Chapter
Chapter
1
Fundamental of
Accounting
3
5
Maintaining Chart
of Accounts
Banking
Chapter
Chapter
2
4
Introduction to
TallyPrime
Recording and
Maintaining
Accounting
Transactions
Chapter
7
Chapter
Data
Security
Chapter
6
8
Generating
Financial
Statement and
MIS Reports
Company Data
Management
C
Chapter
Chapter 1
Agenda
Maintaining Subsidiary
Books and Control
Accounts
Posting Journal
Entries
2
4
1
3
Understanding the
Concepts and
Golden rules of
accounting
Preparation of
Financial
Statements
5
Depreciation and
Computerised
Accounting
Session 1
Objective
Session 2
Session 3
 Understanding of Accounting
 Introduction of Accounting
 Phases of Accounting
 Terminologies
 Concepts.
 Understanding the Golden Rules of Accounting
 Define and Explain
 Trial Balance
 Trading Account
 Profit and Loss Account
 Balance Sheet.
 Maintaining Subsidiary Books of Control Accounts
 Define and Explain of Depreciation
 Computerised Accounting
Meaning of Accounting
Accounting
Identifying
Systematic
Recording
Summarizing
Analyzing
Interpreting
Financial Reports
 The first step will be identifying the accounts involved in the transaction.
 The next step will be to record the transaction systematically.
 Then you need to classify, analyze the transaction and then summarize it at the end of the year.
 At last, we interpret the result of the above steps in the form of a Financial Report.
Phases of Accounting Cycle
The following chart will depict the different phases/process of the accounting cycle.
Understanding the Transaction
Journal Entry
Ledger Posting
Trial Balance
Profit & Loss Account
Balance Sheet
Phases of Accounting Cycle
What does each phase of the accounting cycle represent or mean?
•
•
Understand the Transaction
Check & analyze the transaction
Capture and classify details like
Date, Debit or Credit amount
Journal Entry
• Recording Transaction in
Journal by debiting and
crediting the different account.
Ledger Posting
• Transfer the transactions in a specific
category
• It helps you to find all the information and
types of transactions
Phases of Accounting Cycle
What does each phase of the accounting cycle represent or mean?
Trial Balance
• Summary of the financial data
• List down all the general ledger
accounts into debit and credit
account column
• Ensures that the entries in the
company's book-keeping system
are mathematically correct
Profit & Loss Account
• Determine the net profit/loss of a
business that occurs during the
accounting period.
Balance Sheet
• Summary of the financial
balances of a business or
an organization.
Terminologies of Accounting
The commonly used accounting terms in the business are:
Capital
Transaction
Assets
Creditors
Revenue
Drawings
Bad Debts
Liability
Purchase
Return
Stock
Sales
Sales Return
Purchases
Debtors
Concepts of Accounting
Accounting Concepts are those basic assumptions and conditions on which accounting is based
Business Entry
Concept
Accrual Concept
Monetary Expression
Going Concern
Concept
Dual Aspects
Concept
Accounting Period
Concept
Revenue Realisation
Concept
Matching Concept
Cost Concept
Evidence Concept
Double Entry System
Recording of this twofold effect of every transaction is called the Double Entry System of Accounting,
it is necessary to debit one account and credit another account
The Double Entry Mode Format
Dr.
Particulars




Debit
Cr.
Credit
Every transaction is recorded in at least two accounts.
The total amount debited and credited must be equal.
In accounting, the terms debit (abbreviated as Dr.) and credit (abbreviated as Cr
The transactions are to be recorded on the left or right of the account.
Debit
Debit
Credit
Credit
Credit
Asset
Expense
Liability
Income
Capital
Decrease
Asset
Expense
Liability
Income
Capital
Increase
Rules of Debit and Credit
Credit
Credit
Debit
Debit
Debit
Elements of Financial Statements
Balance Sheet
Assets
Liabilities
Financial
Statement
Capital
/Equity
Profit & Loss Account
Expenses/
Loss
Revenue
/income
Solving Journal Transactions Activity
Let us record the transactions using Debit and Credit rules for the Business
As on 1st April 2021, Naresh commenced the business with ₹15,00,000 by Cheque of Kotak Bank A/c
vide cheque number 540102.
Journal Entry
Journal
Date
1st April 2021
Particular
Kotak Bank A/c ……………………….. Dr
To Owner’s Capital Account
(Being amount invested by the owner )
L.F
Dr.
Cr.
₹15,00,000
₹15,00,000
Golden Rules of Accounting
An ‘account’ is a statement of transactions relating to one of the two aspects of a business
transaction. Based on the aspect being recorded, an account can be ‘debited’ or ‘credited’.
Types of Accounts
Personal Accounts
These are relating to individuals, a group of individuals, firms and institutions.
For Example:
Mr. Manoj (Individual account),
Citi Bank A/c (an Institution’s account)
Naveen & Sagar (Partnership firm)
Personal Accounts
The Golden rule for Personal Account is :
 Debit the Receiver
 Credit the Giver
For Example: Daksh Enterprises Pvt. Ltd. paid ₹ 54,000 to Roshan Electricals Pvt. Ltd. by ICICI Bank vide
cheque no 462001, for the credit purchase made earlier. (Passing entry in the books of Daksh Enterprises Pvt Ltd)
Identify the category they belong to
 Roshan Electricals Pvt. Ltd. – It is related to a company. Hence it is classified under the Personal Account.
 ICICI Bank- It is an institutional account. Hence it is classified under the Personal Account.
Personal Accounts
Apply the Rule
 Rule of Debit and Credit
Accounts
Types
Roshan Electricals
Pvt. Ltd.
ICICI Bank
Increase(+)
Decrease(-)
Narration
Liability
Debit
Being amount paid to the supplier and Liability is
decreasing to business
Asset
Credit
Being amount paid through bank and asset is
decreasing to business.
 Golden Rule of Account
Particulars
Debit
Roshan Electricals Pvt. Ltd. A/c………..Dr
₹ 54,000
To, ICICI Bank A/c
Credit
Applied Rules
Debit the Receiver
₹ 54,000
Credit the Giver
Real Account
These are relating to the property or assets and cash belonging to a business concern.
For Example:
Land and Building (assets)
Cash-in-hand (asset)
Real Account
The Golden rule for Real Account is :
 Debit What comes in
 Credit What goes out
For Example: Daksh Enterprises Pvt. Ltd. purchased furniture of ₹9,000 for cash.
Identify the category they belong to:
 Furniture – It is a tangible asset of a business the value can be measured in terms of money.
Hence it is classified under Real Account.
 Cash - It is a tangible Asset and payment is made by Cash. Hence it is classified under the
Real Account.
Real Accounts
Apply the Rule
 Rule of Debit and Credit
Accounts
Types
Increase(+)
Furniture
Asset
Debit
Cash
Asset
Decrease(-)
Narration
Being Daksh purchased furniture and asset
is increased to the business
Credit
Being Cash paid to purchase furniture and
asset is decreased to the business
 Golden Rule of Account
Particulars
Debit
Furniture A/c…………………………….Dr
₹9,000
To, Cash A/c
Credit
Applied Rules
Debit What comes in
₹9,000
Credit What goes out
Nominal Accounts
 Nominal account is related to the incomes, expenses, losses and gains of a business concern.
 Without nominal accounts, it is difficult for management to find out where the money was spent.
 The net result of all the nominal accounts helps the management to find out the profit earned, or loss
incurred by the business.
For Example: Rent, salary, telephone expenses, discount allowed, discount received, etc.
The Golden rule for Real Account is :
 Debit All Expenses and Losses
 Credit All Incomes and Gains
Nominal Accounts
For Example: Daksh Enterprises Pvt. Ltd. purchased goods worth ₹ 7,000 for cash.
Identify the category they belong to:
 Purchase – The purchase is the cost of buying goods for sale in the ordinary course of the business. Hence
it is a kind of expense. So, it is classified under the Nominal Account.
 Cash - It is a tangible Asset and payment is made by Cash. Hence it is classified under the Real Account.
Apply the Rule
 Rule of Debit and Credit
Accounts
Types
Increase(+)
Purchase
Expense
Debit
Cash
Asset
Decrease(-)
Narration
Being goods purchased and expenses is
increased to the business
Credit
Being Cash paid to purchase goods and asset
is decreased to the business
Nominal Accounts
 Golden Rule of Account
Particulars
Debit
Purchase A/c…………………………….Dr
₹7,000
To, Cash A/c
Credit
Applied Rules
Debit All Expenses and
Losses
₹7,000
Credit What goes out
Meaning of Journal
Journal is a daybook or a daily record wherein the transactions are recorded in chronological order, i.e.
as and when they take place.
The format of Journal
Journal
Date
Particular
L.F
Debit
Credit
Types of Journal Entries
They are two types of Journal Entries;
1. Simple Journal Entry : A journal entry in which one account is debited and one account is credited.
Example: As on 15th April 2021, Purchased goods from Eureka Enterprises on credit ₹60,000.
Journal
Date
Particular
15th April
2021
Purchase Account………………. Dr
To Eureka Enterprises Account
L.F
Debit
Credit
₹60,000
₹60,000
(Being goods purchased from Eureka Enterprises )
In the journal entry we have debited one account i.e., Purchase Account and Credited one account i.e., Eureka
Enterprises Account.
Types of Journal Entries
2. Compound Journal Entry : Instead of recording several Journal entries, we can record the
transaction which involves more than one debit or credit in a single journal entry called Compound
Journal Entry.
Example: As on 30th April 2021, made a payment of ₹50,000 towards -Telephone Bill ₹20,000
Stationery Expenses ₹20,000, and Travelling Expenses ₹10,000 by cheque.
Date
Particular
30th April 2021 Telephone Bill………………………….. Dr
Debit
₹20,000
Stationery Expenses…………………..Dr
₹20,000
Travelling Expenses…………………….Dr
₹10,000
To Citi Bank Account
(Being expenses paid by Citi bank cheque)
L.F
Credit
₹50,000
Posting of Journal Entries
Posting Journal entries for April
Dhanalaxmi Enterprises furnishes the following information regarding transactions for April.
Date
Particular
2nd April
Owner invested the amount in a business for ₹ 6,00,000 vide State Bank of India cheque
no: 560091 to ICICI Bank.
Solution
Date
Particular
2nd April
ICICI Bank A/c…………………Dr
To Owners Capital A/c
(Initial Capital to start up the business paid through
SBI cheque 560091)
L.F
Debit
₹ 6,00,000
Credit
₹ 6,00,000
Posting of Journal Entries
Posting Journal entries for April
Dhanalaxmi Enterprises furnishes the following information regarding transactions for April.
Date
Particular
3rd April
Purchased Machinery from SAM Machine Tools amounted ₹ 1,00,000 by paying cheque
(cheque no: 550023) of ICICI Bank.
Solution
3rd April
Machinery A/c………………… Dr
To ICICI Bank A/c
(Purchase of Machinery paid through ICICI Bank
cheque 550023)
₹ 1,00,000
₹ 1,00,000
Posting of Journal Entries
Posting Journal entries for April
Dhanalaxmi Enterprises furnishes the following information regarding transactions for April.
Date
Particular
4th April
Purchased Furniture from KPN Furnitures for ₹90,000 by paying cheque (cheque no:
550025) of ICICI Bank.
Solution
Date
Particular
4th April
Furniture A/c…………………Dr
To ICICI A/c
(Purchase of furniture paid through ICICI Bank
cheque 550025)
L.F
Debit
₹ 90,000
Credit
₹ 90,000
Posting of Journal Entries
Posting Journal entries for April
Dhanalaxmi Enterprises furnishes the following information regarding transactions for April.
Date
Particular
5th April
Goods purchased from Laxmi Traders amounted ₹ 50,000
5th April
Purchase A/c………………… Dr
To Laxmi Traders A/c
(Goods purchased from Laxmi Traders on credit)
₹ 50,000
₹ 50,000
Meaning of Trial Balance
 The trial balance is a statement showing the balances or total of debits and credits of all the
accounts in the ledger.
 It is an important statement in the accounting process as it shows the final position of all
accounts and helps in preparing the final statements.
Format of a Trial Balance
Particulars
L.F
Debit(₹)
Credit (₹)
Trial Balance
Preparation of a Trail Balance
From the following ledger balances extracted from the books of MC Enterprises,
prepare the Trial Balance as on 31st March
Particulars
Debtors
Creditors
Capital
Drawings
Cash balance
Bank balance
Purchases
Amount (₹)
15,000
10,000
20,000
2,600
500
700
6,000
Particulars
Purchases return
Sales return
Buildings
Rent paid
Furniture
Sales
Interest received
Amount(₹)
700
600
30,000
4,000
6,600
35,000
300
Solution of Trial Balance as on 31st March
Particulars
Debtors
Creditors
Capital
Drawings
Cash balance
Bank balance
Purchases
Purchases return
Sales
Sales return
Buildings
Rent paid
Furniture
Interest received
Total
Debit (₹)
Credit (₹)
15,000
2,600
500
700
6,000
600
30,000
4,000
6,600
66,000
10,000
20,000
700
35,000
300
66,000
Financial Statements
Stakeholders need to know the business’ position at the end of each financial year. Financial statements serve
a significant purpose to users of accounting information, in knowing about the profitability and the financial
position of the organisation.
Financial statements normally include:
 Trading Account
 Profit & Loss Account
 Balance Sheet
Trading Account
A Trading account merely indicates the result of buying and selling of goods, i.e. the gross profit or gross
loss on trading, without considering administration, selling and financial expenses incurred in running the
business.
Let us see the format of Trading Account.
Trading Account-Format
Particulars
To Opening stock
To Purchases
Less: Purchase returns
To Cartage
To Carriage inwards
To Freight
To Wages
To Water charges(Factory)
To Electricity (Factory)
To Packaging
To Gross Profit (Gross profit
Amount Amount Particulars
(₹)
(₹)
xxx By Sales
xxxx
xxx
Less: Sales returns
xxx By closing stock
Amount Amount (₹)
(₹)
xxxx
x x xx
xxx
xxx
xxx By Gross Loss transferred to Profit and
Loss Account)
xxx
xxx
xxx
xxx
xxx
xxx
xxx
transferred to profit & loss account)
xxxx
xxxx
Trading Account
Explanation about the Trading Account Format
Debit Side Items
Credit Side Items
The value of opening stocks of goods (i.e., the stock of Total sales made during the period less the value of
goods with which the business was started).
returns, i.e., net sales.
Net purchase made during the year (i.e., purchases –
purchase returns).
The value of the closing stock of goods
Direct expenses if any.
Gross Loss
Gross Profit
Profit and Loss A/c
 The profit and loss account helps to ascertain the net profit earned or net loss incurred during a particular
period.
 This helps the company in monitoring and controlling the costs incurred and in improving its efficiency.
The Net Profit is expressed as:
Net Profit = (Gross Profit + Other Income) – (Selling and Administrative Expenses + Depreciation +
Interest + Taxes+ Other Expenses)
Let us see the format of Profit & Loss Account
Profit & Loss Account-Format
Particulars
To Gross loss (Transferred from Trading Account)
To Salaries
To Rent, rates and taxes
To Office lighting and heating
To Insurance
To Printing and stationery
To Postage and telegrams
To Interest paid
To Discount allowed
To Bad debts
To Repairs
To Depreciation
To Commission paid
To Carriage outwards
To Travelling expenses
To Interest on loan
To Net profit (Transferred to capital account)
Amount (₹)
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxxx
xxxx
Particulars
By Gross Profit (Transferred from Trading Account)
By Rent received
By Commission received
By Cash Discount earned
By Bad debts recovered
Amount
(₹)
xxx
xxx
xxx
xxx
xxx
xxxx
Balance Sheet
The Balance Sheet is a statement that summarises the assets and liabilities of a business.
