Experiments Of Computerised

Accounting System

BC – 303
SUBMITTED TO- SUBMITTED BY-

DR. Suman Gulia Hitesh

1222211
 B.COM (H) 3RDsem

TABLE OF CONTENTS

Experiment DESCRIPTION Page No. REMARK

No. S
1 Steps to install the Tally.ERP 9, Activate Tally.ERP 9 Licence
and Configure Existing Licence. Also explain various steps to
create XYZ Pvt. Ltd. Company with Accounting Features and
Security Control Features.

2 Creation of Groups and Ledgers and create the Ledger and

Voucher entry in Tally.
Journal entries in Tally and also total receipt and payments of
company.

3 Display of Balance sheet, Cash/Bank Book, Day Book,

Purchase Register, Sales Register, Debit Note Register, and
Credit Note Register

4 Creation of Budget in a Company? Write the steps to activate

and create the Budgets Feature. Write the steps to Display the
Budget Reports.

5 Calculate interest on outstanding balance amounts and on

outstanding bills /Invoices/transactions (receivables and
payables).

6 Create ABC Pvt. Ltd. Company and do necessary changes in

accounting features (Inventory features).
Create Stock Groups, Create Stock Categories, Create Stock
 Items, and Create Unit of Measure (UOM).

7 Enter Purchase Order.

Print the Purchase Order Voucher.
Enter the Receipt Note.
Suppose M/s. Gulati Brothers returned 2 Washing Machines
to LG Company on 18-5-2019. For this Enter the Rejection
Out Voucher. Enter the Purchase Voucher to Clear the LG
Company Account

8 TDS and various steps to activate and create TDS Features

and Tax Ledger in Tally.ERP 9. Display Printing of TDS
Challan and TDS Report.

9 Payroll and steps to activate and configure payroll settings.

Write steps of payroll accounting system, employee groups,
payroll masters, creation of employees, payroll units, leaves.

10 Creation of various Pay Heads. For Example: We want to

create a Salary detail of Mr. Karan. Suppose Karan Salary is
Rs. 40,000 p.m. Karan has take a loan of Rs. 10,000 from the
company on a condition that he would return the loan in 4
equal installments.
 Experiment No:1

Steps to install the Tally.ERP 9, Activate Tally.ERP 9 Licence and Configure Existing
Licence. Also explain various steps to create XYZ Pvt. Ltd. Company with
Accounting Features and Security Control Features

How to Install Tally ERP 9 Software on Windows computer

After downloading the latest version software of Tally ERP 9, you need to perform the
following installation steps.

 Go to the folder, where the Tally software has been download on your computer

 Double click on the Tally application icon to install on your system. Now a user account
control panel windows opens with the options “YES” or “NO” to allow the program to
make changes to this computer. Click on “YES” option.

 Choose the installation folder and click on instal

 And install the Tally.ERP 9 on your computer.
 Installing Tally ERP using Install Now / Online Installer
 If you get any errors while installing the Tally ERP application with the downloaded
software, you can try installation through online by choosing the option Install Now.

 Setup application will be download on your system, open the downloaded folder and
double click on setup icon.

 Next User Account Control windows displays on the screen, choose Yes option to
continue.
Now click on install option.

Now you will get a status bar of downloaded Tally software and will be installed on your
system automatically.

After installation of Tally, a message will be displayed as ” You have successfully

Installed Tally.ERP 9 series with version.
 Successfully Tally ERP 9 Software has been installed on Windows Computer.

How to install Tally on Mac Os computer

Tally is supported on Microsoft window operation systems and not supported on Mac
OS. If you try to install downloaded tally application on Mac, you will get an error
message as

Here, We have a provided a simple solution to run Tally software application on Apple
Mac OS computer. You can instal Tally ERP 9 on Mac by using any one of the option.

1. Install Xcode from App Store for Free

2. Virtual Machine.

Here we are going install Oracle VM and windows operation system. Refer below steps
how to install.
Step 1: Download Oracle Virtual Box (File Size: 95 Mb) – click here to download
Step 2: After download Oracle Virtual box, install on your system.
Step 3: After successfully installation of Oracle VM, choose new option for installation of
Windows Os.

