Contents

INTRODUCTION TO TALLY .............................................. 1

BASICS OF ACCOUNTING AND ACCOUNTING

VOUCHERS DETAILS ......................................................... 3

VOUCHER ENTRIES ........................................................... 9

BILL OF MATERIAL.......................................................... 21

GODOWN ............................................................................ 25

PURCHASE AND SALE ORDER ...................................... 29

PAYROLL............................................................................ 35

TAX DEDUCTED AT SOURCE (TDS) ............................. 40

GOODS AND SERVICE TAX (GST) ................................. 42

 INTRODUCTION TO TALLY

TALLY.ERP 9 :
Tally Solutions, then known as Peutronics, was co-founded in
1986 by Shyam Sunder Goenka and his son Bharat Goenka.
Shyam Sundar Goenka was running a company that supplied
raw materials and machine parts to plants and textile mills in
southern and eastern India. Unable to find software that could
manage his books of accounts, he asked his son, Bharat
Goenka, 23, a Maths graduate to create a software application
that would handle financial accounts for his business. The first
version of the accounting software was launched as an MS-
DOS application. It had only basic accounting functions, and
was named Peutronics Financial Accountant.

• In 1999, the company formally changed its name to Tally

Solutions.
• In 2006, Tally launched Tally 8.1, a concurrent multi-lingual
version, and also Tally 9.
• In 2009, the company released Tally.ERP 9, a business
management solution .
• In 2015, the company launched a program called Vriddhi to
certify and classify its business partners. Also in 2015, Tally
Solutions announced the launch of Tally.ERP 9 Release 5.0
with taxation and compliance features.
• In 2016, Tally Solutions was shortlisted as a GST Suvidha
• Provider to provide interface between the new Goods and
Services Tax (GST) server and taxpayers, and in 2017, the
company launched its updated GST compliance software.

1
TALLY PRIME :
Accounting is a process of identifying, recording, A product that
is tailor-made to delight. Experience a new age business
management software for new-age businesses. To grow your
business, and to make the right business decisions, you need
the right insights. With features like “Go To” and “customizable
reports” in the new Tally Prime, you can discover and look at
reports, slicing and dicing them the way you want. To help you
in your growth journey, Tally Prime enables you to manage
multiple companies and incrementally add features such as
multiple go-downs, multi-currency, order process, cost centers
etc. This helps you get rid of complexities, and in turn, focus on
business growth. Quick and hassle-free bills receivables and
payable management help you to get paid faster as well as
managing payment timelines. Also, Tally facilitates easy and
efficient stock movement, making it possible to optimize the
cash flow. Besides, the insightful reports at blink of eye help
you make confident decisions and plan the growth of your
business better. With the speed that Tally brings, you can get
things done quickly and save precious time, helping you do
more for less. With Tally Prime, you can print or view the
reports being in the middle of voucher entry, you can load
another company being in a report without abandoning the
activity you were on it, get to know the irregularities or odd
details from every report that you view and much more. No
more remembering short cut keys, you have the intuitive and
consistent workflow that helps you do work faster.

2
 BASICS OF ACCOUNTING AND
ACCOUNTING VOUCHERS DETAILS
BASICS OF ACCOUNTING

Introduction:
Accounting is a process of identifying, recording, summarizing
and reporting economic information to decision makers in the
form of financial statements. Financial statements will be useful
to the following parties:
• Suppliers
• Customers
• Employees
• Banks
• Suppliers of equipment, buildings and other assets
• Lenders
• Owners

Types of Accounts:

There are basically three types of Accounts maintained for

transactions:
1. Real Accounts
2. Personal Accounts
3. Nominal Accounts

Real Accounts:

Real Accounts are Accounts relating to properties and assets,

which are owned by the business concern. Real accounts
include tangible and intangible accounts. For example,
1. Land
2. Building
3. Cash
4. Purchases

3
Personal Accounts:

Personal Accounts are Accounts which relate to persons.

Personal Accounts include the following,
1. Suppliers
2. Customers
3. Lenders

Nominal accounts:

Nominal Accounts are Accounts which relate to incomes and

expenses and gains and losses of a business concern. For
example,
1. Salary Account
2. Dividend Account
3. Sales

Golden Rules of Accounting:

REAL PERSONAL NOMINAL

ACCOUNT ACCOUNT ACCOUNT
DEBIT WHAT THE EXPENCES
COMES IN RECEIVER AND LOSSES
CREDIT WHAT GOES THE GIVER INCOME AND
OUT EXPENDITURE

Journals:

A journal is a record in which all business transactions are

entered in a chronological order. A record of a single business
transaction is called a journal entry.

Ledger:

A Ledger is a book which contains all the accounts whether

personal, real or nominal, which are entered in journal or
subsidiary books.

4
Accounting Period:

Generally, the financial statements are generated for a regular

period such as a quarter or a year, for timely and accurate
ascertainment of operating and financial position of the organisation.

Transactions:

A transaction is a financial event that takes places in the

course or furtherance of business and effects the financial
position of the company. For example, when you deposit cash
in the bank, your cash balance reduces and bank balance
increases or when you sell goods for cash, your cash balance
increases and your stock reduces. Transactions can be
classified as follows:
1. Receipts – cash or bank
2. Payments – cash or bank
3. Purchases
4. Sales

Trial Balance:

Trial balance is a statement which shows debit balances and

credit balances of all Ledger accounts. As per the rules of
double entry system, every debit should have a corresponding
credit, the total of the debit balances and credit balances
should agree.

