POWER OF SIMPLICITY

Processing Transactions in Tally

D One Bank account to another Bank

Processing Transactions in Tally POWER OF SIMPLICITY
account.
Go to Gateway of Tally >Accounting Vouchers > F4: Contra to display the Contra Voucher.

5.1Ledgers and Groups 5.2.2 Payment Voucher

All financial entries are made using ledger account heads. Every Payment transactions are accounted using Tally's Payment Voucher.
transaction/ voucher can be
related to a ledger account head to which it belongs. Ledgers which have transactions of the
same nature are classified under one Group.
Go to Gateway of Tally >Accounting Vouchers >F5: Payment to display the Payment
Voucher.
AGroup is a collection of ledgers which have similar
transactions. For example, all ledger accOunt
heads relating to the fixed assets of a company are grouped 5.2.3 Receipt Voucher
under Fixed Assets primary group in
Tally. Using this classification, you can generate reports which are meaningful and compliant with
statutory requirements. Iransactions involving receipt of money are entered in the Receipt Voucher.
Tally offers flexibility in relation to building a chart of accounts. Ledger Go to Gateway of Tally> Accounting Vouchers >F6: Receipt to display the Receipt Voucher.
together to create multiple ledger accounts. Asingle ledger account can alsoaccounts can be grouped
5.2.4 Sales Invoice
statements reflect the classifications which have been made while creating thebechart
created. Reports and
of accOunts.
At the highest level, accounts are classified into capital and revenue
accounts, and then, speciti When goods/ services are sold, a voucher, which the customer (debtor) can use as proof of
cally, into assets, liabilities, income and expenditure. purchase, needs to be created. This doCument is called an "invoice." Tally has the facility to
Based on mercantile accounting principles, Tally provides a set of 28 pre-defined groups generate invoices according to the business requirement.
which ledgers can be classified. under Go to Gateway of Tally >Accounting Vouchers > F8: Sales to display the Sales Invoice.
Primary Groups - 15.
5.2.5 Purchase Invoice
Sub-Groups- 13.
Out of the 15 pre-defined Primary Groups, Purchase Invoice is a bill issued by the supplier for the purchases made by the customer. Tally
Nine primary groups, which are capital in nature, display in the Balance Sheet. has the facility to generate purchase invoices.
Six primary groups, which are revenue in nature, display in the Profit and Loss Account. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases to display the Purchase
Invoice.
The use of this is covered in detail in volume 2.
All the 13 sub-groups are classified under the nine primary groups that are capital in nature and
they appear in the Balance Sheet.
Tally has pre-defined ledgers for Cash (under Cash-in-hand group) and Profit and Loss account 5.3 Recording Transactions of Sample Data
(under Primary group).
The following example shows you how to record transactions in Tally.
Ms. Nandini Kapur, an MBA from Bangalore, worked in software and financial service organisa
5.2 Accounting Vouchers tions for 15 years. She then started her own enterprise called Universal Business Solutions on
Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a April 1,2005, to provide management consultancy services.
specific function. The standard vouchers are Ms. Kapur wants to maintain her accounts using Tally 9. She maintains the books of account
Contra Voucher under the accrual system of accounting.
The transactions recorded for Universal Business Solutions are as follows.
Payment Voucher
Note 1: Business transactions often involve a number of legal, tax and regulatory aspects. For
Receipt Voucher example, under the Income Tax Act, payments and receipts above specified limits have to be
D Journal Voucher made by cheque. Again, certain payments have to be made after deduction of tax at source. Also,
Sales Invoice there is a service tax liability for certain services. In Volume 1, the emphasis is on learning the fun
Purchase Invoice damental principles of accounting. Therefore, these statutory requirements will not be addressed
in this Volume, even though these are important in practical application. These requirements will
Tally has a set of shortcut keys to help you access vouchers easily. be dealt with, in detail, in the subsequent volumes.
Note: Please refer Appendix ll to view all the function keys used in this Volume. Note 2: For illustrating purpose, data has been shown as being recorded from April 2005.
Note 3: Please refer Appendix I for the list of transactions for Universal Business Solutions (Year 1).
Refer Appendix Il for the entire list of chart of accounts for the same.
5.2.1 Contra Voucher
As per accounting rules,contra entry is a transaction which indicates the transfer of funds from
Cash account to Bank account. 41

O Bank account to Cash account.

40
POWER 0F SIMPLICITY
Processing Transactions in Tally

1. Create ledger Depreciation Expenses (under

Indirect Expenses).
.ne Journal Voucher entry,which illustrates the depreciation expenses, displays as shown.
AccOunting Voucher Greation Universal BUsiness Solutions
NJournal NO. 23 31-Ma-2006
Friday
Particulars Debit Credit
Dr Depreclatlon Expenses
Cr Computer 14401.00
Cr Cell Phone 5,610.00
Cr Furniture 1,154.00
Cr Air Conditloner 2404.00
Cr Electrical Fittings 3,205.00
Cr offico Equipment 1,442.00
586.00

Narration
14401.00 14.401.00

Accept?
Yes or No

Figure 5.37 Depreciation Entries - Jourmal Voucher

5.3.18 Adjustment Entries for Prepaid Expenses

Alladjustment entries are made using a Journal
Voucher.
Nature Payment Period of Sub Amount Prepaid
Date Scription /Insur Prepaid Amount for
Period (c) Amount Current Year
ance (a)
(b)/(a)(c) (b)-(d)=(e)
-(d)
Magazine 06-07-05 01-07-05 to 2,400 01-04-06 to 1.500
subscrip 900
tion 30-06-07 30-06-07
(24 mionthe) (15 months)
iCreate ledger Subscription Expenses
(under Indirect Expenses).
ii. Make an entry of the transaction in a Journal
Voucher.
Debit: Subscription Expenses ’ 900.
Credit: Prepaid Journal Subscription ’ 900.
Insurance 01/08/05 01-08-05 to 6,000 01-04-06 2000 4000
31-07-06 to 31-07-06
(12 months) (4 months)

97
 Tally
POWER 0F SIMPLICITY

Processing Transactions in Tally Tolly

POWER OF SIMPLICITIY

When the balances of the company are carried forward, Taly carries
Processing Transactions in Tally

forward the balances of the

asset and liability accounts only. The balances of the income and expenditure
carried forward. account will not be
Create ledger Insurance Expenses (under Indirect
ii. Make an entry of the transaction ina Expenses).
Journal Voucher.
Debit: Insuranc Expenses’ 4,000. Trial Balance until March 2006
Credit: Prepaid Insurance’ 4,000. Trial Balance CUniversal Business Solütiona
Untversal Business Solutions
Other Adjustment Entries Partlculars 1-Apt-20m5 to 31-Mat.2006
Closing Balanca
Debi Credt
SL. NO. NATURE OF ADJUSTMENT Capital Account 495,089,00
1) Provisions for Income Tax (2005-06) have to be made at Rs.17, 500. Nandini Kapur Capkal A/c 495.089 O00
Current Liabilitles
i. Create ledgers Income Tax 49,110.00
(2005-06) (under Indirect Expenses and lncome Tax Provisions 36B10.00
Payables (2005-06) under Provisions). Sundry Credtors
Advanca From Customers
12,500,00

ii. Make an entry of the

transaction in a Journal Voucher. Fixed Assets
Air Condtioner
81,099.00
16, 79% 00
Debit: Income Tax (2005-06) ’ 17,500. Cell Phoe 4,846.00
Credit: Income Tax Payables (2005-06) 17,500. omputer
EctncalFatings
17506 00
2) Closing stock of stationery Consumables on March 31.2006 was Equprnent 11,41400
i. Create ledger Stock Of Stationery
Rs.5000. Current Assots 4,63,100.00

Assets). Consumables March 31, 2006 (under Current Deposits (Asset)

Loans &Adrances (Assat)
28000,00

Sundry Debtors 32 500 00

ii. Make an entry of the Cash-in-nand
transaction in a Journal Voucher. Bank Accounts
3,26700,00

Debit: Stock of Stationery Consumables (March 31, 2006) ’ 5,000. Prepad insurance
Prepard Jourmal Subscrption 50000
Credit: Stationery Expenses 5,000. Stock of Statonery Consumables (March 31, 2006) 5,000 00

3 Direct incomes 5,65,000.00

Transfer balance of withdrawals account to Nandini Kapur's Capital Consuting Revenue 565 000 00
Alc.
i. Make an entry of the transaction in a Indirect Exponses 3,39,A11.00
Journal Voucher. Bank Charqes 330 00
Debit: Nandini Kapur Capital A/c ’ 80,500. Cab Hring Exgenses 17,950 00
Coveyance Expenses 12 450 00
Credit: Withdrawals 80,500. Depreciation Expenses 14401 00
Discount Expenses 2,000.00
Ekectncity Expenses 13,520.00
locome Tax (2005-06) 17,500.00
Closing Entry Insurance Expenses
Miscellaneous Expensos
4,000.00
150 00
0,000.00
SL. NO. TRANSACTION
Offce Aanenanco Expenses
Priescnl Charges 7,500.00
Rent Expenses 30,000.00
1) Transfer of Profit and Loss Account tc Nandini Kapur Capital Al. Rupair ad Mairunance Expenses
Salay Exponses
0. Make an entry of the transaction in a Journal
Voucher. Stationery Expenses
900 0U
Debit: Profit &Loss Ac (predefined ledger) ’ 2,25,589. Subscngton Expenses
Teloohone Expenses 20,810 00
24,650 00
Credit: Nandini Kapur Capital A/c ’ 2,25,589. Tour Expenses
Proft & Loss Alc 225,589 00

Grand Total 11,09,199.00 11,09,199.00

One of the unique features of Tally is that only one closing entry needs to be
the balance of the Profit and Loss Account to the Capital Account. Basedrecorded.
It
transfers Figure 538 Detailed Trial Balance - April 1, 2005 to March 3l, 2006
on the definition of
groups at the time of creation of ledger accounts, Tally internally calculates the profit or loss afer
passing each entry. The Profit and Loss Account demonstrates the financial health of an organi
sation at the end of the year. To know the profit which Universal Business Solutions recorded in
the closing entry, view the Profit and Loss Account after passing all the adjustment entries.
Further information on the Profit and Loss Account is provided in the section on report generatlon.
 POWER OF SIMPLLCITY

Processing Transactions in Tally

Processing Transactions in Tally

POWER OF SIMPLICITY
6.Opening Balance (on 1-Apr-2005): Leave the field blank.
Ledgen.Creation.
Narne Universal Business Solutans
(olas)
Nandinl Kapur Capltal Alc
Total Op., Bal.
5.3.1 Transactions for April 2005
SL. NO. DATE TRANSACTIONS
APRIL 2005
Unde
1) 1-4-2005 Nandini Kapur started Universal Business Solutions by bringing in Capltal Account Maling Details
Neme Nondini Kapur CapltalAC
cash of Rs.3,00,000 Address No, 8,20th Cross,
th Moin, BT Znd Stage.
As per accounting conventions Stala Kamataka
The journal entry for the above transaction is as follows. PN Code 560076
Tax Infornatlon
Cash Dr. Rs.3,00,000. PAN /IT No. BDPS0514
Siles Tax No 08927339
To Nandini Kapur Capital Alc Cr. Rs.3,00,000.
As per Tally conventions
i. Create Ledger ’ Nandini Kapur Capital Alc (under Capital Account)
Go to Gateway of Tally > Accounts Info. > Ledgers > Single Ledger > Create to bring up
the Ledger Creation screen.
1. Name: Nandini Kapur Capital Alc. Accept?
2. (alias): Leave the field blank. Opening Balance ( on 1-Apr-2005)
Yes or No
3. Under Group: Select Capital Account.
4. Mailing Details: Enter the mailing details as given below. Figure 51 Ledger Creation - Nandini Kapur Capital A/c
Name: Nandini Kapur Capital Alc Press Yor Enter to accept.
Address: No. 8, 20th Cross,7th Main, BTM 2nd Stage,Bangalore
State: Karnataka
i. Make an entry of the transaction in a Receipt Voucher.
PIN Code: 560076
Go to Gateway of Tally >Accounting Vouchers > F6: Receipt
5. Tax Information: Enter the Tax information as given below.
1.Press F2 to Change Voucher Date. Type 1.4.2005. (This is done only if the voucher date is
PAN /IT No.. BDPS0514 different from the transaction date.)
Sales Tax No. 08827339 2. Credit Particulars Nandini Kapur Capital Alc -’ 3,00,000.
3. Debit Particulars: Cash (Pre-defined ledger) ’ amount of 3,00,000 displays automati
cally.
4 Narnation: Skip
 POWER OF SIMPLICITY

