ITT Lab Practice Manual

Hands-On Practical Training (HOT) for ITT Course

Version 2.0 January 2014

IT Directorate
The Institute of Chartered Accountants of India
New Delhi

Table of Contents
A. Introduction ................................................................................................................................. 3
B. MS-Word 2010 ............................................................................................................................ 3
Shortcut Keys ........................................................................................................................... 3
Lab Exercises ........................................................................................................................... 7
Case Studies ........................................................................................................................... 28
CS1: Inventory Valuation using Weighted Average method ................................................. 28
CS2: Confirmation of Balances using Mail Merge.......................................................... 31
CS3: GAIL Annual Report ..................................................................................................... 32
C. MS-Excel 2010 ......................................................................................................................... 34
Shortcut keys .......................................................................................................................... 34
Lab Exercises ......................................................................................................................... 40
Excel Tips............................................................................................................................... 70
Case Studies ........................................................................................................................... 82
CS1: Break Even Analysis/ Marginal Costing Case Study .................................................... 82
CS2: Depreciation Case Study SLN, WDV, SYD, DB, DDB. ........................................... 93
D. MS-Access 2010 .105
Case Studies..105
CS1: A simple example on Library to understand the concept of Databases,
Forms and Reports creation .107
CS2: ITT Students Database Management...109
CS3: To introduce One-to-Many relationship concept116
For Practice..117
E. Accounting Software . ........................................................................................................... 120
Shortcut Keys ....................................................................................................................... 120
Lab Exercises ....................................................................................................................... 125

A.

INTRODUCTION

This ITT Lab Practice Manual aims to bring greater Hands-On Practical Training (HOT) orientation to
the ITT Course being conducted at the ITT Centers of the Institute. This manual contains case
studies and examples compiled by the ITT Department of Board of Studies. ITT Centers are
advised to make use of these HOT examples as a part of the training to be provided to the
Students and also arrange to contribute similar case studies/ examples by each faculty
member every month, for incorporation in the next version. The ITT Faculty Members are also
requested to provide views and suggestions to be included in revised HOT, based on their
experience in use of this manual, in their monthly submission of such practical examples.

B.

MS-WORD-2010

2010 Word processors like MS-Word 2010 in MS-Office enable us to present our letters and
reports in a presentable form. While, we as accountants and auditors are primarily concerned
with the financial/ accounting analysis and reporting, it is often essential for us to also provide
reports and documents which are presentable, where MS-Word processor is very useful. For
example, this practice guide giving practical hands-on training exercises has been developed
using this software. Some of the typical useful facilities of word processors are as follows:

Producing professional-looking documents;

Comprehensive set of tools for creating and formatting documents;

Rich reviewing, commenting, and comparison capabilities to help the users to

quickly gather and manage feedback from colleagues, and also create reports etc.

Advanced data integration ensuring that documents stay connected to important sources of
business information. For example, we can integrate financial data in MS-Excel 2010 files
into a report, which is updated every time you open the word file for latest updated data.

This compilation will help students in getting a hands-on experience on the software which
will enable them in making good-quality professional documents.
Shortcut Keys
The following is a compilation of MS-Word Short Cut keys for performing typical tasks in MS-Word,
which can be used to quickly accomplish tasks without having to go through tedious menu options.

Shortcut key
CTRL+SHIFT+A
ALT+F10
ALT+F5
ALT+CTRL+1

Description
Format all letters as capitals
Application Maximize
Application Restore
Apply Heading1 style

ALT+CTRL+2
ALT+CTRL+3
CTRL+SHIFT+N
CTRL+SHIFT+L

Apply Heading2 style

Apply Heading3 style
Apply Normal style
Apply List Bullet style

CTRL+B or CTRL+SHIFT+B
CTRL+SHIFT+F5
CTRL+PAGE DOWN
CTRL+PAGE UP
CTRL+E
SHIFT+F3
ALT+F4
CTRL+SHIFT+ENTER
CTRL+C or CTRL+INSERT

Bold
Opens the Bookmark dialog box
Go to Next page
Go to Previous page
Center Paragraph
Change Case
Close or Exit
Insert a Column Break
Copy

CTRL+SHIFT+C
CTRL+X or SHIFT+DELETE
BACKSPACE
DELETE
CTRL+BACKSPACE
CTRL+DELETE
ALT+SHIFT+F7
CTRL+W or CTRL+F4
CTRL+F10

Copy Format
Cut

ALT+CTRL+S
ALT+SHIFT+C
CTRL+SHIFT+D
CTRL+SHIFT+END
CTRL+END
END
SHIFT+END
ALT+CTRL+D
F8

Document Split

CTRL+F
CTRL+D or CTRL+SHIFT+F
CTRL+SHIFT+P
ALT+CTRL+F
SHIFT+F5 or ALT+CTRL+Z
CTRL+G or F5
CTRL+SHIFT+. or CTRL+SHIFT+>
CTRL+]

Opens the Find dialog box

Opens the Font dialog box
Select Font Size
Insert Footnote
Go Back
Opens the Go To dialog box

CTRL+T
ALT+SHIFT+R
F1
CTRL+K

Delete one character to the left

Delete one character to the right
Delete one word to the left
Delete one word to the right
Translate to a different language
Closes the active window
Document Maximize
Remove the document window split
Double Underline
Select till End of Document
Go to End of Document
Go to End of Line
Select till End of Line
Insert Endnote
Extend Selection

Grow Font
Grow Font One Point
Hanging Indent
Copy the header or footer used in the previous section of the
Opens Word Help
Insert a Hyperlink

CTRL+M
CTRL+I or CTRL+SHIFT+I
CTRL+J
CTRL+L
SHIFT+DOWN
SHIFT+UP
ALT+F8
ALT+SHIFT+K
ALT+SHIFT+E
ALT+SHIFT+N
ALT+SHIFT+M
ALT+SHIFT+F
ALT+SHIFT+I

Indent
Italic
Justify Paragraph
Left align Paragraph
Select Line Down
Select Line Up
Opens the Macros dialog box
Preview a Mail Merge
Edit a Mail Merge data document
Merge a Document
Print the merged document
Insert a merge field
Mark a Citation

ALT+SHIFT+X
ALT+SHIFT+O
F10
CTRL+N
TAB in a table

Mark an Index Entry

ALT+F7
CTRL+O or CTRL+F12 or
ALT+CTRL+F2
ALT+CTRL+O
ALT+CTRL+P
ALT+CTRL+N
CTRL+ENTER
SHIFT+PAGE DOWN
SHIFT+PAGE UP

Moves to Next Misspelling

CTRL+DOWN
CTRL+SHIFT+DOWN
CTRL+UP
CTRL+SHIFT+UP
CTRL+V or SHIFT+INSERT
CTRL+SHIFT+V
CTRL+ALT+V
SHIFT+TAB in a table
CTRL+P or CTRL+SHIFT+F12

Paragraph Down
Paragraph Down Extend
Paragraph Up
Paragraph Up Extend
Paste
Paste Format
Opens the Paste Special dialog box
Moves to Previous Cell
Opens the Print dialog box

CTRL+F2 or ALT+CTRL+I
F7
CTRL+Y or F4 or ALT+ENTER
SHIFT+F4 or ALT+CTRL+Y

Print Preview
Opens Spelling and Grammar dialog box
Redo or Repeat
Repeat Find

Mark a Table of Contents Entry

Shows Key tips
Opens a new Word document
Moves to Next Cell

Opens the Open dialog box

Switch to Outline view
Switch to Print Layout view
Switch to Draft view
Insert a Page Break
Page Down Extend
Page Up Extend

CTRL+H
CTRL+SHIFT+E
CTRL+R
CTRL+S or SHIFT+F12 or
ALT+SHIFT+F2
F12
CTRL+A
CTRL+SHIFT+8
ALT+SHIFT+A

Replace

CTRL+SHIFT+, or CTRL+SHIFT+<
CTRL+[
CTRL+SHIFT+K
CTRL+1
CTRL+5

Shrink Font
Shrink Font One Point
Format letters as small capitals
Change Line Spacing to 1
Change Line Spacing to 1.5

CTRL+2
CTRL+0

Change Line Spacing to 2

Add or remove one line space preceding a
paragraph

CTRL+SHIFT+HOME

Select till start of document

CTRL+HOME
HOME
SHIFT+HOME
CTRL+SHIFT+S
CTRL+=
CTRL+SHIFT+=
SHIFT+F7
CTRL+U or CTRL+SHIFT+U
CTRL+Z or ALT+BACKSPACE

Go to Start of Document
Go to Start of Line
Select till Start of Line
Opens the Apply Styles dialog box
Subscript
Superscript
Thesaurus
Underline
Undo

SHIFT+LEFT
SHIFT+RIGHT
CTRL+LEFT
CTRL+SHIFT+LEFT
CTRL+RIGHT
CTRL+SHIFT+RIGHT
ALT+SHIFT+D
ALT+SHIFT+T
CTRL+F1

Select one character to the left

Select one character to the right

CTRL+SPACEBAR
CTRL+SHIFT+G
CTRL+ALT+M
CTRL+F9

Remove paragraph or character formatting

Opens the Word Count dialog box
Insert a Comment
Insert a Field

Turns Track Changes on or off

Right align Paragraph
Saves the document
Opens the Save As dialog box
Select All
Toggles the display of paragraph marks
Expand or collapse all text or headings

Go to the beginning of word

Select till the beginning of word
Go to the end of word
Select till the end of word
Insert todays date
Insert current time
Hide or show the Ribbon

SHIFT+ENTER
CTRL+HYPHEN
CTRL+SHIFT+HYPHEN
CTRL+SHIFT+SPACEBAR
ALT+CTRL+C
ALT+CTRL+R
ALT+CTRL+T
ALT+CTRL+.
ALT+5 on the numeric

Insert a Line Break

Insert an Optional Hyphen
Insert a non-breaking hyphen
Insert a non-breaking space
Insert the copyright symbol
Insert the registered trademark symbol
Insert the trademark symbol
Insert an ellipsis

keypad (with NUM LOCK off)

CTRL+TAB in a table
CTRL+SHIFT+W

Select an entire table

Insert tab character in a cell
Underline words but not spaces
Lab Exercises

Exercise 1
Creating and managing a document
1.

Create a new Word document.

2.

Save the document with the name communication.docx.

3.

Enter the following text in the document:

Communication cannot be effective unless, the receiver listens with due attention or participation.
It further shows that communication is a joint responsibility of both the sender and the receiver.
Participative listening is an essential condition of effective comunication. One cannot be an
effective speaker unless one is a good listener. It must, first of all, be made clear that listening is a
deliberate effort. It is not the same as hearing. When we hear, we do not have to make any effort.
But for listening, we have to train our ears and ask ourselves why we want to listen to somebody.
While listening we must discriminate, evaluate, appreciate and react.

Fig. 1.1: Adding text

4.

Correct the spelling mistake in the paragraph.

5.

Delete this sentence from the paragraph: One cannot be an effective speaker unless one is a

7
good listener.
6.

Display the spaces and end of paragraph.

7.

Change the word train in the paragraph to the word equip, without using Find and
Replace feature.

8.

Underline the word communication in the first line.

9.

Change the italicized text in the paragraph from italics to bold.

10.

Right align the paragraph.

11.
12.

Enter this sentence in the document such that it is between the first and second
sentence: Communication begins with listening.
Close the document.

13.

Rename the document with the name Ch1Ex1.docx.

14.

Open Word 2010. Now open Ch1Ex1.docx in it using keyboard shortcut.

Fig. 1.2: Final Output

Exercise 2
Working with Lists
1.

Create and save a new Word document.

2.

Enter the following text:

There are three different types of accounts:

Personal account

Real account

Nominal account

3.

Change the font of third point to Script MT Bold and font size to 16. Also apply the
Engrave effect.

4.

Using Format Painter tool, copy the formatting from third point and use it within
second point.

5.

Sort the list alphabetically in ascending order.

6.

Leave two blank lines after the list.

8
7.

Define a new multilevel list style (with three levels) as

..
1.

a.

8.

..

Now create a sample list as:

I.

Accounting
1.

2.

II.

Voucher
a.

Contra Voucher

b.

Payment Voucher

c.

Receipt Voucher

Financial Statements
a.

Cash Flow Statement

b.

Fund Flow Statement

c.

Ratio Analysis

d.

Bank Reconciliation Statement

Economic systems
1.

Market economy

2.

Mixed economy

3.

Planned economy

4.

Traditional economy

Exercise 3
Paragraph Features and Editing
1.

Open the document Ch1Ex1.docx.

2.

Hide the spaces and end of paragraph.

3.

Left-align the paragraph.

4.

Increase the character spacing of the paragraph by 1.8 points.

5.

Change the measurement units to centimeters.

6.

Bring the right margin of the text by 1 cm from the page margin.

7.

Create a negative indent of 1 cm on the text.

8.

Apply Emboss effect to the first sentence.

Fig. 3.1: Interim Output

9.

Find and highlight all occurrences of the word communication.

10.

Replace all odd occurrences of the word communication with the word conversation.

11.

Change the font of embossed text in the document with Comic Sans MS font, using
Find and Replace feature.

12.

Change all white spaces with tabs, using Find and Replace feature.

13.

Copy the paragraph and paste it such that the same paragraph appears twice in the document.

14.

Add Outside Borders to the first paragraph.

15.

Print the document in Landscape orientation.

10

Fig. 3.2: Final Output

Hints:
1.

Click the Office Button, go to Word Options. On Advanced tab, go to Display.

2.

From the Page Setup group of the Page Layout ribbon, click Margins. Select Custom
Margins from the drop-down list. Increase the value in the Right margin text box by 1.

3.

In the Paragraph group on the Page Layout ribbon, click the down arrow in the Indent
- Left box.

4.

Click on More >> Click in the Find what text box, and then click on Font in the Format
drop-down list. Select Emboss.

5.

Click on More >> Click in the Find what text box, click on No Formatting (to remove previous
formatting selection done in instruction 9) and then click on Special and select White Spaces.

6.

Click anywhere in the paragraph and then apply Border scheme.

Exercise 4
Update a predefined style
1.

Create and save a new Word document.

2.

Change the style of the document to Emphasis.

3.

Enter the following text in the document:

There once was a man who had a sister, his name was Mr. Fister. Mr. Fisters sister sold sea

11

shells by the sea shore. Mr. Fister didnt sell sea shells, he sold silk sheets. Mr. Fister told his
sister that he sold six silk sheets to six shieks. The sister of Mr. Fister said I sold six
shells to six shieks too!
4.

Justify the complete text, using keyboard.

5.

Enter the following text in the document after leaving a blank line:
Peter Piper picked a peck of pickled peppers, A
peck of pickled peppers Peter Piper picked. If
Peter Piper picked a peck of pickled peppers,

How many pickled peppers did Peter Piper pick?

6.

Select the first paragraph and underline it.

7.

Update the style Emphasis to match selection. (Now you can see that the poem also
gets underlined.)

Fig. 4.1: Final Output

Exercise 5
Creating a new style and modifying it
1.

Create and save a new Word document.

2.

Enter the following text in the document:

Accountancy is the art of communicating financial information about a business entity to users
such as shareholders and managers. The communication is generally in the form of financial
statements that show in money terms the economic resources under the control of management.
It is the branch of mathematical science that is useful in discovering the causes of success and
failure in business. The principles of accountancy are applied to business entities in three
divisions of practical art, named accounting, bookkeeping, and auditing.

3.

Select all the text in the document.

4.

Change the font to Algerian and font size to 11. Change character spacing to Expanded.

5.

Save selection with name Stylish as a new quick style. Remove selection.

12

Fig. 5.1: New style Stylish created

6.

Modify the style (only for the current document) such that the font is changed to Verdana.

Fig. 5.2: Style Stylish modified

Exercise 6
Using Templates
1.

Open Word.

2.

Create a new document based on some Resume template.

13

Fig. 6.1: Sample Resume template

Note:
This is just one of the several templates available in Word. Student can choose any of the
predefined templates.
3.

Now create your resume by filling in the details.

Hints:
1.

Click the Office Button, click on New. Choose any of the template and click on Create.

Exercise 7
Working with Tables
1.

Create and save a new Word document.

2.

Insert a table of student data containing fields Student ID, Name, Marks.
Student ID

Name

Marks

Fig. 7.1: Table inserted

3.

Enter details of 4 students (Student ID 1, 2, 4, 5) in the table.

Student ID
1
2
4

Name
Shivani
Raj
Rashmi

Marks
75
80
67
14

5
4.

Roshni

84

Fig. 7.2: Four records added in the table

Enter detail of one more student (Student ID 3) between the second and third student
Student ID
1
2
3
4
5

Name
Shivani
Raj
Amar
Rashmi
Roshni

Marks
75
80
72
67
84

Fig. 7.3: One record added in between the table

5.

Delete all the table borders leaving only the external table boundaries.

6.

Delete the detail of second student (Student ID 2).

Student ID
1
3
4
5

Name
Shivani
Amar
Rashmi
Roshni

Marks
75
72
67
84

Fig. 7.4: Table borders removed and one record deleted from the table
7.

Sort the table by marks in descending order.

Student ID
5
2
1
4

Name
Roshni
Raj
Shivani
Rashmi

Marks
84
80
75
67

Fig. 7.5: Table sorted by marks

8.

Convert this table to text with commas in place of column boundaries.

Student ID

Name

Marks

Fig. 7.6: Table converted to text

9. Convert back the text to table with three columns.
Student ID
5
2
1
4

Name
Roshni
Raj
Shivani
Rashmi

Marks
84
80
75
67

Fig. 7.7: Text converted back to table

10.

Merge the details of first two students of the table.

15

Student ID
5
2
1
4

Name
Roshni
Raj
Shivani
Rashmi

Marks
84
80
75
67

Fig. 7.8: Two records merged

11.

Split the merged cells in three columns.

Student ID
5
Roshni
1
4

Name
84
2
Shivani
Rashmi

Marks
Raj
80
75
67

Fig. 7.9: Two records merged

12.

Apply a table style to the table.

Student ID
5
Roshni
1
4

Name
84
2
Shivani
Rashmi

Marks
Raj
80
75
67

Fig. 7.10: Table style added

Note: This is just one of the table styles. Student may apply any of the available table styles.

13.

Split the table leaving the last row in second table.

Student ID
5
Roshni
1
4

Name
84
2
Shivani
Rashmi

Marks
Raj
80
75
67

Fig. 7.11: Table splitted

14.

Insert a Quick Table in the document.

ITEM
Books
Magazines
Notebooks
Paper pads
Pens
Pencils
Highlighter

NEEDED
1
3
1
1
3
2
2
Fig. 7.12: Quick Table inserted

Note: This is just one of the tables. Student may choose any of the available quick tables.
16

Exercise 8
Illustrations
1.

Create and save a new Word document.

2.

Download picture of a computer from the Internet and save it on Desktop.

3.

Insert the downloaded picture and resize it.

4.

Replace the picture with a new one downloaded from Internet or taken from Sample Pictures.

5.

Insert any picture from the Clip Art gallery.

6.

Fill the picture with some color and apply a 3-D effect to it.

7.

Insert a star shape from the gallery. Enter the following text in the shape:

Clip Art

WordArt

SmartArt

8.

Delete the picture inserted from the Clip Art gallery.

9.

Insert a SmartArt graphic with the shape of Continuous Cycle showing the steps: Transactions,

Posting, Ledger, Final Accounts, and Analysis.

Exercise 9
Organization Chart
1.

Create and save a new Word document.

2.

Create an organization chart for the following reporting hierarchy (using SmartArt graphics):

Designation
Application Systems Analysts
Application Programmers
DA/DBA
Quality Assurance Professionals
Security Professionals
Computer Operators
Application Systems Development
Manager
Information Processing Manager
IS Manager

Reporting to
Application Systems Development Manager
Application Systems Development Manager
Information Processing Manager
Information Processing Manager
Information Processing Manager
Information Processing Manager
IS Manager
IS Manager
Top Management / Board of Directors

Exercise 10
Charts
1.

Create and save a new Word document.

2.

Make a bar graph for the data, showing different bars for each region:
17

Model
Mm555
Mm600
Mm800
Mm766
Mm755

East
560
670
630
490
890

West
640
340
550
720
440

North
840
980
330
200
590

South
750
860
730
180
300

Fig. 10.1: Bar graph

3.

Give the command so that the graph shows the values along with each of the bars.

4.

Format the figures so as to show the numbers as 0.00.

5.

Insert the chart title: Region-wise sales of different models above the chart.

Fig. 10.2: Data labels added to the graph

18

6.

Insert titles as the following:

(a)

X-AXIS SALES FIGURE

(b)

Y-AXIS MODEL NAME

Fig. 10.3: Titles inserted

7.

Change the graph to Stacked column in 3-D graph.

Fig. 10.4: Bar graph converted to Stacked column in 3-D graph.

19

8.

Append the following data for the region Central and update the graph, so as to
cover Central region also.
Model
Mm555
Mm600
Mm800
Mm766
Mm755

Central
900
650
320
870
670

Fig. 10.5: Data for Central region added

Hints:
1.

Select the chart, right-click and select Add Data Labels.

2.

Select the chart, right-click, select Format Data Labels and navigate to Number tab.

Exercise 11
Links, Headers and Footers
1.

Create and save a new Word document.

2.

Insert a built-in equation of Binomial Theorem.

3.

Insert a caption to this equation.

4.

Download and insert picture of a computer.

Fig. 11.1: Picture inserted

20

5.

Create a new Word document and write description of a computer in it.

6.

Create hyperlink from this picture to the new document.

7.

Press Enter key repeatedly till the cursor is on second page.

8.

Write the text Google containing hyperlink to the website www.google.com.

9.

Assign a bookmark with name search to the text written in previous instruction.

10.

Now go to the top of the document and go to bookmark named search.

11.

Insert a cross-reference to the equation inserted in instruct

12.

Now go to the equation using the cross

13.

Create different headers for odd and even pages. Write text Odd in odd page
header and Even in even page header.

Note: The picture taken is just an example.

Hints:
1.

Select Insert caption from the Captions group in the References ribbon.

Exercise 12
Text
1.

Create and save a new Word document.

2.

Insert a text box.

3.

Enter the following text in the text box: Peter

Piper picked a peck of pickled peppers, A
peck of pickled peppers Peter Piper picked. If
Peter Piper picked a peck of pickled peppers,

How many pickled peppers did Peter Piper pick?

Resize the text box accordingly such that all the text is not visible.
Peter Piper picked a peck to pickled peppers,
A peck of pickled peppers Peter Piper picked
If Peter Piper picked a peck of pickled
Fig. 12.1: Text box inserted and text added
4.

