SHREE AGRASAIN COLLEGE

PROJECT ON COMPUTERISED ACCOUNTING &

E-FILING

B.COM, SEMESTER-VI, 2024

(UNDER CBCS MODE)

NAME OF THE CANDIDATE: - SNEHA SINGH

CU ROLL NUMBER: - 211434-11-0036

CU REGISTRATION NUMBER: - 434-1211-0239-21

COLLEGE ROLLEGE NUMBER: - 211659

COMPUTERISED ACCOUNTING WITH TALLY
Project Assignment: Tally Prime

Project Title:

Inventory Management System for XYZ Wholesalers

Project Description:

The XYZ Wholesalers is a growing company dealing in various FMCG (Fast-Moving Consumer
Goods) products. They currently manage their inventory using a manual system, which is becoming
increasingly inefficient and time-consuming. The company wants to implement a computerized
inventory management system using Tally Prime to improve efficiency, accuracy, and real-time data
access.

Project Objectives:

• Design and implement an inventory management system in Tally Prime.

• Automate the process of recording purchases, sales, stock adjustments, and other inventory
transactions.
• Generate reports on inventory levels, stock movement, and reorder points.
• Track and analyse inventory costs and profitability.
• Ensure data integrity and security.
• Train the staff on using the new system.

Project Deliverables:

• A fully functional inventory management system implemented in Tally Prime.

• User manuals and training materials.
• Reports on inventory levels, stock movement, and reorder points.
• Analysis of inventory costs and profitability.
• Recommendations for further improvement of the system.

Project Schedule:

• Week 1: Project initiation, requirement gathering, and system design.

• Week 2-3: Development and implementation of the system.
• Week 4: Testing and bug fixing.
• Week 5: User training and documentation.
• Week 6: Final presentation and report submission.

Project Resources:

• Tally Prime software

• Computer system with internet access
• Inventory data of XYZ Wholesalers
• Project team (including a project manager, developer, and tester)

Assessment Criteria:

• Functionality and completeness of the system.

• Accuracy and reliability of reports.
• User-friendliness and ease of use.
• Documentation quality.
 • Adherence to project schedule and budget.

Additional Notes:

• The project team should conduct thorough research on inventory management and Tally
Prime features.
• Regular communication and collaboration among team members are crucial for successful
project completion.
• The project team should consider future scalability and integration with other systems.
• The final presentation should clearly demonstrate the system's capabilities and benefits.

This project assignment provides a basic framework for the development of an inventory management
system in This project can modify and customize it as needed based on the specific requirements of
XYZ Wholesalers and your project team's capabilities.

The journal entries and how it will be reflected in tally

Journal Entries for Inventory Management

Inventory management involves various transactions that impact the financial statements. Here are
some common inventory-related journal entries and how they are reflected in Tally:

Purchase of Inventory:

Journal entry:
text
Debit: Purchases Account (for cost of goods purchased)
Credit: Accounts Payable Account (for liability to supplier)
Tally entry:

• Create a purchase voucher and enter details like supplier, date, quantity, and cost of the
purchased items. *Tally automatically updates the Purchases Account and Accounts Payable
Account.

###Payment to Supplier:

Journal entry:
text
Debit: Accounts Payable Account (reducing the liability)
Credit: Bank Account/Cash Account
Tally entry:

• Create a receipt voucher and enter the payment amount, date, and reference to the purchase
voucher. *Tally updates the Accounts Payable and Bank/Cash accounts accordingly.

###Sale of Inventory:

Journal entry:
text
Debit: Accounts Receivable Account (claim on customer)
Credit: Sales Account (revenue from sale)

Debit: Cost of Goods Sold Account

Credit: Inventory Account (reducing inventory value)
Tally entry:

• Create a sales invoice and enter details of the sold items, quantity, price, and customer
information.
• Tally automatically updates the Accounts Receivable, Sales, Cost of Goods Sold, and
Inventory accounts.

###Return of Inventory:

Journal entry:
text
Debit: Inventory Account (for returned goods)
Credit: Accounts Receivable Account (reducing customer claim)

Debit: Sales Return Account (reducing sales revenue)

Credit: Cost of Goods Sold Account (adjusting cost)
Tally entry:

• Create a sales return voucher and record the details of returned items, quantity, and customer.
*Tally updates the Inventory, Accounts Receivable, Sales Return, and Cost of Goods Sold
accounts.

###Payment Received from Customer:

Journal entry:
text
Debit: Bank/Cash Account
Credit: Accounts Receivable Account (reducing customer's debt)
Tally entry:

• Create a receipt voucher and enter details like the amount received, date, and reference to the
sales invoice.
• Tally updates the Bank/Cash and Accounts Receivable accounts.

##Additional Notes:

• These are basic examples, and additional journal entries may be required for more complex
transactions like discounts, transportation costs, and inventory write-offs. *Tally provides
various reports on inventory, purchases, sales, and costs, allowing for effective analysis of
inventory management.

Transaction Details with Numerical Example

Accounting Vouchers:

Purchase Voucher:

• Date: 01/01/202 4
• Supplier: ABC Suppliers (India)
• Items: 100 units of Item A at ₹10 0 per unit, 50 units of Item B at ₹200 per unit
• Total Cost: ₹20,000 (₹10,000 for Item A + ₹10,000 for Item B)
 • Payment Terms: Net 30 days

Journal Entry:
text
Debit: Purchases Account ₹20,000
Credit: Accounts Payable Account ₹20,000
Sales Voucher:

• Date: 05/01/2024
• Customer: XYZ Customers (India)
• Items: 80 units of Item A at ₹120 per unit, 40 units of Item B at ₹250 per unit
• Total Sales: ₹24,800 (₹9,600 for Item A + ₹10,000 for Item B)
• Payment Terms: Cash on Delivery

Journal Entry:
text
Debit: Accounts Receivable Account ₹24 ,800
Credit: Sales Account ₹24,800

Debit: Cost of Goods Sold Account ₹18,400 (80*₹100+40*₹200)

Credit: Inventory Account ₹18,400
Payment Voucher:

• Date: 08/01/2024
• Beneficiary: ABC Suppliers (India)
• Amount: ₹20,000
• Payment Mode: Bank Transfer

Journal Entry:
text
Debit: Accounts Payable Account ₹20,000
Credit: Bank Account ₹20,000
Receipt Voucher:

• Date: 05/01/2024
• Received From: XYZ Customers (India)
• Amount: ₹24,800
• Payment Mode: Cash

Journal Entry:
text
Debit: Bank Account ₹24,800
Credit: Accounts Receivable Account ₹2 4,800

Inventory Voucher:

• Date: 01/01/2024
• Transaction Type: Purchase
• Item: Item A
• Quantity: 100 units
• Unit Cost: ₹100
• Total Cost: ₹10,000
• Date: 01/01/2024
• Transaction Type: Purchase
 • Item: Item B
• Quantity: 50 units
• Unit Cost: ₹200
• Total Cost: ₹10,000
• Date: 05/01/2024
• Transaction Type: Sale
• Item: Item A
• Quantity: 80 units
• Unit Cost: ₹100
• Total Cost: ₹8,000
• Date: 05/01/2024
• Transaction Type: Sale
• Item: Item B
• Quantity: 40 units
• Unit Cost: ₹200
• Total Cost: ₹8,000

Payroll Voucher:

• Date: 31/01/2024
• Employee: John Doe
• Salary: ₹10,000
• Deductions: Income Tax ₹1,000, Social Security ₹500

Journal Entry:
text
Debit: Salaries Expense Account ₹8,500
Debit: Income Tax Payable Account ₹1,000
Debit: Social Security Payable Account ₹500
Credit: Bank Account ₹10,000

Day Book:

• Date | Particulars | Debit | Credit *---|---|---|---|

• 01/01/2024 | Purchases | ₹20,000 |
• 01/01/2024 | Bank | ₹20,000 |
• 05/01 /2024 | Accounts Receivable | ₹24,800 |
• 05/01/2024 | Bank | ₹24,800 |
• 31/01/2024 | Salaries Expense | ₹8,500 |
• 31/01/2024 | Income Tax Payable | ₹1,0 00 |
• 31/01/2024 | Social Security Payable | ₹500 |

Trial Balance:

• Account Name | Debit | Credit *---|---|---|

• Bank | ₹24,800 | ₹20,000
• Accounts Receivable | | ₹24,800
• Inventory | ₹200 |
• Purchases | ₹20,000 |
• Sales | | ₹24,800
• Cost of Goods Sold | ₹18,400 |
• Salaries Expense | ₹8,500 |
• Income Tax Payable | ₹1,000 |
• Social Security Payable | ₹500 |
 • Total | ₹54,400 | ₹54,400

Profit and Loss Account:

• Revenue:
• Sales | ₹24,800
• Expenses:
• Cost of Goods Sold | ₹18,400
• Salaries Expense | ₹8,500
• Net Profit | ₹7,900

Balance Sheet:

• Assets:
• Bank | ₹24,800
• Inventory | ₹200
• Liabilities:
• Accounts Payable |
• Income Tax Payable | ₹1,000
• Social Security Payable | ₹500
• Equity:
• Share Capital |
• Retained Earnings |
• Total | ₹25,000 | ₹25,000

Ratio Analysis:

• Current Ratio: 0.83(Bank/ Accounts Payable)

• Debt-to- Equity Ratio: 0 (Accounts Payable / Share Capital)
• Profit Margin: 31.85% (Net Profit / Sales)
• Return on Assets: 31.6% (Net Profit / Total Assets)

Tally Prime Entries for the Indian Scenario Example

Creating Masters:

1.Inventory Items: Create separate inventory items for "Item A" and "Item B" with their respective
costs (₹100 and ₹200). 2.** Ledger Accounts: ** Create ledger accounts for "Purchases," "Sales,"
"Cost of Goods Sold," "Accounts Receivable," "Accounts Payable," "Income Tax Payable," "Social
Security Payable," "Salaries Expense," and "Bank."

###Recording Transactions:

Purchases:

1.Go to "Gateway of Tally" -> "Inventory Vouchers" -> "Purchase." 2. Select "Item A," enter quantity
as "100," and unit cost as "₹100."Do the same for "Item B" with a quantity of "50" and unit cost of
"₹200." 3. Press "Enter" to accept the entries and save the purchase voucher.
Sales:

1.Go to "Gateway of Tally" -> " Inventory Vouchers" -> "Sales." 2. Select "Item A," enter quantity as
"80," and unit price as "₹120."Do the same for "Item B" with a quantity of "40" and unit price of
"₹250." 3. Press "Enter" to accept the entries and save the sales voucher.

Payments and Receipts:

1.Go to "Gateway of Tally" -> "Accounting Vouchers" -> "Payment." 2. Select "Bank" as the "Party
Name" and enter the amount as "₹20,000." 3. Press "Enter" to accept the entries and save the payment
voucher. 4.Repeat the same process for the receipt of "₹24,800" from "Accounts Receivable."

Salary Payment:

1. Go to "Gateway of Tally" -> "Accounting Vouchers" -> "Payment." 2. Select "Bank" as the "Party
Name" and enter the amount as "₹10,000." 3. Under "Details," select "Salaries" and enter the amount
as "₹8,500." 4. Create two additional rows for "Income Tax Payable" and "Social Security Payable"
with amounts of "₹1,000" and "₹500," respectively. 5.Press "Enter" to accept the entries and save the
payment voucher.

###Viewing Reports:

1.Go to "Gateway of Tally" -> "Display" -> "Day Book" to view the chronological record of
transactions. 2.Go to "Gateway of Tally" -> "Display" -> "Trial Balance" to view the summarized
balances of all ledger accounts. 3.Go to "Gateway of Tally" -> "Display" -> "Profit and Loss
Account" to analyse the profitability of the business. 4.Go to "Gateway of Tally" -> "Display" ->
"Balance Sheet" to assess the financial position of the business.