Step 4: Give the name, type of operating system and version of Os and click on
continue. Here I am installing Windows 7 Operating system with 64 bit.

Step 6: Now allocate the Ram memory size for Oracle VM and click on continue.
Step 7: Choose create a virtual hard disk now and click on create.

Step 8: Choose VHD (Virtual Hard Disk)

Step 9: Choose dynamically allocated or fixed size

Step 10: Choose the file location and size of hard disk for VM and click on create.
Now choose created VM and click on start.
ADVERTISEMENT

Now you need to choose virtual optional disk file – windows Os file from you system and
click on start.
1 Also explain various steps to create xyz pvt ltd

Creating a private limited company (Pvt Ltd) involves several

steps, and the specific requirements can vary depending on the
 country or jurisdiction in which you're establishing the company.
Below are general steps that you might follow, but it's essential to
consult with a legal professional or business advisor to ensure
compliance with local regulations

1.Business Idea and Plan:

 Clearly define your business idea and create a detailed

business plan. Outline your goals, target market, products or
services, and financial projections.

2. Choose a Business Name:

 Select a unique and appropriate name for your company.
Ensure the name complies with the registration
requirements in your jurisdiction.
3. Check Name Availability:
 Verify the availability of the chosen name with the
appropriate government authority or company registrar in
your jurisdiction.
4. Registered Office Address:
 Determine and register the official address of your company.
This is the address where official correspondence will be
sent.
5. Appoint Directors:
 Identify and appoint individuals who will serve as directors of
the company. The number of directors and their eligibility
may vary by jurisdiction.
6. Share Capital:
 Decide on the amount of authorized and issued share capital
for the company. This represents the ownership structure of
the company.
7. Draft Memorandum and Articles of Association:
 Prepare the Memorandum of Association and Articles of
Association. These documents define the constitution and
rules of the company, including its objectives, share capital,
and internal governance.
8. File Incorporation Documents:
 Submit the required documents, including the Memorandum
and Articles of Association, along with the necessary forms
 and fees, to the relevant government authority for company
registration.
9. Obtain Certificate of Incorporation:
 Once the documents are processed and approved, you will
receive a Certificate of Incorporation. This is a legal
document confirming the existence of your company.
10. Apply for PAN and TAN:
 Obtain a Permanent Account Number (PAN) for the company
and Tax Deduction and Collection Account Number (TAN) for
tax purposes.
11. Open a Bank Account:
 Open a business bank account in the name of the company.
You'll need the Certificate of Incorporation, PAN, and TAN for
this process.
12. Compliance with Regulatory Requirements:
 Ensure compliance with all statutory and regulatory
requirements, such as obtaining necessary licenses and
permits.
13. GST Registration (if applicable):
 If your business involves the supply of goods or services and
meets the threshold, register for Goods and Services Tax
(GST) or the equivalent tax in your jurisdiction.
14. Create Company Seal and Stationery:
 Design and create a company seal if required by local
regulations. Also, prepare official stationery, including
letterheads and business cards.
15. Employee Compliance (if applicable):
 If you plan to hire employees, ensure compliance with labor
laws, including employee contracts, payroll, and any
required registrations.
 Experiment No:2

Q2. (a) State Groups for Ledgers and create the Ledger and Voucher entry in Tally.

(b) Write shortcut key of Ledger creation, while doing Accounting Voucher entry.

(c) How we see all journal entries in tally and also total receipt and payments of company.

