BSPS Ambajogai’s

Swa. Sawarkar Mahavidyalaya, Beed

Department of commerce

Practical Book
For The Subject of

IT Application in Business
(Computerized Accounting - I)
B.Com Third Year (V Semester)

Name of Student:______________________________________________

Examination:_______________________________ Year______________

Seat No.:_______________________________________________________

PRN No.:_____________________________________________________
 CERTIFICATE

This is to certify that ……………………………………… of

class/sec …………….… has successfully completed the practicals for the
subject IT APPLICATION IN BUSINESS to my satisfaction and submitted the
same during the academic year ……….. The project is the result of his/her
efforts & endeavors.

Date : (Signature of the teacher)

Signature Signature

Head of the Department Principal

 B.COM. THIRD YEAR - FIFTH SEMESTER
PRACTICAL BOOK
INFORMATION TECHNOLOGY AND APPLICATION IN BUSINESSS
(ITAB – III)

LIST OF PRACTICALS
SR. NO. NAME OF PRACTICAL
COMPANY CREATION, ALTERATION AND DELETION IN
1
COMPUTERIZED ACCOUNTING (e.g. Tally ERP. 9.0)
2 BACKUP & RESTORE OF COMPANY

3 CREATE, DISPLAY, ALTER AND DELETE ACCOUNTING GROUPS

4 CREATE, DISPLAY, ALTER AND DELETE LEDGER

5 RECORDING BANK TRANSACTIONS USING CONTRA VOUCHER

6 RECORDING PAYMENT VOUCHER

7 RECORDING RECEIPT VOUCHER

8 RECORDING CASH PURCHASE TRANSACTION (ACCOUNTS ONLY)

9 RECORDING CREDIT PURCHASE TRANSACTION (ACCOUNTS ONLY)

10 RECORDING CASH SALES TRANSACTION (ACCOUNTS ONLY)

11 RECORDING CREDIT SALES TRANSACTION (ACCOUNTS ONLY)

12 RECORDING JOUNAL VOUCHER FOR ASSET PURCHASE

13 RECORDING JOUNAL VOUCHER FOR CONSUMABLE PURCHASE

14 RECORDING PURCHASE ORDER AND RECEIPT NOTE

15 RECORDING SALES ORDER AND DELIVERY NOTE

16 CREATING GST LEDGERS (SGST, CGST, IGST)

RECORDING GST PURCHASE AND SALES INVOICE (WITH SINGLE
17
RATE ONLY)
DISPLAY ACCOUNTING REPORTS (TRIAL BALANCE, P&L A/C,
18
BALANCE SHEET ETC.)
DISPLAY INVENTORY REPORTS IN TALLY (STOCK REGISTER, ORDER
19
REPORTS, ETC.)
20 GST REPORTS
Introduction

What is Tally.ERP 9?

Tally.ERP 9 is one of the most popular accounting software used in India. It is complete
enterprise software for small & medium enterprises.
Tally.ERP 9 is a perfect business management solution and GST software with an ideal
combination of function, control, and in-built customizability.

Tally.ERP 9 permits business owners and their associates to interact more in accounts related
discussions and is a complete product that retains its original simplicity yet offers comprehensive
business functionalities such as Accounting, Finance, Inventory, Sales, Purchase, Point of Sales,
Manufacturing, Costing, Job Costing, Payroll and Branch Management along with compliance
capabilities for Excise, TDS, TCS, and now GST too.

Features of Tally
1. Tally ERP 9 supports multi languages, so it is called as multi-lingual tally software.
Accounts can be maintained in one language and reports can be viewed in another
language.
2. You can create and maintain accounts up to 99,999 companies.
3. Using payroll feature, you can automate employee records management.
 4. Tally has feature of synchronization, the transactions maintained in multiple locations
offices can be automatically updated.
5. Generate consolidated financial statements as per requirements of company.
6. Managing single and multiple groups are very important features of tally.