 A company’s long-term financial strength and performance
 A company’s efficiency in day-to-day working capital management
 A company’s asset portfolio
Balance Sheet-Format
Liabilities
1. Capital
Less: Drawings
Less: Net loss
2. Long term Liability
Long term loan
Long term deposits received
Bank Overdraft
3. Current Liability
Income received in advance
Liabilities for expenses
Sundry creditors
Bills Payable
Short term loans
Balance Sheet as on 31st March 2021
Amount (₹)
Amount (₹) Assets
1. Fixed Assets
xxx
Goodwill
xxx
Patents
Copyrights
Land & Building
Amount(₹)
Amount(₹)
xxx
xxx
xxx
xxx
xxx
xxx
Plant and machinery
Motor vehicles
xxx
xxx
xxx
xxx
Furniture and fixtures
Loose tools
xxx
xxx
xxx 2.Long Term Investments
xxx 3.Current Assets
xxx
Short term investments
xxx
Outstanding incomes
xxx
Prepaid expenses
Closing stock
Sundry debtors
Bills Receivables
Cash at Bank
Cash in Hand
xxxx
xxxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxxx
Activity Prepare the Trading Account as on 31st March
Particulars
Opening stock
Purchases
Purchase returns
Carriage Inwards
Sales
Sales returns
Factory lighting
Fuel and oil
Freight inwards
Marine insurance
Wages
Water Charges
Electricity
Factory rent
Packing materials
Factory Insurance
Closing Stock
Amount (₹)
15,000
65,000
3,000
1,000
1,50,000
7,000
2,000
1,000
1,500
4,500
9,000
2,000
2,500
9,000
2,000
3,000
13,200
Solution Trading Account as on 31st March
Particulars
Amount
(₹)
To Opening stock
To Purchases
Less: Purchase returns
To Carriage inwards
To Freight inwards
To Factory lighting
To Wages
To Fuel and oil
To Marine insurance
To Water charges
To Electricity
To Factory Rent
To Packaging Materials
To Factory Insurance
To Gross profit (Gross profit transferred to
profit and loss account)
Amount Particulars
Amount
Amount
(₹)
15,000 By Sales
(₹)
1,50,000
7,000
(₹)
65,000
3,000
Less: Sales returns
62,000 By closing stock
1,000
1,500
2,000
9,000
1,000
4,500
2,000
2,500
9,000
2,000
3,000
41,700
1,56,200
1,43,000
13,200
1,56,200
Activity Prepare the Profit and Loss Account as on 31st March
Particulars
Amount (₹)
Gross profit
3,00,000
Salaries
Commission received
Rent Paid
50,000
2,000
15,000
Office lighting
3,000
Advertisement
5,600
Discount allowed
3,000
Insurance premium
2,300
Travelling Expenses
2,100
Solution Profit & Loss Account as on 31st March
Particulars
Amount (₹)
Particulars
To Salaries
50,000 By Gross Profit b/d
To Rent paid
15,000 By Commission received
To Office lighting
3,000
To Advertisement
5,600
To Discount allowed
3,000
To Insurance premium
2,300
To Travelling Expenses
2,100
To Net profit (Transferred to
2,21,000
capital A/c)
3,02,000
Amount(₹)
3,00,000
2,000
3,02,000
Activity Prepare the Balance Sheet for 31st March
Particulars
Owner’s Capital
Long Term Loan
Sundry Creditors
Sundry Debtors
Investments
Bills Receivables
Plant and Machinery
Land and Building
Goodwill
Patents
Bills Payables
Cash-in-Hand
Cash-at-Bank
Net Profit
Closing Stock
Bank Overdraft
Amount (₹)
1,05,000
70,000
28,000
52,500
35,000
8,750
39,375
43,750
17,500
8,750
22,750
9,800
18,200
26,250
27,125
8,750
Solutions Balance Sheet for the year ending 31st March
Liabilities
Balance Sheet as on 31st March 2021
Amount (₹)
Amount (₹) Assets
1. Capital
Sundry Creditors
Profit and Loss A/c
Amount
(₹)
(₹)
1,05,000 1. Fixed Assets
2. Loan (Liability)
Long-Term Loans
Bank Overdraft
3. Current Liability
Bills Payable
Amount
78,750
70,000
8,750
22,750
28,000
Plant and
Machinery
Land and Building
Goodwill
50,750
Patent
2. Long Term
Investment
Investment
26,250 3. Current Assets
Cash-in-Hand
Cash-at-Bank
Sundry Debtors
Closing Stock
Bills Receivable
2, 60,750
1,09,375
39,375
43,750
17,500
8,750
35,000
1,16,375
9,800
18,200
52,500
27,125
8,750
2,60,750
Subsidiary Books
Business transactions are first recorded in the journal and then posted to ledger accounts.
This section deals with the following special books.
1.
Cash Book
2.
Purchases book
3.
Purchases Return (Return outwards) book
4.
Sales Book
5.
Sales Return (Return inwards) book
6.
Journal Proper
Subsidiary Books & Control Accounts
1. Cash Book
The Cashbook is an accounting book which records cash receipts and disbursements..
A. Single Column Cash Book
Single Column Cashbook has amount column on each side. All cash receipts are recorded on the debit
side and all cash payments on the credit side.
The format of a Single Column Cash Book is shown
Date
Particulars
R No
L.F
Amount (₹)
Date
Particulars V No
L.F Amount (₹)
Subsidiary Books & Control Accounts
B. Double Column Cash Book
A double column cash book contains two columns of amounts on each side of the cash book..
The format of a Single Column Cash Book is shown
R
Cash Bank
Date Particulars No L.F (₹)
(₹)
Date
Particulars
V
No
L.F
Cash Bank (₹)
(₹)
C. Three Column Cash Book
Triple Column Cash Book has three amount columns, one for cash, one for Bank and one for the
discount, on each side.
Date Partic R.N L.F Discount Cash Bank Date Partic V L.F Discount Cash
ular
o
Allowed
ular
No
Received
Bank
Subsidiary Books & Control Accounts
2. Petty Cash Book
Miscellaneous expenses such as conveyance, cartage, postage, telegrams, and so on are common to
every organisation. These are generally repetitive, and it would burden the cashier to record all these
payments in the main cash book
3. Purchase (Journal)Book
A purchase (journal) book is used to record all credit purchases of goods used in the normal course of
business.
4. Purchase Return (Journal) Book
Goods purchased are sometimes returned to the supplier for reasons such as poor quality, defects and so
on.
5. Sales (Journal) Book
The sales journal is a book maintained to record all credit sales of merchandise.
Subsidiary Books & Control Accounts
6. Sales Return (Journal) Book
Sales return (journal) book is used to keep a record of the goods returned by customers.
7. Journal Proper
The Journal proper is a book maintained to record transactions that cannot be recorded in any of the
special journals. It is also known as the modern journal or journal residual.
8. Control Accounts
Control Accounts also termed as Controlling Accounts, are accounts prepared to keep the general ledgers
like Asset Account (Accounts Receivable, Accounts Payable, Inventory) nice and clean.
Depreciation
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset
arising from use, the passage of time or obsolescence through technology and market changes.
The list of Depreciation methods as follows :
 Straight-line depreciation
 Diminishing balance method
 Annuity depreciation
 Sum-of-years-digits method
 Units-of-production depreciation method
 Group depreciation method
 Composite depreciation method
Computerized Accounting
Computerised Accounting is a system that automatically carries out “Mechanical Activities” in the accounting
process. Accounting being the backbone of any business, accounting software becomes the most important
part of office automation activities.
Advantage of Computerized Accounting :
Arithmetical accuracy
Timesaving
Multiple reports on a timely basis
Accounting Structure for computerized accounting
As per any accounting software, there are only two types of ledger accounts,
Accounts having Debit balance,
Accounts having Credit balances
Accounting is maintained with two basic reports.
Profit & Loss Account
Balance Sheet
Depreciation and Computerized
Accounting
Conclusion
Add your own text
here this is Financial Statements
awesome
Golden Rules of Accounting
Add your own text
here this is
awesome
Phases of Accounting
Add your own text
here this is
Meaning of Accounting
awesome
Fundamental of
Accounting
A ____________ is a business activity that involves the transfer of money or money’s worth
between two accounts.
A
Transaction
B
Ledger
C
Subsidiary
D
Group
The earnings of a business through its activities and operations are called_________.
A
Share Capital
B
Revenue
C
Expenditure
D
Retained Earning
The act of recording a transaction in the journal is called ___________.
A
Summarizing
B
Vouchering
C
Journalising
D
Description
Which one of the following financial statements helps in verifying the arithmetical accuracy of
posting to the ledger accounts?
A
Balance sheet
B
Profit and Loss A/c
C
Ratio Analysis
D
Trial Balance
Thank you
Chapter 2
Agenda
Downloading and
Installing
TallyPrime
Navigating from
Anywhere to
Anywhere in
TallyPrime
Getting started with
TallyPrime
4
2
1
3
Introduction to
TallyPrime
Types of License in
TallyPrime and
working Tally in
Educational Mode
6
5
Company creation
and setting up
company features
in TallyPrime
7
Alter and
Shut
Company
Session 1
Objective
Session 2
Session 3




Introduction to TallyPrime
TallyPrime encompasses the salient features
How to download and install TallyPrime
Types of Licenses in TallyPrime
 Activation of New License
 Reactivation of New License
 Use License from Network in a Multiuser
Environment
 Working TallyPrime in Educational Mode
 To Create Company and Setting up Company Features in
TallyPrime
 Navigation from Anywhere to Anywhere in TallyPrime
 Top Menu
 Right Buttons
 Keyboard shortcut keys in TallyPrime
 Go To
 Switch off
 Understanding F12 Configure, Alter Company details,
Shut the Company
Introduction to TallyPrime
TallyPrime is the world's one of the fastest and most powerful concurrent multi-lingual business Accounting,
Inventory management, Data management, Banking, Tax Deducted at Source (TDS), Tax Collected at
Source (TCS), Payroll Management and Good and Services Tax (GST) ready software.
Simplify the
Simplest
Greater
flexibility
New Look
and Feel
Features of TallyPrime
The TallyPrime encompasses the following salient features
Simplicity
Blazing Speed
• One step installation Process
• Powerful reporting engine
• Navigation on Fly
•
Power of accessing
• Allows drill-down facility from report level to the
transaction level.
• Maintain multiple companies and with unlimited
levels of classification & grouping capabilities
•
Capability to generate instant and accurate
reports
Take timely and correct decisions
Flexibility
• Flexibility to generate instant reports
for any given period (month/year)
Scalability
• Suits any style of business needs and eliminates
the necessity for a business.
Features of TallyPrime
The TallyPrime encompasses the following salient features
Real-time processing
• It also facilitates real-time multi-user
environment.
• Immediate posting & updating books
of accounts
Intelligent Setup Manager
• Setup tool can interact with all the components of
the operating system
• It guide’s you in troubleshooting the licensing
run-time issues
Concurrent multi-lingual capability
•
•
Viewing them in another language and printing them
in yet another Indian language.
Capability of maintaining many languages and few
international languages
Features of TallyPrime
The TallyPrime encompasses the following salient features
Accounting without codes
• TallyPrime allows accounting with
the regular names
Easy Navigation
• Simplified navigation
Multi Tasking
• Viewed and printed from
anywhere of the Tally screen
without disturbing the current
work.
Printing
• Invoices and reports can be printed in an
eco-friendly
Downloading and Installation of TallyPrime
Downloading
 You can start using the TallyPrime features in a matter of minutes.
 All you need to do is download the setup file, install TallyPrime, and activate/reactivate or configure the
license.
Now let us walkthrough Downloading Process
www.tallysolutions.com
Downloading and Installation of TallyPrime
Computers must meet the following technical requirements
Particulars
System Recommended Configuration
Operating system (OS)
Microsoft Windows 7 or above.
System type
64-bit operating system (for the OS and other applications such as MS Excel, Adobe
Acrobat, and so on).
Memory (RAM)
A minimum of 4 GB or more.
Hard disk
30 MB of free space to install the application.
Processor
Intel Core2Duo and above or equivalent.
Connectivity
Continuous connection to the internet.
Monitor resolution
1024 x 768 or higher.
Downloading and Installation of TallyPrime
Installation
 The product comes with an intelligent setup manager.
 It interacts with all the system components where
Tally is running and guide you with troubleshooting
application run-time issues.
Now let us walkthrough Installation Process
Types of Licenses in TallyPrime
There are Two Types of Licenses in TallyPrime
Silver (Single User)
The Silver Edition is a single-user license. The license can be installed and
used on a single computer only. Only one user can access the license at a time
Gold (Multiuser)
The Gold Edition is a multi-user license. Multiple users can access the
license at the same time in a LAN environment.
Types of Licenses in TallyPrime
The Rental License
The rental license gives you full capability of TallyPrime, including upgrades and TSS features, for the Rental License
Duration.
The Rental License Duration is available for Month/Quarter/Annual. Rental License can be procured for both Silver
(Single User) and Gold (Multiuser).
After starting TallyPrime for the first time, the License screen will appear with a message Welcome to TallyPrime
Activate New License
Once after Installing TallyPrime, the new users of TallyPrime, who have just purchased the license must activate the
license.
1) Start TallyPrime > From the License screen, a message
Welcome to TallyPrime.! appears
2) Click on A: Activate New License.
3) Enter the Serial Number (which is procured), Activation Key,
and Administrator e-mail ID.
4) The License will be activated, and the Unlock License screen
appears.
5) The Unlock Key will be sent to the e-mail ID which is provided
while activating the license. Enter the same to unlock the
license.
6) After the license is unlocked, TallyPrime will prompt a message
as Congratulations! Your License is successfully activated.
Reactivate License in TallyPrime
From the License screen, R: Reactivate Existing License option must be used in case of reactivating TallyPrime for the existing Tally users.
This is needed in case Upgrading the license from Earlier Version to Latest Version (With a Valid Tally Software
Service (TSS).
 Shifting of TallyPrime license from one computer to another or in case of activating
TallyPrime license on the same computer once again.
Reactivate License in TallyPrime
To reactivate the license in TallyPrime
1) From the License screen, Click on R: Reactivate Existing License Alternatively, press F1 (Help) > Settings > License >
Manage License > Click F7: Reactivate
2) Click Yes, TallyPrime will get auto restarted.
3) Enter the Tally.NET ID and password.
4) You will get a message as Congratulations! Your License is successfully reactivated
Surrender the TallyPrime License
Surrender the TallyPrime
After Re-activating the TallyPrime License, if there is any requirement of shifting of TallyPrime license from one computer
to another or in case of re-installing the Windows Operating System, the TallyPrime license can be surrendered.
After making the changes in the system, the TallyPrime license can be Re-activated.
To Surrender the TallyPrime license,
1) From Gateway of Tally, click on F1: Help > Settings > License > Manage License > Press CTRL+7 to
Surrender.
2) Enter the Tally.NET ID and password.
3) You will get information as License Surrendered successfully.
Use License From Network in a Multiuser Environment
 From the License screen, U: Use License from Network option can be used
when there are multiple users in the network, you need to configure your client
computers to the Tally Gateway Server to access the license
 Tally Gateway Server is a Windows service that is required to access a licensed
version of your Tally product.
 We can access the license via LAN by configuring your computer to the Tally
Gateway Server where the license is active.
 After activating or reactivating the Tally license in the server system, you can
install TallyPrime in the Client system
 During installation itself, you can configure the Tally Gateway Server in TallyPrime
Setup Manager – List of Configurations screen
Working TallyPrime in Educational Mode
 From the License screen, T: Continue in Educational Mode option can be selected in case you want to use
TallyPrime without a license.
 This is very well used for learning purpose and also there are very few restrictions in educational mode .
 One of the major restrictions in education mode is
Date Restriction. You can use only 1st, 2nd and 31st
date of any of the month for recording a voucher or
viewing a report.
To work on TallyPrime without License,
From the License screen, Click on T: Continue in
Educational Mode in the license
Company Creation
The first step in working with TallyPrime is to create a Company. A Company in TallyPrime is a central
repository where we can maintain all the financial records of our business, and we can extract the required
financial reports and statements.
To create the company in TallyPrime, Open TallyPrime > Select Company screen appears. The same screen appears
after reactivating the license in TallyPrime the Select Company screen
Company Creation
Explanation of Select Company Options
 You can create the company in the same drive where TallyPrime is installed. If required you may also press
backspace and change the Data directory drive.
 If you have configured the company for remote access feature in the remote end this option to be selected
to access the data remotely.
 The Drive path can be mentioned where the data to be stored/saved. By using copy & paste
( Ctrl+ C or Ctrl+Alt+ C for copy to paste Ctrl+V or Ctrl+Alt+ V) or type the location path manually.
 If already the transactions are recorded and maintained in D Drive, in the same location path if you want to
maintain the data this option to be selected. We can also browse the required location from this option.
Company Creation
Let us create a company using Tally. Open TallyPrime and Create a company
as Suhant Software Pvt. Ltd.
Let us get into Tally Now
Getting Started with TallyPrime
TallyPrime helps to run your business the way you want to. TallyPrime gives you a simple and consistent
experience, along with ease of discoverability of features across.
Navigating from Anywhere to Anywhere in TallyPrime
In TallyPrime, you can navigate or configure company and external operations from anywhere in the
application.
Top Menus are consistent and always available throughout the application to perform any operations
from anywhere without getting distracted from the current task that is being performed.
Top Menu
In TallyPrime, we can perform various tasks using the Top Menu options, without having to follow a rigid set of steps
for each task.