Trading Account:

Trading refers to buying and selling of goods. The trading

account displays the transactions pertaining to buying and
selling of goods. The difference between the two sides of the
Trading Account indicates either Gross Profit or Gross Loss.
Such Gross Profit / Gross Loss is transferred to Profit & Loss
Account.

5
Profit and Loss Account:

The profit and loss account helps to ascertain the net profit
earned or net loss suffered during a particular period. after
considering all other incomes and expenses incurred over a
period. the profit and loss statement shows the performance of
the company in terms of profits or losses over a specified
period.

Balance Sheet:

The balances of all the real, personal and nominal (capital in

nature) accounts are transferred from trial balance to balance
sheet and grouped under the major heads of assets and
liabilities. The balance sheet is complete when the net profit/
loss is transferred from the Profit and Loss account.

6
ACCOUNTING VOUCHERS DETAILS

Tally is pre-programmed with a variety of accounting vouchers,

each designed to perform a different job. The standard
Accounting Vouchers are:
• Contra Voucher (F4)
• Payment Voucher (F5)
• Receipt Voucher (F6)
• Journal Voucher (F7)
• Sales Voucher (F8)
• Credit Note Voucher (Alt+ F6)
• Purchase Voucher (F9)
• Debit Note Voucher (Alt + F5)

Contra Voucher (F4)

Records funds transfer between cash and

bank accounts

Payment Voucher (F5)

Records all payments for all expense, purchase done in

cash/cheque i.e., Bank

Receipt Voucher (F6)

Records all receipts into bank or cash accounts (Received of

any kind of Income e.g. Interest received, commission received,
etc. or sales done in cash / cheque)

Journal Voucher (F7)

Records Journal entries (Purchase returns, sales return, bills

payable, bills receivable)

7
Sales Voucher (F8)

Records all sales

Credit Note Voucher (Alt + F6)

Records credit note entry for sales returns or Customer

overcharging

Purchase Voucher (F9)

Records all purchases

Debit Note Voucher (Alt + F5)

Records debit note entry for purchase returns or over-charging

8
 VOUCHER ENTRIES
Accounting voucher

Creation of a Company

• Go to Gateway of Tally > (F3) Company > Create

Company

• Gateway of Tally > Create >Accounting Masters >

Ledger

• Gateway of Tally >Transactions > Vouchers

Note:

• CD means Cash Discount.

• TD means Trade Discount.
• Change mode (Ctrl + H) and select Double entry or As
Voucher (Purchase & Sales Voucher)
• Press (F12) Configure and enable Use Dr\Cr instead
of To\By during voucher entry.

9
Assignment 01

January 2001

1. Started a business with cash Rs.25000/-

2. Deposited into the bank Rs.5000/-
3. Purchased goods for cash Rs.10000/-
4. Sold goods for cash rs.15000/-
5. Purchased goods from Sharma Rs.5000/-
6. Sold goods to Verma Rs.8000/-
7. Return defective goods to Sharma Rs.500/-
8. Verma return defective goods Rs.1000/-
9. Paid cast to Sharma Rs.4000/-
10. Received cash from Verma Rs.6000/-
11. Received interest Rs.1500
12. Received Commission Rs.2000/-
13. Paid interest Rs.1000/-
14. Paid Commission Rs.1500/-
15. Purchase goods from Sohan Rs.8000/-
16. Paid Rs.3000/- to Sohan by Cheque
17. Sold goods for cash Rs.1000/-
18. Deposited into the bank Rs.5000/-
19. Paid Salary Rs.5000/- by cheque
20. Withdrawal from bank Rs.3000/-
21. Paid rent to landlord Rs.2000/-

10
Assignment 02

Started business with cash rs.25000/-,

goods Rs. 15000 /-

1. Cash purchased rs.5000/-

2. Cash sales rs.8000/-
3. Purchased goods from mona rs.4000/-
4. Sold goods to sona rs.6000/-
5. Sona returned goods worth rs.200/-
6. Return defective goods to mona rs.5000/-
7. Paid cash to mona rs.2000/-
8. Deposited into the bank rs.5000/-
9. Received cash from sona rs.4000/-
10. Paid rent by cheque rs.1000/-
11. Issued cheque to mona rs.500/-
12. Cash withdrawal from bank rs.1000/-
13. Received cash from sonar rs.1000/-
14. Paid salary rs.2000/-,electricity charges
rs.500/-,phone charges rs.1500/-

11
Assignment 03

May 2013

1) Started business with cash rs.40000/-

furniture rs.5000/- and building rs.10000/-
2) Deposited into bank rs.5000/-
3) Purchased goods from Rupali worth Rs.
5000/- at 5% TD
4) Cash purchased rs.8000/-
5) Sold goods worth Rs. 8000/- to depali at 3%T.D.
6) Cash sales Rs. 12000/-
7) Purchased machinery worth rs.25000/- from
Godrej & co. On credit
8) Purchased goods worth rs.7500/- from
Prasad at 5% TD
9) Purchased furniture worth Rs. 5000/-
10) Distributed goods worth 1000/- as free sample.
11) Paid rs.2000/- by cash & rs.2000/- by cheque to
Rupali
12) Uninsured goods worth rs.3000/- loss by fire

12
Assignment 04

August 1999

1. Asha invested into the business cash rs.15000/-

2. Opened a bank account by depositing cash Rs.1000/-
3. Cash purchased rs.7000/-
4. Purchased goods worth rs.8000/- from usha at 5% TD
5. Sold goods worth rs.5000/- to nisha at 2%T.D.
6. Nisha returned goods worth rs.100/-
7. Good worth rs.150/-returned to usha as they were
defective.
8. Paid to usha Rs. 5000/-
9. Received rs.4000/- from Nisha Withdraw
cash rs.500/- from the business for self use.
10. Deposited cash rs.5000/- into the bank
11. Cash sales rs.7000/-

