INTRODUCTION TO ACCOUNTING SOFTWARE

A number of readymade accounting softwares are available off-the-shelf, i.e., ready

to use such as Tally, Busy and Fact. But the most commonly and widely used
accounting software is Tally. It caters to the requirements of small and medium
level businesses. Accounting and Inventory Management Softwares available
are fast, powerful and multi-lingual. They are fully integrated, affordable and highly
reliable softwares designed to meet the requirements and include modules such
as sales, purchases, inventory, manufacturing and finance for small and medium
businesses. The use of such accounting softwares provides accurate, up-to-date
business information readily.

SALIENT FEATURES OF AN ACCOUNTING SOFTWARE

Simplicity: Accounting Softwares are easy to setup and simple to use. It also
generates easy to understand Financial Report.
Speed: They are capable of generating instant and accurate reports, which assist
the management in taking timely decisions.
Power: They are capable of maintaining accounts of multiple companies and with
unlimited levels of classification and creating grouping capabilities.
Flexibility: They provide flexibility to generate instant reports for any given
period (month/year) or at any point of time besides providing the facility to switch
from accounting to Inventory reports or to any other report of the same company
or any other companies.
Scalability: They normally suit any style of business needs and eliminates
the necessity for a business to change its style of operation, in order to adapt to
the application.
Real Time Processing: Accounting transactions are immediately posted and
updated in the books of account on the transactions being recorded, thereby
facilitating instant statements and reports. They also have facilities of real-time
multi-user environment.
Few accounting softwares are supported by other features also like remote access,
Control Centre, Support Centre and auditor’s edition.

SETUP AND INSTALLATION OF ACCOUNTING SOFTWARE—TALLY

Usually readymade software is accompanied by installation package (software) which

when run on the computers, sets up and installs the software carrying out defined
instructions. Alternatively, they may be downloaded from the software provider’s
website. In the following discussion, we have elaborated the installation process of
Tally.ERP 9 accounting software.
23.2 Double Entry Book Keeping — CBSE XI

Package Installation

Method 1
 Double click the install.exe icon on the CD.

Method 2

 Click START from Windows.

 Select RUN.
 TYPE <CD drive>:\INSTALL.
 Press ENTER.
Follow the instructions displayed on your
screen to proceed with the installation of
Tally.ERP 9.
 The Tally.ERP 9 Setup Wizard screen
is displayed as shown.
 Click Next to continue with the
installation.
The Tally.ERP 9 Setup screen appears.

(i) In the Programs section check select

Tally.ERP 9.
(ii) In the Tally.ERP 9 Setup section, you can accept the default directories as shown
or click on the buttons provided next to the respective text boxes to change the
path of Application Directory, Data Directory, Configuration Directory,
Language Directory and License Directory.
(a) Application Directory. The program files reside in this directory.
(b) Data Directory. By default
Tally.ERP 9 data is stored in
C:\Tally.ERP 9 \Data. During the
installation process, the wizard
detects and retains the data path
of previously installed version of
Tally.ERP 9.
(c) Configuration Directory. By
default the configuration files
reside in the application directory.
Tally 23.3

(d) Language Directory. By default the Language files with the extension .dct are
stored in the application directory.
In the License Details section, by default Use Local License File is selected.

License Directory. By default the license file resides in the license directory.
Note: Ensure that an earlier version of Tally.ERP 9 is activated. Enter the path of the license file
in License Directory. This enables you to run multiple instances of Tally.ERP 9 on the same
computer using a single license file.

(iii) Click Next.

(iv) In the Country/Language Selection screen, check Install Operating System
Language Support to install Tally.ERP 9 with multilingual support.
Note: To use Tally.ERP 9 in English only, un-check Install Operating Systems Language support.

(v) By default, India/SAARC appears

in the Country Selection. Select
Others if you are not residing in
India or any of the SAARC countries.
(vi) Click Install.
(vii) The Setup Status screen is displayed
as shown.
(viii) You will be prompted for the
language support files in the Files
needed screen, insert operating
systems CD in the drive or click
Browse and select the i386 folder where the required language support files
reside on your computer.
(ix) Click OK to install Language Support.
Note: In case you click Cancel or do not have the
operating system CD, the language support will
not be available. It means you will be able to use
English language only.

(x) In the installer screen click Finish to

complete Tally.ERP 9 Setup.
(xi) Click Finish to complete Tally.ERP 9
Installation.
To start the Tally.ERP 9 application, double
click the Tally.ERP 9 icon on the desktop.
23.4 Double Entry Book Keeping — CBSE XI

Company Creation
The term ‘company creation’ means setting up account of a business entity, which
may be a proprietorship firm, partnership firm or a company or even a Non-profit
organisation. The first step to get started in Tally.ERP 9, is to Create a Company.
The initial screen appears as shown:

The Gateway of Tally screen is separated into six sections, namely Horizontal
Button Bar, Main Area (Ctrl+M), Bottom Pane, Calculator Area (Ctrl+N),
Task Bar and Button Bar. The elements of the Gateway of Tally screen are
explained below:

Horizontal Button Bar

The Buttons, Print (Alt+P), Export (Alt+E), E-mail (Alt+M), Upload (Alt+O), Language
(Ctrl+L), Keyboard (Ctrl+K), Control Centre (Ctrl+K), Support Centre (Ctrl+H) and
Help (Alt+H) can be seen in the Horizontal Button Bar.
Control Centre (Ctrl+K) – To login control centre for account management.
Support Centre (Ctrl+H) – To access support incidents and queries and track the
resolution status.
Help (Alt+H) – To access Tally.ERP’s online context-sensitive help.
Tally 23.5

Main Area (Gateway of Tally)

The Main Area is separated into two:
1. Left-hand side area
2. Right-hand side area
The left-hand side provides information on Current Period, Current Date and List of
Selected Companies (Name of the company and the date when last entry has been made).
The right-hand side displays the Company Information menu such as Select a
Company, Create a Company, Backup a Company or Restore a Company and so on.
Hot Keys
Hot keys are capitalised and are red in colour on all the menu screens. Using the Hot
Keys in the Company Info. Screen will take you to that particular screen or display
the sub-menus within that Option.
Info. Panel
Tally.ERP 9 logo is displayed at the left of the Bottom Pane.
The Info. Panel contains the Version (every time a new release of Tally.ERP 9 is made,
it is identified with a different release name like Release 3), License, Configuration
blocks.
Creating a Company
Creating a Company means opening accounts for a new entity. It involves providing
basic information about the company whose books of account are to be maintained in
Tally.ERP 9.
Go to Gateway of Tally > (Alt+F3) Company Info. > Create Company

1.4.2013
1.4.2013

`
23.6 Double Entry Book Keeping — CBSE XI

A detailed explanation on each field is given below:

Directory
The data path where you desire the company to be created is specified in the Directory field.
This field is skipped by default when you create the company in the data path given
in the Tally.INI file. If you want to change it, use the backspace key and modify it to
the path required.
For example, the default Tally.ERP 9 data directory could be C:\TALLY.ERP\DATA.
You may now wish to create a new company on C:\TALLY.ERP\ PERSONAL, and some
other companies on C:\TALLY.ERP\BRANCHES. The next time, the default directory
displays C:\TALLY.ERP\DATA, and if you wish to work on the data of your branches,
press Backspace and enter C:\TALLY. ERP\BRANCHES for the directory name. This
displays the companies whose data is stored in that location in the List of Companies.
You can even give the path of a network server or any other storage device.
Name
Enter the name of the company
whose books are being opened. If
you are a professional accountant
and are maintaining the books
of your clients, give the Client
Company’s name.
Mailing Name and Address
In addition to the Company Name, Tally.ERP 9 provides the facility to enter the
Mailing Name field. It displays the Company Name by default. You may change it as
required, if the mailing name is different from the Company Name. The mailing name
and address details are picked up for inclusion in any report that needs the company
name and address as heading. For example: Balance Sheets, Statement of Accounts,
and so on.
Statutory Compliance
Select the Country from the List of Countries. The Statutory Features and Base
Currency Symbol are enabled in accordance with the country selected. For example, if
the accounts belong to a company in India, the base currency would be Indian Rupees.
The Base Currency will appear with respect to the Country selected.
Selecting India from the List of Countries brings up a State, Pin Code and Telephone
No. field.
State
You can select the appropriate state from the predefined list.
PIN Code
Specify the PIN Code (Postal Index Number) of the specified address.
Telephone
Enter the Telephone number.
E-mail Address
Enter the E-mail address that will be used to e-mail documents, reports and data from
Tally.ERP 9.
Tally 23.7

Currency Symbol
Currency symbol is the symbol of the base currency, that is, the currency that will be
used to maintain the books of account.
The symbol ` appears by default for India/SAARC Companies and the field is left blank
for International Companies.
Maintain
Tally.ERP 9 displays a drop down for the Type of Company with two options Accounts
only and Accounts with Inventory.
Select Accounts only if you do not have any inventory transactions (suitable for
professionals and corporate offices).
However, at a later date (if required) you can choose to alter the information as
Accounts-with-Inventory. Select Accounts-with-Inventory, to maintain both financial
accounts and inventory.
Financial Year
In most countries, the books of account of a company are maintained for a stipulated
period like, 12 months, 15 months, and so on. This stipulated period is referred to as
the Financial Year.

