Volume 2

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Volume - II
Version: 1.1
Last Updated: January 2018
Volume - II 1
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Tally.ERP 9 Volume-II book is designed to issue to the students enrolled with TallyAcademy Network Partner (TANP) and
is not for sale in public. Contents of this book, the design and layout are the intellectual property of TallyAcademy.
Information in this book is subject to change by TallyAcademy without notice. The name of companies, products, people,
characters, and/or data mentioned herein are hypothetical and are in no way intended to represent any real individual, company,
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and/or changes herein at any time. TallyAcademy makes no representations about the accuracy of the information contained in
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for which TallyAcademy shall not hold any responsibility.
Preface :
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting
the information in various reports and analyses. Accounting also entails providing a company's management with
the information it needs to keep the business financially healthy. Tally acts as an 'integrated enterprise solution',
enabling the new age business to simplify their day-to-day business dealings and have real time access to
information which will facilitate strategic decision-making.
In Volume-II, you will learn advanced accounting and the functions of inventory plays in trading and
manufacturing organisations. Also it contains transactions involving purchase and sale of goods, accounts
receivable and accounts payable as well as closing entries and stock valuation at the end of the year for
organisations. This volume also acquaint about the advanced features like GST, Bill wise details, Price List, Forex
gain or Loss, bill of material, stock valuation etc.
Completion of Volume-I and Volume-II will impart the knowledge of Account Executive Course.
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Contents
Lesson 1 Bill Wise Details in Tally.ERP 9 ...…………………………………………………… 6
1.1 Introduction………………………………………………………….................................................... 6
1.2 Creation of Company with practice Exercise ....................................................................................... 6
Lesson 2 Price Levels and Price List 22

…………………………………………………………………
2.1 Introduction…………………………………………………………….............................................. 22
2.2 Activating Price Lists and Defining Price Levels …………………………....................................... 23
2.3 Creating Price List.....……………………………………………..................................................... 23
Lesson 3 Actual and Bill Quantities ……………………………………………………………. 26
3.1 Introduction………………………………………………………………………………………….. 26
3.2 Activation of Actual and Bill Quantities……………………….......................................................... 26
3.3 Using different Actual and Bill Quantities ……………………………….......................................... 26
Lesson 4 Bill of Material ……………………………….……………………………………...... 28
4.1 Introduction……………………………………………...................................................................... 28
4.2 Enabling BOM in Tally.ERP 9…………………………………......................................................... 28
4.3 Creation of BOM in Tally.ERP 9…………………………………………......................................... 28
Lesson 5 Stock Valuation / Costing Methods ………………………………………………….. 30
5.1 Introduction……………………………………………...................................................................... 30
5.2 Stock Valuation…………………………………................................................................................ 30
5.3 Market Valuation…………………………………………………………......................................... 31
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Lesson 6 Interest in Tally.ERP 9………………………………………………….. 33
6.1 Introduction……………………………………………...................................................................... 33
6.2 Interest Styles…………………………………................................................................................ 33
6.3 Practice Exercise………………………………………………………......................................... 33
Lesson 7 Cost Centres in Tally.ERP 9………………………………………………….. 52
7.1 Introduction……………………………………………...................................................................... 52
7.2 Cost Category…………………………………................................................................................ 52
7.3 Practice Exercise………………………………………………………......................................... 52
Lesson 8 Security Control in Tally.ERP 9………………………………………………….. 74
8.1 Tally Vault……………………………………………...................................................................... 74
8.2 Security Control………………………………................................................................................ 77
8.2.1 Practice Exercise………………………………………………………......................................... 77
Lesson 9 Recording Transaction as Sample Data ……………………………………………... 90
Company Creation and Enabling GST…………………………………………………………………... 92
Transaction for July 2017............................................................................................................................. 95
Transaction for August 2017........................................................................................................................ 115
Transaction for September 2017................................................................................................................... 131
Transaction for October 2017...................................................................................................................... 141
Transaction for November 2017................................................................................................................... 151
Transaction for December 2017................................................................................................................... 165
Transaction for January 2018...................................................................................................................... 176
Transaction for February 2018.................................................................................................................... 187
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Transaction for March 2018......................................................................................................................... 202
Provision Entries.......................................................................................................................................... 217
Depreciation Entry............................................................................................................................. ........... 218
Adjustment Entries........................................................................................................................................ 219
Lesson 10 Display and Reports …………………………………………………………………... 222
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Lesson 1: Bill-Wise Details in Tally.ERP 9
1.1. Bill Wise Details
The details of all the sales and purchase transactions made with the debtors and creditors have
to be maintained at the invoice level. In order to maintain these details, Tally.ERP 9 provides a
feature called Bill-wise details.
The Bill-wise details must be set to Yes for all the ledgers created under the groups Sundry
Debtors and Sundry Creditors. When bill-wise details option is set to Yes, Tally.ERP 9
prompts you to enter any of the following methods of adjustments:
 New Ref - This is selected for new financial transactions. In Simple to Create a
reference of bill.
 Advance - This is selected when you receive or pay money in advance. Typically, when
a bill is raised, part of the bill is adjusted against the advance (using Agst Ref) and the
balance amount is carried as New Ref while making the sale or purchase entry.
 Against Ref - This is selected to set-off payments against the previously entered New
Ref. In Simple to close the earlier reference.
 On Account - This is used when you do not possess the details about the bills against
which the money should be adjusted. However, you can set off these bills on a later date
against the relevant bill references, if required by selecting Against ref.
Let us make some entries to understand Bill Wise Details

1.2 Create a company Raj Electronic Accounts with Inventory as shown below
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Figure 1.1 Company Creation
Create the following Masters
Ledger Name Under Inventory Values are affected

Purchase Purchase Yes
Sales Accounts
Sales Accounts Yes
Ledger Name Under Maintain balances bill-by-bill

Power Line Computers Sundry Creditors Yes
A1 Solutions Sundry Debtors Yes
Aishwarya Electronics Sundry Debtors Yes
Unit of Measure Type Number of decimal places

Nos Simple 0
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Name of Item Under Units

Hp Laser Jet 2200 Primary Nos
1.3.1 New Reference

Entering Bill-wise details for a Purchase Voucher (New Reference)
April : Example 1
On 03-04-2017 received 10 Nos of HP Laser Jet 2200 Printers from Power Line Computers
at Rs. 8000. Bill Number PLC-01/1718
 Use Common ledger account for item allocation : “No”

 Purchase Invoice Configuration : Use defaults for bill allocation to “No”
Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .

1. Press F2 to Change Voucher Date. Type 2.4.2017
2. Supplier Invoice No. : PLC-01/1718
3. Party Account Name: Power Line Computers
4. Name of Item: Select Hp Laser Jet 2200 from the list of Items.
5. Enter the quantity as 10 and rate as 8000 and Press Enter
6. In Accounting Details for: Hp Laser Jet 2200 screen, select Purchase Ledger
7. Press Enter thrice to view Bill-Wise Details for: Power Line Computers.
8. Ensure that Bill-Wise Details for: Power Line Computers is as shown.
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Figure 1.3.1.1 Bill-wise Details for Power Line Computers

9. The resultant screen display as shown.
Figure 1.3.1.2 Purchase Voucher
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April : Example 2
On 05-04-2017 received 15 Nos of HP Laser Jet 2200 Printers from Power Line Computers
at Rs. 8000. Bill Number PLC-02/1718
Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .

2. Supplier Invoice No. : PLC-02/1718
3. Party Account Name: Power Line Computers
6. In Accounting Details for: Hp Laser Jet 2200 screen, select Purchase Ledger

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Entering Bill-wise details for a Sales Voucher (New Reference)

April : Example 3
On 10-04-2017 sold 6 Nos of HP Laser Jet 2200 Printers to A1 Solutions at Rs. 9500. Bill
Number RE/01/1718
Make an entry of the transaction in a Sales Voucher (Item Invoice Mode) .

2. Reference No. : RE/01/1718
3. Party Account Name: A1 Solutions
6. In Accounting Details for: Hp Laser Jet 2200 screen, select Sales Ledger
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The resultant screen display as shown.
Figure 1.3.1.2 Sales Voucher
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1.3.2 Advance
April : Example 4
On 14-4-2017, The Company received advance from Aishwarya Electronics of Rs. 80,000 by
cheque.
Setup :
1. Create ICICI Bank Ledger Under Bank Accounts
2. In Receipt Configuration : User Single Entry mode for payment/receipt/contra vouchers?
To Yes
i. Make an entry of the transaction in a Receipt Voucher.

2. In Account Field : Select Dr. Ledger as a ICICI Bank and Press Enter
3. In particulars select Cr. Ledger as Aishwarya Electronics
4. Type the amount as Rs. 80,000
5. In Bill-Wise Details for: Aishwarya Electronics is as shown.
Figure 1.3.2.1 Bill-wise Details for Aishwarya Electronics

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Figure 1.3.2.2 Receipt Voucher
1.3.3 Against Reference

April : Example 5
On 15-4-2017, The Company received half payment from A1 Solutions against bill No
RE/01/1718 by cheque.
Make an entry of the transaction in a Receipt Voucher.

2. In Account Field : Select Dr. Ledger as a ICICI Bank and Press Enter
3. In particulars select Cr. Ledger as A1 Solutions
5. In Bill-Wise Details for: Aishwarya Electronics is as shown.
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Figure 1.3.3.1 Bill-wise Details for A1 Solutions

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April : Example 6
On 17-4-2017, The Company paid to Power Line Computers Rs. 95,000 by by cheque.
Make an entry of the transaction in a Payment Voucher.

2. In Account Field : Select Cr. Ledger as a ICICI Bank and Press Enter
3. In Particulars select Dr. Ledger as Power Line Computers
5. In Bill-Wise Details for: Power Line Computers is as shown.

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1.3.4 Adjustment of Advance with Against Reference and Creation of New Reference
April : Example 7
On 18-04-2017 sold 10 Nos of HP Laser Jet 2200 Printers to Aishwarya Electronics at Rs.
9500. Bill Number RE/02/1718 (Advance received Adv-01/1718 adjusted)
Make an entry of the transaction in a Sales Voucher (Item Invoice Mode) .

2. Reference No. : RE/02/1718
3. Party Account Name: Aishwarya Electronics
6. In Accounting Details for: Hp Laser Jet 2200 screen, select Sales Ledger
7. Press Enter thrice to view Bill-Wise Details for: Aishwarya Electronics
8. Ensure that Bill-Wise Details for: Aishwarya Electronics is as shown.
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Figure 1.3.1.1 Bill-wise Details for Aishwarya Electronics

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1.3.5 Reports
1.3.5.1 Bill-wise outstanding Report
This report displays the party-wise details of all the bills during a specified period. Bill-Party wise
outstandings report can be viewed from Bills Receivables, Bills Payables and Group Outstandings reports.
Bills Receivable :
Go to Gateway of Tally > Display > Statements of accounts > Outstandings > Receivables
Press Alt + F1 (Detailed)
Figure 1.3.5.1.1 Bills Receivable
Age wise Analysis in Bill-Party wise Outstandings report :
For Age wise analysis of bills receivable - party wise,
● Press F6 or click F6: Age wise
● Select Ageing by Bill Date as per requirement
● Specify the period for which this report is viewed
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Figure 1.3.5.1.2 Age Wise
The bill-party wise receivables report appears with the applied ageing method.
Figure 1.3.5.1.3 Bills Outstanding
Bills Payable :
Go to Gateway of Tally > Display > Statements of accounts > Outstandings > Payables
Press Alt + F1 (Detailed)
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Figure 1.3.5.1.4 Bills Payable
1.3.6 Bill-wise Details for Non-Trading Accounts

Tally.ERP 9 provides you the capability to maintain bill-wise details for accounts other than
trading parties (i.e., Non-Trading Sundry Debtors and Sundry Creditors). This feature can also
be used to track installments payable for a loan or amount receivable over a certain period.
To enable Bill-wise details for Non-Trading Accounts,
Go to Gateway of Tally > F11: Features (Accounting Features)
 Set Maintain Bill-Wise Details (for Non-Trading A/c s also) to Yes
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Lesson 2: Price Levels and Price List in Tally.ERP 9
2.1. Introduction
A Price List refers to a list of items maintained by an organisation along with their price
details. Price Lists are maintained in various structures for different types of buyers
(customers), viz., wholesalers, dealers, retailers, etc. In case of bulk sales, discounts can also be
given to the buyers. Tally.ERP 9 permits you to create any number of price lists, based on the
Stock Group and Stock Category to match the structure you need.
2.1.1 Create a company Mumbai Traders Accounts with Inventory as shown below
Figure 2.1. Company Creation
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 Create Stock Group as Milton Thermo Steel Flask

 Create Nos as Units of Measure
 Create Stock Items as Thermo Steel 750 ML Bottle and Thermo Steel 1000 ML
Bottle under Milton Thermo Steel Flask
 You can create Price List with discount or Value basis also.
 For the discount percentage to be taken in the Price List, you should activate the feature
Separate Discount Column on Invoices in the F11: Features (Inventory Features).
2.2 Activating Price Lists and Defining Price Levels

Setup:
Go to Gateway of Tally > F11: Features (Inventory Features)
 Set Use multiple price levels to Yes. (This will appear only if the feature Allow
Invoicing is set to Yes.)
 In the Company Price Levels screen, type different price levels as shown:
Figure 2.2. Company Price Level

 Press Enter to activate the Price List
2.3 Crating Price List
Go to Gateway of Tally > Inventory Info. > Price List >

 Select the Stock Group Name as Milton Thermo Steel Flask and select the Price
Level and enter the Applicable From date as shown below:
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Figure 2.3. Creating Price List
 Specify the price details as it appears in the Price List screen as shown :
Figure 2.4. Price List

 Press Enter to save the Price List
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The explanation of the fields appearing in the Price List is given below:
 Under Group – The screen displays the name of the selected Stock Group
(Components) whose stock items are being displayed.
 Price Level – Tally.ERP 9 displays a pop-up list displaying the price levels defined in
the F11: Features (Inventory Features).
 Applicable From – The date from which the defined Price List is applicable.
 Quantities – Here you can define the quantity range of the items as per your
requirements.
 Rate – The Rate for the item based on the quantity range given.
 Discount % (if any) – You can define a discount percentage in the Price List which will
be taken automatically in the sales invoice.
 Historical Details – Tally.ERP 9 provides the historical details of the sale rate and
discount percentage of any previously created Price Lists.
 Cost price – Tally.ERP 9 displays the cost price of the item calculated based on the
stock valuation method given in the item master.
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Lesson 3: Different Actual & Billed Quantities in

Tally.ERP 9
3.1. Introduction
There are situations when you have to invoice the customer for a particular quantity but
actually supply a different quantity. Using this option, you can specify different actual and
billed quantities in the same invoice. The Actual quantity updates the stock balances and Billed
quantities affect the books of accounts. This feature is widely used to record supply of free
items.
3.2. Activating different Actual and Bill Quantities
To activate different Actual and Billed Quantities,

 Go to F11: Features (Inventory Features) and set Use separate actual & billed
quantity columns to Yes
 Open Mumbai Traders Company and create following ledgers

 Create Milton Pvt Ltd Company ledger under sundry creditors
 Create Purchase ledger under Purchase Account
3.3. Using different Actual and Bill Quantities
Illustration 1: On 01-04-2017, received a purchase invoice from Milton Pvt Ltd Company for
the following item :
Name of Item Actual Qty Billed Qty Rate (in
Thermo Steel 750 ML Bottle 100 Nos 100 Nos Rs.)
300
Thermo Steel 750 ML Bottle 20 Nos Free
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Create purchase Invoice Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
 Select the party as Milton Pvt Ltd Company
 Select Thermo Steel 750 ML Bottle and enter the details as per the above table
 The completed Purchase Voucher appears as shown below
Figure 3.3. Purchase Voucher - Actual vs Billed
The Actual Quantity updates stock and inventory books, whereas the billed quantity is reflected
in the financial books of accounts.
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Lesson 4: Bill of Material in Tally.ERP 9
4.1. Introduction
The process of listing the items that make up another item is termed as the Bill of Materials
(BoM). The purpose of creating a bill of material is to enable the consumption of the materials
in the ratio specified, when the product is manufactured. Tally.ERP 9 allows us to use a
Manufacturing Journal to enter the goods manufactured with the bill of materials.
A BoM can be created at the time of manufacturing/ assembling the item. You may specify a
BoM at the time of creating a stock item or altering its master.
Open Mumbai Traders Company and do as follows.
4.2. Enabling BOM
To enable Bill of Materials (BoM) feature,

 Go to Gateway of Tally > F12: Configure > Accts / Inventory Info.
o Set Allow Component list details (Bill of Materials) to Yes
4.3. Creating BOM
Create following raw material in Mumbai Traders Company

Go to Gateway of Tally > Inventory Info > Stock Items > Create
Name of the Item Under Units of Measure
Hard Disk Raw Material Nos
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DVD Drive Raw Material Nos
Processor Raw Material Nos
Monitor Raw Material Nos
Keyboard Raw Material Nos
Mouse Raw Material Nos
To Create Bill of Materials (BoM),

