Assignment 1: Introduction to Tally

1.1 Introduction to Tally

Tally is one of the most widely used accounting software in India and globally. It is designed
to simplify financial management for businesses, providing solutions for accounting,
inventory management, payroll, taxation, and more. Tally ERP 9 and the latest Tally Prime
are the most popular versions used for business operations.

1.2 Versions & Features of Tally

Versions of Tally:

1. Tally 4.5 - Early version with basic accounting features.

2. Tally 5.4 - Introduced inventory management.
3. Tally 6.3 - First version with VAT support.
4. Tally 7.2 - Advanced VAT capabilities.
5. Tally 8.1 - Introduced payroll features.
6. Tally 9 - More advanced taxation and payroll features.
7. Tally ERP 9 - Comprehensive business management features.
8. Tally Prime - Latest version with a user-friendly interface and enhanced features.

Features of Tally:

 Accounting Management - Ledger, journal entries, and financial reporting.

 Inventory Management - Stock tracking, warehouse management.
 Taxation - GST, VAT, TDS, and payroll taxation.
 Banking Features - Cheque management, bank reconciliation.
 Multi-User Support - Allows multiple users to work simultaneously.

1.3 Introduction to Gateway of Tally

Gateway of Tally is the main screen that appears after opening Tally. It serves as a central
hub for all accounting and business operations.

Steps to Access Gateway of Tally:

1. Open Tally software.

2. Select Create a Company or Load an Existing Company.
3. Enter company details like name, financial year, and currency.
4. Click Accept to save the company profile.
5. The Gateway of Tally screen appears, offering the following sections:
o Masters (Creating ledgers, stock items, etc.)
o Transactions (Recording vouchers like purchase, sales, payments, etc.)
o Reports (Trial Balance, Profit & Loss Account, Balance Sheet)

1.4 Vouchers in Tally

Vouchers are used to record business transactions. Tally provides different types of vouchers
for financial entries.

Steps to Create Vouchers in Tally:

1. Purchase Voucher (F9):

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

2. Select the supplier ledger.
3. Enter item details, quantity, and price.
4. Save the entry by pressing Ctrl + A.

2. Sales Voucher (F8):

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

2. Select the customer ledger.
3. Enter item details, quantity, and price.
4. Save the entry using Ctrl + A.

3. Contra Voucher (F4):

Used for cash/bank transactions like deposits, withdrawals, and fund transfers.

1. Go to Accounting Vouchers > F4: Contra.

2. Select the bank and cash accounts.
3. Enter the transfer amount.
4. Save the entry.

4. Receipt Voucher (F6):

Records receipts from customers or other sources.

1. Go to Accounting Vouchers > F6: Receipt.

2. Select the ledger and amount received.
3. Save the entry.

5. Payment Voucher (F5):

Used to record expenses and payments made.

1. Go to Accounting Vouchers > F5: Payment.

2. Select the ledger and amount paid.
3. Save the entry.

1.5 Trial Balance and Financial Statements in Tally

1. Trial Balance:

 Shows the debit and credit balances of all ledger accounts.

  Steps to View Trial Balance in Tally:
1. Go to Gateway of Tally > Display > Trial Balance.
2. View balances of all ledgers.

2. Profit & Loss Account:

 Shows net profit or loss over a period.

 Steps to View Profit & Loss Account:
1. Go to Gateway of Tally > Display > Profit & Loss Account.
2. View revenue, expenses, and net profit.

3. Balance Sheet:

 Shows financial position including assets and liabilities.

 Steps to View Balance Sheet:
1. Go to Gateway of Tally > Display > Balance Sheet.
2. View financial status of the company.

1.6 Stock Items & Stock Groups in Tally

1. Stock Items:

 Individual products that a business sells or purchases.

 Steps to Create Stock Items:
1. Go to Gateway of Tally > Inventory Info > Stock Items > Create.
2. Enter item name, unit of measure, and opening balance.
3. Save the entry.

2. Stock Groups:

 Categorize stock items for better management.

 Steps to Create Stock Groups:
1. Go to Gateway of Tally > Inventory Info > Stock Groups > Create.
2. Enter group name and under which it falls (Primary or Sub-group).
3. Save the entry.

1.7 VAT Features in Tally

VAT (Value Added Tax) is a tax on goods and services.

Steps to Enable VAT in Tally:

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Enable VAT and set details like state and tax rates.
3. Save settings.

