PROJECT REPORT SUBMITTED TOWARD THE PARTIAL FULFILLMENT OF

BACHELOR OF COMMERCE (HONOURS)

PROJECT REPORT
ON
BASIC ACCOUNTING SOFTWARE FOR COMMERCE LAB PROJECT REPORT
BATCH: 2022-2025

Submitted By: PROJECT GUIDE

Name: Rahul Singh Rawat Name: Mr. Bhanuj Sobti
Enrollment No: 01519588822 Designation: Assistant Professor

Don Bosco Institute of Technology

Affiliated to Guru Gobind Singh Indraprastha University, New Delhi
 CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project work “BASIC ACCOUNTING SOFTWARE FOR
COMMERCE LAB PROJECT REPORT” made by Rahul Singh Rawat, B.Com(H),
01519588822 is an authentic work carried out by him under the guidance and supervision of
Mr. Bhanuj Sobti.
The submitted project report has been found satisfactory for the partial fulfillment of the
Bachelor of Commerce (Honours) degree.

Project Supervisor
Name: Mr. Bhanuj Sobti
Signature:
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.

They have provided me with valuable guidance, sustained efforts, and a friendly approach. It
would have been difficult to achieve the results in such a short period without their help.

I deem it my duty to record my gratitude towards the Project supervisor Mr. Bhanuj Sobti
who devoted his precious time to interact, guiding, and giving me the right approach to
accomplish the task and also helped me to enhance my knowledge and understanding of the
project.

Signature:
Name of Student: Rahul Singh Rawat
Enroll. No:01519588822
Course: B.com(H)
Semester: 3rd Sem.
 DECLARATION
I hereby declare that the following documented project report titled “Basic Accounting
Software Lab Project Report” is an original and authentic work done by me for the partial
fulfillment of the BACHELOR OF COMMERCE (HONOURS) degree program.

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original
to the best of my knowledge & I have not submitted it earlier elsewhere.

Signature:

Name of Student: Rahul Singh Rawat

Enrolment No. :01519588822

Course: B.COM(H)

Semester: 3rd Sem.

 TABLE OF CONTENTS
S.No. Particular Page No.
1) BASIC ACCOUNTING SOFTWARE LAB
1.1 Hardware Requirement Details 1
1.2 Software Requirement Details 1
2) Introduction to Accounting Software 2-3
‘TALLY.ERP9’
3) Screen Shots And Descriptions
3.1 Installation of Tally (Screenshots) 3
3.2 Opening of Tally (Description and Screenshots) 4
3.3 Details of Working in Tally (Description and 4-7
screenshots)
4) Question and Solution on creation a new 8-10
company procedure on Tally software
application along with Basic Configurations
(Screenshots)
5) Question and solution on Tally software 10-17
application related to creation of Ledgers,
posting Journal entries through vouchers and
Trial Balance (Screenshots)
6) Question and solution on Maintenance of cash 17-24
Book. (Screenshots)
7) Question and solution on Reconciliation of Cash 24-30
Book with Bank Statements. (Screenshots)
8) Question and solution on Calculating the Interest 30-37
(Screenshots).
9) Question and solution on Inventory or Stock 37-49
(Screenshots).
1. BASIC ACCOUNTING SOFTWARE LAB
1.1 Hardware Requirement
• Operating System: TALLY.ERP 9 is compatible with Windows 7 or later.
• Processor: A minimum of a 1.5 GHz Intel Pentium processor or equivalent is
required.
• RAM: At least 1 GB of RAM is the minimum requirement, but 2 GB or more is
recommended for better performance.
• Hard Disk: A minimum of 150 MB of free disk space is necessary for installation.
• Display: A monitor with a minimum resolution of 1024x768 is needed.
• Internet Connectivity: A stable internet connection is required for some features,
like online updates and data synchronization.
• Input Devices: Standard input devices such as a keyboard and mouse are essential.
• Multi-User Configuration: For multi-user access, a Local Area Network (LAN)
setup is needed.
• Backup Storage: Sufficient storage space for regular data backups is crucial to
safeguard your financial data and transactions.
1.2 Software Requirement
• Operating System: TALLY.ERP 9 is compatible with Windows operating systems,
including Windows 7, Windows 8, Windows 8.1, and Windows 10. It can also run
on various Windows Server editions.
• .NET Framework: To use TALLY.ERP 9, you must have Microsoft .NET
Framework 4.5.2 or a later version installed on your computer. This framework is
essential for several core functionalities.
• Web Browser: While TALLY.ERP 9 is primarily a desktop application, it may
require a standard web browser, such as Internet Explorer, Microsoft Edge, or
Mozilla Firefox, for accessing online features, updates, and support resources.
• Database Management System: TALLY.ERP 9 utilizes its proprietary database
system, and there's no need to install a database management system (DBMS).
• Administrator Rights: You need administrator rights on your computer for a
successful installation and proper configuration of TALLY.ERP 9.
• Anti-virus Software: It's essential to have up-to-date antivirus software installed,
but ensure it's configured not to disrupt TALLY.ERP 9's operations and data access.
• Firewall Configuration: Configure your firewall to permit TALLY.ERP 9's
communication, especially if it requires internet access for updates and data
synchronization in a multi-user environment.
• PDF Software: A PDF viewer or writer is necessary for generating and viewing PDF
documents, which are TALLY.ERP 9 is frequently used for reports and invoices.
• Microsoft Office: Although not mandatory, having Microsoft Office installed can be
advantageous for exporting data to Excel and Word formats, which may be necessary
for certain reporting needs.
• Internet Connection: A stable and active internet connection is required for various
online features, including receiving software updates, accessing help and support
resources, and ensuring data synchronization in multi-user configurations.