Insert another text box and create a link from the first text box to the second. Now the
extra text will automatically move to the second text box.
Peter Piper picked a peck of
If Peter Piper picled a peck of
pickled peppers,
pickled peppers,
A peck of pickled peppers Peter
How many pickled peppers did
Piper picked.
Peter Piper pick?
Fig. 12.2: Text boxes linked

5.

Insert the name of the author of the document using Quick Parts feature.

6.

Enter the following paragraph in the document:

Software has been targeted as a growth sector in India. Besides the industrys own potential

21

7.

for exports, software also plays the crucial role in information technology (IT), use of
which is fast becoming the key for competitiveness in any industry. Hence, for the
growth of IT industry as well as the other industries, a rapid growth of software
industry, both in terms of size and quality is absolutely essential.
Insert Drop Cap (In margin) in the paragraph.

8.

Insert a signature line with your name and current date, to the document.

9.

Insert current date and time in the top-right corner of the document such that it
changes dynamically whenever the document is opened.

10. Create a new embedded object (bitmap image) as icon.

11.

Write the formula of area and perimeter of circle as Area = _______ and Perimeter = _______

(using Symbol option).

12.

Insert a WordArt with text Word Art and WordArt style 15. Rotate it left by 90_.

13.

Insert the following equation for finding the second derivative in the document.

Hints:
1.

Enable Show sign date in signature line in Signature Setup dialog box.
If Invalid signature is written in the signature line, then right-click on the signature. Select
Signature Details and click on Click here to trust this users identity. Click Close.

Exercise 13
References Ribbon
1.

Open the file Ch3Ex1.docx.

2.

Apply heading styles in the chapter such that the following Table of Contents can be
produced. Now insert a Table of Contents such that it can be updated automatically
with a single mouse click.

Fig. 13.1: Table of Contents

3.

Insert captions to the figures of keyboard, mouse, monitor and printer such that the
following Table of Figures can be produced. Now insert a Table of Figures.
22

Fig. 13.2: Table of Figures

4.

Insert four citations at different places in the chapter.

5.

Create a Table of Authorities after marking the citations.

Fig. 13.3: Table of Authorities

6.

Insert a bibliography at the end of the chapter.

Fig. 13.4: Bibliography

7.

Mark index entries for the words key, printer, screen and sound in the chapter.
(While marking, mark all the entries of a given word.)

8.

Insert an index at the end of the chapter.

Fig. 13.5: Index

9.
10.

11.

Insert a footnote for Plotter heading with the text There are two types of plotters:
Drum plotter and Flat-bed plotter.
Now insert a subsequent footnote for the word speakers in section 1.2.4 with the text A
speaker is an electro-acoustic transducer that converts an electrical signal into sound..
Now change the number format of the footnotes to A, B, C, .

23

12. Delete the first footnote.

Note:
The Table of Authorities and bibliography are just samples. The student may insert any
other citations also.
Hints:
1.

If all heading levels are not displayed in the Table of Contents, then change the
number of heading levels so that all get displayed. Also modify the way heading
levels are displayed in the table of contents, if required, to match the style given.

Exercise 14
Proofing Text
1.

Open the file Ch3Ex2.docx.

2.

Check the spelling mistakes using Spelling and Grammar option. Substitute with
correct words wherever required.

3.

Find the synonyms of the word comprehend using Thesaurus option.

4.

Specify that whenever IT is typed, it is replaced by Information Technology, using

AutoCorrect feature. Check this by typing IT in the document. (Press Enter or
Spacebar after the text.)

5.

Write the text The four suits of playing cards are: . Now insert the symbols of all
suits of playing cards, using AutoCorrect feature.

6.

Add a comment to the previous sentence with the text club suit, diamond suit, heart
suit, spade suit. Also respond to this comment with the text Response.

7.

Write this text into symbols: Cube root of 8 is 2.

8.

Check word count of the document. Verify the number of lines by counting manually also.

9.

Enable translation screen tip for translation to French.

Hints:
1.

Select Word Options from the Office Button. Click on Proofing and then go to
AutoCorrect Options. In Math AutoCorrect tab, select the check box Use Math
AutoCorrect rules outside of math regions. Now to insert symbol of club suit, for
instance, write \clubsuit. Do the same for other suits.

2.

Write \cbrt.

Exercise 15
Tracking changes
1.

Create and save a new Word document.

2.

Enter the following text in the document:

Online learning attempts to bridge the distance gap in learning. Online education exists to meet
the needs of trainers and students separated by physical distance. Physical location of the trainer
or training institution becomes immaterial to acquiring knowledge and skills. Online learning can
be the primary or a supplemental means of learning. Essentially by bridging this gap, online
learning increases access to learning. Many in this category are those who want to

24

learn while working. They may be unable to attend on-campus classes. With online
learning, workers can keep their jobs and at the same time, develop their knowledge and
skills. It could also be for the development of new job skills or training for a new job.

Online learning makes education available to many who are outside the formal or
traditional education system. It therefore provides opportunities for individuals and
corporate learners by increasing access to education and training.
3.

Enable Track Changes feature.

4.

Exchange seat with your immediate neighbor. Allow him/her to modify the text after
changing the user name.

5.

View the changes done by your neighbor. Accept or reject each change.

6.

Now make the document read-only.

Hints:
1.

Click the Office Button. From the Prepare tab, select Mark as Final.

Exercise 16
Comparing, Combining and Splitting documents
1.

Create and save a new Word document.

2.

Enter the following text in the document:

The term wireless networking refers to technology that enables two or more
computers to communicate using standard network protocols, but without network
cabling. Although any technology that does this could be called wireless networking,
the term generally refers to wireless LANs (WLAN). A WLAN is a grouping of network
components connected by electromagnetic (radio) waves instead of cables.
A wireless LAN basically consists of: the network backbone; end-user devices such
as data collection units, handheld computers and laptops; wireless LAN access
points; wireless cards; and software that will help you manage the network.
A single access point can support a small group of users and can function within a
range of less than 100 to several hundred feet. Access points can connect WLAN to
a wired LAN, allowing wireless computer access to LAN resources, such as file
servers or existing Internet Connectivity.

3.

Exchange seat with your immediate neighbor. Allow him/her to modify the text after
saving the document with a different name.

4.

Compare the two documents and view the changes made by your neighbor.

5.

Now combine the two documents. Save the combined document with a new name.

6.

Split the combined document in two parts.

Exercise 17
Macros and Saving as PDF file
1.

Create and save a new Word document.

2.

Create a macro with the name Emp_Table such that whenever Ctrl+; is pressed, a table
with 5 columns and 10 rows, gets inserted in the document. Column headings should be
Emp_ID, EMP_Name, Emp_Address, Emp_Phone_No and Emp_Basic_Salary.

25

3.

Now run the macro by pressing Ctrl+;. The table should get inserted.

4.

Create a macro with the name Smiley assigned to the smiley face shaped button.
The macro should be such that when the smiley button is clicked, a smiley face gets
inserted in the document.

5.

Now click the smiley button. The smiley face should get inserted.

6.

Delete the macro Emp_Table.

7.

Zoom the document to 250% of its normal size.

8.

Hide the ruler.

9.

Save the document as PDF file.

Hints:
1.

Start recording a macro with the key sequence Ctrl+;. Then insert the required table
(with the given headings) and then stop recording.

Exercise 18
Themes and Margins
1.

Create and save a new Word document.

2.

Create a new document theme (select theme colors, fonts and effects), save it with
your name and use it in the document.

3.

Enter the following text in the document:

A Theme is defined as a set of unified design elements that provides a look for Word
document by using color, fonts, and graphics and organizes an appropriate balance of
colors. Themes have a palette of twelve colors. Theme effects are sets of lines, fills, and
special effects for shapes, graphics, charts, SmartArt, and other design elements.

Make the word Theme in the first sentence a hyperlink to the

web page http://www.word07.com/themes.htm.
The created theme must get reflected in the above entered text.
4.

Change the page setup as follows:

Top Margins

Left Margins

Gutter

0.5

Gutter position

Top

Exercise 19
Page Formatting
1.

Create and save a new Word document.

2.

Enter the following text in the document:

Direct Tax: A direct tax is one paid directly to the government by the persons on
whom it is imposed. Examples include some income taxes, some corporate taxes,
and transfer taxes such as estate tax and gift tax.
Indirect Tax: An indirect tax is a tax collected by an intermediary from the person who bears

26

the ultimate economic burden of the tax. Examples include sales tax, VAT, or GST.
3.

Insert a page break between the two topics, using keyboard shortcut.

4.

Change the orientation of the text on the second page, to Landscape.

5.

Remove the space and insert an optional hyphen between the words Direct and Tax.

6.

Insert line numbers in front of each line in the document. Line numbers should restart
from 1 in the second page.

7.

Insert a watermark with the text ICAI written diagonally.

8.

Change the background color of the document to light blue.

Hints:
1.

Press Ctrl + Enter

Exercise 20
Exercise 20:- Create a new word document and generate a letter, format are given
below
Print
The Institute of Chartered
Accountants of India
Branch Name: -------------------------Address: - ---------------------------------------------------------------------------Phone: -----------------------------------E-mail: -----------------------------------NO.
ICAI/ITT/Reg.No.
Mr/ Ms. ---------------------Address: ------------------------Phone: - _______________

Dated: _____________________

Dear Student,
This has reference to your application for registration to the Information Technology
Training course of 100 Hours. Your IT Training shall commence as follows, considering
your preferences for ITT Centres and timings and availability of seats at the ITT Centre:ITT Centre
Details
Name:_______
Venue:-

Start Date

Timings

You are required to report for training at the aforesaid centre 10 minutes prior to scheduled
starting of the session. While every effort has been made to allot IT Training batches of the
choice exercised by the student, there may be difference in the timings actually allotted due
to administrative exigencies.
27

In case you fail to attend the class on the very first day, the seat may be allotted to
some other student in waiting and your name may not be considered for immediate
next batch due to limited seat availability.
You are required to study the Guidelines for ITT Course Students available overleaf
for strict compliance in letter and spirit, to avoid delays in securing ITT Course completion
certificate.
You are required to bring (a) this letter (b) Colour Passport Size Photograph and (C)
Identity Card issued by the Institute or other photo identity issued by Government
agency (Voter ID Card, Driving License, Passport)when you report for training and in
your visits to the IT Training Centre for classes and Module / Online Test.
Thanking you,
Yours faithfully,
(Name)
Chairman / DCO Head / Convenor

Exercise 21
Envelopes
1.

Create and save a new Word document.

2.

Create an envelope with the delivery

address ICAI,
A-94/4,
Sec-58,

Noida
3.

Change the envelope size to Monarch.

4.

Print the envelope.

Exercise 22
Mail Merge
1.

Add the following contacts in Microsoft Office Outlook:

Name
Shivani Aggarwal
Amar Arora
Akash Gupta
Nidhi Khurana
Ravinder Sehgal
Deepti Sinha

2.

E-mail Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

City
Delhi
Chandigarh
Delhi
Delhi
Delhi
Bangalore

Create and save a Word document. Write the following e-mail in the document:

27

Dear <student name>

The schedule for online examination of Information Technology Training is:
Date: May 25, 2010
Time: 10:00 a.m.
Venue: Lab 1
You are required to be seated before the commencement of the examination. No late
entries will be allowed.
3.

Change the font color of the

text Date: May 25, 2010
Time: 10:00 a.m.
Venue: Lab 1
to red and font size to 14.

4.

Use the student name from Outlook contacts (take only those students in recipient list
who are studying in Delhi) and make it a mail merged field. Change its font color to blue.

5.

Send the e-mail to all the students who are studying in Delhi. The subject of the email should be Schedule of online examination.

Note:
The contact list is just an example. Student shall take valid e-mail ids so that they can
verify that the e-mails have been sent.
Hints:
Filter recipient list based on City equals to Delhi. Then add greeting line.

1.

Case Studies
CS1: Inventory Valuation using Weighted Average method
Calculate the weighted average price and also the value of closing inventory by filling in
the table (given in file CS1.docx) with the required formula.
Date
Mar.
2
5
10
11
15
19
26
31

Receipts
Qty Rate Rs. Amount
Units
Rs.
900
5.00

Qty

Issues
Rate Amount
Units
Rs.
600

400
300

5.50
5.50
400

200
800

6.00
4.75
600

Solution:

28

Balance
Qty
Rate Amount
Units
Rs.
Rs.

Under weighted average price method, cost of goods available for sale during the period is
aggregated and then divided by number of units available for sale during the period to
calculate weighted average price per unit. Thus
Weighted average price per unit =

Date
Mar.
2
5
10
11
15
19
26
31

Total cost of goods available for sale during the period

Total number of units available for sale during the period

Receipts
Qty Rate Rs. Amount
Units
Rs.
900
5.00

Qty

Issues
Rate Amount
Units
Rs.

Qty
Units

Balance
Rate Amount
Rs.
Rs.

600
400
300

5.50
5.50
400

200
800

6.00
4.75
600

We can number the rows of the table as 1, 2, 3, ... and the columns as A, B, C, The
following example table will demonstrate how MS-Word refers the cells in a table.
A1
A2
A3

B1
B2
B3

Fig. 1.1: Table Tools

Now click on Formula option. The Formula dialog box will appear.

Fig. 1.2: Formula dialog box

29

C1
C2
C3

Here we can type in the required formula in the Formula box or select a formula from the
Paste function drop-down list.
Note: Make sure that there is a = sign before the formula.
We can also select a number format from the Number format drop-down list.
Now enter the following formula in the respective cells with the specified number formats.
Cell
D3
D5
D6
D8
D9
H3
H4
H5
H6
H7
H8
H9
H10
I3
J3
F4
G4
I4
J4
I5
J5
I6
J6
F7
G7
I7
J7
I8
J8
I9
J9
F10
G10
I10
J10

Formula
PRODUCT(B3, C3)
PRODUCT(B5, C5)
PRODUCT(B6, C6)
PRODUCT(B8, C8)
PRODUCT(B9, C9)
B3
H3 E4
H4 + B5
H5 + B6
H6 E7
H7 + B8
H8 + B9
H9 E10
C3
D3
I3
PRODUCT(E4, F4)
I3
PRODUCT(H4, I4)
SUM(J4, D5) / H5
PRODUCT(H5, I5)
SUM(J5, D6) / H6
PRODUCT(H6, I6)
I6
PRODUCT(E7, F7)
I6
PRODUCT(H7, I7)
SUM(J7, D8) / H8
PRODUCT(H8, I8)
SUM(J8, D9) / H9
PRODUCT(H9, I9)
I9
PRODUCT(E10, F10)
I9
PRODUCT(H10, I10)

Number Format
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0
#, ##0.00
#, ##0.00
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
#, ##0.00
#, ##0
30

Table 1.1: Formula and Number formats

Output:
Date
Mar.
Rs.
2
5
10
11
15
19
26
31

Qty
Units
900
400
300
200
800

Receipts
Rate
Amount
Rs.
Rs.
5.00
4,500
5.50
5.50
6.00
4.75

Qty
Units

Issues
Rate
Amount
Rs.
Rs.

600

5.00

3,000

400

5.35

2,140

600

5.13

3,078

2,200
1,650
1,200
3,800

Qty
Units
900
300
700
1,000
600
800
1,600
1,000

Balance
Rate
Amount
Rs.
Rs.
5.00
4,500
5.00
1,500
5.29
3,703
5.35
5,350
5.35
3,210
5.51
4,408
5.13
8,208
5.13
5,130

CS2: Confirmation of Balances using Mail Merge

(Excerpt from http://en.wikipedia.org/wiki/Mail_merge)
Mail merge is a software function describing the production of multiple documents from a single
template form and a structured data source. This helps to create personalized letters and preaddressed envelopes or mailing labels for mass mailings from a word processing document which
contains fixed text, which will be the same in each output document, and variables, which act as
placeholders that are replaced by text from the data source. The data source is typically a
spreadsheet or a database which has a field or column matching each variable in the template.
When the mail merge is run, the word processing system creates an output document for each row
in the database, using the fixed text exactly as it appears in the template, but substituting the data
variables in the template with the values from the matching columns.

Assignment:
Send letters to four companies asking for confirmation of their account balances using Step by
Step Mail Merge Wizard. Use file DataSrc.xlsx as the data source and file CS2.docx as the
document containing the letter. The final output is given in file Final CS2.pdf.

The format of the letter should be:

To,
The Manager
<Address of the company>
E-mail: <E-mail id>
Dear <First Name of the Manager>,
Dated: April 8, 2010

31

Sub: Confirmation of Accounts

For 1-Apr-2010
Given below are the details of your Accounts as standing in my/our Books of Accounts for
the above mentioned period.
Kindly return 3 copies stating your I.T. Permanent A/c No., duly signed and sealed, in
confirmation of the same. Please note that if no reply is received from you within a
fortnight, it will be assumed that you have accepted the balance shown below.
Date

Particulars

1-Apr-2010

Sales 1
sales made on
1-Apr
Sales 2
Sales 3

1-Apr-2010
1-Apr-2010

Debit
Amount
15,000.00

25,000.00
14,000.00

Date

Particulars Credit Amount

1-Apr-2010
Ch. No.:
372846
1-Apr-2010

Bank

12,000.00

Bank
Ch. No.:
783762
Bank
Ch. No.:
648369

5,600.00

1-Apr-2010

54,000.00

8,900.00

26,500.00
Closing Balance 27,500.00

54,000.00

54,000.00

I/We hereby confirm the above.

Yours faithfully,
Solution:
Steps
1.

Open the file CS2.docx.

2.

Start Step by Step Mail Merge Wizard.

3.

Select Letters as the document type.

4.

Proceed through the wizard by clicking Next.

5.

When it asks for the recipient selection, select the option Use an existing list and
browse to the file DataSrc.xlsx.

6.

After finishing the mail merge process, select the option Edit individual letters to
create a document containing all the letters.

CS3: GAIL Annual Report

1.

Create the Annual report of GAIL (Gas Authority of India Limited) as given in Final
CS3. pdf.
32

3.

Link the balance sheet given in file Balance Sheet.xlsx to this report such that
whenever any change is made in the Excel file, it is also reflected in the report.
Add a cover page to the report.

4.

Also apply a watermark of GAIL logo in the report.

5.

Save the report in PDF format.

2.

Solution:
Steps
1.

Open the file CS3.docx.

2.

Do all the necessary text formatting, make bullet points, tables etc. as specified in file
Final CS3.pdf. Specify headings in Heading 1 style and all other text in Normal style.

3.

Add a cover page with the given title and GAIL logo. The student may use any of the
available cover pages.

4.

(Student is required to download GAIL logo from the Internet.)

5.

Apply header mentioning the title and year of the report; and footer mentioning the
page number.

6.

Apply watermark of GAIL logo which has been downloaded.

7.

Create the charts.

8.

To add a secondary axis to the chart, select the data series to be placed on the secondary axis.
Navigate to the Format ribbon. Now, in the Current Selection group at the far left,
make sure that the drop-down selection is showing the name of the selected series.
Click Format Selection. This will display the following dialog box as shown in Fig. 3.1.

Fig. 3.1: Adding a secondary axis to the chart

33

Click the Secondary Axis radio button and then click Close. To change the range of
an axis in the chart, select that axis, right-click on it and click on Format Axis.
9.

Make the diagram in the section Five Year Profile using text boxes and shapes.

10.

Link the Excel file Balance Sheet.xlsx in the section Annual Accounts. After
linking, open the Excel file; change a figure there and save it. Now update the link in
the report by right-clicking on the balance sheet. Verify that the figure is changed.

11.

Add table of contents such that it can be updated automatically with a single mouse-click.

12.

Mark index entries and create index.

Source: GAIL 21st Annual Report, 2004-2005.

C. MS-EXCEL 2010
Electronic Spreadsheets like MS-Excel 2010 are perhaps one of the most useful tools for
Accountants for their financial analysis and reporting requirements. Excel 2010 provides
simple and easy interface to undertake requisite computations. Excel 2010 also provides
readymade financial and other functions, simulation facility etc. The case studies and
exercises given below will provide thorough practice on financial functions and computations.

