tally excer

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TALLY EXERCISE – 1.1 1. Classify The following into Income, Expenditure, Assets and Liabilities (Put Tick mark in the appropriate column) Income Expenditu re Asset Liabil ity 1 Cash in Hand 2 Salaries 3 Wages 4 Rent paid 5 Land 6 Buildings 7 Bank Balance 8 Over draft 9 Traveling 10 Dividend received 11 Interest paid 12 Sundry Debtors 13 Sundry Creditors 14 Loans and Advances (dr) 15 Capital 16 Reserves and Surplus 17 Income tax 18 Provisions 19 Bills Receivable 20 Furniture and Fittings 21 Indian Bank Deposits 22 Printing and Stationery 23 Telephones bills 24 Computer 25 Scooter

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Page 1: Tally Excer

TALLY EXERCISE – 1.1

1. Classify The following into Income, Expenditure, Assets and Liabilities (Put Tick mark in the appropriate column)

Income Expenditure Asset Liability

1 Cash in Hand

2 Salaries

3 Wages

4 Rent paid

5 Land

6 Buildings

7 Bank Balance

8 Over draft

9 Traveling

10 Dividend received

11 Interest paid

12 Sundry Debtors

13 Sundry Creditors

14 Loans and Advances (dr)

15 Capital

16 Reserves and Surplus

17 Income tax

18 Provisions

19 Bills Receivable

20 Furniture and Fittings

21 Indian Bank Deposits

22 Printing and Stationery

23 Telephones bills

24 Computer

25 Scooter

Page 2: Tally Excer

2.Classify The following into Income, Expenditure, Assets and Liabilities (Put Tick mark in the appropriate column)

Income Expenditure Asset Liability

1 Cash at Bank

2 Factory Rent

3 Lighting

4 Interest paid

5 Tools

6 Furniture

7 Bank Balance

8 Over draft

9 Bills Payable

10 Dividend earned

11 Interest paid

12 Sundry Debtors

13 Sundry Creditors

14 Loans and Advances (dr)

15 Sheeja Capital

16 Provisions and Reserves

17 Sales tax

18 Land and Buildings

19 Bills Receivable

20 Fittings

21 IOB Deposits

22 Pooja Expenses

23 Telephones bills

24 Computer

25 Van

Page 3: Tally Excer

TALLY EXERCISE 1.2

1.Find the nature of the following entries (Please put tick mark in the appropriate column)

RECEIPT PAYMENT CONTRA

1 Electricity bill paid

2 Wages paid

3 Interest received

4 Discount allowed

5 Purchases

6 Sales

7 Furniture purchased

8 Scooter purchased

9 Computer Purchased

10 Salaries paid

11 Telephone expenses

12 Dividend income

13 Amount deposited into IOB

14 Money transferred from IOB TO Indian

Bank

15 Amount received from Sundry Debtors

16 Amount paid to creditors

17 Money deposited into Canara Bank

18 Money transferred from Canara bank to

Indian Bank

19 Machinery purchased

20 Loan amount received from Raman

Page 4: Tally Excer

2.Find the nature of the following entries (Please put tick mark in the appropriate column)

RECEIPT PAYMENT CONTRA

1 Travelling expenses paid

2 Payments made to creditors

3 Discount earned

4 Discount allowed

5 Sales

6 Purchases

7 Tools purchased

8 Scooter purchased

9 Computer Purchased

10 Wages paid

11 Telephone expenses

12 Dividend income

13 Amount deposited into SBI

14 Money transferred from IOB TO SBI

15 Amount received from Sundry Debtors

16 Amount paid to Raja

17 Money deposited into Vijaya Bank

18 Money transferred from Vijaya bank to

Indian Bank

19 Buildings purchased

20 Loan amount received from Rahul

Page 5: Tally Excer

TALLY Exercise 1.3

1. Prepare Trial balance of MM Associates :

Balances Amount (Rs.)Capital 50000Cash 15760Bank 12800Purchases 27100Sales 27000Furniture 15000IOpening stock 1800Brokerage 40Typewriter 2100Rent paid 1000Salary Account 1500Return inwards 100Return outwards 1100Debtors 4400Travelling 100Sundry Creditors 4200Discount allowed 100Telephone 500