1. Aslam starts business with Rs. 1, 00,000.

2. Purchase machinery for Rs. 50,000 and furniture for Rs. 10,000.

3. Paid amount for rent Rs. 1,000.

4. Deposits Rs. 10,000/- in Bank.

5. Purchase of goods for Rs. 20,000 from Mr. Shamroz on credit.

6. Sold goods to Mr. Imtiaz for Rs. 10,000.

7. Rs. 5,000 withdraws from bank for personal use.

8. Withdraws Rs. 1,000 for office use.

9. Received cash from Mr. Imtiaz.

10. Paid to Mr. Shamroz.

(a) State Groups for Ledgers and create the Ledger

and Voucher entry in Tally:
1. Create Ledgers:
 Go to Gateway of Tally > Accounts Info > Ledgers > Create.
 Create the following ledgers:
 Aslam's Capital (under Capital Account)
 Machinery (under Fixed Assets)
 Furniture (under Fixed Assets)
 Rent Paid (under Indirect Expenses)
 Bank (under Bank Accounts)
 Mr. Shamroz (under Sundry Creditors)
 Mr. Imtiaz (under Sundry Debtors)
2. Create Voucher Entries:
  Go to Gateway of Tally > Accounting Vouchers > Select Voucher Type
(e.g., Payment, Receipt, Sales, Purchase, etc.).
 Enter the transactions using the appropriate voucher types.

(b) Shortcut key of Ledger creation while doing

Accounting Voucher entry:
In Tally, you can create ledgers on the fly while entering voucher entries. The
shortcut key for creating a new ledger during voucher entry is "Alt + C."
When you are on the field for the ledger name, press "Alt + C" to create a
new ledger.

(c) View Journal Entries, Receipts, and Payments:

1. Viewing Journal Entries:
 Go to Gateway of Tally > Display > Day Book.
 Select the relevant period to view all journal entries.
2. Viewing Total Receipts and Payments:
 Go to Gateway of Tally > Display > Cash/Bank Books.
 Select the bank or cash ledger to view the transactions.
 Alternatively, you can go to Gateway of Tally > Display > Account
Books > Cash/Bank Book.
 Transaction Entries:
Now, let's enter the provided transactions:

1. Aslam starts business with Rs. 1,00,000:

 Debit: Aslam's Capital
 Credit: Bank
2. Purchase machinery for Rs. 50,000 and furniture for Rs. 10,000:
 Debit: Machinery, Furniture
 Credit: Bank
3. Paid amount for rent Rs. 1,000:
 Debit: Rent Paid
 Credit: Bank
4. Deposits Rs. 10,000/- in Bank:
 Debit: Bank
 Credit: Aslam's Capital
5. Purchase of goods for Rs. 20,000 from Mr. Shamroz on credit:
 Debit: Purchase
 Credit: Mr. Shamroz
6. Sold goods to Mr. Imtiaz for Rs. 10,000:
 Debit: Mr. Imtiaz
 Credit: Sales
7. Rs. 5,000 withdraws from bank for personal use:
 Debit: Drawings
 Credit: Bank
8. Withdraws Rs. 1,000 for office use:
 Debit: Drawings
 Credit: Bank
9. Received cash from Mr. Imtiaz:
 Debit: Bank
 Credit: Mr. Imtiaz
10. Paid to Mr. Shamroz:
 Debit: Mr. Shamroz
 Credit: Bank
 Remember to consult the Tally user manual or seek assistance from a
Tally expert if you encounter any difficulties, as the interface may vary
based on the Tally version you are using

Experiment No:3

Q 3. Record the following transactions in the books of Mr. Ramesh Co.

 Mr. Ramesh starts business with Rs. 3, 00,000 and deposited into Bank Rs. 50,000 on 1-
5-2019.
 Paid for office building Rs. 60,000 and furniture for Rs 20,000 on 2-5-2019.
 Purchase Raw material of Rs. 5500 on credit from Mr. Suresh on 3-5-2019.
 Paid Wages Rs. 3,000 on 4-5-2019.
 Paid Salary Rs. 1,500 on 5-5-2019.
 Return money to Mr. Suresh in settlement of Rs. 4,500 on 6-5-2019.
 Sold Goods to Mr. Dinesh Rs. 20,000 on 7-5-2019.
 Received interest on bank amount Rs. 200 on 8-5-2019.
 Received from Mr. Dinesh after discount of Rs. 1,000 on 9-5-2019.

