tally paprs

Q.1 (a). Explain the term Computerized accounting. Discuss in brief advantages and disadvantages of Computerized accounting. [Marks 14] When you choose for computerized Accounting first time , you create all the Ledgers and enter opening balance in a Ledger or carry forward previous years closing balance as opening balance since it would be carried forward on its own by the software simply by changing period. You have to enter all transactions in different vouchers. Thats all you have to do else like to Ledger, Preparation of Trial Balance, final Accounts etc. is done by the software. In Computerized Accounting, while creating new ledger, you are required to classify it suitably under relevant accounts group to tell the software the nature of the Ledger and where it will appear. This is necessary at this stage as all reports are prepared on line the moment you enter transactions. ADVANTAGES OF COMPUTERISED ACCOUNTING 1) 2) 3) 4) 5) 6) 7) 8) 9) 1) 2) 3) 4) 5) 6) It is very easy to change, edit and delete the entry according to the need of an organization. No need to take care of balancing effects of the ledger. It is very easy to pass the voucher entry according to the type of entry and voucher to get the correct effect of the entry. No need to bother while passing the voucher entry and the effect of the entry in respective ledger. Computerized accounting saves the time while passing voucher entry. The space is required for the keeping and cost of preparing will be saved in computerized accounting. After selecting the accounting for the posting the balance will be automatically calculated and display at the same time. MIS reports readily available as and when required. It is very easy to carry forward the balances to the particular day, month and year. In a computerized accounting the human errors are minimized. Computerized systems are always at risk of being hacked, power failure, viruses and losing information. Systems can be costly as they require constant updating and staff need to be trained to effectively use the system. Security issues are posed with a risk of computer fraud. Human error is often not as quickly identified, and records input need to be validated for accuracy. Computerized systems can be difficult to understand and if the systems are not specifically adapted or set up for the business it can cause havoc to the accounts. It is very difficult to handle the Accounting Software for a person who is not having basic knowledge of accounting.

DISADVANTAGES TO COMPUETRISED ACCOUNTING

Unit:Name of Book:Author Name:-

I Computerized Account (Tally) Mr. Prashant Yende & Mrs. Sonali Yende

Q.1 [b] Draw a neat labeled diagram of Tally Gateway Screen. Explain its all components in detail. [ Marks 14 ] Gateway of Tally is the main menu that appears on selecting of the company, the gateway of Tally menu differs based on the type of company selected, that is , Accounts Only company has a different Gateway of Tally menu from the of an Accounts with Inventory company.

The Gateway of Tally screen is divided in to four parts (sections). 1) Production information 2) Work Area 3) Button Bar 4) Calculator 1) Production Information:- In a Title Area Information related to the Tally Software is given like version of company, release of the software, current time, current date. i) ii) iii) iv) i) ii) iii) Software version and release. Single or Multi-user System Day, Date & Time Software Serial Number. Current Period Current Date List of Selected Companies Right hand Side:- At right part of the screen , the menu displays primary choices. Menu options are dependent on the activation of options. You may find some options are appearing as grayed indication then these options are not active or inactive, while some options are dark then these options are active for user. Selection for Menu options

2) Main Area:- The left hand side of the main area gives information of

a) Press the highlighted character. For example to select profit and Loss account press P. This is the fastest way to selection of factions. b) Move highlighted bar on the option with Up/ Down arrow key and press Enter key. c) Double Click the option. 3) Calculator:- By pressing Ctrl + N calculator activated. You can enter values and operations e.g. +,-,/,*,%. If you have used bracket then the calculator will solve the bracket first and then other calculations will be activated. 4) Button Bar:i) Help ii) F1: Select Company iii) F1: Shut Company iv) F2: Date v) F2: Period vi) F3: Company Info. vii) F11: Features viii) F12: Configure


II Computerized Accounting. Sushant Jay Krinshna Sony.

