1.Explain the steps for creation of company in Tally prime.

TallyPrime is a popular accounting software that allows you to create and

manage your company's financial records digitally. Here are the steps
involved in creating a company in TallyPrime:
1. Launch TallyPrime: Open the TallyPrime software on your computer.
2. Create a Company:
o Select the "Gateway of Tally" option.
o Choose "Create Company."
o You will be prompted to enter the company name and a unique
company code.
3. Set Company Features:
o Choose the type of business entity (e.g., Sole Proprietorship,
Partnership, Limited Company).
o Select the financial year for your company.
o Specify the currency used for accounting transactions.
o Set the accounting standards and conventions to follow (e.g.,
Indian Accounting Standards, IFRS).
4. Configure Accounting Vouchers:
o TallyPrime uses vouchers for recording financial transactions.
o You can customize the voucher types and their names to suit your
business needs.
o For instance, you might create vouchers for sales, purchases,
receipts, payments, journal entries, etc.
5. Create ledgers for various types of accounts, such as bank accounts,
customer accounts, supplier accounts, income accounts, expense
accounts, etc.
6. Set Up Taxes (if applicable):
 Configure tax settings if applicable, such as GST, VAT, or other taxes relevant to your
business.

7.Backup Company Data:

 Regularly back up your company data to prevent data loss.

2.Discuss the steps for installation of Tally prime in the system.

The installation of Tally Prime involves the following steps:

i) Download the Installer:- Visit the official Tally website and download the Tally
Prime installer file compatible with your operating system.

ii)Run the Installer:-Double-click the installer to begin the installation

process.Follow the prompts, choosing the installation directory where Tally Prime
will be stored.

iii) System Requirements:-Ensure your system meets the minimum

systemrequirements for installing and running TallyPrime. This typically includes sufficient
RAM, storage space, and a compatible operating system.
iv)  Run the Installation File:-Double-click the installation file to start the
installation process.
v) Follow On-Screen Instructions:-The installer will guide you through the installation
process.You may be prompted to accept the license agreement and choose the
installation location.
vi) Activate TallyPrime:-After installation, you may need to activate TallyPrime using a
license key or activation code.
vii) Configure Settings:-After activation, you can configure settings such as the
default company, user preferences, and other options.
viii) Launch TallyPrime:-Once the installation is complete, you can launch TallyPrime
and start using it.

3. Discuss the various steps involved in the filing of an income tax return through
online mode.
filing an income tax return (ITR) online includes these steps:
 Access the Income Tax E-Filing Portal: Visit the government’s o icial
e-filing website and log in using your PAN or Aadhaar credentials
 If you don't have an account, register on the o icial Income Tax e-Filing
portal. You'll need your PAN (Permanent Account Number).

Login and Verify:

Login to your account using your credentials.

Verify your account using the OTP sent to your registered mobile number or email
address.

 Select ITR Form: Choose the appropriate form (e.g., ITR-1, ITR-4) based
on your income source and category (salaried, business, etc.).
 Enter Personal Information: Fill in your name, address, PAN, and
contact details.
 Enter Income Details:- Enter details of your income from various
sources, such as salary, business, capital gains, etc. The portal may pre-
fill some information based on your previous returns or information
available from other sources.
 Enter Deductions and Tax Payments:- Enter details of deductions and
tax payments made during the year.
 Calculate Tax Liability:- The portal will calculate your tax liability based
on the information provided.
 Upload Supporting Documents: Attach necessary forms or statements
(e.g., TDS certificates, bank statements).
 Verify and Submit: Review the return, digitally sign (if applicable), and
submit. Complete verification via Aadhaar OTP or bank account
validation. After successful submission, you will receive an
acknowledgment number.

4. Explain the designing of Payroll accounting system in DBMS

package.
 Designing a payroll system in DBMS includes:
 Requirement Analysis: Identify essential payroll components like
employee ID, salary structure, attendance, and tax deductions.
 Database Schema Design:
o Employee Table: Contains fields such as Employee ID, Name,
Department, and Position.
o Salary Table: Includes fields like Basic Pay, Allowances, and
Deductions.
o Tax Table: Details tax brackets and applicable rates.
Functions and Procedures:
 Calculate Salary: A stored procedure to calculate the gross salary,
deductions, and net salary for each employee based on their salary
structure and applicable deductions.
 Generate Payslips: A function to generate payslips for each employee,
displaying their salary details and deductions.
 Process Salary Payments: A stored procedure to generate payment
records for each employee and update the salary payment table.
 Tax Calculation: A function to calculate the income tax liability for each
employee based on their income and tax slab.