Steps to Record VAT in Transactions:

 1. When entering Sales/Purchase Vouchers, select VAT Ledger.
2. Tally will automatically calculate VAT.
3. Save the transaction.

Assignment 2: Creation of Company in Tally

Step 1: Opening Tally and Selecting "Create Company"

1. Open Tally ERP 9 or Tally Prime on your computer.

2. In the Gateway of Tally, select Create Company (Shortcut: Alt + F3 → Create
Company).

Step 2: Entering Company Details

Fill in the required details as follows:

Field Entry
Company Name BBA Friends Pvt. Ltd.
Mailing Name BBA Friends Pvt. Ltd.
Address 10th Floor, ABC Tower, MG Road, Mumbai - 400001
State Maharashtra
Country India
Pin Code 400001
Telephone No. +91-9876543210
Email [email protected]
Currency INR (₹)
Financial Year 1-Apr-20XX (Current FY)
Books Begin 1-Apr-20XX
PAN Number AAAAA1234A

Step 3: Enabling "Accounts with Inventory"

1. Under Maintain, select Accounts with Inventory (since the company may deal with
stock items).
2. In Financial Year Beginning, enter 1-Apr-20XX.
3. Enable GST (if applicable) by setting Enable GST → Yes and entering:
 o GSTIN: 27AABBCC1234Z5
o Applicable from: 1-Apr-20XX
o State: Maharashtra

Step 4: Saving the Company

1. After entering all details, press Enter.

2. Tally will ask, "Accept? Yes or No" → Press Y to save.

Deletion of Company in Tally

1. Open Tally ERP 9 / Tally Prime.
2. In Gateway of Tally, select F3: Company Info.
3. Choose Alter or Select Company.
4. Select the company you wish to delete.
5. Press Alt + D to delete the company.
6. Confirm deletion by selecting Yes.

Alteration of Company in Tally

1. Open Tally ERP 9 / Tally Prime.
2. In Gateway of Tally, select F3: Company Info.
3. Choose Alter.
4. Select BBA Friends Pvt. Ltd. and press Enter.
5. Modify details like address, email, PAN, GSTIN, etc.
6. Press Enter and select Yes to save changes.

Assignment 3: Alteration & Deletion of Company in Tally

This assignment involves two tasks: (A) Alteration of company details and (B) Deletion of
a company in Tally ERP 9 / Tally Prime.

(A) Alteration of Company Details in Tally

We will alter the company BBA Friends Pvt. Ltd. by updating its address and contact
number.

Step 1: Open Tally and Select the Company

1. Open Tally ERP 9 / Tally Prime.

2. In the Gateway of Tally, press F3 (Company Info).
3. Click on Alter or press A to open the list of existing companies.
4. Select BBA Friends Pvt. Ltd. and press Enter.

Step 2: Modify the Required Company Details

Update the company details as follows:

Field Existing Details New (Altered) Details

10th Floor, ABC Tower, MG Road, 5th Floor, XYZ Plaza, Andheri,
Address
Mumbai - 400001 Mumbai - 400058
Contact
+91-9876543210 +91-9123456789
No.

Step 3: Show the Pop-Up Menu Before Saving

1. After modifying the details, press Enter.

2. Tally will display a confirmation pop-up:
o "Do you want to accept the changes?"
o Press Y (Yes) to Save the altered details.

(B) Deletion of a Company in Tally

This task involves creating a new company BBA Temporary Friends Pvt. Ltd., and then
deleting it.

Step 1: Creating the Company (BBA Temporary Friends Pvt. Ltd.)

1. Open Tally ERP 9 / Tally Prime.

2. In the Gateway of Tally, press Alt + F3 → Select Create Company.
3. Enter the company details:
 Field Entry
Company Name BBA Temporary Friends Pvt. Ltd.
Mailing Name BBA Temporary Friends Pvt. Ltd.
Address 2nd Floor, Business Park, Pune - 411001
State Maharashtra
Country India
Pin Code 411001
Telephone No. +91-9000000000
Email [email protected]
Currency INR (₹)
Financial Year 1-Apr-20XX (Current FY)
Books Begin 1-Apr-20XX
PAN Number BBBBB5678B

4. Under Maintain, select:

o Accounts with Inventory (if managing stock) OR
o Only Accounts (if no inventory is needed).
5. Press Enter, and press Y (Yes) to Save.