Q.2 (a) Write a procedure to create a new group in Tally with and example. Enlist advance features of an account voucher. transactions. Steps to create groups in Tally Gateway of Tally Accounts Info Groups Single Create. Diagram:[Marks 14] All the financial entries are performed using ledger or account heads. Ledger account heads and created to identify

Example:Suppose there are number of customers (Sundry Debtors) across the Maharashtra State and if we want to maintain data city wise then you can take the help of Groups. All the City will be consider as Groups and the Number of Customers will be Ledgers. ADVANCE FEATURES OF ACCOUNT VOUCHER

a) Show cost centre details:- setting this option to yes displays the cost centre wise allocation.

b) Show Inventory Details:- Setting to yes, Inventory details is displayed in the main voucher in the particular column. c) Show Table of Bill Details for selection:- This option is relevant only when you activate the Bill by Bill feature, which keeps Bill by Bill details of all open bills of Debtors and Creditors. When Bill by Bill feature is opted, normally the list of open bills comes up during entry of voucher to enable you to select the relevant open from the list. d) Show bill wise Details:- If you wish that the bill wise allocation sub screen to appeal in the main voucher, Respond to Yes, that would display the Bill wise allocation in the main voucher. e) Expand into Multiple Lines:- Set Yes to this option Show Billwise details . If you wish to view another line displaying the due date of the bill also, set this option to yes. f) Show Ledger Current Balance:- During voucher entry, to view the balance of each transacted ledger account prior to transition and post- transaction , set this option to Yes. On setting this option to Yes, Closing Balance of the ledger irrespective of the voucher date would be displayed. g) Show balance as on Voucher Date:- If you have set the previous option to yes, current balance of the ledger as at end -of-period would be displayed. If you set to yes, current balance as at voucher date will be shown during voucher entry, instead of end of the period. h) Use payment/ receipt as Contra:- Normally fund transfer transactions are entered in Contra Voucher, however, if you prefer to record such transactions in Payment and Receipt voucher also , set this option to Yes. i) Allow cash accounts in journal:- Normally cash transactions are recorded in Contra, Receipt or Payment Vouchers and such entries are not permitted in Journal Vouchers which are exclusively used for adjustments between ledger other than Cash and Bank A/cs. However, if you wish to pass ad Journal Voucher Involving Cash or Bank Ledger set this option to Yes. j) Use Cr/Dr instead of To/By during Entry:- By default To and By appears during voucher entry. However if your preference is Cr & Dr. set this option to Yes. k) Warn on Negative balance:- if you wish to warn on negative balance set this option to Yes, by default this option is set to Yes. If you set No, you will get any warning message during voucher entry when cash balance becomes negative. l) Pre Allocate Bills for Payment:- In payment voucher for payments given to Sundry Creditors, normally you first enter the total amount paid and then select the Bills adjusted. This is convenient related bill details and their total amounts are pre-calculated. In that case, set Yes to this option to select the bills first, Tally sumps up the bills and posts the total amount to the ledger account, eliminating the task of totaling up the bills paid/ adjusted. m) Allow Expenses / Fixed Asset in Purchase Voucher:- Normally in Purchase voucher , you are allowed to enter transaction related to material and services purchased, which goes to Purchases. You are not allowed to enter bills for Fixed Assets in Purchase voucher (when this option set to No). They are normally entered through Journal Voucher or Payment Voucher. If you need to allow fixed Assets, indirect Expenses also in Purchase Voucher, Say Yes.

n)

Allow Income Accounts in Sales Voucher: - Normally in Sales Voucher, you are allowed to enter transaction related to materials and services sold, which go to Sales. You are not allowed to enter voucher for other Income in Sales Voucher (when this option set to No) as such Incomes are normally entered through Journal Boucher or Receipt Voucher. If you need to allow Income Accounts aslso in Sales Voucher, set this option to Yes.


III Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende.