2. Prepare Trial Balance for the following balances taken from the books of MM Traders:

Balances Amount (Rs.)Capital 40000Creditors 13000Salaries 7200Bills Receivable 15800Bills Payable 8700Debtors 28000Sales 144000Insurance 1200Miscellaneous Expenses 600Land and Buildings 23000Discount paid 900Commission received 800Sales returns 3400Purchase returns 2400Carriage inwards 1400Purchases 97500Stock Opening 29900

Page 6: Tally Excer

3. Prepare the trial balance for the following balances taken from the books ofMM Agency.

BALANCES Amount Rs.

Opening stock 9300

Repairs 310

Machinery 12670

Furniture 1330

Office Expenses 750

Trading Expenses 310

Land and Buildings 15400

Bank Charges 50

Mis. Income 200

Purchases 15450

Purchase Returns 440

Sales Returns 120

Sundry Creditors 12370

Advertisement 500

Cash in Hand 160

Cash at Bank 5870

Sales 20560

Sundry Expenses 150

Insurance 500

Travelling Expenses 200

Capital 24500

Loan 5000

Page 7: Tally Excer

4. Prepare Trial Balance for the following balances taken from the books MM General Merchants:

Balances Amount (Rs.)

Capital 180000

Drawings 3200

Opening Stock 9000

Purchases 64500

Sales Returns 2000

Sales 119000

Wages 16000

Insurance paid 1500

Duty paid 10,000

Packing expenses 2000

Carriage outwards 8000

Postage 100

Advertisement 1000

Miscellaneous expenses 300

Discount received 500

Bills Payable 9000

Bank over draft 3000

Land 90000

Plant 70000

Furniture 1000

Debtors 25400

Creditors 42000

Cash 40500

Deposits 9000

Page 8: Tally Excer

TALLY EXERCISE 1.4

(1) (a) Journalise the following transactions:

1. Malini started business with Rs.50,000

2. Opened current account with Indian overseas Bank with Rs.5,000

3. Bought goods from Latha Rs.40,000

4. Paid to Latha Rs.25,000

5. Sold goods to Kumar Rs.36,000

6. Kumars account was settled .

(b)Write the above entries in the following manner:

Account to Debited Account to be credited

Malini started business with

Rs.50,000

Opened current account with Indian

overseas Bank with Rs.5,000

Bought goods from Latha Rs.40,000

Paid to Latha Rs.25,000

Sold goods to Kumar Rs.36,000

Kumars account was settled .

(c)List the ledger accounts to be opened for the above said transactions.

Page 9: Tally Excer

(2).(a) Journalize the following transactions:

3.2.2003 Bought goods for cash Rs.14,500

7.2.2003 Sold goods to Laxhmi on credit Rs.5,000

9.2.2003 Received Commission Rs.300

10.2.2003 Cash sales Rs.29,000

12.2.2003 Bought goods from Meenakshi on credit for Rs.6,000

15.2.2003 Received five chairs from Saravana Trader at Rs.300 each.

20.2.2003 Paid Cash to Saravana Stores.

28.2.2003 Paid Salaries Rs.1,000

28.2.2003 Paid Rent Rs.500

(b) Write the above entries in the following manner:

Account to

be Debited

Account to be

Credited

Bought goods for cash Rs.14,500

Sold goods to Laxhmi on credit Rs.5,000

Received Commission Rs.300

Cash Sales Rs.29,000

Bought goods from Meenakshi on credit for Rs.6,000

Received five chairs from Saravana Trader at Rs.300

each.

Paid Cash to Saravana Stores.

Paid Salaries Rs.1,000

Paid Rent Rs.500

(c)List out the ledger accounts to be opened for the above said transactions.