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2. Introduction to Accounting Software ‘TALLY.ERP9’
Tally. ERP 9, developed by Tally Solutions, is a versatile software package designed to
assist businesses in managing their accounting and financial operations with ease and
accuracy. The software is renowned for its user-friendly nature, making it accessible to
both experienced accountants and those with limited financial expertise. It has gained
global recognition and is widely used in over 100 countries.
Key Features and Capabilities:
• Multi-Functionality: Tally.ERP 9 is not merely an accounting software; it serves
as a comprehensive business management solution. Beyond financial accounting,
it encompasses a wide range of functions, including inventory management,
payroll processing, and compliance management. This all-in-one approach enables
businesses to streamline their operations by reducing the reliance on multiple
software applications.
• Data Security: Maintaining the security of financial data is paramount, and
Tally.ERP 9 prioritizes data protection. The software employs robust user access
controls, data encryption, and regular data backup options to safeguard sensitive
information, ensuring the confidentiality and integrity of financial records.
• Remote Accessibility: In today's interconnected world, flexibility is essential.
Tally.ERP 9 offers remote access, allowing authorized users to work on their
financial data from anywhere with an internet connection. This feature is
especially valuable for businesses with distributed teams or those seeking to
access critical financial information on the go.
• Easy-to-Use Interface: One of Tally.ERP 9's most significant strength is its user-
friendly interface. Even individuals with limited accounting or finance expertise
can quickly adapt to the software, thanks to its intuitive design and
straightforward navigation. This ease of use minimizes the learning curve and
helps businesses leverage the software's capabilities effectively.
• Real-time Reporting: Timely and accurate financial insights are indispensable
for informed decision-making. Tally.ERP 9 provides real-time reporting, enabling
businesses to access up-to-the-minute financial data, generate reports, and make
informed strategic choices promptly. This feature enhances overall efficiency and
responsiveness.
• GST Compliance: With the evolving tax landscape, compliance with Goods and
Services Tax (GST) regulations is a significant concern for businesses. Tally.ERP
9 offers robust GST compliance features, simplifying the process of GST return
filing and ensuring that businesses adhere to the latest tax regulations effortlessly.
• Multi-Currency Support: Businesses involved in international trade or
transactions appreciate Tally.ERP 9's multi-currency support. It allows for
seamless recording of transactions in various currencies, simplifying cross-border
financial management.
• Inventory Management: Tally.ERP 9 includes advanced inventory management
capabilities, enabling businesses to monitor stock levels, manage reorders, and
track items efficiently. This feature is particularly useful for retail, manufacturing,
and distribution businesses.

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 • Payroll Processing: Streamlining payroll activities can be time-consuming and
prone to errors. Tally.ERP 9 simplifies payroll processing, calculating salaries,
deductions, and taxes accurately. This reduces the administrative burden and
minimizes payroll-related discrepancies.
• Audit and Compliance: The software supports various compliance requirements,
including statutory and regulatory audits. It assists businesses in adhering to
financial standards and reporting guidelines, ensuring they remain compliant with
legal and industry-specific regulations.
3. Screen Shots And Descriptions
3.1 Installation of Tally (Screenshots)
• First, you have to open Google and search download Tally.ERP 9.

• Click on the Second link and after that, you see the interface that shows Tally.ERP
9 for window click on that link your download will start.

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 3.2 Opening of Tally (Description and Screenshots)
• Locate the Tally.ERP 9 icon on your computer.

• Double-click the icon to launch the software.

• Enter your company name and password.

• Click the Login button.
• The Tally.ERP 9 main screen will appear.

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 • From the main screen, you can access all of the features of Tally.ERP 9.
3.3 Details of Working in Tally (Description and screenshots)
a. Create ledgers:
• Open Tally.ERP 9 and click on the Account Info.

• Select Create Ledger.

• Enter the ledger name and other details.

• Click on the Create button.

b. Create groups:
• Open Tally.ERP 9 and click on the Account Info.

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 • Select Create Group.

• Enter the group name and other details.

• Click on the Create button.

c. Create vouchers:
• Open Tally.ERP 9 and click on the Accounting Vouchers.

• Select the type of voucher you want to create.

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 • Enter the voucher details.
• Click on the Save button.
d. Gateway of Tally: The Gateway of Tally is the main menu for Tally.ERP 9. From
here, you can access all of the other modules in the software. Some of the common
features of the Gateway of Tally include:
• Create new company: This option allows you to create a new company in
Tally.ERP 9.
• Open an existing company: This option allows you to open an existing
company in Tally.ERP 9.
• Configuration: This option allows you to configure various settings for
Tally.ERP 9, such as the company name, financial year, and tax rates.
• Help: This option provides access to the Tally.ERP 9 help documentation.

e. Reports: The Reports module is used to generate reports, such as the balance sheet,
profit and loss statement, and cash flow statement. Some of the common features of
the Reports module include:
• View the balance sheet: This option allows you to view the balance sheet for
your company.
• View the profit and loss statement: This option allows you to view the
profit and loss statement for your company.
• View the cash flow statement: This option allows you to view the cash flow
statement for your company.
• Generate other reports: This option allows you to generate a variety of
other reports, such as the trial balance, the general ledger, and the aged
debtors report.

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4. Question and Solution on creation a new company procedure on Tally software
application along with Basic Configurations (Screenshots)
Step 1: Launch Tally. ERP 9
• Open the Tally. ERP 9 software on your computer.

Step 2: Select 'Create Company'

• Once Tally is open, on the Gateway of Tally screen, you'll see various
options. Click on "Create Company" to start the company creation process.

Step 3: Company Creation Form

• After selecting "Create Company," you'll be presented with a Company Creation
form. Fill in the necessary details in this form.

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Step 4: Enter Company Name and Address:
• In the Company Creation form, you will need to provide the following information:
➢ Company Name: Enter the name of your company.
➢ Mailing Name: Enter the name you want to appear on your invoices and
reports.
➢ Address: Provide the complete address of your company.