Using the Top Menu in TallyPrime, now you can navigate from 'Anywhere to Anywhere' within TallyPrime without the
need to know any navigation path or learn the short cuts keys to reach to any reports or create any transactions.
Top Menu Table
Let us navigate and understand the action of each Top Menu tables in Tally
By clicking on this option, the following actions can be performed using a single menu
K: Company
Y: Data
Z: Exchange
O:Import
Top Menu Table
By clicking on this option, the following actions can be performed using a single menu
E: Export
M: E-mail
P: Print
F1:Help
Right Button Option
Right Buttons
By using Right Button options, you can change the date, period and company details can be modified based on the
options given.
Right Button Bar in Gateway of Tally has two buttons F2: Date and F3: Company.
Right Button Option
Right Buttons
Remain constant on all screens –
Transaction, Masters and Reports
Different action in Transactions
,Masters and Reports
F2
F4
F3
F12
Different action in Transactions ,
Masters and Reports
CTRL+B
CTRL+H
CTRL+J
F10
Actions only in Vouchers
CTRL+F
CTRL+H
CTRL+I
Keyboard Shortcuts
We can perform any operation once, and throughout the product, consistently you will be able to
apply/use the harmonized shortcuts keys, uniform configurations and right side buttons.
 You can keep holding the ‘CTRL’ key in your keyboard, and observe how the options will appear
on the right button bar.
 Similarly, with the ‘ALT’ key, you can use this on any screen of TallyPrime to know what are the
key combinations available for the particular screen
Let us go through the shortcut keys in Tally
Go To
Go To option from the Top Menu is one of the main features in TallyPrime
To access the feature of Go To,
1) From Gateway of Tally > Press Alt+G Or Click G: Go To Open/Navigate to any report or
create any masters without disturbing the current work data.
Go To scenario
Mr.Sachin the accountant of Suhant
Software Pvt.Ltd. Recording Payment
Voucher
Mr.Ravi ask Sachin immediately
wants a print of Profit and Loss
A/c
Mr Sachin,
without
disturbing the
current voucher
work which of
the feature does
he use to take
the Print of Profit
& Loss A/c
asked by
Mr.Ravi
Switch To Scenario
Using Switch To option, you can Open/ Navigate any report by closing the current work
Mr. Abi , an accountant of Suhant Software Pvt.
Ltd., has created the necessary ledger like Purchase,
Sales, Customers and Suppliers account. Now, he
wanted to record the purchase transaction.
Instead of going to Gateway of Tally and navigating to
the voucher creation screen, he can press CTRL+G
for Switch To > Create Voucher > F9: Purchase.
F12 Configuration in TallyPrime
In TallyPrime the company features have been moved to the top menu.
Under K: Company option, the features have been revamped and arranged in Company Features based
on the usability.
Most of the features which are related to masters can be enabled during master creation
The Configurations across the product are organised to meet your invoicing and reporting preferences, with:
 Proper placement and grouping for ease of find-ability
 Sequencing based on use
 Layered presentation
F12 configurations have been made changes to ensure the key settings for the values in reports are readily
available under Basis of Values.
The F12 Configuration is moved to Top Menu such as M: Email, P: Print and F1: Help
Alter Company Details
To alter the company details such as (Company name, Address etc) in TallyPrime,
1)
From Gateway of Tally >click on K: Company > select Alter > In the Company Alteration screen,
make the necessary changes.
Shut the Company
To shut the company in TallyPrime,
From Gateway of Tally >click on K: Company > select Shut (Ctrl+F3) > Shut Company screen appears
Conclusion
Using Top Menu: Perform several
simulations activities
Add your own text
here this is awesome
Set the company feature and
Configuration
Create a company
Add your own text
here this is awesome
Add your own text
here this is awesome
Downloading and Installing
TallyPrime
Which of the following is not a feature of TallyPrime?
A
C
Blazing Speed
Easy Navigation
B
D
Multi-tasking
Accounting Software using code
By using which of the following options, we can navigate to reports and vouchers from
anywhere to anywhere within TallyPrime?
A
G:Go To
B
H:Change Mode
C
I:More Details
D
K:Company
In TallyPrime, which of the following option will not appear in the Top Menu?
A
C
F2:Date
Y:Data
B
K:Company
D
Z:Exchange
From Gateway of Tally, which among the following option is available in the Right Button?
A
F2:Date
B
K:Company
C
Y: Data
D
Z:Exchange
Thank you
Chapter 3
Agenda
Creating company
chart of accounts
Creating Inventory
Masters
2
4
1
3
Introduction to
Chart of Accounts
Creating
Accounting
Masters
Deletion of Masters
6
5
Alternation of
Masters
7
Multi Master
creation and
Display of Chart of
Accounts
Session 1
Objective
Session 2
Session 3
 Introduction to Chart of Accounts
 Creation of Accounting Masters
 Group Creation
 Ledger Creation
 Creation of Inventory Masters
 Creation of Stock Group
 Creation of Stock Category
 Creation of Units of Measure
 Creation of Stock Items
 Creation of Godown
 Alternation of Masters
 Deletion of Masters
 Detailed understanding of Creation and Display Chart o
Accounts
 Multi Groups, Ledger Creation
 Multi Stock Groups and Stock Items Creation
Introduction
 A chart of accounts is a listing of the names of the accounts that a company has identified and
made available for recording transactions in its general ledger
 A company has the flexibility to modify its chart of accounts to best suit its needs, adding accounts
as needed.
Let us maintain the chart of accounts for the company i.e, Suhant Software Pvt.Ltd. which is already created for
the 2nd Chapter Introduction to Tally.
Let us walk through the Business scenario in the Suhant Software Pvt.Ltd
Business scenario in the Suhant Software Pvt.Ltd
Computers
Deals
Computer
Accessories
Numbers
Warehouse
Bengaluru
Mobile
Phones
Boxes
Mumbai
Delhi
Kolkata
Chart of Accounts
A ‘Chart of Accounts’ is a list that depicts the accounts that a business uses to record transactions in its
books of accounts.
Tally automatically displays a company’s chart of accounts, based on the ‘Ledger’ and ‘Groups’ that are
created for the company.
The purpose of creating a chart of accounts is
 Classifying, recording, and reporting on your business transactions
 To use as an aid (reference) for looking up accounts when recording transactions.
 Without a chart of accounts, a business user would find it very difficult to find a list
of all his accounts.
Chart of Accounts-Groups
Groups are a collection of ledgers of the same nature. Account groups are maintained to determine
the hierarchy of Ledger Accounts, which helps determine and present meaningful and compliant
reports.
A ‘Group’ is an accounting group under which ledgers of the same nature are classified.
For Instance
Bank Accounts
• Default
Group
Kotak Bank A/c
• Ledger
created
under Bank
Alc
Chart of Accounts
Groups
28 Pre-defined Groups
Primary Groups
15
Balance Sheet
9 Group Items
1.
2.
3.
4.
5.
6.
7.
8.
9.
Capital
Loans(Liability)
Current Liabilities
Fixed Assets
Investments
Current Assets
Branch/Division
Misc. Expenses
Suspense A/c
Sub –Groups
13
Profit & Loss A/c
6 Group Items
1.
2.
3.
4.
5.
6.
Sales Accounts
Purchase Accounts
Direct Incomes
Direct Expenses
Indirect Income
Indirect Expenses
Balance Sheet
13 Sub-Groups Items
1. Reserves & Surplus
12. Cash-in-hand
2. Bank OD A/c
13. Bank Accounts
3. Secured Loans
4. Unsecured Loans
5. Duties & Taxes
6. Provisions
7. Sundry Creditors
8. Stock-in-hand
9. Deposits(Assets
10. Loan & Advance(Assets)
11. Sundry Debtors
Default list of Groups in Tally
From Gateway of Tally > Chart of Accounts > Under Accounting Masters > Enter on Group
28 Groups
Chart of Accounts-Ledger
A ‘Ledger’ is an account head.
Similarly, a customer is treated as an account head, and is called a ‘Party Ledger’. The Ledgers in the books
of accounts affect assets, liabilities, income or expenses.
For Instance
Arvind
Party
• Ledger
created
Sundry
Creditors
• To be
grouped
under
(Default
Group)
Chart of Accounts-Ledger
Newly created company, there are two pre-defined ledgers available in Tally
The list of Pre-defined Ledgers
2 Pre-Defined
Ledgers
Cash
Profit &
Loss A/c
Default list of ledgers in Tally
From Gateway of Tally > Chart of Accounts > Under Accounting Masters >Enter on Ledgers
Bold - Parent groups and Sub-groups
Italic are ledgers
Creation of Masters Screen
TallyPrime allows you to group your ledger accounts right at the time of creating your accounts chart. Your
reports and statements always reflect the desired classification. You can create any number of masters in
Tally.
From Gateway of Tally > Under MASTERS > the list of masters appears
Accounting Masters
To create the accounting masters in Tally,
 Masters
 G:Go To
 G:Switch To
To create the accounting masters in Tally,
From Gateway of Tally> Create> under Accounting Masters, we get the list of active masters as follows:




Group
Ledger
Currency
Voucher Type
If we click on Show More from the same screen, we get the list of additional other masters as follows:
 Budget
 Scenario
 Credit Limits
Accounting Master - Group Creation
Account groups are maintained to determine the hierarchy of Ledger Accounts which helps determine
and present meaningful and compliant reports.
Let us create the Sundry Debtors and Classify based on the region
Classification/under
Sundry Debtors
Debtors-North
Zone
Debtors- South
Zone
Debtors- East Zone
Debtors-West Zone
Activity- Group Creation
Let us create the Group by using Tally,
From Gateway of Tally> Create > under Accounting Masters> Group
Enter the Name as Debtors-North Zone > Under Sundry Debtors.
Similarly let us create other groups
Group to be created
Classification/Under
Debtors-East Zone
Sundry Debtors
Debtors-West Zone
Sundry Debtors
Debtors- South Zone
Sundry Debtors
Accounting Master - Ledger Creation
Ledgers are maintained to keep a record of all the transactions of an accounting entity.
 Without ledgers, it would be difficult to organize all the transactions of an accounting
entity.
 Ledgers are essential accounting books which serve to keep a record of all the
transactions of a particular accounting entity.
 Tally has only two default ledgers, i.e.., Cash and Profit & Loss A/c
 Creation of ledgers are necessary for recording transactions that involve other
accounts.
Activity – Ledger Creation
Let us create the Ledger by using Tally,
From Gateway of Tally > Create > under Accounting Masters> Ledger
Ledger
Owners
Capital A/c
Capital
Account
Sky
Solutions
Sundry
Debtors
Inventory Masters
Inventory is an asset that is intended to be sold in the ordinary course of business.
 The objective of inventory management is to provide uninterrupted production, sales, and/or customerservice levels at the minimum cost.
 Since for many company’s inventories is the largest item in the current asset’s category, inventory
problems can and do contribute to losses or even business failures. Also called inventory control.
Three Category of Inventory Masters
In accounting, inventory is typically broken down into three categories
Raw materials:
Includes materials
intended to be
consumed in the
production of
finished goods.
Work-in-process:
Includes items that
are during the
production process,
and which are not
yet in a state ready
for sale to
customers.
Finished goods: Includes
goods ready for sale to
customers. Maybe termed
merchandise in a retail
environment where items are
bought from suppliers in a
state ready for sale.
Inventory Master - Stock Groups
A Stock Group is like the Groups created for accounting in Tally.
 Stock Items of similar nature, model, etc. can be classified under a single Stock
Group.
 Stock groups help in classifying stock items and providing a meaningful
hierarchy for easier understanding.
 If stock groups are not maintained, the classification of stock items becomes
more tedious and reports also become long and difficult to understand.
Flow Chart of Stock Group Creation in Tally
Stock
Groups
Main
Stock
Groups
Computer
Computer
Accessories
Sub-Stock
Groups
Mobile
Phones
Samsung Mobile
Phone
Activity – Stock Group Creation
Let us create the Stock Groups
From Gateway of Tally > Create > under Inventory Masters > Stock Group
Stock Group Level Products Main Stock
Group
Mobile Phone
Stock Group Level Products Under
Computer
Primary
Computer Accessories
Primary
Primary
Sub Stock Group
Samsung Mobile Phone
Mobile Phone
Inventory Master - Stock Category
Stock Category offers a parallel classification of stock items.
 Like stock Groups, classification is done based on similarity in behaviour or nature.
Example - size, colour, unique property of different stock items.
 The advantage of categorizing items is that you can classify the stock items (based on
functionality) together – across different stock groups which enables you to obtain reports
on alternatives or substitutes for a stock item.
 Stock Category can be used to categorise the models of a stock item.
 This way it helps in getting flexible reports based on a different model of the same
product.
Flow Chart of Stock Category Model in Tally
Stock
Category
64 GB
Storage
32 GB
Storage
128 GB
Storage
16 GB
Storage
Activity – Stock Categories Creation
Let us create the Stock Categories
From Gateway of Tally >Create> under Inventory Masters > Stock Category
Stock Category
Sub-Stock Group
Stock Group
Samsung Mobile Phone
Mobile Phone
Sony Mobile Phone
Mobile Phone
32 GB Storage
Nokia Mobile Phone
Mobile Phone
16 GB Storage
128 GB Storage
OnePlus Mobile Phone
Mobile Phone
64 GB Storage
Oppo Mobile Phone
Mobile Phone
64 GB Storage
32 GB Storage
64 GB Storage
32 GB Storage
64 GB Storage
Inventory Master - Unit of Measures
Stock items are purchased and sold based on quantity. The quantity in turn is measured by units. In Tally,
such goods are quantified using ‘Units of Measurement
Units of measure are of two types
Units of
Measures
Simple Unit
Numbers, Boxes, Dozens
Compound
Unit
1Box=10Numbers, 1Dozen=12Pieces
Activity – Units of Measures Creation
Let us create the Units of Measures in Tally,
From Gateway of Tally > Create > under Inventory Masters > Unit.
 Numbers
 Box
 Box of 10 Numbers
Inventory Master - Stock Items
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. Without stock items, a manufacturing or trading business
cannot exist.
Product/
Item
Traded/Sold
Input for
Manufacturing
Traded/Sold
Final
Goods
Activity-Stock Item Creation
Let us create the Stock Items
From Gateway of Tally > Create > under Inventory Masters > Stock Item
Stock Item Name
Stock Group
Stock Category
Units of Measure
Samsung Galaxy J7
Samsung Mobile Phone
32 GB Storage
Nos
Samsung S7 Edge
Samsung Mobile Phone
64 GB Storage
Nos
Sony E1 Dual Xperia
Sony Mobile Phone
32 GB Storage
Nos
Sony Series J Xperia
Sony Mobile Phone
64 GB Storage
Nos
Inventory Master - Godown
The place where stock items are stored is referred to as a Godown.
Examples of godown(s) include warehouses, racks, showrooms, etc. You can obtain stock reports for each
Godown and account for the movement of stock between Locations/Godowns.
Activity - Godown Creation
Let us create the Godown
From Gateway of Tally > Create > under Inventory Masters> Godown
Godown Name
Bengaluru Location
Mumbai Location
Delhi Location
Kolkata Location
Godown Address
# 21/2, Jigani Industrial Area, Bengaluru-560105
# 3C, M B Desai Rd, Kandivali East, Mumbai-400101
#25, Main Market, Ln Block E, New Delhi-110016
#19/9 Opposite Dalhousie Square, Kolkata-700069
Alteration of Masters
We have learnt how to create Accounting Groups, Ledgers, Stock Groups, Stock Categories, Stock
Items, Units of Measure and Godowns in TallyPrime.
Now, let us walkthrough Tally how to alter the Masters which are already created.
Deletion of Masters
Any masters created by the user such as Ledgers, Groups, Stock Groups, Stock Category, Stock Item,
Unit and Godowns can be deleted from the alteration screen by using ALT+D option.
You cannot delete ledgers and groups from the Multiple Group/ Ledger Alteration mode.
Now, let us walkthrough Tally how to delete the Masters which are already created.
Multi-Masters Creation and Display
A single interface for Chart of accounts in TallyPrime helps you to create multi masters and display all
masters.
You can create multiple groups, ledgers, stock categories, stock groups and stock items in TallyPrime at
one go and configure the details as per your requirement.
Multi Groups Creation
Accounting Groups using Multi Masters
From Gateway of Tally > Chart of Accounts > under Accounting Masters > Groups
Click H: Multi-Masters or Press Alt+H.
Classification Under
Sundry
Creditors
Creditors North Zone
Group to be created
Creditors South Zone
Classification Under
Creditors East Zone
Group to be created
Creditors West Zone
Multi Ledgers Creation
Multiple Ledgers also can be created at one go as like Groups.