Page 10: Tally Excer

(3) (a)Journalise the following Transactions:

1. Mani started business with the capital of Rs.50 Lakhs

2. Land Purchased for Rs.2lakhs

3. Goods Purchased from Raju Rs.2500000 on cash.

4. Goods Purchased from Raghu Rs.1,00,000 on credit

5. Goods sold on cash Rs.15 lakhs

6. Goods sold on credit to Raja Rs.20 lakhs.

7. Salaries paid Rs.10,000

8. Carriage inwards paid Rs.25000

9. Interest received Rs.25000

10. Computer purchased Rs.25,000

11. Money collected from Raja Rs.50,000

12. Cash paid to Raghu Rs.10,000

13. Money deposited into Indian Bank Rs.2,00,000

14. Amount transferred to Canara Bank from Indian Bank Rs.35,000

15. Payment made to Raghu by Indian Bank Cheque for Rs.1,00,000

16. Telephone expenses paid Rs.2000

17. Goods sold for cash Rs.5,00,000

18. Goods sold on Credit to Radha Rs.50,000

19. Goods purchased from Amar for Rs.2lakhs on credit

20. Cash purchases made Rs.25,000

21.Additionl Capital introduced by Mani Rs.10,00,000

22. Money deposited into Indian Bank Rs.2,50,000

23. Ten tables are purchased from Wood world each Rs.1,000

24. Payment made to Wood World by Indian Bank

25 Goods purchased from Lal and co on Credit Rs.35,000

3(b) Write the above transactions in the form of accounts to be debited

and credited.

3(c) List out the ledger accounts to be opened for the above said transactions.

Dr. S. Muthumani/Management Studies/Sathyabama University.

Page 11: Tally Excer

ACCOUNTING VOUCHERS

P roced u re:

1. If the tally package was present in the desk top window double click the icon to open it.

2. In company information select create company-> to create a new company.3. C r ea t i o n o f L e dg e r A cc o u n t s :

In Gate way Tally select Account informationSelect Ledger – Select single ledger createThen type all the ledger accounts required based on the transactions.Control A to save-enter-press escape yes-press escape up to getting gateway tally menu.

4. C r ea t i o n o f I nv e n t o r i e s : In gate way tally select inventory informationSelect stock group-select single stock groupThen type all the stock groups under PrimaryControl A to save & escape to reach the gate way tally screen.

5. S e t t i n g s : Gateway Tally (Master)->Select Account information enterPress F11->Set the Account features as:Maintain bill wise details YESControl A – Press escape up to Gate way Tally (Master)Select Inventory information enter Press F12->it goes to configuration Select Acc/Inv informationSet the Choice asAllow Standard Rates for Stock items YES Control A to save -> ConfigurationSelect voucher entry enter set the choice asUse Single entry NOUse Dr/Cr instead of To/By YES Control A to savePress Escape up to Gate way Tally

6. C r ea t e Un i t s o f M ea s u r e : In gate way tally screen Select Units of MeasureType Symbol as Nos and Formal name as Numbers

7. C r ea t i o n o f S t o c k I t e m s : In Gate way Tally Screen select Inventory informationSelect stock items & Select single stock item createName: Sony 10 KgUnder: Washing MachineUnits: Nos

Page 12: Tally Excer
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Allow Std. Rates: Yes -> enterFill standard cost (purchase price) and Selling PriceControl A to save Press escape up to getting Gate way Tally Screen.

8. Entering the Transactions:In Gat way Tally Screen select accounting vouchers F4 Contra F5 Payments F6 Receipts F8 Sales F9 Purchases

Note:1. While entering the transaction if any new ledger to be created use AltC

2. Save every entry by control A.

TALLY QUESTION BANK

PART A

1. Define the term ‘Accounting’.

2. What is the need for Accounting to the Business Organizations?

3. Name the few important terms in accounting.

4. What is Accounting Cycle?

5. List out the usual transactions in a Business.

6. What are the three types of accounts maintained for transactions?

7. How do you classify the business organizations based on its transactions?

8. What is service organization?

9. What is manufacturing organization?

10. What is Trading organization?

11. State the concepts in of accounting.

12. What is Book Keeping?

13. Explain single entry system of book keeping.

14. Explain Double entry system of book keeping.

15. What is Real Accounts?

16. What is Personal Accounts?

Dr. S. Muthumani/Management Studies/Sathyabama University.

