UNIT 4 CONFIGURING TALLY CONFIGURING TALLY (F12) VVN

1 E-BUSINESS & ACCOUNTING | VVNDC

Compiled by Komalatha B C & Arpitha B S

UNIT 4

CONFIGURING TALLY

CONFIGURING TALLY (F12)

1. General: general configuration includes details of Country details, Naming style, Format of

dates, Format of numbers, Table configuration, Import/Export options and Other options.

Based on the requirement of the company options can be used.

2. Numeric Symbols: this option is only for the number styles and prefix/suffix to be use and

symbols for debit & credit amounts.

3. Accounts/Inventory Information: this option allows the accounts and inventory to use the

address and contact details or godown details and description, remarks of the stock.

4. Voucher Entry: A Voucher is an accounting document. This option is further divided into

Accounts and Inventory. Two options always to be activated:

(a) Use Single Entry mode for payment/receipt/contra: NO

(b) Use Cr/Dr instead of To/By during an entry : YES

Other options in voucher entry can be activated as per the requirement of a customer.

5. Invoice/Orders Entry: this option issued only when the invoice order is been needed.

6. Payroll Configuration: company can maintain employee related details in Tally under this

option.

7. Banking Configuration: this option can be used for banking relation details.

GROUP CREATION

A group is a collection of ledgers which have similar transactions. Tally ERP9 provides a set of 28

pre-defined groups under which ledgers can be classified i.e, 15 Primary groups and 13 Sub groups.

VVN

DEGR

EE C

OLLE

GE



For example, all account heads relating to fixed assets of the company are grouped under the fixed

assets.

Primary Groups Sub Groups

Branch/Divisions Bank Accounts

Capital Account Bank OD A/c

Current Assets Cash-in-hand

Current Liabilities Deposits (Asset)

Direct Expenses Duties and Taxes

Direct Incomes Loans and Advances (Asset)

Fixed Assets Provisions

Indirect Expenses Reserves & Surplus

Indirect Incomes Secured Loans

Investments Stock-in-hand

Loans (Liability) Sundry Creditors

Misc. Expenses (Asset) Sundry Debtors

Purchase Accounts Unsecured Loans

Sales Accounts

Suspense Account

1. Primary groups

a) Branch/Division – if the company have various branches and divisions, branch/division name

can be mentioned here.

b) Capital account – this group consists of capital, reserves and surplus of the company.

c) Current assets – current assets are those assets which can be converted into cash with a period

of one year

d) Current liabilities – current liabilities are those liabilities which are payable within a year.

e) Direct expenses – this is a group for all direct expense like wages, fright charges, electricity

bill etc.

f) Direct incomes - in case of professional or servicing companies which do not have sales

income but have income and professional fees for services which we can place the ledger under

direct income

g) Fixed assets – it refers to those assets which are held by way of investment and not for the

purpose of sales. They are permanent in nature. It can be further divided into tangible assets

and intangible assets.

h) Indirect expenses – all office, administration, selling and financial expenses should be

classified under this group

i) Indirect income – income such as interest received, discount received, commission earned shall

be classified under this group.

j) Investments –Company’s investment can be mentioned under this head. Such as investments

in shares, bonds, government securities, etc.

k) Loans – this is a convenient head for both secured and unsecured loan. All loans taken by the

company will come under this group

l) Miscellaneous expenses - preliminary expenses of the company are recorded here

m) Purchase account – buying of goods for the purpose of resale is turned as purchase. Purchase

and purchase return will come under this group

n) Sales account – selling of goods in normal source of business is turned as sales. If the sale is

for immediate cash payment, it is called sales. If payment for sales is different it becomes

created sales. Sales account and sales return account are created under this account

VVN

DEGR

EE C

OLLE

GE



o) Suspense account – the suspense account is a temporary account in which the difference in a

trial balance is places and is wiped off when the errors are located and corrected.

