IT IMPORTNACE:

1. Explain the features of computerized accounting system (CAS)

Ans. 1) Integrated Date & Information : Computerized Accounting system is designed to make it user friendly automated and
integrated for all business process such as purchase, sales, finance, inventory, payroll and manufacturing. With computerized
accounting system we can keep accurate, up-to-date business information within time limit. Computerized accounting is mixed
with Management Information System (MIS) with Multilingual and Data organization capabilities to support the company. All the
business operations are easy and cost effective.

2) Accuracy & Speed : Computerized accounting has various customized templates and software for users which allows fast and
accurate data entry and transaction operations. Thus, after recording the business transactions it generates the various
information and reports automatically.

3) Quick Decision Making : The Computerized Accounting System generates real-time information for quick decision. The
company or firm can plan, its activities with the help of comprehensives MIS reports and instant access to complete and critical
information of the Company.

4) Modern and Integrated : It helps to save time in recording business transactions as compared to manual accounting system.
Various financial statements such as Trial Balance. Profit & Loss A/c, Balance Sheet can be derived at any point of time within
fraction of seconds.

5) Immediate availability of Books of Accounts : In Computerized Accounting system Books and Registers like Cash Book, Bank
Book, Purchase Register, Sales, Register and Statement of Account like Receivables and Payables are readily available at any point
of time.

6)Security : The Computerized Accounting System is more secured. Data and information can be kept confidential as compared
to the traditional accounting system. In this security system user can create multiple user security control for the various users.

7)Transparency : Computerized accounting system helps the business organization to keep greater transparency in the day to day
business operations.

8)Grouping of Accounts : Appropriate grouping of accounts is required to be done in computerized accounting system. Normally
ledger accounts are classified under groups like Assets, Liabilities, Income and Expenditure. As per requirement these groups are
further divided into sub groups as per convenience of the user.

2. Explain the steps for creating a company in Tally prime

3. Explain features of Tally

Ans. Tally is a popular accounting software primarily used for managing business finances. It's designed to make financial management
simpler, especially for small and medium-sized businesses. Here are some key features of Tally:

1. Accounting and Bookkeeping

Double-entry bookkeeping: Tally supports double-entry accounting, which helps ensure accurate financial records.

Ledger Management: It allows businesses to create and maintain ledgers for all types of transactions like income, expenses,
and assets.

Trial Balance & Financial Statements: You can generate trial balances and financial reports like balance sheets, profit and
loss accounts, and cash flow statements.

2. Inventory Management

Stock Management: Tally helps businesses track their inventory levels, including raw materials and finished goods.

Multiple Stock Groups & Categories: It allows users to manage products by categorizing them into groups and subgroups.
 Stock Valuation: Tally can perform stock valuations based on methods like FIFO (First In, First Out), LIFO (Last In, First Out),
or weighted average.

3. Taxation Management

GST Compliance: Tally provides features for calculating and filing Goods and Services Tax (GST) returns, including GST reports
and GST invoice generation.

Tax Reports: Tally can generate various tax reports like VAT, TDS, TCS, and service tax.

Tax Deducted at Source (TDS) & Tax Collected at Source (TCS): It helps in managing TDS and TCS calculations and
compliance.

4. Payroll Management

Employee Records: Tally allows businesses to maintain employee records, including their salaries, deductions, and benefits.

Salary Processing: It can calculate salaries, bonuses, and deductions, and generate payslips for employees.

PF, ESI, and Tax Calculation: Tally can calculate statutory deductions like Provident Fund (PF), Employees’ State Insurance
(ESI), and income tax.

5. Banking and Reconciliation

Bank Account Management: You can link your bank accounts and manage payments, receipts, and transfers within Tally.

Bank Reconciliation: Tally helps reconcile bank statements with your accounting records to ensure accuracy.

6. Multi-Currency Support

Foreign Currency Transactions: Tally supports multi-currency transactions, making it suitable for businesses involved in
international trade.

Currency Conversion: It helps calculate conversions based on real-time exchange rates.

7. Invoicing and Billing

Customizable Invoices: Tally allows businesses to create customized invoices that include company details, product
information, taxes, and payment terms.