5. Explain the benefits and limitations of using a computerized

accounting system over a manual accounting system.
Benefits:
 Accuracy: Reduced errors due to automated calculations and data
entry.
 E iciency: Faster processing of transactions, generation of reports, and
data retrieval.
 Real-time Information: Access to up-to-date financial information
anytime, anywhere.
 Improved Decision Making: Better insights into financial performance
through real-time reports and analysis.
 Reduced Costs: Lower labor costs associated with manual data entry
and processing.
 Enhanced Security: Robust security measures to protect financial data
from unauthorized access.
 Better Audit Trails: Clear audit trails for all transactions, making it
easier to track changes and identify discrepancies.
 Integration: Seamless integration with other business applications like
inventory management, CRM, and e-commerce.
Limitations:
 Initial Investment: Cost of purchasing and implementing the software.
 Training Requirement: Employees need to be trained on how to use the
software e ectively.
 Dependence on Technology: Reliance on computers and internet
connectivity can disrupt operations in case of system failures.
 Data Security Risks: Potential risks of data breaches and cyberattacks.
 Complexity: Some accounting software can be complex to learn and
use, especially for small businesses.
 Customization Challenges: Customization may require technical
expertise or additional costs

6. Explain the procedure of enabling GST in Tally prime.

1. Activate GST Feature:
 o Enable the GST feature in TallyPrime by going to "Gateway of Tally"
-> "F12: Configure" -> "Company Features" and checking the
"Enable GST" option.
2. Create GST Entries:
o Create GST entries for your business, including registration
details, state codes, and tax rates.
3. Configure GST Rates:
o Set up GST rates for di erent types of goods and services based
on the applicable GST slabs.
4. Define GST Ledgers:
o Create ledgers for GST-related accounts, such as Input Tax Credit
(ITC), Output GST, and GST Payable.
5. Create GST Vouchers:
o TallyPrime provides specific GST vouchers for recording
transactions, such as GST Invoice, GST Debit Note, and GST
Credit Note.
6. Reconcile GST Returns:
o Use TallyPrime to reconcile your GST returns with the information
reported on the GST portal.
7. File GST Returns:
o Export data from TallyPrime in the required format and upload it to
the GST portal for filing returns.

SHORT QUESTIONS

1. Di erentiate Between Computerized and Manual Accounting

Basis for
Manual Accounting Computerized Accounting
Comparison

Meaning Manual Accounting is a system Computerized Accounting is an

of accounting that uses accounting system that uses an
physical registers and account accounting software, for recording
books, for keeping financial financial transactions
records. electronically.

Recording Recording is possible through Data content is recorded in

book of original entry. customized database.

Calculation All the calculation is Only data input is required, the

performed manually. calculations are performed by
computer system.

Speed Slow Comparatively faster.

Adjusting It is made for rectification of It cannot be made for rectification

entries errors. of errors.

Backup Not possible Entries of transactions can be

saved and backed up

Trial Balance Prepared when necessary. Instant trial balance is provided on

daily basis.

Financial It is prepared at the end of the It is provided at the click of button.

Statement period, or quarter.

2. What are the steps for creating a Contra Voucher Entry in Tally Prime?
1. Go to "Vouchers."
2. Select "Contra."
3. Enter the date of the transaction.
4. Select the accounts involved (e.g., Bank, Cash).
5. Enter the amount to be transferred.
6. Save the voucher.

3. State the di erent components of a Table:

A table in a database consists of:
 Rows (records)
 Columns (fields/attributes)
 Primary key (unique identifier for each row)
 Foreign keys (links to other tables)

4. State the important features of e-Billing 2.0:

E-Billing 2.0 o ers features like real-time invoice tracking, auto-population of GST
returns, and compliance with tax regulations. It enables seamless data sharing
between businesses and tax authorities, enhancing transparency and e iciency.

