Terminology of Accounting

Business व्यवसाय

Capital पूंजी

Drawing आहरण

Goods माल

Purchase खरीदना

Sales ववक्रय / बेचना

Purchase Return क्रय वापसी

Sales Return ववक्रय वापसी

Creditor लेनदार (जजसमे सामान खरीदते है )

Debtor दे नदार (जजसको सामान बेचते है )

Liabilities दाययत्व

Long term/fixed liability स्थायी दाययत्व

Short term/current liability अस्थायी दाययत्व

Asset सूंपयत

Liability दाययत्व

Fixed Asset स्थायी सम्पयत

Current Asset अस्थायी सूंपयत

Expenses व्यय

Direct Expenses प्रत्यक्ष व्यय

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 Indirect Expenses अप्रत्यक्ष व्यय

Income आय

Direct Income प्रत्यक्ष आय

Indirect Income अप्रत्यक्ष आय

Discounts छट

Bad debts डुबत ऋण

Transaction लेन-दे न

Wages मजदरी

Interest ब्याज

Donation/Charity दान

Free Sample मफ्

ु त

Stock/Goods माल

Carriage/Cartage गाडी भाडा

Octroi यनयाात पर टै क्स

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 Types of Accounts and Rules
1. Real A/c (वास्तववक खाता)
Ex: - Cash A/C, Assets A/c (building, stock, Furniture)

Rule: - Debit what Comes in (जो वस्तु व्यापार में आती है उसे Dr. करते हैं।)
Credit what goes out (जो वस्तु व्यापार से जाती है ओ Cr. करते हैं
Examples: - (a) Machinery Purchased 10,000
Machinery A/C Dr. 10,000
To Cash A/c 10,000
(b) Furniture sold 20,000
Cash A/c Dr. 20,000
To furniture A/c 20,000
2. Personal A/c (व्यजक्तगत खाता)
Ex: - Bank A/c, Ram A/c, Shyam A/c
Rule: - Debit the receiver (पाने वाले को Dr. करो |)
Credit the giver (दे ने वाले को Cr. करो ।)
Examples: - (a) Cash paid to Ram 15,000
Ram A/c Dr. 15,000
To Cash A/c 15,000
(b) Open an A/c in SBI Bank 20,000
SBI A/C Dr. 20,000
To Cash A/c 20,000
3. Nominal A/C (नाममात्र खाता)
Ex: - Interest A/c, Commission A/c etc.
Rule: - Debit all expenses and losses (सभी खचे एवूं हायन को Dr. करो)
Credit all profit and income (सभी लाभ एवूं आय को Cr. करो)
Example:
(a) Rent paid in cash 5000
Rent a/c Dr. 5000
To Cash a/c 5000
b) Commission received 4500
Cash a/c Dr. 4500
To commission received a/c 4500

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 Journal Entries
1. Business started with Cash 15000
Cash A/c Dr. 15000
To Capital A/c 15000.
2. Business started with stock 45000, building 500000, furniture 25000 and machinery
500000.
Stock A/c Dr. 45000
Building A/c Dr. 500000
Machinery A/c Dr. 500000
Furniture A/c Dr. 25000
To Capital A/c 1070000
3. Cash deposit into Bank 10000
Bank A/c Dr. 10000
To Cash A/c 10000
4. Cash withdraw from Bank 2000
Cash A/c Dr 2000
To Bank A/c 2000
5. Goods purchase 20000
Purchase A/c Dr. 20000
To Cash A/c 20000
6. Goods purchase from shyam on cash 20000
Purchase a/c Dr. 20000
To Cash A/c 20000
7. Goods purchase from shyam 20,000
Purchase a/c Dr.20000
To shyam A/c 20000
8. Goods returned to shyam 3500
Shyam A/c Dr. 3500
To purchase return A/c 3500
9. Goods sold 15,000
Cash A/c Dr. 15000
To sales A/c 15000
10.Goods sold to Hemant on cash 15 000
Cash A/c Dr. 15000
To Sales A/C 15000
11. Goods sold to Hemant 15000
Hemant A/c Dr. 15000
To Sales A/c 15000
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 12. Goods returned by Hemant
Sales return A/c Dr. 1000
To Hemant A/c 1000
13. Expenses paid 5000
Expenses A/c Dr. 5000
To cash 5000
14. Income received 10000
Cash A/c Dr. 10000
To income received A/c 10000
15. Cash/Goods withdraw from business for personal use 5000
Drawing A/c Dr. 5000
To cash/ purchase A/c 5000
16. Goods loss by fire / flood / theft 50000
Loss by fire A/c Dr. 10000
Loss by flood A/c Dr. 15000
Loss by theft A/c Dr. 25000
To purchase A/c 50000
17. Goods given Charity / Donation 500
Charity/ Donation a/c Dr. 500
To purchase a/c 500
18. Goods given as free sample 500
free sample a/c Dr. 500
To purchase a/c 500
19. Cash paid to ABC 4000
ABC a/c Dr. 4000
To cash A/c 4000
20. Cash received from xyz ltd.
Cash a/c Dr.
To xyz ltd. a/c
21. Depreciation charged on fixed assets
Depreciation A/c Dr.
To fixed assets A/c
22. Goods purchased from Avinash 50000, paid 25000 in cash, half amount is remaining
Purchase A/c Dr. 50000
To cash A/c 25000
To Avinash A/c 25000

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 23. Goods sold to Arjun 20000, and 15,000 received and remaining part of amount is
remaining
Cash A/c Dr. 15000
Arjun A/c Dr. 5000
To sales A/c 20000
__________________________________________________________________________

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 Ledger
Ledger Creation → Gateway of Tally→ Create →Ledgers

Ledger Name Under Group

Bank name Bank A/c
Bank overdraft Bank O/D A/c
Capital A/c Capital A/c
Drawings Capital A/c
Purchase Purchase A/c
Purchase return Purchase A/c
Sales Sales A/c
Sales return Sales A/c
Land and Building Fixed assets
Machinery Fixed assets
Furniture Fixed assets
Computer Fixed assets
Stock Current assets
Petty Cash Cash in hand
Wages Direct Expenses
Carriage Direct Expenses
Octroi Direct Expenses
Rent Indirect Expenses
commission Indirect Expenses
Salary Indirect Expenses
Discount Allowed Indirect Expenses
Interest Indirect Expense
Loss by fire/flood/theft Indirect Expenses
Donation/ charity Indirect Expenses
Free sample Indirect Expenses
Depreciation Indirect Expenses
Rent Received Indirect Income
Salary Received Indirect Income
Discount Received Indirect Income
Commission Received Indirect Income

How to Create Multiple Ledgers-

Gateway of Tally
↓
Charts of accounts
↓
Alt + H for Multi master
↓
Multi Create

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 Voucher Entries
F4 → Contra Entries
▪ ऐसी entries जजसमें Cash and bank दोनों Dr. व Cr.में आते है ।
▪ ऐसी entries जजनसे Business को कोई लाभ व हायन नहीूं होती है।
(a) Cash deposited into HDFC Bank 14,000
HDFC A/c Dr. 14000
To Cash A/c 14000
(b) Cash withdraw from PNB 20000
Cash A/c Dr. 20000
To PNB A/c 20000
(c) Cash transferred from HDFC to PNB
PNB A/c Dr. 44000
To HDFC Bank A/c 44000