Sales and Purchase Orders: You can create and track sales and purchase orders, helping with order fulfillment and inventory
management.

8. Security and Data Integrity

Data Encryption: Tally ensures the security of financial data through encryption techniques.

User Access Control: It allows businesses to set user roles and permissions, ensuring that only authorized personnel have
access to sensitive data.

Backup and Restore: Tally provides options to back up your data and restore it in case of system failure.

9. Reporting and Analysis

Real-time Reports: Tally can generate reports in real-time, providing insights into business performance, cash flow, and
outstanding debts.

Custom Reports: You can generate customized reports based on various filters, such as time period, category, or customer.

Ratio Analysis: Tally supports financial ratio analysis for better decision-making.

10. Multi-User and Remote Access

Multi-User Support: Tally can be used by multiple users simultaneously, making it suitable for teams working in different
departments.

Remote Access: With Tally.ERP 9 and TallyPrime, businesses can access their accounts remotely through Tally's cloud service.
 11. Integration with Other Software

Third-party Software Integration: Tally can integrate with other business management tools, such as CRM systems, payroll
software, and banking software, for a more seamless workflow.

Tally on Cloud: Tally offers cloud-based solutions, making it easier for users to access their data from anywhere.

12. Simplified User Interface

User-friendly Interface: Tally’s simple and easy-to-use interface makes it accessible for people with no accounting
background.

Customizable Views: You can customize the display of reports and data to suit your business needs.

4. Explain models/ types of MIS

5. BPM process lifecycle

6. Explain the reports generated by MIS

7. Differentiate between computerised accounting and manual accounting.

Ans.

Basis of difference Manual accounting Computerised accounting

1. Meaning Manual accounting is the system in In this system of computerized
which we maintain physical register of accounting, we use computer and
journal and ledger for keeping the different accounting software for digital
records of each business transactions. record of each business transactions.
2. Calculation make total of In this system, all calculations are done In computerized accounting system, our
manually. For example, to find the duty is to record the business
balance of any ledger account. We will transactions manually in the database.
make total of the debit and credit side All the calculations are done by
and then we will find its difference for computer system. We need not
showing balance. calculate each account’s balance, it is
calculated automatically by
computerized accounting system.
3. Ledger accounts Ledger accounts are prepared by In computerized accounting system,
posting transactions in appropriate once a voucher is entered it will
ledger manually with the help of journal. automatically be printed. Thus there is
There may be mistakes while no chance of taking or transferring
transferring the amount manually. wrong amount.
4. Trial balance In this system of accounting, we have to Computerized accounting system will
take the balances of all ledger A/c, in produce Trial Balance automatically.
Trial Balance Statement.
5. Adjustment entries record Both adjustment journal entries and its Only adjustment entries will be passed
posting in the ledger accounts will be in the computerized accounting system,
done manually one by one posting in the Ledger accounts will be
done automatically
6. Financial statements We have to make the financial We need not prepare financial
statements manually by carefully statement manually; financial
transferring Trial Balance’s figures in to statements will be generated
Trading, Profit and Loss Account and automatically. It will also automatically
Balance Sheet. change after each voucher entry in the
 system. This facility is not available in
the manual accounting system.
7. Closing the books After the year end accountants prepare In the computerized accounting
financial statements for the accounting software financial reports are auto
period. The balances are to be carried generated for the accounting period. The
forward manually, to next year. balances are automatically carried
forward to next year.

8. Name and explain pre- defined groups in Tally

9. Advantages of BPM

10. Advantages of CAS

11. Principles of BPM

12. Characteristics of MIS

13. Explain GST

Ans. GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in the
production and distribution of goods and services. It is designed to be a single, unified tax system replacing various indirect taxes like
VAT, service tax, excise duty, and others, simplifying the taxation process.

Key Features of GST

Single Tax Structure: GST replaces multiple indirect taxes, such as VAT, excise duty, and service tax, with a single tax. This helps
businesses comply with one tax instead of multiple taxes.

Multi-Stage Taxation: GST is applied at each stage of the supply chain, from manufacturing to final sale, with tax credit provided for
taxes paid on previous stages (Input Tax Credit or ITC). This ensures that the tax is levied on the value added at each stage.