13
Assignment 05

December 1998

1) Started business with cash Rs.50000/-,Furniture

Rs.40000/-, Bank Balance Rs.25000/-
2) Deposited into the bank Rs.20000/-
3) Purchased goods of Rs.25000/- off @ 8% C.D.
4) Purchased goods on credit from Manish Rs.10000/-
@ 10% T.D.
5) Sold goods to Rajesh Rs.19500/- off 3% T.D.
6) Sold Goods on cash Rs.3000/- off 5% C.D.
7) Paid house rent Rs.1500/-, office rent Rs.1000/-
8) Paid Advertisement Rs.2500/-, Printing Rs.1500/-
9) Paid Rs.9000/- to Manish by Cheque
10) Withdrawal from bank to the cash account for office
use rs.3000/-
11) Paid insurance premium Rs.1000/- on life Policy of
properties

14
Inventory Vouchers

Accounting vouchers will update only Accounts, but Inventory

vouchers will update both Accounts and Inventory. Inventory
vouchers record the receipt and issue of goods/stock
(Movement of goods), the transfer of stock between locations
and physical stock adjustments.

a. Go to Gateway of Tally > (F3)

Company > Create Company

b. Gateway of Tally > Create > Inventory

Masters > Stock Group

c. Inventory Masters > Unit

d. Inventory Masters > Stock items

e. Accounting Masters > Ledger

Note :

• Credit Note (Alt + F6) For Sales Return

• Debit Note (Alt + F5) For Purchase Return
• Change mode (Ctrl + H) Select As Invoice

15
Assignment 06

April 2006

1) Mr. Rathod started business with cash rs.500000\-

and furniture rs.20000 \-
2) Purchased 100 kg rice from Mr. Aryan per kg.26
3) Purchased 50 kg wheat from Mr. Vibhor per kg.30
4) Purchased 20 kg sugar from Mr. Aayush per kg 30
5) Purchased 50 kg Rice from ravisher credit per
kg.26
6) Purchased 20 kg wheat from Mr. Aayush on credit
per kg 20
7) Purchased 5 kg sugar from Mr. Aaryan on Credit per
kg 30
8) Returned to Mr. Vibhor 5 kg rice
9) Returned to Mr. Aryan 2 kg sugar
10) Returned to Mr. Ayush 5 kg wheat

16
Assignment 07

April 2008

1) Mr.Soni started business with cash rs.75000 and

furniture rs.15000
2) Sold 30 mtr. Cotton dress matarial to mr.Sayon 300
per mtr.
3) Sold 50 mtr. Silk dress matarial to Mr. Krishana 325
per mtr.
4) Sold 200 nos. Panjabi suit dress matarial to
Mr. Sujay 375 per mtr.
5) Sold 50 mtr. Khadi dress material to Mr. Sujay on
credit 400 per mtr.
6) Sold 20 mtr. Bandhani dress material to Mr.
Krishana 325 per mtr.
7) Sold 50 mtr. Cotton dress material to mr.Sayon 300
per mtr.
8) Returned from mr sayon 5 mtr. kosa dress material
9) Returned from Mr. Krishana 10 mtr.Bandhani dress
material
10) Returned from Mr. Sujay 12 mtr. Khadi dress Material

17
Assignment 08
January 2008
Mr. Thakur Started the Business with Cash Rs.
2,00,000/- Furniture Rs. 30,000/-.

Jan 1 Purchased 30 Boxes of Red Label Tea

from Mr. Shah.
Jan 8 Sold 50 Boxes of Bru Coffee to Mr. Saini.
Jan 10 Purchased 100 Boxes of Amul Butter
From Mr. Alam.
Jan 12 Sold 50 Nos. Amul Dahi to Mr. Shah on
credit.
Jan 15 Purchased 25 Lit Milk from Mr. Alam on
credit.
Jan 18 Sold 50 Boxes of Britannia Born Biscuits
to Mr. Saini on credit.
Jan 20 Returned from Mr. Shah 5 Nos. Amul
Dahi.
Jan 23 Returned to Mr. Alam 5 Lit Milk.
Jan 29 Returned from Mr. Saini 10 Boxes of
Britannia Born Biscuits.

18
Assignment 09

Stock Quantity Rate (per unit)

Electric Bulb 2000 Nos Rs.08/-
Wall Clock 100 Nos Rs.250/-
Wires 2000 Mts Rs.10/-
Screws 50 Dz Rs.05/-
Monitors 15 Nos Rs.900/-
Box Scripts 1000 Mts Rs.20/-
Switches 500 Nos Rs.10/-
Apples 200 kg Rs.06/-
Mangoes 200 Dz Rs.250/-
Grapes 200 Kg Rs.40/-
Water Melon 50 Nos Rs.25/-
Oranges 100 Nos Rs.10/-
Strawberries 200 kg Rs.300/-
Potatoes 200 kg Rs.20/-
Onions 200 kg Rs.18/-
Sweet Potatoes 200 kg Rs.25/-
Leady Fin Gars 200 kg Rs.30/-
Cabbages 200 kg Rs.18/-
Bringles 200 kg Rs.22/-

April 2007

Ms. Priya Started Business with Cash Rs. 50,000/- Furniture

Rs. 25,000/- Building Rs. 1,00,000/-.

