Unit 1

Long

1)

2) In Tally ERP 9, a "company" refers to a separate business entity or organization for which financial
accounts and data are maintained. Each company in Tally operates independently, having its own set of
books, financial information, and configuration settings. Creating a company in Tally allows users to
manage the accounts, transactions, and other financial aspects specific to that particular business entity.
It provides a structured way to organize and analyze financial data for distinct entities within the Tally
software. Steps to create a company are :

1. Open Tally.ERP 9 and activate the license.

2. Choose a location to save data.

3. Press `Alt + F3` or click 'Create Company' in the toolbar.

4. Fill in company details (name, address, financial year, etc.).

5. Enable GST if applicable.

6. Press `Enter` to complete.

7. Accept the details by pressing `Y`.

8. Set up security controls if needed.

9. Start using the newly created company from the Gateway of Tally screen.

3)
4) characterstics of tally:
Short question :

1) To delete a group in Tally.ERP 9:

• Go to "Gateway of Tally" > "Accounts Info" > "Groups" > "Single Group."
• Select the group.
• Press Alt + D or click "Delete" to confirm.

2) Tally, P2P typically refers to "Purchase to Pay," representing the end-to-end process of
procurement, starting from purchase requisition to payment. It streamlines the entire
purchase workflow within the accounting system.
3) In Tally ERP, a "group" is a classification category that organizes ledgers based on
similar characteristics, facilitating systematic and structured accounting. Groups help in
summarizing and presenting financial information in a more organized manner.
4) F11 Configuration in Tally: F11 is a shortcut to Tally's company features configuration.
It allows users to customize settings related to company operations, like
enabling/disabling features, defining fiscal year, and configuring printing options.

F12 Configuration in Tally: F12 is a shortcut for Tally's configuration menu. It provides
user-specific customization options, such as display settings, date formats, and report
configurations, allowing individuals to tailor their Tally experience.

Unit 2:

Long

1) In Tally.ERP 9, a "stock group" is a classification or grouping of similar stock items. It

helps organize and categorize inventory items based on common characteristics. Stock
groups provide a structured way to manage and analyze inventory data, facilitating better
control and reporting.

2)
3) Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity
and is the lowest level of information on your inventory..
5)A godown is a place where stock items are stored. You can specify
where the stock items are kept. You can obtain stock reports for each
godown and account for the movement of stock between
locations/godowns. You can create Locations/Godowns in Single
mode and Multiple mode.

Short questions :

1) The quantity in turn is measured by units. In such cases, it is necessary to create the Unit of
Measure. The Units of Measure can either be simple or compound. Examples of simple units
are: nos., metres, kilograms, pieces etc.
2) Stock Item refers 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. ERP 9 for each inventory item that you want to account for.
Unit 3:
1)

2) It is a receipt given for cash paid or payment made through cheques. It support the entry
passed in the books of accounts.
It gives full details, of payments made and gives reasons for its payment. Purchase voucher is
an important document giving details of the goods purchased on cash or credit from the vendor.

It is a crucial component of the accounting process and helps in maintaining accurate

financial records. Here's how transactions are recorded in a purchase voucher:
3) A voucher is a document that contains details of a financial transaction and is
required for recording the same into the books of accounts.
For every transaction, you can use the appropriate Tally voucher to enter the details
into the ledgers and update the financial position of the company.
Types of vouchers are:
4) A source document is an original record or piece of evidence that provides information
about a transaction.
It is the starting point of the accounting process and serves as the basis for entering data
into the accounting system. Source documents provide details about the nature, date, and
amount of a transaction.
Some of its examples include cash memo, cheque, bill receipt, pay-in-slip, debit note,
credit note, invoice
Types of source documents are :
Short questions :

1) Source document is referred to as the original document that contains the details of a
business transaction. It contains the most important details of the transaction like the amount
paid, the parties involved.
2)
3) A Business Transaction is an economic event involving the movement of money,
goods, or services, usually between two or more parties. These events must always be
measurable in monetary terms so that the company can record them for accounting
purposes. They are always recorded in a certain account.
4) A post-dated cheque is one that the recipient can encash on a future date. Such
cheques are not payable until the date written on the face of the cheque. In the
accounting books of both the issuer and the recipient, the transaction will not be
recorded until the date provided on the cheque.

Unit 4 :
1) Types of Bill wise details in tally are :
2) In Tally ERP 9, the Bill Wise Details feature is usually available by default, and you can
use it while entering payment or receipt transactions. However, you need to ensure that
the feature is enabled in the company's configuration.

Here's how you can activate the Bill Wise Details feature in Tally ERP 9:
3)account receivable vs account payable :

4) Payable management in accounting software involves the systematic tracking and

administration of a company's accounts payable, which are amounts the business owes to
its suppliers or creditors for goods and services purchased on credit.
Effective payable management helps ensure that a company meets its financial obligations
on time, maintains positive relationships with suppliers, and optimizes cash flow.
Short questions :

1) The New Reference method is one of the basic methods of Tally Prime. Generally we can
use this option when we have received a new purchase bill or issued a sales bill. This option is
used for creating any dues
2) Stock Category offers a parallel classification of stock items. Like stock Groups, classification
is done based on similarity in behaviour. For example, Stock Item. Sub Group.
3) Receivables management is the entire process of keeping track of what customers buy from
companies on credit.
It can also be referred to as buying on credit. It involves developing a credit policy, sending
follow-up correspondences to customers, and collecting due payments
4) Go to Gateway of Tally > click F2 : Period and enter the dates. The Current Period appears
as shown below: When the Current Period is changed, the balances from the previous financial
year are carried forward. Retain the Financial year begins from and Books beginning from dates
in the Company Alteration screen.
Unit 5
Long :

1) MIS stands for Management Information System. It is a computerized database that

facilitates the storage, processing, and retrieval of information for efficient management
and decision-making within an organization.
MIS is designed to provide managers with a comprehensive overview of the organization's
performance and help them make informed decisions. Here are the advantages and
disadvantages of MIS:
Advantages and disadvantages are :
• Advantages: Improved Decision Making
• Efficiency in Operations
• Enhanced Communication and Collaboration
• Strategic Planning
• Competitive Advantage
Disadvantages:
• Implementation Cost
• Complexity
• Security Concerns
• Dependency on Technology
• Resistance to Change
2)
3) In Tally, a popular accounting software, there are various types of accounting reports that
provide insights into the financial transactions and status of a business.
Short questions :

1) A cash flow statement is a financial statement that provides aggregate data regarding all
cash inflows that a company receives from its ongoing operations and external investment
sources.
It also includes all cash outflows that pay for business activities and investments during a given
period.
2) A Purchase Register displays the information on the periodic purchases of a business
concern.
Purchase register helps in analyzing the details of movement of purchased goods to various
godowns, on the basis of which the stock movement at each godown is determined.
3) to generate trail balance : Press Alt+G (Go To)> type or select Trial Balance> press Enter.
Alternatively, Gateway of Tally > Display More Reports > Trial Balance. Press F5 (Ledger-wise)
to view the ledger-wise report.
To return back to the Group-wise report, press F5 again.
4) According to the Negotiable Instruments Act 1881, a bill of exchange is defined as an
instrument in writing containing an unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to, or to the order of a certain person or to the bearer
of the instrument.