Create the Computer as a stock item (Finished Goods):
Name of Item Under Units Maintain in Set Components
Batches (BoM)
Computer Finished Goods Nos No Yes
Go to Gateway of Tally > Inventory Info > Stock Items > Create
 Set the option Set Component (BoM) to Yes in F12 Configuration
 Specify the Name as BOM-1 and enter the Unit of manufacture as 1
 In the Item details section, select 1 unit of these items
The Bill of Material component screen appears as shown :
Figure 4.3. Bill of Material
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Lesson 5: Stock Valuation in Tally.ERP 9
5.1. Introduction
The cost of inventories is made up of the purchase price of the stock items and all other
recurring and or non-recurring expenses incurred during the process of acquiring these items.
The costing methods determines how you handle the costs associated with the buying of the
same items at different purchase prices over a given period.
5.2. Stock Valuation / Costing Methods
Tally.ERP 9 provides various stock valuation methods to evaluate the stock position of a
company. The Stock Valuation / Costing Methods available in Tally.ERP 9 are:
 At Zero Cost : When this costing method is used, both inventory and the cost of goods
sold are assumed to be at zero cost. This method is generally suggested for non-
stockable items
 Avg. Cost : When this costing method is used, both inventory and the cost of goods
sold are based upon the average cost of all items received in stock
 FIFO (First-in First Out) : When this costing method is used, the cost of goods sold is
based upon the cost of material bought earliest in the period, while the cost of inventory
is based upon the cost of material bought later in the year. This method helps in
valuation of inventory close to current replacement cost
 FIFO Perpetual : FIFO is based on the periodic inventory system i.e., the ending
inventory is counted and costs are assigned only at the end of the period. Whereas in
perpetual system, a running count of goods on hand is maintained at all time. Both
FIFO periodic and FIFO perpetual method produce the same financial statements
because in both cases, the opening inventory and earliest purchases are charged to cost
of goods sold. As compared to FIFO periodic, FIFO perpetual method results in highest
gross profit
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 Last Purchase Cost : When this costing method is used, both inventory and the cost of
goods sold are based upon the latest purchase price of items received in stock
 LIFO Annual : When this costing method is used, the cost of goods sold is based upon
the cost of material purchased towards the end of the period, while the cost of inventory
is valued on the basis of the cost of materials bought earlier in the year. i.e., It is
assumed that the material which is acquired last is issued first. This method results in
costs that closely approximate current costs
 LIFO Perpetual : LIFO can also be applied on a perpetual basis. But, the results are
similar as the periodic LIFO approach because in periodic LIFO the purchases made
towards end of the period are charged to cost of goods sold at the end of the period
whereas in perpetual system, the latest purchases are charged constantly. As compared
to periodic LIFO, LIFO perpetual method results in lowest gross profit
 Monthly Avg. Cost : When this costing method is used, both inventory and the cost of
goods sold are based upon the monthly average cost of all items received in stock
 Std. Cost : When this costing method is used, both inventory and the cost of goods sold
are based on the standard fixed cost assigned to the items
5.3. Market Valuation Method
There are various ways to determine the value of your inventory and each type of valuation has
its own benefits. Many small businesses use Average price as the default valuation type.
Tally.ERP 9 provides the following Market Valuation Methods :

 At Zero Price : When this method is used, the valuation of inventory is done at Zero
value
 Avg. Price : When this method is used, the valuation of inventory is based on the
average sale price
 Last Sale Price : When this method is used, the valuation of inventory is based on the
price at which the goods were sold last
 Std. Price : When this method is used, the valuation of inventory is based on the
Standard Selling price assigned to the items
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In Tally.ERP 9,
 The Costing Method is set as Avg. Cost by default.
 The Market Valuation Method is set as Average Price by default.
 The valuation of Closing Stock is done based on the Costing / Stock Valuation
Methods and is not based on the Market Valuation Methods.
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Lesson 6: Interest in Tally.ERP 9
6.1. Interest Calculations
Interest is a legitimate return on money invested and chargeable in the business world on loans
and also on delayed payments. Interest can be calculated on the basis of simple interest or compound
interest. In Tally.ERP 9 you can calculate interest in two ways :
 Simple Mode
 Advanced Mode
6.2. Interest Styles
Tally.ERP 9 comprises of the following 4 Interest Styles :.

 30-day month - Interest will be calculated assuming that all months have 30 days. For
example: Month Feb 2018; Amount - 1000; Rate of interest - 2%; Period of interest - 5
days. Interest amount will be 1000 x 5/30 x 2% = 3.33
 365-day Year - Interest will be calculated assuming 365 days in a year.
 Calendar Month - Based on the calendar with 28/29 days for Feb and 30/31 days for
other months. For example: Month - Feb 2018; Amount - 1000; Rate of interest - 2%;
Period of interest - 5 days. Interest amount will be 1000 x 5/28 x 2% =3.57
 Calendar Year - Based on the calendar year i.e., 365 days or 366 days Interest amount
will be calculated.
6.3. Exercise
Set Up :
 Create a company “Naresh Consultancy” Accounts only company as shown below
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Figure 6.3.1 Company Creation
 To make your company Accounts only Go to F11: Features (Accounting Features) :

Set Maintain Accounts only to Yes
6.3.1. Activating Interest Calculation
Setup :
 Set Activate Interest Calculation to Yes in F11: Features (Accounting Features).
 Do NOT activate use advanced parameters (under Interest Calculations), accept the
changes and return to the Gateway of Tally.
6.3.2 Interest Calculation in Simple Mode
April : Example 1
On 1-04-2017, Naresh Consultancy raise bill of Rs. 50,000 on RE Enterprises against Bill
No. NC-01/1718. Interest will be chargeable @ 10% from date of invoice.
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Create the ledger RE Enterprises as follows

 Name : RE Enterprises
 Under : Sundry Debtors
 Maintain balances bill-by-bill Yes
 Active Interest calculation : Yes
Figure 6.3.2.1 Interest Parameters

 Press Enter and accept interest parameters and ledger creation screen
Create the ledger Consultancy Fees as follows

 Name : Consultancy Fees
 Under : Sales Accounts
 Active Interest calculation : No
 Press Enter to accept ledger creation screen
 Make sure your are using Account Voucher format (Ctrl + V : As Invoice)
 Sales Invoice Configuration : Use defaults for bill allocation to “No”
Make an entry of the transaction in a Sales Voucher (Invoice Mode) .

2. Ref No. : NC-01/1718
3. In Party A/c Name field Select Party ledger as RE Enterprises.
4. In Particulars, select Consultancy Fees Ledger and type the amount 50,000/- Press
Enter.
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5. In Bill-Wise Details select New Ref, bydefault bill name as NC-01/1718 will come.
Press Enter to accept
Figure 6.3.2.2 Bill wise details

6. Press Enter and the Voucher screen appear. Skip the narration.
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To view the interest report

To view Interest Calculated on RE Enterprises,
Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations >
Ledger > RE Enterprises.
 Change the period from 1-4-17 to 30-4-17. The Ledger Interest screen appears as
shown below
Figure 6.3.2.4 Ledger Interest
6.3.2.1 View Interest transaction-by-transaction
April : Example 2
On 3-04-2017, Naresh Consultancy raise bill of Rs. 80,000 on RE Enterprises against Bill
No. NC-02/1718. Interest will be chargeable @ 10% from date of invoice.
Alter the ledger RE Enterprises as follows

 Name : RE Enterprises
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Figure 6.3.2.1.1 Interest Parameters


2. Ref No. : NC-02/1718
3. In Party A/c Name field Select Party ledger as RE Enterprises.
4. In Particulars, select Consultancy Fees Ledger and type the amount 80,000/- Press
Enter.
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Figure 6.3.2.1.2 Bill wise details

Figure 6.3.2.1.3 Sales Voucher
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To view the interest report transaction-by-transaction

Ledger > RE Enterprises.
 Change the period from 1-4-17 to 30-4-17. Press Alt + F1 for Detailed. The Ledger
Interest screen appears as shown below
Figure 6.3.2.1.4 Ledger Interest
6.3.4 Interest Calculation in Advanced Mode
The advanced parameters are particularly useful where interest rates change from time to time.
Setup :
 In the F11: Features (Accounting Features) Set Use Advanced Parameters to Yes
 Accept the settings and return to the Gateway of Tally.
April : Example 3
On 10-04-2017, Naresh Consultancy raise bill of Rs. 1,00,000 on Supreme Enterprises
against Bill No. NC-03/1718. Interest is chargeable @ 10% from date of invoicing till 20-04-
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2017and @ 15% after 20-04-2017. Compute Interest using 365-Day Year Interest Style and
Calculate From Date Specified During Entry.
Create the ledger Supreme Enterprises as follows

 Name : Supreme Enterprises


2. Ref No. : NC-03/1718
3. In Party A/c Name field Select Party ledger as Supreme Enterprises.
4. In Particulars, select Consultancy Fees Ledger and type the amount 1,00,000/- Press
Enter.
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Figure 6.3.4.2. Bill wise details

6. Enter the Interest Parameter details as shown

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To view the interest report

Ledger > Supreme Enterprises.
 Change the period from 1-4-17 to 30-4-17. Press Alt + F1 for Detailed. The Ledger
Interest screen appears as shown below
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Figure 6.3.4.5 Ledger Interest
6.3.5 Booking Interest

The calculated interest amounts must be recorded using Debit Notes and Credit Notes with
Voucher Classes. Debit notes are used for Interest receivable and Credit Notes for Interest
payable. In Tally.ERP 9, interest is calculated on a Simple or Compound basis and hence
separate classes should be used for them.
Setup :
 Go to F11: Features (Accounting Features) : Enable Use Debit and credit notes to
Yes
 Create Ledger Interest received under indirect income – active interest calculation –
No
 Create Ledger HDFC Bank under Bank Accounts – active interest calculation – No
 Create class for Debit Notes Voucher Type, Go to Gateway of Tally > Accounts Info.
> Voucher Types > Alter > Debit Note
 Tab down to Name of Class field and type Simple Interest
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Figure 6.3.5.1 Voucher Type – Debit Note

 Press Enter.
 In the Class screen, set the other options as shown in the figure
Figure 6.3.5.2 Class Simple Interest

 Press Enter.
April : Example 4
On 30-04-2017, Naresh Consultancy received full amount from RE Enterprises with interest.
Pass the necessary interest entry in debit note voucher before receipt entry.
Create Debit Note Voucher

Go to Gateway of Tally > Accounting Vouchers > press Ctrl+F9 (Debit Note)
 Select the Voucher Class as Simple Interest
 Press F2 and specify the Voucher Date as 30/04/2017
 Type Invoice No. As DN/Int-01
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 In Debit field select the ledger as RE Enterprises and Press Enter

 In list of Interest Bill Select both the bill one by one
Figure 6.3.5.3 list of Interest Bills

 In the debit amount filed amount will come automatically, Press Enter
 In Bill-Wise Details select New Ref, and type bill name as DN/Int-01. Press Enter
 In Credit field select the ledger as Interest received and Press Enter
 Skip the narration.
 The resultant screen display as shown.
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Figure 6.3.5.4 Debit Note

 Press Enter
Make an entry for Interest Plus Invoice amount in receipt voucher (Single Entry Mode)
Note : In Receipt Configuration : Set Use single entry mode for payment/receipt/contra
vouchers to Yes
2. In Account field Select HDFC Bank ledger and Press Enter
3. In Particulars, select RE Enterprises Ledger and type the amount 1,30,989.04/- Press
Enter.
4. In Bill-Wise Details select Agst Ref as below
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Figure 6.3.5.5 Bill Wise Details

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April : Example 5
On 30-04-2017, Naresh Consultancy received full amount from Supreme Enterprises with
interest. Pass the necessary interest entry in debit note voucher before receipt entry.
Create Debit Note Voucher

Go to Gateway of Tally > Accounting Vouchers > press Ctrl+F9 (Debit Note)
 Select the Voucher Class as Simple Interest
 Press F2 and specify the Voucher Date as 30/04/2017
 Type Invoice No. As DN/Int-02
 In Debit field select the ledger as Supreme Enterprises and Press Enter
 In list of Interest Bill Select NC-03/1718 and Press Enter.
 In the debit amount filed amount will come automatically, Press Enter
 In Bill-Wise Details select New Ref, and type bill name as DN/Int-02. Press Enter
 In Interest Parameters filed type rate as 0 (zero) and Press Enter.
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 In Credit field select the ledger as Interest received and Press Enter
 Skip the narration.
 The resultant screen display as shown.
Figure 6.3.5.7 Debit Note

 Press Enter
Make an entry for Interest Plus Invoice amount in receipt voucher (Single Entry Mode)
2. In Account field Select HDFC Bank ledger and Press Enter
3. In Particulars, select Supreme Enterprises Ledger and type the amount 1,00,685/-
Press Enter.
4. In Bill-Wise Details select Agst Ref one by one
Figure 6.3.5.8 Bill Wise Details
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Lesson 7: Cost Centres in Tally.ERP 9
7.1. Cost Centre
A cost centre is a unit of an organisation to which transactions can be allocated. Cost Centres are
units to which costs or expenses are allocated and Profit Centres are units to which incomes are
allocated. Tally.ERP 9's cost centres allow a dimensional analysis of financial information. Tally.ERP 9
gives you the cost centre break-up of each transaction as well as details of transactions for each cost
centre.
7.2. Cost Categories
Cost Categories have been introduced specially for project oriented organisations as they require
allocation of resources to parallel sets of cost centres. For example, the project is to construct an airport.
The airport is the cost centre. For this project certain expenses are incurred by the project head. A
simultaneous allocation of the amount has to be made for both the project and the project head. This
requirement can be achieved using Tally.ERP 9's Cost Category feature. Any number of parallel
allocations can be done as per requirements.
Let us make some entries to understand Cost Centre and Cost Category
7.3 Create a company “R & D Builders” Accounts only company as shown below
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Figure 7.3.1 Company Creation

7.3.1 Activating Cost Category and Cost Centre

Go to F11: Features (Accounting Features) : Set Yes to the following
 Maintain Cost Centres
 Maintain more than one payroll or cost category
7.3.2 Creating Cost Categories

Go to Gateway of Tally > Accounts Info. > Cost Categories > Create.
 Name: Projects & Assignments
 Allocate Revenue Items: Yes
 Allocate Non-Revenue Items: No
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Figure 7.3.2.1 Cost Category Creation

 Press Y or Enter to accept the screen.
Similarly, create Salesmen as a one more Cost Category .
 Allocate Revenue Items: Enable this option to allocate all sales, purchase, expenses
and income related transactions to cost centres and cost categories.
 Allocate Non-Revenue Items: Enable this option to allocate capital items to cost
centres. This helps in monitoring the capital expenditure incurred on cost centres and
measuring them against the revenue earned.
7.3.3 Creating Cost Centre

Go to Gateway of Tally > Accounts Info. > Cost Centres > Create.
 Category : Select Projects & Assignments.
 Name : Vashi Sector 5 Project.
 Under : Primary.
Figure 7.3.3.1 Cost Centre Creation

Note : Similarly create the following Cost Centres,
 Mankhurd Project and Kurla Project by selecting Projects and Assignments as
Cost Category and Primary for Under.
 Sunil and Santosh, by selecting Salesmen as Cost Category and Primary for Under.
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7.3.4 Applying Cost Centres to Ledger Accounts in Vouchers manually.

April : Example 1
On 10-04-2017, purchased for Projects, 3,50,000 worth Cement from Birla Cement to be
shared as 1,00,000 for Vashi Sector 5 Project, 1,00,000 for Mankhurd Project and 1,50,000
for Kurla Projects respectively on credit for 30 days against Bill No. NC-14/1718.
Ledger Name Under Cost Centres are applicable
Purchase - Cement Purchase Accounts Yes

Sales of Projects Sales Accounts Yes
Ledger Name Under Maintain balances Cost Centres

bill-by-bill are applicable
Birla Cement Sundry Creditors Yes No
 Make sure your are using Account Voucher format (Ctrl + V : As Voucher)
Make an entry of the transaction in a Purchase Voucher (Voucher Mode) .

2. Supplier Invoice No. : NC-14/1718
3. In Cr field Select Party Account Name as Birla Cement and type the amount 3,50,000/-
4. In Bill-Wise Details select New Ref, type bill name as NC-14/1718 and Due date as
30 days.
5. In Dr field, select Purchase - Cement Ledger and type the amount 3,50,000/-Press
Enter.
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6. The cursor moves to the Cost Category field, select Projects and Assignments (Cost
Category) > Vashi Sector 5 Project - 1,00,000, Mankhurd Project - 1,00,000 and
Kurla Projects – 1,50,000 respectively.
Figure 7.3.4.1 Cost Allocation Screen

April : Example 2
On 12-04-2017, purchased for Projects, 4,50,000 worth Steel from Global Steel to be shared
as 1,50,000 for Vashi Sector 5 Project, 1,50,000 for Mankhurd Project and 1,50,000 for
Kurla Projects respectively on credit for 30 days against Bill No. GS-21/1718.
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Purchase - Steel Purchase Accounts Yes

Global Steel Sundry Creditors Yes No

2. Supplier Invoice No. : GS-21/1718
3. In Cr field Select Party Account Name as Global Steel and type the amount 4,50,000/-
4. In Bill-Wise Details select New Ref, type bill name as GS-21/1718 and Due date as
30 days.
5. In Dr field, select Purchase - Steel Ledger and type the amount 4,50,000/-Press Enter.
Category) > Vashi Sector 5 Project - 1,50,000, Mankhurd Project - 1,50,000 and
Kurla Projects – 1,50,000 respectively.
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April : Example 3
On 29-04-2017, Monthly Miscellaneous Expense paid by cash for each projects as follows
Vashi Sector 5 Mankhurd Project Kurla Projects
Project
Staff and Welfare 15000 10000 20000
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Wages 40000 35000 45000

Sundry Exp 5000 5000 7000
Vashi Sector 5 Mankhurd Project / Kurla Projects /

Project / SalesMen / SalesMen SalesMen
Conveyance Santosh 4500 3500 5500
Conveyance Sunil 4700 3200 6000
Wages Direct Expenses Yes

Staff and Welfare Indirect Expense Yes
Sundry Exp Indirect Expense Yes
Conveyance Indirect Expense Yes
HDFC Bank Bank Accounts No
Alter the Cash Ledger and give opening balance as Rs. 3,00,000 Dr.
 Enable Use single entry mode for payment/receipt/contra vouchers to Yes
Make an entry of the transaction in a Payment

2. In Account field Select Cash ledger and press enter.
3. In Particulars, select Staff and Welfare Ledger and type the amount 45,000/- Press
Enter.
Category) > Vashi Sector 5 Project - 15,000, Mankhurd Project - 10,000 and Kurla
Projects – 20,000 respectively.
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5. In Particulars, select Second ledger as Wages Ledger and type the amount 1,20,000/-
Press Enter.
Projects – 45,000 respectively
7. In Particulars, select third ledger as Sundry Exp Ledger and type the amount 17,000/-
Press Enter.
Projects – 7,000 respectively
9. In Particulars, select fourth ledger as Conveyance Ledger and type the amount 27,400/-
Press Enter.
Projects – 11,500 respectively and Press Enter
11. Select another Cost Category as Salesmen (Cost Category) > Santosh - 13,500 and
Sunil -13,900 respectively and Press Enter
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Figure 7.3.4.6 Payment Voucher
May : Example 1
On 01-05-2017, Vashi Sector 5 Project was completed and sold to Neelkanth Association for
Rs. 7.,20,000. 2% Commission paid to our salesmen for sales Bill No. RD/01/17-18.
Commission share by Santosh and Sunil by 60 : 40.
Commission Indirect Expenses Yes

Neelkanth Association Sundry Debtors Yes No
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 Sales Invoice Configuration : Use defaults for bill allocation to “No”

2. Ref. No. : RD/01/17-18
3. In Dr field Select Party Account Name as Neelkanth Association and type the amount
7,20,000/-
4. In Bill-Wise Details select New Ref, type bill name as RD/01/17-18
5. In Dr field, select Sale of Projects Ledger and type the amount 7,20,000/-Press Enter.
Category) > Vashi Sector 5 Project - 7,20,000
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7.3.5 Applying Cost Centres to Ledger Accounts with Cost Centre Class.
To set up Cost Centre Classes

1. Go to Gateway of Tally > F11: Features > F1: Accounting Features. Set the option Use
pre-defined cost centre allocations in transactions to Yes.
Figure 7.3.5.1 Cost/Profit Centres management Screen

2. Click Enter, which will pop up Auto Cost Allocations-Cost Centre Classes creation
screen. Type the Class name as Commission Allocation and select the Category as Sales
and the respective cost centres. Specify the percentage of allocation. After entry, your
auto-cost allocation screen will be displayed as shown:
Figure 7.3.5.2 Auto Cost Allocation

 Press Ctrl + A twice to accept Auto Cost Allocation and Company Operations
Alteration Screen

2. Select Cost Centre/Classes as Commission Allocation
4. In Particulars, select Commission Ledger and type the amount 14,400/- (2% of
7,20,000) Press Enter to accept the screen.
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6. Press Enter to Accept the screen
To the see the commission allocation press Page Up Key
The resultant screen display as shown

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May : Example 2
On 02-05-2017, Mankhurd Project was completed and sold to R & N Builders for Rs.
6,30,000. 2% Commission paid to our salesmen for sales Bill No. RD/02/17-18. Commission
share by Santosh and Sunil by 60 : 40.