Processing Transactions in Tally

POWER OF SIMPLICITY
Processing Transactions in Tally
Ledger
Name
creation UUnlversat BúsÍness Solutions
(aias)
Computer
Total Op. BL

Accounting Voucher,Creation Unlversat Business Solutions

NReceiptNO.1 1-Apr-2005
Friday
Particulars Debit Credit Unde
Mallng Detalls
Fixed Assets
C Nandin) Kapur Capital AC 3,00,00D.00 Nome
Dr Cash 3,00,000,00
Address

Stale
PIN Cods
Tax Information
PAN /IT No.
Sales Tax No

Accept?
Opening Balance (on 1-Apr-2005) Yes or No
Narration: 3.00,000,00 3,00,000.00

Accept ? Figure 53 Ledger Creation - Computer

Yes or No
5. Press Y or Enter to accept.
Figure 5.2 Accounting Voucher Creation - Receipt Voucher
5. Press Y or Enter to accept the voucher. i. Make an entry of the transaction in a Payment Voucher.
Go to Galeway of Tally > Accounting Vouchers > F5: Payment to display the Payment
2 2-4-2005 Ms. Kapur paid Rs.22,500 in cash to purchase a computer with Voucher entry screen.
preloaded Tally 9 The computer does not have any disposal value 1. Press F2 to Change Voucher Date. Type 2.4.2005.
at the end of its useful life of four years. All assets are to be 2. Debit Particulars: Computer- 22,500.
depreciated using the Straight Line method.
As per accounting conventions 3.Credit Particulars: Cash- amount of 22,500 displays automatically.
The journal entry for the above transaction is as follows. 4. Narration: Skip
Computer Dr. Rs.22,500.
To Cash Cr. Rs.22,500.
As per Tally conventions
i. Create a ledger Computer (under Fixed Assets)
Go to Gateway of Tally > Accounts Info. > Ledgers > Single Ledger > Create to bring up
the Ledger Creation screen.
1. Name: Computer
2. (alias): Leave it blank.
3. Under Group: Fixed Assets
4. Mailing Details: Leave it blank.
5. Tax Information: Leave it blank.
4. Opening Balance (on 1-Apr-2005): Leave it blank.
5
 FOWLR OF SIMPLICI1Y

Processing Transactions in Tally

POWER OF SIMPLIcITY

Processing Transactions in Tally

Accounting Vouchér/CreationKUniversalBusiness Solutlons
WContra No 1 3-Apr2005
Sunday
Universal Business Solut Partlculars Debi
Accounting Voucher Creation Credit
2-Apr-2005 |Cr Cash
PaymentNo Saturday Dr HDFC Bank 1,00,000.00
1,00,000.00
Deblt Credit
Particulars
22,500.00
Dr Computer 22,500,00
Cast

Narration 1,00,000,00 1,00,000.00

Accept?
Yes or No
Narration 22,500.00 22,500,00

Accept ? Figure 5.5 Accounting Voucher Creation - Contra Voucher

Yes or No
5. Press Y or Enter to accept the voucher.
Figure 5.4 Accounting Voucher Creation - Payment Voucher 4-4-2005
4) Ms. Kapur rented an office space for Rs. 2,500 per month on April
5. Press Yor Enter to accept the voucher. 01,2005. She paid the security deposit of Rs. 25,000 by cheque.
3 3-4-2005 Ms. Kapur opened a bank account with HDFC Bank, Bangalore for As per accounting conventions Paument
the firm by depositing cash of Rs.1,00,000. The journal entry for the above transaction is as follows.
As per acCOunting conventions Security Deposit - Office Dr. Rs.25,000.
The journal entry for the above transaction is as follows To HDFC Bank Ct. Rs.25,000.
HDFC Bank Dr. Rs, 1,00,000. As per Taliy conventions
To Cash Cr. Rs.1,00,000. i. Create Ledger -’ Security Deposit Ofice (under Deposits (Assets).
As per Tally conventions ii. Make an entry of the transaction in a payment voucher
i. Create ledger for HDFC BANK (under Bank Accounts). Debit: Security Deposit- Ofice 25,000.
Credit: HDFC Bank 25,000
. Make an entry of the transaction in a Contra Voucher.
5 5-4-2005 Ms. Kapur hired Maya Nair as Manager (Operations) on a monthly
Go to Gateway of Tally >Accounting Vouchers >F4: Contra to display Contra Voucher salary of Rs.7,500. She also hired Vijay Narayan as Assistant Man
entry screen.
1. Press F2 to Change Voucher Date. Type 3.4.2005. ager (Marketing) on a monthly salary of Rs.4,500.
2. Credit Particulars: Cash ’ 1,00,000. 6) 10-4-2005 Ms. Kapur made an arrangement with Rai Travels to receive bills,
for travel expenses, at reqular intervals.
3. Debit Particulars. HDFC Bank amount of 1,00,000 displays automatically. transactions.
4. Narration: Skip Note: No entry is required for transactions 5 and 6 as they are not accounting
 Tally
POWER OF SIMPLICITY Processing Transacions in Taly
Processing Transactions in Tally
Multi Ledger Greation:
following fixed Unger Group
cheques and purchased the
Universal Business'Solutions
Elyed Assets
7) 15-4-2005 Ms. Kapur issued Name of Ledger 1-Apr-2005 to 4-Apr-200os
assets. life: 5 years).
use for Rs.6,000 (useful cell Phone Unde

1. A cell phone for office years).

(useful life: 8 Are Fed Assets
2. Furniture for Rs.20,000
loner Foed Assets
1.ElectrleaiFIttlngs
Ele
Rs.20,000 (useful life: 6 years). Fked Assets

3. An air conditioner for

Fed Assets

Rs.15,000 (useful life: 10 years).

4. Electrical fittings for any disposalvalue at the
end of tha:.
have
The above assets do not
useful life.
lau
met
As per accounting conventions
transaction is as follows.
The journal entry for the above
Dr Rs. 6,000
Cell Phone
D Rs. 20,000
Furniture
D Rs. 20,000
Air Conditioner Accept?

Electrical Fittings Dr Rs. 15,000 Yas ar No

C Rs. 61,000 Figure 5.6 Multi Ledger Creation -Fixed Assets

To HDFC Bank
4. Press Y or Enter to
accept the screen.
As per Tally conventions In the Multi-Ledger Creation screern, the
Conditioner and Electrical Fittings (under column Under Group automatically displays as
i. Create ledgers - Cell Phone, Furniture, Air Fixed Assets.
Fixed Assets)
> Multiple Ledgers > Create to bring
i0. Make an entry of the
transaction in a
Go to Gateway of Tally > Accounts Info. > Ledgers
payment voucher.
Use Taly to make multiple entries in one
up the Multi-Ledger Creation screen. voucher.
Acountii Efer-dhztun
1. Select Fixed Assets in the field Under Group. FymentNO 3
details as shown. 16-Apr-2005
2. Type the ledger names and fill in the ledger Friaay
Partlculars
Under Group Opening Balance Dr/Cr Debit Credit
SI. No. Name of Ledger Dr Cell Phone
6,000.00
20,000.00
1 Cell Phone Fixed Assets ner
20,000.00
Dr Electical Fitings 15,000.00
Cr HDFC Bank
2 Furniture Fixed Assets 61.000,00

Air Conditioner Fixed Assets

Electrical Fittings Fixed Assets

3. Press Enter twice.

Narration 61,000.00 61,000.00

Ch No
Accept?
Yes oc N

Fgure 5.7 Accounung \oche Creation -Payment Voucher (riuliple entries)

 Tolly
POWER or sIMPLiCITY

Processing Transactions in Tally

POWER OF SIMPLICITY

As per Tally
Processing Transactions in Tally i. Create ledgers ’
conventions
Stationery Expenses (under Indirect Expenses) and
(under Sundry Creditors).
subscription from Plane Global House
mobile phonedeposit of f I. Make an entry of the
Kapur obtained a Rs.3,000 in cash.
Go to Gateway of Tallytransaction
8 16-4-2005 Ms.
Telecommunications Ltd., by
paying a in a Journal Voucher.
> Accounting
Voucher Vouchers > F7: Journal displays the Journal
As per accounting conventions Saument
is as follows. 1. Press F2 to Change
the above transaction 2. Debit Stationery Voucher Date. Type 20.4.2005
The journalentry for
Security Deposit - Phone Dr. Rs.3,000.
3. Credit: Expenses 12,500
Global House amount of 12,500
To Cash Cr. Rs.3,000. 4. Narration: Skip displays automatically.
As per Taly conventions Deposit - Phone (under Deposits
(Assets))
Security
i. Create ledger Accounting Voucher screen
also. Ifftthe ledger which you are
Accounting Vauthercreitian
fromthe at tne Particulars column to bring up
Ledgers can be created ledgers, press Alt+C ledger creation with the RVJournlNo
Yersil BUslness solutions
in the list of
looking for is not listed(Secondary) necessary
screen. Complete the 20Apr-2005
the Ledger Creation ledger. Particulars
Wedhestay

details and accept the Universal Business Soutons SdctrMK Dr Stationery Expenses Debit Credit
Cr Glob31 House
Ledger Creatibh Secondary) 12.500 00
Name Security Depost - Phone 12,500.00
(elilas)
Maling Dotalls
Narnt
Denosits (Asset)
linder
(Cument Assets) Address

State
PiN Codt
Taxinformation
PAN/IT Ne
seies Tax No
Stie

12,500.00 12,500.00

Accept?
Yes o No

Figure 5.9 Accounting Voucher Creation- Joumal Voucher

Accept ? 5. Press Y or Enter to
accept the voucher
Yes or No
10) 21-4-2005 Ms. Kapur signed a contract with Silver Services to provide
poC Consultancy services at an agreed price of Rs. 75000. She received
- Security Deposit-Phone an advance of Rs. 25 000 by cheque
Figure 58 Ledger Creation (Secondary)
Note: Ms. Kapur wants all advances from customers to be grouped separately.
transaction in a Payment Voucher Hence, create
ii. Make an entry of the a sub-group, Advance From Customers. under the Dredefined primary group, Current
Debit: Security Deposit -Phone 3,000. Liabialities.
Credit: Cash 3,000. from
stationery consumables worth Rs. 12,500
9) 20-4-2005 Ms. Kapur purchased
Global House, on credit.
As per accounting conventions
The journal entry for the above transaction is as follows.
Debit: Stationery Expenses - Rs.12,500. 51

Credit: Global House - Rs.12,500.