COMPANY SELECTION PROCESS

In order to load a company using the Select Company option, disable the default
loading of a company in Tally.ini file. Set Default Companies to No OR place a
semicolon before Load = 00001 (company number –placing a semicolon means that the
words following it in that line would not be executed. Each line is a separate command).
On double-clicking the Tally icon, the screen is displayed as shown:

You can use the Select Company option in two ways, from the Company Info. Menu
OR by using the button F1: Select Cmp(available on the Gateway of Tally screen).
23.8 Double Entry Book Keeping — CBSE XI

Press Enter on Select Company or use the button F1: Select Cmp. Tally.ERP 9
displays the following screen:

Tally.ERP 9 displays Company Name (All the companies created are displayed)
1. System-generated code for each company displayed
2. The Financial Year information relating to the number of years data present in
the company
Note: The system-generated code for each company is displayed to assist you in identifying which company you
wish to work on in case you have multiple companies with the same name (as displayed in the above screen).

Company Features in Tally.ERP 9

Different features of a company can be selected or modified by using the F11:
Features button. This button is available in almost all the screens of Tally.
ERP 9 enabling the user to modify it as and when your requirements change.
Unlike F12: Configure, F11: Company Features is specific to the current
company only. Therefore, each company may have different active features.
Configuration options, on the other hand, affect all companies maintained in
the same Tally.ERP 9 directory and setting the configuration for one company
will affect the configuration of other companies in that particular data directory.
Note: Certain features like multi-currency and multi-locations, once set to Yes, cannot be modified if the feature
has been used. However, other features like Bill-wise details, Reversing Journals & Optional vouchers, etc.,
can be modified even if they are used.

Go to Gateway of Tally > F11: Features

Tally 23.9

The F11: Features menu is displayed as shown.

The menu consists of the following options.

• Accounting Features
• Inventory Features
• Statutory & Taxation
• Tally.NET Features
• Tax Audit Features
Accounting Feature
This feature enables you to set the various Accounting Features required for
transaction entries.
• Go to Gateway of Tally > F11: Features > F1: Accounts
23.10 Double Entry Book Keeping — CBSE XI

ACCOUNT GROUPS

Accounts Info menu as shown in the figure is used to create ‘Group’, ‘Ledger’ and
‘Voucher Type’.

1.4.2013 to 31.3.2014 Monday, 1st April, 2013

Groups are collection of Ledgers of the same nature. Account Groups are maintained
to determine the hierarchy of Ledger Accounts. It is used for preparation of Financial
Statements, i.e., Profit and Loss Account and Balance Sheet.
The Group behaviour is classified into Capital or Revenue and more specifically into
Assets, Liabilities, Income and Expenditure. The Groups ascertain whether the same
will affect Profit and Loss Account which is revenue in nature or Balance Sheet which
is capital in nature.
Groups are collection of Ledgers of the same nature. Account Groups are maintained
to determine the hierarchy of Ledger Accounts which is helpful in determining and
presenting meaningful and compliant reports.
Pre-defined Groups in Tally.ERP 9
By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The
Primary Group cannot be deleted, however, it can be renamed which is not suggested.
The user can create any number of Primary Groups and Sub-Groups which are again
grouped under a Primary Group/Sub-Group.
There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary
Groups and 13 are Sub-Groups.
15 Primary Groups
Branch/Divisions Capital Account Current Assets Current Liabilities Direct Expenses
Direct Income Fixed Assets Indirect Expenses Indirect Incomes Investments
Loans (Liability) Misc. Expenses (Asset) Purchase Accounts Sales Accounts Suspense A/c
Tally 23.11

Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which
are Capital in nature and 6 Primary Groups appear under Profit and Loss Account
which are Revenue in nature.
13 Sub-Groups are classified under the 15 Primary Groups and they appear in the
Balance Sheet.
Pre-defined Sub-Groups Under
Bank Accounts Current Assets
Bank OD A/c Loans (Liability)
Cash-in-hand Current Assets
Deposits (Asset) Current Assets
Duties & Taxes Current Liabilities
Loans & Advances (Asset) Current Assets
Provisions Current Liabilities
Reserves & Surplus Capital Account
Secured Loans Loans (Liability)
Stock-in-hand Current Assets
Sundry Creditors Current Liabilities
Sundry Debtors Current Assets
Unsecured Loans Loans (Liability)

Further, creation of group and sub-group depends on the nature of the company. It
should be kept in mind that the presentation of the financial statement depends on the
group and sub-group. Every time when a ledger is created it must be under some group
or sub-group. For example, if we want to create Share Capital Account or Reserve and
Surplus or Partner’s Capital Account it must be under the Capital Account Group. In
the same way when we want to create individual debtors accounts it must be under
‘Sundry Debtors’ group. Doing this summarises the ledger under the group in financial
statement.

CREATION OF GROUP
Go to Gateway of Tally > Accounts Info.> Group
Single Group option is useful when you wish to work on
one Group at a time. Multiple Group option is very useful
when you are working on many sub-groups at a time and
saves a lot of time. Once a sub-group is created, it behaves
exactly like a Group.

Create
The Create option is used to create new masters.

Display
The Display option is used to view the Master information.
Master information cannot be modified in Display mode.
23.12 Double Entry Book Keeping — CBSE XI

Alter
The Alter option allows you to view and make the necessary changes to the master
information. This does not allow the creation of masters.
Creating a Group with advanced usage
Go to Gateway of Tally > Accounts Info > Groups > Create under Single Group > select
F12 configure (Group Configuration) and enable Allow Advanced entries in Masters
under Accounts Masters

When the option ‘Primary’ is selected after ‘Name’ of the group

under the group type, ‘Nature of Group’ box appear where
one among four natures must be selected. These are Assets,
Expenses, Income and Liabilities. If we select Assets or Liabilities
it will come in the Balance sheet and if we select Income and
Expenditure it will come under Profit and Loss Account.
If Income or Expenses is selected it must be specified whether it
will affect the gross profit or not. If the option is selected as Yes,
the Group will appear under Trading Account and if the option is selected as No, the
Group will appear under Profit and Loss Account.
Tally 23.13

Group behaves like sub-ledger?

This option will allow such Groups to behave as defined in the Master to act as equal
to the behaviour of Ledger. When Group behaves like sub-ledger is set to No, the same
will display all the Ledgers grouped under the same in detailed mode.

Net Debit/Credit Balances for Reporting?

Setting this option to Yes will display either the net debit or credit balance in the
report (whichever is higher). If this is set to No, both debit and credit balances will be
displayed in the report.

Used for Calculation (e.g., taxes, discounts)?

Set this option to ‘Yes’ if ledgers under this group would have percentages for
discounts/taxes to be used in invoice entry. This gets reflected while passing voucher
entry in Invoice mode and for automatic calculations.

Account Ledgers Creation

A Ledger is the actual account head in which you identify
a transaction and must be used in all Accounting Vouchers.
Without a ledger we cannot record any transactions. There are
two pre-defined ledgers available in Tally.ERP 9, they are
Cash and Profit and Loss Account.
To Create a Ledger
Go to Gateway of Tally > Accounts Info > Ledgers > Single
Ledger > Create

You can also select Multiple Ledgers when you want to create multiple ledgers.

(on 1-Apr-2013)
23.14 Double Entry Book Keeping — CBSE XI

Name
Enter the Name of the account. You can provide the full name of the account. Press
Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names.
The uniqueness check is made here itself. Tally.ERP 9 converts the first letter of all
relevant words to upper case, which helps you; speed up data entry.