Step 2: Deleting the Company

1. Open Tally ERP 9 / Tally Prime.

2. In the Gateway of Tally, press F3 (Company Info).
3. Click on Select Company or Alter.
4. Choose BBA Temporary Friends Pvt. Ltd. and press Enter.
5. Press Alt + D to delete the company.
6. A confirmation pop-up will appear:
o "Are you sure you want to delete this company?"
o Press Y (Yes) to confirm deletion.

Assignment 4: Creation of Ledger & Group in Tally

This assignment involves creating ledger accounts, assigning them to appropriate groups,
and entering opening balances in the books of BBA Friends Pvt. Ltd.

Step 1: Open Tally & Select the Company

 1. Open Tally ERP 9 / Tally Prime.
2. In the Gateway of Tally, press F3 (Company Info).
3. Select BBA Friends Pvt. Ltd. and press Enter.
4. In the Gateway of Tally, go to Accounts Info → Ledgers → Create.

Step 2: Creating Ledger Accounts

1. Cash A/c (Already Exists)

 This ledger is automatically created in Tally, so no need to create it manually.

 To check: Go to Display → List of Ledgers → Cash A/c should be listed.
 If not, create it manually:
o Ledger Name: Cash A/c
o Group: Cash-in-Hand
o Opening Balance: ₹5,00,000
o Press Enter & Save.

2. Mr. X A/c (Sundry Debtor)

 Ledger Name: Mr. X A/c

 Group: Sundry Debtors
 Opening Balance: ₹50,000 (Dr)
 Press Enter & Save.

3. Mr. Y A/c (Sundry Creditor)

 Ledger Name: Mr. Y A/c

 Group: Sundry Creditors
 Opening Balance: ₹20,000 (Cr)
 Press Enter & Save.

4. Mr. Z A/c (Sundry Creditor)

 Ledger Name: Mr. Z A/c

 Group: Sundry Creditors
 Opening Balance: ₹30,000 (Cr)
 Press Enter & Save.

5. Capital Account
  Ledger Name: Capital A/c
 Group: Capital Account
 Opening Balance: ₹10,00,000 (Cr)
 Press Enter & Save.

6. SBI Bank A/c

 Ledger Name: SBI Bank A/c

 Group: Bank Accounts
 Opening Balance: ₹5,20,000 (Dr)
 Press Enter & Save.

7. Plant & Machinery A/c

 Ledger Name: Plant & Machinery A/c

 Group: Fixed Assets
 Opening Balance: ₹20,00,000 (Dr)
 Press Enter & Save.

8. Land & Building A/c

 Ledger Name: Land & Building A/c

 Group: Fixed Assets
 Opening Balance: ₹30,00,000 (Dr)
 Press Enter & Save.

9. Furniture & Fixture A/c

 Ledger Name: Furniture & Fixture A/c

 Group: Fixed Assets
 Opening Balance: ₹5,00,000 (Dr)
 Press Enter & Save.

10. SBI Loan A/c

 Ledger Name: SBI Loan A/c

 Group: Bank Loan A/c (Secured Loan or Loan Liability)
 Opening Balance: ₹1,00,000 (Cr)
 Press Enter & Save.
Step 3: Verify Ledger Entries

1. Go to Gateway of Tally → Accounts Info → Ledgers → Display.

2. Check that all the created ledgers appear correctly.
3. Ensure that Opening Balances are correctly entered.

Step 4: View the Trial Balance

1. In Gateway of Tally, go to Display → Trial Balance.

2. Check if the total debit (Dr) and credit (Cr) amounts are matching.
3. If any mismatch occurs, go back and correct the ledger entries.

Assignment 5 – Journal Entries in Tally

This assignment involves recording journal entries using proper vouchers in Tally ERP 9
/ Tally Prime for BBA Friends Pvt. Ltd.

