Company Acc
Company Acc
Company Acc
2018-19
Blank
2018-19
ACCOUNTANCY
2018-19
First Edition
Reprinted
PD 15T HK
Rs 180.00
ISBN 978-93-5007-026-0
q This book is sold subject to the condition that it shall not, by way of
which it is published.
q The correct price of this publication is the price printed on this page,
DIVISION, NCERT
NCERT Campus
P.O.Navjivan
CWC Campus
Panihati
Kolkata 700 114 Phone : 033-25530454
CWC Complex
Maligaon
Publication Team
Division
Manager
Officer (Incharge)
Cover
Karan Chadha
watermark
2018-19
FOREWORD
children’s life at school must be linked to their life outside the school.
which continues to shape our system and causes a gap between the
the basis of NCF signify an attempt to implement this basic idea. They
The success of this effort depends on the steps that school principals and teachers will take to encourage
children to reflect on their
must recognise that, given space, time and freedom, children generate
adults. Treating the prescribed textbook as the sole basis of examination is one of the key reasons why
other resources and sites of learning
are ignored. Inculcating creativity and initiative is possible if we perceive and treat children as
participants in learning, not as receivers of
rigour in implementing the annual calendar so that the required number of teaching days are actually
devoted to teaching. The methods
used for teaching and evaluation will also determine how effective this
textbook proves for making children’s life at school a happy experience, rather than a source of stress of
boredom. Syllabus designers
have tried to address the problem of curricular burden by restructuring and reorienting knowledge at
different stages with greater consideration for child psychology and the time available for teaching. The
and space to opportunities for contemplation and wondering, discussion in small groups, and activities
requiring hands-on experience.
appreciates the hard work done by the textbook development committee responsible for this book. We
wish to thank the Chairperson of the
Chief Advisor for this book, Professor G.C. Maheshwari, Dean, Institute
2018-19
vi
We are indebted to the institutions and organisations which have generously permitted us to draw upon
their resources, material and personnel. We are especially grateful to the members of the National
Monitoring Committee, appointed by the Department of Secondary and Higher
for their valuable time and contribution. As an organisation is committed to the systemic reform and
continuous improvement in the quality of its products, NCERT welcomes comments and suggestions
which
Director
2018-19
Calcutta, Kolkata
CHIEF ADVISOR
G.C. Maheshwari, Professor and Dean, Faculty of Management Studies, M.S. University, Baroda,
Vadodara, Gujarat
MEMBERS
Delhi
Ghaziabad, U.P.
MEMBER-COORDINATOR
2018-19
ACKNOWLEDGEMENT
Technology, Ghaziabad and Dr. Surrender Kumar, Reader, PGDAV College, Delhi
Special thanks are due to Savita Sinha, Professor and Head, Department of
Education in Social Sciences, NCERT for her support, during the development of
this book.
We are thankful to Microsoft Inc. and Tally Solutions for permitting us to use
DTP Operators, Anil Sharma and Basudev Tripathy; and Copy Editor, Mrs. Mamta
Gaur.
2018-19
CONTENTS
Foreword v
CHAPTER 2 SPREADSHEET 17
2018-19
Blank
2018-19
OVERVIEW OF
COMPUTERISED
ACCOUNTING SYSTEM
Introduction
able to:
Computerised Accounting
System.
Information Technology on
functions of Accounting
perform a task.
business application.
People : Users.
software.
2018-19
• Day books/Journals
• Ledger
• Trial Balance
2018-19
We may observe (Figure 1.3) how data (days worked and rate per day)
pay). The information may be viewed as data at one level; and when it
are as follows:
balance.
computers.
Figure 1.3
2018-19
cost-effectively.
1.3.2 TRANSPARENCY AND CONTROL
1.3.4 SCALABILITY
the change in the size of the business. The software can be used for
1.3.5 RELIABILITY
Accounting Equation
A=E
Where E = L + C
Now A = L + C
Where A = Assets
2018-19
E = Equities
C = Capital
L = Liabilities
and the Capital means claims of owners. The claims of owners keep on
accounts as follows:
Shareholder’s Funds
Share Capital
Current Liabilities
Trade Payables
Revenue Revenue means inflow of resources, which results from the sale of goods or
2018-19
• ASSETS
1. Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
2. Current Assets
Current Investments
Inventories
Trade Receivables
• REVENUES
Sales
Other Income
• EXPENSES
Material Consumed
Manufacturing Expenses
Depreciation
Administrative Expenses
Interest
neatness of classification.
1.4.1 CODIFICATION OF ACCOUNTS
of letter or figure with arbitrary meaning for brevity and for machine
2018-19
Method of Codification
For example, we may allot the codes for top-level grouping of accounts
2 Assets
3 Revenues
4 Expenses
14 Current Liabilities
23 Current Assets
Note: The gap in code in the 2nd digit 2nd digit2nd digit (e.g. after 1, 3 instead of 2) is used to provide
flexibility.
account codes are listed in ascending (i.e. increasing) order, these will
For examples:
CODES ACCOUNTS
2018-19
CODES DEALER-TYPE
100 - 199 Small Pumps
such as DLH for Delhi, NDLS for New Delhi, BRC for Baroda, etc.
Stream. A class may be divided into more than one section when the
2018-19
above considerations:
School 2 Digits
Entry-year 2 Digits
Stream 1 Digit
Class 2 Digits
Section 1 Digit
Student 2 Digits
get the following details of a student right from the code itself :
• What were the class and its section and in which year the student
• List of all students who has entered a school in a given year, etc.
of code becomes easy. For example, if a student with a Roll No. 54 had
entered Section-B of Class XII in Year 2008 opting for Science Stream
06 08 1 12 2 54
School Code
2018-19
10
There are two basic activities in using software of CAS – One time activities
• Password Security
• Data Audit
• Data Vault
Data Audit: This feature enables one to know as to who and what
changes have been made in the original data thereby helping and fixing
the responsibility of the person who has manipulated the data and also
encryption.
Password PasswordPassword is the key (code) to allow the access to the system.
2018-19
11
It deals with the receipt and payment of cash both physical cash and
having the physical entry or exit of cash by using the credit cards or
electronic banking.
2018-19
12
receivables/debtors.
provident fund, taxes, loans, advances and other charges. The system
etc. it also generates reports about the cost, depreciation, and book
others.
(VAT), excise, customs and income tax. This sub-system used in large
size organisation.
This subsystem deals with the preparation of Profit and Loss accounts,
2018-19
13
It deals with the preparation of budget for the coming financial year as
Summary
(RAM), Monitor (Screen), Keyboard, Mouse, Hard Disk and CD/DVD for mass
confidentiality of data.
(b) data loss due to either power interruptions or damage to hard disk,
such as: (i) cash sub-system, (ii) sales and accounts receivable sub-system,
(ix) final accounts sub-system, (x) costing sub-system, (xi) budget sub-system,
2018-19
14
EXERCISES
(a) Printing of Balance Sheet and Profit and Loss Accounts using computer;
accounting system;
2018-19
15
(b) Collect data, organise and process data, and communicate information
11. What is a firm’s payment to a supplier for merchandise inventory recorded in?
12. Where are amounts owed by customers for credit purchases found?
useful?
2018-19
16
6. Explain various types of coding methods and the situations where each coding
method is best suited?
7. Define the term transaction and elaborate with the help of examples how the
Do this exercise in the class forming group of 4 students to form a team and
information: There are around 7000 items, which are grouped under 37 major
exceed 1000.
ANSWERS
1. b 2. b 3. a 4. a 5. b 6. a
2018-19
SPREADSHEET
Introduction
features.
(i.e. a formula).
Figure 2.1
2018-19
18
a new one or can save the workbook or can print which were earlier
name will be shown in bold letters in the “Sheet Tab” at the bottom left
follows:
V=Q×P
chapter.
2018-19
Spreadsheet
19
Figure 2.3
Figure 2.2 at row 1 and column (A). When we start Excel, the pointer
(cursor) points to the first cell, i.e. A1, and this cell is called the Active
Cell. We can move around a worksheet through four arrow keys (i.e.
left, right, up, down as shown in Figure 2.4). For example, the cell
identified by the cell references of the cells in the upper left (cell A1)
and lower right (cell E2) corners in Figure 2.3. The ranges are identified
using colon (:) e.g. A1: E2 which tells Excel to include all the cells
change to reflect the new location. The other cell reference is absolute
cell reference which consists of the column letter and row number
other cells, the cell references in the formula or function do not change.
2018-19
20
Movement Movement Key Stroke (Press key) Key Stroke (Press key)
The other navigational and operational strokes are used for faster
cursor movement than one cell at a time with cluster of filled cells.
Figure 2.4
The data that is entered in a cell may be either numeric or alphanumeric or a date. As a data is typed in a
cell, Excel is able to make
Movement Movement Key Stroke (Press key) Key Stroke (Press key)
Top of Worksheet (cell A1) CTRL + HOME (i.e. Keep CTRL key
Moving consecutively to the first and the last CTRL + Right arrow key ( ) or
filled cells of clusters of filled cells in a row by else END + Right arrow key ( )
successive pressing of CTRL + Right arrow
Moving consecutively to the first and the last CTRL + Down arrow key ( ) or
filled cells of a cluster of filled cells in a column else END + Down arrow key ( )
2018-19
Spreadsheet
21
Values
The value rule according to computer scientist Alan Kay Alan KayAlan Kay implies in
that user has typed into the cell. The formula may rely on the value of
other cells, but those cells are likewise restricted to user-entered data
or formulas. There are no ‘side ef ‘side ef‘side effects’ to calculating a formula: the
only output is to display the calculated result inside its occupying cell.
of a cell unless the user manually modifies the cell’s contents. Sometime
deposit. The first step (i.e. the Planning Step) is to define six cells with
column headings:
as follows:
Figure 2.5
Figure 2.6
2018-19
22
CI= MA – PA
It may be observed that the basic values are entered in cells (as in
figure 2.6 the cells are B4, C4 and D4); the derived values (as in Figure
2.6 the cells are E4 and F4) are automatically computed (using above
formula) and shown in formula bar. In case any basic values are
examine the cause (if) and effect (what). Thus, it helps in analysing the
the above example, if all the other values are kept same, one can see
2.1.1 LABELS
with A-Z e.g., in the above Figure 2.6 Principal Amount, Rate of
2.1.2 FORMULAS
must start with an = sign (equal to sign), e.g. in the Figure 2.7 the cell
other cells. Such a cell reference is a type of variable. Its value is the
value of the referenced cell or some derivation of it. If that cell in turn
2018-19
Spreadsheet
23
components; the formula itself and the resulting value. The formula is
shown only when the cell is selected by “clicking” the mouse over a
The arithmetic operations and complex nested conditional (whatif scenario) if scenario) operations can
be performed by spreadsheets which follow
2.1.3 FUNCTIONS
brackets.
Figure 2.8(a)
Computer math uses the rules of Algebra. Any operation(s) contained in brackets .
importance, and carries out these operations in the order they occur left to right
in the equation.
