PART II

TALLY PRIME COMPANY CREATION

Company creation is the first step toward recording the financial transactions of a business in
tally prime.

To create a company, do the following.

Step 1 - Click > Create company > under the list of companies in the select company window

Step 2 – The company creation window appears.

Step 3 – Enter all necessary details about the company such as;

● The Name of the company: TEAMS 1 LTD.

● State: Karnataka
● Country: India
Step 4 – Click on the configure (F12) option at the screen's right-side end.

Step 5 – Enable to provide contact details and additional base currency details on the
configuration window and accept the screen.

Step 6 – Ensure the configurations as listed below.

● Base currency symbol - ₹

● Formal name - INR
● Suffix symbol to amount - No
● Add space between amount and symbol - Yes
● Show amount in millions – No
● Number of Decimal places – Two
● The word representing the amount after decimal - Paise
● Number of decimal places for amount in words – Two

Step 7 – Accept the screen and the page will lead you to the company feature alteration window.

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 COMPANY FEATURES ALTERATION WINDOW

Step 1 – Enable show more features by clicking > YES

Step 2 – Now show all features option appears. Enable it by clicking > YES
Step 3 – Under accounting features enable the following options to YES
● Maintain accounts
● Enable bill wise entry
Step 4 – Under inventory enable the following options to YES
● Maintain inventory
● Integrate accounts with inventory

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GST DETAILS

Step 5 - Under taxation features enable Goods and Services Tax (GST) and do the following
• Registration Status should be active
• Under GST registration details select the STATE of business : Karnataka
Registration type as regular, composition, regular – SEZ depending on the case
• Assessee of other territory : No
• Enter GSTIN/ UIN Number
• Periodicity of GST R 1 : Monthly
E invoicing applicable : No
E way bill : No

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 LEDGER CREATION
● On the gateway of tally click on the “ create” option .
● Click on “Ledger”.
● Name the ledger, categorize the Ledger under relevant accounts.
● Under Mailing details, write the name of the ledger, state , country and pin code
● Under banking details, select “ NO” for provide banking details
● Under tax registration details: Registration type is regular and alter additional gst
details as “NO”.

1) CAPITAL LEDGER :

2) HDFC BANK LEDGER:

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3) SALES LEDGER :

4) INSURANCE LEDGER :

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5) SK TRADERS LEDGER :

6) PURCHASE LEDGER :

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7) ALI COMPUTER LEDGER :

8) SHARMA PVT LTD LEDGER

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9) ANVEZ ANSARI LEDGER :

NOTE : CASH AND PROFIT AND LOSS LEDGERS ARE CREATED BY DEFAULT IN
TALLY PRIME .

IMPORT EXPORT LEDGER CREATION

IMPORT LEDGER

● On the gateway of tally click on “ CREATE” option.

● Under Accounting Masters choose option “ LEDGER”..
● Name the ledger as “IMPORT” and categorize it under “ Purchase Account”.
● Under type of ledger “ NOT APPLICABLE”.
● Under statutory details set :
● Include in Assessable value calculation as, “NOT APPLICABLE” and GST
applicability as “ APPLICABLE”.
● Under HSN/ SAC and Related Details set ,HSN/ SAC Details as “ As per company/
group”
● Under GST rate and related details set the following:

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 ● GST rate details as “As per company/ group and Type of supply as “Goods”.
● Under Mailing details, write the name of the ledger that is “Import”.
● Under Banking Details , set provide bank details as “ NO”.
● Under tax registration details: Leave it blank

EXPORT LEDGER

● On the gateway of tally click on “ CREATE” option.

● Under Accounting Masters choose option “ LEDGER”
● Name the ledger as “ Export” and categorize it under “ Sales Account”.
● Under type of ledger “ NOT APPLICABLE”.
● Under statutory details set :
● Included in Assessable value calculation as, “GST ” and GST applicability as “ NOT
APPLICABLE” and Appropriate to “ GOODS”.
● Under Mailing details, write the name of the ledger that is “export”.
● Under Banking Details , set provides bank details as “ NO”.
● Under tax registration details: Leave it blank.

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 TAX LEDGER CREATION

CGST LEDGER :

● On the gateway of tally click on the “ CREATE” option.

