BASIC ACCOUNTING SOFTWARE

PRACTICAL FILE
Submitted in Partial Fulfillment of the requirement for the
Award of the Degree of
Bachelor Of Commerce (Honours)

Submitted To: Submitted By:

Dr. Soumya Singhal Nehal Garg
(Assistant Professor) BCOM (H) II SHIFT
0042128823

BATCH 2023 -2026

DEPARTMENT OF COMMERCE

Maharaja Surajmal Institute

Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
C-4, Janakpuri, New Delhi-110058
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Maharaja Surajmal Institute

Affiliated to Guru Gobind Singh Indraprastha University, C-4, Janakpuri, New
Delhi-110058 for imparting us very valuable professional training in Bachelor
of Commerce Honours. I pay my gratitude and sincere regards to Dr. Soumya
Singhal for giving me the cream of her knowledge. I am thankful to her as she
has been a constant source of advice, motivation and inspiration. I am also
thankful to her for giving her suggestions and encouragement throughout the
project work.
I take the opportunity to express my gratitude and thanks to our Computer Lab
staff and library staff for providing me the opportunity to utilize their resources
for the completion of the practical file.

Signature of Student
Nehal Garg

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 INDEX

S.NO. TOPICS SIGNATURE

1. Tally Introduction
2. History And Versions of Tally
3. Core Features of Tally
4. Benefits Of Tally
5. Limitations Of Tally
6. Importance Of Tally
7. Accounting
8. Types Of Accounts
9. Accounting Concepts and Conventions
10. First Screen
11. Gateway Of Tally
12. Company Information
13. Create Company
14. Select/Choose Company
15. Alter/Create Company
16. Change In Accounting Period
17. Creation Of Ledger
18. Display Of Ledger
19. Make Accounting Entries
20. GST
21. GST Ledger
22. Contra Entry
23. Payment Voucher
24. Receipt Voucher
25. Purchase Voucher
26. Sale Voucher
27. Journal
28. Debit Note
29. Credit Note
30. Accounts Of Inventory
31. Stock Group Creation
32. Stock Item
33. Unit Of Measure
34. Printing Option
35. Trial Balance
36. Profit & Loss A/C
37. Balance Sheet
38. Short Keys in Tally
39. Experiment 01

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40. Experiment 02
41. Experiment 03
42. Experiment 04
43. Experiment 05

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 INTRODUCTION TO TALLY
Tally is powerful accounting software, which is driven by a technology called concurrent
multi-lingual accelerated technology engine. It is easy to use software and is designed to
simply complex day to day activities associated in an enterprise.
Tally provides comprehensive solution around accounting principles, inventory and data
integrity. Tally also has feature encompassing global business.
Tally software comes with easy-to-use interface thus making it operationally simple.
Tally accounting software provides a solution around inventory management, stock
management, invoicing, purchase order management, discounting, stock valuation
methodology, etc.
Tally accounting software also comes with drill down options, which can track every detail of
transaction.
It helps in maintaining simple classification of accounts, general ledger, accounts receivable
and payable, bank reconciliation, etc.
The technology employed by tally makes data reliable and secure.
Tally software supports all the major types of file transfer protocols. This helps in connecting
files across multiple office locations.
Tally accounting software is capable of undertaking financial analysis and financial
management. It provides information around receivables turnover, cash flow statement,
activity consolidation and even branch accounting.
Tally accounting software is easy to set up and simple to use. A single connection can support
multiple users. It can be easily used in conjunction with the Internet making possible to
publish global financial reports.
Tally accounting software can seamlessly connect with various Microsoft applications.

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 HISTORY AND VERSIONS OF TALLY
Origins (1986-1999)
Founding
Tally Solutions was founded in 1986 by Bharat Goenka, along with his father, G.R. Goenka,
and a team of software engineers. The initial focus was on developing a simple accounting
software solution that could address the complexities of financial management for small and
medium-sized businesses.
Introduction of Tally 4.5
In 1990, Tally launched Tally 4.5, which revolutionized accounting software in India. It was
one of the first applications to offer real-time processing, meaning users could enter
transactions and immediately see the effects on financial reports. This innovation laid the
groundwork for Tally's future success.
Tally 5.4
In 1993, Tally 5.4 was introduced, incorporating features like inventory management and
support for multiple companies and users. This version marked a significant shift towards a
more comprehensive accounting solution, making it appealing to a broader audience.
Growth and Development (2000-2009)
Tally 6.3
In 2001, Tally 6.3 was released, bringing with it the capability to handle value-added tax
(VAT), which was becoming increasingly important in India. This version further established
Tally as a leader in the Indian accounting software market.
Tally 7.2
Launched in 2005, Tally 7.2 introduced a host of features, including enhanced security
options, remote access capabilities, and improved reporting functions. This version was
widely adopted by businesses due to its user-friendly interface and robust functionalities.
Tally 9
In 2009, Tally launched Tally. ERP 9, a significant milestone in the software's evolution. This
version integrated accounting with enterprise resource planning (ERP) functionalities,
allowing businesses to manage accounting, inventory, payroll, and compliance within a single
platform. Tally. ERP 9 also included features for statutory compliance, making it particularly
attractive to businesses facing regulatory challenges.

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Modernization and Innovation (2010-Present)
Tally. ERP 9 Updates
Over the next few years, Tally. ERP 9 saw multiple updates that improved its capabilities.
These included enhanced reporting features, better inventory management, and integration
with banking systems for streamlined payment processing.
GST Compliance
With the introduction of the Goods and Services Tax (GST) in India in 2017, Tally quickly
adapted to the new regulations. The software was updated to include GST compliance
features, allowing businesses to calculate, report, and file taxes seamlessly. This
responsiveness solidified Tally's position as a trusted tool for financial management in the
changing regulatory landscape.
Tally Prime (2020)
In 2020, Tally launched Tally Prime, a complete overhaul of its previous software. Tally
Prime introduced a more modern and intuitive interface, simplifying navigation and usability.
It also enhanced user experience with features like quick search, advanced data analytics, and
improved multi-user collaboration. This version aimed to cater to a broader audience,
including non-accountants, by making financial management more accessible.
Cloud Solutions
In recent years, Tally has embraced cloud technology, allowing users to access their
accounting data remotely. This move has been particularly beneficial for businesses with
remote teams, enabling them to collaborate and manage financial operations from anywhere.

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 CORE FEATURES OF TALLY
Tally is renowned for its robust set of features that cater to the diverse needs of businesses.
Below is a detailed overview of the core features that make Tally a comprehensive
accounting software solution.
1. Comprehensive Accounting Solutions
Real-Time Processing
Tally allows users to perform real-time accounting, enabling instant updates to financial
reports upon data entry. This ensures that users have access to the most current financial
status.
Multi-Currency Support
Tally supports transactions in multiple currencies, making it ideal for businesses engaged in
international trade. Users can manage foreign exchange rates and easily convert currencies.
Flexible Chart of Accounts
Users can customize the chart of accounts to suit their business needs, allowing for better
tracking of income, expenses, assets, and liabilities.
2. Inventory Management
Stock Management
Tally offers tools to maintain detailed records of stock levels, facilitating effective inventory
management. Users can track inventory across multiple locations.
Batch and Expiry Tracking
For businesses dealing with perishable goods, Tally allows users to track products by batch
numbers and manage expiry dates, ensuring compliance and reducing waste.
Inventory Valuation
Tally supports various inventory valuation methods, including FIFO (First In, First Out),
LIFO (Last In, First Out), and average cost, helping businesses assess their inventory costs
accurately.
3. Tax Compliance and Reporting
GST Compliance
Tally is equipped to handle GST calculations and reporting, making it easy for businesses to
file returns. It automates tax computations and generates necessary GST reports.
TDS and TCS Management
Tally simplifies the management of Tax Deducted at Source (TDS) and Tax Collected at
Source (TCS) by automating calculations and generating relevant forms.