Destination-Based Tax: GST is a destination-based tax, meaning the tax is paid where the goods or services are consumed, not where
they are produced. For instance, if a product is manufactured in one state and sold in another, the tax is collected by the state where
the product is consumed.

Input Tax Credit (ITC): One of the fundamental principles of GST is that businesses can claim a credit for the tax paid on purchases
(input tax) against their output tax (sales tax). This ensures that tax is only paid on the value added at each stage and prevents the
cascading effect of tax on tax.

Types of GST:

CGST (Central GST): The tax collected by the central government on intra-state sales (within the same state).

SGST (State GST): The tax collected by the state government on intra-state sales.

IGST (Integrated GST): The tax collected by the central government on inter-state sales (between different states).

UTGST (Union Territory GST): Similar to SGST but applicable to Union Territories.

Categories of GST

GST on Goods: This includes the taxation of goods sold and consumed within the country. Different categories of goods are taxed at
varying rates depending on their classification.

GST on Services: Services provided in exchange for money, including professional services, entertainment services, or transportation
services, are also taxable under GST.

GST Rates
 GST is implemented with multiple tax slabs, making it flexible and covering a wide range of products and services. The main GST tax
slabs in India (as an example) are:

0%: Essential items like fresh fruits, vegetables, etc.

5%: Common goods and services, such as packaged food items.

12%: Processed food, certain services.

18%: Standard goods and services like mobile phones, hotel services, etc.

28%: Luxury items, tobacco, high-end cars, etc.

Additionally, some goods and services may be exempt from GST or may be subject to special rates.

Benefits of GST

Reduction in Cascading Tax Effect: By allowing the Input Tax Credit, GST reduces the cascading tax effect (tax on tax) that existed
under the previous system, leading to a more transparent and efficient tax structure.

Simplified Compliance: Businesses only need to file a single return for all their taxes under GST, making the compliance process
simpler compared to the earlier tax regime.

Boost to Economic Growth: GST leads to a more integrated national market, encouraging trade and commerce across state lines,
reducing barriers to the movement of goods and services.

Better Tax Collection: With the online GST system and invoice matching, the chances of tax evasion are reduced, leading to better
tax collection and government revenue.

Transparent and Efficient Taxation: Since GST is a well-defined tax that operates on a unified and standard platform, it eliminates
confusion and minimizes disputes between businesses and tax authorities.

Global Competitiveness: GST ensures that businesses are on a level playing field and help improve their global competitiveness due
to the reduction of indirect taxes.

GST Filing Process

Businesses registered under GST must comply with certain reporting requirements, including:

GST Returns: Businesses need to file returns based on their tax activity, which can include sales, purchases, and the tax paid or
collected.

GSTIN (GST Identification Number): Each business that is registered under GST is assigned a unique number for identification.

GST Payments: Businesses are required to pay GST on their sales and are eligible to claim input tax credit on their purchases.

Conclusion

GST is a significant tax reform designed to simplify and streamline the tax system. It aims to eliminate the cascading effect of taxes,
provide a unified framework for businesses, and increase transparency in the taxation process. With its introduction, businesses,
governments, and consumers can benefit from a more organized and efficient tax structure.

14. Explain BPM

15. Name and explain the versions of Tally.

16. Name and explain 5 vouchers in Tally prime.

17. Explain implementing BPM.

Ans. Implementing Business Process Management (BPM) is the practice of analyzing, improving, and automating business
processes to optimize performance, increase efficiency, and ensure alignment with business goals. BPM involves managing
processes from end to end, involving the entire lifecycle of a process—from design and modeling to execution, monitoring, and
continuous improvement.

Key Steps to Implement Business Process Management

1) Define the Objectives and Scope

Identify Business Goals: Before implementing BPM, define the strategic business goals you want to achieve. For instance, reducing
operational costs, increasing process efficiency, or improving customer satisfaction.

Scope Definition: Determine the processes to be managed, whether they are organization-wide processes, department-specific,
or project-based processes.

2) Identify and Map Existing Processes

Process Mapping: Identify all the current business processes within the organization. Create flowcharts or process maps to visualize
how tasks are currently being completed. Tools like Microsoft Visio or specialized BPM software (e.g., Bizagi, Lucidchart) are helpful.

