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Contents
Introduction of Accounting ................................................................................................................................... 4
Journal: » ............................................................................................................................................................. 6
Types of Accounts ................................................................................................................................................ 7
Golden Rules of Accounting.................................................................................................................................. 7
List of Groups ...................................................................................................................................................... 8
Sample Charts of Accounts / List of Ledgers ........................................................................................................ 12
Sample of Balance Sheet..................................................................................................................................... 15
Trading Account................................................................................................................................................. 15
Profit & Loss Account ........................................................................................................................................ 16
Balance Sheet as on 31st March…….. ................................................................................................................. 17
{Tally} .............................................................................................................................................................. 18
Computerized Accounting ................................................................................................................................... 18
Ledger Assignment No. – 01 ............................................................................................................................... 21
Ledger Assignment No. – 02 ............................................................................................................................... 22
Ledger Assignment No. – 03 ............................................................................................................................... 23
Ledger Assignment No. – 04 ............................................................................................................................... 24
Ledger Assignment No. – 05 ............................................................................................................................... 25
Ledger Assignment No. – 06 ............................................................................................................................... 26
Ledger Assignment No. – 07 ............................................................................................................................... 27
Ledger Assignment No. – 08 ............................................................................................................................... 28
Ledger Assignment No. – 09 ............................................................................................................................... 29
Ledger Assignment No. – 10 ............................................................................................................................... 30
Subsidiary Books................................................................................................................................................ 31
Voucher Entry .................................................................................................................................................... 33
F1, F2, F3, F4, F5, F6 ........................................................................................................................................ 34
Voucher Assignment No. – 01 ............................................................................................................................. 35
Voucher Assignment No. – 02 ............................................................................................................................. 36
Voucher Assignment No. – 03 ............................................................................................................................. 37
Voucher Assignment No. – 04 ............................................................................................................................. 38
Voucher Assignment No. – 05 ............................................................................................................................. 39
F7, F8, F9, F6, F5 .............................................................................................................................................. 40
Voucher Assignment No. – 01 ............................................................................................................................. 41
Voucher Assignment No. – 02 ............................................................................................................................. 43
Voucher Assignment No. – 03 ............................................................................................................................. 44
Voucher Assignment No. – 04 ............................................................................................................................. 45
Voucher Assignment No. – 05 ............................................................................................................................. 47
Cost Centres ..................................................................................................................................................... 48
Cost Centre Assignment No. - 01......................................................................................................................... 49
Bank Reconciliation.......................................................................................................................................... 52
Adjustment Entries........................................................................................................................................... 52
Inventory .......................................................................................................................................................... 53
Inventory Assignment No. – 01 ........................................................................................................................... 57
Inventory Assignment No. – 02 ........................................................................................................................... 59
Inventory Assignment No. – 03 ........................................................................................................................... 61
Inventory Assignment No. – 04 ........................................................................................................................... 63
Inventory Assignment No. – 05 ........................................................................................................................... 65
Inventory Assignment No. – 06 ........................................................................................................................... 67
Inventory Assignment No. – 07 ........................................................................................................................... 69
Inventory Assignment No. – 08 ........................................................................................................................... 71
Inventory Assignment No. – 09 ........................................................................................................................... 73
Inventory Assignment No. – 10 ........................................................................................................................... 75
Fiscal Environment of a Manufacturing Organisation .................................................................................................... 78
What is Tax? ........................................................................................................................................................ 78
GST ................................................................................................................................................................... 79
Features of GST ................................................................................................................................................... 79
Benefits of GST .................................................................................................................................................... 79
Types of Dealer in GST .......................................................................................................................................... 79
When you Purchase from Regular Dealer:-................................................................................................................. 80
When you Purchases from Composition Dealer:- ......................................................................................................... 80
When you purchases from an unregistered Dealer:- ..................................................................................................... 80
When CGST, SGST or IGST is applicable? ................................................................................................................ 81
Understanding HSN Code & SAC Code meaning:........................................................................................................ 81
Harmonized System Nomenclature (HSN): ................................................................................................................. 81
Service Accounting Code (SAC): .............................................................................................................................. 82
UQC (Unit Quantity Code) in GST:............................................................................................................................ 82
Taxation - Assignment 01 .................................................................................................................................... 83
Taxation - Assignment 02 .................................................................................................................................... 84
TDS.................................................................................................................................................................... 85
TCS.................................................................................................................................................................... 85
Customs Duty....................................................................................................................................................... 85
 Introduction of Accounting

Accounting: »
Accounting is defined as Systematic, Summarized recording of business transactions
in the books of account.
In other words the books of your company can be treated as medical reports that show
the health of your company.
To learn accounting, it is necessary to understand the final amounts of Debit and
Credit, Assets and Liabilities, Income and Expenses to prepare and maintain accounts
systematically and correctly.

Transaction: »
Transaction means transfer of money or goods from one party to another party.
For example: Sale of computer, Purchase of furniture, Fees Received from Student.
There are two types of transaction: »
1] Cash transaction
2] Credit transaction
1] Cash transaction: » When assets or goods are purchased or sold on cash
then this type of transaction is known as “Cash transaction”.
2] Credit transaction: » When assets or goods are purchased or sold on credit
then this type of transaction is known as “Credit transaction”.
Debit: »
The things or items which are coming into the business are known as Debit.

Credit: »
The things or items which are going from the business are known as Credit.

Assets: »
The things or items which are not a regularly purchase or sale are known as Assets.
For example: Furniture, Building, Machinery, Computers, Cash, unsold stock, Shares due
from the debtors (Customers), etc.

Liabilities: »
Liabilities are that sum of money which in the business owns to outsiders.
For example: Capital (amount invested by proprietor to start a new business), Loan taken
from bank, loan from friends, money to be given Creditors (Suppliers).

Capital: »
The owner of the business who have invested in the business to start a new business
that is loan given by proprietor to the business which also mean Capital is one of the
liabilities of the business.
Drawings: »
Drawings refer to sum of value of goods or cash withdrawn by a businessman from the
business from time to time for self-use.

Goods: »
The things or items which are regularly purchase or sale are known as goods. Goods
are always purchased for resale at a profit.

Sundry Creditors: »
The person from we are purchasing goods on credit and we will pay the amount in
future, it‟s called “Sundry Creditors”.
For example: Purchase goods from Ram. In this transaction Ram is the “Sundry Creditor”.

Sundry Debtors: »
That person to we are sold goods on credit and he will pay the amount in future it‟s
called “Sundry Debtors”.
For example: Goods sold to Shyam. In this transaction Shyam is the “Sundry Debtor”.

Bad Debts: »
Bad debts are a loss which is incurred by the business on account of non-collection of
the debit from debtors. It is treated as bad debts when all hopes or chances or recovery of
debts are lost. Bad debts reduce the inflow of cash.

Invoice: »
A statement giving the details of goods purchase or sold on credit is called invoice.
Invoice is sent by seller to buyer along with goods dispatch to buyer from the side of buyer it
is known as “Inward Invoice” and the side of seller it is known as “Outward Invoice”.

Narration: »
Narration means brief explanation of an entry. It always start with the word “Being”.

Entry: »
Recording of a transaction in a proper form or method in the books of accounts it‟s
called an “Entry”. It is a first record of any business transaction in the books of accounts.

Profit: »
Excess of income over the expenses during the accounting year is called a profit.

Loss: »
Excess of expenses over the income during the accounting year is called a loss.
Journal: »
Journal is an important book of account. In this account book all types of business
transactions are recorded. This is a book of daily records. The transaction as soon as it takes
place is first recorded in the journal. The word Journal is derived from a Latin word “Jour”
means a day.
All business transactions are first entered in this book and subsequently they are
posted to another book known as “Ledger”.
Journal is a book in which all day-to-day transactions are recorded. It is recorded
systematically in the summarized form of Debit and Credit. In earlier time the size of the
business was small and transactions were few hence one book as Journal was convenient to
record all day to day transactions. As time passes transactions increased in numbers and
journal is divided into various books known as “Subsidiary Books”.

In the Books of M/s.…………

Journal Entries
Debit Credit
Date Particulars L/F
Amount Amount
Year Name of the account Debited -- Dr xxx _____
Month/Date To Name of the account Credited _____ xxx
[Being ………………………………………..]

Posting: »
Posting is the process of transferring the transaction recorded in Journal to the
concerned account opened in the ledgers.

Ledgers: »
A ledger is a group of accounts. It is the principle book in which contains all accounts.
For example: Capital A/c, Cash A/c, Expenses A/c, Assets A/c, etc. Transaction recorded in
Journal is transferred to ledger accounts.

Dr Sample Ledger A/c Cr

Date Particulars J.F. Amount Date Particulars J.F. Amount
To name of the A/c xxx By name of the A/c
which is Credited which is Debited xxx

xxx xxx
 Types of Accounts
1] Personal Account 2] Real Account 3] Nominal Account

1] Personal Account: »
The account pertaining to an Individual, Firm, Company, Local Authority and
Associate with which the business deal is called a “Personal Account”.
It is an account of Natural Person or Artificial Person (Legal Person). In artificial
person Partnership Firm, Limited Company, Association, Local Authority, etc. are grouped.
Accounts of Creditors, Debtors, College a/c, Hospital a/c, Club‟s a/c are known as
“Personal Account”.

2] Real Account: »
An Account pertaining to properties Assets owned by the businessman is called “Real
Account”.
For example: Cash A/c, Furniture A/c, Goods A/c, Assets A/c, etc.

3] Nominal Account: »
An account pertaining to Expenses, Income, Losses, Gains and Profits are known as
“Nominal Account”.
For example: Rent A/c, Salaries A/c, Interest A/c, Advertisement A/c, Commission A/c.

Golden Rules of Accounting

Personal Account: »
Debit the Receiver
Credit the Giver

Real Account: »
Debit what Comes In
Credit what Goes Out

Nominal Account: »
Debit all Expenses and Losses
Credit all Income and Gains
 List of Groups
Sr. No. Main Groups (15) Sub Groups (13) Alias
1 Capital A/c - -
2 - Reserve & Surplus (Retained earnings)
3 Loan (liabilities) - -
4 - Bank OD/OCC A/c -
5 - Secured loans -
6 - Unsecured loans -
7 Current Liabilities - -
8 - Duties & Taxes -
9 - Provision -
10 - Sundry Creditors -
11 Fixed Assets - -
12 Investment - -
13 Current Assets - -
14 - Stock-in-hand -
15 - Deposit (Assets) -
16 - Loans & Advances (Assets) -
17 - Sundry Debtors -
18 - Cash-in-hand -
19 - Bank Account -
20 Branch / Division - -
21 Misc. Expenses (Assets) - -
22 Suspense Account - -
23 Sales Account - -
24 Purchase Account - -
25 Direct Income - Income (Direct)
26 Direct Expenses - Expenses (Direct)
27 Indirect Income - Income (Indirect)
28 Indirect Expenses - Expenses (Indirect)
1] Capital Account: »
Capital is the money introduced by the owner at the time of starting a new business. It
increases with the profit earned during the year and reduces the withdrawals for
personal purpose.

2] Reserve & Surplus: »

Reserve & Surplus is a group on the liability side of balance sheet. General Reserve is
included in this account. Generally in case of Companies / Partnership Firms this
group exists.

3] Loans (Liability): »
It includes the loan taken by businessman. In this group there are three types.

4] Bank OD A/c and OCC A/c: »

Loans taken from the banks are shown under this account. Loan taken for working
capital purpose is included under this head.
Bank O/D (Bank Overdraft) OCC (Bank Cash Credit).

5] Secured Loan: »
It is an item under liability side of Balance Sheet. The loans taken from Banks or
financial institutes are included under this group. The loans received against some
securities (fixed assets or stock) are known as “Secured Loans”.

6] Unsecured Loans: »
These are the loans taken without any security. For example: Loan taken from
relatives, friends etc.

7] Current Liabilities: »
This group includes current liabilities other than Sundry Creditors, Loans (liability).

8] Duties & Taxes: »

It includes all types of taxes GST (Goods and Service Tax), CGST (Central GST),
SGST (State GST), IGST (Integrated GST) TDS (Tax Deducted at Source), excise
duty, etc.

9] Provision: »
It is an item on the liability side of the Balance Sheet. The expenses which are not paid
during the year but payable for that year are included in this group.
For example: Outstanding Salary, Outstanding Wages, Outstanding Rent, etc.

10] Sundry Creditors: »

It includes the party account from we are purchased materials on credit. This amount
is payable to supplier. It comes under liabilities side.
11] Fixed Assets: »
It is an item on the assets side of the Balance Sheet which includes Furniture, Plant &
Machinery and Land & Building, etc.

12] Investment: »
It is an item on the assets side of Balance Sheet which includes amount invested in
shares, debenture, mutual funds, SIP, etc.

13] Current Assets: »

This group includes Current Assets other than Sundry Debtors, Cash-in-hand etc. This
includes stock of stationary, printing materials.

14] Stock-in-Hand: »
It includes stock of raw material or finished goods at the year end. (Means 31st
March). In Tally software when you create Opening / Closing or Stock on Ledger A/c
you need to create that Ledgers A/c under head Current Assets.

15] Deposits (Assets): »

These are the deposits with outsiders. For example: Telephone Deposit, Deposit with
MSEDCL, Security Deposit, etc.

16] Loans & Advances (Assets): »

It is an asset. The advances given to the suppliers or employees are to be recorded in
this group. The loans given to relatives are also recorded in this group.

17] Sundry Debtors: »

It includes the party accounts to we are goods sold on credit. This amount is receivable
from customers. It comes under assets side in Balance Sheet.

18] Cash-in-Hand: »
It includes Cash-in-hand at the year end. It is current assets. This account already
exists in the Tally package, so you need not have to create it but select the „alter‟
option and enter the opening balance.

19] Bank Account: »

It shows the balances with different bank balance in the current account of bank are
included under these groups.

20] Branch / Division: »

The branch or division of the business is considered under this group. For example:
Bajajnagar Branch, Ranjangaon Branch, Jogeshwari Branch, Satara Parisar Branch,
Cidco Mahanagar-1 Branch, Wadgaon Branch, Ambad Branch, Aundha Branch,
Hingoli Branch, Sillod Branch etc.
21] Miscellaneous Expenses (Assets): »
Consisting of many different kinds. For example: Stationary for office, pencil, stapler
pin, white board, pen, etc.

22] Suspense Account:

This account is open for a time being, when the account name is not confirmed.

23] Sales Account: »

It included different types of material or goods sold in the business.

24] Purchase Account: »

It includes different types of material or goods purchased are recorded in Purchase
Account.

25] Direct Income: »

Income earned under professions recorded under this group. For example: Professional
fees, Consultancy service, etc.

26] Direct Expenses: »

In case of a trading business or manufacturing business the expenses like Wages,
Frights, and Carriage Inwards are to be recorded.