Versions of Tally
1. The first version of Tally was Tally 4.5 and it was released in 1990’s. It is a MS-Dos
based software.
2. The second version of Tally was Tally 5.4 and it was released in 1996. It was a graphic
interface version.
3. The next version of Tally was Tally 6.3 and this Tally version was released in 2001. It is
a window based version and supports in printing and implemented with VAT (Value
Added Tax).
4. The next version of Tally was Tally 7.2 and it was released in 2005. This version was
added with a new features of Statutory complimentary version and VAT rules as per state
wise.
5. The next version of Tally was Tally 8.1 and it was developed with a new data structure.
This version was added with new features of POS (Point Of Sale) and Payroll.
6. Due to bugs and errors, a new version of Tally 9 was released in 2006. It has maximum
features like Payroll, TDS, FBT, E-TDS filling, etc.
7. Tally.ERP 9 is the latest version of Tally and released in 2009. This latest Tally ERP 9
package offering maximum features for small business industries to large business
industries. It also updated with new features of GST (Goods & Services Tax).

Advantages of Tally ERP 9

1. Tally ERP 9 software is a low cost of ownership and it can be easily implement and
customize.
2. Supports multi operating systems such as Windows & Linux and can be installed on
multiple systems.
3. Tally software utilizes very low space for installation and the installation of tally is an
easy method.
4. It is built in back up and restore, so the user can easily backup all companies data in a
single directory, in a local system disk.
5. Supports all types of protocols such as HTTP, HTTPS, FTP, SMTP, ODBC, etc.
6. Supports multi languages including 9 Indian language. The data can be entered in one
language and you can generate invoices, Po’s, delivery notes, etc in other language.

How to use Tally.ERP 9?

Tally is nothing but accounting in digital format. Maintaining accounts in manual books, we
write accounting entries as debit and credit. In Tally, we create entries the same way.
 Company Creation, Alteration and Deletion in
Practical No. 1
Computerized Accounting (e.g. Tally ERP. 9.0)

To create a company in Tally.ERP 9,

Steps Actions Instructions to be followed
Step 1 To open Tally Software Double click on tally icon from your desktop.
Step 2 To go to Create Company Screen To do this Select Create company from the
Company Info. Menu using up and down
arrow key and press Enter Key.
Step 3 To fill up the Details in Company In this company creation screen, you should
Creation Screen enter all the details of the company that you
been asked for.
Details to be filled in company creation screen

To save the details entered in company creation screen

If you have entered all the details and after verifying it seems to be right, then you have to accept
the screen by pressing Enter and again Enter to accept and save the details.
Note: If we have enabled the Tally Vault password, then in the next screen it will ask the Name
of the user and Password details. After entering these details, Tally ERP 9 will create a company
and direct you to the Menu Gateway of Tally Where you can create masters and enter
transactions.
Practical No. 2 Backup & Restore of Company

Backup/Restore
It is a good practice to take back up of your data at regular intervals to avoid any loss to data.
Tally.ERP 9 provides you a facility to take back up of your data and restore as and when
required.

Backup Data
Taking a backup of your data at regular intervals helps retrieve your backed up data when your
existing data is lost. Using Tally.ERP 9, you can easily take a backup of your company data any
time and restore it when you need.
1. Go to Gateway of Tally > F3 : Cmp Info > Backup to view the Backup Companies on
Disk screen.
2. Source - The folder path where your company data is stored. By default, the folder path of
your existing company data is displayed here.
3. Destination - The folder path where the data backup has to be stored. You can store the
backup locally on your computer, on any external storage device, or on a storage space on the
network.
4. Select the required company from the List of Companies . Select All items to back up data of
all the companies.

5. Press Ctrl+A to initiate the backup process.

The backup file is stored in the destination folder as TBK900_10000.001 . Data backup taken
using versions prior to Release 6.0 used to store the data in TBK900.001 format.
Note: If you are using Tally.ERP 9 Release 5.x or earlier to restore the backup file (for
example, TBK900_10000.001 ), first rename this file to TBK900.001 and then restore.

