Cheque of Rs. 20000/- received from Khanna
Brothers on account.
1-June-98 Received Cash from Kapoor Techno Pvt Ltd Rs. 3000/- against Bill No. 1102 of 1/5/98
Enter the following payment transaction into M/s SAI Technologies:
Date Particulars
2-June-98 Issued Cheque No. 2412218 of Rs. 19242/- from Mandavi bank in favour of M/s
Sachin traders against Bill No. 1398, 1421, 1434 & 1636.
2-June-98 Paid Cash 257/- to Suresh Tea & Snacks for Staff.
1-July-98 Paid Rs. 15000/- in cash to Ganguly Technologies in settlement of their account.
1-July-98 Issued Cheque No. 2412219 of Rs. 20000/- from Mandavi bank in favour of M/s
Kumble Traders advanced for the 10 Monitors.
Enter the following transaction into M/s. SAI Technologies:
Date Particulars
2-July-98 Deposited Cash Rs. 5000/- into State Bank of India
2-July-98 Withdrawn Cash Rs. 1000/- from Mandavi Bank through Cheque no. 241220
31-July-98 Transferred a sum of Rs. 30000/- from State Bank of India to Mandavi Bank vide
Cheque no. 382101
Enter the following Transaction into M/s. SAI Technologies:
Date Particulars
1-Aug-98 Credit note no. cn/001 amounting to Rs. 480/- issued for 2 sony 1.44 MB floppy boxes
returned by Kapoor Technologies Pvt. Ltd. Sold to Rs. 240/- each vide sales bill no.
1102/98-99
1-Aug-98 Debit note no. dn/01/98-99 amounting to Rs. 430/- issued for return of boxes of 1.44
MB sony floppy boxes to Navjot enterprises which was purchase @ Rs. 215/- per box
as per their bill no. 4304 on 1st April 98.
2-Aug-98 Commission note no. 108 dtd 30-4-98 issued by M/s Karan enterprises for Rs. 1250/-
accepted by us payable after 30 days.
Page 25 of 90

Adjustment Entries for VAT

1. At the end of the month just Adjust your Output VAT Against the Input VAT & get the Vat
Payable/Refundable adjusted to the corresponding accounts.
2. Take the Print of the VAT forms.
Lab Assignment No. 5.1 (VAT 4%):-

1B
Rupali & Dipali are partners sharing profits equally in M/s Delux Stationary, Nashik. From the following
Traial Balance and the Additional information prepare Trading and Profit and Loss Account for the year
ending 31st March, 1999 and balance sheet on the date.
Trail Balance (31st March 1999)
Particulars Debit Particulars Credit

Amount Amount
Rupali Drawings 2000 Rupali Capital Account 35000
Dipali Drawings 3500 Dipali Capital Account 25000
Fixed Assets (A) 64500 Sales 92500
Salaries and Wages 3700 Return Outwards 1300
Trade Expenses 1900 General Reserve 3800
Carriage Inward 400 Creditors (C) 15000
Royalties 1800 Commission 1500
Purchase 45300 Bank loan taken on 1.1.1999 8000
Return Inwards 2500
Debtors (B) 24600
Discount 1000
Insurance 1200
Stock (D) 23800
Advertisement 3000
ICICI Bank 2900
182100 182100
Page 26 of 90

Schedule A: (Fixed Assets)

Machinery 18000
Land & Building 36000
Motor Car 10500
Total 64500
Schedule B: (Debtors)
Amol Shetty 14000
Amit Kumar 5600
Anjali Sharma 5000
Total 24600
Schedule C: (Creditors)
Anupama Verma 3900
Aparna Rane 4000
Babita Jain 4600
Anand Raj 2500
Total 15000
Schedule D: (Stock) 4% VAT
Product Qty Rs. Total
CDs 100 40/- 4000/-
Spring File 60 15/- 900/-
Box Files 40 20/- 800/-
Large book 300 15/- 4500/-
Small book 200 10/- 2000/-
Pen Box 1000 10/- 10000/-
Floppy Disk 100 16/- 1600/-
Total 23800/-
Pass the Journal entries for the following:-
a. Goods worth Rs. 4000/- taken by Dipali for personal use were not entered in the books of
accounts. (400 pen box)
b. Depreciate Land and Building by 10% Machinery by 12.5% and Motor Car by 10%
c. 5% interest is to be allowed on partner’s capital.
d. Provide for interest on bank loan at 10% p.a.
e. Sold CDs for Rs. 45 each & Floppy disk Rs. 15 each to Anjali Sharma & Kimi Agarwal
respectively.
f. Outstanding Salary & Wages of Rs. 400/- & Rs. 300/- respectively.
g. Withdraw Rs. 1000/- from ICICI Bank.
h. Purchase 10 Box files of Rs. 15 each from Ketan Verma.
i. Return goods of Rs. 250/- from Anjali Sharma.
j. Received cash of Rs. 9500/- from Amol Shetty.
Page 27 of 90

Class Room Assignment No. 6:- (Vat Assignment) Multiple

12B
VAT percentage.
Purchase Entries
1. Purchased from Maganbhai & Co. 500 ITEM-1 @ Rs.20/- each on a credit of 30 days.
2. Purchased from Chandulal & Co. 250 ITEM-2 @ Rs.25/- each.
3. Purchased from Chandulal & Co. the following
ITEM-1 100 20
ITEM-2 250 40
ITEM-4 400 100
4. Purchased from Sanghavi Traders-M.P 1000 ITEM-1 @ Rs.12/- (Inter-State)
5. Purchased from Chunilal & Co. ITEM-5 500 qty @ Rs.125/-
6. Maganbhai & Co Returned ITEM-1 50 qty as they were damaged.
7. Good Returned to Chandulal & Co.
ITEM-1 25
ITEM-2 100
ITEM-4 200
8. Purchased from Manishbhai Sons 1000 ITEM-3 from Jammu @ 89/- (Inter-State)
Sales Entries
1. Sold Goods as per details give below to Rakesh Sharma & co.
ITEM-1 500 55
ITEM-2 200 90
ITEM-3 350 145
ITEM-4 50 180
ITEM-5 100 225
2. Sold goods to Chota Shakeel 750 ITEM-1 @ Rs. 75/-
3. Sold goods to Apple & Co. of Delhi as follows :- [Interstate Vat @4%]
ITEM-1 200 150
ITEM-2 100 125
ITEM-3 300 195
ITEM-4 50 300
ITEM-5 200 325
4. Apple & Co. Returned the following Goods Back
ITEM-1 20 150
ITEM-2 20 125
ITEM-3 20 195
ITEM-4 20 300
Page 28 of 90

ITEM-5 20 325
5. Chota Shakeel Returned 250 ITEM-1
Adjustment Entries for VAT
3. At the end of the month just Adjust you Output Against the input VAT & get the Vat
Payable/Refundable adjusted to the corresponding accounts.
4. Take the Print of the VAT forms.
Create Items under following rate of Vat :-
ITEM-1 @4%
ITEM-2 @12.5%
ITEM-3 @1%
ITEM-4 @4%
ITEM-5 @0%
Lab Assignment No. 6.1:- (Vat Assignment) Multiple VAT

13B
percentage.
Account With Inventory
Create a Co. (Accounts with Inventory)
F11 (Features) F3(Statutory)]
Enable Vat Yes
Set Alter Vat Details Yes
Display-> Statutory Info
Display-> Statutory Report
GOT
Account Info->Ledger->Create
Ledgers
Purchase Accounts 3) Sales @ 4%
1) Purchase @ 1% 4) Sales @ 20%
2) Purchase @ 12.5% 5) Sales @ 0%
3) Purchase @ 20% 6) Sales @ Inter-State
4) Purchase @ 4% Duties and Taxes
5) Purchase @ 0% Vat Class
6) Purchase @ Inter-State 1) Input Vat @ 1%
Sales Accounts 2) Input Vat @ 4%
1) Sales @ 1% 3) Input Vat @ 12.5%
2) Sales @ 12.5% 4) Input Vat @ 20%
Page 29 of 90