27] Indirect Income: »

It includes income other than direct income. For example: Rent received, Commission
received, Discount received, etc.

28] Indirect Expenses: »

All business expenses are recorded under these groups. For example: Salary, Rent,
Advertisement, Printing and Stationary etc.
 Sample Charts of Accounts / List of Ledgers
Sr. No. Ledger Account Under Group
1 Acron Clothing (Customer) Sundry Debtors
2 Administration Charges Direct Expenses
3 Advertisement Indirect Expenses
4 Any other bank Bank Account
5 Assembling table Fixed assets
6 Audit fees Indirect Expenses
7 Bad Debts Indirect Expenses
8 Bank Cash Credit a/c Current Liabilities
9 Bank Charges Indirect Expenses
10 Bank Overdraft Bank OD A/c
11 Bills Payable Current Liabilities
12 Bills Receivable Current Assets
13 Branch Branch / division
14 Capital Account Capital Account
15 Car Expenses Indirect Expenses
16 Carriage Inward Direct Expenses
17 Carriage Outward Indirect Expenses
18 Cash (Already exist in Tally) Cash-in-Hand
19 Cash Discount Paid Indirect Expenses
20 Cell phone Fixed Assets
21 Commission Paid Indirect Expenses
22 Commission Received Indirect Income
23 Computer Fixed Assets
24 Conveyance expenses Indirect Expenses
25 Conveyance Expenses Payable Provision
26 Depreciation Indirect Expenses
27 Director Loan Account Loans & Advances (Assets)
28 Discount Received Indirect Income
29 Dividend Received Indirect Income
30 Drawings Capital Account
31 Electrical Fitting Fixed Assets
32 Electricity Charges Indirect Expenses
33 Electricity Expenses Payable Provision
34 Entertainment Expenses Indirect Expenses
35 Equity Share Capital Capital Account
36 Excise Duty Balance Duties &Taxes
37 Factory Electricity Fitting Direct Expenses
38 Freight Expenses on Purchase Direct Expenses
39 Furniture & Fixture Fixed Assets
40 General Office Expenses Indirect Expenses
41 General Reserve Reserve & Surplus
42 Goodwill Fixed Assets
43 GST Adjustment Account Duties & Taxes
44 GST Payable Provision
45 GST Receivable Current Assets
46 HDFC Bank Bank Account
47 Import Expenses Direct Expenses
48 Input Service Tax Duties &Taxes
49 Insurance Indirect Expenses
50 Insurance Charges Indirect Expenses
51 Interest Accrued Current Assets
52 Interest on loan Indirect Expenses
53 Interest on Partner Capital Indirect Expenses
54 Interest Received Indirect Income
55 Investments Investments
56 Land & Building Fixed Assets
57 Loan from Bank Secured Loan
58 Loan from Financial Institute Secured Loan
59 Loan from Friends Unsecured Loan
60 Loan from Relatives Unsecured Loan
61 Loans to Employee for Festivals Loans & Advance
62 Mona Bhardwage (Supplier) Sundry Creditors
63 Motive Power Direct Expenses
64 Motor Car Fixed Assets
65 Office Equipment Fixed Assets
66 Other Liabilities Provision
67 Other than Direct Expenses Indirect Expenses
68 Our Customers Sundry Debtors
69 Our Suppliers Sundry Creditors
70 Output Service Tax Duties & Taxes
71 Overheads Direct Expenses
72 Packing Material Suppliers Sundry Creditors
73 Partner Remuneration Indirect Expenses
74 Petty Cash Cash-in-Hand
75 P.F. Contribution Indirect Expenses
76 Plant & Machinery Fixed Assets
77 Postage & Telegram Indirect Expenses
78 Preliminary Expenses Misc. Expenses
79 Premises Fixed Assets
80 Prepaid Expenses Current Assets
81 Printing & Stationary Indirect Expenses
82 Profit & Loss a/c Primary
83 Purchase Account Purchase Account
84 Purchase Return Purchase Account
85 R.D.D. (Reserve for Doubtful Debts) Indirect Income
86 Rent Deposit Deposits (Assets)
87 Rent Expenses Payable Provision
88 Rent Paid Indirect Expenses
89 Reserve & Surplus Reserve & Surplus
90 Return Inward Sales Account
91 Return Outward Purchase Account
92 Royalty Direct Expenses
93 Salary Indirect Expenses
94 Salary Advances Loans & Advances (Assets)
95 Salary Expenses Payable Provision
96 Sales Account Sales Account
97 Sales Return Sales Account
98 Security Deposits Deposits (Assets)
99 SIP (Systematic Investment Plan) Investment
100 Staff Welfare Indirect Expenses
101 Stock Stock-in-Hand
102 Supplier Sundry Creditors
103 TDS Receivable Current Assets
104 Telephone Bill Payable Provision
105 Telephone Deposit Deposits (Assets)
106 Travelling Expenses Indirect Expenses
107 Unpaid Wages Provision
108 Wages Direct Expenses
 Sample of Balance Sheet

In the books of M/s…………………..

Trading Account
For the year ended 31st March……..
Dr Cr
Particulars Amount Particulars Amount
To Opening Stock xxx By Sales xxx
To Purchases xxx By Closing Stock xxx
To Direct Expenses xxx By Direct Income
To Wages xxx By Consultancy Services xxx
To Carriage inward xxx By Professional Fees / Services
To Freight xxx
To Transportation Charges xxx
By Goods distributed as free
To Factory rent xxx xxx
sample
To Factory expenses xxx
By Goods withdrawn by
To Manufacturing expenses xxx xxx
proprietor for personal use
To Fuel, Coal, Gas, Oil xxx xxx
To Motive Power xxx
By Gross Loss c/d (transferred
To Octroi xxx to Profit & Loss a/c) (i.e. Debit xxx
Balance)
To Consultancy charges paid xxx
To Architect charges paid xxx
To Royalties xxx
To Gross Profit c/d (transferred
to Profit & Loss a/c) (i.e. xxx
Credit Balance)
Total xxx Total xxx
 Profit & Loss Account
For the year ended 31st March……..
Dr Cr
Particulars Amount Particulars Amount
To Gross Loss b/d xxx By Gross Profit b/d xxx
To Indirect Expenses
To Salaries xxx By Indirect Incomes
To Office Expenses xxx By Interest Received xxx
To Office Rent xxx By Commission received xxx
To Printing & Stationary xxx By Discount received xxx
To Directors & Auditor‟s fees xxx By Dividend received xxx
To Interest xxx By Interest on Investment xxx
To Commission paid xxx By R.D.D. A/c xxx
To Discount allowed xxx
To Staff Welfare xxx By Net Loss xxx
To Postage & Telegram xxx
To Bank Charges xxx
To Insurance xxx
To Repairs & Maintenance xxx
To Telephone Charges xxx
To Electricity Charges xxx
To Vehicle Maintenance xxx
To Advertisement xxx
To Books & Periodicals xxx
To Depreciation xxx
To Bad Debts xxx
To Travelling & Conveyance xxx
To Loss on sale of assets xxx
To Entertainment Expenses xxx
To Net Profit xxx
Total xxx Total xxx
 Balance Sheet as on 31st March……..
Liabilities Amount Assets Amount
Capital a/c Fixed assets
Share Capital xxx Furniture xxx
Partner‟s Capital xxx Vehicles xxx
Proprietor‟s Capital xxx Computer xxx
Land & Building xxx
Reserve & Surplus Premises xxx
General Reserve xxx Plant & Machinery xxx
Reserve fund xxx Office Equipment xxx
Loans (Liability) Investment
Bank OD/OCC Shares, SIP, P.F. Investment xxx
Bank overdraft facility xxx Current Assets
Bank Cash credit facility xxx Loans & advances (Assets)
Secured loan Advance to Employees xxx
Loan from bank xxx Deposit (Assets)
Unsecured loan Telephone deposit xxx
Loan from relatives xxx Security deposit xxx
Current liabilities Deposit with MSEB xxx
Sundry Creditors Bank Account
Suppliers or Account payable xxx Bank A/c in different banks xxx
Provision Banks xxx
Salary Payable xxx Cash-in-Hand
Outstanding Expenses xxx Cash xxx
Duties & Taxes Petty cash xxx
GST xxx Sundry Debtors
Income tax deducted xxx Customers or A/c Receivables xxx
Any other Payables xxx Stock-in-Hand
Closing Stock xxx
Misc. Expenses (Assets) xxx
Total xxx Total xxx
 {Tally}
Computerized Accounting

 Introduction: »
Computerized Financial Accounting means Recording, Classifying and Summarizing
all the business transaction related to Art & Science of raising and spending money.
Primarily recording refers to the process of maintaining a permanent account of business
transaction for evidence and information classification is an act of recording the transaction
in the ledger. This process is known as posting. At the end of the accounting year all the
Ledger Accounts are balanced and then Trial Balance is prepared. A Trial Balance is a list of
Debit and Credit balances of the Ledger Accounts.
The financial accounts are prepared to ascertain the profit or loss to know the financial
position of the business organization.
Thus, Trading and Profit & Loss Accounts are Summary Accounts & Balance Sheet is
sheet of Credit & Debit balances that provides information of Liabilities & Assets of the
business. These records maintain helps the businessman to know the financial position and
result of his business activities.
The accounting information is essential for the businessman and managers to take
prompt and accurate decisions.

 Benefits of Computerized Accounting: »

 All accounting entries can be stored permanently.

 Once Journal entries are made on Computer, other statements like Trial
Balance, Trading and Profit & Loss A/c, Balance Sheet are generated
automatically.

 If a change is made in Journal entry its effects are automatically change up to

Balance Sheet.

 We can get accounting reports like Purchase register, Sales register, Day book,
etc. using a computerized accounting software like Tally.

 We can get many facilities related to Taxes in Computerized Accounting.

  Needs of computer in Accounting: »
Today we live in a highly dynamic world. The pace of growth and development due to
Globalization has been accelerated in the field of Industry & Commerce. Modernization
Mechanization, Automation and Computerization are keywords of the modern world.
Computerization of an accounting operation is necessary for providing timely and
accurate information to make prompt and accurate decisions.
Computer application in accounting is necessary for the following purpose.
 To save labour in Book Keeping.
 To save time for recording & classifying transactions.
 To increase efficiency for generating accounting information.
 To maintain high speed for transaction processing.
 To maintain Arithmetical accuracy with regard to the accounting records.
 To automate routine accounting. For example: Preparation of source document,
passing entries, posting of entries, calculations of wages, salaries, taxes etc.
 To integrate Sales, Purchase & General ledgers.
 To Prepare Budget, Sales report, Variance analysis reports and Inventory control.
 To maintain single & multiple Cost Centre.
 To create and print Sales and Purchase Order.
 To provide the facility of Import & Export of Data.
 To update all the reports.
 To provide effective use of ratio analysis in controlling the business.

 Introduction of Accounting Software: »

Tally is a name of accounting software. It is application software which is used by the

user to perform the task of recording, classifying and summarizing the business transaction.
This software has eliminated the use of tradition code system with the computer.
 Opening screen of Tally.ERP9
Gateway of Tally screen: » Opening screen of Gateway of Tally has six parts.
1] Main area (Gateway of Tally): » Main area of Tally is divided into two parts.
i. Left Hand side area: » List of current period, current date and list of
selected companies is displayed on the left hand side area.
ii. Right Hand side area: » Menu of company information is displayed on the
right hand side area. In this area Masters, Transactions, Utilities, Reports,
Display, Quit, etc, option is display.
2] Horizontal Button Bar: »
Essential Tally commands have been provided on this bar. For example: Print (Alt+P),
Export (Alt+E), E-Mail (Alt+M), Upload (Alt+O), Language (Alt+G), Keyboard (Alt+K),
Control centre (Ctrl+K), Support centre (Ctrl+H), Help (Alt+H)
3] Bottom Pane: »
Info panel is displayed at the bottom of the screen. Logo of Tally.ERP9 is displayed
on the left side of the info panel window. Product section, Version & Update Section,
License & Service section and Configuration section are displayed in info panel.
i. Version section: » Information like release, Build, Edition details (Gold,
Silver or Educational) & no. of users is displayed in this section. We can
read information about product details by clicking this section. In this
information about version & edition is displayed.
ii. License section: » Information like state file, server port & running as
details is displayed in this section.
4] Calculator Area: »
We can perform various calculations in this area. We can work in Tally calculator
using Ctrl+N key combination. Give Ctrl+M command for further entries after completion of
calculations.
Give Alt+C command at the place where we type value of a ledger a/c while doing a
journal entry. With this auto value calculator is turned on. Now type an expression and press
enter key. The result is displayed automatically.
5] Task Bar: »
System date set in computer is displayed in this section. Also day, date, month and
year is displayed. System time is also displayed. Path is displayed at the lower left corner of
the bottom pane.
6] Button Bar: »
A vertical bar is displayed at the right side of opening screen of Tally.ERP9. It is
called button bar. It has various buttons these buttons are used to see various options to
complete different tasks in Tally. These keys can be used with Mouse, or function key. For
example: F1=Select company, F2=Date, F4=Contra, Alt+I=Item Invoice or Accounting
Invoice, Ctrl+V=As Voucher or As Invoice, Ctrl+T=Post-Dated, Alt+F10=Physical Stock,
Alt+S=Stock Query, Alt+F7=Stock Journal (Transfer of Materials), F11=Features,
F12=Configure.
 Ledger Assignment No. – 01
Company Name: » (Your Roll No.) Ledger Ass. No. 01
Address: » RM-197, Jay Bhawani Chowk, Bajajnagar – 7720029639

Debit Credit
Particulars Under Group
Amount Amount
Land & Building 80000 -
General Reserve - 22000
Furniture 23000 -
Reserve for Doubtful Debts - 2500
Bad Debts 1250 -
Purchase 44440 -
Sales - 82400
Return Inward 6500 -
Return Outward - 4200
Carriage Inward 3450 -
Carriage Outward 4250 -
Sundry Debtors 26000 -
Sundry Creditors - 32250
Bills Receivable 14000 -
Bills Payable - 12150
Rent, Rates & Taxes 2550 -
Machinery 23000 -
Capital - 150000
Drawings 34000 -
Wages 4000 -
Salaries 4500 -
Opening Stock 43300 -
Cash at Bank 8900 -
Loan from Amar - 45000
10% Investment 33360 -
Unpaid Wages - 4000
Discount - 2000

Gross Profit: 28210=00 Nett Profit: 20160=00

Balance Sheet: 251560=00 Trial Balance: 356500=00
 Ledger Assignment No. – 02
Company Name: » (Your Roll No.) Ledger Ass. No. 02
Address: » Near Jai Bhadra Girani, Ramnagar, Ranjangaon (S.P.) – 9922109444