Alias
Enter an alias name if required. You can access the Ledgers using the original name
or the alias name.

Under
All accounts must be classified under their appropriate Groups. Select the Group under
which the Ledger is created from the List of Groups. A wrong classification would
affect the treatment of the Ledger account in final statements and during voucher
entry. You can, alter a Ledger account to change its group classification at any time.

Opening Balance
If the accounts of an existing company are transferred in Tally.ERP 9, in this case
‘Opening Balance’ option would be applicable.

Maintain Balances Bill-by-Bill

This option is applicable when you want the balances to be maintained Bill-by-Bill or
Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors &
Sundry Creditors. If you set this option to Yes, while entering the opening balance in
the Opening Balance field at the end of Ledger Creation screen and press Enter, the
Bill-wise Breakup screen of the Ledger created is displayed as shown.

31/3/2018 1-Aug-2018

31/3/2018 30-Sep-2018

Date: Here enter the date of the bill.

Name: Enter the Bill number or Document number.
Due date (or credit days): For the Ledgers under Sundry Debtors and Creditors, give
the credit period or the date when the bill is due.
Tally 23.15

Amount: Enter the amount of the bill due.

In this way you can enter all the particulars of pending bills one by one.
You can alter the information any time by selecting
Gateway of Tally > Accounts Info > Ledgers > Alter > Press Alt+D

VOUCHER ENTRY
Accounting Voucher is the primary document in which the complete details of
accounting transaction is recorded, like:
(i) Payment of Salary to Employees and (ii) Withdrawal of Cash from Bank Account.
As per the classic accounting principle, all accounting transactions may be entered in
Journal Voucher. In fact, in old days, people used only one day book called Journal to
record all transactions, cash or non-cash.
The following are the basic voucher types, considered essential by all kinds of business,
irrespective of its nature, size or book keeping methods.
(i) Receipt: To record receipts of money by cash, cheque, bank transfers, etc.
(ii) Payment: To record payments of money by cash, cheque, bank transfers, etc.
(iii) Journal: To record all Non-cash transactions (all accounting transactions not
involving any cash or bank ledger).
(iv) Contra: To record transfer of funds between Cash and Bank Accounts.
The Voucher Entry screen is divided into three parts:
(i) The Main Voucher Entry, (ii) Button Bar, and (iii) Calculator

1st April, 2014

23.16 Double Entry Book Keeping — CBSE XI

Receipt Voucher
Any money received from debtors against sales Invoices or on Account and for all
transactions where money is received is accounted or entered into Tally.ERP 9 using
the Receipt Voucher.
To view the Receipt Voucher screen:
Go to Gateway of Tally > Accounting Vouchers
1. Select F6: Receipt from the button bar or press F6.
Example:
(i) Kamal started business with cash ` 10,00,000 on 1st April, 2016.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 1 Receipt Voucher Date: 01-04-2016
Particulars Debit Credit
Cash Dr. 10,00,000
To Capital 10,00,000
Amount (In Words) : ` Ten Lakhs only 10,00,000 10,00,000
(Being business started with cash)
Receiver’s Signature Authorised Signatory
(ii) Interest Received ` 9,600 on 2nd April, 2016.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 2 Receipt Voucher Date: 02-04-2016
Particulars Debit Credit
Axis Bank Dr. 9,600
To Interest 9,600
Amount (In Words) : ` Nine Thousand Six Hundred Only 9,600 9,600
(Being interest credited by Bank)
Receiver’s Signature Authorised Signatory

Contra Voucher
As per the Accounting Principles, a Contra entry is a transaction involving transfer
of cash between one Bank A/c to another or one Cash A/c to another Bank A/c, i.e.,
is a transaction indicating transfer of funds from:
• Cash Account to Bank Account • Bank Account to Cash Account
• Bank Account to Bank Account
To view the Contra Voucher Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
Select F4: Contra from the Button Bar or press F4
Example:
(i) Out of capital, ` 5,00,000 were deposited into Bank on 2nd April, 2016.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 1 Contra Voucher Date: 02-04-2016
Particulars Debit Credit
Axis Bank Dr. 5,00,000
To Cash 5,00,000
Amount (In Words) : ` Five Lakhs Only 5,00,000 5,00,000
(Being cash deposited into bank)
Receiver’s Signature Authorised Signatory
Tally 23.17

(ii) Transferred ` 5,500 to petty Cash Account from main cash on 02-04-16.

ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI

No. : 1 Contra Voucher Date: 02-04-2016
Particulars Debit Credit

Petty Cash Dr. 5,500

To Cash 5,500
Amount (In Words) : ` Five Thousand Five Hundred Only 5,500 5,500
(Being cash transferred to Petty Cash Account)
Receiver’s Signature Authorised Signatory

Payment Voucher
Payment voucher is used to account all the payments made by the company by way
of Cash/Bank.
To view the Payment Voucher entry screen:
Go to Gateway of Tally > Accounting Vouchers
Select F5: Payment from the Button Bar or press F5.
Example:
(i) ` 1,500 paid towards Printing & Stationery A/c from Petty Cash on 02-04-16.

ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI

No. : 1 Payment Voucher Date: 02-04-2016
Particulars Debit Credit
Printing & Stationery Dr. 1,500
To Petty Cash 1,500
Amount (In Words) : ` One Thousand Five Hundred Only 1,500 1,500

Received with thanks from______________` 1,500 (Rupees One Thousand Five Hundred Only)
Receiver’s Signature Authorised Signatory

(ii) Paid Commission ` 1,000 to Mr. Mohit from Petty Cash on 03-04-2016.

ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI

No. : 2 Payment Voucher Date: 03-04-2016
Particulars Debit Credit
Commission Dr. 1,000
To Petty Cash 1,000
Amount (In Words) : ` One Thousand Only 1,000 1,000
Received with thanks from______________` 1,000 (Rupees One Thousand Only)

Receiver’s Signature Authorised Signatory

23.18 Double Entry Book Keeping — CBSE XI

(iii) Paid Office Rent for the month of April `22,000 on 02-05-2016.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 3 Payment Voucher Date: 02-05-2016
Particulars Debit Credit

Office Rent Dr. 22,000

To Cash 22,000
Amount (In Words) : ` Twenty Two Thousand Only 22,000 22,000
Received with thanks from ____________ ` 22,000 (Rupees Twenty Two Thousand Only)
Receiver’s Signature Authorised Signatory

(iv) Paid Advertising Exp. for ` 2,000 through cash on 02-05-2016.

ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 4 Payment Voucher Date: 02-05-2016
Particulars Debit Credit

Advertising Exp. Dr. 2,000

To Cash 2,000
Amount (In Words) : ` Two Thousand Only 2,000 2,000
Received with thanks from____________` 2,000 (Rupees Two Thousand Only)
Receiver’s Signature Authorised Signatory

Journal Voucher
Journal Vouchers are used to adjust the debit and credit amounts without involving
the Cash or Bank Accounts. Hence, they are referred to as adjustment entries.
Go to Gateway of Tally > Accounting Vouchers
Click on F7: Journal on the Button Bar or press F7.
Example:
(i) Purchased machinery from Paul & Sons for ` 50,000 on credit on 2nd May, 2016.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 1 Journal Voucher Date: 02-05-2016
Particulars Debit Credit

Machinery Dr. 50,000

To Paul & Sons 50,000
Amount (In Words) : ` Fifty Thousand Only 50,000 50,000
(Being Machinery purchased)
Receiver’s Signature Authorised Signatory
(ii) Provide 10% depreciation on Machinery Costing ` 50,000 on 31st March, 2017.
ABC ENTERPRISES SOUTH EX PART-1, NEW DELHI
No. : 2 Journal Voucher Date: 31-03-2017
Particulars Debit Credit

Depreciation Dr. 5,000

To Machinery 5,000
Amount (In Words) : ` Five Thousand Only 5,000 5,000
(Being the depreciation provided for the year @ 10%)
Receiver’s Signature Authorised Signatory
Tally 23.19

REPORTS

To see the ledger Report

Go to Gateway of Tally > Display > Accounts Book > Select Ledger
ABC ENTERPRISES
South Ex-Part 1, New Delhi
Cash Book
1st April, 2016 to 31st March, 2017
Page 1
Date Particulars Vch Type Vch No. Debit Credit
1st April, 2016 Cr. Capital Receipt 1 10,00,000
2nd April, 2016 Dr. Axis Bank Contra 1 5,00,000
2nd April, 2016 Dr. Petty Cash Contra 2 5,500
10,00,000 5,05,500
Dr. Closing Balance 4,94,500
10,00,000 10,00,000
1st May, 2016 Cr. Opening Balance 4,94,500
2nd May, 2016 Dr. Office Rent Payment 3 22,000
Dr. Advertising Exp. Payment 4 2,000
4,94,500 24,000
Dr. Closing Balance 4,70,500
4,94,500 4,94,500