From Gateway of Tally > Chart of Accounts > under Accounting Masters > Ledgers.
Click H: Multi-Masters or Press Alt+H.
Group Name
Group to be created
Multi Ledgers Creation
Multiple Ledgers also can be created at one go as like Groups.
From Gateway of Tally > Chart of Accounts > under Accounting Masters > Ledgers.
Click H: Multi-Masters or Press Alt+H.
Group Name
Group to be created
Multi Stock Groups Creation
Stock Group using Multi Masters
From Gateway of Tally > Chart of Accounts > under Inventory Masters > Stock Groups.
Click H: Multi-Masters or Press Alt+H.
Main Stock Group Level
Sub-Stock Group
Multi Stock Groups Creation
Stock Group using Multi Masters
From Gateway of Tally > Chart of Accounts > under Inventory Masters > Stock Groups.
Click H: Multi-Masters or Press Alt+H.
Main Stock Group Level
Sub-Stock Group
Multi Stock Items Creation
Stock Item using Multi Masters
From Gateway of Tally > Chart of Accounts > under Inventory Masters > Stock Items.
Click H: Multi-Masters or Press Alt+H.
Stock Item Name
Oppo A31 Mobile
OnePlus Nord Mobile
Nokia C3 Mobile
Nokia 2.3 Mobile
ASUS 14 Ultra Laptop
DELL i3 Inspiron Laptop
HP 15 3rd Gen Laptop
Logitech M221 Mouse
Logitech K230 Keyboard
SanDisk USB Pendrive
Stock Group
Oppo Mobile Phone
OnePlus Mobile Phone
Nokia Mobile Phone
Nokia Mobile Phone
Computer
Computer
Computer
Wireless Mouse
Wireless Keyboard
Computer Accessories
Stock Category
64 GB Storage
128 GB Storage
32 GB Storage
32 GB Storage
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Units of Measure
Nos
Nos
Nos
Nos
Nos
Nos
Nos
Box of 10 Nos
Box of 10 Nos
Box of 10 Nos
Conclusion
Alter and delete Masters
Add your own text
here this is
awesome
Multi Masters and Multi Creation option
from chart of account
Add your own text
here this is
awesome
Add your
own text
Create accounting Masters and inventory
here this is
Masters
awesome
Single interface of all Masters and
Chart of Accounting
How many Pre-defined groups are available in TallyPrime?
A
26
B
27
C
28
D
29
How many Pre-defined ledgers are available in TallyPrime?
A
2
B
3
C
4
D
5
Which of the following is the Pre-defined Ledger in TallyPrime?
A
Cash
B
Sundry Debtors
C
Sales
D
Purchase
Which of the following will not list under Inventory Masters in TallyPrime?
A
C
Ledger
Stock Group
B
Unit
D
Stock Item
Thank you
Chapter 4
Agenda
Record Day to
Day Accounting
Transactions
2
1
Recording and
maintaining
accounting
transaction
3
View the ledger, Vouchers,
Registers, Account Books, Stock
Summary, Balance sheet and Profit
& Loss A/c after recording business
transactions
Session 1
Objective
Session 2
Session 3
 Introduction
 Recording Transaction in Tally
 Recording Accounting Vouchers
 Recording Accounting Vouchers
 Receipt Voucher
 Contra Voucher
 Payment Voucher
 Purchase Voucher
 Recording Accounting Voucher
 Sales Voucher
 Debit Note Voucher
 Credit Note Voucher
 Journal
• Recording for Provisions
Introduction
Accounting is the practice of maintaining a record of the financial dealings of a business.
It involves Identifying business transactions, Recording them, and Summarising the same in such a way
that, important financial information can be communicated to stakeholders of the business.
Language of Business = Transactions
Reports
Analysis & Consumption
Recording Transactions in Tally
Recording of a financial transaction is the first step in an accounting cycle.
Every day, business concerns are involved in business activities like making purchases,
sales, making payments to vendors, receiving payments from customers and so on.
If any one of the transactions is not recorded properly or is missed out, the financial
reports will not reflect the correct financial performance or financial position of the
company.
Voucher Types in TallyPrime
There are specialized voucher types for different types of transactions. The voucher
types are used to understand the process of entering a transaction in TallyPrime.
Voucher types in TallyPrime can be categorized as follows:
 Accounting Vouchers
 Inventory Vouchers
 Order Vouchers
 Payroll Vouchers
Standard Vouchers
ACCOUNTING VOUCHERS
Contra
Voucher
Sales
Voucher
Purchase
Voucher
Receipt
Voucher
Sales
Voucher
Payment
Voucher
Journal
Voucher
Credit Note
Voucher
Debit Note
Voucher
Memorandum
Voucher &
Reversing Journal
INVENTORY VOUCHERS
Stock Journal
Voucher
Physical
Stock
Voucher
Delivery Note
Voucher
Receipt Note
Voucher
Rejection In
Voucher
Rejection Out
Voucher
Material Out
Voucher
Material In
Voucher
Standard Vouchers
ORDER VOUCHERS
Purchase Order
Voucher
Sales Order
Voucher
Job Work in Order
Voucher
Job Work Out Order
Voucher
PAYROLL VOUCHERS
Attendance
Voucher
Payroll Voucher
Accounting Voucher
In TallyPrime, the Voucher Types can be created from the following options.

Masters

G: Go To

G: Switch To
To display the default Voucher Types in
TallyPrime
1) From Gateway of Tally> Chart of
Accounts > under Accounting
Masters> Voucher Types
24 Voucher Types
Accounting Voucher
To create a Voucher in TallyPrime,
From Gateway of Tally> under TRANSACTIONS > Enter on Vouchers.
F10:Other Vouchers
H: Change Mode
Receipt Voucher
Any money received by a business concern, from sales or any other source capital
introduced by owners is considered receipts and entered by using the Receipt Voucher
in Tally.
A Receipt voucher can be recorded in the following two modes:
Receipt, Payment and Contra Voucher
Voucher Mode
Double Entry
(Dr or Cr)field
Single Entry
Particulars &
Amount field
Receipt Voucher
Real
Account
Mr. Shamanth, owner of Suhant Software Pvt. Ltd. introduced ₹ 20,00,000 as Capital to start a
Personal
business.
A/c
The deposit was made through cheque of Canara Bank vide number 950001, which was deposited
in SBI Current A/c.
Step 1: Identify the 2 Ledgers involved in the transaction
Step 2: Identify the Category they belong to
Step 3: Apply the Rule
SBI Current A/c …………. Dr
DR
To, Owners Capital Account
CR
₹ 20,00,000
₹ 20,00,000
Receipt Voucher Reports
The Receipt voucher recorded in TallyPrime will capture in Cask/Bank Book, Balance Sheet, Profit & Loss
A/c, Ledger A/c, Receipts and Payments, Receipt Register and Cash/Funds Flow report.
Contra Voucher
Contra Voucher is a transaction involving the transfer of cash between One Cash A/c to another or One
Cash A/c to Bank A/c or from One Bank A/c to another Bank A/c or Bank A/c to Cash A/c.
4 types of banking transactions
Contra Voucher
Cash account to Bank
account
Bank account to Cash
account; or
One Bank account to
another Bank account
One Cash account to
another Cash account
Contra Vouchers
Let us go through the 4 types of Banking Transactions
Type 1: Cash Deposited / Remitted to Bank.
Particulars
Debit
Bank A/c ………………….. Dr
xxxx
To, Cash A/c
Credit
Types of Account
Real Account
xxxx
Real Account
Credit
Types of Account
Type 2: Cash is withdrawn from the Bank
Particulars
Debit
Cash A/c ………………….. Dr
xxxx
To, Bank A/c
Real Account
xxxx
Real Account
Contra Vouchers
Let us go through the 4 types of Banking Transactions
Type 3: Bank to Bank Transactions
Particulars
Debit
Bank A/c (A)………………….. Dr
xxxx
To, Bank (B)A/c
Credit
Types of Account
Real Account
xxxx
Real Account
Type 4: Cash to Cash Transactions (Transactions from Cash A/c to Petty Cash
Books )
Particulars
Debit
Petty Cash A/c …………….. Dr
xxxx
To, Cash A/c
Credit
Types of Account
Real Account
xxxx
Real Account
Contra Voucher
Suhant Software Pvt. Ltd. withdrawn cash of ₹ 15,000 from SBI Current A/c for Petty Cash
expenses.
Step 1: Identify the 2 Ledgers involved in the transaction
Step 2: Apply the Rule
Cash A/c …………. Dr
DR
To, SBI Current A/c
CR
₹ 15,000
₹ 15,000
Activity - Contra Voucher
Let us record the following Transactions in Tally
Suhant Software Pvt. Ltd. transferred ₹ 1,00,000 from SBI Current A/c to Kotak Bank Current A/c with
cheque reference no. 273434 (Transfer of funds from one bank to another).
Note: In Tally for Contra Voucher, first it asks to Credit the account and then to Debit. Record the below
activity accordingly.
Date
Particulars
Debit
04th April 2020
Kotak Bank Current A/c……..Dr
1,00,000
To, SBI Current A/c
Narration: Being amount transferred from SBI Current A/c to Kotak Bank.
Credit
1,00,000
Activity – Contra Voucher
Suhant Software Pvt. Ltd. transferred ₹ 5,000 from Cash A/c to Petty Cash A/c to account for petty cash
expenses (Transfer of funds from one cash to another)
Tips: Create Petty Cash A/c ledger under Cash-in-Hand Group
Date
Particulars
Debit
05th April 2020
Petty Cash ……..Dr
5,000
To, Cash A/c
Narration: Being amount transferred from Cash A/c to Petty Cash A/c.
Credit
5,000
Contra Voucher Reports
The Contra voucher recorded in TallyPrime will capture in Cash/Bank Book(s) report.
Payment Vouchers
Payment Voucher is a transaction which is passed to record all payments made by the
business.
Type 1: Cash Payment.
Cash paid for Expenses
Particulars
Debit
Expenses A/c ………………….Dr
xxxx
To, Cash A/c
Credit
Types of Account
Nominal Account
xxxx
Real Account
Credit
Types of Account
Type 2: Bank Payment
Bank Cheque was issued to a supplier
Particulars
Debit
Supplier A/c ………………….. Dr
xxxx
To, Bank A/c
Personal Account
xxxx
Real Account
Payment Voucher
Nominal
A/c
Personal
A/c
Suhant Software Pvt. Ltd. Paid ₹ 5,000 towards Entertainment Expenses vide cheque
number 912301 of SBI Current A/c.
Step 1: Identify the 2 Ledgers involved in the transaction
Step 2: Identify the Category they belong to
Step 3: Apply the Rule
Entertainment Expenses …. Dr
DR
To, SBI Current A/c
CR
₹ 5,000
₹ 5,000
Being expenses incurred for the sales and related support activities
Activity – Payment Vouchers
Let us record the following Transactions in Tally
Suhant Software Pvt. Ltd. made a payment of ₹ 7,500 towards Travelling Expenses and
₹ 2,500 towards Labour Charges through Kotak Bank Current A/c vide cheque number 512101 and
512102 respectively.
Date
Particulars
Debit
09th April 2020
Travelling Expenses……..Dr
7,500
Labour Charges…………Dr
2,500
To Kotak Bank Current A/c
Narration: Being Travelling expenses and Labour charges incurred
Credit
10,000
Activity – Payment Vouchers
Suhant Software Pvt. Ltd. made a payment of ₹ 250 towards Water Charges. The payment was made
from Petty Cash A/c to the concerned authority.
Tips: Record this Payment voucher in Single Entry mode
Date
Particulars
Debit
10th April 2020
Water Charges ……..Dr
Credit
250
To, Petty Cash A/c
Narration: Being Water Charges paid for April through Petty Cash A/c.
250
Payment Voucher Reports
The Payment vouchers recorded in TallyPrime will capture in Balance Sheet, Profit & Loss A/c, Ledger A/c,
Receipts and Payments, Payment Register and Cash/Funds Flow report.
Purchase Vouchers
Purchase is the cost incurred by the business concern during a period, for further sale of inventory. Purchase is an
expense to the company. It is included in the income statement and is also considered under the cost of goods sold.
Let us go through the 2 types of Purchase Transactions
Type 1: Cash Purchase
Particulars
Debit
Purchase A/c ………………….. Dr
xxxx
To, Cash A/c
Credit
Types of Account
Nominal Account
xxxx
Real Account
Credit
Types of Account
Type 2: Credit Purchase
Particulars
Debit
Purchase A/c ………………….. Dr
xxxx
To, Suppliers A/c
Nominal Account
xxxx
Personal Account
Flow Chart of Purchase Voucher in 3 modes
Voucher Mode
• Double Entry Mode( Dr Cr)
• Allows entry of Accounts and Inventory
Item Invoice Mode
• Single Entry Mode
• Allows entry of Inventory (Stock Items )
Accounting Invoice
Mode
• Single Entry Mode
• Allows entry of Accounts (Service Invoices)
Purchase Voucher
Nominal
A/c
Real A/c
As on 14th April 2020 Suhant Software Pvt. Ltd. purchased goods. The Purchase amount is
₹ 5,000 paid through cash.
Step 1:
Identify the 2 Ledgers involved in the transaction
Step 2: Identify the Category they belong to
Step 3:
Apply the Rule
Purchase A/c…. Dr
DR
To, Cash
CR
₹ 5,000
Being purchased goods on cash
₹ 5,000
Nominal
A/c
Purchase Voucher
Personal
A/c
As on 16th April 2020 Suhant Software Pvt. Ltd. purchased goods worth ₹ 12,000 from
Shan Enterprises.
Step 1:
Identify the 2 Ledgers involved in the transaction
Step 2:
Identify the Category they belong to
Step 3:
Apply the Rule
Purchase A/c…. Dr
DR
To, Shan Enterprises
CR
₹ 12,000
Being purchased goods on credit.
₹ 12,000
Purchase Vouchers-Activity
Let us record the Purchase Voucher in Item Invoice by referring the below table
Date
Particular
17th April 2021
Suhant Software Pvt. Ltd. purchased the following stock items from RY Info
Systems on credit vide supplier invoice number RY/101.
Name of the item
Samsung Galaxy J7
Samsung S7 Edge
Godown
Bengaluru
Location
Bengaluru
Location
Quantity
5 Nos
Rate Per(₹)
12,900
Amount (₹)
64,500
5 Nos
32,000
1,60,000
Step 1: Creation of Accounting Master
Note: We have already created Purchase A/c and required Stock Items.
Step 2: Let us record the transactions in Tally
Purchase Vouchers-Activity
Let us record the Purchase Voucher in Item Invoice by referring the below table
Date
Particular
20th April 2021
Suhant Software Pvt. Ltd. purchased the following stock items from Vardhaman
Enterprises on credit vide supplier invoice number VE/23.
Name of the Stock
item
Sony E1 Dual Xperia
Godown
Quantity
Rate per (₹)
Amount (₹)
Mumbai Location
5 Nos
9,500
47,500
Sony Series J Xperia
Mumbai Location
3 Nos
8,000
24,000
Nokia 2.3 Mobile
Mumbai Location
3 Nos
7,000
21,000
Nokia C3 Mobile
Mumbai Location
2 Nos
7,500
15,000
OnePlus Nord Mobile
Mumbai Location
3 Nos
27,000
81,000
Oppo A31 Mobile
Mumbai Location
5 Nos
13,700
68,500
Purchase Vouchers-Activity
Let us record the Purchase Voucher in Item Invoice by referring the below table
Date
Particular
20th April 2021
Suhant Software Pvt. Ltd. purchased the following stock items from Vardhaman
Enterprises on credit vide supplier invoice number VE/23.
Name of the Stock
item
Sony E1 Dual Xperia
Godown
Quantity
Rate per (₹)
Amount (₹)
Mumbai Location
5 Nos
9,500
47,500
Sony Series J Xperia
Mumbai Location
3 Nos
8,000
24,000
Nokia 2.3 Mobile
Mumbai Location
3 Nos
7,000
21,000
Nokia C3 Mobile
Mumbai Location
2 Nos
7,500
15,000
OnePlus Nord Mobile
Mumbai Location
3 Nos
27,000
81,000
Oppo A31 Mobile
Mumbai Location
5 Nos
13,700
68,500
Purchase Vouchers-Activity
Let us record the Purchase Voucher in Item Invoice by referring the below table
Date
Particular
21st April 2021
Suhant Software Pvt. Ltd. purchased the following stock items from MJ
Computers on credit vide supplier invoice number MJC/231.