The same goes for the next two operations – addition and subtraction. They are
considered equal in the order of operations. Whichever one appears first in an
Three easy ways to remember the order of operations is to use the acronym:
2018-19
24
when we click with the mouse on it; a function offers assistance and
function directly into the formula bar. A function involves four main
issues:
argument(s) in order to
containing numbers (or blank but not text) and return either the
arithmetic total of the numbers, the average mean value or the quantity
For Example: The SUM or AutoSum () function is the most basic
and one of the common user functions. It is used to get the addition of
2.9(a)) the AutoSum () button can be use directly for summation of
values from cells. Once we click the AutoSum () at cell H1, the function
adds the contents of cell range D1 to G1 and displays the answer that
we want to get the sum of. If we want answer in the cell G5 (Figure
2.9(b) use the mouse to click in the cell G5 and click AutoSum button
then from keyboard type range of the cells D1:G1; the answer 17 will
SUM (D1: G1) appears in the formula bar above the worksheet. The
Figure 2.8(b)
2018-19
Spreadsheet
25
There are twelve different categories of functions available in Excel
2007 displayed on the ribbon (Figure 2.8) which are classified as per
the usage e.g. The Financial, Date and Time, Lookup and References,
complex nested conditional (what-if scenario) (what-if scenario) using name ranges,
(Figure 2.10)
= SUM (Numbers)
Behind the Numbers Numbers Numbers Excel is hiding cell references, we will see how
it works now.
follows:
Figure 2.10
Figure 2.10(a)
2018-19
26
“Numbers”.
Figure 2.10(d)
Figure 2.10(f)
Figure 2.10(e)
Figure 2.10(g)
Figure 2.11
(Monthly_Totals).
2018-19
Spreadsheet
27
= Total_of_Month – Total_of_Tax .
required:
1. Select the cell (s) that contains the
Special.
IF (logical_test, value_if_ture,
value_if_false) where
Figure 2.11(a)
Figure 2.11(b)
Figure 2.11(c)
Figure 2.11(d)
2018-19
28
logical operator “less than”. (There are many more logical operators
e.g. i. = IF( A1 < 20, “Yes”, “No”) this function will return Yes if cell
ii. = IF (C2 > B2, (C2+D2)/2, (B2+D2)/2) this function will compare
both cell C2 > B2 and will calculate and return (C2+D2)/2 if it
the basis of percentage value (Cell address “saving”) shown in figure 2.12(a)
2. Click at the Formula tab on the ribbon and click logical option.
(Figure 2.12(b).
Figure 2.12(a)
2018-19
Spreadsheet
29
(B2:B6), 0)
will return to 0.
the same type of value that the argument uses. For example, if the
Such as :
e.g. Suppose E2 cell contains marks of a test and cell F2 will have
“A Grade”)
Figure 2.12(b)
Figure 2.13
2018-19
30
b. Mathematical Function.
f. Financial Function.
function’s name that appears in the strip (as shown in the figure 2.14).
We will learn some of the useful function with the help of examples.
TODAY – Returns the serial number of the current date. The serial
number is the date-time code used by Excel for date and time
(Figure 2.15).
39919.
Figure 2.14
2018-19
Spreadsheet
31
such as:
1. SUMIF is the function which adds the cells as per given specified
sum of depreciation for those Asset Values which are more than 1,
70,000/-.
fractional number)
Figure 2.17
Figure 2.18
Figure 2.19
2018-19
32
toward zero.
places; value 3.
3. COUNT
This function counts the number of cells that contain numbers and
counts numbers within the list of arguments. COUNT is use to get the
2018-19
Spreadsheet
33
reference are counted. Empty cells, logical values, text, or error values
The Figure 2.20 contains a named range for cells A1:B9 as Count_Data
There are other functions also such as ROWS and COLUMNS are used.
ROWS (array)
COLUMNS (array)
Figure 2.20
Array: Used to build single formulas that produce multiple results or that operate on
a group of arguments that are arranged in rows and columns. An array range shares
Array for Array forArray formula: A formula that performs multiple calculations on one or more sets of
values, and then returns either a single result or multiple results. Array formulas are
This function counts the number of cells within a range that meet the
given criteria; in this function the Range is one or more cells to count,
numbers. The blank cells and text values are ignored. (e.g. A2:B5)
2018-19
34
1. TEXT
tab in the Format Cells dialog box, and then viewing the formats
displayed.
2.22).
2. CONCATENATE
This function joins two or more text strings into one text string and its syntax is
CONCATENATE (text1,
text2,...) where
single-cell references.
Figure 2.21
Figure 2.22
Figure 2.22(a)
2018-19
Spreadsheet
35
Middle Name and Surname of the employees into Full Name using
Figure 2.22(b)
another cell in the spreadsheet. The syntax for the AND function is:
being checked. Up to 255 logical values can be entered into the function.
Example Example
in Result
2. In these example there are two cell values cell A2 contains 50 and
message
2018-19
36
One common use for the AND function is to expand the usefulness of
In the above example, the IF function performs a logical test and then
returns one value if the test evaluates to TRUE and another value if the
test evaluates to FALSE. By using the AND function as the logical_test logical_test
Example Example
The LOOKUP function returns a value either from a one-row or onecolumn range or from an array. The
LOOKUP function has two syntax
forms: vector and array.
for elaborate tests or tests that exceeds the limit for nesting of IF
functions.
vector) for a value, and then returns a value from the same position in a second onerow or one-column
range.
The array for array forarray form of LOOKUP looks in the first row or column of an array for the
specified value, and then returns a value from the same position in the last row or
2018-19
Spreadsheet
37
logical values.
value.
LOOKUP function.
=LOOKUP (4.19, A2:A6, B2:B6) Looks up 4.19 in column (A), and returns
=LOOKUP (5.00, A2:A6, B2:B6) Looks up 5.00 in column (A), and returns
=LOOKUP (7.66, A2:A6, B2:B6) Looks up 7.66 in column (A), matches the
row (blue).
AB
1 Frequency Colour
2 4.14 red
3 4.19 orange
4 5.17 yellow
5 5.77 green
6 6.39 blue
Figure 2.23
2018-19
38
contain 10, 20, 30, and 40 some numbers. The Array is A1:B4.
3. VLOOKUP
searches and matches first the required value from the column of a
range of cells, and then returns a value from any cell on the same row
where
equivalent.
AB
1 a 10
2 b 20
3 c 30
4 d 40
Figure 2.23(a)
2018-19
Spreadsheet
39
col_index_num is:
If an exact match is not found, the next largest value that is less
returned.
spreadsheet table.
In this example we search the column ItemID of baby products from the table A2 :D6
and with different test conditions. The final result of the function is
Function Description
Figure 2.24
Figure 2.25
2018-19
40
A2:D6, FALSE))) * (1 - 20%). from the retail price Result .Rs. 5.73
FALSE) >= 20, “Markup is” and or equal to Rs. 20.00, displays the
FALSE) and ”%”, “Cost is under displays the string “Cost is under
FALSE) >= 20, “Markup is:” and or equal toRs.20.00, displays the string
4. HLOOKUP
for a value in the first row of a table array and returns the corresponding
value in the same column from another row of the same table array.
range_lookup) where
table array.
first row of the table_array are the values searched for the
2018-19
Spreadsheet
41
this function.
quarter
1: named Budget
1. ACCRINT
This function returns the accrued interest for a security that pays
calc_method)
of other formulas or functions. For example, use DATE (2008, 5, 23) for
the 23rd day of May, 2008. Problems can be occur if dates are entered
as text.
2018-19
42
For annual payments, frequency = 1; for Semiannual, frequency = 2; for quarterly, frequency = 4.
NC
=××
2. CUMIPMT
This function returns the cumulative interest paid between two periods
calculation. Payment
beginning with 1.
calculation.
3. PV
Figure 2.28
Figure 2.29
2018-19
Spreadsheet
43
10% annual interest rate and installments are made the monthly
payments, then the interest rate per month is 10%/12, or 0.83%. The
value for rate into the function will be 10%/12, or 0.83%, or 0.0083.
payments, then loan has 4*12 (or 48) periods. The value for nper will
be 48.
Pmt is the payment made each period and cannot be change over
the life of the annuity. Typically, pmt includes principal and interest
Rs.10, 000, for four-year car loan at 12 per cent are Rs. 263.33. We
have to enter -263.33 into the function as the pmt. If pmt is omitted,
Rs. 50,000 to pay for a special project in 18 years, then Rs. 50,000 is
The fv and type arguments are optional. The fv argument is the future
value or cash balance that we want to have after making last payment.
If we omit the fv argument, Excel assumes a future value of zero. The
or end of the period: (0 or omit the type argument when the payment is
made at the end of the period and use 1 when it is made at the beginning
of the period).
When using financial functions, keep in mind that the fv, pv, and
are receiving the money or paying out the money. It may be noted that
if we want to express the rate argument in the same units as the nper
rate in monthly terms as well. Excel solves for one financial argument
If rate is 0, then:
(pmt * nper) + pv + fv = 0
nper
nper
(1 rate) 1 fv C rate
+ ++
+−+=
2018-19
44
Computerised Accounting System
4. FV
Example Example
Figure 2.30
In the function FV (rate, nper, pmt, pv, type); the values are
2018-19
Spreadsheet
45
5. PMT 5. PMT
optional argument)
type is the value 0 for payments made at the end of the period
period.
The PMT function is often used to calculate the payment for mortgage
= 0 and 1
This function returns the interest rate per period of an annuity. RATE
20 iterations, RATE returns the #NUM! error value (2.32). The syntax
periods in an annuity.
as argument.
Figure 2.31
Figure 2.32
2018-19
46
payment is made.
Guess is the guess for what the rate will be. If omitted, it is assumed
to be 10 per-cent.
7. NPV 7. NPV
and income (positive values). The syntax for the function is:
period.
The NPV investment begins one period before the date of the value1
cash flow and ends with the last cash flow in the list. The NPV
i1
values
(1 rate) −
=+
NPV
Figure 2.33
2018-19
Spreadsheet
47
FORMATTING
input data; which may be either for processing parameters e.g. input of
data parameters such as month number and name of the month or number
of working days, DA%, etc. for the processing of payroll of the company
correct, accurate and should be in proper format. This means that data
For example 1.5 might represent a value for one and half teaspoon in
one spreadsheet while the same 1.5 would represent constant multiplier
Excel also facilitates fast data entry; and automatically repeats data
or can fill data in different cells (column wise or row wise.) For example,
that we could use the built-in data fill options to fill the different
cells with the days automatically. Some of the methods for data entry
handle is the small black square in the lowerright corner of the selection. When we point to
the Enable Fill handle and cell drag-and-drop check box to hide or
Figure 2.34
Figure 2.35
2018-19
48
After we drag the fill handle, the Auto Fill Options button appears
so that we can choose how the selection is filled. For example, we can
can choose to fill just the contents of a cell by clicking Fill Without
Formatting.
Option -1 Drag the fill handle to fill data into adjacent cells
(Figure 2.38)
respectively.
fill.
Figure 2.36
Option - 2 fill the active cell with the contents of an adjacent cell Option - 2 fill the active cell with the
contents of an adjacent cell
1. Select an empty cell (A1) enter the value 10.
2. On the Home tab, in the Editing group, click Fill, and then click
on Series option.
Figure 2.38
Figure 2.37
2018-19
Spreadsheet
49
3. The option window provides direction (row wise i.e., B1:J1 or column
wise i.e., A2:A10) selection. The main option is Step Value (i.e.