 POWER OF SIMPLICITY

Toliy
POWER OF SIMPLICITY
Processing Transactions in Tally
As per Tally
Processing Transactions in Tally conventions
i. Create ledger, Ink and
Paper Publishers under Sundry
ii. Make an entry of the Creditors.
transaction in a Journal Voucher.
Debit: Stationery Expenses 6,000.
As per Tally conventions (under Current Liabilities).
Advance from Customers Create Credit: Ink and Paper Publisher- 6,000.
1.Greate sub-group’ Groups > Single Group >
> Accounts Info. >
GO to Gateway of Tally 13) 27-4-2005 Ms. Kapur withdrew Rs. 7,500 cash for personal use.
1. Name: Advance From Customers. As per Tally conventions
2. (alias): Leave it blank.
i. Create ledger
3. Under Group: Current Liabilties. Withdrawals under Capital Account.
ii.Make an entry of the transaction in a
CtiMX Payment Voucher.
1 Universat
Büsiness Solutions Debit: Withdrawals -7,500.
Group Creation
Advance From Customers Credit: Cash - 7.500
Name
(alas) 14) 30-4-2005 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges
for April 2005.
Current Uablities
Under
Accept ? As per Tally conventions
Yes or No i. Create ledger Office Maintenance
Expenses under Indirect Expenses.
ii. Make an entry of the transaction in a
Payment Voucher.
Debit Office Maintenance Expenses 750.
Credit: Cash ’ 750

Note: In some instances, the balance in the bank

may not match the balance shown by the bank inaccOunt,
as shown in your books of account,
its books of account. This is
cheques deposited may not have been cleared by the bank or cheques íssued notbecause the
presented to the bank. To reconcie your books of account may have beer
with the bank, a
commonly known as the bank reconciliation staternent. The bank statement prepared
is
explained in Volume ll. reconciliation process in Tally is

5.3.2 Trial Balance

fhe trial balance is a statement of al account balances, at a
Figure 5.I0 Group Creation- Advance from Customers the arithmetic accuracy of the entrie5 specified date. It is prepared to check
4. PressY or Enter to accept.
the data correctly. In Taily, the trial balance renort provides a list of the
Before yOu accept the screen, ensure that you have entered balances of all
sorted according to groups. The trial balance displays in Grouped form accounts of the company.
Advance Consulting Revenue (under Advance From Customers). with main groups and their
i. Create ledger - Ciosing balances.
ii. Make an entry of the transaction in aReceipt Voucher. Go to Gateway of Taliy > Display > Trial Balance
Credit: Advance Consulting Revenue 25,000.
Debit: HDFCBank - 25,000.
11) 23-4-2005 Ms. Kapur deposited Rs 50,000 cash in HDFCBank.
As per Tally conventions
i. Make an entry of the transaction inaContra Voucher.
Credit: Cash - 50,000
Debit: HDFC Bank 50,000.
12) 25-4-2006 Ms. Kapur received an invoice for Rs.6,000 from Ink and Paper Pub
lishers for printing office stationery.
 SIMPLICITY

POWER OF SIMPLICITY Processing Transactions in Tally

Processing Transactions in Tally Trial Balance for April 2005
Trial BalanceUCK
WUniversal Buslness solutos
Particulars Universal Buslnyss Solutlong
Solu
Geteway of Telly 1-Apr-2005 to 30-A
Clocing Balance
Display Menu Deb
Gapltal Accounl o Credt
9ndiu Kapur Captal NC
WAndtewals 7500 00300.000.00
Tral Balance Current Llablllos 3,00,000 00
Day Book Sundry Creditors 600 00
Advance From Customers 43500.00
Account Books Fixed AsSets 18500 00
Statements of Accounts Air Condtioner 25000 o
CellPhone 83,500,00
Computer 20,000 00
Electrcal
Furniture
Ftings 6000 00
2500 00
Cash/Funds Flow Current Ass9ts 000
Deposits (Asset) 20,00000
LISt of AcCOunts Cash-i-nand
Bank Accounts
EXception Reports
ndlrec Expanses
Oifice MeiNenance Expanses
Quit
Slatroney Expenses 192500
1850000

Grand Total
343500 O0 343500.00
F1gure 5 1 I D1splay Menu -Tnal Balance Figure 5.13 Detailed Tral Balance -
April1, 2005 to Apr1l 30, 2005
1. You can
The Trial Balance displays as shown. drill-down from a group for further details of that
Click F4: Group to view the list of particular group.
lia TalySoludons FALC. 19882005
TallyGold -Multi-UserF1: Detailed Select Fixed Assets and press
groups available in Tally.
iwoy.talysolutjons,com
le: PintEEpor
Toai BaahceUA
ME-Mal 0:Upload
Tolta LSLanguage
LNo.:713030301
H:Help
F2: Period Ernter view the grOup summary of fixed
to
assets.
ECkUniversalBusing8 SatrNGrEOTEERSECSYASR F4. Gtoup
FOEd Asse!
Particulars Universai Business Solutlons 5; Lad-mse Particulars |Universal Buslacss Solutions
1-Apt-2005 1o 30-Apr2005 1-Apr 2005 53-Aor-2005
Closing Balance losing Balanca
Det
Credi F7:Vouchers Crodt
Cabital AtounN
Current Liabillies aS00DO3X0000
VAConerNEA
Call Pho
SS3000 00
Computer
43.500.00 6,000 00
Fixed Assols
83,500.03
Electrical
Furnture
Ftings 22500 00
Curren: Asets 15000 00
|Inditect Expenses 2,33250.00
20,000 0y
19,250.00

C. Now Colunn
A: Alter Coum

Ato Colum

|F8.OthieRan

' Rep
|Grand Total Grand Total
E0: Acc Rep 83,500.60
342,500.00 3,43,500.00 F1: Festues
Figure 5 14 Group Tral Balance -- April 1, 2005 to April 30.
Figure 3.12 Grouped Trial Balance- April 1, 2005 to April 2005
30, 2005
The matching of debitand credit
balances proves the arithmetic accuracy of the
Click F1: Detailed or press Alt+F1 to entries.
drill-down to the next level of the arouped information.
 Processing Transacons in Tally
PONER OF SIMPLUicITY
Processing Transacbions in Taly Click F1: Detailed or press Alt+F1. The
detailed trial balance displays as shown.
Trial Balance
Universal Business Soutions
2 From the Grouped trial balance, click F5: Led-wise to view an alphabetic listing of all ledgers
CHSM

Particulars Unversal Buslos Seludent

and their closing balances. Opening Transelens
UniversalBusiness Solutians Gtri+M X Balanco
Trial Balance Halencs
Unvesal Buslness Solutlons
Capilal Azcount
Patticulars
Closing Balance Nandin Kapur Caplel A/c 14000)005000C0 292500 00
Wthdevas 300 0000 300000 00
Credit 75000 7,500 0 D
Current Llabilittes
Suncry Creditors A60000 43500.00 Cr
2500000 Agvance From Customars 18S0000 1850 00
Ar Contiener 20 000o 500000 25000 00 Ca
Fixed Assats
1.16 250D0 Ar Concitoner 8340000 500,00 or
Cel Phen Cel Phne
20 000 00 20009 60D
22 500 00 8000 00 600000 D
Comoe 22500 00
15 000 DO 22 400, 00 Dr
ca Eectncal Fitinga 15000 00
20000 00 FumBure 16 00000 Dd
Gisbal HouLe 20 000 00 Z0C00.00 D
12 500 00 Current Asuebs
NOFC Bank 89 C00 00 603,000 00 2 00 150 O0 2,3) 250.00 Dr
k and Paper Pubiahas 6000 00
Deposts (ASsat) 28 000 0O 28 003.00 D
Cssh-in-hand 300 000 00 183 750 00 L.18250 00 orl
Nandin KKab CanhalAE 3,00 D00 C0 Bank Acc ounts
Olee Maintenance Expebses 750 00 175 C0000 66 000 00 69 00 00 Dr
indirect Expenses
Secuty Depant - Otce 25 000 0o
Otfice Maintenance Expenaos
19,260 00 19,250,00 Dr
Secuty Depot Phone 3,000.00 75000 76000 DP
Sutioner Expensos 18500 00 Stationary Eypenses 18400 00 18600 00 D
Withaal 750000
Grand Total 613250.00 6,1,250 00

Figure 5.17 Configured Trial Balance April 1,2005 to April 30, 2005

Gaad Total 3,43,500.00

Explore the features of the trial balance using F12: Configure
3,43,500.00

Figure 5I5 Ledger-wise Trhal Balance - Aprl 1, 2005 to April 30, 2005 5.3.3 Backup
3. Youcan configure the display of the Trial Balance to bring up the opening balances, summery Data on a computer is vuinerable, so it is important take regular data backup. With some planning
of transactions and cosing balances for a given period. and foresight, you can ensure that the maintenance of important data is continuous and problem
free.
Go to Gateway of Tally > Display > Trial Balance > F12: Configure
Tally has a flexible back-up mechanism to take a backup of the data to virtually any storage
Confiqure the trial balance configuration settings as shown in Figure 5.16. medium such as floppy diskette, hard disk, zip, tape and so on, installed either locally or on a
network.

Confiquration HOW IS BACKUP TAKEN?

Show Opaning Balances Yes
Shaw transactions 2Yes Start Tally If the company information screen is already open, go to the option
Net transections ony 2| No "Backup" on the menu. Select this to get the option, "Select Companies to Backup."
Show Closing Balances 2|Yes on the sCreen.
|Show Percentages ? No

Appearance of Names Name Only

Scale Factor for Values Defauit
Sorting Method Default

Expsnd all levels in Detaieo Format N

Figure 5.16 Tral Balance Configuration

57
 POWER Or SIMPUCITY

POWER OF SIMPLICITY
Processing Transactions in Tally
Processing Transactions in Tally
Backup Companles on Disk
Select Companles to Backup
Source aITallyData
Gateway of Tally Ctri M Destination CATelvlackun
Rarme of Compary
Cument Pernod Curen Date NiTb
142005 to 313.2006 Saturday, 30 Apr, 2005

List of Selected Cornpanles

Gatewy of Taly
Name of Comoary Date of Last Eny AWAN Coupany Info. lAS
Unlversal Business Solutions 30-Apr-2005
Select Company
SHUt Coropary

Create Company
Ctatt Groun Canpanv

Alter

Change Talyvault

SPit Company Data

Backup
Restore

Figure 5.19 Company Backup - Specification of the destination path

The process of backing up data begins when at least
the company, Universal Business Solutions. one company is selected. Select

Figure 5. 18 Company Info Backup

Backup Companies on Disk
From Gateway of Tally, press AlttF3 to get to the option, Backup. Select Companies to Backup

On the Backup screen, the source of the backup and the destination of storage must be Source CTallyData

mentioned. To change either the source or the destination paths, use the backspace key DastinationCITallyBackup
Nams of Comosny Nurbe
and change the paths as required. For example: To backup the data to a directory Tally
backup in the CDrive, change the destination path to C:\Tallylbackup as shown.