5) Output Vat @ 1% 2) Vikram Creditors Maharashtra

6) Output Vat @ 4% 3) Rishi Creditors Goa
7) Output Vat @ 12.5% 4) Sunil Creditors Delhi
8) Output Vat @ 20% 5) Shivaji Creditors Maharashtra
CST Class Sundry Debtors
1) Input Vat @ Inter-State 1) Ganesh Debtors Maharashtra
2) Output Vat @ Inter-State 2) Mukesh Debtors Gujarat
Sundry Creditors 3) Tushar Debtors Maharashtra
1) Priti Creditors Maharashtra
GOT
Inventory Info
Stock Items
Item No 1 @ 4%
Item No 2 @ 20%
Item No 3 @ 12.5%
Item No 4 @ 1%
Item No 5 @ 0%
Item No 6 @ 4%
Transactions:-
1) The following items purchased from Priti
Item No 1 100 Qty 175/- each
Bill No. 1012
2) The following items purchased from Vikram
Bill No. 1102
3) The following items purchased from Rishi (Inter-state) Vat 4%
Bill No. 2123
4) The following items purchased from Sunil (Inter-State) Vat 12.5%
Page 30 of 90

Bill No. 4154
5) The following items purchased from Shivaji
Bill No. 5324
6) The following items returned to Vikram
Bill No. 1102 (Against Ref)
Sales Transaction
1) The following items sold to Ganesh
Bill No. 201
2) The following items sold to Mukesh (Inter-state) Vat 4%
Bill No. 202
3) The following items returned by Ganesh
Bill No. 201
4) The following items sold to Tushar
Page 31 of 90

Item no 6 40 Qty 180/- each
Bill No. 203
Vat Report
Display->Statutory Report
Adjustment of Vat (Refundable or Payable)
Class Room Assignment No. 7:- TDS (Tax Deducted at

14B
Source), Cost Category & Cost Centre:-

1. Create a Company for the year 2004-2005
2. Press F11 (Company Features) and set ‘Yes’ to the following options
a. Maintain Cost Centres
b. More than ONE Cost Category
3. Prepare the following Cost Categories with Cost Centres:
Branch Deptt. Agent
a) Mumbai a) Purchase a) Zahir
b) Delhi b) Sales b) Amir
c) Lalit
4. Pass the following entries:
a) Rs. 1500/- paid towards Printing & Stationery A/c from Petty Cash for Mumbai Branch, Sales
Deptt on 01/04/2004
b) Rs. 1900/- withdrawn from HDFC Bank (Chq no: 234791) for office use on 01/04/2004.
c) Salary of Rs. 1500/- paid to Mumbai Branch, Purchase Deptt. Through cheque of HDFC (Chq
no: 234792) on 01/04/2004.
d) Commission paid in Cash to the following Sales Agents on 01/04/2004.
Zahir: Rs 500/-, Amir: Rs 300/- and Lalit: Rs 200/-
e) Transferred Rs. 1000/- from Main Cash to Petty Cash on 01/04/2004 to meet the daily
expenses.
f) Office Rent paid in Cash Rs 5000/- for Delhi Branch, Sales Deptt on 01/04/2004.
g) Cash Rs 3000/- paid to Mr. Khemka on 01/04/2004 as advanced salary, which will be adjusted
from his future salary.
h) Outstanding amount of Rs. 500/- paid for Telephone Bill through cheque of HDFC bank (chq
no: 234793) on 01/04/2004.
Page 32 of 90
Tax Deducted at Source

5. Press F11 (Company Features), set ‘Yes’ to the following options
a) Enable TDS b) Set/Modify other Company Features
Enter TDS Deductor details (supply the following sample data)
Tax Assessment number : WBTG00121A
Income Tax Circle/Ward (TDS) : WBTDS – 100
Deductor Type : Others
Name of Person responsible : Gautam Sinha
Designation : Account Manager
6. Press F12 (Configuration)ÆVoucher Entry; turn on the option Allow Alteration of TDS and
Values.
7. Prepare the following ledgers for TDS:
a) TDS on Technical Services
1. Under : Duties & Taxes
2. Type of Duty/Tax : TDS
3. Nature of payment : Fees for Professional or Technical Sevices
4. Ignore TDS Exemption Limit : No
b) TDS
1. Under : Duties & Taxes
2. Type of Duty/Tax : TDS
3. Nature of payment : Any
4. Ignore TDS Exemption Limit : No
NOTE: - In Tally ERP version, while creating TDS (Duties & Taxes), its not compulsory to select Nature
of payment, the option of Any is given in new version
8. Prepare the following party ledgers to make payments:
a) Roy Services
1. Under : Sundry Creditors
2. Is TDS Applicable : Yes
3. Deductee Type : Individual/HUF – Resident
4. Ignore Surcharge Exemption : No
Limit
b) Vikash Agarwal
3. Deductee Type : Individual/HUF – Resident
4. Ignore Surcharge Exemption : No
Limit
Page 33 of 90
c) Banik Publishing Ltd

3. Deductee Type : Local Authority
9. Do the following as per given instructions:
a) Roy Services charged Rs. 35000/- as Fees for Technical Service on 01/04/2004 {Ref
no: Tech/tds/001}.
Page 34 of 90
NOTE:-
In Above Entry the TDS is getting calculated at the time of Passing Expense Entry, so no
separate entry needs to be done
Also in previous version, The TDS calculated was displayed under DisplayÆStatement of
AccountsÆTDS outstanding, but now the entire TDS related reports are displayed under
Statutory Report.
Page 35 of 90
b) Paid annual Rent for Land and Building on 01/04/2004 Of Rs. 150000/- to Vikash
Agarwal after deducting TDS @ 15% and Education Cess @ 2% on the amount and rest
paid to Vikash Agarwal through HDFC (Chq no: 234797) {Ref no: Rent/tds/002}
c) An Advertising Contract for Six years made on 01/04/2004 with Banik Publishing Ltd.
(Advertising Contractors) for Rs. 300000/- (which will be paid through six equal
installments) and Rs. 50000/- paid as first installment amount through cheque of HDFC
(Chq no: 234798) on 01/04/2004 after deducting TDS @ 1%, Surcharge @ 2.5% and
Education Cess @ 2% on entire amount (Rs. 300000) {Ref no: Advt/tds/003)
Step 1:- Pass the Advertising Contract entry in Journal, for Expenses incurred
Page 36 of 90
Step 2:- Deduct the TDS from the expenses booked i.e Advertising Contract
F7 (Journal Entry) Press Alt + S for TDS deduction
NOTE:- The bill selection details should be against reference, this will deduct 3137/-
amount from Banik Publishing Ltd.
d) Check TDS payable report through GOTÆDisplayÆStatutory ReportsÆTDS
ReportsÆOutstandingsÆTDS Payable. {It will display pending amount = Rs. 27872/-}
e) Paid entire TDS payable amount for the month of April on 02/04/2004 through (Chq no:
234799).
The Entry needs to be passed in
payment voucher, and from the LIST
select TDS only, and automatically it
will be displaying the TDS Details, and
to be paid part.
Page 37 of 90
NOTE: - Also the cheque details can be inserted, while passing entry, so these details will be
there in challan printing option.
Hint: - Use Print Preview of Cheque Printing and check TDS challan. Press Alt + Z to
Zoom/enlarge the report.
In Tally erp Statutory Report generate all the details regarding the forms and all other reports.
Lab Assignment No. 6:- (TDS)