Debit Credit
Particulars Under Group
Amount Amount
Advertisement 2000 -
Bank Overdraft - 24000
Capital Account - 150000
Carriage Inward 1500 -
Carriage Outward 2400 -
Cash 28250 -
Commission Received - 5265
Creditors - 40620
Debtors 35000 -
Discount 1000 -
Furniture 30000 -
Interest 1500 -
Investment 34000 -
Land & Building 70000 -
Plant & Machinery 25000 -
Postage & Telegram 1780 -
Purchase 28500 -
Purchase Return - 4505
Rent 3560 -
Royalty 6000 -
Rent Received - 5500
Salaries 10500 -
Sales - 60000
Sales Return 1000 -
Trading Expenses 900 -
Wages 7000 -

Gross Profit: 20505=00 Nett Profit: 7630=00

Balance Sheet: 222250=00 Trial Balance: 289890=00
 Ledger Assignment No. – 03
Company Name: » (Your Roll No.) Ledger Ass. No. 03
Address: » Near Grampanchayat Karyalya, Jogeshwari - 9922942244

Particulars Under Group Amount

Advertisement 600
Audit Fees 600
Bank Overdraft 7840
Capital Account 40000
Cash 12890
Commission Received 2500
Creditors 7800
Debtors 11400
Depreciation on Machinery 1500
Excise Duty 640
General Reserve 8000
Import Duty 1300
Insurance 360
Interest Paid 100
Machinery 24000
Motive Power 1100
Opening Stock 16000
Postage 200
Printing & Stationary 700
Profit on sale of Furniture 1300
Purchase 24000
Rent Received 2100
Return Outward 150
Royalty Paid 2200
Salaries 3580
Sales 27600

Gross Profit: 450=00 Nett Loss: 1290=00

Balance Sheet: 65580=00 Trial Balance: 99230=00
 Ledger Assignment No. – 04
Company Name: » (Your Roll No.) Ledger Ass. No. 04
Address: » Aamdar Road, Ranjeet Nagar, Satara Parisar - 9922942244

Particulars Under Group Amount

Bad Debts 1000
Bank Loan 20000
Bills Receivable 13000
Capital Account 150000
Carriage Outward 2000
Cash 27500
Drawings 5000
General Reserve 8000
Goodwill 7000
Interest on Bank Loan 1800
Loan to Geeta 24400
Machinery 25000
Motive Power 3000
Outstanding Rent 2750
Patents 3750
Profit & Loss a/c 2750
Purchase 82250
R.D.D 1500
Salaries 21200
Sales 98700
Sales Return 3700
Stock on 01/04/2018 58000
Sundry Creditors 31400
Sundry Debtors 24000
Wages 12500

Gross Loss: 2750=00 Nett Loss: 27250=00

Balance Sheet: 207150=00 Trial Balance: 315100=00
 Ledger Assignment No. – 05
Company Name: » (Your Roll No.) Ledger Ass. No. 05
Address: » Near Cidco Growth Center, Cidco Mahanagar - 1 – 9765337551

Particulars Under Group Amount

Bank 70000
Building 75000
Capital Account 181000
Cash 5770
Computers & Printers 25000
Debtors 2640
Drawings 3300
Electricity Bill 600
Furniture 11000
Sundry Creditors
Kewal Account 10000
Postage & Telegram 130
Purchase 14400
Purchase Return 150
Salaries 2700
Sales 7440
Sales Return 300
Sundry Creditors
Shinde Account 14250
Telephone Deposit 2000

Gross Loss: 7110=00 Nett Loss: 10540=00

Balance Sheet: 201950=00 Trial Balance: 212840=00
 Ledger Assignment No. – 06
Company Name: » (Your Roll No.) Ledger Ass. No. 06
Address: » Near Hari Om Traders, Cidco Main Road, Wadgaon (Ko.) - 9922942744

Particulars Under Group Amount

Advertisement Account 3000
Ajay‟s Capital Account 170000
BSNL Account 2500
Building 200000
Cash 85000
Computer Account 40000
Customer Samarth a/c 4000
Furniture 10000
Janta Bank Account 45500
MSEB Account 4000
Professional Fees 45000
Profit & Loss a/c
Purchase Account 10000
Salary Account 4000
Sales Account 20000
Stationary Account 1000
Supplier Anmol Account 4000
Vijay‟s Capital Account 170000

Gross Profit: 10000=00 Nett Loss: 4500=00

Balance Sheet: 389000=00 Trial Balance: 409000=00
 Ledger Assignment No. – 07
Company Name: » (Your Roll No.) Ledger Ass. No. 07
Address: » Court Road, Digital Gali, Ambad (Jalna) – 9922942244

Particulars Under Group Amount

Administration Charges 50000
Assembling Table 250000
Cell phone 107000
Commission Paid 20000
Commission Received 15000
Directors Loan A/c 25000
Electrical Fitting 210000
Electricity Expense Payable 60000
Excise Duty Balance 775700
GST Adjustment A/c 191300
Import Expenses 60000
Office Equipment 140000
Other Liabilities 23000
Output Service Taxes 31000
Partners Remuneration 40000
Premises 100000
Prepaid Insurance 70000
Repairs & Maintenance 13000
Royalty 33000
Staff Welfare 24000
Loan From Relatives 46000

Gross Loss: 143000=00 Nett Loss: 225000=00

Balance Sheet: 1127000=00 Trial Balance: 1142000=00
 Ledger Assignment No. – 08
Company Name: » (Your Roll No.) Ledger Ass. No. 08
Address: » Bhoje Complex, Bazar Road, Aundha (Nagnath) – 9922942244

Particulars Under Group Amount

Advertisement 3600
Bank Overdraft 12000
Bills Payable 3000
Cash
Cash at Bank 101300
Commission Received 4200
Creditors 21500
Debtors 48200
Insurance 3400
Interest 6300
Interest on P.F. Investment 1200
Opening Stock 22000
Outstanding Salary 300
P.F. Contribution 1000
P.F. Investment 12000
Prepaid Insurance 400
Printing & Stationery 1850
Professional Charges 7300
Purchases 162350
Sachin‟s Capital 40000
Sachin‟s Drawings 2500
Salary 11200
Sales 287500
Shrimant‟s Capital 20000
Shrimant‟s Drawings 1800
Wages 4500

Gross Loss: 120650=00 Nett Loss: 91400=00

Balance Sheet: 183900=00 Trial Balance: 389700=00
 Ledger Assignment No. – 09
Company Name: » (Your Roll No.) Ledger Ass. No. 09
Address: » Akola Bypass, Aadarsh College Road, Hingoli – 9922942244

Particulars Under Group Amount

Bills Payable 50000
Bills Receivable 40000
Brokerage 3000
Cash 3600
Commission Received 6000
Conveyance 2200
Dock Charges 4200
Goodwill 76000
Insurance 4800
Jitesh‟s Capital 200000
Land and Building 180000
Miscellaneous Expenses 3200
Motor Van 60000
Opening Stock 70000
Pritesh‟s Capital 120000
Purchases 194000
Purchases Return 4000
Salary 15600
Sales 363000
Sales Return 3000
Shares of Bajaj Ltd. 50000
Sundry Creditors 60000
Sundry Debtors 56000
Wages 28400
Warehouse Rent 9000

Gross Profit: 128400 =00 Net Profit: 108800=00

Balance Sheet: 538800=00 Trial Balance: 803000=00
 Ledger Assignment No. – 10
Company Name: » (Your Roll No.) Ledger Ass. No. 10
Address: » Near Tathe Hospital, Tilak Nagar, Sillod – 9922942244

Particulars Under Group Amount

Abhijit‟s Capital 132000
Abhijit‟s Drawing 6000
Bad Debts 3200
Bank Loan 32000
Bank Overdraft 80000
Carriage inward 2100
Cash at Bank 6500
Furniture 50000
Land & Building 170000
Office Expenses 5400
Opening Stock 44000
Outstanding Expenses 4600
Plant 90000
Pre-Received Rent 5000
Purchases 122500
Rent, Rates & Insurance 4500
Reserve for Doubtful Debts 2000
Salary 7600
Sales 169000
Sujeet‟s Capital 88000
Sujeet‟s Drawing 4000
Sundry Creditors 81900
Sundry Debtors 69200
Sundry Income 4000
Wages 13500

Gross Profit: 30900=00 Net Profit: 16200=00

Balance Sheet: 429700=00 Trial Balance: 598500=00
 Subsidiary Books
Introduction: »
Principle of journalizing all transactions in the universal system of book-keeping. It is
perfect for small concerns having few and non-repetitive transactions, but for large business
concerns it is inconvenient to journalize a number of transactions which are repetitive in
nature. Besides it is difficult for a single clerk to journalize a numbers of transactions in a
single journal. Therefore for accurate and quick recording of transactions, the journal is
divided into a number of special journals in a classified manner.
In trading concerns though the transactions are numerous they can be grouped into
special journals on the basis of their nature. Receipt and payment of cash can be recorded in
cash book, credit purchase of goods can be recorded in purchase book, and credit sale of
goods can be recorded in sales book and goods returned can be recorded in purchase return
book and sales return book. Thus, the journal is divided in such a way that separate book is
used for each type of transaction.

Meaning: »
Sub-division of journal is known as subsidiary books. It helps in maintaining separate
book for particular type of transactions which are repetitive and large in number. Journal is
sub divided into number of special journals on the basis of nature of transactions. Subsidiary
books are also books of original entry because when a transaction takes place it is first
recorded in one of these books and are subsequently posted to the respective accounts in the
ledger. Subsidiary books are also called as Special Journal or day books.

Needs for maintaining subsidiary books: »

Needs for maintaining subsidiary books is as follows:
Division of Work: » The work of recording transactions into subsidiary book and posting
it to the ledger account can be assigned to several clerks simultaneously.
Specialization: » Since, clerks are assigned same type of work, it leads to specialization
and increase in efficiency.
Time saving and economical: » Different accounting procedures can be taken up at the
same time. This will save time and prove to be economical.
Quick information and future reference: » Similar transactions are recorded
together in the same book therefore quick information and future references to any of them
become easy.
Verification of Correctness: » It enables effective internal control which helps in
verifying the correctness of book of accounts.
Helps in preventing fraud: » Since, transactions are recorded in a chronological order
it prevents fraudulent entries in an accounts
 Types of Subsidiary Books

Cash / Bank Book

Cash / Bank
Transaction
Petty Cash Book
Types of Subsidiary Books on the Basis of

Purchase Book

Sales Book
Credit Transactions
Transactions

of Purchase / Sales
Purchase Returns
Book

Sales Return Book

Bills Receivable Book

Bill Transactions

Bills Payable Book

Residuary or Other Journal Proper

 Voucher Entry
In manual accounting every business entry is first made to the Primary Book or
Journal Book. It is called „Journal Entry‟. In Tally, making entry of every business
transaction means “Voucher Entry”.
In Tally, voucher entry is a very important step. All Reports, Trial Balance, Profit &
Loss Trading Statement, Balance Sheet Statement are automatically generated only after
Voucher entry. Every statement is not required to be prepared as in manual accounting.
Accounting Voucher Types: »
Entry in Tally should be done according to the kind of transaction done in the
business. Tally has provided same types of vouchers for entry according to the type of
transaction. Select the appropriate voucher type and make the voucher entry accordingly to
get accurate reports of accounting in Tally.

List of Buttons or Keys

Accounting Vouchers Inventory Vouchers

F2: » Date F1: » Accounting Vouchers

F3: » Company Material In
F4: » Contra Material Out
F5: » Payment F6: » Rejections In (Ctrl+F6)
F6: » Receipt F5: » Rejections Out (Ctrl+F5)
F7: » Journal F7: » Physical Stock (Ctrl+F7)
F8: » Sales F7: » Stock Journal (Alt+F7)
F6: » Credit Note (Alt+F6) F8: » Delivery Note (Alt+F8)
F9: » Purchase F9: » Receipt Note (Alt+F9)
F5: » Debit Note (Alt+F5) F9: » Purchase Order (Ctrl+F9)
F10: » Other Vouchers F8: » Sales Order (Ctrl+F8)
Memorandum Job Work In Order
Reversing Journal Job Work Out Order
F11: » Features F11: » Features
F12: » Configuration F12: » Configuration

K: » Company G: » Go To
 F1, F2, F3, F4, F5, F6
F1: Select Company: »
It is used to select a company. F1 (Alt+F1) used to deactivates a company.

F2: Date: »
It is used to change the date. F2 (Alt+F2) is used to change the period of company.

F3: Company: »
This voucher type is used to switch from one company to another active company.
Alt+F3 invokes company info menu.

F4:Contra Voucher: »
This voucher type is used only for bank transactions. If the cash from business is
deposited into the bank for any transactions and similarly if the cash is withdrawn from the
bank into the business then it is entered in the Contra voucher.
If your business has more than one bank accounts then, the cash transfer from one
bank to another is also taken in this Contra voucher.

F5: Payment Voucher: »

This voucher type is used only for cash or cheque transactions. If the cash is given to
any person or organization for any reason from the business or the bank then payment
voucher type is used.
If you are going to pay any person through cheque (means cash from your bank is
given to any person or organization) then also you should use the voucher type as payment.

F6: Receipt Voucher: »

This voucher type is also used for any cash or cheque transaction. If any cash or
cheque comes into business for any purpose then the voucher type Receipt is used.
If any person or organization has given payment to you in cheque then the amount is
deposited in bank. In this case also this entry should be taken in the Receipt voucher type.
 Voucher Assignment No. – 01

Company Name: » (Your Roll No.) Voucher F4, F5, F6 No. 01

1. Started business with cash Rs.90000.

2. Salary paid in cash Rs.5000.

3. Telephone bill paid in cash Rs.1500.

4. Amount paid to Nikita Traders in cash Rs.6000.

5. Amount paid to Dalal & Sons through Bank Rs.10000.

6. Fees collected from Students Rs.4500 in cash.

7. Paid Travelling expenses in cash Rs.7000.

8. Commission received in bank of Rs.2500.

9. Ch. No. 123786 received from Abhishek Enterprises Rs.3000.

10. Amount received from Bhutada & Co. of Rs.10000.

11. Paid salary to Mr. Sanjay Kale of Rs.4000 by cheque.

12. Opening balance of cash Rs.50000.

13. Paid cheque to Anmol Prakashan of Rs.6000.

Nett Loss: » 10500=00 Balance Sheet: » 90000=00

 Voucher Assignment No. – 02

Company Name: » (Your Roll No.) Voucher F4, F5, F6 No. 02

Ledger Account Group Amount

Poonam Traders Sundry Debtors 50000
Mayur Enterprises Sundry Creditors 25000
Kanti Association Sundry Debtors 50000
Renuka Fine Arts Sundry Creditors 10000
Nitin Publishers Sundry Creditors 11000
Cash 35000
State Bank of India 65000
Naveen‟s Capital A/c 154000
Transactions: »
1. Paid Telephone Deposit by Bank of Rs.5000 Ch. No. 569123.
2. Paid Office Rent Rs.2000 and Telephone bill Rs.3000.
3. Salary of Rs.6000 and Stationary of Rs.550 paid in cash.
4. Ch. No. 651234 received from Kanti Association of Rs.20000.
5. Received commission in cash of Rs.4500.
6. Rs.10000 paid to Renuka Fine Arts Ch. No. 569124.
7. Ch. No. 871269 received from Poonam Traders of Rs.15000.
8. Cash withdrawn from Bank of Rs.15000 Ch. No. 569125.
9. Cash received from Poonam Traders of Rs.5000.
10. Paid Repair Expenses of Rs.2000 in cash.
11. Salary paid through Bank of Rs.8000 Ch. No. 569126.
12. Cash paid to Mayur Enterprises Rs.10000.
13. Cash received from Poonam Traders of Rs.10000.
14. Cash deposited into bank of Rs.8000.
15. Paid to Nitin Publishers of Rs.3000.