2. Sub Groups

a) Bank account – various bank accounts of the company can be created under this group

b) Bank OD a/c – if the company have any overdraft facility taken from the banks can be included

in this group.

c) Cash-in-hand – cash account of the company can be recorded under this group

d) Deposits – company’s deposits such as fixed deposits, security deposits and any deposit made

by the company.

e) Duties and taxes – all tax a/c’s including VAT and other trade taxes

f) Loans and advances – advance against salary, loans against salary etc can be included under

this group

g) Provisions – various provisions of the company, such as provision for taxation, depreciation,

etc

h) Reserves & Surplus – capital reserve, general reserve, reserve for depreciation etc are recorded

under this group

i) Secured loans – long or medium term loans that have been obtained against security of some

assets.

j) Stock-in-hand – opening stock or closing stock of raw materials, work-in-progress and finished

goods

k) Sundry creditors – trade creditors of the company

l) Sundry debtors – customers of the company

m) Unsecured loans - for loans obtained without any security.

Creating a Group

In Tally ERP 9 there are two options for creating Groups.

• Single Group – we can create only one group by using Single Group creation screen

o Path – Go to > Gateway of Tally > Accounts Info. > Groups > Create under Single Group

• Multiple Groups – we can create multiple groups by using Multiple Group creation screen.

o Path – Go to > Gateway of Tally > Accounts Info. > Groups > Create under Multiple Group

Alter the group

VVN

DEGR

EE C

OLLE

GE



The group once created can be alter.

Path – Go to > Gateway of Tally > Accounts Info. > Groups > Alter under Single group or Multiple

group. Select the group to be altered - Make the required changes.

LEDGER CREATION

A ledger is the actual account head to identify the transactions of a company and is used in all

accounting vouchers. In Tally ERP9 there are two pre-defined ledgers available. They are:

➢ Cash – This ledger is created under the group Cash-in-hand. We can enter the opening

balance as on the date of books beginning from. We can also alter the name and even delete

the ledger.

➢ Profit and Loss Account – This ledger is created under the Group Primary. Previous year’s

profit or loss is entered as theopening balance for this ledger. The balance entered here is

treated as the opening profit/loss and shown in the balance sheet.

You cannot delete this ledger, but you can modify the same.

Creating a ledger

Under Tally ERP9 by default two ledger accounts are contained namely Cash a/c and Profit & Loss

a/c. We need to create all other accounts.

Path for single ledger – Go to > Gateway of Tally > Accounts Info. > Ledgers > Create under single

ledger

Path for multiple ledger – Go to > Gateway of Tally > Accounts Info. > Ledgers > Create under

Multiple Ledgers

Displaying / Altering a Ledger Account

Information under Display and Alter is the same. Display option does not permit any modification,

Alter option permits to alter the information.

Path - Go to > Gateway of Tally > Accounts Info. > Ledgers > Alter or Display

Deleting a ledger account

Ledger can be deleted if no vouchers have been created.

Path – Go to > Gateway of Tally > Accounts Info. > Ledgers > Alter > Select the ledger account to

be deleted > Press Alt+D

Groups and respective ledger accounts

VVN

DEGR

EE C

OLLE

GE



Groups Ledgers

Purchase Account Purchase A/c

Purchase Return A/c

Sales Account Sales A/c

Sales Return A/c

Fixed assets

Furniture a/c

Fixtures and fittings

Motor vehicles

Plant and machinery

Land and building

Lease hold property

Patents

Good will

Loose tools

Current assets

Bills receivable

Stock of stationery

Prepaid expenses

Income outstanding

Direct income

Any income from main services

Freight charges income

Delivery charges income

Transportation charges income

Professional charges income

Consultancy charges income

Indirect income

Interest on investment received

Interest on deposit received

Interest on loans received

Commission received

Discount received

Rent received

Dividend received

Bad debts recovered

Profit by sale of assets

Sundry income

Cash-in-hand Cash-in-hand

Bank account Cash at bank

Investments Investment

Current liabilities

Bills payable

Expenses outstanding

Income received in advance

Other liabilities

Direct expenses

Freight charges Carriage inwards

Cartage and coolie, octroi

Railway fright

Manufacturing wages

Coal, gas, water

Oil and fuel

Factory rent, insurance, electricity, lighting

& heating

Indirect expenses

Salary

Postage, Telegram and telephone charges

Rent, rates and taxes

Insurance and audit fess

Interest on bank loan

Legal charges

Bank charges

VVN

DEGR

EE C

OLLE

GE



Printing and stationery

General expenses

Sundry expenses

Discount allowed

Bad debts

Carriage outwards

Travelling expenses

Depreciation on assets

Sundry creditors Sundry creditors (suppliers)