 Mr. Ramesh starts business with Rs. 3,00,000 and deposited

into Bank Rs. 50,000 on 1-5-2019:
o Debit: Cash/Bank (Rs. 50,000)
o Debit: Capital (Rs. 2,50,000) [3,00,000 - 50,000]
o Credit: Bank (Rs. 50,000)
 Paid for office building Rs. 60,000 and furniture for Rs 20,000
on 2-5-2019:
o Debit: Office Building (Rs. 60,000)
o Debit: Furniture (Rs. 20,000)
o Credit: Bank (Rs. 80,000)
 Purchase Raw material of Rs. 5,500 on credit from Mr. Suresh
on 3-5-2019:
o Debit: Raw Material (Rs. 5,500)
o Credit: Mr. Suresh (Rs. 5,500)
 Paid Wages Rs. 3,000 on 4-5-2019:
o Debit: Wages (Rs. 3,000)
o Credit: Bank (Rs. 3,000)
 Paid Salary Rs. 1,500 on 5-5-2019:
o Debit: Salary (Rs. 1,500)
o Credit: Bank (Rs. 1,500)
 Return money to Mr. Suresh in settlement of Rs. 4,500 on 6-5-
2019:
o Debit: Mr. Suresh (Rs. 4,500)
o Credit: Bank (Rs. 4,500)
 Sold Goods to Mr. Dinesh Rs. 20,000 on 7-5-2019:
o Debit: Mr. Dinesh (Accounts Receivable) (Rs. 20,000)
o Credit: Sales (Rs. 20,000)
 Received interest on bank amount Rs. 200 on 8-5-2019:
o Debit: Bank (Rs. 200)
o Credit: Interest Income (Rs. 200)
 Received from Mr. Dinesh after discount of Rs. 1,000 on 9-5-
2019:
o Debit: Bank (Rs. 19,000) [20,000 - 1,000]
o Credit: Mr. Dinesh (Accounts Receivable) (Rs. 20,000)
These entries should accurately reflect the financial transactions in the books
of Mr. Ramesh Co. Adjust the ledger names according to your chart of
accounts in Tally or any other accounting software you are using.

Experiment No:4

Q 4. What is the purpose of Budget in a Company? Write the steps to activate and create the
Budgets Feature. Write the steps to Display the Budget Reports.

Purpose of Budget in a Company:

A budget in a company serves several crucial purposes:

1. Financial Planning:
 Helps in planning and allocating financial resources effectively.
 Sets financial goals and objectives for the company.
2. Resource Allocation:
 Guides the allocation of resources to different departments and
activities.
 Ensures that resources are used efficiently to achieve
organizational objectives.
3. Performance Evaluation:
 Provides a benchmark for evaluating actual financial
performance against planned performance.
 Enables management to identify and address deviations from
the budget.
4. Decision Making:
 Assists in making informed decisions about investments,
expenses, and revenue generation.
 Provides a basis for prioritizing projects and activities.
5. Cash Flow Management:
 Aids in managing cash flows by predicting cash inflows and
outflows.
 Helps in avoiding liquidity issues by planning for future
financial needs.
6. Communication and Coordination:
 Communicates financial expectations and goals to various
departments and teams.
 Facilitates coordination among different units within the
organization.
7. Motivation and Accountability:
 Sets targets and goals that can motivate employees and
teams.
 Establishes accountability for financial performance at various
organizational levels.
 Now, let's outline the steps to activate and create the budget
feature, as well as display budget reports:

Activating and Creating Budgets:

1. Activate Budget Feature:

 Access the settings or configuration section of your accounting
software.
 Look for an option related to budgeting and activate it.
2. Define Budget Period:
 Determine the time period for the budget (e.g., monthly, quarterly,
annually).
3. Create Budget Classes or Categories:
 Identify and create budget classes or categories (e.g., sales,
expenses, capital expenditures).
4. Set Budget Limits:
 Specify the budget limits for each category based on historical data,
projections, or management decisions.
5. Assign Responsibility:
 Assign responsibility for each budget category to the relevant
department or individual.
 6. Enter Budget Data:
 Enter the budgeted amounts for each category based on company
goals and financial plans.
7. Review and Approval:
 Review the proposed budget with stakeholders.
 Obtain necessary approvals before finalizing the budget.
8. Save or Publish Budget:
 Save or publish the finalized budget in the accounting software.

