LAB EXERCISE -6 Preparing a Statement of Affairs in MS Excel

Step-by-step guide to preparing a Statement of Affairs in MS Excel

1. Set up the Excel Worksheet

o Open a new Excel sheet.
o Label the first row with headers like:
▪ Date
▪ Particulars (Description of the Asset or Transaction)
▪ Total Asset Value
▪ Down Payment
▪ Installments Paid
▪ Installments Due
▪ Interest Rate
▪ Total Interest Payable
▪ Outstanding Balance
2. Input Data
o Under each header, enter the details of the assets purchased on hire
purchase.
o For example:
▪ Date: Date of the hire purchase agreement.
▪ Particulars: Description of the asset (e.g., "Office
Equipment").
▪ Total Asset Value: Full cost of the asset.
▪ Down Payment: Amount paid initially.
▪ Installments Paid: Number and total value of installments
already paid.
▪ Installments Due: Number and value of installments
remaining.
 ▪ Interest Rate: The rate of interest applied to the hire purchase
agreement.
▪ Total Interest Payable: Calculate the interest based on the
interest rate.
▪ Outstanding Balance: Total amount still to be paid.
3. Formulas to Use

To calculate the outstanding balance, use the formula:

= [Total Asset Value] - [Down Payment] - [Installments Paid]

To calculate the total interest payable:
= [Outstanding Balance] * [Interest Rate]

4. Formatting the Data

o Use formatting options like currency format for monetary values.
o You can also use cell shading to highlight important data like
outstanding balances.
5. Adding Summary or Analysis
o You can create a summary section below the table to show totals
for all columns, such as total assets purchased, total installments
paid, total interest payable, and total outstanding balance.

Example Layout

Total Total
Down Installments Installments Interest Outstanding
Date Particulars Asset Interest
Payment Paid Due Rate Balance
Value Payable

Office
01/01/2024 ₹50,000 ₹10,000 ₹20,000 ₹20,000 5% ₹1,000 ₹20,000
Equipment
LAB EXERCISE -7 Partnership -Company Creation in Tally ERP9

Step 1: Creating a Company in Tally ERP 9

1. Open Tally ERP 9:

o Launch Tally ERP 9 from your computer.
2. Create a New Company:
o From the Gateway of Tally, go to Create Company.
o Enter the company details:
▪ Company Name: Enter the name of your partnership firm.
▪ Mailing Name and Address: Provide the firm's address.
▪ Country: Select the country where the company is
registered.
▪ State: Mention the state of operation.
▪ PIN Code: Enter the postal code.
▪ Telephone Number and Email: Provide contact details.
▪ Financial Year Begins From: Enter the start date of the
financial year.
▪ Books Beginning From: Typically, the same as the
financial year start date.
▪ Currency Symbol: Enter the currency symbol (e.g., ₹ for
Indian Rupees).
3. Save the Company Details:
o Press Enter to save the details and create the company.

Step 2: Setting Up Partnership Accounts

1. Create Capital Accounts:

 o From the Gateway of Tally, go to Accounts Info > Ledgers >
Create.
o Create individual capital accounts for each partner:
▪ Ledger Name: Enter the partner's name followed by
"Capital" (e.g., "Ravi Capital").
▪ Under: Choose Capital Account from the list.
o Repeat this process for all partners.
2. Create Current Accounts for Partners:
o You may also create individual current accounts for each partner to
track their drawings or additional contributions:
▪ Ledger Name: Enter the partner's name followed by
"Current Account" (e.g., "Ravi Current Account").
▪ Under: Choose Current Liabilities.
3. Create Profit & Loss Appropriation Account:
o Go to Accounts Info > Ledgers > Create.
o Ledger Name: Enter "Profit & Loss Appropriation Account."
o Under: Choose Indirect Expenses.
o This account will be used to distribute the net profit or loss among
the partners according to their agreed ratio.

Step 3: Recording Transactions for Partnership Accounts

1. Capital Introduced by Partners:

o Record a journal entry when partners introduce capital:
▪ Go to Accounting Vouchers > F7: Journal.
▪ Debit Bank/Cash Account.
▪ Credit the partner's Capital Account.
2. Profit Distribution Among Partners:
o To distribute profits, use the Profit & Loss Appropriation Account:
▪ Debit the Profit & Loss Appropriation Account.
 ▪ Credit the individual partners' Current Accounts according
to their profit-sharing ratio.
3. Drawing by Partners:
o For any drawings by partners:
▪ Debit the partner's Current Account.
▪ Credit Cash/Bank Account.

LAB EXERCISE -8 Partnership -Company Creation in Tally ERP9

Step 1: Open Tally and Select the Company

1. Open Tally ERP 9.

2. Select the company where you want to create the partnership ledger.

Step 2: Create Capital Accounts for Partners

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create.

2. Enter the following details for each partner:
o Name: Enter the partner's name.
o Under: Select Capital Account (since it's a partner's contribution).
o Opening Balance: Enter the initial capital contribution of the partner.
 3. Repeat these steps for each partner in the partnership firm.