Shortcut keys
(a) Function Keys
Shortcut key
F1
F2
F3
F4
F5
F6
F7
F8
F9
F10
F11
F12

Functionality
Displays the Microsoft Office Excel Help task pane
Edits the active cell, putting the cursor at the end
Displays the Paste Name dialog box
Repeats the last command or action, if possible
Displays the Go To dialog box
Switches between the worksheet, Ribbon, task pane, and Zoom controls.
In a worksheet that has been split, it also includes the split panes.
Displays the Spelling dialog box
Turns extend mode on or off
Calculates all worksheets in all open workbooks
Turns key tips on or off
Creates a chart (on a chart sheet) using the highlighted range
Displays the Save As dialog box

(b) SHIFT + Function Keys

Shortcut key
Shift + F2
Shift + F3
Shift + F4
Shift + F5

Functionality
Inserts or edits a cell comment
Displays the Insert Function dialog box
Repeats the last Find, the same as Find Next
Displays the Find dialog box
34

Shift + F6
Shift + F8
Shift + F9
Shift + F10
Shift + F11
Shift + F12

Switches between the worksheet, Zoom controls, task pane, and Ribbon
Enables the user to add a nonadjacent cell or range to a selection of
cells by using the arrow keys
Calculates the active worksheet
Displays the (Shortcut) menu for the selected item
Inserts a new worksheet
Displays the Save As dialog box

(c) CTRL + Function Keys

Shortcut key
Ctrl + F1
Ctrl + F2
Ctrl + F3
Ctrl + F4
Ctrl + F5
Ctrl + F6
Ctrl + F7
Ctrl + F8
Ctrl + F9
Ctrl + F10
Ctrl + F11
Ctrl + F12

Functionality
Displays or hides the Ribbon
Displays the Print Preview window
Displays the Name Manager dialog box
Closes the selected workbook window
Restores the window size of the selected workbook window
Moves to the next open workbook or window
Performs the Move window command when the window is not maximized
Performs the Size window command when the window is not maximized
Minimizes the workbook window to an icon
Maximizes or restores the selected workbook window
Inserts a new macro sheet
Displays the Open dialog box

(d) Other + Function keys

Shortcut key
Alt + F1
Alt + F2 or Alt +
Shift + F2
Alt + F4 or Alt +
Shift + F4
Alt + F8
Alt + F11

Functionality
Creates a chart (on a chart sheet) using the highlighted range
Displays the Save As dialog box

Closes all the workbooks (saving first) and exits Excel

Displays the Macro dialog box
Toggles between the Visual Basic Editor window (in which one can
create a macro using VBA) and the Excel window
Alt + Ctrl + F9
Calculates all worksheets in all open workbooks
Alt + Shift + F1
Inserts a new worksheet
Ctrl + Shift + F3 Displays the Create Names from Selection dialog box
Ctrl + Shift + F12 Displays the Print dialog box
(e) CTRL + Number Keys
Shortcut key
Ctrl + 0

Functionality
Hides the selected columns

35

Ctrl + 1
Ctrl + 2
Ctrl + 3
Ctrl + 4
Ctrl + 5
Ctrl + 6
Ctrl + 8
Ctrl + 9

Displays the Format Cells dialog box

Toggles bold on the current selection
Toggles italics on the current selection
Toggles underlining on the current selection
Toggles the strikethrough of text on the current selection
Alternates between hiding objects, displaying objects, and displaying placeholders for objects
Toggles the display of outline symbols
Hides the selected rows

(f) CTRL + Alphabet Keys

Shortcut key
Ctrl + A
Ctrl + B
Ctrl + C
Ctrl + D
Ctrl + F
Ctrl + G
Ctrl + H
Ctrl + I
Ctrl + K
Ctrl + L
Ctrl + N
Ctrl + O
Ctrl + P
Ctrl + R
Ctrl + S
Ctrl + U
Ctrl + V
Ctrl + W
Ctrl + X
Ctrl + Y
Ctrl + Z

Functionality
Selects the entire worksheet
Toggles bold on the current selection
Copies the current selection to the clipboard
Copies the contents and format of the first cell in the selection downwards
Displays the Find dialog box
Displays the Go To dialog box
Displays the Replace dialog box
Toggles italics on the current selection
Displays the Insert Hyperlink dialog box for new hyperlinks or the Edit Hyperlink dialog box for selected existing hyperlinks
Displays the Create Table dialog box
Creates a new blank workbook
Displays the Open dialog box
Displays the Print dialog box
Copies the contents and format of the leftmost cell in the selection to the right
Saves the active file
Toggles underlining on the current selection
Pastes the contents of the clipboard at the insertion point
Closes the selected workbook window
Cuts the current selection to the clipboard
Repeats the last command or action, if possible
Undo the last command or action

(g) Other Shortcuts

Shortcut key
Ctrl + Shift + A

Functionality
Inserts argument names and parentheses when the insertion point is to the
right of a function name in a formula

Ctrl + Shift + F or
Ctrl + Shift + P
Opens the Format Cells dialog box with the Font tab selected
Ctrl + Shift + O
Selects all the cells with comments
Enter
Enters the contents of the active cell and moves to the cell below
36

Shift + Enter
Tab
Shift + Tab
Alt + =
Alt + 0128
Alt + 0162
Alt + 0163
Alt + 0165
Alt + Enter
Ctrl + '
Ctrl + ;
Ctrl + Enter
Ctrl + Shift + :
Shift + Insert
Alt + Down Arrow
Esc
Ctrl + Tab
Ctrl + Shift + Tab
Home
End + Arrow Key
Page Down
Page Up
Alt + Page Down
Alt + Page Up
Ctrl + Home
Ctrl + End

Enters the contents of the active cell and moves to the cell above
Enters the contents of the active cell and moves one cell (unlocked in a protected worksheet) to the right
Enters the contents of the active cell and moves one cell (unlocked in a protected worksheet) to the left
Enters the SUM() function in the active cell
Enters the euro symbol () (using Number keypad)
Enters the cent symbol () (using Number keypad)
Enters the pound sign symbol () (using Number keypad)
Enters the yen symbol () (using Number keypad)
Enters a new line (or carriage return) into a cell
Enters the formula from the cell directly above into the active cell
Enters the current date into the active cell
Enters the contents of the active cell to the selected cell range
Enters the current time into the active cell
Enters the data from the clipboard
Displays a drop-down list of the values in the current column of a range

Cancels the cell entry

Switches to the next tab in a dialog box
Switches to the previous tab in a dialog box
Moves to the first column in the current row
Move by one block of data within a row or column
Moves one screen down in a worksheet
Moves one screen up in a worksheet
Moves one screen to the right in a worksheet
Moves one screen to the left in a worksheet
Moves to the beginning (cell A1) of a worksheet
Moves to the last cell on a worksheet, in the lowest used row of the rightmost
used column
Ctrl + Arrow Key Moves to the edge of the current data region
Ctrl + Page Up
Moves to the previous worksheet in a workbook
Ctrl + Page Down Moves to the next worksheet in a workbook
Scroll Lock +
Arrow Key
Moves the workbook window by one cell in the corresponding direction
Scroll Lock + End Moves to the last cell in the current workbook window
Scroll Lock +
Home
Moves to the first cell in the current workbook window
Scroll Lock +
Page
Down
Moves you down one screen (current selection unchanged)
Scroll Lock +
Page
Up
Moves you up one screen (current selection unchanged)
Ctrl + .
Moves clockwise to the next corner within a selected range
37

Ctrl + Alt + Left

Arrow
Ctrl + Alt + Right
Arrow
=
Ctrl + `
Ctrl + Delete
Ctrl + Insert
Ctrl + Shift + (
Ctrl + Shift + )
Alt
Alt + Shift + Left
Arrow
Alt + Shift +
Right
Arrow
Alt + Backspace
Alt + Spacebar
Alt + - (from the
Numeric keypad)
End
Delete
Backspace
Shift + Delete
Ctrl + Ctrl + Shift + =
Ctrl + Backspace
Ctrl + Shift + U

Switches to the next non-adjacent selection to the left

Switches to the next non-adjacent selection to the right
Starts a Formula
Alternates between displaying cell values and displaying formulas in the
worksheet
Deletes text to the end of the line
Copies the current selection to the clipboard
Unhides any hidden rows within the selection
Unhides any hidden columns within the selection
Shows key tips
Displays the Ungroup dialog box

Displays the Group dialog box

Undo the last action
Displays the control menu for the Microsoft Office Excel window
Displays the Excel application control menu
Moves to the cell in the lower-right corner of the window when SCROLL
LOCK is turned on.
Deletes the selection or one character to the right
Deletes the selection or one character to the left
Cuts the selection to the clipboard
Displays the Delete dialog box
Displays the Insert dialog box
Scrolls to display the active cell
Switches between expanding and collapsing of the formula bar

(h) Selecting data

Shortcut key
Ctrl + \
Ctrl + Shift + \
Ctrl + /
Alt + ;
Ctrl + Shift + *
Ctrl + [

Functionality
Selects the cells in a selected row that do not match the value in the active
cell
Selects the cells in a selected column that do not match the value in the active
cell
Selects the array containing the active cell
Selects the visible cells in the current selection
Selects the current region around the active cell (surrounded by blank rows
and columns). In a PivotTable, it selects the entire PivotTable report.
Selects all the cells that are directly referred to by the formula in the active
cell (precedents)

38

Ctrl + Shift + [
Ctrl + ]
Ctrl + Shift + ]
Ctrl + Shift +
Down
Ctrl + Shift +
PageUp
Ctrl + Shift +
Spacebar
Ctrl + Spacebar
Shift + Spacebar
Shift + Arrow
keys
Shift + Backspace

Selects all the cells that are directly (or indirectly) referred to by the formula
in the active cell
Selects all the cells that directly refer to the active cell (dependents)
Selects all the cells that directly (or indirectly) refer to the active cell
Page Selects the active worksheet and the one after it
Selects the active worksheet and the one before it
Selects all the objects on a worksheet when an object is selected or selects the
entire worksheet
Selects an entire column in a worksheet
Selects an entire row in a worksheet
Selects the active cell and the cell in the given direction
Selects the active cell when multiple cells are selected

(i) Extending data

Shortcut key
Ctrl + Shift +
Arrow Key

Functionality

Extends the selection to the last non-blank cell in the same column or row
as the active cell, or if the next cell is blank, extends the selection to the next
non-blank cell
Ctrl + Shift + End Extends the selection to the last used cell on the worksheet
Ctrl + Shift +
Extends the selection to the beginning of the worksheet
Home
Shift + Arrow Key Extends the selection by one cell in that direction
Shift + Home
Extends the selection to the first column
Shift + Page
Extends the selection down one screen
Down
Shift + Page Up Extends the selection up one screen
End, Shift +
Extends the selection to the next non-blank cell in that direction
Arrow Key
(j) Formatting data
Shortcut key
Alt + '
Ctrl + Shift + !
Ctrl + Shift + $
Ctrl + Shift + %
Ctrl + Shift + ^
Ctrl + Shift + ~
Ctrl + Shift + @

Functionality
Displays the Style dialog box
Applies the Number format with two decimal places, thousands separator, and
minus sign (-) for negative values
Applies the Currency format with $ sign and two decimal places (negative
numbers in parentheses)
Applies the Percentage format with no decimal places
Applies the Exponential number format with two decimal places
Applies the General number format
Applies Time format with the hour and minute, and AM or PM
39

Ctrl + Shift + #
Ctrl + Shift + &
Ctrl + Shift + _

Applies the Date format "dd-mmm-yy" to the selection

Applies the outline border to the selected cells
Removes the outline border from the selected cells
Lab Exercises

Exercise 1
Build a Balance Sheet
Step 1: Create a title page.
In cell D1, type ABC CONSULTING LIMITED
In cell D2, type BALANCE SHEET
In cell D3, enter todays date using formulae.
Notice that the headings do not fit in the cells. To make the cells accommodate the headings,
we can widen the columns so the headings will fit. Save the spreadsheet as bal.xlsx.

Step 2: Enter data into the worksheet and navigate within the worksheet.

Type the following text in the appropriate cells.

CELL
B4
B6
B7
B8
B9
B10
B11
B12
B13
B14
B15
B16
B17
B18
B19
B20
B21
B22

TEXT
INPUT SECTION
Cash in Bank
Petty Cash
Marketable Securities
Accounts Receivable
Allowance for Bad Debts
Inventory
Office Supplies
Prepaid Insurance
Land
Buildings
Accumulated DepreciationBuildings
Warehouse
Accumulated DepreciationWarehouse
Trucks
Accumulated DepreciationTrucks
Office Equipment
Accumulated DepreciationOffice Equipment
40

B23
B24
B25
B26
B27
B28
B29

Accounts Payable
Notes Payable, Short-Term
Interest Payable
Income Tax Payable
Liability for Payroll Taxes
Notes Payable, Long-Term
ABC, Capital

Now, widen Column C to 14 characters.

Next, input the following numerical values in the appropriate cells.

CELL
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29

VALUE
7115.15
400
5000
24100
615
65000
1480
5135
10000
65000
9750
30000
5400
16000
9000
8700
3915
14190
25000
215
300
1800
70000
97745.15

These are INR values, so we must add INR signs and decimal points.

Next, add these titles in the appropriate cells for the Assets section of the Balance Sheet.

CELL
D4
D6
D15
D17

TEXT
ASSETS
Current Assets
Total Current Assets
Noncurrent Assets
41

D27
D28

Total Noncurrent Assets

Total Assets

Now, we will begin copying the account titles and numerical values from the input
section into the actual balance sheet.

Point to cell B6 and copy the cell to D7.

Now, copy the titles in cells B7 through B13 to cells D8 through D14.

Next, copy B14 through B22 to D18 through D26.

To improve the appearance of our balance sheet, we need to edit a few cells.

Point to cell D7 and click the left mouse button, tap the F2 key to begin editing the
cell. Use the arrow keys to move the cursor in front of the words Cash in Bank. Insert
three spaces in front of the words. Repeat this for cell D8 through D14.

Insert six spaces in front of Total Current Assets in cell D15.

Edit cells D20, D22, D24, and D26 by placing the word Less: at the front of each cell.
For example, cell D20 should read Less: Accumulated DepreciationBuildings

Insert three spaces in front of the words in cells D18 through D26.

Insert six spaces in front of the words in cell D27

Output:

Fig.1.1: Output
Step 3: Enter formula and copy cell contents and formula.
We have all of the titles in place for the Assets part of the balance sheet, now we must
copy to the titles for the Liabilities and Owners Equity part.

42

Go to the following cells and type in the appropriate text:

CELL
D31
D33
D39
D41
D43
D44
D47
D49
D50

TEXT
LIABILITIES AND OWNERS EQUITY
Current Liabilities
Total Current Liabilities
Noncurrent Liabilities
Total Noncurrent Liabilities
Total Liabilities
Owners Equity
Total Owners Equity
Total Liabilities and Owners Equity

Next, copy B23 through B27 to D34 through D38.

Insert three spaces in front of the words in cells D34 through D38

Insert six spaces in front of Total Current Liabilities in cell D39.

Copy B28 to D42 and insert three spaces in front of the words in cell D42.

Insert six spaces in front of the words in cells D43 and D44.

Copy B29 to D48 and insert three spaces in front of the words in cell D48.

Insert six spaces in front of the words in cell D49.

Fig.1.2: Output

Next we must copy the numerical values from the input section to the actual balance sheet.
However, because we want the numbers in our balance sheet to change when we change
the numbers in the input section, we cannot copy them the same way we copied text.

Step 4: Copying Numerical Values

1.

Plus-Point Method
To use this method, simply type a plus sign (+) in the new cell, then point to the cell where
the number currently is and click the left mouse button. You will see the current cell address
appear in the new cell. When you press enter, the numerical value will appear in the new
cell. Notice that if you move back onto the new cell, the original cell address is still there.

43

In the left column below, the destination cell addresses are listed. These are the cells
where the specified task will be performed. In the right column below, the task is listed.
For each row, this is the task we must perform on the destination cell. For tasks we have
not yet discussed, instructions on performing the task will follow the task description.

For example: In the first row, F7 is listed as the destination cell and the task is to
Copy C6. This means that you must copy C6 to F7. Using the Plus-Point Method,
you would go to cell F7, then type a plus sign and point to cell C6. Using the Type-In
Method, you would go to cell F7, then type a plus sign and type C6.
Destination Cell
F7
F8
F9
E10
E11

Task
Copy C6
Copy C7
Copy C8
Copy C9
Copy C10

Underline E11: Point to E11 and click the right mouse button. Select Format Cells using a left
mouse click, and then select the Border tab using a left mouse click. Point to the bottom of the
cell within the box and click. A line should appear along the bottom of that cell. Click on OK
with a left mouse click. There should be a line along the bottom of cell E11.

F11
F12
F13
F14
F15

Using the Plus-Point Method, subtract E11 from E10. Type a +, point to
E10, type a -, point to E11. Press enter.
Copy C11
Copy C12
Copy C13
Underline F14
Using AutoSum, add F7 through F14.

To use AutoSum: Point to F7, click and hold down the left mouse button and drag down
until F7 through F15 are highlighted. Point to the (Sigma) sign in the Standard Tool Bar and
click the left mouse button. The total of F7 through F14 will be placed in F15.
F18
E19
E20
E20
E21
E22
E22
E23
E24

Copy C14
Copy C15
Copy C16
Underline
F20 Using the Plus-Point Method, subtract E20 from E19.
Copy C17
Copy C18
Underline
F22 Using the Plus-Point Method, subtract E22 from E21.
Copy C19
Copy C20
Underline E24
44

F24
E25
E26
F26
F27
F28

Using the Plus-Point Method, subtract E24 from E23.

Copy C21
Copy C22
Underline E26
Using the Plus-Point Method, subtract E26 from E25.
Underline F26
Using AutoSum, add F18 through F26.
Underline F27
Using the Plus-Point Method, add F15 and F27.
Double Underline F28.

To Double Underline: Do this the same way you underline, except before clicking on the
bottom of the cell to place the line there, click on the double underline from the choices to
the right of the cell within the box.
F34
F35
F36
F37
F38
F39
F42
F43
F44
F48
F49
F50

Copy C23
Copy C24
Copy C25
Copy C26
Copy C27
Underline F38
Using AutoSum, add F34 through F38.
Copy C28
Underline F42
Copy F42
Underline F43
Using the Plus-Point Method, add F39 and F43.
Underline F44
Copy C29
Underline F48
Copy F48
Underline F49
Using the Plus-Point Method, add F44 and F49.
Double Underline F50

We have successfully transformed our input section into a balance sheet in proper format.
Output:

45

Fig.1.3: Output

Exercise 2
Round Function and Format Option
The Round Function rounds a number to a specified number of digits.
Syntax: ROUND(number, num_digits) where number is the number to be rounded and
num_digits specifies the number of digits to which the Number is to be rounded
The rounding options with respect to the num_digits parameter are
Greater than 0, then number is rounded to the specified number of decimal places.
Equal to 0, then number is rounded to the nearest integer.
Less than 0 or a negative value then number is rounded to the left of the decimal.
ROUNDUP(number, num_digits) here a real number is rounded up depending on the second
argument num_digits.
If num_digits > 0, then number is rounded up to the specified number of decimal
places. If num_digits = 0, then number is rounded up to the nearest integer.
ROUNDDOWN(number,num_digits) here a real number is rounded down depending on the second

46

argument num_digits.
If num_digits > 0, then number is rounded down to the specified number of decimal places.
If num_digits = 0, then number is rounded down to the nearest integer.
Using the Format Cells option:
The Number tab of the Format cells dialog box has the options Number, Currency, and
Accounting categories which allow decimal places configuration for the selected number of
cells. We can specify up to 30 decimal places.

Fig.2.1: Output

Exercise 3
Change Case & Trim
The Text functions UPPER, PROPER, LOWER and TRIM are used to convert text from
uppercase to lowercase or from lowercase to proper case to make it more readable.

47

Fig.3.1: Output

Exercise 4
IF Function
The logical IF function is used to set a particular value in a cell based on a conditional
expression. This function can be used to conduct conditional tests on values and formulas.
Syntax IF(logical_test, value_if_true, value_if_false)

Logical_test - is an expression that can be evaluated to TRUE or FALSE.

Value_if_true - is the value that is returned if logical_test is TRUE.

Value_if_false - is the value that is returned if logical_test is FALSE.

Fig.4.1: Output

48

Exercise 5
MIN Function
Returns the smallest number in a set of values.
Syntax: MIN (number1, number2,.)

Number1, number2, are 1 to 255 numbers for which you want to find the minimum value.

Number1, Number2 can be numbers or names, arrays, or cell references that contain numbers.

If the arguments are to include logical values and text representations of numbers in
a reference we can use the MINA function.

Similar rules hold for the functions MAX, and MAXA.

Fig.5.1: Output

Exercise 6
Date and Time Function
Returns the sequential serial number that represents a particular date. If the cell format
was General before the function was entered, the result is formatted as a date.
Syntax: DATE(year,month,day)

Year: The year argument can be one to four digits. The format of the argument is set
according to the date system configuration in the default operating system.
Month: is a positive integer representing the month of the year from 1 to 12 (January to
December).
Day: is a positive integer representing the day of the month from 1 to 31.

Syntax: DATEDIF (Date1, Date2, Output Format)

The Date1 and Date2 arguments are the two date values or cell references containing date
values. The second argument (Date2) must be greater than the first. The Output Format
argument is a character code typed inside inverted commas. The character code values are:

49

Code
"d"
"m"
"y"
"yd"
"ym"

"md"

Description

Explanation
Days
The number of days between Date1 and Date2.
Months
The number of complete months between Date1
and Date2.
Years
The number of complete years between Date1
and Date2.
Days excluding Years
The number of days between Date1 and Date2,
as if Date1 and Date2 were in the same year.
Months excluding Years
The number of months between Date1 and
Date2, as if Date1 and Date2 were in the same
year.
Days excluding Months and Years The number of days between Date1 and Date2,
as if Date1 and Date2 were in the same month
and the same year
Fig.6.1: Output

Exercise 7
To prepare the Equated Monthly Installment statement
Syntax: PMT(rate,nper,pv,fv,type) - Calculates the payment for a loan based on constant
payments and a constant interest rate.
Rate is the interest rate for the loan.
Nper is the total number of payments for the loan.
Pv is the present value, or the total amount that a series of future payments is worth now (Principal).

Fv is the future value, (Cash balance) to attain after the last payment is made. If fv is
omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type: is the number 0 (zero) payment due at the beginning of the loan period or number
1(one) indicates payments due at the end of the loan period.
Syntax: PPMT (rate, per, nper, pv, fv, type) - Returns the payment on the principal for a given
period for an investment based on periodic, constant payments and a constant interest rate.

Rate is the interest rate per period.

Per specifies the period and must be in the range 1 to nper.
Syntax: IPMT (rate, per, nper, pv, fv, type) - Returns the interest payment for a given period
for an investment based on periodic, constant payments and a constant interest rate.
Rate is the interest rate per period.
Per is the period for which you want to find the interest and must be in the range 1 to nper.
50

Limit sanctioned
Total monthly instalments
Rate of interest
EMI

Rs.13925000
48
11.25% p.a.
=PMT (11.25%/12,48,13925000)
Table 7.1:Loan Data

Principal
Interest

=PPMT(11.25%/12,(first instalment-cell reference),48,13925000)

=IPMT(11.25%/12,(first instalment-cell reference),48,13925000)
Table 7.2: Loan Principal and Interest Function

Output:
Instalment #
1
2
3
4
5
6
7
8
9
10
and so on
47
48

Due date for

payment
1-Nov-07
1-Dec-07
1-Jan-08
1-Feb-08
1-Mar-08
1-Apr-08
1-May-08
1-Jun-08
1-Jul-08
1-Aug-08

3,61,592
3,61,592
3,61,592
3,61,592
3,61,592
3,61,592
3,61,592
3,61,592
3,61,592
3,61,592

2,31,045
2,33,211
2,35,397
2,37,604
2,39,832
2,42,080
2,44,350
2,46,640
2,48,953
2,51,287

1,30,547
1,28,381
1,26,194
1,23,988
1,21,760
1,19,512
1,17,242
1,14,951
1,12,639
1,10,305

1-Sep-11
1-Oct-11
TOTAL

3,61,592
3,61,592
1,73,56,416

3,54,906
3,58,233
1,39,25,000

6,686
3,358
34,31,406

Instalment (Rs)

Principal (Rs)

Interest (Rs)

Table 7.3: Loan Sheet

Exercise 8
Validation of a given PAN number
1.

Length of the PAN number = LEN (C3)

2.

Name the vectors:

ALPHA I6:I31
NUMERIC K6:K14

Second Verification Composition formulae are:

3.

First alphanumeric digit of the PAN number = LEFT (PAN number, 1)

4.

Right most alphanumeric digit of the PAN number = RIGHT (PAN number, 1)

5.

To verify the alphanumeric digit of the PAN number belongs to the ALPHA vector =
LOOKUP (=LEFT (PAN number, 1), ALPHA, ALPHA)
51

6.

To verify the result of the lookup function =

ISERROR (=LOOKUP (=LEFT (PAN number, 1), ALPHA, ALPHA))

Fig.8.1: Formulae for verification

Output:

Fig.8.2: Validation -Output

52

Exercise 9
Find the rank of an ITT student
Find the rank of all the students based on the following class data.

