Table of Contents
Chapter 1. Fundament of Accounting
1.1 Introduction
1.1.1 Meaning of Accounting
1.2 Terminologies Used in Accounting.
1.3 Concepts of Accounting
1.4 Double Entry System of Accounting
1.4.1 Uses of Debit and Credit
1.4.2 Rules of Debit and Credit.
1.5 Rules of Debit and Credit.
1.6 Recording of Business Transactions
1.6.1 Recording of Business Transactions
1.7 Trial Balance
1.8 Financial Statements
1.8.1 Trading Account
1.8.2 Profit & Loss Account
1.8.3 Balance Sheet
1.9 Subsidiary Books & Control Accounts
1.9.1 Cash Book
1.9.1.1 Single Column Cash Book
1.9.1.2 Double Column Cash Book
1.9.1.3 Three-Column Cash Book
1.9.2 Petty Cash Book
1.9.3 Purchase (Journal) Book
1.9.4 Purchases Return (Journal) Book
1.9.5 Sales (Journal) Book
1.9.6 Sales Return (Journal) Book
1.9.7 Journal Proper
1.9.8 Control Accounts
1.10 Control Accounts
1.10.1 Control Accounts
1.10.2 Preparation of Depreciation Schedule
1.11 Computerised Accounting
1.11.1 Advantages of Computerised Accounting
1.11.2 Advantages of Computerised Accounting
Key Takeaways
Practice Exercises
Chapter 2. Introduction to TallyPrime
2.1 Introduction34
2.2 Features of TallyPrime34
2.3 Downloading and Installation of TallyPrime34
2.4 Types of Licenses in TallyPrime40
2.5 Activate New License41
2.6Reactivate License in TallyPrime42
2.7Use License from Network in a Multiuser Environment44
2.8Working TallyPrime in Educational Mode44
2.9Company Creation and Setting up Company Features in TallyPrime45
2.10Getting Started with TallyPrime52
2.10.1Navigating from Anywhere to Anywhere in TallyPrime52
2.10.1.1 Top Menu52
2.10.1.2 Right Buttons54
2.10.1.3 Keyboard Shortcuts in TallyPrime57
2.10.1.4 Go To59
2.10.1.5 Switch To61
2.11 F12 Configuration in TallyPrime63
2.12 Alter Company Details63
2.13 Shut the Company63
Key Takeaways64
Practice Exercises65
Chapter 3. Maintaining Chat of Account
3.1 Introduction68
3.2 Chart of Accounts68
3.3 Creation of Masters in TallyPrime72
3.3.1 Accounting Masters75
3.3.1.1 Group Creation75
3.3.1.2 Ledger Creation77
3.3.2 Inventory Masters81
3.3.2.1 Creation of Stock Group81
3.3.2.2 Creation of Stock Category84
3.3.2.3 Creation of Unit of Measure87
3.3.2.4 Creation of Stock Item90
3.3.2.5 Creation of Godown93
3.4 Alteration of Masters in TallyPrime95
3.5 Deletion of Masters in TallyPrime97
3.6 Multi-Masters Creation and Display of Chart of Accounts98
3.6.1 Multi Groups Creation98
3.6.2 Multi Ledgers Creation100
3.6.3 Multi Stock Groups Creation105
3.6.4 Multi Stock Items Creation106
Key Takeaways109
Shortcut Keys110
Practice Exercises110
Chapter 4: Recording and Maintaining Accounting
Transactions
4.1 Introduction114
4.2 Recording Transactions in Tally114
4.3 Recording Accounting Vouchers in TallyPrime114
4.3.1 Receipt Voucher (F6)118
4.3.2 Contra Voucher (F4)123
4.3.3 Payment Voucher (F5)128
4.3.4 Purchase Voucher (F9)133
4.3.5 Sales Voucher (F8)146
4.3.6 Debit Note Voucher (Alt + F5)156
4.3.7 Credit Note Voucher (Alt + F6)164
4.3.8Journal Voucher (F7)171
4.3.8.1 Recording for Provisions182
Key Takeaways183
Shortcut Keys184
Practice Exercises184
Chapter 5: Banking
5.1 Introduction188
5.2 Banking Payments188
5.3 Cheque Printing188
5.3.1 Single Cheque Printing34
5.3.2 Multi Cheque Printing196
5.4 Deposit Slip188
5.4.1 Cheque Deposit Slip200
5.4.2 Cash Deposit Slip203
5.5 Payment Advice209
5.6 Bank Reconciliation212
5.6.1 Manual Bank Reconciliation213
5.6.2 Auto Bank Reconciliation216
Key Takeaways229
Shortcut Keys230
Practice Exercises230
Chapter 6: Generating Financial Statements and MIS Reports