● Under Accounting Masters choose option “ LEDGER”..
● Name The ledger as “CGST ” and categorize it under “ Duties and Taxes”.
● Under Type od Duty / tax as “ GST” and Tax type as “ CGST”.
● Set Percentage of calculation as 0% and Rounding method as “ Not applicable”.
● Under Mailing details, write the name of the ledger that is “ SGST”, state as “
Karnataka” country as “ India” and pin code.
● Under banking details, select “ NO” for provide banking details
● Under tax registration details: Registration type is regular and alter additional GST
details as “NO”.

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SGST LEDGER :

● On the gateway of tally click on “ CREATE” option.

● Under Accounting Masters choose option “ LEDGER”..
● Name The ledger as “CGST ” and categorize it under “ Duties and Taxes”.
● Under Type od Duty / tax as “ GST” and Tax type as “ CGST”.
● Set Percentage of calculation as 0% and Rounding method as “ Not applicable”.
● Under Mailing details, write the name of the ledger that is “ SGST”, state as “
Karnataka” country as “ India” and pin code.
● Under banking details, select “ NO” for provide banking details

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 ● Under tax registration details: Registration type is regular and alter additional GST
details as “NO”.

IGST LEDGER :

On the gateway of tally click on “ CREATE” option.

Under Accounting Masters choose option “ LEDGER”..

Name The ledger as “IGST ” and categorize it under “ Duties and Taxes”.

Under Type od Duty / tax as “ GST” and Tax type as “ IGST”.

Set Percentage of calculation as 0% and Rounding method as “ Not applicable”.

Under Mailing details, write the name of the ledger that is “IGST ”.

Under banking details, select “ NO” for provide banking details

Under tax registration details: Registration type is regular and alter additional GST details as
“NO”.

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 INVENTORY MASTERS CREATION

STOCK GROUP CREATION

ELECTRONICS

1. On the gateway of tally click on “ CREATE”.

2. Under “ INVENTORY MASTERS” click on “ Stock group”.
3. According to the question stock items such as ,Monitor, Keyboard, USB hub and hard
disk are to be categorized as ELECTRONICS.
4. Under “ Stock group creation” type in the name of the stock group as “
ELECTRONICS” and select “ PRIMARY” in Under.
5. Select quantities of items be added as “ No”.
6. Under statutory details select the following :
a. Under HSN/ SAC and Related Details set ,HSN/ SAC Details as “ As per
company/ group”.
b. Under GST rate and related details set the following:
c. GST rate details as “As per company/ group and GST rate as “0%”.

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STATIONERY ITEMS

1. On the gateway of tally click on “ CREATE”.

2. Under “ INVENTORY MASTERS” click on “ Stock group”.
3. According to the question stock items such as Drawing pins, Scissors, Calculator and
white board will come under ‘STATIONERY ITEMS’ stock group.
4. Under “ Stock group creation” type in the name of the stock group as “
STATIONERY ITEMS” and select “ PRIMARY” in Under.
5. Select quantities of items be added as “ No”.
6. Under statutory details select the following :
7. Under HSN/ SAC and Related Details set ,HSN/ SAC Details as “ As per company/
group”.
8. Under GST rate and related details set the following:

a.GST rate details as “As per company/ group and GST rate as “0%”.

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UNIT SPECIFICATION DETAILS :
1. On the gateway of tally click on “ CREATE”.
2. Under “ INVENTORY MASTERS” click on “UNIT ”.
3. Unit creation window appears. Under that specify the following:
● Type – Simple
● Symbol – Nos.
● Formal name-Number
● Unit Quantity Code (UQC) as – Not applicable
● Number of decimal places : 0

NOTE ;

● The unit for ELECTRONICS will be in Numbers ( Nos)

● The unit for STATIONERY ITEMS will be in Numbers ( Nos) .

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STOCK ITEM CREATION :

1. On the gateway of tally click on “ CREATE”.

2. Under “ INVENTORY MASTERS” click on “ STOCK ITEM”
3. Stock Item Creation window appears now mention the name of the stock item as
given in the question and specify under appropriate stock group
4. Under statutory details set , GST applicability as “ APPLICABLE”.
5. Under HSN/ SAC and Related Details set ,

HSN/ SAC Details as “Specify details here” .