Fig.9.1:Data Sheet
1.

Round the average marks to the nearest integer down.

2.

If average marks and marks in module1, module2, project and online examination
are all more than 60, then the student can be declared as ITT qualified.

3.

Grade is assigned as:

Average Marks
>=70
>=60
>=50
<50

Grade
a
b
c
d
Table 9.1:Grade Data

4.

Use Rank () function for computing rank of ITT qualified students. If a student has
failed, just write n/a.

Output:

Fig.9.2: Output
53

Exercise 10
Using functions to perform calculations on the table
Step 1: Prepare a report on the subscription rates and % saving up to 10 years under given
conditions.

There are 4 issues per month.

Each issue costs Rs.15.

For a subscription >= 2 years, the discount is 15% on the yearly cost.

For a subscription >=5 years, the discount is 18% on the yearly cost.

For a subscription more than 7 years, the discount is 22% on the yearly cost.
Year/s
1
2

No. of issues

You Pay

You Save

% Saving

Table 10.1: Discount Chart

Step 2: Share of trade for modern self-service outlets in the year 2001, 2002, 2003 in
different countries:
Country

Number of outlets counted

Singapore
Malaysia
Philippines
India
Sri Lanka

2001
81,000
42,289
43,212
2,321
3,799

2002
83,000
45,900
43,532
4,673
4,234

% Increasein
2002

% Increase in
2003

2003
86,000
49,898
40,233
7,900
9,676

Table 10.2: Share of Trade

Calculate the shown columns and highlight the countries where the trade has a significant
increase of more than 25% in the year 2002 and 2003.
Step 3: The advertisement revenue of leading newspapers in Mumbai:
Brand Name
Adidas
Britannia
Samsung
MRF

Hindustan Times
41,700
37,69,241
19,29,550
2,38,470

Indian Express
95,343
1,17,488
7,84,055
58,874

The Hindu
7,302
23,799
1,33,639
11,641

The Times of India

28,800
99,480
13,48,832
1,41,764

Table 10.3: Advertisement Revenue

I.

Calculate the total advertisement revenue for the newspapers.

II.

Calculate the total advertisement expenditure made by a brand.

III.

Show the % of expenditure made by a brand with different newspapers.

54

Exercise 11
Creating and formatting Chart
Step 1: Plot a graph (3D-bar) showing the average sales of different commodities in a shop.

Commodity
Shampoo
Face Cream
Hair oil
Toothpaste
Bath Soaps
Liquid Soaps

Jan04
10,899
90,898
5,684
23,456
9,00,123
23,345

Feb04
13,999
1,23,455
10,891
1,23,456
8,45,670
91,800

March04
45,677
9,89,234
16,878
79,898
15,11,300
10,817

April04
19,343
14,56,787
89,343
23,23,450
19,33,710
16,750

Table 11.1: Data Sheet

Fig.11.1: 3-D Bar Chart

Step 2: The sampling viewership count for the year 2003 has resulted in the following graph.
The sampling total was 1,25,89,214 people.
i.

Number of people who watched Sahara Samay.

ii.

Calculate the average viewership for the three best channels

55

Fig.11.2: 3-D Pie Chart

Step 3: Automobile average sales over 3 year period
Automobile/
Year
Toyota
Mahindra
Tata
Qualis
Total
Average
automobile
sales

2000

2001

2002

2003

21,785
7,057
27,999
12,356

28,022
9,262
25,250
32,890

25,040
12,674
24,754
14,564

30,740
32,090
29,321
38,200

Total

Table11.2: Automobile Data

I.

Show the average sales over 4 years for each automobile on a histogram.

II. Show the total average automobile sales for a year on a pie chart.
Output-I

56

Average

Fig.11.3: Histogram Chart- Average Sales over four years

Output-II

Fig.11. 4: Pie Chart-Average Sales of year -2000

Exercise 12
Adding security to the document created
1.

Enter a password to open the spreadsheet bal.xlsx.

2.

Change the save option of the file using the following steps:
I. Change the save Auto recover Information every 5 minutes.
II.

Change the default file location to C: \Users\....\Desktop.

III.

Enable background error checking.

IV.

Change the dictionary language to English (Hindi).

V.

Enable Show Developer tab in the Ribbon.

57

Fig.12.1: Excel Options-Dialog Box

3.

Protect the sheet and enter the unprotect password.

Fig.12.2: Excel Protect Sheet

4.

Protect the workbook structure.

Fig.12.3: Excel Protect Workbook Sheet

58

Exercise 13
Calculate Total Marks and Percentage
Use percentage format to show percentage with % symbol.
Names
Kunal
Akanksha
Kishore
Akash
Manish
Sunil

Roll No.
4
8
11
15
7
2

English
64.00
64.00
65.00
65.00
94.00
68.00

Maths
100.00
86.00
96.00
56.00
42.00
35.00

Science
89.00
87.00
68.00
89.00
65.00
98.00

Total Marks Percentage

Names
Mansi
Sanjay
Rajeev
Saurabh
Rajesh
Akash
Vishal
Deepa

Roll No.
9
5
14
13
15
12
6
10

English
21.00
44.00
55.00
45.00
55.00
29.00
84.00
35.00

Maths
76.00
88.00
67.00
87.00
85.00
29.00
46.00
66.00

Science
98.00
56.00
47.00
37.00
25.00
95.00
23.00
45.00

Total Marks Percentage

Table 13.1: Excel Data Sheet

Output:

Fig.13.1: Output Sheet

59

Exercise 14
Implement the formulae for calculating VAT

Fig.14.1: Data Sheet

1.

Calculate VAT and Net Sales (Sales + VAT) using the relative cell references with
the formula. E.g. (=C4 * C24)

2.

Also use Excel built in functions for calculating Total Sales, Average Sales, Maximum
Sales, and Minimum Sales.

Fig.14.2: Formulae Sheet

3. Calculate VAT and Net Sales (Sales + VAT) using the absolute cell references with the
formula. E.g (=C4 * C$24)

60

Fig.14.3: Excel Protect Sheet

4.

Calculate Vat 1, Vat 2 and Vat 3 using absolute cell references.

VAT 1= 7.5% VAT 2 = 10% VAT 3 =12.5%

Fig.14.4: Output Sheet

Exercise 15
To compute the Net Tax payable for an individual
Mr. X a resident assessed, his date of birth is 2nd Jan 1980. He is a govt. employee. He resides in
Madras. He receives the following emoluments during the previous year ending March 31, 2010:

61

Basic salary
House rent allowance
Dearness allowance
Commission
Entertainment allowance
Medical allowance
City compensation allowance
He paid house rent
NSC, VIII issue
Tax Deducted at source

Rs. 3,00,000 per annum

Rs. 50,000 per annum
20% of basic salary
2% of basic salary as per contract
Rs. 10,000 per annum
Rs. 16,000 per annum
Rs. 6,000 per annum
Rs. 35,000. He contributes Rs. 35,000 in recognized provident fund, Subscription to
Rs. 15,000.
Rs. 2,500 per month

Solve the above problem using the following format:

Name
Hemant Bhatia
DOB
12-12-1991
Gender
M
Salary Information
Basic Pay
DA
HRA
City Compensation Allowance
MA
Commission
Entertainment allowance
Any other Allowances
Gross Income
Deductions:
Provident Fund
NSC, VIII issue
House Rent Paid
Total Deductions
Net Taxable Income

Age

Rs.

Rs.

Table 15.1: Format Sheet

1.

Implement the formulas for calculating Gross income, Total Deductions, Net taxable income.

2.

Calculate the tax liability of Mr. X in the given format using function if ( ) wherever
applicable.
Tax
Surcharge
Education Cess
Higher Education
Cess
TOTAL TAX
62

Less: TDS
NET TAX
Table15.2: Tax Liab ility
Use the following Tax slab for Tax calculations :
Net Income
Range
Up to Rs
1,60,000
Rs. 1,60,000
Rs.3,00,000
Rs. 3,00,000
Rs. 5,00,000

Rs. 5,00,000
Rs. 10,00,000

Above Rs.
10,00000

Income Tax rate Surcharge

Education Cess

Nil

Nil

Nil

Higher Education Cess

Nil`

10% of (Total
Income Rs.
1,60,000)
Rs. 14,000 +
20% of (Total
Income Rs.
3,00,000)
Rs. 54,000 +
30% of (Total
Income Rs.
5,00,000)
Rs. 2,04,000 +
30% of (Total
Income Rs.
10,00,000)

Nil

2% of Income
Tax

1% of Income
Tax

Nil

2% of Income
Tax

1% of Income
Tax

Nil

2% of Income
Tax

1% of Income
Tax

10% of Income 2% of (Income 1% of (Income

Tax
Tax + Surcharge Tax + Surcharge

Table 15.3: Tax Calculations

Output:

Fig.15.1: Output sheet

63

Exercise 16
To compute the consolidated sales and employee-wise commission
Consider the following sales for the month of May:
DATE
02-06-2008
02-06-2008
03-06-2008
05-06-2008
06-06-2008
06-06-2008
07-06-2008
07-06-2008
07-06-2008
07-06-2008
08-06-2008
08-06-2008
08-06-2008
08-06-2008
08-06-2008
09-06-2008
09-06-2008
10-06-2008
11-06-2008
`11-06-2008

EMPLOYEE
Kunal
Sahil
Namit
Raman
Kamal
Ziya
Suneet
Kamal
Sahil
Ziya
Kunal
Namit
Sumit
Suneet
Sumit
Kamal
Suneet
Kunal
Kunal
Ziya

PRODUCT
A
A
A
A
A
A
A
B
B
B
B
B
B
B
C
C
C
C
A
C

SALES
Rs. 1,800.00
Rs. 1,500.00
Rs. 2,500.00
Rs. 3,500.00
Rs. 4,500.00
Rs. 5,800.00
Rs. 6,500.00
Rs. 1,900.00
Rs. 4,800.00
Rs. 2,400.00
Rs. 6,500.00
Rs. 6,800.00
Rs. 9,500.00
Rs. 4,800.00
Rs. 1,800.00
Rs. 2,300.00
Rs. 2,100.00
Rs. 3,500.00
Rs. 6,500.00
Rs. 3,500.00

COMMISSION
Rs. 90.00
Rs. 75.00
Rs. 125.00
Rs. 175.00
Rs. 225.00
Rs. 290.00
Rs. 325.00
Rs. 95.00
Rs. 240.00
Rs. 120.00
Rs. 325.00
Rs. 340.00
Rs. 475.00
Rs. 240.00
Rs. 90.00
Rs. 115.00
Rs. 105.00
Rs. 175.00
Rs. 325.00
Rs. 175.00

Table 16.1: Excel Data Sheet

Create the sales for the month of May, June and July on different Excel sheets using the
above sample data, using the Consolidate option on the Data ribbon.

Fig.16.1: Data Ribbon- Data-Consolidate

Compute the consolidated sales (product wise) and commission (Employee wise) on a
different sheet.
Output:
a.

Consolidated Sales Product Wise

64

Fig.16.2:Consolidated Data
b.

Consolidated Sales and Commission Employee Wise

Fig.16.3:Employee-wise Consolidation

Exercise 17
Using lookup function
For the given phone book data, implement the following queries:
1.

Use lookup function to find out the city of F.

2.

Use lookup function to find out the country of R.

3.

Use Array option in lookup function to find out the country of R.

4.

Use Array option in lookup function to find out the phone number of T.

5.

Check if lookup function is case

6.

e.g.: try to lookup the phone number of A and the phone number of a.

7.

Try to lookup the city of B (B not available in the list).

8.

Try to lookup the city of E (E not available in the list).

9.

Try to lookup the city of G (G not available in the list).

10.

Lookup the name of the person having the phone number 12345678.

11.

Use Array function in Lookup to look up the name of the person having the phone number

12345678.
12.

Lookup the name of the person having the phone number 12355678 (not available in the list).

13.

Lookup the name of the person having the phone number 74185500.

PHONEBOOK
Name
A
C

Phone
12345678
87654321

City
City1
City2
65

Country
Country1
Country2

F
R
T
G

12365487
32145678
52413876
74185263

City3
City4
City5
City6

Country3
Country4
Country5
Country6

Table 17.1: Phonebook Data

Name the vector ranges to be used in the lookup function respectively.
Vector A3:A8 = Name

Vector B3:B8 = phone

Vector C3:C8 = city

Vector D3:D8 = country

Array = phonebook

Output for query 1:

Here the lookup function refers to the Name vector (highlighted in blue border) and the city vector

(highlighted in green border).

Fig.17.1: Lookup City of F

Exercise 18
Using Vlookup function
Partno.

111
222
333
444
555
666
777

Units of
Measurement
nos
kgs
metres
kgs
kgs
nos
nos

Rate

6500
80
20
300
750
55
90

Category

A
C
C
B
B
C
C

Location

Stores 1
Stores 2
Stores 3
Stores 1
Stores 1
Stores 2
Stores 1

Reorder
Level
2000
500
500
900
800
500
500

Reorder
qty
100
75
60
40
40
50
30

Supplier

A
H
Y
B
C
E
G

Table 18.1: Data Sheet

From the above given PARTLIST data prepare a purchase order sheet as shown in the output.

66

Fig.18.1: List: Data Validation for Data Entry

Hints:
1.

Name the vector name Partlist for the data array.

2.

Part No: Set the validation condition as shown in the Data Validation dialog box.

3.

The vlookup formula in the respective columns are:

Unit Rate =VLOOKUP(B17,Partlist,3)

Units =VLOOKUP(B17,Partlist,2)

Location =VLOOKUP(B17,Partlist,5)

Supplier=VLOOKUP(B17,Partlist,8)

Order Qty=VLOOKUP(B17,Partlist,7)

Total Amount=Order Qty * Unit Rate

Output:

Fig.18.2: Purchase Order

67

Exercise 19
Payroll Assignment
1.

Create a Payroll for the month of Mar 2004.

Emp No.
1
2
3
4
5

2.

Employee Name
P SUSHMA
P SUSHMA
P. JANAKI
CHHAYA
ASHA SACHDEV

Basic Salary
Rs. 15380.00
Rs. 6,700.00
Rs. 8,980.00
Rs. 8,980.00
Rs. 7,800.00

Joining Date
17/031975
17/03/2000
15/06/1973
15/06/1978
25/06/1967

Insert a new column Dearness Allowance at the end and calculate it as 35.33% of Basic

Salary.
3.

Insert a new column House Rent Allowance (HRA) and calculate it as 13% of Basic Salary.

4.

Insert two more columns such as Spl. Allowance (Rs. 2000.00), PF deduction (12% of Basic

Salary).
5.

Last column is of Net Salary which is Basic Salary + DA +HRA+ Spl. Allowance - PF
deduction.

6.

Sort the database in ascending order of basic salary.

7.

Format Emp. No, Emp. Name, etc. in italics.

8.

Save this sheet as MAR.

9.

Format Joining Date as dd.mm.yy.

10.

Save the file as Payroll.

11.

Display the current date and time.

12.

Try the following functions.

Now()

Today()

Lower()

Left()

Proper()

Exercise 20
Annual Report
1.

Create the following, Companys Annual Report.

Name
Prumi
Suman
Sushma
Chayya

Job

Salary

Analyst
Officer
Sys. Admin
Manager

12000
12000
15000
12000

68

Joining Date
31/12/99
02/11/98
03/10/97
04/05/00

2.

The heading (i.e. Companys Annual Report) should be centered.

3.

Format the table.

4.

Insert one column at the end and give the title as Bonus. Bonus is 15% of salary.

5.

Calculate the average salary of the company.

6.

Save this sheet as Annual Report.

7.

Sort the database in ascending order of Salary.

8.

Rename the sheet as Salary Report.

9.

Display the current date and time.

10.

Try the following functions.

Upper()

Sqrt()

Sum()

Max()

Min()

Exercise 21
Employee Data Management
1.

Make an employee database having the following fields:

Emp-id
Name Dept.
Name Title
Birth Date
Basic Salary

2.

Add five records to the database.

3.

Save the file with the name as Employee in the C:\Training\XL. (It should have
password while opening the file).

4.

Rename the Worksheet as March Details.

5.

Add the following as the third record in the database.

Name SURJIT
Department Name EDP
Title Manager
Birth Date 10th Oct.; 1952. Basic Salary 15000/00

6.

Change the spelling of the name as SURJEET for the previous record.

7.

Generate the Employee-Id automatically.

8.

Make the labels bold and in blue color.

69

9.

Format salary as 2 decimal, currency.

10.

Calculate commission as 20% of Basic Salary, P.F. as 10% of Basic Salary and
calculate Gross and Net Salary.

11.

Try the following functions.

Average()

Count()

Upper()

Concatenate()

Right()

Excel Tips
1.

Selecting cells that contain only text

a.

Press F5, or choose Edit, Go To;

b.

In the Go To dialog box, click Special.

c.

In the Go To Special dialog box, select Constants

d.

Click OK.

Fig.1.1: Go To Special
2.

To apply formatting only to cells containing text, use the Conditional Formatting technique:

a.

Select a range of cells containing text.

b.

From the Format menu, select Conditional Formatting.

c.

In Condition 1, select Formula Is from the dropdown list.

d.

In the Formula Box, enter the formula: =ISTEXT(A1)

e.

Click Format.

f.

Select the desired format from the Format Cells dialog box, and then click OK.

g.

Click OK to close the Conditional Formatting dialog box

70

Fig.1.2: Conditional Formatting

3.

To change the formatting from Text to Date, use the Text to Columns technique:

a.

Select the column formatted as date.

b.

Select Data -> Convert Text to Table (in Data Tools Group).

c.

Select the Fixed width option button and click Next.

d.

Click Next.

e.

Select the Date option button in the Column data format section, and click Finish.

Fig.1.3: Convert Text to Columns Wizard

4.

To color rows based on text criteria:

a.

Select a set of cells in the region.

b.

From the Format menu, select Conditional Formatting.

c.

In Condition 1, select Formula Is, and type =$D1=profit.

d.

Click Format, select the Font tab, select a color, and then click OK.
71

e.

In Condition 2, select Formula Is, and type =$D1=Bills.

f.

Repeat step 4, select a different color than you selected for Condition 1, and then click

OK.
g.

In Condition 3, select Formula Is, and type =$D1=Loss.

h.

Repeat step 4, select a different color than you selected for Condition 1 and
Condition 2, and then click OK twice.

Fig.1.4: Conditional Formatting- Criteria based Color

5.

Calculating the Average for Numbers Meeting Specified Criteria

a.

To calculate the average of all prices in column A that are higher than 200.

b.

Use the IF and AVERAGE functions in the following Array formula{=AVERAGE(IF(A2:A7>B2,A2:A7))}

Fig.1.5: Nested Functions

6.

Rounding Numbers that Meet Specified Criteria

a.

Rounding numbers in column A to zero decimal places

b.

With the criteria except for those that have 5 in the first decimal place

c.

Use the IF, MOD, and ROUND functions in the following formula= IF(MOD(A2,1)=0.5,A2,ROUND(A2,0))

72

Fig.1.6: Nested Functions

7.

Avoid error displays in formulas

a.

To avoid the error messages in a formula

b.

Using the IF() function to check for an error.

c.

Try out the formula which displays a blank if the division results in an
error. =IF(ISERROR(A1/B1),,A1/B1)

d.

The original formula serves as the argument for the ISERROR() function, and it
repeats as the last argument of the IF() function=IF(ISERROR(OriginalFormula),,OriginalFormula)

8.

Criteria based Formula

a.

List of Define Names

b.

Parts =Sheet1!$A$2:$A$10

c.

Price =Sheet1!$C$2:$C$10

d.

Quantity=Sheet1!$B$2:$B$10

e.

The cell E2 contains: A880Q

f.

Formula in cell F2:{=SUM(IF(Parts=E2,Price*Quantity,0))}

Fig.1.7: Nested Functions

73

9.

Create A Drop-Down List Of Possible Input Values

To avoid and to minimize errors during user input, use Excels data validation feature to add
a drop-down list without having to write any macros. Data validation is to ensure that a cell
entry is of the proper data type (text, number, or date) and within the proper numeric range.
The drop-down list produced with the feature appears when a user clicks the cell.

Type the list of valid entries in a single column.

Select the cell or cells that will display the list of entries.

Choose Data, Validation, and select the Settings tab.

From the Allow drop-down list, select List.

In the Source box, enter a range address or a reference to the items that you
entered in step 1.

Make sure the In-cell dropdown box is selected.

Click OK.

If your list is short, you can skip step 1 and type the list entries directly in the Source
box in step 5, separating items with a comma.
The Data Validation dialog box has two other tabs. Click Input Message to add a
prompt that will appear when a user selects a cell. Click Error Alert to specify a
custom error message if the users entry is invalid.

Fig.1.8: Nested Functions

10.

Split a Worksheet
For easier viewing of parts of a worksheet we can split a worksheet into multiple
resizable panes.
a.

Select the cell in the worksheet where the data is to be viewed in concurrence.

b.

Click the Split button on the View tab.

c.

Notice the split in the screen by which we can manipulate each part separately.

74

Fig.1.9: Split View

11.

Freeze Rows and Columns

We can select a particular portion of a worksheet to stay static while we work on
other parts of the sheet.
This is accomplished through the Freeze Rows and Columns Function.
a.

Click the Freeze Panes button on the View tab.

b.

Either select a section to be frozen or click the defaults of top row or left column.

c.

To unfreeze, click the Freeze Panes button

d.

Click Unfreeze.

Fig.1.10: Freeze Panes

12.

Hide Worksheets
a.

Select the tab of the sheet to be hidden

b.

Right-click on the tab

c.

Click Hide

75

Fig.1.11: Freeze Panes

13.

To unhide a worksheet
a.

Right-click on any worksheet tab

b.

Click Unhide

c.

Choose the worksheet to unhide

Fig.1.12: Freeze Panes

14.

Set Print Titles

The print titles function allows to repeat the column and row headings at the beginning of
each new page to make reading a multiple page sheet easier to read when printed.

a.

Click the Page Layout tab on the Ribbon

b.

Click the Print Titles button

c.

In the Print Titles section, click the box to select the rows/columns to be repeated

d.

Select the row or column

e.

Click the Select Row/Column Button

f.

Click OK

76

Fig.1.13: Freeze Panes

15.

Print a Range
To print a portion of a worksheet using the Print Range function:

16.

a.

Select the area to be printed.

b.

Click the Print Area button on the Page Layout tab.

c.

Click Select Print Area

Create a Header or Footer

a.

Click the Header & Footer button on the Insert tab.

b.

This will display the Header & Footer Design Tools Tab.

c.

To switch between the Header and Footer, click the Go to Header or Go to

Footer button.