6.1 Introduction234
6.2 Final Accounts Reports in Tally234
6.2.1 Trial Balance234
6.2.2 Profit and Loss Account237
6.2.3 Balance Sheet240
6.2.3.1 View working capital figures from Balance Sheet243
6.2.4 Cash Flow & Fund Flow Analysis Report244
6.2.4.1 Cash Flow Analysis Report244
6.2.4.2 Funds Flow Analysis Report246
6.2.5 Receipts and Payments248
6.3 MIS Reports in Tally250
6.3.1 Stock Summary Analysis250
6.3.1.1 Stock Summary250
6.3.1.1.1 Item-wise Profitability Analysis252
6.3.2 DayBook257
6.3.3 Cash and Bank Book260
6.3.4Purchase Register262
6.3.5Sales Register265
6.3.6Journal Register267
6.4Bird’s eye view/Drill down display from anywhere to anywhere268
Key Takeaways269
Shortcut Keys269
Practice Exercises.270
Chapter 7: Data Security
7.1 Introduction272
7.2 Security Control272
7.3 Activation of Security Control273
7.4 Creation of Security Levels (User Roles)276
7.5 Creation of Users And Passwords for Company283
7.6Accessing the company using Security Levels285
7.6.1 Change User285
7.6.2 Login to the company using the Security Level - Data Entry 1 and check the user roles287
7.6.3 Login to the company using the Security Level - Data Entry 2 and check the user roles290
7.6.4 Login to the company using the Security Level - Accountant and check the user roles293
7.7 Auto Login296
7.8 TallyVault298
Key Takeaways302
Shortcut Keys302
Practice Exercises302
Chapter 8: Company Data Management
8.1 Introduction306
8.2 Backup of Company Data306
8.3Restoring of Company Data312
8.4Company Data Repair315
8.5 Migration of Tally.ERP 9 Company Data to TallyPrime317
Key Takeaways321
Shortcut Keys321
Practice Exercises321
Key Answers for Practice Exercises322
Tally Prime Essential Level 2
Table of Contents
Chapter 1: Storage and Classification of Inventory
Table of Contents
1.1 Introduction2
1.2 Supply Chain2
1.2.1 Types of Suppliers3
1.3 Inventory Management4
1.3.1 Terms Used in Inventory Management5
1.4 Inventory Masters in TallyPrime6
1.4.1 Company Creation in TallyPrime7
1.4.2 Introduction of Capital into a Business10
1.4.3 Creation of Inventory Masters in TallyPrime13
1.5 Tracking of Movements of Goods in Batches/Lots24
1.5.1 Activation of Batches/Lots for Stock Items25
1.5.1.1 Allocation of Batch/Lot Details in Purchase Invoice28
1.5.1.2 Selling of Stock Items Batch/Lot37
1.5.1.3 Identifying of Expired Batch in Sales Invoice42
1.5.1.4Returning of Expired Batch Stock Items46
1.5.2Batch Reports51
1.5.2.1Batch Voucher Report51
1.5.2.2Batch Summary Report53
1.6Price Levels and Price Lists53
1.6.1Activating Price Lists and Defining of Price Levels54
1.6.2Creation of Price List56
1.6.3Price Level & Price List usage in Sales Voucher63
1.6.4Revise Price List69
Key Takeaways76
Shortcut Keys77
Practice Exercises77
Chapter 2: Accounts Receivable and Payable Management
Table of Contents
2.1 Introduction80
2.2 Accounts Payable and Receivable80
2.3 Maintain Bill-wise Entry83
2.4 Activation of Bill-wise Entry48
2.4.1 Usage of Bill-wise entry in Purchase and Payment Voucher84
2.4.2 Usage of Bill-wise entry in Sales and Receipt Voucher96
2.4.3Usage of Bill-wise entry in Payment and Receipt Voucher104
2.4.4Usage of Bill-wise entry - On Account.115
2.5Specifying of Credit Limit for Parties119
2.5.1Specifying Credit Limit for Individual Ledger120
2.5.2Specifying Credit Limit for Multiple Ledger122
2.5.33 Sales Voucher Restriction Based on Credit Limit124
2.6Splitting of Credit Sale Into Multiple Bills126
2.7Payment Performance of Debtors129
2.8Bills Payable and Receivable Reports in TallyPrime131