Document Processes: Gather information on how the processes are performed, what resources are used, what systems are in
place, and the roles of people involved.

Analyze Current Processes: Identify bottlenecks, inefficiencies, and areas where improvements can be made.

3) Model and Design New Processes

Reengineering Processes: Based on the analysis, design new processes or modify existing ones to improve efficiency. This may
include eliminating unnecessary steps, automating repetitive tasks, or optimizing resource usage.

Standardization: Design processes that follow industry best practices and ensure consistency across the organization.

Use BPMN (Business Process Model and Notation): This is a standardized method for modeling business processes using flow
diagrams. BPMN helps to clearly communicate processes to all stakeholders.

4) Select BPM Software or Tools

Choose BPM Tools: Implementing BPM often involves using specialized BPM software for automation and process monitoring. The
tools help with process modeling, execution, monitoring, and optimization.

Integration with Existing Systems: Ensure the BPM software integrates with your existing Enterprise Resource Planning (ERP),
Customer Relationship Management (CRM), and other systems, to avoid creating silos in data and operations.

5) Implement the New or Improved Processes

Process Automation: With BPM software, many processes can be automated to eliminate manual intervention and reduce human
error. This could include automating approvals, document routing, or notifications.

Resource Allocation: Ensure that the necessary resources (human, financial, technological) are available to implement the new
processes.

Pilot Testing: Test the new processes on a small scale or in a specific department before rolling them out across the organization.

6) Train Employees and Stakeholders

Employee Training: Provide training for employees on new processes and systems. Ensure they understand how the processes
work and how they contribute to achieving organizational goals.

Stakeholder Communication: Ensure all stakeholders, including management, team leads, and employees, are well-informed about
the changes in the processes and their roles.

7) Monitor and Measure Performance

Key Performance Indicators (KPIs): Define KPIs and metrics to monitor the performance of processes after implementation. These
could include metrics such as cycle time, throughput, customer satisfaction, and cost savings.

Continuous Monitoring: Use BPM tools to continuously track processes, identify inefficiencies, and collect data to evaluate
performance in real-time.
Dashboards and Reporting: Implement dashboards and reporting tools to provide management and employees with up-to-date
information on process performance.

8) Continuous Improvement

Feedback Loop: Establish a feedback loop where employees, stakeholders, and customers can provide insights on process
performance and suggest improvements.

Iterative Improvement: Use techniques like Six Sigma, Lean, or Agile to make continuous improvements over time. Regularly
analyze process data to identify new opportunities for optimization.

Process Audits: Regularly conduct audits of processes to ensure they continue to meet objectives and adapt to changing business
needs.

9) Change Management

Communicate Change: Since BPM often involves significant changes in how things are done, managing the change process is
crucial. Communicate the reasons for changes clearly to the team.

Handle Resistance: Address any resistance to change by involving employees in the process and showing them how BPM will make
their jobs easier or more efficient.

Monitor Adoption: Track how well the new processes are being adopted and address any issues or challenges faced by the
employees.

18. Steps to delete a company in Tally.

19. Explain the limitation of CAS.

20. Explain the steps to display vouchers entry in Tally.

21. Explain various types of accounting software

Ans. Accounting software is essential for businesses of all sizes to manage their financial transactions, generate financial reports, and
ensure compliance with tax regulations. There are several types of accounting software, each designed to cater to different business
needs. Here’s an overview of the various types of accounting software:

1. Basic Accounting Software

• Purpose: Basic accounting software is designed for small businesses with simple accounting needs.

• Features:

o Bookkeeping (income and expenses tracking)

o Basic invoicing and billing

o Simple financial reports (profit and loss statements, balance sheets)

• Example: FreshBooks, Wave Accounting

• Best For: Freelancers, small businesses, or startups with limited accounting complexity.

2. Cloud-Based Accounting Software

• Purpose: Cloud-based accounting software allows businesses to access their financial data from any device with internet
access, promoting collaboration and real-time updates.

• Features:

o Access from anywhere (web-based)

o Real-time data syncing across devices

 o Automatic software updates and backups

o Multi-user access

• Example: QuickBooks Online, Xero, Zoho Books

• Best For: Small to medium-sized businesses, remote teams, or companies looking for convenience and scalability.