Sundry debtors Sundry debtors (customers)

Stock in hand Opening balance

Closing balance

Capital account Capital account

Drawings

Loan liabilities Bank loan

Loan from others

Bank OD Bank overdraft

Miscellaneous expenses Preliminary expenses

VOUCHERS

A voucher is a document containing the details of a transaction. It is the prime document which acts

as a source of all data items in Tally Accounting system. Each and every accounting transaction

requires voucher. Tally ERP9 is pre-programmed with variety of accounting vouchers, each

designed to perform a specific job. During vouch entry we can choose the required voucher type,

by pressing the relevant keyboard shortcut or using mouse.

Path for voucher creation

Go to > Gateway of Tally > Accounting Vouchers > Select the required voucher

1. CONTRA VOUCHER (F4)

VVN

DEGR

EE C

OLLE

GE



Contra voucher is used to make entry of transaction between cash and bank account only. It can

be accessed by pressing F4 key or selecting ‘F4: Contra’ on button bar. This voucher is used to

record transaction between cast a/c and bank a/c, bank a/c and cash a/c and one bank a/c to

another bank a/c. It is used to record fund transfer transactions where net flow of funds are

equal.

Syntax:

Cr: Cash/Bank

Dr: Cash/Bank

(a) Deposit of Cash of ₹25,000 to SBI Ledger to be created - SBI a/c under Bank Account Date Particulars LF Debit Credit SBI a/c Dr 25,000 To Cash a/c 25,000 (Being Cash Deposited)

(b) Withdrew cash of ₹1,500 from HDFC Bank Ledger to be created - HDFC Bank a/c under Bank Account Date Particulars LF Debit Credit Cash a/c Dr 1,500 To HDFC bank a/c 1,500 (Being Cash withdrawn)

(c) Transfer of ₹30,000 from Bank of Baroda to ICICI Bank Ledger to be created - Bank of Baroda a/c under Bank Account ICICI a/c under Bank Account Date Particulars LF Debit Credit ICICI a/c Dr 30,000 To Bank of Baroda a/c 30,000

(Being Cash transferred from one account to another account)

(d) Deposited cash of ₹20,000 each for Canara Bank and Bank of India Ledger to be created - Canara Bank a/c under Bank Account Bank of India a/c under Bank Account Date Particulars LF Debit Credit Canara Bank a/c Dr 20,000 Bank of India a/c Dr 20,000 To Cash a/c 40,000 (Being cash deposited into bank)

(e) Withdrew of cash of ₹20,000 equally from Karnataka Bank and Punjab Bank

Ledger to be created - Karnataka Bank a/c under Bank Account Punjab Bank a/c under Bank Account Date Particulars LF Debit Credit Cash a/c Dr 10,000 To Karnataka Bank a/c 10,000

VVN

DEGR

EE C

OLLE

GE



To Punjab Bank a/c 20,000 (Being cash withdrawn from bank)

2. PAYMENT VOUCHER (F5)

All payables either in the form of cash or bank should be recorded in this voucher. It can be

accessed by pressing F5 key or selecting F5: payment on button bar. In this particular voucher

debit comes first and next is the credit.

The main transactions recorded in this voucher are:

o Payment of expenses

o Purchase of fixed asses

o Purchase of shares

o Payment of taxes

o All types of bills cleared to customers/suppliers

Syntax:

Dr: Expenses/Purchase of Fixed Assets/Purchase of shares/Duties & Taxes/Sundry Debtors

& Sundry Creditors

Cr: Cash/Bank

(a) Paid rent of ₹20,000 and commission of ₹3,000 by Cash Ledger to be created - Rent paid a/c under Indirect expenses Commission paid a/c under Indirect expenses Date Particulars LF Debit Credit Rent paid a/c Dr 20,000 Commission paid a/c Dr 3,000 To Cash a/c 23,000 (Being rent and commission paid)

(b) Purchased Furniture worth ₹30,000 and paid by cash ₹28,000 Ledger to be created - Furniture a/c under Fixed Asset Discount received a/c under Indirect income Date Particulars LF Debit Credit Furniture a/c Dr 30,000 To Cash a/c 28,000 To discount received a/c 2,000