Activating and Creating Budgets:

Displaying Budget Reports:

1. Navigate to Reports Section:

 Go to the reporting section of your accounting software.
2. Select Budget Reports:
 Look for an option related to budget reports or variance analysis.
3. Choose Budget Period:
 Select the desired budget period for analysis.
4. View Summary or Detailed Reports:
 Explore summary reports for an overview or detailed reports for a
more granular analysis.
 5. Analyze Variances:
 Compare actual financial data with the budgeted amounts to
identify variances.
 Analyze the reasons behind any significant differences.
6. Drill Down Into Categories:
 Drill down into specific budget categories for a more detailed
analysis.
7. Export or Print Reports:
 Depending on your needs, export budget reports to other formats
(e.g., PDF, Excel) or print them for further review or distribution.
8. Periodic Review and Adjustments:
 Regularly review budget reports and make adjustments as needed
to align with changing business conditions.

These steps will help you effectively utilize the budget feature in
your accounting software, supporting financial planning and
management within your company.

Experiment No:5

Calculate interest on outstanding balance amounts and on outstanding bills /Invoices/transactions

(receivables and payables).
 Receivables (Interest on Amounts Owed to You):

Formula for Simple Interest:

Interest=Principal×Interest Rate×Time365Interest=Principal×Interest
Rate×365Time
1. Determine the Principal:
 Identify the outstanding receivable amount.
2. Determine the Interest Rate:
 Determine the annual interest rate applicable to the
outstanding receivable.
3. Convert Annual Rate to Decimal:
 If the interest rate is given as a percentage, convert it to a
decimal by dividing by 100.
4. Determine the Time:
 Identify the time the receivable amount is outstanding in days.
5. Apply the Formula:
 Use the formula to calculate the interest amount.

Payables (Interest on Amounts You Owe):

Formula for Simple Interest:

Interest=Principal×Interest Rate×Time365Interest=Principal×Interest
Rate×365Time
1. Determine the Principal:
 Identify the outstanding payable amount.
2. Determine the Interest Rate:
 Determine the annual interest rate applicable to the
outstanding payable.
3. Convert Annual Rate to Decimal:
 If the interest rate is given as a percentage, convert it to a
decimal by dividing by 100.
4. Determine the Time:
 Identify the time the payable amount is outstanding in days.
5. Apply the Formula:
 Use the formula to calculate the interest amount.

Example:
Let's consider a scenario:

 Receivable Amount: $5,000

 Annual Interest Rate: 6%
 Time Outstanding: 90 days

Interest Receivable=5000×0.06×90365Interest Receivable=5000×0.06

×36590
Similarly, for payables, you would use the same formula but for the
relevant payable amount, interest rate, and time outstanding.
 Notes:
 The provided formula assumes simple interest. Compound interest
calculations involve additional considerations.
 Ensure you are using the correct interest rate and time period based
on the terms agreed upon or any applicable regulations.
 Consider any contractual agreements that may specify the method
and terms for calculating interest.

Always consult with financial professionals and adhere to the

specific guidelines provided by your financial software or accounting
system for accurate and compliant interest calculations in a
business context.

Experiment No:6

Create ABC Pvt. Ltd. Company and do necessary changes in accounting features (Inventory
features).
Create Stock Groups, Create Stock Categories, Create Stock Items, and Create Unit of Measure
(UOM).

Step 1: Create ABC Pvt. Ltd. Company

1. Open Your Accounting Software:
 Launch your accounting software and log in.
2. Create a New Company:
 Look for an option to create a new company or organization profile.
 Enter essential details: company name (ABC Pvt. Ltd.), address, fiscal
year, currency, and other relevant information.
3. Configure Company Settings:
 Set up general company settings, including taxation details, financial
year settings, and any other applicable configurations.

Step 2: Activate Inventory Features

1. Navigate to Settings:
 Find the settings or configuration section within your accounting
software.
2. Enable Inventory Features:
 Look for an option related to inventory or stock management.
 Activate or enable inventory features to incorporate stock-related
functionalities.

Step 3: Create Stock Groups

1. Access Stock Groups Section:
 Within the inventory or stock management module, find the option to
create stock groups.
2. Define Stock Groups:
 Create stock groups to categorize similar items. Examples could
include "Electronics," "Clothing," or "Office Supplies."
 This helps in organizing your inventory for better tracking and
reporting.