3. Enterprise Resource Planning (ERP) Accounting Software

• Purpose: ERP systems are more comprehensive software solutions that integrate accounting with other business functions,
such as inventory management, HR, and customer relationship management (CRM).

• Features:

o Full-suite financial management (accounts payable, receivable, general ledger)

o Integration with other business modules (sales, procurement, HR)

o Advanced reporting and analytics

o Customization options for large-scale businesses

• Example: SAP ERP, Microsoft Dynamics 365, Oracle NetSuite

• Best For: Medium to large businesses or enterprises with complex operations that need an integrated solution for various
functions.

4. Bookkeeping Software

• Purpose: Bookkeeping software is focused primarily on recording and managing financial transactions, especially for smaller
businesses that need to keep track of income and expenses without complex accounting functions.

• Features:

o Transaction management (income, expenses, accounts payable/receivable)

o Bank reconciliation

o Basic reporting (profit and loss, trial balance)

• Example: QuickBooks Self-Employed, Kashoo

• Best For: Small businesses, freelancers, or sole proprietors who need basic bookkeeping functionality.

5. Billing and Invoicing Software

• Purpose: This type of software is specifically designed for businesses that need to manage invoicing and billing processes.

• Features:

o Invoice creation and customization

o Recurring billing (for subscription-based businesses)

o Payment tracking and reminders

o Integration with payment gateways (PayPal, Stripe)

• Example: Invoice Ninja, FreshBooks, Bill.com

• Best For: Service-based businesses, freelancers, and companies that need to manage invoicing without comprehensive
accounting features.

6. Tax Accounting Software

 • Purpose: Tax accounting software is tailored for managing tax-related processes, calculating taxes, and ensuring tax
compliance. It’s especially useful during tax season.

• Features:

o Tax calculations (income tax, sales tax, VAT)

o Tax filing and reporting (for businesses and individuals)

o Integration with other accounting functions for accurate tax data

• Example: Intuit ProConnect, TaxSlayer, H&R Block

• Best For: Small businesses or individuals needing assistance with tax preparation and filing.

7. Payroll Software

• Purpose: Payroll software helps businesses manage employee payroll, tax withholdings, and benefits processing.

• Features:

o Salary and wage calculation

o Tax deductions and filings

o Employee benefits management (health insurance, retirement plans)

o Payslip generation and reporting

• Example: Gusto, ADP, Paychex

• Best For: Small to medium-sized businesses with employees, especially those looking to streamline payroll processing.

8. Nonprofit Accounting Software

• Purpose: Nonprofit accounting software is specifically designed to meet the unique needs of nonprofit organizations, helping
them track donations, grants, and restricted funds.

• Features:

o Fund accounting (tracking donations, grants, and expenses by fund type)

o Donor management

o Reporting for tax-exempt status and regulatory compliance

o Budgeting and forecasting for nonprofit projects

• Example: Aplos, QuickBooks for Nonprofits, Xero for Nonprofits

• Best For: Nonprofit organizations that need to manage finances and ensure compliance with donation and grant management
requirements.

9. Inventory Accounting Software

• Purpose: Inventory accounting software is used by businesses that need to track inventory, manage stock levels, and integrate
accounting with inventory control.

• Features:

o Real-time inventory tracking and management

o Automatic updating of inventory values based on sales and purchases

o Integration with sales, purchasing, and accounting modules

o Inventory costing methods (FIFO, LIFO, weighted average)

 • Example: TradeGecko (now QuickBooks Commerce), Fishbowl, Unleashed

• Best For: Retailers, wholesalers, or businesses with significant inventory needs.

10. Project-Based Accounting Software

• Purpose: This type of software is focused on managing finances related to specific projects or contracts, providing visibility
into project costs, timelines, and profitability.

• Features:

o Budgeting and cost tracking by project

o Time and expense tracking for projects

o Project-specific reporting (profitability, progress)

o Billing clients for project-based work

• Example: QuickBooks Online (with project tracking), FreshBooks (with project management), Deltek

• Best For: Businesses that operate on a project or contract basis, such as construction companies, consulting firms, and
marketing agencies.