Restore Backup
1. Go to Gateway of Tally > F3 : Cmp Info > Restore to view the Restore Companies screen.
2. Destination - The folder path where your company data is to be restored. Do not restore
backup data in the folder where your company data exists, since it may overwrite the existing
data.
3. Source - The folder path where the backup file is stored. You can restore data stored locally
on your computer, on any external storage device, or on a storage space on the network.
4. Select the required companies from the List of Companies . Select All items to restore data of
all companies.
5. Press Ctrl+A to restore the data backup.
Practical No. 3 Create, Display, Alter and Delete Accounting Groups

Create account groups one-by-one

1. Go to Gateway of Tally > Accounts Info. > Groups > Create ( under Single Group )
2. Enter the Name of the group.
3. Enter the Alias name, if required.
4. In the field Under , from the List of Groups displayed, select the parent group under
which the group has to be classified. For example, Indirect Expenses .
The Group Creation screen appears as shown below:

5. Click Yes to accept the screen.

A new group created under primary will not be reflected in reports until you pass
masters/transactions for that group.
View account groups one-by-one in display mode
1. Go to Gateway of Tally > Accounts Info. > Groups > Display ( under Single Group ).
2. Select the name of the group required from the List of Groups displayed. The ledger
display screen appears as shown below:

Alter a Group
The details entered in a group can be modified when required.
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ) .
2. Select the name of the group required from the List of Groups displayed.
3. Make the necessary changes in the Group Alteration screen.
4. Click Yes to save the changes.
Create Multiple Groups in one-go
You can create, edit or delete multiple groups in Tally.ERP 9.
1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple Groups).
2. Select the group category in the field Under .
3. E nter the Name of the group.
4. Select All Items in the field Under to create multiple groups of different categories.
A new group created under primary will not be reflected in reports until you pass
masters/transactions for that group.
Buttons in Multiple Group Creation
Button Shortcut Keys Behaviour

F4: Parent F4 The Parent Group can be changed

L: Ledgers Ctrl+L Navigate to Ledger Creation screen

S: Cost Category Ctrl+S Navigate to Cost Category Creation Screen

C: Cost Center Ctrl+C Navigate to Cost Centre Creation Screen

O: Employee
Ctrl+O Navigate to Employee Group Creation Screen
Groups

P: Employee Ctrl+P Navigate to Employee Creation Screen

Display Multiple Groups

1. G o to Gateway of Tally > Accounts Info. > Groups.
2. Select the g roups to display from the List of Groups or select All Items to display all
groups.
Alter Multiple Groups
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter (Multiple Groups) .
2. Select the group from the List of Groups .
3. Change the details as required and click Yes to save changes.
Delete a Group
Groups can be deleted from the alteration screen. You cannot delete groups from the Multiple
group Alteration mode.
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ).
2. Select the group from the List of Groups .
3. Click D : Delete .
4. Click Yes to confirm deletion.
Practical No. 4 Create, Display, Alter and Delete Ledger

Predefined Ledgers
All ledgers have to be classified into groups . These groups and ledgers are classified into
profit and loss or balance sheet.
There are two pre-defined ledgers in Tally.ERP 9:
● Cash ledger
● Profit and loss account
Cash Ledger Profit and Loss Ledger

The cash ledger is grouped The profit and loss account ledger is grouped under
under cash-in-hand. primary.

The previous year's profit or loss is entered as

You can enter the opening opening balance of the ledger. The balance entered is
balance as on the day the the opening profit/loss. It is shown in the balance
books begin. sheet as opening of the profit and loss account in the
liabilities.

This ledger can be altered

This ledger can not be deleted but it can be modified.
and deleted.

Create Ledgers one-by-one

1. Go to Gateway of Tally > Accounts
Info. > Ledgers > Create (Single
Ledger) . The Ledger Creation screen
appears as shown below:
2. Enter the Name of the ledger account.
Duplicate names are not allowed.
3. Enter the alias of the ledger account, if
required. You can access the ledgers using the
original name or the alias name.
4. Select a group category from the List of
Groups.
Note: To create a new group from this field,
press Alt+C .
You can alter a ledger account to change its
group classification at any time. See Importance of Grouping and Accounting
Classifications for more details.
5. Enter the Opening Balance. The opening balance is applicable when the ledger is an
asset or a liability, and also if it has a balance in the account as on the date of beginning
of books.
 Display, Alter and Delete Ledgers
You can alter any information of the ledger master with the except for the closing balance
under the group s tock-in-hand .
Display/alter a ledger
● Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter .
Modification of account ledgers is possible for single ledgers as well as multiple
ledgers. However for multiple ledgers, all the fields are not available for alteration.
Delete a ledger
● Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > Press Alt+D .
Button options in Ledger master
Buttons Keys Description and Usage

Click to create account Group from the Ledger creation

G: Groups Ctrl+G
screen.