Value ( i.e. last value of the data when it is achieved the data fill
4. Once we enter the all the options and click OK, we get data filled in
Observe the another example for Date data we can use fill handle
(it is important to note that all the cells of the columns or rows should
24-12-1952 (or 24-Dec-1952) in cell A2 and then use Auto Fill Options
One more method for data entry for any application we can use the
following easiest method which will transfer data into required cells
by copying or importing to Excel worksheet. These data files may be
Text files can be directly read using a text editor such as Note pad
in MS Windows. These files often have extension .txt but can have
To import the data from a text file following steps are important for
Figure 2.39.
first line.
Figure 2.39
2018-19
50
8. On Data tab; an option Get External Data having From Text option.
9. Click on “From Text” which will allow selecting a Notepad file (Figure
2.40 & 2.41) saved as .cvm into Excel format directly and data will
10. Each and every data from Notepad file can be saved as an Excel
data file This provides a lead that Excel worksheet consists of four
types of data in cells: labels, values, date and formulas and data
validation.
aligns the data to the right side of the cell, including the
into a cell. We can configure data validation rules for cells data that
will not allow users to enter invalid data, There may be warning
messages when users tries to type wrong data in the cell. The messages
also guide users to what input is expected for the cell, and instructions
2018-19
Spreadsheet
51
are as follows:
Figure 2.42
employee not to enter other than MBA, PHD, CA, MCA, ARCHITECT
and MBBS, etc., and the Sex Code should be either “Male” or
“Female” for the employees. Following are the steps described how
different ways which can be used for data validation (Figure 2.42).
column
2018-19
52
G3:G9).
Tools opens three Data Validation Tabs (Figure 2.43). The first
tab is Setting Tab select List for drop down list option.
selected, click the second tab on data validation option, i.e. Input
Message Tab (Figure 2.45) and enter the desired text in the Title
(e.g. DEPT_T) and provide an input short message for the user
the cell click on the third tab of data validation option (Figure
2.46) i.e. Error Alert Tab. This tab enables :
the box.
2018-19
Spreadsheet
53
data where.
(Figures 2.47(a) to 2.47(d)) which are self explanatory when data for
type the list in the Source Box, separated by commas (Figure 2.43) e.g.
as to enter the Sex Code either Male of Female for an Employee we can
type as =Male, Female. This method of data validation is case sensitive;
2018-19
54
respectively.
not contain blank data; and error message should be displayed e.g.,
we can limit the minimum number of characters in the Employee Name
cell to 10 or less.
or values entered in other cells (Figure 2.49). The steps are as:
Figure 2.48
calculates FALSE entry will be invalid. The cell gives error message
if the values are not meeting the conditions Some of the examples
are as follows:
2018-19
Spreadsheet
55
(Figure 2.50(a)
removes spaces before and after the text. This formula checks
Figure 2.50(a)
function returns the number for the date entered in the cell. If
the value is 1(it is Sunday) and 7 (it is Saturday) then data entry
To input data into a spreadsheet, often we type the data into cells
the same thing again and again, we can enter data into cells using
and edit information. A data form is a dialog box that displays one
2018-19
56
Computerised Accounting System
drop-down lists or using data input form. Using a data form can make
data entry easier than moving from column to column when we have
input data form it is necessary that all the data names must be entered
in the first row of the worksheet, because the input form refers these
data names. To create input data form we have to select the tool
The Form button has not been included on the user interface Ribbon,
but we can still use it in Excel 2007 by adding at Quick Access Toolbar
Commands.
box. Each label has an adjacent blank text box in which we can enter
the formula result is displayed in the data form, but we cannot change
text and general spreadsheet formatting etc.). On the Ribbon there are
symbols (%), commas (,), decimal places, and currency signs ($,
Figure 2.51
2018-19
Spreadsheet
57
Rs. etc), date, time, scientific values and as well as some special
determined once the data is entered into the cell. Here are some
examples:
Currency: If we enter a financial
entry.
Dates: If we enter a date (dates are values, too) that follows one
B4:E7
categories. A sample
of the box.
different symbols of
Figure 2.52(a)
Figure 2.52(b)
2018-19
58
data).
Figure 2.52(e)
Figure 2.52(c).
in Figure 2.52(g).
Figure 2.52(f)
2018-19
Spreadsheet
59
undesired characters.
Figure 2.52(g)
Figure 2.52(h)
2018-19
60
the Text dialog box. We can use these drawing tools in dressing them
understand from the example using both the tools bars together.
Figure 2.52(j)
format.
a border to, change the border style on, or remove a border from.
following:
The Borders button displays the most recently used border style. We
can click the Borders button (not the arrow) to apply that style.
3. In the Style name box, type an appropriate name for the new
cell style.
4. Click Format.
Figure 2.52(k)
Figure 2.52(l)
2018-19
Spreadsheet
61
5. On the Border tab, under Line, in the Style box, click the line
8. Click OK.
9. In the Style dialog box, under Style Includes, clear the check
cell style.
12. Select the cells that we want to format with the custom cell
border.
13. On the Home tab, in the Styles group, click Cell Styles.
• Conditional Formatting
such as:
month?
values, and visualise data by using data bars, colour scales, and icon
Figure 2.52(m)
2018-19
62
colour are higher value cells and red colour for lower value cells.
ensure that the conditional formatting is applied to the entire range, use
PivotTable report.
PivotTable report.
the following:
Figure 2.52(o)
2018-19
Spreadsheet
63
3. Select the rule, and then click Edit rule. The Edit Formatting
their values.
5. Under Edit the Rule Description, in the Format Style list box,
Maximum Value.
(zero) to 100.
because they represent extreme values that might skew the visualisation
of the data.
The formula must return a number, date, or time value. Start the
formula with an equal sign (=). It’s a good idea to test the formula in the
worksheet to make sure that the formula doesn’t return an error value.
There are several options to change the alignment of text (data) in cells
shape, select an option from the list (or from the tool box).
2018-19
64
Resize shape to fit text - To increase the size of the shape vertically
The internal margin is the distance between the text and the outer
Left – To specify the distance between the left border of the selected
chart element and the text, enter the margin number that we want in
Right – To specify the distance between the right border of the selected
chart element and the text, enter the margin number that we want in
Top – To specify the distance between the top border of the selected
chart element and the text, enter the margin number that we want in
selected chart element and the text, enter the margin number that we
required.
Click OK.
Merged cells are a single cell that is created by combining two or more
selected cells. The cell reference for a merged cell is the upper-left cell
or vertical cells are merged, the cells become one large cell and
Figure 2.52(p)
2018-19
Spreadsheet
65
3. The cells will be merged in a row or column, and the cell contents
centering, click the arrow next to Merge and Centre, and then
3. To split the merged cell, click Merge and Centre. The contents
of the merged cell will appear in the upper-left cell of the range
of split cells.
• Formatting a Table
There are predefined table styles (or quick styles) that we can use to
quickly format a table. If the pre-defined table styles don’t meet our
elements, such as header and total rows, first and last columns, and
format as a table.
Figure 2.52(r)
Figure 2.52(q)
2018-19
66
Computerised Accounting System
want to use.
table style.
following:
Click the More button, from the dropdown menu, click the
spreadsheet
NOW ( ) is the function returns the serial number of the current date
and time. If the cell format was General before the function was entered,
January 1, 1900. Numbers to the right of the decimal point in the serial
number represent the time; numbers to the left represent the date. For
example, the serial number 0.5 represents the time 12:00 noon.
spreadsheet.
footers.
2. On the Insert tab, in the Text group, click Header and Footer.
footer text box at the top or at the bottom of the worksheet page.
Figure 2.53(a)
2018-19
Spreadsheet
67
want to change.
workbook.
Microsoft Office Button, click the arrow next to Print, and then click
By default, Excel prints all data on the current worksheet but for
specific and formatted print we have to define print area from the Page
Setup dialog box or the Print Area command from the Page Layout
Figure 2.54
Figure 2.53(b)
2018-19
68
on the Ribbon.
appears.
3. In the Page Setup Page Setup group, click Print Area» select Set Print
b. In the Page Setup group, click Print Area» select Add to Print
data.
1. In the Page Setup Page Setup group, click Print Area» select Clear Print
Area
We can manually select ranges of cells for printing and also have the
or
From the Name Box pull-down list, select the range name to be
printed.
Figure 2.55
2018-19
Spreadsheet
69
2. In the top left corner of the Excel window, click the Office Button»
select Print or Press [Ctrl] + [P] the Print dialog box appears.
4. In the top left corner of the Excel window, click the Office Button
– select Print OR Press [Ctrl] + [P]. The Print dialog box appears.
from the spreadsheet once we add the fields with appropriate level of
the row (row number 4) above the first value (in cell B5) and one
cell to the right (in cell C4) of the column of values (Figure 2.56).
A data table is a range of cells that shows the results of substituting different values
in one or more formulas. There are two types of data table: One-variable and twovariable.
One-variable data table (Figure 2.56(a) Formula used in a one-variable data table
must refer to an input cell. The input cell is a cell used by Excel in which each input
value from a data table is substituted (column-oriented, i.e. input cell down one
Two-variable data table (Figure 2.56(b) use only one formula with two lists of input
2018-19
70
Figure 2.56(a)
2018-19
Spreadsheet
71
B2:Q17.
the Data Tools group, click Whatif-Analysis, and then click Data Table.
$C$1.
G19).
Figure 2.58(a)
Figure 2.58
Figure 2.58(b)
2018-19
72
The Pivot Table tool bar (Figure 2.58(f) provides various flexibility to
work on data.
Figure 2.58(c)
2018-19
Spreadsheet
73
reports.
1. Click the Microsoft Office Button, click Excel Options, and then
occurs, in the Indicate errors using the colour box, select a new
colour.
5. Next to the cell, click the Error Checking button that appears, and
then click the option that we want. The commands are different for
each type of error, and the first entry describes the error. If we click
Ignore Error, the error is marked to be ignored for each consecutive
check.
value. Each error type has different causes, and different solutions. Some
are discussed here to understand them properly before redo the operation
Figure 2.59
2018-19
74
This error occur when a column is not wide enough, or a negative date
or time is used.
2. On the Home tab, in the Cells group, click Format, and then
click AutoFit Column Width. Alternatively also we can doubleclick the boundary to the right of the
column heading.
4. On the Home tab, in the Cells group, click Format, click Format
make the number fit within the existing cell width. For
example, we can decrease the number of decimal places
1. Optionally, click the cell that displays the error, click the button
Reasons
When a date or time is typed in a cell, it appears in a default date and time format.
The default date and time format is based on the Regional date and time settings that
are specified in Windows Control Panel, and changes when changes are made to
those settings. We can display numbers in several other dates and time formats, most
If we are using the 1900 date system, dates and times in Excel must be positive
values.
When we subtract dates and times, make sure that we build the formula correctly.
If the formula is correct but the result is still a negative value, we can display the
value by formatting the cell with a format that is not a date or time format.
1. On the Home tab, in the Cells group, click Format, click Format Cells, and
Figure 2.60
2018-19
Spreadsheet
75
zero as a divisor.