April 1 Purchase 20 Dz Screws, 5 Nos. Monitors &

10 Nos. Wall Clocks.
April 3 Sold 500 Nos. Electric Bulbs, 100 Mts
Wires & Mts Box Strips.
April 5 Purchase 20 Nos. Switches & 10 Nos.
Electric Bulb from Mr. Satyam on credit.
April 7 Sold 5 Nos. Monitors & 10 Dz Screws to
Mr.Bhavan on credit.
April 9 Returned 2 Nos. Monitors from Mr.Bhavan.

19
April 11 Returned to Mr. Satyam 5 Nos. Switches & 3 Nos.
Electric Bulbs.
April 13 Purchased 20 Dz Mangoes, 5 kg Apples & 10 kg
Grapes.
April 15 Sold 10 Nos. Water Melon,10 Nos Oranges & 20 kg
Strawberries.
April 17 Purchased 20 Nos. Water Melon & 10
Nos. Oranges from Mr. Satyam on credit.
April 19 Sold 5 Dz Mangoes & 10 kg Grapes to Mr
Bhavan on credit.
April 21 Returned 2 Dz Mangoes from Mr.
Bhavan.
April 23 Returned to Mr. Satyam 5 Nos. Water
Melon & Nos.Oranges.
April 25 Purchased 10 kg Potatoes, 10 kg Onions
& 5 kg Sweet Potatoes.
April 27 Sold 5 kg Leady Fin gars, 5 kg Cabbages
& 10 kg Brengle’s.
April 28 Purchased 20 kg Sweet Potatoes & 5 kg
Cabbages from Mr. Satyam on credit.
April 29 Sold 25 kg Cabbages & 25 kg Potatoes
to Mr. Bhavan on credit.
April 30 Returned 5 kg Cabbages from Mr.Bhavan.
April 30 Returned to Mr. Satyam 3 kg Sweet Potatoes.

20
 BILL OF MATERIAL
A Bill of Materials is a list of constituent items along with
quantity details that can be allotted for the manufacture of a
certain product, by-product or likewise. This facilitates
immediate reduction in stock of the item automatically. This
process of listing the items that make up another item is made
possible in Tally by enabling the Bill of Materials Facility. Bill of
Material (BoM) is created only for those items that are being
assembled in-house. Therefore, you need to specify a BoM at
the time of creating a Stock Item or while altering the stock
item. For trading items, you do not need a BOM.

Assignment :

• Go to Gateway of Tally > (F3)

Company > Create Company
• Gateway of Tally > Create > Inventory
Masters > Stock Group
• Inventory Masters > Unit
• Inventory Masters > Stock items
Press : (F12) configure
Set Component List (Bill Of material) in Stock Item – Yes
1. Name: Monitor
Under: Electronic Shop
Units: Nos
Set components (BOM): No
Accept (Ctrl + A)
2. Name: Mouse
Under: Electronic Shop
Units: Nos
Set components (BOM): No
Accept (Ctrl + A)

21
3. Name: Keyboard
Under: Electronic Shop
Units: Nos
Set components (BOM): No
Accept (Ctrl + A)
4. Name: CPU
Under: Electronic Shop
Units: Nos
Set components (BOM): No
Accept (Ctrl + A)
5. Name: Speakers
Under: Electronic Shop
Units: Nos
Set components (BOM): No
Accept (Ctrl + A)
6. Name: Computer
Under: Electronic Shop
Units: Nos
Set components (BOM): Yes
Name of BOM: Computer
Enter
BOM Name : Computer
Component Of : Computer
Unit of Manufacturing : 1nos

ITEMS QUANTITY
CPU 1 NOS
MONITOR 1 NOS
MOUSE 1 NOS
KEYBOARD 1 NOS
SPEAKERS 2 NOS

Accept (Ctrl + A)

22
Accounting Vouchers > Voucher Types
Name: Manufacturing Computer
Select Type of Voucher: Stock Journal
Method of Voucher numbering: Automatic
Use as manufacturing journal: Yes
Accept (Ctrl + A)
Esc
Gateway of Tally > Transactions > Vouchers
F9 (Purchase)
Name: XYZ Pvt Ltd
Purchase ledger: Purchase A/c
Name of Items Quantity Rate Per
CPU 100 nos 7,000
Keyboard 100 nos 5,000
Mouse 100 nos 800
Monitor 100 nos 2,500
Speakers 200 nos 5,500

Accept (Ctrl + A)
Alt+F7
Manufacturing Computer
Name of Product: Computer
Name of Bom: Computer
Qty: 95nos
Enter

Components (Consumption)

Name of items Quantity Rate per

CPU 95 nos 7,000
Keyboard 95 nos 2,500

23
 Monitor 95 nos 5,000
Mouse 95 nos 800
Speakers 190 nos 5,500

Cost of Components:
Type of Additional Cost
Alt+C = Create

1. Name: Packing Cost

Under: Indirect Expenses
2. Name: Labour
Under: Indirect Expenses
3. Name: Trading Expenses
Under: Indirect Expenses

Type of Additional Percentage Amount

Cost
Packing Cost 2% 49970
Labour - 5000
Trading Expenses - 10000

Accept
F8 (Sale)
Name: WYZ PVT LTD
Sale Ledger : Sale a/c
Name of Item Qty Rate Per
Computer 92 nos 35,000
Accept (Ctrl + A)
Gateway of Tally > Display more reports >
Statement of Inventory > Stock Query

24
 GODOWN
Godown is a kind of location where stock items are safely
stored . As per Tally’s interpretation, the word Godown it is not
limited to physical godown. Companies may use it to track
inventory within factory premises at various manufacturing
stages or workstations.Further, it is also required to track
inventory of raw materials and semi-finished and finished
products under Job work activity either in case of materials
transferred on job work basis or for job work undertaken by the
company.