Fig.1.14: Header & Footer Tools

17.

d.

To insert text, enter the text in the header or footer.

e.

To enter pre-programmed data such as page numbers, date, time, file name or
sheet name, click the appropriate button.

f.

To change the location of data, click the desired cell.

Basic Sort
A basic descending or ascending sort based on a column of data in a worksheet:
a.

Highlight the cells to be sorted.

77

b.

Click the Sort & Filter button on the Home tab.

c.

Click the Sort Ascending (A-Z) button or Sort Descending (Z-A) button.

Fig. 1.15: Sort & Filter

18.

Custom Sorts
To sort on the basis of more than one column:
a.

Click the Sort & Filter button on the Home tab

b.

Choose the column on which the first sort is to be performed.

c.

Click Add Level.

d.

Then choose the next column to be sorted.

e.

Click OK.

Fig.1.16: Custom Sort

19.

Filtering
Filtering allows displaying only data that meets certain criteria. To filter:
a.

Click the column or columns that contain the data to be filtered.

b.

On the Home tab, click on Sort & Filter.

c.

Click Filter button.

d.

Click the Arrow at the bottom of the first cell.

e.

Click the Text Filter.

78

f.

Click the Words you wish to Filter.

g.

To clear the filter click the Sort & Filter button.

h.

Click Clear.

Fig.1.17: AutoFilter
20.

Filter records to unique records

a.

Select the range containing records (column A in the Fig.1.19).

b.

From the Data menu, select Filter, and then Advanced Filter.

c.

In the Advanced Filter dialog box, select Copy to another location.

d.

In the Copy to box, select a cell, select Unique records only and click OK (ensure that
the List range is correct before clicking OK).

e.

The unique records are in cells H2:H9 (see Fig.1.19.).

Fig.1.18: Advanced Filter

79

21.

Using Paste Special Dialog box -Copying Values between

Worksheets To copy results of a formula but not the formula itself:

a.

Select the range of cells containing the values to be copied.

b.

Click the Copy button on the toolbar.

c.

Select the destination worksheet /cell to paste the values.

d.

Select the paste special menu option. The paste special dialog box opens.

e.

In the paste special dialog box click the values /values with number format option

Fig.1.19: Paste Special Menu

Fig.1.20: Paste Special Dialog Box

22.

Transpose
The paste special dialog box helps to transpose data from rows to columns, and vice versa.

80

Fig. 1.21: Paste Special Menu (Transpose)

23.

HLookup
Hlookup refers to Horizontal lookup. Its purpose is to look up a value or text
horizontally across a row. When the value is found, it will return a value in another
row that corresponds to the column of that value. The table presents the ages in the
top row and the left column presents the height. In the table are the weight range that
corresponds to the age and the height as shown below:

Fig.1.22: Data Table

Using the formula, we can lookup the age (6 mths) across row 1. We will find 6 mths in column
formula can return any value below column E, depending on the value given in the formula.

24.

a.

Select a blank cell.

b.

Enter the formula =Hlookup(6 mths,$B1:$G6,4,false).

c.

The formula check for the value 6 mths in the 1st row $B1:$G1.

d.

The horizontal position (Column E) will be captured.

e.

The number 4 in the formula indicates that the result to return, when the value
6 moths is found, is in row 4 (the result returned is 7.8).

f.

The false that follows is a switch, to indicate that the exact match value is to be
found. Without the false, it will return the closest value that is greater than the
value to be found

Using Offset function in a sum function

a.

The offset function such that it is referenced to the cell C1.

b.

The formula in the base cell A1=OFFSET(A1,0,2,1,1).

c.

The offset function to stay in the same row

d.

Then number 2 to indicated to move 2 columns to the right of the base cell A1 (Column

A is numbered 0)
81

e.

The last two numbers are 1 to indicate that the offset function to point to one single cell

C1.
f.

The result will show the value in cell C1, i.e. the number 43.

g.

Enclose the offset function with a sum function =sum(OFFSET(A1,0,2,1,1)).

The result continues to show 43.

h.

To sum the range C1:C2, the formula is =sum(OFFSET(A1,0,2,2,1)) The result is 75.

Fig.1.23: Offset Function

25.

Viewing Data Form Records

Viewing excel data through a data form, in excel 2010 the Form button is added to the Quick

Access Toolbar.
a.

Click the arrow next to the Quick Access Toolbar, and then click More Commands

b.

In the Choose commands from box, click All Commands.

c.

In the list box, select the Form button , and then click Add.

Fig.1.24: Data Form

Case Studies
CS1: Break Even Analysis/ Marginal Costing Case Study
Marginal Costing An Introduction
82

Marginal Cost Statement or Cost-Volume-Profit (CVP) is a form of cost accounting in managerial

economics for short-run decision making whether to produce or not in the short run. Excerpts
from Wikipedia on Marginal Cost and Break Even Analysis are available in Annexure A & B
respectively of this Case Study, for a ready reference and better understanding of this case study.

Marginal Costing Case Study An Introduction

This Case Study aims to introduce the use of MS-Excel as a tool for financial analysis/ reporting

requirements, and in the process learn to:

Develop typical financial statement

Define formulae to undertake calculations including absolute cell references

Replicate formulae use a formulae for multiple similar calculations

Use Sum (Sigma) Function of MS-Excel and last, but not the least

Explore simulation with MS-Excel

Template & Final Statement

We have included with this case study a template in the folder Case Study Files giving
you the structure of the required statement as follows:

Fig. 1.1: Template & Final Statement

Formulae/ Functions Used
The formulae/ functions used in this Case Study are available in the following screen shot:

83

Fig. 1.2: Formula

Case Study - Steps
We shall be taking the following steps to undertake the required calculations for this case study:

1.

Sales Revenue:
a.

Select Cell D6 by either clicking on it using the Mouse or by using the direction keys
(Left/ Right/ Up/ Down Keys), as the cell in which we wish to undertake the
next operation.

b.

Press the Equal-To key (=) to indicate that you wish to enter a formulae in this cell.

c.

Select Cell B6 containing Sales Quantity as the first value to be used in the
formulae, using the Mouse or Arrow Keys

d.

Press the Star (*) key (Shift +8) to indicate that the previous value has to be
multiplied with the next value.

e.

Select Cell C6, the cell containing the Sales Rate, as the next value to be used in the
formulae to calculate Sales Revenue

f.

Press <Enter> Key to make MS-Excel Calculate the Sales Revenue.

g.
2.

If you now change either the Sales Quantity or the Sales Rate at the respective
cells, you would find that the Sales revenue in this cell automatically changes.
Direct Material Cost Calculation

a.

Select Cell D8 by either clicking on it using the Mouse or by using the direction keys
(Left/ Right/ Up/ Down Keys), as the cell in which we wish to undertake the
next operation.

b.

Press the Equal-To key (=) to indicate that you wish to enter a formulae in this cell.

c.

Select Cell C8 containing Direct Material Unit Rate as the first value to be used
in the formulae, using the Mouse or Arrow Keys

d.

Press the Star (*) key (Shift +8) to indicate that the previous value has to be
multiplied with the next value.

e.

Select Cell C8, the cell containing the Sales Quantity, as the next value to be used in
the formulae to calculate Sales Revenue

f.

Press the Function Key Number 4 (F4) to make this cell reference as Absolute or fixed,
such that when we replicate this formulae for next two values, this reference does not

84

change.
g.

Press <Enter> Key to make MS-Excel Calculate the Sales Revenue.

An explanation about Relative Cell References and Absolute Cell References
would be provided by the Faculty emphasizing the utility of using cell
references in typical statements.

3.

Replicating Direct Material Cost formulae for Direct Labor and Direct Expenses
a.

Select Cell D8 by either clicking on it using the Mouse or by using the direction keys
(Left/ Right/ Up/ Down Keys), as we wish to replicate the formulae in this cell
for the next two cells.

b.

Press Ctrl+C (While keeping the Control Key depressed, press the C Key) to copy the
formulae given in the currently selected cell.

c.

Select Cells D9 and D10 by either using the Mouse or Direction Keys. In case of mouse
selection, click on cell D9 and drag till Cell D10. In case you wish to select cells using
arrow keys, press Down Arrow Key once, then press Full Stop (.) to indicate a range for
selection and press the Down Arrow Key again. In either case, you would find the area

D9..D10 highlighted.

4.

5.
6.

d.

Press Ctrl+V (While keeping the Control Key depressed, press the V Key) to PASTE
the copied formulae to respective cells.

e.

Voila the Direct Labor and Direct Expenses have been computed, using the process

defined in earlier cell

Total Variable Cost
a.

Select Cell D11, as we wish to calculate the Total Variable Cost in this cell.

b.

Yes, we can press = sign and specify that the Direct Material, Direct Labor and
Direct expenses to be added one by one! What if there are dozens, hundreds
and thousands of values Impossible! Fortunately, MS-Excel has the Sum
Function, which comes in handy for this job.

c.

Click on Sigma Sign in the Standard Bar, to indicate that Summation has to be
undertaken:

d.

MS-Excel automatically selects the Sum Range as D8..D10, which is what we

require to compute the Total Variable Cost.

e.

Press <Enter> Key to make MS-Excel Calculate the Total Variable Cost.

Unit Variable Cost Please follow the steps given in earlier step for computing Total
Variable Cost for Unit Variable Cost in Cell C11.
Total Contribution
a. Select Cell D12 as this is the cell in which we have to compute Total Contribution
b. Total Contribution is Sales Revenue less Total Variable Cost.
c. Press the Equal-To key (=) to indicate that you wish to enter a formulae in this cell.
85

d.

Select Cell D6 containing Sales Revenue as the first value to be used in the
formulae, using the Mouse or Arrow Keys

e.

Press the Minus Key (-) key to indicate that the next value has to be subtracted
from previous value.

f.

Select Cell D11, the cell containing Total Variable Cost, as the value to be
subtracted from revious value.

g.

Press <Enter> Key to make MS-Excel Calculate the Total Contribution.

7.

Contribution Per Unit: Please follow the steps given in earlier step for computing
Total Contribution, for Contribution per Unit.

8.

Profit/ (Loss): Profit or Loss is Contribution less Fixed Cost.

9.

Break Even Point: Break Even Point is computed by dividing the Fixed Cost with Contribution

Per Unit.
10.

Break Even Sales: Break Even Sales are computed by multiplying Break Even Point with
Selling Price.

Simulation What-IF Analysis

Electronic Spreadsheets like MS-Excel are great tools to undertake Simulation or What-IF Analysis
as they recalculate all computations/ formulae defined in the worksheet in the event of any
change in the data values. In our endeavor to explore this facility as a part of this case
study, you are required to undertake the following simulations using the final statement:
1.

2.

3.

The Sales Manager has given a proposal to the Management to consider reduction
of Selling Price by 10%, which is expected to increase Sales Revenue by 20%. Do
you recommend this proposal considering the effect on BEP and expected Profit?
The Sales Manager has given a proposal to the Management to consider increase the Selling
Price by 5%, which is not expected to have any effect on Sales Revenue. Do you
recommend this proposal considering the effect on BEP and expected Profit?
What would be the Break Even Point (BEP) and Break Even Sales (BES) with following Data:
Selling Price: Rs.120; Sales: 1,500 Units. Fixed Cost: Rs.25,000/-; Per Unit Direct Costs:

Material: Rs.6/-, Labour: Rs.14/- and Direct Expenses: Rs.10/- each. Case Study Assignment
1.

Compute Percentage for Variable Cost, Contribution, Fixed Cost and Profit/ Loss.

2.

Prepare the Structure of Marginal Cost Statement, as available in the Sample

File yourself.

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Annexure A
Break Even Analysis

The Break-Even Point is where Total Costs equal Sales. In the Cost-Volume-Profit Analysis model,

Total Costs are linear in volume.

In economics & business, specifically cost accounting, the break-even point (BEP) is the
point at which cost or expenses and revenue are equal: there is no net loss or gain, and
one has broken even. A profit or a loss has not been made, although opportunity costs
have been paid, and capital has received the risk adjusted, expected return.
For example, if a business sells less than 200 tables each month, it will make a loss, if it
sells more, it will be a profit. With this information, the business managers will then need to
see if they expect to be able to make and sell 200 tables per month.
If they think they cannot sell that much, to ensure viability they could:
1.

Try to reduce the fixed costs (by renegotiating rent for example, or keeping better
control of telephone bills or other costs)

2.

Try to reduce variable costs (the price it pays for the tables by finding a new supplier)

3.

Increase the selling price of their tables

Any of these would reduce the break-even point. In other words, the business would not
need to make so many tables to make sure it could pay its fixed costs.
Computation
In the linear Cost-Volume-Profit Analysis model, the break-even point (in terms of Unit Sales
(X)) can be directly computed in terms of Total Revenue (TR) and Total Costs (TC) as follows:

87

Where:

TFC is Total Fixed Costs,

P is Unit Sale Price, and

V is Unit Variable Cost.

The Break-Even Point can alternatively be computed as the point where Contribution equals Fixed
Costs. The quantity (P-V) is of interest in its own right, and is called the Unit Contribution Margin C): it is
the marginal profit per unit, or alternatively the portion of each sale that contributes to Fixed Costs Thus
the break-even point can be more simply computed as the point where Total Contribution

= Total Fixed Cost:

In currency units (sales proceeds) to reach break-even, one can use the above calculation and
multiply by Price, or equivalently use the Contribution Margin Ratio (Unit Contribution Margin
over Price) to compute it as:

R=C Where R is revenue generated, C is cost incurred i.e.

Q X P(Price per unit)=FC + Q X VC(Price per unit)
Q X P - Q X VC=FC
Q (P-VC)=FC or
Q=FC/P-VC=Break Even Point
Application
The break-even point is one of the simplest yet least used analytical tools in management. It helps to

88

provide a dynamic view of the relationships between sales, costs and profits. A better
understanding of break-even, for example, is expressing break even sales as a percentage of
actual sales-can give managers a chance to understand when to expect to break even (by
linking the percent to when in the week/month this percent of sales might occur).

The break-even point is a special case of Target Income Sales, where Target Income is 0
(breaking even).

Annexure B
Cost-Volume-Profit Analysis
Cost-Volume-Profit (CVP), in managerial economics is a form of cost accounting. It is a
simplified model useful for elementary instruction and for run decisions.
Cost-volume-profit (CVP) analysis expands the use of information provided by breakeven analysis.
A Critical part of CVP analysis is the point where total revenues equal total costs (both fixed and
variable costs). At this breakeven point (BEP), a company will experience no income or loss. This

BEP can be an initial examination that precedes more detailed CVP analysis
Cost-volume-profit analysis employs the same basic assumptions as in breakeven analysis. The

assumptions underlying CVP analysis are:

The behavior of both costs and revenues is linear throughout the relevant range of activity. (This

assumption precludes the concept of volume discounts on either purchased materials or

sales.) Costs can be classified accurately as either fixed or variable. Changes in activity
are the only factors that affect costs.
All units produced are sold (there is no ending finish goods inventory). When a company
sells more than one type of product, the sales mix (the ratio of each product to total sales)
will remain constant.
The components of Cost-Volume-Profit Analysis are:

Level or volume of activity

Unit Selling Prices

Variable cost per unit

Total fixed costs

Sales mix

Assumptions
CVP assumes the following:

Constant sales price;

89

Constant variable cost per unit;

Constant total fixed cost;

Constant sales mix;

Units sold equal units produced.

These are simplifying, largely linearizing assumptions, which are often implicitly assumed
in elementary discussions of costs and profits. In more advanced treatments and practice,
costs and revenue are nonlinear and the analysis is more complicated, but the intuition
afforded by linear CVP remains basic and useful.
One of the main methods of calculating CVP is Profit volume ratio: which is (contribution /
sales)*100
contribution stands for Sales minus variable costs. Therefore it
gives us the profit added per unit of variable costs.

Model

Basic graph of CVP, demonstrating relation of Total Costs, Sales, and Profit and Loss
The assumptions of the CVP model yield the following linear equations for total costs and
total revenue (sales):
Total Costs = Fixed Costs + Unit Variable Cost Number of Units
Total Revenue = Sales Price Number of Units
These are linear because of the assumption of constant costs and prices, and there is no
distinction between Units Produced and Units Sold, as these are assumed to be equal.
Note that when such a chart is drawn, the linear CVP model is assumed, often implicitly.

90

In symbols:
TC = TFC + V X
TR = P X
Where

TC = Total Costs

TFC = Total Fixed Costs

V = Unit Variable Cost (Variable Cost per Unit)

X = Number of Units

TR = S = Total Revenue = Sales

P = (Unit) Sales Price

Profit is computed as TR-TC; it is a profit if positive, a loss if negative.

Break down
Costs and Sales can be broken down, which provide further insight into operations.

Decomposing Total Costs as Fixed Costs plus Variable Costs

One can decompose Total Costs as Fixed Costs plus Variable Costs:
TC = TFC + V X
Decomposing Sales as Contribution plus Variable Costs.
Following a matching principle of matching a portion of sales against variable costs, one
can decompose Sales as Contribution plus Variable Costs, where contribution is whats
left after deducting variable costs. One can think of contribution as the marginal
contribution of a unit to the profit, or contribution towards offsetting fixed costs.
In symbols:
TR

=PX
= ((P - V) + V) X
91

= (C + V) X
=CX+VX
where

C = Unit Contribution (Margin)

Profit and Loss as Contribution minus Fixed Costs

Subtracting Variable Costs from both Costs and Sales yields the simplified diagram and
equation for Profit and Loss.
In symbols:

Diagram relating all quantities in CVP

These diagrams can be related by a rather busy diagram, which demonstrates how if one subtracts
Variable Costs, the Sales and Total Costs lines shift down to become the Contribution and Fixed Costs
lines. Note that the Profit and Loss for any given number of unit sales is the same, and in particular the
break-even point is the same, whether one computes by Sales = Total Costs or as contribution =

Fixed Costs.
Mathematically, the contribution graph is obtained from the sales graph by a shear, to be precise

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where V are Unit Variable Costs.

Applications
CVP simplifies the computation of break-even point in break-even analysis, and more
generally allows simple computation of Target Income Sales. It simplifies analysis of short
run trade-offs in operational decisions.
Limitations
CVP is a short run, marginal analysis: it assumes that unit variable costs and unit revenues are
constant, which is appropriate for small deviations from current production and sales, and
assumes a neat division between fixed costs and variable costs, though in the long run all
costs are variable. For longer-term analysis that considers the entire life-cycle of a product,
one therefore often prefers activity-based costing or throughput accounting.
CS2: Depreciation Case Study SLN, WDV, SYD, DB, DDB
Depreciation An Introduction
Depreciation is the reduction in the cost of an asset used for business due to usage,
passage of time, wear and tear, technological obsolescence, depletion, inadequacy, rot,
rust, decay and the like. While preparing the final accounts, a provision is made for such
reduction in value or reduced from the cost of the asset.
Excerpts from Wikipedia on Depreciation are available in Annexure A of this Case Study,
for your ready reference and better understanding of the subject and this case study.
Depreciation Case Study An Introduction
This Case Study aims to introduce the use of MS-Excel as a tool for financial analysis/
reporting requirements, and in the process learn to:

Develop typical financial statement

Define formulae to undertake calculations including absolute cell references

Replicate formulae use a formulae for multiple similar calculations

Use Sum (Sigma) Function of MS-Excel and last, but not the least

Explore simulation with MS-Excel

Apart from learning to compute depreciation using SLN, WDV, SYD, DB & DDB methods,
we shall learn to use following MS-Excel facilities in financial analysis/ reporting:

Defining Range Names for easy reference

Comma Formatting

93

Template & Final Statement

We have included with this case study a template (MS-Excel File) giving you the structure
of the required statement as follows:

Range Names
Microsoft Excel enables one to give names to a part of the worksheet for easy reference
and use. You are hence able also get the contents of a cell by name, rather than giving its
coordinates Cost in place of C5; which makes your work easier, in case you have to
refer to that cell again and again for various requirements. As a part of this case study,
please give the following range names for the cells specified:
Sr.
1
2
3
4

Cell
C5
D5
E5
F5

Cell Name
Cost
Scrap Value
Life
WDV_Rate

MS-Excel Financial Functions An Introduction

Electronic Spreadsheets like MS-Excel are used in a big way for a number of financial
computations, for which many of such requirements, readymade facility is available in the
form of Functions. We shall be exploring the financial functions to undertake depreciation
calculations, as a part of this case study.
Depreciation Calculations using Straight Line Method SLN Function

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The MS-Excel Function to compute Depreciation under the Straight Line Method is named SLN, as
follows, which requires three data elements Cost, Salvage Value and Life:
1.

Major Formulae/ Functions: The major formulae/ functions used for computing
Straight Line Method, in this Case Study are available in the following screen shot:

2.

Formulae/ Function Replication: Electronic Spreadsheets like MS-Excel make our job of
making required calculations easy by replicating formulae/ functions already defined. As a
part of the computation under SLN Method, following formulae replications are required:

a.

Book Value for Remaining Years: Replicate the formulae for finding book value
of asset in second year in Cell B10 to the 3rd, 4th, and 5th Year.

b.

Straight Line Depreciation: Replicate the formulae for computing depreciation under

SLN Method in Cell C9 to the 2nd, 3rd, 4th, and 5th Year
Depreciation Calculations using Written Down Value Method WDV
The MS-Excel Function to compute Depreciation under the WDV is Declining Balance Method
(DB) which gives almost similar results as required under WDV method. Yes it works but
there are some Accountants and Auditors, who insist on requiring exact results as per the
Indian WDV requirements. This would require a little effort, but is definitely achievable, as
we shall see. In the process, we shall learn to make greater use of MS-Excel.
1.

Rate of Depreciation under WDV Method: The Rage of Depreciation under WDV
Method is computed as per the following formulae:
WDV Rate of Deprecation = 1 (Scrap Value/ Cost of Asset) 1/n, where n is life
of asset. The following screenshot provides the MS-Excel formulae for the same:
95

2.

Major Formulae/ Functions: The major formulae/ functions used for computing Depreciation
under the WDV Method, in this Case Study are available in the following screen shot:

3.

Formulae/ Function Replication: As in the case of Depreciation Calculation under

SLN Method, we need to replicate the following formulae:
a.

Book Value for Remaining Years: Replicate the formulae for finding book value
of asset in second year in Cell D10 to the 3rd, 4th, and 5th Year.

b.