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 F5 → Payment Voucher
• Company के सभी खचो की entries की जाती है
• Cash ओर Bank केवल Cr. इसमें में आता है ।
(a) Goods purchased from ABC Ltd.50000 paid by cash
Purchase A/c Dr. 50000
To Cash A/C 50000
(b) Machinery purchased from Amir paid by cash 40000
Machinery A/c Dr. 40000
To Cash A/c 40000
(c) Goods purchased from ABC Ltd.50000 half amount paid cash
Purchased A/c Dr. 50000
To Cash A/c 25000
To ABC Ltd. A/c 25000
(d) Machinery purchased from Amir 40000 and half amount paid by cash
Machinery A/c Dr. 40000
To Cash A/c 20000
To Amir A/C 20000
(e) Cash given in charity 500
Charity A/c Dr. 500
To Cash A/c 500
(f) Salary paid 15000
Salary A/c Dr. 15000
To Cash A/c 15000
(g) Commission paid by PNB cheque 5000
Commission A/c Dr. 5000
To PNB A/c 5000
(h) Rent paid 20000; 5000 by HDFC cheque and remaining part by cash
Rent A/c Dr. 20000
To HDFC A/c 5000
To Cash A/c 15000

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 F6 →Receipt Voucher
• Company के सभी incomes की entries की जाती है ।
• ऐसी entries जजनमें Cash व Bank Dr.मे आता है ।
1. Business started with cash 50000
Cash A/c Dr. 50000
To capital A/c 50000
2. Goods sold to XYZ Ltd. 80000 Payment received by cash
Cash A/c Dr. 80000
To sales A/c 80000
3. Goods sold to XYZ Ltd. 80000, half amount received by cash.
Cash A/c Dr. 40000
XYZ Ltd. A/c Dr. 40000
To Sales A/c 80000
4. Furniture Sold to Mahesh 50000 Payment received by crash
Cash A/c Dr. 50000
To furniture A/c 50000
5. Goods sold to Mahesh 50000, half amount received cash
Cash A/c Dr. 25000
Mahesh A/c Dr. 25000
To sales A/c 50000
6. Rent receive 1400
Cash A/c Dr. 1400
To rent receive A/c 1400
7. Commission receive 5000
Cash A/c Dr. 5000
To Commission receive 5000
8. Interest receive 2000
Cash A/c Dr. 2000
To interest receive A/c 2000

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 F7 →Journal Voucher
• Company के सभी non-cash entries के ललए।
• इसमे Cash व bank नहीूं आता है ।
• Business के ललए उधार fixed assets खरीदना या बेचना
1. Business started with machinery 50000, building 800000 and Furniture30000
Machinery A/c Dr. 50000
Furniture A/c Dr. 30000
Building A/c Dr. 800000
To capital A/c 880000
2. Furniture purchased from ABC Ltd. 50000
Furniture A/c Dr. 50000
To ABC Ltd. A/c 50000
3. Machinery Sold to XYZ Ltd. 60,000
XYZ Ltd A/c Dr. 60000
To Machinery A/c 60000
4. Goods given in Charity 15000
Charity A/c Dr. 15000
To purchase A/C 15000
5. Goods given as free sample 4000
Free sample A/c Dr. 4000
To purchase A/c 4000

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 Inventory [Stock]
Company मे खरीदे गए goods को maintain करना
Inventory create करना

Gateway of Tally > Create > Stock Group

Name- Raw Material

Name- Work in Progress
Name- Finished goods

Accept
[stock groups are used for only manufacturing Companies]
Create > Unit of measure
Name - kg
Formal Name - Kilogram
No. of decimal places -3
Name - Nos
Formal Name - Number
No. of decimal places 0
Name - mtr
Formal Name - Meter
No. of decimal places -2

Accept
Create > Stock item
Name - Mobile
Unit - Nos
Name - Cloth
Unit - Mtr
Name- Sugar
Unit - Kg
Accept

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 F9→ Purchase Voucher
उधार / नकद माल खरीदना
Suppliers Invoice No: - [Bill No]
Party A/c Name - ABC Ltd. (Sundry creditors). उधार के ललए
(Cash नकद के ललए)
Name of item Qty Rate Amount

Mobile 10 Nos 5000 Nos 50000

Pen drive 20 Nos 500 Nos 10000

For goods report – Gateway of Tally > Stock summary

F8 Sales Voucher
उधार / नकद माल बेचना
Reference No- (Bill No)
Party A/c Name - XYZ Ltd. (Sundry Debtors) उधार के ललए
Cash (नकद के ललए)
Name of item Qty. Rate Amount

Mobile 10 Nos 8000 Nos 80000

Pen Drive 20 Nos 800 Nos 16000

Check report from another way

Gateway of Tally > Display > Inventory Books > Stock Item

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 Debit/ Credit Note -
F9 → Purchase Voucher
• Goods purchase from ABC Ltd.
• Goods return to ABC Ltd.
Purchase Return Entry > Debit Note (Alt + F5)

F8→ Sales Voucher

▪ Goods sold to shyam
▪ Goods return by shyam
Sales Return Entry > Credit Note (Alt + F6)
*We Can Include Credit Limits for sundry debtors & Set standard rate for selling
Bill Wise Details
1) New Ref. – When we make party bill first time

Purchase Sale Journal

2) Agst Ref.- When we do entry second time

Payment Receipt Debit Note Credit Note

Purchase goods from ABC Ltd.

Date Name of item Qty. Rate Amount
1/4 Mobile 10 5000 50000
2/4 Table 10 3000 30000
3) Advance – When party give advance payment to us or we give advance
payment to party
Ex. Receipt 5000 From XYZ Ltd.

Check outstanding reports –

Gateway of Tally → Display → Statement of account → Outstanding

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 ADVANCED TALLY
GLODOWN
→ Business मे खरीदे गए माल को store करना।

Creation =>
Gateway of Tally → Create→ Inventory Masters → Godown/ Location
Enter Value in Name Field - Ajmer, Bhilwara
Accept
Now Company has two Godown
We can see and change the Godown by Alter
Question: - Purchase Goods & Put all items into Ajmer Godown
Mobile 20 Nos @ 5000
Pendrive 20 Nos @ 500
For Godown Reports =>
(i) Gateway of tally (ii) Gateway of Tally
↓ ↓
Stock summary Display
↓ ↓
ALT+F1 Inventory books
↓
Godown

Goods transfer from One Godown to Another Godown

1. Single Godown Transfer
Ex - Goods Transfer from Bhilwara to Ajmer
Gateway of Tally → Voucher → Alt + F7 (Stock Journal) → Ctrl + H (Change
Mode) → Use class for Inter location transfer
Destination Godown - Ajmer
Name of item Godown Qty. Rate Amount
Mobile Bhilwara 5 Nos. 5000 25000
Pendrive Bhilwara 5 Nos. 500 2500
Check Godown Report-

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 2. Multiple Godown Transfer
Gateway of Tally → Accounting Voucher → Alt + F7- Stock journal →Transfer

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 Budget
Creation=> Gateway of Tally → Create→ Accounting Masters → Budget
Name – Expenses Budget
Period of Budget – 01/04 to 31/03
Set/ Alter Budget –
1. Group – Yes

Account name Type of Budget Amount

Indirect expenses On net transaction 300000

2. Ledger - Yes

Account name Type of Budget Amount

Advertisement On net transaction 100000
Rent On net transaction 100000
Salary On net transaction 100000

Voucher Entry for Budget Expenses

Gateway of Tally → Vouchers → Payment Voucher

Dr. Advertisement 100000

Dr. Rent 70000
Dr. Salary 120000
To cash A/c 290000
For Budget report
Gateway of Tally → Display → Trial Balance → F10 [Budget variance]

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 Cost Centre
Activation => F11 → Maintain Cost Centre →Yes
Question 1 => Company made some expenses and allocate on its department.