15B
Create a Company, for year 2009-2010 Enabling TDS features from F11
Example 1:-
The expense of Rs. 25000/- is booked for Professional Services, and payment is made to the party
“Computronics Pvt. Ltd.”, (Deductee type:- Individual/HUF – Resident) deducting TDS.
Solution:-
Step 1:- Pass the Expense entry in F7 (Journal) Deducting TDS at the time of booking Expense
Note:- Create Professional Service under Indirect Expense (Mark Default payment Fees for Professional
Or Technical Services)
Example 2:-
The advance payment done to party Raghav & Co. (Deductee type:- Association of Persons) of Rs.
23000/- for Advertisement Contract, TDS deducted on the Same
Solution:-
Step 1:- Pass the entry in payment voucher (F5) deducting TDS at the time of payment.
Note:- Advertisement in Indirect Expenses Nature of Payement:- Payment to Contractors (Advt. Contrct)
Example 3:-
Expense of Rs. 122000/- incurred for Rent on Land & Building, to be paid to Mr. “Bhateja Consultants”
(Deductee type:- Body of Individual), deducting TDS
Solution:-
Step 1:- Pass the Expense entry in F7 (Journal) making TDS Deduct Now option as a NO while
selection.
Step 2:- Deduct TDS by using Alt + S option in Journal Voucher
TDS Payment:- (Total TDS to be paid :- 27944/-)

Check the TDS amount to be paid from Statutory Report, and make the payment for TDS
Page 38 of 90
Assignment No. 8:- TCS (Tax Collected at Source) & Service

16B
Tax
Tax has to be collected at source by the seller, while debiting the amount payable by the buyer to buyer’s
account (or) at the time of receipt of such amount from the buyer in cash or by issue of cheque / draft or
by any other mode, whichever is earlier. The rate of tax should be applied as a percentage on the
purchase price. Within 10 days from the date of debit or receipt of the amount, the person collecting tax
should issue a certificate of tax collected. The Certificate shall be in Form No.27D.
1. Open Previous TDS Company Created (Alter to Account with Inventory) (Change the period to
2005-2006 at gateway of tally)
2. Press F11ÎF3 Î Enable TCS (Yes)
Î Set/Alter TCS details (Yes)
Creation of TCS Ledger A/c
For TCS you create the TCS Ledger A/c on which the tax has been collected. At TCS Ledger creation
screen enter the following details :
a. Name : TCS on Scrap Sale
b. Under : Duties & Taxes
c. Type of Duty/Tax : TCS
d. Nature of Goods… : Scrap
e. Inventory Values… : No
Creation of Party Ledger A/c
You must create the Party Ledger from whom TCS is collected. At the Party Ledger creation
screen enter the following details :
a. Name : Roy Enterprises
b. Under : Sundry Debtors
c. Maintain balance… : Yes
d. Inventory Values… : No
e. Is TCS Applicable : Yes
Buyer/Lessee : Body of Individuals
Is Lower /No Collection Applicable ? No
Ignore Surcharge Exemption Limit ? Yes
(Note:- (1) Select the Buyer / Lessee Type from the list. (2) Is Lower /No Collection Applicable : If this field
is set to Yes then the exemption is applicable.)
Creation of Sales Ledger
a. Name : Scrap Sales
b. Under : Sales Account
c. Inventory Values… : Yes
Page 39 of 90
Creation of Stock Item

a. Name : Scrap
b. TCS Nature of Goods : Scrap
c. Under : Primary
d. Units : Ton
Pass the following entries for TCS
1. Sold scrap 10 tons at 1200/- to Roy Enterprises on 2/4/05
Entry to be passed in Sales invoice mode.
2. Received total amount from Roy Enterprises on 1/5/2005, after deducting 3.5% discount by
cheque.
3. Paid TCS by cheque on 2/5/05
(Note:- Use TCS helper for calculating TCS amount)
TCS Report
Display > Statutory Report > TCS Report
There are three types of Statutory Reports 1) Print Form 27D. 2) Print Form 27B. 3) ETCS
Forms.
Service Tax (for the year 2009-10) (Change the period for the company)
As Sales Tax is an indirect Tax on goods sold, Service Tax is indirect Tax on Services provided. Service
Tax is paid by buyer of service to seller of service, who in turn, deposits the tax with government.
Activation of Service Tax in a Company
Click F11: button & set YES at “Enable Service Tax”, also set YES at “Set / Alter Service Tax Details”
under Statutory & Taxation Features.
Page 40 of 90
Creation of Ledgers for Service Tax

1. M/s Roy Trading
a) Under : Sundry Debtors
b) Maintain Balance …. : Yes
c) Is Service Tax applicable : Yes
Type of Classification : Not Applicable
2. M/s Biswas Bros.
a) Under : Sundry Creditors
b) Maintain Balance… : Yes
c) Is Service Tax Applicable : Yes
Type of Classification : Not Applicable
Service Category Profile

Gateway of Tally > Display > Statutory Info > Service Categories > Bussiness Auxiliary.
Ledgers Creation
4. Service Income
a. Under : Sales Account
b. Is Service Tax Applicable : Yes
Category Name : Business Auxiliary
4. Service Charge
a. Under : Purchase Account
b. Is Service Tax Applicable : Yes
Category Name : Business Auxiliary
5. Service Tax (Purchase)
a. Under : Duties & Taxes
b. Type of Duty/Tax : Service Tax
Category Name : Bussiness Auxiliary
6. Service Tax (Sales)
a. Under : Duties & Taxes
b. Type of Duty/Tax : Service Tax
Category Name : Bussiness Auxiliary
Pass necessary Voucher entries:- (Purchase & Sales entry pass in Account invoice mode)
1) Service given to M/s Roy Trading, on which the service tax is levied, the amount is Rs. 1500/-
2) Received Rs. 1000/- from M/s Roy Trading, in form of Cheque.
3) Service taken from M/s Biswas Bros. of Rs. 1000/- (Entry in purchase Voucher)
4) Paid Rs. 800/- to Biswas Bros in form of Cheque.
Page 41 of 90
Input Service Tax

We have discussed Service Tax in sales voucher for services provided and deposit of proportionate tax
on receipt of payment against service bills.
Some organization also buys services paying service tax . If the service is bought to render the service
sold , then the service tax paid on services purchased (called Input Credit) may be adjusted from the
service rendered .
To see the amount of Input Credit available which can be adjust , follow this steps
Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Input Credit form .
Adjustment of Input Credit and Payment of Balance Service Tax
Gateway of Tally > Accounting Voucher > F5 (Payment) on 1-5-2009
Challan For Balance Tax Deposit After adjustment of Input Tax , print the TR – 6 Challan to deposit the
Tax with the authority . Gateway of Tally > Display > Statutory Reports > Service Tax Reports > TR-6
Challan
Page 42 of 90
Lab Assignment No. 8.1:- (TCS & Service Tax)

17B
Tax Collected at Source

Gateway of TallyÎClick on the F11: F3
Set Enable TCS to Yes
Set/Alter Details Yes
Tax Assessment Number : BLRM00123A
Income Tax Circle/Ward (TCS) : Wards
Deductor Type : Others
Name of person responsible : Mr. Nair
Designation : Account Manager
Gate of TallyÎAccounts InforÎLedgersÎCreate

