M/s Arjun ltd. Co.
create the following Ledgers
Ledgers
Group
Loan HDFC A/c
Loans Liability
Bank SBT A/c
Bank Account
Furniture A/c
Fixed asset
Furniture Mart A/c
Sundry Creditors
Advertisement A/c
Indirect Expense
Media Advertiser A/c
Sundry Creditors
Printing charge A/c
Indirect Expense
Machinery A/c
Fixed asset
Purchase A/c
Purchase Accounts
Aroma traders A/c
Sundry Creditors
Telephone charge A/c
Indirect Expense
Sales A/c
Sales Account
Purchase Return A/c
Purchase Accounts
Kishore A/c
Sundry Debtor
Sales Return A/c
Sales Account
Drawings A/c
Capital Account
Salary A/c
Indirect Expense
2010 Oct:1
Arjun started a business with cash Rs. 10,00,000
To record this Press F6 for Receipt Voucher. If you want to change the current date Press F2 and
give the date
Cr select Capital A/c
Type Amount 1000000
Dr select Cash A/c
Press Enter Key
Then Give Narration if necessary
Press enter key and accept it.
Oct: 2
Received a bank loan from HDFC Bank Rs. 5,00,000
Opened a bank account with Bank SBT Rs. 2,00,000
Press F2 then change date
Press F4 for Contra Voucher
Oct: 3
Bought Furniture from Furniture Mart Rs. Rs. 1,00,000
Press F2 give date
Press F7 for Journal Voucher
Dr Furniture A/c
Cr Furniture Mart A/c
then give bill details and accept it
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Advertisement payable to Media Advertiser Rs. 1,00,000 (Inv. No. 1284, due days 10 days)
Press F7 for Journal Voucher
Oct: 4
Paid printing charge Rs. 500
Bought Machinery Rs. 1,20,000
press F5 for Payment Voucher and change date
Oct: 5
Purchased goods from Aroma Traders Rs. 85,000 (bill No: 108)
Press F9 (Purchase)
then Press F2 for change date
Cr Aroma Traders A/c
Dr Purchase A/c
Purchased goods for cash Rs. 10,000
Press F9 (Purchase)
then Press F2 for change date
Cr Cash A/c
Dr Purchase A/c
Oct: 6
Telephone charge paid by SBT cheque Rs. 1800 (Ch No:123456789)
press F5 for Payment Voucher and change date
Oct: 7
Cash sales Rs. 50,000
Press F8 then press Ctrl + V to change format of sales voucher. i.e. invoice mode to debtor creditor
mode then give
Dr Cash A/c
Cr Sales A/c
Oct: 8
Goods returned to Aroma traders Rs. 5,000 (agst Bill No: 108)
Press F11 features activate Use debit/credit note Yes
then Press Ctrl + F9 Debit Note for Purchase Return, then select
Dr Aroma Traders A/c
Cr Purchase Return A/c
give Bill details agst then select the bill no.
Oct:10
Cash paid to Aroma Traders Rs. 25,000 (Bill 108)
Press F5 for Payment Voucher
Press F2 and give the date
Here select the bill details agst ref then select the bill No.
Oct: 11
Sold goods to Kishore Rs. 40,000 (Bill No: 2)
Press F8 for sales voucher
Press F2 and give date
Dr Kishor A/c
in bill wise details select New Ref
Cr Sales A/c
Oct: 12
Cash received from Kishore Rs. 25,000 (Bill No: 2)
Press F6 (Receipt)
then Press F2 for change date
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Oct: 13
Goods returned from Kishore Rs. 5,000 (Bill No: 2)
Press Ctrl + F8 for Credit Note ( Sales Return)
Press F2 Change Date
Oct:15
Cash withdrawn from SBT Bank Rs. 10,000
Press F4 for Contra Voucher
Press F2- Change Date
Oct: 16
Paid loan of HDFC Rs. 1,00,000
Press F5 for Payment
Press F2 for date
Oct: 17
Cheque of Bank SBT issued to Furniture Mart Rs. 50,000
In Payment Voucher Press F2 for change date
Oct: 18
SBT Cheque issued to Media Advertiser Rs. 50,000
Press F5 for Payment
Press F2 for date
Oct: 25
Cash withdrawn from SBT Bank for personal use Rs. 5,000
Press F4 for Contra Voucher
Press F2- Change Date
Oct: 30
Paid salary Rs. 12,000
Press F5 for Payment
Press F2 for date
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Example 2
M/s A &S Enterprise
Trial Balance as on 31st Dec 2014
Particulars
Stock as at 1st Jan 2014
Capital
Drawings
Cash
Bank A/c
Creditors A/c
Debtors A/c
Furniture A/c
Machinery A/c
Purchase A/c
Purchase return A/c
Sales A/c
Sales return A/c
Salary A/c
Discount A/c
Rent A/c
Insurance A/c
Carriage A/c
Bad debts A/c
Provision for bad debts A/c
Freight A/c
Debit
28,000
Credit
500,000
12,000
13,500
47,600
38,300
45,500
200,000
325,000
127,000
4,800
278,000
5,600
8,000
1,500
8,500
1,250
850
1,250
2,150
700
824,750
824,750
Adjustments
1.