WDV Depreciation: Replicate the formulae for computing depreciation under SLN
Method in Cell D9 to the 2nd, 3rd, 4th, and 5th Year

Depreciation Calculations under Sum of Years Digits Method - SYD

The MS-Excel Function to compute Depreciation under the Sum of Years Digits Method
is SYD, which requires three inputs Cost, Scrap Value, Life and Year for which
Depreciation has to be computed, as can be seen from the following screenshot:

Major Formulae/ Functions: The major formulae/ functions used for computing
Depreciation under the WDV Method, in this Case Study are available in the
following screen shot:
96

Formulae/ Function Replication: As in the case of Depreciation Calculation under SLN

Method, we need to replicate the following formulae:
a.

Book Value for Remaining Years: Replicate the formulae for finding book value of
asset in second year in Cell F10 to the 3rd, 4th, and 5th Year.

b.

WDV Depreciation: Replicate the formulae for computing depreciation under SLN Method in

Cell G9 to the 2nd, 3rd, 4th, and 5th Year

Depreciation Calculations under DB & DDB Methods
The process for computing Depreciation under the DB and DDB methods is the same as that
for SLN and SYD methods. That is your next assignment, as a part of this Case Study.

Simulation - What-IF Analysis

Simulation What-IF Analysis Electronic Spreadsheets like MS-Excel are great tools to undertake
Simulation or What-IF Analysis as they recalculate all computations/ formulae defined in the worksheet
in the event of any change in the data values. In our endeavor to explore this facility as a part of this
case study, you are required to undertake the following simulations using the final statement:

Cost: Rs.55,000/-, Scrap Value: Rs.5,000/- and Life: 5 Years.

Cost: Rs.25,000/-, Scrap Value: Rs.5,000/- and Life: 5 Years.

97

Case Study Assignment

Cost: Rs.55,000/-, Scrap Value: Rs.5,000/- and Life: 10 Years.

Cost: Rs.1,05,000/-, Scrap Value: Rs.5,000/- and Life: 20 Years.

Annexure A
Depreciation
Depreciation is a term used in accounting, economics and finance to spread the cost of an
asset over the span of several years.
In common speech, depreciation is the reduction in the cost of an asset used for business purposes
during certain amount of time due to usage, passage of time, wear and tear, technological outdating or
obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. In accounting, however,
depreciation is a term used to describe any method of attributing the historical or purchase cost of an
asset across its useful life, roughly corresponding to normal wear and tear. It is of most use when
dealing with assets of a short, fixed service life, and which is an example of applying the matching
principle per generally accepted accounting principles. Depreciation in accounting is often mistakenly
seen as a basis for recognizing impairment of an asset, but unexpected changes in value, where seen
as significant enough to account for, are handled through write-downs or similar techniques which
adjust the book value of the asset to reflect its current value.
The use of depreciation affects the financial statements and in some countries, it also affects the taxes
of companies and individuals. The recording of depreciation will cause an expense to be recognized,
thereby lowering stated profits on the income statement, while the net value of the asset (the portion of
the historical cost of the asset that remains to provide future value to the company) will decline on the
balance sheet. Depreciation reported for accounting and tax purposes may differ substantially.
Depreciation and its related concept, amortization (generally, the depreciation of intangible assets), are
non-cash expenses. Neither depreciation nor amortization will directly affect the cash flow of a
company, as both are accounting representations of expenses attributable to a given period. In
accounting statements, depreciation may neither figure in the cash flow statement, nor be added back
to net income (along with other items) to derive the operating cash flow. Depreciation recognized for tax
purposes will, however, affect the cash flow of the company, as tax depreciation will reduce taxable
profits; there is generally no requirement that treatment of depreciation for tax and accounting purposes
be identical. Where depreciation is shown on accounting statements, the figure usually does not match
the depreciation for tax purposes.

Because of its non-standardized derivation, depreciation is a key component of EBITDA, a metric

used to gauge the worth of a company independent of tax-jurisdiction effects and capitalization
structure. Salvage value is the estimated value of an asset at the end of its useful life. In
accounting, the salvage value of an asset is its remaining value after depreciation. This is also
known as residual value or scrap value. It is the net cash inflow that occurs when the asset is
liquefied at the end of its life. Salvage value can be negative if the residual asset requires special
treatment to terminatefor example, used nuclear materials or CRTs containing lead.
In economics, depreciation is the decrease in the economic value of the capital stock of a firm, nation

98

or other entity, either through physical depreciation, obsolescence or changes in the demand
for the services of the capital in question. If capital stock is C0 at the beginning of a period,
investment is I and depreciation D, the capital stock at the end of the period, C 1, is C0 + I - D.

Accounting
A company needs to report depreciation accurately in its financial statements in order to
achieve two main objectives:

matching its expenses with the income generated by means of those expenses, and

ensuring that the asset values in the balance sheet are not overstated. (An asset
acquired in Year 1 is unlikely to be worth the same amount in Year 5.)

Depreciation is an attempt to write-off the cost of Non Current Asset over its useful life. The word writeoff means to turn it into an expense. For example, an entity may depreciate its equipment by 15% per
year. This rate should be reasonable in aggregate (such as when a manufacturing company is looking
at all of its machinery), and consistently employed. However, there is no expectation that each
individual item declines in value by the same amount, primarily because the recognition of depreciation
is based upon the allocation Mof historical costs and not current market prices.

Accounting standards bodies have detailed rules on which methods of depreciation are
acceptable, and auditors should express a view if they believe the assumptions underlying
the estimates do not give a true and fair view.
Recording depreciation
For historical cost purposes, assets are recorded on the balance sheet at their original cost; this is
called the historical cost. Historical cost minus all depreciation expenses recognized on the asset since
purchase is called the book value. Depreciation is not taken out of these assets directly. It is
instead recorded in a contra asset account: an asset account with a normal credit balance, typically
called accumulated depreciation. Balancing an asset account with its corresponding accumulated
depreciation account will result in the net book value. The net book value will never fall below the
salvage value, meaning that once an asset is fully depreciated, no further expenses will be taken
during its life. Salvage value is the estimated value of the asset at the end of its useful life. In this
way, total depreciation for an asset will never exceed the estimated total cash outlay (depreciable
basis) for the asset. The exception to this is in many priceregulatedm industries (public utilities)
where salvage is estimated net of the cost of physically removing the asset from service.
(Decommissioning a nuclear power plant is a nontrivial expense.) If the expected cost of removal
exceeds the expected raw (or gross) salvage, then the net of the two (called net salvage) may be
negative. In this case, the depreciation recorded on the regulated books may exceed the depreciable basis.
Companies have no obligation to dispose of depreciated assets, of course, and many fully
depreciated assets continue to generate income.

99

Recording a depreciation expense will involve a credit to an accumulated depreciation account.

The corresponding debit will involve either an expense account or an asset account that represents
a future expense, such as work in progress. Depreciation is recorded as an adjusting journal entry.

A write-down is a form of depreciation that involves a partial write off. Part of the value of the
asset is removed from the balance sheet. The reason may be that the book value (accounted
value) of the fixed asset has diverged from the market value and causes the company a loss.
An example of this would be a revaluation of goodwill on an acquisition that went bad.

Methods of depreciation
There are several methods for calculating depreciation, generally based on either the
passage of time or the level of activity (or use) of the asset.
Straight-line depreciation
Straight-line depreciation is the simplest and most-often-used technique, in which the company
estimates the salvage value of the asset at the end of the period during which it will be used to generate
revenues (useful life) and will expense a portion of original cost in equal increments over that period.
The salvage value is an estimate of the value of the asset at the time it will be sold or disposed of; it
may be zero or even negative. Salvage value is also known as scrap value or residual value.

Straight-line method:

For example, a vehicle that depreciates over 5 years, is purchased at a cost of US$17,000,
and will have a salvage value of US$2000, will depreciate at US$3,000 per year: ($17,000
$2,000)/ 5 years = $3,000 annual straight-line depreciation expense. In other words, it is the
depreciable cost of the asset divided by the number of years of its useful life.

This table illustrates the straight-line method of depreciation. Book value at the beginning
of the first year of depreciation is the original cost of the asset. At any time book value
equals original cost minus accumulated depreciation.
book value = original cost accumulated depreciation Book value at the end of year
becomes book value at the beginning of next year. The asset is depreciated until the book
value equals scrap value.
Book value at
beginning of year
$17,000 (original cost)
$14,000
$11,000
$8,000

Depreciation Expense
$3,000
$3,000
$3,000
$3,000

Accumulated
Depreciation
$3,000
$6,000
$9,000
$12,000

100

Book value at end

of year
$14,000
$11,000
$8,000
$5,000

$5,000

$3,000

$15,000

$2,000 (scrap value)

If the vehicles were to be sold and the sales price exceeded the depreciated value (net
book value) then the excess would be considered a gain and subject to depreciation
recapture. In addition, this gain above the depreciated value would be recognized as
ordinary income by the tax office. If the sales price is ever less than the book value, the
resulting capital loss is tax deductible. If the sale price were ever more than the original
book value, then the gain above the original book value is recognized as a capital gain.
If a company chooses to depreciate an asset at a different rate from that used by the tax
office then this generates a timing difference in the income statement due to the difference
(at a point in time) between the taxation departments and companys view of the profit.
Declining-balance method
Depreciation methods that provide for a higher depreciation charge in the first year of an assets
life and gradually decreasing charges in subsequent years are called accelerated depreciation methods.
This may be a more realistic reflection of an assets actual expected benefit from the use of the
asset: many assets are most useful when they are new. One popular accelerated method is the
declining-balance method. Under this method the book value is multiplied by a fixed rate.

Annual depreciation = depreciation rate * book value at beginning of year

The most common rate used is double the straight-line rate. For this reason, this technique
is referred to as the double-declining-balance method. To illustrate, suppose a business
has an asset with $1,000 original cost, $100 salvage value, and 5 years useful life. First,
calculate straight-line depreciation rate. Since the asset has 5 years useful life, the
straight-line depreciation rate equals (100% / 5) 20% per year. With double-declining-balance
method, as the name suggests, double that rate, or 40% depreciation rate is used.
The table below illustrates the double-declining-balance method of depreciation. Book
Value at the beginning of the first year of depreciation is the Original Cost of the asset. At
any time Book Value equals Original Cost minus Accumulated Depreciation.
book value = original cost accumulated depreciation
Book value at the end of year becomes book value at the beginning of next year. The
asset is depreciated until the book value equals salvage value, or scrap value.
Book value at
beginning of
year
$1,000 (original
cost)
$600
$360

Depreciation
rate

Depreciation
expense

Accumulated
depreciation

Book value at
end of year

40%

$400

$400

$600

40%
40%

$240
$144

$640
$784

$360
$216

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$216
$129.60

40%
$129.60 - $100

$86.40
$29.60

$870.40
$900

$129.60
$100 (scrap
value)

The salvage value is not considered in determining the annual depreciation, but the book
value of the asset being depreciated is never brought below its salvage value, regardless
of the method used. The process continues until the salvage value or the end of the
assets useful life, is reached. In the last year of depreciation a subtraction might be
needed in order to prevent book value from falling below estimated Scrap Value.
Since declining-balance depreciation does not always depreciate an asset fully by its end
of life, some methods also compute a straight-line depreciation each year, and apply the
greater of the two. This has the effect of converting from declining-balance depreciation to
straight-line depreciation at a midpoint in the assets life.
Activity depreciation
Activity depreciation methods are not based on time, but on a level of activity. This could
be miles driven for a vehicle, or a cycle count for a machine. When the asset is acquired,
its life is estimated in terms of this level of activity. Assume the vehicle above is estimated
to go 50,000 miles in its lifetime. The per-mile depreciation rate is calculated as: ($17,000
cost - $2,000 salvage) / 50,000 miles = $0.30 per mile. Each year, the depreciation expense is
then calculated by multiplying the rate by the actual activity level.
Sum-of-years digits method
Sum-of-years digits is a depreciation method that results in a more accelerated write-off
than straight line, but less than declining-balance method. Under this method annual depreciation
is determined by multiplying the Depreciable Cost by a schedule of fractions.
Depreciable cost = original cost salvage value
Book value = original cost accumulated depreciation
Example: If an asset has original cost of $1000, a useful life of 5 years and a salvage
value of $100, compute its depreciation schedule.
First, determine years digits. Since the asset has useful life of 5 years, the years digits
are: 5, 4, 3, 2, & 1. Next, calculate the sum of the digits. 5+4+3+2+1=15
The sum of the digits can also be determined by using the formula (n2+n)/2 where n is
equal to the useful life of the asset. The example would be shown as (52+5)/2=15
Depreciation rates are as follows: 5/15 for the 1st year, 4/15 for the 2nd year, 3/15 for the
3rd year, 2/15 for the 4th year, and 1/15 for the 5th year.

102

Book value at Total deprebeginning of

ciable cost
year
$1,000 (origi- $900
nal cost)
$700
$900

Depreciation Depreciation
rate
expense
5/15
4/15

$460

$900

3/15

$280

$900

2/15

$160

$900

1/15

$300 ($900 *
5/15)
$240 ($900 *
4/15)
$180 ($900 *
3/15)
$120 ($900 *
2/15)
$60 ($900 *
1/15)

Accumulated Book value at

depreciation end of year
$300

$700

$540

$460

$720

$280

$840

$160

$900

$100 (scrap
value)

Units-of-production depreciation method

Under the units-of-production method, useful life of the asset is expressed in terms of the
total number of units expected to be produced:

Suppose, an asset has original cost $70,000, salvage value $10,000, and is expected to
produce 6,000 units.
Depreciation per unit = ($70,00010,000) / 6,000 = $10
10 x actual production will give you the depreciation cost of the current year.
The table below illustrates the units-of-production depreciation schedule of the asset.
Book value at
beginning of
year
$70,000
(original cost)
$60,000
$49,000
$37,000
$24,000

Units of production

Depreciation Depreciation
cost per unit
expense

Accumulated Book value at

depreciation end of year

1,000

$10

$10,000

$10,000

$60,000

1,100
1,200
1,300
1,400

$10
$10
$10
$10

$11,000
$12,000
$13,000
$14,000

$21,000
$33,000
$46,000
$60,000

$49,000
$37,000
$24,000
$10,000 (scrap
value)

Depreciation stops when book value is equal to the Scrap Value of the asset. In the end
the sum of accumulated depreciation and scrap value equals to the original cost.
Units of time depreciation

103

Units of time depreciation are similar to units of production, and are used for depreciation
equipment used in mine or natural resource exploration, or a case where amount the asset
is used is not linear year to year. A simple example can be given for construction
companies, where some equipment is used only for some specific purpose. Depending on
the number of projects, the equipment will be used and depreciation charged accordingly.
Group depreciation method
Group depreciation method is used for depreciating multiple-asset accounts using straight-linedepreciation method. Assets must be similar in nature and have approximately the same useful lives.

Asset
Computers

Historical
cost
$5,500

Salvage value
$500

Depreciable
cost
$5,000

Life
5

Depreciation
per year
$1,000

Composite depreciation method

The composite method is applied to a collection of assets that are not similar, and have different
service lives. For example, computers and printers are not similar, but both are part of the office
equipment. Depreciation on all assets is determined by using the straight-line-depreciation method.

Asset
Computers
Printers
Total

Historical
cost
$5,500
$1,000
$ 6,500

Salvage value
$500
$100
$600

Depreciable
cost
$5,000
$ 900
$5,900

Life
5
3
4.5

Depreciation
per year
$1,000
$ 300
$1,300

Composite life equals the total depreciable cost divided by the total depreciation per year.
$5,900 / $1,300 = 4.5 years.
Composite depreciation rate equals depreciation per year divided by total historical cost.
$1,300 / $6,500 = 0.20 = 20%
Depreciation expense equals the composite depreciation rate times the balance in the asset account
(historical cost). (0.20 * $6,500) $1,300. Debit depreciation expense and credit
accumulated depreciation.
When an asset is sold, debit cash for the amount received and credit the asset account for its original
cost. Debit the difference between the two to accumulated depreciation. Under the composite method
no gain or loss is recognized on the sale of an asset. Theoretically, this makes sense because the
gains and losses from assets sold before and after the composite life will average themselves out.

To calculate composite depreciation rate, divide depreciation per year by total historical cost. To
calculate depreciation expense, multiply the result by the same total historical cost. The result, not
surprisingly, will equal to the total depreciation Per Year again.
Common sense requires depreciation expense to be equal to total depreciation per year, without first

104

dividing and then multiplying total depreciation per year by the same number.
Source: http://en.wikipedia.org/wiki/Break-even
D.

MS-ACCESS 2010

MS-Access 2010 is a part of the MS-Office 2010 suite of office productivity software and is primarily
geared to manage data as a Database. This compilation provides practical case studies on use of MS

Access using Case Studies and simple examples to help students to have a practical hands-on training
(HOT) on the use of database.

Case Studies
CS1: A simple example on Library to understand the concept of Databases, Forms and
Reports creation
We shall learn to create a Database, Forms and Reports for managing books in a Library,
in this case study. This is a preliminary case study on using MS-Access.
Assignment 1: Creating Databases

The library at a college XYZ recently received a large collection of new books and would like
to keep better track of the titles. The library is still using an antiquated method for cataloging
most of its books. You have been asked to create following databases (using Design View)
named BOOKS DETAILS containing the following fields:
Field Name
Catalog number
Title
Author
Copyright date

Type
AutoNumber
Text
Text
Date

Field Size
Long Integer
70
25

Create a blank database named the BOOKS DETAILS which will serve as a model for the
librarys entire collection; the database will make search, tracking, and inventory functions
much easier.

Add a new field using the Datasheet View in the BOOKS DETAILS Table.
Field Name
Publications

Type
Text

Field Size
15

Solution: On start of MS Access, click New Blank Database and provide File Name
BOOKS DETAILS as shown in Fig. 1.1 followed by Fig. 1.2.

105

Fig.1.1: Step 1 in creating database BOOKS DETAILS Table

Fig. 1.2: Step 2 in creating database BOOKS DETAILS Table

The following Fig.1.3 depicts the table structure of BOOKS DETAILS in Design View
Switch to Datasheet View and enter the records in the table. Your printed database table should be
similar in the format to the one shown here in Fig. 1.4 (not intended to be the final answer).
Right click the row/column to explore the options that can be implemented on the data records. Like

Delete record number 2.

Insert a new record / Insert a new column.

106

Adjust row/column height/width.

Solution: The following Fig. 1.4 depicts the table structure in Design View.

Fig. 1.4: BOOKS DETAILS Table

Table 1.1 displays the options that can be applied either on a row or on a column.

Table 1.1: Options available in Row/Column on right-click of the mouse

Assignment 2: Creating Form
Create a form for the table BOOKS DETAILS and add the following:

Two in-built buttons Go to First Record and Go to Last Record.

3 more records leading to a total of 8 records in the table.

Solution: Click on Create >> Form as shown in Fig. 1.5.

107

Fig. 1.5: BOOKS DETAILS Table

The final Form view of the table is as shown in Fig. 1.6.

Fig. 1.6: Books Details Form

Assignment 3: Creating Report
Create a report to present the data recorded in the table BOOKS DETAILS.
Solution: Click on Create >> Report. The Report format of the Table BOOKS DETAILS is
shown in Fig. 1.7.

Fig. 1.7: BOOKS DETAILS Report

108

CS2: ITT Students Database Management

We shall learn the process of creating and using a MS - Access database to manage data of ITT
Students and in the process explore and learn to use various features and facilities of MS-Access.

Assignment 1: Database Creation

You are a database designer who has to perform following assignments:
A. Table of Students enrolled in different ITT Courses organized by the Institute.

The table should be named as ICAI_Students and must contain the following fields:
Field Name
Type
Students Registration Num- AutoNumber
ber
Scheme Enrolled In
Text
First Name
Text
Last Name
Text
Date
Date of Birth
Fathers Name
Text
Mothers Name
Text
Permanent Address
Text
Mailing Address
Text
Landline Number
Text
Mobile Number
Text
Email Address
Text
Students Registration Number should be made Primary Key.

Field Size
Long Integer
5
25
20
30
30
100
100
20
15
25

Create a blank database.

Solution: The following Fig(s) 2.1(a) and Fig. 2.1(b) show the table structure in Design view.

Fig. 2.1(a): Table in a Design View

109

Add the following new field:

Field Name

Type

Gender

Field Size

Text

Solution: Fig. 2.1 (b) shows how a new field can be added in an existing database.

Fig. 2.1(b): Adding new field Gender in the Table ICAI_Students

B. Table of ITT centers and the students enrolled in the centers across country.
The table should be named as ITT_Centers and must contain the following fields:
Centre Code be the Primary Key.
Field Name
Centre Code
Centre Name
Centre Region
Centre Address
Students Registration Number
Batch Commencement Date
Batch Completion Date
Certificate Issued date

Type
Text
Text
Text
Text
AutoNumber
Date
Date
Date

Field Size
5
15
10
50
Long Integer

Solution: Fig. 2.2 shows the Design View of the Table ITT_Centers.

Fig. 2.2: Design view of ITT_Centers

C. Table of Students Marks obtained in Information Technology Training.
The table should be named as Students_ITTResult and must contain the following fields:
110

Students Registration Number be the Primary Key.

Field Name
Students Registration Number
Marks in Module I
Marks in Module II
Attendance %
Marks in Online Examination

Type
AutoNumber
Number
Number
Number
Number

Field Size
Long Integer
Integer
Integer
Integer
Integer

Assignment 2: Creating Forms

Create a form for each of the tables naming ICAI_Students, ITT_Centers and
Students_ITTResult and bold the form title. Add the following textboxes in the form of
Students_TTResult and calculate these field values using following formulas.
Field Name
Total Marks Obtained
Percentage in Aggregate
Result Status

Type
Number
Number
Text

Hints:
Total Marks Obtained = Marks in Module I + Marks in Module II + Marks in Online Examination
Percentage in Aggregate = (Total Marks/500)*100
Result Status = If Percentage in Aggregate > 59, Result status is Pass, else Fail.
Also in the property sheet, the above three fields should be disabled, so that no data can
be entered through user in these fields.
Solution: It is not advisable to store the calculated fields through form in a table.
Also, by default the report would generate only the fields that are independent to each
other. For example In the report corresponding to the table Students_ITTResult, by
default the fields Total Marks Obtained, Percentage in Aggregate and Result Status would
be missing as their values are calculated fields and are not stored in the database. So to
generate the complete view of the Students_ ITTResult report, the labels and the text
boxes corresponding to these calculated fields need to be incorporated manually, and the
required expressions for each of the field need to be calculated in the Control Source
property of each. For example - Value in text box Result Status can be calculated using
the following steps:
a.
Choose Control Source.
b.

Expression Builder window gets opened as shown in Fig. 2.3.

c.