444-444BP

Figure 520 Company Backup- Selection of Company

50

58
 POWER 0F SIMPLICITY

Processing Transactions in Tally

POWER OF SIMPLICITY

Processing Transactions in Tally 5.3.4 Transactions for May 2005

SL. NO. DATE
at the top of TRANSACTIONS
the option 'End of List' which displaysbeen selected
lo stop selecting companies, select
active only when at least one company has MAY 2005
the selection list. This option is
15) 1-5-2005 Ms. Kapur paid Rs.6.000 in cash to Ink and Paper
Publishers.
for backup.
1. Make an entry of the transaction in a Payment
Voucher.
Debit: Ink and Paper Publishers ’ 6,000.
Backup Companies on Disk
Select Companles to Backup Credit: Cash ’ 6,000.
Source CATallyData 16) 5-5-2005 Ms. Kapur paid Rs.2,500 by cheque towards office rent for April
Destinatian CTallyBackup 2005.
Name of Compan Nomber

Unlversal Buslnees Solutlons (1DO00)

Create ledger Rent Expenses (under Indirect Expenses).
End of List
. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses- 2,500.
Credit: HDFC Bank- 2,500
17 6-5-2005 Ms. Kapur paid salaries through cheque for April 2005 (25 days) to
1. Maya Nair - Rs.6,500.
2. Vijay Narayan Rs.3,900.
Accept? Create ledger Salary Expenses (under Indirect Expenses).
Yes or No . Make an entry of the transaction in aPayment Voucher.
Debit: Salary Expenses- 10.400
Credit HDFC Bank- 10400
18) 7-5-2005
Ms. Kapur' received and paid her mobile phone bill amounting to
Rs.1.250 in cash for April 2005.
.Create ledger Telephone Expenses (under Indirect Expenses)
Figure 5.21 Compat Backup screcn Copleted
i Make an entry of the transacion in a Payment Voucher
The backup file is stored as TBK900.001. Drot Telephone Expenses- 1.250.
Credit Cash- 1.250.
BACKUP ADMINISTRATION 19) 10-5-2005 Ms Kapur issued a cheque of Rs.12,500 to Global House.
An appropriate backup mechanism needs to be devised depending on the volume of data. One of Make an entry of the transaclion in a Payment Voucher.
the methods to do this is to maintain a backup directory in the iocal hard disk or server (an Debit: Global House -12.500
external storage medium such as floppy disk or zip diskette can also be used). Sub-directories Credit: hDFC Bank - 12.500
can be maintained for each day of the week, under the main backup directory, and regular data
backup, depending on the day of the week, can be createdin the following manner. 20 12-5-2005 Ms. Kanur paid Rs 1,100 in cash towards electricity charges íor April
2005.
Monday - CATallyBackuplMonday. Create ledger Electricity Expensos (under Indirect Expenses).
Tuesday -C:ATallyBackuplTuesday. Make an entry of the transaction in a Payment Voucher.
Wednesday - CATallyBackuplWednesday Debit Electricity Exoensos - 1,100
Credit: Cash - 1,100
Note: Tally backup facility is NOT limited to the hard disk drive 21 14-5-2005 Ms. Kapurreceiveda further advance of Rs. 25,000from Silver Serv
ices by cheque (Refer transaction 10.)
 Tolly
POWER OF SIMPLICITY
Processing Transactions In Taly

POWER OF SIMPLICITY
Trial Balance until May 2005
Trial BátanceW Unlyersal Business Splutio
Processing Transactions in Tally Universal Businees Solutlons

Partlculars iosing palait

Debit Credt

transaction in a Receipt Voucher.

1. Make an entry of the 25,000. 350000300.000 00
Credit: Advance Consulting Revenue’ Cupilal Account
Nandinn Kepur Cepilat Ac 13600.00
300,000.00
Debit: HDFC Bank 25,000. amounting to Rs.650 in cash Wahdrewals
reimbursed conveyance bills
22 15-5-2005 Ms. Kapur Current Llabllities

to Vijay Narayan. Sundry Credtors

Advance From Custormers
83,500.00
Expenses (under Indirect Expenses). 20,0
i. Create ledger Conveyance
Fixed Assets
Air Condtoner
aPayment Voucher.
an entry of the transaction in
Cell Phone
15000, 00
i. Make Computer 20,000, 00
Debit: Conveyance Expenses ’ 650.
Electncal Fatings
Furnkure 2,51,700.00
Credit: Cash ’ 650. office Current Assets
cash towards miscellaneous Deposits (Assel) A1,1

23) 18-5-2005 Ms. Kapur paid Rs.150 in Cash-in-hand

8E000
expenses. Bank Accounts 90,000.00
90,000.00
(under Indirect Expenses). Direct Incomes
Create ledger Miscellaneous Expenses ConsuRing Revenue 35,300.00
6000
in a Payment Voucher. Indirect Expelises
ii. Make an entry of the transaction Coveyance Expenses 1100 00
150 00

Debit: Miscellaneous Expenses ’ 150. Electiciynenses

ino Mzintenance Expenses
760 00
2500 00
Credit: Cash ’ 150 Rant Exoenses 10 400 00
consulting revenue in cash from 18,500. 00
20-5-2005 Ms. Kapur received Rs.15,000 aS
Selay Expenses
1250 00
24) Stalionery Expenses
Omega Infotech. Telephone Expenses
3,90,000.00 3,90,000.00
Incomes).
i. Create ledger Consulting Revenue (under Direct Grand Total
Receipt Voucher.
ii. Make an entry of the transaction in a Figure 5.22 Detailed Trial Balance -
April 1, 2005 to May 31. 2005
Credit: Consulting Revenue ’ 15,000.
Debit Particulars: Cash ’ 15,000.
Services after
25) 25-5-2005 Ms. Kapur raised an invoice for Rs.75,000 on Silver amount
Completion of the service. Silver Sorvices paid the balance
of Rs.25,000 in cash efter deducting the advance. (Refer ransac
tions 10 and 21.)
i. Make an entry of the transaction in a Receipt Voucher.
Credit: Consulting Revenue - 75,000.
Debit: Cash ’ 25,000.
Debit: Advance Consulting Revenue ’ 50,000.
26) 28-5-2005 Ms. Kapur withdrew Rs.6,000 cash for personal use.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Withdrawals - 6,000.
Credit: Cash - 6,000.
 Tolly
POWER Or SIMPLICITY

POWER O0F SIMPLICITY

Processing Transactions in Tally
Processing Transactions in Tally 34) 20-6-2005 Ms. Kapur paid Rs.1,250 in cash towards electricity bill charges for
May 2005.
5.3.5 Transactions for June 2005 i. Make an entry of the transaction in a Payment Voucher.
TRANSACTIONS Debit: Electricity Expenses ’ 1,250.
SL. NO. DATE Credit: Cash ’ 1,250.
JUNE 2005
cash tovwards office rent for May 2005 35) 21-6-2005 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
27 3-6-2005 Ms. Kapur paid Rs. 2.500 in for May 2005.
the transaction in a Payment Voucher.
Make an entry of i. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses 2,500. Debit: Office Maintenance Expenses ’ 750
Credit: Cash ’ 2,500. 5) Credit: Cash ’ 750
4-6-2005 Ms. Kapur paid salaries by
cheque for May 2005. (Refer transaction
28) 36) 23-6-2005 Ms. Kapur paid Rs.3,000 in cash as salary advance to Maya Nair.
Payment Voucher.
i. Make an entry of the transaction in a i. Create ledger Salary Advance (under Loans &Advances [asset]).
Debit: Salary Expenses’ 12,000. i. Make an entry of the transaction in a Payment Voucher.
Credit: HDFC Bank ’ 12,000.
Rs.5,500 from Raj Travels, This Debit: Salary Advance 3,000.
29) 5-6-2005 Ms. Kapur received an invoice for Credit: Cash’ 3,000.
includes Rs.2,300 towards cab hiring charges and Rs.3,200 towards
outstation tours. 37) 27-6-2005 Ms. Kapur withdrew Rs.6,000 cash for personal use
Tour Expenses (both under Indirect
i. Create ledgers Cab Hiring Expenses andCreditors). i. Make an entry of the transaction in a Payment Voucher.
Expenses) and Raj Travels (under Sundry Deoit: Withdrawals - 6,000.
Voucher.
i. Make an entry of the transaction in a Journal Credit: Cash 6,000.
Debit: Cab Hiring Expenses ’ 2,300
Debit: Tour Expenses ’ 3,200.
Credit: Raj Travels - 5,500.
from
30) 9-6-2005 Ms. Kapur received Rs.35,000 in cash as consulting revenue
Eateries Food Chain.

iMake an entry of the transaction in a Receipt Voucher.

Credit: Consulting Revenue - 35,000.
Debit: Cash ’ 35,000.
31) 10-6-2005 Ms. Kapur deposited Rs.30,000 in HDFC Bank.
i. Make an entry of the transaction in aContra Voucher
Credit: Cash ’ 30,000
Debit: HDFC Bank 30,000.
32) 15-6-2005 Ms. Kapur paid mobile phone bill amounting to Rs. 1,350 by cheque
for May 2005.
Make an entry of the transaction in a Payment Voucher.
Debit: Telephone Expenses 1,350.
Credit: HDFC Bank 1,350.
33) 16-6-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs.750 in cash
to Vijay Narayan.
i. Make an entry of the transaction ina Paymer Voucher 65
Debit: Conveyance Expenses 750.
Credit: Cash ’ 750,
 POWER 0F SIMPLICITY

POWER OF SIMPLICITY Processing Transactions in Tally

Processing Transactions in Tally 5.3.6 Transactions for July 2005
SL. NO. DATE TRANSACTIONS
Trial Balance until June 2005 J21Ctri +MAX JULY 2005
Un JUniversal Business Solutlons
Trial BalanceN 1-Apr-2005 to 30-Jun-2005 38) 3-7-2005 Ms. Kapur raised an invoice for Rs.65,000 on Alfatech Solutions for
Particulars
Closing Balanco
Credit
services provided.
Debit
i. Create ledger Alfatech Solutions (under Sundry Debtors).
19.500.003,00,000.00 i. Make an entry of the transaction in a Journal Voucher.
3.00.000 00
Capital AccountS
Nandin Kepur Caztal AC
19,500 00 Debit: Alfatech Solutions ’ 65,000.
WRhdrawals 5,500.00
Curront Liabilitlos
5,500,00 Credit: Consulting Revenue ’ 65,000.
Sundry Creditors
Advance From Customers
39 6-7-2005 Ms. Kapur subscribed for the Management Consultant Journal.
83.500.00
Fixed Assets
20.000 00 paying Rs.2,400 by cheque. The subscription period is from July
Ar CondRIOns 6000.00 2005 to June 2007
22,500. 00
15.000, 00 i. Create ledger Prepaid Journal subscription (under Current Assets).
Eiptrical FNtings 20,000.00
Fumlve 8,100.00 ii. Make an entry of the transaction in a Payment Voucher.
Current Assets Debit: Prepaid Journal Subscription ’ 2,400.
Deposits (Asset) 3,000.00
Loans &Advances (Asset) 31 850.00
Cash-in-hand 1,05,250.00
Credit: HDFC Bank + 2,400.
Bank Accounts
1,25,000.00 40) 7-7-2005 Ms. Kapur paid salaries for June 2005 by cheque. Salary advance
Dlrect Incomes
Consuking Revena
1,25,000, 00 paid to Maya Nair is adjusted against the salary paid. (Refer transac
59,400.00
tion 36.)
ndirect Expenses
Ceb Hinng Expenses 2300.00
1,400.00
Conveyance Exoenses
2,350.00
i. Make an entry of the transaction ir a Payment Voucher.
Flectrcitv Expenses
AMiscellaneoUs Expenses
160 00 Debit: Salary Expenses ’ 12,000.
1600 00
Office Maintenance Expenses
Rent Exoenges
5.G00.00 Credit: Salary Advance - 3,009.
22 a00 00
Salary
18500 00
Credit: HDFC Bank ’ 9.000.
Stelionary Epenses
Telephone Erpenses 2,600.00
3,200 00
41) 10-7-2005 Ms. Kapur paid office rent by cheque for June 2005. (Refer transac
Tour Expenses tion 4.)