Nett Loss: » 17050=00 Balance Sheet: » 177000=00

 Voucher Assignment No. – 03

Company Name: » (Your Roll No.) Voucher F4, F5, F6 No. 03

1. Open a Bank A/c in Bank of India by depositing Rs.10000.

2. Mr. Joshi started a business with Cash Rs.20000.

3. Take a loan from Janta Bank Rs.25000.

4. Paid Salary Rs.2000 and Wages Rs.4000.

5. Received commission Rs.3000 by cheque.

6. Paid Electricity charges for office by cheque Rs.1000.

7. Received Rs.475 from Kiran in full settlement of his account of Rs.500.

8. Paid salary expenses of Rs.500.

9. Paid to Ramakant of Rs.1000 in full settlement of his account of Rs.1050.

10. Paid Insurance premium of Rs.175 on the property of business.

11. Cash withdrawn from Bank of Rs.8000.

12. Received Interest of Rs.2000 by Cash.

13. Deposited Rs.5000 into Bank.

Nett Loss: » 2650=00 Balance Sheet: » 45000=00

 Voucher Assignment No. – 04

Company Name: » (Your Roll No.) Voucher F4, F5, F6 No. 04

1. Mr. Mehta commence business with Cash Rs.110000.

2. Paid Cash Rs.4900 to Sanjay & Co. who allowed discount Rs.100.

3. Received cash from Kalpesh of Rs.2900 on account and allowed him cash
discount Rs.100.

4. Paid Salary by cheque of Rs.6000.

5. Paid Cash into Bank of India Rs.90000.

6. Paid Postage Rs.1000 & Electricity bill of Rs.600.

7. Sent a Telegram of Rs.50 to Shinde for supply goods Rs.2500

immediately.

8. Paid Telephone deposit by cheque of Rs.2000.

9. Received a bearer cheque for Rs.14500 from our debtor Manish.

10. Give a loan to Sumit by cheque of Rs.4000 at 12% Interest per annum.

11. Paid Interest Rs.3000.

12. Paid office rent to Landlord Mr. Sujeet of Rs.8000.

Nett Loss: » 18650=00 Balance Sheet: » 110000=00

 Voucher Assignment No. – 05

Company Name: » (Your Roll No.) Voucher F4, F5, F6 No. 05

1. Anand Commenced business with Cash Rs.100000

2. Opened a Current A/c in Bank of India with Rs.20000

3. Bought Furniture Rs.5000 & Machinery Rs.10000

4. Withdrawn from Bank for personal use Rs.1000

5. Received cash from Madhav Rs.11800 and allowed discount Rs.200

6. Cash Deposited in Bank Rs.6000

7. Purchased 50 shares of Eagle Co. Ltd. @ Rs.100 per Shares & Brokerage
Rs.50

8. Sold 30 shares of Eagle co. Ltd. Rs.70/- per shares Brokerage paid Rs.30

9. Paid salary to Staff Rs.1500

Nett Loss: » 1780=00 Balance Sheet: » 99000=00

 F7, F8, F9, F6, F5
F7: Journal Voucher: »
Any transaction that has happened in the business is not either a Bank transaction,
Cash (Payment / Receipt) Credit (Purchase / Sales) then it is entered in the „Journal‟ voucher.
Transaction is an exchange of goods or services either for Cash or on Credit. All
Adjustment entries are also passed through Journal. It is an Adjustment voucher. Journal
voucher is used for non-cash transactions.
There are many transactions where in cash is not received or paid immediately. These
transactions (non-cash) are recorded in journal through journal voucher. Journal voucher
may be classified into two categories: »
1) Purchase or Sales 2) Journal Proper

F8: Sales Voucher: »

If you have given the material on Credit or by Cash to a person or an organization then
this transactions is done in the Sales voucher type.
Sales voucher is used to record the sales transaction of the company you can pass an
entry using the voucher mode (Dr/Cr) or the Invoice mode. In the invoice mode calculations
can be automated & the transactions can be fed into the system easily.

F9: Purchase Voucher: »

If you have purchased any material from an organization on credit or in cash then this
transaction is done using the purchase voucher type.
Purchase voucher is used to record the purchase transaction of the company you can
pass an entry using the voucher mode or the invoice mode. In invoice mode the calculations
can be automated & the user can experience the case of feeding the transaction into the
system easily.

F6 (Alt+F6): Credit Note: »

If you have sold material to a person or organization on credit and some of the
material has come back from the person or organization then this trans actions should be
entered in the Credit Note voucher type. This option should be activated after doing
following steps: »
Gateway of Tally  Press F11  Accounting Features  (Invoicing) Use debit and credit
notes  Yes

F5 (Alt+F5): Debit Note: »

If you have purchased material from any company on credit and if you have sent back
some material then this transaction can be entered in tally through Debit Note as voucher
type. This option should be activated after doing following steps: »
Gateway of Tally  Press F11  Accounting Features  (Invoicing) Use debit and credit
notes Yes
Modification / Alteration of Record: »
Accounting is a processing of recording, classifying & summarizing the business
transaction they are: »
1. Cash Transaction
2. Credit Transaction.
Cash transaction are recorded in cash book as receipts and payments account. Bank
transactions of a business also recorded in cash book with Bank column.
Credit transaction are recorded in journals. Ex. Purchase daybook, Sales day book,
Purchase & Sales return book, Bills receivable, Bills payable & Journal proper.

Voucher Assignment No. – 01

Company Name: » (Your Roll No.) Voucher F7, F8, F9 No. 01

1st May: » Mr. Suraj commenced business with Cash Rs.110000, Goods
Rs.40000 and Furniture Rs.50000.
2nd May: » Opened a current account in the State Bank of India by depositing
Rs.25000.
3rd May: » Cash Purchase Rs.40000.
6th May: » Cash Sales Rs.20000.
8th May: » Purchased goods worth Rs.10000 from Sanjay Co. subject to trade
discount of 2%.
10th May: » Credit Sales to Kalpesh Rs.8000.
12th May: » Paid cash Rs.4900 to Sanjay & Co. who allowed discount of
Rs.100.
14th May: » Goods distributed as free sample of Rs.1000.
16thMay: » Received cash from Kalpesh Rs.6500 on account & allowed him
cash discount of Rs.500.
18th May: » Returned goods of Rs.500 to Sanjay & Co.
20th May: » Purchased shares of Rs.10000 of Reliance Co.
24th May: » Received goods returned by Kalpesh Rs.1000.

Gross Loss: » 21300=00 Nett Loss: » 22700=00 Balance Sheet: » 204300=00

In the books of (Your Roll No.) Voucher F7, F8, F9 No. 01
Journal Entries
Debit Credit
Date Particulars L/F
Amount Amount
Cash A/c --- Dr 110000 ----
st
1 May To Mr. Suraj‟s Capital A/c ---- 110000
(Being Mr. Suraj commence business with Cash)
Goods A/c --- Dr 40000 ----
1st May Furniture A/c --- Dr 50000 ----
To Mr. Suraj‟s Capital A/c ---- 90000
(Being Mr. Suraj commence business with Goods & Furniture)
Bank of India Dr 25000 ----
2nd ---
To Cash A/c ---- 25000
May
(Being Bank A/c open by depositing Cash)
Purchase A/c --- Dr 40000 ----
rd
3 May To Cash A/c ---- 40000
(Being material purchase on Cash)
Cash A/c --- Dr 20000 ----
th
6 May To Sales A/c ---- 20000
(Being material sale on Cash)
Purchase A/c --- Dr 9800 ----
8th May To Sanjay & Co. ---- 9800
(Being material purchase from Sanjay & Co. on 2% trade
discount)
Kalpesh A/c Dr 8000 ----
10th ---
To Sales A/c ---- 8000
May
(Being goods sold on credit)
Sanjay & CO. A/c --- Dr 5000 ----
12th To Cash ---- 4900
May To Discount ---- 100
(Being cash paid to Sanjay & Co. who allowed discount)
Advertisement A/c Dr 1000 ----
14th ---
To Sales A/c ---- 1000
May
(Being goods distributed as free sample)
Cash A/c --- Dr 6500 ----
th
16 Discount A/c --- Dr 500 ----
May To Kalpesh A/c ---- 7000
(Being cash received from Kalpesh A/c with discount)
Sanjay & Co. A/c Dr 500 ----
18th ---
To Purchase Return A/c ---- 500
May
(Being goods returned to Sanjay & Co.)
Investment A/c Dr 10000 ----
20th ---
To Cash A/c ---- 10000
May
(Being shares purchase of Reliance)
Sales Return A/c Dr 1000 ----
24th ---
To Kalpesh A/c ---- 1000
May
(Being goods return by Kalpesh)
 Voucher Assignment No. – 02
Company Name: » (Your Roll No.) Voucher F7, F8, F9 No. 02

1. Draw from SBI Rs.35000 for Office use and Rs.6000 for personal use.

2. Cash Received from Sunil Rs.12000 less 3% Cash discount.

3. Sold goods to Sunil Rs.15000 less 5% Trade discount.

4. Goods returned by Sunil Rs.2350.

5. Cash Sales Rs.6000.

6. Deposited Rs.5600 into SBI.

7. Cash Purchased Rs.16000.

8. Cash Sales Rs.15000.

9. Goods withdrawn for personal use Rs.3300.

10. Goods purchased from Anil Rs.13500.

11. Salary Rs.4000 and Wages Rs.7000 paid by cheque.

12. Cash received from Sunil of Rs.14250.

13. Goods return to Anil of Rs.3200.

Gross Profit: » 2900=00 Nett Loss: » 1460=00 Balance Sheet: » 10760=00

 Voucher Assignment No. – 03

Company Name: » (Your Roll No.) Voucher F7, F8, F9 No. 03

1. Mr. Modiji Commence business with Cash Rs.100000, Building

Rs.360000, Machinery Rs.150000 & Furniture Rs.50000.

2. Purchase of Rs.75000.

3. Sales of Rs.125000.

4. Paid Wages of Rs.3500 & Advertisement of Rs.12000.

5. Insurance premium of Rs.3000.

6. Purchase from Mr. Sanjay of Rs.80000.

7. Purchase return to Mr. Sanjay of Rs.7200.

8. Goods sold to Jay Rs.15350.

9. Sales return by Jay of Rs.3800.

10. Loan from Bank of Maharashtra Rs.60000.

11. Drawing Rs.10000 by Ajay.

12. Vijay‟s insurance premium paid by bank of Rs.12000.

13. Cash paid to Mr. Sanjay of Rs.15000.

Gross Loss: » 14750=00 Nett Loss: » 29750=00 Balance Sheet: » 755800=00

 Voucher Assignment No. – 04

Company Name: » (Your Roll No.) Voucher F7, F8, F9 No. 04

Ledger Account Group Amount

Milind‟s Capital A/c 170000
Bata Ltd. Sundry Creditors 90000
Lakhani Shoes Co. Sundry Creditors 55000
Outstanding Salary 6100
Furniture 200000
Shoe Park Sundry Debtors 125000
Shoe Palace Sundry Debtors 23000
Cash 15000
State Bank of India 23000
Stock 20100
Action Shoes Co. Sundry Creditors 85000

Transactions: »
1. Leather shoes Purchased from Action Shoes Co. for Rs.4500.

2. Sandals sold to Shoe Park for Rs.12250.

3. Leather Shoes sold to Shoe Palace for Rs.23000.

4. School shoes purchased from Lakhani Shoes Co. for Rs.5700.

5. Outstanding Salary paid Rs.6100.

6. Purchase Books from Dnyansankul Prakashan on credit of Rs.3450.

7. Cash transfer in State Bank of India Rs.13000.

8. Paid Telephone charges to BSNL of Rs.4000 by cheque.

9. Charge depreciation @10% on furniture.

10. Dividend received in State Bank of India Rs.800.

11. School shoes sold to Shoe Palace for Rs.15000.

 12. Rs.23000 received from Shoe Palace in Cash.

13. School shoes and Sandals purchased from Bata Ltd. of Rs.43000.

14. Paid electricity charges to MSEDCL of Rs.4000 by cheque No.564121.

15. Discount received in Cash Rs.500.

16. Rs.5000 deposited in SBI Bank.

17. Paid Cash to Mr. Kadam for Advertisement Charges Rs.3000.

18. Paid Telephone Charges of Rs.251 by Cash.

19. Paid salary to Mr. Sanjay Rs.7000 by cheque.

20. Cash withdrawn for personal use of Rs.11000 by Bank.

Gross Loss: » 2950=00 Nett Loss: » 39901=00 Balance Sheet: » 445650=00

 Voucher Assignment No. – 05

Company Name: » (Your Roll No.) Voucher F7, F8, F9 No. 05

Last Year Balances: » Capital = 388000, Building A/c = 300000, Machinery A/c =

50000, Furniture A/c = 20000, Cash-in-Hand = 15000, Bank of India A/c = 3000

1. Anand borrowed Rs.25000 from his friend Ratan & Invested in Business.
2. Purchased goods worth Rs.2000 on credit from M/s Kishor & Co. subject
to Trade Discount 2%
3. Credit sales of Rs.4000 to Kamat.
4. Cash sales Rs.2000 to Shinde.
5. Purchased of Furniture costing Rs.1000 of which Furniture of Rs.200 was
for residential quarters of Anand.
6. Received cash Rs.1980 from Kamat on Account & he was allowed Cash
Discount Rs.20.
7. Cash Purchas of Rs.1000 paid carriage Rs.20.
8. Withdrawn from bank Rs.2000 for office use.
9. Returned goods of Rs.60 to M/s Kishor & co.
10. Paid cash Rs.990 to M/s Kishor & Co who allowed us discount Rs.10
11. Received commission Rs.1000 from M/s Shah & sons in cash.
12. Sale of goods to Kadam on credit Rs.500
13. Distributed goods of Rs.500 as a free sample.
14. Anand used goods of Rs.1000 for his private use
15. Paid Rs.500 to shashi on behalf of our creditor M/s Kishor & Co.
16. Our debtor Kamat paid our office rent Rs.2000 in Cash.
17. Received goods return by Kadam Rs.50
18. Anand brought into business sales proceed of his personal scooter
Rs.2500
19. Invested Rs.2000 in the shares of Eagle co. Ltd.
20. Received Cheque of Rs.445 from Kadam in full settlement of his dues.