5. What is Form 26AS?

Form 26AS is an annual tax statement provided by the Income Tax Department. It
includes details of tax deducted at source (TDS), tax collected at source (TCS), advance
tax payments, refunds, and other financial transactions related to a taxpayer.

6.What are the benefits of e-tax Calculator?

 Accurate tax calculation

 Easy to use and navigate
 Saves time and e ort
 Helps in tax planning and optimization

7. Write the di erent features of DBMS:

DBMS features include data security, data integrity, and support for data manipulation
through SQL. It allows concurrent access, provides backup and recovery options, and
facilitates data sharing across multiple users.
8. How would you enable Payroll in Tally Prime?

1. Go to "Gateway of Tally" -> "F12: Configure" -> "Company Features."

2. Check the "Enable Payroll" option.
3. Set up payroll parameters like salary heads, deductions, and tax settings.

8. What are the different challans used for payment of income tax?

Common challans include:

 ITNS 280: For self-assessment and regular tax.

 ITNS 281: For TDS/TCS payments.
 ITNS 282: For wealth tax.
These challans facilitate online or offline tax payments.

10. State the Steps for creating State GST Ledger:

1. Go to "Accounts Info" -> "Ledger."

2. Select "Create."
3. Enter the ledger name (e.g., "CGST Output").
4. Select the "GST" group.
5. Set the GST rate and other relevant details.
6. Save the ledger.

11. What do you mean by import and export of data in Tally Prime?

 Importing: Bringing data from external sources (e.g., Excel, CSV) into Tally Prime.

 Exporting: Extracting data from Tally Prime and saving it in external formats for further
analysis or sharing.

2 marks questions
1. Memorandum Voucher

A memorandum voucher is a non-accounting voucher used to record provisional or non-final

transactions. These do not affect the accounts until they are converted into actual vouchers.
2. Payroll Accounting

Payroll accounting involves managing employee compensation, including salaries, bonuses,

deductions, and tax withholdings. It ensures accurate payment and compliance with statutory
regulations.

3. Data Backup

Data backup refers to the process of copying and archiving company data to prevent loss in
case of system failure or cyberattacks. It ensures business continuity by allowing data
restoration.

4. TDS (Tax Deducted at Source)

TDS is a system where tax is deducted at the source of income, such as salaries or interest
payments. The deducted amount is then deposited with the government.

5. Payroll Reports

Payroll reports provide detailed information about employee earnings, tax deductions, and
net payments. These reports help in statutory compliance and financial analysis.

6. Balance Sheet

A balance sheet is a financial statement showing a company’s assets, liabilities, and equity at
a specific point in time. It provides insights into financial stability and liquidity.

7. Queries

In database management, queries are commands used to retrieve or manipulate data. They
help in accessing specific information quickly and efficiently.
8. Income Tax Return

An income tax return is a form filed with the tax authorities, detailing income, expenses, and
tax liabilities. It helps calculate the amount of tax owed or refunds due.

9. E-Payment of Tax

E-payment of tax allows taxpayers to pay their taxes online through the government’s official
portal. It provides a convenient and secure method for fulfilling tax obligations.

10. Form 10E

Form 10E is filed to claim relief under Section 89(1) of the Income Tax Act for salary arrears
or advance payments. It helps reduce the tax burden caused by income fluctuations.

11. Entity

In accounting, an entity refers to any organization or individual engaged in business or

economic activities. It is treated as a separate unit for financial reporting.

12. Database

A database is an organized collection of data that allows easy access, management, and
updating. It is essential for storing and retrieving information systematically.

13. Balance Sheet

A balance sheet displays a company's financial position by listing its assets, liabilities, and
equity. It helps stakeholders assess the organization's financial health.

14. Vouching
 Vouching is the process of verifying the authenticity of transactions recorded in books of
accounts by examining supporting documents. It ensures accuracy and reliability in financial
reporting.

15. Computerized Accounting System

A computerized accounting system uses software to record, process, and report financial
transactions. It enhances accuracy, efficiency, and provides real-time financial insights.