Solutions
Enter the value #N/A into the cell referenced as the divisor,
1. Optionally, click the cell that displays the error, click the button
a. Missing data, and #N/A or NA() has been entered in its place.
table.
formula.
Reasons:
Solutions
2. Select Excel Add-ins in the Manage list box, and then click Go.
2018-19
76
1. Optionally, click the cell that displays the error, click the button
the reference to the first cell in the range from the reference to
the last cell in the range. For example, SUM (A1:A10) refers to
To refer to two areas that don’t intersect, use the union operator,
the comma (,). For example, if the formula sums two ranges
make sure that a comma separates the two ranges (SUM (A1:A10,
C1:C10)).
drag the colour-coded border of the cell or range to the new cell
or range.
the border.
7. Press ENTER.
• Correct#NUM! Error
1. Optionally, click the cell that displays the error, click the button
2018-19
Spreadsheet
77
numeric argument.
The higher the number of iterations, the more time that Excel
box. The smaller the number, the more accurate the result and
to be represented in Excel.
This error occurs when a cell reference (cell reference: The set of
1. Optionally, click the cell that displays the error, click the button
2018-19
78
This error occurs when the wrong type of argument (argument: The
arguments that are used within functions include numbers, text, cell
1. Optionally, click the cell that displays the error, click the button
data type. Make sure that the formula or function is correct for
the required operand or argument, and that the cells that are
press CTRL+SHIFT+ENTER.
constant.
Make sure that the array constant (constant: A value that is not
Change the range to include either the same row or the same
column that contains the formula.
2018-19
Spreadsheet
79
Summary
allows working with rows and columns of numbers and use formula to do
formula and functions, and printing the results. It has rows that are
the Excel workbook. Columns are vertical lines of information and are
identified by letters along the top of the spreadsheet. Rows and columns
intersect to form cells. A cell is addressed by the column and row position,
Over time, the model has been expanded to include a third dimension, and
use formula or function in the cell; usually begin with = sign by convention.
• A cell reference is the name cell in the spreadsheet. Most cell references
indicate another cell in the same spreadsheet, but a cell reference can also
refer to a cell in a different sheet within the same spreadsheet or to a value
and row number; either part can be relative changes when the cell or
$ in front of the part concerned of the cell reference). The older “R1C1”
reference style consists of the letter R, the row number, the letter C, and
the A1 style, some providing the R1C1 style as a compatibility option. When
the computer calculates a formula in one cell to update the displayed value
of that cell, cell reference(s) in that cell, naming some other cell(s), cause
all the cells in the range A1 through to A6. A formula such as “=SUM
(A1:A6)” would add all the cells specified and put the result in the cell
• A function is a special key word which can be entered into a cell in order to
perform and process the data which is appended within brackets. There is
a function button on the formula toolbar (fx); which function offers assistance
2018-19
80
and useful prompts into a spreadsheet cell. Alternatively we can enter the
function directly into the formula bar. A function involves four main issues:
• Name of the function.
defined to specify how the value is displayed. The default display format is
usually set by its initial content if not specifically previously set, so that for
example “24/11/1952” or “24 Nov 1952” would default to the cell format of
“date”. Similarly adding a % sign after a numeric value would tag the cell
as a percentage cell format. The cell contents are not changed by this
• To print an entire spreadsheet choose Page Setup from the File Menu,
is too wide to fit on a page, Excel will print the remaining columns on
• We can save our document every 5 minutes. The first time we save, go to
the File Menu and pull to Save, make sure the document is in the correct
folder and on the correct drive, type the name for what we want to save it
2018-19
Spreadsheet
81
EXERCISE
1. The best way to get started in Excel 2007 is to click the _____.
a. View toolbar.
b. Home tab.
a. [Ctrl]+[F1]
b. [Ctrl]+[F3]
c. [Ctrl]+[F5]
d. [Ctrl]+[F7]
a. Normal
b. Page Layout
c. Page Setup
d. Review
4. As you type a number in a cell, what mode appears in the status bar?
a. Enter mode
b. Ready mode
c. Edit mode
d. Record mode
a. Row heading
b. Status bar
c. Name Box
d. Formula bar
a. Cut
b. Undo
2018-19
82
c. Redo
d. Paste
a. [Ctrl]+[Home]
b. [Page Up]
c. [Home]
d. [Ctrl]+[Backspace]
a. [Alt]
b. [Ctrl]
c. [Shift]
d. [Esc]
a. Redo
b. Repeat
c. Reset
d. Reverse
a. Right
b. Left
c. Centre
d. Decimal
a. TOTAL
b. ADD
c. SUM
d. AVG
2018-19
Spreadsheet
83
a. Exponentiation
b. Addition
c. Subtraction
d. Multiplication
14. Which step completes an entry and moves the pointer to the cell to the right?
a. Pressing [Enter]
b. Pressing [Tab]
c. Pressing [Shift]+[Tab]
d. Pressing [Shift]+[Enter]
15. How many blank worksheets are shown when a new workbook is created?
a. One
b. Two
c. Three
d. Four
spreadsheet.
5. Using Fill: Series command in Excel write down the steps to fill data from
120,320…..2300 in Column A.
6. Define Data Range, Name Range and How these are created and selected?
9. What is Wrap Text feature of Excel, Merging of Cells and what will be the cell
syntax.
2018-19
84
16. Define one-variable Table and Two-variable table. Explain these with examples.
A. You had started your own online business to sale and find out the sales for the
Monday Rs.120.45
Tuesday Rs.187.43
Wednesday Rs.106.87
Thursday Rs.143.69
Friday Rs.117.52
Saturday Rs.87.93
Sunday Rs.92.12
Use a function to work out how much you earned, on average, each day.
B. Use a Days360 function to work out how many days are left before your next
birthday. Instead of typing out the current date in say cell A2, you can use this
inbuilt function:
=Now ( )
The Now function doesn’t need anything between the round brackets. Once
you have today’s date, you can enter your birthday in say cell B2.
contain Date of Visit, Day of Visit, Name of Shop/Dealer Visited, Address, Phone
Number, Name of Product (Dealing), Type of Response (by the Dealer), Demand
Hours Spent.
d. Count total number of dealers visited and dealers who gave positive
response.
2018-19
Spreadsheet
85
Create a worksheet to record sales of home appliances sold by M/s Home Maker
The product lists includes Television sets, Refrigerators, Micro wave ovens,
Water Coolers, Air Coolers, Geezers and Air conditioners of different Makes
(and models). The cost of price of television is ranging from Rs. 10,000 to
Rs. 56,000; refrigerator is Rs. 13,000 to Rs. 45,000, micro wave ovens, water
coolers, geezers and air coolers are from Rs. 8,000 to Rs. 25,000 and Air
Conditioners are from Rs. 18,000 to Rs. 55,000. The shopkeeper sales these
on total amount if any customer purchases two products on the same date.
Format the numeric data in currency format, prepare year wise columns for
revenue and expenses for each tourist place and calculate the difference. The
red coloured. Use conditional formatting for higher and lower values of revenue
and expenses. Align entire text in centre. The font of tourist place is Arial with
(Amount in lacs)
Rev Exp Rev Exp Rev Exp Rev Exp Rev Exp
Manali 123 55 234 123 345 333 333 365 365 453
Kashmir 234 123 123 55 365 453 345 333 333 365
Shilong 345 333 333 365 123 55 234 123 456 233
Kerala 333 365 365 453 234 123 123 55 345 333
2018-19
86
ANSWERS
1. c 2. a 3. b 4. a 5. c 6. b
2018-19
87
USE OF SPREADSHEET
IN BUSINESS
APPLICATIONS
Introduction
• Calculation of deprecation by
various methods.
calculation.
In the previous chapter, we have learned about
Repayment).
time in an organisation.
deductions to be made.
formulae.
2018-19
88
• EARNINGS
Basic Pay (BP) : It is the pay in the pay scale plus Grade Pay,
which has been declared and deemed to have been merged with
• DEDUCTIONS
Government.
2018-19
him/her.
Advance”, etc.
BPE = BP * NOEDP/NODM
elements. Thus,
Provident Fund (PF) : This can be calculated as PF = BPE * PF Rate PF = BPE * PF Rate
Thus,
TD = PF + TDS + LOAN
Number of Effective Days Present (NOEDP) Number of Effective Days Present (NOEDP) – is the Number of
Days
NOEDP = (Number of Days in a Month) NOEDP = (Number of Days in a Month) – (Leave without Pay) –
denoted by NODM.
2018-19
90
below :
Net Salary (NS) = Total Earnings (TE) – Total Deductions (TD) Net Salary (NS) = Total Earnings (TE) – Total
Deductions (TD)
step is to plan its layout and the template specifying the sequence of
Example Example
of these employees are given in the spreadsheet shown in Figure 3.3 (a)
and Figure 3.3 (b). These figures show the layout of the spreadsheet. In
a formula. Such data are given in Figure 3.1. The rules for computing
some of the payroll elements used above are given in Figure 3.2.
• HRA Rates (in %) for Supervisory (Emp Type = “Sup”) and Nonsupervisory (Emp Type = “Nsup”) are
entered in the cells G5 and
G6, respectively.
• Transport Allowance for Supervisory (Emp Type = “Sup”) and Nonsupervisory (Emp Type = “Nsup”) are
entered in the cells G7 and
G8, respectively.
Notes
another “IF” function) has been used. If function has been introduced
in Chapter 2.
• The formulae in column-F and column-G use absolute address ($G$3)
for cell G3 rather than using the relative address (G3). The absolute
address is used for those cells whose reference should not change
2018-19
91
Column Column Heading Abbrev Ref First line shows Required Formula
Present = $I$3-D12
I House Rent Allowance HRA = If (Emp Typ = “Sup” then 40% of BPE
= IF(C12=”Sup”, G12*$I$5,
IF(C12 =”Nsup”, G12*$I$6,0))
= IF(C12=”Sup”,$I$7,IF(C12
=”Nsup”,$I$8,0))
= G12+H12+I12+J12
= G12*$I$9
Figure 3.1: Spreadsheet Columns and the Cells Content in Spreadsheet shown in Figure 3.3 A
2018-19
92
only.
Figure 3.3 a : Partial Spreadsheet Showing Payroll List upto Gross Salary
Figure 3.3 (b) : Partial Spreadsheet for calculation of Deductions & Net Salary
2018-19
93
3.2.1 INTRODUCTION
fixed and current assets. Fixed assets are long-term assets and provide
land, building, plant & machinery, etc. It includes both tangible and
form, shape and size. Intangible assets are resources capable of adding
the asset consumed during an accounting period since the life of such
date to which the asset is put to use till the current accounting year.
There are basically two methods, namely the Straight Line Method
(SLM) and the Written Down Value Method (WDV). We had studied
Book Part I.
fixed assets for reporting in the balance sheet as part of the annual
• Goodwill
date to which the asset is put to use till the current accounting year.