Enter the following expression and save it:

IIF (([Percentage In Aggregate] > 59), PASS, FAIL)

Disable the Total Marks Obtained, Percentage in Aggregate and Result Status textboxes.
111

Fig. 2.3: Form View Students_ITTResult

Enter a minimum of 20 records in each of the table, wherein Total Marks Obtained, Percentage In
Aggregate and Result Status fields of the table Students_ITTResult are to be calculated on the
basis of the parameters Marks in Module I, Marks in Module II and Marks in Online Examination.

Solution: The Fig. 2.4 below shows one of the forms ICAI_Students corresponding to the
Table ICAI_Students. Similarly, create forms corresponding to the tables ITT_Centers and

Students_ITTResult.
(Property Sheet can be opened by pressing the key F4.)

Fig. 2.4: Form View of the Table ICAI_Students

Assignment 3: Creating Reports

Create and print the reports for each of the tables created above.

Solution: One of the reports format generated corresponding to the Table ITT_Centers is shown in
112

Fig. 2.5: ITT_Centers Report

Assignment 4: Establishing Relationships between Tables

Define One-to-One relationship between the following:

a.

ICAI_Students table and ITT_Centers; and

b.

ITT_Centers table and Students_ITTResult

Enforce referential integrity in these relationships and Save.

Solution: Fig. 2.6 shows one-to-one relationship between the tables.

Fig. 2.6: One-to-One Relationship between Tables

113

Assignment 5: Creating Queries

Create the following queries from the tables:

S.No
Query Name/Mode
To Display/Criteria
A
Query 1/Using Simple Query Students Registration Number, First Name, Last
Wizard
Name, Scheme Enrolled In, Centre Code, Centre
Name, Centre Region, Centre Address
B
Query 2/Using Query Design Students Registration Number, First Name, Last
Name, Scheme Enrolled In IPCC, Centre Code,
Centre Name, Centre Region, Centre Address

Print a copy of each query.

Solution A: Fig(s) 2.7 (a),(b) and (c) are the intermediate steps while generating the Query 1.

Fig. 2.7 (a): Step 1- Choosing Fields

Fig. 2.7 (b): Step 2- Naming the Query

Fig. 2.7 (c): Step 3- Resultant of Query 1

Solution B: Using Query Design, we follow the steps shown in Fig. 2.8 (a) and (b).

Fig. 2.8(a): Step 1

114

Fig. 2.8(b): Step 2- Resultant Display

CS3: To introduce One-to-Many relationship concept
Assignment 1: Creating Databases
Create the following tables having following fields:
Customer Table
Field Name
CustomerId
Cust_Name
Address
City
State
Zip

Type

Field Size
Integer (Primary Key)
30
25
15
15
Long Integer

Type

Field Size
Integer (Primary Key)
Integer
7

Number
Text
Text
Text
Text
Number

Transactions Table
Field Name
TransactionId
CustomerId
Transaction_Type
Date of Transaction
Time of Transaction
Transaction Amount

AutoNumber
Number
Text
Date
Time
Number

Long Integer(4 decimal places)

Accounts Table
Field Name
CustomerId
Account Number
Account Type
OpeningDate
Balance

Type
Number
Number
Text
Date
Number

Field Size
Integer (Primary Key)
Long Integer
7
Long Integer (4 decimal places)

Solution:

115

Fig. 2.9: Design View of Customer Table

Fig. 2.10: Datasheet View of Customer Table

Similarly, prepare design view and datasheet view for Accounts and Transactions Table.
Assignment 2: Establishing Relationship
Establish one-to-many relationships between the following tables:

Customer & Accounts

Customer & Transactions

Solution: A customer can have many accounts and a customer can make many
transactions, so one-tomany relationship can be established between Customer-Accounts
and Customer-Transactions Table as shown in Fig. 2.11.

Fig. 2.11: One-to-many relationship between Tables]

116

Assignment 3: Creating Main Form and Sub form

Create the following forms
a.

Main form - Customer and Sub-form - Accounts

b.

Transactions Form

Solution: Create the two forms for the tables Customer and Accounts separately. Right
click the Main form Customer in the Navigation Pane and choose the Design view. Drag
the Accounts form to the Customer Form as shown in Fig. 2.12.
Also, disable CustomerID, Scroll bars, Record navigation properties in the Accounts Form in the
Property sheet.

Fig. 2.12: Main Form Customer and Sub-form Account

Assignment 4: Report Generation
Generate a report that displays all the transactions w.r.t the customers.
A report must display the following:
CustomerId, Customer Name, Account Number, Transaction Type, Date of Transaction,
Transaction Amount and the summary report of all the transactions on the basis of each customer.

For Practice
1.

With reference to Case Study II, do the following:

a. Display Students Registration Number, First Name, Last Name, Scheme Enrolled In
117

PCC, Centre Code, Centre Name, Centre Region, Centre Address, Marks in Module I,

Marks in Module II, Marks in Online Examination, Total Marks Obtained.

b.

Display Students Registration Number, First Name, and Last Name of all the IPCC

Male students.
c.

Display Students Registration Number, First Name, Last Name, Centre Code, Centre
Region and Centre Address of all the students whose attendance is more than 60%.

2.

a. Create the Travel_Details table with the following data structure:

Field Name
Tour Number
Resort
Hotel
Days
Prices From

Type
AutoNumber
Text
Text
Number
Currency

Field Size
Long Integer
20
15
Long Integer
2 Decimal Places

Set Tour Number field as Primary Key in both the tables.

b.

Enter the following records in the table.

Tour Number
1
2
3
4
5
6
7
8
9
10

3.

Resort
Goa
Pune
Delhi
Noida
Noida
Jaipur
Udaipur
Goa
Goa
Pune

Hotel
Hillwoods
Startrue
Park
Spark
Style
Peer
Smile
Tasla
Storm
Sprinkle

c.

Create forms and reports of the table

d.

Do the following:

Days
8
10
2
4
3
2
7
12
9
10

Prices From
100
123
120
89
99
95
111
120
135
85

Display Tour Number, Hotel, Days and Prices From of the records where
the Resort is Goa.

Display all the records where the Prices From > 100.

a. Create the following tables with the following data structures:

(i)

Emp_PersonalDetails

Field Name
Employee ID
First Name
Last Name
Gender
Date of Birth

Type
Auto Number
Text
Text
Text
Date
118

Field Size
Long Integer
25
20
6

Fathers Name
Mothers Name
Permanent Address
Mailing Address
Landline Number
Mobile Number
Email Address
Spouse Name
Number of Children

Text
Text
Text
Text
Text
Text
Text
Text
Auto Number

30
30
100
100
20
15
25
25
Long Integer

Type
AutoNumber
Text
Date
Currency

Field Size
Long Integer
25

(ii) Emp_OfficialDetails
Field Name
Employee ID
Designation
Date of Joining
Basic Pay

2 places decimals

b.

Establish one-to-one relationship between the two tables and Save.

c.

Generate forms for each of the following table and enter at least 10 records in each.

d.

Also, calculate the following new fields in the form Emp_OfficialDetails using the
following formulas:
Field Name

Type

HRA
DA
Child Education Allowance
Gross Salary

Currency
Currency
Currency
Currency

HRA = 0.20 * Basic Pay

DA = 0.50 * Basic Pay
Child Education Allowance = 500*Number of Children (From Emp_PersonalDetails
Table) Total Salary = Basic Pay + HRA + DA + Child Education Allowance
e.

Generate reports for each of the following table.

f.

Do the following:

Display Employee ID, First Name, Last Name, Designation and Basic Pay
of all the employees.

Display Employee ID, First Name and Last Name of all the Female employees.

Display Employee ID, First Name and Last Name of all the employees having

Basic Pay > 5,000.

Sort the records on the basis of the name in the ascending order.

Display the records of all the employees who joined after 1st January, 2000.

119

E.

ACCOUNTING SOFTWARE

Accountants typically need to use accounting software for their financial accounting, auditing
and reporting requirements, and hence included as a part of the ITT course. Tally is one of the
popular Accounting Software/ Package used in India, hence it is a part of the ITT course.

We start the coverage of this software with a listing of useful shortcut keys followed by
case studies for typical accounting requirements.
Shortcut Keys
(i)

Function Keys

Shortcut key
F1
F1

Functionality
To select a company
To select the Accounts Button

F2

To change the current date

To select company inventory
features
To select the company To
At almost all screens in TALLY At the F11:
select Company Statutory & Features screen
Taxation features
To select the Contra voucher
At Accounting / Inventory Voucher creation
and alteration screen
To select the Payment voucher At Accounting / Inventory Voucher creation
and alteration screen
To select the Receipt voucher At Accounting / Inventory Voucher creation
and alteration screen
To select the Journal voucher
At Accounting / Inventory Voucher creation
and alteration screen
To select the Sales voucher
At Accounting / Inventory Voucher creation
and alteration screen
To select the Purchase voucher At Accounting / Inventory Voucher creation
and alteration screen
To select the Reversing Journal At Accounting / Inventory Voucher creation
voucher
and alteration screen
To select the Functions and
At almost all screens in TALLY
Features screen
To select the Configure screen At almost all screens in TALLY

F3

F4
F5
F6
F7
F8
F9
F10
F11
F12
(ii)

Availability
At all masters menu screen
At the Accounting Voucher creation and alteration screen
At almost all screens in TALLY At the F11:
Features screen

CTRL + Function Keys

Shortcut key
Ctrl + F1

Functionality
Availability
To select Payroll vouchers for At Accounting/Inventory Voucher creation or
alteration
alteration screen

120

Ctrl + F8
Ctrl + F9
Ctrl + F10

To select the Credit Note

voucher
To select the Debit Note
voucher
To select the Memorandum
voucher

At Accounting / Inventory Voucher creation

and alteration screen
At Accounting / Inventory Voucher creation
and alteration screen
At Accounting / Inventory Voucher creation
and alteration screen

(iii) ALT + Function Keys

Shortcut key
Alt + F1

ALT + F2
ALT + F3

ALT + F4
ALT + F5

ALT + F6

ALT + F7

ALT + F8

ALT + F9
ALT + F10
ALT + F12

Functionality
To close a company
To view detailed report
To explode a line into its details
To select Inventory vouchers to
alter
To change the period
To select the company info
menu To create/alter/shut a
Company
To select the Purchase Order
Voucher Type
To select the Sales Order
Voucher Type
To view monthly and quarterly
report
To select the Rejection Out
Voucher Type
To change the Sales Order
Voucher Type
To select the Stock Journal
Voucher Type
To accept all the Audit lists
To select the Delivery Note
Voucher Type
To view the Columnar report
To select the Receipt Note
Voucher Type
To select the Physical Stock
Voucher Type
To filter the information based
on monetary value

Availability
At all menu screens
At almost all report screens
At almost all screens in TALLY
At the Inventory/Payroll voucher creation or
alteration screen.
At almost all screens in TALLY
At Gateway of Tally screen

At Accounting / Inventory Voucher creation

and alteration screens
At Accounting / Inventory Voucher creation
and alteration screens
At almost all report screens in TALLY
At Accounting / Inventory Voucher creation
and alteration screens

At Accounting / Inventory Voucher creation

and alteration screens
At Tally Audit Listing screen
At Accounting / Inventory Voucher creation
and alteration screens
At Ledger Voucher screen
At Accounting / Inventory Voucher creation
and alteration screens
At Accounting / Inventory Voucher creation
and alteration screens
At almost all report screens

(iv) CTRL + Alphabet Keys

Shortcut key

Functionality

Availability

121

Ctrl + A

Ctrl + B

Ctrl + C

CTRL+ E

CTRL + G

CTRL + I

CTRL + L

CTRL + O

CTRL + Q

CTRL + R
CTRL + S
CTRL + U

CTRL + V

To accept a form wherever

you use this key combination,
that screen or report gets accepted as it is.
To select the Budget

At almost all screens in TALLY, except where

a specific detail has to be given before accepting.

At Groups/Ledgers/Cost Centres/ Budgets/

Scenarios/Voucher Types/Currencies (Accounts Info) creation and alteration screen
To select the Cost Centre
At Groups/Ledgers/Cost Centres/Budgets/
To select the Cost Category
Scenarios/Voucher Types/Currencies (Accounts Info) creation and alteration screen
At Stock Groups/ Stock Categories/ Stock
Items/ Reorder Levels/ Godowns/ Voucher
Types / Units of Measure (Inventory Info)
creation/alteration screen
To select the Currencies
At Groups/Ledgers/Cost Centres/Budgets/
Scenarios/Voucher Types/Currencies (Accounts Info) creation and alteration screen
To select the Group
At Groups/Ledgers/Cost Centres Budgets/
Scenarios/Voucher Types/Currencies (Accounts Info) creation and alteration screen
To select the Stock Items
At Stock Groups/ Stock Categories/ Stock
Items/ Reorder Levels/ Godowns/ Voucher
Types / Units of Measure (Inventory Info)
creation/alteration screen
To select the Ledger
At Groups/Ledgers/Cost Centres/Budgets/
To mark a Voucher as Optional Scenarios/Voucher Types/Currencies (Accounts Info) creation and alteration screen
At the creation and alteration of Vouchers
At Stock Groups/ Stock Categories/ Stock
To select the Godowns
Items/ Reorder Levels/ Godowns/ Voucher
Types / Units of Measure ( Inventory Info)
creation/alteration screen
To abandon a form wherever At almost all screens in TALLY.
you use this key combination,
it quits that screen without
making any changes to it.
To repeat narration in the same At creation/alteration of voucher screen
voucher type
Allows you to alter Stock Item At Stock Voucher Report and Godown
master
Voucher Report
To select the Units
At Stock Groups/ Stock Categories/ Stock
Items/ Reorder Levels/ Godowns/ Voucher
Types / Units of Measure ( Inventory Info)
creation/alteration screen
To select the Voucher Types
At Groups/Ledgers/Cost Centres/ Budgets/
To toggle between Invoice and Scenarios/Voucher Types/ Currencies (AcVoucher
counts Info) creation and alteration screen
At creation of Sales/Purchase Voucher screen
122

v)

ALT + Alphabet Keys

Shortcut key
ALT + A

Functionality
To Add a voucher
To Alter the column in columnar Report

ALT + C

To create a master at a voucher

screen (if it has not been already assigned a different function, as in reports like Balance
Sheet, where it adds a new
column to the report)
To access Auto Value Calculator in the amount field during
voucher entry
To delete a voucher
To delete a master To delete a
column in any columnar Report
(if it has not been already assigned a different function, as
explained above)
To export the report in ASCII,
Excel, HTML or XML format
To insert a voucher
To toggle between Item and
Accounting invoice

ALT + D

ALT + E
ALT + I

ALT + K
ALT + L
ALT + M
ALT + N
ALT + O
ALT + P
ALT + R
ALT + S
ALT + U
ALT + V
ALT + W

To select the Keyboard Configuration

To select the Language Configuration
To Email the report
To view the report in automatic
Columns
To upload the report at your
website
To print the report
To Register Tally To remove a
line in a report
To bring back a line you removed using Alt + R
To retrieve the last line which
is deleted using Alt +R
To bring Stock Journal Screen
from Invoice screen
To view the Tally Web browser

123

Availability
At List of Vouchers adds a voucher after the
one where you positioned the cursor and used
this key combination.
Alters the column in all the reports which can
be viewed in columnar format
At voucher entry and alteration screens, at a
field where you have to select a master from
a list. If the necessary account has not been
created already, use this key combination to
create the master without quitting from the
voucher screen.
At all voucher entry screens in the Amount
Field
At Voucher and Master (Single) alteration
screens. Masters can be deleted subject to
conditions.
All the reports screen which can be viewed in
columnar format
At all reports screens in TALLY
At List of Vouchers inserts a voucher before the one where you positioned the cursor
and used this key combination. At creation of
sales and purchase invoice
At almost all screens in TALLY
At almost all screens in TALLY
At all reports screens in TALLY
At all the reports where columns can be
Added
At all reports screens in TALLY
At all reports screens in TALLY
At almost all screens in TALLY At all reports
screens in TALLY
At all reports screens in TALLY
At all reports screens in TALLY
At Invoice screen
At all reports screens in TALLY

ALT + X

To cancel a voucher in Day

Book /List of Vouchers

At all voucher screens in TALLY

(vi) Other Shortcuts

Shortcut key
ALT + 2

Functionality
To Duplicate a voucher

Availability
At List of Vouchers creates a voucher similar
to the one where you positioned the cursor and
used this key combination
At all the menu screens

Ctrl + ALT + B

To check the Company Statutory details

Ctrl + ALT + I To import statutory masters
At all the menu screens
CTRL + ALT + Rewrite data for a Company From Gateway of Tally screen
R
CTRL + ALT + Advanced Configuration
At Gateway of Tally
F12
PgUp
Display previous voucher dur- At voucher entry and alteration screens
ing voucher entry/alteration
PgDn
Display next voucher during At voucher entry and alteration screens
voucher entry/alteration
ENTER
To accept anything you type
You have to use this key at most areas in TALLY.
into a field
To accept a voucher or master At the receivables report press Enter at a
To get a report with further de- pending bill to get transactions relating to this
bill (e.g., original sale bill, receipts and paytails of an item in a report
ments against this bill, etc.)
ESC
To remove what you typed into At almost all screens in TALLY
a field
To come out of a screen
To indicate you do not want to
accept a voucher or master
SHIFT
+EN- Collapse next level details
At Voucher Register screen and Trial Balance
TER
To explode a line into its dereport In almost all reports:
tails
At a Group/Stock Group/Cost Category/
Godown/Stock Category displays Sub Groups
and Ledgers/Stock Items/Cost Centres/Secondary Godowns/Secondary Stock Categories
At a Voucher displays its entries and narration
At a Stock Item displays its godowns and
batch details
At Voucher Register screen displays the next
level details
At Trial Balance report displays the next level
details
CTRL +ENTER To alter a master while making At voucher entry and alteration screens
an entry or viewing a report At all reports

124

Lab Exercises

Exercise 1
Recording Financial Transactions
M/s. ABC & Company started business in 2009. Create a company in the name of M/s.
ABC & Co. and pass necessary vouchers to record the following transactions.
S.No.
1
2
3
4
5

DATE
07-04-2013
10-04-2013
18-04-2013
01-06-2013
16-06-2013

08-07-2013

15-07-2013

8
9
10
11
12

01-08-2013
10-08-2013
31-08-2013
11-09-2013
30-09-2013

13

01-10-2013

14
15
16
17

11-10-2013
15-10-2013
21-10-2013
01-11-2013

18
19
20
21
22

1-12-2013
1-12-2013
15-12-2013
15-12-2013
21-12-2013

23
24
25
26
27
28

30-12-2013
31-12-2013
02-01-2014
02-01-2014
03-01-2014
25-01-2014

PARTICULARS
Salary paid by cash Rs. 1,000
Cash Sales for Rs. 1,000 RprodA 200 kgs @ Rs. 5.00
Cash drawn from IB Cheque No. 031267 Rs. 75,000/Cash deposited in CB Rs. 20,000/Payment through Central Bank Cheque No. 609606 for Auditor
fees Rs. 1,000/Payment through bank [IB] Cheque No. 0314195 for purchase of
Lpro SS50 tons @ Rs.125
Bank Purchases [IB] Cheque No. 0314368 Lpro-SS 50 tons @
Rs. 125
Cheque deposited in IB for sales of RprodA 400 kgs @ Rs. 5
Cash Sales of RprodA 200 kgs @ Rs.5
Cash Sales of Npro-SS 100 kgs @ Rs. 26.50
Cash received as Commission Rs. 1,500
Cash sales of Lpro-SS 50 tons @ Rs. 125 & Npro-SS 150 kgs @
Rs. 26.50
Enter the details here as a sales order: Vimal Nath & Co. likes to
order Npro-LS 500 kgs @ Rs. 6. Also give discount of 2%.
Cash received as Commission Rs. 2,000
Do invoice entry for the sales order dated 01/10/2013
Cash sales of Npro-LS 200 kgs @ Rs. 6
Enter the following as sales order: Alpha Industries would like to
order Npro-SS 100 kgs @ Rs. 26.50
Do invoice entry for the sales order
Purchase by Mehta Industries Lpro-SS 50 tons @ Rs.125
Raise a debit note for the same
Purchase by Bimanlal Agencies Npro-SS 150 kgs @ Rs. 26.50
Prepare credit note for rejection of Npro-SS 50 kgs @ Rs. 26.50
by Alpha Industries
Raise a debit note for the same
Sales to Alpha Industries Npro-SS 300 kgs @ Rs. 26.50
Sales to Vimal Nath & Co. Npro-SS 600 kgs @ Rs. 26.50
Cash receipt of rent Rs. 1,000
Cash receipt of interest on investment Rs. 1,500
Sales to Vimal Nath & Co. Npro-SS 300 kgs @ Rs. 26.50; LproSS 50 tons @ Rs.125
125

29
30
31
32

31-01-2014
01-02-2014
01-02-2014
01-02-2014

33
34
35
36
37
38
39
40

03-02-2014
03-02-2014
05-02-2014
05-02-2014
10-02-2014
01-03- 2014
04-03-2014
04-03-2014

41

12-03-2014

Sales to Alpha Industries Npro-SS 150 kgs @ Rs. 26.50

Second purchase to Abeeth Industries 3,000 kgs @ Rs. 15
Credit note for Vimal Nath Npro-SS 400 kgs @ Rs.26.50
Purchase order for Bimanlal Agencies Lpro-SS 50 tons @ Rs.
125
Second Sales to Acrobat 1,500 kgs Rs.15
Purchase order for Mehta Industries Lpro-SS 50 tons @ Rs. 125
Enter the above as purchases
Purchase by Bimanlal Agencies Npro-SS 300 kgs @ Rs.26.50
Purchase by Mehta Industries Npro-SS 150 kgs @ Rs. 26.50
Cash Sales of Npro-SS 500 kgs @ Rs. 26.50
Cash Sales of Lpro-SS 100 tons @ Rs. 125
Purchase by Bimanlal Agencies: Npro-SS 150 kgs @ Rs. 26.50;
Lpro-SS 100 tons @ Rs. 125; RprodA 100 kgs @ Rs. 5; Carriage
Inward Rs. 25
Cash Sale of Scrap wastages Rs. 5,000

Exercise 2
Recording Financial Transactions and Depreciation
M/s. Evergreen Traders is running a business from 1.4.2009 and keeps his books of accounts in
Tally with accounts only. You are required to record the following transactions in the books of M/s.