Step 4: Create Stock Categories

1. Navigate to Stock Categories:
 Inside each stock group, find the option to create stock categories.
2. Establish Stock Categories:
  Define stock categories for further classification. For example, within
the "Electronics" group, you might create categories like
"Smartphones" or "Laptops."
 This provides a more detailed classification of items.

Step 5: Create Stock Items

Access Stock Items Section:

 Look for the option to create individual stock items within each stock
category.
2. Input Stock Item Details:
 Enter details for each stock item, including item code, description, rate,
and initial stock quantity.
 Assign each item to its respective stock category for better
organization.

Step 6: Create Unit of Measure (UOM)

1. Navigate to UOM Settings:
 Look for the section where you can define units of measure.
2. Define Units of Measure:
 Establish units of measure for stock items, such as "Each," "Dozen," or
"Kilogram."
 Specify the primary unit of measure for each item.
 This ensures consistency in tracking and managing inventory
quantities.

Step 7: Record Transactions and Manage Inventory

1. Record Purchase Transactions:
 Enter purchase transactions when acquiring new stock.
 Specify details such as quantity, rate, and supplier information.
2. Record Sales Transactions:
 Enter sales transactions to update stock levels when items are sold.
Include customer details, item quantities, and rates.
3. Monitor Stock Levels:
 Regularly review and monitor stock levels to avoid shortages or
overstock situations.
 Utilize reports or dashboards provided by your accounting software for
a quick overview.

Conclusion:
Following these steps, ABC Pvt. Ltd. can efficiently manage its inventory,
organize items into logical groups and categories, track stock levels
accurately, and optimize its inventory management processes. Always refer
to the specific guidelines provided by your accounting software for detailed
instructions tailored to the platform you are using.

Experiment No;7

Enter Purchase Order.

Print the Purchase Order Voucher.
Enter the Receipt Note.
Suppose M/s. Gulati Brothers returned 2 Washing Machines to LG Company on 18-5-2019. For
this Enter the Rejection Out Voucher. Enter the Purchase Voucher to Clear the LG Company
Account

1. Enter Purchase Order:

In your accounting system, navigate to the "Purchase Order" section. This is
typically found in the module related to purchasing or procurement.

 Vendor Information:
 Select LG Company as the vendor.
  Enter other details like address, contact information, etc.
 Items:
 Add the details of the purchase, such as 2 Washing Machines.
 Specify the quantity, unit price, and any applicable taxes.
 Other Details:
 Enter any additional information like delivery date, terms, and
conditions.
 Save or Submit:
 Save the purchase order after entering all the necessary details.

2. Print the Purchase Order Voucher:

 Once the purchase order is saved, look for an option to print or generate a
voucher.
 The voucher should contain a summary of the purchase order details,
including vendor information, item details, and the total amount.
 3. Enter the Receipt Note:
 Navigate to the "Receipt Note" section in your accounting system.
 Details:
 Select the purchase order you created earlier.
 Specify the received quantity (in this case, 2 Washing Machines).
 Enter the date of receipt (18-5-2019).
 Save or Submit:
 Save the receipt note.

4. Enter the Rejection Out Voucher:

 Go to the "Rejection Out Voucher" or a similar section in your accounting
system.
 Details:
 Select the receipt note associated with the returned items.
 Specify the quantity of items being returned (2 Washing Machines).
  Enter the date of the rejection (18-5-2019).
 Provide reasons for the rejection if required.
 Save or Submit:
 Save the rejection out voucher.

5. Enter the Purchase Voucher to Clear the LG

Company Account:
 Navigate to the "Purchase Voucher" or a similar section.
 Details:
 Select the rejection out voucher you just created.
 Adjust the accounts to reflect the return. For example, decrease the
amount payable to LG Company.
 Save or Submit:
 Save the purchase voucher.