Gross Profit: » 5050=00 Nett Profit » 301=00 Balance Sheet: » 418215=00

 Cost Centres

What are the Cost Centres?

Income and expenses of business affect ledger account. When business is operated
through various branches or departments then cost centres are created to allocated business
expenses or income. Branch / department wise all revenue or non-revenue items can be
allocated to Cost Centres.
A Cost Centres is a location, persons or item of equipment (or group of these), in
relation to which cost may be ascertained and used for the purpose of cost control.
Any raw material, labourer other input used by an organization for the manufacturing
process is cost which is Allocatable as direct or indirect cost to cost centres.

Costing: Why does a manufacturing organization requires costing?

Every manufacturing organization needs to keep on track of cost with a view to
controlling them & keeping them at the optimum level, which maximize efficiency and
product value.
According to Ryall‟s dictionary of costing, cost is the sum of three groups or
components.
1. The purchase or transfer price of materials.
2. The cost of the hire of labour.
3. The expenditure incurred in achieving the desired product or result.

Note: » Cost Centres are applicable for (means following under groups only)
1) Expenses Ledger A/c
2) Income Ledger A/c
3) Sales Ledger A/c
4) Purchase Ledger A/c
 Cost Centre Assignment No. - 01

Company Name: » (Your Roll No.) Cost Centre Ass. No. 01

Activate F11: » Accounting Features
Maintain cost centres ? Yes
Maintain more than one payroll or cost category ? Yes

Prepare the following ledgers in your company: »

Ledgers A/c Group Types of A/c Amount
Amol‟s Capital A/c Capital A/c Cr 200000
Kalyan‟s Capital A/c Capital A/c Cr 180000
Motor Car Fixed Assets Dr 55000
Loan from UCO Bank Cr 80000
Land & Building Dr 75000
Loan from Sanjeev Cr 30000
State Bank of India Dr 108000
Mayur trading A/c Sundry Creditors Cr 45000
Mahesh Enterprises Sundry Debtors Dr 30000
Stock Stock-in-Hand Dr 115000
Cash Dr 27500
Mandar Trading Co. Sundry Creditors Cr 35000
State Bank of Hydrabad Bank OCC A/c Cr 5000
Abhimanyu Enterprises Sundry Debtors Dr 50000
Outstanding Salary Provision Cr 7500
Furniture Dr 107000
Shares of IDBI Investment Dr 15000

Create Cost Categories: » Accounts Info.

Cost Categories: 1] Salesman
2] Branch

Cost Centres:
Category Create Cost Centres Under
Salesman Rakesh Primary
Salesman Kunal Primary
Branch Bombay Branch Primary
Branch Pune Branch Primary
Primary Cost Category General Primary
Pass the following Voucher Entries: »
1. Salary paid Rs.15000 in cash.
Branch: » Bombay Branch Rs.8000, Pune Branch Rs.7000.

2. Outstanding salary paid Rs.4500 in Cash.

3. Goods sold to Mahesh Enterprises Rs.15000.

Branch: » Bombay Branch Rs.15000
Salesman: » Rakesh Rs.10000, Kunal Rs.5000.

4. Goods sold to Mahesh Enterprises Rs.10000.

Branch: » Pune Branch Rs.10000
Salesman: » Rakesh Rs.10000.

5. Cash paid to Mayur Trading Co. Rs.50000.

6. Cash received from Mahesh Enterprises Rs.40000.

7. Cash deposited in State Bank of India Rs.35000.

8. Office Rent paid through State Bank of India Rs.20000.

Branch: » Bombay Branch Rs.12000, Pune Branch Rs.8000.

9. Goods purchased from Mandar Trading Co. Rs.65000.

Branch: » Bombay Branch Rs.30000, Pune Branch Rs.35000.

10. Dividend received from State Bank of India Rs.1500.

Primary Cost Category: » General

11. Goods sold to Abhimanyu Enterprises Rs.70000.

Branch: » Bombay Branch Rs.70000
Salesman: » Kunal Rs.50000, Rakesh Rs.20000.

12. Amount paid to Rs.75000 to Mandar Trading Co. through Ch.No.236557

(SBI) Rs.60000 and balance Rs.15000 in Cash against bill.

13. Goods sold to Abhimanyu Enterprises Rs.55000.

Branch: » Pune Branch Rs.55000
Salesman: » Rakesh Rs.25000, Kunal Rs.30000.

14. Goods sold to Mahesh Enterprises Rs.25000.

Branch: » Bombay Branch Rs.25000
Salesman: » Kunal Rs.25000.
15. Travelling expenses paid in Cash Rs.10000.
Branch: » Bombay Branch Rs.6000, Pune Branch Rs.4000.

16. Amount received from Abhimanyu Enterprises Rs.105000 through

Ch.No.122436 (SBI) Rs.80000 and remaining through by Cash.

17. Goods purchases from Mayur Trading Co. Rs.20000.

Branch: » Pune Branch Rs.20000.

18. Goods sold to Mahesh Enterprises Rs.15000.

Branch: » Pune Branch Rs.15000
Salesman: » Rakesh Rs.15000.
19. Depreciation charged on Furniture @10%, Motor Car 5%, and Land &
Building 7.5%.
Branch: » Allocate amount equally for Both Branches.

20. Telephone expenses paid in cash Rs.8000.

Branch: » Bombay Branch Rs.3500, Pune Branch Rs.4500.

21. Goods purchased from Mandar Trading Company Rs.12000.

Branch: » Pune Branch Rs.12000.

22. Paid commission @5% turnover achieved by the Salesman.

Note for 22 nd entry: » Gateway of Tally  Display  Statements of

Accounts  Cost centres  Category summary
 Salesman.

Gross Profit: 93000=00 Nett Profit: 12925=00

Balance Sheet: 562925=00 Trial Balance: 796000=00
 Bank Reconciliation
The company makes cheque payment to a particular party. Entry of that cheque is
made to the book of Accounts on the date of issuing cheque. Entry of this transaction is not
done in Bank passbook on the same day. It is done when that cheque is cleared from the
company account to the account of the account of the party. Till then a balance is displayed
between the bank passbook and company accounts books.
Also when a cheque is received by the company from a party, its entry is made on the
date of receipt in the accounts books. It is entered into bank passbook when the cheque is
deposited and credited to the company account. Once again a difference between balance in
bank passbook and accounts books is displayed.
When monthly bank account statement is received at the end of that month it reflects
cleared cheques and dates of clearance.
Make the entries accordingly in Tally and show cheque clearance. It is called „Bank
Reconciliation‟. Similarly interest accrued and interest cut from the bank account has to be
entered according to the entries in the bank statement. Then balances in the bank & company
accounts book Tallies.
Note: » Gateway of Tally  Display  Accounts Books  Cash / Bank Books  Select
Bank name of the required  Select Month  Press F5 of Button bar for
Reconciliation.

Adjustment Entries
Let‟s take an example to learn adjustment. Furniture worth Rs.10000 is purchased for
business. It has wear and tear which cases loss in its value. This loss or reduced value of
Furniture is carried forward in the next financial year. Entry of deduction of furniture value
has to be made. This entry is called „Adjustment Entry‟.
Illustration: »
Create a company in Tally & then make the voucher entries.
Transaction for Adjustment Entries (In the books of M/s Nitin Enterprises)
1. 01/05/2017: » On the1st May Company had decided to insure their property, for that
purpose insurance premium paid Rs.1200.
2. 31/03/2018: » 10% Depreciation charged on Machinery.
3. 31/03/2018: » 20% Depreciation charged on Furniture.
4. 31/03/2018: » For the year ending company is liable to pay Rs.4000 as a salary to Mr.
Sanjay for the month of March.
5. 31/03/2018: » Commission is to be received Rs.3000 for the month of March.
Opening Balance: » Capital – 17500
Cash – 50000
Furniture – 30000
Machinery – 45000
HDFC Bank – 50000
 Inventory

Introduction to Inventory: »
Inventory consists of Raw materials, items available for sale or in the process of being
made ready for sale (work-in-process). In other words inventory is the money invested by an
organization on raw materials work-in-process and finished goods for expected Future Sales.
Hence, the funds thus looked cannot be used for other purpose until sales are realized.
Inventory is listed as an Organization‟s Balance Sheet because it is converted into Cash upon
sale. Inventories are Assets.
Held for sale in the course of business
In the process of production for such sale
In the form of materials or suppliers to be consumer in the production process or in the
rendering of sale
Till now we have learnt monitory transactions in a business. They include money that
has come in, goes out, Expenses, Income, Purchase, Sales, etc. All these transactions are
related to money. Inventory means stock maintenance. In this a record of rates and quantities
of items are maintained. Record of quantity purchased, sold and in stock, etc. is maintained
in inventory.
Tally.ERP9 provides the facility of inventory for manufacturers, distributors,
wholesalers or traders. Inventory means to record all types of inventory transactions using
goods purchased, sold, receipt notes, delivery notes, stock journals, manufacturing journals
and physical stock journals, etc.

Terminologies used in Inventory: »

Unit of Measure: »
Stock items are purchased or sold on the basis of quantity. The quantity is
measured by units. Hence, it is necessary to create units of measure. You can have
simple units such as Numbers, Meters, Kilograms, Boxes, Litters, Quantity, Rolls,
Pieces, Pairs etc. or Compound units like of 10 pieces [1 Box=10 Pieces].

Stock Group: »
Stock group in inventory are similar to group in accounting masters. They are
helpful in the classification of stock items. You can group stock items under different
stock groups to reflect their classification based on some common features such as
brand name, product type, quantity, etc. Grouping enables you to locate stock items
easily and report their details in statements.
 Stock Categories: »
Stock Category offers a parallel classification of stock items like Stock Group.
Classification is done based on similarity in behaviour.
The advantage of categorizing items is that you can classify the stock items
(based on functionality) together across different stock groups which enable you to
obtain reports on alternatives or substitutes for a stock item.

Stock Items: »
Stock items refer to goods that you manufacture or trade. It is the primary
inventory entity and is the lowest level of information on your inventory. You have to create
a stock item in Tally. For each inventory item that you want to account for.
By default, Stock Item option is enable in Tally under Inventory Info.

Godowns: »
It is the place where goods are stored. When goods are sold or purchased from a
single place, then godown is not required. When goods are sources from various places then
godowns are required. Ex. Shop, Warehouse, etc.

Bill of Materials: »
A bill of materials is a list of constituent items along with quantity details that
can be allotted for the manufacture of a certain product-by-product or likewise. This facilities
immediate reduction in stock of the item automatically, this process of listing the items that
make up another item is made possible in Tally by enabling the bill of materials facility.
Bill of material (BOM) is created only for those items that are being assembled in
house for trading items you do not need a BOM. Therefore, you need to specify a BOM at
the time of creating a stock item or when altering its master.

Price List: »
The organization which deal in multiple products, maintains a list of all the item
details for the purpose of reference. This list is called as „Price List‟. The price list is
designed keeping in mind the nature of buyer, as there may be different kinds of buyers,
considering the quantities they buy, the rate may change. All these information can be
maintained by using the facility of multiple price level.
Voucher Types for Inventory: »
F9: Purchase: »
It affects both accounting books and inventory books. If the bill is received on
the date of purchase then it is entered into „Purchase Voucher‟. In short if goods and bill for
those goods are entered on the same date then that entry is made in „Purchase Voucher‟.

F8: Sales: »
This affects both accounting book as well as inventory book. If the bill is
dispatched along with the goods sold to the customer on the same date that is entered into
„Sales Voucher‟. In short when bill and goods are sent on the same date, then that transaction
is entered into the „Sales Voucher‟.

F5 (Alt+F5): Debit Note: »

The company has received goods and bill for those goods but some of the goods
are returned to the party then entry of this transaction is made in „Debit Note‟ voucher type.
In short when goods are returned after purchasing them, the transaction is entered into a
voucher type „Debit Note‟.

F6 (Alt+F6): Credit Note: »

The company has sold some goods and dispatched them but some of these
goods have come back then that transaction entry is made in „Credit Note‟ voucher type. In
short, when goods are returned to the company by a party after dispatch of bill, entry of that
transaction is made in voucher type „Credit Note‟.

F9 (Alt+F9): Receipt Note: »

Goods are received but bill is not received along with the goods. It is being set
later, then entry of that transaction is made in voucher type „Receipt Note‟. In short, when
the date of goods receipt and bill receipt are different, entry of that transaction is made in
voucher type „Receipt Note‟.

F8 (Alt+F8): Delivery Note: »

When the company has dispatched goods but the bill for goods sold is not
dispatched along with the goods, and is being sent later, then that transaction is entered into
„Delivery Note‟ voucher type. In short, when goods are returned by the party after dispatch
of bill, then the entry of that transaction is made into voucher type „Delivery Note‟ and when
the bill is dispatched, its entry is made into voucher type „Sales‟.
 F6 (Ctrl+F6): Rejection In: »
Goods are sold but the bill is not dispatched along with the goods and some of
the goods sold are returned by the party before sending the bill then this transaction is
entered into voucher type „Rejection In‟.

F5 (Ctrl+F5): Rejection Out: »

Goods are purchased but some of them are returned before the receipt of bill
then this transaction is entered into the voucher type „Rejection Out‟.

F7 (Alt+F7): Stock Journal: »

The company has more than one godown and goods are transferred from one
godown to another, then this transaction is entered into the voucher type „Stock Journal‟.

F9 (Ctrl+F9): Purchase Order: »

An order placed to the seller before purchasing goods is called „Purchase
Order‟. Detailed information about quantity, type of goods, etc. is conveyed to the party
through „Purchase Order‟.

F8 (Ctrl+F8): Sales Order: »

Written order of the goods sold to a party is sent before actual sale. It is called
„Sales Order‟. Goods are dispatched only after approval of the sales order by the party. Sales
order is written record about goods sold, Qty of goods, etc. with the company.