(Being furniture purchased at discount)

(c) Purchased Computer worth ₹30,000 by SBI a/c & Shares in Wipro ₹10,000 by cash

Ledger to be created - SBI a/c under Bank Account Shares in Wipro under Investment Computer a/c under Fixed Asset Date Particulars LF Debit Credit Computer a/c Dr 30,000 Shares in Wipro a/c Dr 10,000 To SBI a/c 30,000

VVN

DEGR

EE C

OLLE

GE



To Cash a/c 10,000 (Being Computer & Shares purchased)

(d) Paid advance of ₹5,000 for MN traders by cash Ledger to be created - MN traders (Supplier) under Sundry creditors Date Particulars LF Debit Credit MN Traders a/c Dr 5,000 To Cash a/c 5,000 (Being advance paid in cash)

3. RECEIPT VOUCHER (F6)

All receivables either in the form of cash or bank will be recorded in this voucher. In this

particular voucher credit comes first & then the debit. It can be accessed by pressing F6 key or

selecting F6: Receipt on the button bar. The main transactions recorded in this voucher are:

o Income received

o Sale of fixed assets

o Sale of shares

o Capital introduced to business

o All types of bills cleared from customers or suppliers

Syntax:

Cr: Incomes/sales of Fixed Assets/sales of shares/capital/sundry creditors & sundry debtors

Dr: Cash/Bank

(a) Started business with cash of ₹75,000 Ledger to be created - Capital a/c under Capital Account Date Particulars LF Debit Credit Cash a/c Dr 75,000 To Capital a/c 75,000

(Being cash introduced to business)

(b) Received Rent and Commission ₹30,000 equally in the form of cash Ledger to be created - Rent received a/c under Indirect income Commission received a/c under Indirect income Date Particulars LF Debit Credit Cash a/c Dr 30,000 To Rent received a/c 15,000 To Commission received a/c 15,000 (Being rent & commission received)

(c) Received advance from ABC company ₹2,000 by cash which was then remitted to HDFC

Ledger to be created - ABC Co. a/c (customer) under Sundry Debtors HDFC a/c under Bank account Receipt voucher

VVN

DEGR

EE C

OLLE

GE



Date Particulars LF Debit Credit Cash a/c Dr 2,000 To ABC Co. a/c 2,000 (Being advanced received) Contra Voucher Date Particulars LF Debit Credit HDFC a/c Dr 2,000 To Cash a/c 2,000 (Being cash deposited)

(d) Sold Furniture worth ₹20,000 at the loss of ₹ 3000 through ICICI Bank Ledger to be created - Furniture a/c under Fixed Asset ICICI a/c under Bank Account Loss on Furniture under Indirect expenses Date Particulars LF Debit Credit ICICI a/c Dr 17,000 Loss on Furniture a/c Dr 3,000 To Furniture a/c 20,000 (Being furniture sold at loss)

(e) Received Commission of ₹10,000 by cash and deposited 50% of commission to Canara bank

and the balance to Bank of India Ledger to be created - Commission received a/c under indirect income Canara Bank a/c under Bank Account Bank of India a/c under Bank Account Receipt voucher Date Particulars LF Debit Credit Cash a/c Dr 10,000 To Commission receiveda/c 10,000 (Being commission received) Contra Voucher Date Particulars LF Debit Credit Canara Bank a/c Dr 5,000 Bank of India a/c Dr 5,000 To Cash a/c 10,000 (Being cash deposited)

4. JOURNAL VOUCHER (F7)

They also referred as adjustment voucher. All types of transaction can be recorded in this

voucher but it should not include cash, bank, purchase and sales a/c. Shortcut key is F7. The

main transactions are:

o Depreciation of fixed assets

o Appreciation of fixed assets

o Bills of exchange

o Transfer of cash from one a/c to another

o Receivables/payables without cash & bank

Syntax:

VVN

DEGR

EE C

OLLE

GE



Dr: Any ledger

Cr: Any ledger

(a) Appreciation of Land & Building at 5%, whose book value is ₹5,00,000

Ledger to be created - Land & Building a/c under Fixed Assets Appreciation a/c under Indirect Income Date Particulars LF Debit Credit Land &Building a/c Dr 25,000 To Appreciation a/c 25,000

