LAB EXERCISE -1 Company Creation

Steps to Create a Company in Tally

1. Open Tally:
o Double-click the Tally icon on your desktop.
2. Access Company Information:
o Press Alt+F3 or navigate to Gateway of Tally -> Company Info ->
Create Company.
3. Enter Company Details:
o Company Name: This is the official name of your business.
o Mailing Name: This is the name that will appear on your invoices
and other documents.
o Address: Enter the complete address of your company.
o State: Select the state where your business is located.
o Country: Select the country.
o Pin code: Enter the pin code of your business location.
o Contact Details: Provide your company's phone number, email
address, and other relevant contact information.
o Financial Year: Specify the financial year for your company (e.g.,
April 1 to March 31).
o Currency: Select the base currency for your transactions.
o Security: Set a password for your company data (optional).
4. Additional Details (Optional):
o Tax Registration: If applicable, enter your GSTIN, VAT, or other
tax registration details.
o Accounting Features: Customize accounting features based on your
business needs (e.g., inventory management, payroll).
5. Save the Company:
 o Press Ctrl+A to save the company.

LAB EXERCISE -2 Ledger Creation

Ledger Creation
 Access Gateway of Tally: Open Tally and go to the Gateway of Tally
screen.
 Navigate to Accounts Info: Press Alt+F1 or go to Gateway of Tally ->
Accounts Info -> Ledgers -> Create.
 Enter Ledger Details:

 Name: Provide a unique name for the ledger (e.g., Cash-in-Hand, Sales
Account).
 Alias: Optional, for quick access using a shorter name.
 Under: Select the appropriate group from the list of groups. If the group
doesn't exist, create it first.
 Opening Balance: If there's an opening balance, specify the amount and
whether it's debit or credit.
 Other details: You can add additional information like address, contact
details, etc., if required.

Save the Ledger: Press Ctrl+A to save the ledger.

LAB EXERCISE -3 Creation of Stock Groups and Stock Items

Steps to Create a Stock Group:

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of
Tally.
3. Go to Inventory Info: Select Inventory Info from the Gateway of
Tally.
4. Create Stock Group: Choose Stock Groups and then Create.
5. Enter Group Details:
o Name: Specify a unique name for the stock group (e.g., Raw
Materials, Finished Goods).
o Alias: You can enter an alias for quick reference.
o Under: Select the parent group if you want to create a sub-group.
Otherwise, leave it blank for a primary group.
6. Save: Press Ctrl+A to save the stock group.
Steps to Create a Stock Item:

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of
Tally.
3. Go to Inventory Info: Select Inventory Info from the Gateway of
Tally.
4. Create Stock Item: Choose Stock Items and then Create.
5. Enter Item Details:
o Name: Specify a unique name for the stock item (e.g., Wheat
Flour, Sugar).
o Alias: You can enter an alias for quick reference.
o Under: Select the appropriate stock group from the list.
o Unit: Choose the unit of measurement for the item (e.g., Kg, Litre,
Piece).
o Other Details: You can add additional information like
description, barcode, etc.
6. Save: Press Ctrl+A to save the stock item
LAB EXERCISE -4 Vouchers Entry including GST

1. Voucher Entry with GST (Purchase Example):

1. Open Tally: Launch the Tally application.

2. Go to Gateway of Tally: Press Alt+F1 or navigate to Gateway of Tally.
3. Select Vouchers: Choose Vouchers from the Gateway of Tally menu.
4. Create Purchase Voucher: Select Purchase -> Create Voucher.
5. Enter Voucher Details:

a. Party: Select the supplier from the list (e.g., "ABC Wholesalers").
b. Date: Enter the transaction date (e.g., "2024-08-07").
c. GST Details:
i. Select GST Type: Choose the appropriate GST type based on the
supplier location (e.g., "SGST & CGST" if the supplier is in the same
state).
ii. Rate: Enter the applicable GST rate (e.g., "18%").
d. Items:
i. Add the purchased items with their quantities, rates, and discounts.
ii. For this example, let's add two items:
1. Item: "Wheat Flour" (Qty: 100 Kg, Rate: Rs. 25 per Kg,
Discount: 5%)
2. Item: "Sugar" (Qty: 50 Kg, Rate: Rs. 40 per Kg)
e. Narration: (Optional) Add a brief description of the purchase (e.g., "Regular
purchase of wheat flour and sugar").
Tally will automatically calculate the GST amount based on the selected rate and item
value.

6. Save the Voucher: Press Ctrl+A to save the purchase voucher with GST.

LAB EXERCISE -5 Generating Reports Cash Book, Ledger Accounts,

Trial Balance.

Generating Reports in Tally

Cash Book

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of Tally.
3. Select Accounts Books: Choose Accounts Books from the Gateway of
Tally menu.
4. Display Cash Book: Select Cash Book.
Trial Balance

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of Tally.
3. Select Display: Choose Display from the Gateway of Tally menu.
4. View Trial Balance: Select Trial Balance.
LAB EXERCISE -6 Reports Generation -Profit and Loss Account, Balance
Sheet.

Profit and Loss Account

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of
Tally.
3. Select Display: Choose Display from the Gateway of Tally menu.
4. View P&L Account: Select Profit & Loss A/c.

Balance Sheet

1. Open Tally: Launch the Tally application.

2. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of
Tally.
3. Select Display: Choose Display from the Gateway of Tally menu.
4. View Balance Sheet: Select Balance Sheet.
LAB EXERCISE -7 Selecting and shutting a Company; Backup, and
Restore data of a Company

Selecting a Company

1. Open Tally: Launch the Tally application.

2. Select Company: You'll be presented with a list of companies. Use the
arrow keys to navigate and select the desired company. Press Enter to
open it.
Shutting a Company

1. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of

Tally.
2. Select Company Info: Choose Company Info from the menu.
3. Select Shut Company: Select Shut Company.
4. Confirm Shutdown: Confirm the shutdown process when prompted.

Backing Up Company Data

1. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of

Tally.
2. Select Data: Choose Data from the menu.
3. Select Backup: Select Backup.
4. Select Company: Choose the company you want to back up.
5. Choose Destination: Specify the location where you want to save the
backup file.
6. Start Backup: Press Ctrl+A to initiate the backup process.
Restoring Company Data

1. Access Gateway of Tally: Press Alt+F1 or navigate to Gateway of

Tally.
2. Select Data: Choose Data from the menu.
3. Select Restore: Select Restore.
4. Select Backup File: Choose the backup file you want to restore.
5. Choose Destination: Specify the location where you want to restore the
data.
6. Start Restore: Press Ctrl+A to initiate the restore process.
LAB EXERCISE -8Accounts and Provisions Using Accounting
Software/Package or in MS Excel

Using MS Excel

1. Create a Spreadsheet

 Columns for Date, Account Name, Description, Debit, Credit.

 Separate sheets for Assets, Liabilities, Equity, Income, and Expenses.

2. Account Creation

 List account names in respective sheets.

3. Transaction Entry

 Manually record transactions, ensuring debits equal credits.

 Use formulas for calculations.

4. Provisioning

 Create a row for "Provision for Bad Debts" in the Liabilities sheet.
 Estimate and record the provision amount.
 Adjust in subsequent periods.

5. Generating Reports

 Use formulas to calculate totals and balances.

 Manually prepare financial statements.

Example: Provision for Bad Debts in Excel

 In the Liabilities sheet, create a row for "Provision for Bad Debts".
 Enter the estimated provision amount.