2.8.1Bills Receivable132
2.8.2Ageing Analysis of Outstanding134
2.8.3Generating Reminder Letter in TallyPrime135
2.8.4Generating Confirmation of Accounts in TallyPrime.139
2.8.5Bills Settlement141
2.8.6Bills Payables145
Key Takeaways148
Shortcut Keys149
Practice Exercises149
Chapter 3: Purchase and Sales Order Management
Table of Contents
3.1 Introduction152
3.2 Purchase Order Processing152
3.2.1 Recording of Purchase Order154
3.2.2 Recording of Receipt Note Vouche161
3.2.3 Recording Rejections Out Voucher166
3.2.4 Recording Purchase Voucher168
3.2.5 Recording Debit Note Voucher171
3.2.6 Recording Payment Voucher174
3.3 Sales Order Processing175
3.3.1 Recording of Sales Order In TallyPrime177
3.3.1.1 Printing of Quotation181
3.3.2 Recording Delivery Note Voucher183
3.3.3 Recording Rejections In Voucher187
3.3.4 Recording of Sales Voucher189
3.3.5 Recording Receipt Voucher191
3.4 Order Outstandings193
3.4.1 Sales Order Outstanding193
3.4.2 Purchase Order Outstanding195
3.4.3 Pre-Closure of Orders196
3.5 Reorder Level198
3.5.1 Display Reorder Status202
3.6 Godown Transfer in TallyPrime204
Key Takeaways210
Shortcut Keys211
Practice Exercises211
Chapter 4: Tracking Additional Costs of Purchase
Table of Contents
4.1 Introduction214
4.2 Configuration of Additional Cost of Purchases in TallyPrime214
4.2.1 Purchase Transaction with Additional Cost Details in Voucher Mode215
4.2.2 Purchase Transaction with Additional Cost Details in Item Invoice Mod220
4.2.3 Debit Note Voucher with Additional Cost224
Key Takeaways230
Shortcut Keys231
Practice Exercises231
Chapter 5: Cost/Profit Centres Management
Table of Contents
5.1 Introduction234
5.2 Cost Centre and Cost Categories234
5.2.1 Activation of Cost Centre235
5.2.2 Allocation of Expenses and Incomes using Cost Centre238
5.2.3Cost Centre Classes (Automatic Allocation)244
5.2.4Allocation of Expenses to Multiple Cost Centres and Cost Categories250
5.2.4.1Creation of Cost Category250
5.2.4.2Recording of Transaction and Allocation of Expenses253
5.3Cost Centre Reports256
5.3.1Category Summary257
5.3.2Cost Centre Break-up258
5.3.3Ledger Break-up258
5.3.4Group Break-up259
Key Takeaways262
Shortcut Keys262
Practice Exercises262
Chapter 6: Budgets and Scenarios
Table of Contents
6.1 Introduction266
6.2 Creation of Budget268
6.3 Recording Transactions273
6.4 Display Budgets and Variances Reports for Group Budget278
6.5 Scenario Management280
6.5.1 Creation of Scenario281
6.5.2 Temporary Inclusion of Reversing Journal Voucher In the Reports285
Key Takeaways290
Shortcut Keys291
Practice Exercises.291
Chapter 7: Generating & Printing Reports
Table of Contents
7.1 Introduction294
7.2 On the Fly Reporting294
7.2.1 Bird's eye View/Drill Down Display297
7.2.2Drill Down Display301
7.2.3Date/Period Based Reporting & Comparing304
7.3Inventory Reports309
7.3.1Stock Summary309
7.3.2Godown-wise Stock Availability315
7.3.3Movement Analysis315
7.3.4Stock Query316
7.4Financial Reports319
7.4.1Balance Sheet319
7.4.2Profit & Loss A/c321
7.5Books & Registers321
7.5.1Sales Register322
7.5.2Purchase Register325
7.6Printing of Invoice and Report326
Key Takeaways330
Shortcut Keys331
Practice Exercises332
Tally Prime Essential Level 3
Table of Contents
Chapter 1: Goods and Services Tax (GST)
Table of Contents
1.1 Introduction to GST2
1.1.1 Why GST?2
1.1.2GST Tax Structure2
1.1.3Determination of Tax3
1.1.4GST Registration3
1.1.5Managing HSN CODE/SAC6
1.1.6GST Rate Structure6
1.1.7Supply of Goods and Services7
1.1.7.1Place of Supply7
1.1.7.2Time of Supply8
1.1.7.3Value of Supply8