Expenses Accounts Department Sales Department

Mobile Expenses 4000 6000

Travelling Expenses 12000 15000
Total 16000 21000

Cost Category Creation

=> Gateway of Tally → Create → Accounting Masters → Cost category
Name = Department

Cost Center Creation

=> Gateway of Tally → Create → Accounting Masters → Cost centers
Create two entries as below mention values
Category Name

Department Accounts Department

Department Sales Department

Voucher Creation
=>Gateway of Tally → Vouchers → F5 Payment Voucher

Dr. Mobile Expenses 10000

Department
Accounts Department 4000
Sales Department 6000

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 Dr. Travelling Expenses 27000
Department
Accounts Department 12000
Sales Department 15000
Cr. Cash A/c 27000

Check Cost Center Report

=> Gateway of Tally → Display → Statement of Accounts → Cost Center

Question 2 => Paid Electricity expenses 10000

Category - Meters
Centers - Meter no. 1
Meter no. 2
Meter no. 3

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 Currency
➢ For International Transaction
Currency Creation => Gateway of Tally → Create → Accounting Masters→ Currency
Symbol = $
Formal Name = USD
Example =>
Purchase - Goods Purchase from ABC Ltd.
Mobile 10 Nos. @ $ 300/ Nos.
Pendrive 20 Nos. @ $ 50/ Nos.
As on 01/04 [forex exchange rate 81/$]

Payment - Paid to ABC Ltd. As on 02/04 [ forex exchange rate 81.50/$]

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 Total amount payable in INR – 324000
Total amount paid in INR - 326000
Extra paid - 2000
Report => Gateway of Tally → Display → Trial Balance → Unadjusted forex Gain/ Loss
➢ If amount is shown in Debit – Loss
➢ If amount is shown in credit – Gain
This value is loss for company but not showing in profit and loss statement.
For Adjustment of unadjusted forex Gain/ loss
=> Gateway of Tally → Alter→ Accounting Masters → Voucher type → Journal
Name = Journal
Select type of voucher = Journal

Name of class = Forex gain class

Use class for forex gain/loss adjustment = Yes
Now Create forex gain Ledger
Name- forex gain
Under- Indirect income

Name of class = Forex loss class

Use class for forex gain/loss adjustment = Yes
Now Create forex loss Ledger
Name- forex loss
Under- Indirect expenses

For Forex Gain / Loss Entry

=> Gateway of tally → Vouchers → F7 → Forex loss Class
Accounts = forex loss
ABC Ltd. 1500
Accept
Short keys for currency symbol-
USD - Shift + 4
INR - Ctrl + 4
PNOD - Alt + 0163
Euro - Alt + 0128

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 Interest Calculation
Activation
=> F11→ Enable Interest Calculation → Yes
Creation
=> Gateway of Tally → Create→ Ledgers

1) Name- Sales
Under – Sales A/c
2) Name- Interest receive
Under- Indirect income
3) Party’s name - ABC Ltd.
Under - Sundry Debtors
Maintain balance bill by bill – Yes
Activate interest calculation – yes

Goods sold to ABC Ltd.

Table 50 Nos. 1500 @/-
Chairs 40 Nos. 1000 @/-
Check Interest amount from period 01/04- 01/06
Voucher type creation to Adjust Interest amount
=> Gateway of Tally→ Alter→ Voucher type→ Debit Note
↓
Name of class – interest
Use class for Interest accounting – Yes

Voucher Entry for Interest Adjustment

=> Gateway of Tally→ Vouchers → F10 Other vouchers → Interest

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 F2 Date – 01/06
Dr. ABC Ltd. 980.20
Cr. Interest receive 980.20

F6 Receipt voucher - Receipt whole amount from party

[Interest on Purchase]
Creation
=> Gateway of Tally → Create→ Ledgers

1) Name - Purchase
Under – Purchase A/c
2) Name - Interest
Under- Indirect Expenses
3) Party’s name - XYZ Ltd.
Under - Sundry Creditors
Maintain balance bill by bill – Yes
Activate interest calculation – yes
Goods Purchased from XYZ Ltd.
Table 50 Nos. 1500 @/-
Chairs 40 Nos. 1000 @/-
Check Interest amount from period 01/04- 01/06
Voucher type creation to Adjust Interest amount
=> Gateway of Tally→ Alter→ Voucher type→ Credit Note
↓
Name of class – Interest
Use class for interest accounting – Yes
Voucher Entry for Interest Adjustment
=> Gateway of Tally→ Vouchers → F10 Other vouchers → Interest

F2 Date – 01/06
Dr. Interest 980.20
Cr. XYZ Ltd. 980.20

F5 Payment voucher - Payment whole amount to party

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 Multiple price level
Activation => F11 → F2 → Use multiple price level = Yes

Creation of Price Levels => Gateway of Tally→ Create

↓
Price level
1. Retailer
2. Wholesaler
Creation of Stock item with their opening balance
=> Gateway of Tally → Create→Inventory Masters → Stock item
↓
Name Unit of measure
Mobile Nos
LCD Nos
Creation of Price List
=> Gateway of Tally→ Create →Price List
Stock Group Name: All Items
Price Level: Dealer
Applicable from: 1/04

S. No. Particulars Quantity Rate Discount %

From Less than (If any)
1 Mobile 10 Nos. 8000 5%
10 Nos 50 Nos. 8000 10%
50 Nos. 90 Nos. 8000 15%
90 Nos. 8000 20%

S. No. Particulars Quantity Rate Discount %

From Less than (If any)
2 LCD 10 Nos. 7000
10 Nos 50 Nos. 6500
50 Nos. 90 Nos. 6000
90 Nos. 5500

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 Goods sold to ABC Ltd. (Sundry Debtors)
Name of item Qty. Rate Discount Amount
Mobile 15 8000 10% 108000

Receipt Amount from ABC Ltd.

Cr. ABC Ltd. 108000
Dr. Cash 108000
Goods sold to ABC Ltd. (Sundry Debtors)
Name of item Qty. Rate Discount Amount
LCD 50 6000 30000

Receipt Amount from ABC Ltd.

Cr. ABC Ltd. 30000
Dr. Cash 30000

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 Enable zero value transaction
Activation => Gateway of Tally →Alter→Voucher type →Sales →
Enable zero value transaction
Creation => Gateway of Tally → Inventory Info → Stock item → Create
Name = Mobile
Unit = Nos
Quantity Rate Per Value
Opening balance 100 Nos. 5000 Nos. 500000
Question =>
Goods sold to XYZ Ltd.
Mobile – 10 Nos. @ 8000/- Nos.
1 Pendrive is free with 1 Mobile
Voucher Entry
=> Gateway of Tally → Accounting voucher → Sales voucher
Party A/c Name = ABC Ltd.
Name of Item Quantity Rate Amount
Mobile 10 Nos. 8000 80000
Pendrive 10 Nos.
Page Up → Ctrl+ P (Print)
Alt + Z (zoom in the preview)

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 Use Separate Actual and billed quantity column
Activation => F11 →Use separate actual and billed quantity column → Yes
Creation => Gateway of Tally → Create→ Inventory Masters→ Stock item

Name – Computer
Unit - Nos.
Quantity Rate Value
Opening balance 100 Nos. 20000 2000000

Question =>
Goods sold to XYZ Ltd.
Computer 20 Nos. @ 25000/ Nos.
(1 Computer is free with 20 Computers)
(Actual shipped qty. – 21 Nos.)
(Billed qty. – 20 Nos.)