Ledger 1
Name : TCS on Timber Leaves
Under : Duties & Taxes
Type of Duty/Tax : TCS
Nature of Payment ; Timber obtained under forest lease
Ledger 2
Name : Agarwal Timber Plant
Under : Sundry Debtors
Maintain balance bill… ? Yes
Is TCS Applicable ; Yes
Deductee Type : Individula/HUF – Non Resident
Ignore surcharge Exemp… : Yes
Gateway of Tally:-
Pass the necessary entries for TCS
1) Sold Timber leaves to Agarwal Timber Plant at Rs. 5,00,000/-, Charged the TCS on same.
2) Agarwal Timber paid the amount of 5,00,000/- plus TCS.
3) Payment done through bank for TCS collected from Agarwal Timber Plant
Page 43 of 90
Service Tax
Gateway of TallyÎF11ÎF3
Enable Service Tax Yes
Set/Alter Service Tax Details Yes
Gateway of Tally
Ledger Creations
Ledger 1
Name : Management Consultant
Under : Sales Accounts
Inventory Values are affected ? Yes
Is Service Tax Applicable ; Yes
Category Name : Management Consultant
Ledger 2
Name : Purchase Mngmnt Consultant
Under : Purchase Accounts
Inventory Values are affected ? Yes
Category Name : Management Consultant
Ledger 3
Name : Bhateja Consultant
Under : Sundry Creditors
Maintain Balance Bill by ? Yes
Exemption DetailsÎType of ClassificationÎNot Applicable
Page 44 of 90
Ledger 4
Name : Kalka Traders
Under : Sundry Debtors
Maintain Balance Bill by ? Yes
Exemption DetailsÎType of ClassificationÎNot Applicable
Ledger 5
Name : Input Serv Tax Mngmt Consultant
Type of Duty/Tax ? Service Tax
Category Name ; Management Consultant
Ledger 6
Name : Output Serv Tax Mngmt Consultant
Type of Duty/Tax ? Service Tax
Category Name ; Management Consultant
Gateway of Tally
Pass the necessary voucher entry for Service Tax
1) Purchase services from Bhateja Consultant (Sundry Creditor) worth Rs. 80000/- on 31/7/2009.
Pass the entry in purchase voucher with input service tax charged
2) Sold on 2/8/2009 service worth Rs. 200000/- to Kalka Traders, pass the entry in sales voucher
with Output Vat.
3) Received from Kalka the total amount of services sold with service tax on 31/8/2009 through
Cheque.
Check the details for Service Tax to be paid in
Gateway of TallyÎDisplayÎStatutory reportÎService Tax reportÎService Tax Payable
4) The total service tax paid on 1/9/2009,
Print the service tax challan
Class Room Assignment No. 9:- (Create User & Security

18B
Control, Budget)
Create a company by name Roa and company, Use security control option, and tally vault password,
Budget Control, Cheque Printing option, Bank reconcilation statement
Using administrative user create following ledgers:-
Page 45 of 90
Ledger Group Budget Indirect

Salary 250
expenses
Capital Capital account 1000
Drawings Capital account 1000
Purchase
2500 Indirect
Purchase account Stationary 200
expenses
Indirect
Postage 50 Indirect
expenses Rent 150
expenses
Rajkamal Sundry Creditor 2000
Commission Indirect income 250
Sales Sales account 3000
Bank of India Bank Account 125
Rahim Sundry Creditor 300
Office
Fixed Assets 450
Furniture
Suresh Sundry Debtor 400
Sales Return Sales Account 25
Nayak Sundry Debtor 250
Purchase Purchase
400
returns account
Pass the below mention entry in data entry user:-

Particulars Rs.
1. Roa brought cash as investment in business 1-4-2009 5000
2. Bought goods for cash on 1-4-2009 2,500
3. Paid for postage as on 1-4-2009 10
4. Sold goods, amount received by cheque 1-4-2009 150 (Chq No. 694521)
5. Received commission by cheque 1-4-2009 225 (Chq No. 754213)
6. Bought office furniture for cash 2-4-2009 500
7. Purchased goods from Rajkamal 1-5-2009 2,000
8. Bought goods from Rahim 1-5-2009 400
9. Returned goods to Ralkamal 1-5-2009 200
10. Sold goods to Suresh 2-5-2009 400
11. Sold goods to Nayak 31-5-2009 250
12. Purchased goods for cash 31-5-2009 400
13. Recevied cash from Nayak 31-5-2009 200
14. Paid cash to Rahim 31-5-2009 50
15. Suresh returned goods 31-5-2009 50
16. Cash Deposited into bank 31-5-2009 500
Page 46 of 90
17. Paid salary by cheque 31-5-2009 150 (Cheque No. 242560)

18. Sold goods for cash 31-5-2009 500
19. Rao withdraw cash for his personel use 31-5-2009 800
20. Paid rent by cheque 31-5-2009 50 (Cheque No. 242561)
21. Paid for stationery 1-6-2009 100
Use Tally audit feature for checking the ledgers and voucher entries
Bank Reconcilation Statement

1. Cheque deposited on 01/4/2009, Cheque No. 694521 got cleared on 1-5-2009
2. Commission received cheque deposited on 01/4/2009, Cheque no. 754213 got cleared on 2-5-
2009.
3. Rent paid on 31/5/2009 cheque no. 242561 got cleared on 1/6/2009
4. Salary paid on 31/5/2009 cheque no. 242560 got cleared on 2/6/2009
Please calculate balance as per Bank Amount Rs. 725/- for the month of May 2009.
Lab Assignment No. 9.1:- (Create User & Security Contorl,

19B
Budget, Separate Discount)

Haridas and company
1.Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000.
2.Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000.
3.Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000.
4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000.
5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000.
6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100.
7.Received rent Rs.500, commission Rs.400.
9. Sold goods to Ganesh Rs. 1200.
8. Received a cheque from Ganesh Rs.1,000.
Ledger Group Budget
Capital Capital account 8000
Furniture Fixed asset 3500
Machinery Fixed asset 4000
Purchase Purchase account 12000
Page 47 of 90
Anil Sundry Creditor 3500
Sales Sales account 15000
Rajesh Sundry debtor 6000
Arun Sundry creditor 1750
Ramesh Sundry debtor 3600
Salary Indirect expenses 1200
Printing Indirect expenses 250
Wages Direct expenses 200
Rent Indirect expenses 800
Commission Indirect expenses 1000
Ganesh Sundry creditor 600
Trade Indirect expenses 300

discount

20B
Account With Inventory

Create a Company by name Maganbhai Stationary traders, create a godown Mumbai & Pune.
Create Inventory Items under Stationary Using Standard Rates for stock Items
Inventory InfoÎStock ItemsÎF12 (Allow Std. Rates for Stock Items) Yes
Stock Items Under Units Std. Rate Standard Cost Selling Price
Natraj Pencil Stationary Bx. Yes 30.00 32.00
Natraj Eraser Stationary Bx. Yes 25.00 33.00
Natraj SharpnerStationary Bx. Yes 35.00 37.00
a. Purchase order given for the following stationary items to Natraj company (Purchase
Order (Alt+F4)), Godown Mumbai Order No. 1012
i. Natraj Pencil 5000 Bx.
ii. Natraj Eraser 4500 Bx.
iii. Natraj Sharpner 3000 Bx.
GOTÆDisplay MenuÆStatement of InventoryÆPurchase Order SummaryÆOrder (Outstanding)
Page 48 of 90
The above entry been done, i.e its been passed as an order given to the Natraj Company for the
stationary items.
b. Natraj company delivered the following stationary items (Receipt Note (Alt + F9)),
Godown Mumbai Order No. 1012 Tracking No. B01245
GOTÆDisplay MenuÆStatement of InventoryÆPurchase Bills Pending
The above entry been done, where the goods are delivered to godown, but bill is not given i.e
pending
GOTÆProfit and LossÆPurchase
c. Following stationary items distributed as a free sample to St. Xaviers School Tracking No.
B01246
i. Natraj Sharpner 1000 Bx.
ii. Natraj Pencil 1500 Bx.
iii. Natraj Eraser 2000 Bx.
d. Stationary Items sold to Sonal Depot, Tracking No. B01247
Actual Billed
i. Natraj Sharpner 250 Bx. 200 Bx.
ii. Natraj Pencil 150 Bx. 100 Bx.
iii. Natraj Eraser 100 Bx. 75 Bx.
e. The stationary items returned to Natraj Company (Rej Out Alt + F6) Tracking No. B01245
Order No. 1012
f. Following stationary transferred from Mumbai godown to pune godown