###Analyzing Ratios:

1. Calculate the current ratio by dividing "Bank Balance" by "Accounts Payable Balance." 2. Calculate
the debt-to-equity ratio by dividing "Accounts Payable Balance" by "Share Capital Balance"
(assuming no share capital yet). 3.Calculate the profit margin by dividing "Net Profit" by "Sales." 4.
Calculate the return on assets by dividing "Net Profit" by "Total Assets."

Day Book

Date Particulars Debit Credit

01/01/2024 Purchases ₹20, 000
01/01/2024 Bank ₹20,000
05/01/2024 Accounts Receivable ₹24,800
05/01/2024 Bank ₹24,800
05/01 /2024 Cost of Goods Sold ₹18,400
31/01/2024 Salaries Expense ₹8,500
31/01/2024 Income Tax Payable ₹1,000
31/01/2024 Social Security Payable ₹500
31/01/2024 Bank ₹10,000
Profit & Loss Account

Particulars Amount
Sales ₹24,800
Cost of Goods Sold (₹18,400)
Gross Profit ₹6,400
Operating Expenses
- Salaries Expense (₹8,500)
Net Profit (₹2,100)

Balance Sheet

Assets Amount Liabilities Amount

Bank ₹24,800 Accounts Payable ₹20,000
Inventory ₹200 Income Tax Payable ₹1,000
Social Security Payable ₹500
Total Assets ₹25,000 Total Liabilities ₹21,500
Equity ₹3,500
Total Equity & Liabilities ₹25,000

Ratio Analysis

• Current Ratio: 1.2(Bank / Accounts Payable)

• Debt-to-Equity Ratio: 5.86(Accounts Payable / Equity)
• Profit Margin: -8.47% (Net Profit / Sales)
• Return on Assets: -8.4% (Net Profit / Total Assets)

Notes:

• The day book records all financial transactions chronologically.

• The profit and loss account summarizes the company's revenues and expenses over a period.
• The balance sheet provides a snapshot of the company's financial position at a specific point
in time.
• Ratio analysis helps in understanding the financial health and performance of the company.
• The negative profit margin and return on assets indicate that the company is currently
operating at a loss.
• The high debt-to-equity ratio suggests that the company is heavily reliant on debt financing.

Scenario:

• You have two God owns: Godown A and Godown B. -You purchase 100 units of Item A at
₹100 per unit and place them in Godown A. -You transfer 50 units of Item A from Godown A
to Godown B. -You sell 80 units of Item A from Godown B at ₹120 per unit.

##Inventory Vouchers:

Purchase Voucher:

• Date: 01/01/2024
 • Supplier: ABC Suppliers (India)
• Item: Item A
• Quantity: 100 units
• Unit Cost: ₹100
• Total Cost: ₹ 10,000
• Godown: Godown A

Stock Transfer Voucher:

• Date: 05/01/2024
• Item: Item A
• Quantity: 50 units
• Unit Cost: ₹100 (as per purchase cost)
• Total Cost: ₹5,000
• From Godown: Godown A
• To Godown: Godown B

Day Book:

Date Particulars Debit Credit

01/01/2024 Purchases ₹10,000
01/01/2024 Bank ₹10,000
05/01/2024 Godown A (Inventory) ₹5,000
05/01/2024 Godown B (Inventory) ₹5,000
05/01/2024 Accounts Receivable ₹9,600
05/01/2024 Bank ₹9,600
05/01/2024 Cost of Goods Sold (Godown B) ₹4,000

Profit & Loss Account:

Particulars Amount
Sales ₹9,600
Cost of Goods Sold (₹4,000)
Gross Profit ₹5,600
Operating Expenses
- Salaries Expense (₹8,500)
Net Profit (₹2,900)

Balance Sheet:

Assets Amount Liabilities Amount

Bank ₹10,400 Accounts Payable ₹20,000
Inventory (Godown A) ₹1,000 Income Tax Payable ₹1,000
Inventory (Godown B) ₹1,000 Social Security Payable ₹500
Total Assets ₹12,400 Total Liabilities ₹21,500
Equity (₹9 ,100)
Assets Amount Liabilities Amount
Total Equity & Liabilities ₹12,400

Ratio Analysis:

• Current Ratio: 0.53(Bank / Accounts Payable)

• Debt-to-Equity Ratio: 2.3(Accounts Payable / Equity)
• Profit Margin: -30.21% (Net Profit / Sales)
• Return on Assets: -23.39% (Net Profit / Total Assets)

Notes:

• The day book now reflects the stock transfer transaction.

• The cost of goods sold is now calculated based on the inventory in Godown B.
• The negative profit margin and return on assets indicate a continued loss-making situation.
• The current ratio has worsened, indicating a potential liquidity issue.

Transaction Details with Notes and Narration

Inventory Vouchers:

Purchase Voucher:

• Date: 01/01 /2024

• Supplier: ABC Suppliers (India)
• Item: Item A
• Quantity: 100 units
• Unit Cost: ₹100
• Total Cost: ₹10,000
• Godown: Godown A
• Narration: Purchase of 100 units of Item A at ₹100 per unit from ABC Suppliers. The
inventory is placed in Godown A.

Stock Transfer Voucher:

• Date: 05/01/2024
• Item: Item A
• Quantity: 50 units
• Unit Cost: ₹100 (as per purchase cost)
• Total Cost: ₹5,000
• From Godown: Godown A
• To Godown: Godown B
• Narration: Transferred 50 units of Item A from Godown A to Godown B.

Sales Voucher:

• Date: 05/01/2024
• Customer: XYZ Customers (India)
• Items: 80 units of Item A at ₹120 per unit
• Total Sales: ₹9,600 (₹80 * ₹120)
• Godown: Godown B
• Payment Terms: Cash on Delivery
 • Narration: Sold 80 units of Item A from Godown B to XYZ Customers at ₹120 per unit.
Payment received on delivery.

###Notes:

• The purchase voucher clearly identifies the supplier, item details, cost, and the destination go
down (Godown A). *The stock transfer voucher specifies the item, quantity, unit cost, and the
source and destination god own. *The sales voucher indicates the customer, item details, price,
total sales value, the go down from which the items were sold, and the payment terms.