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Audit Compliance
The software provides detailed audit trails, ensuring that all financial transactions are
recorded and retrievable for compliance audits.
4. Financial Reporting and Analytics
Customizable Reports
Tally offers a wide range of financial reports, including profit and loss statements, balance
sheets, cash flow statements, and more. Reports can be customized based on user preferences.
Real-Time Insights
Users can generate real-time reports to gain insights into their financial performance, helping
them make informed business decisions quickly.
Trend Analysis
Tally includes analytical tools that allow users to track financial trends over time, enabling
better forecasting and strategic planning.
5. User-Friendly Interface
Intuitive Navigation
Tally’s user interface is designed for ease of use, with a simple menu-driven structure that
allows users to access features quickly, even if they have limited accounting knowledge.
Contextual Help
The software provides contextual help and tutorials, guiding users through various functions,
making it easier for new users to learn and navigate the system.
Keyboard Shortcuts
Tally includes a variety of keyboard shortcuts, enhancing user efficiency by allowing quick
access to frequently used features.
6. Multi-User Functionality
Simultaneous Access
Tally supports multiple users accessing the system simultaneously, facilitating collaboration
among team members and ensuring that everyone has access to the latest data.
User Permissions
Administrators can set user roles and permissions, ensuring that sensitive information is
accessible only to authorized personnel. This enhances data security within the organization.

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7. Data Security and Backup
Data Encryption
Tally employs data encryption techniques to protect sensitive financial information from
unauthorized access, ensuring data integrity and confidentiality.
Regular Backups
The software allows users to perform regular backups, safeguarding data against loss due to
system failures or accidental deletions. Backup files can be stored locally or in the cloud.
User Authentication
Tally includes user authentication measures, requiring users to log in with unique credentials,
further enhancing security.
8. Cloud Integration
Remote Access
Tally offers cloud-based solutions, allowing users to access their financial data from
anywhere, at any time. This is particularly beneficial for businesses with remote teams or
multiple locations.
Mobile Access
With Tally's mobile capabilities, users can manage their accounts and view reports on-the-go,
providing flexibility and convenience.
9. Payroll Management
Employee Management
Tally includes features for managing employee records, including personal information,
salary structures, and attendance tracking.
Payroll Processing
The software automates payroll calculations, including deductions for taxes and other
contributions, generating payslips and related reports seamlessly.
Compliance with Labor Laws
Tally ensures compliance with various labour laws by automating calculations related to
Provident Fund (PF), Employee State Insurance (ESI), and other statutory requirements.

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 BENEFITS OF TALLY
Tally is renowned for its robust set of features that cater to the diverse needs of businesses.
Below is a detailed overview of the core features that make Tally a comprehensive
accounting software solution.
1. Comprehensive Accounting Solutions
Real-Time Processing
Tally allows users to perform real-time accounting, enabling instant updates to financial
reports upon data entry. This ensures that users have access to the most current financial
status.
Multi-Currency Support
Tally supports transactions in multiple currencies, making it ideal for businesses engaged in
international trade. Users can manage foreign exchange rates and easily convert currencies.
Flexible Chart of Accounts
Users can customize the chart of accounts to suit their business needs, allowing for better
tracking of income, expenses, assets, and liabilities.
2. Inventory Management
Stock Management
Tally offers tools to maintain detailed records of stock levels, facilitating effective inventory
management. Users can track inventory across multiple locations.
Batch and Expiry Tracking
For businesses dealing with perishable goods, Tally allows users to track products by batch
numbers and manage expiry dates, ensuring compliance and reducing waste.
Inventory Valuation
Tally supports various inventory valuation methods, including FIFO (First In, First Out),
LIFO (Last In, First Out), and average cost, helping businesses assess their inventory costs
accurately.
3. Tax Compliance and Reporting
GST Compliance
Tally is equipped to handle GST calculations and reporting, making it easy for businesses to
file returns. It automates tax computations and generates necessary GST reports.
TDS and TCS Management

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Tally simplifies the management of Tax Deducted at Source (TDS) and Tax Collected at
Source (TCS) by automating calculations and generating relevant forms.

Audit Compliance
The software provides detailed audit trails, ensuring that all financial transactions are
recorded and retrievable for compliance audits.
4. Financial Reporting and Analytics
Customizable Reports
Tally offers a wide range of financial reports, including profit and loss statements, balance
sheets, cash flow statements, and more. Reports can be customized based on user preferences.
Real-Time Insights
Users can generate real-time reports to gain insights into their financial performance, helping
them make informed business decisions quickly.
Trend Analysis
Tally includes analytical tools that allow users to track financial trends over time, enabling
better forecasting and strategic planning.
5. User-Friendly Interface
Intuitive Navigation
Tally’s user interface is designed for ease of use, with a simple menu-driven structure that
allows users to access features quickly, even if they have limited accounting knowledge.
Contextual Help
The software provides contextual help and tutorials, guiding users through various functions,
making it easier for new users to learn and navigate the system.
Keyboard Shortcuts
Tally includes a variety of keyboard shortcuts, enhancing user efficiency by allowing quick
access to frequently used features.
6. Multi-User Functionality
Simultaneous Access
Tally supports multiple users accessing the system simultaneously, facilitating collaboration
among team members and ensuring that everyone has access to the latest data.
User Permissions
Administrators can set user roles and permissions, ensuring that sensitive information is
accessible only to authorized personnel. This enhances data security within the organization.
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7. Data Security and Backup
Data Encryption
Tally employs data encryption techniques to protect sensitive financial information from
unauthorized access, ensuring data integrity and confidentiality.
Regular Backups
The software allows users to perform regular backups, safeguarding data against loss due to
system failures or accidental deletions. Backup files can be stored locally or in the cloud.
User Authentication
Tally includes user authentication measures, requiring users to log in with unique credentials,
further enhancing security.
8. Cloud Integration
Remote Access
Tally offers cloud-based solutions, allowing users to access their financial data from
anywhere, at any time. This is particularly beneficial for businesses with remote teams or
multiple locations.
Mobile Access
With Tally's mobile capabilities, users can manage their accounts and view reports on-the-go,
providing flexibility and convenience.
9. Payroll Management
Employee Management
Tally includes features for managing employee records, including personal information,
salary structures, and attendance tracking.
Payroll Processing
The software automates payroll calculations, including deductions for taxes and other
contributions, generating payslips and related reports seamlessly.
Compliance with Labor Laws
Tally ensures compliance with various labour laws by automating calculations related to
Provident Fund (PF), Employee State Insurance (ESI), and other statutory requirements.

