INVENTORY

The inventory system operates in much the same way as the accounting system. First
we set up the inventory details, which is a similar operation to creating the chart of accounts
although, in this case there is no pre defined set of stock groups. Second, we create the individual
stock items. Which is similar to setting up the ledgers? Finally, we are ready to use vouchers to
record the various stock transactions.

F11- Show more features – Yes

Show All features – Yes

1) Stock groups:-
We classify stock items into stock group based on any common feature
Gateway of Tally Create Stock Group
2) Stock categories:-
This is a useful tally feature, which allows us to classify similar stock items together
across different stock groups, enabling us to obtain reports on alternatives or substitutes for a stock
item.
Gateway of Tally Create Stock category

3) Locations or Godowns:-
We can specify where the stock items are held e.g., which warehouse shelf or rack,
obtain stock reports for each Godown, and account for movement of stock between
locations/Godowns.
Example: Madurai, Nagarcoil, Chennai
Gateway of Tally Create Location

4) Units:
 We will need to create units of measure for stock items. These can be simple units such
as nos, miters, kilograms, pieces, or compound units,
e.g., box of 10 pieces or 1 dozen is 12 no’s
Gateway of Tally Create Units

5) Stock items:-
Stock items are the actual items in stock, and we account for the issued and receipts of stock at
this level.
Creating single stock group:-
Gateway of Tally Create Stock items Stock Groups
Stock Categories Units

Set Rates Screen:

Press F12- Providing Standard Buying and Selling Rates – Yes

6) Gateway of Tally Accounting Voucher F9-Purchase

7) Gateway of Tally Accounting Voucher F8-Sales Ctrl + V (open the party
name)

8) Gateway of Tally - Voucher Alt + F7 Transfer Stock Entry

(Location Change Entry)

9) Gateway of Tally -Accounting Voucher –Ctrol + F7 Physical Stock Entry

(Balance Stock Entry-Closing Stock)
 EXERCISE

1) Pavithra commenced a business with her capital of Rs. 50 lacks. She paid rent for
Godown Rs. 2000 per month. She purchased the following Goods from Gugan to be paid on
December 31st of 2007.
Lenovo Moniter 100 Nos Rs.5000
Dell Moniter 100 Nos Rs.5000
Acer Moniter 100 Nos Rs.8000
HCL Moniter 100 Nos Rs.4500
Sold Goods to Raghavan for Credit.
Lenovo Moniter 60 Nos Rs.8000
Dell Moniter 40 Nos Rs.6000
Acer Moniter 85 Nos Rs.8500
HCL Moniter 78 Nos Rs.6000
She Returned 3 Nos of all Moniter to Gugan.
She found outstanding Travelling expenses of Rs. 1500/- Per Month
She Received Discount of 6% for Purchase.
Cash Deposited to Indian Bank 50000. Draw for capital 8000, Purchase Furniture from
ABC @CO Ltd 8000 Deprecation on Furniture 8% .

2) Mr. Sakthi started a business with his capital Rs. 1.50 crore cash Rs 2 lacks. Building and
Rs.1 lakes worth Machinery and Rs. 1 lash worth Furniture. He invested Rs.1.5 lakes in Bajaj
mutual fund and should get dividend @ 5% on the investment amount on 18 th of every month &
Rs. 500000 as current account in BANK of Baroda. He purchased the following Goods from
Usha. Stored in MainLocation.
IBM Computer 100 pcs. At 15000 per pieces
Sony 51 “television” 100 pcs. At 25000 per piece
Sony Cyber short camera 100 pcs. At 10000 per piece
IBM Laptop computer 100 pcs. At 14000 per piece

He Sold 35% of 1st product @17000 Rs. to Akash for credit @ 4% of Discount
He spent transport expenses of Rs. 8000
He Sold 50% of 2nd products @28000.Rs. to Mansur Discount @ 2%
He Sold 50% of 3rd product @13500 Rs. To Anwar @ 6% Discount
He Sold 75% of 4th products @ 15500. Rs. to Appas @ 7% Discount
Repacking Charges Rs. 15000
Prepare Stock Summary.
 3) Ram, Rahim & Robert commenced a business with their capital of Rs.200000
Rs. 300000 & Rs. 400000 respectively. Open an account in Global Trust Bank by Rs. 10,000/-
as current acc. They also brought building for Cash Rs.50,000
They purchased the following Goods & Stored in Trichy

a) Mango juice pocket Small @ Rs.10 & Big @ Rs. 12/- each 1000 Qty of pockets
b) Apple juice pocket Small & Big each 1000 pocket at same rate of Mango juice.
c) Grape juice pocket Small & Big each 1000 pocket @same rate of Apple juice
d) Pine apple pocket Small & Big each 1000 pocket @ same rate of Grape juice.
They bought the above Goods as given below.