Voucher Entry => Gateway of Tally → Accounting Voucher

↓
F8 – Sales Voucher
Party A/c Name: XYZ Ltd.
Name of item Quantity Rate Amount
Actual Billed
Computer 21 20 2500 500000

Page up → Ctrl + P [Print]

Alt + Z [ Zoom in the preview]

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 Print Company Logo
Activation => Alt + P Print → Configuration→ Company Details→ Include Company Logo
Include Company Logo – Yes

Specify the Path –

Copy the Path from File Explorer→ Window + E → Pictures → Right click on the picture

→ Properties → Copy the location → Paste the path

Important Points:

• The company logo must be in BMP format for Tally Prime to use it.
• The recommended logo size is 96 pixels width x 80 pixels height for optimal printing
quality.

Goods sold to XYZ Ltd.

Computer 20 Nos. @ 25000/ Nos
Voucher Entry => Gateway of Tally → Accounting Voucher
↓
F8 – Sales Voucher
Party A/c Name: XYZ Ltd.
Name of item Quantity Rate Amount

Computer 20 2500 500000

Page up → Ctrl + P [Print]

Alt + Z [ Zoom in the preview]

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 Batch Wise Details
Activation → F11→ Maintain batch wise details → Yes
Maintain expiry dates for batches → Yes
Creation → Gateway of Tally→ Inventory Info →Stock item→ Create
Name – Food Product
Unit – Pkt.
Maintain in Batches – Yes
Track manufacturing date – Yes
Use expiry Date – Yes
Now we can set batch no., expiry date, manufacturing dates for stock item in
purchase invoice.
Gateway of Tally
↓
Accounting voucher
↓
Purchase Voucher
Name of Item Qty. Rate Amount

Food Product 100 150/- 15000

Batch/ Lot no. Qty. Rate Amount

Mfg. Date Expiry date
F-01 50 150 7500
1/3/2024 1/7/2024
F-02 50 150 7500
1/5/2024 1/9/2024

Goods sold

Name of Item Qty. Rate Amount

Food Product 25 200/- 5000

Batch/ Lot no. Qty. Rate Amount

Mfg. Date Expiry date
F-01 25 200 5000
1/3/2024 1/7/2024

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 Check Report - Gateway of Tally→ Display→ Inventory→ books→ Batch

❖ After Expiry date we should destroy product

For destroying the product
Go to F8 Sales voucher
F12- F12- Allow use of expiry batches for stock item → Yes
Entry will be done after expiry date of stock item in journal voucher
Gateway of Tally→ Accounting voucher→ F7 Journal→ voucher Date – 2/7/2024
Dr. Obsolete A/c 3750
Cr. Purchase A/c 3750

Name of item quantities Rate Amount

Food product 25 nos. 150 Nos. 3750

Now the closing value 0

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 Purchase order processing
Activation => Gateway of Tally→Alter→Voucher Type→Purchase order→Yes
Receipt note – Yes
Rejection out – Yes

To create Purchase Order -→ Gateway of Tally→ Vouchers→F10 Other Voucher

Ctrl + F9 Purchase order

Party name: Abc Ltd. [Sundry Creditors] Order no – PO – 01

Name of item quantities Rate Amount

Mobile 15 nos. 5000 Nos. 75000

For receiving a note against order

Alt + F9 Receipt Note

Name of item quantities Rate Amount

Mobile 15 nos. 5000 Nos. 75000

For rejection items from order (Optional)

Ctrl + F5 Rejection Out
Name of item quantities Rate Amount
Mobile 2 nos. 5000 Nos. 10000

For sending goods against order

F9 Purchase Voucher
Name of item quantities Rate Amount
Mobile 13 nos. 5000 Nos. 65000

Tils Education www.tilseducation.com 31

 For payment made to party

F5 Payment voucher
Dr. ABC Ltd. 65000
Cr. Cash 65000
Check outstanding reports-
Gateway of Tally
↓
Display
↓
Statement of Inventory
↓
Purchase order outstanding

Tils Education www.tilseducation.com 32

 Sales Order Process
Activation=> Gateway of Tally→Alter→Voucher Type→Sales order→Yes
Delivery note→ Yes
Rejections out→ Yes
Create stock item with opening balance for receiving order.
Name – Mobile
Unit – Nos.
For receiving order from party→ Gateway of Tally→ F10 Other Vouchers

Ctrl + F8 – Sales Order

Party A/c Name- XYZ Ltd. Order No. – 1

Name of item Quantity Rate Amount
Mobile 10 nos. 8000 Nos. 80000

For sending note for order to party

Alt + F8 – Delivery Note
Reference no.: 1
Party A/c Name: XYZ Ltd.
Order no: 1
Name of item Quantity Rate Amount
Mobile 10 nos. 8000 Nos. 80000

For rejection of item by party (optional)

Ctrl + F6 – Rejection In
Name of item Quantity Rate Amount
Mobile 2 nos. 8000 Nos. 16000

Tils Education www.tilseducation.com 33

 For sending goods to party against order
F8- Sales Voucher
Name of item Quantity Rate Amount
Mobile 8 nos. 8000 Nos. 64000

Receipt whole amount from XYZ Ltd.

F6 – Receipt voucher
Cr. XYZ Ltd. 64000
Dr. Cash 64000
Check outstanding reports-
Gateway of Tally
↓
Display
↓
Statement of Inventory
↓
Sales order outstanding

Tils Education www.tilseducation.com 34

 Bills of Material [BOM]
Activation => Gateway of tally→Create→Stock item→F12→
Enable Component List Details → Yes
• Manufacturing of Bags by using Clothes
Gateway of Tally→ Inventory Info →Stock group→ Create

I. Name: Raw material

ii. Name: Finish goods

Gateway of Tally→ Inventory Info →Stock Item→ Create

Name – Cloth
Under – Raw material
Unit – mtr.
Accept
Name – Bag
Under – Finish Goods
Unit – Pcs.
Set Component [BOM] → Yes
Component of Bags
BOM Name: Components of Bags
Unit of Manufacture: 1 Pcs.
Item Quantity
Cloth 1.5 mtr.
• Raw material Purchase (Cloth)
1000 mtr. @100/-
Manufacturing of Bags (Qty. 100 pcs.) => Gateway of Tally →Vouchers→ Alt + F7
(Stock journal) → Ctrl + H (Change mode) → Use for manufacturing journal

Tils Education www.tilseducation.com 35

 Name of Product Bags
Name of BOM Components
Quantity 100 Pcs.
Component (Consumption)
Name of item Qty. Rate Amount -Cost of Components – 15000
Clothe 150 100 15000
Type of Add. Cost Wages- 5000

Effective cost – 20000

Effective rate of primary item

– 200/ mtr.

Payment to Job worker

Dr. Wages 5000
Cr. Cash 5000
Check report –

Gateway of tally
↓
Stock summary

Tils Education www.tilseducation.com 36

 Job Costing
Activation => F11→ Enable job order processing → Yes
Enable job costing→Yes
Stock Group creation => Gateway of Tally → Inventory Master → Stock group → Create
1. Name: Raw material
2. Name: Finish goods
Accept
Godown creation => Gateway of Tally → Inventory Master → Godown → Create
1. Name – Raw material Godown
2. Name – Finish good Godown
3. Name – Job worker Godown
Our stock with third party → Yes
Accept
Stock Item creation => Gateway of Tally → Inventory Master → Stock item → Create
1. Name – Cloth
Under – Raw material
Unit – mtr.
Quantity rate amount
Opening Balance 10000 mtr. 50/- mtr. 500000

2. Name – Bag
Under – Finish Goods
Unit – Pcs.
Set Component [BOM] → Yes
Component of Bags
BOM Name: Components of Bags
Unit of Manufacture: 1 Pcs.
Item Godown Quantity
Cloth Raw material godown 1.5 mtr.