R & N Builders Sundry Debtors Yes No

2. Ref. No. : RD/02/17-18
3. In Dr field Select Party Account Name as R & N Builders and type the amount
6,30,000/-
Category) > Mankhurd Project - 6,30,000
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May : Example 3
On 03-05-2017, Kurla Project was completed and sold to Raheja Builders for Rs. 8,10,000.
3% Commission paid to our salesmen for sales Bill No. RD/03/17-18. Commission share by
Santosh and Sunil by 60 : 40.

Raheja Builders Sundry Debtors Yes No

2. Ref. No. : RD/03/17-18
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3. In Dr field Select Party Account Name as Raheja Builders and type the amount
8,10,000/-
Category) > Kurla Project - 8,10,000

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7.4 Cost Centre Reports
To access Cost Centre Reports

1. Go to Gateway of Tally > Display > Statement of Accounts > Cost Centres.

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7.4.1 Cost Category Summary
Cost Category Summary displays the information on all cost categories to which you have
allocated the voucher transactions.
1. Go to Gateway of Tally > Display > Statements of Accounts > Cost
Centres > Category Summary.
Figure 7.4.1 Cost Category
7.4.2 Cost Centre Break-up
Cost centre Break-up shows the ledger accounts that are used in vouchers, the cost centre they
were allocated to, their total transaction values and the balance. If you consider only the
revenue accounts, the Cost Centre break-up becomes the Profit or Loss statement of activities
for the cost centre, and hence a powerful performance statement.
To access the Cost Centre Break-up screen
1. Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Cost
Center Break-up
2. Select a cost centre, e.g. Kurla Project
3. Click F1: Detailed to see the ledgers.
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The Breakup of Cost Centre report will be displayed as shown.
Figure 7.4.2 Breakup Cost Centre
7.4.3 Ledger Break-up of a Cost Centre
This provides you with another view of a cost centre report. It enables you to analyse the
distribution of a ledger account across different cost centres.
If you want to know the Conveyance Expenses incurred by different cost centres, you need to
view the Ledger wise break up of cost centres.
1. Go to Gateway of Tally > Display > Statement of Accounts > Cost Centres > Ledger
Break-up
2. Select a ledger account, say for example, conveyance. The Ledger Break-up screen is
displayed as shown below:
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Figure 7.4.3 Cost Breakup ledger
7.4.4 Group Break-up of a Cost Centre
The Group break-up of cost centre gives you another view of a cost centre report by enabling
you to analyse the distribution of a group (of ledger accounts) across different cost centres.
This report helps to display the breakup of Indirect Expenses under each cost centre.
1. Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Group
Break -up
2. Select a group account, say for example, Indirect Expenses. The Group Break-up
screen is displayed as shown below:
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Figure 7.4.4 Cost Breakup ledger
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Lesson 8: Security Control in Tally.ERP 9
8.1. Tally Vault
The Tally Vault feature is an enhanced security system which allows for encryption of the
company data. TallyVault ensures that the original information is under no circumstances made
available to another user. It also uses the non-stored password mechanism. This is done by using
highly advanced mechanisms to validate a new user who does not have a prior knowledge of the
original password
8.1.1 Using TallyVault Feature

Create a company “Simran Enterprises” to understand the TallyVault Feature as shown
below
Figure 8.1.1.1 Company Creation
 In TallyVault Password(if any) type “simran”

 Repeat password as “simran”
 Press Enter to accept the screen
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 You will get following screen,
Figure 8.1.1.2 Tally Vault

 Retype the password “simran” and press Enter.
 Do not forget your TallyVault password because the data once lost cannot be retrieved.
8.1.2 Viewing of TallyVault used Company

 Press Alt + F1 to Shut the already opened Company
 Click on F1 to Select the Company, you will get encrypted company data of your
Simran Enterprises as below and it will open only with TallyVault Password i.e.
“simran”.
Figure 8.1.1.3 Select Company
8.1.3 How to remove the TallyVault password

 Open the Simran Enterprises company with TallyVault password “simran”
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 Press Alt + F3 on Gateway of Tally Screen

 Click on Change TallyVault
 Select Simran Enterprises in Name field
 Type Current password as “simran”
 New Password leave it blank
 You will get message
Figure 8.1.3.1 Warning

 Press Enter
 Repeat new password field leave it blank and press Enter
 You will get following screen
Figure 8.1.3.2 Change Screen

 Press Enter to Change the password
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 You will get message new company has been created
Figure 8.1.3.3 Change Tally Vault – New Company Creation
8.2 Security Control
Tally.ERP 9 allows you to create multiple levels of security as per requirements and
authorize users with individual passwords and rights to access specific functionality only.
The user with an Administrator level password is authorised for full access to all features
and set access controls for other users.
8.2.1 Activate Security Control

Note :
 Open the new “Simran Enterprises” company
Go to Gateway of Tally of Simran Enterprises > press Alt+F3 > Select Alter > press Enter
and select Simran Enterprises to view the Company Alteration screen as shown below
 Type Name of administrator as admin
 Password as 123456
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 Repeat password as 123456

 Enable Use Tally Audit Feature to Yes
Figure 8.2.1.1 Company Alteration

 Press Enter
 It will ask to reload the company, Press Enter
 It will ask to type administrator login id and password i.e. User Name : admin and
Password : 123456
Figure 8.2.1.2 Admin Login

 Press Enter
 Press Esc to Come to the Gateway of Tally Screen
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 The password is case sensitive. Any variation in the case will not allow you to login to Tally.ERP 9.
8.2.2. Create Security Levels

Go to Gateway of Tally > Press Alt+F3 and view the Company Info. Menu
Press Enter on Security Control and a sub-menu appears as shown
Figure 8.2.2.1 Security Control
 You can configure the password settings from the Password Policy Menu. The Password Policy menu
allows you to define and specify the password strength settings (i.e.,Minimum No. of Alphabets, Numerals
and special characters) along with Password Expiry and other option setups.
 To define security levels, press Enter on Types of Security. The screen is as shown:
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Figure 8.2.2.2 Security Level

 Press Ctrl + A twice to accept the screen
8.2.3. Defining Security Levels

Data Entry Director
 No Alteration of Master  No Creation / Alteration of
 No Alteration of Voucher Master
 No display of Balance sheet  No Creation / Alteration of
 No display of Profit and Loss Voucher
Go to Gateway of Tally > Press Alt+F3 and view the Company Info. Menu > Security Control >
Type of Security > Select Data Entry and Press Enter.
Please do the changes as follows
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Figure 8.2.3.1 Security Level Data Entry

 Press Ctrl + A twice to Accept the screen
Similarly select Director as Security level and do the changes as follows
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Figure 8.2.3.2 Security Level Director

 Press Ctrl + A twice to Accept the screen
8.2.4 Users and Passwords
A Security level called Data Entry uses the basic facilities of the Data Entry. To set
up a user name and password for this level, press Enter on Users and Passwords in
the Security Control Menu.
Create Users and Passwords

Data Entry Password Director Password
 suresh  sur123  ragvan  rag123
 ramesh  ram123
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Go to Gateway of Tally > F3: Company Info. > Security Control > Select Users and
Passwords
 Create the users as follows
Figure 8.2.4.1 List of user of company

 Press Enter to accept the screen.
 Only the Administrator can assign users and their passwords.
8.2.5 Loading a Company with a User name : suresh (data entry)

 Press Alt + F1 to Shut the Company
 Now Click on F1 to Select the company Simran Enterprises
 Type the name of user as suresh and password sur123
 Suresh cannot see the Profit and loss, Balance sheet statement and alter the ledger
as shown in following screen
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Figure 8.2.5.1 Gateway of Tally

Set Up :
 Create the following ledger
Ledger Name Under Opening Balance
Consultancy Fees Direct Income -
Conveyance Indirect Expense -
Staff and welfare Indirect Expense -
HDFC Bank Bank Account 100000 Dr
Pass the following entries by using suresh login

Entry 1 : April
01.04.2017, Cash with drawn from bank Rs. 40,000/-
Pass the entry in contra voucher as follows
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Figure 8.2.5.2 Contra Voucher
Entry 2 : April
03.04.2017, Conveyance paid Rs. 1500 by cash
Pass the entry in payment voucher as follows
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Pass the following entries by using ramesh login

Shut the company by Pressing Alt + F1 from Gate way of Tally Screen
And then log in as ramesh user and password ram123
Entry 3 : April
05.04.2017, Staff and Welfare expense paid Rs. 3000 by cash
Pass the entry in payment voucher as follows
Entry 4 : April
10.04.2017, Consultancy fees received of Rs. 10000 in cash
Pass the entry in receipt voucher as follows
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Note : You can check the log in of Director (user name : ragvan and password rag123) to see
his allow and disallow options.
8.2.6 Tally Audit

Tally.ERP 9 Audit allows the Administrator/ Auditor to track changes in the accounts made
subsequent to the earlier review. Changes in two areas are important i.e in the transactions or
vouchers and in the ledger masters. Only changes that affect the integrity of a transaction are
considered. Tally.ERP 9 Audit feature is enabled while creating a company.
Using Tally Audit Feature

 Shut the company by pressing Alt + F1 from Gateway of Tally
 Now select again the Simran Enterprises
 Use the Administrator login (User name : admin and password : 123456)
Now, to view the Tally.ERP 9 Audit Lists

Go to Gateway of the Tally > Display > Statements of Accounts > Select Tally Audit, the Tally
Audit menu is displayed as shown :
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Figure 8.2.6.1 Tally Audit

 You can generate audit statistics for Voucher Types, Masters and Users. To view the
Voucher Audit list, select Voucher Types from the Tally Audit
The Audit Statistics based on Voucher Types is displayed as shown, where the Entered and
Altered voucher's count are displayed in columnar format.
Figure 8.2.6.2 Voucher type wise

 Press F5: Show All Voucher for displaying the first thousand vouchers of the company
for auditing irrespective of Voucher Types and User Wise
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 Click on F12: Configure and enter Yes to Show Entered/Altered By The Tally Audit
listing now includes the user's name as shown :
Figure 8.2.6.3 Tally Audit Listing with user details

 Place the cursor on the relevant voucher, click on F7: Accept One button to accept the
voucher as valid and remove it from the list
 Click on F7: Accept All button, If you are satisfied that all the vouchers are valid
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Lesson 9: Recording Transaction as Sample Data
Lesson Objectives
On completion of this Exercise,

 You will know how to create different Account Masters
 Creation of different Inventory Masters with HSN Code in Tally.
 How to Activate GST and Set up the GST rates
 SGST and CGST Purchase and Sales Entries
 IGST Purchase and Sales Entries
 GST Goods Return Entries
 GST entries with 2 different rates
 GST Payment
 Purchase Order, Receipt Note and Rejection inward entries
 Sales Order, Delivery Note and Rejection Outward entries
 What are the monthly transactions’ of Company who has inventory
 Use of advanced features like BOM, Price List, Forex Gain etc
 Stock Transfer Entries
 Stock Valuation
 Stock Adjustment entries
 Finalization entries at the end of the year
 MIS Reports
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9.1 Recording Transactions for King Technologies Pvt Ltd
The following example shows you how to record transactions in Tally for Accounts with
inventory company.
King Technologies Pvt Ltd company formed by family members and their friends who have
sound knowledge about computer and it industry. Each of them contributed to the share capital
and formed above company. The company, got incorporation certificate on 01/07/2017, and
having main office at 71-B, Shrama Safallya Bldg., N.G. Acharya Marg, Chembur East,
Mumbai – 400071 (Maharashtra) to manufacture / assemble computers. All the promoters
were on the board of the company.
It was decided that they would maintain their accounts on Tally.ERP 9. The transactions
recorded for King Technologies Pvt Ltd are elaborated in the following illustration.
 Business transactions often involve a number of legal, tax and regulatory aspects. For
example, under the Income Tax Act, payments and receipts above specified limits have
to be made by cheque.
 Therefore, In this example we have kept in mind and recorded payment and receipt
entries as per Income Tax limits.
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9.2 Company Creation
Go to Gateway of Tally > Company Info. > Create Company

Create a Company as shown below
Figure 9.0 Company Creation
Enabling GST
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
1. Set Enable Goods and Service Tax (GST) to Yes.
2. Enable Set/Alter GST Details to Yes to display the GST Details screen.
3. The State selected in the Company Creation screen is displayed automatically. Select
the state as Maharashtra from the List of States if the state is not selected in the
Company Creation screen.
4. Select the Types of Dealer as Regular.
5. Type GSTIN/UIN as 27AACFN4968Q1ZF (27 is a State code of Maharashtra)
6. Applicable from : 01/07/2017
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Figure 9.1 GST Details
 You can activate a GST classification in order to record the tax rate and other details for
a category of goods attracting a specific GST rate. When this classification is used in
relevant masters and transactions, the details of the goods or services will be
automatically captured.
 You can activate common GST rate for all the stock items from above screen
7. Press Enter key to accept the Company GST Details screen.

8. In the Company Operations Alteration screen, enter the PAN Number of Company as
AACFN4968Q.
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Figure 9.2. GST Details

11. Press Y or Enter to accept and save.
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JULY 2017
July : Example : 1
On 1-7-2017, The directors of the company brought in Rs.30,00,000 (3,00,000 equity shares
at Rs.10 each) in the form of equity share capital. The company has a bank account with
ICICI Bank.
As per accounting conventions
The journal entry for the above transaction is as follows.
ICICI Bank A/c Dr.- Rs.30,00,000.
To Equity Share Capital Cr.- Rs.30,00,000.
As per Tally conventions

i. Create Ledger – Equity Share Capital (under Capital Account)
ii. Create ledger for ICICI Bank (under Bank Accounts).
iii. Make an entry of the transaction in a Receipt Voucher.
Go to Gateway of Tally > Accounting Vouchers > F6: Receipt

1. Press F2 to Change Voucher Date. Type 1.7.2017. (This is done only if the voucher date
is different from the transaction date.)
2. Credit Particulars: Equity Share Capital - Rs. 30,00,000/-
3. Debit Particulars: ICICI Bank amount of Rs. 30,00,000/- displays automatically.
4. Narration: Skip
5. Press Y or Enter to accept the voucher.
July : Example : 2
On 3-7-2017, Preliminary expenses of Rs. 1,00,000, incurred by the promoters, were
reimbursed to them by issuing a cheque.
 As per Company policy, preliminary expenses are charged to Profit & Loss Account
over a period of 5 years, i.e. 20% for each year.
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i. Create a ledger - Preliminary Expenses (under Misc. Expenses (Asset)).

ii. Make an entry of the transaction in a Payment Voucher.
Debit Particulars: Preliminary Expenses - Rs. 1,00,000
Credit Particulars: ICICI Bank - Rs. 1,00,000
July : Example : 3
On 5-7-2017, The company rented a godown and paid a security deposit of Rs.2,00,000 by
cheque
Security Deposit (Godown) Dr. - Rs.2,00,000.
To ICICI Bank Cr. - Rs.2,00,000.

i. Create ledgers – Security Deposit (Godown) (under Deposit (Assets))
Dr. Security Deposit (Godown) - Rs.2,00,000.
Cr. ICICI Bank Cr. - Rs.2,00,000.
July : Example : 4
On 7-7-2017, The company applied for two telephone connections. A security deposit of
Rs.10,000 was paid for the same by cheque.

