Trinity Institute of Professional Studies
Affiliated To Guru Gobind Singh Indraprastha University
SECTOR 16-C, DWARAKA, NEW DELHI
Subject
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Assignment/ Case Study/PPT
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Submitted By: Submitted to:
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TABLE OF CONTENTS
SNO. PARTICULARS PAGE SIGN/ REMARKS
NUMBER
1 Accounting 2-5
Define
Process
Functions
Software
Golden rules
2 Question 6
3 Creation of a company 7
4 Shut a company 8
5 Answer to the question 9-26
Journal entry
Ledger posting
Voucher posting
6 Financial statements 27-29
1
BASIC ACCOUNTING SOFTWARE LAB
PRACTICAL FILE
ACCOUNTING
Accounting is the process of recording, classifying, summarizing, and analysing financial
transactions of an entity. It provides a systematic way to track and understand an organization's
financial health and performance.
ACCOUNTING PROCESS
The accounting process typically involves these steps:
1. Transaction Identification: Identifying and documenting all financial transactions that
occur within the business. This includes purchases, sales, payments, receipts, and other
relevant activities.
2. Source Document Creation: Creating source documents like invoices, receipts,
checks, and bank statements to support the recorded transactions.
3. Journal Entry: Recording the transactions in a journal, which is a chronological record
of all financial events. This involves debiting and crediting accounts based on the rules
of double-entry accounting.
4. Posting to Ledger: Transferring the journal entries to the general ledger, which is a
book of accounts that organizes all transactions by account type.
5. Trial Balance Preparation: Creating a trial balance to ensure that the total debits equal
the total credits in the general ledger. This helps identify any errors or inconsistencies
in the accounting process.
6. Adjusting Entries: Making necessary adjustments to the accounts at the end of an
accounting period to reflect accruals and deferrals.
7. Financial Statement Preparation: Creating the financial statements, including the
income statement, balance sheet, and cash flow statement. These statements provide a
summary of the organization's financial performance and position.
8. Closing Entries: Closing the temporary accounts (revenue, expense, and dividend
accounts) to prepare for the next accounting period.
2
ACCOUNTING FUNCTIONS
Accounting serves as the backbone of a business, providing essential financial information for
decision-making and compliance. Here are some of the core functions of accounting:
Financial Reporting
Income Statement: Shows a company's revenues, expenses, and net income over a
specific period.
Balance Sheet: Displays a company's assets, liabilities, and equity at a particular point
in time.
Cash Flow Statement: Outlines the inflows and outflows of cash from operating,
investing, and financing activities.
Transaction Recording
Journal Entries: Recording financial transactions in a chronological order.
General Ledger: Grouping transactions by account type for analysis.
Financial Analysis
Ratio Analysis: Assessing a company's financial performance using various ratios
(e.g., liquidity, profitability, solvency).
Trend Analysis: Examining changes in financial data over time to identify patterns
and trends.
Budgeting and Forecasting
Creating Budgets: Developing financial plans for future periods.
Forecasting: Predicting future financial performance based on historical data and
assumptions.
Tax Compliance
Ensuring Compliance: Adhering to tax laws and regulations.
Tax Preparation: Preparing and filing tax returns.
3
Internal Control
Safeguarding Assets: Protecting company assets from theft or loss.
Preventing Fraud: Implementing measures to deter fraudulent activities.
Decision Making
Providing Information: Offering financial data to support informed decision-making.
Evaluating Alternatives: Assessing the financial implications of different options.
Risk Management
Identifying Risks: Identifying potential financial risks.
Mitigating Risks: Developing strategies to minimize risks.
ACCOUNTING SOFTWARES
Accounting software is a computer program designed to automate and streamline various
accounting tasks. It helps businesses manage their finances efficiently by tracking transactions,
generating financial reports, and ensuring compliance with accounting standards.
Types of Accounting Software
1. Cloud-Based Accounting Software:
o Access: Accessible from anywhere with an internet connection.
o Updates: Automatically updated by the software provider.
o Scalability: Easily adaptable to changes in business size.
o Examples: QuickBooks Online, Xero, FreshBooks
2. On-Premise Accounting Software:
o Installation: Installed on a local server or computer.
o Control: Provides greater control over data and security.
o Customization: Highly customizable to specific business needs.
o Examples: QuickBooks Desktop, Sage 50, Peachtree
4
3. Industry-Specific Accounting Software:
o Tailored: Designed for specific industries (e.g., construction, healthcare,
retail).
o Features: Includes features relevant to the industry.
o Examples: Deltek for project-based industries, NetSuite for ERP and CRM
integration.