21B
Manufacturing Journal Entry

GOTÆAccount InfoÆVoucher typeÆCreate
Page 49 of 90
Name : Manufacturing Journal

Type of Voucher : Stock Journal
Use as a Manufacturing Journal : Yes
Create Units of measurement
No (Number), Mtr (Meters)
Create Stock Group:- Material
Stock Items:-
(1) Cotton piece (Mtr), (2) Buttons (No.),(3) Thread (No.),(4) Niddles (No.),
Create Stock Group:- Garments
Stock Items:-
(5) Shirts (No.) (Note:- Use Bill of Material (F12) for creating Shirts requirement)
(Make Alter Components (BoM) ? Yes)
Pass the necessary entries

1) Purchased cotton piece from Raymond shop (F9ÎPurchase) Invoice No. 10456
Cotton piece 5000 mtr 15/- per meter
2) Following material purchased from Vandana shop (F9ÎPurchase) Invoice No. 10678
Buttons 1000 No. 0.75/- each
Thread 1000 No. 2.50/- each
Niddles 250 No. 2.50/- each
3) Produced 100 No. shirts, (Alt+F7ÎManufacturing Journal)
Also additional cost incurred for producing shirts
Wages Rs. 5000/-, Electricity Rs. 500/- and Packaging Rs. 2000/-
F11ÎF2ÎUse Multiple Price Levels
Company Price Levels : 1) Price costing
GOTÆInventory InfoÆPrice List
Price Level for Shirt (Garments)
Page 50 of 90
<25 190/- per shirt

>25 <50 187/- per shirt
>50 <75 175/- per shirt
>75 <100 160/- per shirt
>100 155/- per shirt
Sales Entries
4) 45 shirts sold to Geeta designer.
5) 50 shirts sold to Hamid Garments.
Class Room Assignment No. 12 (Fringe Benefit Tax, ODBC)

2B
Fringe Benefit Tax

Press F11 (Features)ÎF3(Statutory)Î Enable Fringe Benefit Tax (FBT) (Yes)
Set/Alter FBT Details (Yes)
Company FBT Assesse Details
PAN/Income –Tax Number : JRS 12535
Assesse Type : Associations of Persons
Is Surcharge Applicable ? Yes
Assesse Category : Hotel
FBT Assesse Type
Gateway of TallyÎDisplayÎStatutory InfoÎFBT Assesse Type
FBT Categories
Gateway of TallyÎDisplayÎStatutory InfoÎFBT Category
Creation of Ledgers for FBT
1. FBT
a) Under : Duties and Taxes
b) Type of Duty/Tax : FBT
c) Inventory Value…. ? No
2. Supplier
a) Under : Sundry Creditors
b) Maintain balance…. ? Yes
c) Inventory Value… ? No
3. Entertainment
a) Under : Indirect Expenses
b) Is FBT Applicable ? Yes
1. FBT Category : Entertainment
Page 51 of 90
Pass Necessary Voucher Entries

1) Entertainment Expense Rs. 25000/-
2) Payment of FBT for Expenses booked (Use single payment mode, and FBT Helper for
calculating Tax)
Alt + F (FBT Helper)
Page 52 of 90
3) Print FBT ChallanÎPress Print Command after Payment entry of FBT done
ODBC in Tally
1) Create Debtors & Creditors by following names:-

Addres Addre Addre Pinco Contact
Name Under State Email ID
s1 ss 2 ss 3 de No.
Sundr Shiv
206,
Lalit y Datta Kurla 40007 Maharashtra 9867245
Royal [email protected]
Jain Credit Societ West 0 sthra 124
H H
Palace
ors y
202,
Umes Sundr Sai Near
h y Shradd Pipelin Kalyan 42130 Maharashtra 9868542 [email protected]
H
Mishr Debtor ha e East 6 sthra 361 m H
a s Apartm Road,
ent
Sundr
Same
y Plot Sector 40070 Maharashtra 2525646 sameer.256@yaho
er Nerul
H
Credit No. 27, No. 16 7 sthra 4 o.co.in

Zajam
H
ors
Sundr Shri
Imran 856,
y Ridhi 40006 Maharashtra 9856425 [email protected]
Khush Rachna Malad
H
Credit Sidhi 4 shtra 241 om

al Garden
H
ors Sankul
Sundr Krishn
256,
Aarti y a Andhe 40004 6545857 [email protected]
Ram Maharashtra
H
Kasbe Debtor Height ri 7 4 om

Baug
H
s s
Tajud Sundr
456,
din y Sagar Grant 40000 2425367
Rukma Maharashtra [email protected]
Patha Debtor Palace Road 7 4
H H
ni Villa
n s
Jasm Sundr Gurukri Sukh
eet y pa Sagar 40009 9874562 [email protected]
Sahar Maharashtra
H
Naran Debtor CHS, Compl 9 341 om H
g s 27 ex
Using the Data of Tally, create a letter for new product launch by the company and inviting the
people for seminar kept by the company using Mail Merge in Ms-Word.
Page 53 of 90
Class Room Assignment No. 13 (Payroll)

To enable payroll in Tally
Go to Gateway of TallyÆF11: FeaturesÆAccounting Features
• Set Maintain Payroll to Yes

• You can set More than ONE Payroll / Cost Category to Yes if you wish to process payroll for
multi group of Employees.
The Payroll Configuration can be enabled as shown below:
Gateway of Tally > F12: Configure > Payroll Configuration
A Unit in Tally Payroll is similar to the Unit of Measure in Tally’s

Inventory module. In Payroll, Units are used to facilitate calculation
of a Pay Head value based on Production, which in turn would be
linked to Units such as Time, Work or Quantity.
Go to Gateway of Tally > Payroll Info. > Unit (Work)
Page 54 of 90
In the Units Creation screen, select the Type of unit from the list. Select the Symbol from the list.
A Simple Unit in Tally is a single independent unit and has no relationship with other units, while a
Compound Unit refers to two Simple Units having an arithmetical relationship and is not a distinct
unit.
In the case of Overtime, whose value is computed based on Overtime Hours put in by an employee, you
would need to define Hr – Hours and Min – Minutes as Simple Units and Hr of 60 Min as a Compound
Unit and set this unit in Overtime Pay Head.
The Attendance / Production type is used to record the attendance and production data. Based on the
component (Pay head) structure, you can define multiple attendance / production types.
Examples for attendance / production types are No. of days present or conversely, No. of days Absent
and production based such as Hours worked, Number of Pieces produced.
Page 55 of 90
Attendance/Production Type is associated with the Pay Head in employee’s Pay structure. The
variable data is entered in the Attendance voucher for the payroll period.
Attendance/Production Types may also be defined in hierarchical groups whereby Types having a
common Unit are combined under logical groups.
The Attendance/Production Type may be Attendance/leave with pay, Leave without Pay (if salary is
to be paid based on number of days attended) Paid Leave, Unpaid Leave, Absent and Production
type which can be based on Piece Production, Overtime Hours, and so on.
Go to Gateway of Tally > Payroll Info. > Attendance/Production Types > Create
Tally allows you to set up default (common) information for employees. An Employee Group allows
you to group employees in a logical manner.
The Salary structure can be defined at the Employee Group level. Referring to this Group as a
template and changing accordingly will ease building all your employee records on it.
For example, by department or function such as Production, Sales, Administration and so on, or by
designation such as Managers, Supervisors, Workers and so on.
Page 56 of 90
To create Sales as an Employee Group,

Go to Gateway of Tally> Payroll Info.>
Employee Groups> Create (Single Group)
Creating Multiple Employee Groups

You can create multiple Employee Groups in
this mode.
Go to Gateway of Tally> Payroll Info.>
Employees> Create (under Multiple Groups)
The Multi Employee Group Creation screen displays.
The Employee Creation screen allows you to enter basic setup information that applies to the
employees. Enter General Information, Payment Details and Passport & Visa Details.
Creating Single Employee
To create an Employee under the Employee group, Back Office:
Similarly create employees under different employee groups:-
Page 57 of 90
The Payroll Info. allows you to set up the employee defaults and
standard payroll information with common payroll fields used for
calculating earning and deductions.
Go to Gateway of Tally > Payroll Info.
To create an Earning Pay Head, Basic Salary, under Indirect