Security Deposit (Telephone) Dr. - Rs.10,000.
To ICICI Bank Cr. - Rs.10,000.

i. Create ledgers – Security Deposit (Telephone) (under Deposit (Assets))
Dr. Security Deposit (Telephone) - Rs.10,000.
Cr. ICICI Bank Cr. - Rs.10,000.
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July : Example : 5
On 10-7-2017, The Company purchased the following assets by cheque.
Asset Cost Rate of Depreciation
Computers (2 nos for Office use) 60,000 60%
Furniture and Fixture 1,00,000 15%
Electrical Fittings 30,000 10%
Motor Vehicle (2 wheeler) 80,000 15%

Computers Dr. - Rs. 60,000
Furniture and Fixture Dr. - Rs. 1,00,000
Electrical Fittings Dr. - Rs. 30,000
Motor Vehicle (2 wheeler)- Rs. 80,000
To ICICI Bank Cr. -Rs. 2,70,000

i. Create ledgers - Computers, Furniture and Fixture, Electrical Fittings and Motor Vehicle
(under Fixed Assets)
Dr. Computers - Rs. 60,000
Dr. Furniture and Fixture - Rs. 1,00,000
Dr. Electrical Fittings - Rs. 30,000
Dr. Motor Vehicle - Rs. 80,000
To ICICI Bank Cr. - Rs. 2,70,000
July : Example : 6
On 12-7-2017, The company withdrew Rs.50,000 from the bank for office use, of which
Rs.30,000 was given advanced to the petty cashier.
i. Create Petty Cash ledger (under Cash-in-hand).
ii. Make an entry of the transaction in a Contra Voucher.
Credit Particulars: ICICI Bank - Rs. 50,000
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Debit Particulars: Cash - Rs. 20,000

Debit Particulars: Petty Cash - Rs. 30,000
July : Example : 7
On 15-7-2017, The company purchased raw materials on 90 days credit from Mahalaxmi
Computers Mumbai and stored them in Chembur Godown.
Item Quantity Rate Value GST 18% Value
Processor (i3) 80 6000 4,80,000 86,400 5,66,400
Processor (i5) 80 7000 5,60,000 1,00,800 6,60,800
Monitor 100 8000 8,00,000 1,44,000 9,44,000
Mother board 80 5000 4,00,000 72,000 4,72,000
Hard Disk 80 4000 3,20,000 57,600 3,77,600
Keyboard 100 200 20,000 3,600 23,600
Mouse 100 150 15,000 2,700 17,700
Total 30,62,100

Purchase @ 18% Dr - Rs.25,95,000.
SGST Dr - Rs. 2,33,550
CGST Dr - Rs. 2,33,550
To Mahalaxmi Computers Cr. - Rs.30,62,100.
 Both the parties are of same state i.e. Maharashtra (Intra state transaction) so State GST
(SGST) and Central GST (CGST) will be equally application on goods. If party is out of
Maharashtra then only Integrated GST (IGST) will be charged.
 On Computer Parts 18% GST will be applicable
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i. Create Ledgers - Mahalaxmi Computers, Purchases @ 18% and State Tax @ 9%
and Central Tax @ 9% as explained below.
1. Mahalaxmi Computers
 Under : Sundry Creditors
 Maintain Balances bill-by-bill: Yes
 Address : Andheri, Mumbai, Maharashtra 400069.
 Set/Alter GST Details : Yes
o Registration Type : Regular
o Is a e-commerce operator : No
o Party Type : Not Applicable
o GSTIN/UIN : 27AAAHT1092H1Z5
 Accept the rest of the field as default values
2. Purchases @ 18 %
 Under: Purchase Accounts
 Inventory values are affected: Yes
 Is GST Applicable: Applicable
o Nature of Transaction : Not Applicable
o Taxability : Taxable
o Integrated Tax : 18%
o Cess : 0%
 Type of Supply : Goods
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Figure 9.3 Purchase @ 18%
3. SGST
 Under : Duties & Taxes
 Type of Duty/Tax: GST
 Tax Type : State Tax
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Figure 9.4 SGST
 We can create common SGST ledger SGST for all Tax Rate e.g. 5%, 12%, 18% and
28%
 We can use rounding method “Normal Rounding” and rounding limit 1, GST will not
come in decimal, it will round off nearer to 1
4. CGST
 Tax Type : Central Tax
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Figure 9.5 CGST
In F11: Features - inventory Features (F2), set Maintain Multiple Godowns to Yes.
In F12: Configuration, set Allow ADVANCED entries in Masters to Yes under Inventory
Masters.
ii. Create a Godown - Chembur Godown.

Go to Gateway of Tally > Inventory Info > Godowns > Single Godown > Create
 Name : Chembur Godown
 Under : Primary
 Allow Storage of Materials: Yes
iii. Create Stock Group : Raw Materials

Go to Gateway of Tally > Inventory Info > Stock Groups > Single Stock Group > Create
 Name: Raw Materials
 Under: Primary
 Can Quantities be Added : Yes
 Set/alter GST Details : No
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 We can define common GST rates for all stock items of particular stock group by
defining GST rates at Stock group Level
In F11: Features - Inventory Features (F2), set Maintain Stock Categories to Yes.
iv. Create Stock Category : Processor, i3 Processor and i5 Processor I
Go to Gateway of Tally > Inventory Info > Stock Categories > Single Stock Category >
Create
 Name: Processor
 Under: Primary
 Press Enter to accept the screen
 Similarly, create the Stock Categories i3 Processor and i5 Processor, under

Processor.
v. Create Units of Measure : Nos.

Go to Gateway of Tally > Inventory Info > Units of Measure > Create
 Type : Simple
 iSymbol : Nos
 Formal Name: Numbers
 Unit Quantity Code : NOS-Numbers
 Number of Decimal Places: 0
vi. Create Stock Items : Processor (i3), Processor (i5), Monitor, Mother board, Hard
Disk, Keyboard and Mouse .
Go to Gateway of Tally > Inventory Info > Stock ltems > Single Stock Item > Create
1. Processor (i3)
 Under : Raw Materials
 Category : i3 processor
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 Units: Nos
 GST Applicable: Yes
Press F12:Configuration : Allow HSN/SAC details to Yes
o HSN/SAC : 84733099
o Calculation Type : On Value
o Cess : 0%
Figure 9.6 GST Details

o Press Enter to accept
Figure 9.7 Processor I3
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 Similarly, create the other Stock items as below.
2. Processor (i5)
 Under : Raw Materials
 Category: i5 processor
 Units: Nos
 HSN/SAC : 84733099
 Integrated Tax : 18%
3. Monitor
 Under: Raw Materials
 Category: Not Applicable
 Units: Nos
 HSN/SAC : 85285100
4. Motherboard
 Units: Nos
 HSN/SAC : 84733020
5. Hard Disk
 Units: Nos
 HSN/SAC : 84717020
6. Keyboard
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 Units: Nos
 HSN/SAC : 84719000
7. Mouse
 Units: Nos
 HSN/SAC : 84719000
 Retain the default settings for all the remaining fields.

 In Purchase Voucher, Press F12 : Use Common Ledger Account for Item
Allocation to No and Use Defaults for Bill Allocations to No
vii. Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .
2. Supplier Invoice No. : Mah/02-1718
3. Party Account Name: Mahalaxmi Computers
4. Name of Item: Select Processor (i3) from the list of Items.
5. The Item Allocations screen for Processor (i3) displays. Ensure that the Item Alloca-
tions for: Processor (i3) is as shown.
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Figure 9.8 Item Allocation Processor (i3)

6. Press Enter to accept the Item Allocations for: Processor (i3) screen.
7. Press Enter to view the Accounting Details for: Processor (i3) screen.
8. Ensure that the Accounting Details for: Processor (i3) screen is as shown.
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Figure 9.9 Accounting Details Processor (i3)

9. Similarly, enter the remaining stock items as per the transaction details.
10. Press Enter twice and select GST Ledger SGST from the list of ledger accounts
displayed. The amount is automatically calculated.
11. Similarly, select CGST from the list of ledger accounts displayed
12. Press Enter thrice to view Bill-Wise Details for: Mahalaxmi Computers.
13. Ensure that Bill-Wise Details for: Mahalaxmi Computers is as shown.
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Figure 9.10 Bill-wise Details for Mahalaxmi Computers

Figure 9.11 Purchase Voucher
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14. Press Y or Enter to Accept the voucher
 You can press Alt + A (Tax Analysis) in Voucher creation screen to see the details of
tax on each stock items.
July : Example : 8
On 22-7-2017, The company purchased raw material on 25 days credit from Shree
Computers (Mumbai) and stored them in Chembur Godown.
Processor (i3) 20 6000 1,20,000 21,600 1,41,600
Processor (i5) 20 7000 1,40,000 25,200 1,65,200
Mother board 20 5000 1,00,000 18,000 1,18,000
Hard Disk 20 4000 80,000 14,400 94,400
Total 5,19,200

Purchase @ 18% Dr - Rs.4,40,000.
SGST Dr - Rs. 39,600
CGST Dr - Rs. 39,600
To Shree Computers Cr. - Rs.5,19,200.
i. Create Ledgers - Shree Computers Under Sundry Creditors (GSTIN :
27AABFH3364F1ZL) Kurla, Mumbai 400070.
ii. Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .
Make an entry of the transaction in a Purchase Voucher.

1. Party Account Name: Shree Computers
2. Name of Item: Select Processor (i3) from the List of Items.
3. The Item Allocations for: Processor (i3)screen displays.
4. Ensure that Item Allocations for: Processor (i3) are as shown.
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Godown Quantity Rate Amount

Chembur Godown 20 6000 1,20,000
7. Ensure that Accounting Details for: Processor (i3) are as shown.
Particulars Amount
Purchases @ 18% 1,20,000
8. Similarly, enter the remaining stock items as per the transaction details.
11. Press Enter thrice to view the Bill-wise Details for: Shree Computers screen
12. Ensure that Bill-wise Details for: Shree Computers are as shown
Type of Ref Name Due Date or Amount Dr/Cr
New Ref Shree/04-1718 Credit
25 DaysDays 5,19,200 Cr
12. The resultant screen displays as shown.
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July : Example : 9
On 28-7-2017, The following items were transferred from Chembur Godown to Govandi
Godown.
Item Quantity
Processor (i3) 50
Processor (i5) 50
Monitor 50
Mother board 50
Hard Disk 50
Keyboard 50
Mouse 50
 Use Stock Journal Alt + F7

 When there is an internal transfer from Chembur Godown to Govandi Godown, the
value of the stock items should be uniform in both the godowns.
i. Create a Godown : Govandi Godown

 Name: Govandi Godown
 Under: Primary
ii. Make an entry in a Stock Journal.

Go to Gateway of Tally > Inventory Vouchers > Alt +-F7
1. Enter the items according to the entries in the Source (Consumption) column.
Select
 Name of Item: Processor (i3)
 Godown: Chembur Godown
 Quantity. 50
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 Rate: 6000 / nos

 Amount: 3,00,000 (Automatically calculated and displayed).
2. Similarly, enter the rest of the items in the same manner in the Source (Consumption)
column.
In the Destination (Production) column
 Item from the List of Items: Processor (i3)
 Godown: Govandi Godown
 Quantity. 50
 Rate: 6000/ Nos
 Amount: 3,00,000 (Automatically calculated and displayed).
Enter the rest of the items in the same manner in the Destination (Production) column.
Figure 9.13 Stock Journal
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Trial Balance for July 2017

Go to Gateway of Tally > Display > Trial Balance
Trial Balance King Technologies Pvt Ltd Ctrl + M 

King Technologies Pvt Ltd
Particulars 1-Jul-2017 to 31-Jul-2017
Closing Balance
Debit Credit
Capital Account 30,00,000.00
Equity Share Capital 30,00,000.00
Current Liabilities 5,46,300.00 35,81,300.00
Duties & Taxes 5,46,300.00
Sundry Creditors 35,81,300.00
Fixed Assets 2,70,000.00
Computers 60,000.00
Electrical Fittings 30,000.00
Furniture and Fixture 1,00,000.00
Motor Vehicle 80,000.00
Current Assets 26,30,000.00
Opening Stock
Deposits (Asset) 2,10,000.00
Cash-in-hand 50,000.00
Bank Accounts 23,70,000.00
Misc. Expenses (ASSET) 1,00,000.00
Preliminary Expenses 1,00,000.00
Purchase Accounts 30,35,000.00
Purchases @ 18 % 30,35,000.00
Grand Total 65,81,300.00 65,81,300.00
Figure 9.14 Detailed Trial Balance - July 1, 2017 to July 31, 2017
1. You can drill-down from a group for further details of that particular group also.
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AUGUST 2017
August : Example : 1
On 2-8-2017, The petty cashier submitted the statement of expenses for July 2017
By Cheque :
Salaries to staff for July 2017 - Rs.12,000 (for 15 days)
Rent Expenses - Rs. 15,000
By Petty Cash :
Conveyance : Rs. 1,200
Printing and Stationery - Rs.3,700
Staff and Welfare : Rs.2,300
Miscellaneous Exp : Rs. 500
i. Create ledger Salary to Staff , Rent Expenses, Printing & Stationery, Conveyance,
Staff & Welfare and Miscellaneous Exp (under indirect Expenses and GST : Not
applicable).
ii. Make two separate entries of above transaction in a

Payment Voucher.
Entry : I
Debit: Salary to Staff - Rs. 12,000
Debit: Rent Expenses - Rs.15,000.
Credit: ICICI Bank - Rs.27,000.
Entry : II
Debit : Conveyance - Rs. 1,200
Debit : Printing & Stationery - Rs.3,700
Debit : Staff and Welfare - Rs.2,300
Debit : Miscellaneous Exp - Rs. 500
Credit: Petty Cash - Rs.7,700.
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On 5-8-2017,Company issued a bearer cheque for Rs.30,000 to Petty Cashier for daily
expenses.
i. Make an entry of the transaction in a Contra Voucher.

Credit: ICICI Bank - Rs. 30,000.
Debit: Petty Cash - Rs.30,000.
On 7-8-2017, The company purchased Fax Machines from Prime Traders(Pune) on 30 days
credit and stored them in Mankhurd Godown.
Fax Machines 10 12,000 1,20,000 33,600 1,53,600

Purchase @ 28% Dr - Rs.1,20,000.
SGST Dr - Rs. 16,800
CGST Dr - Rs. 16,800
To Prime Traders Cr. - Rs.1,53,600.

i. Create Ledgers – Prime Traders, Purchases @ 28% as explained below.
1. Prime Traders
 Address : Kudal, Pune, Maharashtra 415514.
o GSTIN/UIN : 27AACPD2496B1Z4
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2. Purchases @ 28 %
 Is GST Applicable: Yes
o Cess : 0%
ii. Create a Stock Group - Finished Goods.

Go to Gateway of Tally > Inventory Info > Stock Groups > Single Stock Group > Create
 Name: Finished Goods
 Under: Primary
 Should quantities of items be added : Yes
iii. Create Stock Items : Fax Machines.

Go to Gateway of Tally > Inventory Info > Stock ltems > Single Stock Item > Create
 Name : Fax Machines
 Under : Finished Goods
 Category : Not Applicable
 Units: Nos
 GST Applicable: Applicable
o Description : Fax Machine
o HSN/SAC : 85171190
o Cess : 0%
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iv. Create a Godown - Mankhurd Godown.

 Name : Mankhurd Godown
 Under : Primary
v. Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode).

1. Party Account Name: Prime Traders
2. Name of Item: Select Fax Machines from the List of Items.
3. The Item Allocations for: Fax Machines screen displays.
4. Ensure that Item Allocations for: Fax Machines are as shown.
Mankhurd Godown 10 12000 1,20,000
5. Press Enter to accept the Item Allocations for: Fax Machines screen.
6. Press Enter to view the Accounting Details for: Fax Machines screen.
7. Ensure that Accounting Details for: Fax Machines are as shown.
Particulars Amount
Purchases @ 28% 1,20,000
10. Press Enter thrice to view the Bill-wise Details for: Prime Traders screen
11. Ensure that Bill-wise Details for: Prime Traders are as shown
Type of Name Due Date or Amount Dr/Cr
Ref
New Ref PT/08-1718 Credit
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The resultant screen displays as shown.
On 10-8-2017, Company assembled 30 computers with i3 configuration using the peripherals
listed in the below table and stored the same in the Mankhurd Godown. Wages of Rs.30,000
and Overheads (including power) of Rs.6,000 (Overheads are arrived at Rs.200 per
computer) were incurred.
The wages were paid by cheque.
Name of the peripheral Quantity
Processor (i3) 1 Nos
Monitor 1 Nos
Mother board 1 Nos
Hard Disk 1 Nos
Keyboard 1 Nos
Mouse 1 Nos
i. Create Ledgers - Wages and Overheads both under Direct Expenses.

Note: In F12: Configuration, set Enable component list details (Bill of Materials) to Yes. (in
stock item creation screen)
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In F11: Features - Inventory Features (F2), set Maintain Batch-wise Details to Yes.
ii. Create Stock Item : Computer (i3)

 Under: Finished goods
 Category. Not Applicable
 Units: Nos
 Maintain in Batches: Yes
 Track Date Of Mfg: No
 Set Components (BOM): Yes
 Name of BOM : i3
 Give the component list of Computer i3 to assemble a single computer system.
Ensure that the Components of Computer (i3) details are as shown.
Figure 9.16 Component Allocation

 Retain the rest of the fields as default,
o Description : Computer (i3)
o HSN/SAC : 84713010
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o Cess : 0%
iii. Create a Manufacturing Journal.

Go to Gateway of Tally > Accounts Info > Voucher Type > Create > Manufacturing
Journal
 Name: Manufacturing Journal
 Type of Voucher: Stock Journal
 Method of Voucher Numbering: Automatic
 Set Use as Manufacturing Journal to Yes and make the rest of entries as shown.
Figure 9.17 Manufacturing Journal Voucher Creation
iv. Make entry in a Manufacturing Journal.

Go to Gateway of Tally > Inventory Vouchers > Alt + F7 : Manufacturing Journal
 Name of the Product - Computer (i3)
 Godown : Mankhurd Godown
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 Quantity – 30
 Batch Name - Select New Number -Type Batch - 01
 The peripherals are automatically displayed in the component list.
 Type of Additional Cost
 Wages: 30,000 (in the Amount column).
 Overheads: 6,000 (in the Amount column).
Figure 9.18 Manufacturing Journal

 Press Y or Enter to accept the voucher.
vii Make an entry n a Payment Voucher.

Debit Particulars : Wages - Rs.30,000
Credit Particulars: ICICI Bank - Rs.30,000
On 15-8-2017, Company received and paid Telephone bill and Electricity bill amounting to
Rs.4,250 and Rs. 9,870 respectively by cheque for July 2017.
i. Create ledger Telephone Exp. and Electricity Charges (under Indirect Expenses, Is
GST Applicable : Not Applicable).
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Debit: Telephone Exp - Rs. 4,250.
Debit: Electricity Charges - Rs.9,870.
On 21-8-2017, The Company sold Computer (i3) and Fax Machines to Raj laxmi Computers
(Pune) on credit of 15 days from Mankhurd Godown.
Item Quantity Rate Value GST

Computer (i3) 10 28,000 2,80,000 18%
Fax Machines 2 15,000 30,000 28%
i. Create Ledgers – Raj Laxmi Computers, Sales @ 18% and Sales @ 28 as explained
below.
1. Raj Laxmi Computers
 Address : Chakan, Pune, Maharashtra 410501.
o GSTIN/UIN : 27AADPH0537Q1ZI
2. Sales @ 18%
 Under: Sales Accounts
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o Cess : 0%
3. Sales @ 28%
o Cess : 0%
ii. Make an entry of the transaction in a Sales Voucher (Item Invoice).