E: Currency Ctrl+C Click to create Currency from the Ledger creation screen.

S: Cost Click to create Cost Category from the Ledger creation

Ctrl+S
Category screen.

C: Cost Centre Ctrl+C Click to create Cost Center from the Ledger creation screen.

B: Budget Ctrl+B Click to create Budget from the Ledger creation screen.

V: Voucher Click to create Voucher Type from the Ledger creation

Ctrl+V
Types screen.

Current Liabilities and Current Assets Ledgers

Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be
created directly under Current Liabilities and Assets can be classified as Current assets and
Fixed assets. To create Fixed Assets ledger:
1. Go to Gateway of Tally > Accounts
Info. > Ledgers > Create .
2. Enable Inventory values are
affected option if you maintain accounts
with inventory. However, you can use this
option for accounts like Customs Duty,
direct expenses related to purchases such
as Freight Inwards and so on.
3. Enable Cost Centres are
applicable to allocate transactions to a
particular Cost Center. You have to set the option Maintain cost centres to Yes in F11:
Accounting Features , to get this option in the Ledger creation screen.
Tax Ledger
Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts
like VAT, CENVAT, Excise, Sales and other trade taxes and total liability.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. The option Type of Duty/Tax is based on statutory compliance of the company. For
Indian statutory, by default, Others is displayed. Depending on features in F11:
Statutory & Taxation , more options can be included in the Type of Duty/Tax.
3. Enable Inventory values affected option if you maintain accounts with inventory.
However, you can use this option for accounts like Customs Duty, direct expenses
related to purchases such as Freight Inwards and so on.
4. Enable Cost Centres are applicable to allocate transactions to a particular Cost
Center. You have to set the option Maintain cost centres to Yes in F11: Accounting
Features , to get this option in the Ledger creation screen.
5. Select the Percentage of Calculation the rate of tax e.g. 5%, 10%, 12.5% etc. You can
use an automatic discount calculation facility by specifying a negative percentage in this
field. The Group Duties and Taxes is used for automatic tax calculation.
6. On entering a percentage, a new field Method of Calculation is displayed. From
the Method of Calculation , select appropriate options to calculate the Tax/Duty.
Rounding Method
This is used to round off the duty value. By default rounding method is set blank. Once you
select rounding method, rounding limit option is displayed.
For example:
For duty value 123.33 and rounding Limit is 1,
● Downward rounding will show as 123.
● Normal rounding will show as 123.
● Upward rounding will show as 124.
For Duty value 125.55 and rounding Limit is 1,
● Downward rounding will show as 125.
● Normal rounding will show as 126.
● Upward rounding will show as 126.
Expenses and Income Ledgers
You can select the income or expenses account group to create ledgers.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Enter the name of the ledger in the Name field.
3. Select Indirect Expenses from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to Yes if your company maintains
a ccounts with inventory .
5. Press Ctrl+A to accept.
You can also enable cost centre options in expenses or income ledger. to enable Cost
Centres in the Ledger Creation screen
1. Go to Gateway of Tally > F11: Features > Accounting Features > set the
option Maintain cost centres to Yes .
2. In the ledger master, set the option Cost centres are applicable to Yes , if the
transactions have to be allocated to a particular cost centre.
Create Multiple Ledgers in one-go
You can create multiple Ledgers at a time in this mode. This will save the time of the user.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Multiple ledgers > Create .
2. S elect All Items or the required group under which you want to create the ledger. If you
select All Items, you can select the group for each ledger in the Under column.
3. Enter the Name of Ledger .
4. Enter the Opening Balance . This is the balance as on the date of beginning of books. If
you have opted to maintain balances bill-by-bill, you must give the bill details.
5. Specify whether the Opening Balance is Debit or Credit in the field Dr/Cr .
6. Save the Multi Ledger Creation screen.
Note: While creating Ledgers in multiple mode, the field Cost Centres are applicable, is set to
Yes for Revenue accounts and No for Non-Revenue accounts by default. The field
Inventory values are affected is set to Yes for Sales and Purchase Accounts and No for
the others by default.
Enter Mailing Details for Ledger Accounts
You can record address details against ledger accounts in Tally.ERP 9.
1. Go to Gateway of Tally > Masters > Account Info. > Ledgers > Create .
2. Press F12: Configure to view the Ledger Configuration screen.
3. Set the option Use addresses for ledger accounts? to Yes . The Ledger
Configuration screen appears as shown below:

4. Press Ctrl+A to accept.

Now you can enter the mailing details during ledger creation or alteration.
 RECORDING BANK TRANSACTIONS USING CONTRA
Practical No. 5 VOUCHER

The Contra Voucher can be recorded using Single entry mode or Double Entry mode . To
toggle between Single Entry and Double Entry mode, we need to change the setting Use
Single Entry mode for Pymt/Rcpt/Contra to Yes/No in F12: Configure .
To view Contra Voucher creation screen in Single Entry mode,
1. Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra
2. For example, to transfer funds from Cash Account to Bank Account:
● Debit the Bank Account.
● Credit the Cash Account.
The entry will be displayed as shown:

3. In the Bank Allocation screen, users can select the mode of transaction from the List of
Transaction Type as shown:

4. When Cash is selected as a Transaction Type , you can specify the cash denominations
for the transaction in the voucher entry screen, if the option Show Cash Denomination
Details set to Yes in F12: Configuration (By default, this option is enabled)
 5. During Bank Allocation, a new screen – Cash Denominations will appear for Cash
Transaction Type.
The cash denominations entered here will be captured in the Cash Denomination
details while printing a Cash Deposit Slip for this transaction.
The Difference field will give the difference between the total and the sum of amounts
specified for the Denominations.
Advantages of Single Entry Mode
● Faster data entry.
● When there is a Single Debit and Multiple Credits in the entry.
Practical No. 6 RECORDING PAYMENT VOUCHER

Payment voucher is used to record all bank and cash payments. For example, a company settles
a creditor's bill by cheque.
● Go to Gateway of Tally > Accounting Vouchers > F5: Payment .
Payment voucher can be passed using Single Entry or Double Entry mode by configuring the
setting Use Single Entry mode for Pymt/Rcpt/Contra in F12: Configure .
For example : The company settles expenses of Conveyance, Staff Welfare, Postage and
Stationery through Cash in one voucher. This entry can be passed in single entry mode where
you will be crediting the Cash Ledger only once and the entry appears as shown below:

Payment in Voucher entry mode

When you have multiple debits and credits in an entry, double entry mode is the suggested
way of passing the entry.
Practical No. 7 RECORDING RECEIPT VOUCHER

Any money received from debtors against sales Invoices or on Account and for all
transactions where money is received are accounted or entered into Tally.ERP 9 using the
Receipt Voucher.
● Go to Gateway of Tally > Accounting Vouchers.
● Select F6: Receipt from the button bar or press F6.
For example, if your company receives money from a customer for an earlier transaction say
sales, and the same is passed through a Receipt Voucher:
● Credit the customer account and debit the Cash account, if you receive cash or
● Debit the Bank account where you need to deposit the money, if you receive Cheques.
The entry in double-entry mode is displayed as shown:

Special Keys for Voucher Narration Field

● ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.
● CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Receipt Entry Using Bank
1. Go to Gateway of Tally > Accounting Vouchers > F6: Receipt.
2. In F12: Configure set the option Use Single Entry mode for
Pymt/Rcpt/Contra to Yes. The Bank Allocations screen appears as shown below:
 3. In the Received From field, the party name as defined in the ledger master appears by
default . This can be changed as the convenience of the user.
4. Select Inter Bank Transfer as the Transaction Type .
5. Specify the Inst.No , Bank , Branch and the Transfer Mode .
Other Transaction Types
1. Go to Gateway of Tally > F11: Features > Set/ Alter Transaction Types to Yes .
2. You can set the option to Yes for any transaction type.
 RECORDING CASH / CREDIT PURCHASE TRANSACTION
Practical No. 8 (ACCOUNTS ONLY)

When a company buys goods on credit or cash, Purchase voucher is used to record all the
Purchase transactions of the company.
● Go to Gateway of Tally > Accounting Vouchers.
● Click on F9:Purchase on the Button Bar or press F9 .
For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-
● Debit Purchase Account.
● Credit Party Account.