4. Open-Source Accounting Software:
o Free: Available for free.
o Customization: Highly customizable.
o Community Support: Supported by a community of users.
o Examples: Odoo, OpenERP
GOLDEN RULES OF ACCOUNTING
Real account – debit what comes in and credit what goes out.
Personal account – debit the receiver and credit the giver.
Nominal account – debit all expenses, losses and credit all incomes, gains.
5
QUESTION
Create two companies, shut one and perform the following entries in the second one in TALLY
software:
1. Introduce capital of 10,00,000.
2. Open a bank account of HDFC with 50,000.
3. Purchase furniture of 1,00,000 from Mr X.
4. Purchased fixed asset of 60,000 on cash.
5. Paid salary and rent of 10,000 and 20,000 respectively.
6. Withdrawn cash of 10,000 for personal use.
7. Withdrawn goods of personal use for 2 packs of hide and seek 100gm.
8. Purchased goods in following manner on cash:
ITEMS QUANTITY RATE
Hide and seek 100gm 5 packs 30
Marie gold 250gm 10 packs 10
Parle G 50gm 8 packs 5
Colgate 100gm 8 200
9. Sold hide and seek 100gm 2 packs on cash.
10. Sold colgate 100gm 3 packs on credit to Mr Y.
11. Received interest income of 15,000.
12. Issued cheque of 50,000 in favour of Mr X.
6
CREATION OF COMPANY
STEPS FOR CREATING A COMPANY
1. Go to comp info F3
2. Click on create company
3. Give an unused name to the company
4. Press enter and then accept it
5. Company is created
7
SHUT A COMPANY
STEPS FOR SHUT A COMPANY
1. Go to comp info F3
2. Select shut company
3. Select the desired company
4. Press enter
5. Company is shut
8
ENTRY 1
Journal entry: Cash a/c….dr
To capital a/c
Cash ledger is already created
Capital ledger
STEPS:
1. Go to gateway of tally
2. Click on accounts info
3. Then select ledger
4. Click on single ledger
5. Create ledger
6. Write the account name and the under as per the account or category it belongs too.
7. Press enter and accept it
9
8. Ledger is created.
VOUCHER POSTING
STEPS:
1. Go to accounting vouchers present in gateway of tally table.
2. Then select the appropriate voucher in which entry needs to be posted.
3. Write the entry using journal rules.
4. Put the narration if required.
5. Press enter and accept it.
6. Your voucher is created and saved.
10
ENTRY 2
Journal entry: Bank a/c….dr
To cash a/c
LEDGER POSTING
VOUCHER POSTING
11
ENTRY 3
Journal entry: Furniture a/c
Mr X a/c
LEDGER POSTING
12
VOUCHER POSTING
13
ENTRY 4
Journal entry: Fixed asset a/c….dr
To cash a/c
VOUCHER POSTING
14
ENTRY 5
Journal entry: salary a/c………. dr
Rent a/c………dr
To cash a/c
VOUCHER POSTING
15
ENTRY 6
Journal entry: Drawings a/c……dr
To cash a/c
VOUCHER POSTING
16
ENTRY 7
Journal entry: Drawings a/c…..dr
To purchases a/c
VOUCHER POSTING
17
ENTRY 8
Journal entry: Purchases a/c…..dr
To cash a/c
STOCK GROUP CREATION
18
STOCK ITEM CREATION
19
20
UNIT OF MEASURE CREATION
VOUCHER POSTING
21
ENTRY 9
Journal entry: Cash a/c……dr
To sales a/c
VOUCHER POSTING
22
ENTRY 10
Journal entry: Mr Y a/c…….dr
To sales a/c
VOUCHER POSTING
23
ENTRY 11
Journal entry: Cash a/c……dr
To interest income
VOUCHER POSTING
24
ENTRY 12
Journal entry: Mr X a/c……dr
To bank a/c
VOUCHER POSTING
25
FINANCIAL STATEMENTS:
1. STATEMENT OF FINANCIAL POSITION
2. STATEMENT OF PROFIT AND LOSS
26
3. STOCK SUMMARY
4. RATIO ANALYSIS
27
5. DAYBOOK
28