##Day Book:

Date Particulars Debit Credit Notes

01/01/2024 Purchases ₹10,000 Purchase of 100 units of Item A
01/01/2024 Bank ₹10,000 Payment made to ABC Suppliers for the purchase
Transfer of 50 units of Item A from Godown A to
05/01/2024 Godown A (Inventory) ₹5,000
Godown B
05/01/2024 Godown B (Inventory) ₹5,000 Receipt of 50 units of Item A in Godown B
05/01/2024 Accounts Receivable ₹9,600 Sale of 80 units of Item A to XYZ Customers
Receipt of payment from XYZ Customers for the
05/01/2024 Bank ₹ 9,600
sale
Cost of Goods Sold Cost of goods sold for the 80 units sold from
05/01/2024 ₹4,000
(Godown B) Godown B

Profit & Loss Account:

Particulars Amount Notes

Sales ₹9,600 Sales of 80 units of Item A
Cost of Goods Sold (₹4,000) Cost of 80 units sold from Godown B
Gross Profit ₹5,600
Operating Expenses
- Salaries Expense (₹8,500) Payment of salaries
Net Profit (₹2,900)

Balance Sheet:

Assets Amount Liabilities Amount Notes

Bank ₹10,400 Accounts Payable ₹20,000
Inventory (Godown A) ₹1,000 Inventory in Godown A (20 units of Item A)
Inventory (Godown B) ₹1,000 Inventory in Godown B (20 units of Item A)
Total Assets ₹12,400 Total Liabilities ₹21,500
Equity (₹9 ,100)
Total Equity & Liabilities ₹12,400
Ratio Analysis:

• Current Ratio: 0.53(Bank/ Accounts Payable)

• Debt-to-Equity Ratio: 2.3(Accounts Payable / Equity)
• Profit Margin: -30.21% (Net Profit / Sales)
• Return on Assets: -23.39% (Net Profit / Total Assets)

Additional Notes:

• This example demonstrates how detailed information and narration can enhance clarity and
understanding of individual transactions.
• It is important to maintain accurate and detailed records for better financial management and
analysis.

Ledgers

Purchases Ledger:

Date Particulars Debit Credit Balance Notes

01 /01/2024 ABC Suppliers ₹10,000 ₹10,00 0 Purchase of 100 units of Item A at ₹100/unit

Sales Ledger:

Date Particulars Debit Credit Balance Notes

05/01/2024 XYZ Customers ₹9,600 (₹9,600) Sale of 80 units of Item A at ₹120/unit

Inventory Ledger (Godown A):

Date Particulars Debit Credit Balance Notes

01/01/2024 Opening Balance ₹0 ₹0
01/01/2024 Purchases ₹10,000 ₹10,000 Purchase of 100 units of Item A
05/01/2024 Stock Transfer Out ₹ 5,000 ₹5,000 Transfer of 50 units of Item A to Godown B
05/01/2024 Closing Balance ₹5,000 50 units of Item A remaining in Godown A

Inventory Ledger (Godown B):

Date Particulars Debit Credit Balance Notes

01/01/2024 Opening Balance ₹0 ₹0
05/01/2024 Stock Transfer In ₹5,000 ₹5,000 Transfer of 50 units of Item A from Godown A
05/01/2024 Sales ₹4,000 ₹1,000 Sale of 80 units of Item A
0 5/01/2024 Closing Balance ₹1,000 20 units of Item A remaining in Godown B

Cash Book:

Date Particulars Debit Credit Balance Notes

01/01/2024 Bank ₹10,000 ₹10,000 Payment to ABC Suppliers for purchase
05/01/2024 Bank ₹9,60 0 ₹19,600 Receipt from XYZ Customers for sale
31/01/2024 Bank ₹10,000 ₹9,600 Payment of salaries

Notes:

• The purchases ledger shows the outstanding amount payable to the supplier.
• The sales ledger shows the amount receivable from the customer.
• The inventory ledgers track the stock movement and balance in each go down.
• The cash book records the cash receipts and payments.

Transaction Details with Additional Transactions

Inventory Vouchers:

Purchase Vouchers (10 additional purchases)

• Dates: 02/01/2024 - 11/01 /2024 (excluding weekends)

• Suppliers: Various suppliers
• Items: Various items (including Item A, B, and C)
• Quantities: Varying
• Unit Costs: Varying
• Total Costs: Varying
• God owns: Varying (Godown A and/or Godown B)
• Narrations: Detailed descriptions of each purchase, including supplier information, item
specifics, quantities, unit costs, total cost, and the destination go down.

Sales Vouchers (10 additional sales)

• Dates: 12/01/2024 - 21/01/2024 (excluding weekends)

• Customers: Various customers
• Items: Various items (including Item A, B, and C)
• Quantities: Varying
• Unit Prices: Varying
• Total Sales Values: Varying
• God owns: Varying (Godown A and/or Godown B)
• Payment Terms: Varying (cash, credit, etc.) *Narrations: Detailed descriptions of each sale,
including customer information, item specifics, quantities, unit prices, total sales value, the go
down from which the items were sold, and the payment terms.

##Day Book:

The Day Book will now include the details of the 20 additional transactions, with relevant debits and
credits for purchases, sales, inventory transfers, and other financial activities.

##Profit & Loss Account:

The Profit & Loss Account will reflect the impact of the additional transactions on the company's
revenues, expenses, and net profit.

##Balance Sheet:

The Balance Sheet will show the updated balances of assets, liabilities, and equity, taking into account
the effects of the additional transactions.
Ratio Analysis:

The ratios will be recalculated based on the new financial data, providing insights into the company's
liquidity, solvency, profitability, and efficiency.

##Notes:

• Due to the large number of additional transactions, it is not feasible to provide detailed
information and narration for each individual transaction. However, the overall principles and
format will remain consistent with the previous examples.
• The specific details of the additional transactions can be customized based on your
requirements and scenario.

Assumptions:

• Purchase transactions only involve Item A.

• Sales transactions involve a mix of Item A, B, and C.
• Inventory transfers occur between Godown A and Godown B.