Name of the Stock
item
ASUS 14 Ultra
Laptop
DELL i3 Inspiron
Laptop
HP 15 3rd Gen
Laptop
Logitech K230
Keyboard
Logitech M221
Mouse
SanDisk USB
Pendrive
Godown
Quantity
Rate per (₹)
Amount (₹)
Delhi Location
5 Nos
38,000
1,90,000
Delhi Location
5 Nos
33,000
1,65,000
Delhi Location
5 Nos
30,000
1,50,000
Delhi Location
5 Box
10,500/Box
52,500
Delhi Location
5 Box
7,000/Box
35,000
Delhi Location
10 Box
7,500/Box
75,000
Purchase Voucher in Account Invoice Mode
Let us record the following transactions in the Account Invoice Mode in Tally
Date
Particular
22nd April 2021
Suhant Software Pvt. Ltd. purchased goods
from Shrikant Services Pvt. Ltd. amounted to ₹
10,000 vide supplier invoice number
SSPL/103. The payment was made
immediately through SBI Current A/c cheque
no. 912302.
Purchase Voucher Reports
The Purchase vouchers recorded in TallyPrime will capture in Purchase Register.
Sales Vouchers
A Sales voucher is used when a company sells goods to customers on cash, cheque or credit basis. Sales entries
lead to an increase in sales revenue.
Let us go through the 2 types of Sales Transactions
Type 1: Cash Sales
Particulars
Debit
Cash A/c ………………….. Dr
xxxx
To, Sales A/c
Credit
Types of Account
Real Account
xxxx
Nominal Account
Credit
Types of Account
Type 2: Credit Sales
Particulars
Debit
Customer A/c …………………Dr
xxxx
To, Sales A/c
Personal Account
xxxx
Nominal Account
Sales Vouchers
Let us record the Sales Voucher in Item Invoice by referring the below table
Date
Particular
24th April 2021
Suhant Software Pvt. Ltd. sold the following stock items to Sky Solutions on
credit, with Sale Bill No. 1
Name of the item
Godown
Quantity
Rate Per(₹)
Amount (₹)
ASUS 14 Ultra Laptop
Delhi Location
2 Nos
39,500
79,000
HP 15 3rd Gen Laptop
Delhi Location
3 Nos
31,000
93,000
Logitech K230 Keyboard
Delhi Location
1 Box
11,000/Box
11,000
SanDisk USB Pendrive
Delhi Location
2 Box 5 Nos
7,800/Box
19,500
Delhi Location
(Type as 2-5)
2 Nos
39,500
79,000
ASUS 14 Ultra Laptop
Sales Vouchers
Let us record the Sales Voucher in Item Invoice by referring the below table
Date
Particular
26th April 2021
Suhant Software Pvt. Ltd. sold the following stock items to Keshav Mobile
Zone on credit, with Sale Bill No. 2
Name of the Stock item
Godown
Quantity
Rate per (₹)
Amount (₹)
Sony E1 Dual Xperia
Mumbai Location
3 Nos
9,800
29,400
Sony Series J Xperia
Mumbai Location
2 Nos
8,500
17,000
Oppo A31 Mobile
Mumbai Location
3 Nos
14,000
42,000
Nokia 2.3 Mobile
Mumbai Location
1 Nos
7,200
7,200
Sales Vouchers
Let us record the Sales Voucher in Item Invoice by referring the below table
Date
Particular
27th April 2021
Suhant Software Pvt. Ltd. sold the following stock items to Vimal Enterprises
on credit, with Sale Bill No. 3.
Name of the Stock item
Godown
Quantity
Rate per (₹)
Amount (₹)
DELL i3 Inspiron Laptop
Delhi Location
3 Nos
34,200
1,02,600
Logitech M221 Mouse
Delhi Location
3 Box 5 Nos
7,800/Box
27,300
Delhi Location
(Type as 3-5)
1 Box
Logitech K230 Keyboard
11,000/Box
11,000
SanDisk USB Pendrive
Delhi Location
2 Box
7,800/Box
15,600
Sales Voucher in Account Invoice Mode
Let us record the following Sales Transactions in the Account Invoice Mode in Tally
Date
Particular
29th April
2021
Suhant Software Pvt. Ltd. billed Annual
Maintenance Charges (AMC) to Sky
Solutions amounted to ₹ 1,25,000 on credit
vide Sale Bill No. 4.
Narration: Being Annual Maintenance
Charges from Sky Solutions
Debit Note Voucher
A Debit Note Voucher is used to record the transaction details of the purchases returns or returns outwards. The
reason for purchases returns could vary from supply of damaged goods, or goods not as per specifications, to any
other.
Let us go through the 2 types of Purchase return transactions
Type 1: Cash Purchase Return
Particulars
Debit
Cash A/c ………………….. Dr
xxxx
To, Purchase A/c
Credit
Types of Account
Real Account
xxxx
Nominal Account
Credit
Types of Account
Type 2: Credit Sales
Particulars
Debit
Purchase A/c …………………Dr
xxxx
To, Suppliers A/c
Nominal Account
xxxx
Personal Account
Credit Note Voucher
A Credit Note Voucher is used to record transaction details of sales returns or returns inwards. The
reason for sales returns could be damaged condition of goods sold, not as per specifications of the buyer
or any other.
Let us go through the 2 types of Sales return transactions
Type 1: Cash Sales Return
Particulars
Debit
Sales A/c ………………….. Dr
xxxx
To, Cash A/c
Credit
Types of Account
Nominal Account
xxxx
Real Account
Credit
Types of Account
Type 2: Credit Sales Return
Particulars
Debit
Sales A/c …………………Dr
xxxx
To, Customers A/c
Nominal Account
xxxx
Personal Account
Journal Voucher
Journal vouchers are used to pass adjustment entries, to adjust the debit and credit amounts
without involving cash or bank accounts.
Adjusting journal entries are typically made just prior to issuing a company's financial statements.
 Journal Voucher is used for all types of accounting transactions which does not fit into
Contra, Payment or Receipt Vouchers.
 Journal Voucher is used for all types of Accounting transactions which does not involve
Cash or Bank Ledgers
Conclusion
Add your own
textgeneration after recording of transactions
Report
here this is
awesome
How to record accounting
vouchers
Add your own text
here this is
awesome
Add your own text
here this is
awesome
How day to day transactions are
recorded in TallyPrime
Which of the following is not an accounting voucher type in TallyPrime?
A
Payment
B
C
Receipt
D
Contra
Stock Journal
Depreciation entry should be recorded using Journal voucher in TallyPrime
A
TRUE
B
FALSE
We can use single entry mode for recording Journal vouchers in TallyPrime
A
TRUE
B
FALSE
In TallyPrime, Sales voucher can be recorded with or without inventory details.
A
TRUE
B
FALSE
Thank you
Chapter 5
Agenda
Banking Payment
Generating and Printing
Payment advice in
TallyPrime
2
4
1
3
Introduction to
Banking
Configure and
Cheque Printing in
TallyPrime
5
Understand Bank
Statement
Session 1
Session 2
Objective
Session 3
 Introduction
 Banking Payment
 Banking Payments
 Cheque Printing
 Deposit Slip
 Single Cheque Printing
 Multi Cheque Printing
 Deposit Slip
 Cheque Deposit Slip
 Cash Deposit Slip
 Payment Advice
 Bank Reconciliation
 Manual Bank Reconciliation
 Auto Bank Reconciliation
Introduction
The Banking feature facilitates the maintenance of records and processes that are fundamental to an effective
recording of accounting transactions for timely payments.
Simplify the
Banking
features
End-to-End
solution to the
banking needs
Banking
experience
Managing and
streamlining
Print both
single and
multiple
cheques
Flow chart of Salient Features of Banking
Banking
Cheque
Printing
Single Cheque
Cheque
Register
Multi Cheque
Cheque Deposit
Slip
Deposit
Slip
Post-Dated
cheque
Management
Cash Deposit
Slip
 Enhanced in Tally to simplify the overall banking experience
Payment
Advice
Bank Reconciliation
Manual Bank
Reconciliation
Auto Bank
Reconciliation
Banking Payments
 The banking feature in Tally supports significant areas of your business operations.
 The banking transactions can be provided with bank allocation details such as the transaction type,
instrument number, date, etc.
 A single bank amount can be allocated to multiple transaction types.
Example:
Cheque/DD, Cash, Electronic Cheque, Electronic DD/PO, e-Fund Transfer, Others, Card and ATM
Cheque Printing
 Why is Cheque Management Essential?
 Most preferred payment instruments
 Easy management and adds significant value in day- to day Operation
 What do you understand about the Cheque?
 A written order to the bank to pay the stated sum of money
 How Tally helps us in Cheque Management?
 Automate the cheque printing process
 Maintain a record of payments made using cheques
 Configure the cheques as per business need
 Allow to print all the pending, already printed and required Cheque
 Allow to update the cheque details of a transaction
 Manual errors can be avoided
Configure Cheque Printing
Now let us learn how to configure cheque printing for SBI Bank A/c, which is already created.
Single Cheque Printing
Now let’s understand the process of Recording Payment voucher and Printing a Cheque in Tally for
the given illustration.
Date
Particulars
2nd July 2020
Voucher: Payment
Suhant Software Pvt. Ltd. made the payment to Confident Mobile Store amounted
to ₹ 73,170 against supplier invoice no. CMS/155. The payment is made via
cheque 912309 of SBI Current A/c.
Let us now record a payment voucher and print a cheque in Tally
Single Cheque Printing
Single Cheque Printing
You can also print the Cheque with another navigation. Let’s go through it.
Multi Cheque Printing – Activity
Now, let us learn how to print a bulk or greater number of cheques that belongs to the same bank in one go.
The Multi Cheque Print feature in Tally is used for bulk cheque printing.
With the help of the Illustration, let us record the payment transactions to the suppliers in the books of
Suhant Software Pvt. Ltd.
Date
8th July 2020
Particulars
Voucher: Payment
Suhant Software Pvt Ltd. made a payment of ₹ 12,000 to Shan Enterprises against the
purchase of goods. The payment was made through SBI Current A/c vide Cheque
912310. (Do not print the Cheque)
13th July 2020
Voucher: Payment
Suhant Software Pvt Ltd. made a payment of ₹ 50,000 to PK Furniture against the
purchase of Office Furniture. The payment was made through SBI Current A/c vide
Cheque 912311. (Do not print the Cheque)
Cheque Deposit Slip
Cheque Deposit Slip in the Banking menu allows to generate allows you to generate deposit slips for
payments received through cheque or demand draft, which need to be deposited into the bank.
Activity
Recording Receipt voucher
Date
14th July 2020
Particulars
Voucher: Receipt
Suhant Software Pvt. Ltd. received the payment from Arihant Technologies vide Sale Bill no.
7 and 11 amounted to ₹ 2,21,500 and ₹ 14,800 respectively.
The payment is received via cheque 896110 of State Bank of India, which is deposited to SBI
Current A/c.
Generating Cheque Deposit Slip
After recording the transaction, Let us understand the process of Generating a Cheque Deposit Slip
Cash Deposit Slip
Cash Deposit Slip records how much money will be or has been deposited into a
bank account.
 In simple words, a cash deposit slip is a form that is used to itemize the currency, and cash which is
deposited into a bank account.
 Any cash received must be deposited in the bank with the relevant Cash Deposit Slip attached.
 You can generate a cash deposit slip for depositing cash into a bank on any particular date. You can
also print the Cash Deposit Slip Report for all the transactions.
Format of Cash Deposit Slip
The Cash deposit form contains the following details:
 The name on the account
 The account number
 The amount or value of each cheque being deposited
 The amount or value of any bills and coins being deposited
Cash Deposit Slip - Activity
Recording Contra voucher and Printing a Cash Deposit in Tally
Date
15th July 2020
Particulars
Voucher: Contra
Suhant Software Pvt. Ltd. deposited cash of ₹ 5,000 to SBI Current A/c with the bank
reference number 234518.
Narration: Being Cash deposited to the bank.
Generate Cash Deposit Slip
After recording the transaction, Let us understand the process of Generating a Cash Deposit Slip
Payment Advice
Payment Advice
 It is a document or letter of communication sent by a customer or buyer to businesses, which states that an
invoice has been paid to vide Cheque, NEFT, RTGS or by any means of electronic transfers, etc
 It is sent along with the payment voucher containing the payment details and requesting an
acknowledgement for the remittance made
 It is a clear document for the receiver to know for what reason payment has been made.
 The Payment Advice option in the Banking menu is used to generate the payment advice to be sent to
suppliers or other parties along with the cheques or other instruments
Generating Payment Advice
Let us Generate the Payment Advice
Bank Reconciliation
Bank Reconciliation Statement is prepared to have the authenticity of the transactions entered to verify
the balances from the actual with the general.
 It helps to identify the mismatch between the cash book and the bank book (Passbook).
 Prepared to have the authenticity of the transactions entered to verify the balances from the actual
with the general
 Helps in cross verification between bank passbook/statement and Tally book
Bank Reconciliation - Reason
Reasons for difference in Bank Reconciliation Statement
 Cheque issued but not presented for payment
 Cheque collected but not deposited
 Bank Charges, interest debited in the passbook
 Cheque dishonor
 Collection made by the bankers on behalf of the customer
 Payment made by the banker on behalf of the supplier/vendor
 A cheque is drawn but not recorded in the cashbook
So, these are few possible reasons for difference in Bank Reconciliation Statement
Types of Bank Reconciliation
There are two types of reconciliation methods in Tally:
Bank Reconciliation
Manual Bank
Reconciliation
Auto Bank
Reconciliation
Types of Bank Reconciliation
1. Manual Bank Reconciliation:
In Manual Bank Reconciliation, bank dates or reconciliation dates are entered manually for every
bank transaction.
Accountants must check the bank statement and manually reconcile, which takes a lot of time.
2. Auto Bank Reconciliation:
Bank dates or reconcile dates are automated for bulk bank transaction in one go.
Bank statements are imported in Tally, which saves the time
Manual Bank Reconciliation
The Bank Reconciliation option in the Banking menu enables you to reconcile bank accounts.
With Bank Reconciliation, we can:
 Access bank reconciliation to print or configure the reconciliation statements according to your
requirements.
 Create vouchers from the Bank Reconciliation screen itself.
 Provide an opening BRS for unreconciled transactions.
 Alter the voucher by selecting the required transaction from the Bank Reconciliation screen.
 Filter the report to display transactions based on Amount, Bank Date, Instrument No, Instrument
Date, Party ledger, and so on.
Manual Bank Reconciliation – Activity
We will learn how to perform manual reconciliation in TallyPrime
Voucher
Date
Particulars
Amount
Instrument
Number
Instrument
Date
Bank Date
04-Apr-20
SBI Current A/c
1,00,000
273434
04-Apr-20
05-Apr-20
09-Apr-20
Travelling Expenses
7,500
512101
09-Apr-20
09-Apr-20
09-Apr-20
Labour Charges
2,500
512102
09-Apr-20
09-Apr-20
26-May-20
Sky Solutions
2,02,500
890342
26-May-20
26-May-20
27-May-20
Vimal Enterprises
3,38,930
820331
27-May-20
28-May-20
28-May-20
RY Info Systems
2,24,500
512103
28-May-20
29-May-20
16-Jun-20
Keshav Mobile Zone
1,72,925
950223
16-Jun-20
16-Jun-20
25-Jun-20
Sky Solutions
2,44,000
890350
25-Jun-20
25-Jun-20
Tips: The Bank Date column is the reconciled date as per Bank.
Manual Bank Reconciliation – Activity
Bank Reconciliation screen
Auto Bank Reconciliation
Auto Bank Reconciliation is an important process that helps a business cross-verify its Company's
books of accounts with the bank statement.
The manual and conventional method for comparing the two statements with a long list of
transactions are stressful and error-prone.
Auto Bank Reconciliation
How is Tally helpful in the Bank Reconciliation process
 Minimize the time spent and the risk of making errors
 Enhanced the bank reconciliation capability
 Provides facility to select the formats, configuration and input file type
 Supports Excel, CSV, and MT940 formats
 Identifies the transactions in a statement based on Amount & Cheque Number.
Auto Bank Reconciliation Process Flow
Step 1
Download the
Bank
Statement
(Excel file
)from the
bank portal
using Net
Banking
Step 2
Copy the
downloaded
Bank
Statement
(Excel File)to
a folder.
(Preferably
Tally Folder)
Step 3
Activate in
the bank
ledger
alternation
screen for
performing
Auto
Bank
Reconciliation
Step 4
Step 5
Import the
bank
Statement
(Excel File)
From the
bank
Reconciliation
screen
All Bank
Transactions
are
reconciled
automatically
Auto Bank Reconciliation
Conclusion
Manual bank
reconciliation
Add your own text
here this is
Payment advice
awesome
Generating, printing cheque deposit
slip and cash deposit slip
Add your own text
here this is
awesome
Add your own text
Configure and print single cheque
here and
thismultiple
is
cheque
awesome
Introduction to Banking and
Banking Payment
Cheque deposited to bank’ entry is recorded the _________voucher in TallyPrime?