2018-19
94
• Vehicles
• Others
(SLM) and Written Down Value Method (WDV). The prescribed rates
enterprises may use either of the method and applicable rates. Let us
Expenses
Example Example
spreadsheet, which is shown in Fig. 3.5 a and Fig. 3.5 b in two parts
2018-19
95
The depreciation is computed by straightline method using the builtin spreadsheet function SLN in
column-K. The spreadsheets are shown
parts due to the constraint in the page width) give an idea of the
Figure 3.4: Column Items and their contents referred to in the Spreadsheet
Column Column Heading Abbrev Ref First line shows Required Formula
Expenses
G Cost to Use Cost to Use = (Cost of Purchase) + (Installation Expenses)
HIJK
2018-19
96
Written Down Value (WDV) method uses the current book value as the
base for computing the depreciation for the next period. It is also called
is calculated
Figure 3.6: Column Items and their contents referred in the Spreadsheet
Expenses
Expenses
= D5+E5+F5
2018-19
97
Column Column Abbre. Ref First line shows Required Formula
Years
YEAR(C5)),(YEAR($F$3)-YEAR(C5))+1)
K Months in 1st Year Months in No. of months between (Yr-End-Dt in 1st Yr)
installation) = ROUND((L5-C5)/30,0)
L Year-end Date in Yr-End-Dt If (Inst. Date) was Between Jan and Mar,
1st Year (Reqd. in 1st Yr Take it as 31st Mar of (Year of Inst. Date)
DATE(YEAR(C5),3,31),
DATE(YEAR(C5)+1,3,31))
above
= DB(G5,H5,I5,J5,K5)
Figure 3.7: Column Items and their Contents used in Spreadsheet (in Figure 3.8 a and b)
Figure 3.8 a : Partial Spreadsheet Columns for Calculation of Depreciation by WDV Method
2018-19
98
parts due to the constraint in the page width) give an idea of the
= B8+C8-D8
Computation Spreadsheet
= F8+G8-H8
Apr 1, 2008
= B7–F7
= E7-I7
Figure 3.9: Column Items and their Contents used in Spreadsheet (in Figure 3.10 a and b)
Figure 3.10 a: Spreadsheet Containing Fixed Asset Schedule Showing Gross Block
2018-19
99
parts due to the constraint in the page width) give an idea of the
3.3.1 LOAN
are as follows:
Parameter Explanation
Nper Total number of payments for the loan. Its unit (e.g. year)
2018-19
100
Example 1
A bank has given loan of Rs. 1, 00,000 to a customer for the purchase
Example 2
Ajay has been sanctioned the bank loan of Rs. 2, 50,000 for the purchase
of a car on May 15, 2008. The loan carries the rate of interest @ 11%
At the end of the loan period, the (balance) amount payable will be
2018-19
Use of Spreadsheet in Business Application
101
Summary
• MS-Excel is an easy and useful tool for various calculations carried out on spreadsheets.
In this chapter, three examples have been taken to illustrate the ease and utility of
spreadsheets. These examples are Payroll Calculation, Fixed Asset Accounting, and Loan
Repayment Schedule.
• The first step in using spreadsheet is to list out the elements of the application. For each
using a formula.
• Excel has a rich library of various built-in functions including financial functions, which
can be directly used to carry out various (otherwise complex) calculations. A formula may
• In these applications, some of the formulae use absolute address. The absolute address is
used for those cells whose content should not change while the formula containing such
• The Excel functions SLN and DB are used for computation of depreciation using Straight
Line Method (SLM) and Written Down Value Method (WDVM), respectively. WDV Method is
EXERCISE
1. Which of the following options in a financial function indicates the interest for
a period?
a. FV.
b. PV.
c. Nper.
d. Rate.
number of payments?
a. FV.
b. PV.
c. Nper.
d. Rate.
2018-19
102
=PMT(C10/12,C8,C9,1)
a. Logical.
b. Financial.
c. Payment.
d. Statistical.
4. When Extend Selection is active, what is the keyboard shortcut for selecting
a. [Ctrl]+[Down Arrow].
b. [Ctrl]+[Home].
c. [Ctrl]+[Shift].
d. [Ctrl]+[Up Arrow].
5. Which formula would result in TRUE if C4 is less than 10 and D4 is less than
100?
a. =AND(C4>10, D4>10).
b. =AND(C4>10, C4<100).
c. =AND(C4>10, D4<10).
d. =AND(C4<10, D4<100).
a. Logical_test.
b. Value_if_false.
c. Value_when_false.
d. Value_if_true.
7. In what cell is the Rate for PMT function where = PMT (C8, C9, C10, C11,
C12)?
a. C8.
b. C9.
c. C10.
d. C12.
2018-19
103
4. If an investment of Rs. 1,000 is made today, ascertain its Future Value (FV)
5. If a sum of Rs. 1000 is likely to be earned after 3 years, calculate its present
value (PV).
6. What is the difference between WDV method and SLM method of depreciation?
7. Describe the two basic methods of depreciation. What functions of Excel are
8. Explain the importance of absolute and relative addresses. What is the basis
SKILL REVIEW
3.3 (a) and Figure 3.3 (b) the absolute addresses are used. What will happen
calculation using WDV method (i.e. using DB function), the absolute addresses
will lead to wrong result when the formula is copied. Explain the reason and
write down the values copied along with the correct values, which should
wise for 10 months. Calculate the percentage of presence for each student
every month. Prepare a month wise summary of every student and calculate
4. Use spreadsheet to prepare class timetable. It should compute and check the
total number of lectures, tutorials and lab practical sessions allocated for
each subject. It should also compute and check the total number of hours of
5. Prepare the worksheets yourself for examples used in sections 3.1, 3.2, 3.3
and 3.4 respectively. Add two new more records in each worksheet (with your
own assumed values) and verify whether the computations are correct.
37.5% of Basic Salary, House Rent Allowance (HRA) 22.5% of Basic Salary,
Provident Fund (PF) as 12% of Basic Salary, Gross Salary as Basic Salary +
DA+HRA. The Income Tax (IT) as 20% of Gross Salary and Net Salary is Gross
Salary – (PF+IT) for each employee. Calculate also Total Salary, Average Salary,
exercise by fixing the loan instalment amount and compute the loan period
2018-19
104
ANSWERS
1. b 2. c 3. b 4. c 5. d 6. c 7. a
2018-19
may either be a singleline graph or a multipleline graph. For ease and enhancing of clarity,
graph.
able to:
Excel.
representation.
2018-19
106
Figure 4.1 shows different types of graphs and charts which can be
toolbar.
the chart type that we want on the Microsoft Office Fluent user interface
2018-19
107
the computer.
4. Click on Insert tab to get tools for chart as shown in Figure 4.3.
We will learn how to draw graphs, charts and diagrams for the
Using the following two steps we can create any type of chart /
GRAPHS/CHARTS/
DIAGRAMS USING
EXCEL
Step - 1
The row totals (row number 11) gives the quarter wise total sales of
products and the column totals (column number G) gives product wise
total sales. The cell G11 gives over all total sales of the
Step - 2a
Step - 2b
No caption ???
2018-19
108
meaningful ways.
Qtr1 25844
Qtr2 11295
Qtr3 14744
Qtr4 21886
Total 73769
To create a chart
or to change an
existing chart, we
select variety of
column chart or a pie in 3-D chart) from the ribbon. We can also create
a combination of chart by using more than one chart type in any chart.
Figure 4.5
axes.
Figure 4.6
2018-19
109
by bars, columns, lines, pie or various other shapes are called data
The data series are related data points that are plotted in the chart/
6. A chart and axes titles: Descriptive text for chart title (6-A) and
Figure 4.7
how the elements of a chart such as plot area, X-axis, Y-axis, data,
2018-19
110
chart. This will display the Chart Tools, adding the Design, Layout,
Design dialog box, we can click to change chart type, chart layouts
and chart styles. One of the options provide for 2-d chart to swap the
column data to row data and row data to column data. The steps are
as follows:
tabs.
box.
to X-axis (Quarterly)(Figure
4.8(b).
In the same chart, click the chart element to change, or do the following
1. Click anywhere in the chart. This will display the Chart Tools,
adding the Design, Layout, and Format tabs (Figure 4.8(c).
2018-19
111
format.
following:
• To apply a different shape fill, click Shape Fill, and then do one
Picture dialog box, click the picture to use, and then click
Insert.
To use a texture fill, click Texture, and then click the texture
to use.
2018-19
112
Computerised Accounting System
the Colours dialog box, specify the Colour that to use on the
option, and then select the line that we wish to use. For additional
line style or border style options, click on More Lines, and then
then click the dash type to use. For additional dash-type options,
To add arrows to lines, click Arrows, and then click the arrow
border style options, click More Arrows, and then click the arrow
setting.
The shape effects depend on the chart element that we select such
as Pre-set, reflection, and bevel. The shape effects are not available
To format the text in chart elements, we can use regular text formatting
2. Right-click the text or select the text to format, and then do one of
the following:
On the Home tab, in the Font group, click the formatting buttons
2018-19
113
4. On the Format tab, in the Current Selection group, click the arrow
next to the Chart Elements box, and then select the chart element
that to format.
button.
Text Fill
Text Outline
Shadow
3-D Format
3-D Rotation
Text Box
In the same chart, click the chart element to change, or do the following
1. On the Layout tab, we can insert different Clip Arts, Picture, data
100%.
Figure 4.9
2018-19
114
used to plot.
are positive.
Steps for creating a Pie Chart Steps for creating a Pie Chart
only.
Format tabs.
12.Click Close.
shadow option.
Selection.
Figure 4.9 (a)
2018-19
115
16.Under Angle of first slice, drag the slider to the degree of rotation
that you want, or type a value between 0 (zero) and 360 to specify
the angle of the first slice to appear, and then click Close.
18.On the Format tab, in the Shape Styles group, click Shape Effects,
20.To use theme colors that are different from the default theme that
Resizing of the chart means changing size of the chart as desired. This
option can be used independently for the fonts, title, legends easily.
The first step is to select the chart by clicking the left button of the
mouse. Move the cursor on the corners or middle of the borders of the
chart/graph which will provide the figure (the cursor will take the
shape of a two headed arrow). By pressing the left button and drag/
pull as desired to resize the chart as shown by the red circle in the
Figure 4.9a.
4.2.5 2D - 3D CHARTS/GRAPHS
the axes (X-axis and Y-axis) is called the origin (O) of the
Figure 4.10
Figure 4.11(a)
2018-19
116
data values.
axis (also known as derived value axis or Y axis), and a horizontal axis
(3-D) effects. 3-D charts have a third axis, the depth axis (also known
as series axis or Z axis), so that data can be plotted along the depth of
Figure 4.11(b)
(Y-axis).
(X-axis).
not have any axes. In Figure 4.12 radar chart is drawn for the
series (data series: Related data points that are plotted in a chart.
represented in the chart legend. You can plot one or more data series
2018-19
117
Doughnut charts have the following chart Doughnut charts have the following chart
GRAPH/CHART
any time to sit and read a newspaper in order to find out what is going
information and make them into exhibitions that are easily used to
persuade.
Figure 4.13
Figure 4.12
2018-19
118
Summary
• Other popular pictorial representations include Pie Chart and Bar Chart.