1. Party Account Name: Raj Laxmi Computers
2. Name of Item: Select Computer (i3) from the List of Items.
3. The Item Allocations for: Computer (i3) screen displays.
4. Ensure that Item Allocations for: Computer (i3) are as shown.
Godown Batch / Quantity Rate Amount
Lot No.
Mankhurd Godown Batch 01 10 28000 2,80,000
5. Press Enter to accept the Item Allocations for: Computer (i3) screen.
6. Press Enter to view the Accounting Details for: Computer (i3) screen.
7. Ensure that Accounting Details for: Computer (i3) are as shown.
Particulars Amount
Sales @ 18% 2,80,000
8. Similarly, enter the details of stock items Fax Machines as per the transaction details.
And Select Sales @ 28% ledger for Fax Machine
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11. Press Enter thrice to view the Bill-wise Details for: Raj Laxmi Computers screen
12. Ensure that Bill-wise Details for: Raj Laxmi Computers are as shown
Ref
New Ref KT/01-1718 Credit
Figure 9.19 Sales Voucher
On 25-8-2017, The Company paid to Mahalaxmi Computers Rs. 15,31,050 half payment by
cheque.

Debit : Mahalaxmi Computers – Rs. 15,31,050 (In Bill-wise Details screen Select Agst
Ref “Mah/02-1718”)
Credit : ICICI Bank - Rs. 15,31,050
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On 26-8-2017, The Company sold Computer (i3) and Fax Machines to Shree Technology on
credit of 15 days from Mankhurd Godown.
Computer (i3) 15 28,500 4,27,500 18%
Fax Machines 5 15,500 77,500 28%
i. Create Ledgers – Shree Technology

 Address : Amboli, Nashik, Maharashtra 422212.
o GSTIN/UIN : 27AADPP2654A1Z1
ii. Make an entry of the transaction in a Sales Voucher.
1. Party Account Name: Shree Technology Computers
Mankhurd Godown Lot No.
Batch 01 15 28500 4,27,500
Particulars Amount
Sales @ 18% 4,27,500
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11. Press Enter thrice to view the Bill-wise Details for: Shree Technology screen
12. Ensure that Bill-wise Details for: Shree Technology are as shown
Type of Name Due Date or Credit Amount Dr/Cr
Ref
New Ref KT/02-1718 Days 15 Days 6,03,650 Dr
13. Press Enter to Save the Voucher
Figure 9.20 Sales Voucher
On 28-8-2017, Company assembled 15 computers with i5 configuration using the peripherals
listed in the below table from Govandi Godown and stored the same in the Mankhurd
Godown. Wages of Rs.15,000 and Overheads (including power) of Rs.3,000 (Overheads are
arrived at Rs.200 per computer) were incurred.
The wages were paid by cheque.
Name of the peripheral Godown Quantity
Processor (i5) Govandi Godown 1 Nos
Monitor Govandi Godown 1 Nos
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Mother board Govandi Godown 1 Nos

Hard Disk Govandi Godown 1 Nos
Keyboard Govandi Godown 1 Nos
Mouse Govandi Godown 1 Nos
i. Create Stock Item : Computer (i5)

 Under: Finished goods
 Category. Not Applicable
 Units: Nos
 Maintain in Batches: No
 Track Date Of Mfg: No
 Set Components (BOM): Yes
 Name of BOM : i5
 Enter the Component list as per the transaction
o Description : Computer (i5)
o HSN/SAC : 84713010
o Cess : 0%
ii. Make entry in a Manufacturing Journal.

 Do the entry as below
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Figure 9.21 Manufacturing Journal

 Press Y or Enter to accept the voucher.
iii Make an entry in a Payment Voucher.

Debit Particulars : Wages – Rs. 15,000
Credit Particulars: ICICI Bank Rs. 15,000
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Trial Balance until August 2017

Particulars 1-Jul-2017 to 31-Aug-2017
Closing Balance
Debit Credit
Computers 60,000.00
Opening Stock
Sundry Debtors 9,72,450.00
Sales Accounts 8,15,000.00
Sales @ 18% 7,07,500.00
Sales @ 28% 1,07,500.00
Purchases @ 18% 30,35,000.00
Purchases @ 28 % 1,20,000.00
Direct Expenses 45,000.00
Wages 45,000.00
Indirect Expenses 48,820.00
Conveyance 1,200.00
Electricity Charges 9,870.00
Miscellaneous Exp 500.00
Printing & Stationery 3,700.00
Rent Expenses 15,000.00
Salaries to Staff 12,000.00
Staff and Welfare 2,300.00
Telephone Exp 4,250.00
Grand Total 60,18,850.00 60,18,850.00
Figure 6.22 Detailed Trial Balance - July 1, 2017 to August 31, 2017
Press Alt + F2 to Change the Period from July 1, 2017 to August 31, 2017
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SEPTEMBER 2017
September : Example : 1
On 2-9-2017, The petty cashier submitted the statement of expenses for August 2017
By Cheque :
Salaries to staff for August 2017 - Rs.24,000
By Petty Cash :
Conveyance Expenses : Rs. 1,500
Printing and Stationery Expenses - Rs.4,000
i. Make two separate entries of above transaction in a Payment Voucher.
Entry : I
Debit: Salary to Staff - Rs. 24,000.
Debit: Rent Expenses - Rs.15,000.
Entry : II
Debit : Printing & Stationery - Rs. 4,000
On 04-9-2017, The Company received cheque from Raj Laxmi Computers for Rs. 3,68,800/-

Credit : Raj Laxmi Computers - Rs. 3,68,800 (In Bill-wise Details screen Select Agst Ref
“KT/01-1718”)
Debit : ICICI Bank - Rs. 3,68,800
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September: Example : 3
Rs.3,800 and Rs. 11,250 respectively by cheque for August 2017.
i. Make an entry of the transaction in a Payment Voucher.

Debit: Telephone Exp - Rs. 3800.
Debit: Electricity Charges - Rs.11250.
On 11-9-2017, The Company received cheque from Shree Technology of Rs. 6,03,650/-

Credit : Shree Technology - Rs. 6,03,650 (In Bill-wise Details screen Select Agst Ref
“KT/02-1718”)
September: Example : 5
On 13-9-2017, The Company sold Computer (i5) and Fax Machines to Silver Trek
Computers (Nagpur) on credit of 15 days from Mankhurd Godown.
Computer (i5) 10 29,500 2,95,000 18%
Fax Machines 3 15,500 46,500 28%
i. Create Ledgers – Silver Trek Computers

 Address : Laxmi Nagar, Nagpur, Maharashtra 440022.
o GSTIN/UIN : 27AAFPS4508Q1Z2
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1. Party Account Name: Silver Trek Computers
Particulars Amount
Sales @ 18% 2,95,000
And Select Sales @ 28% ledger for Fax Machine.
11. Press Enter thrice to view the Bill-wise Details for: Silver Trek Computers screen
12. Ensure that Bill-wise Details for: Silver Trek Computers are as shown
Ref Days
New Ref KT/03-1718 15 Days 4,07,620 Dr
13. Press Enter to Accept the Sales Voucher
On 15-9-2017, The Company paid Rs. 1,53,600 by cheque to Prime Traders.
Debit : Prime Traders – Rs. 1,53,600 (In Bill-wise Details screen Select Agst Ref
“PT/08-1718”)
Credit : ICICI Bank – Rs. Rs. 1,53,600
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On 18-9-2017, The Company received cheque of Rs. 4,07,620 from Silver Trek Computers.

Credit : Silver Trek Computers - Rs. 4,07,620 (In Bill-wise Details screen Select Agst
Ref “KT/03-1718”)
On 20-9-2017, The Company sold Computer (i3) to Raj Electronics on credit of 30 days from
Mankhurd Godown.
Computer (i3) 5 29,000 1,45,000 18%
i. Create Ledgers – Raj Electronics

 Address : Fort, Mumbai, Maharashtra 400001.
o GSTIN/UIN : 27AAUFM4159J1ZL

1. Party Account Name: Raj Electronics
Batch 01 5 29000 1,45,000
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Particulars Amount
Sales @ 18% 1,45,000
10. Press Enter thrice to view the Bill-wise Details for: Raj Electronics screen
11. Ensure that Bill-wise Details for: Raj Electronics are as shown
Ref
New Ref KT/04-1718 Days
30 Days 1,71,100 Dr
On 22-9-2017, The Company paid remaining amount Rs. 15,31,050 by cheque to Mahalaxmi
Computers.

Debit : Mahalaxmi Computers – Rs.15,31,050 (In Bill-wise Details screen Select Agst
Ref “Mah/02-1718”)
Godown.
Item Quantity
Processor (i3) 50
Processor (i5) 50
Monitor 50
Mother board 50
Hard Disk 50
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Keyboard 50
Mouse 50
i. Create a Stock Journal Voucher Class
Go to Gateway of Tally > Inventory Info > Voucher Type > Alter > Stock Journal
 Name of Class : Transfer
Figure 9.23 Stock Journal Transfer Class
 Set Use Class for Inter- Godown Transfers to Yes

 Press Y or Enter to accept the voucher
 Retain the default setting for all the remaining fields
ii. Make an entry in a Stock Journal.

Go to Gateway of Tally > Inventory Vouchers > Alt + F7
 Select Voucher Class - Transfer
 Destination Godown: Govandi Godown
 Enter details as per the transaction. (The rate and amount are automatically
calculated and displayed).
 Ensure that stock journal screen displays as shown
Volume - II 136
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Figure 9.24 Voucher entry with Transfer Class

On 27-9-2017, Company assembled 30 computers with i3 configuration and 25 computers
with i5 and stored the same in the Mankhurd Godown.
Wages
Computer i3 : Rs.30,000
Overheads
The wages will be paid by cheque at the end of the month.

i. Make entry in a Manufacturing Journal.
 Godown - Mankhurd Godown
 Quantity – 30
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 Batch Name - Select New Number -Type Batch 02

ii. Similarly, make an entry in Manufacturing Journal for Computer i5.
Make an entry of the transaction in a Payment Voucher for wages.

Debit : Wages – Rs. 55,000
Credit : ICICI Bank – Rs. 55,000
On 29-9-2017, The Company received Rs 1,71,100 cheque from Raj Electronics.

Credit : Raj Electronics - Rs.1,71,100 (In Bill-wise Details screen Select Agst Ref
“KT/04-1718”)
On 30-9-2017, The company purchased Fax Machines from Prime Traders on 90 days credit
and stored them in Mankhurd Godown.
Fax Machines 30 12,000 3,60,000 1.00,800 4,60,800
i. Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .
1. Party Account Name: Prime Traders
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Particulars Amount
Purchases @ 18% 3,60,000
10. Press Enter thrice to view the Bill-wise Details for: Prime Traders screen
11. Ensure that Bill-wise Details for: Prime Traders are as shown
New Ref PT/13-1718 Credit
12. Press Enter and Accept the Screen
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Trial Balance until September 2017

Particulars 1-Jul-2017 to 30-Sep-2017
Closing Balance
Debit Credit
Computers 60,000.00
Opening Stock
Sundry Debtors
Sales @ 18% 11,47,500.00
Sales @ 28% 1,54,000.00
Purchases @ 18% 30,35,000.00
Purchases @ 28 % 4,80,000.00
Direct Expenses 1,00,000.00
Wages 1,00,000.00
Indirect Expenses 1,10,870.00
Conveyance 2,700.00
Miscellaneous Exp 1,200.00
Grand Total 52,81,500.00 52,81,500.00
Figure 6.25 Detailed Trial Balance - July 1, 2017 to Sep 30, 2017
Press Alt + F2 to Change the Period from July 1, 2017 to September 30, 2017
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OCTOBER 2017
October : Example : 1
On 01-10-2017, Half yearly Interest received from ICICI Bank Rs. 11,200.
i. Create Ledger Bank Interest (under Indirect Income).

ii. Make an entry of the transaction in a Receipt Voucher.
Credit: Bank Interest – Rs. 11,200
Debit: ICICI Bank - Rs. 11,200.
On 2-10-2017, The petty cashier submitted the statement of expenses for September 2017
By Cheque :
Salaries to staff for August 2017 - Rs.24,000
By Petty Cash :
Conveyance Expenses - Rs. 1,800
Staff and Welfare - Rs.2,100
Miscellaneous Exp - Rs. 500
Entry : I
Debit: Rent Expenses - Rs. 15,000.
Entry : II
Debit : Printing & Stationery - Rs.4,500
Debit : Miscellaneous Exp : Rs. 500
Credit: Petty Cash - Rs. 8,900.
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On 05-10-2017, The company purchased raw material on 90 days credit from Shree
Computers and stored them in Chembur Godown.
Item Quantity Rate Value GST 18 % Value
Processor (i3) 30 6000 1,80,000 32,400 2,12,400
Processor (i5) 15 7000 1,05,000 18,900 1,23,900
Mother board 50 5000 2,50,000 45,000 2,95,000
Hard Disk 50 4000 2,00,000 36,000 2,36,000
Monitor 50 8000 4,00,000 72,000 4,72,000
Keyboard 50 200 10,000 1,800 11,800
Mouse 50 150 7,500 1,350 8,850
Total 13,59,950

1. Party Account Name: Shree Computers
2. Name of Item: Select items as per the transaction.
3. Select the Godown as Chembur Godown
4. In Accounting Details screen Select the Ledger Purchases @ 18%
displayed. The amount is automatically calculated
7. Press Enter thrice to view the Bill-wise Details for: Shree Computers screen
8. Ensure that Bill-wise Details for: Shree Computers are as shown
New Ref Shree/15-1718 Credit
Rs.4,200 and Rs. 9,100 respectively by cheque for September 2017.
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Debit: Telephone Exp - Rs. 4200.

Debit: Electricity Charges - Rs. 9100.
On 10-10-2017, The Company sold Computer (i3) and Fax Machines to Raj Laxmi
Computers on credit of 30 days from Mankhurd Godown.
Computer (i3) 15 30,500 4,57,500 18%
Fax Machines 10 16,500 1,65,000 28%
i. Make an entry of the transaction in a Sales Voucher.

Batch 02 15 30,500 4,57,500
Particulars Amount
Sales @ 18% 4,57,500
Ref Ref
New KT/05-1718 Credit
30 DaysDays 7,51,050 Dr
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On 12-10-2017, The Company sold Computer (i5) and Fax Machines to Silver Trek
Computers on credit of 30 days from Mankhurd Godown.
Computer (i5) 10 34,500 3,45,000 18%
Fax Machines 5 16,500 82,500 28%

1. Party Account Name: Silver Trek Computers
Mankhurd Godown 10 34,500 3,45,000
Particulars Amount
Sales @ 18% 3,45,000
11. Press Enter thrice to view the Bill-wise Details for: Silver Trek Computers screen
12. Ensure that Bill-wise Details for: Silver Trek Computers are as shown
Ref Credit Days
New Ref KT/06-1718 30 Days 5,12,700 Dr
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On 16-10-2017, The Company received cheque of Rs. 7,51,050 from Raj Laxmi Computers.
Credit : Raj Laxmi Computers - Rs. 7,51,050 (In Bill-wise Details screen Select Agst Ref
“KT/05-1718”)
October: Example : 8
On 18-10-2017, The Company paid Rs. 5,19,200 by cheque to Shree Computers.
Debit : Shree Computers – Rs.5,19,200 (In Bill-wise Details screen Select Agst Ref
“Shree/04-1718”)
Credit : ICICI Bank – Rs. 5,19,200
On 20-10-2017, The Company received cheque of Rs. 5,12,700 from Silver Trek Computers.
Credit : Silver Trek Computers - Rs. 5,12,700 (In Bill-wise Details screen Select Agst
Ref “KT/06-1718”)
On 23-10-2017, The Company paid Rs. 4,60,800 by cheque to Prime Traders.
Debit : Prime Traders – Rs. 4,60,800 (In Bill-wise Details screen Select Agst Ref
“PT/13-1718”)
Credit : ICICI Bank – Rs. 4,60,800
On 25-10-2017, The company withdrew Rs.30,000 from the bank for office use, Rs.40,000
was given advanced to the petty cashier.
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Credit Particulars: ICICI Bank- Rs. 30,000
Credit Particulars: Cash - Rs.10,000
Debit Particulars: Petty Cash - Rs. 40,000
On 27-10-2017, The company purchased raw material on 90 days credit from Mahalaxmi
Processor (i3) 20 6200 1,24,000 22,320 1,46,320
Processor (i5) 20 7100 1,42,000 25,560 1,67,560
Monitor 20 8200 1,64,000 29,520 1,93,520
Mother board 20 5300 1,06,000 19,080 1,25,080
Hard Disk 20 4500 90,000 16,200 1,06,200
Keyboard 20 250 5,000 900 5,900
Mouse 20 180 3,600 648 4,248
Total 7,48,828

4. Name of Item: Select the stock items as per transactions
5. Select the Accounting Details : Purchases @ 18%
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On 28-10-2017, The Company sold Computer (i3) and Fax Machines to Shree Technology
on credit of 30 days from Mankhurd Godown.
Computer (i3) 10 31,000 3,10,000 18%
Fax Machines 5 16,500 82,500 28%

Godown Batch / Lot Quantity Rate Amount
No.
Mankhurd Godown Batch 02 10 31,000 3,10,000
Particulars Amount
Sales @ 18% 3,10,000
Type of Ref Name Due Date or Credit Amount Dr/Cr
Days
New Ref KT/07-1718 30 Days 4,71,400 Dr
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On 30-10-2017, The statement received from ICICI Bank, shows that the bank has charged
Rs. 500 for cheque book charges.
i. Create Ledger Bank Charges (under Indirect Expenses).