Experiment No;8

TDS and various steps to activate and create TDS Features and Tax Ledger in Tally.ERP 9.
Display Printing of TDS Challan and TDS Report.
 Activating TDS Features:
1. Open Tally.ERP 9:
 Start Tally.ERP 9 and open the company for which you want to
configure TDS.
2. Activate TDS:
 Go to Gateway of Tally.
 Press F11 to go to Features.
 Under Statutory & Taxation Features, find and enable the
option Enable Tax Deducted at Source (TDS).
 Set other TDS-related options as needed (e.g., enabling TDS
calculations for expenses).
3. Configure TDS Options:
 Under F12: Configure, configure TDS options such as
rounding off, calculation methods, and other related settings.

Creating TDS Tax Ledger:

1. Go to Ledger Creation:
 Navigate to Gateway of Tally > Accounts Info > Ledgers
> Create.
2. Set Ledger Type:
 Set the type of ledger as Duties & Taxes.
3. Choose TDS Category:
 Select the appropriate TDS category based on the nature of the
transaction (e.g., TDS on Salary, TDS on Rent, etc.).
4. Enter TDS Details:
  Enter the TDS rate applicable for the selected category.

 Set other details such as the section, threshold limit, and type
of deduction as per the requirements.

TDS Deduction in Transactions:

1. Create Voucher Entry:
 While entering a transaction (e.g., Payment or Purchase), press
F2 to change the date if needed.
 Enter the necessary details and amounts.
 Press Alt + A to enable TDS deduction in the voucher.
2. Select TDS Ledger:
 Choose the appropriate TDS ledger created earlier.
 Tally will automatically calculate the TDS amount based on the
configured rate.

Display and Print TDS Challan:

1. Display Challan Reconciliation:
 Navigate to Gateway of Tally > Display > Statutory
Reports > TDS Reports > Challan Reconciliation.
2. Select Period:
 Choose the relevant period for which you want to display the
TDS Challan.
3. Print Challan:
 After displaying the Challan, press Alt + P to print it.
 Configure the printing settings and print the TDS Challan.

Display and Print TDS Reports:

1. Display TDS Reports:
 Go to Gateway of Tally > Display > Statutory Reports >
TDS Reports.
 Choose the required report (e.g., TDS Deduction Summary,
TDS Deduction Register, etc.).
 Set the appropriate period for the report.
2. Print TDS Reports:
 After displaying the TDS report, press Alt + P to print it.
 Configure the printing settings and print the TDS report.

Notes:
 Regularly update Tally.ERP 9 to ensure you have the latest statutory
updates.
 Consult with a tax professional to ensure accurate configuration
based on local tax regulations.

Following these detailed steps should help you effectively activate,

configure, and manage TDS features and related processes in
Tally.ERP 9.

Experiment No:9
 Payroll and steps to activate and configure payroll settings. Write steps of payroll accounting
system, employee groups, payroll masters, creation of employees, payroll units, leaves.

Activating and Configuring Payroll Settings:

1. Open Tally.ERP 9:
 Launch the Tally software and open the company for which you
want to set up payroll.
2. Activate Payroll Feature:
 Go to Gateway of Tally.
 Press F11 to go to Features.
 Enable the option Enable Payroll.
3. Configure Payroll Settings:
 Under Gateway of Tally > Accounts Info > Payroll Info,
configure settings such as the calculation period, method of
calculation, and other relevant options.

Payroll Accounting System:

1. Create Pay Heads:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Pay Heads > Create.
 Define various pay heads such as Basic Salary, HRA, Provident
Fund, etc.
 Assign appropriate calculation types and percentages.
2. Create Earnings and Deductions:
 Differentiate between Earnings (like Basic Salary) and
Deductions (like Provident Fund).
 Specify whether each pay head is a component of Cost to
Company (CTC).

Employee Groups:
1. Create Employee Groups:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Employee Groups > Create.
 Define groups based on your organization's structure (e.g.,
Sales, Administration, etc.).
 Payroll Masters:
1. Define Payroll Masters:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Employee Categories > Create.
 Create categories like Permanent, Contractual, etc.
2. Configure Attendance/Production Types:
 Define types of attendance or production (e.g., Present,
Absent, Overtime) under Gateway of Tally > Accounts Info
> Payroll Info > Attendance/Production Types > Create.