Expenses:
Go to Gateway of Tally> Payroll Info. > Pay Heads> Create
1) Basic Salary
Page 58 of 90
Similarly create other pay heads:-
2) House Rent Allowance:-
Pay Head Type : Earnings for Employees

Under : Indirect Expenses
Affect Net Salary ? Yes
Name to appear in pay slip : House Rent Allowance
Use for Gratuity ? No
Calculation Type : As Computed Value
Calculation Period : Months
Computation
Info
3) Dearness Allowance:-

Name to appear in pay slip : Dearness Allowance
Computation Info :
4) Conveyance:-
Name to appear in pay slip : Conveyance
Page 59 of 90
Calculation Type : On Attendance

Attendance/Leave with Pay : Not Applicable
Leave without Pay : Absent

Per Day Calculation Basis : As per Calendar Period
5) Medical Allowance:-
Name to appear in pay slip : Medical Allowance
Calculation Type : On Attendance
Attendance/Leave with Pay : Not Applicable
Leave without Pay : Absent

Per Day Calculation Basis : As per Calendar Period
6) Employee PF:-
Pay Head Type : Deductions from Employees
Under : Current Liabilities
Name to appear in pay slip : Employee PF

Computation Info :
7) Other Allowance:-
Name to appear in pay slip : Other Allowance
Calculation Type : Flat Rate
Page 60 of 90
8) Professional Tax:-
Pay Head Type : Employee’s Statutory Deductions
Under : Current Liabilities

Name to appear in pay slip : Professional Tax
Computation Info:-
Salary Details is used to define a Pay Structure to an Employee or to an Employee Group to speed up
the entry of Individual Employee’s Pay Structure.
Select the basic Pay Heads that applies most for your employees and create as an Employee Group.
However, it is not compulsory for all employees to have the same compensation structures as of the
Employee Group. If required, a Pay Head element or its value may be added, deleted or altered at
Individual Employee level.
Note: If the slab rate is not defined in the PayHead then you will get the
full value
To create Salary Details for an Employee Group, for example:

Go to Gateway of Tally> Payroll Info.> Salary Details> Create> Select Back Office from the List
of Employees/Group
Copy the Salary Details created for Back office to Individual Employee
Page 61 of 90
Go to Gateway of Tally> Payroll Info.> Salary Details> Create> Select Employee from the List of
Employees/Group
The Similar Salary details will be copied to the Employee from the list.
Salary Details Configuration
Go to Gateway of Tally> Payroll Info.> Salary Details> Alter > Select Employee/ Employee
Group from the List of Employees/Group > F12: Configure
Allow to Override Slab Percentage

Set Allow to Override Slab Percentage
to No to prevent changes made to Slab
Percentages. If you set it to Yes, you can
override the percentages already defined.
E.g. If you have defined Slab Rate for HRA
as 40% in the Pay Head level, and if you wish to change the Slab Rate percentage in the Salary
details screen. Set Allow to Override Slab Percentage to Yes in Salary details configuration screen
and Tally will allow you to Overridde the percentage e.g. to 50% and so on... (Metro Cities & Non
Metro Cities).
Passing the payroll entries in Tally
Gateway of TallyÆPayroll Voucher
Auto Fill Entries
1) Entry of no. of days staff absent in may month

Date:- 31st May
Ctrl + F5:- Attendance (F5)Î Attd Auto Fill (A)
Page 62 of 90
2) Entry of payroll for may month

Date:- 31st May
Ctrl + F4:- Attendance (F4)Î Attd Auto Fill (A)
Similarly the entry can be done by manually, so report won’t get generated automatically, the data needs
to be feed manually.
Page 63 of 90
Payslip can be seen
Gateway of Tally>Display Menu>Payroll Report>Statement of Payroll>Pay slip
Page 64 of 90
Class Room Assignment No. 14 (Excise for Manufacturer)

Excise Duty
• Excise Duty or Duty on Excise is a tax on goods manufactured or produced in India and intended
for domestic consumption i.e. sale in India.
• The Excise Duty is payable at the time of production or manufacture, however, for administrative
convenience duty is paid at the time of removal of goods.
• Excise Duty is an indirect tax.
• The liability of payment of Excise Duty is of manufacturers or producers (which is passed on to
the ultimate consumer).
• The levy and collection of duty of Excise is provided under authority of the Central Excise Act,
1944 at the rates specified Central Excise Tariff Act, 1985.
Scope and Applicability
Excise Duty can be levied, only on the fulfilment of the below mentioned conditions…
• The Duty is on Goods.
• The Goods must be excisable.
• The goods must be manufactured or produced.
• Manufacture and Production must be in India.
Manufacturer
Manufacturer is a person who actually manufactures or produces excisable goods, i.e. one that actually
brings into existence new and identifiable product.
Excisable Goods
• Excisable Goods means goods specified in the schedule to the Central Excise Tariff Act, 1985 as
being subject to a duty of Excise.
The Basic requirements to be satisfied are :
• Goods must be movable.
• Goods must be marketable i.e. the goods must be such that it is known in the market and is
capable of being bought or sold.
Valuation Methods
• Value of the excisable goods has to be necessarily determined to levy the duty on the goods.
• Under the Central Excise Act, 1944, the following methods of valuation of goods are considered
for the assessment of Duty…
Valuation Methods Æ1. Ad valorem/ Transaction Value:
• Transaction value means the value of goods which are sold at the time and place of removal and
includes in addition to the amount charged as price, any amount that the buyer is liable to pay to,
including any amount charged for, or to make provision for, advertising or publicity, marketing and
selling, organization expenses, storage, outward handling, servicing, warranty, commission or
any other matter.
Valuation Methods Æ 2. Ad Quantum:
• In case of Ad Quantum the duty is payable on the basis of certain unit Like Weight, Length,
volume etc.
Page 65 of 90
• For Example: Duty on cigarette is payable on the basis of length of the cigarette, duty on Sugar is
based on per Kg.
Valuation Methods Æ 3. Value determined on the basis of M R P:
• Retail sale price means the maximum price at which the excisable goods in packaged form may
be sold to the ultimate consumer and includes all taxes local or otherwise, freight, transport
charges, commission payable to dealers, and all charges towards advertisement, delivery,
packing, forwarding and the like, as the case may be, and the price is the sole consideration for
such sale.
Salient Features of Excise in Tally.ERP
• Simple and user-friendly
• Quick and easy to set up and use
• Allows Multiple Excise Registration (Manufacturer & Dealer) in Single Company
• Create Tariff (HSN) / Commodity Code
• Flexibility to have separate Unit of Measures for recording transactions and excise reporting
• Item wise Valuation Methods (Valorem, Quantum, MRP)
• Maintain Rule 11 Excise Invoice
• Can apportion Expense / Income ledger value to calculate Assessable Value
• Item wise Duty calculation for different Valuation Methods in single invoice
• Generate Rule 11 invoice for Purchase Returns
• Record Exempt, Export & Special Rate transactions
• Avail Full / Partial CENVAT Credit on Inputs and Capital Goods/ Service Tax towards Duty
payable
• Reversal of CENVAT Credit
• Print G.A.R. -7 Challan
• Maintain Invoice Register
• Maintain RG -1 register
• Generate CENVAT Credit Register
• Generate ER-1 & ER-3 returns
• Maintain PLA Register
• Excise Computation Report
Page 66 of 90
Excise Process in Tally.ERP
Page 67 of 90
Create a Company for the year 2009,