Pie charts depict relative share of different elements. Bar charts are used
• MS-Excel 2007 (or simply Excel) provides a convenient facility to draw graphs
and charts. The nomenclature used in Excel for charts (charts include
graphs) is as follows:
b. The Plot Area covering the plot of values in the selected type of chart,
Axes,
g. Data Labels
• Every elements of a chart – such as plot area, X-axis, Y-axis, data, titles,
labels, legends, and gridlines – can be formatted using the Design, Layout
• For multiple visualisations of the same data through different typs of charts,
we can change the chart type (say, from line graph to barchart, or bar
chart to pie chart, etc) wherever required for better presentation as per the
nature of data.
• Graphs and charts help in easy visualisation of any trends present in data.
In highly random data such as stock prices, textual description may not be
easily possible to explain the price or other fluctuations, but graphs and
by human beings.
2018-19
119
Step – 1: Enter data in a worksheet with proper column and row titles.
Step – 2: Create a basic chart using the pattern from the panel available on
top of worksheet in Chart groups’ option.
2018-19
120
EXERCISE
a. Chart Type.
b. Source Data.
c. Chart Options.
d. Move here.
4. In Excel the chart tools provides three different options ______, ________ and
a. Ten.
b. Twenty Five.
c. Seven.
d. Three.
c. Both a and b.
2018-19
121
7. Doughnut charts:
c. Both a and b.
8. The 2D graph using _______ , _________ axes and in 3D graph ______ axis is
also used.
d. b and c both.
c. a and b both.
a. anywhere.
b. on right side only.
11. Which chart element details the data values and categories below the chart?
a. Data point.
b. Data labels.
c. Data marker.
d. Data table.
12. From what command tab is the font size for an axis in a chart changed?
a. Home.
b. Insert.
c. Format.
d. Design.
2018-19
122
a. Identifying trends.
b. Selecting values.
c. Recognising patterns.
d. Making comparisons.
14. What do you see if you move over the mouse over a chart object?
a. KeyTip.
b. ScreenTip.
c. ChartTip.
d. ChartKey.
15. Which group on the Chart Tools Format tab shows the name of the selected
element?
a. Arrange Objects.
b. Chart Objects.
c. Choose Selection.
d. Current Selection.
1. Define charts, graphs and how they are useful in business decisions?
2. Write down the usage and purpose of column chart, pie chart and line chart.
5. Differentiate between pie charts, line charts and column charts respectively?
7. What does percentage in chart represent and how it being calculated by the
software?
9. What is pie chart and what are percentage values means in pie chart?
2018-19
123
2001
2002
2003
2004
2005
2006
2007
2008
B. Create a Pie chart to compare data from above table for Total (column number
3).
C. Draw a Trend charts for each male, female and totals separately.
D. Draw a Column Chart for the above data for each (male, female and total)
E. Prepare a Pie chart and Column chart for the 10 different plots areas 5, 7, 8, 9,
F. Draw a Pie chart for the following data on vehicles registered in the RTO
Vehicles
Number
Students
2018-19
124
ANSWERS
1. d 2. d 3. a 4. b 5. c 6. c
2018-19
ACCOUNTING
SOFTWARE PACKAGE :
TALLY
Introduction
for:
statement as on date
these packages.
the latest version of this software Tally 9 you can1. do all basic accounting functions,
4. manage payroll,
2018-19
126
6. file your tax returns like prepare balance sheet, profit and loss
statement, VAT forms, TDS returns, Service tax returns, e-TDS filing,
are required:
b. Select start > run > type the file name E:\install.exe
be removed.
Tally is a widely used accounting software which can be used for book
2018-19
127
To work with Tally first you will start with Gateway of Tally as it is the
• Horizontal Button Bar: It contain two sets of Button with hot key.
company etc.
• Vertical Button Bar: The button bar shows several buttons with
2018-19
128
• Current Screen Bar: At the bottom, you get the Current Screen bar
showing the following details about the current screen being display.
Starting date
of the period
Ending date
of the financial year and closing date of the financial year. The
Figure 5.3 shows how user enters starting opening and closing
known as voucher date. In the Figure 5.3, on the left side of Gateway
you can get the following information about Current Period, Date,
of all selected companies along with the date of last voucher entered.
2018-19
129
following steps:
Company>
In the Company Creation screen (Figure 5.6) the user should fill
documents.
External documents.
2018-19
130
company.
• I.T. NUMBER: Enter the Income Tax number allotted by Income Tax
Department.
The last selected company (Figure 5.2) becomes the Active Company
and such company is shown in the bold letter of Gateway screen and
2018-19
131
Balance Sheet and Income & Expenses of Profit and Loss Account. In
and assets of balance sheet and income and expenses of profit & loss
account. It represents the hierarchical arrangement of account groups
of accounting data.
Figure 5.7: Selections for Data Entry Options for Active Company
2018-19
132
groups cannot be altered. In the account groups there are 28 predefined groups, out of these groups 15
are primary groups and 13 are
sub-groups.
2018-19
133
sub-groups:
Duties and Taxes: Under this head all duties and taxes that
transactions.
sundry creditors.
2018-19
134
Loans and Advances: Such loans and advances are of nontrading nature, for example, Advance against
Salary, Loan to
to the profit and loss account placed here. Also the accumulated
export sales, You may even open sales returns account under
the group domestic sales to view net sales after returns (or the
under sales accounts. You may wish to use this group for
sales of equipment.
received.
2018-19
135
Select Accounts info at Tally Main Menu (Figure 5.9) to get <Accounts
Group Name.
2018-19
136
ledgers, one Cash and another Profit and Loss Accounts. You have
at Under field select the parent Group of the ledger from list of
Group.
Figure 5.12 displays the user Account Group and Ledger after
creation. The next step is the Creation of necessary ledgers. via creation
of vouchers.
It does not affect accounts of the user. These entries are stated/
2018-19
137
User defined Voucher: In accounting software there are 23 predefined vouchers. It allows the user to
define or create new
of accounts of the previous year are brought forward. For this opening
of various accounts that are being transferred from the books of the
previous year to the books of the new financial year. All those
accounts which shows the assets of a business are debited and all
would be :
• Closing Entry: The closing entries for completing the profit and
Balance.
This will close the profit and loss account. Entries required to make
the trading account and profit and loss account are known as closing
entries because their effect is to close the books of account for the year
concerned.
Cash account Dr
Stock account Dr
Furniture account Dr
To Capital account
2018-19
138
on March 31, and three months’ rent, has been received in advance
one should take into account only one month’s rent for preparing
the profit and loss account (accounting period concept); the rest
two month’s rent, already received is for the next year and will be
credited to profit and loss account next year. The adjusting entry
will be :
your opting for a new voucher type. For this purpose, the following
• Manual
it does not check for sequence of the numbers and permits you to
automatically.
Starting number
Give the number for the first voucher. Usually it is 1. You can set it to
any number you want. Tally will auto-increment from this number for
These rules are validated during voucher entry and any violation is
Cash and Bank account only. For example, Rs 5,000 Cash withdrawn
2018-19
139
example: Rama and Co. to whom goods were sold earlier on Credit,
paid against Bill No 54 for Rs 4,500 Cash Discount is Rs 500.
To Bank Cr 15,000.00
for non cash transaction like adjustment between the Ledgers. For
example :-
To Machinery 5,000.00
Display: Some top level reports like Balance Sheet, Profit and Loss
Account etc may be available at main menu, while other reports are
2018-19
140
In Primary Group trial balance (Figure 5.13), Click F1: obtain detail
trial balance and trial balance shows the closing balance of accounts
group/Ledger. After all voucher entry have been done, it can be seen
how every amount that is placed on the debit side of an account has a
the technical aspect of the principle of double system. This being the
case, that the total of the debit balances hold agree with the total of all
the total of debit balances agree with the total of credit balances or
The Profit and Loss account is constructed by simply posting all items
of income and expense from the journal entry. The current year’s profit
remaining in any ledger account after the profit and loss account is
drawn up are listed in the balance sheet .Generally the assets and
All expenses (direct or indirect) are related to profit and loss account
and revenues and incomes are credited to it. If an expense has been
incurred but not yet paid for, is a liability for the unpaid amount and
must be created before the account can be said to show a true picture.
2018-19
141
142
Once all the transactions are entered, you can generate different
statements like trial balance, balance sheet and profit and loss account.
ledgers. Thus the process of accounting becomes quite easy and simple.
register.
STATEMENT (BRS)
The following are the steps to construct BRS in Tally:
• Bring up the monthly summary of any Bank Book. (You can do this
• Bring your cursor to the first month (typically April), and press
Enter. This brings up the Vouchers for the month of April. Since
2018-19
143
Book>Bank Account>Ledger>Press F5
The amount not reflected in bank is the debit and credit sums of all
April 30 (i.e. these vouchers have not yet been reflected in the bank
Statement).
The Balance as per bank is the Net Balance.
You will find, as you mark of the individual vouchers by setting the
to skip over the unmarked vouchers), and accepted the screen. The
next time you reconcile, you will be presented only with those vouchers
SYSTEM
• Password security
• Data Audit
• Data Vault
Particular of
Payment/receipt
of Cheque cleared
Debit/Credit
amount
2018-19
144
access the data. Only the authorised person can access the data. Any
user who does not know the password cannot retrive information from
are audited with alternations, if any the software displays all entries
along with the name of the auditor user and date and time of alteration.
data and this feature is referred as data vault. Data vault ensures
method.
alteration screen
screen
screen
2018-19
145
F11 To select the Functions and Features At almost all screens in TALLY
screen
combination.
combination.
screen (if it has not been already screens, at a field where you have to
reports like Balance Sheet, where it necessary account has not been
adds a new column to the report). created already, use this key
screen.
ALT + E To export the report in ASCII, SDF, At all reports screens in TALLY.
HTML OR XML format.
ALT + O To upload the report at your website. At all reports screens in TALLY.
ALT + S To bring back a line you removed At all reports screens in TALLY.
using ALT + R.
2018-19
146
ALT + W To view the Tally Web browser. At all reports screens in TALLY.
List of Vouchers.
CTRL + A To accept a form – wherever you use At almost all screens in TALLY, except
this key combination, that screen or where a specific detail has to be given
Budgets/Scenarios/Voucher Types/
Currencies (Accounts Info) creation and
alteration screen.
Budgets/Scenarios/Voucher Types/
alteration screen.
screen.
Budgets/Scenarios/Voucher Types/
alteration screen.
Budgets/Scenarios/Voucher Types/
alteration screen.
CTRL + I To select the Stock Items. At Stock Group/ Stock Categories/ Stock
screen.
alteration screen.
screen.
2018-19
147
changes to it.
CTRL + S Allows you to alter Stock Item master. At Stock Voucher Report and Godown
Voucher Report.
screen.
Combination
report. TALLY.
Voucher Type.
2018-19
148
ALT + F12 To filter the information based At almost all report screens.
on monetary value.