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 LIMITATIONS OF TALLY
While Tally is a powerful and widely used accounting software, it does have certain
limitations that users should be aware of. Here’s a detailed examination of the potential
drawbacks of using Tally:
1. Complexity for New Users
Steep Learning Curve
For users with limited accounting knowledge, Tally can initially seem complex. While it is
designed to be user-friendly, navigating its extensive features may require training and time
for new users to become proficient.
Terminology and Concepts
The software uses accounting terminology that may be unfamiliar to non-accountants,
making it challenging for some users to understand how to use the software effectively.
2. Limited Integration with Other Software
Third-Party Software Integration
Tally’s integration capabilities with other third-party applications can be limited. Businesses
that use various software solutions for CRM, project management, or other operations may
find it challenging to synchronize data across platforms.
Custom Development Needs
While Tally offers some APIs for integration, customizing solutions or creating seamless
workflows between Tally and other software may require additional development effort and
resources.
3. User Interface Limitations
Outdated Design
Although Tally has made strides to modernize its interface with Tally Prime, some users still
find the overall design to be less intuitive compared to newer software solutions that
prioritize user experience.
Limited Customization Options
While users can customize reports and features to some extent, there are limitations in how
extensively the interface itself can be tailored to fit specific business needs.
4. Data Handling Limitations
Data Volume Constraints

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Tally can experience performance issues when handling large volumes of data, particularly
for businesses with extensive transaction histories. This can lead to slower response times and
reduced efficiency.
File Size Limits
There are limits on the size of data files that Tally can handle, which may be a concern for
larger organizations or those with complex accounting needs.
5. Offline Functionality
Dependence on Local Systems
Tally’s traditional versions are primarily desktop-based, meaning they require installation on
local machines. This can limit accessibility, especially for teams that work remotely or in
multiple locations.
Cloud Limitations
Although Tally has introduced cloud-based solutions, not all features may be fully available
online, leading to potential discrepancies between local and cloud versions.
6. Limited Advanced Features
Lack of Advanced Analytics
While Tally provides basic reporting and analytics, it lacks advanced features commonly
found in modern ERP systems, such as predictive analytics, advanced forecasting, and
business intelligence capabilities.
No Built-In CRM Functionality
Tally focuses primarily on accounting and financial management. It does not include
integrated customer relationship management (CRM) features, which may necessitate the use
of additional software for customer data management.
7. Support and Updates
Variable Customer Support
Users may experience inconsistencies in customer support response times and effectiveness.
While Tally Solutions provides resources, the quality of support can vary based on the
complexity of the issues faced.
Update Frequency
Although Tally does release updates, the frequency and scope of these updates may not
always align with the rapidly changing business environment, potentially leaving users
without timely enhancements.
8. Limited Multilingual Support
Language Options

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While Tally offers support for multiple languages, the localization options may not be as
extensive as some users need, particularly in regions with diverse linguistic requirements.

Cultural Nuances
The software may not always adequately account for cultural nuances in accounting
practices, making it less adaptable for businesses in certain regions.
9. Cost Considerations
Licensing Costs
While Tally is often considered cost-effective, the licensing fees can still be a burden for very
small businesses or startups, particularly if they need multiple licenses for different users.
Additional Costs for Customization
Businesses looking to customize Tally for specific needs may incur additional costs for
consulting and development, which can offset initial savings.

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 IMPORTANCE OF TALLY
Tally is a critical tool in the realm of accounting and financial management, especially for
businesses of various sizes. Its significance extends beyond mere accounting; it plays a
pivotal role in enhancing overall business efficiency and decision-making. Here’s a detailed
exploration of the importance of Tally:
1. Streamlined Accounting Processes
Automated Transactions
Tally automates routine accounting tasks such as invoicing, payments, and receipts,
significantly reducing manual effort. This automation leads to faster processing times and
allows accountants to focus on more strategic activities.
Real-Time Financial Management
With Tally, businesses can monitor their financial status in real-time. This immediacy allows
for better cash flow management and timely decision-making, which is crucial for
maintaining financial health.
2. Enhanced Accuracy
Reduction of Human Errors
By automating calculations and data entry, Tally minimizes the potential for human errors,
which are common in manual accounting processes. This results in more accurate financial
reporting and compliance with regulations.
Audit Trails
Tally maintains comprehensive records of all financial transactions, making it easier to track
discrepancies and conduct audits. This transparency enhances accountability and fosters trust
among stakeholders.
3. Comprehensive Financial Reporting
Diverse Reporting Capabilities
Tally offers a wide range of financial reports, including balance sheets, profit and loss
statements, and cash flow reports. These reports can be customized to meet the specific needs
of a business, providing valuable insights for stakeholders.
Informed Decision-Making
The ability to generate real-time reports equips management with the information needed to
make informed decisions. Businesses can analyse trends, monitor key performance indicators
(KPIs), and respond swiftly to changing conditions.

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4. Tax Compliance and Management
Adherence to Regulatory Requirements
Tally is designed to comply with various tax regulations, including GST in India. This
compliance ensures that businesses avoid penalties and fines, maintaining a good standing
with regulatory authorities.
Simplified Tax Filing
Tally automates tax calculations and generates the necessary reports for tax filing, making the
process straightforward and less time-consuming for businesses.
5. Inventory Management
Efficient Stock Control
For businesses dealing with inventory, Tally offers robust inventory management features.
Users can track stock levels, manage reorder points, and analyse sales trends, which helps
optimize inventory levels and reduce carrying costs.
Integration with Accounting
Tally integrates inventory management with accounting, ensuring that inventory costs are
accurately reflected in financial statements, leading to better financial oversight.
6. User-Friendly Interface
Accessibility
Tally’s intuitive design makes it accessible to users with varying levels of accounting
knowledge. This user-friendliness reduces training time and encourages broader adoption
across the organization.
Contextual Help and Resources
Tally provides contextual help and resources within the software, assisting users in navigating
features effectively and enhancing overall user experience.
7. Scalability
Adaptability to Business Growth
Tally is suitable for businesses of all sizes. As a company grows, Tally can scale to
accommodate increased transaction volumes and complexity without requiring a complete
system overhaul.
Modular Features
Tally’s modular design allows businesses to add or upgrade features as needed, ensuring that
the software continues to meet evolving business requirements.

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8. Cost-Effectiveness
Reduced Operational Costs
By streamlining financial processes and automating routine tasks, Tally can help businesses
save on labour costs and time, leading to increased overall efficiency.
Affordable Licensing Options
Tally offers competitive pricing for its licenses, making it an attractive option for small and
medium-sized enterprises (SMEs) looking for effective accounting solutions without
breaking the bank.
9. Data Security
Robust Security Features
Tally employs advanced security measures, including user authentication and data encryption,
to protect sensitive financial information from unauthorized access.
Regular Backups
The software allows for regular data backups, ensuring that businesses can recover their
financial information in case of system failures or accidental deletions.
10. Strong Support and Community
Training and Educational Resources
Tally Solutions provides extensive training materials and resources to help users maximize
the software's potential. This commitment to user education enhances overall financial
literacy.
Active User Community
Tally has cultivated a vibrant community of users who share insights, tips, and best practices,
further enriching the user experience and providing valuable support.