(Being land & building value appreciated)

(b) Depreciation of Furniture by ₹15,000 Ledger to be created - Depreciation a/c under Indirect Expenses Furniture a/c under Fixed Assets Date Particulars LF Debit Credit Depreciation a/c Dr 15,000 To Furniture a/c 15,000

(Being furniture value depreciated)

(c) Transfer of cash ₹10,000 from Sham Capital a/c to Ram Capital a/c

Ledger to be created - Sham Capital a/c under Capital Account Ram Capital a/c under Capital Account Date Particulars LF Debit Credit Ram Capital a/c Dr 10,000 To Sham Capital a/c 10,000

(Being capital transferred from one capital a/c to another a/c)

5. SALES VOUCHER (F8)

A sales voucher is used when goods or service are sold to a customer (sundry debtors). It is also

known as Sales Invoice. The shortcut key is F8

Syntax:

Dr: Cash/Bank/Sundry Creditor

Cr: Purchase A/c

(a) Sold goods for cash ₹12,000 Ledger to be created - Sales a/c under Sales Account Date Particulars LF Debit Credit

Cash a/c Dr 12,000

To Sales a/c 12,000

(Being goods sold for cash)

(b) Sold goods to Mr.X worth ₹8,000 Ledger to be created - Mr. X a/c under Sundry Debtors

VVN

DEGR

EE C

OLLE

GE



Sales a/c under Sales Account Date Particulars LF Debit Credit

Mr.X a/c Dr 8,000

To Sales a/c 8,000

(Being goods sold for cash)

6. PURCHASE VOUCHER (F9)

A purchase vouches is used when goods or services are purchased from the supplier (sundry

creditor). It is also known as Purchase invoice or bill, which is issued by the supplier for the

purchase made by the customer.

Syntax:

Cr: Cash/Bank/Sundry Creditor

Dr: Purchase a/c

(a) Purchased goods for cash ₹2,500 Ledger to be created - Purchase a/c under Purchase Account

Date Particulars LF Debit Credit

Purchase a/c Dr 2,500

To Cash a/c 2,500

(Being goods purchased for cash)

(b) Purchased goods from Mr. Y @ ₹5,000 Ledger to be created -Mr. Y a/c under Sundry Creditor Purchase a/c under Purchase Account

Date Particulars LF Debit Credit

Purchase a/c Dr 5,000

To Mr.Y a/c 5,000

(Being goods purchased from Mr.Y)

7. CREDIT NOTE VOUCHER (Ctrl + F8)

A credit note is prepared by the seller and it contains the date on which goods are returned,

name of customer, details of the goods received back, amount of such goods and reasons. A

credit note register records all the credit notes passed during the relevant period.

8. DEBIT NOTE VOUCHER (Ctrl + F9)

Debit note is prepared by the buyer and it contains the date of goods returned, name of the

supplier, details of the goods returned and reasons for returning the goods and so on. A debit

note register records all the debit notes passed during the relevant period.

9. REVERSING JOURNAL VOUCHER (F10)

Reversing journals are used to record the transactions without affecting the ledger accounts and

financial statements. All reversing journal transaction is stored in a Reversing Journal Register.

10. MEMO VOUCHER (Ctrl + F10)

VVN

DEGR

EE C

OLLE

GE



This is a non-accounting voucher and the entries made using it will not affect the accounts.

That is, Tally.ERP9 does not post these entries to ledgers but stores them in a separate Memo

Register.

PROBLEMS

1. Journalise the following transactions in the books of A Co. Ltd

Date Particulars Rs

1/6/18 Started business with cash 1,20,000

2/6/18 Paid into bank 60,000

4/6/18 Purchased goods from Kiran on credit 20,000

6/6/18 Paid to Shashi 9840

6/6/18 Discount allowed by him 160

8/6/18 Cash sales 40,000

12/6/18 Sold to Harish 10,000

15/6/18 Purchased goods from Bhaskar 15,000

18/6/18 Paid salaries 8,000

20/6/18 Received from Prem 4960

20/6/18 Allowed him discount 40

25/6/18 Withdraw from bank for office use 10,000

28/6/18 Withdraw for personal use 2000

30/6/18 Paid Nikhil by cheque 6000

2. Journalise the following transactions.

July 1 – Purchased goods worth ₹ 800 from Varun and ₹ 1200 from Tarun on credit

July 3 – Sold goods worth ₹ 1800 to Bharath & ₹1200 to Sharath

July 6 – Cash of ₹ 1500 received from Ramesh & ₹ 2500 from Suresh

July 7 – Paid ₹ 1200 to Ravi & ₹ 1200 to Surya

July 9 – Withdrawn from bank ₹ 600 for office use

July 10 – Withdrawn from bank ₹ 300 for personal use.