Image:
text
+ ++ +
| | Purchases (10) ---- > | |
| Supplier | ------------------- | Inventory |
||||
+ ++ +
||
-------- | Godown A (20) | -------
||
||
| | Godown B (20) |
||
||
||
| | Sales (10) |
| Customer | ----- > |
|||
+ ++ +
Explanation:

• Purchases: The leftmost box represents suppliers, with arrows indicating the flow of
purchased items (10 transactions) into the inventory.
• Inventory: The middle box represents the inventory, with the number in parentheses
indicating the total quantity of items (20 units) distributed between Godown A and Godown B.
• Sales: The rightmost box represents customers, with arrows indicating the flow of sold items
(10 transactions) from either Godown A or Godown B.
• Arrows: The arrows represent the flow of goods and money during purchases and sales
transactions.
• Numbers: The numbers in parentheses indicate the total quantity of items involved in each
transaction type.
Notes:

• This is a simplified representation, and the actual flow of goods and money may be more
complex. The image does not show the specific details of each transaction, such as item
names, quantities, prices, or payment methods.
• This pictographic image can be used as a visual aid to understand the overall pattern of
financial transactions in the given scenario.

Pictographic Image of Tally Data Representation

Assumptions:

• Tally data includes purchases, sales, inventory, and ledger accounts. *Accounts are grouped
under relevant categories (e.g., Purchases, Sales, Inventory). *Entries within each account
represent individual transactions.

Image:
text
+ +
| Tally |
+ +
| Purchases | Sales |
+ +
|||||
| | Purchases Account | | Sales Account |
| | (10 Entries) | | (10 Entries) |
|| || |
| | Stock Transfer | | |
| | (1 Entry) | |
|| ||
+ +
| Inventory |
+ +
|||||
| | Godown A Inventory | | Godown B Inventory |
| | (20 Units) | | (20 Units) |
|| || |
+ +
| Ledgers |
+ +
|||||
| | Purchases Ledger | | Sales Ledger |
| | (1 Entry) | | (1 Entry) |
|| || |
+ +
Explanation:

• Tally Box: The top box represents Tally; the accounting software used to record and manage
financial data.
• Purchases and Sales Sections: The second row is divided into Purchases and Sales sections.
• Accounts: Each section contains account boxes (e.g., Purchases Account, Sales Account).
• Entries: Within each account box, individual transaction entries are represented by small
rectangles.
 • Inventory Section: The third row represents the Inventory section, with boxes for Godown A
and Godown B inventories, showing the total quantity of items in each go down.
• Ledgers Section: The bottom row represents the Ledgers section, with boxes for Purchases
and Sales Ledgers, showing a single entry for each transaction.
• Arrows: Arrows can be added to represent the flow of information between different
sections and accounts.

Voucher and Ledger Application with BRS

Voucher Application:

• Deposits in Transit: A credit voucher is created for the total amount of deposits in transit. This
voucher increases the bank balance in the cash book.
• Interest Earned by Bank: A credit voucher is created for the interest earned by the transit. This
increases the bank balance and also increases the interest income account in the ledger.
• Outstanding Checks: A debit voucher is created for the total amount of outstanding transit.
This decreases the bank balance in the cash book.
• Bank Charges: A debit voucher is created for the bank book. decreases the bank balance and
also increases the bank charges expense account in the ledger.
• Note Receivable Collected by Bank: A credit voucher is created for the amount of the note
receivable collected by the bank. This voucher increases the bank balance and also increases
the accounts receivable account in the ledger.
• Interest Income Earned: A credit voucher is created for the interest income bank. This
increases the bank balance and also increases the interest income account in the ledger.
• Cheque Deposited but Returned: A debit voucher is created for the amount of the cheque
deposited but bank. This decreases the bank balance and also decreases the accounts
receivable account in the ledger.
• Direct Payment to Supplier: A debit voucher is created for the amount of the direct payment
to the bank. This decreases the bank balance and also decreases the accounts payable account
in the ledger. Miscellaneous expenses paid by the bank: A debit voucher is created for the
miscellaneous expense paid by the bank. This voucher decreases the bank balance and also
increases the miscellaneous expense account in the ledger.
Ledger Application:

• Cash Book: The cash book is updated with the credit and debit vouchers related to the bank
reconciliation Ledger Application balance in the cash book should match the adjusted bank
balance.
• Bank Ledger: The bank ledger is updated with the credit and debit vouchers related to the
bank reconciliation Ledger Application balance in the bank ledger should match the adjusted
bank balance.
• Other Ledgers: Other ledgers, such as accounts receivable, accounts payable, interest income,
and bank charges, are updated with the credit and debit vouchers related to the bank
reconciliation statement.
Example:
Credit Voucher for Deposits in Transit
Date: March 31, 2024
Amount: ₹5,000
Narration: Deposits in transit for the month of March
Debit Voucher for Bank Charges
Date: March 31, 2024
Amount: ₹150
Narration: Bank charges for the month of March
Ledger:
Cash Book
Date | Particulars | Debit | Credit | Balance
---|---|---|---|---|
March 31 | Deposits in Transit | | 5,000 | 35,000
March 31 | Bank Charges | 150 | | 34,850

Bank Ledger
Date | Particulars | Debit | Credit | Balance
---|---|---|---|---|
March 31 | Outstanding Checks | 3,000 | | 32,050
March 31 | Deposits in Transit | | 5,000 | 37,050
March 31 | Interest Earned by Bank | | 200 | 37,250
March 31 | Bank Charges | 150 | | 37,100

Interest Income Ledger

Date | Particulars | Debit | Credit | Balance
---|---|---|---|---|
March 31 | Interest Earned by Bank | | 200 | 200
March 31 | Interest Income Earned | | 300 | 500
FINANCIAL TRANSACTION MANAGEMENT
WITH DBMS SOFTWARE-ACCESS
 Financial Transaction Management in Access
This assignment guides you through building a database in Access to manage financial
transactions.
**Scenario:
**You run a small business and need a better way to manage income and expenses. You want
an easy-to-use system to record transactions, categorize them, and analyse your financial
performance.
Database Design:
1. Tables:

• Transactions:
• Transaction (AutoNumber, Primary Key)
• Date (Date/Time)
• Description (Text)
• Type (Dropdown: Income, Expense)
• Category (Dropdown: Rent, Salary, Utilities, etc.)
• Amount (Currency)
• Account (Dropdown: Checking, Savings, Credit Card)
• Notes (Text)
• Categories:
• Categoric (AutoNumber, Primary Key)
• Category Name (Text)
• Accounts:
• Accounted (AutoNumber, Primary Key)
• Account Name (Text)
• Balance (Currency)

2. Queries:

• Expenses by Category: This query groups expenses by category and calculates the
total amount spent in each category for a specific time period.
• Income vs Expenses: This query compares total income and expenses for a selected
period, providing a quick overview of your financial health.
• Account Balances: This query displays the current balance of each account.
3. Reports:

• Transaction Summary: This report lists all transactions within a specific date range,
showing details like description, category, amount, and account.
• Monthly Expenses Breakdown: This report provides a categorized breakdown of
expenses for each month.
• Income and Expense Statement: This report summarizes income and expenses for a
selected period, calculating net profit or loss.
4. Forms:

• New Transaction: This form allows easy data entry for new transactions, including
date, description, type, category, amount, account, and notes.
• Edit Transaction: This form enables editing existing transaction details.
• Search Transactions: This form helps filter and find specific transactions based on
various criteria like date, category, or description.
Implementation Steps:
1.Create the necessary tables with appropriate data types and field properties.
2.Design forms for data entry and editing, linking them to the relevant tables.
3.Build queries to analyse and summarize financial information.
4.Develop reports to present data in a visually appealing and informative way.
5.Populate your database with sample data to test and refine your design.
Financial Transaction Management in Access: Detailed Breakdown
Tables:
1.Transactions:

Transaction: AutoNumber, Primary Key. Unique identifier for each transaction.

Date: Date/Time. Date and time of the transaction.

Description: Text. Brief description of the transaction.

Type: Dropdown. Selects between "Income" and "Expense".

Category: Dropdown. Selects the category of the transaction (e.g., Rent, Salary, Utilities).
This field should be linked to the Categories table.

Amount: Currency. Monetary value of the transaction.

Account: Dropdown. Selects the account associated with the transaction (e.g., Checking,
Savings, Credit Card). This field should be linked to the Accounts table.

Notes: Text. Optional field for additional information about the transaction.
2. Categories:

Categoric: AutoNumber, Primary Key. Unique identifier for each category.

Category Name: Text. Name of the category (e.g., Rent, Salary, Utilities).

3. Accounts:

Accounted: AutoNumber, Primary Key. Unique identifier for each account.

Account Name: Text. Name of the account (e.g., Checking, Savings, Credit Card).

Balance: Currency. Current balance of the account. This field should be updated
automatically based on transactions.

Relationships:

-Transactions table has a one-to-many relationship with both Categories and Accounts tables.
This means one transaction can belong to one category and one account, but one category or
account can be associated with many transactions.

Queries:
1.Expenses by Category:
SELECT tables. This (Transactions. Amount) AS Total Spent FROM Transactions INNER
JOIN Categories ON Transactions. Category= Transactions. Category Transactions. Type=
"Expense" AND Transactions. Type #Start Date# AND #End Date# GROUP BY Transactions.
Type BY Total Spent DESC; 2. Income vs Expenses:
SELECT SUM (CASE WHEN Transactions. Type= "Income" THEN Transactions. Type 0
END) AS Total Income, SUM (CASE WHEN Transactions. Type= "Expense" THEN
Transactions. Type 0 END) AS Total Expenses FROM Transactions WERE Transactions.
Type #Start Date# AND #End Date#; 3. Account Balances:
SELECT 3. Account Accounts;
Reports:
1. Transaction Summary:

• Include fields: Date, Description, Category, Amount, Account, Notes.

• Group by: Date (optional).
• Filter by: Date range, Category, Account. 2.Monthly Expenses Breakdown:
• Include fields: Month, Category, Amount.
• Group by: Month, Category.
• Filter by: Year. 3.Income and Expense Statement:
• Include fields: Income, Expenses, Net Profit/Loss.
• Filter by: Date range.
Forms:
1.New Transaction:
Include fields: Date, Description, Type, Category, Amount, Account, Notes.
Validate data: Ensure all required fields are filled and data types are correct.
2.Edit Transaction:
Similar to New Transaction form, but pre-populate fields with existing data and allow editing.
3.Search Transactions:
Include fields for filtering criteria: Date range, Category, Account, Description (keyword).

Financial Transaction Management in Access: Numerical Assignment with Pictographic

Presentation
Assignment:
1.Create an Access database to track financial transactions for your bakery.
2.Design tables, queries, reports, and forms as outlined in the previous sections.
3. Populate the database with sample transactions for one month, including both income and
expenses, based on the given percentages.
4. Generate pictographic representations for tables, queries, reports, and forms.

Pictographic Representations:
Tables: Use bar charts to visualize the distribution of records across different categories (e.g.,
number of transactions by category, account balances by account type).
Queries: Employ pie charts to depict the breakdown of expenses by category or the ratio of
income to expenses for a specific time period. *Reports: Utilize line charts to track trends in
income, expenses, or balances over time. *Forms: Consider using icons or symbols to
represent different data types or actions (e.g., a shopping cart icon for adding a new purchase
transaction).
Financial Transaction Management in Access: Indian Rupee Example
Scenario:
You operate a bakery café in India with the following income and expense categories:

Income:

Sales: 60%

Catering: 20%
Other Income: 20%

Expenses:

Ingredients: 40%

Rent: 20%

Salaries: 20%

Utilities: 10%

Marketing: 10%

Numeric Examples
Income:
Date: 2023-11-15; Description: Cake Sale; Type: Income; Category: Sales; ** Amount: ** ₹18,000

Date: 2023-11-22; Description: Bread Sale; Type: Income; Category: Sales; Amount: ₹12,000

Date: 2023-11-29; Description: Catering Order; Type: Income; Category: Catering; Amount: ₹ 8,000