11. Management Accounting Software

• Purpose: Management accounting software is geared toward helping business leaders make informed decisions by providing
insights into the financial health of the organization.

• Features:

o Profit and loss statements, balance sheets, and other managerial reports

o Budgeting, forecasting, and financial analysis

o Performance management tools (KPIs, variance analysis)

o Decision support for pricing, investments, and cost control

• Example: Adaptive Insights, Planful, Oracle NetSuite

• Best For: Medium to large organizations that need advanced analytics and support for strategic decision-making.

SHORT NOTES:

1. Explain any 2 pre defined ledgers in tally

2. Explain any 2 solutions for BPM

Ans. Bizagi is a comprehensive BPM solution that focuses on process automation and continuous improvement, with a strong
emphasis on process modeling and visualization. It helps businesses automate workflows, track key performance indicators (KPIs),
and integrate different business functions.

Pega BPM is a robust BPM and workflow automation platform that helps organizations automate complex business processes, improve
customer experiences, and drive operational efficiency. It combines business process management with customer relationship
management (CRM) and decision management.

3. Steps to download Tally prime software

4. Steps for GST registration

Ans. Step 1: Check Eligibility

Step 2: Gather Required Documents

You will need the following documents to complete your GST registration:

1. PAN (Permanent Account Number) of the business owner/firm

2. Proof of Business Address (rental agreement, electricity bill, etc.)

3. Aadhaar Card (for the applicant)

4. Bank Account Details (passbook/cancelled cheque)

5. Photograph (of the business owner)

6. Constitution of Business (Partnership deed, LLP agreement, Certificate of Incorporation, etc.)

7. Authorization Letter (if someone else is applying on your behalf)

Step 3: Visit the GST Portal

Go to the official GST portal: https://www.gst.gov.in/

• On the homepage, click on the "Services" tab.

• From the dropdown, select "Registration" and then click on "New Registration".

Step 4: Fill in the GST Registration Application (Part A)

This step involves providing basic details about your business:

• Type of Registration

• Legal Name of the

• PAN Number

• Email Address and Mobile Number

• State/UT

Step 5: OTP Verification

Step 6: Fill in the GST Application (Part B)

• Business details (Nature of business, type of supply, etc.)

• Bank account details

• Authorized signatory (the person who will represent the business)

• Details of goods/services provided (the goods or services your business deals in)

Step 7: Upload Documents

• Business address proof

• PAN card

• Aadhaar card

• Photograph of the authorized signatory

• Partnership deed/LLP agreement/Certificate of Incorporation, if applicable

• Cancelled cheque or bank statement

Step 8: Submit the Application

Step 9: ARN (Application Reference Number) Generation

Step 10: GST Application Processing

Step 11: GST Registration Certificate

Step 12: GST Compliance

5. Principles of BPM

6. Explain HSN code and SAC code.

Ans. HSN code:

HSN (Harmonized System of Nomenclature) Code is a standardized numerical method of classifying goods in international trade. It is
used globally by customs authorities to ensure uniform classification of products and to facilitate international trade. The HSN code
system is maintained by the World Customs Organization (WCO), and the code helps identify products and goods for taxation, import,
and export purposes. In India, the HSN code plays an essential role in the Goods and Services Tax (GST) system, where it is used to
classify goods for tax purposes, determining the appropriate GST rate on goods and services.

The HSN code is a hierarchical system, typically divided into the following segments:

First two digits: Represents the Chapter (major category of goods).

Next two digits: Represents the Heading (subcategories within the chapter).

Next two digits: Represents the Subheading (specific goods within a heading).

Further digits (optional): In some cases, countries may extend the code further to more detailed classifications.

SAC code:

SAC (Services Accounting Code) is a system of classification used to identify services under the Goods and Services Tax (GST) regime
in India. Just like HSN (Harmonized System of Nomenclature) codes are used for goods, SAC codes are used for services to assign
them a unique code for GST-related purposes. This code helps in the classification of services, ensuring that the correct GST rate is
applied to each service.

The SAC code is a hierarchical system that is divided into different categories based on the type of service. It has the following structure:

First two digits: Represent the chapter (major category of services).

Next two digits: Represent the subchapter (subcategory of services).

Last two digits: Represent the heading (specific service within the subcategory).