Enabling Excise in Tally.ERP
Page 68 of 90
Also Enable the VAT details from F11 Statutory & Taxation
Gateway of
Tally:-
Ledger
Creation
(Gateway
of
TallyÎAcc
ount
InfoÎLedg
erÎCreate)
The
Ledger
Created is
an
Customer
Ledger
Page 69 of 90
2. Supplier Ledger
Name : Swastik Water Supplier
Under : Sundry Creditors
Maintain balance…. ? Yes
Mailing Details
Name : Swastik Water Supplier
Address : No. 34
Anna Nagar
Mumbai
State : Maharashtra
Tax Information
PAN/IT No. : AEW45TGFDF
Set/Alter VAT Details ? Yes
TIN/Sales Tax No. : 44335543678
Set/Alter Excise Details ? Yes
Excise Registration (ECC) No. AESDE3210NXM001
Date of Registration 1-Apr-2009
Range National Park
Division Mumbai I
Commissionerate Mumbai II
Default Nature of Purchase Not Applicable
Nature of Removal Domestic
3. Sales Ledger
Name : Sales @ 12.5%
Under : Sales Accounts
Inventory Value….. ? Yes
Used in VAT Returns ? Yes
VAT/Tax Class Sales @ 12.5%
Use for Assessable Calc.. ? Yes
Apportion for ? Yes
Method of Apportion : Based on Value
4. Purchase Ledger
Name : Purchase of Raw Material
Under : Purchase Accounts
Inventory Value….. ? Yes
Used in VAT Returns ? Yes
VAT/Tax Class Purchase @ 12.5%
Use for Assessable Calc.. ? Yes
Apportion for ? Yes
5. Input VAT Ledger

Name : Input Vat @ 4%
Type of Duty/Tax : VAT
VAT/Tax Class : Input Vat @ 4%
Percentage of Calc… ? 4%
Method of Calc… : On VAT Rate
Rounding Method : Normal Rounding
Rounding Limit : 0
Page 70 of 90
6. Output VAT Ledger

Name : Output Vat @ 12.5%
Type of Duty/Tax : VAT
VAT/Tax Class : Output Vat @ 12.5%
Percentage of Calc… ? 12.5%
Method of Calc… : On VAT Rate
Rounding Method : Not Applicable
7. Basic Excise Duty Ledger

Name : Basic Excise Duty @ 10%
Type of Duty/Tax : Excise
Excise Accountg Code :
Duty Head : Basic Excise Duty
Method of Calc… : On Assessable Value
8. Education Cess Ledger

Name : Education Cess @ 2%
Duty Head : Education Cess
Method of Calc… : On Total Excise Duty
9. Seconday & Higher Education Cess Ledger

Name : Secondary & Higher Education (SHE) Cess
Duty Head : Secondary Education Cess
10. Basic Excise Duty CENVAT Ledger

Name : Basic Excise Duty-CENVAT @10%
Type of Duty/Tax : CENVAT
Duty Head : Basic Excise Duty
Method of Calc… : On Assessable Value
11. Education Cess CENVAT Ledger

Name : Education Cess-CENVAT @ 2%
Page 71 of 90

Duty Head : Education Cess
12. Secondary & Higher Education Cess CENVAT Ledger

Name : Secondary & Higher Education (SHE)-CENVAT
Duty Head : Secondary Education Cess
13. Expense Ledger

Name : Packing Charge
Use for Assessable Val…. ? Yes
Apportion for ? Excise & VAT
Gateway of TallyÎAccount InfoÎVoucher Types

Creating Excise Voucher Types
1. Excise Purchase Voucher Type

Name : Excise - Purchase
Type of Voucher : Purchase
Rest all as it is
Use for Excise ? Yes

Default Excise Unit : Excise Manufacturer
2. Sales Voucher Type

Name : Excise - Sales
Type of Voucher : Sales
Rest all as it is

3. Debit Note Voucher Type

Name : Excise – Debit Note
Type of Voucher : Debit Note
Rest all as it is

Page 72 of 90
4. Manufacturing Journal Voucher:- Manufacturing Journal is used to account…

Æ the issue of raw materials to production floor and
Æ for the receipt of finished goods.
Name : Manufacturing Journal
Type of Voucher : Stock Journal
Rest all as it is
Use as a Manufacturing Journal ? Yes
Creating Tariff Classification …

• Each and every goods manufactured or produced have to be classified for finding out the rate of
duty applicable. Accordingly, Central Excise Tariff Act 1985 classifies all the goods under 91
chapters and specific code is assigned to each item.
• This code is called Tariff Classification code, which consists of 8 digits.
• First 4 digits represent Chapter and heading a
• Next 2 digit represents sub-heading and
• The last 2 digit represents sub-sub heading.
HSN CODE
• The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature
popularly known as Harmonised System of Nomenclature (HSN),
• is an internationally standardized system of names and
• numbers for classifying traded products developed and maintained by the World Customs
Organization.
Gateway of Tally:: Inventory InfoÎTariff/VAT Commodity
1. Plastic Bottles
Name : Plastic Bottles
Used for : Excise
HSN Code : 39233010
2. Plastic Bottle Caps

Name : Plastic Bottle Caps
Used for : Excise
HSN Code : 39235010
3. Water
Name : Water
Used for : Excise
HSN Code : 22011010
4. Linear Low Density Polyethylene (LLDPE)

Name : Linear Low Density Polyethylene (LLDPE)
Used for : Excise
HSN Code : 39110010
Gateway of Tally:: Inventory InfoÎStock Items
Important Note:- Press F12 (Configuration) In Stock Items Mode and Enable the feature Use Alternate
Units for Stock Items YES
Page 73 of 90
1. Pet Bottles – 1 Ltr

Name : Pet Bottles – 1 Ltr
Under : Primary
Units : U
Alternate Units : Kg
Where : 1 Kg = 100 U
Tariff Classification : Plastic Bottles
VAT Details
Commodity : Not Applicable
Rate of VAT (%) : 4
2. Water Container 20 Ltrs

Name : Water Container 20 Ltrs
Under : Primary
Units : U
Where : 1 Kg = 20 U
Tariff Classification : Plastic Bottles
Page 74 of 90
VAT Details
Rate of VAT (%) : 4
3. Bottle Caps
Name : Bottle Caps
Under : Primary
Units : U
Where : 1 Kg = 500 U
Tariff Classification : Plastic Bottle Caps
VAT Details
Rate of VAT (%) : 4
Page 75 of 90
4. Low Density Polyethylene

Name : Low Density Polyethylene
Under : Primary
Units : U
Where : 1 Kg = 1000 U
Tariff Classification : Linear Low Density Polyethylene (LLDPE)
VAT Details
Rate of VAT (%) : 4
5. Natural Water
Name : Natural Water
Under : Primary
Units : L
Alternate Units : Not Applicable
Tariff Classification : Water
Page 76 of 90
NOTE:- Stock Item Type Principal Input
VAT Details
Rate of VAT (%) : 0
Creating Stock Item - Finished Goods
Important Note:- Press F12 (Configuration) In Stock Items Mode and Enable the feature
Allow Component list details (Bill of Material) YES
1. Aqua Pure – 1 Ltr

Name : Aqua Pure – 1 Ltr
Under : Primary
Units : L
Alternate Units : Box
Where : 1 Box = 24 L
Alter Components (BoM) ? Yes

Page 77 of 90
NOTE:- Stock Item Type Finished Goods
VAT Details
Rate of VAT (%) : 12.5%
2. Aqua Mini – 200 ml

Name : Aqua Mini – 200 ml
Under : Primary
Units : U
Alternate Units : L
Where : 1L=5U
Tariff Classification : Linear Low Density Polyethylene (LLDPE)

Page 78 of 90
VAT Details
Rate of VAT (%) : 12.5%
3. Aqua King – 20 Ltr

Name : Aqua King – 20 Ltr
Under : Primary
Units : U
Alternate Units : L
Where : 20 L = 1 U

Page 79 of 90
VAT Details
Rate of VAT (%) : 12.5%
4. Aqua Ease – 20 Ltr

Name : Aqua Ease – 20 Ltr
Under : Primary
Units : U
Alternate Units : L
Where : 1 L = 10 U