Grand Total 4,30,500.00 ,500.00 i. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses ’ 2,500.
Figure 5.23 Detailed Trial Balance- April 1, 2005 i0 June 30, 2005
Credit: HDFC Bank’ 2,500.
42) 15-7-2005 Ms. Kanur received Rs.35.000 by cheque from Alfatech Solutions.
i. Make an entry of the transaction in a Reccipt Voucher.
Credit: Alfatech Solutions --’ 35,000.
Debit: HDFC Bank ’ 35,000.
maintenance charges
43) 18-7-2005 Ms. Kapur paid Rs.750 in cash towards office
for Jure 2005.
Voucher.
i. Make an entry of the transaction in a Payrment
Debit: Office Maintenance Expenses 750.
Credit: Cash ’ 750.
 POWER 0r sIMPLIciTY

Irilal Balance until July 2005

Processing Transactions in Tally charges for June Trial 9alance
Univérsai GUsiness Golutlons
towards electricity
Kapur paid Rs.
850 in cash Partlculers Unvorsa busnsss Soluios
44)
19-7-2005Ms. Crslng baancA
2005.
PaymentVoucher. DvAGrodh
the transaction in a
an entry of Cupiial Account
1. Make Expenses 850. for 7600000J0SSOUO
phone bill charges
Nandini Kopur CapitelNC
Debit: Electricity mobile Wihdrwals 300,00800
Credit: Cash ’ 850. Rs.1,650 by cheque as
paid Current Llablitles
26000 00

20-7-2005 JuneMs. Kapur

2005 Sundry Creditors 500.50
45) Voucher. Adyance From Customers
transaction in a Payment Fixod Assats
83,500.00
entry of the Ait Condtioner
1. Make an Expenses 1,650. Cell Phona 20000 O0
Debit: Teiephone to Viiaw Computer 6.00000

Credit: HDFC Bank ’

1,650. of Rs.550 in cash Electrical Ftings 22,60000

Ms. Kapur
reimbursedconveyance bills Funture 15,000 00
46
25-7-2005 Current Assots
20,000 00
Narayan. Voucher. Deposita (Assot) 308300.90
transaction in a Payment Loans &Advances (Asset) 23000 00
Make an entry of the 550.
Sundry Debtors
30000 0
’
Debit: Conveyance Expenses
Cash-in-hand
Bank Accounts
Credit: Cash ’ 550. personal use. Prepaid Journa! Subscriction 124700 00
withdrewRs.6,500 cash for 2.400 00
47 28-7-2005 Ms. Kapur Dlrect lncomos
the transaction in aPayment
Voucher. |CIndlrect
onsukingExpenses
Revenue 190,000.00
1,90,000 00
i. Make an entry of
Cob Hining Expenses T100 90
Debit: Withdrawals - 6,500. Corveyance Exponses 230000
Credit: Cash ’ 6.500. Electricity Exponse 1,06000
Miscellaneous Expenses 3.200 00
Office Maintenance Exper1ses 160 00
Ront Expensas 2,250 00
Salary Expenses 7500 00
Stationery Expensea 34,40000
Telephona Expenses 18,500,00
Tour Expanses 4,250.00
3,200.00
Grand Total
495500.00 495500.00
Figure 5.24 Detailed Trial Balance - April 1, 2005 to
July 31,2005

5.3.7 Security Control

Tally allows you to have a username and
thorised users from accessing, viewing andpassword. This security control feature restricts unau
Tally has a highly customisable altering data in Tally.
security system.
Go to Gateway of Tally > F3: Cmp Info > Alter > Select Universal
1. Select Yes in the Use Business Solutions
Security
2. Type Nandini in the Name of
Control field.
3. Type nandinias Administrator field.
Password (Password is case sensitive).
4. Type nandiniin the Repeat field.
5. Set Use Tally Audit CONSOL CREATONS KCADENY &SERVICES
Features? field to No. 2nd Floor, Badshah Building.
6. Press Enter to accept the Opp. Sager Cinema, Raopura,
changes. VADODARA -390 001.
TELEPHONE:6534888.
 5.3.8Transactions for August 2005
Processing Transactions in Tally
SL. NO. DATE
1ChiVM X TRANSACTIONS
AUGUST 2005

Cempany Alteratan
48) 1-8-2005 Ms. Kapur paid by cheque Rs.6,000 for insurance of fixed assets
UhlversaN Business Sclians The period of insurance is from August 1, 2005 to July 31, 2006
Nam Unversal BasiasttS
RocsevtAox
Name i. Create ledger Prepaid Insurance under Current Assets.
Sector
8angaior i. Make an entry of the transaction in a Payment Voucher.
Slalutary comlance f India
Kamataka Debit: Prepaid Insurance ’ 6,000.
Taanhone No
550019
25547770
solitlensfunvarsal.com
Credit: HDFC Bank 6,000.
EMal
Curncy Symbol Accounts only
49) 2-8-2005 Ms. Kapur received Rs.30,000 in cash as consulting revenue from
Maintain
Vesr fom 142005 WorldX Multimedia.
142005
BooksNning
begn frorn
Uae Secumte Contral Yes
i. Make an entry of the transaction in a Receipt Voucher.
Name ofAdminatrator Handinl Repest Credit: Consulting Revenue ’ 30,000.
PsSsWOrd
Oxe Taly Audt Feutuat 2 No
Debit: Cash ’ 30,000.
Base Curieficy Infornation
50) 5-8-2005 Ms. Kapur paid salaries for July 2005 by cheque. (Refer transaction
Amounts in Millions Accept?
Bara Currncy Symbol noepACE heiwean Amount ano 5.)
odian Rupaos in Yes or No
Formal Nama Decumal Places lor Printing Amounts i. Make an entry of the transaction in a Payment Voucher.
Numbpr of Decim plecaAgunte ? No
is SymbelPotion
Symbol tor bu
palso
Control Feature Debit: Salary Expenses ’ 12,000
screen-- Security
Company Alteration
Control fields. Now cto
Credit: HDFC Bank ’ 12,000.
Figure 5.25
modifications implemented in the Securityand PassWord. Enter the 51) 10-5-2005 Ms. Kapur paid office rent for July 2005 by cheque. (Refer
accepting the the user Name anv) fiela
Exit Tally after Login screen to enterand nandini in the Password (if transaction 4.)
open the Company
laly and Administrator the Name of User
field i. Make an entry of the transaction in aPayment Voucher.
in
Name of Debit: Rent Expenses ’ 2,500.
Press Enter to login.
shown. Credit: HDFC Bank ’ 2.500.
screen displays as
The Company Login
CompinyLogin 52) 12-8-2005 Ms. Kapur withdrew Rs.25,000 from HDFC Bank.
i. Make an entry of the transaction in a Contra Vouche.
Credit: HDFC Bank ’ 25,000.
Debit: Cash -- 25,000.
53) 14-8-2005 Ms, Kapur paid Rs.750 in cash towards office maintenance charges
for July 2005.
Solutlons
i. Make an entry of the transaction in a Payment Voucher.
Company: Universal Business
Debit: Office Maintenance Expenses - 750.
Nandin
Name of User
Password ( ary)
Credit: Cash - 750.
54 16-8-2005 Ms. Kapur raised an invoice for Rs.50,000 on MedialLive Produc
tions for services provided. The terms of credit is 30 days.
Create iedger MediaLive Productions (under Sundry Debtors).
i. Make an entry of the transaction in a Journal Voucher.
Debit: MediaLive Producticns ’ 50,000.
Credit: Consuiting Revenue 50,000.

Figure 5.26 Company Login screen 7

case will not allow you to 1ogin to laily.

ne passuword is case sensitive. Any variationn in the
 Tolly
POWER Or SIMPLICIrY
POWER Or sIMPLUCITY

Processing Transactons in Tally

Processing Transactions in Tally electricity charges for July
towards Trial Balance untilAuqust 2005
cash
paid Rs.950in Trial BalanceSGN
Uhiversal Business Solutions
18-8-2005 Ms. Kapur Voucher
55 2005 Payment Particulars Unkversal Business Solityis
1Ag 56 to 3Aus ZIS
transaction in a Codng Balanca
i. Make an entry of the L
Expenses 950. mobile phOne
Debit: Electricity cheque towards Capital AccountE
Credit: Cash ’ 950. Rs.2,100 by landini Kepur Ceptal Ac
Kapur paid2005. Wthdrawals
20-8-2005 Ms. 33,000 00
chargesfor July
Current Llabilitles
56)
Payment Voucher. Sundry Creditors
transaction in a Adrance From Customers 551010
an entry of the Flxed Assets
1. Make Expenses ’2,100. amos Air Condtioner 83509 50
Debit: Telephone a final Cell Phone 20000 00
2.100. the bill for CorElectrical
nputer Ftings 6000 00
Credit: HDFC Bank Productions settled cash and Rs.28,000 by cheque. 22500 00
Medialive Rs.20,000in 16000 00
57
21-8-2005
Rs.48,000 by paying Furriture
|Current Assets 20,000 00
(Refer transaction 54.) Deposits (Asset) 359 200 0g

Expenses (under Indirect Expenses). Loans &Advances (Asset)

Sundry Debtors
i. Create ledger Discount Voucher. Cash-in-hand
transaction in a Receipt Bank Accounts 188300 0g
of the
IL Make an entry Prepaid Insurançe 1351000n
Credit: Medialive Productions 50,000. Prepaid Jourmal Subscngtion 6.000.00
Direct Incomes 240000
Debit: Cash 20,000. Consuting Revenue 270,00050
|Indirect Expenses
Debit: HDFC Bank - 28,000. Cab Hining Expenses 920000
Debit: Discount Expenses 2,000. for personal use.
Conveyance Expenses 231000
withdrew Rs.7,000 cash Discourk Epenses 345000
27-8-2005 M. Kapur Eleciriciy Erpenses 2,000.00
58) Payment Voucher. Aiscellaneous Epenses 4450 00

the transaction in a Office Martenance Epenses 150 00

1. Make an entry of Hert Expenses
ypenses
3000.00

Debit: Withdrawals - 7,000.