Date: 2023-11-18; Description: Interest Earned; Type: Income; Category: Other Income; Amount:
₹500

Expenses:
Date: 2023-11-07; Description: Flour Purchase; Type: Expense; Category: Ingredients; Amount: ₹4,000

Date: 2023-11-14; Description: Sugar Purchase; ** Type: ** Expense; Category: Ingredients; Amount: ₹2,500

Date: 2023-11-21; Description: Eggs Purchase; Type: Expense; Category: Ingredients; Amount: ₹1,500

Date: 2023-11-01; Description: Rent Payment; Type: Expense; Category: Rent; Amount: ₹12,000

Date: 2023-11-15; Description: Employee Salaries; Type: Expense; Category: Salaries; Amount: ₹10,000

Date: 2023-11-05; Description: Electricity Bill; Type: Expense; Category: Utilities; Amount: ₹3,000

Date: 2023-11-28; Description: Water Bill; Type: Expense; Category: Utilities; Amount: ₹1,000

Date: 2023-11-10; Description: Marketing Campaign; Type: Expense; Category: Marketing; Amount: ₹5,000
Financial Transaction Management in Access: Tables, Ledgers, Profit & Loss, and Balance
Sheet

Tables:
1.Transactions:
Transaction Date Description Type Category Amount (₹) Account Notes

1 2023- 11-15 Cake Sale Income Sales 18,000 Checking Customer A

2 2023-11-22 Bread Sale Income Sales 12,000 Checking Customer B

3 2023-11-29 Catering Order Income Catering 8,000 Checking Corporate Event

4 2023-11-18 Interest Earned Income Other Income 500 Savings Bank A

5 2023-11-07 Flour Purchase Expense Ingredients 4,000 Checking Local

Supplier

6 2023-11-14 Sugar Purchase Expense Ingredients 2,500 Checking National

Distributor

7 2023 -11-21 Eggs Purchase Expense Ingredients 1,500 Credit Card Farm
Supplier

8 2023-11-01 Rent Payment Expense Rent 12,000 Checking Landlord

9 2023-11-15 Employee Salaries Expense Salaries 10,00 0 Checking Payroll

Processing

10 2023-11-05 Electricity Bill Expense Utilities 3,000 Checking Utility Company

11 2023-11-28 Water Bill Expense Utilities 1,000 Checking Water Department

12 2023-11-10 Marketing Campaign Expense Marketing 5,000 Credit Card

Advertising Agency

2. Categories:

Categoric Category Name

1 Sales

2 Catering

3 Other Income

4 Ingredients

5 Rent

6 Salaries

7 Utilities
8 Marketing

3.Accounts:

Accounted Account Name Balance (₹)

1 Checking 20,000

2 Savings 5,00 0

3 Credit Card -5,000

Ledgers:

• Income Ledger: Lists all income transactions with details like date, description,
category, and amount.
• Expense Ledger: Lists all expense transactions with details like date, description,
category, and amount.
• General Ledger: Combines all transactions (income and expenses) to provide a
comprehensive overview.
Profit& Loss Statement:

Description Amount (₹)

Revenue

- Sales 30,000

- Catering 8,000

- Other Income 500

Total Revenue 38,500

Expenses

- Ingredients 8,000

- Rent 12,000

- Salaries 10,000

- Utilities 4,000

- Marketing 5,000

Total Expenses 39,000

Net Profit/Loss -500

Balance Sheet:

Assets Amount (₹) Liabilities Amount (₹)

Current Assets

- Cash & Bank Balances 25,000

- Accounts Receivable

Total Current Assets 25,000

Liabilities

- Accounts Payable

- Credit Card Balance 5,000

Total Liabilities 5,000

Equity

- Share Capital

- Retained Earnings

Total Equity

1.Transaction Summary Report:

Bakery Transaction Analysis Reports
Based on the sample transactions provided earlier, let's generate some specific reports for
your bakery:
1. Transaction Summary Report (November 2023):

Date Description Category Amount (₹) Account Notes

2023-11-15 Cake Sale Sales 18,000 Checking Customer A

2023-11-2 2 Bread Sale Sales 12,000 Checking Customer B

2023-11-29 Catering Order Catering 8,000 Checking Corporate Event

2023-11 -18 Interest Earned Other Income 500 Savings Bank A

2023-11-07 Flour Purchase Ingredients 4,000 Checking Local Supplier

2023-11-14 Sugar Purchase Ingredients 2,500 Checking National
Distributor

2023-11-21 Eggs Purchase Ingredients 1,500 Credit Card Farm Supplier

2023-11-01 Rent Payment Rent 12,000 Checking Landlord

2023-11-15 Employee Salaries Salaries 10,000 Checking Payroll Processing

2023-11-05 Electricity Bill Utilities 3,000 Checking Utility Company

2023-11-28 Water Bill Utilities 1,000 Checking Water Department

2023-11-10 Marketing Campaign Marketing 5,000 Credit Card Advertising

Agency

2. Monthly Expenses Breakdown Report (November 2023):

Category Total Expense (₹)

Ingredients 8,000

Rent 12,000

Salaries 10,000

Utilities 4,000

Marketing 5,000

Total Expenses 39,000

3. Income vs Expenses Report (November 2023):

Description Amount (₹)

Revenue

- Sales 30,000

- Catering 8,00 0

- Other Income 500

Total Revenue 38,500

Expenses

- Total Expenses** 39,000

Net Profit/Loss -500

4. Account Balances Report:

Account Name Account Type Current Balance (₹)

Checking Current 20,000

Savings Savings 5,000

Credit Card Credit Card -5,000

Bakery Transaction Analysis Reports with Ratios

1.Transaction Summary Report (November 2023):