Accept

Tils Education www.tilseducation.com 37

 Activation of Material Out and Material In Voucher

=> Gateway of Tally → Alter → Voucher type→ Material In

Name - Material In
Use for job work → Yes
Allow consumption → Yes
Accept
Name – Material Out
Use for Job Work – Yes
Accept
For placing Job order to party
 Gateway of Tally→ Vouchers→ F10→Others voucher→ Job Work Out Order

Party A/c Name- ABC Ltd. Order no. – J/01

Name of item Qty. Rate
Bags 100 Pcs. 200
Godown Finish Good Godown

For Sending Raw Material for Making Finish Good

F10→ Others voucher → Material Out

Party A/c Name- ABC Ltd. Order no. – J/01

Name of item Qty. Rate
Cloth 150 mtr. 50 mtr.
Godown Job Worker Godown

For Receiving finish good

F10→ Others voucher→ Material In

Party A/c Name- ABC Ltd. Order no. – J/01

Name of item Qty. Rate
Bag 100 Pcs. 200 Pcs.
Godown Finish Good Godown

Tils Education www.tilseducation.com 38

 For Payment of Job Work Charges to ABC Ltd.
F7 - Journal Voucher
Dr. Job Work Charges 3500
Cr. ABC Ltd. 3500

New Ref. jrnl/01 3500

For Payment made to Party
Dr. ABC Ltd. 3500
Cr. Cash 3500

❖ Check Godown report-

❖ Check Job work Report –
=> Gateway of Tally → Display more Reports→ Job work reports

Tils Education www.tilseducation.com 39

 Point of Sale [POS]
Leadger creation => Gateway of Tally→ Accounting Masters→ Ledger→ Create
1. Name- Reliance
Under- Sundry Debtors
2. Name- HDFC
Under- Bank a/c
3. Name- Sales
Under- Sales a/c
4. Name- GST a/c
Under- Duties & Taxes
Create voucher type => Gateway of Tally→ Accounting Masters→ Voucher Type→Create
Name – Point of Sale
Select type of voucher- Sales
Printing
Print voucher after saving – Yes
Use for POS invoicing – Yes
Message to Print (1) – Thank you
Message to Print (2) – Visit again
Name of class
↓
POS
Default Ledger Accounts for POS invoicing:

Enable Ledger name

Gift Voucher Yes Party’s Name
Credit/Debit Card Yes HDFC
Cheque Yes HDFC
Cash Yes Cash

Default accounting Allocation for all items in invoice

Ledger name %
Sales a/c 100%
Additional accounting entries
Ledger Type Value R. Method R. Limit
name
GST On total sales 18% Normal R. 2

Tils Education www.tilseducation.com 40

 Create stock item with opening balance
Opening Name of item Qty. Rate Amount
balance Mobile 100 5000 500000

Gateway of Tally→ Accounting voucher→ F8 Point of sale

Party’s Name
Name of item Qty. Rate Amount
Mobile 15 Nos. 8000 Nos. 120000
GST 5% 6000
15 Nos. 126000

Gift Voucher Reliance 2000

Credit/Debit card HDFC 40000
Cheque HDFC 80000
Cash Cash 4000

Tils Education www.tilseducation.com 41

 Payroll
Activation => F11→ Maintain Payroll →Yes
Enable Payroll Statutory→ Yes
Employee Group Creation => Gateway of Tally→ Create→ Payroll Master→ Employee Group
1. Name – Accounts Department
2. Name – Sales Department

Employee Creation => Gateway of Tally→ Create→ Payroll Master→ Employee

1. Name – Sumit
Under- Sales Department
Date of joining – 1/5/2016
Define salary details – No

General Details
Employee no. – 1
Designation – Manager
Function – Management

2. Name – Amit
Under – Accounts Department
Date of joining – 1/4/2018
Define salary details – No

General Details
Employee no. - 2
Designation – supervisor
Function – supervising

Unit → Create
1. Symbol – hrs.
Formal Name - Hours
No. of decimal places – 2
2. Symbol – min
Formal Name - Minute
No. of decimal places – 0
Type – Compound
hrs of 60 min

Tils Education www.tilseducation.com 42

 Attendance and Production Type→ Create
I. Name – Present
Under – Primary
Attendance Type – Attendance/ Leave with pay
Period Type – Days
II. Name – Absent
Under – Primary
Attendance Type – Leave Without Pay
Period type – Days
III. Name – Overtime
Under – Primary
Attendance type – Production
Period type – hrs of 60 min
IV. Name – Box
Under – Primary
Attendance type – Production
Period type – hrs of 60 min
V. Name – My calendar
Under – Primary
Attendance type – use defined calendar type
Period type – Days

Pay Head [Earning for Employees]

1) Name - Basic Salary

Pay head type – Earning for employee
Income type – Fixed
Under – Indirect expenses
Affect net salary – Yes

Use calculation for Gratuity – Yes

Set/alter income for details – Yes
↓
Income tax details
Income tax components: Basic salary
Tax calculate Basis: On project value
Deduct TDS across: Yes

Tils Education www.tilseducation.com 43

 Calculation type – On attendance
Attendance/ leave with pay – Not applicable
Leave without pay – Absent
Calculation period – Months
Basis of calculation – as per calendar period
Rounding method – Normal rounding
Limit – 1

2) Name – Dearness allowance (8%)

Pay head type - Earning for employee
Income type – Fixed
Under – Indirect expenses

Affect net salary – Yes

Use calculation for Gratuity – Yes
Set/alter income for details – Yes

Income tax details

Income tax components: Dearness allowance
Tax calculate Basis: On project value
Deduct TDS across: Yes

Calculation type – As computed value

Calculation period – Month
Rounding method – Normal rounding
Limit – 1
Compute – On specified formula
Add pay head – Basic Salary
Slab type – Percentage Value – 8%
3) Name – House Rent Allowance (40%)
Pay head type- Earning for employee
Income type – Fixed

Under – Indirect expenses

Affect net salary – Yes
Income tax details
Income tax components: House Rent allowance
Tax calculate Basis: On project value
Deduct TDS across: Yes

Tils Education www.tilseducation.com 44

 Calculation type – Computed value
Period – Month
Rounding method – Normal rounding
Limit – 1
Compute – On specified formula
Add pay head – Basic Salary
Slab type – Percentage value – 40%
4) Name – Conveyance (transport allowance)
Pay head type - Earning for employee
Income type – Fixed
Under – Indirect expenses
Affect net salary – Yes

Income tax details

Income tax components: Transport allowance
Tax calculation Basis: On project value
Deduct TDS across: Yes

Calculation type – Flat rate

User defined value
Press – F12 to remove it ESI
Exclude pay head for ESI eligibility – No
Exclude for ESI eligibility – Yes
Rounding method – Normal rounding
Limit – 1
5) Name – Overtime
Pay head type- Earning for employee
Income type – Fixed
Under – Indirect expenses
Affect net salary – Yes

Income tax details

Income tax components: Other earning fully taxable
Tax calculation Basis: On actual value
Deduct TDS across: Yes

Exclude for ESI eligibility – Yes

6) Name - Variable Pay
Pay head type – Earning for Employee
Income type – Variable Pay
Tils Education www.tilseducation.com 45
 Under – Indirect Expenses
Affect net salary – Yes
Income tax details
Income tax components: Other earning fully taxable
Tax calculation Basis: On actual value
Deduct TDS across: Yes

