COMPUTERISED ACCOUNTING SYSTEM THEORY

Computerized Accounting System

Answer
Introduction
Tally is an accounting software developed by Tally Solution Limited Company.
Which is used to record and keep the financial transactions of a company, trust or
financial transaction institution from computer. So that the financial status of the
business will be known.

Full form of Tally –

Transactions Allowed in a Linear Line Yard

Versions of Tally
1. Tally 3.0 (1990) – Basic Accounts for Small Business (DOS based)
2. Tally 3.12 (1991) – Similar to Tally 3.0 with few updates (DOS based)
3. Tally 4 (1992) – Similar to Tally 3.12 with updates (DOS based)
4. Tally 4.5 (1994) – Accounts only (DOS based)
5. Tally 5.4 (1996) – Accounts with Inventory (Graphic Interface)
6. Tally 6.3 (2001) – Accounts with Inventory (Window based, Print facility)
7. Tally 7.2 (2005) – Accounts with Inventory, VAT, TDS, Service Tax
8. Tally 8.1 (2006) – Payroll, Excise Duty, Job Costing, POS
9. Tally 9 (2006) – VAT Computation, FBT, TCS
10.Tally ERP 9 (2009) – Remote Access, Multi language, GST
 Tally ERP 9 is the latest version of Tally since 2009. It is being used by the
trade organization. It has advanced features including GST computation,
invoicing and payroll processing, remote access, multi-user login and
transaction processes.
Download Tally erp 9 - https://tally-erp-9.en.softonic.com/
11.Tally Prime (2020) – This is the latest version of Tally. New features are QR
Code, E-invoice, E-Way Bill, Multi Printing, Bank Cancellation update,
Oman VAT, e-payment as well as user friendly interface.
Downloading and Installation of Tally Prime
https://tallysolutions.com/download/
 TALLY ERP 9

Short Cut Key Description

F2 (No Shortcut keys with no underline means only the displayed key
underline) is the shortcut key of the function. Eg: F2
F1 (Single Shortcut keys with single underline means ALT is the additional
underline) key used with the function key displayed. Eg: Alt+F1
F8 (Double Shortcut keys with double underline means CTRL is the
underline) additional key used with the function key displayed. Eg:
Ctrl+F8
Display Hot keys are single alphabetical keys to access the menu in
Tally. There is one letter which is red in color when navigated.
For going back – Press Esc

1. Selecting a Company (if already made)

Answer
Gateway of Tally > Alt + F1 or Alt + F3 > Company Info > Create Company

Short cut – F1
Laptop – Fn (Function Key) + F1

2. Creating a Company
Answer
Gateway of Tally – Alt + F1 or Alt + F3
Company Info. – Create Company
3. Alter or Change in a Company
Answer
Gateway of Tally – Alt + F3 – Alter –
In list of companies – Select the company – Enter

4. Deleting a Company
Answer
Gateway of Tally – Alt + F3 – Alter –
In list of companies – Select the company – Enter – Alt + D

5. Features and Configure Settings

Answer
Features settings
F11 – Company Features – Accounting Features, Inventory Features, etc.
Configure settings
F12 – Configuration – General, Numeric Symbol, etc.

6. Creating Accounting Ledgers and Groups

Creating Accounting Ledgers
Gateway of Tally – Masters – Account Info. – Ledger –
Single Ledger –
Create – To create new single ledger
Display – To see ledgers made already
Alter – To make changes in single ledger made already
Multiple Ledgers –
Create – To create new multiple ledgers
Display – To see ledgers made already
 Alter – To make changes in multiple ledgers made already
Creating Accounting Groups
Gateway of Tally – Masters – Account Info. – Groups –
Single Group –
Create – To create new single group
Display – To see groups made already
Alter – To make changes in single group made already
Multiple Groups –
Create – To create new multiple groups
Display – To see groups made already
Alter – To make changes in multiple groups made already

7. Creating Stock Items and Stock Groups

Creating Stock Groups
Gateway of Tally – Masters – Inventory Info. – Stock Groups –
Single Stock Group –
Create – To create new single stock group
Display – To see stock groups made already
Alter – To make changes in single stock group made already
Multiple Stock Groups –
Create – To create new multiple stock groups
Display – To see stock groups made already
Alter – To make changes in multiple stock groups made already
Creating Stock Items
Gateway of Tally – Masters – Inventory Info. – Stock Items –
Single Stock Item –
Create – To create new single stock item
 Display – To see stock items made already
Alter – To make changes in single stock items made already
Multiple Stock Items –
Create – To create new multiple item groups
Display – To see stock items made already
Alter – To make changes in multiple stock items made already