Step 3: Create a Current Account for Each Partner (Optional)

To track the withdrawals or additional contributions made by partners, create separate current
accounts:

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create.

2. Enter the following details:
o Name: Partner’s name followed by "Current Account" (e.g., "Partner A
Current Account").
o Under: Select Current Liabilities or Loans (Liability).
o Opening Balance: Leave this blank or enter the relevant balance.

Step 4: Set Up Interest on Capital (If Applicable)

If you pay interest on capital to the partners:

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create.

2. Enter the details:
o Name: "Interest on Capital."
o Under: Indirect Expenses.
3. This account will be used to track interest payments to partners.

Step 5: Record Transactions in Journal Vouchers

Use journal vouchers to record transactions related to partner contributions, withdrawals,

interest on capital, and profit distribution:

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

2. Enter the appropriate debit and credit entries for each transaction involving partner
accounts.

Step 6: Check the Ledger Accounts

You can view the ledger accounts for each partner to monitor their contributions,
withdrawals, and closing balances:
 1. Go to Gateway of Tally > Display > Account Books > Ledger.
2. Select the relevant partner's ledger to view detailed transactions.

Format

LAB EXERCISE -9 Partnership -Company Creation in Tally ERP9

Step 1: Open Tally and Select the Company

1. Open Tally ERP 9.

2. Select the company for which you want to view the balance sheet report.

Step 2: Navigate to the Balance Sheet

1. From the Gateway of Tally, go to Display.

2. Select Final Accounts.
3. Click on Balance Sheet.

Step 3: Customize the Balance Sheet Report

 1. By default, Tally will display the balance sheet in a summarized format. You can
press F12: Configure to customize the report's display settings according to your
needs:
o Show Vertical/Horizontal Balance Sheet: Choose how you want to view the
balance sheet.
o Show Working Capital Figures: Display the firm's working capital details.
o Show Percentages: View the percentage analysis of each item in the balance
sheet.
o Show Schedule VI Format: If you want to display the balance sheet in the
format required by the Companies Act.
o Expand All Levels in Detailed Format: To view the details of each ledger
under assets and liabilities.
2. Press Enter to apply the changes and view the balance sheet with the updated
settings.

Step 4: Analyzing Capital Accounts

1. In the balance sheet, the Capital Accounts section will show the total capital
contributed by each partner.
2. To see detailed information about each partner’s capital and current accounts,
navigate to the Capital Accounts group and press Enter.

Step 5: Drill Down for Detailed Reports

1. Tally ERP 9 allows you to drill down into specific ledger accounts directly from the
balance sheet. For example, you can view detailed transactions for each partner by
selecting their capital account.
2. Press Enter on any account to see the underlying transactions and balances.

Step 6: Save or Print the Balance Sheet

1. If you want to save or print the balance sheet report, press Alt + P.
2. You can choose to print the balance sheet or save it as a PDF file for sharing and
record-keeping.
 FORMAT

LAB EXERCISE -10 Single Entry Statement of Affairs

Step-by-Step Process for Preparing Single Entry Accounts in Excel:

1. Open a New Excel Sheet

o Open Excel and create a new workbook.
o Rename the sheet to "Single Entry Accounts" or any appropriate name.
2. Create Column Headings
o In the first row, add the following headings:
▪ Date: The date of the transaction.
▪ Particulars: A description of the transaction (e.g., cash received,
purchase, sale).
▪ Receipts (Dr.): The amount received.
▪ Payments (Cr.): The amount paid.
▪ Balance: To keep track of the running cash balance.
3. Formatting the Headers
o Highlight the first row and format it to make the headers bold for clarity.
o You can also add a background colour to differentiate the header row.
4. Enter Transactions
o Start entering each transaction in the respective columns:
▪ Date: Enter the date of the transaction.
 ▪ Particulars: Describe the transaction briefly.
▪ Receipts (Dr.): Enter the amount received if applicable.
▪ Payments (Cr.): Enter the amount paid if applicable.
▪ Balance: Use a formula to calculate the running balance.
5. Calculate the Balance Automatically
o In the Balance column, use a formula to keep a running total of the balance.
o If your first entry is in row 2, the formula for the first balance could be:

=C2-D2

o For the next row, use this formula:

=E2+C3-D3

o Drag this formula down to fill all the cells in the Balance column to auto-
calculate for each transaction.
6. Total Calculation
o At the bottom of the Receipts (Dr.) and Payments (Cr.) columns, use the SUM
function to get the totals:
▪ For Receipts: =SUM(C2:C100) (adjust the range as needed).
▪ For Payments: =SUM(D2:D100).
7. Check Accuracy
o Ensure that the final balance in the last row of your Balance column matches
the physical cash or bank balance.
8. Review and Save
o Double-check all entries to ensure they are correct.
o Save your Excel file regularly to avoid data loss.