10000.00
TatExpenses 48,400.00
Credit: Cash ’ 7.000. Alfatech Soiutione ohiore Expenses 18500 00
Rs.30,C00 by cheque from
Tour Erpenses
Fy
6,350 00
28-8-2005 Ms. Kapurreceived 3200.00
59) Receipt Voucher.
Grand Total
the transaction in a 575500.50 525500 60
1. Make an entry of Figure 5.27 Detailed Trial Balance - April1 2005 to August
Credit: Alfatech Solutions 30,000. 31, 2005
Debit: HDFC Bank 30,000. 1,200 in
conveyance bls amounting to Rs.
60) 29-8-2005 Ms. Kapur reimbursed
cash to Vijay Narayan.
transaction in a Payment Voucher.
1. Make an entry of the
Debit: Conveyance Experses 1,200.
Credit: Cash 1,200.
 Tally Procening Trarscts Tuby
5.3.10 Transactions for October 2005
Processing Transactiona in Tally SL. NO, DATE TRANSACTIONS
TRANSACTIONS OCTOBER 2005
200
for September
5.3.9 Transactions SEPTEMBER2005 maintenance of 72) 3-10-2005 Ms. Kapur received Rs.50,000 by cheque as consuting reverius
SL, NO. DATE for repairs and from Xceed International Couriers.
Rs.3,800 in cash
Kapur paid Expenses). | Make an entry of the transaction in a Recoipt Voucher.
2-9-2005 Ms. premises
office (under Indiroct Credit:Consulting Revenue -’ 50,000.
Maintenance Expenses
61)
Deblt: HDFC Bank 50,000,
ledger Repairand a Payment Voucher.
.Create transaction in 73) 5-10-2005
Ms. Kapur paid office rent for September 2005 by cheque (Reler
of the 3,800.
Make an entry Maintenance Expenses ’ transaction 4.)
Debit: Repair and
As Mava Nl
for August
2005 by cheque. salary. (Refer i. Make an entry of the transaction in a Payment Voucher.
was paid half-month's
Credit: Cash 3,800. salaries
KaDUrpaid
Ms. 15 days, she Debit: Rent Expenses -> 2,500.
62)
5-9-2005 was on leaveefor Credit: HDFC Bank ’ 2,500.
transaction 5.)
Payment Voucher 74) 7-10-2005 Ms. Kapur withdrew Rs.30,000 cash from HDFC Bank.
transaction in a
entry of the i. Make an entry of the transaction in aContra Voucher.
1. Make an 8,250.
Debit: Salary Expenses trans Credit: HDFC Bank ’ 30,000.
Credit: HDFC Bank ’ 8,250. by cheque. (Refer
rent for August 2005 Debit: Cash ’ 30,000.
8-9-2005 Ms. Kapur paid office
63 action 4. 75) 8-10-2005 Ms. Kapur paid salaries for Septernber 2005 by cheque. (Refer
Voucher.
transaction in aPayment transaction 5.)
Make an entry of the Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses 2,500.
Travels. This Debit: Salary Expenses 12,000.
Credit: HDFC Bank ’ 2,500. invoice for Rs.7,600 from Rajand Rs.4 450 Credit: HDFC Bank ’
9-9-2005 Ms, Kapur received an cab hiring charges
12,000
64) includes Rs.3,150 towards 76) 10-10-2005 Ms. Kapur paid Rs.750 in cash towards office
towards outstation tours
for September 2005 maintenance charges
transaction in a Journal Voucher. i. Make an entry of the transaction in a Payment Voucher.
Make an entry of the
Hiring Expenses ’ 3,150. Debit: Office Maintenance Expenses ’ 750.
Debit: Cab Credit: Cash ’ 750
Debit: Tour Expenses ’ 4,450.
Credit: Raj Travels ’ 7,600. 77) 12-10-2005 Ms. Kapur purchased stationery iterms worth
charges
paid Rs.750 in cash towards Ofice maintenance Make an entry of the transaction in a Rs.1,600 in cash
65) 12-9-2005 Ms. Kapur Payment Voucher.
for August 2005. Debit: Stationery Expenses ’ 1,600
in a Payment Voucher. Credit: Cash ’ 1,600
1. Make an entry of the transaction
Debit: Office Maintenance Expenses ’ 750 78) 15-10-2005 Ms. Kapur received Rs.15,000 in cash as
Credit: Cash ’ 750. Samaritan Products consulting revenue from
revenue from
66) 15-9-2005 Ms. Kapur received Rs.25,000 in Cash as consulting Make an entry of the transaction in a Receipt Voucher.
Cam and Cut Productions. Credit: Consulting Revenue ’ 15,000
ake an entry of the transaction in a Receipt Voucher.
Debit: Cash -’ 15,000.
.
Credit: Consulting Revenue -’ 25,000.
Debit: Cash ’ 25,000.
 POWEROF SIMPUCITY

Trial Balance until October 2005

Processing
Transactionsin Taly towards electricity charges for Trial Balanee Universil Business Solutions
cash
Rs.1,700in Unlvenal 6usoe Sellon
Kapur paid Partlculars
Gesing balanca
Ms
18-10-2005 September2005 Voucher
79) Payment
transactionina
ofthe Copltal Accoúnt 38400 00
anentry 1,700. phone hil 40001000
.MakeElectricityExpenses’ mobile Nondini Kepur Capial Nc
cheque towards
38 00 00
Whdrwals
Debit
Credit:Cash 1.700. Rs.2,300 by Current Llablltles 13,100.00
Kapur paid 2005. Sundry Creditors
3,10000
20-10-2005 Ms for September Voucher. Advanco From Customers
1000.00

80) charges Payment 3500,00

Flxad Asses
transactionina Ar Condlioner
20,000.00
600000
of the CollPhone
anentry 2,300.
LMakeTelephone Expenses in cash Computor 16000 0
firm bybringing Electical Fltings 20,000
Debit:
Bank ’ 2,300. furthercapitalinto the Furnture
5,03,000.00
Credit:HDFC Ms. Kapur
introduced Current Assots 2800000
23-10-2005 of Rs.1,00,000.
Deposts (Assel)
Louns &Advances (Aasel)
81) Receipt Voucher. Sundry Uabtors
transactionin a Cash-in-hand
265B0000
entryofthe
20090.00
A/c’ 1,00,000.
Bank Accounis
| iMakean KapurCapital Bank Prupad Insurance
6000 00
2400 00
Credit:Nandini 1,00,000. in HDFC Propaid Journol Subecnplion
’ cash amountingto Rs.75,000 IDiroct lncomes 3,60,0.00
360 000 00
Debit:Cash deposited Consuting Revenue
24-10-2005 Ms. Kapur Contra Voucher. ndlrect Expenses 148,100,00
5450 00
82 transaction in a Cab Hrnrg Expensos 5250 00
entryofthe Corvoyance Expenses
L.Make an Dlscoura Cxpenses 2000 0O
Credit: Cash 75,000. Rs.1.600 in Electnciy Expenses
715000
160 00
bills amounting to
Miscollaneous Expenses
Debit: HDFC Bank 75,00. reimbursed conveyance Oifice Maintenance Expenses 4600 00
15,C00,00
26-10-2005 Ms. Kapur
Rent Expenses
3,800 0C
Narayan. Rspair and Maintenance Expenses
83) cash to Vijay Voucher. Salary Expensas 66 660 0)
20100,0)
in a Payment
Steionery Expenses
the transaction Teleprone Expensos 10 400 2
an entry of
MakeConveyance Expenses 1,600. Tour Expenses T650 00
|i.
Debit: LGrand Total 713, 100.00 3,10020
Consultancy for pro
Credit: Cash ’ 1,600. entered into a cortract with Planet
RS.35,000. An advance of Figure 5.29 Derailed Tial Balance April 1, 2005 to October 31, 2005
28-10-2005 Ms. Kapur at an agreed price of
84 viding services by cheque.
Rs.10,000 was received
Voucher.
the transaction in a Receipt
entry of
| i. Make an Consulting Revenue ’
10,000.
Credit: Advance
10,000.
Debit: HDFCBank ’

79
 poWER 0F SIMPLItiTY
Processing Transacions in Tay
92) 20-11-2005 HDFC Bank intimated Ms. Kapur that the cheque of Trishul Seh
Procassing
Transactionsin Taly ware Soiutions for Rs.27,500 had bounced. Trishul Softvrare Solu
tions was informed of this development and they promised to pay
November2005 TRANSACTIONS the amount in a few days. (Refer transaction 89)
Transactionsfor i.Create ledger Trishul Software Solutions (under Sundry Debtors).
5.3.11 NOVEMBER2005
DATE personal use ii. Make an entry of the transaction in a Journal Voucher.
SL. NO. for
withdrewRs.8,000cash Debit: Trishul Software Solutions ’ 27,500.
Kapur
1-11-2005 Ms. PaymentVoucher. Credit: HDFCBank- 27,500.
85) transactionin a
entryof the Note: By default, Tally does not allow you to enter transactions which affect cash and bank
an
MakeWithdrawals
LDebit: 8000. accounts in journal vouchers. However, in situations where companies require journals to
for Rs.7.200 from
Raj Travels. 40n
This
Credit: Cash 8,000. an invoice charges and Rs4 record such transactions, Tally supports their requirement through the option, "Allow Cash
Kapur received cab hiring Accounts in Journals"
2-11-2005 Ms.
includes Rs.2,800 towards
86 towards outstation tours. Click F12: Configure. Set the option Allow Cash Accounts in Journals? to Yes and accept
the setings.
Journal Voucher.
transaction in a 93 21-11-2005 Ms. Kapur paid Rs.950 in cash towards eiectricity bill charges for
entryof the
1. Make an Expenses 2,800. October 2005.
Debit: Cab Hiring 4,400. Make an entry of the transaction in a Payment Voucher.
Tour Expenses
Debit: (Refer trans Depit: Electricity Expenses
Raj Travels ’7,200. October 2005 by cheque. 950.
Credit:
Ms. Kapur paid salaries for Credit: Cash ’ 950.
5-11-2005
87) action 5.)
Voucher. 23-11-2005 Ms. Kapur received Rs.12,500 in cash from Trishul Software Solu
of the transaction in a Payment tions.
iMake an entry 12,000. iake an entry of the transaction in a Receipt Voucher.
Debit: Salary Expenses chargee Cradit: Trishul Soitware Solutions ’ 12.500
Credit: HDFC Bank ’
12,000. office maintenance
in cash towards
8-11-2005 Ms Kapur paid Rs.750 Debit: Cash ’ 12,500.
88) for October 2005. 95) 25-11-2005 is. Kapur paid Rs.1,470 by cheque towards mobile phone bill
ina Payment Voucher. charges for October 2005
of the transaction
1. Make an entry i VMaks an entry of the transacticn in a frayment Voucher.
Maintenance Expenses 750.
Debit: Ofice Debit. ielephone Expenses 1,470.
Cash ’ 750 consulting revenue
Credit: Rs.27,500 by cheque as Credit: HDFC Bank 1.470.
10-11-2005 Ms. Kapur receivec Solutions.
89) Software
from Trishul
96 27-11-2CU5 Ms Kepur reimbursed conveyance bils amounting to Rs.900 in
Receipt Voucher. Cash to Vijay Narayan.
Make ar entry of the transaction in a Viake an entry of the traisaction iia Payment Voucher.
i. 27,500.
Credit: Consulting Revenue Debit: Conveyance Expenses -’ 900.
Debit: HDFC Bank ’ 27.500. October 2005 by cheque. (Refer
Credit Casn 900
90 12-11-2005 Ms. Kapur paid ofice rent for 97) 30-11-2005 Ms, Kapur witharew Rs.6,500 cash for personai use.
transaction 4.)
i. Make an entry of the transaction in a Payment Voucher.
transaction ina Payment Voucher.
i. Make an entry of the Debit: vwithdrawals 6,500.
Debit: Rent Expenses 2,500. redit Cash - 6,500.
Credit: HDFC Bank ’ 2,500.
their contract and the advànce of
91) 15-11-2005 Planet Consultancy terminated
Rs.10,000 was refunded to them by cheque.
1. Make an entry of the transaction in a Payment Voucher.
Debit: Advance Consulting Revenue ’ 10,000.
Credit: HDFC Bank ’ 10,000

80
 POWER OF SIMPLIciTY
Processing Trensacins in Taly
5.3.12 Transactions for December 2005
Taly
Processing Transactonsin SL. NO. DATE
TRANSACTIONS
DECEMBER 2005
November 2005UniversalDusiness Solutions IUnlversal Buslness Solutlohs 98) 3-12-200S The staternent, received from HDFC Bank, shows that the bank
Iial Balance
until 1.ADr2005 to 30-Now2005 charged Rs.550 as cheque bouncing charges and Rs.330 has
Closing Balance
cheque book charges. Cheque bouncing charges are to as
recovered from Trishul Software Solutions (Refer transaction 92). be
Trial Balance Debt Cred