8. Voucher Entry
Answer
Gateway of Tally – Transactions – Accounting Vouchers –
F4 = Contra – For Cash A/C to Bank A/C, Bank A/C to Cash A/C, Bank A/C to
Bank A/C.
F5 = Payment – For payments in cash or by cheque.
F6 = Receipt – For receipts in cash or by cheque.
F7 = Journal – For entries not covered in others.
F8 = Sales – For credit sale of goods in which company deals.
F8 = Credit Note (Ctrl + F8) – For Sales Return.
F9 = Purchase - For credit purchase of raw materials/goods to be used in production.
F9 = Debit Note (Ctrl + F9) – For Purchase Return.
F10 = Reversing Journal – These are special journals that are automatically reversed
after a specified date.
F10 = Memo (Ctrl + F10) – Memorandum Voucher – This is a non-accounting
voucher and the entries made using memo voucher will not affect your accounts.
9. Generating Reports – Cash Book, Ledger Accounts, Trial Balance, Profit and
Loss Account, Balance Sheet, Funds Flow Statement, Cash Flow Statement
Answer
Gateway of Tally – Reports –
Balance Sheet
Profit & Loss A/C
Stock Summary
Ratio Analysis

10. Shutting a Company

Answer
Gateway of Tally – Alt + F3 – Company Info. – Shut Company – Select Company
– Enter

11. Back-up and Restore Data

Answer
Gateway of Tally – Alt + F3 –
Back up – Select companies for back up
Restore – Select companies for restore
COMPUTERISED ACCOUNTING SYSTEM PRACTICAL

Question 1

The following balance sheet has been prepared from the books of Baba Bright
on 1-4-2020.

Liabilities Amount Assets Amount

Capital 2,26,000 Machinery 1,00,000
Sundry Creditors: Furniture 10,000
Ramesh A/C 24,000 Stock 20,000
Sundry Debtors:
Shankar A/c 50,000
Cash in hand 15,000
Cash at bank 55,000
2,50,000 2,50,000

During the year the following transactions took place:

1. Wages paid by cash ₹ 2,000

2. Furniture bought by cheque ₹ 5,000
3. Cash purchases made for ₹ 3,000
4. Good purchased on credit from Gendamal ₹ 15,000
5. Goods sold on credit to Pusha ₹ 25,000
6. Payment made to Gendamal by cheque ₹ 5,000
7. Cash received from Shankar ₹ 30,000
8. Cash sales made for ₹ 6,000
 9. Depreciate machinery at 10%
10.Payment made to Ramesh by Cheque ₹ 4,000

You are required to prepare trading and profit and loss account for the year
ended 31-03-2021 and a balance sheet as on that date using Tally.

Answer

Following steps are to be followed to enter the transactions in Tally.ERP 9

1. To create company

Gateway of Tally > Company Info > Create Company

Type the Name as Baba Bright and keep all other fields as they are and choose ‘Yes’
to accept.

2. To maintain accounts only

Gateway of Tally > F11 Accounting Features > General > Maintain accounts only:
Yes > Accept Yes

3. To create ledger accounts with opening balances

Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Create

Ledgers for Balance Sheet Items

Name Under Opening Balance

Capital A/C Capital Account 2,26,000

Ramesh A/C Sundry Creditors 24,000

Machinery A/C Fixed Assets 1,00,000

Furniture A/C Fixed Assets 10,000

Opening Stock A/C Stock-in-hand 20,000

Shankar A/C Sundry Debtors 50,000

Cash in hand Cash-in-hand 15,000

Cash at bank Bank Account 55,000

Ledgers for Transactions Items

Name Under

Wages A/C Direct Expenses

Rent A/C Indirect Expenses

Purchases A/C Purchases Accounts

Gendamal A/C Sundry Creditors

Sales A/C Sales Accounts

Pushpa A/C Sundry Debtors

Depreciation A/C Indirect Expenses

Entries of Transactions

S. No. Voucher Entry Dr. Cr.

Type
1 Payment F5 Wages A/C Dr. 2,000
To Cash A/C 2,000
2 Payment F5 Furniture A/C Dr. 5,000
To Bank A/C 5,000
3 Payment F5 Purchase A/C Dr. 3,000
To Cash A/C 3,000
4 Purchase F9 Purchase A/C Dr. 15,000
To Gendamal A/C 15,000
5 Sales F8 Pushpa A/C Dr. 25,000
To Sales A/C 25,000
6 Payment F5 Gendamal A/C Dr. 5,000
To Bank A/C 5,000
7 Receipt F6 Cash A/C Dr. 30,000
To Shankar A/C 30,000
8 Receipt F6 Cash A/C Dr. 6,000
To Sales A/C 6,000
9 Journal F7 Depreciation A/C Dr. 10,000
To Machinery A/C 10,000
10 Payment F5 Ramesh A/C Dr. 4,000
To Bank A/C 4,000
Question 2

Mental & Co. Ltd. gives you the following transactions. Journalise the following
transactions in Tally software.