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 ACCOUNTING
Tally is a powerful accounting software that streamlines financial management for businesses
of all sizes. Its comprehensive features cater to various aspects of accounting, enabling users
to maintain accurate financial records, generate reports, and ensure compliance with tax
regulations. Here’s an in-depth look at accounting in Tally:
1. Basic Accounting Features
General Ledger Management
Tally allows users to create and maintain a comprehensive chart of accounts, including
ledgers for assets, liabilities, income, and expenses. Users can easily record transactions
against these ledgers, facilitating accurate financial tracking.
Journal Entries
Tally supports the creation of journal entries for recording transactions that do not involve
cash or bank movements, such as adjustments or reallocations. This feature helps maintain
accurate books.
Trial Balance
Tally can generate a trial balance, which summarizes all ledger balances to ensure that debits
and credits are equal. This is crucial for verifying the accuracy of financial records before
preparing financial statements.
2. Transaction Recording
Voucher Types
Tally supports various types of vouchers for recording transactions, including:
 Payment Vouchers: For cash and bank payments.
 Receipt Vouchers: For cash and bank receipts.
 Journal Vouchers: For adjustments and internal transfers.
 Sales Vouchers: For sales transactions.
 Purchase Vouchers: For purchase transactions.
Real-Time Data Entry
Transactions entered in Tally update accounts and ledgers in real-time, allowing users to see
the immediate impact of transactions on their financials.
3. Financial Reporting
Profit and Loss Account
Tally generates profit and loss statements, providing insights into a company’s revenues,
expenses, and overall profitability over a specified period.

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Balance Sheet
The balance sheet is automatically generated in Tally, showcasing a company's financial
position by listing assets, liabilities, and equity at a specific point in time.
Cash Flow Statement
Tally allows users to generate cash flow statements, which track the flow of cash in and out
of the business, providing insights into liquidity and financial health.
Customizable Reports
Users can customize reports to suit specific needs, allowing for detailed analysis of financial
performance. Filters and parameters can be set to focus on particular periods, accounts, or
transaction types.
4. Inventory Management
Stock Management
Tally integrates accounting with inventory management, enabling users to track stock levels,
manage multiple warehouses, and evaluate stock valuation methods.
Inventory Valuation
Users can choose from various inventory valuation methods, including FIFO, LIFO, and
weighted average, which impact the financial statements and tax calculations.
Order Management
Tally facilitates order processing, enabling users to create sales and purchase orders, which
help manage inventory levels and streamline procurement.
5. Tax Management
GST Compliance
Tally is equipped to handle Goods and Services Tax (GST) in India. It automates GST
calculations, generates necessary reports, and assists in filing returns, ensuring compliance
with regulatory requirements.
TDS Management
Tally simplifies the management of Tax Deducted at Source (TDS) by automating
calculations, generating TDS returns, and maintaining necessary records for compliance.
Tax Reports
Users can easily generate tax-related reports, including GST summaries and TDS
calculations, simplifying the filing process and ensuring accuracy.

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6. Payroll Management
Employee Records
Tally allows businesses to maintain detailed employee records, including personal
information, salary structures, and attendance data.
Payroll Processing
The software automates payroll calculations, including deductions for taxes, provident fund
contributions, and other benefits. It generates payslips and statutory reports, facilitating
compliance with labour laws.
Statutory Compliance
Tally ensures that payroll calculations comply with relevant labour laws, helping businesses
avoid penalties related to non-compliance.
7. Multi-User Functionality
Collaborative Accounting
Tally supports multi-user access, allowing multiple employees to work on the same data
simultaneously. This feature enhances collaboration and ensures that all team members are
working with the most up-to-date information.
User Roles and Permissions
Administrators can assign specific roles and permissions to users, ensuring that sensitive
financial information is accessible only to authorized personnel.
8. Data Security and Backup
Data Protection
Tally incorporates security measures such as user authentication and data encryption to
protect sensitive financial information from unauthorized access.
Regular Backups
Users can perform regular backups to safeguard financial data against loss due to system
failures or accidental deletions. This ensures business continuity and data integrity.

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 TYPES OF ACCOUNT& RULES OF POSTING IN ACCOUNTS:
Account is nothing but an outline of the transactions undertaken by the business in respect of
persons, their representatives and things.
Types of Accounts
Accounts are classified into following categories:
1) Personal Account
 Natural Personal Account
 Artificial Personal Account
 Representative Personal Account

2) Real Account
 Tangible Real Account
 Intangible Real Account

3) Nominal Account

1. Personal Account
As the name suggests, Personal Accounts are the ones that are related with individuals,
companies, firms, group of associations etc. These persons could include natural persons,
artificial persons or representative persons.
Type of Personal Accounts
a. Natural Persons
These accounts relate to natural persons such as Veer’s A/c, Ayan’s A/c, Karen’s A/c etc.
b. Artificial Accounts
These accounts relate to companies and institutions such as Kapoor Pvt Ltd A/c, Booker’s
Club A/c etc. Thus, companies and institutions are the entities that exist in the eyes of law.
c. Representative Accounts
Accounts that are a representative of some person are called as representative accounts. These
include Outstanding Interest A/c, Outstanding Wages A/c, and Prepaid Expense A/c etc.
Golden Rule related to the Personal Account
Debit the Receiver, Credit the Giver

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2. Real Account
Real Accounts are the ones that are related with properties, assets or possessions. These
properties can be both physically existing as well as non-physical in nature. Thus, Real
Accounts can be of two types: Tangible Real Accounts and Intangible Real accounts.
a. Tangible Real Accounts
Tangible Real Accounts are accounts which have physical existence. In other words, such
assets can be seen, felt or touched. For example, Machinery A/c, Vehicle A/c, Building A/c
etc.
a. Intangible Real Accounts
These are the assets or possessions that do not have physical existence but can be measured in
terms of money. This means that such assets have some value attached to them.
For example, trademarks, patents, goodwill, copyrights etc.
Golden Rule Related to The Real Account
Debit What Comes In, Credit What Goes Out
3. Nominal Account
Nominal Accounts relate to income, expenses, losses or gains. These include Wages A/c,
Salary A/c, and Rent A/c etc.
Golden Rule Related to The Nominal Account
Debit All Expenses and Losses, Credit All Incomes and Gains

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 ACCOUNTING CONCEPTS AND CONVENTIONS
The fundamental principles and guidelines that govern the preparation and presentation of
financial statements. Understanding these concepts is essential for ensuring consistency,
reliability, and transparency in financial reporting. Here’s a detailed overview of key
accounting concepts and conventions:
Accounting Concepts
1. Accrual Concept
 Definition: Revenues and expenses are recognized when they are earned or incurred,
regardless of when cash is exchanged.
 Importance: This concept ensures that financial statements reflect the true financial
position of a business over a given period.
2. Consistency Concept
 Definition: Once an accounting method is adopted, it should be applied consistently
over time.
 Importance: Consistency allows for comparability of financial statements across
different periods, making it easier for users to analyse trends.
3. Going Concern Concept
 Definition: Assumes that a business will continue its operations in the foreseeable
future, without the intention or necessity of liquidation.
 Importance: This concept underpins the valuation of assets and liabilities, as it allows
for the deferral of certain expenses and revenues.
4. Economic Entity Concept
 Definition: The financial activities of a business should be kept separate from those of
its owners or other businesses.
 Importance: This separation provides clarity in financial reporting and helps assess the
financial performance and position of the business.
5. Matching Concept
 Definition: Expenses should be matched with the revenues they help to generate in the
same accounting period.
 Importance: This concept ensures that the income statement accurately reflects the
profitability of the business for a specific period.