To see the Trial Balance

Go to Gateway of Tally > Display > Trial Balance
ABC ENTERPRISES South Ex-Part 1, New Delhi
Trial Balance 1st April, 2016 to 31st March, 2017 Page 1
Particulars Closing Balance
Debit Credit
Capital Account 10,00,000
Capital 10,00,000
Current Liabilities 50,000
Sundry Creditors 50,000
Fixed Assets 45,000
Machinery 45,000
Current Assets 9,83,100
Cash-in-Hand* 4,73,500
Bank Accounts 5,09,600
Indirect Incomes 9,600
Interest Rec. 9,600
Indirect Expenses 31,500
Advertising Exp. 2,000
Commission 1,000
Depreciation 5,000
Office Rent 22,000
Printing and Stationery 1,500
Grand Total 10,59,600 10,59,600
*1. Includes Petty Cash Balance of ` 3,000 (` 5,500 – ` 1,500 – ` 1,000).
2. Bank Accounts Includes Interest of ` 9,600.
23.20 Double Entry Book Keeping — CBSE XI

To see the Financial Statement

Go to Gateway of Tally > Reports > Balance Sheet
ABC ENTERPRISES South Ex-Part 1, New Delhi
Balance Sheet as at 31st March, 2017
Liabilities Assets
Capital Account 10,00,000 Fixed Assets 45,000
Capital: 10,00,000 Machinery 45,000
Loans (Liability) Current Assets 9,83,100
Closing Stock
Current Liabilities 50,000 Cash-in-Hand 4,73,500
Sundry Creditors 50,000 Bank Accounts 5,09,600
Profit and Loss A/c 21,900
Opening Balance
Current Period 21,900
Total 10,50,000 Total 10,50,000

Go to Gateway of Tally > Reports > Profit & Loss A/c

ABC ENTERPRISES South Ex-Part 1, New Delhi
Profit and Loss A/c for the year ended 31st March, 2017
Particulars Particulars
Indirect Expenses 31,500 Indirect Incomes 9,600
Advertising Exp. 2,000 Interest Rec. 9,600
Commission 1,000
Depreciation 5,000 Net Loss 21,900
Office Rent 22,000
Printing and Stationery 1,500
Total 31,500 Total 31,500

Illustration 1.
From the following information create the company and enter the transactions into
Tally and show the financial statement:
(i) 1-04-2016 : Mr. Ashok started business with cash ` 3,00,000.
(ii) 2-04-2016 : Mr. Ashok opened Current Account in ICICI Bank, Delhi for the
firm and deposited cash of ` 2,50,000.
(iii) 8-04-2016 : Mr. Ashok paid ` 31,000 by cheque (Chq. No. 124500), out of which
` 25,000 were paid as security deposit of premises and advance rent
for three months at ` 2,000 per month.
(iv) 11-04-2016 : Mr. Ashok purchased Furniture and Fixture worth ` 70,000 for the
shop by cheque (Chq. No. 124501).
(v) 2-05-2016 : Mr. Ashok issued cheques to purchase the following Assets:
Assets Cost (`) Cheque No.
Cell Phone 5,500 124502
Computer 25,000 124503
Electrical Fittings 5,000 124504

(vi) 09-05-2016 : Additional cash introduced into the business ` 5,00,000.

Tally 23.21

(vii) 13-05-2016 : Mr. Ashok withdrew ` 50,000 through cheque for Shop Expenditure
from ICICI Bank (Chq. No. 124505).
(viii) 30-05-2016 : Make an entry for the salary due of all staff for the month of
May, 2016.
The details are as follows:

Name Salary Paid

Rahul Bhatt ` 4,000
Sunil ` 2,500
Ajit ` 1,500

(ix) 10-06-2016 : Mr. Ashok Purchased for ` 3,25,000 Items 1 from A2Z Traders
on Credit Bill No. 123.
(x) 10-06-2016 : Paid salary by cash.
(xi) 15-06-2016 : Mr. Ashok paid ` 2,500 in Cash for stationery, printing invoices
and vouchers to Cannon Traders.
(xii) 20-06-2016 : Mr. Ashok withdrew ` 5,000 in cash for personal use.
(xiii) 4-07-2016 : Mr. Ashok received the statement of cash expenditure from cashier
for April, May and June, 2016. The statement is as follows:
Name of Expenditure Amount (`)
Cell phone bill ` 600
Shop maintenance Expenses ` 450

(xiv) 4-07-2016 : Adjust the advance rent.

(xv) 8-07-2016 : Mr. Ashok paid an advance rent for three months ` 6,000 by
cheque (Chq. No. 124506).
(xvi) 16-08-2016 : Mr. Ashok issued a cheque to A2Z Traders for ` 3,23,000 after
deducting the Discount of ` 2,000. He received a Discount as he
agrees to pay the entire Bill Amount (Chq. No. 124507).
(xvii) 02-09-2016 : Mr. Ashok sold for ` 3,00,000 Item 1 to Trading Corporation
on credit Bill No. 1245. And allowed a trade discount at the rate
of 2%.
(xviii) 10-10-2016 : Mr. Ashok Purchased for ` 75,000 Item 1 from A2Z Traders on
credit Bill No. 168.
(xix) 1-11-2016 : Mr. Ashok Sold for ` 1,95,000 item 1 to Tech Pvt. Ltd. on credit
Bill No. 1245.
(xx) 10-12-2016 : Mr. Ashok received a cheque from Trading Corporation against
Sales made on 1-09-2016.
(xxi) 02-01-2017 : Mr. Ashok received a cheque from Tech Pvt. Ltd. against Sales
made on 1-11-2016.
23.22 Double Entry Book Keeping — CBSE XI

Solution:
Create company by the name of Ashok & Company
Go to Gateway of Tally>Create Company
Fill the form and press ‘y’ to select yes at the end to create the company.

`
1-4-2016
1-4-2016

(i) 1-4-2016 : Mr. Ashok started business with cash ` 3,00,000.

As per Tally
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Mr. Ashok Capital A/c (Under Capital Account)
Make Entry of the Transaction in Receipt Voucher
Go to Gateway of Tally.ERP > Accounting Voucher > F6:Receipt

1-Apr-2016
Friday

(ii) 2-4-2016 : Mr. Ashok opened Current Account in ICICI Bank, Delhi for the firm
and deposited cash of ` 2,50,000.
Create Ledger of ICICI Bank (Under Bank Account)
Tally 23.23

Make an entry of the transaction in Contra Voucher

Go to Gateway of Tally > Accounting Voucher > Press F4

2-Apr-2016
Saturday

(iii) 8-4-2016 : Mr. Ashok paid ` 31,000 by cheque (Chq. No. 124500), out of which
` 25,000 were paid as security deposits of premises and advance rent for
three months at ` 2,000 per month.
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Security Deposits A/c (Under Deposits Assets)
Advance Rent A/c (Under Current Assets)
Go to Gateway of Tally > Accounting Voucher > Press F5

Payment No. 1 8-Apr-2016

Friday

Particulars Debit Credit

Dr Advance Rent A/c 6,000
Cur Bal: 6,000 Dr
Dr Security Deposits A/c 25,000
Cur Bal: 25,000 Dr
Cr ICICI Bank A/c 31,000
Cur Bal: 2,19,000 Dr

(iv) 11-4-2016 : Mr. Ashok purchased Furniture and Fixture worth ` 70,000 for the
shop by cheque (Chq. No. 124501).

Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create

23.24 Double Entry Book Keeping — CBSE XI

Create Ledger: Furniture and Fixture A/c (Under Fixed Assets)

Go to Gateway of Tally > Accounting Voucher > Press F5

11-Apr-2016
Monday

(v) 02-5-2016 : Mr. Ashok issued cheques to purchase the following Assets:

Assets Cost (`) Cheque No.
Cell Phone 5,500 124502
Computer 25,000 124503
Electrical Fittings 5,000 124504

Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Cell Phone A/c, Computer A/c, Electrical Fittings A/c (Under
Fixed Assets)
Go to Gateway of Tally > Accounting Voucher > Press F5

2-May-2016
Monday
Tally 23.25

(vi) 09-05-2016 : Additional cash introduced into the business of ` 5,00,000.