F10 (Alt+F10): Physical Stock: »

This voucher type is to calculate and enter the stock in the godowns.
 Inventory Assignment No. – 01
Name of Company: » (Your Roll No.) Inventory Ass. No. 01

Active F11: » Inventory Features

Integrate accounts and inventory ? Yes
Enable invoicing ? Yes
Record purchases in invoice mode ? Yes

Balance Sheet
Liabilities Amount Assets Amount
Capital 170000 Furniture 200000
Sundry Creditors ---- Cash 15000
Bata Ltd. 90000 State Bank of India 23000
Lakhani Shoes Company 55000 Sundry Debtors ----
Action Shoes Co. 85000 Shoe Park 125000
Rent Expenses Payable 6100 Shoe Palace 23000
Stock as Under 20100
(No Need to Create)
406100 406100

Stock Group: » Shoes Under: » Primary

Units of Measure: »
Type : Simple
Symbol : Prs
Formal Name : Pairs
Number of decimal places :0

Stock Items: »
School Shoes 10 Pairs @ Rs.125
Leather Shoes 25 Pairs @ Rs.450
Sport Shoes 15 Pairs @ Rs.250
Sandals 22 Pairs @ Rs.175
Transactions: »
1. 10 Sandals sold to Shoe Park @ Rs.225 per prs.

2. 18 Leather Shoes purchased from Action Shoes co. @ Rs.450 per prs.

3. 5 Sport Shoes purchased from Lakhani Shoes Co. @ Rs.300 per prs.

4. 7 School Shoes sold to Shoe Palace @ Rs.250 per prs.

5. Rent Expenses payable paid Rs.5000 in Cash.

6. Rs.100000 received from Shoe Park by Ch. No.454142.

7. Telephone expenses Rs.2500 paid by Ch. No.087451.

8. Rs.55000 paid to Lakhani Shoes Company by Ch. No.087452.

9. Rs.8000 salary paid in Cash.

10. Rs.23000 received from Shoe Palace in Cash.

11. Charge depreciation @ 10% on Furniture.

12. Interest received at State Bank of India Rs.800.

13. 5 Leather Shoes sold to Amar Footware @ Rs.700 per prs.

14. Outstanding salary provided Rs.3000.

15. 12 Sandals purchased from Lakhani Shoes Co. @ Rs.200 per prs.

16. 9 Sport Shoes purchased from Bata Ltd. @ Rs.300 per prs.

17. 15 Sandals sold to Shoe Palace @ Rs.400 per prs.

18. Actual 10 sandals were at the Physical Verification.

19. Discount received in Cash Rs.500.

20. Rs.5000 deposited into Bank.

Gross Profit: 5963.24 Nett Loss: 23236.76

Balance Sheet: 357800=00 Trial Balance: 375600=00
 Inventory Assignment No. – 02

Name of Company: » (Your Roll No.) Inventory Ass. No. 02

Active F11: » Activate the main features for Inventory Company

Integrate accounts and inventory ? Yes
Use separate discount column on invoices ? Yes
Maintain multiple Godowns ? Yes
Maintain stock categories ? Yes

Ledger A/c Group Amount

Ajay‟s Capital A/c Capital A/c 103000
Loan from Bank Secured Loan 60000
Loan from Akbar Unsecured Loan 40000
ICICI Bonds Investment 20000

Stock Group: » Bags Under: » Primary

Stock Category: » Bags Under: » Primary

Sub Group: » Cotton Bag Plastic Bag Leather Bag

Small Kids Bag Carry Bag School Bag
Sub Category
Big Shopping Bag Packing Bag Office Bag
Godowns: »
1. Cidco
2. Shop
3. Waluj

Units of Measure: » Nos Formal Name: » Numbers

Name of Items Quantity Godown Rate

1. Kids Bag 1000 nos at Cidco Rs. 20
2. Shopping Bag 500 nos at Shop Rs.100
3. Carry Bag 600 nos at Cidco Rs. 5
4. Packing Bag 2000 nos at Waluj Rs. 25
5. School Bag 400 nos at Shop Rs. 50
6. Office Bag 200 nos at Waluj Rs.200
Transaction: »
1. Purchased from Shanti Enterprises, Packing Bag 500 nos. @ Rs.27 at Shop &
Office Bag 400 nos. @ Rs.250 at Shop.

2. Sold to Sarang Traders, School Bag 200 nos. @ Rs.75 & Office Bag at 1%
discount, 100 nos. @ Rs.380 from Shop.

3. Sold to Anand Stores, Shopping Bags @ Rs.200 from Shop 350 nos. at 2%
discount.

4. Transferred Kids Bag 500 nos. from Cidco to Shop & Carry Bag 400 nos. from
Cidco to Shop.

5. Purchased from Shree Datta Enterprises, Carry Bag 200 nos. at Waluj @ Rs.6 &
Packing Bag 500 nos at Cidco @ Rs.30.

6. Sold to Sarang Traders, Kids Bag 400 nos. from Shop @ Rs.50 at 1% discount.

7. Ch. No.132562 received from Sarang Traders and deposited into Bank of India
Rs.35000.

8. Cash withdrawn from Bank of Rs.20000.

9. Ch. No. 282930 received from Anand Stores of Rs.60000.

10. Ch. No. 123143 paid to Shanti Enterprises of Rs.55000.

Gross Profit: 63020=00 Nett Profit: 63020=00

Balance Sheet: 340720=00 Trial Balance: 418720=00
 Inventory Assignment No. – 03
Name of Company: » (Your Roll No.) Inventory Ass. No. 03
Active F11: » Inventory Features
Integrate accounts and inventory ? Yes
Enable invoicing ? Yes
Record purchases in invoice mode ? Yes
Maintain multiple Godowns / Location ? Yes
Maintain stock categories ? Yes

Ledger Accounts
Particulars Group Amount
Sonu‟s Capital A/c Capital A/c 25000
Paragon Co. Ltd. Sundry Debtors 11000
Anchor Shoe Co. Sundry Debtors 9000
Bata Co. Ltd. Sundry Creditors 15000
Action Shoe Co. Sundry Creditors 20000
Cash Cash-in-Hand 12000
Deogiri Nagari Sahkari Bank Bank account 5000
Outstanding Salary Provision 2250

Stock Group: » Shoes Under: » Primary

Stock Category: »Shoes Under: » Primary

Sub Group: » Bata Action

Black School Shoes Leather Shoes
Sub Category White Sports Shoes ----
Color Chapels Ladies Sandals

Godowns: »
1. Main Location
2. Waluj
3. City Godown

Units of Measure: » Prs Formal Name: » Pairs

Stock Items Quantity Rate Godown

1. School Shoes 15 150 City Godown
2. Sport Shoes 20 300 Waluj
3. Chapels 35 150 Waluj
4. Leather Shoes 10 500 City Godown
5. Ladies Sandals 30 225 Waluj
Transactions: »

1. Sport Shoes 10 transferred from Waluj to Main Location.

2. 20 Chapels sold to Paragon Co. Ltd. @ Rs.200 per prs.

3. 18 Ladies Sandals purchased from Bata Ltd. @ Rs.225 per prs. at City Godown.

4. 5 Sport Shoes purchased from Action Shoe Co. @ Rs.325 per prs. at Waluj
Godown.

5. 7 Leather Shoes sold to Anchor Shoe Co. @ Rs.600 per prs.

6. 15 Sport Shoes purchased from Action Shoe Co. @ Rs.325 per prs. at Waluj.

7. 15 Ladies Sandals were transferred from Waluj to Main Location & 20 Sport
Shoes from Waluj to City Godown.

8. Ladies Sandals sold to Paragon Co. Ltd. were from City Godown 15 prs. and
Main Location 10 prs. @ Rs.375 per prs.

9. Ch. No. 121314 received from Paragon Co. Ltd. of Rs.15000.

10. Amount paid to Bata Co. Ltd. Rs.12000 through Cheque No. 201666.

11. Actual 15 Chapels and 2 Leather Shoes were at the physical verification.

12. Sport Shoes sold to Anchor Shoe Co. were from City Godown 12 prs. Main
Location 7 prs. and Waluj 5 prs. @ Rs.425 per prs.

Gross Profit: 7612.50 Nett Profit: 7612.50

Balance Sheet: 68412.50 Trial Balance: 88575=00
 Inventory Assignment No. – 04
Name of Company: » (Your Roll No.) Inventory Ass. No. 04
Active F11: » Integrate accounts and inventory ? Yes
Track Additional Cost of Purchase ? Yes

Ledger A/c Types of Dr / Cr Amount Rs.

Capital Cr 80000
Loan from Bank Cr 50000
Outstanding Wages Cr 3200
Land & Building Dr 60000
Telephone Deposit Dr 5000
Saraswat Co-Op. Bank Dr 25000
Cash Dr 42000
Shares of ICICI Dr 4000
Sales Tax Payable Cr 2800
Loan from Friend Cr 2500
Sapna Super Shopee Cr --
Maniyar Super Market Cr --
Supriya General Stores Dr --
Kiran General Stores Dr --

Stock Group: » Biscuits Under: » Primary

Units of Measure: » Pkts Formal Name: » Packets

Stock Items Opening Qty Rate

Parle 40 Pkts 4
Krack Jack 80 Pkts 9
Monaco 90 Pkts 10
Marie Gold 60 Pkts 12
Transactions: »

1. Krack Jack 60 Pkts & Marie Gold 50 Pkts sold to Supriya General Stores @ Rs.11
& @ Rs.14 respectively.

2. Purchased from Sapna Super Shopee Rs.2000 Marie Gold 160 Pkts purchased @
Rs.12 & expenses incurred during the purchase were Rs.80.

3. Purchased from Maniyar Super Market of Rs.2220 Monaco 60 Pkts @ Rs.10 each
with Transport Charges Rs.80 & Parle 100 Pkts @ Rs.4 each with Transport
Charges Rs.40 & Krack Jack 120 Pkts @ Rs.9 each with Transport Charges Rs.20.

4. Marie Gold 70 Pkts @ Rs.14 & Krack Jack 80 Pkts @ Rs.11 sold to Kiran General
Stores.

5. Paid to Sapna Super Shopee Rs.2000 in cash.

6. Received from Supriya General Stores Rs.1000 in cash & from Kiran General
Stores Rs.1500 through Ch. No. 298952.

7. Purchased from Maniyar Super Market Rs.1200 Krack Jack 130 Pkts @ Rs.9 with
Octroi Rs.30.

8. Sold to Kiran General Stores Krack Jack 90 Pkts @ Rs.11 & Marie Gold 65 Pkts
@ Rs.14.

9. Paid to Maniyar Super Market Rs.2420 through Ch. No. 258952.

Gross Profit: 727.88 Nett Profit: 727.88

Balance Sheet: 140227.88 Trial Balance: 144620=00
 Inventory Assignment No. – 05
Name of Company: » (Your Roll No.) Inventory Ass. No. 05
Active F12: » Accts / Inventory Info.
Enable component list details (Bill of Materials) ? Yes
Active F11: » Inventory Features
Integrate accounts and inventory ? Yes
Use debit and credit notes ? Yes
Record credit notes in invoice mode ? Yes
Record debit notes in invoice mode ? Yes

Sr. No. Ledger A/c Dr/Cr Amount

1 Ashish‟s Capital A/c 50000
2 Bharat‟s Capital A/c 50000
3 Sanket‟s Capital A/c 90000
4 Furniture & fixture 20000
5 Mohan‟s a/c Cr. 20000
6 Kamal‟s a/c Dr. 25000
7 Motor cycle 30000
8 Machinery a/c 37000
9 Mukesh a/c Cr. 35000
10 Building a/c 80000
11 Loan from Development Bank Cr. 50000
12 Computers 25000
13 Yogesh‟s A/c Dr. 35000
14 State Bank of Hydrabad Dr. 15000
15 Outstanding Wages 3500
16 Cash 26500
17 Unsecured Loan from Naresh 20000
Stock Group Units of measure Decimal places
Raw Material Kilograms 3
Finished goods Litres 3
Stock items
1) Soybean Seeds
Under: » Raw Material
Set components (BOM) ? No 1000 kgs @ Rs. 25/- Rs.25000
2) Soybean Oil
Under: » Finished goods
Set components (BOM) ? Yes Name of BOM: Soybean Seeds
Unit of manufacture – 1 Ltrs
Item- Soybean Seeds Qty-1.5 kgs
Create Voucher Types
Create : » Manufacturing Journal
Select type of voucher: Stock Journal
Use as a Manufacturing Journal ? Yes

Transactions: »
1) Cash withdrawn from Bank (Ch. No. 123456) Rs.10000

2) Soybean Seeds purchased from Sanjeet (1000 Kgs @ 22) Rs.22000

3) Manufacture 800 Ltrs Soybean Oil (Soybean seeds 1200 Kgs @ 23.50)

4) Soybean oil sold to Anil (500 ltrs @ 45) Rs.22500

5) Ch. No 456789 received from Kamal Rs.20000

6) Soybean seeds purchased from Devendra (1300 Kgs @ 22) Rs.28600

7) Manufacture 1000 Ltrs Soybean oil (Soybean seeds 1500 Kgs @ 22.91)

8) Soybean oil sold to Anil (600 Ltrs @ 45) Rs.27000

9) Soybean seeds purchased from Chandan (500 Kgs @ 22) Rs.11000

10) Soybean oil returned from Anil 100 Ltrs

11) Ch. No 123458 paid to Mukesh Rs.10000

12) Depreciation on Building Rs.8000

13) Soybean Seeds return to Chandan 150 Kgs Rs.3300

14) Furniture purchased from Disha furniture on Credit Rs.15000

Gross Profit: 11187.47 Nett Profit: 3187.47

Balance Sheet: 384987.47 Trial Balance: 434600=00
 Inventory Assignment No. – 06
Name of Company: » (Your Roll No.) Inventory Ass. No. 06
Activate F11: » Company Features – Inventory Features
Integrate accounts and inventory ? Yes
Enable zero-valued transactions ? Yes
Use separate actual and billed quantity columns ? Yes
Prepare the Ledger accounts in your company
Ledger A/c Group Types of A/c Amount Rs.
Sai Capital A/c Capital A/c Cr 50000
Shiva capital A/c Capital A/c Cr 50000
Hindustan lever Co. Ltd Sundry Creditors Cr 15000
Margo Co. Ltd Sundry Creditors Cr 10000
Bhushan Agency Sundry Debtors Dr 5000
Ganesh Agency Sundry Debtors Dr 9000
State Bank of India Bank A/c Dr 35000
Cash Cash-in-Hand Dr 35000
Stock Group Under
Soaps Primary
Shampoo Primary
Stock Sub Group Bartan Soap Soaps
Bath Soap Soaps
Detergent Soap Soaps
Hair Shampoo Shampoo
Units of measure : » Nos Formal Name : » Numbers
Bartan Soap Bath Soap Detergent Soap Hair Shampoo
Vim Bar 125gm Lux 125gm Rin Soap 125gm Lux Shampoo
Vim Bar 75gm Lux 75gm Rin Soap 75gm Panteen Shampoo 10ml
Santoor 125gm Wheel soap 125gm
Santoor 75gm Wheel Soap 75gm