A
Sales
B
Contra
C
Journal
D
Receipt
Bank Charges charged by the bank has to be recorded in _________ voucher in TallyPrime?
A
Receipt
B
Purchase
C
Sales
A
Payment
Cheque dishonour' is one of the reasons for mismatch in the cash book and bank book.
A
TRUE
B
FALSE
The cash deposit slip printed from TallyPrime will display two copies, one for the bank, another for
the customer.
A
TRUE
B
FALSE
Thank you
Chapter 6
Agenda
Generating Final
reports in
TallyPrime
2
1
Introduction
3
Generating MIS
Reports
Session 1
Objective
Session 2
 Introduction
 Generating Final Accounts Reports in TallyPrime
 Trail Balance
 Profit and Loss Account
 Balance Sheet
 Cash Flow and Funds Flow
 Receipt Payments
 Generating MIS (Management Information system
)Reports
 Stock Summary
 Daybook
 Cash and Bank Books
 Purchase Register
 Sales Register
 Journal Register
Introduction
Every business organisation is required to prepare financial reports that show the
business profit or loss (Profit and Loss account) and financial position of the company
(Balance Sheet) at the end of a financial period.
In this Chapter Introduction to Tally, you were introduced to the Trading Account, Profit
and Loss Account and balance sheet
The focus will be on how to View and Generate there Reports in Tally.
Introduction
Why does every Organisation need to generate Financial Reports ?
 Track the financial performance regularly
 To make key decisions about the company’s future and essential for the capital providers
and Investors
 To know about the profitability and financial stability of the company
Business Scenario
Suhant Software Pvt.Ltd. Has recorded the transactions accounting vouchers in Tally till 15th July
2020
Generate the Financial Reports and the MIS Reports
Trail Balance
The Tally comes with a diverse set of available Financial and MIS Reports with powerful and actionable
insights.
It helps you to make informed decisions for your business growth.
Reports will help you manage all the aspects better with extremely easy discovery. and navigation
What is Trail Balance?
 A statement showing the balance or total of debit and Credits.
 It helps in the preparation of financial statements.
 The balance of various accounts are listed in a statements.
 All revenue and expense accounts appearing in the Trail Balance are transferred
Profit and Loss accounts .
to the trading and
Generating Trial Balance
From Gateway of Tally > Display More Reports > Trial Balance
Generating Trial Balance
 To view the Trial Balance in the detailed format press Alt+F5:Detailed
 To view only the ledger wise trial balance, click on F5: Ledger wise
 In Trial Balance in the Monthly view click F6: Monthly
Hence the monthly summary report is automated based on the transactions recorded in each month.
Further , you can enter on enter on each month to view the Trail Balance for every month.
Profit and Loss Account
 It is a periodic statement
 Shows the net result of a business operations for a specific period
 All the expenses incurred, and incomes earned during the reporting period are recorded
Profit and Loss Account in Tally
 Display the information based on the default primary groups
 Update instantly with every transactions / Voucher
Generating Profit & Loss A/c
From Gateway of Tally > Profit & Loss A/c
Generating Profit & Loss A/c
Once after generating the Profit & Loss A/c the following activity can be done.
 To view Profit & Loss A/c in the detailed format Press Alt+F5:Detailed.
 To View Profit & Loss A/c in the Vertical & Horizontal format Press Ctrl+H: Change view .
 We can view the Negative ledger from the report by pressing Ctrl+J :Exception Report.
 We can change the date in Profit & Loss account using F2:Period option.
 In Profit & Loss A/c we can use F12:Configure option and set the required parameters in Tally.
Balance Sheet
A Balance Sheet is a financial statement that reports a business’ financial position on a specific date.
If you observe, the term balance sheet implies that the report shows the balance between two figures: the assets
and liabilities of a business.
The fundamental accounting equation is Assets:
Liabilities + Owner’s Equity.
Generating Balance Sheet
From Gateway of Tally > Balance sheet
Generating Balance Sheet to View Working Capital
Working capital is the difference between current assets and current liabilities.
From Gateway of Tally >
Balance sheet> Click on
B:Basis of Value
then set Include Working
Capital - Yes and Accept
the screen.
Cash Flow Analysis
 Records the amount in cash and cash equivalents entering and leaving a Company
 It completes the Balance sheet and Profit and Loss account
 It helps to understand how or from where the company’s money is coming and where it is spent
 Shows only the actual cash inflows and outflows of a company
Generating Cash Flow
From Gateway of Tally > Display More Reports > Cash Flow>Enter on April
Fund Flow Analysis
A Fund Flow statement is a report, which explains the movement of funds during an accounting period.
The statement consists of Two Parts
 Source of Funds: The transactions which increase working capital
 Application of Funds: The transactions which decrease working capital Application of funds
It is supplement to the two principle financial statements
It describes the source from which additional funds were derived and which funds were used.
Generating Fund Flow Analysis
From Gateway of Tally > Display More Reports > Fund Flow>Enter on April
Receipt and Payment Account
 A report of Cash and Bank Transactions
 A consolidated summary of Cash book
 It starts with the opening Balance of cash and Bank and ends with the closing balance of Cash and
Bank
 It does not consider outstanding Receivables and Payables
 It may be Capital or Revenue in nature, relating to the current previous or subsequent year
No special processing is required to generate Receipts and Payments account in Tally.
Receipt and Payment
MIS Report in Tally
We can generate MIS reports and print from TallyPrime. Reports like Stock Summary, DayBook, Cash
Book, Bank Book, Sales Register, Purchase Register, Journal Register can be easily generated and
explore the different options in TallyPrime.
Stock Summary Analysis
Inventory is a crucial process; it helps the organisation track the details of inventories.
Instant delivery of this information will help an organisation to make the business decision faster .
In Tally Inventory Operates as mentioned below:
 In Tally, reports can be displayed, modified and print
 Based on the vouchers entered, inventory reports are gets generated in Tally
 Customized reports can be used to compare inventory data between different companies, periods
of the financial year
Stock Summary
A Stock Summary is a statement of the stock-in-hand on a date. It is one of the primary inventory statement
that is generated in Tally.
This report updates the stock record in real-time as and when transactions are entered.
The Negative Stock Items can be easily figured from the report using the Right Button option, J: Exception
Reports :Negative Stock Items.
By pressing F12:Configure we can enable and explore the options such as
 Show tail unit of Compound Unit
 Show Goods Inwards
 Show Goods Outwards
 Show Stock items with zero Quantity or Balance
Generating Stock Summary
From Gateway of Tally >Stock Summary
Item-wise Profitability Analysis
It is one of the significant inventory reports which enables the business owner to know the profitability of each
item consider ring the cost and the price.
Advantages
 Stock item wise profitability report in Tally tells you the date when the item is sold first and the date of
the last date
 The report also helps in making better buying decisions without having to put extra efforts to go
through the marketing trends
 Assessing the profits according to the selling of each stock-item will give a clear picture of how an
item is performing in the market which will further give insights into the investment that needs to be
made in that product.
Generating Item-wise Profitability Analysis
 From Gateway of Tally > Stock Summary
 Press Alt+F5: Detailed, to view the Stock Summary in the detailed format.
 Click F7: Show Profit to display the profit for stock items
Godown-wise Stock Availability
 Shows the stock summary at different godowns/locations
 Can check the stock position
 Provide a current stock position
 You can drill down and configure the statement to view different details
 View the total stock flow for each locations in a single report
Generating Godown-wise Stock Availability
From Gateway of Tally > Display More Reports > Inventory Books > Godowns > Select Primary > Press
Alt+F5: Detailed.
Stock Query
The Stock Query report provides complete information about a stock item.
The Stock Query report is broadly categorized into four sections:
 Purchases
 Sales
 Godown/Batch Details
 Items of the same Category
For Example: The stock position of a selected stock item at any point of time, latest purchase,
and sales, godown where such stock is available etc.
Generating Stock Query
From Gateway of Tally > Display More Reports > Statements of Inventory > Stock Query
Day Book
 The Day Book contains a record of all transactions made by a business, irrespective of the type of
transaction.
 By default, the display is set to the date of the last voucher entry made, but this can be set to list all the
transactions made over a certain period.
 Transactions include all financial vouchers, reversing and memorandum journals as well as inventory
vouchers.
Generating Day Book
From Gateway of Tally > Display More Reports > Day Book
Cash and Bank Book
 Helps to record individual transactions details entered
 Items are posted to different ledgers
 Tally allows you to bring all the transactions together of one category books of Accounts
Generating Cash Book
From Gateway of Tally > Display More Reports > Account Books > Cash/Bank Book(s)
Purchase Register
Purchase Register contains the information related to all purchases made by a business concern.
1) From Gateway of Tally > Display More Reports> Account Books > Purchase Register >
Purchase Register Monthly Summary screen appears,
2) Enter on April to display the Ledger Vouchers with the list of purchase vouchers recorded for
April.
3) Click F8: Columnar to generate columnar register of purchase.
Generating Purchase Register
Sales Register
A Sales Register displays the monthly summary of all sales transactions and the closing balances at the
end of each month, for the selected period.
The list of transactions of any month can be viewed by selecting the required month.
Tally enables change of display according to the information required.
1) From Gateway of Tally > Display More Reports> Account Books > Sales Register > Sales
Register Monthly Summary screen appears,
2) Enter on June to display the Ledger Vouchers with the list of sales vouchers recorded for
June.
3) Click F8: Columnar to generate columnar register of sales.
Generating Sales Register
Journal Register
A Journal Register displays the monthly summary of all journal transactions and the total of all the
transactions for the selected period.
The list of transactions of any month can be viewed by selecting the required month.
Tally enables change of display according to the information required.
1) From Gateway of Tally > Display More Reports> Account Books > Journal Register > Journal
Register Monthly Summary screen appears.
2) Enter on May to display the Ledger Vouchers with the list of journal vouchers recorded
Generating Journal Register
Birds eye view/Drill down display from anywhere to anywhere
In TallyPrime, you can drill down to the transaction level from any viewable reports.
Example 1: From Profit and Loss A/c, you can drill down to closing stock summary level. Press Enter on
Closing Stock, instantly Stock Summary screen appears which helps the company to have a better
management decision.
From this report, you can view item-wise rates, quantity and value of stocks available in the godown.
Further, you can drill down to the stock item level to get Stock Item Monthly Summary with the graph.
Conclusion
Generating accounting and inventory
reports
Add your own text
here this is
awesome Decision-making process
Analysing problems and evaluating
performance
Add your own text
here this is
awesome
Add your own text
here this
is the business organisation by
Manage
tracking daily business activities
awesome
Final Accounts and the MIS
Reports
All the expenses incurred and incomes earned during the reporting period are recorded in
______.
A
Cash Book
B
C
Balance sheet
D
Bank Book
Profit & Loss A/c
In TallyPrime, __________ is a report of cash and bank transactions during a period
A
Cash/Bank book(s)
B
Profit & Loss A/c
C
Cash/Fund Flow
D
Balance Sheet
Working Capital formula is Working Capital = Current Assets + Current Liabilities
A
TRUE
B
FALSE
Day Book in TallyPrime contains a record of all transactions made by a business.
A
TRUE
B
FALSE
Thank you
Chapter 7
Agenda
Accessing the company
with the data operator user
account
Activation of
security control
4
2
1
Introduction
Activation of
TallyVault
3
Creation of security
control, creation of
users and passwords
of company
6
5
Change user
feature in
TallyPrime
7
Auto-login
Option in
Tally
Session 1
Objective
Session 2
 Introduction to Data Security & Security Control
 Activation of Security Control in Tally
 Creation of Security Levels, Creation of Users and
Passwords for Company
 Accessing the company with the data Operators
User Account
 Change User feature in Tally
 Activation of TallyVault
 Auto-Login Option in Tally
Introduction to Data Security
Securing financial information is a critical task of a business owner, as most of the business
depends on securing financial and maintain confidentially of information.
 Maintaining financial information is crucial and especially difficult to replace if it gets lost
 TallyPrime is the safe platform to maintain all the business transactions
 As it provides more additional security
 Create the different levels of Users to access the company data
 Securing financial information using the security Control and TallyVault
 It will help the business to maintain company data confidentially by encrypting and protecting
the data
Security Control
The important of Security Control
 To Protect the company data by providing the password and creating different
user level rights
 Mainly used in multiple environment configuration and conventional in a multiuser scenario
 Plays significant role to secure the data to high standards
Security control is defined based on the work profile of the employees
 Administrator- Provided Full System Access
 Employees- Limited access as per the work profile
Security Control
Two levels of Security
 Owner Level Security and Data Entry
Owner level Security
 Full Access and security rights
 Enable him to work with all the features
Data Entry Level
 Restricted access
 The administrator can assign or restrict the access based on the
requirement
Business Scenario
Accountant
Accountant
Allowed to enter backdated vouchers for up to 15 days
Has right to create masters and access all MIS report
Data Entry Operators
Date Entry 1: allowed to record purchase and sales voucher
Date Entry 2: allowed to record only payment and receipt voucher
Activation of Security Control
Activate the Security Control feature in Tally
 Help you to keep the data secure and assign the rights based on the work profile
of the employees
 You will be able to create the users and assign the rights to the different users/
employees
 Activate Security Control from the Company Creation and Alteration screen.
Activation of Security Control
From Gateway of Tally, click on K: Company
Creation of Security Levels ( User Roles)
In TallyPrime, once after activating the Security Control, let us create the User
Levels
 As Administrator(Owner) will have the complete rights to create the User Roles
and assign the rights to them based on the work profiles.
 Suhant Software Pvt.Ltd. - appointed 3 Users, an Accountant and 2
Data Entry Operators.
Creating Security Level for an Accountant
From Gateway of Tally > Click K: Company > Enter on User Roles
Activity- Create Security Level for Data Entry 1
Security Levels
Name of the Security level
Data Entry 1
Use Basic Facilities of
Select as Data Entry
Days allowed for Back Dated Vouchers
Let it be 0
The cut-off date for Back Dated vouchers
Set/Alter Rules before save also applicable for
Export/E Mail upload
Keep it Blank
Set to No
Allow to override tax details
Set to No
Exclude On Account from Bill Allocation
Set to No
Allow Company to Connect
Set to No
Use Tally. Net Authentication
Set to No
Disallow the following Facilities
Allow the following Facilities
Full Access
Accounting Vouchers
Create
Purchase
Full Access
Inventory Vouchers
Create
Sales
Display
Purchase
Display
Sales
Activity- Create Security Level for Data Entry 2
Security Levels
Name of the Security level
Data Entry 2
Use Basic Facilities of
Select as Data Entry
Days allowed for Back Dated Vouchers
Let it be 0
The cut-off date for Back Dated vouchers
Set/Alter Rules for Print before save also
applicable for Export/E Mail upload
Keep it Blank
Set to Yes
Allow to override tax details
Set to No
Exclude On Account from Bill Allocation
Set to No
Allow Company to Connect
Set to No
Use Tally. Net Authentication
Set to No
Disallow the following Facilities
Allow the following Facilities
Full Access
Accounting Vouchers
Create
Receipt
Full Access
Inventory Vouchers
Create
Payment
Display /Print
Payment
Preview
Payment
Creation of Users and Passwords for Company
Create the users and assign the passwords for the users who will be accessing the
company data.
Users For
Company
Accountant
Data Entry 1
Data Entry 2
Username: arun
Password:arun123
Username: nidhi
Password:nidhi1
Username: raj
Password: raj2
Creation of Users and Passwords for Company
From Gateway of Tally > Click K: Company > Enter on Users and Passwords.
Creation of Users and Passwords for Company
Accessing the company using Security Levels
Once after creating security levels, users and passwords, the next step is to record the
transactions like Purchase, Sales, Receipts and Payments by login to different users
having different rights and experience the purpose of giving the Security Control in a
company.
The administrator of the Suhant software Pvt ltd has created the security
levels and their username and passwords to access the company. Now going
further, the users must perform their roles using the given access.
Change User
Let us login to User level without logging out from the administration Login
From Gateway of Tally, click on K: Company and enter on Change User.
Change User
Data Entry 1
Login to the Company using the Security Level- Data Entry 1 and Check the user
roles
Date
Particular
18th July 2020
Voucher: Purchase
Suhant Software Pvt.Ltd purchased the following stock items from RY Info systems
on credit vide supplier invoice number RYIS/245
Name of the stock item
Godown
ASUS 14 Ultra Laptop Bengaluru Location
DELL i3 Inspiron Laptop Bengaluru Location
Quantity
2 Nos
2 Nos
Rate per
38,000
33,000
Record the following transaction in Tally with the Login Data Entry 1
Amount
76,000
66,000
Data Entry 1 – Purchase Voucher in Report
Data Entry Operator 1 (nidhi) has access to record only Purchase and Sales vouchers, the
user does not have access to create/alter any masters or alter the transactions. But, the user
has access to display the vouchers.