24
6. Realization Concept
 Definition: Revenue is recognized only when it is earned, typically when goods are
delivered or services are rendered.
 Importance: This concept prevents the recognition of revenue before it is actually
realized, ensuring that financial statements are not misleading.
7. Materiality Concept
 Definition: Financial statements should disclose all items that are significant enough
to affect users’ decisions.
 Importance: This allows businesses to omit trivial details, focusing instead on relevant
information that impacts financial analysis.
8. Monetary Unit Concept
 Definition: All financial transactions are recorded in a stable currency, ignoring the
effects of inflation or deflation.
 Importance: This concept provides a common basis for reporting and comparing
financial information.
Accounting Conventions
1. Conservatism Convention
 Definition: When choosing between several solutions, the one that results in lower
profits and asset values should be selected.
 Importance: This approach prevents the overstatement of financial performance and
assets, promoting a cautious view.
2. Full Disclosure Convention
 Definition: All relevant financial information should be disclosed in the financial
statements to provide a complete view of the business.
 Importance: This ensures transparency and allows stakeholders to make informed
decisions based on comprehensive information.
3. Cost Convention
 Definition: Assets are recorded at their historical cost rather than their current market
value.
 Importance: This convention provides reliability and objectivity in asset valuation, as
historical costs are verifiable.

25
4. Consistency Convention
 Definition: Similar accounting policies and practices should be used consistently
across periods.
 Importance: Consistent application enhances comparability and reliability in financial
statements.
5. Substance Over Form Convention
 Definition: Transactions should be recorded based on their economic reality rather
than their legal form.
 Importance: This ensures that the financial statements reflect the true nature of
transactions, providing a more accurate view of the business’s financial health.

26
 FIRST SCREEN
The first screen of Tally Prime typically features a clean and user-friendly interface. You’ll
see the Tally logo at the top, along with options to create or select a company. The layout is
designed for easy navigation, displaying menus for various functionalities like accounting,
inventory, and reporting. There are usually shortcuts for common tasks, and the overall
design aims to streamline the user experience, making it accessible even for those new to the
software.

27
 GATEWAY OF TALLY

The Gateway Screen in Tally is the main interface that users interact with when they open the
software. It serves as a dashboard for accessing various functionalities. Here are some key
components of the Gateway Screen:

1. Company Selection: You can choose which company’s data you want to work on.
2. Menu Options: It provides access to different modules like Accounts, Inventory,
Payroll, and more.
3. Shortcuts: There are shortcut keys for frequently used features, making navigation
quicker.
4. Reports: You can quickly view key financial reports like the Balance Sheet, Profit &
Loss Account, etc.
5. Utility Functions: Features for data backup, restore, and other utilities can be accessed
here.

Overall, the Gateway Screen is designed to give users easy access to all the functions and
reports needed for effective financial management.

28
 COMPANY INFORMATION

When creating a new company in Tally, you’ll need to fill in several fields to set up your
company profile correctly. Here are the key pieces of information you typically need to
provide:

1. Company Name: The official name of your business.

2. Address: The complete address, including city, state, and pin code.
3. Country: The country where your business is registered.
4. State: The state in which the business operates.
5. Financial Year: The financial year start date (e.g., April 1st) and end date (e.g., March
31st).
6. Books Beginning From: The date from which you want to start maintaining accounts.
7. Currency: The currency in which you will be operating (usually the local currency).
8. Contact Information: Phone number and email address for your business.
9. Tax Registration Details: Information like GSTIN if applicable.
10. License Details: Any relevant licenses or registrations your company has.

After filling out these fields, you can proceed with further configurations based on your
accounting needs.

29
 CREATE COMPANY
Steps to create a company
1. Press F3 key.
2. Go to create company option.
3. Please enter the required details like a name, telephone number, address and e-mail
ID.
4. After entering all the required data click on the yes option to save the details.
5. Your company will be created.
6. After creating the company enable the features that your business needs like for
maintaining accounts press Y for yes and press N for no for the features you do not won’t to
enable.

30
SELECT/CHOOSE COMPANY

31
 ALTER/CREATE COMPANY
1. Press F3 key to alter the details.
2. Click on alter company option.
3. Select the company whose detail you want to edit.
4. Alter the details like name, phone number, e-mail ID etc.
5. Click on yes to save the details.
6. Change of company name and phone number.

32
 CHANGE IN ACCOUNTING PERIOD
In Tally Prime, changing the accounting period allows businesses to manage and record
transactions according to a specific financial year or period. This is important when a
business needs to align its records with a different fiscal year or if there is a change in its
accounting cycle.
Steps to Change the Accounting Period in Tally Prime:
1. Open Tally Prime and go to the Gateway of Tally screen.
2. Press F11 (Features) to open the "Company Features" menu.
3. Select Accounting Features.
4. In the "Accounting Features" menu, navigate to the option:
o Use different periods for accounting (This option allows you to set a custom
accounting period).
5. Now, enable this option by selecting Yes.
6. Under Set/Alter Period, you can set the From and to dates to specify the new
accounting period.
o From: Enter the start date of the new accounting period.

o To: Enter the end date of the new accounting period.

7. After setting the dates, press Enter to save your changes.

8. Once done, Tally Prime will automatically adjust the accounting period, and all future
transactions will be recorded under the newly defined period.

33
 CREATION OF LEDGER
Create all ledger accounts by using the following trial balance. Write steps to create single
and multi-ledger

Name Under Debit Credit

Capital Capital account 2,56,790

Loan at 8% per Loan liability 25,000

annum

Sales Sales 7,00,000

Interest Indirect income 30,000

Sundry creditors Sundry creditors 45,000

Commission Indirect income 1,250

received

Return outward Purchase 37,860

(purchase returns)

Investment Investment 2,00,000

Furniture Fixed assets 1,90,000

Commission Indirect expense 8,400

Carraige inwards Direct expense 6,745

Bank balance Bank 90,750

Cash Cash 56,000

Interest on loans Indirect expense 9,670

Travelling expense, Indirect expense 68,300

printing, postage etc

Stock on1.1.2009 Stock in hand 2,70,000

Purchase Purchase 4,96,800

Return inwards / Sales 20,000

sales returns

Salary Indirect expense 41,480

Sundry debtors Sundry debtors 62,000

Land & building Fixed assets 9,50,000

34
 Bills receivable Current assets 25,000

Drawings Capital 50,000

Total 15,50,556 15.50.556

1: single ledger creation

Steps to create single Ledger

1. Open tally prime.
2. Go to the console window.
3. Press “C” to select the create option.
4. Click on the ledger option.
5. To create ledgers one by one by entering the details like amount, ledger group, ledger
name etc.
6. Click on yes to save the ledger details and your ledger will be created.