Particulats
TS53.0o0,00,4,00.000.00 i.Create Ledger Bank Charges (under Indirect Expenses),
400,000 00
63,000 00 ii. Make an entry of the transaction in a Journal Vouchor.
Capifal Accouit
Kaur Ceotal AC
10,300.00
10 300.00
Debit: Trishul Software Solutions - 550.
Nantin Ka
Debit: Bank Charges ’ 330.
83,500,00
Current Llabillties
Sundy Credtors 20 00000 Credit: HDFC Bank 880.
Avance from Customers 6000,00 99) 5-12-2005 Ms. Kapur paid office rent for November 2005 by cheque (Refer
22,500 00
Assets transaction 4).
Fixeaione
Cal Phoh
Comoute
EactncalFltings
45,C00, 00
20, 000 00
4,87,430.00
28 020 00
i. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses ’ 2,500.
Furnture
Current Assets
15,000.00 Credit: HDFC Bank’2,500.
Denosits (Asset) 261,200 0o
Loans &Advancas (Asset) :74,880.00 100) 6-12-2005 Ms. Kapur paid salaries for November 2005 by cheque (Refer
Sundry Debtors 6,000 00
Cash-in-hand 2 400 00 transaction 5).
Bank Accounts
Preoaid Inesurance 3,87,500.00 i. Make an entry of the transaction in a Payment Voucher.
Prebad Jourmal Subscrtion
1.72,870.00
Debit Particulars: Salary Expenses ’ 12,000.
Diroct Incomes
Consuting Revenue 8.250 00 Credit Particulars: IHDFC Bank ’ 12 000.
615000
ndirect Expensos 2,0C0.00 101) 8-12-2005 Ms. Kapur received an invoice from Raj Travels for Rs.6,200. This
Cab rining Expenses
Conveysnce Expenses
Discount Expenses
p100,150.00
00 includes Rs.3,000 towards cab hiring charges and Rs.3,200
Electncky Expenses 6,250 00 towards outstation tours.
Miscellaneous Expens8s 47,500 00 Make an entry of the transaction in a Journal Voucher.
Olfice Maintenence Expenges 3,800 GO
Rent Expensas 0350 00
20 100.00
Debit: Cab Hiring Expenses ’ 3,000.
Reper and Maintenance Expenses
Selary Expenses 11870 00 Debit: Tour Expenses - 3.200
Stetioney Expenses
Telephone Expansss
12 U50.00 Credit Particulars: Raj Travels ’5200.
Tour Expenses 7.97,800.00 7.97,800.00 102) 9-12-2005 Ms. Kapur received Rs.50,000 by cheque as consulting revenue
Grand Total
November 30, 2005
frern Unigrand Technologies.
Balance --- April1, 2005 to i. Make an entry of the transactiun ia a Receipt Voucher.
Figure 5.30 Detailed Trial
Credit Particulars Consulting Revenue - 50,000
Debit Particulars: HDFC Bank ’ 50.000.
103) 10-12-2005 Ms Kapur withdrew Rs.30,000 cash from HDFC Bank.
Make an entry of the iransaction in a Contra Voucher.
Creoit: HDFC Bank-- 30.G00.
Debit: Cash 30 C00.
 Processin Transactions in Taly
Transactions in Taly iCreate ledger InGroove Designers (under Sundry
Prooessing
towards office
maintenance charges i. Make an entry of the
transaction in a Sales Voucher. Debtors),.
incash
paid Rs.750 Go to Gateway of Taly >
Kapur 2005.
Ms.November
11-12-2005 for Accounting Vouchers >F8: Sales to display Sales Voucher.
1.Press F2 to Change Voucher
104) Voucher. Date. Type 24.12.2005.
transaction in a Payment 2. Ref: Skip.
entryofthe 750. 3.Click the As Invoice button to
. Makean MaintenanceExpenses Rs. 12,000 on credit
enter the transaction in Involce format
Debit: Office equipment worth 4. Party's Alc Name: Select
Credit: Cash 750 purchased office The asset does not have any disposa!
InGroove
5. Particulars: Select Consulting Designers.
15-12-2005 Ms. Kapur Tech Pvt. Ltd.years. Revenue.
105) from Transformuseful life of6
6. Amount: Type 42,500.
valueafterits Creditors) and Office Equip- 7. Narration: Skip.
(under Sundry
Transform Tech Pvt. Ltd.
Create ledgers
Fixed Assets). Voucher. Actounting Vouther
ment (under in a Journal CreatianHUniversal 9usiness Solution
entryof the transaction Sales7 No. 1
i. Make an Equipment - 12,000. Patys Ale Name laGroove Deslgners
24Dec200s

Debit: Office 12,000. towards mobile phone bill Curert B'ance

Tech Pvt. Ltd. ’ Rs.1,450 by cheque Pardcula
4Ppemnt
Credit: Transform Kapur paid HRecais
16-12-2005 Ms, November2005. Codúng Rvan Rate ger Anount

106) chargesfor Voucher. 42500.0

in a Payment
entry of the transaction
. Make an
Expenses ’ 1,450.
Debit: Telephone ’1,450.
Bank towards electricity bill charges for
Credit: HDFC Rs.850 in cash
Ms. Kapur paid
18-12-2005 November
107) 2005
Voucher.
transaction in a Payment
Make an entry of the
1. Expenses 850.
Debit: Electricity
anmounting to Rs.1.100 in
Narratign
Credit: Cash 850.
Ms. Kapur reimbursed Conveyance bills 42400.CG
LFo-Dalad
20-12-2005
108) cash to Vijay Narayan. Voucher. Figure 5.31
Accounting Voucher Creation Sales Invoice
transaction in a Payment Note: The Invoice mode displays by
default. You can toggle it to As Voucher
Make an entry of the mode.
Debit: Conveyance Expenses 1,100.
Credit: Cash ’ 1,100. Transform Tech Pvt. Ltd
Ms. Kapur paid
Rs.12,000 by cheque to
23-12-2005
109) Payment Voucher.
the transaction in a
i. Make an entry of Ltd. ’ 12,000.
Debit: Transform Tech Pvt.
Credit: HDFC Bank ’ 12,000. Ps. 42,500 on InGroove
Designers
24-12-2005 Ms. Kapur raisedan invoice for
110) for consultancy servÍces.
features.
using one of Tallv's
computerise the invoicing process
Note: Ms. Kapur wants to

85
 POWER OF SIMPLICITY

POWER 0F SIMPLICITY
Processing Transactons in Tally

Processing Transactions in Tally

The printed invoice displays as shown.

To print the Invoice, INVOICE

invoice No Dated
Ctd + M X untyersal Business Soluolutlons J24-Dec-2005
1. Press Alt+P. Universal Business Solutlons) No. 18, Roosevelt Road Delvery Note Mode/Terms of Payment
Voucher Printing Bangalore Other Referencels)
E-mal solulionsQuniversal.com Suppliers Ref

Buyers OrderNo. Dated

Buye
InGroove Designers Despatch Document No Dated
Voucher Printing Destinaton
Despalched through
Letfer
Paper Type:
(NeCD) (Pnting Dimersion) Terms of Delivery
No. ofConles
pritLanguage Englich Paper Size B5Ü 1095) or 216 m20 mm
Nethod :Neat Mode Pant Area pOS 106) or 204
Page Range Report Tltlos
INVOICE
Quantity Rate per Amount
Particulars
Print ? LPnt Lnguag
Yes or No hProiow
I Tling Consulting Revenue
42,500.00
G PAga Nos
B: PePonted
EPont Fomat
CCopiRs

Figure 5.32 Voucher Printing

invoice.
2. Click the With Preview button to preview the
3. Press Yor Enter to accept the voucher printing screen.
4. Press Alt+Z to view the enlarged version of the invoice.
5. Press Esc to return to the Voucher Creation screen. Tolal 42,500.00
Acurt Charpeabe (n words) E &0E
6. Press Yor Enter to accept the voucher Rs. Forty Two Thousand Five Hundred Only

for Universal Business Solutons

Authonsed Signalory
This is a Computer Generated Invoce

Figure 5.33 Printed Invoice

Processing Transactions in Tally 5.3.13 Transactions for January 2006
cash from Trishul Software Solu-
Rs.15,550in SL. NO. DATE
TRANSACTIONS
25-12-2005 Ms. Kapur received
111) tions.
JANUARY 2006
Voucher.
in a Receipt 114) 3-1-2006 Ms. Kapur paid office rent for December 2005 by
the transaction cheque. (Refer
Make an entry of Solutions -’ 15,550. transaction 4.)
Credit: Trishul Software i. Make an entry of the transaction in a Payment Voucher.
Debit: Cash 15,550. for personal use.
withdrew Rs. 6,000 cash Debit: Rent Expenses 2,500.
112) 28-12-2005 Ms. Kapur Voucher. Credit: HDFC Bank ’ 2.500.
trnsaction in a Payment
Make an entry of the 115) 5-1-2006 Ms. Kapur received Rs.30,000 in cash from InGroove
Debit: Withdrawals ’ 6,000 i. Make an entry of the transaction in a Receipt Designers.
Credit: Cash ’ 6,000 professional charges Voucher.
by cheque towards Credit: InGroove Designers ’ 30,000.
113) 30-12-2005 Ms. Kapur paid Rs.7,500
of accounts. Debit: Cash ’ 30,000.
for internal audit
Expenses).
Charges (under Indirect 116) 6-1-2006 Ms. Kapur paid salaries for
LCreate ledger Professional Voucher. December 2005 by cheque. (Refer
transaction in a Payment transaction 5.)
i. Make an entry of the | i. Make an entry of the
Debit: Professional Charges ’ 7,500. transaction in a Payment Voucher.
Debit: Salary Expenses ’ 12,000.
Credit: HDFC Bank ’ 7.500
Credit: HDFC Bank - 12,000
Tri Balance until December 2005
117) 10-1-2006 Ms. Kapur paid Rs.750 in cash
for December 2005. towards office maintenance charges
trat Balance
i. Make an entry of the
Patticulars Closialce transaction in a
Payment Voucher.
Creda
Debit: Office Maintenance Expenses ’ 750.
29,0DO,G0400,D0D.00 Credit: Cash ’ 750.
NKar CactaAe 4,00,0000
WIdasals
60.000 0D 118) 12-1-2006 Ms. Kapur received
Currant Llablites
16,500.09

from Ala Carte Rs.35,000 by cheque as consulting revenue

entry of the transaction in alnvestments.
Adance Ernm Customers
IElxed Apats
i. Make an
Credit: Consulting Revenue - 35,000. Receipt Voucher.
Ar Conditione 6000 00
22 800 00
Enctice Ftrgs
Debit: HDFC Bank ’ 35.000.
Ofice Eoyamert 2,000 00
119)
Curreit Asses 459.03
25000 CJ 15-1-2006 Ms.
Kapur withdrew
entry of the transaction in a Rs.50,000 capital from the firm by cheque.
Deposts (Assel)
S C e t (Asse)
<2:00 0 i. Make an
Cash iohand
Debit: Nandini Kapur Capital Payment Voucher.
Alc ’ 50,000.
Prncad Journel Subscgtion
Dlrect lncones 4,80,000.00
Credit: HDFC Bank ’ 50,000
Consuting Revenuy 480.000 0
narsct txpeises 2,05550.00 120) 18-1-2006 Ms. Kapur paid Rs.2,300 by
Cab Hiing Epenses
yanc bpenses
14,25000
.260 00
for December 2005. cheque as mobile phone bill charges
EctnciyErenses 0000 i.
Make an entry of the
Rscalaneous Expensas
Epenses
15000 transaction Payment Voucher.
Debit: Telephone Expenses
in a
Prolesil 6000 00
’ 2,300
Ror Epenses
MeteancoExperses 3800 0
Credit: HDFC Bank ’ 2,300.
SIaoney Exoonse 90,050 C0
phan pnses 2070000

16 260 00
Grand Totol 036,500.09 8,96,500,00
Figure 5.34 L'etailed Trial Balance ---Apri! i. 2005 to
December 31, 2005
 POWER OF SIMPLICITY