Name of Item Qty Rate

Vim Bar 125gm 500 12.00
Vim Bar 75gm 550 10.00
Lux 125gm 400 10.00
Lux 75gm 350 8.00
Santoor 125gm 350 10.50
Santoor 75gm 800 7.50
Rin Soap 125gm 650 15.50
Rin Soap 75gm 425 10.50
Wheel Soap 125gm 625 5.50
Wheel Soap 75gm 925 4.00
Lux Shampoo 10ml 600 1.00
Panteen Shampoo 10ml 750 1.00
 Pass the Following Voucher Entries: »
Sr.
Particulars Actual Billed Rate
No.
1. Sale to Ganesh Agency
Lux 75gm 75 75 12.00
Vim Bar 125gm 175 175 15.00
2. Sale to Bhushan Agency
Lux 125gm 100 100 15.50
Lux Shampoo 10ml 100 -- --
Santoor 125gm 50 50 15.00
Panteen Shampoo 10ml 50 -- --
3. Distribution of Free Sample to Ganesh Agency
Wheel Soap 75gm 75 -- --
Vim Bar 75gm 50 -- --
4. Purchased From Hindustan Lever Co. Ltd.
Lux 125gm 175 125 11.00
Lux 75gm 125 125 8.00
Santoor 75gm 100 75 7.50
Santoor 125gm 50 50 10.50
5. Purchased from Margo co. Ltd
Rin Soap 125gm 100 100 15.50
Rin Soap 75gm 25 -- --
Wheel Soap 125gm 80 50 5.50
6. Free Sample received from Hindustan Lever Co. Ltd.
Lux Shampoo 10ml 100 -- --
Panteen Shampoo 10ml 50 -- --
7. Sale to Bhushan Agency
Lux 125gm 125 100 15.00
Santoor 125gm 150 130 14.50

Gross Profit: 1374.13 Nett Profit: 1374.13

Balance Sheet: 131661.63 Trial Balance: 139497.50
 Inventory Assignment No. – 07
Name of Company: » (Your Roll No.) Inventory Ass. No. 07
Other Company Features / Price list: »
The organisations which deal in multiple Productions maintain a list of all the item
details for the purpose of reference. This list is called as price list. The price list is designed
keeping is mind the nature of buyer as there considering these inform action can be
maintained by using the facility of multiple price level.
Activate F11: » Company Features – Inventory Features
Maintain Stock Categories ? Yes
Use multiple price levels ? Yes
Company Price Levels
1. In Aurangabad
2. Out of Aurangabad
3. Out of Maharashtra
Leger A/c Price Level Types of a/c Amount
Aditya traders In Aurangabad Dr 175000
Bajaj Auto Ltd Cr 200000
Bank of Baroda Cr 216000
Building A/c 300000
Dipali Traders Out of Aurangabad Dr 150000
Loan from Devgiri Bank 500000
Manish & Co Out of Maharashtra Dr 80000
Ramdas Capital 300000
Sales tax payable 50000
Sham‟s capital 350000
TVS Co Ltd Cr 150000
Rajesh & co Not Applicable Dr Nil

Stock in Hand: » Stock group Vehicle Primary

Categories Vehicle Primary
TVS Vehicle
Sub Group
Bajaj Vehicle
Bike Vehicle
Sub Categories
Moped Vehicle

Units of measure: » Nos Formal Name : » Number

Stock items: »
TVS Bajaj Name of Item Qty Rate
Bike Victor Boxer Victor 8 40000
Moped Scooty Sunny Scooty 12 22000
Boxer 9 33000
Sunny 10 18000
 Price list: » Stock Group Name: All Items
Price Level: In Aurangabad
Applicable From: 1-Apr-****
Quantities Rate
S.No. Particulars In Out of Out of
From: Less than
Aurangabad Aurangabad Maharashtra
1. Boxer -- 2 Nos 36000 37000 38000
2 Nos 5 Nos 35000 36000 37000
5 Nos -- 34000 35000 36000
2. Scooty -- 2 Nos 24000 25000 28000
2 Nos 6 Nos 23500 24500 25500
6 Nos -- 23000 24000 25000
3. Sunny -- 2 Nos 20000 21000 23000
2 Nos 8 Nos 19600 20600 22500
8 Nos -- 19100 20100 22000
4. Victor -- 2 Nos 43000 45000 47000
2 Nos 4 Nos 42500 44000 46000
4 Nos -- 41500 43000 44500

Transaction: »
1) 3 Boxers purchased from Bajaj Auto Ltd. at Rs.33000 each.
2) 5 Scooty sold to Aditya Traders.
3) Amount received Rs.190000 in cash Rs.20000 & through Ch. No 425656
Rs.170000 from Aditya Traders.
4) 1 Scooty sold to Deepali Traders.
5) 7 Victors & 2 Sunny sold to Manisha & Co.
6) Ch. No. 121213 paid to Bajaj Auto Ltd. Rs.200000
7) 4 Victor at Rs.40000 & 5 Scooty at Rs.22000 purchased from TVS Co. Ltd.
8) 3 Boxer @ Rs.36000 & 2 Scooty @ Rs.22600 sold to Rajesh & Co.
9) Amount received from Rajesh & Co. Rs.125000, Cash Rs.25000 & balance
through Ch. No. 112233

Gross Profit: 61200=00 Nett Profit: 61200=00

Balance Sheet: 1996200=00 Trial Balance: 2587200=00
 Inventory Assignment No. – 08
Name of Company: » (Your Roll No.) Inventory Ass. No. 08
Active F11: » Inventory Features
Integrate accounts and inventory ? Yes
Maintain Stock Categories ? Yes
Use debit and credit notes ? Yes
Record credit notes in invoice mode ? Yes
Record debit notes in invoice mode ? Yes
Ledger A/c Group Name Description
Capital A/c Capital Account
ICICI Bank Bank Account
D‟Mart Sundry Creditors Maintain Balance bill by bill – Yes Default Credit Period – 45 Days
Purchase A/c Purchase Account Inventory Values are affected – Yes
Sales A/c Sales Account Inventory Values are affected – Yes
Big Bazaar Sundry Creditors Maintain Balance bill by bill – Yes Default Credit Period – 45 Days
Reliance Fresh Sundry Debtors Maintain Balance bill by bill – Yes Default Credit Period – 45 Days
More Sundry Debtors Maintain Balance bill by bill – Yes Default Credit Period – 45 Days
Spencers Sundry Debtors Maintain Balance bill by bill – Yes Default Credit Period – 45 Days
Purchase
Purchase Account Inventory Values are affected – Yes
Return A/c
Sales Return
Sales Account Inventory Values are affected – Yes
A/c

Date Particulars
01/04/2020 Started business with cash Rs.200000/-
02/04/2020 Open a bank account in ICICI bank with depositing Rs.50000/-
Purchase goods from “D Mart” on credit Rs.4500/-
03/04/2020
50 ltr. Sunflower Oil @ Rs.90/- for each ltr of Gemini
Sold goods to Reliance Fresh on credit Rs.3315/-
04/04/2020
25.500 ltr. Sunflower Oil @Rs.130/- for each ltr of Gemini
05/04/2020 Paid cheque of Rs.4500/- to “D Mart” (Cheque No 505152)
Purchase goods from “Big Bazaar” on credit Rs.11325/-
07/04/2020
75.500 ltr. Groundnut Oil @Rs.150/- for each ltr of Fortune
Sold goods to “More” on credit Rs.7331.25/-
08/04/2020 30.750 ltr. Groundnut Oil @Rs.175/- for each ltr of Fortune
15 ltr. Sunflower Oil @Rs.130/- for each ltr of Fortune
 Received cheque of Rs.6000/- from “More”
10/04/2020
(Cheque No 611263, Bank Name : HDFC Bank, Branch : Kothrud)

Purchase goods from “D Mart” on credit Rs.18015/-

15/04/2020
300.250 ltr. Soyabin Oil @ Rs.60/- for each ltr of Fortune
Sold goods to “Spencers” on credit Rs.17000/-
20/04/2020
200 ltr. Soyabin Oil @ Rs.85/- for each ltr of Fortune

Return goods to “D Mart” Rs.3285/-

22/04/2020 3 ltr. Sunflower Oil @Rs.90/- for each of Gemini
50.250 Ltr. Soyabin Oil @ Rs.60/- for each of Gemini

Received goods return by “Spencer” Rs.2167.50/-

25/04/2020
25.500 ltr. Soyabin Oil @ Rs.85/- for each ltr of Fortune
30/04/2020 Paid Cheque of Rs.11325/- to “Big Bazaar”. (Cheque No 505153)

Prepare following inventory details

a) Create Units of Measure as follows
1) Simple Unit
i) Ltr (Litre)
ii) ml ( Mili Litre)
2) Compound Unit
i) 1 Ltr of 1000ml (Mili Litre)

b) Create Stock Groups as follows

1) Fortune
2) Gemini

c) Create stock Category as follows

1) Oil

d) Create Stock Items as follows

1) Ground Nut Oil - Fortune
2) Soyabin Oil - Fortune
3) Sunflower Oil - Gemini

Gross Profit: 6751=25 Nett Profit: 6751=25

Balance Sheet: 221481=25 Trial Balance: 245661=25
 Inventory Assignment No. – 09
Name of Company: » (Your Roll No.) Inventory Ass. No. 09
Last Year Balance sheet
Liability Amount Asset Amount
Capital A/c 100000 Cash 20000
Bills payables A/c 5000 State Bank of India A/c 80000
Outstanding Expenses A/c 10000 Bill Receivables A/c 8000
Prepaid Rent A/c 7000
Total 115000 Total 115000

Set the following options from F11: Features – F2: Inventory Features
a) Integrate accounts and inventory ? Yes
b) Maintain multiple Godowns ? Yes
c) Enable purchase order processing ? Yes
d) Enable sales order processing ? Yes
e) Use debit / credit notes ? Yes
f) Record credit notes in invoice mode ? Yes
g) Record debit notes in invoice mode ? Yes
h) Use tracking numbers (enables delivery and receipt notes) ? Yes
i) Use rejection inward and outward notes ? Yes

Gateway of Tally: » Inventory Info. : »

a) Stock Groups : Electronics

b) Units of Measure : Nos (Numbers)

c) Godowns : i) Warehouse
ii) Shop

d) Stock Item : i) TV
ii) Washing Machine
 Transactions: »
Date Particulars
Sent Purchase order to Guru Electronics for 100 TV @ Rs.10000/- each. Stock
01/04/2020 kept at warehouse after delivery
Received 100 TV from Guru Electronics @ Rs.10000/- each. Bill not yet
04/04/2020 received. Stock kept at warehouse
Received Purchase order from Pooja electronics for 50 TV @ Rs. 12000/- each
05/04/2020 TV to be sold from Shop

07/04/2020 Sent 50 TV from Shop @ Rs. 12000/- each to pooja Electronics. Bill not sent
Sent Purchase order to Guru Electronics for 50 Washing Machine @ Rs.7000/
10/04/2020 each. Stock Kept at Shop.
Received 50 Washing Machine @ Rs.7000/- each from Guru
13/04/2020 Electronics. Bill not yet received. Stock Kept at Shop.
5 Washing Machines will having some defective so that was return to Guru
15/04/2020 Electronics from shop

17/04/2020 Received 10 defective TV returned by Pooja Electronics. Stock Kept at Shop.

20/04/2020 10 Defective TV transfer from Shop to Warehouse

20/04/2020 Cash Sales Rs.20000/- (2 Washing Machine @ Rs.10000/- each)

21/04/2020 Sent 10 defective TV returned back to Guru Electronics from warehouse

22/04/2020 All Bills received from Guru Electronics

24/04/2020 All Invoices (Bills) sent to Pooja Electronics.

Send 2 TV and 1 Washing Machine returned back to Guru Electronics from
24/04/2020 Shop

25/04/2020 Received cheque of Rs.300000/- from Pooja Electronics (Ch. No.: 654897)

27/04/2020 Paid cheque Rs.288000/- Guru Electronics (Ch. No. 65004)

28/04/2020 Stock taking done. 3 TV & 2 Washing Machines Counted Less.

Gross Profit: 51183.67 Nett Profit: 51183.67

Balance Sheet: 1066183.67 Trial Balance: 1542000.00
 Inventory Assignment No. – 10
Name of Company: » (Your Roll No.) Inventory Ass. No. 10

Batch wise Details: Batch details are used to identify the movement of the inventory in
batches or lots. Batch – wise details is a requirement for those industries who maintain or
manufacture pharmaceutical goods. Batches / lots are also often used to monitor the date of
manufacture and the date of expiry.
Activate F11: » Company Features – Inventory Features
Maintain stock categories? Yes
Maintain batch-wise details? Yes
Set expiry dates for batches? Yes

Ledger A/c Debit Credit

Amount Amount
Shreya‟s Capital A/c 170000
Bank of Maharashtra 30000
D‟cold Total Co. Ltd. 45000
Dodal Enterprises 25000
Shanti Enterprises 20000
Vicks Co. Ltd. 46450
Wokhart Co. Ltd. 55000
Cash 20000
Stock (As Under)

Stock Group: Medicine Primary Medicine Primary

D‟cold Medicine Categories: Tablets Medicine
Sub Group: Vicks Medicine Syrup Medicine
Wokhart Medicine

Units of Measure:
Type: Simple Type: Compound
Bxs. Boxes Decimal Place: 1 First Unit Conversion Second Unit
Nos. Numbers Decimal Place: 0 Boxes of 100 Nos.
Boxes of 24 Nos.