Debit: Bank Charges - Rs.500.
Credit: ICICI Bank - Rs. 500.
On 31-10-2017, The Company sold Computer (i5) and Fax Machines to Ghata Electronics
on credit of 30 days from Mankhurd Godown.
Computer (i5) 10 35,000 3,50,000 18%
Fax Machines 5 16,500 82,500 28%
i. Create Ledger Ghata Electronics

 Address : Vashi, Navi Mumbai, Maharashtra 400703
o GSTIN/UIN : 27AAVPM7023N1ZY

1. Party Account Name: Ghata Electronics
Volume - II 148
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Particulars Amount
Sales @ 18% 3,50,000
Ref Days
New Ref KT/08-1718 30 Days 5,18,600 Dr
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Trial Balance until October 2017

Particulars 1-Jul-2017 to 31-Oct-2017
Closing Balance
Debit Credit
Computers 60,000.00
Opening Stock
Sales @ 18% 26,10,000.00
Sales @ 28% 5,66,500.00
Purchases @ 18% 48,22,100.00
Purchases @ 28 % 4,80,000.00
Wages 1,00,000.00
Indirect Incomes 11,200.00
Bank Interest 11,200.00
Bank Charges 500.00
Conveyance 4,500.00
Grand Total 82,96,478.00 82,96,478.00
Figure 6.26 Detailed Trial Balance - July 1, 2017 to October 31, 2017
Press Alt + F2 to Change the Period from July 1, 2017 to October 31, 2017
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NOVEMBER 2017
November : Example : 1
On 1-11-2017, The petty cashier submitted the statement of expenses for October 2017
By Cheque :
Salaries to staff for October 2017 - Rs. 24,000
Rent Expenses - Rs.15,000
By Petty Cash :
Printing and Stationery Expenses - Rs. 2,900
Staff and Welfare - Rs.1,700

Entry : I
Entry : II
November: Example : 2
On 03-11-2017, The Company received cheque of Rs. 4,71,400 from Shree Technology.
Credit : Shree Technology - Rs. 4,71,400 (In Bill-wise Details screen Select Agst Ref
“KT/07-1718”)
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Godown.
Item Quantity
Monitor 60
Mother board 60
Hard Disk 60
Keyboard 60
Mouse 60
i. Make an entry in a Stock Journal.

 Destination Godown : Govandi Godown
Wages
Overheads
Computer i3 : Rs. 6,000
The wages will be paid by cheque.
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 Quantity – 30
 Batch Name - Select New Number -Type Batch - 03
iv Make an entry n a Payment Voucher.
On 9-11-2017, The Company received Rs 5,18,600 cheque from Ghata Electronics.
Credit : Ghata Electronics - Rs. 5,18,600 (In Bill-wise Details screen Select Agst Ref
“KT/08-1718”)
On 13-11-2017, The company purchased Fax Machines from Lucky Electronics on 90 days
Fax Machines 25 11,900 2,97,500 83,300 3,80,800
i. Create Ledger : Lucky Electronics

 Address : Mankhurd, Mumbai, Maharashtra 400088.
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o GSTIN/UIN : 27ACFPP8015P1Z1
1. Party Account Name: Lucky Electronics
Particulars Amount
Purchases @ 28% 2,97,500
10. Press Enter thrice to view the Bill-wise Details for: Lucky Electronics screen
11. Ensure that Bill-wise Details for: Lucky Electronics are as shown
New Ref LE/19-1718 Credit
Rs.4,800 and Rs.12,200 respectively by cheque for October 2017.

Debit: Electricity Charges - Rs. 12,200.
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On 17-11-2017, The Company sold Computer (i5) and Fax Machines to Kajal Enterprises on
Computer (i5) 15 35,000 5,25,000 18%
Fax Machines 5 17,000 85,000 28%
i. Create Ledger Kajal Enterprises

 Address : Belapur, Navi Mumbai, Maharashtra 400614.
o GSTIN/UIN : 27AGQPP3348E2Z2

1. Party Account Name: Kajal Enterprises
Particulars Amount
Sales @ 18% 5,25,000
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11. Press Enter thrice to view the Bill-wise Details for: Kajal Enterprises screen
12. Ensure that Bill-wise Details for: Kajal Enterprises are as shown
Ref Days
New Ref KT/09-1718 30 Days 7,28,300 Dr
On 20-11-2017, The Company paid to Shree Computers Rs. 13,59,950 by cheque.

Debit : Shree Computers – Rs.13,59,950 (In Bill-wise Details screen Select Agst Ref
“Shree/15-1718”)
On 22-11-2017, The Company sold Computer (i3) and Fax Machines to Sony Enterprises on
Item Quantity Rate Value VAT
Computer (i3) 15 31,100 5,25,000 5%
Fax Machines 5 17,000 85,000 12.5%
i. Create Ledger Sony Enterprises

 Address : Kurla, Mumbai, Maharashtra 400070
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o GSTIN/UIN : 27AHAPK9686P1ZE

1. Party Account Name: Sony Enterprises
Lot No.
Particulars Amount
Sales @ 18% 4,66,500
11. Press Enter thrice to view the Bill-wise Details for: Sony Enterprises screen
12. Ensure that Bill-wise Details for: Sony Enterprises are as shown
Ref Days
New Ref KT/10-1718 30 Days 6,59,270 Dr
Volume - II 157
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On 24-11-2017, The Company received cheque of Rs. 7,28,300 from Kajal Enterprises.

Credit : Kajal Enterprises - Rs.7,28,300 (In Bill-wise Details screen Select Agst Ref
“A1C/09-1718”)
On 25-11-2017, The company decides to have a price list named Price List - 1 for the
following items.
Note: Create a Price List with effective date as on 26-11-2017.
Items Qty Rate Discount
from To
Computer (i3) 35000 10%
Computer (i5) 42000 10%
Fax Machines 0 5 17500
5 16800
1. In F11: Features - Inventory Features (F2).

 Set Use Multiple Price Levels to Yes.
 In Company Price Levels, type Price List 1 and accept the screen.
 Accept F11: Company Operation Alteration screen.
Creation of Price List-1

Go to Gateway of Tally > Inventory Info > Price List > Stock Group > Finished Goods
1. Ensure that the Price List screen displays as shown.
Volume - II 158
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Figure 9.27 Price List

2. Press Y or Enter to accept the screen.
On 27-11-2017, The Company received cheque of Rs. 6,59,270 from Sony Enterprises.
Credit : Sony Enterprises - Rs.6,59,270 (In Bill-wise Details screen Select Agst Ref
“KT/10-1718”)
Debit : ICICI Bank - Rs.6,59,270
On 28-11-2017, The Company paid cheque of Rs. 7,48,828 to Mahalaxmi Computers.

Debit : Mahalaxmi Computers - Rs. 7,48,828 (In Bill-wise Details screen Select Agst Ref
“Mah/33-1718”)
On 29-11-2017, The Company sold Computer (i3) and Fax Machines to Good Luck
Computers on credit of 30 days from Mankhurd Godown. Sales was made as per Price List 1
Volume - II 159
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Item Quantity Rate Discount Value GST

Computer (i3) 15 35,000 10% 4,72,500 18%
Fax Machines 7 16,800 1,17,600 28%
 In F11: Features – Inventory Features (F2), Set Separate Discount column on

Invoices to Yes
i. Create Ledger Good Luck Computers
 Address : Govandi, Mumbai, Maharashtra 400043.
o GSTIN/UIN : 27AOJPS1419Q1Z9
1. Party Account Name: Good Luck Computers
2. Price Level : Price List - 1
Godown Batch / Quantity Rate Discount Amount
Mankhurd Lot No.
Batch 03 15 35,000 10% 4,72,500
Godown
Particulars Amount
Sales @ 18% 4,72,500
Volume - II 160
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9. Similarly, enter the details of stock items Fax Machines as per the transaction
details. And Select Sales @ 28% ledger for Fax Machine
12. Press Enter thrice to view the Bill-wise Details for: Good Luck Computers screen
13. Ensure that Bill-wise Details for: Good Luck Computers are as shown
Ref
30 Days 7,08,078 Dr
On 30-11-2017, The Company sold Computer (i5) and Fax Machines to Krishna Academy
on credit of 30 days from Mankhurd Godown. Sales was made as per Price List - 1
Computer (i5) 20 42,000 10% 7,56,000 18%
Fax Machines 4 17,500 70,000 28%
i. Create Ledger Krishna Academy

 Address : Govandi, Mumbai, Maharashtra 400043.
o GSTIN/UIN : 27APIPR3136B1Z2
1. Party Account Name: Krishna Academy
2. Price Level : Price List 1
Volume - II 161
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Godown Quantity Rate Discount Amount
Mankhurd Godown 20 42,000 10% 7,56,000
Particulars Amount
Sales @ 18% 7,56,000
12. Press Enter thrice to view the Bill-wise Details for: Krishna Academy screen
13. Ensure that Bill-wise Details for: Krishna Academy are as shown
Ref Days
New Ref KT/12-1718 30 Days 9,81,680 Dr
On 30-11-2017, The company purchased raw material on 90 days credit from Mahalaxmi
Monitor 25 8300 2,07,500 18%
Mother board 25 5400 1,35,000 18%
Hard Disk 25 4500 1,12,500 18%
Keyboard 25 260 6,500 18%
Mouse 25 190 4,750 18%
Total 4,66,250
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Ref Days
New Ref Mah/47-1718 90 Days 5,50,175 Cr
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Trial Balance until November 2017

Particulars 1-Jul-2017 to 30-Nov-2017
Closing Balance
Debit Credit
Current Liabilities 41,455.00 9,30,975.00
Duties & Taxes 41,455.00
Computers 60,000.00
Opening Stock
Deposits (Asset) 210,000.00
Sales @ 18% 48,30,000.00
Sales @ 28% 9,24,100.00
Purchases @ 18% 52,88,350.00
Purchases @ 28% 7,77,500.00
Wages 1,60,000.00
Bank Charges 500.00
Conveyance 7,700.00
Grand Total 96,96,275.00 96,96,275.00
Figure 9.28 Detailed Trial Balance - July 1, 2017 to November 30, 2017
Press Alt + F2 to Change the Period from July 1, 2017 to November 30, 2017
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DECEMBER 2017
December : Example : 1
On 1-12-2017, The petty cashier submitted the statement of expenses for November 2017
By Cheque :
Salaries to staff for November 2017 - Rs. 24,000
By Petty Cash :
Conveyance Expenses - Rs.1,900
Staff and Welfare - Rs. 2,700
Miscellaneous Exp - Rs.300

Entry : I
Entry : II
Debit : Conveyance : Rs. 1,900
On 4-12-2017, Good Luck Computers returned the following items, out of sales made on 29-
11-2017, as they were excess of their requirement.
Computer (i3) 2 31500 63000 18%
Fax Machines 2 16800 33600 28%
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 In F11: Features – Accounting Features (F1), Set Use Debit/Credit Notes, Record
Credit Notes in Invoice mode and Record Debit Notes in Invoice mode to Yes
ii. Make an entry of the transaction in a Credit Note Voucher (Item Invoice Format).
Go to Gateway of Tally > Accounting Vouchers > F8 : Credit Note (Ctrl + F8)
1. Press F2 to change voucher date. Type 04-12-2017
2. Click the As Invoice button
3. Click the Item Invoice button
4. Party Account Name: Good Luck Computers
5. Price Level : Not Applicable
6. Ensure the Name of Item screen are as given:
Name of the Item Godown Batch Quantity Rate Amount
Computer (i3) Mankhurd Batch 03 2 31,500 63,000
Fax Machines Godown
Mankhurd - 2 16800 33600
7. Godown
Ensure that the entries in Accounting details screen as given.
Name of the Item Particulars Amount
Computer (i3) Sales @ 18% 63,000
Fax Machines Sales @ 28% 33600
10. Press Enter thrice to view the Bill-wise Details for: Good Luck Computers screen
11. Ensure that Bill-wise Details for: Good Luck Computers are as shown
Ref Days
AgstRef KT/11-1718 30 Days 1,17,348 Cr
Volume - II 166
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Figure 9.29 Credit Note Voucher

On 06-12-2017, The Company received cheque of Rs. 5,90,730 from Good Luck Computers.
Credit : Good Luck Computers - Rs.5,90,730 (In Bill-wise Details screen Select Agst Ref
“KT/11-1718”)
On 08-12-2017, The Company paid cheque of Rs. 3,30,688 to Lucky Electronics and received
discount of Rs. 5800/-.
i. Create Ledger Discount Received Under Indirect Income

Debit : Lucky Electronics - Rs.3,80,800 (In Bill-wise Details screen Select Agst Ref
“LE/19-1718”)
Credit : Discount Received – Rs.5,800
Credit : ICICI Bank - Rs.3,75,00
Volume - II 167
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On 11-12-2017, The Company received cheque of Rs. 9,76,680 from Krishna Academy as
final settlement.
i. Create Ledger Discount Allowed Under Indirect Expenses

Credit : Krishna Academy - Rs.9,81,680 (In Bill-wise Details screen Select Agst Ref
“KT/12-1718”)
Debit : Discount Allowed – Rs.5,000
Godown.
Item Quantity
Processor (i3) 30
Processor (i5) 30
Monitor 30
Mother board 30
Hard Disk 30
Keyboard 30
Mouse 30

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Wages
Overheads

 Quantity – 15
iii Make an entry n a Payment Voucher.
Rs.3,900 and Rs. 11,200 respectively by cheque for November 2017.
Debit: Electricity Charges - Rs.11,200.
Volume - II 169
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Credit: ICICI Bank - Rs.15,100
On 20-12-2017, The Company sold Computer (i3) to Cool Computers, Gujrat on credit of 45
days from Mankhurd Godown.
Computer (i3) 7 32,000 2,24,000 18%
i. Create Ledger Cool Computers

 Address : Ahmedabad, Gujrat, 380001.
o GSTIN/UIN : 24AARFK8837C1Z2
ii. Create Ledger : Sales CST 18%
 Set/Alter GST Details : Applicable
o Cess : 0%
ii. Create Ledger : IGST
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 Tax Type : Integrated Tax

iii. Make an entry of the transaction in a Sales Voucher.

1. Party Account Name: Cool Computers
Lot No.
Particulars Amount
Sales CST 18% 2,24,000
8. Press Enter twice and select GST Ledger IGST from the list of ledger accounts
9. Press Enter to view the Bill-wise Details for: Cool Computers screen
10. Ensure that Bill-wise Details for: Cool Computers are as shown
Ref Days
New Ref KT/13-1718 45 Days 2,64,320 Dr
Volume - II 171
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Figure 9.30 CST Sales Invoice

On 25-12-2017, The company purchased raw material on 90 days credit from Mohamaddi
Traders, Bangalore and stored them in Chembur Godown.
Item Quantity Rate Value CST
Monitor 30 8200 2,46,000 5%
Mother board 30 5300 1,59,000 5%
Hard Disk 30 4400 1,32,000 5%
Keyboard 30 250 7,500 5%
Mouse 30 180 5,400 5%
Total 5,49,900
i. Create Ledger Mohamaddi Traders

 Address : Kinnigoli, Mangalore, Karnataka 574150.
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o GSTIN/UIN : 29ADAPN7053M1Z4
ii. Create Ledger : Purchase CST 18%

o Cess : 0%

2. Supplier Invoice No. : MT/47-1718
3. Party Account Name: Mohamaddi Traders
7. Press Enter thrice to view Bill-Wise Details for: Mohamaddi Traders.
Ref Days
New Ref MT/47-1718 90 Days 6,48,882 Cr
Volume - II 173
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Figure 9.31 CST Purchase Invoice

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Trial Balance until December 2017

Particulars 1-Jul-2017 to 31-Dec-2017
Closing Balance
Debit Credit
Computers 60,000.00
Opening Stock
Sales @ 18% 47,67,000.00
Sales @ 28% 8,90,500.00
Sales CST 18% 2,24,000.00
Purchase CST 18% 5,49,900.00
Purchases @ 18% 52,88,350.00
Purchases @ 28 % 7,77,500.00
Wages 1,90,000.00
Discount Received 5,800.00
Bank Charges 500.00
Conveyance 9,600.00
Discount Allowed 5,000.00
Salaries to Staff 1,08,000.00
Grand Total 1,00,97,557.00 1,00,97,557.00
Figure 9.32 Detailed Trial Balance - Jul 1, 2017 to December 31, 2017
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JANUARY 2018
January : Example : 1
On 2-01-2018, The petty cashier submitted the statement of expenses for December 2017
By Cheque :
Salaries to staff for December 2017 - Rs. 24,000
By Petty Cash :

Entry : I
Entry : II
On 03-01-2018, The cash given to Petty Cashier for daily expenses Rs. 10,000

Credit Particulars: Cash - Rs.10,000
Debit Particulars: Petty Cash - Rs.10,000
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On 05-01-2018, The Company received cheque of Rs. 2,64,320 from Cool Computers.

Credit : Cool Computers - Rs.2,64,320 (In Bill-wise Details screen Select Agst Ref
“KT/13-1718”)
Debit : ICICI Bank - Rs.2,64,320
On 08-01-2018, The Company sold Computer (i3) to Spice Electronics, Rajasthan on credit
of 45 days from Mankhurd Godown.
Item Quantity Rate Value IGST
Computer (i3) 15 32,500 4,87,500 18%
i. Create Ledger : Spice Electronics

 Address : Beri, Jaipur, Rajasthan 303105.
o GSTIN/UIN : 08ANKPK4754G1ZR

1. Party Account Name: Spice Electronics
Mankhurd Godown Lot
Batch 04 15 32,500 4,87,500
No.
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Particulars Amount
Sales CST 18% 4,87,500
9. Press Enter to view the Bill-wise Details for: Spice Electronics screen
10. Ensure that Bill-wise Details for: Spice Electronics are as shown
Ref Ref
New KT/14-1718 Credit
45 DaysDays 5,75,250 Dr
On 10-01-2018, The Company paid cheque of Rs. 5,50,175 to Mahalaxmi Computers.

Debit : Mahalaxmi Computers – Rs 5,50,175 (In Bill-wise Details screen Select Agst Ref
“Mah/47-1718”)
On 13-01-2018, The Company sold Computer (i5) and Fax Machines to Krishna Academy
on credit of 30 days from Mankhurd Godown. Sales was made as per Price List - 1
Computer (i5) 15 42,000 10% 5,67,000 18%
Fax Machines 5 16,800 84,000 28%

1. Party Account Name: Krishna Academy
Volume - II 178
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Godown Quantity Rate Discount Amount
Mankhurd Godown 20 42,000 10% 5,67,000
Particulars Amount
Sales @ 18% 5,67,000
11. Press Enter thrice to view the Bill-wise Details for: Krishna Academy screen
12. Ensure that Bill-wise Details for: Krishna Academy are as shown
Ref Ref
New KT/15-1718 Days
90 Days 7,76,580 Dr
Rs.4,700 and Rs.10,800 respectively by cheque for December 2017.