Exclude for ESI eligibility – Yes

Calculation type – as user defined value
Rounding method – Normal Limit – 1

Pay head [Deduction from Employee]

1) Name – Canteen deduction
Pay head type – Deduction from employee
Under – Indirect income
Affect net salary – Yes
Calculation type – as per user defined
2) Name – Advance Salary deduction
Pay head type – Loans & advances
Under – Advance Salary
Affect net salary – Yes
Calculation type - As per user defined value

Pay- head [Statutory deduction pay head]

1) Name – Income tax
Pay head type – Employees Statutory deduction
Statutory pay type – Income tax
Under – current liabilities
Affect net salary – Yes
Calculation type – As per income tax slab
Calculation period – Months
Rounding method – Upward Limit – 1

2) Name –PF deduction (12%)

Pay head type – Employees Statutory deduction
Statutory pay type – PF account no. 1
Under – current liabilities
Affect net salary – Yes
Tils Education www.tilseducation.com 46
 Calculation type – As computed value
Calculation period – Months
Rounding method – Normal Limit – 1
Compute – On Specified formula
Add pay head – Basic Salary
Add pay head – dearness allowance
Slab type – Percentage 12%

3) Name –ESI deduction (1.75%)

Pay head type – Employees Statutory deduction
Statutory pay type –Employee state insurance
Under – current liabilities
Affect net salary – Yes
Calculation type – As computed value
Calculation period – Months
Compute – On Specified formula
Add pay head – Basic Salary
Add pay head – dearness allowance
Add pay head – House rent allowance
Slab type – Percentage 1.75%

Pay head [Statutory contribution]

1) Name – EPS contribution (8.33%)
Pay head type – Employer Statutory contribution
Statutory pay type – EPS account No. 10
Under – Indirect Expenses
Affect net salary – No
Calculation type – As computed value
Calculation period – Months
Compute – On Specified formula
Add pay head – Basic Salary
Add pay head – dearness allowance
Slab type – Percentage 8.33%

2) Name –PF contribution (3.67%)

Pay head type – Employer Statutory contribution
Statutory pay type – PF account (A/c no. 1)
Under – Indirect Expenses
Tils Education www.tilseducation.com 47
 Affect net salary – No
Calculation type – As computed value
Calculation period – Months
Compute – On Specified formula
Add pay head – Basic Salary
Add pay head – dearness allowance
Add pay head – House rent allowance
Slab type – Percentage 3.67%

3) Name – ESI contribution (4.75%)

Pay head type – Employer Statutory contribution
Statutory pay type – Employees state insurance
Under – Indirect Expenses
Affect net salary – No
Calculation type – As computed value
Calculation period – Months
Compute – On Specified formula
Add pay head – Basic Salary
Add pay head – dearness allowance
Slab type – Percentage 4.75%

Pay head [Other Pay heads]

# Gratuity
𝑺𝒂𝒍𝒂𝒓𝒚
Q. 𝒘𝒐𝒓𝒌𝒊𝒏𝒈 𝒅𝒂𝒚𝒔 × 𝒅𝒂𝒚𝒔 𝒊𝒏𝒕𝒐 𝒔𝒍𝒂𝒃 𝒑𝒆𝒓𝒊𝒐𝒅 × 𝑺𝒆𝒓𝒗𝒆𝒅 𝒘𝒐𝒓𝒌𝒊𝒏𝒈
𝒊𝒏 𝒎𝒐𝒏𝒕𝒉

Example – Last drawn salary [Basic salary & DA] of Mr. Rohit Sharma for the
example is Rs. 60000/- and he was worked for 25 years.

60000
Ans. × 15 × 25 → 8.65 𝐿𝑎𝑘ℎ
26
a) Name – Gratuity
Pay head type – Gratuity
Slab rate details for gratuity calculation
Gratuity days of a month – 26 days
Number of month Eligible days for gratuity
From to calculation per year
1 60 0
61 120 15
121 15
Tils Education www.tilseducation.com 48
 Under – Provision
Set/alter income tax details – Yes

Income tax components – Gratuity

Tax calculation basic – On actual value
Deduct TDS across period - No

b) Name – Reimbursement
Pay head type – variable
Under – Indirect Expenses
Affect Net salary – Yes
c) Name – Bonus
Pay head type – Bonus
Under – Indirect Expenses
Affect net salary – Yes
Set/Alter income details – yes
Define Salary details→ Gateway of Tally→ Payroll Master →Salary details →Define

Name Accounts Department

Under Primary
Effective Pay head type Rate Per
date
1/4 Basic Salary 10000 Month
Dearness allowance (8%)
House rent allowance (40%)
Conveyance
Overtime
Variable pay
Bonus
Canteen deduction
Advance salary deduction
Income tax
PF Deduction (12%)
ESI Deduction (1.75%)
EPS Deduction (8.33%)
PF Contribution (3.67%)
ESI Contribution (4.75%)
Gratuity

Tils Education www.tilseducation.com 49

 Next – Sales Department
Copy from Employee Group
Employee – copy from their parent value

Vouchers→ F10 →Others voucher→ Attendance

Employee name Employee no. Attendance type Value Unit

Amit Absent 3 Days
Amit Overtime 2 Hrs.
Sumit Absent 2 Days
Sumit Overtime 1 Hrs.

Payroll Voucher→ F10 Others voucher→ Ctrl + F4 [Payroll]

Ctrl + F [Payroll Autofill]
Process for – User defined
From – 01/04
To - 01/05
Employee/ Groups- All Items
Sort by – Employee name
Payroll/ Cash/ Cash ledger- Cash/Salary payable
If you want to use “Salary Payable” Press Alt + C
Name – Salary Payable
Pay head type – Not applicable
Under – Current Liabilities
Press Enter-
[User defined value]- Fill amount according to you

Check employee Salary Slip –

Gateway of Tally → Display → Payroll Reports → Statement of Payroll →Pay Slip

Tils Education www.tilseducation.com 50

 TDS [Tax Deducted at Source]
Activation → F11 →Enable Tax deducted at source →Yes

Creation => Gateway of Tally → Create→ Accounting Masters →Ledger

Name – ABC Ltd.

Under – Sundry creditors
Maintain balance bill by bill – Yes
Statutory Information
Is TDS Deductible – Yes
Deductee type- Individual/ HUF- Resident
Deduct TDS in same voucher: Yes
TAX Registration Details
PAN no. AAAAA0032A
Name – Rent Expenses
Under – Indirect Expenses
Statutory Information
Is TDS Applicable: Applicable
Nature of Payment: New Category

Name – Rent of Land and Building

Section – 194I
Payment code – 4IB
Rate - 10%
Threshold Limit – 180000

Name – TDS on Rent

Under – Duties and Taxes
Type of duty/ tax: TDS
Nature of Payment: Rent of Land and building

Tils Education www.tilseducation.com 51

 F7 Journal Voucher
Dr. Rent Expenses 200000
Cr. ABC Ltd. 180000
Cr. TDS on Rent 20000

F5 Payment Voucher
Dr. ABC Ltd. 180000
Cr. Cash 180000

F5 Payment Voucher
Ctrl + F – State Payment
↓
Statutory Payment
Tax Type – TDS
Period From – 01/04 to 01/07
Deduction till Date – 01/07
Section – 194I
Nature of Payment – Rent of Land and building
Deductee Status – Non-Company
Cash / Bank - Bank