To pass a Purchase entry in the Invoice mode, you need to enable the option Enable
Invoicing in F11: Features
(F1: Accounting or F2:
Inventory Features) .
Invoice mode is of two
types, namely:
● An Account Invoice
● An Item Invoice
Account Invoice: You will
be directly selecting/debiting
the Ledger account in case
you are passing an Account
Invoice. This is useful
especially when a Service
Bill is entered and does not
include Inventory.
Pass a purchase Invoice for Service availed from XYZ Couriers.
Item Invoice: You will be first selecting the Inventory and then allocating the same to the
relevant Ledger account. This is useful to record all the Inventory movements in books of
account.
Pass a Purchase Invoice against purchase of Item A – 100 Nos. @ Rs. 10/= per quantity from
LMN & Company.

Configuring an Invoice

Before creating the Purchase Invoice, you can set your I nvoice Configurations from F12
configure:
● Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice)
● Select F12 Configure .

● Set the options, as required.

 RECORDING CASH / CREDIT SALES TRANSACTION
Practical No. 9
(ACCOUNTS ONLY)

Record Sales of Goods or Services

Whether you do cash sales or credit sales, the procedure in Tally.ERP 9 remains similar. The
only difference is that you will select cash or bank for cash sales and party ledger for credit
sales. You can record sales of items using the Item Invoice mode and create bills without items
using the Accounting Invoice mode. Tally.ERP 9 also provides the flexibility to use these
invoice modes interchangeably for recording sales. As per your business practice, you can print
all the invoices with the necessary details.
1. Open the sales voucher screen.
a. Gateway of Tally > Accounting Vouchers > F8 (Sales).
b. Press Alt + I and select the invoice mode as per your business needs.
2. Specify the buyer details.
a. Party A/c Name : Select Cash or Bank for cash sales. For credit sales, select the party
name.
b. Party Details : If you need Despatch , Order , or Buyer details to be part of your invoice,
provide the following details:
If you do not see the Party Details screen, press F12 (Configure), and set Enable
supplementary details? to Yes .
o Despatch & Order Details : You can print these details in the invoice for the buyer's
reference. If you already have a Delivery Note or a Sales Order, the Delivery Note Number
and the Order Number are pre-filled.
o Buyer's Details : In the case of cash sales, specify the buyer's details as needed in the printed
invoice.
As always, you can press Ctrl + A to save and proceed.
3. Specify the accounting ledger to allocate the stock items.
● For Item Invoice , select the Sales ledger .
If you do not see this field on the screen, press F12 (Configure) and set Use common ledger
account for item allocation? to Yes . See more...
● For Accounting Invoice , you do not need an accounting ledger since no stock items are
involved for allocation.
4. Provide stock item or service details.
As in other transactions, you can create the item or ledger on the fly by pressing Alt + C .
● For Item Invoice , select the stock item, enter the Quantity . The Rate will be auto-filled, if
available for the stock item. However, you may choose to enter the Rate or Amount .
● For Accounting Invoice , select the service ledger and enter the Amount .
5. Select additional ledgers, like transportation charges, insurance, or discount, if any.
6. Provide Narration , if needed, and accept the screen. As always, you can press Ctrl + A to
save.

What you see on the screen can vary based on your choices. Press F12 (Configure) to
change the options and F11 (Features) to enable or disable features.
7. To print the invoice, press Alt + P (Print) and press Enter .
The following is a sample preview screen of the sales invoice.
 RECORDING JOUNAL VOUCHER FOR ASSET
Practical No. 10
PURCHASE

Journal Voucher in Tally.ERP 9

Journal voucher in Tally is an important voucher which is used to make all kind of adjustment
entries, credit purchases or sales, fixed assets purchase entries. In order to pass entries as journal
voucher we have to press “F7” shortcut key from accounting Voucher screen on Gateway of
Tally.

Which Segment of Tally.ERP 9 Contains Journal Vouchers?