1. Started business with cash by Tenali ₹ 15,000

2. Bought goods for cash ₹ 1,000
3. Bought goods from A ₹ 3,000
4. Sold to B ₹ 4,000
5. Paid A on account ₹ 2,000
6. Bought goods from P for cash ₹ 7,000
7. Received from B cash in full settlement ₹ 3,880
8. Returned to P goods worth ₹ 200
9. Paid salaries ₹ 700
10.Received from G a ₹ 5,000 and gave him the change for it
11.Commission received on sale of other goods ₹ 500
12.Deposited with the bank ₹ 2,000
13.Paid rent by cheque ₹ 100
14.Withdrawn for personal use goods ₹ 300 and cash ₹ 200

Answer

Following steps are to be followed to enter the transactions in Tally.ERP 9

1. To create company

Gateway of Tally > Alt + F1 or Alt + F3 > Company Info > Create Company

Type the Name as Mental & Co. Ltd. and keep all other fields as they are and choose
‘Yes’ to accept.
2. To maintain accounts only

Gateway of Tally > F11 Features > Accounting Features > General > Maintain
accounts only: Yes > Accept Yes

3. To use multiple entry mode

Gateway of Tally > F12 Configure > Voucher Entry > Use single entry mode for
pmnt/rcpt/contra > No > Accept

4. To use Cr/Dr instead of To/By

Gateway of Tally > F12 Configure > Voucher Entry > Use Cr/Dr instead To/By
during entry >

No = To/By Yes = Cr/Dr

5. To create ledger accounts

Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Create

Ledgers for Transactions Items

Name Under

Tenali’s Capital A/C Capital Account

Purchases A/C Purchases Accounts

A’s A/C Sundry Creditors

Sales A/C Sales Accounts

B’s A/C Sundry Debtors

Discount Allowed A/C Indirect Expenses

P’s A/C Sundry Creditors

Purchase Return A/C Purchases Accounts

Salaries A/C Indirect Expenses

Commission Received A/C Indirect Income

Bank A/C Bank A/C

Rent A/C Indirect Expenses

Drawing A/C Capital A/C

Entries of Transactions

S. No. Voucher Entry Dr. Cr.

Type
1 Receipt F6 Cash A/C Dr. 15,000
To T’s Capital A/C 15,000
2 Payment F5 Purchase A/C Dr. 1,000
To Cash A/C 1,000
3 Purchases F9 Purchase A/C Dr. 3,000
To A’s A/C 3,000
4 Sales F8 B’s A/C Dr. 4,000
 To Sales A/C 4,000
5 Payment F5 A’s A/C Dr. 2,000
To Cash A/C 2,000
6 Payment F5 Purchases A/C Dr. 7,000
To Cash A/C 7,000
7 Receipt F6 Cash A/C Dr. 3,880
Discount Allowed A/C Dr. 120
To B’s A/C 4,000
8 Debit Note F9 P’s A/C Dr. 200
To Purchase Return A/C 200
9 Payment F5 Salaries A/C Dr. 700
To Cash A/C 700
10 NO ENTRY
11 Receipt F6 Cash A/C Dr. 500
To Comm. Received A/C 500
12 Contra F4 Bank A/C Dr. 2,000
To Cash A/C 2,000
13 Payment F5 Rent A/C Dr. 100
To Bank A/C 100
14 Payment F5 Drawings A/C Dr. 500
To Purchases A/C 300
To Cash A/C 200
Question 3

KGF Ltd. gives you the following transactions. Journalise the following
transactions in Tally software.

1 Yash Commenced business with: Cash 3,00,000

Bank 1,00,000

Buildings 5,00,000

2 Purchased goods from A and Co. and payment made through credit card
Shirts 500 @ 100

T-Shirts 1,000 @ 50

3 Cash deposited into bank 1,50,000

4 Purchased goods from B and Co. on credit

Sarees 100 @ 200

Suits 200 @ 150

5 Paid B and Co. through RTGS on full settlement 49,500
6 Sold goods to C and Co. and cheque received

Shirts 200 @ 200 T-Shirt 500 @ 100

Sarees 50 @ 300 Suits 100 @ 250

7 Deposited the cheque received from C and Co. with the bank 1,00,000

8 Goods returned to A and Co. T-Shirts 100 @ 50

9 Stationery purchased for and paid through net banking 6,000

10 Yash withdrew from bank 20,000 for personal use.

Answer

Following steps are to be followed to enter the transactions in Tally.ERP 9

1. To create company

Gateway of Tally > Alt + F1 or Alt + F3 > Company Info > Create Company

Type the Name as KGF Ltd. and keep all other fields as they are and choose ‘Yes’
to accept.