1.1.8Invoicing8
1.1.8.1Tax Invoice9
1.1.8.2Bill of Supply9
1.1.9Debit Note, Credit Note/Supplementary Invoice10
1.1.10Receipt Voucher11
1.1.11Transportation of Goods without Issue of an Invoice12
1.1.12Input Tax Credit13
1.2E-Way Bill13
1.2.1Components of E-Way Bill15
1.2.2Who must generate E-Way Bill15
1.2.3Validity of E-Way Bill15
1.2.4E-Way Bill Process Flow15
1.3GST e-Invoicing16
1.3.1Benefits of e-invoice to the businesses17
1.3.2Date of implementing GST e-invoicing17
1.3.3Entities exempted for e-invoices17
1.3.4Generating E-Way bill with e-Invoice18
1.3.5Modification of e-Invoice18
1.3.6Role of e-Invoice in GST Returns18
1.3.7Various modes of generating e-invoice18
1.3.8Role of IRP in e-Invoice18
1.3.9The practice of Generating GST e-Invoice19
1.3.10E-invoice Details20
1.3.11Invoice Reference Number (IRN)20
1.4GST in TallyPrime21
1.4.1Creation of Company and Activating GST21
1.4.2Introducing Capital into the Business27
1.4.3Creation of Masters in TallyPrime29
1.4.3.1Creation of Accounting Masters29
1.4.3.2Creation of Inventory Masters34
1.4.3.3Displaying Chart of Accounts36
1.5Hierarchy of Calculating Tax in Transactions36
1.5.1 Defining GST Rates at Company Level37
1.5.2 Defining GST Rates at Stock Group Level37
1.5.3 Defining GST Rates at Stock Item Level40
1.5.4Defining GST Rates at Accounting Group Level41
1.5.5Defining GST Rates at Ledger Level42
1.5.6Defining GST Rates at Transaction Level44
1.6Recording GST compliant transactions45
1.6.1Accounting Intrastate Supply of Goods & Services46
1.6.1.1Intrastate Inward Supply of Goods46
1.6.1.2Intrastate Outward Supply of Goods51
1.6.1.3Intrastate Inward Supply of Services62
1.6.1.4Intrastate Outward Supply of Services64
1.6.2Accounting Interstate Supply of Goods & Services67
1.6.2.1Interstate Inward Supply of Goods67
1.6.2.2Interstate Outward Supply of Goods70
1.6.2.3Interstate Outward Supply of Services73
1.6.3Accounting Purchase and Sales Returns of Goods with GST75
1.6.3.1Purchase Returns of Goods75
1.6.3.2Sales Returns of Goods78
1.6.4Supplies Inclusive of Tax80
1.7E-Way Bill Report in Tally86
1.7.1Export for e-Way Bill Report86
1.7.2Update e-Way Bill Information89
1.8Input Tax Credit Set Off against Liability90
1.9GST Tax Payment94
1.9.1Timeline for payment of GST tax94
1.9.2Modes of Payment94
1.9.3Challan Reconciliation97
1.10Generating GST Returns for Regular Dealer in Tally98
1.10.1 GSTR-198
1.10.2 GSTR-3B100
1.10.3 GSTR-9 – GST Annual Computation102
1.11 Filing GST Returns in Tally104
1.11.1 Filing GSTR-1 Returns104
1.11.1.1 Generating the JSON file from Tally and uploading the same in the GST portal105
1.11.3 Filing GSTR-9 Returns - GST Annual Computation106
1.12 Generating e-Invoice in TallyPrime106
1.12.1 Recording Outward Supply and Generating e-Invoice without e-Way Bill107
1.12.2 Recording Outward Supply and Generating e-Invoice with e-Way Bill115
1.12.3 E-Invoice Report123
1.12.3.1 Export Bulk Invoices using Online Method123
1.12.3.2 Export Bulk Invoices using Offline Method125
1.12.3.3 Update Details in TallyPrime and Print QR Code125
1.13 Quarterly Return Monthly Payment Scheme132
1.13.1 Creation of Company and Activating GST in TallyPrime125
1.13.1.1 Company Creation and Introducing Capital in the Business133
1.13.1.2 Creation of Accounting Masters136
1.13.1.3 Creation of Inventory Masters138
1.13.2 Accounting Intrastate Supply of Goods & Services139
1.13.2.1 Intrastate Inward Supply of Goods139
1.13.2.2Intrastate Outward Supply of Goods142
1.13.3Input Tax Credit Set Off against Liability and Tax Payment150