Q.2 (b) Explain the following terms:i)

[Marks 14]

Bank Reconciliation: - Reconciling the company Bank Accounts with the Bankers Statement is a

fundamental and regular task of accounting. It shows the balance of both at the end of a period. Bank also maintains an account for each customer in its book. All deposits by the customer are recorded on the credit side of his/her account and all withdrawals are recorded on the debit side of his/her account. A copy of this account is regularly sent to the customer by the bank. This is called Pass Book or Bank statement. It is usual to tally the firms bank transactions as recorded by the bank with the cash book. But sometimes the bank balances as shown by the cash book and that shown by the pass book/bank statement do not match. If the balance shown by the pass book is different from the balance shown by bank column of cash book, the business firm will identify the causes for such difference. It becomes necessary to reconcile them. To reconcile the balances of Cash Book and Pass Book a statement is prepared. This statement is called the Bank Reconciliation Statement. ii) House Keeping:BACKUP :Backup means keeping a copy of working data at another place for safety. Select Backup from Company Info. Menu to get Backup Screen Enter the data source. Select the company to Backup. Specify source and destination. Select the companies you wish to backup. In top part you can specify the source where data files are stored. Destination where you wish to tak backup. RESTORE:Restore means copying from the backed up data into the working place when the current Working data gets deleted or damaged. Select Restore Option from Company Info. Menu to get restore screen. Enter the full directory name data from where the company data is to be restored. USERS AND PASSWORD:Password protection is a common method of computer security. An Authorized person assign a secret word which is called password. This word is then necessary to perform the specified computer operation. You can create different users who belong to one or more different security levels of types of security. iii)DATA MAINTENANCE:Administrator can set up Users & Passwords, and types of security. i.e. Level of authority that determines the access right of the users. By default tally creates Two types of security level, namely Owner and Dada entry. Owner is provided with full access right to every part of the software. You can set up authority levels and users who are placed at these levels. The authority levels or types of security decide the right of the users. Tally has two security types already set up one is Owner and the other is Data Entry. Owner has full access and rights to all parts of Tally, except tally audit & Company alteration screen which are reserved for the Administrator alone. Data Entry has restricted rights.

iv)TALLY AUDIT:Tally provides the capability to the administrator / auditor to track changes in the accounts following his previous review. Changes of two areas are important changes in transactions or vouchers and changes in ledger masters. Only material changes are considered i.e. changes in the narration does not affect the integrity of a transaction, hence it would not be considered as changed. Any other change in a voucher is material and would not be logged. The name of a ledger account if changed, it is material, and hence it would be tracked. So also a change in the opening balance of a ledger master.

Unit:Name of Book:Author Name:1.

IV Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [ Marks 3.5]

Q. 3 (a) Differentiate between manual and Computerized Accounting.

In Manual Books keeping the work begins from the creation of ledgers and carries forward previous years

closing balance as opening balance for the current year. Recording the cash transaction in Cash Books and Non Cash transaction in Journal.

2. 3. 4. 5.

Ledger posting is the second step in the accounting after the journal is prepared. The amounts from journal To know balance of ledger, you are required to total amounts in both Debit and Credit columns of the ledger To prepare Final Accounts for any period, you have to compute closing balance of ledgers for the period and From Trial Balance, you post Nominal Accounts to Profit and Loss Accounts, Real & Personal Ledgers to

and cash book are posted into respective ledger. and compute the difference to derive the closing balance for the Ledger as on that date. then prepare a Trial Balance. Balance Sheet. Next year, when you create books, again create all the ledger a fresh and enter opening balance.


I Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [ Marks 3.5]

Q.3 (b) What are the functions of following key buttons?

F4:- This function key is used for contra transactions. Generally in a Contra mode the transaction which is between Cash to Bank, Bank to Cash, Bank to Bank are recorded in a Contra Mode.