Step 5: Set Financial Year and Books Beginning Date

• You'll also need to specify your financial year details:
➢ Financial Year From: Enter the start date of your financial year. Books
➢ Beginning From: Enter the date from which you want to start maintaining your
accounts. This can be the start date of your financial year or any other date of
your choice.

Step 6: Select the Appropriate Statutory Compliance

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 ➢ Tally.ERP 9 supports different statutory compliance requirements based on your
location and business type. You'll need to select the relevant options, such as VAT,
GST, TDS, etc., and configure them as needed.
Step 7: Provide Security Control Information
➢ Set the security control options based on your needs. This includes setting password
for the company and providing the name of the administrator.
Step 8: Enable/Disable Features
➢ You can enable or disable various features based on your business requirements.
These features include inventory management, order processing, job costing, etc.
Step 9: Accept and Save
➢ Review all the information you've entered in the Company Creation form. If
everything is correct, press the "Accept" button to save the company details.
Step10: Confirmation
➢ Once you accept and save the details, you'll receive a confirmation message that
the company has been created successfully.

The new company is now created in Tally. ERP 9, and you can start entering your financial
transactions and manage your accounts within this company file. It's important to maintain
your company data regularly and ensure data backups for data security.

5. Question and solution on Tally software application related to creation

of Ledgers, posting Journal entries through vouchers and Trial Balance
(Screenshots)

Q2. Write the steps to create ledgers for the transactions given and also pass the following
journal entries in appropriate vouchers:

1. Business started with cash Rs. 20,00,000

2. Cash deposited in SBI a/c Rs. 10,00,000
3. Cash deposited in PNB a/c Rs. 5,00,000
4. Furniture purchased payment made by SBI cheque Rs. 1,00,000.
5. Machinery purchased from Tarun Rs. 1,50,000.
6. Goods purchased from Harish Rs. 50,000
7. Goods sold to Jai Rs. 2,00,000.
8. Goods returned to Harish Rs 1000.
9. Rs. 45,000 paid to Harish in full settlement of his account. (Discount received=
4,000).
10. Goods returned by Jai Rs. 10,000
11. Rs. 1,80,000 cheque (PNB a/c) received from Jai in full settlement. (Discount
allowed = 10,000).
12. Cash withdrawn from SBI for personal use Rs. 5,000.
13. Depreciation on furniture Rs. 10,000.
14. Loan taken from ICICI Bank deposited in SBI Rs. 1,00,000.
15. Interest charged by ICICI Rs. 10,000.
16. Loan paid back along with interest to ICICI Rs. 1,10,000 through SBI.
17. Loss of goods by theft Rs. 1,000.
18. Investment made in Reliance Info COMM by SBI cheque Rs. 70,000

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Ans) Step 1: Create a new Company
• Select ‘Create Company’ and fill the necessary details in the form.
Step 2: Accounting Info
• Select Accounting Vouchers from Gateway of Tally.
• Gateway of Tally < Masters< Accounting Info
Step 3: Ledgers
• Select ‘Create’ in Ledger.
• Accounting Info< Ledger< Create
Create no. of ledgers account as per the question.
Name of the Ledger Groups Groups
Capital Capital Account
Cash Cash in Hand
SBI Bank Bank Account
PNB Bank Bank Account
Furniture Fixed Assets
Machinery Fixed Assets
Tarun A/C Sundry Creditors
Harish A/C Sundry Creditors
Purchases Purchase Account
Sales Sales Account
Purchase Return Purchase Account
Sales Return Sales Account
Discount Allowed Indirect Expense
Discount Received Indirect Income
Drawings Capital Account
Jai A/c Sundry Debtor
Depreciation Indirect Expense
ICICI Bank Loan Loan Liabilities
Interest on Loan Indirect Expenses
Loss by theft Indirect Expenses
Reliance Info COMM Investments
Goods Account Current Assets
Step 4: Accounting Vouchers
• Select Accounting Vouchers from Gateway of Tally.
• Gateway of Tally< Accounting Vouchers
Step 5: Configure Vouchers
• Proceed forward by clicking on F12 button, Voucher Configuration will appear and
Give ‘Yes’ and ‘No’ to the rightful requirement.
Step 6: Payment, Receipt, Contra, Journal, Debit Note, Credit Note
• Select Appropriate options from the following
• F4 - Contra
• F5 - Payment
• F6 - Receipt
• F7 - Journal
• F8 - Credit Note
• F9 - Debit Note

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Step 7: Journal Entries
• Now write the journal entries in the appropriate vouchers from the above given
question.
• Journal entry of the 1 st transaction
1. Receipt Voucher
Particulars Amount
Cash A/c Dr Rs. 20,00,000
To Capital A/c Rs. 20,00,000
(Being business started with cash)

2. Contra Voucher
Particulars Amount
SBI Bank A/c Dr Rs. 10,00,000
To Cash A/c Rs. 10,00,000
(Being cash deposited in SBI Bank A/c)

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 3. Contra Voucher
Particulars Amount
PNB Bank A/c Dr Rs. 5,00,000
To Cash A/c Rs. 5,00,000
(Being cash deposited in PNB Bank A/c)
4. Payment Voucher
Particulars Amount
Furniture A/c Dr Rs. 1,00,000
To SBI Bank A/c Rs. 1,00,000
(Being furniture purchased payment made by SBI cheque)

5. Journal Voucher
Particulars Amount
Machinery A/c Dr Rs. 1,50,000
To Tarun A/c Rs. 1,50,000
(Being machinery purchased by Tarun on credit)

6. Journal Voucher
Particulars Amount
Purchase A/c Dr Rs. 50,000
To Harish A/c Rs. 50,000
(Being goods purchased from Harish on credit)

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 7. Journal Voucher
Particulars Amount
Jai A/c Dr Rs. 2,00,000
To Sales A/c Rs. 2,00,000
(Being goods sold to Jai on credit)
8. Debit Note voucher
Particulars Amount
Harish A/c Dr Rs. 1,000
To Purchase Return A/c Rs. 1,000
(Being purchased goods return to Harish which was on credit)