Go to Gateway of Tally > Accounting Voucher > Press F6

9-May-2016
Monday

(vii) 13-05-2016
: Mr. Ashok withdrew ` 50,000 through cheque for Shop Expenditure
from ICICI Bank (Chq. No. 124505).
Go to Gateway of Tally > Accounting Voucher > Press F4

13-May-2016
Friday

(viii) 30-05-2016 : Make an entry for the Salary Due of all staff for the month of
May, 2016.
The details are as follows:
Name Salary Paid
Rahul Bhatt ` 4,000
Sunil ` 2,500
Ajit ` 1,500
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Salary A/c (Under Indirect Expenses)
Outstanding Salary (Under Current Liabilities)
Go to Gateway of Tally > Accounting Voucher > Press F7
23.26 Double Entry Book Keeping — CBSE XI

30-May-2016
Monday

(ix) 10-06-2016 : Mr. Ashok Purchased for ` 3,25,000 Items 1 from A2Z Traders on
Credit. Bill no 123.
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Purchase A/c (Under Purchase Account)
A2Z Traders A/c (Under Sundry Creditors)
Go to Gateway of Tally > Accounting Voucher > Press F7

10-Jun-2016
Friday

(x) 10-06-2016 : Paid salary by cash.

Go to Gateway of Tally > Accounting Voucher > Press F5

10-Jun-2016
Friday
Tally 23.27

(xi) 15-6-2016 : Mr. Ashok paid ` 2,500 in Cash for stationery, printing invoices and
vouchers to Cannon Traders.
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Printing & Stationery A/c (Under Indirect Expenses A/c)
Go to Gateway of Tally > Accounting Voucher > Press F5

15-Jun-2016
Wednesday

(xii) 20-6-2016 : Mr. Ashok withdrew ` 5,000 in cash for personal use.
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Ashok Drawings A/c (Under Capital Account)
Go to Gateway of Tally > Accounting Voucher > Press F5

20-Jun-2016
Monday

(xiii) 4-7-2016
: Mr. Ashok received the statement of cash expenditure from
Cashier for April, May and June, 2016. The statement is as follows:
Name of Expenses Amount (`)
Cell phone bill 600
Shop maintenance Expenses 450
Go to Gateway of Tally > Account info >Ledger >Single Ledger > Create
Create Ledger: Telephone exp. and Maintenance exp. A/c (Under Indirect
Expenses)
Go to Gateway of Tally > Accounting Voucher > Press F5
23.28 Double Entry Book Keeping — CBSE XI

4-Jul-2016
Monday

(xiv) 4-7-2016 : Adjust the advance rent.

Go to Gateway of Tally > Accounting Voucher > Press F7

4-Jul-2016
Monday

(xv) 8-7-2016 : Mr. Ashok Paid an advance rent for three months ` 6,000 by
cheque (Chq. No.124506).
Go to Gateway of Tally > Accounting Voucher > Press F5

8-Jul-2016
Friday
Tally 23.29

(xvi) 16-8-2016
: Mr. Ashok issued a cheque to A2Z Traders for ` 3,23,000 after
deducting the Discount of ` 2,000. He received a Discount as he
agreed to pay the entire Bill Amount (Chq. No. 124507).
Go to Gateway of Tally > Accounting Voucher > Press F5
Create Ledger: Discount Received (Under Indirect Income)

Payment No. 9 16-Aug-2016

Tuesday
Particulars Debit Credit
Dr A2Z A/c 3,25,000
Cur Bal: 0 Dr
Agst Ref 123 3,25,000 Dr
Cr Discount Received A/c 2,000
Cur Bal: 2,000 Cr
Cr ICICI Bank A/c 3,23,000
Cur Bal: 2,65,500 Cr

(xvii) 02-09-2016 : Mr. Ashok sold for ` 3,00,000 item 1 to Trading Corporation on
credit Bill No.1245. And allowed a trade discount at the rate of 2%.
Go to Gateway of Tally > Accounting Voucher > Press F7
Create Ledger: Sales A/c (Under Sales Account)
Trading Corporation A/c (Under Sundry Debtors)

2-Sep-2016
Friday

(xviii) 10-10-2016 : Mr. Ashok Purchased for ` 75,000 Items 1 from A2Z Traders on
credit Bill No. 168.
Go to Gateway of Tally > Accounting Voucher > Press F7
23.30 Double Entry Book Keeping — CBSE XI

10-Oct-2016
Monday

(xix) 1-11-2016 : Mr. Ashok Sold for ` 1,95,000 item 1 to Tech Pvt.Ltd. on credit
Bill No.1245.
Go to Gateway of Tally > Accounting Voucher > Press F7
Create Ledger: Tech Pvt.Ltd. A/c (Under Sundry Debtors)

Journal No. 6 1-Nov-2016

Tuesday
Particulars Debit Credit
Dr Tech Pvt. Ltd. 1,95,000
Cur Bal: 1,95,000 Dr
New Ref 1245 1,95,000 Dr
Cr Sales A/c 1,95,000
Cur Bal: 4,89,000 Cr

(xx) 10-12-2016 : Mr. Ashok received a cheque from Trading Company against Sales
made on 1-09-2016.
Go to Gateway of Tally> Accounting Voucher > Press F6

10-Dec-2016
Saturday
Tally 23.31

(xxi) 02-1-2017
: Mr. Ashok received a cheque from Tech Pvt. Ltd. against Sales
made on 1-11-2016.
Go to Gateway of Tally > Accounting Voucher > Press F6

Receipt No. 4 2-Jan-2017

Monday
Particulars Debit Credit
Cr Tech Pvt. Ltd. 1,95,000
Cur Bal: 0 Cr
New Ref 1245 1,95,000 Cr
Dr ICICI Bank A/c 1,95,000
Cur Bal: 2,23,500 Dr

Balance Sheet

as at 2-Jan-2017 as at 2-Jan-2017
23.32 Double Entry Book Keeping — CBSE XI

Profit and Loss A/c

Ashok & Company Ashok & Company

Particulars 1-Apr-2016 to 2-Jan-2017 Particulars 1-Apr-2016 to 2-Jan-2017

Purchase Accounts 4,00,000 Sales Account 4,89,000

Purchase A/c 4,00,000 Sales A/c 4,89,000

Gross Profit c/o 89,000
4,89,000 4,89,000

Indirect Expenses 17,550 Gross Profit b/f 89,000

Maintenance Exp. A/c Indirect Incomes
450 2,000
Printing & Stationery A/c 2,500 Discount Received A/c 2,000
Rent A/c 6,000
Salary A/c 8,000
Telephone Exp. A/c 600

Net Profit 73,450

Total 91,000 Total 91,000

Illustration 2. Live Project Based on Existing Company

XYZ Enterprises provide you the following balance and you are required to create the
following ledger and assign opening balance:

XYZ ENTERPRISES
as at 1-Apr-2013
Liabilities ` Assets `
Capital Account 26,90,000 Fixed Assets 28,00,000
Reserves & Surplus 1,90,000 Building 13,00,000
Capital 25,00,000 Furniture and Fixture 5,00,000
Loans (Liability) 10,50,000 Plant & Machinery 10,00,000
Secured Loans 10,50,000 Investments 80,000
Current Liabilities 1,30,000 Fixed Deposit 80,000
Sundry Creditors* 90,000 Current Assets 10,80,000
Outstanding AMC 20,000 Closing Stock
Outstanding Rent 20,000 Sundry Debtors* 1,40,000
Profit & Loss A/c 90,000 Cash-in-Hand 3,40,000
Opening Balance 90,000 Bank Accounts 5,90,000
Current Period Accrued Interest 10,000
Total 39,60,000 Total 39,60,000
Tally 23.33

*Sundry Creditors’ & Sundry Debtors’ details are given below:

Sundry Debtors Sundry Creditors
Party’s Name Opening Party’s Name Opening
Balance Balance
XZONE SERVICES PVT. LTD. 71,500 MINOCHA FURNITURE 43,000
Contact Person: Rajesh Bhatt Contact Person:-Vijay Pal Rawat
Bills Details of Previous Yr. Amount Bills Details of Previous Yr. Amount
01/06/2012SAL/XS/06/12-13 34,256 01/08/2012PUR/MF/02/12-13 18,300
01/09/2012SAL/XS/08/12-13 37,244 05/09/2012PUR/MF/04/12-13 24,700
SILVER SURFER SOLUTION PVT. LTD. 68,500 FM ADVERTISING 47,000
Contact Person: Anil Bailwal Contact Person: Mukesh Pant
01/05/2012SAL/SS/05/12-13 33,225 01/05/2012PUR/FD/03/12-13 14,525
16/07/2012SAL/SS/04/12-13 35,275 01/06/2012PUR/FD/22/12-13 32,475

Reports
Gateway of Tally > Display > Statement of Account > Bills Outstanding > Receivable
Bills Receivable For 1-Apr-2013

Date Ref. No. Party’s Name Pending Due on Overdue

Amount by days
01/05/2012 SAL/SS/05/12-13 Silver Surfer Solution Pvt. Ltd. 33,225 31/05/2012 305
01/06/2012 SAL/XS/06/12-13 Xzone Service Pvt. Ltd. 34,256 01/07/2012 274
16/07/2012 SAL/SS/04/12-13 Silver Surfer Solution Pvt. Ltd. 35,275 15/08/2012 229
01/09/2012 SAL/XS/08/12-13 Xzone Service Pvt. Ltd. 37,244 01/10/2012 182
1,40,000
Gateway of Tally > Display > Statement of Account > Bills Outstanding > Payable
Bills Payable For 1-Apr-2013

Date Ref. No. Partys’ Name Pending Amount Due on Overdue by days
01/05/2012 PUR/FD/03/12-13 FM Advertising 14,525 31/05/2012 305
01/06/2012 PUR/FD/22/12-13 FM Advertising 32,475 31/03/2013 1
01/08/2012 PUR/MF/02/12-13 Minocha Furniture 18,300 31/08/2012 213
05/09/2012 PUR/MF/04/12-13 Minocha Furniture 24,700 05/10/2012 178
90,000
(i) Purchased Glow Sign Board by cash ` 2,500 on 02.04.13.
XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 1 Payment Voucher Date: 02-04-2013

Particulars Amount

Glow Sign Board............................................................................................................................................................................ 2,500 (Dr.)

Cash.................................................................................................................................................................................................... 2,500 (Cr.)
Amounts (In Words): ` Two Thousand Five Hundred Only

Received with thanks from____________` 2,500 (Rupees Two Thousand Five Hundred Only)
Receiver’s Signature Authorised Signatory
23.34 Double Entry Book Keeping — CBSE XI

(ii) Paid outstanding AMC charges amounted ` 20,000 through Axis Bank
Ch. No.15551 on 03.04.13.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 2 Payment Voucher Date: 03-04-2013

Particulars Amount

Outstanding AMC Charges........................................................................................................................................................ 20,000 (Dr.)

Axis Bank (Chq. No. 15551)....................................................................................................................................................... 20,000 (Cr.)
Amount (In Words): ` Twenty Thousand Only

Received with thanks from____________` 20,000 (Rupees Twenty Thousand Only)

Receiver’s Signature Authorised Signatory

(iii) Paid outstanding rent amounted ` 20,000 through Axis Bank Chq. No.15552 on
03.04.13.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 3 Payment Voucher Date: 03-04-2013
Particulars Amount
Outstanding Rent.......................................................................................................................................................................... 20,000 (Dr.)
Axis Bank (Chq. No. 15552)....................................................................................................................................................... 20,000 (Cr.)
Amount (In Words): ` Twenty Thousand Only
Received with thanks from____________` 20,000 (Rupees Twenty Thousand Only)

Receiver’s Signature Authorised Signatory

(iv) On 2.5.13, ` 18,300 paid to Minocha Furniture and ` 14,525 to FM Advertising.

Both cheques cleared from Axis Bank (Ch# 15553, 15554) respectively.
(Ref#PUR/MF/02/12-13 & PUR/FD/03/12-13)

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 4 Payment Voucher Date: 02-05-2013
Particulars Amount
Minocha Furniture......................................................................................................................................................................... 18,300 (Dr.)
FM Advertising............................................................................................................................................................................... 14,525 (Dr.)
Axis Bank (Chq. No. 15553,15554).......................................................................................................................................... 32,825 (Cr.)
Amount (In Words) ` Thirty Two Thousand Eight Hundred Twenty Five Only
Received with thanks from____________` 32,825 (Rupees Thirty Two Thousand Eight Hundred Twenty Five Only)

Receiver’s Signature Authorised Signatory

Tally 23.35

(v) Purchased machinery worth ` 1,50,000 and paid through cheque of Axis Bank
(Chq. #15555) on 02.05.13.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 5 Payment Voucher Date: 02-05-2013
Particulars Amount
Machinery......................................................................................................................................................................................... 1,50,000 (Dr.)
Axis Bank (Chq. No. 15555)....................................................................................................................................................... 1,50,000 (Cr.)
Amount (In Words) ` One Lakh Fifty Thousand Only
Received with thanks from____________` 1,50,000 (Rupees One Lakh Fifty Thousand Only)

Receiver’s Signature Authorised Signatory

(vi) Payment made for advertising of ` 30,000 for launching a new product in market
on 02.06.13 through Cheque No. 15556.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Payment Voucher
No. : 6 Date: 02-06-2013

Particulars Amount

Advertising [Misc. Expenses (Asset)]........................................................................................................... 30,000 (Dr.)

Axis Bank (Chq. No. 15556)....................................................................................................................................................... 30,000 (Cr.)
Amount (In Words): ` Thirty Thousand Only

Received with thanks from____________` 30,000 (Rupees Thirty Thousand Only)

Receiver’s Signature Authorised Signatory

(vii) ` 3,200 paid towards Printing & Stationery A/c on 02.06.13.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Payment Voucher
No. : 7 Date: 02-06-2013

Particulars Amount

Printing & Stationery.................................................................................................................................................................... 3,200 (Dr.)

Cash.................................................................................................................................................................................................... 3,200 (Cr.)
Amount (In Words): ` Three Thousand Two Hundred Only

Received with thanks from____________` 3,200 (Rupees Three Thousand Two Hundred Only)

Receiver’s Signature Authorised Signatory

23.36 Double Entry Book Keeping — CBSE XI

(viii) Paid Commission ` 2,500 to Mr. Sujit on 02.06.2013.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Payment Voucher
No. : 8 Date: 02-06-2013

Particulars Amount

Commission..................................................................................................................................................................................... 2,500 (Dr.)

Cash.................................................................................................................................................................................................... 2,500 (Cr.)
Amount (In Words): ` Two Thousand Five Hundred Only

Received with thanks from____________` 2,500 (Rupees Two Thousand Five Hundred Only)

Receiver’s Signature Authorised Signatory

(ix) Paid Quarterly Office Rent ` 55,000 on 02.06.2013. Payment made through Axis
Bank (Chq. No. 15557).
XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Payment Voucher
No. : 9 Date: 02-06-2013

Particulars Amount
Office Rent........................................................................................................................................................................................ 55,000 (Dr.)
Axis Bank (Chq No. 15557.)....................................................................................................................................................... 55,000 (Cr.)
Amount (In Words): ` Fifty Five Thousand Only

Received with thanks from____________` 55,000 (Rupees Fifty Five Thousand Only)

Receiver’s Signature Authorised Signatory

(x) On 02.07.13, ` 40,000 received from Xzone Services Pvt. Ltd. in cash. Clear 1st bill
and remaining amount from 2nd bill.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Receipt Voucher
No. : 1 Date: 02-07-2013
Particulars Amount
Cash.................................................................................................................................................................................................... 40,000 (Dr.)
Xzone Services Pvt. Ltd................................................................................................................................................................ 40,000 (Cr.)
Amount (In Words): ` Forty Thousand Only
(Being cash received against opening outstanding)

Receiver’s Signature Authorised Signatory

Tally 23.37

(xi) On 2.07.13, ` 33,215 received from Silver Surfer Solution Pvt. Ltd. by cheque
(Chq.#0456). (Bill No. SAL/SS/05/09.10.12)

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Receipt Voucher
No. : 2 Date: 02-07-2013
Particulars Amount
Axis Bank (Chq No. 0456)............................................................................................................................................................ 33,215 (Dr.)
Silver Surfer Solution Pvt. Ltd................................................................................................................................................... 33,215 (Cr.)