Creation of Employees:
1. Create Employee Ledger:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Employees > Create.
 Enter details like Employee Name, Address, Date of Joining,
etc.
 Assign the appropriate Employee Group and Employee
Category.
2. Assign Pay Structure:
 Specify the salary structure by assigning the appropriate pay
heads with their respective amounts.

Payroll Units:
1. Define Payroll Units:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Units > Create.
 Define units like Days, Hours, etc., based on your
organization's policy.

Leaves:
1. Configure Leave Types:
 Go to Gateway of Tally > Accounts Info > Payroll Info >
Leave Types > Create.
 Define various leave types such as Casual Leave, Sick Leave,
etc.
2. Allocate Leave Entitlement:
  Allocate the number of leaves each employee is entitled to for
each leave type.

Process Payroll:
1. Enter Attendance:
 Go to Gateway of Tally > Payroll Vouchers > Attendance
Voucher.
 Enter the attendance details for each employee.
2. Process Payroll:
 Go to Gateway of Tally > Payroll Vouchers > Payroll
Voucher.
 Enter the payroll processing details, and Tally will
automatically calculate the salary based on the configured pay
structure.
3. Generate Payroll Reports:
 Navigate to Gateway of Tally > Display > Payroll Reports
to view reports like Pay Slip, Payroll Register, and Attendance
Sheet.

Notes:
 Consult with your HR and finance team to accurately configure
payroll settings based on your organization's policies.
 Keep track of any statutory compliance requirements related to
payroll in your region.

These steps should help you set up and manage payroll effectively
in Tally.ERP 9. Adjustments might be needed based on the specific
requirements and policies of your organization.

Experiment :10

Creation of various Pay Heads. For Example: We want to create a Salary detail of Mr. Karan.
Suppose Karan Salary is Rs. 40,000 p.m. Karan has take a loan of Rs. 10,000 from the company
on a condition that he would return the loan in 4 equal installments
 1. Basic Salary Pay Head:

 Name: Basic Salary

 Amount: Rs. 40,000 per month
 Frequency: Monthly

The Basic Salary pay head represents the fixed amount that Mr.
Karan receives as his regular monthly salary.

2. Loan Deduction Pay Head:

 Name: Loan Deduction

 Amount: Rs. 10,000 (total loan amount)
 Frequency: Monthly
 Duration: 4 months
 Calculation Type: Fixed Amount

The Loan Deduction pay head is created to account for the loan Mr.
Karan has taken from the company. The loan amount is Rs. 10,000,
and it will be deducted in 4 equal installments of Rs. 2,500 each
month. The frequency is set to monthly to ensure the deduction
occurs every month.

3. Other Allowances Pay Heads (if applicable):

 Additional pay heads can be created for various allowances, such as

House Rent Allowance (HRA), Travel Allowance, etc.
 For example:
 Name: HRA
 Amount: Rs. [Amount]
 Frequency: Monthly

Depending on the company policy, you might have various

allowances that contribute to the overall salary structure.

4. Provident Fund Deduction Pay Head:

 Name: Provident Fund

 Percentage: [Percentage]
 Calculation Type: Percentage of Basic Salary
 Frequency: Monthly

Provident Fund is a common deduction based on a percentage of

the Basic Salary. The exact percentage can vary based on the
company's policies.

5. Income Tax Deduction Pay Head:

 Name: Income Tax

 Formula: [Tax calculation formula]
 Frequency: Monthly

If applicable, an Income Tax Deduction pay head can be set up

based on the income tax calculations relevant to Mr. Karan's salary.

6. Net Salary Pay Head:

 Name: Net Salary

 Formula: Basic Salary + Allowances - Deductions
 Frequency: Monthly

The Net Salary pay head is a calculated pay head that reflects Mr.
Karan's actual take-home pay after accounting for all earnings and
deductions.

Setting up these pay heads in the payroll system ensures accurate

and automated calculation of Mr. Karan's salary, including the loan
deductions and any other relevant components. It's essential to
review and adjust these pay heads as per company policies and
legal requirements. Additionally, regular monitoring of the payroll
system ensures compliance and accuracy in salary processing.