9. Payment Voucher
Particulars Amount
Harish A/c Dr Rs. 45,000
To Discount Received A/c Rs. 4,000
To Cash A/c Rs. 41,000
(Being cash paid by Harish discount received of Rs. 4,000 )
10. Credit Note
Particulars Amount
Sales Return A/c Dr Rs. 10,000
To Jai A/c Rs. 10,000
(Being sold goods return from Jai on credit )

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 11. Receipt Voucher
Particulars Amount
PNB Bank A/c Dr Rs. 1,70,000
Discount Allowed A/c Rs. 10,000
To Jai A/c Rs. 1,80,000
(Being cheque received from Jai discount allowed of Rs. 10,000)
12. Payment Voucher
Particulars Amount
Drawings A/c Dr Rs. 5,000
To SBI Bank A/c Rs. 5,000
(Being cash withdrawn from SBI Bank for personal use)
13. Journal Voucher
Particulars Amount
Depreciation A/c Dr Rs. 10,000
To Furniture A/c Rs. 10,000
(Being furniture depreciated)
14. Receipt Voucher
Particulars Amount
SBI Bank A/c Dr Rs. 1,00,000
To ICICI Bank Loan A/c Rs. 1,00,000
(Being loan taken from ICICI Bank and deposited in SBI bank)
15. Journal Voucher
Particulars Amount
Interest on Loan A/c Dr Rs. 10,000
To ICICI Bank Loan A/c Rs. 10,000
(Being interest charged on ICICI Bank loan)
16. Payment Voucher
Particulars Amount
ICICI Bank Loan A/c Dr Rs. 1,10,000
To SBI Bank A/c Rs. 1,10,000
(Being loan paid back along with interest to ICICI Rs. 1,10,000 through
SBI)
17. Journal Voucher
Particulars Amount
Loss by Theft A/c Dr Rs. 1,000
To Goods A/c Rs. 1,000
(Being loss of goods by theft)
18. Payment Voucher
Particulars Amount
Reliance Info COMM A/c Dr Rs. 70,000
To SBI Bank A/c Rs. 70,000
(Being investment made in Reliance Info COMM by SBI cheque)

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Step 8: Day Book
• After all the journal entries you can edit and check your journal entries in Day Book
• Gateway of Tally< Display< Day Book

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Step 9: Trial Balance
Gateway of Tally< Display< Trial Balance

6. Questions and solution on Maintenance of cash Book

Q3. Record the following transactions in the cash book

Date Particular Amount(Rs)

Oct. 1 Cash balance 200
Oct.1 Bank balance 500
Oct. 2 Cash received from sale of shares 12,000
Oct. 2 Paid into Bank 10,000
Oct.3 Paid Amrit by cheque 2,400
Oct.3 Received cheque from Amit 1,960
Oct.3 Allowed him discount 40
Oct.4 Paid wages by cash 500
Oct.10 Paid Amit's cheque into Bank 1960
Oct.16 Bought goods for cash 1,200
Oct.18 Paid for stationery cash 300
Oct.19 Paid Hema by cheque 750
Oct. 19 Discount allowed by her 50
Oct.19 Drawn from Bank 640
Oct.20 Received from cash sales 340
Oct.24 Cash withdrawn for personal use 400
Oct.24 Received from Dev Anand 3,600
Allowed him discount 150
Oct.25 Paid into bank 400
Oct.26 Issued cheques for purchases 400
Paid salary by cash 650
Oct.27 Received cheque from Sanjay and paid into 800
Bank

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 Oct.27 Drew cheque for office use 600
Ans) Step 1: Create a new company and set the accounting period to October 2023.
Step2: Create no. of ledgers account as per the question.
Name of the Ledger Groups Groups
Cash Cash in hand
Bank Bank account
Sales of shares Indirect income
Amrit Current assets
Bill receivables Current assets
Discount allowed Indirect expenses
Amit Current liability
Wages Direct expense
Purchases purchase
Stationary Indirect expenses
Hema Current assets
Discount received Indirect income
Sales sales
Drawings capital
Dev Anand Current Liability
Salary Indirect expenses
Sanjay Current Liability
Office Indirect expenses
Step 3: Pass Entry in Ledger
• Cash was Introduced on 1 Oct. and entry passed in Ledger.

• Likewise Bank Balance entry will be as same as cash entry passed in Ledger.
Step 4: Journal Entries
• Now write the journal entries in the appropriate vouchers from the above given
question.
• Journal entry of the 1st transaction

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 1. Sale Voucher:
Date Particulars Dr. Cr.
Oct.2 Cash account. 12,000
To sale of shares account 12,000
(Being cash received from sale of shares)

2. Contra Entry
Date Particulars Dr. Cr.
Oct.2 Bank account 10,000
To cash account 10,000
(Being cash paid into bank)

3. Payment Voucher:
Date Particulars Dr. Cr.
Oct.3 Amrit's account 2,400
To bank account 2,400
(Being payment made to Amrit by cheque)

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 4. Receipt Voucher:
Date Particulars Dr. Cr.
Oct.3 Bills receivable account 1,960
Discount allowed account 40
To Amit's account 2,000
(Being cheque received from Amit and allowed him
discount)

5. Payment Voucher:
Date Particulars Dr. Cr.
Oct.4 Wages account 500
To cash account 500
(Being wages paid by cash)

6. Receipt Voucher:
Date Particulars Dr. Cr.
Oct.10 Bank A/C 1,960
To Amit account 1,960
(Being paid Amit’s cheque into bank)

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 7. Purchase Voucher:
Date Particulars Dr. Cr.
Oct.16 Purchase account 1,200
To cash account 1,200
(Being goods bought for cash)