Page 14: Tally Excer

17. What is Nominal Accounts?

18. State the rules for Personal Account.

19. State the rules for Real Account.

20. State the rules for Nominal Account.

21. What is a Journal?

22. What is a compound Journal Entry?

23. What is voucher?

24. What is a trial balance?

25. State the advantages of trial balance.

26. State the purpose of preparing the trading account.

27. List out the purposes of preparing Profit and Loss account.

28. What is a Balance Sheet?

29. Explain the term ASSETS.

30. Explain the term LIABILITIES.

31. How can be assets classified?

32. How can be liabilities classified?

33. State any four features of Tally Package.

34. How do you create company details in Tally?

35. How do you select the company in Tally?

36. How do you delete the company in Tally?

37. Name the few functional keys in Tally?

38. What are groups?

39. Mention any four primary groups in Tally.

40. Mention any four-sub groups in Tally.

41. What is ledger?

42. How do you create ledgers in tally?

43. How do you classify the accounting transactions while working in Tally?

44. What do you refer as Contra Entry?

45. Mention any four components of company creation screen.

46. State the benefits of accounting on computers.

47. How can you view the trial balance in Tally?

Page 15: Tally Excer

48. What are the financial reports available in Tally?

49. What is a Day Book?

50. What is the Tally Financial Accounting Certification?

PART B

51. Discuss the different concepts and conventions of Accounting.

52. Describe the features of TALLY Package.

53. Elucidate the needs of Accounting for Business Organizations.

54. How do you classify the business organizations based on its transactions

and explain them in detail.

55.Compare and Contrast Computerized Vs Manual Accounting.

56. What are the advantages and limitations of Double Entry System of Book

Keeping?

57. Describe the nature of a Balance sheet and give the format of a Balance Sheet.

58. Distinguish between a Trial Balance and Balance Sheet.

59. Draw the flow chart for company creation and company alteration details in Tally.

60. State any twenty functional keys and its purpose while using the Tally.

Dr. S. Muthumani/Management Studies/Sathyabama University.

Page 16: Tally Excer

TALLY

PART A

Accounting Definition:Accounting is the art of recording, classifying and summarizing the business transactionsin a significant manner.

Need for Accounting: To know the results of operations. To know the financial position as on date. To know the liquidity position For business acquisition. For statutory compliance.

Few Important terms in Accounting: Transactions Account Voucher Capital Purchases and Sales Stock etc.

Accounting Cycle:The accounting cycle is a complete sequence of accounting procedures, which arerepeated in the same order during accounting period.

Usual Transactions involved in Business: Purchase of goods Payment for Expenses Sale of goods or services Receipts etc.

Types of Accounts maintained for Transactions: Real Accounts Personal Accounts Nominal Accounts

Classification of Business Organizations based on transactions: Trading organization Manufacturing organizations

Dr. S. Muthumani/Management Studies/Sathyabama University.

Page 17: Tally Excer

Service organizations

Service Organization:An organization providing services is called as service organization.

Trading organization:An organization involved in the process of buying and selling is called as trading organization.

Manufacturing Organization:An organization in the process of transforming raw materials into finished goods forconsumers, or for further processing by others is called manufacturing organization.

Concepts in Accounting; Entity concept Dual Aspect concept Going concern concept Accounting period concept Money measurement.

Book Keeping:Art of recording in a systematic manner in the books of accounts.

Single Entry system of Book Keeping:It refers the system where only the personal and cash aspects of the transaction are recorded in the books.

Double Entry system:It is the most common system of book keeping whereby the two aspects of everytransaction i.e. the receiving aspect and the giving aspect are recorded in the books of accounts.

Real Account:Real Account refers the visible and real items. E.g. cash, bank etc

Personal Account:

Page 18: Tally Excer

Personal Account refers the person with whom the company has dealings. E.g. customers and suppliers.

Nominal Account:It refers the expenses and income accounts. E.g. salaries , rent received

Journal:A journal may be defined as the book of original or prime entry containing a record oftransactions from which the posting is done to the ledger.

Voucher:A voucher is a document containing the details of financial transactions. E.g., Salesinvoice, purchase invoice, pay slip etc.

Trial Balance:Trial balance can be defined as a list of balances standing on the ledger accounts and cash book of a concern.