1) Product (A) From Mugundan For 40 Days 4) Product (D) From Maran For 50 Days
2) Product (B) From Mukesh For 30 Days They Paid Advertisement of Rs. 10000
3) Product © From Murali For 10 Days

Transfer The Goods As Given Below.

i) Product (A) Big 50% To Salem Godown. Small 50% To Kovai Godown
ii) Product (B) Big 50% To Kovai Godown Small 50% To Salem Godown
iii) Product © 50% Of All Goods To Salam Godown
iv) Product (D) 50% Of All Goods To Kovai Godown
They Sold the product as given below.
i) 50% all Big pockets to an Arul @ 20 Rs.
ii) 50 % of all Small pockets to Anu @ 15 Rs.
iii) Balance of all big pockets for cash.
They took 5% each of their cash capital for personal use & they accepted to pay as 1% interest
on Drawings.

4) Patel commenced a business with his capital of Rs. 50 lakes. Bought Buildings (4) Nos
worth Rs. 2 -lakes each. Furniture Rs. 1- lakes & Machinery worth Rs. 1- lakes are included he
Deposited to ICICI Bank Rs. 250000/- & Rs 10 lakes in HDFC as fixed Deposit.
He purchased the following Goods from Mugundan for Cash 50% and Credit 50%. (Stored in
Delhi Godown.)

S.No Stock Items Quentity Standard Rate Selling Rate

1 Sweaters Big 1000 Nos 200 350
2 Sweaters Small 1500 Nos 150 300
3 Wollen Cap 2000 Nos 50 150
4 Rain Coat Big 1000 Nos 800 950
5 Rain Coat BiG 1000 Nos 650 900

Paid Wages of Rs. 1,500 to Delhi Godown p.m.

 Transferred the Goods as follows.
1) Batch no 3: to Kashmir godown (all Goods)
2) Batch no 4 & 5: to Kodaikanal godown (all Goods)
3) Batch no 1 & 2: to Ooty (50% of each Goods)
He Sold the Goods as follows.(Discount @ 5% Each Goods)
1) 50 % from each of the product from Ooty to lakshmanan on credit.
2) 1800 packs of batch no 3 to Shyamala on credit
3) 375 packs of each product from Delhi Godown for ICICI Cheque Received.
4) 70% Goods from batch no 4 & 50% of Goods from batch No 5th Product respectively to
Madhav on credit.
5) He Sold the balance Goods in Ooty for Cash
He spent advertisement of Rs. 50,000. He paid salary of Rs.12000 to his staff. He Received
Rent Rs.25000/-. Show the balance stock entry.

6) Mr. Elangovan & Siva have started a business with their capital of Rs. 10 lakhs & Rs. 15
laksh respectively.Bought a Building for Cash Rs. 3,00,000
They Purchased following Goods from Mrs. Fathima on Credit.
(Stock Stored in Chennai Godown)
T – Shirts – 100 boxes @ Rs. 50/-
Roundneck Banyans – 50 boxes Rs. 30/-.
Redaymade Shirts – 200 packets @ Rs. 50/-
Chuddidhars – 100 packing Rs. 100/-
Jeans pants- 100 packets Rs. 100/-
They Opened an account in ICICI Rs. 50,000.
They Sold the following Goods as given below @ 10% Discount on each product.
i. 70 boxes of T-Shirts to Mr. Kandan @ Rs. 80 for credit
ii. 30 boxes of Banyans @ Rs. 80
iii. 12 Pockets of Readymede Shirts to Miss Mala @ Rs. 100 for credit
iv.80 packets of Jeans Pants to Mr. Raghu @ 250 for cash
v. 55 packing of Chuddidhars to Miss Deepa @ Rs.200 for credit
They spent Rs. 10000 for advertisement
They Transferred all the balance Goods as given below
T-Shirts & Jeans Pants - To Coimbatore
Banyans & Shirts - To Selam
Chuddidhors - To Madurai
Prepare Stock Summary list.
7) Kishore Trading company started business with cash 80,000
Paid into BANK Rs. 10000
Purchase from Uthira & co
Television:-
BPL Color TV Rs. 7000 10-nos
BPL Black & White Rs. 9000 12-nos
Sony Rs. 12500 10-nos
Samsung Rs. 11,200 15-nos
Purchase from Ruba & Sons
COMPUTER:-
HCL Rs. 12000 15-nos
LG Rs. 10000 10-nos
Credit Sales Hamsha Traders
Television:-
BPL Black & White Rs. 9500 2-nos
Sony Rs. 13500 5-Nos
Credit Purchase From Santhosh Electricals
Fan:-
Usha Rs. 1000 5-nos
Philips Rs. 1200 4-nos
Cash sales
Computer:-
HCL Rs. 12000 4-nos
LG Rs. 10000 4-nos
Fan:-
Usha Rs. 1000 2-nos
Philips Rs. 1200 4-nos
Paid into Telephone charges Rs. 1000