Closing stock was valued at Rs. 34,000
2.
Outstanding Salary Rs. 2,000 and Outstanding Rent Rs. 1,000
3.
Prepaid Insurance Rs. 250
4.
Write off Rs. 500 as further Bad debts
5.
Provide provision for bad debts at 5% on debtors
6.
Depreciate Machinery at 10% and Furniture at 5%
for giving the amount of cash,
in single ledger select Alter- then select cash
in opening Balance give the amount of Cash Rs. 13,500
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See the adjustments
1.
Closing stock was valued at Rs. 34,000
For giving the value of closing stock, from Gateway of Tally- Accounts info- Ledgers- AlterStock(which you already given), then in closing balance give company date ie 01-04-2014 and accept
it by pressing enter key
2.
Outstanding Salary Rs. 2,000 and Outstanding Rent Rs. 1,000
Outstanding expense means expense due but not paid. So it is a liability to the business. So it shown
on the liability side if the Balance sheet and in Trading and profit or Loss A/c it should be added to the
concerned expenses. The journal entry is that,
Expense A/c .Dr
Outstanding expense
In this example salary and rent are outstanding. So the journal entry for this,
Salary A/c .Dr
Outstanding Salary A/c
In Tally you should give the journal entry.
From Gateway of Tally Accounting Voucher
Every adjustment are non-cash transactions. So select Journal voucher by pressing F7
Here in
Dr. Salary A/c
1000
Cr. Outstanding Salary A/c 1000
for creating Outstanding salary Press Alt + C( it is the short cut key for secondary ledger creation)
outstanding salary under the head of current liabilities
Prepaid insurance Rs 250
Prepaid expanse means expense paid in advance. So it is an asset to the business so it shown on the asset
side of the balance sheet. In the trading and profit or loss account, it will be deducted from the concerned expense.
The journal entry is that,
Prepaid expense A/c. Dr.
Expenses A/c
The above example,
Dr. prepaid insurance (current asset)
Cr. Insurance
For creating prepaid insurance press ALT +C and create it under the of current asset
Write off Rs 500 as further bad debts
Bad debts refer to irrecoverable portion of sundry debtors. That is the amount that the form has not been
able to realize from its debts. It is regarded as a loss and shown on the debit side of the Profit& Loss A/c. In the
Balance sheet it deducted from Sundry Debtors. The journal entry is that,
Bad debts A/c..Dr
Sundry debtors
Provide provision for bad debts @ 5% on sundry debtors
It is a normal course business operation that sum debts prove irrecoverable, which means that the amount
to be realized from them becomes bad. In view of this, an attempt is made to bring in certain element of certainty in
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the amount irrespect of bad debts charged every year against income. This attempt takes the form of maintaining a
provision designed to cover the loss of bad debts is called provision for bad debts. It created from sundry debtors.
So in the balance sheet it deducted from sundry debtors. It is an expense to the business, so it shown on the debit
side of profit & loss A/c. the journal entry is that,
Provision for bad debts A/c .Dr.
Sundry debtors
In the above example,
Dr Provision for bad debts A/c
Cr sundry debtors A/c
For calculating the amount of provision, press ALT+ C on the amount column, it will be activated the
calculator area. Here you should type (45500-500)*5% then press enter key then you will get the correct amount on
the amount column
Depreciate machinery @10% and furniture @5%
Depreciate means declining value of asset due to wear & tear or usage or passage of time. It is business
expenditure, so it shown on the debit side of the profit or Loss A/c. in the balance sheet, it is deducted from the
concerned asset. The journal entry is that,
Depreciation A/c Dr,
Fixed asset A/c
In the above example,
Dr. Depreciation on machinery A/c (under indirect expense)
Cr. Machinery A/c
For calculating amount press ALT+C on the amount column, then type 325000*10% then press enter key.
Depreciation on furniture
Dr. Press ALT +c depreciation on furniture A/c
press ALT +C 200000*5%
Cr. furniture A/c
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