HSN/SAC mention the HSN code for stock item

6. Under Description mention the name of stock item

7. Under GST rate and related details set the following:
8. GST rate details as “ Specify Details Here”
9. Taxability Type as “ Taxable”
10. GST Rate as stated in the question
11. Type of supply as “ Goods”.
12. Now go to “ Configure or F 12” and click “ yes” to show more and show all
configurations. Under GST details, the breakup of tax rate as “ YES”.
13. Rate of duty will be as specified in the question that is 18 %
14. Accept the screen .

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1) MOUSE

2) KEYBOARD

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3) USB HUB

4) MONITOR

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5 ) HARD DISK

6 ) DRAWING PINS

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7 ) SCISSORS

8) CALCULATOR

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9 ) WHITE BOARD

PART III

VOUCHER CREATION

STEPS TO CREATE VOUCHER

● On the Gateway of tally under Transactions choose “ vouchers”.

● Select the appropriate voucher .
● Click on “change mode” on the extreme right of the Accounting voucher creation
window and choose the “ double entry system”.
● write the narration and accept the screen

ENTRY 1 Started a new business with a capital of Rs 1,00,00,000 in cash. This entry will be
passed in as a receipt voucher as there is inflow of cash.

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ENTRY 2 Opened a bank account with HDFC bank and Deposit Rs 6000000. This entry will
be passed in as a contra voucher as there is deposit of cash.

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ENTRY 3 Cash sales Rs 5,000. This entry will be passed in as a receipt voucher as there is
inflow of cash.

ENTRY 4 Paid insurance by cheque Rs 500. This entry will be passed in as a payment
voucher as there is outflow of cash.

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ENTRY 5 Paid Rs 20,000 into the bank. This entry will be passed in as a contra voucher as
there is deposit of cash .

ENTRY 6 Purchase goods from SK Traders for Rs 30,000. This entry will be passed in as a
purchase voucher as goods are purchased on credit basis.

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ENTRY 7 Paid Rs 20,000 into the bank. This entry will be passed in as a contra voucher as
there is deposit into bank.

ENTRY 8 ALI COMPUTERS

STEP-1: Select the appropriate ledger you created for purchases, the party name .

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STEP-2:Enter the required details like items, quantity ,rate.

STEP-3:accept the screen after applying gst and writing the

name of item quantity rate

mouse 10 75

keyboard 10 150

usb hub 15 25

monitor 8 4500

ENTRY 9 SHARMA LTD

STEP-1: Select the appropriate ledger you created for purchases, the party name .

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STEP-2:Enter the required details like items, quantity ,rate.

STEP-3:accept the screen after applying gst and writing the

name of item quantity rate

monitor 10 4000

keyboard 20 100

usb hub 25 25

hard disk 8 4000

ENTRY 10 ) ANVEZ ANSARI

STEP-1: Select the appropriate ledger you created for purchases, the party name .

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STEP-2:Enter the required details like items, quantity ,rate.

STEP-3:accept the screen after applying gst and writing the

name of item quantity rate

Drawing pins 12 30

scissors 12 20

calculator 2 300

white board 3 450

PART IV

FINANCIAL STATEMENTS

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1. BALANCE SHEET

2. PROFIT AND LOSS ACCOUNT

3. TRIAL BALANCE

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PART V

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 CONCLUSION

1. Practical Accounting Skills: We gained practical experience in accounting principles and

practices. We also learnt how to record financial transactions, maintain ledgers, and generate
financial statements using tally prime.

2. accuracy in data entry: through tally prime, we got to know about the importance of entering
data with better accuracy and efficiency.

3. GST registration entries: We got practical understanding of taxation and application of tally
prime in goods and service taxation.

4. inventory management: Tally Prime provides inventory management features for companies
that deal with inventory. We learnt about stock value, inventory tracking, and inventory control.

5. real world relevance :Tally Prime is a software program that is commonly used in business.
We are equipped to handle accounting tasks in the workplace.

PART VI

ROLE DESCRIPTION OF GROUP MEMBERS

1. Shambhavi Kumari - transaction 1,2, report

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2. Ishita Paliwal - transaction 3,4, report
3. V Yadu Krishnan - transaction 5,6 ,report
4. Nitin.D- transaction 8 ,report
5. M.Navanitha sai - transaction 9 and creation of company ,report
6. M Villas - transaction 10, report

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