Assignment :

Go to Gateway of Tally > (F3)

Company >Create Company

Gateway of Tally > Create > Inventory

Masters > Godown

Create

1. Name - Koradi
Under - Primary
Accept

2. Name - Wardha
Under - Primary
Accept

3. Name - Mankapur
Under - Primary
Accept

Stock Group
Name - Kirana Shop
Under- Primary (Accept)

25
Unit
Type- Simple
Symbol- Kg
Formal Name- Kilogram
Number Of Decimal Places-0

Stock Items
1. Name –Rice
Under - Kirana Shop
Units - Kg
Accept
2. Name - Wheat
Under - Kirana Shop
Units - Kg
Accept
3. Name –Sugar
Under- Kirana Shop
Units- Kg
Accept

Ledger
1. Name- Purchase A/C
Under- Purchase A/C
Accept

2. Name –Sale A/C

Under- Sales Accounts
Accept
3. Name- Usha Pvt Ltd
Under- Sundry Creditors
Accept
4. Name- Nisha Pvt Ltd
Under- Sundry Debtors
Accept

26
Gateway of Tally > Transactions > Vouchers
F9 (Purchase)
Party A/C Name: Usha Pvt Ltd
Purchase Leadger: Purchase A/C
1. Rice
Godown Quantity Per Rate Amount
Kordi 500 kg 26 13000

2. Wheat
Godown Quantity Per Rate Amount
Mankapur 800 kg 40 32000

3. Sugar

Godown Quantity Per Rate Amount

Wardha 600 kg 55 33000

Alt + F7 (Stock Journal)

Transfer of Material
Source (Consumption)

Name of Godown Quantity Per Rate Amount

Item
Rice Koradi 500 kg 26 13000
Wheat Mankapur 800 kg 40 32000
Sugar Wardha 600 kg 55 33000

Destination (Production)

Name of Godown Quantity Per Rate Amount

Item
Rice Mankapur 400 kg 26 10400

27
 Wheat Wardha 600 kg 40 24000
Sugar Koradi 400 kg 55 22000

Accept

F8 (Sales)
Party A/C Name: Nisha Pvt Ltd
Sale Ledger: Sale A/C

1. Rice
Godown Quantity Per Rate Amount
Koradi 300 kg 35 10500

2. Wheat
Godown Quantity Per Rate Amount
Mankapur 200 kg 50 10000

3. Sugar
Godown Quantity Per Rate Amount
Wardha 150 60 9000

Accept

Gateway of Tally > Display more reports >

Inventory Book > Godown

Statement of Inventory > Stock Query > Select Item

28
 PURCHASE AND SALE ORDER
Purchase Order Processing is the process of placing orders
with suppliers for a purchase to be made from them.

Receipt Note
(Alt + F9)
Purchase Order
(Ctrl + F9)
Rejection Out
Order Voucher (Ctrl + F5 )

Purchase Bill
(F9)

Sales Order Processing is the process of receiving orders

from customers for the purpose of selling.

Delivery Note
(Alt + F8)
Sale Order
(Ctrl + F8)
Rejection In
Order Voucher (Ctrl + F6 )

Sales Bill
(F8)
Note:

• Rejection out voucher is used to record goods returned

back that were rejected by the company.

• A Rejections in Voucher is used to record goods that are

rejected and returned by the customer.

29
 • A Receipt Note voucher is used to record receipt of
goods / items at stores.

• The Delivery Note Voucher is used for recording goods

delivered to a customer.

Assignment:

Go to Gateway of Tally > (F3)

Company > Create Company

Gateway of tally > Alter > Voucher Type >

Select Purchase Order >

Activate this voucher Type: Yes (Ctrl + A)

Select Sale Order >

Activate this voucher Type: Yes (Ctrl + A)

Select Receipt Note >

Activate this voucher Type: Yes (Ctrl + A)

Select Delivery Note >

Activate this voucher Type: Yes (Ctrl + A)

Select Rejection Out >

Activate this voucher Type: Yes (Ctrl + A)

Select Rejection In >

Activate this voucher Type: Yes (Ctrl + A)

30
 Purchase Order

Gateway of Tally > Transactions > Vouchers

Purchase Order (Ctrl + F9)
Create: (Alt + C)
Name: ABC Pvt Ltd
Under: Sundry Creditors
Accept

Order Details
Mode/ Term Of Payment : Cash ,Cheque
(Write Any One)
Term of Delivery: By Transport
Dispatch Through: S.K. Goods Bus/Train/Postage
Destination: Nagpur
Enter

Order No.: 123

Ledger:
Name: Purchase A/C
Under: Purchase Accounts
Accept
Name of Item Qty Per Rate Amount
Monitor 10 Nos 4000 40000
Keyboard 11 Nos 2000 22000
Accept (Ctrl + A)
Receipt Note (Alt + F9)
Select your Previous Name
Order No (S): 123
Then Enter & Accept (Ctrl + A)

31
Rejection Out (Ctrl + F5) For Purchase Return
Ledger Account:
Select Your Previous Name
Suppliers Name:
Select Your Previous Party Name
Then Write Down Only the Qty. You Want to Return

Name of Item Qty. Rate Amount

Monitor 3 4000 12000
keyboard 5 2000 10000

Accept (Ctrl + A)
Purchase (F9)
Party Name: ABC Pvt Ltd
Purchase Ledger: Purchase A/C
Name of Item Qty. Per Rete Amount