8. Payment Voucher:
Date Particulars Dr. Cr.
Oct.18 Stationary account 300
To cash account 300
(Being cash paid for stationary)
9. Payment Voucher:
Date Particulars Dr. Cr.
Oct.19 Hema’s account 800
To Discount received 50
account
To Bank account 750
(Being paid to Hema and received discount of ₹50)

10. Contra Voucher:

Date Particulars Dr. Cr.
Oct.19 Cash account 640
To Bank account 640
(Being cash drawn from bank)
11. Receipt Voucher:
Date Particulars Dr. Cr.
Oct.20 Cash account 340
To sales account 340
(Being cash received from sales)
12. Payment Voucher:
Date Particulars Dr. Cr.
Oct.24 Drawing’s account 400

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 To cash account 400
(Being cash withdrawn for personal use)
13. Receipt Voucher:
Date Particulars Dr. Cr.
Oct.24 Cash account 3,600
Discount allowed account 150
To Dev Anand’s account 3,750
(Being payment received from Dev Anand and allowed
discount to him)
14. Contra Voucher:
Date Particulars Dr. Cr.
Oct.25 Bank account 400
To cash account 400
(Being cash deposited into bank)
15. Purchase Voucher:
Date Particulars Dr. Cr.
Oct.26 Purchase account 400
To Bank account 400
(Being Issued cheques for purchases)
Payment Voucher:
Date Particulars Dr. Cr.
Oct.26 Salary account 650
To cash account 650
(Being salary paid by cash)
16. Receipt Voucher:
Date Particulars Dr. Cr.
Oct.27 Bank account 800
To Sanjay’s account 800
(Being cheque received from Sanjay and paid into bank)
17. Contra Voucher:
Date Particulars Dr. Cr.
Oct.27 Cash A/c 600
To Bank account 600
(Being cheque draw for office use)
Step 8: Day Book
• After all the journal entries you can edit and check your journal entries in Day Book
• Gateway of Tally< Display< Day Book

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Step 9: Trial Balance
Gateway of Tally< Display< Trial Balance

7. Question and solution on Reconciliation of Cash Book with Bank

Statements. (Screenshots)
Q4. Bank Reconciliation Statement
Particulars Dr. Cr.
Capital 3,50,000
Cash 1,00,000
Indian Bank 3,00,000
Loan Liability 1,50,000
Bank o/d 48,000
Furniture 30,000
Goodwill 15,000
Bills payable 2,00,000
Land & Building 50,000
Bills Receivable 1,30,000
Bank Deposits 1,00,000

Sundry Creditors:
a) Mr. WIN INDIA Was Rs.5000 Bill.No.Ac75
b) Mr. COOL DREAM Was Rs.7000 Bill.No.AG08

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Sundry Debtors:
a) Mr. FIVE STAR Ltd Rs.15000 Bill.No.AG076
b) Mr. LINE MARK Ltd Rs.20000

TRANSACTION DURING THE PERIOD OF APRIL:

1) Paid Telephone Charge Rs.2000 By Cheque [Vodafone] Ch.No.25131
2) Amount Paid to Mr. Win India Was Rs.5000 Against Bill. No. AC075. Ch.No.25132
3) Commission Received by Cheque Rs.10000 Ch.No.75461
4) 4 Month Salary Rs.10000 By Cheque Paid Ch.No.25133
5) Amount Received M/r. Five Star Rs.15000 By Cheque Discount allowed Rs.
750.Ch.No.42678
6) Dividend Received Rs.29000 By Cheque .Ch.No.13555(Post dated at 9.4.2009)
7) Paid Rent by Cheque Rs.4500 .Ch.No.25134
8) Amount Paid to Mr. Cool Dream Rs.7000 By Cheque Discount Received Rs.700
Ch.No.25135
9) Interest Received by Cheque Rs.2000 Ch.No.41596
10) Amount Received Mr. Lion Mark Was Rs.19000 Discount Allowed Rs.1000 By
Cheque Ch.No.89576
11) Received Branch Income Rs. 25000 By Cheque Ch.No.89156
12) Paid Trade Expenses by Cheque Rs.2500 Ch.No.25137
13) Paid to General Expenses Rs.6000 Ch.No.25138
14) Received House Rent Rs.3000 Ch.No.695472
15) With Draw From Bank Rs.7000 Ch.No.25139
16) Deposit to Bank Rs.9000

Ans) Step 1: Create a new company

Step 2: When you are done with creating new company follow the following instruction :
Gate of Tally< Masters< Accounting Info.< Ledgers< Single Ledgers< Create
By follow the upper procedure create the ledger.
Name of the Ledger Groups Groups
Capital Capital Account
Cash Cash in Hand
Indian Bank Bank Account
Loan Liability Current Liability
Bank o/d Bank o/d A/c
Furniture Fixed Assets
Goodwill Fixed Assets
Bills payable Current Liability
Land & Building Fixed Assets
Bills Receivable Sundry Debtors
Bank Deposits Bank Accounts
Commission Received A/c Indirect Income
Discount Allowed Indirect Expenses
Discount Received Indirect Income
Dividend Received Indirect Income
General Expense Indirect Expenses
Income Indirect Incomes
Interest Received Indirect Incomes

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 Mr. COOL DREAM Sundry Creditors
Mr. WIN INDIA Sundry Creditors
Mr. FIVE STAR Ltd. Sundry Debtors
Mr. LINE MARK Ltd. Sundry Debtors
Mr. LION MARK Ltd. Sundry Debtors
Vodafone Direct Expenses
Trade Expense Indirect Expenses
Sales Sales Accounts
Salary A/C Indirect Expenses
Rent A/C Indirect Expenses
Purchase A/C Purchase Accounts

Step 3: Pass necessary Journal Entry

• Now write the journal entries in the appropriate vouchers from the above-given
question.
• Journal entry of the 1st transaction
1) Payment Voucher:
Particulars Dr. Cr.
Vodafone A/C 2,000
To Indian Bank A/c 2,000
(Being paid telephone charges)