35
 1. Multi ledger creation
Steps for creating a multi-Ledger.
1. Firstly create a company by pressing the “Alt+k” key and then go to the create company
option and create a required company.
2. On the left-hand side there is a multi-master’s option for selecting that click press
“Alt+k” key and
3. Then select the multi create option.
4. Create all the multi ledgers that and by entering the leger name, group and amount.
After creating the ledger go back to the gateway of tally, then press D key to select the option
of displaying more reports, after that click on trial balance and your trial balance will be
displayed

36
37
 DISPLAY OF LEDGER
1) Go to gateway of tally
2) Press D for display more reports
3) Press A for account books
4) Press L for ledger
5) All the ledgers created will be shown

38
 MAKE ACCOUNTING ENTRIES
QUESTION
On 1st Nov ’21, Mehta Traders purchased Furniture @ 75000/- from Sharma Enterprises on
credit (30 days).

Date Particulars Amount Amount

(Dr.) (Cr.)
1-Nov-21 Dr. Furniture A/c 75,000
Cr. Sharma Enterprises A/c 75,000
[Being Furniture @ 75000/- purchased from Sharma
Enterprises on credit]

Step 1 Gateway of Tally > Transactions (Vouchers) > F7: Journal

Step 2 You may configure – Use Cr/Dr instead of to/By during voucher entry by pressing Press
F12: Configure as per your preference
Step 3 Select the transaction date as 1-Nov-21 by pressing F2: Date
Step 4 Dr. Furniture A/c (Fixed Assets) and specify the value against it as 75,000, then Cr. Sharma
Enterprises (Sundry Creditors)

Note: In the ledger field, you can press alt and c keys to create ledgers on the fly and
grouping it under Fixed Assets and Sundry Creditors respectively.

Step 5 Specify the narration for future reference purpose

Step 6 Press ‘Enter’ key to accept the transaction

39
40
 GST
The full form of GST is Goods and Services Tax. It was first introduced in the Budget Speech
presented on 28th February 2006. It laid the foundation for a complete reform of India’s
indirect tax system. Finally implemented on 1st July 2017 as the Goods and Services Tax Act,
the indirect taxation system thus went through a chain of amendments since its inception.

With this tax reform, GST replaced multiple indirect taxes that were levied on different goods
and services. The Central Board of Indirect Taxes and Customs (CBIC) is the regulatory body
governing all changes and amendments regarding this tax.

It is a destination-based, multi-stage, comprehensive tax levied at each stage of value

addition. Having replaced multiple indirect taxes in the country, it has successfully helped the
Indian Government achieve its ‘One Nation One Tax’ agenda.

The tax is levied on goods and services sold within India’s domestic boundary for
consumption. Implemented by a majority of nations worldwide with respective
customisations, the tax has been successful in simplifying the indirect taxation structure of
India.

GST is levied on the final market price of goods and services manufactured internally,
thereby reflecting the maximum retail price. Customers are required to pay this tax on a
purchase of goods or services as an inclusion in their final price. Collected by the seller, it is
then required to be paid to the government, thus implying the indirect incidence.

The GST rates on different goods and services are uniformly applied across the country.
Goods and services have, however, been categorised under different slab rates for tax
payment. While luxury and comfort goods are categorised under higher slabs, necessities
have been included in lower and nil slab rates. The main aim of this classification is to ensure
the uniform distribution of wealth among residents of India.

41
 GST LEDGER

1. Press Alt+G (Go To) > Create/Alter > Ledger.

2. Press Alt+L (Fetch Details Using GSTIN/UIN).

3. Enter the GSTIN/UIN of the party.

The Compare Party Details screen appears, where you can view the party details,
such as address, PAN, and registration type & status, as available in real-time on the
portal.

42
 You can make any changes in the above details, if needed. For example, if
the GST registration of the party was cancelled, then you can set
the Registration Type as Unregistered/Consumer.

4. Press Alt+S (Filing History), if you want to view additional details about the
party.
5. Press Ctrl+A to save the details.
In the Ledger Creation/Alteration screen, you can see the fetched details
are filled in the respective fields.
You only have to select the relevant group (such as SundryCreditors/Debtors)
and enter the phone number.

6. Press Ctrl+A to save the party ledger.

43
 CONTRA ENTRY

1. Press Alt+G (Go To) > Create Voucher > press F4 (Contra).
Alternatively, Gateway of Tally > Vouchers > press F4 (Contra).
2. If you want to change the voucher date, press F2 (Date).
When you press F2 to change the date, the date shown is for the subsequent
day of the current date. This done to avoid manual entry of date for the next
day as the immediately next day is the most common business day. You can
however enter any date, even a date before the current date.
As in any other vouchers, you can create the number series for the contra
vouchers, as you need for your reference.
3. Press Ctrl+H (Change Mode) to select the Double-Entry mode.
4. Debit the destination account and credit the source account. For example, if
you are withdrawing cash from your bank’s ATM, the cash ledger should be
debited and bank ledger should be credited.
a. Under Particulars in the Cr field, select the source ledger account that you
want to Credit.
b. In the Dr field, select the destination ledger account that you want to Debit.
As in other transactions, you can create the ledger on the fly by
pressing Alt+C. A sample image is shown below:

5. Provide Narration, if any, and accept the voucher. As always, you can
use Ctrl+A to accept.

44
 PAYMENT VOUCHER

1. Open the Payment Voucher in double entry mode.

a. Press Alt+G (Go To) > Create Voucher > press F5 (Payment).
Alternatively, Gateway of Tally > Vouchers > press F5 (Payment).
b. Press Ctrl+H (Change Mode) > select Double Entry.
2. Select the Bank/Cash accounts and Party or Expenses accounts.
a. Debit the Expense ledgers and enter the corresponding amounts.
b. Credit the cash ledger, and enter the corresponding amounts.

3. Accept the screen. As always, you can press Ctrl+A to save the payment
voucher.

45
 RECEIPT VOUCHER

1. Open the Receipt Voucher and select the double entry mode.
a. Press Alt+G (Go To) > Create Voucher > press F6 (Receipt).
Alternatively, go to Gateway of Tally > Vouchers > press F6 (Receipt).
b. Press Ctrl+H (Change Mode) > select Double Entry.
2. Select the Bank/Cash account and Income account.
a. Credit the Income or Party ledgers and enter the corresponding amounts.
b. Debit the Cash or Bank ledgers, and enter the corresponding amounts.

3. Accept the screen. As always, you can press Ctrl+A to save the receipt
voucher.

46
 PURCHASE VOUCHER

1. Open the Purchase voucher.

1. Press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).
2. Press Ctrl+H (Change Mode) to select the required voucher mode
(Item Invoice, in this case).
2. Specify the supplier details.
1. Supplier Invoice No. and Date: The invoice number and date should
be the same as given in the corresponding sales bill.
2. Party A/c name: Select Cash or Bank for cash purchases. For credit
purchases, select the supplier ledger. As in other transactions, you can
create the item or ledger on the fly by pressing Alt+C.
3. Receipt Details: Enter receipt details like receipt doc no., bill of
landing, destination, and so on, if needed.
4. Party Details: Enter the supplier’s name and address, if needed.
If you do not see the Party Details screen, press F12 (Configure), and
set Provide Receipt, Order, and Import details to Yes.

i. You may want to maintain specific details about your suppliers,

such as address with landmark, alternative contact number, and
so on, in the invoices. In such cases, you can create party
ledgers with the required details. In the Suppliers field of Party
Details screen, select the required ledger.
3. Purchase ledger: Select the common purchase ledger created
under Purchase Accounts.
If you do not see this field on the screen, press F12 (Configure) and
set Select common Ledger Account for Item Allocation to Yes.
In Accounting Invoice, you can select the purchase ledger
under Particulars.
4. Provide the stock item or service details.
As in other transactions, you can create the item or ledger on the fly by
pressing Alt+C.
In Item Invoice, select the stock item and 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.
In Accounting Invoice, select the service ledger and enter the Amount.
5. Select additional ledgers, like transportation charges, insurance, or discount,
if any.