Ex: - You wish to transfer of funds from Cash into Bank account- you will debit the Bank Account and Credit the Cash Account. F5:- This function is used for payment transactions. When we want to make payment in terms of Cash or Bank in such condition payment voucher is used. Ex:- Telephone Expenses paid by Cheque the entry will be recorded as- Telephone Bill Exp. A/c Debited and Credit the Bank Account. F6:- This function is used for Receipt voucher. Whenever we receive the cash in terms of Liquid or by Cheque or in terms of DD in such condition entry will be taken in Receipt Voucher. Ex:- Company receives money from customer. The customer account has to be credited and if cash received debit the cash account.


III Self. Self. [Marks 3.5]

Q. 3 (c) Write stepwise procedure to create Budget in Tally?

A Budget is one of the most effective financial management tools. A budget is money plan. A firm can organize and control its financial resources, set and realize goals and take some very important decisions in advance. There are

various types of budgets like Sales budget, production Budget, Cash Budget, Expenditure Budget, Marketing Budget, financial Budget, Departmental Budget etc. Gateway of Tally Accounts Info. Budgets Create After selecting Create option Budget screen will be appear. a) Give the name of the Budget. b) You can have hierarchical budget set-up. At the top level is the Primary budget. c) Specify the period of the budget. The period could be a month, a year or any period starting from any date to any date. d) You may want to select budget for groups of ledger accounts or for ledger accounts individually or for cost centres or all of them.


III Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [Marks 3.5]

Q. 3 (d) Explain the term Security Control.

Administrator can set up Users & Passwords, and types of security. i.e. Level of authority that determines the access right of the users. By default tally creates Two types of security level, namely Owner and Dada entry.

Owner is provided with full access right to every part of the software. You can set up authority levels and users who are placed at these levels. The authority levels or types of security decide the right of the users. Tally has two security types already set up one is Owner and the other is Data Entry. Owner has full access and rights to all parts of Tally, except tally audit & Company alteration screen which are reserved for the Administrator alone. Data Entry has restricted rights. Under Company Info Menu, on selecting Security Control option, a menu appears consisting:a) b) Users and Passwords Types of Security.


IV Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [ Marks 3.5]

Q.3 (e) Explain the need of computerized accounting.

a) Flexibility:- No need to bother while passing the voucher entry and the effect of the entry in respective ledger. You have to pass the voucher entry according to the type of entry and voucher to the correct effect.

b) Entry:- you can change, edit and delete the entry according to the need of an organization. No need to take care of balancing effects of the ledger. c) Time:- By computerization there is saving in time which is consumed while passing entries manually. d) Cost:- The cost in term of maintaining and cost of preparing will be saved in computerizing accounting. The space is required for the keeping the books and records of financial accounts is saved by saving the record and reports in hard Disk. e) Balance:- After selecting the accounting for the posting the balance will be automatically calculated and display at the time. f) Reports:- Requirements of MIS will be readily available as and when required.


I Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [Marks 3.5]

Q.3 (f) What are Numeric Symbol used in Tally? example you can change negative sign from (-) to (*).

Tally enables you to set the number styles. Defaults are also given. You may change them by overwriting. For

Through this option, you can configure Numeric Symbols. Normal users do not need to alter it. However in special circumstances, you need to alter it. You can configure symbols for Positive and Negative Numbers, ?debit and Credit Amounts, if you need a sign for each amount , you should specify the prefix and suffix for positive numbers. You can also change the signs for Debit and Credit Amounts. For Example:- Debit Amount will be shown as 2,000 Dr and vice versa for Credit amount 500 Cr.


II Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [Marks 3.5]

Q.3 (g) Write a note on Ledger Account in Tally.

A group of account is known as ledger. The general ledger is the main book of accounts; it contains accounts for each asset, liabilities proprietorship, revenue and expenses account. The ledger contains the same information as the journal.

Tally provides twin options to Create, Display and Alter Ledgers, single Ledger and Multiple Ledger. In tally as you create a company you get two ledger accounts free i.e. Cash Account and Profit and loss Account, for creating more Ledgers perform following steps. Gateway of Tally Accounts Info. Ledgers Single Ledgers Create.