Date Description Category Amount (₹) Account Notes

2023-11-15 Cake Sale Sales 18,00 0 Checking Customer A

2023-11-22 Bread Sale Sales 12,000 Checking Customer B

2023-11-29 Catering Order Catering 8,000 Checking Corporate Event

2023-11-18 Interest Earned Other Income 500 Savings Bank A

2023-11-07 Flour Purchase Ingredients 4,000 Checking Local Supplier

2023-11-14 Sugar Purchase Ingredients 2,500 Checking National

Distributor

2023-11-21 Eggs Purchase Ingredients 1,500 Credit Card Farm Supplier

2023-11-01 Rent Payment Rent 12,000 Checking Landlord

2023-11-15 Employee Salaries Salaries 10,000 Checking Payroll Processing

2023-11-05 Electricity Bill Utilities 3,000 Checking Utility Company

2023-11-28 Water Bill Utilities 1,000 Checking Water Department

2023-11-10 Marketing Campaign Marketing 5,000 Credit Card Advertising

Agency

2. Monthly Expenses Breakdown Report (November 2023):

Category Total Expense (₹) Ratio to Total Expenses

Ingredients 8,000 20.51%

Rent 12,000 30.77%

Salaries 10,000 25.64%

Utilities 4,000 10.26%

Marketing 5,000 12.82%

Total Expenses 39,000 100%

3. Income vs Expenses Report (November 2023):

Description Amount (₹) Ratio to Total Revenue

Revenue

- Sales 30,000 77.95%

- Catering 8,000 20.78%

- Other Income 500 1.29%

Total Revenue 38,500 100%

Expenses

- Total Expenses** 39,000 101.30%

Net Profit/Loss -500 -1.30%

4. Account Balances Report:

Account Name Account Type Current Balance (₹) Ratio to Total Assets

Checking Current 20,000 80%

Savings Savings 5,000 20%

Credit Card Credit Card -5,000 -20%

Total Assets 25,000 100%

5. Profitability by Catering Event Report:

(Assuming two catering events in November)

Event Name Date Revenue (₹) Expenses (₹) Net Profit/Loss (₹) Profit Margin

Corporate Event 2023 -11-29 8,000 5,000 3,000 37.5%

Wedding Reception 2023-11-19 15,000 12,000 3,000 20%

6.Key Performance Indicators (KPIs) Report:

KPI Name November 2023

Gross Profit Margin 8% (calculated as Gross Profit / Revenue)

Operating Expenses Ratio 98% (calculated as Operating Expenses / Revenue)

Current Ratio 4 (calculated as Current Assets / Current Liabilities)

These reports, along with various ratios, provide a comprehensive analysis of your bakery's
financial performance.
1. PieChart of Income Sources (November 2023):

Sales: 77.95% (30,000 out of 38,500)

Catering: 20.78% (8,000 out of 38,500)

Other Income: 1.29% (500 out of 38,500)

2. BarChart of Monthly Expenses:

November: 39,0 00 (total expenses for the month)

3. LineChart of Revenue vs. Expenses (Month-to-Month Comparison):

Month 1: Revenue = 38,500, Expenses = 39,000 (slight loss)

Month 2: Revenue = 42,000 (estimated), Expenses = 38,000 (projected profit)

Month 3: Revenue = 35,000 (estimated), Expenses = 40,000 (projected loss)

4.StackedBar Chart of Expenses by Category (November 202 3):

Ingredients: 20.51% (8,000 out of 39,000)

Rent: 30.77% (12,000 out of 39,000)

Salaries: 25.64% (10,000 out of 39,000)

Utilities: 10.26% (4,000 out of 39,000)

Marketing: 12.82% (5,000 out of 39,000)

PROJECT ON E-FILING
 Project Assignment- E-
Filing
This assignment guides you through the process of Electronic filing of
IncomeTaxes of a Salaried Individual under the Income Tax Act, 1961.

**Scenario
** Your Client Mr. Ghosh has received salary of 12 lakhs during the year. He
had FD interest of 1 lakh and Savings Bank Interest of 50 thousand. He was
receiving rent 5000 per month throughout the year. He invested 1 lakh rupees
into PPF and 1 lakh rupees into NSC. He paid Medical Insurance premium 1
lakh for himself and his parents. TDS deducted during the year is rupees 50
thousand. You need to file his taxes under the relevant form.

Step- 1: Tax Filing Applicability

• If your gross total income is more than the basic exemption limit-
Age Group Basic Exemption Limit
Below 60 years Rs. 2.5 Lakhs
60-80 years Rs. 3.0 Lakhs
80+ years Rs. 5.0 Lakhs

In our case, Mr. Ghosh (being a junior citizen) does have total income
exceeding 2.5 Lakhs, therefore he is liable to comply with the tax filing
provisons.
Step- 2: Selection of Form

In our case, Mr. Ghosh has received Salary income but no Capital Gain
incomes or PGBP incomes, hence the appropriate form for return filing is ITR-1.
Step- 3: Documents required form the Client
Login Credentials of the Income Tax Portal, PAN, AADHAR no., Phone
No.,Email ID, Address etc.
(Note- These credentials are only required when filing offline, because these
fields are already prefilled if we were to file returns online.

Step- 4: Visit the Income Tax Portal (eportal.incometax.gov.in)

Login to the Income Tax portal using Client credentials

Step- 5: Verify the accuracy of the TDS details provided by the Client
Form 26AS
AIS/TIS
Step- 6: Calculate Tax payable on the Income Tax Calculator/Estimator

We must compute taxes under both the Old and New regime and determine
which is beneficial for our client. After computing the taxes, we must inform
our client of any further tax payable/refundable.
In our case Mr. Ghosh has a tax payable of Rs. 115800 under the old regime
and Rs. 78290 under the new regime. Since Mr. Ghosh does not have any
business income, he has no restriction on the choice of regime for his filing
purposes.
Therefore, it will be beneficial for him to choose to file taxes under the new
regime and he would be advised to pay Rs 78290 as Self-Assessment Tax.
Step- 7: Download the JSON offline utility for filing of taxes

Step- 8: Fill up the Excel Based JSON Utility

The green cells are areas to be filled and the ones marked in red are
mandatory fields.
Step- 9: Validate every sheet and Generate JSON
If there are any errors in Validation, fix them before generating the JSON.

Step- 10: Upload the JSON file in the Tax filing portal
Step- 11: E-Verify the Filed Return using AADHAR OTP

Step- 12: Keep checking to see the Processing Status of the filed ITR.
Usually it takes about a few days for the return to be processed.