Advantages of Trial Balance: It is a consolidated statement of all the balances. It helps to verify the accuracy of the entries made in the ledger. It helps to prepare the final accounts.

Purposes of Preparing the Trial Balance: To verify the accuracy of the entries made in the ledger. To prepare the final accounts.

Purpose of preparing the Trading Account:To find the margin over purchase and sale of goods.

Purpose of Preparing the Profit and Loss Account:It is the statement prepared to compare the incomes and expenses and finally reports whether Net Profit or Net Loss incurred during the accounting period.

Balance sheet:A statement which sets out the Assets and Liabilities of a business firm and which serves to ascertain the financial position of the same on any particular date.

Assets:Assets represent everything, which a business owns and has money value.

Liabilities:It represents the responsibility of the business to repay in terms of Rupees.

Classification of Assets:

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Fixed Assets Current Assets Tangible Assets Fictitious Assets

Classification of Liabilities: Long term liabilities Current liabilities Contingent liabilities.

Features of Tally Package: Maintain complete range of accounts. Provided multiple reports. Various options Allows accounts of multiple companies simultaneously.

Creaton of Company in Tally:Go to Gateway Tally > Company info >Create Company

Alteration of Company Details in Tally:From Gateway Tally -> Company information menu –> Select Alter –> Enter. (To go to company information Alt F3)

Selection of Company in Tally:From Gate way of Tally -> Company information menu -> Select Company (enter).Tally displays the name of the company screen. Select the company as you wish.

Deleting a Company:Follow the same path as that used for Alter company to display company alteration screen. Here use Alt + D key and Tally displays a message ‘Delete’ Yes or No. Bypressing yes or enter key . Tally displays another message ‘Are you sure?’ Yes or No. By pressing yes company will be deleted.

Functional Keys in Tally: F1 = To select company. Alt+F1 = To shut company. F2 = To change DateAlt + F2 = To change periodAlt +F3 = To get into company info screenControl + A = to save the screen.

Groups:Collection of ledgers based on similar nature of ledgers are known as groups.

Primary Group:Primary Groups are the main groups which will be useful at the time of reporting.

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Sub-Groups:Sub groups are the secondary groups, which is based on the primary Group.

Primary Groups: Capital Accounts Current Assets Current Liabilities Fixed Assets Loans and liabilities etc.

Sub Groups: Cash in hand Cash at Bank Sundry Debtors Provisions etc.,

Ledger:Ledger is an accounting head which is used to enter the transaction and identify the same.

Creation of Ledger in Tally.Gate way of Tally -> Accounts information -> ledgers -> create.

Contra Entry:Contra entry is a transaction indicating transfer of funds from cash account to bank account / bank account to cash account / one bank account to another bank account.

Benefits of Accounting in computers: Multiple reports available in short time Accuracy Enables faster decision-making.

Components of Company creation Screen: Directory Name Mailing Name Address and State Email Address Use Indian VAT Currency symbol etc.

View of Trial Balance in Tally:Gate way of Tally > Display > Trial balance.

Financial Reports Available in Tally:

Page 21: Tally Excer

Balance Sheet Profit and Loss Account Trial Balance Account Books Day Books

Day Book:The day book is a list of all transactions for a particular day.

Tally Financial Accounting Certification:The tally financial accounting certification is an online test for business accounting Tally. Once certified you will join the global community of Tally Certified Professionals.

PART B

Business organizations perform a variety of transactions and can be classified as follows: Service Organizations Trading Organizations Manufacturing Organizations.

Service Organizations:

Meaning: An organization providing services is called service

organizations. Nature: Service organizations provide their services at the point of consumption by the

customer . Thus, such organizations could be severely hit on price if there is demand dip at the time for production.

Services are perishable, So the pressure on the service organization to provide services is more than that on a manufacturing organization or a tradingorganization.

Customer interaction is greater in service organizations than in manufacturingor trading organizations.

In service organization, services are usually provided by people, notmachines. So, service organizations are more labour intensive than manufacturing organizations.

Customer goodwill is an intangible asset for service organizations, which can be destroyed quickly.

Accounting in a Service Organization:The organization maintains regular books of account. Most service organizations donot deal in inventory and therefore, do not need to maintain inventory records. They do not follow a standard pricing policy for all customers, at all times.