2) Payment Voucher:
Particulars Dr. Cr.
Mr. WIN India 5,000
To Indian Bank A/c 5,000
(Being amount paid to Mr. WIN India)
3) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/c 10,000

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 To Commission A/c 10,000
(Being commission received )

4) Payment Voucher:
Particulars Dr. Cr.
Salary A/C 10,000
To Indian Bank A/c 10,000
(Being salary paid)
5) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/C 15,000
Discount Allowed 750
To Mr. FIVE STAR ltd. A/c 15,750
(Being amount received from Mr. FIVE STAR ltd.)
6) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/C 29,000
To Dividend Received A/c 29,000
(Being Dividend Received)
7) Payment Voucher:
Particulars Dr. Cr.
Rent A/C 4,500
To Indian Bank A/c 4,500
(Being rent paid)
8) Payment Voucher:
Particulars Dr. Cr.
Mr. Cool Dream 7,700
To Indian Bank A/c 7,000
To Discount Received A/C 700
(Being amount paid to Mr. Cool Dream)

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 9) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/C 2,000
To Interest received A/c 2,000
(Being interest received)
10) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/C 19,000
Discount Allowed 1,000
To Mr. Lion Mark A/c 20,000
(Being amount received from Mr. Lion Mark)
11) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank 25,000
To Income A/c 25,000
(Being income received from Branch)
12) Payment Voucher:
Particulars Dr. Cr.
Trade Expense A/C 2,500
To Indian Bank A/c 2,500
(Being paid trade expense)
13) Payment Voucher:
Particulars Dr. Cr.
General Expense A/C 6,000
To Indian Bank A/c 6,000
(Being paid general expense)
14) Receipt Voucher:
Particulars Dr. Cr.
Indian Bank A/C 5,000
To Rent A/c 5,000
(Being received house Rent)
15) Contra Voucher:
Particulars Dr. Cr.
Cash A/C 7,000
To Indian Bank A/c 7,000
(Being withdrawn from Bank)

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 16) Contra Voucher:
Particulars Dr. Cr.
Indian Bank A/C 9,000
To Cash A/c 9,000
(Being deposited in Bank)
Step 4: Day Book
• After all the journal entries you can edit and check your journal entries in Day Book
• Gateway of Tally< Display< Day Book

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Step 5: Bank Reconciliation:
• Gateway of Tally< Utilities< Banking< Bank Reconciliation< Indian Bank A/C

8. Question and solution on Calculating the Interest (Screenshots).

Q5. Pass the Journal entries of the following transactions for calculating the interest:
Calculations to be done on the basis of 10 days.
Transactions:
1) Purchased from Sridhar 40000 B.No 25 Interest 2%P.M
2) Purchased from Srikanth 35000 B.No 85 Interest 24%P.A
3) Sold goods to Mohan 35000 (Trade Discount 5%) B.No 1 Interest 2%P.M
4) Purchased from Ramu 42000 B.No 33 Interest 2%P.M
5) Returned goods to Srikanth 2000 B.No 85
6) Goods returned by Mohan 1000 B.No 1
7) Sold to Sridevi Stores 20000 B.No 2 Interest 3%P.M
8) Sold to Sireesha’s Stall 10000 B.No 3 Interest 2%P.M
9) Returns goods to Sridhar 4000 B.No 25
10) Bought goods from Srikanth for cash 50000
11) Purchased from Anusha & amp; Co 42000 B.No 105 Interest 2%P.M
12) Sold to Rami Reddy 20000 B.No 4 Interest 3%P.M
13) Goods returned from Sireesha’s Stall 1000 B.No 3
14) Sold to Sarathi 80000 B.No 5 Interest 3%P.M
15) Purchased from Rao Enterprises 65000 B.No 108 Interest 2%P.M
16) Returned goods to Anusha&amp; Co 1500 B.No 105
17) Sales to RangaRao (Trade Discount 10%)18000 B.No 6
18) VengalaRao Sold goods to us 27000 B.No 111 Interest 2%P.M
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Ans) Step 1: Create a new Company
• Select ‘Create Company’ and fill the necessary details in the form.
Step 2: Accounting Info
• Select Accounting Vouchers from Gateway of Tally.
• Gateway of Tally < Masters< Accounting Info
Step 3: Ledgers
• Select ‘Create’ in Ledger.
• Accounting Info< Ledger< Create
Step 4: Interest Calculation
• Activate Interest Calculation F11 Features <Accounting Features

• Interest Activated ledgers: Capital, Banks, Sundry Debtors, Sundry Creditors etc.
Creation of Ledger using Interest Fields Creation of ledger (Sundry Creditors)
Activate Interest Calculation- Yes

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Step 5: Journal Entries
• Now write the journal entries in the appropriate vouchers from the above given
question
1. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 40,000
To Sridhar A/c Rs. 40,000
(Being Purchase goods from Sridhar)

2. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 35,000
To Srikanth A/c Rs. 35,000
(Being Purchase goods from Srikanth)
3. Sale Voucher
Particulars Amount
Mohan A/c Dr Rs. 33,250
To Sale A/c Rs. 33,250
(Being Goods Sale to Mohan)

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 4. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 42,000
To Ramu A/c Rs. 42,000
(Being Purchase goods from Ramu)

5. Debit Note Voucher

Particulars Amount
Srikanth Dr Rs. 2,000
To Purchase Return A/c Rs. 2,000
(Being goods return to Srikanth)

6. Credit Note Voucher

Particulars Amount
Sale Return Dr Rs. 1,000
To Mohan A/c Rs. 1,000
(Being goods return by Mohan)

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 7. Sale Voucher
Particulars Amount
Sridevi Stores A/c Dr Rs. 20,000
To Sale A/c Rs. 20,000
(Being Goods Sale to Sridevi Store)