D’cold Vicks Wokhart

Cold Act. Action 500 -
Tablets
D‟cold Total - -
- - Bro- Zebex
Syrup - - Sedex
`- - Zedex
Name Of Items (Tablets: Bxs. of 100 Nos)

Name of Items Qty Batch Mfg date Expiry Date Qty Rate
Act-123 Apr-17 Mar-21 10 1000
Action 500 30 Act-124 June-16 Aug-20 15 1000
Act-125 Jul-16 Dec-21 5 1000

Col-225 May-16 May-20 12 1100

Cold Act 25 Col-226 Aug-17 Aug-21 8 1200
Col-227 Jan-18 Jan-21 5 1300

Tot-323 Jan-17 Aug-21 15 950

D‟Cold Total 45 Tot-324 Oct-17 Oct-21 20 1050
Tot-325 Feb-18 Mar-21 10 1150

Name Of Items (Tablets: Bxs. of 24 Nos)

Name of Items Qty Batch Mfg date Expiry Date Qty Rate
Bro-623 May-17 May-21 16 1200
Bro- Zedex 25
Bro-624 Oct-17 Oct-21 9 1400

Sed-423 Mar-18 Mar-22 20 800

Sedex 50 Sed-424 Jul-17 Aug-21 14 900
Sed-425 Nov-17 Dec-21 16 1000

Zed-523 Apr-14 May-19 15 1000

Zedex 35
Zed-524 Sep-17 Oct-20 20 1200
Pass the Following Voucher entries:

Sr.
Transaction Mfg. Date Exp. Date
No.
1. Goods purchased From Wokhart Co. Ltd.
Sedex Batch No. Sed-427 8 Boxes @ Rs. 1050 each Apr-19 Aug-22
2. Goods Sold to shanti Enterprises
Cold Act Batch No. Col-226 2 Boxes @ Rs. 1500 each May-19 Jun-21
Bro Zedex Batch No. Bro-623 4 Boxes @ Rs. 1700 each Jun-18 Aug-22
3. Goods Purchased from D‟ Cold Co. Ltd.
Cold Act Batch No. Col-228 25 Boxes @ Rs. 1172 each Apr-18 May-21
D‟cold Total Batch No. Tot-325 15 Boxes @ Rs. 1050 Feb-18 Mar-21
4. Cash Received From Shanti Enterprises Rs. 15000 each
5. Goods sold to Dodal Enterprises
Action 500 Batch No. Act-124 6 Boxes @ Rs. 1400 each Jul-19 May-21
Sedex Batch No. Sed-423 8 Boxes @ Rs. 1492 each Oct-18 Aug-22
D‟Cold Total Batch No. Tot-324 4 Boxes @ Rs.1350. May-19 Jun-21
6. Ch. No 123123 Paid to D‟cold Co. Ltd. Rs. 35000
7. Goods Purchased from Wokhart Co. Ltd.
Zedex Batch No. Zed – 525 20 Boxes @ Rs. 1140 May-18 May-22
Bro-Zedex Batch No. Bro-624 17Boxes @ Rs. 1272 Oct-17 Oct-21
8. Goods sold to Dadal Enterprises.
D‟cold Total Batch No.Tot-325 21Boxes @ Rs. 1450 Feb-17 Mar-20
Zedex Batch No.Zed-524 5 Boxes @ Rs. 1600 Jan-18 Dec-21
(Note: Check for Batch no Zed 523)
9. Ch.No.420420 received from Dolal Enterprises amounted
to Rs. 50000
10. Goods purchase from Action Co.Ltd
Action 500 Batch No Act-126 20-25 Boxes @ Rs.1200 Jun-18 Oct-21
11. Sale to Dolal Enterprises Zedex 5 Boxes Rs.1400 Jan-18 Dec-22
Batch No. Zed-524
12. Cash paid to vicks Co.Ltd Rs.15000.

Gross Profit: 22296=00 Net Profit: 22296=00

Balance Sheet: 410920=00 Trial Balance: 469610=00
 Fiscal Environment of a Manufacturing Organisation
What is Tax?
Tax is fee charged by governments on a product income or activity.
Tax is most important sources of revenue of the governments. A tax is a compulsory contributing from
a person to the expenses incurred by the state in common interest of without reference to specific
benefits conferred on any individual.
Tax is generally classified into “Direct Tax” & “Indirect Tax”. If tax is levied directly on the
income or wealthy of a person, then it is a direct tax. e.g. Income Tax.
If tax is levied on the price of a goods or services then it is called an “Indirect Tax”. e.g. Excise
Duty. In the case of direct taxes, the person paying the tax passes on the incidence to another person.

Tax

Direct Tax
Indirect Tax
(Income Tax &
Wealth Tax) (GST)

Why are Taxes levied?

The reason for levy of taxes is that they constitute the basic source of revenue to the
government revenue so raised is utilized for meeting the expenses of government like defence,
provision of education, health care, infrastructure facilities like Roads, Dams etc.
Direct Tax:
Direct taxes are taxes collected by the government, directly from tax payers, through levies
such as income tax, wealth tax & interest tax. In the case of direct taxes, the incidence & burden of
paying the tax falls on the same person. It includes Corporation tax, Income tax and Social Security
Contributions.
Income Tax:
Income tax is a tax on the income of an individual. The persons liable to pay this tax are
determined based on the provisions of income tax act. According to taxation laws in India, every
company has to pay a tax on income earned. In India, the act prescribed five heads of income. These
are shown below.
Heads of Income
1) Income from salaries. 2) Income from house property. 3) Profits and Gains of business of
profession. 4) Capital gains. 5) Income from other sources.
Indirect Tax:
Indirect taxes are collected by the retail store the person who bears the ultimate economic
burden of tax can be shifted by the taxpayer to someone else. Indirect tax has the effect to raising the
price of the products on which they are imposed. It include sales tax, Per unit Tax, Value added tax,
Excise duty, Goods and Services tax, etc.
 GST
What is GST?
Goods and Services Tax bill is India‟s biggest reform in India‟s indirect tax structure. The
purpose of the bill is to introduce one single tax on supply of goods and services, from the
manufacturing stage until its delivering to the final consumer. The final consumer of the goods and/or
services will only have to bear the GST charged by the final dealer in the supply chain and avail set-off
benefits at all the previous stages. This means interim tax stages such as excise duties and service tax
and state levies like VAT will be absorbed under GST.
GST is essentially a consumption tax and is levied at the final consumption point. The principle
used in GST taxation is destination principle. It is levied on the value addition and provides set offs. As
a result, it avoids the cascading effect on tax which increases the burden on the end consumer. It is
collected on goods and services at each point of sale in the supply line. The GST that a merchant pays
to procure goods or services can be set off later against the tax applicable on supply of goods and
services.
Therefore, manufactures, wholesalers and retail merchants can avail tax credit mechanism
under GST regime. They would pay the applicable GST but it can mechanism. It will be charged at the
tax point-of-sale tax nature. A person who supplies goods and services would be liable to charge GST
from the consumer.

Features of GST
 GST to be levied on supply of goods or services.
 All transactions and processes only through electronic mode-non-intrusive administration.
 Deemed registration in three days.
 Input tax credit available on taxes paid on all procurements (Except few specified items).
 PAN based registration.
 Registration only if turnover more than Rs.40 Lakhs.
 Option of voluntary registration.
Benefits of GST
 Overall reduction in prices for consumers.
 Reduction in multiplicity of Taxes, Cascading and double taxation.
 Uniform rate of tax and common national market.
 Non-Intrusive Electronic Tax Compliance System.
 Broader Tax Base and decrease in “Black” transactions.
 Free flow of goods and services.
 No checkpoints.
Types of Dealer in GST
Mainly there are three types of dealer in the GST Era, a business will broadly be classified
under two brackets registered and unregistered. Within the registered bracket, there will be two
possibilities either the business may be a regular dealer or under composition scheme. Assuming that
that you are a regular dealer, you may thus be interacting with all three types of suppliers.
 Regular
Registered
Dealers Compositions
Unregistered

When you Purchase from Regular Dealer:-

When you purchases from a registered regular dealer, he will collect GST on his outward
supplies. Thus, you will be able to claim Input Tax Credit (ITC) on the GST paid to your supplier and
use the same to offset your output Tax liability.
Impact for you: -
In this scenario, you will be able to get the full ITC against the GST that you pay, it will have a
positive impact on your Cash flow.

When you Purchases from Composition Dealer:-

When you purchases from a registered dealer, who has availed the composition
scheme, the situation is slightly different. Since a composition dealer does not charge GST under the
specified rates, but has to pay GST at flat rate, he will not be able to issue a tax invoice to you.
Instead, he will issue a bill of supply. If the composition dealer, the GST charged will be passed on to
you as his cost. As a result, you will not have any ITC to claim.
Impact for you: -
These types of purchases will increase the cost of the product for you and may impact your
competitiveness in the market place.
When you purchases from an unregistered Dealer:-
When you purchases from an unregistered dealer, you will be liable to pay GST under
Reverse Charge Mechanism (RCM). Under this tax payment is made by the recipient on the purchases
of any goods or services. As per GST provisions, each taxpayer can take the input tax credit but in
order to avail the credit of tax paid, he needs to pay the taxes first to avail the credit on all those
purchases in the next month. Full credit of GST paid on goods on reverse charge is available;
whereas, reverse charge is restricted to nil partial or full in case of specified services.

Flow chart of GST CGST

(Central Goods and
Intra State Services Tax)
(Within the state) SGST
GST (State Goods and
(Goods and Service Services Tax)
Tax)
Inter State IGST
(Outside of the (Integrated Goods
State) and Services Tax)
When CGST, SGST or IGST is applicable?
To determine whether Central Goods and Services Tax (CGST), State Goods and Services Tax
(SGST) or Integrated Goods and Services Tax (IGST) will be applicable in a taxable transaction, it is
important to first know if the transaction is an Intra State or an Inter State supply.
Details Tax under previous regime Tax under GDT
Value of Manufacture
Production Cost Rs.200000 Rs.200000
Profit Margin (10%) Rs.20000 Rs.20000
Excise Duty (12%) Rs.26400 ----------
Total production Cost Rs.246400 Rs.220000
Value Added Tax (12.5%) Rs.30800 ----------
State GST (6%) ----------- Rs.13200
Central GST (6%) ----------- Rs.13200
Manufacture‟s Invoice value Rs.277200 Rs.246400

Value to Retailer
Cost of Product Rs.277200 Rs.246400
Profit Margin (10%) Rs.27720 Rs.24640
Total Value Rs.304920 Rs.271040
Value Added Tax (12.5%) Rs.38115 -----------
State GST (6%) ----------- Rs.16262
Central GST (6%) ---------- Rs.16262
Retailer Invoice Value Rs.343035 Rs.303564
Goods and Services Tax Identification Number (GSTIN) format
27 AAAAA0000A 1 Z 5
State Code Permanent Entity No. of Alphabet „Z‟ by Check Sum
Account the same default PAN Digit
Number (PAN) Holder in State

Understanding HSN Code & SAC Code meaning:

Harmonized System Nomenclature (HSN):
The GST rate list is categorized as per the HSN and SAC codes, allotted to each of the goods
or services in supply. HSN code meaning is Harmonized of Nomenclature, which is a 6 digit uniform
code developed by World Customs Organization (WCO) for goods and is universally accepted. SAC
code meaning can be easily understood as it stands for services. In India, we use 8 digit HSN and SAC
codes, where the first 2 digits of the code stands for the chapter where the goods or Services is listed
in the code list. Next 2 digits for the product. Last 2 digits are further classification of the product for
greater ease in classification.

HSN XX XX XX XX
Chapter Heading Sub Heading
Service Accounting Code (SAC):
Similar to the International HSN Codes, India has adopted a Services Accounting
Code (SAC) for all its services. GST will subsume the service tax, which covers all kinds of services.
Since GST is combination of goods and services both an equable classification for services is also
required. SAC will remain the same under the GST regime.

UQC (Unit Quantity Code) in GST:

UQC stands for Unit Quantity Code. The intent of using UQC in GST returns is to
maintain a standardised terminology for units of measures. Every tax payer could by using a different
names for the same unit of measures and this makes it difficult for the Department to track or arrive at
analyses. For examples, one tax payer could be using Kgs as the unit of measure and another tax
payer could be using Kilos as the unit of measure, to denote Kilograms.
Hence, UQC is being used by GSTN to maintain a standardised format for every unit of
measure. The UQC format used by GSTN is as per the Customs Act.
 Goods and Service Tax (GST)
Taxation - Assignment 01
1. Create New company with Name ‘Yashasvi Computers Sales and Service
(YCI)’.
2. Purchased Goods from Overseas Computers Sales and Service, Delhi on
credit.
Date Name Quantity (Nos) Rate GST
1.8.2021 Monitor-LG 10 4200 18%
Monitor-Gateway 10 5000 18%

3. Purchased following Goods from Techzone Computers Sales and Service,

Mumbai on credit.
Date Name Quantity (Nos) Rate GST
1.8.2021 Printer-Inkjet HP 10 4000 18%
Printer-laser Canon 10 5000 18%

4. Sold Goods to Deogiri Engg. College on credit.

Date Name Quantity (Nos) Rate GST
1.9.2021 Monitor-LG 9 8000 18%
Printer-Inkjet HP 9 6000 18%

5. Sold Goods to Rising IT Park, West Bengal by credit.

Date Name Quantity (Nos) Rate GST
1.9.2021 Monitor-Gateway 10 5500 18%
Printer-laser Canon 8 6500 18%

6. Sold Goods to Kedar jadhav by cash.

Date Name Quantity (Nos) Rate GST
1.9.2021 Printer-laser Canon 2 7000 18%

7. 2.9.2021 : Paid GST by cash.

Ans :
Date Transaction Basic GST Total
1.8.21 Purchase 92000 16560 108560
1.8.21 Purchase 90000 16200 106200
1.9.21 Sales 126000 22680 148680
1.9.21 Sales 107000 19260 126260
1.9.21 Sales 7000 1260 8260
2.9.21 Payment-GST -- -- 10440
 Multiple GST Tax rate items in single Invoice
Taxation - Assignment 02
1. Create New Company – GST PRACTICE (YCI Branch).
2. Enter Following Purchase Transactions
1.7.2021 Purchased from Supplier (Local).
LG Monitor @ 18% 10 Nos @ 5000/Nos
Item @ 5% 10 Nos @ 1000/Nos
Item @ 12% 10 Nos @ 100/Nos
Item @ 28% 10 Nos @ 100/Nos

1.7.2021 Purchased from Supplier (Interstate-Gujrat HSN –

24ABCDD1234A1Z5).
LG Monitor @ 18% 10 Nos @ 5000/Nos
Item @ 5% 10 Nos @ 1000/Nos
1.7.2021 Sold to Customer (Local).
LG Monitor @ 18% 5 Nos @ 6000/Nos
Item @ 5% 5 Nos @ 1100/Nos
2.8.2021 Goods returned by Customer (Local).
LG Monitor @ 18% 1 Nos @ 6000/Nos

2.8.2021 Goods returned to Supplier (Interstate-Gujrat HSN –

24ABCDD1234A1Z5)
LG Monitor @ 18% 2 Nos @ 5000/Nos
 TDS
Tax Deducted at Sources is an indirect method of collecting income tax. Tax deducted at
source is one of the modes of collecting income. Tax from tax payers. The buyer or payer (Deduct or).
The deduct or then remits this tax to the Income Tax Department within the stipulated time.
The buyers makes payments under various heads such as salary, Rent, Interest on Securities,
Dividends, Insurance Commission, Professional fees, Commission on Brokerage, Commission on
Lottery tickets to the sellers of these services. The tax on such of transactions is deducted at the time
of payment or credit to the account of the payee, whichever is earlier and remitted to the government
within the limits prescribed by the law.

TCS
Tax Collected at Source is the collection of tax at sources by the seller (collector) from the
buyer (collectee or payee) for trading purpose of the goods specified under section 206 (1) of the
Income Tax Act 1961. It is collected when accrued or when paid, whichever is earlier.

Customs Duty
Customs is a duty imposed on imported goods 12 of the Customs Act the goods are taxable
when they are brought into India that is when they fall under the expression “Imported goods”. Before
the clearance of any imported goods an importer has to company with prescribed customs clearance
formalities.