ALT+F12
ENTER To accept anything you type You have to use this key at most
SHIFT + To explode a line into its details. In almost all Reports: At a Group/
entries and narration.At a Stock Itemdisplays its godowns and batch details.At
2018-19
149
Summary
• In computerised accounting system, accounting transactions are journalised
market but Tally 9.0 is more effective accounting software. Tally 9.0 software
and Assets of Balance Sheet and preparation of Profit and Loss account.
iv) Account master - Account master basically used for account group
and ledger .
balances of ledger.
vii) Balance Sheet - The balance sheet is constructed by simply posting all
have many more features, which can be explored and used depending on
2018-19
150
EXERCISE
C. Which short cut is used to shift “company information menu” form gateway of
Tally?
a. Alt + F3
b. Alt + Escape
c. Shift + F3
d. Shift + F1
D. In which group will you record the expense of light bill of Factory?
a. Direct income
b. Direct Expense
c. Indirect income
d. Indirect Expense
E. While recording the voucher entry if it is necessary to create a new ledger for
a. Ctrl + C
b. Ctrl + G
c. Alt + C
d. Alt + G
F. While creating ledger if you want to create new group which key is pressed?
a. Ctrl + C
b. Ctrl + G
2018-19
151
c. Alt + C
d. Alt + G
a. Gateway of Tally
b. Outway of Tally
c. Company information
a. 2
b. 4
c. 3
d. 5
7. “Report generating is not a easy task” Is this statement true or false Explain?
9. Describe the process of creating a Group company and how would you Display
10. Describe Tally 9.0 and what are the new features of 9.0, and explain the various
Q. 3. SKILL REVIEW
1. From the following transactions of Ashirwad Ltd, post the voucher entries in
the respective ledger accounts, prepare a trial balance and balance sheet.
2018-19
152
ANSWERS
1. a 2. a 3. a 4. d 5. c 6. b
7. a 8. b
2018-19
DATA BASE
MANAGEMENT SYSTEM
FOR ACCOUNTING
Introduction
to:
tables.
2018-19
154
DATABASE REQUIREMENT
not only provide fairly comprehensive tools for all conceivable needs
but also have become extensively user friendly. So, when we look
where application itself may not extend much help. Further, the correct
database application.
• Who will capture or modify the data, and how frequently the data
will be modified?
• Who all will be using the database, and what all tasks will they
perform?
DATABASE REQUIREMENT
not only provide fairly comprehensive tools for all conceivable needs
but also have become extensively user friendly. So, when we look
where application itself may not extend much help. Further, the correct
2018-19
155
If our requirement entails approach to database by many users, or if it
amount of data.
departure time of employees. A variety of such systems (e.g. Cardswipe, Biometric, etc.) are available in
the market, and all of them
with its own (back-end) (back-end) database and (front-end) (front-end) program, will also
of 500 MHz Processor, 256 megabyte RAM, 1.5 gigabyte Hard disk,
one of the simplest and most flexible DBMS solutions today, besides
and hence it is imperative that your computer lab is equipped with the
hardware. The illustrations contained in this book are based on Access2007, which may feel a little
different from what you are working with
2018-19
156
TABLES
By now we understand that a database is simply an organised collection
can be multiple tables (each storing a specific set of data) with in this
file. Then there are multiple fields in each table according to different
gets created.
as part of requirement analysis. requirement analysis. Such a process may entail database
knowledge.
chapter 3). You have already seen how different employees draw
different amounts of pay based on the nature and levels of their
2018-19
157
the simplified pay pattern for an assumed organisation XYZ Pvt. Ltd.
also deal with such attributes pertaining to employee’s pay as: ‘Basic
may also want to know the attributes of ‘Gross Salary’ and ‘Net Salary’
However, ‘Gross Salary’ and ‘Net Salary’ attributes may not require
month, ‘% Rate of HRA’ varying with the location of employee, and ‘TA
At this stage you may like to know the limitations of ‘Excel’ in payroll
you will notice that you have created pay information of a set of
next month, you will have to change employee specific data such as
single Excel sheet. You may avoid this situation by effecting changes
in a different copy of the sheet. In this manner you are creating different
table, or shall we opt for multiple tables. The ‘Access’ as such will not
put any constraint on the number of tables we opt for, or the type of
data we chose to put in any table. It will have to be entirely our decision,
also apreciate the fact that the purpose of a database is not so much
for the storage of information, as for its quick retrieval. Hence, you
2018-19
158
all attributes listed above. The rows of this table (see Figure-6.1) will
details for every instance of the salary drawn by him or her. Since, the
recorded under different rows - i.e. different pay components and the
Month Emp Desig. Locat. %DA %HRA Basic DA HRA TA Gross PF Net
Nov. Kishan Manager Faridabad 26 20 22000 5720 4400 5000 37120 3000 34120
2007 Sharma
Nov. Rupali Senior Meerut 26 15 20000 5200 3000 3500 31700 2000 29700
Nov. Surjeet Engineer Meerut 26 15 16000 4160 2400 3500 26060 2000 24060
2007 Singh
Dec. Ram Chief Delhi 26 30 25000 6500 7500 7000 46000 7000 39000
Dec. Kishan Manager Faridabad 26 20 22000 5720 4400 5000 37120 3000 34120
2007 Sharma
Dec. Rupali Senior Meerut 26 15 20000 5200 3000 3500 31700 3000 28700
Dec. Surjeet Engineer Meerut 26 15 16000 4160 2400 3500 26060 3000 23060
2007 Singh
Jan. Ram Chief Delhi 30 30 25000 7500 7500 7000 47000 6000 41000
Jan. Kishan Manager Faridabad 30 20 22000 6600 4400 5000 38000 2000 36000
2008 Sharma
For example, we may have separate tables for personal attributes (i.e.
name, designation, location etc.), pay formulation parameters (i.e. %
DA rate, % HRA rate, etc.) and the pay attributes (i.e. basic pay, DA,
2018-19
159
HRA, TA, etc.). Personal details table may be used for recording personal
attributes of every employee, consuming only one row of data (i.e. record)
for each employee. The pay details table may contain records of pay
attributes for all employees, with a new row of data created for an
her. Other tables may also be created for recording different parameters
tables for storing the ‘% DA rate’ for different months, ‘% HRA rate’ for
have to insert columns with matching values in the two related tables.
these two tables, rows with a common value in ‘employee name’ field of
both the tables get related. The two common fields used in a relationship
between tables are called the key fields. In our example, any ‘employee
name’ in the personal table appears only once (i.e. unique row); and
such tables, wherein the lines connecting rows of two tables represent
relationships.
Month % DA
Nov. 2007 26
Dec. 2007 26
Jan. 2008 30
Delhi 30
Faridabad 20
Meerut 15
2007 Kishore
2007 Sharma
Nov. Rupali 20000 5200 3000 3500 31700 2000 29700
2007 Varma
2007 Singh
2007 Kishore
2018-19
160
will have altogether five tables. Our first table, with the name
two similar values in this field. The ‘DesignationID’ field will merely
repetitions of some of the values. This field will form one of the foreign
Locations.
long, at the same time leaving sufficient scope for easy identification
of intended attributes. You may also mark that no blank (gap) is left in
between a name. We have also used both upper and lower cases for
such is case insensitive. Read Box-6.9 to know more about the naming
convention.
will form the Primary Key for this table. The third table with the name
the original information; and these links in database terms are called
and foreign keys is called a Join. Joins along with Structured Query
Language LanguageLanguage (SQL) serve as valuable tools for manipulating tables. But,
these topics are beyond the scope of this book, and hence not
elaborated further.
2018-19
161
table will be used for storing the percentage rate of DA for different
‘MonthID’ forming the Primary Key. Now our last table will be used for
be used for making each salary record as unique data and hence it will
form the Primary Key of the table. The ‘MonthID’ (forming relationship
table, the field of ‘Basic’ will be entered by the Pay-clerk for every
level of employee and his or her attendance record for the month. The
may notice that out five tables, only the ‘TabMonthlySal’ table will
grow every month with the addition of as many records as the number
any of the table for storing attributes of ‘DA’, ‘HRA’, ‘TA’, ‘GrossSalary’
and ‘NetSalary’. These fields are computed fields; and as such the
Pay-clerk is not required to enter any data for these fields. Then why
while.
(e.g. “Emp ID” will be written as [Emp ID] or Emp_ID, whereas it could
brackets ([]). You cannot use a field name twice in the same table. It is
for naming objects like Tables, Queries and Forms; however, no two
2018-19
162
Computerised Accounting System
ACCESS
have to first start up the Microsoft Access Application. For this, click
Programs; then point to Microsoft Office; and then click Microsoft Microsoft
> Micr > Microsoft Of osoft Ofosoft Office > Microsoft Access 2007). You will be taken to the
templates. In the centre you will see the ‘New Blank Database’ section
for starting straightaway with a new database. On the right side is the
‘Open Recent Database’ section for opening the existing database files.
Click on Blank
Database under
Box - 6.10
If you have so far worked only with Microsoft Office 97-2003 or its
earlier versions, then the window style that you may find now may
look little unfamiliar. However, this style is now common in all Microsoft
Office 2007 applications. Herein Microsoft makes use of a new resultsoriented user interface through
which commands and features that
were often buried in complex menus and toolbars are now easier to
find. The user interface now includes task-oriented tabs that contain
Ribbon.
2018-19
163
marks. Also note that even if you do not type the default extension
application.
different components of
window.
Database File
Box - 6.11
know many of the programming concepts, you can still maximise use
of Access with the help of Access Wizards that will guide you through
concepts, we will mostly use the design tools, and in some cases the
2018-19
164
our first table. All we have to do is to type an employee name (say ‘Ram
Kishore’) in the second column and click enter (or use Tab) to move to
data type for each field based on the type of data entered into each
column. You will see that headings of these colums are named as
‘Field1’, ‘Field2’ and ‘Field3’. Move the mouse pointer over the column
Type ‘EmpName’ and press enter to change the column name from
now that the first column of the table has the name ‘ID’ which was
You may see your first record starting with a number different from
the expected ‘1’. Even this number will be replace by the next number
if you delete the record and start afresh. Ignore this limitation as it
may not have any impact on our application. Move the mouse pointer
over ‘ID’ heading; double click to select this heading, and change its
value to ‘EmpID’.
The structure of the ‘Table1’ that you see presently in the Datasheet
View is already complete. At this stage, you can chose to enter the
values of the other records as well. If you are not contended with the
width of any column in your table then with the insertion point
positioned in any record of this column click Home Tab > More (under
Records Gr oup) > Column W oup) > Column Width. In the dialogue box that appears
with the present value of column width, you can enter a different
value and click Ok; else click BestFit to set the width of column to
2018-19
165
accommodate the longest entry (See Figure 6.7). You can also do this
column in the header row till the pointer changes to a vertical line
Did you notice that our first table is still named ‘Table1’ and it has
not been saved yet. Click on the Save button on the Quick Access
toolbar on left hand top corner of window. A Save As Save As dialogue box will
2018-19
166
appear with the default table name of ‘Table1’ as shown in Figure - 6.8.
Now let us look at this table in Design View. Click on the View
button placed on the left end of the ribbon (in View group) under the
current table will appear in the working area of the window as shown
in Figure – 9. In Design View, you can tell Access which all fields will
‘TabEmpDetails’ table, the field name as well as data type are already
filled up for all intended fields. You may also notice a icon of ‘Key’
of the table.
there are several other properties that can be set independently for
2018-19
167
view, these parameters of a field will vary with the choice of data type.
A narration of each property (when you click the desired property) also
Having fully completed the structure and data of our first table and
can now move on and create rest of the four tables. Click on Create
Tab > Table Button as illustrated in Figure – 10. The Data Sheet view
of the default table (Table1) will appear again. You can choose this
view or the Design View to create the rest of the tables and save them
under intended names. For your conveniene, the field names and data
No.