8. Sale Voucher
Particulars Amount
Sireesha Stall A/c Dr Rs. 10,000
To sale A/c Rs. 10,000
(Being Goods Sale to Sireesha stall)

9. Debit Note Voucher

Particulars Amount
Sridhar A/c Dr Rs. 4,000
To Purchase Return A/c Rs. 4,000
(Being goods return to Sridhar)

10. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs. 50,000
To Cash A/c Rs. 50,000
(Being goods brought from cash)
11. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 42,000
To Anusha& Co A/c Rs. 42,000
(Being Purchase goods from Anusha& Co)

12. Sale Voucher

Particulars Amount
Rami Reddy A/c Dr Rs. 20,000
To Sale A/c Rs. 20,000
(Being Goods Sale to Rami Reddy)

13. Credit Note Voucher

Particulars Amount
Sale Return A/c Dr Rs. 1,000
To Sireesha A/c Rs. 1,000
(Being goods return by Sireesha)

14. Sale Voucher

Particulars Amount
Sarathi A/c Dr Rs. 80,000
To sale A/c Rs. 80,000
(Being Goods Sale to Sarathi)

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 15. Purchase Voucher
Particulars Amount
Purchase A/c Dr Rs. 65,000
To Rao Enterprises A/c Rs. 65,000
(Being Purchase goods from Rao Enterprises)

16. Debit Note Voucher

Particulars Amount
Purchase Return A/c Dr Rs. 1,500
To Anusha& Co A/c Rs. 1,500
(Being goods return to Anusha& Co)

17. Sale Voucher

Particulars Amount
Ranga Rao A/c Dr Rs. 16,200
To Sale A/c Rs. 16,200
(Being Goods Sale to Ranga rao)

18. Purchase Voucher

Particulars Amount
Purchase A/c Dr Rs. 27,000
To Vengala Rao A/c Rs. 27,000
(Being Purchase goods from Vengala Rao)
Step 6: Day Book
• After all the journal entries you can edit and check your journal entries in Day Book
Gateway of Tally< Display< Day Book

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Step 7: Interest Calculation
• Interest receivable
➢ Display< Statements of Accounts< Interest Calculations< Interest receivable

• Interest payable
➢ Display< Statements of Accounts< Interest Calculations< Interest payable

9. Questions and solution on Inventory or Stock (screenshots)

Q6. The following would be recording in journal using double entry system. Do the posting
process from journal entries and prepare the Trial balance, Trading a/c, Profit &amp; loss a/c
and balance sheet with inventory maintain in the books of M/s. ISPAT CO for the following
year 2023 to 2024.
PARTICULARS DR CR
CAPITAL 4,00,000
ROYALTY PAYABLE 70,000
CASH 12,0000
BANK O/D 50,000
ICICI BANK 80,000
BILLS PAYABLE 20,000
FURNITURE & FITTINGS 50,000
BILLS RECEIVABLE 50,000
LAND AND BUILDINGS 60,000
LOAN FROM RAVI 10,000

Stock In Hand
• Sony TV 15nos Rs.5500
• Sony I-pad 15nos Rs.500
• Lenovo laptop 7nos Rs.12000
• Micro max phone 8nos Rs.2000

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 TRANSACTION DURING THE PERIOD:
1. Purchased on credit from Mr. CITIZEN for the followings
➢ LC-10121 calculator 20nos Rs.1200
➢ USB 17nos Rs.2300
➢ Laptop battery 22nos Rs.2100 bill no:236 (35 days)
2. Withdraw from bank for office use Rs.5000
3. Purchased on credit from Mr. Micro Max for the followings
➢ Phone display 20nos Rs.500. Bill no: 12 (25 days)
4. Deposit into bank Rs.10,000
5. Sold goods on credit to Mr. BENN for the followings
➢ Sony TV 10nos Rs.7500
➢ Lenovo laptop 4nos Rs.15000. Bill no: 34 (15 days)
6. Return goods to Mr. CITIZEN for the followings
➢ LC-10121 calculator 3nos Rs.1200
➢ Laptop battery 2nos Rs.2100 again bill no:236
7. With Draw for Proprietors Own Use Rs.7000
8. Sold Goods to Mr. NETWORK for the followings
➢ Laptop Battery 15nos Rs.3000
➢ Phone Display 12nos Rs.750 bill no: 67 (24 days)
9. Paid Salary Rs.5000
10. Received Interest Rs.7500
11. Return by Goods Mr. BENN for the followings
➢ Sony TV 2nos Rs.7500
➢ Lenovo Laptop 1nos Rs.15000. Again bill no: 34 12.
12. The Stock of LC10121 calculator 3nos transferred to Chennai branch.
13. After Stock Verify the manual inventory the stock of Sony I-Pad 10nos only

Ans) Step 1: Create a new Company

• Select ‘Create Company’ and fill the necessary details in the form.

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 • LEDGER CREATION

S NO.
PARTICULARS DR CR GROUPS/UNDER HEAD
1 CAPITAL 4,00,000 CAPITAL ACCOUNT
2 ROYALTY 70,000 INDIRECT EXPENSES
PAYABLE
3 CASH 12,0000 CASH IN HAND
4 BANK O/D 50,000 BANK O/D
5 ICICI BANK 80,000 BANK ACCOUNT
6 BILLS PAYABLE 20,000 SUNDRY CREDITOR
7 FURNITURE & 50,000 FIXED ASSETS
FITTINGS
8 BILLS 50,000 CURRENT ASSETS
RECEIVABLE
9 LAND AND 60,000 FIXED ASSETS
BUILDINGS
10 LOAN FROM RAVI 10,000 LOAN (LIAB)
• Capital Account

(Likewise all other ledger entries with their appropriate ledger account)
STOCK GROUP CREATION