Q.3 (h) Enlist Objectives of Auditing.

a) To verify truthfulness of accounts. b) To verify the completeness of accounts c) To ensure the strict adherence to rules and statutes in the maintenance of accounts. d) To find out errors. e) To find out frauds, embezzlement and misappropriation. f) To control over frauds. g) To keep moral influence on the employees. h) To satisfy tax authorities i) To facilitate future business policies.


IV Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [Marks 3.5]

Q.4 (a) Illustrate the effect of loan and liabilities in computerized accounting.

Generally in this type the loans taken by the company for a short and long period are included. With reference to the Liability term there are two types of liability Current Liabilities and Long term liabilities. In current liabilities the loans and advances which is taken for short period are included and in long term liabilities the Loans which is taken for more than one year is called long term liability.



Q.4 (b) Write a procedure to delete a company in Tally.

Gateway of Tally Company Info (Alt + F3) Alter Company Press Alt + D Accept it (Press Y) to delete Company.


II ----Self.. [Marks 3.5]

Q.4 (c) Explain the importance and process of printing of vouchers in Tally.

It is very important to print vouchers because it is useful to the various departments, personnels, Auditors etc. To print the voucher, before saving the voucher press Alt + P or click Print button that brings the printing screen asking print?. For taking a print with print preview option press Alt+I. Yes or No. Respond Y to indicate yes, the voucher will be printed.

To change the print configuration, press F12: Configure.



Q.4 (d) Explain the term Export of Data in Tally.

Export of data is provided mainly for summaries and statement reports like Trial Balance, Stock Summary, etc. The main use would be to export data to, say, a spreadsheet, and reorganize it for statutory presentation. Or export it to another company using Tally that will import it directly. Export of all reports and statements is possible. Separate button is provided in the button bar and press it to export the current report. All the four formats are available for export. The exported file is saved in the parent Tally directory on your computer. You can now use that file to import its contents into another program, send it as it is (say if it is HTML file) to a colleague or view it using a browser. For exporting data perform following steps.

Gateway of Tally Display List of Accounts Click on Export



Q.4 (e) Discuss in brief Classification of Accounts.

Personal Accounts:- These are the accounts of individuals, firms, limited companies, local authorities, association with whom the businessman deals These accounts may be of creditors, debtors, bankers etc. Ex:- Amitas Account, Nagpur Muncipal Corporation, Pankaj Account etc. Impersonal Accounts:a) Real Account:- These are the accounts of properties, assets or possessions the businessman. These accounts represent the belongings of the businessman. Ex:- Cash, Building, Goodwill, Patents etc. b) Nominal Accounts:- These are the accounts of expenses or losses and gains or incomes. These accounts are called fictitious accounts as they do not represent any tangible asset. Ex:- Rent Account, Salary Account etc.


I Financial Accounting. Prof. P.M. Navghare [ Marks 3.5]

Q.4 (f) Give the buttons at Gateway in Tally.

Help:- This button launches Tally reference manual, which is complied HTML help. Web Browser:- This button launches the default installed Web Browser. F1:- Press F1 to select Company. F1:- Press Alt + F1 to shut Company. F2:- Press F2 function key to change the date of voucher. F2:- Press Alt +F2 function key to change the period of company. i.e. 1.4.2011 to 31.3.2012. F3:- Press Alt + F3 function key for Company Information Menu. F11:- Press F11 function key to change the features of company. F12:- Press F12 function key to configure company data.



Q. 4 (g) Write stepwise procedure for creation of Primary Groups.

Gateway of Tally Accounts Info Groups Single Create.


III Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yende. [ Marks 3.5]

Q.4 (h) List different display options of accounting reports.