Particulars Account
TDS on Rent 20000
Reports –
Gateway of Tally→Display → Statutory Reports → TDS Reports →Alt + F2 [Period]
From – 1/04/ to 1/07
Payment Details
Included Transaction 0
Not Included Transaction 1 ✓

Balance Payable 20000

Transaction Related Exceptions
Duty payment entries
Bank details are not available in payment voucher 1 ✓
TDS Challan Reconciliation

Tils Education www.tilseducation.com 52

 Date Particulars From to Sec. Deductee Type Resident
02/07 TDS on Rent 01/04 01/07 194I Non-company Resident
Cheque No. Cheque Date BRS Challan No.
001100 02/07 1234567 01
Bank – BOB Branch – Main Bhilwara

Nature of Payment Section Payment Code

Rent of Land, Building or Furniture 194-I 4IB
Rent of Plant, Machinery or Equipment 194-I 4IB
Interest other than Interest on Securities 194-A 94A
Interest on securities 193 193
Commission on Brokerage 194-H 94H
Commission on Sale of lottery tickets 194-G 94G
Payment to Contractors (other than Adv.) 194-C 94C
Payment to contractors (Advertisement) 194-C 94C
Payment to Sub-Contractor 194-C 94C
Winning from Horse Race 194-BB 4BB
Winning from lotteries and cross puzzles 194-BB 94B

Tils Education www.tilseducation.com 53

 TCS [Tax Collected at Source]
Activation → F11 →Enable Tax collected at source →Yes
Company TCS Collector Details
TAN registration number :
Collector Type : Company
Collector branch/division :
Set/Alter details of person responsible :
Accept

Ledger Creation => Gateway of Tally → Create→ Accounting Masters →Ledger

1. Name - XYZ LTD
Under – Sundry Debtors
Is TCS Applicable – Yes
Buyer/Lessee Type – Company -Resident
Tax Registration Details
Registration type : Regular
GSTIN/UIN :
2. Name – Sales
Under – Sales A/c
GST applicability – Applicable
Set/Alter other statutory details – Yes
Is TCS Applicable – Applicable
Nature of Goods – Sales of Exceeding Above 50 Lakh
Section - 206C
Rate for Individual/HUF
With PAN - 0.10%
Without PAN - 5%
3. Name – CGST
Under – Duties & Taxes
4. Name – SGST
Under – Duties & Taxes
5. Name – TCS
Under – Duties & Taxes
Type of Duty/Tax – TCS
Nature of goods – Sales Exceeding above 50 Lakh

Tils Education www.tilseducation.com 54

 Goods Sold to XYZ LTD
Party Name - XYZ LTD
Sales ledger – Sales GST
Name of Item Quantity Rate Amount
Mobile 700 20000 1,40,00,000

CGST 12,60,000
SGST 12,60,000
TCS 8,26,000
Accept
Send this Invoice to XYZ LTD

Tils Education www.tilseducation.com 55

 Goods and Service Tax [GST]
Intrastate Transaction
Activation→ F11→Enable Goods and Service Tax→ Yes
State – Rajasthan
Registration type – Regular
GST/IN/VIN – 08AAAAA1234AIZW
Applicable from – 01/07
Ledger Creation→ Gateway of Tally→ Create → Ledger
1) Name – ABC Ltd.
Under – Sundry Creditors
Maintain balance bill by bill – Yes
2) Name – XYZ Ltd.
Under – Sundry Debtors
Maintain balance bill by bill – Yes
3) Name - Purchase
Under – Purchase Account
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
4) Name – Sales
Under – Sales Account
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
5) Name – CGST
Under – Duties and Taxes
Type of duty/Tax – GST
Tax type – Central tax
Percentage of calculation – 0%
Rounding method – Normal Rounding Limit – 1

6) Name – SGST
Under – Duties and Taxes
Type of duty/tax – GST
Tax type – State tax
Percentage of calculation – 0%
Tils Education www.tilseducation.com 56
 Rounding method – Normal Rounding Limit – 1

Stock Group Creation → Gateway of Tally → Create → Stock Group

1) Name – Electronic item

Set/alter GST details – Yes
GST details for Stock Group
HSN/SAC details –
Description – Electronic item
HSN/SAC – 12345
Taxability – Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%
2) Name – Furniture item
Set/alter GST Details – Yes
GST details for Stock Group
HSN/SAC details –
Description – Furniture item
HSN/SAC – 67890
Taxability – Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%

Stock item creation→ Gateway of Tally → Create → Stock Item

1) Name – Mobile
Under – Electronic item
Unit – Nos.
Statutory Information
GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
2) Name – Table
Under – Furniture item
Units – Nos.
Statutory Information
GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
Tils Education www.tilseducation.com 57
 F9 Purchase Voucher

Invoice No. 123

Party Name ABC Ltd.
Name of items Qty. Rate Amount
Mobile 10 Nos. 5000 50000
Table 20 Nos. 1500 30000
Total 80000

CGST 7200
SGST 7200
30 Nos. 94400

F8 Sales Voucher

Invoice No. 456

Party Name XYZ Ltd.
Name of items Qty. Rate Amount
Mobile 10 Nos. 8000 80000
Table 20 Nos. 3000 60000
Total 140000

CGST 12600
SGST 12600
30 Nos. 165200

F5 Payment Voucher
Dr. ABC Ltd. 94400
Cr. Cash A/c 94400
F6 Receipt Voucher
Cr. XYZ Ltd. 165200
Dr. Cash A/c 165200

Tils Education www.tilseducation.com 58

 Check balance sheet for tax report
If “Duties and Taxes” shows
→ Cr. Balance → Tax Payable
→ Dr. Balance → Tax Refundable
And there is showing Cr. Balance
↓
CGST 5400
SGST 5400
Tax Payment will be done on starting of next Qtr.
F5 Payment voucher → Ctrl + F→ State Payment
Dr. CGST 5400
Dr. SGST 5400
Cr. SBI 10800

Tils Education www.tilseducation.com 59

 Interstate Transaction
Activation→ F11→Goods and Service Tax→ Yes
State – Rajasthan
Registration type – Regular
GST/IN/VIN – 08AAAAA1234AIZW
Applicable from – 01/07

Ledger Creation→ Gateway of Tally→ Create → Ledger

1) Name – ABC Ltd.

Under – Sundry Creditors
Maintain balance bill by bill – Yes
State – Delhi
2) Name – XYZ Ltd.
Under – Sundry Debtors
Maintain balance bill by bill – Yes
State – Punjab
3) Name - Purchase
Under – Purchase Account
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
4) Name – Sales
Under – Sales Account
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
5) Name – IGST
Under – Duties and Taxes
Type of duty/tax – GST
Tax type – Integrated tax
Percentage of calculation – 0%
Rounding method – Normal Rounding Limit – 1

Tils Education www.tilseducation.com 60

 Stock Group Creation → Gateway of Tally → Create → Stock Group
1) Name – Electronic item
Set/alter GST details – Yes
GST details for Stock Group
HSN/SAC details –
Description – Electronic item
HSN/SAC – 12345
Taxability – Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%
2) Name – Furniture item
Set/alter GST Details – Yes
GST details for Stock Group
HSN/SAC details –
Description – Furniture item
HSN/SAC – 67890
Taxability – Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%
Stock item creation→ Gateway of Tally → Create → Stock Item
1) Name – Mobile
Under – Electronic item
Unit – Nos.
Statutory Information
GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
2) Name – Table
Under – Furniture item
Units – Nos.
Statutory Information
GST applicable – Applicable
Set/Alter GST details – No
Type of supply – Goods
Tils Education www.tilseducation.com 61
 F9 Purchase Voucher