Data Entry 1 – Display Purchase Voucher
To Display the Purchase Voucher, press Alt+Enter on the Purchase Voucher (Voucher
Number 9) > press Alt+F5 for Detailed
Data Entry 2
Login to the Company using the Security Level- Data Entry 2 and Check the
user roles
Date
Particulars
20th July 2020
Voucher : Payment
Sushant Software Pvt.Ltd. Made the payment to RY info System vide supplier invoice no.
RY/245amounted ₹ 1,42,000. The payment is made via cheque 512104 of Kotak Bank
Current A/c.
Record the following transaction in Tally with the Login Data Entry 2
Accountant
The Accountant is provided with the access to create and modify the backdated vouchers
of 15 days with the cut-off date 1st July 2020.
Now the Date of the Last Entry is 20-July-20.
In this case, the accountant will not create/alter the vouchers before 15 days from 20July-20.
Let now see the Behavior of Accountant in Tally
Auto Login
A company has multiple branches and has the same login details, using the Auto
Login option.
You can enter login credentials to one company, and other companies open without
entering the credentials
A company has multiple branches and has the same login details, using the Auto
Login option.
You can enter login credentials to one company, and other companies open without
entering the credentials
TallyVault
 Help a business to maintain the confidentiality of information by
encrypting the
data
 Used to maintain the privacy of the company
 Uses a non-stored password with an advanced algorithm
 If the password to TallyVault is unavailable, then nobody can access the data
 TallyVault becomes one of the most secure means of data storage
Tally Vault
From the Gateway of Tally, click on K: Company and Enter on TallyVault.
Conclusion
Auto-Login and Change User
Add your own text
here this is awesome
TallyVault features
Creating the User Roles and providing
access to the Users
Add your own text
here this is awesome
Add your own text
here this
is awesome
Process
of activating the security Control
Importance to secure the company’s financial
information
TallyPrime, the Data Entry user does not have the access to open the company having Tally
Vault password.
A
TRUE
B
FALSE
In TallyPrime, 'Data Entry' Security Level has the rights to alter the company
A
TRUE
B
FALSE
An administrator will not get all the complete access of TallyPrime features
A
TRUE
B
FALSE
In TallyPrime, Security Control can be activated from which one of the following options using Top
Menu?
A
K:Company
B
Y:Data
C
Z:Exchange
D
O:Import
Thank you
Chapter 8
Agenda
Data Backup of
Company in Tally
Company Data Repair
4
2
1
3
Introduction
Restoring of company
data from a backup file
5
Migration of
Tally.ERP 9 to
TallyPrime
Session 1
Objective
Session 2
 Introduction to the Data Backup and Restore
 Data Backup of Company in TallyPrime
 Restore of Company Data from a Backup file of
TallyPrime
 Company Data Repair
 Migration of Tally.ERP 9 Data in TallyPrime
Introduction
Using TallyPrime, we can easily take a backup of a company data and restore the
company data when required.
Why should one take the company Data Backup
 To Safeguard the company data against hard drive crash and virus attack
 Any Data lost will be disastrous for the Organisation
 Data Backup plays a vital role
We can also use the backup feature to move your data to another computer or share it
with your accountant or auditor for verification
Business Scenario
Now the company has
decided to take a backup
of the company data on
daily basis from
TallyPrime which will
help in the below
instances.
Suhant Software Pvt. Ltd. had
lost the company data due to a
hard drive crash in the system.
 Retrieving the data
when the existing
data is lost.
The company auditor advised to take a
backup at frequent intervals and ensure that
the data backup is secured logically and
physically by using the Backup feature in
TallyPrime.
 Forwarding the data
backup for auditor.
Backup of Company Data
TallyPrime helps users to take the backup of one or more companies in a single
directory. We can take the data backup from TallyPrime in TBK900 format.
TBK900 Format
Once the Backup is taken format file
name
Data Folder
Backup of Company Data
Taking a Backup of the Company data daily from Tally, which will help in
 Retrieving the data when the existing data is lost
 Forwarding the data backup for auditor
 Tally helps you take the backup of one or more companies in a single directory
 The Format of Data Backup taken from Tally is TBK.900
Single Company Data Backup
If the company data is located in Single locations, TallyPrime can easily navigate and
backup the company data in Data Backup folder
10000
D:\TallyPrime\Data
\Backup
TBK900_001
Tally Company Backup
file is in unreadable file
Multiple Locations Data Backup
If the company data is located in multiple locations, TallyPrime can easily navigate
and backup the company data in a single location
TBK900_001
10001
Company data folder is
located in
D:/TallyPrime/Company Data
Data Backup Destination
D:\TallyPrime\Data\
Multi Companies Backup
10002
Company data folder is
located in D:/Company Data
TBK900_002
Activity
Single & Multi Companies Data Backup
Let us now take the company backup using TallyPrime
Navigation Path
From Gateway of Tally > Click Y: Data from the Top Menu > Click on
Backup.
Restoring of Company Data
Tally helps you restore the company data from the Backup file.
Do’s
Don’ts
Restore the correct data and relevant Data
Do not restore old or irrelevant Data
Restore the data which is not corrupted
Do not restore data from a damaged media
Restore the Data in different Folder
Do not restore the data in the same folder where
the existing data is available, it may overwrite
the existing date
Restore the data which is TBK900 format
Do not restore the data which is Data Folder
10000
While restoring the data specify the path correctly Do not specify multiple location while restoring
the Data
Restore Company Data
TallyPrime helps users to Restore the company data from the backup file
TBK900_001
Data Backup format
D:\TallyPrime\Data
\Restored Data
10000
Location Path
Restored Data
Let use Restore the Company Data in Tally
Company Data Repair
If there is any issue with the company data, TallyPrime comes with a useful tool that will
help you recover your data.
The Repair feature checks your masters and transactions for any issues and recovers
the data through the data rewrite process.
Reasons for the Company Data Damaged
 Due to power fluctuation
 Due to improper shutdown
Tally has the intelligence to identify the corruption and display it upfront to you and
says, ‘Repair Required’
Migration of Tally.ERP 9 Company Data to Tally
Migration of Tally.ERP 9 Company Data to Tally.
 The existing users are maintaining the company data in Tally.ERP 9.
 Migrate the data in Tally to make the data compatible to use in Tally.
TallyPrime has an Intelligence to Identify the Migration Data and display upfront to
you and says ‘Migration Required’.
Without migrating the company data, it cannot be accessible in TallyPrime.
The Migrate option can also be executed from Gateway of Tally > F1: Help >
Troubleshooting > Migrate.
Conclusion
Migrated the Tally.ERP 9 company data to
Tally
Add your own text
here this is
awesome
Repair the corrupted company data
Restoring the data
Add your own text
here this is
awesome
Add your own text
hereData
thisbackup
is of companies located in multiple
folders into a single folder
awesome
On a day-to-day basis by taking
backup of company data
We cannot Migrate Tally.ERP 9 data into TallyPrime
A
TRUE
B
FALSE
In TallyPrime, by clicking on R: Migrate, the Tally.ERP 9 company data will be migrated
successfully to TallyPrime.
A
TRUE
B
FALSE
In TallyPrime, without restoring the data backup, we cannot open the backup of company data.
A
TRUE
B
FALSE
In TallyPrime, which of the following is the right sequence to take the Data Backup?
A
C
Gateway of Tally> Y: Data
O:Import
B Gateway of Tally> Z: Exchange
D
Z:Exchange
Thank you
Chapter 9
Goods and Services Tax (GST)
GST Tax Payment and
Generating of GSTR-1, GSTR-3B,
GSTR-9
Input Tax Credit
Set-off
Print Goods and Services Tax
Invoice
6
1
5
Introduction to GST- Good
and Service Tax
2
4
3
Activate GST for a Company in
TallyPrime
Record Intrastate & Interstate
Inward & Outward Supplies
Objective
Session 1
 Introduction to GST
 Activate GST for a company in TallyPrime
 Record Intrastate Inward and Outward Supplies
Session 2
 Record Interstate Inward and Outward Supplies.
 Print GST Invoice
 Input Tax Credit set-off
Session 3
 GST tax payment
 Generate GSTR-1, GSTR-3B, GSTR-9
Introduction of GST
 India is a federal country where both the Central and the State Government have
the powers to levy and collect taxes through appropriate legislation.
 GST was introduced in India on 1st July 2017.
 GST is a business reform, and beyond just modification of the rate of tax GST is
changing the process of compliance, thereby resulting in a shift in the way
businesses operate.
 With the concept of invoice matching, instead of filing summarized returns, you will
need to submit the details of all your sales invoices periodically, based on their
criteria of filing returns/annexures, either monthly or quarterly. This urges every
business to digitize its bookkeeping.
Introduction of GST
The indirect taxation system had inefficiencies and limitations
due to:
Multiple points of taxation, like
manufacturing, Trading &
rendering services
Multiple taxes
Why GST?
Multiple tax rates
Introduction of GST
 GST allows a seamless flow of tax credit and eliminates the cascading effect of all the indirect taxes in the supply
chain - from manufacturers to retailers, and across State borders. Here are some reasons to explain why:
GST replaces several indirect taxes. Further, uniformity in tax rates and
the structure of taxation make GST simpler to understand and easy to
administer.
Simple Tax
Structure
Eliminates the cascading
effect of taxes
Technology
Driven System
Increased Revenue
The input credit set-off process is seamless, and the benefit is
duly passed on to consumers.
A robust and comprehensive IT system would be the foundation of the GST regime in
India. Therefore, all taxpayer services such as registrations, returns, payments, and so
on would be available to the taxpayers’ online, making compliance easy and
transparent.
A simpler tax structure can bring about greater compliance, thus
increasing the number of taxpayers and in turn tax revenues for the
Government.
GST Tax Structure
On every supply of goods and services, a tax component of the Centre and State will be applicable.
Karnataka
Kirti Solutions
Pvt Ltd.
Devi
International
CGST
Goods Supplied or Services Rendered Within
the State-Intrastate
SGST
If the supply is taking place
within the union territory,
then
CGST and UTGST is
applicable
GST Tax Structure
On every supply of goods and services, a tax component of the Integrated Tax will be applicable.
Karnataka
Integrated
Tax
Akash
Electronics Pvt.
Ltd.
Tamil Nadu
IGST
Goods Supplied or Services Rendered
Outside the State- Interstate
If the supply is taking place
outside the State, then IGST
is applicable
Determination of Tax
The Structure of Indirect taxes was origin-based, and with GST we moved to a destination-based tax system.
Ravi Trading Pvt. Ltd.
Origin-Based Tax System
Destination-Based Tax System
Shiva Trading Ltd.
This is an Interstate Supply, so Integrated Tax is
applicable.
Chennai, Tamil Nadu
Head office
Ravi Trading Ltd. is in Karnataka. So, the Tax revenue will reach Karnataka.
Bengaluru, Karnataka
The Destination state is Tamil Nadu. So, the Tax revenue will reach Tamil Nadu.
GST Registration
 Under the GST taxation system, all businesses will be unified under the ‘One Tax’ – GST. This leads to
a unified tax registration of all businesses.
 Being registered under the GST law means a business is acknowledged by the Government of India,
as a supplier of Goods and Services.
 Only registered (Regular) businesses are allowed to claim Input Tax Credit.
GSTIN Structure
On registration, each business will be allocated a unique 15-digit
PAN-based registration number.
GST Registration
Mandatory Registration
The following category of the person have to mandatorily register, irrespective of their turnover.
 A person responsible to deduct TDS.
 Casual and non-residents taxable persons.
 Input service distributors.
 Businessess liable to pay tax under reverse charge.
 E-commerce operators
 Agent supplying on behalf of taxable persons
 A person supplying online information and database access services from outside India to an unregistered person in India.
 Sellers of goods on E-Commerce platforms and threshold exemption is applicable for the seller of service on the e-commerce
platform.
 A Taxable person carrying on Interstate Supply.
GST Registration
Regular Dealer Registration
 Business crossing the defined annual aggregate turnover threshold is
liable to register under GST. The Aggregate turnover includes the value of
all taxable, exempt, and export supplies made across India by a business
with the same PAN.
Composition Dealer Registration
 Composition Scheme under GST is a simple and easy mechanism for small
taxpayers, wherein the taxpayers have less tedious GST formalities and pay
GST at a lower tax rate on their turnover.
Registration – Threshold Limit
Regular Dealer
Special Category
States*
Aggregate Turnover
exceeds
20 Lakhs
Rest of India
Aggregate
Turnover exceeds
40 Lakhs
The
threshold
for
service
providers
would
continue
to
be exemption
INR
20 lakh
andi.e.
INR
10 lakh
in case2ofoptions
Special– INR 20 lakh or INR 40 lakh
States
will Pradesh,
havelimit
theAssam,
discretion
to opt
up or
optMizoram,
down
the
GST
limit
choose
between
*Arunachal
Manipur,
Meghalaya,
Nagaland,
Sikkim,
Tripura,
effective
1st April
Himachal
Pradesh
and2019
Uttarakhand
Categoryfrom
States
effective
from 1st April 2019.
Registration – Threshold Limit
Composition Dealer
Special Category
States*
Aggregate Turnover
does not exceeds in a
Financial Year
75 Lakhs
Rest of India
Aggregate Turnover
does not exceeds in a
Financial Year
1.5 Crores
*Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,
ThePradesh.
annual aggregate turnover threshold limits of the sale of Goods are applicable from 1st April 2019.
and Note:
Himachal
Tax Rate Structure
Tax Type
Tax Rate
Zero Rated
0%
This Includes Essential Items Including Food
Merit Rate
5%
This Includes Commonly Used Items
Standard Rate
12%
Goods and Services
This Includes Fast Moving Consumer Goods
Standard Rate
18%
Demerit Rate
28%
This Includes Luxury Car, Tobacco and Aerated Drinks
Additional
CESS
1% to 25%
Additional CESS on Luxury Goods and Services
Articles
outside GST
rate slab
0.25% to 3%
0.25% includes Semi precious stone and 3% includes Jewellery
Slab Wise GST Rate Structure
Retail Sale Price Less Than 1,000
5%
Retail Sale Price More Than 1,000
18%
Tariff Value Less Than 1,000 Per Day
0%
Tariff Value Between 1,001 - 7,500 Per Day
12%
Tariff Value Above 7,501 Per Day
18%
Retail Sales Price Less Than 1,000
5%
Retail Sales Price More Than 1,000
12%
Footwear
Hotel Accommodation
Articles of Apparel and
Clothing Accessories
Supply of Goods and Services (GST)
GST is a supply-based Tax and supply is very Important until the supply comes into consideration tax will not be applicable. In the
GST taxation system, the term supply includes all forms of supply of goods and services like sale, transfer, rental, lease, and disposal
to be supplied for the furtherance of business.
Place of Supply: In the GST taxation system, the Place of supply will play a vital role in determining which tax to be charged, like:
• Intrastate supplies are subjected to Central Tax and
State Tax or Union Territory.
• Interstate supplies are subjected to Integrated Tax.
Supply of Goods and Services (GST)
Time of Supply: Point of Taxation (POT) refers to the point in time when tax is required to
be paid. This is a mechanism that is used to determine the point in time when the tax liability
will arise. Under the old tax regime, the point of taxation is different for each of the tax types.
Value of Supply: Under GST, the value of the taxable supply of Goods and Services will be the transaction value. The taxable
value of all the goods and services consumed in an economy is arrived at based on various metrics. The transaction value refers
to the price paid or payable for the supply of goods and services.
Invoicing: In GST it is very necessary to be aware of the rules of invoicing as invoicing is an important aspect of tax compliance
for every business.
In the GST, there are two types of invoices will be issued:
• Tax Invoice
• Bill of supply
Supply of Goods and Services (GST)
Tax Invoice: When a registered taxable person supplies taxable goods or services, a tax invoice is issued. The tax invoice must be
issued before or at the time of removal of goods, where the supply involves the movement of goods.
Bill of Supply: When the supplier is not allowed to levy any tax and hence
a Tax invoice cannot be issued therefore a particular document called a Bill of
Supply and a Bill of Supply need not be issued when the value of goods and
services supplied is less than 100 unless the receiver insists for the bill.
Bill of Supply is to be issued by a registered supplier in the following
cases:
• Supply of exempted goods and services.
• The supplier is paying tax under the composition scheme.