3. Journalise the following transactions.

Jan 1 – John started business with cash ₹ 1,25,000

Jan 2 – Bought goods from Mr. B ₹ 30,000

Jan 3 – Paid into Canara Bank ₹ 50,000

Jan 4 – Returned goods to Mr. B ₹ 1500

Jan 5 – Sold goods to Mr. S ₹ 8000

Jan 6 – Paid for cartage ₹ 200

Jan 7 – Received dividend on investment through bank ₹ 3000

Jan 8 – Paid salary

Jan 9 – Paid cash to Mr. B in full settlement ₹ 28,000

Jan 10 – Received cash from Mr. S in full settlement ₹ 7500

4. Journalise the following transactions in the books of Mr. Mohan.

VVN

DEGR

EE C

OLLE

GE



April 1 – Started business with cash ₹ 40,000; machinery ₹25,000; furniture ₹10,000

April 2 – Purchased goods for cash - ₹25,000

April 5 – Paid tuition fees of his daughter ₹ 1,500

April 7 – Sold goods for cash ₹ 8,000

April 8 – Paid household expenses ₹ 3500

April 10 – Sold personal car for ₹25,000 & the amount is brought into the business.

April 15 – Withdrew goods for personal use ₹ 2000

April 16 – Sold goods to Nagaraj on credit ₹ 8000

April 18 – Sold old machinery ₹ 1000

April 19 – Purchased goods on credit from Mr. Raj ₹ 20,000

April 20 – Received interest on investment ₹ 6000

April 22 – Received a cheque from Nagaraj ₹ 5000

April 25 – Issued a cheque to Mr Raj ₹ 12,000

April 26 – Received cash from Arun ₹ 4000

April 27 – Paid cash to Mr. Bhargav ₹ 1000

April 28 – Returned goods to Mr. Raj ₹ 1000

April 29 – Nagaraj returned goods ₹ 500

April 30 – Paid rent ₹ 1000 & salaries ₹ 12000

5. Journalise the following transactions

Sept 1 – Goods purchased from Mr. David ₹ 10,000

Sept 2 – Sold to Savitha ₹ 6000

Sept 3 - Sold to Ranjitha ₹ 3000

Sept 4 – Purchased from Mahesh ₹ 2000

Sept 5 – Sales return by Savitha ₹ 200

Sept 10 – Bought from Ram ₹ 6000

Sept 12 – Returned to Mahesh ₹ 100

Sept 15 – Sold to Lokesh ₹ 8000

Sept 16 – Lokesh returned goods ₹ 200

Sept 17 – Sold goods to Ranjitha ₹ 3000

Sept 19 – Bought from Nagesh ₹ 500

Sept 21 – Sold to Savitha ₹ 3750

Sept 22 – Return to Nagesh ₹ 500

Sept 25 – Bought from David ₹ 7500

Sept 26 – Paid to David ₹ 12,000

Sept 26 – Paid to Ram ₹ 3000

Sept 28 – Received from Savitha in full settlement

Sept 29 – Received from Ranjitha & Lokesh in full settlement due from them.

Sept 30 – Paid Mahesh and Nagesh the full amount due to them.

Homework Problem:

VVN

DEGR

EE C

OLLE

GE




Nov 1 – Karthik commenced business with ₹ 20,000

Nov 2 – Paid into bank ₹ 5000

Nov 3 – Purchased worth ₹ 10,000 from Madhu & Co.

Nov 4 - Purchased worth ₹ 5000 from Anu.