2. To maintain accounts and inventory (stock)

Gateway of Tally > F11 Features > Accounting Features > General >

Maintain accounts only: No

Integrated accounts and inventory: Yes Ctrl + A

3. To use purchase return and sales return

Gateway of Tally > F11 Features > Accounting Features > General >

Use debit/credit notes: Yes Ctrl + A

4. To use multiple entry mode

Gateway of Tally > F12 Configure > Voucher Entry > Use single entry mode for
pmnt/rcpt/contra > No > Accept Ctrl + A

5. To use Cr/Dr instead of To/By

Gateway of Tally > F12 Configure > Voucher Entry > Use Cr/Dr instead To/By
during entry >
 No = To/By Yes = Cr/Dr Ctrl + A

6.. To create ledger accounts

Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Create

Ledgers for Transactions Items

Name Under

Yash’s Capital A/C Capital Account

Purchases A/C Purchases Accounts

A & Co. A/C Sundry Creditors

Sales A/C Sales Accounts

B & Co. A/C Sundry Creditors

Discount Received A/C Indirect Income

C & Co. A/C Sundry Debtors

Purchase Return A/C Purchases Accounts

Stationery A/C Indirect Expenses

Building A/C Fixed Assets

Bank A/C Bank A/C

Drawing A/C Capital A/C

 Cheque-in-Hand Cash in hand

Stock Groups, Stock Units and Stock Items

Stock Groups
Gateway of Tally – Masters – Inventory Info. – Stock Groups –
Single Stock Group –
Create – To create new single stock group
Multiple Stock Groups –
Create – To create new multiple stock groups
1. Name: Men’s wear
Under: Primary
Should quantities of items be added: Yes
2. Name: Women’s wear
Under: Primary
Should quantities of items be added: Yes

Stock Units
Gateway of Tally – Masters – Inventory Info. – Units of measure –
Create – To create new single unit
Display – To see units made already
Alter – To make changes in single unit made already
1. Type: Simple
Symbol: Pcs
Formal name: Pieces
Number of decimal places: 0
Stock Items
Gateway of Tally – Masters – Inventory Info. – Stock Items –
Single Stock Item –
Create – To create new single stock item
Multiple Stock Items –
Create – To create new multiple item groups
1. Name: Shirts 2. Name: T-Shirts
Under: Men’s wear Under: Men’s wear
Units: Pcs Units: Pcs
3. Name: Sarees 4. Name: Suits
Under: Women’s wear Under: Women’s wear
Units: Pcs Units: Pcs

Short Cut Keys

Buttons Short Cut Keys Description & Use

C: Category Ctrl+C Allows you to Create a Stock Category.

I: Items Ctrl+I Allows you to Create a Stock Item.

U: Units Ctrl+U Allows you to Create a Unit of Measure.

O: Godown Ctrl+O Allows you to Create a Godown

V: Vch
Ctrl+V Allows you to Create a Voucher Types
Types
Entries of Transactions

S. No. Voucher Entry Dr. Cr.

Type
1 Receipt F6 Cash A/C Dr. 3,00,000
Bank A/C Dr. 1,00,000
Building A/C Dr. 5,00,000
To Yash’s Capital A/C 9,00,000
2 Payment F5 Purchase A/C Dr. 1,00,000
To Bank A/C 1,00,000
3 Contra F4 Bank A/C Dr. 1,50,000
To Cash A/C 1,50,000
4 Purchase F9 Purchase A/C Dr. 50,000
To B’s A/C 50,000
5 Payment F5 B’s A/C Dr. 50,000
To Bank A/C 49,500
To Disc. Received A/C 500
6 Receipt F6 Cheque-in-hand A/C Dr. 1,30,000
To Sales A/C 1,30,000
7 Receipt F6 Bank A/C Dr. 1,00,000
To Cheque-in-hand A/C 1,00,000
8 Debit Note F9 A’s A/C Dr. 5,000
To Purchase Return A/C 5,000
9 Payment F5 Stationery A/C Dr. 6,000
To Bank A/C 6,000
10 Payment F5 Drawing A/C Dr. 20,000
To Bank A/C 20,000