On 19-01-2018, The company purchased raw material on 90 days credit from Raj Traders
and stored them in Chembur Godown.
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Monitor 30 8300 2,49,000 18%

Mother board 30 5400 1,62,000 18%
Hard Disk 30 4500 1,35,000 18%
Keyboard 30 260 7,800 18%
Mouse 30 190 5,700 18%
Total 5,59,500
i. Create Ledger : Raj Traders

 Address : Tilak Nagar, Mumbai, Maharashtra 400089.
o GSTIN/UIN : 27BDMPK1423P1Z6
2. Supplier Invoice No. : RT/78-1718
3. Party Account Name: Raj Traders
7. Similarly, select CGST from the list of ledger accounts displayed.
8. Press Enter thrice to view Bill-Wise Details for: Raj Traders.
Ref Days
New Ref RT/78-1718 90 Days 6,60,210 Cr
Volume - II 180
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Godown.
Item Quantity
Processor (i3) 15
Monitor 60
Mother board 60
Hard Disk 60
Keyboard 60
Mouse 60

Wages
Overheads
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 Quantity – 20
iii Make an entry n a Payment Voucher.
On 27-01-2018, The Company placed Purchase order for following items to Kalyani
Traders, Purchase Order No. : PO/001, and will store in Chembur Godown
Item Quantity
Processor (i3) 10
Processor (i5) 20
Monitor 20
Mother board 20
Hard Disk 20
Keyboard 20
Mouse 20
 To enable Purchase Order Voucher, set Enable Purchase Order Processing to Yes
in F11: Features (F2: Inventory Features) and Set Enable zero-valued transactions
to Yes in F11 Features (F1: Accounting Features).
Volume - II 182
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i. Create Ledger : Kalyani Traders

 Address : Chembur, Mumbai, Maharashtra 400074.
o GSTIN/UIN : 27BKMPK6540G1ZY
ii Make an entry of the transaction in a Purchase Order Voucher (Alt + F4).

1. Party Account Name: Kalyani Traders
2. Order No. : PO/001
4. The Item Allocations for: Processor (i3) screen displays.
Due on Godown Quantity Rate Amount
03/02/2018 Chembur Godown 10 Nil Nil
In Rate Field Press Space Bar Key

Particulars Amount
Purchase @ 18% Nil
9. Similarly, enter the details of other stock items as per the transaction details.
Volume - II 183
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Figure 9.33 Purchase Order Voucher

On 31-01-2018, The Company received a Sales order for 15 Computer (i5) Configuration
from Eagal Enterprises, to be delivered from Mankhurd Godown on 10/02/2018 at Rs.
37,800 Each. Sales Order No. : EE/SO-001
 To enable Sales Order Voucher, set Enable Sales Order Processing to Yes in F11:
Features (F2: Inventory Features)
i. Create Ledger : Eagal Enterprises

 Address : Mankhurd, Mumbai, Maharashtra 400043.
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o GSTIN/UIN : 27CTKPK8675E1Z5
ii Make an entry of the transaction in a Sales Order Voucher (Alt + F5).

1. Party Account Name: Eagal Enterprises
2. Order No. : EE/SO-001
Due on Godown Quantity Rate Amount
10/02/2018 Mankhurd 15 37800 5,67,000
Particulars Amount
Sales @ 18% 5,67,000
9. The resultant screen displays as shown
Figure 9.34. Sales Order Voucher

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Trial Balance until January 2018

Particulars 1-Jul-2017 to 31-Jan-2018
Closing Balance
Debit Credit
Duties & Taxes 37,333.00 29,088.00
Computers 60,000.00
Opening Stock
Sales @ 18% 53,34,000.00
Sales @ 28% 9,74,500.00
Sales CST 18% 7,11,500.00
Purchase CST 18% 5,49,900.00
Purchases @ 18% 58,47,850.00
Purchases @ 28 % 7,77,500.00
Wages 2,50,000.00
Bank Charges 500.00
Conveyance 10,800.00
Grand Total 1,13,75,180.00 1,13,75,180.00
Figure 9.35 Detailed Trial Balance - July 1, 2017 to January 31, 2018
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FEBRUARY 2018
February : Example : 1
On 02-02-2018, The petty cashier submitted the statement of expenses for January 2018
By Cheque :
Salaries to staff for January 2018 – Rs. 24,000
By Petty Cash :

Entry : I
Entry : II
Debit : Staff and Welfare - Rs. 2,300
On 03-02-2018, The Company received goods from Kalyani Traders against order no.
PO/001, as per receipt note no. RN/21.
Item Quantity
Processor (i3) 10
Processor (i5) 20
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Monitor 20
Mother board 20
Hard Disk 20
Keyboard 20
Mouse 20
 To enable Receipt Notes, set Use Tracking Numbers (enables Delivery and Receipt
Notes) to Yes in the F11: Features (F2: Inventory Features).
 In Receipt Note Voucher, In F12 Configuration, set Enable Supplementary Details to
Yes
i Make an entry of the transaction in a Receipt Note Voucher (Alt + F9).

1. Ref. : RN/21
3. In Party Details screen select Order No(s) as PO/001
4. Accept the other default fields
6. The Item Allocations for: Processor (i3) screen displays.
Tracking No. Order No. Godown Quantity Rate Amount
RN/21 PO/001 Chembur Godown 10 Nil Nil
Note : in Rate Field Press Space Bar Key
Particulars Amount
Purchase @ 18% Nil
11. Similarly, enter the details of other stock items as per the transaction details.
Volume - II 188
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Figure 9.36. Receipt Note Voucher

On 05-02-2018, The Company received NEFT of Rs. 5,75,250 from Spice Electronics.

Credit : Spice Electronics - Rs. 5,75,250 (In Bill-wise Details screen Select Agst Ref
“KT/14-1718”)
On 07-02-2018, The Company paid cheque of Rs. 6,48,882 to Mohamaddi Traders.

Debit : Mohamaddi Traders - Rs. 6,48,882 (In Bill-wise Details screen Select Agst Ref
“MT-45/1718”)
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On 10-02-2018, The Company delivered to Eagal Enterprises towards Sales Order No.
EE/SO-001, as per Delivery Note No. : DN/001.
Item Quantity Rate Vale
Computer (i5) 15 37800 5,67,000
i Make an entry of the transaction in a Delivery Note Voucher (Alt + F8).

1. Ref. : DN/001
3. In Party Details screen select Order No(s) as EE/SO-001
4. Accept the other default fields
5. Price List : Not Applicable
6. Name of Item: By default Computer (i5) will come.
Tracking Order No. Godown Quantity Rate Amount
No.
DN/001 EE/SO-001 Mankhurd 15 37800 5,67000
9. Godown for: Computer (i5) screen.
Press Enter to accept the Item Allocations
Particulars Amount
Sales @ 18% 5670000
Volume - II 190
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Figure 9.37 Delivery Note Voucher

credit of 45 days from Mankhurd Godown. Sales was made as per Price List - 1
Item Quantity Rate Discount Value VAT
Computer (i5) 15 42,000 10% 5,67,000 5%
Fax Machines 5 16,800 84,000 12.5%

Tracking No / Godown Quantity Rate Discount Amount
Order No
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Not Applicable Mankhurd Godown 15 42,000 10% 5,67,000
Particulars Amount
Sales @ 18% 5,67,000
Ref
45 Days 7,76,580 Dr
Rs.5,100 and Rs.14,200 respectively by cheque for January 2018.

On 19-02-2018, The Company returned 2 Hard Disk, 2 Keyboard and 2 Mouse to Kalyani
Traders, which were not as per company’s specification, against Receipt Note No. RN/21.
Name of the Qty Returned Rate Value
item
Hard Disk 2 4500 9000
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Key Board 2 260 520

Mouse 2 190 380
 To enable Use Rejection Inward and outward notes to Yes in the F11: Features (F2:
Inventory Features).
i Make an entry of the transaction in a Rejection Out Voucher (Alt + F6).

1. Ledger Account : Kalyani Traders
2. Supplier’s Name and Address : Kalyani Traders
3. Name of Item: Select Hard Disk from the List of Items.
4. The Item Allocations for: Hard Disk screen displays.
5. Ensure that Item Allocations for: Hard Disk are as shown.
No.
RN/21 PO/001 Chembur 2 4500 9000
6. Similarly, enter the details of otherGodown
stock items as per the transaction details.
Figure 9.38 Rejection Out Voucher
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On 21-02-2018, The company purchased Fax Machines from Vasekar Traders on 90 days
Fax Machines 20 12,100 2,42,000 28%
i. Create Ledger : Vasekar Traders

 Address : Kurla Garden, Mumbai, Maharashtra 400070.
o GSTIN/UIN : 27AABCS1425P1Z5
1. Party Account Name: Vasekar Traders
Tracking No/ Godown Quantity Rate Amount
Order
Not No.
Applicable Mankhurd Godown 20 12100 2,42,000
Particulars Amount
Purchases @ 28% 2,42,000
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10. Press Enter thrice to view the Bill-wise Details for: Vasekar Traders screen
11. Ensure that Bill-wise Details for: Vasekar Traders are as shown
New Ref VT/67-1718 Credit
On 23-02-2018, The Company received NEFT of Rs. 7,76,580 from Krishna Academy.

Credit : Krishan Academy - Rs. 7,76,580 (In Bill-wise Details screen Select Agst Ref
“KT/15-1718”)
On 25-02-2018, Eagal Enterprises returned 5 Computer (i5), which were not as per
specification, against Delivery Note No. DN/001.
Name of the item Qty Returned Rate Value
Computer (i5) 5 37800 1,89,000
i Make an entry of the transaction in a Rejections In Voucher (Ctrl + F6).

1. Ledger Account : Eagal Enterprises
2. Supplier’s Name and Address : Eagal Enterprises
No.
DN/001 EE/SO-001 Mankhurd Godown 5 37800 1,89,000
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Figure 9.39 Rejection In Voucher

On 26-02-2018, Kalyani Traders sent an Invoice KT/88-1718 for good sold by them against
Purchase Order No. : PO/001 and Receipt Note No. : RN/21.
Processor (i3) 10 6200 62000 18%
Processor (i5) 20 7100 142000 18%
Monitor 20 8300 166000 18%
Mother board 20 5400 108000 18%
Hard Disk 18 4500 81000 18%
Keyboard 18 260 4680 18%
Mouse 18 190 3420 18%
i Make an entry of the transaction in a Purchase Voucher (F9).
Volume - II 196
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1. Supplier Invoice No. : KT/88-1718

3. Receipt Note No. (s) : Select RN/21 from the List of Tracking Numbers
4. Order No. : PO/001 Order details will come automatically
5. The items list is automatically displayed in the item name field
6. Enter the Rate as per transaction.
7. Enter Accounting Details as Purchase 18% for all items
10. Press Enter thrice to view the Bill-wise Details for: Kalyani Traders
11. Ensure that Bill-wise Details for: Kalyani Traders are as shown
New Ref KT/88-1718 Credit

Volume - II 197
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 If you get any error of mismatch of figure then go to F12 Configuration and Set Use
Default for bill allocations to Yes. Save the entry and again make it No afterwards.
On 27-02-2018, The Company raised invoice on Eagal Enterprises towards Sales Order No.
EE/SO-001 and Delivery Note No. : DN/001.
Item Quantity Rate Vale
Computer (i5) 15 37800 5,67,000
i Make an entry of the transaction in a Sales Voucher (F8).

1. Ref. : KT/17-1718
3. Delivery Note No. (s) : Select DN/001 from the List of Tracking Numbers
4. Order No. : EE/SO-001 will come automatically
5. Retain the other fields as default
7. Name of Item: By default Computer (i5) will come.
Tracking Order No. Godown Quan Rate Amount
No.
DN/001 EE/SO-001 Mankhurd Godown 10 ti 37800 3,78,000
10. Press Enter to accept the Item Allocations for: Computer ty
(i5) screen.
Particulars Amount
Sales @ 18% 3,78,000
15. Press Enter thrice to view the Bill-wise Details for: Eagal Enterprises
16. Ensure that Bill-wise Details for: Eagal Enterprises are as shown
Credit Days
Volume - II 198
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New Ref KT/17-1718 45 Days 3,96,900 Dr

Figure 9.41 Sales Invoice

On 28-02-2018, The Company come to know after physical stock verification in Mankhurd
Godown, found that the stock of Fax Machine was 20. This is adjusted by passing physical
stock voucher.
i Make an entry of the transaction in a Physical Stock Voucher (Alt + F10).

1. Name of Item : Fax Machines
2. Godown : Mankhurd Godown
3. Quantity : 20
Volume - II 199
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Figure 9.42 Physical Stock Voucher

5. Press Enter to Save the Voucher.
Volume - II 200
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Trial Balance until February 2018

Particulars 1-Jul-2017 to 28-Feb-2018
Closing Balance
Debit Credit
Duties & Taxes 13,551.00 29,088.00
Computers 60,000.00
Opening Stock
Sales @ 18% 62,79,000.00
Sales @ 28% 10,58,500.00
Sales CST 18% 7,11,500.00
Purchase CST 18% 5,49,900.00
Purchases @ 18% 64,14,950.00
Purchases @ 28 % 10,19,500.00
Wages 2,50,000.00
Bank Charges 500.00
Rent Expenses 1,05,000.00
Grand Total 1,27,34,236.00 1,27,34,236.00
Figure 6.43 Detailed Trial Balance - July 1, 2017 to February 28, 2018
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MARCH 2018
March : Example : 1
On 02-03-2018, The petty cashier submitted the statement of expenses for February 2018
By Cheque :
Salaries to staff for February 2018 - Rs. 24,000
By Petty Cash :

Entry : I
Entry : II
March : Example : 2
On 02-03-2018, The Company taken unsecured loan of Rs. 1,00,000 from Java Enterprises
at 2% monthly interest. The amount was deposited in the bank.
i. Create a ledger Java Enterprises under Unsecured Loan.

Credit : Java Enterprises - Rs. 1,00,000
Volume - II 202
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March : Example : 3
On 05-03-2018, The Company received DD of Rs. 4,46,040 from Egal Enterprises.

Credit : Egal Enterprises - Rs. 4,46,040 (In Bill-wise Details screen Select Agst Ref
“KT/17-1718”)
March : Example : 4
On 07-03-2018, The Company sold Computer (i5) to Star Trading Co Ltd, Australia, on
credit of 10 days from Mankhurd Godown. Billing to be done in US Dollors.
Item Quantity Rate Value in $ Amount
Computer (i5) 10 $650 $6500 in Rs
3,90,000
 To enable Multi Currency, set Enable Multi-Currency to Yes in F11: Features (F1:
Accounting Features).
i. Create Ledger Star Trading Co Ltd.

 Address : Australia.
ii. Create Ledger : Sales Export

o Nature of Transaction : Export Exempt
Volume - II 203
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o Taxability : Exempt
ii. Create a Currency : US Dollar

Go to Gateway of Tally > Accounts Info > CuRrencies > Create
 Symbol : $
 Formal Name : US Dollar
 Number of Decimal Places : 0
 Decimal Places for printing Amount in words : 0
 Retain the rest fields as default
iii. Make an entry of the transaction in a Sales Voucher.

1. Ref : KT/18-1718
2. Party Account Name: Star Trading Co Ltd
4. Delivery Note / Order No. : Not Applicable
Tracking No. / Godown Quantity Rate Amount
Order No.
Not Applicable Mankhurd Godown 10 $650 $6,500
8. Press Enter to view the Rate of Exchange screen
Figure 9.44 Forex rate of Exchange

9. Press Enter to accept the rest of the fields.
Particulars VAT/Tax Class Amount
Sales Export Exports 3,90,000
Volume - II 204
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11. Press Enter to view the Bill-wise Details for: Star Trading Co Ltd screen
12. Ensure that Bill-wise Details for: Star Trading Co Ltd are as shown
Ref Days
New Ref KT/18-1718 10 Days $6500 Dr
Figure 9.45 Sales Export Voucher

March : Example : 5
On 10-03-2018, The company purchased Fax Machines from Vasekar Traders and get some
free quantity on 90 days credit and stored them in Mankhurd Godown.
Item Free Qty Quantity Rate Value GST
Fax Machines 5 10 12,100 1,21,000 28%
Volume - II 205
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 To record the free quantity, set Use separate Actual & Billed Quantity columns to
Yes in F11: Features (F2: Inventory Features).

1. Supplier Invoice No. : VT/75-1718
2. Party Account Name: Vasekar Traders
Tracking No/ Godown Actual Billed Rate Amount
Order
Not No.
Applicable Mankhurd Godown 15 10 12100 1,21,000
Particulars Amount
Purchases @ 28% 1,21,000
11. Press Enter thrice to view the Bill-wise Details for: Vasekar Traders screen
12. Ensure that Bill-wise Details for: Vasekar Traders are as shown
New Ref VT/75-1718 Credit
Volume - II 206
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Figure 9.46. Purchase Voucher

March : Example : 6
On 12-03-2018, The Company sold Computer (i3) to Cool Computers, Gujrat on credit of 45
days from Mankhurd Godown.
Computer (i3) 10 32,500 3,25,000 18%

1. Party Account Name: Cool Computers
Godown Batch / Actual Billed Rate Amount
Batch 05 Quantity 10
10 Quantity 32,500 3,25,000
Volume - II 207
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Particulars Amount
Sales CST 18% 3,25,000
9. Press Enter to view the Bill-wise Details for: Cool Computers screen
10. Ensure that Bill-wise Details for: Cool Computers are as shown
Ref Ref
New KT/19-1718 Days
45 Days 3,83,500 Dr
March : Example : 7
Rs.3,900 and Rs.11,200 respectively by cheque for February 2018.