47
6. Provide Narration, if needed, and accept the screen. As always, you can
press Ctrl+A to save.

7.

8. Print the invoice.

1. Press Alt+P (Print) > press Enter on Current.
2. Press I (Preview) to check the invoice before printing, if needed.
i. Press F12 (Configure) to view the Print Configuration screen
and configure the invoice, if needed.
3. Press P (Print) to print.

48
 SALES VOUCHER

1. Open the sales voucher in double entry mode.

a. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
b. Press Ctrl+H (Change mode) > select As Voucher.
c. In the As Voucher mode, you get By and To instead of Dr and Cr.
If you wish to use Dr and Cr, press F12 (Configure) > set Use Cr/Dr instead
of To/By during voucher entry to Yes.
Henceforth, whenever you open a sales voucher in the As Voucher mode,
you get the Cr and Dr fields instead of By and To until you change this
setting in F12 (Configure).
2. Specify the buyer details.
a. Mention the party name in the Dr field.
b. Dispatch Details: Enter the Dispatch Details, as needed and press Enter.
You can choose to enable the options for Order Details by
pressing F12 (Configure).
The Party Details screen appears.
c. Party Details: You can update the buyer details while recording the
transaction and print the same in the invoice.

Your regular customer may need specific details, such as the address with the
landmark, alternative contact number, and so on, to appear in the printed invoice. In
such cases, create the party account with the required details and select the same
party account in the Buyers field.

d. As always, press Ctrl+A to save and proceed.

3. Select the Sales ledger for the sale of goods or the service ledger for the sale
of services in the Cr field.
4. Provide the stock item details in the Inventory Allocation screen.

a. Name of Item: Select the stock item.

b. Specify Quantity and Rate.
In case you do not see the required item in the list, you can create the stock
item on the fly by pressing Alt+C.

49
5. Provide Narration, if needed, and press Ctrl+A to save the sales voucher.
6. Print the invoice.
a. In the sales voucher, press Ctrl+P.
Alternatively, press Alt+P (Print) > Current.
If you have enabled the option Print voucher after saving, once you
record the transaction, it directly takes you to the voucher printing
screen where you get the option to Configure. Preview or print the
voucher

b. Press C (Configure) to configure the print options for your invoice, if

needed.
c. Press I (Preview) to check the invoice before printing, if needed.
d. Press P (Print) to print.

50
 JOURNAL
Step 1 Gateway of Tally > Transactions (Vouchers) > F7: Journal
Step 2 You may configure – Use Cr/Dr instead of to/By during voucher entry by pressing Press
F12: Configure as per your preference
Step 3 Select the transaction date as 1-Nov-21 by pressing F2: Date
Step 4 Dr. Furniture A/c (Fixed Assets) and specify the value against it as 75,000, then Cr. Sharma
Enterprises (Sundry Creditors)

Note: In the ledger field, you can press alt and c keys to create ledgers on the fly and
grouping it under Fixed Assets and Sundry Creditors respectively.

Step 5 Specify the narration for future reference purpose

Step 6 Press ‘Enter’ key to accept the transaction

51
 DEBIT NOTE
You can record a debit note to decrease the purchase value of goods.

1. Press Altig (Go To) > Create Voucher > press F10 (Other Vouchers) > type
or select Debit Note > and press Enter.
Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) >
type or select Debit Note > and press Enter.
2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item
Invoice, in this case).
3. Select the Party A/c name and provide the buyer details. You can also enter
the Original Invoice No. and Date, against which this transaction is being
recorded.
4. In the Ledger account field, press Enter on Show More > select the
purchase ledger to allocate the stock items.
5. Provide the stock item details, and select the tax ledgers.
6. In the Bill-wise Details screen:
a. Select Agst Ref as the Type of Ref and select the purchase invoice for which
the value is being decreased.
b. Enter the amount to the extent to which purchase value is decreased,
including tax under Amount and Cr under Dr/Cr.

7. Press Enter to return to voucher screen.

8. Accept the screen. As always, you can press Ctrl+A to save.

52
 CREDIT NOTE

1. Open the Credit Note in Item Invoice mode.

a. Press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type
or select Credit Note > and press Enter.
Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) >
type or select Credit Note > and press Enter.
b. Press Ctrl+H (Change Mode) > select Item Invoice.
If you have created multiple registrations in Tally Prime Release 3.0 or
later, then to change the registration, press F3 (Company/Tax
Registration) > type or select the Registration under which you want to
create the voucher and press Enter.

2. Specify the buyer details.

a. Party A/c name: Select the initial recipient of the goods and press Enter.
The Receipt Details screen appears.
b. Receipt Details: Enter the Receipt Details, as needed.
Under Original Invoice Details, update the Original Invoice
No. and Date of the original sales transaction against which you are
recording a sales return and press Enter.
The Party Details screen appears.

c. Party Details: update the original buyer details.

3. Select the Sales ledger to allocate the stock items.
4. Enter the stock item details.

a. Name of Item – Select the stock item that you have received as a sales
return.
b. Specify Quantity and Rate.

53
5. Press Ctrl+A to save the Credit Note.
6. Print the Credit Note.

a. In the Credit Note voucher, press Ctrl+P.

Alternatively, press Alt+P (Print) > Current.
b. Press C (Configure) to configure the print options for your invoice, if
needed.
While printing the Credit Note, the title appears based on the Taxability of
the stock items or ledgers:
 Tax Invoice for taxable transactions and exports.
 Bill of Supply for exempt or nil-rated transactions.
c. Press I (Preview) to check the invoice before printing, if needed.
d. Press P (Print) to print.

54
 ACCOUNTS OF INVENTORY
Inventory accounting is the practice of valuing and reporting on the physical
inventory a business holds. It encompasses the day-to-day management of the
Accounts Payable, Accounts Receivable and Cost of Goods accounts – and also the
periodic reporting that’s essential for insurance, taxes and duties, and valuing a firm
for purchase or sale.
Products and components often account for the greatest capital outlay in a business.
Because of this, inventory accounting plays a critical role in maintaining the
profitability and liquidity of any product-based business.

55
 STOCK GROUP CREATION

1. Gateway of Tally > Create > type or select Stock Group.

Alternatively, press Alt+G (Go To) > Create Master > type or select Stock
Group.
2. Enter the Name of the stock group.
3. Select the required group from the List of Groups.
4. Enable the option Should quantities of items be added, if required.
5. Enable the option Set/Alter excise details and provide the required details.
The completed Stock Group Creation screen appears as shown below:

6. Press Enter to save.

56
 STOCK ITEM CREATION

1. Gateway of Tally > Create > type or select Stock Item.

Alternatively, press Alt+G (Go To) > Create Master > type or select Stock
Item.
2. Enter the Name of the stock item.
3. Select the required stock group in the field Under.
4. Select the required units of measure in the field Units.