Input Tax Credit
Input Tax Credit Set-off
On every transaction within a state, a component of Central Tax and State Tax will be applicable. Integrated Tax is applicable on
interstate transactions. A registered dealer’s liability to pay can be set off against the input tax credit that a person is entitled to avail.
Let us understand how to set off the input credit against each of these components in the order as prescribed by GST Law.
Input Tax Credit
GST Set off Rules
IGST Liability
CGST Liability
SGST Liability
IGST Credit
IGST Credit
IGST Credit
CGST Credit
SGST Credit/Union
Territory Tax
CGST Credit
SGST Credit/Union
Territory
Input Tax Credit
GST Set off Rules
 ITC available on Integrated Tax must be set off against Integrated Tax Liability first, and then if there is excess ITC, the
same can be adjusted with Central Tax or State Tax Liability.
 The Tax Liability of Central Tax must be set off first against the excess ITC of IGST after set-off of IGST liability and the
shortage of Central Tax Liability is set off against ITC of Central Tax ITC, any excess Central Tax ITC can be carried
forward to subsequent periods.
 The Tax Liability of State Tax must be set off against Integrated Tax excess ITC and the shortage of State Tax Liability is set
off against ITC of State Tax, any excess State Tax ITC can be carried forward to subsequent periods.
What is E-Waybill?
 E-way bill is an electronic waybill for the movement of goods that can be generated
on the GSTN (common portal).
 A ‘movement’ of goods of more than ₹ 50,000/- in value cannot be made by a
registered person without an e-way bill.
When the Goods are shipped from one place to another, a physical document
declaring the details of the consignment is provided by the carrier.
NOTE: The e-Way bill needs to be generated for all types of movement of goods interstate and intrastate. An E-way bill can also be
generated and raised for the goods worth less than 50,000 if the supplier wishes to
GST in TallyPrime
Business Scenario
Akash Electronics Pvt.
Ltd
GST
Company is registered as a Regular
Dealer under the Goods and Services
Tax Act.
The company deals in multi brands of
Television
Attract 18%
GST rate
Started the business in April
2020
a capital
of
StartedWith
recording
compliance
related
₹transactions
10,00,000 from
1st April 2020
The Company has an
Account in
For business purposes.
The company decides to define the tax details at the company level and in the Stock Item level.
Creation of Company and Activating GST at Company Level
Let us create the company to maintain the financial data and activate GST at company level
Step 1: Create the
Company
In Company Features Alteration
screen enable GST
Then fill in the Company GST
Details
Accept the GST details screen
Step 2: Enable Set/alter GST rate
details
Introducing Capital into the Business
Receipt Voucher
As on 01st April 2020, Mr. Akash, Managing Director of Akash Electronics Pvt. Ltd., introduced a capital of ₹
10,00,000. Canara Bank cheque vide number 510009 was deposited in the AXIS Bank Current A/c.
Date
1st April 2020
Particulars
Axis Bank Current A/c_________ Dr
To, Owner’s Capital Account
To record this transaction, follow the below steps:
Step 1: Create
Accounting Masters
Step 2: Record Receipt
Voucher & View Reports
AXIS Bank Current A/c
Owner’s Capital Account
Debit
₹ 10,00,000
Credit
₹ 10,00,000
Creation of Masters in TallyPrime
A single interface for all masters and a chart of accounts helps you to create, alter and display the masters easily with an amazing
search capability.
Party Ledgers
Step 1: Create Accounting
Masters
Purchase & Sales Ledgers
Integrated Tax
Tax Ledgers
Central Tax
State Tax
Unit Quantity Code (UQC)
Step 2: Creation of Inventory
Masters
Stock Items
Step 3: View Chart of Accounts
Recording GST compliant transactions
The configurations applied in the different levels such as
Company Level
Stock Group level
Stock Item Level
Accounting Group Level
Accounting Ledger Level
Recording GST-compliant transactions in
TallyPrime is very simple.
It will automatically apply all the necessary tax
rules, as defined, and computes accurate
applicable tax rates based on the type of supply
Transaction Level
Hence, no expertise in statutory laws and rules is required to record the GST transactions in TallyPrime.
Recording GST compliant transactions- Accounting Intrastate Supply of
Goods
Intrastate Inward Supply of Goods
Recording Purchase voucher for accounting intrastate inward supply of goods with GST and checking GSTR-3B.
Date
5th April 2020
Particulars
Voucher: Purchase
As on 05th April 2020, Akash Electronics Pvt. Ltd. purchased the following Taxable
goods from Sun Enterprises, Karnataka on credit with Supplier Invoice no. SE/PUR/11
Name of Item
Quantity
Samsung 32’ Smart TV
Philips 32’ Smart TV
5 Nos
5 Nos
Rate per
(₹)
16,000
15,000
Amount
(₹)
80,000
75,000
To record this transaction, follow the below steps:
Step 1: Recording Intrastate
Inward Supplies
Step 2: View GSTR-3B
Intrastate supply is a transaction where the location of the supplier and the place of supply
are the same.
Recording GST compliant transactions- Accounting Intrastate Supply of
Goods
Activity: Intrastate Inward Supply of Goods
Date
9th April 2020
Particulars
Voucher: Purchase
As on 9th April 2020, Akash Electronics Pvt. Ltd. Purchased the following goods from Priya Appliances,
Karnataka on credit with Supplier Invoice No. PA/PUR/12.
Name of Item
Sony 32’ Smart TV
Quantity
10 Nos
Rate per (₹)
18,000
Tips: Select Central Tax and State Tax duty Ledgers after selecting the Stock Items
Note: Refer to the content and record the vouchers and match the figures.
Amount (₹)
1,80,000
Recording GST compliant transactions- Accounting Intrastate Supply of
Goods
Intrastate Outward Supply of Goods
Recording Sales vouchers for accounting intrastate outward supply of goods with GST and checking GSTR-1 &
GSTR-3B.
Date
13th April 2020
Particulars
Voucher: Sales
As on 13th April 2020, Akash Electronics Pvt. Ltd. sold the following Taxable goods to
Nanda Enterprises, Karnataka on credit with Sale Bill No. 1
Name of item
Quantity
Rate per
Amount
(₹)
(₹)
Samsung 32’ Smart TV
2 Nos
17,000
34,000
Sony 32’ Smart TV
5 Nos
19,000
95,000
To record this transaction, follow the below steps:
Step 1: Recording Intrastate Outward
Supplies
Step 2: Printing Tax Invoice
Step 3: View GSTR-1 and GSTR-3B
Since Akash Electronics Pvt. Ltd. is a registered dealer, they need to record each sales transaction with all required details for GST
compliance and file the returns in GSTR-1.
Recording GST compliant transactions- Accounting Intrastate Supply of
Goods
Activity: Intrastate Outward Supply of Goods
Date
Particulars
16th April 2020
Voucher: Sales
As on 16th April 2020, Akash Electronics Pvt. Ltd. sold the following goods to a consumer in Bengaluru, Karnataka. The
amount was received through ICICI Bank cheque vide 901832. The Cheque was deposited to Axis Bank Current A/c.
Buyer (Bill to)– Jagadish
GST Registration type – Consumer
Place of Supply- Karnataka
Name of item
Qty
Sony 32’ Smart TV
1 Nos
Tips: Select Central Tax and State Tax duty Ledgers after selecting the Stock Items
18th April 2020
Rate per (₹)
19,000
Amount (₹)
19,000
Voucher: Sales
As on 18th April 2020, Akash Electronics Pvt. Ltd. sold the following goods to Nanda Enterprises, Karnataka on credit with
Sale Bill No. 3
Name of item
Qty
Rate per (₹)
Amount (₹)
Philips 32 Smart TV
4 Nos
16,000
64,000
Sony 32’ Smart TV
4 Nos
19,000
76,000
Tips: Select Central Tax and State Tax duty Ledgers after selecting the Stock Items.
Recording GST compliant transactions- Accounting Interstate Supply of
Goods
Interstate Inward Supply of Goods
Recording Purchase voucher for accounting interstate inward supply of services with GST and checking GSTR-3B.
Date
21st April 2020
Particulars
Voucher: Purchase
As on 21st April 2020, Akash Electronics Pvt. Ltd. purchased the following goods from Aravind
Enterprises, Andra Pradesh on credit with the supplier invoice no. AE/PUR/41.
Name of item
Quantity
Philips 32’ Smart TV
Sony 32’ Smart TV
2 Nos
2 Nos
Step 1: Recording Interstate Inward
Supplies
Rate per
(₹)
15,000
18,000
Step 2: View GSTR-3B
Interstate supply is a transaction where the location of the supplier and the place of supply are different.
Amount
(₹)
30,000
36,000
Recording GST compliant transactions- Accounting Interstate Supply of
Goods
Interstate Outward Supply of Goods
Recording Sales vouchers for accounting interstate outward supply of goods with GST and checking GSTR-1 and
GSTR-3B.
Date
24th April 2020
Particulars
Voucher: Sales
As on 24th April 2020, Akash Electronics Pvt. Ltd. sold the following goods from Murugan
Electronics, Tamil Nadu on credit with the supplier invoice no. 4.
Name of item
Quantity
Philips 32’ Smart TV
2 Nos
Step 1: Recording Outward Inward
Supplies
Step 2: Printing Tax Invoice
Rate per
(₹)
16,000
Amount
(₹)
32,000
Step 3: View GSTR-3B
Recording GST compliant transactions- Accounting Intrastate and
Interstate Supply of Goods
Activity: Interstate and Interstate Outward Supply of Goods
26th April 2020
Voucher: Sales
As on 26th April 2020, Akash Electronics Pvt. Ltd. sold the following goods to Srijith Electronics, Kerala on credit with Sale
Bill No. 5
Name of item
Qty
Rate per (₹)
Amount (₹)
Sony 32’ Smart TV
2 Nos
19,000
38,000
Tips: Select Integrated Tax duty Ledgers after selecting the Stock Items.
28th April 2020
Voucher: Sales
As on 28th April 2020, Akash Electronics Pvt. Ltd. sold the following goods to Nanda Enterprises, Karnataka on credit with
sale bill no. 6.
Name of item
Qty
Rate per (₹)
Amount (₹)
Sony 32’ Smart TV
3 Nos
17,000
51,000
Tips: Select Central Tax and State Tax duty Ledgers after selecting the Stock Items.
Input Tax Credit Set Off against Liability
Let us understand how to set off the input credit against each of these components in the order as prescribed by the
GST Law.
In Tally, check the Total Liability Amount in GSTR - 1 and the Total Input Tax Credit Amount in GSTR -3B
Input Tax Credit
Set off Against Liability
Integrated Tax
Integrated Tax, Central Tax or State Tax
Central Tax
Integrated Tax and Central Tax (in that order)
State Tax/UT Tax
Integrated Tax and State/UT Tax (in that order)
Less Than
Input Tax Credit
Tax Liability
Pay Tax to Government
Input Tax Credit
Tax Liability
Credit will get carry forward to
Next Period
More Than
Input Tax Credit Set Off against Liability
Recording Journal Voucher for adjusting Input Tax Credit against Tax Liability
Date
Particulars
30th April 2020
Adjust the following Input Credit against the available Tax Liability.
Input Tax Credit (GSTR-3B)
Tax Liability Amount
(GSTR-1)
Balance Payable
Integrated Tax -11,880
Integrated Tax- 12,600
Integrated Tax- 720
Central Tax – 30,150
Central Tax – 30,510
Central Tax – 360
State Tax – 30,150
State Tax – 30,510
State Tax - 360
To record the above transactions in the books of accounts, follow the below given steps
Step 1: Resolving the Exceptions
Step 2: Adjusting Integrated Tax Input
Credit against Integrated Tax Liability
Step 3: Adjust Central Tax and State Tax
Input Tax Credit against the Tax Liability in
a separate journal voucher
GST Tax Payment
The liability of tax, input tax credit, and deposits of every registered taxable
person is maintained and administered on a common portal under the following
accounts:
• Electronic Tax Liability Register: All the amount payable by a taxable person will be debited to an electronic tax
liability register.
• Electronic Credit Ledger: The Electronic credit ledger will be maintained for each taxable registered person on
the common portal.
• Electronic Cash Ledger: The Electronic cash ledger will be maintained for each registered taxable person on the
common portal for crediting the amount deposited.
GST Tax Payment
Timeline for payment of GST tax by Regular Monthly Return Filers
20th of the subsequent month.
Modes of Payment of Tax
Online
Internet banking/credit or debit card/NEFT/RTGS/IMPS
Offline
Cash/ Cheque / DD etc.
GST Tax Payment
Recording Payment Voucher using Autofill to make the GST payment to the department.
Date
Particulars
30th April 2020 Akash Electronics Pvt. Ltd. made payment of the following taxes to the department. The
payment was made through Axis Bank Current A/c vide cheque 519005.
Type of Tax
Tax Amount (₹)
Integrated Tax
720
Central Tax
360
State Tax
360
Total Tax Payable
1,440
Record the Payment Voucher using Autofill.
NOTE: After recording the GST Payment voucher selecting, Integrated Tax, Central and State Tax, the Duties & Taxes amount in Trial
Balance and Balance Sheet will be NIL.
GST Tax Payment
Challan Reconciliation
In the challan reconciliation report, we can define the payment details. In case any details are left while recording the
payment voucher, the same can be entered on this screen.
To reconcile the challan from Tally
 From Gateway of Tally > Display More Reports > GST Reports > Select Challan Reconciliation
 If the payment details have already been entered while recording the payment voucher, then the GST Challan Reconciliation
screen will not show the Payment Voucher.
To Update/Modify the details from GST Challan Reconciliation screen
 Click Ctrl+B: Basis of Values > Set Include transactions having Challan details to Yes and Press Ctrl+A to accept the List of the
Configuration screen.
 Press Space Bar to Select the voucher > Click S: Update Details to update the Payment Details.
Generating GST Returns in TallyPrime
GSTR-1
GSTR-3B
File GST Returns
GSTR-9
 Internet connectivity is required for uploading the JSON file, downloading the offline tool, and filing returns.
 Microsoft office is required for exporting data to the offline tool and it is recommended to use MS Excel 2007 or later versions.
Generating GST Returns in TallyPrime
Filing GSTR-1 Returns
GSTR-1 is the Monthly/Quarterly return that includes the details of all outward supplies.
It must be filed by the taxable person registered under GST.
It enables you to update the status of the transaction in the return based on reconciliation
status.
By default, the GSTR-1 report will display in table format.
Table format includes details of B2B, B2C, Credit/Debit Notes (Registered)-9B, advanced
received with Tax adjustments and nil-rated invoices.
Generating GST Returns in TallyPrime
Generating GSTR-1 Returns for Regular Dealer
 To generate the GSTR-1 report, follow the steps suggested below:
1. From Gateway of Tally > Display More Reports > GST Reports > GSTR-1
2. Click F2: Period > Change the Period from 1-4-2020 to 30-4-2020
Generating GST Returns in TallyPrime
GSTR-3B Returns
GSTR-3B is an Interim Return.
Regular Dealers should use GSTR-3B to file as monthly Returns.
Dealers who are covered in the QRMP scheme will file the return on a quarterly basis.
It can be viewed in the report format with Tax computation details.
Generating GST Returns in TallyPrime
Generating GSTR-3B Returns for Regular Dealer
 To generate the GSTR-3B report, follow the steps suggested below:
1. From Gateway of Tally > Display More Reports > GST Reports > GSTR-3B
2. Click F2: Period > Change the Period from 1-4-2020 to 30-4-2020
Generating GST Returns in TallyPrime
GSTR-9 – GST Annual Computation
 We can use the transactional data from TallyPrime to file GSTR-9
NOTE: To start with keep all this information on hand, before initiating the filing process.
Then from the Log GST portal i.e. https://www.gst.gov.in/, file the return.
Get GSTR – 1 Details from Tally
Get GSTR – 3B Details from Tally
Get GSTR – 9 Details from Tally
Conclusion
Learnt about Goods
and Services Tax
GST Invoicing & claiming
ITC
Record Interstate Transactions
Remitting the tax to the
Government
Implementation of GST
in Tally
Record Intrastate
Transactions
Adjusting ITC against available
Liability
Generating GSTR-1,
GSTR-3B & GSTR-9
In GSTR-1 report what type of details will be captured?
A
Inward Supply
Imports
C
B
Purchase from URD
D
Outward Supply
In TallyPrime, ________voucher is recorded to adjust the Available ITC with the Tax Liability.
A
Debit Note
C
Sales
B
Credit Note
D
Journal
GSTR-9 is a Quarterly return.
A
TRUE
B
FALSE
B
FALSE
Interstate transactions attract Integrated tax.
A
TRUE
Thank you