Amount (In Words): ` Thirty Three Thousand Two Hundred Fifteen Only
(Being payment received against opening outstanding)

Receiver’s Signature Authorised Signatory

(xii) Loan of ` 25,000 received from Mr. Mukesh Pant by cheque of SBI (Chq.#551550)
on 02.07.13 and deposited into Axis Bank Account.
XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Receipt Voucher
No. : 3 Date: 02-07-2013
Particulars Amount
Axis Bank (Chq. No. 551550)...................................................................................................................................................... 25,000 (Dr.)
Loan from Mr. Mukesh (Unsecured Loan) ........................................................................................................................ 25,000 (Cr.)
Amount (In Words): ` Twenty Five Thousand only
(Being loan received)

Receiver’s Signature Authorised Signatory

(xiii) Purchased two computers from Computer Zone @ ` 23,500 each on 01.08.13. (Bill
No. Pur/asst/02)

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Journal Voucher
No. : 1 Date: 01-08-2013
Particulars Amount
Computer.......................................................................................................................................................................................... 47,000 (Dr.)
To Computer Zone............................................................................................................................................................... 47,000 (Cr.)
Amount (In Words): ` Forty Seven Thousand Only
(Being computer purchased)

Receiver’s Signature Authorised Signatory

23.38 Double Entry Book Keeping — CBSE XI

(xiv) Purchased machinery worth ` 10,000 from Mohan Info Solution on 01.08.2013.
(Bill No.Pur/asst/03)
XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
Journal Voucher
No. : 2 Date: 01-08-2013
Particulars Amount

Machinery......................................................................................................................................................................................... 10,000 (Dr.)

To Mohan Info Solution....................................................................................................................... 10,000 (Cr.)
Amount (In Words): ` Ten Thousand Only
(Being machinery purchases)

Receiver’s Signature Authorised Signatory

(xv) Company made an advertising contract on 01.08.2013 for 2 years with FM

Advertising ` 1,50,000.
XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 3 Journal Voucher Date: 01-08-2013

Particulars Amount
Advertising Contract ................................................................................................................................................................... 1,50,000 (Dr.)
To FM Advertising.............................................................................................................................................................. 1,50,000 (Cr.)
Amount (In Words): ` One Lakh Fifty Thousand Only
(Being advertising contract given to FM Advertising)

Receiver’s Signature Authorised Signatory

(xvi) Rent due for the month for Second Quarter ` 55,000 on 01.09.2013 to
Mr. Sunny Aggarwal.

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1, NEW DELHI
No. : 4 Journal Voucher Date: 01-09-2013
Particulars Amount

Office Rent...................................................................................................................................................................................... 55,000 (Dr.)

To Outstanding Rent ........................................................................................................................................................ 55,000 (Cr.)
Amount (In Words): ` Fifty Five Thousand Only
(Being office rent provided)

Receiver’s Signature Authorised Signatory

Tally 23.39

(xvii) Purchased the following goods from Mobile Store on 02.09.13.

[INV. No.PUR/MS/0145/13-14]
PURCHASE INVOICE
Mobile Store Invoice No. : 0145
M.G. Road Part-1
New Delhi
Tel: 011486701 Fax: 011486705 Date: 02.09.2013
Email: Customer@MobileSolution.in
TIN/CST No. 07262427142
Purchaser Party TIN/ CST No. 07262427142
XYZ Enterprises
Mayur Vihar
Sr. No Description Qty. Units Rate (`) Amount
1 Nokia 6600 35 Pcs 7,550 2,64,250
2 Nokia 5800 40 Pcs 8,600 3,44,000
Rupees in Words: Total 6,08,250
Six Lakh Thirty Two Thousand Five Hundred Eighty Vat @ 4 % 24,330
Only Total Amt 6,32,580
Terms & Conditions: XYZ ENTERPRISES
Interest will be charged @ 18% p.a.if bill is not paid within a week.All disputes will be subject to Jurisdiction of Delhi Court.
If you find any problem in materiel, you have to inform us within two or three days from the date of delivery
Authorised Signatory

(xviii) Sold the following goods to Gandhi Mobile Store on 03.09.2013.

[INV. No. Sal/GMS/01225/13-14]
SALE INVOICE

XYZ ENTERPRISES
MAYUR VIHAR PHASE-1
New Delhi
Tel: 011455701 Fax: 011455705 Invoice No. :01225
Email: business@XYZenterprises.in
TIN/CST No. 07262427142 Date: 03/09/2013
Purchaser Party TIN/ CST No. 0758963254
Gandhi Mobile Store
Palika Bazar
Sr. No Description Qty. Units Rate (`) Amount (`)
1 Nokia 6600 32 Pcs 9,550 3,05,600
2 Nokia 5800 38 Pcs 9,600 3,64,800
Rupees in Words: Total 6,70,400
Six Lakh Ninety Seven Thousand Two Hundred Sixteen Vat @ 4% 26,816
Rupees Only Total Amt 6,97,216

Terms & Conditions: XYZ ENTERPRISES

Interest will be charged @ 18% p.a. if bill is not paid within a week.All disputes will be subject to Jurisdiction of Delhi Court.
If you find any problem in materiel, you have to inform us within two or three days from the date of delivery.

Authorised Signatory
23.40 Double Entry Book Keeping — CBSE XI

REPORTS
Purchase Register
List of All Purchases 1-Sep-2013 to 30-Sep-2013
Vouchers
Date Particulars Vch Type Debit Credit
Amount Amount

02.09.2013 MOBILE STORE Purchase 6,32,580

Total: 6,32,580

Sales Register
List of All Sales 1-Sep-2013 to 30-Sep-2013
Vouchers

Date Particulars Vch Type Debit Credit

Amount Amount

03.09.2013 Gandhi Mobile Store Sales 6,97,216

Total: 6,97,216

Cash Ledger
Ledger: Cash 1-Apr-2013 to 31-Mar-2014

Date Particulars Vch Type Debit Credit

01/04/2013 Cr Opening Balance 3,40,000

02/04/2013 Dr Glow Sign Board Payment 2,500
02/06/2013 Dr Printing and Stationery Payment 3,200
02/06/2013 Dr Commission Payment 2,500
02/06/2013 Cr Xzone Service Pvt. Ltd. Receipt 40,000
3,80,000 8,200
Dr Closing Balance 3,71,800
3,80,000 3,80,000

Bank Ledger
Ledger: Axis Bank 1-Apr-2013 to 31-Mar-2014

Date Particulars Vch Type Debit Credit

01/04/2013 Cr Opening Balance 5,90,000

02/04/2013 Dr Outstanding AMC Charges Payment 20,000
03/04/2013 Dr Outstanding Rent Payment 20,000
02/05/2013 Dr Minocha Furniture Payment 32,825
02/05/2013 Dr Machinery Payment 1,50,000
02/06/2013 Dr Advertising Exp Payment 30,000
02/06/2013 Dr Office Rent Payment 55,000
02/07/2013 Cr Silver Surfer Solution Pvt. Ltd. Receipt 33,215
02/07/2013 Cr Loan From Mr Mukesh Receipt 25,000
6,48,215 3,07,825
Dr Closing Balance 3,40,390
6,48,215 6,48,215
Tally 23.41

TRIAL BALANCE as on 31st March, 2014

XYZ ENTERPRISES
Particulars 1-Apr-2013 to 31-Mar-2014
Closing Balance
Debit Credit
Capital Account 26,90,000
Reserves & Surplus 1,90,000
Capital 25,00,000
Loans (Liability) 10,75,000
Secured Loans 10,50,000
Unsecured Loans 25,000
Current Liabilities 24,330 9,78,571
Duties & Taxes 24,330 26,816
Sundry Creditors 8,96,755
Outstanding Rent 55,000
Fixed Assets 30,09,500
Building 13,00,000
Computer 47,000
Furniture and Fixture 5,00,000
Glow Sign Board 2,500
Machinery 1,60,000
Plant & Machinery 10,00,000
Investments 80,000
Fixed Deposit 80,000
Current Assets 14,86,191
Opening Stock
Sundry Debtors 7,64,001
Cash-in-hand 3,71,800
Bank Accounts 3,40,390
Accrued Interest 10,000
Misc. Expenses (ASSET) 1,80,000
Advertising Contract 1,50,000
Advertising Exp 30,000
Sales Account 6,70,400
Sales 6,70,400
Purchases Account 6,08,250
Purchases 6,08,250
Indirect Expenses 1,15,700
Commission 2,500
Office Rent 1,10,000
Printing & Stationery 3,200
Profit & Loss A/c 90,000
Grand Total 55,03,971 55,03,971
PROFIT & LOSS A/C for the year ended 31st March, 2014
Particulars ` Particulars `
Opening Stock Sales Accounts 6,70,400
Nokia Sales 6,70,400
Purchases Account 6,08,250 Closing Stock 39,850
Purchase 6,08,250 Nokia 39,850
Gross Profit c/o 1,02,000
7,10,250 7,10,250
Indirect Expenses Gross Profit b/f 1,02,000
Commission 2,500 Nett Loss 13,700
Office Rent 1,10,000
Printing & Stationery 3,200 1,15,700
Total 1,15,700 Total 1,15,700
23.42 Double Entry Book Keeping — CBSE XI