Processing Transactions in Tally Toly

POWEA Or sIMPLICITY
5,3.14 Transactlons for February 2006
SL. NO,. DATE
121) 21-1-2006 Ms. Kapur paid Rs.1,050 in cash towards electricity TRANSACTIONS
December 2005. charges for FEBRUARY 2006
Make an entry of the transaction in a Payment Voucher. 124) 5-2-2006 Ms. Kapur paid office rent for January 2006 by
Debit: Electricity Expenses ’ 1,050. action 4.) cheque. (Refer trans
Credit: Cash 1,050. . Make an entry of the transaction in a
Payment Voucher.
122) 23-1-2006 Ms. Kapur reimbursed conveyance bills amounting to Debit: Rent Expenses ’ 2,500.
cash to Vijay Narayan. Rs.1,800 in Credit: HDFCBank - 2,500.
. Make an entry of the transaction in a 125)
Payment Voucher. 6-2-2008 Ms. Kapur paid salaries for
January 2006 by cheque. (Refer trans
Debit: Conveyance Expenses ’ 1,800. action 5.)
Credit: Cash ’ 1,800 i. Make an entry of the transaction in a Payment
Voucher.
123) 30-1-2006 Ms. Kapur withdrew Rs.8,000 cash for personal use. Debit: Salary Expenses ’ 12,000.
Make an entry of the transaction in a Payment Voucher. Credit: HDFC Bank ’ 12,000.
Debit: Withdrawals ’ 8,000. 126) 10-2-2006 Ms. Kapur received an invoice from Raj Travels for
Credit: Cash ’ 8,000. includes Rs.3,800 towards cab hiring charges and Rs.9,400. This
towards outstation tours. Rs.5,600
Trial Balance until January 2006
i. Make an entry of thetransaction ina Journal
Voucher.
Debit: Cab Hiring Expenses ’ 3,800.
Trial Balance2AeAROXUnivers Buainess SoIac
Partlrulars Unveal BudhaeSei
Debit: Tour Expenses ’ 5,600.
1or2005ta 31Jan205
dosinn Balance
Credit: Raj Travels ’9,400.
Cradt

Crslal Accounk4E
127) 11-2-2006 Ms. Kapur paid Rs.20,000 by cheque to Raj Travels.
Nenti Kapur Cental A
i. Make an entry of the transaction in a
67000 00 Payment Voucher.
Curent Liabides
Sundy Cradtors 16,500.00 Debit:Raj Travels ’ 20,000.
Annce From Customar 15500 0
Flxed Amas 5500.00
Credit: HDFC Bank ’ 20,000.
ArGother 20 0000
0000
128) 12-2-2006 Ms. Kapur paid Rs.750 in cash towards office
Camputer
Ectical Fttings 16000 00 for January 2006. maintenance charges
000000
i. Make an entry of the
Currant Aansls 49Z050.00 transaction in a Payment Voucher.
pozkaDeh
Suodet
(al) (Asten Debit: Office Maintenance Expenses 750.
12 500 00
Cash-ib-hand 9,16450 00
126700 00
Credit: Cash ’ 750.
Pspeid Joumal Subacnption 129) 15-2-2006 Ms. Kapur paid Rs.1,600 by cheque towards
Dlrect lncoines
Consuting Reserue
5,15,000.00
charges for January 2006. mobile phone bil
615000 00
narectxpansas 226950.00 i. Make an entry of the
Cab Hring Bpensas transaction in a Payment Voucher.
ync Epenea
Debit: Telephone Expenses ’ 1,600.
Eetncky Erenses
Mocelaneous Epenses 16000
Credit: HDFC Bank’ 1,600.
c pahses 7000
Rent Epanes 2400
130) 18-2-2006 Ms. Kapur paid Rs.1.200 in cash towards electricity bill for January
Hepy and Kanlenance Spensus J,800 00 2006.
SeloneEns
Telechone Epensas i. Make an entry of the transaction in a Payment
Tour Expences
15020 00
15,250,00 Voucher.
Grsnd Totel G01500 00 E1 500,00
Debit: Electricity Expenses ’ 1,200.
Credit: Cash ’ 1.200.
Figure 5.35 Detailed Triel Balance -- April 1, 2005 to January 31,2006

91

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 Tolly
Procesing Transadions in Tuly
Processing Transactlons in Tally 5.3.15 Transactions for March 2006
SL. NO. DATE
TRANSACTIONS
131) 20-2-2006 Ms. Kapur reimbursed conveyance bills of Rs.1,150 in cash to Vijay MARCH 2006
Narayan. 134) 3-3-2006 Ms. Kapur paid salaries by
cheque for February 2006. (Reler trans
.Make an entry of the transaction in a Payment Voucher. action 5.)
Debit Conveyance Expenses - 1,150. i. Make an entry of the transactlon In a Payment Voucher.
Credit: Cash - 1,150. Debit: Salary Expenses ’ 12,000.
132) 24-2-2006 Ms. Kapur purchased stationery consumables worth Rs.7,400 on Credit: HDFC Bank - 12,000.
Credit from Global House.
135) 5-3-2006 Ms. Kapur paid office rent for February 2006 by cheque. (Refer
LMake an entry of the transaction in a Journal Vouche. transaction 4.)
Debit: Stationery Expenses ’ 7,400. |i. Make an entry of the transaction ín a Payment Voucher.
Credit: Global House 7400. Debit: Rent Expenses 2,500.
133) 28-2-2006 Ms. Kapur withdrew Rs.7,000 cash for personal use. Credit: HDFC Bank - 2,500
i.Make an entry ofthe transaction in a Payment Voucher. 136) 8-3-2006 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
Debit: Withdrawals 7,00. for February 2006.
Credit: Cash ’ 7,000. . Make an entry of the transaction in a Payment Voucher.
Debit: Ofice Maintenance Expenses ’ 750.
Trial Balance until February 2006 Credit: Cash ’ 750.
137) 10-3-2006 Ms. Kapur received Rs.30,000 in cash as consulting revenue from
Parttculats 14p005 te 28-Fob-200s Eye Television Network.
Dabt
. Make an estry of the transaction in a Receipt Voucher.
Caltal Atcau Credit: Consulting Revenue ’ 30,000.
wOl Debit: Cash ’ 30,000.
Currat Llalidas 13,300DO
Sundsy Castors 133000
Aance Fam Cutuma 138) 12-3-2006 Ms. Kapur paid Rs.1,450 in cash towards electricity bil for February
Fxed Aay 2006.
Comotar 2260000 . Make an entry of the transaction in a Payment Voucher.
BecticeFtings 16,020.00

Eajpment 1200000
Debit: Electricity Expenses 1,450.
Current Amss
Deponke (Assa)
A5350.00 Credit: Cash ’ 1450.
Loans &Avancas (Assel)
1250.00
305250.00 139) 15-3-2006 Ms. Kapur paid Rs.1.900 by cheque towards mobile phone bil
Banik Actounta
Papadoma
insurce
charges for February 2006.
Pad Sbacrtin
5,15,000.00
i. Make an entry of the transaction in a Payment Voucher.
5140000
adlract Expanses 2,62950 DO Debit: Telephone Expenses 1,900.
Bank ChagN
Cab Hring Epenses
Credit: HDFC Bank ’1,900.
1020000
200 00
Ecincily Epenses 11,0000 140) 18-3-2006 Ms. Kapur reimbursed conveyance bills of Rs.950 in cash to Vijay
Miecolaneous Dpenges
Eypenses 1600 00 Narayan.
PrlasoalCAs 7600.00
Rent Enes i. Make an entry of the transaction in a Payment Voucher.
Rrper end Naaace Epenses
,140000
27,500 00 Debit: Conveyance Expenses 950.
Tebphone Epenses
Toor Expwn
Credit: Cash ’ 950.
Grand Tetal

Figure 5.36 Detailed Trial Balance - April 1, 2005 to February 28, 2006
 FOWER Of SIMPLICITY

Processing Transacions In Tally

Processing Transactions in Tally Tally
rOWER Or sMPLICITY
147) 7-4-2006 Ms. Kapur pald Rs.750 in cash
for March 2006 towards office maintenance charges
141) 20-3-2006 The invoice received from Global House on February 24, 2006 had Create ledger Office Maintenance Expenses Payables
an error in calculation and was over-valued by Rs.600. il. Make an entry of the transaction in a
(under Provisions).
Journal Voucher.
i. Make an entry of the transaction ina Journal Voucher. Debit: Ofice Maintenance Expenses ’ 750.
Debit: Global House ’ 600. Credit: Ofice Maintenance Expenses Payables ’ 750.
Credit: Stationery Expenses 600. 148) 12-4-2006 Ms. Kapur paid Rs.1,690 by cheque towards mobile
142) 21-3-2006 Ms. Kapur paid Rs.6,800 by cheque to Global House. charges for March 2006. phone bill
i. Make an entry of the transaction in a Payment Voucher. Create ledger Telephone Expenses Payables (under Provisions).
Debit: Global House’ 6,800. il. Make an entry of the transaction in a Journal Voucher.
Credit: HDFC Bank’ 6,800. Debit: Telephone Expenses ’ 1,690.
143) 25-3-2006 Ms. Kapur withdrew Rs.6,500 cash for personal use. Credit: Telephone Expenses Payables ’ 1,690
i. Make an entry of the transaction in a Payment Voucher. 149) 15-4-2006 Ms. Kapur reimbursed conveyance bills of Rs. 1,300 in cash to Vijay
Debit: Withdrawals - 6,500. Narayan. The bills pertain to March 2006.
Credit Cash ’ 6,500. |i. Create ledger Conveyance Expenses Payables (under Provisions).
ii. Make an entry of the transaction in a Journal Voucher.
Debit: Conveyance Expenses ’ 1,300.
5.3.16 Provision Entries Credit: Conveyance Expenses Payables ’ 1,300
150) 18-4-2006 Ms. Kapur received an invoice irom Raj Travels for Rs.6.600. This
Transactions after 31-03-2006, pertaining to the year ending March 31, 2006. require provision includes Rs.2,900 towards cab hiring charges and Rs.3,700
entries. All provision entries are depicted using Journal Voucher. towards outstation tours. This is the bill for February and March.
Note: Provision Entries, Depreciation Entries and Adjustment Entries are all recorded as on 2006.
March 31, 2006. i. Make an entry of the transaction in a Journal Voucher.
SL. NO. DATE TRANSACTIONS Debit: Cab Hiring Expenses ’ 2,900.
144) 1-4-2006 Ms. Kapur received Rs.20,000 cash as consulting revenue from Debit: Tour Expenses ’ 3.700.
ForeC Marketing Solutions. The services had already been pro Credit: Raj Travels - 6,600.
vided in March 2006.
151) 20-4-2006 Ms. Kapur paid Rs.870 in cash towards electricity bill for March
i.Create ledger Forec Marketing Solutions (under Sundry Debtors). 2006.
i. Make an entry of the transaction in a Journal Voucher. .Create ledger Electricity Expenses Payables (under Provisions).
Debit: ForeC Marketing Solutions ’ 20,000. ii. Make an entry of the transaction in a Journal Voucher.
Credit: Consulting Revenue ’ 20,000. Debit: Electricity Expenses ’ 870.
145) 2-4-2008 Ms. Kapur paid office rent for March 2006 by cheque. Credit: Electricity Expenses Payables ’ 870.
i. Create ledger Rent Expenses Payables (under Provisions)
ii. Make an entry of the transaction in a Journal Voucher.
Debit: Rent Expenses ’ 2,500.
Credit: Rent Expenses Payables - 2,500.
2006.
146) 5-4-2006 Ms. Kapur paid salaries by cheque for March
| i. Create ledger Salary Expenses Payables (under Provisions).
Voucher.
ii. Make an entry of the transaction in a Journal
Debit: Salary Expenses ’ 12,000.
Credit: Salary Expenses Payables ’ 12,000. 95

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