Monitor 7 4000 28000

Keyboard 6 2000 12000
Accept (Ctrl + A)
Payment (F5)
Dr. ABC Pvt Ltd 40000/- -
Cr. Cash - 40000/-
Accept (Ctrl + A)

32
 Sales Order
Gateway of Tally > Transactions > Vouchers
Sale Order (Ctrl + F8)
Create: (Alt + C)
Name: XYZ Pvt Ltd
Under: Sundry Debtors
Accept
Order Details
Mode/ Term of Payment: Cash, Cheque
(Write Any One)
Term of Delivery: By Transport
Dispatch Through: S.K. Goods Bus/Train/Postage
Destination: Delhi
Enter
Order No.: 321
Ledger:
Name: Sale A/C
Under: Sale Accounts
Accept
Name of Item Qty Per Rate Amount
Monitor 05 Nos 5000 25000
Keyboard 03 Nos 3500 10500
Accept (Ctrl + A)
Delivery Note (Alt + F8)
Select your Previous Name
Order No (S): 321
Then Enter & Accept (Ctrl + A)

Rejection In (Ctrl + F6) For Sales Return

Ledger Account:
Select Your Previous Name

33
 Suppliers Name:
Select Your Previous Party Name
Then Write Down Only the Qty. You Want to Return

Name of Item Qty. Rate Amount

Monitor 01 5000 5000
keyboard 02 3500 7000

Accept (Ctrl + A)
Sales (F8)
Party Name: XYZ Pvt Ltd
Purchase Ledger: Sales A/C

Name of Item Qty. Per Rete Amount

Monitor 04 5000 20000

Keyboard 01 3500 3500

Accept (Ctrl + A)

Receipt (F6)

Dr. Cash 23500/- -

Cr. XYZ Pvt Ltd - 23500/-
Accept

Go to gateway of Tally > Display and More Reports >

Inventory books

34
 PAYROLL
Payroll is the process of maintaining records of all employee
salary under various pay head, all statutory and non- statutory
deduction attendance/ absent record.

Go to Gateway of Tally > (F3)

Company > Create Company > AG Computers

Press: F11 (features)

Maintain Payroll : Yes
Enable payroll statutory : Yes

F2 (Date) = 01-05-2020

Gateway of Tally > Create > Payroll

Masters > Attendance \ Production Type

01. Absent
Under : Primary
Attendance Type : Leave Without Pay

02. Overtime
Under : Primary
Attendance Type : On Production
Unit : (Alt + C) HRS (Hours)

Payroll Masters > Pay head Creation

01. Basic Salary

Pay head type : Earning for employees
Under : Indirect Employees
Calculation Type : On Attendance
Attendance\Leave With pay : Not Applicable
Leave Without pay : Absent
Calculation Period : Month
Basic of calculation (Per Day) : As per Calendar Period
Accept (Ctrl + A)

35
 02. Overtime
Pay head type : Earning for employees
Under : Indirect Employees
Calculation Type : On Production
Production Type : Overtime

03. Travelling Allowance

Pay head type : Earning for employees
Under : Indirect Employees
Calculation Type : Flat Rate
Calculation Period : Months

04. Dearness Allowances

Pay head type : Earning for employees
Under : Indirect Employees
Calculation Type : As Computed Value
Calculation Period : Months
Computation Information
Compute: On Current Earning Total

Effective Amount Amount Slap Type Value

from Greater Up To
Than
01.05.2020 10000.00 Percentage 15%
10000.00 15000.00 Percentage 12%
15000.00 25000.00 Percentage 10%
25000.00 35000.00 Percentage 8%
35000.00 Percentage 0%

05. Employee Provident Fund

Pay head type : Earning for employees
Under : Indirect Employees
Calculation Type : As Computed Value
Calculation Period : Months

36
Payroll Masters > Employee Group

01. Manager
Under : Primary
Accept
02. Assistant manager
Under : Primary
Accept

03. Accountant
Under : Primary
Accept

04. Teaching Staff

Under : Primary
Accept

05. Non-Teaching Staff

Under : Primary
Accept

Payroll Masters > Employee

01. Ashok Sharma

Under : Manager
Define Salary Details : Yes
Basic Salary : 40000.00 per Month
Overtime : 350.00 per Hrs
Dearness Allowances : 1500.00 per Month
Employee provident Fund : 1200.00 per Month

02. Sahil Jadhav

Under : Assistant Manager
Define Salary Details : Yes
Basic Salary : 35000.00 per Month
Overtime : 250.00 per Hrs
Dearness Allowances : 850.00 per Month
Employee provident Fund : 1200.00 per Month

37
 03. Rakesh Sahu
Under : Teaching Staff
Define Salary Details : Yes
Basic Salary : 30000.00 per Month
Overtime : 200.00 per Hrs
Dearness Allowances : 1000.00 per Month
Employee provident Fund : 850.00 per Month

04. Shradha Singh

Under : Teaching Staff
Define Salary Details : Yes
Basic Salary : 25000.00 per Month
Overtime : 200.00 per Hrs
Dearness Allowances : 800.00 per Month
Employee provident Fund : 650.00 per Month

05. Komal Pande

Under : Non Teaching Staff
Define Salary Details : Yes
Basic Salary : 15000.00 per Month
Overtime : 150.00 per Hrs
Dearness Allowances : 600.00 per Month
Employee provident Fund : 500.00 per Month