1. TabEmpID
EmpName Text
DesgID Number
LocationID Number
2. TabDesignations
2018-19
168
Designation Text
3. TabLocations
Location Text
4. TabDARates
5. TabMonthly Salary
MonthID Number
EmpID Number
employee.
per rules.
Having completed the designs of all data tables, we will now move on
on the Databse Tools Tab and then Relationships button under Show/
2018-19
169
do not see this dialogue box click on Design > Show Table. In the
Show Table dialogue box, select a table and clik Add button to add it
in the relationship window. Add all the five tables in this manner.
In the working area you will see all five table objects, each detailing
the fields within them. You can reposition these table objects any
pointer in the caption area of the selected table object, hold down the
left mouse button and then drag the mouse to shift table to its new
MonthID in the TabMonthlySalary table object, hold down the left mouse
will appear as soon as you release the mouse button. You will notice
(see Figure-6.13).
2018-19
170
selected for joining the two tables. Click on the Create button. A black
line will appear joining the two tables at the common field. This line,
also referred to as Join Line, establishes the relationship between
type. You may now repeat above steps to establish other relationship
data from multiple tables and placing specific conditions for the
2018-19
171
Click on Create > Query Design. A Show Table dialogue box will
In case you do not see this dialogue box click on Design > Show
Table. In the Show Table dialogue box, select a table and clik Add
button to add it in the relationship window. Add all the five tables in
this manner. Close the Show Table dialogue box by clicking on Close
button. In working area above the Query Table, you will see all five
table objects (with complete list of their fields) along with the one-toone relationship that has been
established between tables earlier. You
the portion below Table objects, you will see blank columns that
2018-19
172
In the first column of the design grid, click on the Table row. A
dropdown button will appear on this cell. Click on the button to get the
column, click on Field row and get the dropdown list of all fields in
SalaryID (from TabMonthlySal) has been selected for view in the Query.
The above operation could have also been done simply by double clicking
the ‘SalaryID’ in the list box of TabMonthlySal object. You could have
also done this by positioning the mouse pointer on the identified field
of a table object, held down the left mouse button, and dragged it to
the field row of the desired column of the design grid, and then released
You shall take care to fill different fields from Table object into the
Design Grid in the same order in which you want to display these
fields in the Query Results data sheet. Now select any of the described
methods to fill other columns of the design grid in the specified order
illustrated in Figure - 6.15. In case you may not require the need of
displaying MonthID, you may click on this field at the row marked as
the Run button under Results Results group of Design Tab, you will see the
2018-19
173
execute all instructions stored by you in the Query, and to display the
results. You may adjust the column widths by any of the methods
described earlier for Tables. Click on the Save button on the Quick
Home Tab. In the Design Grid, Click on the Field row of the first balnk
100’. In this expression, the word ‘DA’ coming before the colun(:) will
heading of the column. The rest of the typed part will form the actual
of Run command. You may notice that in our expression for ‘DA’, we
have made use of ‘Basic’ field which is already forming a part of Query
by taking it within the square parenthesis ([ ]). We have also made use
be easily comprehendable that the operator ‘*’ and ‘/’ stand for
the ‘Run’ command, you will notice the last field for ‘DA’ with its
different months.
Come back to the design view (by Clicking Design View button
under Views Group) and repeat above listed procedure to fill up the
next field of Query for computing HRA using the expression ‘HRA:
Next, create the field for ‘Gross Salary’ by typing the expression
earlier and also run the ‘Run’ command to look back the outcome of
Query, the Figure - 6.16 shows the Datasheet View of the Query. Your
view may be little different based on the actual data that you have
that the total dataset of the Query is composed of all data rows
dataset to any restricted values for any of the specified field. For
2018-19
174
for which the MonthID is ‘6’. With this objective, click on the Criteria
row under MonthID field and type ‘=6’ as shown in Figure - 6.17. Now
if you click on ‘Run’ command, you will see the data records
175
For a better presentation, you may also like to sort the records in
alphabatically ordered names. For this, click on the Sort row below
the EmpName field. Now Click on the pull down button that appears
on the end of the cell and select Ascending (see Figure – 6.17). Run
the Query and notice that the records are alphabatically arranged as
Queries. Now we will look into the mechanisms for placing information
into the tables as and when the need arises. The Microsoft Access
provides two primary mechanisms to achieve this goal. The first method,
blank row at the bottom. We can also make changes in any other row
the table by clicking on the Save button on the Quick Access toolbar.
Box - 6.12
wherein you can enter information for one record at a time. Access
also provides tools for creation of a Split Form which shows the
The two views in this form are synchronised so that scrolling in one
view causes the scrolling of other view to same location of the record.
database. This method is more user-friendly for the data entry operator,
though it may entail a little more work on the part of the database
designer.
For our Pays Roll Application, let us create a simple Form for the
selected the intended Table thus, Click on Create Tab and then on
will appear in the working area of Window showing first record of the
Table as illustrated in Figure 18. At the bottom of the Form you will
see Navigation bar with buttons for ‘First Record’, ‘Previous Record’,
2018-19
176
‘Next Record’, ‘Last Record’ and ‘New Record’. In the middle of Navigation
bar, you will also see the number of current record (e.g. 1 of 24). Click
on the buttons for Next Record a few times to scroll through a few
records in Form View. You may also click other buttons to understand
their functions. If you click on New Record button, you will notice that
a new record will get displayed with ‘SalaryID’ SalaryID’SalaryID’ displaying (New) while
all other fields remaining blank. You may recall that SalaryID is the
We can make some changes in the size of data boxes and their
location within the Form. With this objective, let us first change the
the Design View, click on any of the Text Boxes. Move the mouse pointer
arrow appears. Press the Left Mouse button, and holding it there move
the mouse towards left to reduce the width of Text Box to desired size.
You will notice that the sizes of all Text Boxes have reduced
automatically. Now select all text boxes by clicking once on each box
while pressing the Shift key. Now move the Mouse pointer over any of
the box till a sign with four arrows (similar to a + sign) appears. Press
the Left Mouse button, and holding it there move the mouse towards
2018-19
177
Form while we are in Design View. Click and select the MonthID Text
Box. Keeping the mouse pointer within this Box, click the right mouse
button and select Change To > Combo Box Change To > Combo Box as illustrated in Figure –19.
You will notice that the Text Box of MonthID field will change to a
Combo Box with a pull down button appended at the end of box. With
the MonthID MonthID MonthID ComboBox still selected, click on the Property Sheet Property Sheet
Button under Tools Group. This will open up the Property Sheet of the
Property Sheet (which may be already open before you), click on the
combo button against ‘Row Source’ property to see the pull down list
of Tables; and select ‘TabDARates’. Note that you will be able to see
the Combo option under ‘Row Source’ property, only if, the ‘Row Source
property of MonthID field of the form, change the view to Form View.
You will notice that the Form now shows a Combo Box against the
MonthID field and in its pull down list only those MonthIDs will appear
which are already stored in the TabDARates. You may realise that in
2018-19
178
more user-friendly. However, these may entail the use of ‘Macro Builder’,
the scope this book, though you may explore them gradually after
programming. You may also develop suitable designs of Forms for other
ACCESS
under Office Button on left hand top corner of the window. Even a
used for the print purpose, though it allows for more flexibility in
selecting the fields to print, and to have more control on the overall
layout and format of the print output. The Report in Access is thus
Here also you can take the elaborate route of step-by-step design as
was done in case of Tables, Query or Form. However in this case, you
2018-19
179
Tab, and then on Report W Report WReport Wizard under Reports Group. In the dialogue
move all fields from the Available Fields List Box to the Selected Fields
Click Next to see the second dialogue box asking for Grouping Levels.
Here select ‘SalMonth’ and click on the Arrow button (else double click
Figure – 6.21). Click Next to reach the third dialogue box asking for
sorting order of the records. Here you can click on the Pull-down Arrow
next to the first text box and then select ‘SalaryID’ from the drop down
see the dialogue box for layout of the Report. Retain the default ‘Stepped’
all the columns of the Report in a single page view (see Figure - 6.22).
Again Click Next to see the dialogue box for selecting style of Report.
You may choose any style and later on experiment with the others as
well. One more click of Next will take you to the dialogue box seeking
the Finish button to see the Report appearing in working area of window
2018-19
180
You may notice that the extent of data in above designed Report is
the Report for generating monthly as well as annual Pay Rolls. We can
also change the Criteria of our Query to get individual Report for each
month (i.e. Pay Slip) or for the whole of year (i.e. Annual Statement).
2018-19
181
all the values under different columns for each group. For example,
we may want to see the total Basic of all employees for November 2007
group. For such modification, open the Report in Design View by Clicking
on Home Tab and then clicking on Design View under Views Group.
In the design view as shown in Figure - 6.23, select the field Basic by
Group of Design Tab. In the pull down menu that appears, click on
below the Basic Text Box. You can repeat above steps with other fields
you click on View button (i.e. click Design > Report View), you will
see the sum total of each column (with in each group) appearing in the
clicking on the Save button under Quick Access Bar. Our PayRoll
Application in Access has been completed and saved. You may now
2018-19
182
Summary
• One of the tasks in analysis of requirement is to identify and list out the
• Since the data stored in different tables may be related, such relationship
relational database.
and foreign key. Primary key consists of minimum possible one or more
than one attributes of a table, which uniquely identifies each row of that
table. Foreign key consists of set of attributes, which from primary key in
systems use ‘server database’ unlike single-user (or desktop) systems using
• MS-Access is an example of ‘desktop database’. Oracle, SQL Server, IBMDB2 is examples of ‘server
databases’, Desktop databases may be satisfactory
for SOHO (Small Office Home Office) organisations as they offer inexpensive
requirements.
2018-19
183
EXERCISE
2. MS Access is a:
b. Presentation Software
a. Joint fields
b. Main fields
c. Key fields
d. Table fields.
d. All of above
2018-19
184
d. All of above
a. .accbd
b. .exl
c. .doc
d. .exe
12. In order to retrieve select data meeting a specified criteria from two different
tables of Access database, we may make use of :
a. Table
b. Query
c. Form
d. Report.
2018-19
185
13. To expect a well formatted printable data from Access database, we may use:
a. Table
b. Query
c. Form
d. Report.
DBMS softwares?
database?
5. What do you understand by terms ‘key field’ , ‘primary key’ and ‘secondary
key’ in a database?
6. List the conventions that you will follow, while naming different fields of a table?
7. What are the uses of ‘query’ object in Access program?
8. What do you understand by ‘Form’ object in Access and how are they useful?
10. What do you understand by database? What are the ways in which data is
12. Describe in brief the function of ‘Table’, ‘Query’, ‘Form’ and ‘Report’ object of
Access program?
1. You are starting to plan ahead for you job search. You decide to maintain a
2. Search for at least eight companies. You wish to apply for include company
name, address, telephone and fax numbers. If possible, also include the name
8. Preview Table
2018-19
186
10. Change the page layout so that entire table fit on the page.
11. Close company information table.
ANSWER
Q.1.
1. c. 2. d. 3. a. 4. c 5. c 6. c. 7. a
2018-19