Invoice No. 123

Party Name ABC Ltd.
Name of items Qty. Rate Amount
Mobile 10 Nos. 5000 50000
Table 20 Nos. 1500 30000
Total 80000

IGST 14400
30 Nos. 94400

F8 Sales Voucher

Invoice No. 456

Party Name XYZ Ltd.
Name of items Qty. Rate Amount
Mobile 10 Nos. 8000 80000
Table 20 Nos. 3000 60000
Total 140000

IGST 25200
30 Nos. 165200

F5 Payment Voucher
Dr. ABC Ltd. 94400
Cr. Cash A/c 94400
F6 Receipt Voucher
Cr. XYZ Ltd. 165200
Dr. Cash A/c 165200
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 Check balance sheet for tax report
If “Duties and Taxes” shows
→ Cr. Balance → Tax Payable
→ Dr. Balance → Tax Refundable
And there is showing Cr. Balance
↓
IGST 10800
Tax Payment will be done on starting of next Qtr.
F5 Payment voucher → Ctrl + F→ State Payment
Dr. IGST 10800
Cr. SBI 10800

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 Service Transaction
Activation→ F11→Enable Goods and Service Tax→ Yes
State – Rajasthan
Registration type – Regular
GST/IN/VIN – 08AAAAA1234AIZW
Applicable from – 01/04
Ledger Creation→ Gateway of Tally→ Create → Ledger
1. Name – BSNL
Under – Sundry Creditors
Maintain balance bill by bill – Yes
2. Name – Mukesh
Under – Sundry Debtors
Maintain balance bill by bill – Yes
3. Name – Purchase of telephonic service
Under – Purchase A/c
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – Yes
Tax rate details
Description – Telecom service
HSN code – 123456
Nature of Transaction – Purchase Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%

Type of Supply – Service

4. Name – Sales of educational service
Under – Sales A/c
Statutory Information
Is GST applicable – Applicable
Set/Alter GST details – Yes
Tax rate details
Description – Educational service
HSN code – 123456

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 Nature of Transaction – Sales Taxable
Integrated Tax Based on value 18%
Central Tax Based on value 9%
State Tax Based on value 9%
Type of Supply – Service
5. Name – CGST
Under – Duties and Taxes
Type of duty/Tax – GST
Tax type – State tax
Percentage of calculation – 0%
Rounding method – Normal Rounding Limit – 1
6. Name – SGST
Under – Duties and Taxes
Type of duty/tax – GST
Tax type – State tax
Percentage of calculation – 0%
Rounding method – Normal Rounding Limit – 1
F11→ F1 → Maintain Accounts Only → Yes
 This option will deactivate all inventory options and features
F9 Purchase Voucher
Invoice No. 123
Party Name BSNL
Particulars Rate Per Amount
Purchase of telephonic service 10000
CGST 900
SGST 900
Total 11800

F8 Sales Voucher

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 Invoice No. 123
Party Name Mukesh
Particulars Rate Per Amount
Sales of educational service 16000
CGST 960
SGST 960
Total 17920

F5 Payment Voucher
Dr. BSNL 11800
Cr. Cash 11800
F6 Receipt Voucher
Cr. Mukesh 17920
Dr. Cash 17920
Check balance sheet for tax report
If “Duties and Taxes” shows
→ Cr. Balance → Tax Payable
→ Dr. Balance → Tax Refundable
And there is showing Cr. Balance
↓
CGST 60
SGST 60
Tax Payment will be done on starting of next Qtr.
F5 Payment voucher → Alt + S → State Payment
Dr. CGST 60
Dr. SGST 60
Cr. SBI 120

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 Backup and Restore
 Creating a backup in Tally Prime is essential to avoid data loss.
Gateway of Tally→ Alt + Y Data→ Backup
• Specify the Backup Path
 Source: This is the location where your Tally data is stored. Tally automatically
detects this location.
 Destination: Specify the folder or drive where you want to store the backup.
(e.g., an external drive, a cloud folder, etc.)
 You can manually type the path or click on the field and choose the folder.
• Select the Companies
• Press Ctrl + A to accept, and the backup process will begin.

Restore Data in Tally Prime

o From the Gateway of Tally, press Alt + Y or go to Data (menu on the top).
o Specify the Restore Path
o Select the Company for Restoration
o Press Ctrl + A to accept the restore process.

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 Bank Reconciliation Statement
• These are some conditions we need to do bank reconciliation
o Outstanding cheque
o Check collection delay
o Check dishonored
o Direct deposits in Bank
o Fixed payment instruction
Gateway of Tally → Banking→ Bank Reconciliation Statement →Put all the dates

Advance Security Control

Activation – Gateway of tally → Alt + K → Security
Control user access to company data →Yes
Username – Tils
Password – 123
Alt + K →User Roles
Security levels for company
[By default, there are four security level we can create our levels]
List of security levels
Data entry
Tally. Net User
Tally.Net Auditor
Tally.Net Owner
Data operator 1
Disallow the following facilities Allow the following facilities
Data operator 2
Disallow the following facilities Allow the following facilities

Alt + K→ Users and passwords

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 List of users for company
User roles Username Password
Data operator 1 Amit 456
Data operator 2 Sumit 789

Alt + K → Change User

We can put user name and password
Alt + K → Change Password
We can change password for user

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 Bank Loan & EMI Entries
Ledger Creation→ Gateway of Tally→ Create → Ledger
1. Name – BOB Bank
Under – Bank A/c
2. Name – PNB Bank Loan
Under – Loan Liability
3. Name – Processing fee
Under – Indirect Expenses
Set/Alter GST details – Yes
Rate- 18%
4. Name - PNB Loan Payable
Under – Current Liabilities
5. Name – Interest paid
Under – Indirect Expenses
6. Name – CGST
Under – Duties & Taxes
7. Name – SGST
Under – Duties & Taxes
❖ Loan taken from PNB Bank
F6 Receipt Voucher
Dr. BOB Bank 100000
Cr. PNB Bank Loan 100000

❖ Payment of processing fee

F5 Payment Voucher
Dr. Processing fee 1000
Dr. CGST 90
Dr. SGST 90
Cr. Cash 1180

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 Make a Journal Entry on the end of the month
F7 Journal Voucher
Dr. PNB Bank Loan 32247
Dr. Interest Paid 3333
Cr. PNB Loan Payable 35580
Make a Payment Entry in the beginning of month
F5 Payment Voucher
Dr. PNB Loan Payable 35580
Cr. BOB Bank 35580

We have to make this entry till the loan amount is cleared.

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 Some Basic Shortcut Keys for Tally Prime
1 Ctrl + A To Accept Entry
2 Alt + F1 To show Details
3 Alt + F2 To Change Current Period
4 F2 Date change
5 Alt + C To create ledger/ Stock item at a voucher screen
6 Alt + D To Delete a voucher/ master
7 ESC To Go Back
8 Ctrl + Q Exits
9 Alt + K Company info
10 W If there is a single line below a word, then press it with Alt.
11 Q If there is a double line below a word, then press it with Ctrl.
12 F3 Change Company
13 Ctrl + F3 Shut Company
14 Alt + F3 Select company
15 F11 Features
16 Ctrl + P Printout
17 Alt + G Go to / Switch to
18 F10 Others vouchers
19 Alt + F6 Credit note
20 Alt + F5 Debit note
21 Ctrl + H Change mode (Item, Invoice mode or as voucher)
22 Vouchers F4: Contra
F5: Payment
F6: Receipt
F7: Journal
F8: Sales
F9: Purchase

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