Gateway of Tally >Transactions > Vouchers > (F10)Other

Vouchers > Attendance

Ashok Sharma Absent 03 days

Sahil Jadhav Absent 06 days
Rakesh Sahu Absent 02 days
Shradha Singh Absent 01 days
Komal Pande Absent 05 days
Ashok Sharma Overtime 13 Hrs
Sahil Jadhav Overtime 16 Hrs
Rakesh Sahu Overtime 12 Hrs
Shradha Singh Overtime 11 Hrs
Komal Pande Overtime 15 Hrs

Accept (Ctrl + A)

38
Press (Ctrl + F4) Payroll Voucher
Create Ledger (Alt + C) = HDFC Bank
And Opening Balance = 800000.00

Press Ctrl + F = Autofill

Type of transaction : payroll Autofill
Process For : Salary
From : 01.05.2020
To : 31.05.2020
Employee\Group : All Items
Sort By : Employee name
Payroll\bank\cash ledger : HDFC bank
Enter

Display And More Reports > Payroll

39
 TAX DEDUCTED AT SOURCE (TDS)
TDS means Tax Deducted at Source. The concept of TDS was
introduced in the Income Tax Act, 1961, with the objective of
deducting the tax on an income, at the source of income. It is
one of the methods of collecting Income Tax, which ensures
regular flow of income to the Government.

Assignment :

Go to Gateway of Tally > (F3)

Company > Create Company

Enable Tax Deducted at Source (TDS) - Yes

Set /Alter TDS Details - Yes
Ctrl+ A – Accept

Gateway of Tally > Create

Accounting Masters > Ledger

1. Roy Service
Under - Sundry Creditors
Statutory Information -
Is TDS Deductible - Yes
Deducted Type – Company Non Resident
Deduct TDS In Same Voucher - Yes

2. Technical Services
Under – Indirect Expenses
Is TDS Applicable - Applicable
Nature of Payment - Technical Services
Accept

40
3. TDS on Technical Services
Under – Duties and Taxes
Type of Duties and Taxes – TDS
Nature of Payment – Technical Services

Gateway of Tally > Transactions > Vouchers

Journal (F7)
Dr. Technical Services 30000 -
Cr. Roy Services - 24000
Cr. TDS On Technical Services - 6000
Accept

Payment (F5)

Dr. Roy Service 24000 -

Cr. Cash - 24000
Accept

Payment (F5)

Dr. TDS On Technical Services 6000 -

Cr. Cash - 6000
Accept

Go to gateway of Tally > Display and More Reports >

Statutory > TDS Reports

41
 GOODS AND SERVICE TAX (GST)
GST is an Indirect Tax which has replaced many Indirect Taxes
in India. The Goods and Service Tax Act was passed in the
Parliament on 29th March 2017. The Act came into effect on
1st July 2017; Goods & Services Tax Law in India is a
comprehensive, multi-stage, destination-based tax that is levied
on every value addition.

In simple words, Goods and Service Tax (GST) is an indirect

tax levied on the supply of goods and services. This law has
replaced many indirect tax laws that previously existed in India.

Taxes Under GST :

CENTER GST
(CGST)
INTRA-STATE
MOVEMENT
STATE GST
(SGST)
GST

INTER STATE INTERATED GST

MOVEMENT (IGST)

➢ CGST – Central GST – Applies to sales within the

state – goes to Central Government
➢ SGST – State GST – Applies to sales within the state
- goes to State Government
➢ IGST – Integrated GST – Applies to sales outside the
state – goes to Central Government

For example, if you sell something within the state, 50% of the
GST will be CGST and 50% of the GST will be SGST. But
42
when you sell something outside a state, 100% of it will be
IGST which will go to the Central Government. Now that you
have a basic understanding of how GST works, we can go
ahead to understand the working of GST in Tally along with its
accounting and calculation.

How to charge the tax under GST :

Event SGST CGST IGST

Goods sold from Delhi to Pune No No Yes
(i.e. within the state – inter-state)

Goods sold within Pune Yes Yes No

(i.e. within the state – intra-state)
Goods sold from Pune to Mumbai Yes Yes No
(i.e. within the state – intra-state)

Registration of GST process :

• GST registration process will be online through a portal

maintained by Central Government of India. Govt. will also
appoint GSPs (GST Suvidha Providers) to help businesses
with the registration process.
• The applicant, will need to submit his PAN, mobile number
and email address in Part A of Form GST REG–01 on the
GSTN
• portal or through Facilitation center (notified by board or
commissioner).
• The PAN is verified on the GST Portal. Mobile number and
E-mail address are verified with a one-time password (OTP).
Once the verification is complete, applicant will receive an
application reference number on the registered mobile
number and via E-mail. An acknowledgement should be
issued to the applicant in FORM GST REG-02 electronically.

43
• Applicant needs to fill Part- B of Form GST REG-01 and
specify the application reference number. Then the form can
be submitted after attaching required documents.
• If additional information is required, Form GST REG-03 will
be issued. Applicant needs to respond in Form GST REG-04
with required information within 7 working days from the date
of receipt of Form GST REG-03.
• If you have provided all required information via Form GST
REG-01 or Form GST REG-04, the registration certificate in
Form GST REG –06 for the principal place of business as
well as for every additional place of business will be issued
to the applicant. If the person has multiple business verticals
within a state he can file a separate application for the
registration in Form GST REG-01 for each business
verticals. If the details submitted are not satisfactory, the
registration application is rejected using Form GST REG-
05.The applicant who is required to deduct TDS or collect
TCS shall submit an application in Form GST REG – 07 for
registration. If he is no longer liable to deduct or collect tax at
source then the officer may cancel and communicate the
cancel of registration.
Documents required for GST registration :