Evergreen Traders:
S.No.
1
2
3

DATE
1.4.2013
2.4.2013
2.4.2013

2.4.2013

3.4.2013

6
7
8
9
10
11
12
13
14
15

4.4.2013
4.4.2013
5.4.2013
5.4.2013
5.4.2013
5.4.2013
6.4.2013
6.4.2013
7.4.2013
8.4.2013

PARTICULARS
Received cash as Capital for Rs. 2,00,000/Cash deposited in I.O.B. for Rs. 1,00,000/Credit Purchases from Charles Co. as per Inv. No. 12 for Rs.
75,300/Credit purchases from James Co. as per Inv. No. 253 for Rs.
50,500/Credit purchases from Donold Co. as per Inv. No. 325 for Rs.
60,000/Purchase Return from Charles Co. for Rs. 10,000/Purchase Return from Donold Co. for Rs. 25,000/Cash purchases from Victor Co. for Rs. 35,600/Credit Sales to James Traders as per Inv. No. 001 Rs. 1,25,000/Credit sales to Victor Traders as per Inv. No. 002 Rs. 1,75,000/Credit Sales to Smith Traders as per Inv. No. 003 for Rs. 75,000/Cash sales as per Inv. No. 004 for Rs. 1,00,000/Returns from Victor Traders for Rs. 25,000/Returns from Smith Traders for Rs. 15,000/Payments made by Cash
Furniture Rs. 25,000/Salaries Rs. 50,000/126

16

10.4.2013

Wages Rs. 30,000/Rent Rs. 25,000/Electricity charges Rs. 12,000/Electricity Deposit Rs. 10,000/Stationeries purchased from Wilson co. for Rs. 2,000/- on credit

Depreciate Furniture @ 10% using Straight Line Method.

Exercise 3
Recording Multiple Financial Transactions in Vouchers
M/s. Dennis Motors started a business from 1/4/2009 and entered into following
transactions which need to be recorded in its books:
S.No.
1
2
3

DATE
1.4.2013
2.4.2013
4.4.2013

5.4.2013

9.4.2013

10.4.2013

11.4.2013

12.4.2013

PARTICULARS
Received capital by cash Rs. 20,00,000
Cash deposited in ICICI bank Rs. 12,00,000
Purchase order given to Raj Motors (Order No. 101)
Kinetic Honda - 5 nos. @ Rs. 35,000/- each
TVS Victor - 3 nos. @ Rs. 46,800/- each
Yamaha - 5 nos. @ Rs. 42,900/- each
Purchase the stocks from Raj Motors
Kinetic Honda - 4 nos. @ Rs. 35,000/- each
TVS Victor - 3 nos. @ Rs. 46,800/- each
Yamaha - 5 nos. @ Rs. 42,900/- each
Purchase order given to Naveen Motors (Order no: 102)
Pulsar - 5 nos. @ Rs. 50,000/- each
Hero Honda Passion - 5 nos. @ Rs. 48,500/- each
Hero Honda Ambition - 5 nos. @ Rs. 46,700/- each
TVS Scooty - 10 nos. @ Rs. 24,000/- each
Purchase the stocks from Naveen motors
Pulsar - 5 nos. @
Rs. 50,000/- each
Hero Honda Passion - 5 nos. @ Rs. 48,500/- each
Hero Honda Ambition - 3 nos. @ Rs. 46,700/- each
TVS Scooty - 7 nos. @ Rs. 24,000/- each
(-) Cash Discount 5% on total purchase.
Sales order given by RS Motors Company
Kinetic Honda - 2 nos. @ Rs. 39,900/- each
TVS Victor - 2 nos. @ Rs. 52,200/- each
Credit sales to RS Motor Company
Kinetic Honda - 2 nos. @ Rs. 39,900/- each
TVS Victor - 2 nos. @ Rs. 52,200/- each
(+) TNGST 7% on total sales
127

14.4.2013

10

18.4.2013

11

20.4.2013

12
13
14
15
16
17

22.4.2013
24.4.2013
25.4.2013
27.4.2013
28.4.2013
30.4.2013

Credit sales to KJ Motors

Pulsar - 2 nos. @ Rs. 53,000/- each
Hero Honda Passion - 2 nos. @ Rs. 50,000/- each
Yamaha - 2 nos. @ Rs. 45,000/- each
(+) TNGST 7% on total sales
Credit sales to JGJ Motors
Yamaha - 1 no. @ Rs. 45,000/Hero Honda Ambition - 3 nos. @ Rs. 48,100/- each
(+) TNGST 7% on total sales
Cash sales to Sheeba Motors
TVS Scooty - 3 nos. @ Rs. 25,100/- each
(-) Cash discount 3%
(+) TNGST 7% on total sales
Received cash from RS Motors - Rs. 1,25,000
Received cheque from KJ Motors - Rs. 2,25,000
Paid cheque to Raj Motors - Rs. 2,50,000
Paid cheque to Naveen Motors - Rs. 1,00,000
Paid cheque to JGJ Motors - Rs. 1,50,000
Payments made by cash Rs.
Telephone charges - 5,000
Salary - 10,000
Stationery - 1,000
Furniture - 20,000
Electricity Charges - 2,500

Exercise 4
Depreciation
Best & Co. started a business of Home appliances from 1.4.2009 and maintains the
accounts in Tally with Inventory.
S.No.
1
2
3

DATE
1.4.2013
1.4.2013
1.4.2013

1.4.2013

2.4.2013

PARTICULARS
Received capital by cash Rs. 7,00,000/Cash deposited in P.N.B. Rs. 3,00,000/Credit purchases from Brown Traders as per Inv. No. 12
Samsung color T.V. 10 Nos. @ Rs. 25,000/- each
Ceiling fan 100 Nos. @ Rs. 8,00/- each
Table fan 100 Nos. @ Rs. 1,000/- each
Mixi 100 Nos. @ Rs. 1,500/- each
Grinder 100 Nos. @ Rs. 2,000/- each
Cash Purchases Brown Traders as per Inv. No. 16
Samsung color T.V. 1 No. @ Rs. 24,000/Credit sales to Rosewood Traders as per Inv. No. 001
Samsung color T.V. 7 Nos. @ Rs. 30,000/- each
128

2.4.2013

2.4.2013

2.4.2013

2.4.2013

10

2.4.2013

11

2.4.2013

Ceiling fan 70 Nos. @ Rs. 1,000/- each

Table fan 70 Nos. @ Rs. 1,500/- each
Mixi 70 Nos. @ Rs. 2,000/- each
Grinder 70 Nos. @ Rs. 2,500/- each
Plus TNGST 4% on total sales
Cash Sales as per Inv. No. 002
Samsung color T.V. 2 Nos. @ Rs. 30,000/- each
Ceiling fan 15 Nos. @ Rs. 1,000/- each
Table fan 15 Nos. @ Rs. 1,500/- each
Mixi 15 Nos. @ Rs. 2,000/- each
Grinder 15 Nos. @ Rs. 2,500/- each
Plus 4% TNGST on total sales
Cheque No. 1233123 issued to Brown Traders 70% of Purchase
value
Received Cheque No. 525252 of Bank of India from Rosewood
Traders 80% of Sale value
Payments made by cash
Paid to Petty cash Rs. 3,000/Computer Rs. 25,000/Salaries Rs. 32,000/Wages Rs. 23,500/Carriage Inwards Rs. 12,500/Carriage Outwards Rs. 7,500/Telephone Deposit Rs. 15,000/Rent Rs. 10,000/Electricity charges Rs. 5,800/Payments made by Petty Cash
Conveyance Rs. 700/Staff Welfare Rs. 500/Postages Rs. 300/Stationery Rs. 700/Journal

Depreciate Computers @ 25%.

Exercise 5
Recording Financial Transactions in Books of Accounts
Nagpur Garments have started a business of readymade garments from 1.4.2009. Following
are the transactions entered during 2013-2014, which need to be recorded in their books.

S.No. DATE

PARTICULARS

AMOUNT

Capital introduced in business by proprietor in

cash

1,00,000

1.4.2013

129

VOUCHER
TYPE
Receipt

2
3
4
5
6
7
8
9
10
11
12
13
14
15

16
17
18
19
20
21
22
23
24
25
26
27

Cash deposited in SBI, Ramdaspeth for opening

current account no. 521
5.4.2013
Cash deposited in SBI current account no. 521
10.4.2013 Garments purchased from R.D. Distributors on
credit 40,500 Purchase
2.5.2013
Sold garments to Mr. J.N. Shah on cash 6,800
Sale
2.5.2013
Purchased garments from Milton Dresses by
paying Cash
1.6.2013
Sold garments to S.M. Bakare on credit 26,800
Sale
2.6.2013
Cash withdrawn from SBI current account no.
521
1.7.2013
Paid vide ch. no. 636251 to R.D. Distributors
2.7.2013
Received vide ch. no. 995588 of Bank of India
from S.M. Bakare
1.8.2013
Paid for purchase of files for office 540 Payment
2.8.2013
Purchased furniture on credit from Vishal Furnitures 40,200 Journal
1.9.2013
Paid to ICICI Life Insurance towards annual
premium of proprietor vide ch. no. 636252
2.9.2013
Office taken on rent, paid towards office deposit
to Mr. M.C. Patel vide ch. no. 636253
1.10.2013 Amount transferred from Proprietors saving account no. 220 maintained with SBI Ramdaspeth
current account no. 521
2.10.2013 Cash received from S.M. Bakare
1.11.2013 Rent paid
16.11.2013 Paid cash to Vishal Furnitures
2.12.2013 Sales made in cash
2.12.2013 Loan taken from Mr. M.M. Joshi vide ch. no.
253652 of Bank of Rajasthan
1.1.2014
Salary paid vide ch. no. 636254
2.1.2014
Octroi paid in cash
2.2.2014
Advance tax paid
1.3.2014
Amount deposited in savings account of proprietor vide ch. no. 636255
31.3.2014 Provision to be made for telephone expenses
31.3.2014 Interest @ 12% p.a. to be credited to M.M. Joshi
Journal
31.3.2014 Charge depreciation on furniture @ 10% p.a. for
one year
2.4.2013

130

5,000

Contra

80,000

Contra

9,500

Purchase

20,000

Contra

21,000
15,000

Payment
Receipt

6,200

Payment

25,000

Payment

75,000

Receipt

5,000
4,000
10,000
25,000
1,00,000

Receipt
Payment
Payment
Sale
Receipt

10,000
1,250
5,000
10,000

Payment
Payment
Payment
Payment

2,348

Journal

Journal

Exercise 6
Inventory Management
Enter opening stock in Tally as follows:
Name of
Item
Onida 21"
Onida 25"
Samsung
25"
Samsung
29"
Gold
Silver
Copper
Raymond
Eleganza
Raymond
Royal

Group

Quantity

Unit

Rate

Value

Godown

Onida
Onida
Samsung

7
5
9

no.
no.
no.

8,920
13,440
12,500

62,440.00
67,200.00
112,500.00

Colva
Calangute
Miramar

Samsung

no

24,500

73,500.00

Colva

Metals
Metals
Metals
Cloth

512.368
6.892
5.690
540.22

gm
kg
Kg
mtr

1,280
19,240
5,500
467

655,831.04
32,602.08
31,295.00
252,282.74

Miramar
Miramar
Colva
Colva

Cloth
Total

890.88

mtr

612

545,218.56
1,932,869.42

Calangute

Enter following purchase and sales transactions in Tally:

Date
Purchases:
01/04/2013
01/05/2013
02/06/2013
02/07/2013
01/08/2013
01/09/2013
01/10/2013
02/11/2013
01/12/2013
01/01/2013
01/02/2013
01/03/2013
02/03/2013

Party

Stock Item Qty Unit

Rate

Value

Godown

Onida Electronics Ltd.

Onida Electronics Ltd.
Samsung India Pvt. Ltd.
Samsung India
Pvt. Ltd.
BPL Electronics Ltd .
Cash
Raymond Ltd.

Onida 21" 10 no.

9,000

90,000.00

Miramar

Onida 25 12 no.

15,500

1,86,000.00

Colva

Samsung
25"
Samsung
29"
BPL 21"

8 no.

16,800

1,34,400.00

Calangute

20 no.

22,400

4,48,000.00

Miramar

23 no.

11,200

2,57,600.00

Calangute

32 no.
890 mtr

18,500
450

5,92,000.00
4,00,500.00

Miramar
Miramar

1,020 mtr

630

6,42,600.00

Miramar

250 gm
2.380 kg
650 mtr

1,390
19,880
730

3,47,500.00
47,314.40
4,74,500.00

Colva
Calangute
Calangute

120 ltr
25 no.

18.50
8,900

2,220.00
2,22,500.00

Miramar
Colva

BPL 25"
Raymond
Eleganza
Raymond Ltd. Raymond
Royal
Cash
Gold
Cash
Silver
Raymond Ltd. Raymond
Star
Cash
Milk
LG India Ltd. LG 21"

131

Sales:
01/04/2013
02/05/2013
02/06/2013
01/07/2013
01/08/2013
01/09/2013
01/10/2013

01/11/2013

02/12/2013
01/01/2014
01/02/2014
02/03/2014
02/03/2014

Pardesi Trading Co.

Quality Electronics
Quality Electronics
Cash
Ajay Vijay &
Co.
Noor & Ali
Co.
Milton

Onida 21" 12 no.

9,500

1,14,000.00

Colva

Onida 25" 13 no.

16,500

2,14,500.00

Calangute

Samsung
25"
Samsung
29"
BPL 21"

10 no.

17,770

1,77,700.00

Miramar

15 no.

24,580

3,68,700.00

Miramar

12 no.

13,500

1,62,000.00

Calangute

BPL 25"

10 no.

21,000

2,10,000.00

Miramar

250 mtr

510

1,27,500.00
Colva

150 mtr

680

1,02,000.00
Colva

150 gm

1,420

2,13,000.00

Miramar

1.000 kg
200 mtr

20,500
800

20,500.00
1,60,000.00

Calangute
Calangute

50 ltr
10 no.

21.00
9,800

1,050.00
98,000.00

Miramar
Colva

Dresses
Raymond
Eleganza
Milton
Dresses
Raymond
Royal
Laxmi Parvati Gold
& Co.
Cash
Silver
Hakim Munim Raymond
Star
& Co.
Cash
Milk
Cash
LG 21"

Manufacturing Journal Entries

31/05/2009 Gold ring manufactured by using 10 gm gold, 4 gm silver and 1 gm copper.
Total weight of ring was 15 gm.
Transfer Entries
31/05/2009 Raymond Royal transferred 500 mtr from Miramar to Colva godown.
31/05/2009 3.5 kg silver transferred from Miramar to Calangute godown.

132

Exercise 7
Security Controls
ABC Ltd. has installed multi-user Tally Gold software. There are 9 employees in accounts
department. The names of employees, their designation and responsibilities are as follows:

S.No.
1

Name of Employee
Aditya , C.A.

Designation
Finance Manager

Shahrukh

Accounts Manager

Saif

Accounts Manager

Rani

Accounts Executive

Priti

Accounts Executive

Bipasha

Accounts Executive

Kareena

Accounts Executive

8
9

Jony
Rajpal

Data Entry Operator

Data Entry Operator

Following are the Directors of the company:

Shri Yash Chopra, Director Accounts & Finance

Shri Subhash Ghai , Director Marketing

Shri Rajkumar Santoshi, Director Operations
Shri Vidhu Vinod Chopra, Director

133

Responsibilities
Overall responsibility of accounts and
finance function, reporting to top management, statutory compliances, etc.
Getting data entered by accounts executive and operators, compilation of data,
supervision over operators, Preparation
of VAT, TDS, Service Tax Challans
and Returns, Providing information to
Finance Manager.
Getting data entered by accounts executive and operators, compilation of data,
supervision over operators, Preparation
of VAT, TDS, Service Tax Challans
and Returns, Providing information to
Finance Manager.
Data Entry, Checking of data, Providing information to Accounts Manager.
Data Entry, Checking of data, Providing information to Accounts Manager.
Data Entry, Checking of data, Providing information to Accounts Manager,
Data Entry, Checking of data, Providing information to Accounts Manager.
Data Entry
Data Entry

Exercise 8
Create ledgers along with proper grouping in Tally.ERP 9
and check the Balance Sheet
D. C. Garments
Trial Balance As On 31st March 2013
Sr. No. Ledger Name
1
Capital

Description
Debit
Owner's money invested in business

Credit
10,40,670

2
3

SBI Car Loan

T. Asin

SBI Cash Credit

Kareena Fabrics
Ltd.

Loan taken for purchase of car

against mortgage of car
Loan taken from friend for business
without any security
Loan taken for working capital
against security of Stock and Debtors
Our supplier, we have purchased
dresses from this company on credit
and money is still payable
134

6,70,540
4,00,000
5,43,990
97,200

6
7
8
9
10
11
12
13
14

15
16

VAT for the year payable to Government

Office telephone bill payable to
BSNL for March 2011
Office
Office place owned by and used by
business
16,03,280
Land
Land at wardha road, purchased as
investment
8,65,000
A.B. Corp Shares Amount invested in shares of the
company
50,000
Reliance Mutual Amount invested in mutual fund
Fund
25,000
Sohail Khan
Temporary loan given to brother
75,000
without any security
Telephone DeDeposit kept with BSNL for office
posit
telephone connection
5,000
S. Mallika
Our customer, we have sold goods
to her on credit and money is still
92,900
receivable
SBI Current Ac- Current account in the name of busicount
34,290
ness maintained with SBI
Cash
19,700
Total
27,70,170
VAT Payable
(2012-13)
BSNL

15,230
2,540

27,70,170

Answer : Balance Sheet Total = 27,70,170

Exercise 9
Enter following trasactions in Tally and prepare Profit & Loss
Account and Balance Sheet
We have started a new busienss in the name Nagpur Garments, of trading in readymade
garments. Following are the trasactions entered during 2012-13

1
2

Date
01.04.12
02.04.12

3
4
5
6
7
8
9

01.05.12
02.05.12
02.05.12
02.05.12
01.06.12
02.06.12
01.07.12

Particulars
Capital Introduced in Business by proprietor in cash
Cash deposited in State Bank of India, Ramdaspeth for opening current account no. 521
Cash Deposited in State Bank of India current account no. 521
Garments purchased from R.D. Distributors on credit
Sold garments to Mr. R.P. Shah on cash
Purchased garments from Milton Dresses by paying cash
Sold garments to S.M. Bakare on credit
Cash withdrawn from SBI Current Account no. 521
Paid vide ch. No. 636251 to R.D. Distributors
135

Amount
1,00,000
5,000
80,000
40,500
6,800
9,500
26,800
20,000
21,000

10

02.07.12

11
12
13

01.08.12
02.09.12
01.10.12

14

02.10.12

15

01.10.12

16
17
18
19
20

02.10.12
01.11.12
02.11.12
02.12.12
01.12.12

21
22
23
24

01.01.13
02.01.13
02.02.13
01.03.13

25 31.03.13
26 31.03.13
27 31.03.13
Answer :

Received vide ch. No. 995588 of Bank of India from S.M.

Bakare
Paid for purchase of files for office
Purchased furniture on credit from Vishal Furnitures
Paid to ICICI Life Insurance towards annual premium of proprietor vide ch.no. 636252
Office taken on rent, paid towards office deposit to Mr. M. C.
Patel vide ch.no. 636253
Amount transferred from Proprietor's saving account no 220
maintained with SBI Ramdaspeth to SBI Ramdaspethcurrrent
account no 521
Cash received from S.M. Bakre
Rent paid in cash
Paid cash to vishal furniture.
Sales made in cash
Loan taken from Mr. M.M. Joshi vide ch. No. 253652 of Bank
of Rajasthan
Salary paid vide ch. No. 636254
Octroi paid in cash
Advance tax paid in cash
Amount deposited in savings account of proprietor vide Ch.
No. 636255
Provision to be made for telephone expenses
Interest @ 1% per month to be credited to M.M. Joshi
Charge depreciation on furniture @ 10% p.a. for one year
Net Loss
Balance Sheet Total
Indirect Expenses

15,000
540
40,200
6,200
25,000
75,000

5,000
4,000
10,000
25,000
1,00,000
10,000
1,250
5,000
10,000
2,348

17558
314858
24908

Exercise 9
Inventory Exercise 2: Enter following purchases
and sales transactions with inventory
Note : Solve Inventory exercise 1 & 2 in same company. Do not create a new company for exercise

2
Date
Purchases :
01/04/2013
01/05/2013

Type of Pur- Stock Item

chase/Sales

Quantity

Unit

Rate

Value

Onida Elec- Onida 21"

tronics Ltd.
Onida Elec- Onida 25"
tronics Ltd.

10

no.

9,000

90,000

12

no.

15,500

1,86,000

136

02/06/2013

02/07/2013

01/08/2013
01/09/2013
01/10/2013
02/11/2013
01/12/2013
01/01/2014
01/02/2014
01/03/2014
02/03/2014

Sales :
01/04/2013
02/05/2013
02/06/2013
01/07/2013
01/08/2013
01/09/2013
01/10/2013
01/11/2013
02/12/2013
01/01/2014
01/02/2014
02/03/2014
02/03/2014

Samsung
India Pvt.
Ltd.
Samsung
India Pvt.
Ltd.
BPL Electronics Ltd .
Cash
Raymond
Ltd.
Raymond
Ltd.
Cash
Cash
Raymond
Ltd.
Cash
LG India
Ltd.
Total

Samsung
25"

no.

16,800

1,34,400

Samsung
29"

11

no.

22,400

2,46,400

BPL 21"

23

no.

11,200

2,57,600

BPL 25"
Raymond
Eleganza
Raymond
Royal
Gold
Silver
Raymond
Star
Milk
LG 21"

32
890

no.
Mtr.

18,500
450

5,92,000
4,00,500

1,020

Mtr.

630

6,42,600

250
2.380
650

gm
kg
Mtr.

1,390
19,880
730

3,47,500
47,314
4,74,500

120
25

ltr.
no.

18.5
8,900

2,220
2,22,500

Pardesi
Trading Co.
Quality
Electronics
Quality
Electronics
Pardesi
Trading Co.
Vedoms
Vedoms
Milton
Dresses
Milton
Dresses
Cash
Cash
Milton
Dresses
Cash
Cash
Total

Onida 21"

12

no.

9,500

1,14,000

Onida 25"

13

no.

16,500

2,14,500

Samsung
25"
Samsung
29"
BPL 21"
BPL 25"
Raymond
Eleganza
Raymond
Royal
Gold
Silver
Raymond
Star
Milk
LG 21"

10

no.

17,770

1,77,700

15

no.

24,580

3,68,700

12
10
250

no.
no.
Mtr.

13,500
21,000
510

1,62,000
2,10,000
1,27,500

150

Mtr.

680

1,02,000

150
1
200

gm
kg
Mtr.

1,420
20,500
800

2,13,000
20,500
1,60,000

50
10

ltr.
no.

21
9,800

1,050
98,000
19,68,950

36,43,534

Verification :
Check total value of closing stock in Stock Summary Report.
It must be equal to
137

37,76,408.62