In total there are 18 vouchers which we already see in Tally software, which is divided into two
parts:

 Accounting Vouchers
 Inventory Vouchers

And under Accounting Voucher there are already 10 nos. of ready to use Accounting
vouchers one among which is Journal voucher.

For what Purpose a Journal Voucher is Used in Tally

This voucher is used for all adjustment or due entries in tally software, or in other words entry
which is not made by other accounting vouchers are made by this voucher.

For Example: Credit purchases of fixed asset from creditor Rs. 50,000/-

Dr. Fixed Assets 50,000

Dr. CGST 4.500
Dr. SGST. 4,500
Cr. Creditor 59,000

For adjusting entries using journal voucher: The use of adjusting entry is to get accurate
financial result of a company.
For example: We use Journal vouchers in Tally for different scenarios listed below :

For journalising Outstanding · Outstanding expenses are expenses which are due but not
Expenses paid.

· Usually Rent bill/Electricity bill, newspaper subscription fee,

salary for the month of March is paid on April of the new
accounting year but as per going concern principle, expense should
be recorded in March itself so as to get an accurate financial report
or profit of a complete financial year.

· In this scenario, we use a journal entry at the end of the march

by debiting “rent expense” and crediting “expense payable ledger”.
To record prepaid expense Pre- paid expenses are expenses paid in advance, the expense of
 which is said to accrue over the months or e Periods or even more
than one financial year in many cases.
To recognize accrued Accrued income is an income earned but not received. It is
income a current asset for the company. This has to be recorded as income
for the financial year to which it pertains by passing a journal entry.

Accrued Income Accrued income is an income received but not earned, which means
cash or consideration received in advance but not actually earned.

For example a digital marketing company receives money

Rs.15,000 as advance for a particular project. But service was not
provided till the date of receipt.

In such case initially we debit cash account for the sum received
and credit liability account like Accrued income account and on
completion and delivery we debit the liability account and credit
the revenue account using a journal entry.
For Transfer entries Transfer entries are used to transfer funds from one account to
another.

For Example: 01-05-2018 ABC Ltd has two accounts in the books
of accounts as “ABC Ltd (Debtor)” hold a debit balance of Rs 1000
and “ABC Ltd (Creditor)” hold a credit balance of Rs. 1000. To
transfer funds from “ABC Ltd (Creditor)” to ABC Ltd (Debtor) and
to close both accounts, we need to pass a journal entry by debiting
ABC Ltd (Creditor) and crediting ABC Ltd (Debtor).
For correcting wrong entries There may be situations where accounts are wrongly credited or
passed in the books of debited, In such case to correct those entries we reverse the first
accounts entry to transfer from wrong account to the correct account using a
journal entry in Tally.
Steps to Enter a Journal Entry in Tally

Journal entries in Tally are bye- passed through journal vouchers. The shortest route for
accessing journal voucher in accounting voucher menu is F7.

To enter a journal entry in Tally. ERP 9 follow these simple steps:

Step 1 From the gateway of Tally.ERP 9, Go to Accounting Voucher, Gateway of Tally >
Accounting Voucher.
Step 2 Now hit F7 shortcut key for journal voucher entry or click on F - 7 Journal button on
the right side of the screen.
Step 3 Change the date by pressing shortcut key F2 or click on date button at the top right.
Step 4 Under the particulars column after By/Dr enter the ledger to be debited and amount
of the transaction. The users can enter multiple debit aspects (ledger to be debited)
one by one if needed.
Step 5 After entering Debit aspect, select To/Cr and select the ledger to be credited and
amount in the next field.
Step 6 Now in the narration field, enter the details of transactions and hit enter to save the
journal voucher.
Practical No. 10 RECORDING PURCHASE ORDER AND RECEIPT NOTE

A Receipt Note voucher is used to record receipt of goods/items at stores. For example , the
Company receives new stock item from a Supplier. If a Purchase Order exists for that supply,
selecting the PO reference in the Receipt Note will display its particulars.