BALANCE SHEET as at 31st March, 2014

Liabilities ` Assets `

Capital Account 26,90,000 Fixed Assets 30,09,500

Reserves & Surplus 1,90,000 Building 13,00,000
Capital 25,00,000 Computer 47,000
Loans (Liability) 10,75,000 Furniture and Fixture 5,00,000
Secured Loans 10,50,000 Glow Sign Board 2,500
Unsecured Loans 25,000 Machinery 1,60,000
Current Liabilities 9,54,241 Plant & Machinery 10,00,000
Duties & Taxes 2,486 Investments 80,000
Sundry Creditors 8,96,755 Fixed Deposit 80,000
Outstanding AMC Charges Current Assets 15,26,041
Outstanding Rent 55,000 Closing Stock 39,850
Profit & Loss A/c 76,300 Sundry Debtors 7,64,001
Opening Balance 90,000 Cash-in-hand 3,71,800
Current Period –13,700 Bank Accounts 3,40,390
Accrued Interest 10,000
Misc. Expenses (ASSET) 1,80,000
Advertising Contract 1,50,000
Advertising Exp 30,000
Total 47,95,541 Total 47,95,541

QUESTIONS

Multiple Choice Questions (MCQs)

Select the correct alternative to complete each statement:
(i) Tally is designed to meet the requirement of
(a) All types of companies. (b) Small company.
(c) Small and Medium company. (d) None of these.
(ii) Gateway of Tally screen is separated into
(a) Six sections. (b) Five sections.
(c) Seven sections. (d) Eight sections.
(iii) For creating a company we use
(a) Alt + F3. (b) Alt + F1.
(c) Alt + F2. (d) ESC key.
(iv) For Selecting a Company we use
(a) Alt + F1. (b) F1.
(c) Ctrl + F1. (d) F2.
(v) Groups are
(a) collection of ledger in tally. (b) type of voucher entry.
(c) both (a) and (b). (d) None of these.
(vi) There are 15 primary groups and
(a) 12 sub-groups. (b) 13 sub-groups.
(c) 11 sub-groups. (d) 10 sub-groups.
Tally 23.43

(vii) Bank Account comes under

(a) Current Assets. (b) Loans.
(c) Current Liabilities. (d) Capital Account.
(viii) Nature of the primary group is among one of the following:
(a) Assets, Liabilities, Revenue and Capital.
(b) Balance Sheet and Profit and Loss Account.
(c) Assets, Liabilities, Income and Expenses.
(d) None of the above.
(ix) When group behaviour is like sub-ledger is set to No
(a) It behaves like ledger.
(b) The same will display all the ledgers grouped under the same in detail mode.
(c) All of the above.
(d) None of the above.
(x) Choose the correct answer:
(a) All the transactions are recorded through voucher Entry.
(b) All the transactions are recorded through Journal Entry.
(c) All the transactions are recorded through Receipt and Payment Entry.
(d) All of the above.
[Ans.: (i) (c); (ii) (a); (iii) (a); (iv) (b); (v) (a); (vi) (b);
(vii) (a); (viii) (c); (ix) (b); (x) (a).]

Short Answer Type Questions

1. What is ‘Group’ in Tally?
2. How many types of vouchers are there in Tally?
3. What are the salient features of Tally?
4. Name any five pre-defined primary groups in Tally.
5. Write the name of pre-defined ledger in Tally.

PRACTICAL PROBLEM

1. You are required to maintain the accounts of Megha Computers (an electronics goods
re-seller cum computer assembler) for the period 2016-17. Necessary informations of the
Company are as follows:

MEGHA COMPUTERS
BALANCE SHEET (AS GENERATED FROM THE SOFTWARE), as at 31st March, 2017

Liabilities Amount Assets Amount

Capital Account 16,55,000 Fixed Assets 10,80,000

Opening Balance 14,00,000 Furniture 1,75,000
General Reserve 2,55,000 Land and Building 5,50,000
Current Liabilities Computer and Acc. 3,55,000
Sundry Creditors 3,13,000 Investment 2,00,000
Jalan Trading 1,48,000 Fixed Deposit 1,00,000
Computer World 65,000 Share in ABC LTD. 1,00,000
Jain Computer System 1,00,000 Current Assets
23.44 Double Entry Book Keeping — CBSE XI

Outstanding Expenses 1,12,000 Closing Stock 89,000 89,000

Outstanding Salary 62,000 Stock in Trade
Outstanding Office Rent 35,000 Sundry Debtors 4,14,000
Outstanding Electricity Charges 15,000 Chowdhury Mobilink 1,85,000
Loans (Liabilities) 1,00,000 M/s Vedant Infotech 85,000
City Financials 1,00,000 Mobi-Comp Traders 1,44,000
Profit and Loss Account 70,000 Bank Account 3,43,000
Opening 33,000 SBI (A/c 10403800469) 1,45,000
Current Period 37,000 Axis Bank 1,00,000
(A/c 033010130408815)
HSBC (A/c 10332103432) 98,000
Prepaid Expenses
Prepaid Rent 5,000
Cash in Hand 1,19,000
Total 22,50,000 Total 22,50,000

Pass the following transactions (Create Ledger, if Necessary):

1. 1st April, 2016 : Sold goods for cash `40,000.
2. 7th April, 2016 : Paid outstanding salary through a cheque of Axis Bank
(Chq. No. 303762).
3. 15th April, 2016 : Paid outstanding office rent through a cheque of Axis Bank
(Chq. No. 303763).
4. 1st May, 2016 : Paid to Jalan Trading ` 95,000 by cheque of HSBC against the
previous bill.
5. 10th May, 2016 : Purchased goods for ` 30,000 from Computer World (Bill No. Rj/
16-17/101).
6. 20th May, 2016 : Purchased Plant and Machinery for ` 16,600 and payment is made
by cheque.
7. 5th June, 2016 : Paid to Computer World ` 75,000 by cheque of SBI against Bill
No.-Rj/16-17/101 and PB/16-17/739 (Chq. No. 453972).
8. 7th June, 2016 : Received cheque ` 1,44,000 from Mobi-Comp Traders against the
previous bill.
9. 10th June, 2016 : ` 25,000 withdrew from bank for personal use.
10. 15th June 2016 : ` 1,00,000 received cash from Chowdhury Mobilink against Bill
No. (SB/16-17/221).
11. 25th July, 2016 : Purchased stationery for cash ` 560.
12. 1st August, 2016 : Paid wages and salaries ` 15,000.
13. 15th August, 2016 : Received cheque of ` 85,000 by Axis Bank from M/s. Vedant Infotech
against Bill No. (SB/16-17/101).
14. 3rd September, 2016 : Paid outstanding Electricity Bill through cheque of Axis Bank
(Chq. No. 303764).
15. 4th September, 2016 : Paid ` 750 for refreshment for office staff by cash.
16. 15th October, 2016 : Paid municipal tax ` 150 in cash.
17. 25th November, 2016 : Purchased 10 pcs of Nokia-2012 handset @ ` 2,600 each,12pcs
of lg-rg 27 Handset @ ` 1,560 each from Jalan Trading (Bill No.
pur/25-11/124).
18. 28th November, 2016 : Sold 5 pcs of Nokia-2010 handset @ ` 3500 each,10pcs of
lg-rg 27 handset @ ` 2,000 each to Mobi-Comp Traders (Bill
No.Sal/28-11/001).
19. 5th December, 2016 : Paid to Jalan Trading ` 75,000 by cheque of SBI against Bill
No. pur 25-11/124 (Chq. No. 453977).
20. 15th December, 2016 : Received cheque of Axis Bank from M/s. Vedant Infotech against
Bill No. sal/28-11/001 and deposited in the bank on same day.