5. Press Enter to save.

57
 UNIT OF MEASURE
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in
turn
is measured by units. You can measure the Stock Item by Units, like money is
measured
in Currency.
For example, Liters, Meters, Kilograms, Pieces, Box, Dozen, etc.
Units can be classified under thethe following types :

58
A. Single / Simple Units : When only one Unit is used for receipt and issue of stock
items. Above-mentioned are all example of Single Units.
STEP : Gateway of Tally> Create > type or select Unit and press Enter.
Alternatively, press Alt+G (Go To) > Create Master >> type or select Unit > and
press Enter.

59
B. Compound Units: When two different types of Units can be used for receipt and
issue of the Stock item is called compound unit.
STEP : Gateway of Tally> Create > type or select Unit and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > type or select Unit > and
press Enter.
The Unit Creation screen is displayed as shown. Now Click on Type field or Press
SHIFT+ TAB or Press Backspace Key.

60
 PRINTING OPTION
When you make a sale or a purchase, you may need to have a printed copy of the
invoice, based on the business type or the party’s requirement, Tally Prime supports
printing invoices in pre-printed formats by default. You can configure the options to
print such invoices in commercial format, and customise it as needed.
To print a sales invoice in commercial format:

 Press Ctrl+P (Print) > C (Configure) > set Use Commercial Invoice
format to Yes.

Set print configurations across applications

Press Alt+P (Print) > Configuration > set all the required configuration as needed.
Example:

 To preview every time you print an invoice or report, Set Preview as

default: Yes.
 Similarly, to specify the no. of invoice copies for different invoice types
 Select Set no. of copies for printing vouchers and press Enter.
 Enter the numbers for each invoice type as needed.

You can set other common configurations as in the sample image:

61
Note that you can still override the configuration set here by setting up the print
configuration for any invoice or report, as per the needs.

Set preview as default | Preview before printing

When you need to print an invoice, you might want to verify if all the required
information is available for printing. At times, you may unknowingly print pages
from a report or invoice that need not be printed. To support such requirements,
Tally Prime provides an option to set previewing of invoices and reports by default.

1. Set the option Set Preview as default to Yes.

Next time you open the print screen, the Preview button is selected by
default, you can still print by pressing P (Print).
2. Press Enter to open the print preview of the screen.

62
3. Once you have previewed, press Esc > P (Print) to print the document.
However, if you have Set Preview as default to No, the Print button is
selected by default. You can still preview by pressing I (Preview).

63
 TRIAL BALANCE

Press Alt+G (Go To)> type or select Trial Balance> press Enter.
Alternatively, Gateway of Tally > Display More Reports > Trial Balance.

64
 PROFIT AND LOSS A/C

1. Gateway of Tally > Profit & Loss A/c.

2. Press Alt+F1 (Detailed) for a detailed format of the report.

The Profit & Loss A/c is generated from the date of opening of the books till the
date of last entry.

3. Press F2 (Period) to change the period as required.

65
 BALANCE SHEET
Press Alt+G (Go To) > type or select Balance Sheet > press Enter.
Alternatively, go to Gateway of Tally > Balance Sheet.
You can see the Liabilities for your company on the left and the Assets on the
right.

66
 EXPERIMENT 1
Jounalise the following transactions in the books of Bharat Tulsain.

S.NO. TRANSACTIONS
1. Received Rs.9,000 from Hari Krishan in full settlement of his account for
Rs. 10,000.
2. Received Rs. 9,000 from Shyam on his account for Rs.10,000.
3. Received a first and final dividend of 90 paise in the rupee from the official
receiver of Mr Rajan who owed us Rs.10,000.
4. Paid Rs. 9,000 to Mohan in full settlement of his account for Rs. 10,000.
5. Paid Rs. 9,000 to Sohan on his account for Rs.10,000.
6. Withdrawn for personal use: goods (sale price Rs.8,000, cost Rs.6,000),
cash Rs.1,000
7. Goods costing Rs.9,000 given as charity. (sale price Rs.12,000)
8. Goods costing Rs. 3,000 distributed as free samples. (Sale price Rs. 4,000)
9. Goods stolen in transit: (sale price Rs. 8,000, cost Rs. 6,000)
10. Goods destroyed by fire (sale price Rs. 4,000, cost Rs. 3,000)

67
 EXPERIMENT 2
Journalise the following transactions in the books.

S.NO. TRANSACTIONS
1. Goods stolen by an employee (Sale Price Rs. 8,000, Cost Rs. 6,000), Cash
embezzled by an employee Rs. 1,000.
Paid Rent of building Rs 7 50,000 half of the building is used by the
proprietor for residential use.
2. Paid Fire Insurance of the above building in advance Rs 20,000.
3. Paid Life Insurance Premium Rs 20,000.
4. Paid Income tax Rs 50,000.
5. Salary due to clerk Rs 30,000.
6. Received commission Rs 1,00,000 half of which is in advance
7. Brokerage due to us Rs 50,000
8. Purchased Second hand Machinery from Jawahar for
Rs 30,000 against a cheque
9. Goods used in repairs of Machinery. (Sale Price Rs 12,000, Cost Rs 9,000)
10. Paid Installation Charges of Machinery Rs 1,000.
11. Provide Depreciation for one month on above Machinery

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 EXPERIMENT 3
Journalise the following transactions in the books.

S.NO TRANSACTIONS
.
1. Started Business with cash Rs. 500000
2. Open bank account in PNB Bank with cash Rs. 25000
3. Purchased goods for cash of Rs. 50000
4. Purchased Machinery for Cash Rs 100000
5. Purchase goods on credit from Mr. Pawan Kumar Rs 60000
6. Paid discount Rs 2000
7. Sold goods on credit to Mr. Sameer Alam Rs 72000
8. Purchase goods on credit from Super Pvt. Ltd. Rs 16000
9. Received cash from Mr. Sameer Alam Rs 72000
10. Paid cash to Mr. Pawan Kumar Rs 60000

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 EXPERIMENT 4
Journalise the following transactions in the books.

S.NO. TRANSACTIONS
1. Commission received Rs 5000
2. Electricity bill paid Rs1000
3. Purchased goods on credit from Sona Enterprise Rs 14000
4. Purchased computer for cash Rs 21000
5. Deposited cash into PNB bank Rs 10000
6. Sold goods for cash Rs 80000
7. Paid cash to Sona Enterprise Rs 14000
8. Depreciation on 10% for Machinery Rs 5000
9. Interest paid cash on loan Rs 1000
10. Withdraw cash into PNB bank Rs 25000.

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 EXPERIMENT 5
Journalise the following transactions in the books.

S.NO TRANSACTIONS
.
Robert commenced a transport business with a capital of₹ 1,00,000
An account was opened with State Bank of India and deposited₹ 30,000
Purchased furniture by paying cash₹ 10,000
Goods purchased on credit from Moha Ideen for₹ 20,000
Cash sales made for₹ 8,000
Goods purchased from Rathinam for₹ 5,000 and money deposited
income
Goods sold to Rony on credit for₹ 60,000
Money withdrawn from bank for office use₹ 9,000
Part payment of₹ 10,000 made to Moha Ideen by cheque
Rony made part payment of₹ 5,000 by cash.

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