The details recorded in the Receipt Note are the PO reference, Ledger account, Supplier's
name and address, Name of stock item, Stock location, quantity, rate, amount and the
transaction narration.
Purchase includes Accounting and Inventory.
The Receipt Note is similar to the Goods Receipt Note (GRN) type of entry. When the
Receipt Note is passed it updates the inventory levels.
In Tally when a Receipt Note is tagged to a Purchase entry the whole transaction
is completed.
● If Receipt Note is accounted but the Purchase entry is not, it is treated as Goods Received
but Bills are not received.
● If the Purchase entry is accounted and the Receipt Note is not, it is treated as Bills
Received but Goods are not received.
● One Purchase entry can be tagged to many Receipt Notes. Similarly, one Receipt Note can
be tagged to many Purchase bills. It is not necessary for all Receipt Notes to be tagged
with Purchase entries and vice versa.
● When the stock received is a part of purchase and we wish to keep track of the purchase
bill for accounting, a Tracking No. is assigned while accounting the Receipt Note. The
Tracking No. is selected while accounting the Purchase bill/invoice. Similarly, we can
assign a Tracking No in the Purchase voucher and select it while accounting the Receipt
Note.
● A Receipt Note or Purchase Entry can be prepared first. It is not compulsory that a Receipt
Note should be prepared before accounting the Purchase Entry or the Purchase entry
should be accounted before preparing a Receipt Note.
Configure the receipt note
1. Go to Gateway of Tally > F11: Features > F2: Inventory .
2. Set Use tracking numbers (enables delivery and receipt notes) to Yes .
3. P ress Ctrl+A to accept.
4. Go to Gateway of Tally > Inventory Vouchers
5. Click F9 : Rcpt Note . The receipt note appears.
6. Click F12: Configure . The Voucher Configuration screen appears as shown:
 7. Set Accept Supplementary details to Yes .
8. P ress Ctrl+A to accept and return to the voucher screen.
Note: For more details refer Receipt Note Printing Configuration .
Enter the Receipt Note voucher
1. Select Party A/c Name from the List of Ledger Accounts .
2. Select Order No(s) from the List of Orders , if a purchase order exists for that supplier.
The Party Details screen appears as shown:

3. Enter the required information in the Party Details screen.

4. Select the Order No(s) . If the Order No(s) is selected, the item name,quantity, rate and
amount will be displayed automatically.
5. Press Enter . T he Stock Item Allocations screen appears as shown:
6. Select existing Tracking No. or create a new tracking number.
The Receipt Note appear as shown below:

7. Enter Narration , if required.

8. Press Enter to save.
Practical No. 11 CREATING GST LEDGERS (SGST, CGST, IGST)

You can account for different taxes under GST (central tax, state tax, UT tax, integrated tax, and
cess), by creating a tax ledger for each tax type.
Create central tax ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. In Under , select Duties & Taxes .

3. Select GST as the Type of duty/tax .
4. Select Central Tax as the Tax type .
Similarly, you can create ledgers for state tax, integrated tax, and cess by selecting the
relevant Tax type under GST.
Create cess ledger
You can create separate cess ledgers for quantity and value, to print the breakup of these
values in the invoice. Do not alter the existing cess ledgers as it will impact the transactions
recorded earlier.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
 2. In Under , select Duties & Taxes .
3. Select GST as the Type of duty/tax .
4. Select Cess as the Tax type .
5. Select the valuation type as:
o Based on Quantity to calculate cess on quantity.
o Based on Value to calculate cess on the assessable value.
Create UT tax ledger
If you are an Assessee of Other Territory and have enabled this option in the Company
GST Details screen, you can create the UT tax ledger.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. In Under , select Duties & Taxes .

3. Select GST as the Type of duty/tax .
4. Select UT Tax as the Tax type .
Practical No. 12 GST REPORTS

In GST, Tally.ERP 9 provides GSTR-1, GSTR-2, GSTR-3B and e-Way Bill related reports. The
GSTR-1 report in Tally.ERP 9 is designed exactly as the form of GSTR-1 to make life easy for
users.

Business owners can see -

 Details of transactions participating in GSTR-1

 Transactions not relevant for returns
 Transactions not participating because of incomplete information or mismatches
 Serial number-wise details of values as mentioned in GSTR-1

A user can navigate from any value up to the actual transaction itself. Users can correct
transactions under Incomplete/mismatch in the Information section and allow these transactions
to participate in GST returns. This way, Tally ensures that a user files the most accurate GST
returns. A similar experience is given for GSTR-2 and GSTR-3B.