Credit: ICICI Bank - Rs. 15,100
March : Example : 8
On 14-03-2018, Company received a cheque of $6500 from Star Trading Co Ltd. Bank has
charge 50$ as conversion charge.
Note : Exchange rate of $ on 14/03/2018 is Rs. 65/$
In Receipt Voucher Press F12 : Configuration, Set Pre-Allocate Bills for Payment/Receipt
to No

1. Credit : Star Trading Co Ltd - $6500 (In Bill-wise Details screen Select Agst Ref
“A1C/11-1718”)
In the Forex Rate of Exchange
 Forex Amount : $6500
Volume - II 208
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 Rate of Exchange : Rs. 65/$

 Value in Rs : 4,22,500
Ensure that Bill-wise Details for: Star Trading Co Ltd are as shown
Ref
Agst Ref KT/18-1718 Days
10 Days $6500 Cr
2. Debit : Bank Charges : $50

 Value in Rs : 3,250
3. Debit : ICICI Bank - $6450
 Value in Rs : 4,19,250
The completed receipt voucher will display as shown
Figure 9.47. Receipt Voucher

 Press Enter to Save the Voucher
Volume - II 209
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March : Example : 9
On 20-03-2018, The Company received cheque of Rs. 7,76,580 from Kajal Enterprises.

Credit : Kajal Enterprises - Rs. 7,76,580 (In Bill-wise Details screen Select Agst Ref
“KT/16-1718”)
Debit : ICICI Bank – Rs. 7,76,580
March : Example : 10
On 21-03-2018, The Company sold Computer (i3) and Fax Machines to Perfect Solutions on
Computer (i3) 10 35,000 10% 3,15,000 18%
Fax Machines 15 16,800 2,52,000 28%
 Set Use separate Actual & Billed Quantity columns to No in F11: Features (F2:
Inventory Features).
i. Create Ledger : Perfect Solutions

 Address : Fort, Mumbai, Maharashtra 400001
o GSTIN/UIN : 27AACCA8432H1ZQ

1. Party Account Name: Perfect Solutions
Volume - II 210
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Tracking No / Godown Batch / Lot Quantity Rate Discount Amount
Order No No.
Not Mankhurd Batch 05 10 35,000 10% 3,15,000
Applicable Godown
Particulars Amount
Sales @ 18% 3,15,000
12. Press Enter thrice to view the Bill-wise Details for: Perfect Solutions screen
13. Ensure that Bill-wise Details for: Perfect Solutions are as shown
Ref Days
New Ref KT/20-1718 45 Days 6,94,260 Dr
Item Quantity Rate Discount Value VAT
Computer (i5) 8 42,000 10% 3,02,400 5%
Fax Machines 10 16,800 1,68,000 12.5%
Volume - II 211
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Tracking No / Godown Quantity Rate Discount Amount
Order No
Not Applicable Mankhurd 15 42,000 10% 3,02,400
6. Godown
Press Enter to accept the Item Allocations for: Computer (i5) screen.
Particulars Amount
Sales @ 18% 3,02,400
Ref Days
New Ref KT/21-1718 45 Days 5,71,872 Dr
On 26-03-2018, The Company paid cheque of Rs. 6,60,210 to Raj Traders.
Debit : Raj Trader - Rs. 6,60,210 (In Bill-wise Details screen Select Agst Ref “RT/78-
1718”)
Volume - II 212
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On 30-03-2018, The petty cashier submitted the statement of expenses for March 2018
By Petty Cash :
i. Make entry of above transaction in a Payment Voucher.

On 31-3-2018, Company paid 52,000 including monthly loan interest and part loan amount
to Java Enterprises by cheque
i. Create Ledger Interest on Loan (under Indirect Expenses).

Debit: Java Enterprises - Rs. 50,000.
Debit : Interest on Loan - Rs. 2000
Credit: ICICI Bank – Rs. 52,000
On 31-3-2018, Pass the necessary journal entry to adjust Forex Gain/Loss
 check the Unadjusted Forex Gain/Loss from Balance Sheet
i. Create Ledger Forex Gain/Loss (under Indirect Income).
Volume - II 213
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ii. Create Voucher Class Forex Gain/Loss in Journal Voucher

Go to Gateway of Tally > Accounts Info > Voucher Type > Alter > Journal
 Retain the other fields as default
 Name of Class : Forex Gain/Loss
 In the Voucher Type Class Screen, Set Use Class for Forex Gain/Loss Adjustment?
to Yes
 Ledger Name : Select Forex Gain/Loss from the list of Ledger Accounts
 Press Enter to Accept the Voucher type.
ii. Make an entry of the transaction in a Journal Voucher.
 In F12: Voucher Entry Configuration, set Use Single Entry Mode For
Pymt/Rcpt/Contra to Yes
 Press F7 For Journal Voucher
 Name : Journal
 Class : Forex Gain/Loss
 Account : Forex Gain/Loss will be selected by default
 In Particulars select Star Trading Co Ltd
 In Bill Wise Details Screen Select KT/18-1718
 Amount will come automatically
 The Screen displays as below
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Figure 9.48 Forex Gain/Loss Voucher

 Press Y or Enter to Accept the voucher
On 31-3-2018, Company decided to write off the preliminary expenses by 20%.
i. Create Ledger Preliminary Expenses Written Off (under Indirect Expenses).

ii. Make an entry of the transaction in a Journal Voucher. (Class : Not Applicable)
Debit: Preliminary Expenses Written Off – Rs. 20,000.
Credit: Preliminary Expenses – Rs. 20,000
On 31-3-2018, Half yearly Interest received from ICICI Bank Rs. 14,100.

Credit: Bank Interest – Rs. 14,100
Debit: ICICI Bank - Rs. 14,100.
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On 31-03-2018, Pass a GST Payment entry for the year 2017- 2018.
Click on Stat Adjustment (Alt + S)
Figure 9.49 Statutory Payment

Debit Particulars : SGST – Rs. 90,650.50
Debit Particulars : CGST – Rs. 90,650.50
Debit Particulars : IGST– Rs. 87,588.00
Credit Particulars: ICICI Bank - Rs. 2,68,889
The Screen displays as below
Figure 9.50 GST Payment Voucher

 Press Y or Enter to Accept the voucher
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PROVISION ENTRIES
On 31-3-2018, Pass the necessary provision Entries for the following

Sr Particulars Rs
1No. Salaries to staff 24,000
2 Rent Expenses 15,000
3 Telephone Exp 4,300
4 Electricity Charges 10,200
i. Create Following ledgers

 Salaries to staff Payable under Provisions
 Rent Expenses payable under Provisions
 Telephone Exp payable under Provisions
 Electricity Charges payable under Provisions

Debit: Salaries to staff - Rs. 24,000.
Credit : Salaries to staff Payable - Rs. 24,000.
Credit: Rent Expenses Payable - Rs. 15,000.
Credit: Telephone Exp Payable - Rs. 4,300.
Credit: Electricity Charges Payables- Rs. 10,200.
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DEPRECIATION ENTRIES
On 31-3-2018, Pass Depreciation Entry
Sr. Asset Name Amount Depreciation Depreciation

1No. Computers 60,000 Percentage
60% 36,000
2 Furniture and Fixture 1,00,000 15% 15,000
3 Electrical Fittings 30,000 10% 3000
4 Motor Vehicle (2 wheeler) 80,000 15% 12,000
Total 66,000
i. Create ledger Depreciation (under Indirect Expenses).

ii. Make an entry of the transaction in a Journal Voucher as below.
Debit: Depreciation - Rs. 66,000.
Credit: Computers Rs. 36,000.
Credit: Furniture and Fixture - Rs.15,000.
Credit: Electrical Fittings - Rs.3,000.
Credit: Motor Vehicle - Rs. 12,000.
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ADJUSTMENT ENTRIES
Example : 1
On 31-3-2018, The Company Decided to Value their closing stock on Last Purchase Cost
method.
 Check In F12: Configuration, Set Allow ADVANCED entries in Masters to Yes

under Inventory Masters.
Go to Gateway of Tally > Inventory Info > Stock Items > Single Stock Item Alter >
 Name of Item : Select Computer (I3) from list of Stock items
 In Behaviour Set Costing Method : Last Purchase Cost
 Accept the rest of the fields at default values
Similarly change the costing method of all other stock items
Example : 2
On 31-3-2018, The board of Directors declared a dividend of 10% for the year on equity
share capital.
i. Create ledger Proposed Dividend (under Current Liabilities).

Debit: Profit & Loss A/c (Predefined Ledger) – Rs. 3,00,000.
Credit: Proposed Dividend - Rs. 3,00,000.
Example : 3
On 31-3-2018, The board of Directors decided to transfer the remaining profit to General
Reserve Account.
i. Create ledger General Reserve (under Reserve & Surplus).
Debit: Profit & Loss A/c (Predefined Ledger) - Rs. 16,24,340.62
Credit: General Reserve - Rs. 16,24,340.62
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Trial Balance until March 2018

Particulars 1-Jul-2017 to 31-Mar-2018
Closing Balance
Debit Credit
Reserves & Surplus 16,24,340.62
Equity Share Capital 30,00,000
Loans (Liability) 50,000.00
Unsecured Loans 50,000.00
Current Liabilities 14,87,318.00
Duties & Taxes
Provisions 53,500.00
Proposed Dividend 3,00,000.00
Computers 24,000.00
Furniture and Fixture 85,000.00
Opening Stock
Misc. Expenses (ASSET) 80,000.00
Preliminary Expenses 80,000.00
Sales @ 18% 68,96,400.00
Sales @ 28% 14,78,500.00
Sales CST 18% 10,36,500.00
Sales Export 3,90,000.00
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Purchase CST 5% 5,49,900.00
Purchases @ 18% 64,14,950.00
Purchases @ 28% 11,40,500.00
Wages 2,50,000.00
Forex Gain/Loss 32,500.00
Bank Charges 3,750.00
Depreciation 66,000.00
Electricity Charges 1,00,020.00
Interest on Loan 2,000.00
Preliminary Expenses Written Off 20,000.00
Rent Expenses 1,35,000.00
Profit & Loss A/c 19,24,340.62
Grand Total 1,60,26,658.62 1,60,26,658.62
Figure 9.51 Detailed Trial Balance - Jul 1, 2017 to March 31, 2018
 Press Alt + F2 to Change the Period from July 1, 2017 to March 31, 2018
Volume - II 221
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Lesson 10: Display and Reports
REPORT GENERTION
Balance Sheet
Go to Gateway of Tally > Balance Sheet
The Balance Sheet displays as show.
Click F1 : Detailed for a detailed view of the balance sheet.
Figure 10.1. Balance Sheet

The balance sheet can also be viewed using the following.
 Auto Column (Alt + N)
 New Column (Alt + C)
 F12 Configure (for Vertical Balance sheet)
To view the vertical Balance sheet with percentage
Click F12 : Configuration
 Set Show Vertical Balance Sheet to Yes
 Set Show Percentages to Yes
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 Show Working Capital figures to Yes
Figure 10.2 Vertical Balance Sheet

Click F1 : Detailed for a detailed view of the balance sheet.
Profit and Loss Account

Go to Gateway of Tally > Profit & Loss A/c
The Profit and Balance Sheet displays as show.
Click Alt +F1 : Detailed to view the detailed profit and loss account.
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Figure 10.3. Profit and Loss Account

Day Book
The day book shows the list of transactions for a particular day or period.
Note : Day Book, by default shows the transactions for current date.
To view the day book
Go to Gateway of Tally > Display > Day Book
Figure 10.4 Day Book
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To view the vouchers for different period.

Click F2 : Period : Specify the period e.g. July 1, 2017 to March 31, 2018
Select Particular types of Vouchers
Click F4 : Chg Vch and select contra from list of voucher types displayed
Account Books :
Shows the records of all individual accounts/ledgers.
Cash / Bank Book (s) :

To view the cash/bank summary
Go to Gateway of Tally > Display > Account Books > Cash /Bank Book (s)
Figure 10.5. Cash/Bank Summary

To view the Monthly Summary of Bank Account
Select ICICI Bank and press Enter
Note : Monthly Summary will come with graphical representation (bar graph) by default.
To view Average Details or Show high/Low Details
Select F12 : Configuration
Show Average Details : Yes
Show High / Low Details : Yes
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Ledgers:
To view ledger
Go to Gateway of Tally > Display > Account Books > Select ledger account “Salary to
Staff”
To view a monthly summary, click F7 : Monthly
To switch the ledger, Click F4 : Ledger, Select the ledger account which you wish to view and
press Enter.
Group Summary:
The group summary statement shows the closing balances of the accounts of a selected group
for a specified period up to the current date.
To view group summary
Go to Gateway of Tally > Display > Account Books > Group Summary
Select group. Eg. Select group Current Assets and press Enter.
Click F1 : To view in Detailed
Group Vouchers:
The group voucher features lists all vouchers entered in any ledger of the selected group.
To view group Vouchers,
Go to Gateway of Tally > Display > Account Books > Group Vouchers > Select Group
Select group. Eg. Select group Indirect Expenses and press Enter.
Sales Register :
The Sales Register report displays all the sales vouchers which have been passed.
To view Sales register
Go to Gateway of Tally > Display > Account Books > Sales Register
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Figure 10.6 Sales Register
By default you will get Sales Register with Monthly Summary.
Press Enter in any month

Change Period by Pressing Alt + F2
From 01/07/2017 to 31/03/2018
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Figure 10.7 Sales Register

To view Sales register in Columnar Format
Press F5 : Columnar
Retain the fields as by default and press Enter
Figure 10.8 Sales Register with Columnar
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Journal Register :
The Journal Register report displays all the journal vouchers which have been passed.
To view journal register
Go to Gateway of Tally > Display > Account Books > Journal Register
Figure 10.9 Group Vouchers

Statistics :
The statistics report displays all voucher wise report which have been use while passing the
entries.
To view statistics
Go to Gateway of Tally > Display > Statements of Accounts > Statistics
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Figure 10.10 Statistics

Outstanding:
The outstanding report displays outstanding
 Receivable wise
 Payable wise
 Ledger wise
 Group wise
To view outstanding receivable wise
Go to Gateway of Tally > Display > Statements of Accounts > Outstandings > Receivables
Click F1 : Detailed
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Figure 10.11 Bill Outstanding
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List of Accounts:
The list of accounts display the existing chart of accounts, listed as groups, in alphabetical
order
To view list of accounts,
Go to Gateway of Tally > Display > List of Accounts
Figure 10.12 List of Accounts
 You can drill down to alter the ledger name.
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GST Reports:
To view GST Reports
Go to Gateway of Tally > Display > Statutory Reports > GST
Figure 10.13 GST Reports
GSTR-1:
To view GSTR-1 Reports
Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1
Figure 10.14 GSTR-1 Reports
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GSTR-2:
To view GSTR-2 Reports
Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2
Figure 10.15 GSTR-2 Reports
GSTR-3B:
To view GSTR-3B Reports
Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-3B
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Figure 10.16 GSTR-3B Reports
Challan Reconciliation:
To view Challan Reconciliation
Go to Gateway of Tally > Display > Statutory Reports > GST > Challan Reconciliation
Figure 10.17 Challan Reconciliation
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 You can reconcile your GST Challan by Clicking Alt + S Set Details button
Volume - II 236
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Last Updated: January 2018

Lesson 1 Bill Wise Details in Tally.ERP 9 ...…………………………………………………… 6

1.2 Creation of Company with practice Exercise ....................................................................................... 6

Lesson 2 Price Levels and Price List 22

2.2 Activating Price Lists and Defining Price Levels …………………………....................................... 23

2.3 Creating Price List.....……………………………………………..................................................... 23

Lesson 3 Actual and Bill Quantities ……………………………………………………………. 26

3.2 Activation of Actual and Bill Quantities……………………….......................................................... 26

3.3 Using different Actual and Bill Quantities ……………………………….......................................... 26

Lesson 4 Bill of Material ……………………………….……………………………………...... 28

4.2 Enabling BOM in Tally.ERP 9…………………………………......................................................... 28

4.3 Creation of BOM in Tally.ERP 9…………………………………………......................................... 28

Lesson 5 Stock Valuation / Costing Methods ………………………………………………….. 30

5.2 Stock Valuation…………………………………................................................................................ 30

5.3 Market Valuation…………………………………………………………......................................... 31

Lesson 6 Interest in Tally.ERP 9………………………………………………….. 33

6.2 Interest Styles…………………………………................................................................................ 33

6.3 Practice Exercise………………………………………………………......................................... 33

Lesson 7 Cost Centres in Tally.ERP 9………………………………………………….. 52

7.2 Cost Category…………………………………................................................................................ 52

7.3 Practice Exercise………………………………………………………......................................... 52

Lesson 8 Security Control in Tally.ERP 9………………………………………………….. 74

8.1 Tally Vault……………………………………………...................................................................... 74

8.2 Security Control………………………………................................................................................ 77

8.2.1 Practice Exercise………………………………………………………......................................... 77

Lesson 9 Recording Transaction as Sample Data ……………………………………………... 90

Company Creation and Enabling GST…………………………………………………………………... 92

Transaction for July 2017............................................................................................................................. 95

Transaction for August 2017........................................................................................................................ 115

Transaction for September 2017................................................................................................................... 131

Transaction for October 2017...................................................................................................................... 141

Transaction for November 2017................................................................................................................... 151

Transaction for December 2017................................................................................................................... 165

Transaction for January 2018...................................................................................................................... 176

Transaction for February 2018.................................................................................................................... 187

Transaction for March 2018......................................................................................................................... 202

Provision Entries.......................................................................................................................................... 217

Depreciation Entry............................................................................................................................. ........... 218

Adjustment Entries........................................................................................................................................ 219

Lesson 10 Display and Reports …………………………………………………………………... 222

Lesson 1: Bill-Wise Details in Tally.ERP 9

1.1. Bill Wise Details

Let us make some entries to understand Bill Wise Details

Figure 1.1 Company Creation

Create the following Masters

Ledger Name Under Inventory Values are affected

Ledger Name Under Maintain balances bill-by-bill

Unit of Measure Type Number of decimal places

Name of Item Under Units

1.3.1 New Reference

 Use Common ledger account for item allocation : “No”

Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .

Figure 1.3.1.1 Bill-wise Details for Power Line Computers

Figure 1.3.1.2 Purchase Voucher

Make an entry of the transaction in a Purchase Voucher (Item Invoice Mode) .

Figure 1.3.1.3 Bill-wise Details for Power Line Computers

Figure 1.3.1.4 Purchase Voucher