Gateway of Tally displays only the Balance Sheet and Profit & Loss Account directly as these statements are considered the most important. All the other Tally reports are classified into two broad categories, namely. Accounting reports, Inventory reports conforming to the two major areas of operations. Each area is further grouped into books and statements.

The Cash Flow and Funds Flow display too has not been grouped under Statements of Accounts. Trial Balance provides you a report on the account balances sorted by groups, for all the accounts of the selected company. In other words, the Trial balance displays a collection of main groups and their closing balances. The Stock Summary is a statement of stock-in-hand on a particular date and gets updated every transaction so as to provide the current stock position. The Ratio Analysis Statement is a single sheet report indicating the companies performance based on values and key indicators, over a selected period. This report gives a manager an idea of the company's financial condition and where it is going in the short-term. The Day Book contains all vouchers for the day, including inventory vouchers. Its purpose is to show you a day's transactions, though you can display a report for any period using Change period option. The List of Accounts gives the tree structure of all your masters, namely, Groups, Ledgers, Stock items, Cost Centers, Currencies, etc. Exception Reports are those reports that track unusual transactions or balances.



Q.5 (a) Discuss the term Accounting Organization.

Accounting is that system which help us for written the transaction in systematically way. accounting is the very useful system for remembering the such transaction, with the help of accounting we know that what is the financial position of our company & firm. in the anent time we done that kind transaction like exchanging the things between two parties without help of money but in that transaction we find some errors in that transaction as follows-: We have to need two parties in that transaction which parties are want to exchange their things with that party which thing they want . Accounting is very necessary for recording their firm, companys transaction for knowing the financial position of the company or firm. in accounting we have to follow the such rules for recording the such transaction in systematically way as follows: (1) materiality concept (2) matching concept (3)money measurement concept (4) separate entity concept (5) accounting period concept


I Ref taken from Web Side Answer.Com Self. [Marks 3.5]

Q.5 (b) What do you mean by General Configuration?

This has already been configured by you under Country Specific Configuration before creating the company. It caters to country specific requirements. The option available under F12: Configure > General

Country Detail: - We have to enter the country details in this block. Style of dates: - in this option we have to select the details that would appear by default at name field at Report. Decimal Character to use: - Dot (.) is used to represent a decimal character (Ex: - 30.00) which is the Default setting. However, you can use any other symbol as separator in place of dot. Thousand Separator to use: - Normally, comma (,) is use as a separator for thousands and dot is used as decimal. Put Sign before Currency/ Unit Symbols? : - This option controls how signed number would be displayed. Show numbers in millions (and not in Lakhs)? : - Large numbers are formatted with separator for better readability. We can change the format of million or Lakhs from here. Show monthly reports with Graphs? If we wish to show Graphs in Monthly reports responds it by Yes, if not then No.



Q. 5 (c) Write a short note on Cheque Printing in Tally?

You can print a cheque for a bank for which you have configured. Cheque printing under F11: Feature. When you enter a Payment voucher crediting the Bank Account for which you have configure cheque Printing. You will get additional prompt to enter details for cheque.

You would be prompted to enter name of Payee (by default name of the Ledger is shown you can overtype) and also asked whether the cheque should be crossed? Change the name if necessary. Normally, the name of the first ledger debited in the voucher appears as Payee Name for printing Name on the ledger. You can choose to write cheques directly from tally. Cheques will be printed when printing a Payment Voucher, However, first activate the capability in F11: Company Feature and set the dimensions. Tally accepts user defined cheque dimensions.



Q.5 (d) Explain the procedure for creation of new Security level in Tally.

Owner has full access rights. The other predefined type, Data entry, is based on owner but is restricted by default. For creating New Security level perform following steps. Types of Security Data Entry [Down Entry]

Type the name of security level e.g. Manager Press [Enter] to bring up the level Defination Screen. Press [Enter] to bring up the Level Definition Screen.


IV Computerized Accounting (Tally) Mr. Prashant Yende & Mrs. Sonali Yend

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