• To create a stock group for "In Stock in Hand" in Tally.ERP 9, follow these steps:

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 ➢ Inventory Info< Stock Groups< Create< In Stock In Hand< Primary< Save

STOCK UNIT CREATION

• To Create A Stock Unit For "Nos" In Tally.ERP 9, Follow These Steps

➢ Inventory Info< Unit of Measure< Unit of Measure< Create< Nos< Simple< Save

STOCK ITEM CREATION

• To create a stock item in Tally.ERP 9, follow these steps:

➢ Inventory Info< Stock Items< Create< Name of the stock item< In Stock in
Hand< Nos< opening quantity and the rate< Save
❖ Sony TV 15nos Rs.5500

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❖ Sony I-pad 15nos Rs.500

❖ Lenovo laptop 7nos Rs.12000

❖ Micro max phone 8nos Rs.2000

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TRANSACTION ENTRY
1) Purchased on credit from Mr. CITIZEN for the followings
➢ LC-10121 calculator 20nos Rs.1200
➢ USB 17nos Rs.2300
➢ Laptop battery 22nos Rs.2100 bill no:236 (35 days)
Particulars Dr. Cr.
LC-10121 Calculator 24,000
USB 39,100
Laptop Battery 46,200
To Mr. CITIZEN 1,09,300
(Being Goods Purchased from Mr. Citizen)

Accounting Vouchers< F9: Purchase

• Enter The Details Of The Transaction, Such As The Date, Supplier, And Bill
Number (In This Case, Bill No 236 With A Credit Period Of 35 Days).
• Select "Calculator" As The Stock Item And Enter The Quantity As 20 And The
Rate As Rs. 1200.
• Select "USB" As The Stock Item And Enter The Quantity As 17 And The Rate As
Rs. 2300.
• Select "Laptop Battery" As The Stock Item And Enter The Quantity As 22 And
The Rate As Rs. 2100.
• Select The Appropriate Ledger Account For The Purchase, Such As "Purchase
Account."
• Select "Save" To Record The Transaction.

2) Withdraw from bank for office use Rs.5000

Particulars Dr. Cr.
Office Expense A/c 5,000
To ICICI Bank A/c 5,000
(Being Cash Withdrawn for Office Use)

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 • Accounting Vouchers< F5: Payment.
• Enter the details of the Transactions. Select the required Ledger accounts. And Select
Save to record the transaction.

3) Purchased on credit from Mr. Micro Max for the followings

• Phone display 20nos Rs.500. Bill no: 12 (25 days)
Particulars Dr. Cr.
Phone Display 10,000
To Mr. Micro Max A/c 10,000
(Being Goods purchased on Credit)

4) Deposit into bank Rs.10,000

Particulars Dr. Cr.
ICICI Bank A/c 10,000
To Cash A/c 10,000
(Being Cash Deposited into Bank)

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5) Sold goods on credit to Mr. BENN for the followings
➢ Sony TV 10nos Rs.7500
➢ Lenovo laptop 4nos Rs.15000. Bill no: 34 (15 days)
Particulars Dr. Cr.
Mr. Ben A/c 1,35,000
To Sales A/c 1,35,000
(Being Goods Sold to Mr. Ben on Credit)

• Go to Gateway of Tally and select Accounting Vouchers. And Press F8: Sales to
record a Payment Transaction.
• Enter the details of the Transactions. Select the required Ledger accounts. And
Select Save to record the transaction.

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6) Return goods to Mr. CITIZEN for the followings
➢ LC-10121 calculator 3nos Rs.1200
➢ Laptop battery 2nos Rs.2100 again bill no:236
Particulars Dr. Cr.
Mr. Citizen 7,800
To LC-10121 Calculator 3,600
To Laptop Battery 4,200
(Being Goods Returned to Mr. Citizen)

7) With Draw for Proprietors Own Use Rs.7000

Particulars Dr. Cr.
Drawings A/c 7,000
To Cash A/c 7,000
(Being Cash Withdrawn for Personal Use)

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8) Sold Goods to Mr. NETWORK for the followings
➢ Laptop Battery 15nos Rs.3000
➢ Phone Display 12nos Rs.750 bill no: 67 (24 days)
Particulars Dr. Cr.
Bank A/c Dr 54,000
To Mr. Network A/c 54,000
(Being Goods Sold to Mr. Network)

9) Paid Salary Rs.5000

Particulars Dr. Cr.
Salary Expense A/c 5,000
To ICIC Bank A/c 5,000
(Being Salary Paid)

10) Received Interest Rs.7500

Particulars Dr. Cr.
ICICI Bank A/c 7,000
To Interest Received A/c 7,000
(Being Interest Received)

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11) Return by Goods Mr. BENN for the followings
➢ Sony TV 2nos Rs.7500
➢ Lenovo Laptop 1nos Rs.15000. Again bill no: 34 12.
Particulars Dr. Cr.
Sales Return 30,000
To Sony TV 15,000
To Lenovo Laptop 15,000
(Being Goods Returned by Mr. Benn)

• Go to Gateway of Tally and select Accounting Vouchers. Press Ctrl + F8: Credit
Note to record a Sales Return Transaction.
• Enter the details of the Transactions. Select the required Ledger accounts. And Select
Save to record the transaction.

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12) The Stock of LC10121 calculator 3nos transferred to Chennai branch.

• Go to Gateway of Tally and select Inventory Vouchers. And Press Alt + F7: Stock
Journal to record the Transaction.
• Enter the details of the Transactions. Select the required Ledger accounts. And Select
Save to record the transaction.
13) After Stock Verify the manual inventory the stock of Sony I-Pad 10nos only
• Go to Gateway of Tally and select Inventory Vouchers. And Press Alt + F10:
Physical Stock to record the Transaction.
• Enter the details of the Transactions. Select the required Ledger accounts. And
Select Save to record the transaction.

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Profit and Loss:

Balance Sheet:

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