Nov 6 – Goods worth ₹ 4000 sold to Asha

Nov 8 – Sold goods worth ₹ 2000 for cash

Nov 10 – Goods returned by Asha ₹ 50

Nov 15 – Paid rent ₹ 250

Nov 18 – Withdrawn from bank for office use ₹ 2500

Nov 20 – Paid salaries ₹ 1800

Nov 26 – Goods returned to Anu ₹ 100

Nov 27 – Paid to office furniture ₹ 1500 by cheque

Nov 28 – Received ₹ 3950 cash from Asha

Nov 29– Paid Anu ₹ 4900


Commenced business with cash ₹ 1,00,000

Cash deposited into bank ₹ 25,000

Furniture purchased for cash ₹ 20,000

Goods purchased for cash ₹ 10,000

Machinery sold for cash ₹ 35,000

Goods sold for cash ₹ 15,000

Rent paid ₹ 5000

Interest received ₹ 7500

3. Journalizethe following transactions

Started business with cash ₹ 10,000

He opened an account and deposited ₹ 5000

Goods purchased from Ajay for ₹ 1750

Furniture bought for cash ₹ 2150

Goods sold to Vijay for ₹ 4500

Machinery sold for ₹ 3250

Cash paid to Ajay for his settlement

Cash received from Vijay to settle his account

Rent paid ₹ 750

Commission received ₹ 1000


VVN

DEGR

EE C

OLLE

GE



Started a business with cash ₹ 5,00,000

Opened an account at SBM and deposit ₹ 65,000

Cash withdrawn from SBM for office use ₹ 12,500

Cash withdrawn for his personal use ₹ 7500

Goods purchased from Naveen costing ₹ 42,500

Goods sold to Vishal ₹ 35,000

Goods bought for cash ₹ 15,000

Sold goods for cash ₹ 18,000

Cash paid to Naveen to settle his account

Cash received from Vishal to settle his account

Rent paid ₹ 2000

Interest received ₹ 3250

Goods bought from Manu worth ₹ 25,000

₹ 8500 worth of goods returned to Manu

Goods sold to Bharath worth ₹ 30,000

₹ 20,000 worth of goods returned from Bharath


Commencement of business with cash ₹ 1,85,000

He opened an account at SBM and deposit ₹ 55,000

Withdraw of cash for personal use ₹ 16,500

₹ 8500 withdrawn from bank for office use

Bought goods for cash ₹ 22,500

Sold goods for cash ₹ 32,500

Bought machinery from Anil worth ₹ 62,500

Sold equipment to Vimal worth ₹ 82,000

₹ 12,500 worth of machinery returned to Anil due to low quality

₹ 15,000 worth of equipment returned from Vimal

Cash paid to Anil to settle his account

Cash received from Vimal and settle his account

Salary paid in cash ₹ 15,000

Wages paid by cheque ₹ 7500

Rent received by cheque ₹ 10,000

INTRODUCTION OF REPORTS IN TALLY ERP9

Tally ERP9 provides the capability to generate various financial statements and a management

information system reports, thereby facilitating better management, effective control and well

informed decisions.

It allows generating numerous report and statements. The reports available in Tally ERP9 can be

grouped under the following board categories.

▪ Financial Statements & Reports

▪ Accounting Books & Ledgers

▪ Statement of Accounts

VVN

DEGR

EE C

OLLE

GE



▪ MIS

▪ Exception Reports

Financial Statements:

Financial statements & Reports and statements which comprise of the overall summary of all

transactions entered into the accounts books. In tally the reports are automatically generated.

In Tally ERP9, the financial statements are classified into the following:

➢ Balance Sheet

➢ Profit & Loss a/c

➢ Trial Balance

❖ Balance Sheet

It is a financial statement that includes the financial position or net worth of a company at any

given point. It lists the Assets & Liabilities of a company for a given period. The balance sheet

in Tally ERP9 displays the information entered in the default primary groups.

Path to view – Go to > Gateway of Tally > Reports > Balance Sheet

❖ Profit & Loss a/c

It is the financial statement that describes the operational results of the company or its earning

capacity for a given period. It lists the company’s incomes and expenditure.

Path to view – Go to > Gateway of Tally > Reports > Profit & Loss a/c

❖ Trial Balance

It is listing of all accounts, with their balances enters as debits and credits in columns, to

determine whether the accounts balance, that is whether total debits equal total credits.