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CUSTOMER

Services Payment of bills

Service Organization

Trading Organization:

Meaning: An organization involved in the process of buying and selling is calledTrading Organization.

Nature: The actual market price is established and valid for a short based on the

current supply and demand. The value of the product is determined by the customers expectations of

quality. A trading organization has to continually keep track of market demand and

ensure that inventory planning is done to take advantage of demand whenever it arises.

Different customers may be charged different prices by varying the percentage of discount on the price list.

Accounting in a Trading Organization:The trader must keep track of stock availability, customer requirement, cost ofprocurement and market changes. The accountant in trading organization has to maintain updated inventory records apart from regular accounting.

.

Page 23: Tally Excer

Manufacturing Organization:The process of transforming raw materials into finished goods for consumers, or for further processing of others in the channel is called Manufacturing.

Nature: The production cycle and the market cycle need not match. Usually, the entire cycle of procurement, production, distribution and

realization is longer as compared to other types of organizations. A high level of standardization is possible. Scientific methods can be used to reduce the production cost, which forms

a major part of the total cost of the product.

Accounting in a Manufacturing Organization:

Collections

CustomerDemand Trading organization

Inventory based on customer demand

Sale Arrival of stock

A company needs to account for inventories like raw materials, work in progress and finished goods to arrive at the profit made for the period. Changes in the inventory valuation method change the profits made during

the period. Accounting in manufacturing organizations requires more planning,

preparation and scheduling as compared to accounting in trading and serviceorganizations.

Page 24: Tally Excer

Customer Consumption Manufacturing organization

Inventory Planning

Demand

Working capital management

Market Finished Goods

FEATURES OF TALLY PACKAGE:

A leading accounting package: The first version of Tally was released in 1988 and through continuous development, is now recognized as one of the leading accounting packages across the globe, with over quarter million customers. Tally’s market share is more than 90%

NO Accounting codes: Unlike other computerized accounting packages that require numeric codes, Tally pioneered the no accounting codes concept. Tally users have the freedom to allocate meaningful names in plain English to their date items in the system.

Complete business solution: Tally provides a comprehensive solution to the accounting and inventory needs of business. The packages comprises of financial accounting and book-keeping and inventory accounting.

Flexible and easy to use: Tally is very flexible. It minimize the human thought process, which means that Tally can adapt to any business need, rather than the user trying to change the way the business is run to adopt to the package.

Versatility: Tally is suitable for a range of organizations from small grocery stores to large corporations with international locations and operations.

Multi-Platform availability: Tally is available on Windows 95, 98, ME, 2000 and NT. It runs on a single PC or a network , supports access via any combination of platforms.

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Simple and rapid installation: Tally has a simple, menu-driven installation procedure. The user can install the program files on any drive, if the hard disk has partitions.

Unlimited multi-user support: A multi-user version of Tally can be installed on a net work having any number of computers with different operation systems like Win 95, 98, NT 2000, XP and Linux.

Internal back up/restore: Tally has in built, user friendly back up and restores option. Tally helps the user to take back ups of one or more companies or all companies in a single directory in the local hard disk or in any external media.

Tally Audit: The Tally audit feature provides the user with administrator rights, a capability to check the correctness of the entries made by the authorized users and alter these entries, if necessary. Once the entries are audited, Tally displays the altered entries, if any, along with the name of the user who has altered the entry and the date and time of the alteration.

Multi-directory for company management: The user can create multiple directories where he can store data. The data stored in these directories can be accessed directly in Tally by specifying the path

FUNCTIONAL KEYS IN TALLY:

F2 - To change Date

Control A - To save

Control Q - Exit

Alt F2 - To change period

F4 - Contra

F6 - Receipts

F8 - Sales

F9 - Purchase

F 11 - To set features

F 12 - To set configuration

Esc - To go back to the previous screen

F 1 - Select company

Alt C - To create new ledgers, settings etc.

Alt F2 - To shut the company

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Dr. S. Muthumani/Management Studies/Sathyabama University.

Page 27: Tally Excer

Dr. S. Muthumani/Management Studies/Sathyabama University.