• PAN card of the Company

• Proof of constitution like partnership deed, Memorandum of
Association (MOA) /Articles of Association (AOA), certificate
of incorporation.
• Details and proof of place of business like rent agreement or
electricity bill
• Cancelled cheque of your bank account showing name of
account holder, MICR code, IFSC code and bank branch
details

44
• Authorized signatory like List of partners with their identity
and address proof in case of partnership firm or List of
directors with their identity and address proof in case of
company.
Cancellation of Registration :

• Regular supplier not filing continuous 6 monthly returns

• Composition supplier not filing 3 continuous returns
• Voluntary dealer not starting business for 6 months

GSTIN :

In the new GST regime, all these taxpayers will get consolidated
into one single platform for compliance and administration
purposes and will be assigned registration under a single
authority. The government has set up GSTN–a special purpose
vehicle to provide the IT infrastructure necessary to support GST
digitally. It is expected that 8 million taxpayers will be migrated
from various platforms into GST. All of these businesses will be
assigned a unique Goods and Services Tax Identification
Number (GSTIN). But most are yet not aware of the new
registration process and the identification number.

45
Assignment 1
Goods Transaction Between 2 Different States
Inter-State = Purchase & Sale (IGST )

1. Purchase Following Items From DEF PVT. LTD. Karnataka.

Goods Quantity Rate
32”LCD TV 05 6000
Monitor 10 5500

2. Sale Following Items to LMN PVT LTD Haryana.

Goods Quantity Rate
32”LCD TV 03 6500
Monitor 02 6000
3.Purchase Following Items From UMESH PVT LTD Punjab.
Goods Quantity Rate
32”LCD TV 05 5800
Monitor 02 5200

4.Sale Following Items to VISHAL PVT LTD Gujrat.

Goods Quantity Rate
32”LCD TV 07 7200
Monitor 10 6600
Pass GST Payment Entry
Goods HSN Code Tax Rate
32” Lcd Tv 85284900 18%
Monitor 87651234 12%

Party Name State GST In Coad

DEF Pvt Ltd Karnataka 29AGPST7856H6Z5
LMN Pvt Ltd Haryana 06AYTY48965L6Z9
Umesh Pvt Ltd Punjab 03THDER8546P6Z8
Vishal Pvt Ltd Gujrat 24JKLSD8593E3Z3

46
Assignment 2
Goods Transaction Within States
Intra-State = Purchase & Sale (CGST & SGST)

1. Purchase Following Items From ABC PVT LTD Pune (MH).

Goods Quantity Rate
32”Lcd Tv 10 5600
Monitor 15 4500

2. Sale Following Items To XYZ PVT LTD Mumbai (MH)

Goods Quantity Rate
32”Lcd Tv 5 6000
Monitor 3 5000

3. Purchase Following Items From RAM PVT LTD Pune (MH).

Goods Quantity Rate
32”Lcd Tv 6 6200
Monitor 3 5000

4. Sale Following Items To SHYAM PVT LTD Mumbai (MH)

Goods Quantity Rate
32”Lcd Tv 10 6800
Monitor 12 6000

Pass GST Payment Entry

Goods HSN Code Tax Rate
32” Lcd Tv 85284900 18%
Monitor 87651234 12%

Party Name State GST In Coad

ABC PVT LTD Maharashtra 27AGWPD1239CIZ3
XYZ PVT LTD Maharashtra 27AGYK1357A4Z2
RAM PVT LTD Maharashtra 27AMGGNT8253Y9Z3
SHYAM PVT LTD Maharashtra 27YSTKN3745K7Z5

47
Assignment 3
Services Transaction Between States
Intra-State = Purchase & Sale (CGST & SGST)

1. Purchase Consultancy Services To HJT PVT LTD At

Rs.10000 Pune (MH).

2. Sold Fashion Designing Services To YTR PVT LTD At

Rs.12000 Mumbai (MH).

3. Purchase Consultancy Services To RAM PVT LTD At

Rs.9000 Pune (MH).

4. Sold Fashion Designing Services To SHYAM PVT LTD At

Rs.15000 Nagpur (MH).
Pass GST Payment Entry

Services SAC Code Tax Rate

Consultancy 00440290 18%
Services
Fashion Designing 00440237 18%
Services

Party Name State GST In Coad

ABC PVT LTD Maharashtra 27AGWPD1239CIZ3
XYZ PVT LTD Maharashtra 27AGYK1357A4Z2
RAM PVT LTD Maharashtra 27AMGGNT8253Y9Z3
SHYAM PVT LTD Maharashtra 27YSTKN3745K7Z5

48
Assignment 4
Goods Transaction Within States
Intra-State = Purchase & Sale (CGST & SGST)

1. Purchase Fashion Services From GFR PVT

LTD(KARNATAKA) At Rs.10000.

2. Sold Construction Services To RTE PVT LTD (HARAYANA)

At Rs.25000

3. Sold Construction Services To VIJAY PVT LTD (PUNJAB)

At Rs.20000.

4. Purchase Fashion Services From VISHAL PVT LTD

(GUJRAT) At Rs.12000.

Pass GST Payment Entry.

SERVICE SAC CODE TAX RATE
CONSTRUCTION SERVICES 00440290 18%
FASHION SERVICES 00440237 18%

Party Name State GST In Coad

GFR PVT LTD KARNATAKA 29AGPST7856H6Z5

RTE PVT LTD HARAYANA 06AYTY48965L6Z9

VIJAY PVT LTD PUNJAB 03THDER8546P6Z8
VISHAL PVT LTD GUJRAT 24JKLSD8593E3Z3

49
Notes

50