1.13.3Input Tax Credit Set Off against Liability and Tax Payment150
1.13.4 Invoice Furnishing Facility(IFF) in QRMP scheme152
1.13.4.1Exporting Section-Wise JSON Files from TallyPrime for IFF153
1.13.4.2Uploading B2B Invoices for IFF in GST Portal156
1.13.4.3Filing Quarterly Return -GSTR-1157
1.14Composition Dealer under GST Regime160
1.14.1Introduction160
1.14.2Conditions to be satisfied under the scheme160
1.14.3Creation of Company and Activating GST in TallyPrime161
1.14.3.1Company Creation and Introducing Capital in the Business161
1.14.3.2Creation of Accounting Masters163
1.14.3.3Creation of Inventory Masters166
1.14.4Accounting Intrastate and Interstate Supply of Goods167
1.14.4.1Intrastate Inward Supply of Goods167
1.14.4.2Interstate Inward Supply of Goods169
1.14.4.3Intrastate Outward Supply of Goods170
1.14.5 Generating GST Returns for Composition Dealer in Tally173
1.14.5.1GSTR-4173
1.14.5.2GST CMP-08174
1.14.6GST Tax Payment175
Conclusion181
Key Takeaways181
Shortcut Keys182
Practice Exercises183
Chapter 2: Tax Deducted at Source (TDS)
Table of Contents
2.1 Introduction to TDS186
2.2 Basic Concepts of TDS186
2.3 TDS Process189
2.4 TDS in TallyPrime194
2.4.1 Activation of TDS in TallyPrime195
2.5 TDS Statutory Masters197
2.6 Configuration of TDS at Different levels199
2.6.1 Configuration of TDS at Group level199
2.6.2Configuration of TDS at Ledger level211
2.7Recording TDS Compliant Transactions in TallyPrime219
2.7.1Expenses Partly Subject to TDS219
2.7.2Booking Expenses and TDS deduction on crossing Exemption Limit228
2.7.3Accounting Multiple Expenses and Deducting TDS later237
2.7.4TDS on Expenses at Lower and Zero Rate243
2.7.4.1TDS on Expenses at Lower Rate243
2.7.4.2TDS on Expenses at Zero Rate250
2.7.5TDS on Expenses at Higher Rate254
2.7.6Recording Transaction when TDS Exemption limit is not crossed260
2.8TDS Exceptions265
2.9TDS Payment to Department266
2.9.1Resolving Uncertain Transactions267
2.9.2TDS Outstanding267
2.9.3Payment of Tax to the Income Tax Department269
2.9.4Generating TDS Challan (ITNS 281)272
2.9.5Interest Payment to Income Tax Department on Delayed Tax Payment276
2.10TDS Report280
2.10.1Challan Reconciliation281
2.10.2Form 26Q286
2.10.2.1Total Voucher287
2.10.2.2Payment Details290
2.10.3E-Return291
2.10.3.1Form 26Q291
2.10.3.2TRACES Portal296
2.11Changes in TDS rates from 1st April 2021296
Conclusion297
Key Takeaways297
Key Takeaways298
Practice Exercises298
Chapter 3: Management of Business Data
Table of Contents
3.1 Introduction302
3.2Exporting of data in available formats302
3.3 Export and Import of Data303
3.3.1 Export and Import of Masters from one company to another in XML format304
3.3.2 Export and Import of Transactions from one company to another in XML format314
3.3.3Exporting Reports to MS Excel315
3.3.4Exporting Reports to PDF317
3.4Open Database Connectivity (ODBC)319
3.5Printing of Company Logo on Vouchers, Invoices & Reports325
Conclusion331
Shortcut Keys331
Key Takeaways332
Practice Exercises332
Chapter 4: Moving to the Next Financial Year
Table of Contents
4.1 Introduction334
4.2 Changing Current Period and continuing voucher entry in the same company data334
4.3 Company data handling through Export and Import of data336
4.4 Split Company Data342
4.5 Create a new company and maintain books of accounts for the new financial year346
4.6 Creating Group Company Data346
4.7 Comparative Final Accounts Reports of Two Companies351
Conclusion354
Shortcut Keys354
Key Takeaways354
Practice Exercises355
Key Answers for Practice Exercises356
