Question No.1: Write The Steps To: Create Company
Question No.1: Write The Steps To: Create Company
Question No.1: Write The Steps To: Create Company
1 : Write the steps to create a new company in Tally and also explain the all
reliable fields in company creation window.
Answer: Every business has no. of financial transactions, as a human being we could not
remember all of them. To overcome this problem we used to record all business
transactions in books. As technology is developing we are using computers in every area.
Tally is an application package which is used to record and analyze all business transactions
in computer. To work with this package we need Windows operating System in our
computer.
To record transactions in Tally, first we need to create Companies for whose transactions to
be entered. Suppose as a consultant if want to maintain number of companies data, we
need to create separate companies.
1. By Double clicking the Tally Icon on desktop, it opens the Tally screen.
2. The gateway of Tally Screen divides into four areas
o Title area : Shows version No. Date, Time etc.,
o The main area : List of selected Companies etc.,
o Calculator Area : To done mathematical calculations
o Button bar : Displays Commands to be used
3. The names of the companies already created will displays on the main area’s left
part. In the right part of the main area there is a menu called Company Info.
4. Click on Create Company. It will display a dialog box.
5. We have to fill the required fields
6. After entering all the information it will display ‘Accept Yes or No?’ dialog box.
7. Click on Yes Button to save all the information and it will creates the company
1. Directory: Company’s data will be saved in a directory, for this it is required to give
the path of the Data directory. Path is the location of the directory. By default Tally
creates its data directory at C:\Tally\data. We can the change the default path by
pressing backspace key and enter a new path. Internally Tally Names its directories
like 001, 002.
2. Name: Here we have to give the name of the company for whose books are to be
opened. For Eg. XYZ Company Ltd.,
3. Mailing Name and Address: Here we can enter the mailing address of the
company. It can be entered in multiple lines also.
4. E-mail Address: This is optional, if we want we can enter it.
5. Local Sales Tax Number: Here we have to enter the Sales tax number allotted to
the company by the state Govt.( if available)
6. Inter state Tax Number: Type the number if available which was allotted by
Central Govt..
7. Income tax Number: Type the number allotted by the Central Govt to the
company if it available.
8. Currencey Symbol: Type the base currency symbol like Rs. $ etc. In India it will be
Rs.
9. Maintain: We can maintain two types of Accounts
o Accounts Only: To maintain Accounts Transactions only
o Accounts-cum-Inventory: To maintain the Inventory transaction as well as
Accounts transactions.
10. Financial Year from: Type the Financial Year of the country for Eg: 2005-06
11. Books beginning from: Tally assumes that this period will be the same as Financial
Year , if we want we can change it. Suppose company books begins from July 2006,
then the date will be 01-07-2006.
12. Tally Valut Password: To avoid unauthorized persons to operate/enter and view
our company transactions we can maintain data in encrypted form(Unrecognizable
form). By typing the password authorized persons only can view and record/enter
the information. As administrator we have give the Password for it.
13. Use Security Control: We can define and maintain security control layers by
classifying the Supervisor rights and normal user rights. Type Yes to maintain
Security control , other wise Type No.
14. Basic Currency Info: In this area we have to enter currency formal name, Decimal
Points etc., information
1. Capital Account
2. Current Assets
3. Indirect Expenses
4. Direct Expenses
5. Bank account
6. Bank OCC account
7. Fixed Assets
8. Current liabilities
Answer:
In manual accounting grouping is need to be done after figures of transaction (Vouchers)
have been posted to the ledger accounts and balance drawn (Trial Balance).
In Tally by default it creates 15 groups; they are called as Reserved Groups (some are
divided into sub groups)
Capital Account
This group holds the Capital and Reserves of the company. The following ledgers that may
be opened under this group are
Share Capital A/c [When the firm is Company]
Partners' Capital A/c [When the firm is Partner-ship firm,
Proprietor's Capital A/c [When the firm is proprietary ship based]
Reserves and Surplus A/c [also called as Retained Earnings]
Capital Reserve A/c, General Reserve A/c, Reserve for Depreciation A/c, etc.
Current Assets
This Group holds the current assets ledgers other than Bank Accounts, Cash in Hand
For Eg: Loan & Advances (assets)
Deposits (Assets)
Stock-in-hand
Indirect Expenses
This group holds all the Administrative, selling & distribution Expenses Accounts. These
expenses are generally shows in Debit side of Profit & Loss account.
For Eg. Depreciation A/c,
Rent, Rate & taxes A/c ,
Insurance charges A/c,
Printing & stationery A/c,
Repairs & Maintenance (Admn) A/c,
Traveling and conveyance A/c.
Salaries Payable A/c
Direct Expenses
This group holds all the Trade A/c Expenses; it determines the gross profit / gross loss of
the company
For Eg: Wages A/c,
Factory Light A/c,
Frieght & Octroi A/c,
Carriage inwards A/c,
Bank account
Fixed Assets
Current liabilities
Answer
Contra Voucher
This voucher is used to enter funds transfer transactions between cash & banks. Function
key F4 is the short cut key
For Eg: To Deposit cash Rs. 5000/- in Bank
Ledger Debit Rs Credit Rs.
Bank A/c 5000.00
Cash A/c 5000.00
This voucher is used to make payment to the parities through cash and bank. Function key
F5 is the short cut key
For Eg: Paid Rs. 4300/- as Insurance Charges through HDFC Bank
Ledger Debit Rs Credit Rs.
Insurance Charges A/c 4300.00
HDFC Bank A/c 4300.00
This voucher is used to record the cash/ bank receipts ( receipts from debtors). Function
Key F6 is the shortcut key
For Eg: Rs. 450000 received from Philips Co. Ltd., against our sales through cheque and it
has been deposited in HDFC Bank
Ledger Debit Rs Credit Rs.
HDFC Bank A/c 450000.00
Philips Co. Ltd., A/c 450000.00
This voucher is used to record all sales transactions. Function key F8 is the shortcut key.
For Eg. Rs.830000 worth sales done on credit to Manohar & Company
Ledger Debit Rs Credit Rs.
Manohar & Company A/c 830000.00
Sales A/c 830000.00
Delete a ledger
Modify a voucher
Create an user
Delete a voucher
Alter company information
Answer:
Delete a ledger : We can delete the legers by using the following steps:
Create an user : When we are maintaining security layers we should create users and allot
the rights to them
The steps to create users are:
VAT is a simple transparent tax collected on sales of goods. The states and
union territories of India have decided to implement VAT in place of sales tax and a
number of other state taxes. VAT is a multi-stage tax levied at each stage of the
value addition chain, with a provision to allow Input Tax Credit (ITC) on tax paid at
an earlier stage, which can be appropriated against the VAT liability on subsequent
sale. VAT is intended to tax every stage of sale where some value is added to raw
materials, but taxpayers will receive credit for tax already paid on procurement
stages. Thus, VAT will be without the problem of double taxation as prevalent in the
present tax laws. Presently VAT is followed in over 120 countries. One of the many
reasons underlying the shift to VAT is to do away with the distortions in our existing
tax structure that carve up the country into a large number of small markets rather
than one big common market. In the present sales tax structure tax is not levied on
all the stages of value addition or sales and distribution channel which means the
margins of distributors/ dealers/ retailers et al are not subject to sales tax at
present. Thus, the present pricing structure needs to factor only the single point
levy component of sales tax and the margins of manufacturers and dealers/
retailers etc, are worked out accordingly. Under the VAT regime, due to multi-point
levy on the price including value additions at each and every resale, the margins of
either the re-seller or the manufacturer would be reduced unless the ultimate price
is increased.
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