Page 80 of 90
VAT Details
Rate of VAT (%) : 12.5%
Transactions
Creating a Excise Purchase Voucher Not Availing CENVAT Credit
When the CENVAT Credit is not availed
• The Duty Legers selected won't display the ledger balance and duty amount will be apportioned
to the Stock Item cost.
Page 81 of 90
Gateway of Tally Î Stock Summary
Gateway of Tally Î Display Î Account Books Î Ledger
• Basic Excise Duty @ 10%

• Education Cess @ 2%
• Secondary and Higher Education (SHE) Cess
All the above ledger, the details will be blank.
Creating a Excise Purchase Voucher Availing CENVAT Credit
When the CENVAT Credit is availed…

• The Duty Ledgers selected will display the ledger balance and duty amount will not be
apportioned to the Stock Item Rate.
When the CENVAT Credit is availed…

• In Stock Vouchers report stock item rate is displayed as the actual purchase rate.
• In this case the duty amount is not apportioned to the Stock item.
Check the Stock in Stock summary the Rate will be same as the amount product Purchased.
Page 82 of 90
Creating a Manufacturing Voucher

• Manufacturing of Packed Drinking Water being a Process Industry, Manufacturing Journal is used
to account the issue of raw materials to production floor and for the receipt of finished goods.
• In case of discrete industries, Stock Journal can be used to account the issue of Raw materials to
production floor and for the receipt of finished goods
• To Manufacture > AquaPure - 1Ltr using Manufacturing Journal
AquaPure – 1 Ltr of 2,00,000 L
• To Manufacture 10,000 U > AquaMini - 200 ml using Manufacturing Journal
• To Manufacture 10,000 U > AquaKing – 20 Ltr using Manufacturing Journal
Page 83 of 90
• To Manufacture 1000 U > AquaEase - 20Ltr using Manufacturing Journal
Creating a Excise Sales Voucher_ Rule 11 Invoice
Note:- Give the print command to the sales entry, and enable the print preview option, so Excise Invoice
will be printed (Changes to be done in print configuration)
Page 84 of 90
Rule 11 Invoice for Stock Items Falling Under Different Valuation Type
Page 85 of 90
Rule 11 Invoice for Stock Items with Expenses
Creating a Debit Note (Purchase Returns) _ Rule 11 invoice
• As per Rule 11 of the Central Excise (No.2) Rules, 2001 provides that no excisable goods shall
be removed from a factory or a warehouse except under an invoice signed by the owner of the
factory or his authorised agent.
• The invoice shall be serially numbered and shall contain the registration number, description,
classification, time and date of removal, rate of duty, quantity and value, of goods and the duty
payable thereon.
• Invoicing under Rule 11 of the Central Excise (No.2) Rules, 2001 is applicable even for Purchase
Returns.
• In case of purchase returns goods are removed from factory or warehouse to return the goods to
the supplier.
F11Î Features (Enabling following features)
Page 86 of 90
Creating a Journal Voucher_CENVAT Credit Adjustment

• CENVAT Credit available to a Unit will be adjusted towards the Duty Payable to arrive at the Net
Duty Payable to the Government.
• In Tally.ERP to record the adjustment, CENVAT Duty and Excise Duty accounts are Credited and
Debited, respectively to nullify their balances and the net balance in the Excise Duty ledgers will
be paid to the Government.
• CENVAT Credit Adjustment entry is recorded at the end of Every month or Quarter depending on
the type of Manufacturer.
Page 87 of 90
Gateway of TallyÎAccounting Vouchers Î F7 (Journal)
Page 88 of 90
Creating a Payment Voucher_GAR 7 Payment
Printing G.A.R.–7 Challan
Note:- Give the print command to the Payment Voucher of Duties
Reports
• Excise Computation
• Daily Stock Register
• PLA Register
• Form ER 1
• Form ER 2
• CENVAT Credit Register
Other Reports
Gateway of Tally ÎDisplay Î Statutory Report ÎExcise Report
Daily Stock Register
• Daily Stock Register is a record of stock maintained on daily basis.

• A daily stock has to be maintained by every assessee.
• This report contains details about Description of goods manufactured/produced, opening balance,
Quantity manufactured or produced, Total quantity, Quantity removed, Assessable value, Amount
of duty payable and details regarding amount of Duty actually paid.
Page 89 of 90
PLA Register
• Personal Ledger Account (PLA) is an current account through which Assessee pays the Duty to
the Government.
• The PLA register is credited when the duty is liable to pay and when the Duty is discharged (by
CENVAT Credit /Payment) the PLA register will be debited.
• The Duty Payable if any will be displayed as Balance. PLA and CENVAT Credit should be used
only for payment of excise duty and not for any other payments like rent, fines, penalties etc.
• Personal Ledger Account (PLA) is an current account through which Assessee pays the Duty to
the Government.
• The PLA register is credited when the duty is liable to pay and when the Duty is discharged (by
CENVAT Credit /Payment) the PLA register will be debited.
• The Duty Payable if any will be displayed as Balance. PLA and CENVAT Credit should be used
only for payment of excise duty and not for any other payments like rent, fines, penalties etc.
Form ER 1
Form ER 1 is a monthly return for production, removal of Goods, other relevant particulars and
CENVAT Credit.
• All the Excise Manufacturing (Regular/Large Tax payer) Units should file returns in Form ER 1.
CENVAT Credit Availed
CENVAT Credit Availed report displays…

Æ the details of CENVAT credit availed of Principal Input or Capital Goods.
Page 90 of 90

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Accounting Package - Tally

Basic concept of accounting

Short cut keys

Gateway of tally-Accounts info-Group

Provisions Stock in hand

Ledger Group Direct

Loan Land and building Fixed asset

Bank overdraft Bank OD Goodwill Fixed asset

Current Prepaid expenses Current asset

Mortgage loans Secured loans

Cash in hand Cash in hand

Cash at bank Bank account

Fixed deposit at bank Deposit

Bills receivable Current asset

Closing stock Stock in hand

Stock of stationery Current asset

Loose tools Fixed asset

Fixtures and fittings Fixed asset

Furniture Fixed asset

Motor vehicles Fixed asset

Plant and machinery Fixed asset

Trading account : Buying and selling of goods.

Direct expenses Amount Direct Income Amount

To Opening stock xxx By Sales xxx

To Purchases xxx By (-)Sales return xxx

To (-)purchase return xxx By Closing stock xxx

To Freight charges xxx

To Cartage and coolie xxx

To Lorry hire xxx

To Manufacturing expenses xxx

To Factory rent, fuel power xxx

To Gross profit (transfer to profit

Indirect expenses or payments Amount Indirect income or receipts Amount

To Salary xxx By Gross profit xxx

To Postage and Telegram xxx By Interest on investment received xxx

To Telephone charges xxx By Interest on deposit received xxx

To Rent paid xxx By Interest on loans received xxx

To Rate and taxes xxx By Discount received xxx

To Insurance paid xxx By Discount received xxx

To Interest on bank loan xxx By Rent received xxx

To Bank charges xxx By Bad debts received xxx

To Printing and stationery xxx By Net loss xxx

To Discount allowed xxx

To Carriage outward (sales)

Balance sheet: Actual financial position

Liabilities Amount Assets Amount

Bank loan xxx Cash in hand xxx

Bank overdraft xxx Cash at bank xxx

Bills payable xxx Fixed deposit at bank xxx

Sundry creditors xxx Investments xxx

Expenses outstanding xxx Bills receivable xxx

Capital xxx Sundry debtors xxx

(-)drawings xxx Closing stock xxx

Net profit xxx Stock of stationery xxx

Plant machinery xxx

Land and building xxx

Motor vehicles xxx

Prepaid expenses xxx

Income outstanding xxx

F4 Contra: Records funds transfer between cash and bank accounts.

F5 Payment: Record all bank and cash payments.

F6 Receipt: Records all receipts into bank or cash accounts.

F7 Journal: Records adjustments between ledger accounts.