Path to view – Go to > Gateway of Tally > Display > Trial Balance

VVN

DEGR

EE C

OLLE

GE



Accounts Books & Registers

Account books record individual transaction details which have entered. Though the items are

posted to different ledgers. Tally ERP9 brings together all the transactions of one category into

books of accounts for viewing and printing.

❖ Cash Book

Cash books is a ledger which records all cash receipts and cash payments

Go to > Gateway of Tally > Display > Accounts Book > Cash/Bank Book

❖ Bank Book

Bank book is a ledger which records all bank receipts and bank payments.

Go to > Gateway of Tally > Display > Accounts Book > Cash/Bank Book

❖ Purchase register

The purchase register is a record of all purchase transactions made by an organization. By

default, this register displays the month wise break up of purchases, however it can be further

configured to show the purchases of any period as per the users requirement.

Go to > Gateway of Tally > Display > Accounts Book > Purchase register

❖ Sales register

The sales register is a record of all sales transactions made by an organization. By default this

register displays the month wise break up of purchases however, it can be configured to show

the sales of any period as per the user’s requirement.

Go to > Gateway of Tally > Display > Accounts Book > Sale register

❖ Journal register

Journal register displays all the journal vouchers recorded for each month.

Go to > Gateway of Tally > Display > Accounts Book > Journal register

❖ Day Book

A day book records all transaction (i.e. Accounting, Inventory, Optional and Non-Accounting)

entered during relevant period. By default the day book displays the last voucher entry date of

regular voucher, but it can be sent to show any date of the users choice.

Go to > Gateway of Tally > Display > Day Book

VVN

DEGR

EE C

OLLE

GE



Trial Balance

Particulars Debit Credit

Capital Account XX

Sales XX

Purchase return XX

Commission or discount received XX

Long term loan XX

Bills Payable XX

Creditors XX

Advance to customers XX

Land and Building XX

Plant and Machinery XX

Equipment, Furniture, Fixtures XX

Cash in hand XX

Cash at bank XX

Debtors XX

Bills Receivable XX

Stock of raw materials XX

Stock of finished goods XX

Purchases XX

Sales Return XX

Carriage inward/outward XX

Interest paid XX

Salary XX

Drawing XX

TOTAL XXX XXX

Problems:

1. Prepare trial balance as on 31/12/18

Particulars ₹

Ramesh capital account 2,75,000

Loan from HDFC Bank 4,25,000

Plant & Machinery 3,30,000

Cash in hand 20,000

Balance at bank of Baroda 1,75,000

Trade Debtors 3,55,000

Bills Payable 2,95,000

O/s expenses 40,000

Pre-paid insurance 20,000

VVN

DEGR

EE C

OLLE

GE



Opening stock 1,35,000

2. Prepare trial balance of Shree Company as on 31/3/19

Particulars ₹

Capital Account 60,000

Bank Overdraft 40,000

Machinery 25,000

Bills payable 30,000

Wages 2,000

Drawings 20,000

Opening stock 35,000

Furniture 20,000

Bills Receivable 20,000

Salary 8,000

3. Prepare trial balance in the books of Singh.

Particulars ₹

Capital Account 25,000

Sales Account 20,000

Printing & Stationery 1500

Bills Receivable 4000

Creditors 15,000

Furniture 2000

Bank loan 5000

Carriage outward 1000

Cash in hand 500

Discount allowed 1500

Buildings 39,000

Purchases 18,000

Rent 1500

Wages 1000

Bills payable 5000

Debtors 20,000

Carriage inwards 1000

Insurance 500

Cash at bank 1000

Cash sales 23,500

Drawings 1000

VVN

DEGR

EE C

OLLE

GE



4. Prepare Trial balance. (2016)

Particulars ₹

Debtors 10,000

RBDD 1,000

Share Capital 2,00,000

5% Debentures 1,00,000

Trade Creditors 25,000

Goodwill 25,000

Land and building 2,25,000

Closing stock 6,000

Share premium 8,000

Plant and machinery 50,000

P/L Account (Loss) 15,000

Opening stock 13,000

VVN

DEGR

EE C

OLLE

GE

Documents

UNIT 4 CONFIGURING TALLY CONFIGURING TALLY (F12) VVN