Step 1: Open Tally & Select the Company

1. Open Tally ERP 9 / Tally Prime.
2. Press F3 (Company Info) → Select BBA Friends Pvt. Ltd.
3. Go to Gateway of Tally → Accounting Vouchers

Step 2: Create New Ledgers (If Not Already Created)

Before passing journal entries, create the Purchase A/c and Sales A/c:

Create Purchase A/c

1. Go to: Gateway of Tally → Accounts Info → Ledgers → Create

2. Ledger Name: Purchase A/c
3. Group: Purchase Accounts
4. Press Enter & Save

Create Sales A/c

1. Go to: Gateway of Tally → Accounts Info → Ledgers → Create

 2. Ledger Name: Sales A/c
3. Group: Sales Accounts
4. Press Enter & Save

Step 3: Pass Journal Entries in Tally

(a) Paid Salary of ₹30,000 for April on 1st May, 20XX

 Voucher Type: Payment Voucher (F5)

 Entry:

Account Debit (₹) Credit (₹)

Salary A/c 30,000 -
Cash A/c - 30,000

 Narration: Being salary paid for April month

 Press Enter & Save

(b) Paid Telephone Bill ₹2,000 through SBI Bank Cheque No. 543210 on 5th
May, 20XX

 Voucher Type: Payment Voucher (F5)

 Entry:

Account Debit (₹) Credit (₹)

Telephone Expense A/c 2,000 -
SBI Bank A/c - 2,000

 Narration: Being telephone bill paid via SBI Cheque No. 543210
 Press Enter & Save

(c) Received a Cheque ₹20,000 from Mr. X (Cheque No. 700001), Deposited in
SBI Bank on 8th May, 20XX

 Voucher Type: Receipt Voucher (F6)

 Entry:

Account Debit (₹) Credit (₹)

SBI Bank A/c 20,000 -
Mr. X A/c (Sundry Debtor) - 20,000
  Narration: Cheque received from Mr. X (Cheque No. 700001) & deposited in SBI
Bank A/c (SBIIND123456789)
 Press Enter & Save

(d) Purchased Machinery for ₹50,000 via SBI Bank Cheque No. 123456 on 1st
June, 20XX

 Voucher Type: Payment Voucher (F5)

 Entry:

Account Debit (₹) Credit (₹)

Plant & Machinery A/c 50,000 -
SBI Bank A/c - 50,000

 Narration: Being machinery purchased through SBI Bank (Cheque No. 123456)
 Press Enter & Save

(e) Purchased Goods of ₹1,70,000 from Mr. Y for Cash on 1st Aug, 20XX

Step 1: Create Stock Items

1. Go to: Gateway of Tally → Inventory Info → Stock Items → Create

2. Create 3 stock items as follows:

Item Name Unit Rate per Unit (₹) Total Amount (₹)
Laptop Nos 50,000 50,000
Printer Nos 20,000 40,000
Mouse Nos 8,000 80,000
Total Purchase Value 1,70,000

Step 2: Record Purchase Entry

 Voucher Type: Purchase Voucher (F9)

 Entry:

Account Debit (₹) Credit (₹)

Purchase A/c 1,70,000 -
Cash A/c - 1,70,000

 Narration: Being goods purchased from Mr. Y (Laptops, Printers & Mouse) in
cash
 Press Enter & Save
(f) Sold Goods for ₹2,00,000 to Mr. X for Cash on 10th June, 20XX

Step 1: Select Stock Item to Sell

 Suppose we sell Laptops from Entry (e), we can set the selling price as:
o Laptops: 4 Units @ ₹50,000 each = ₹2,00,000

Step 2: Record Sales Entry

 Voucher Type: Sales Voucher (F8)

 Entry:

Account Debit (₹) Credit (₹)

Cash A/c 2,00,000 -
Sales A/c - 2,00,000

 Narration: Being goods (Laptops) sold to Mr. X for cash

 Press Enter & Save

Step 4: Verify the Transactions

1. Go to: Display → Day Book
2. Ensure all the transactions are recorded correctly.
3. You can also check:
o Ledger-wise balances (Accounts Info → Ledgers → Display)
o Trial Balance (Display → Trial Balance)

Assignment 6 – Final Accounts & Report Preparation in

Tally
This assignment involves preparing Final Accounts & Reports in Tally ERP 9 / Tally
Prime for BBA Friends Pvt. Ltd. based on the transactions recorded in Assignment 2, 3, 4,
and 5.

Step 1: Open the Company in Tally

 1. Open Tally ERP 9 / Tally Prime
2. Select the company: BBA Friends Pvt. Ltd.
3. Verify all previous transactions (Go to Display → Day Book)

Step 2: View & Generate Trial Balance

Steps to View Trial Balance

1. Go to: Gateway of Tally → Display → Trial Balance

2. Select 31st March, 20XX as the date
3. Trial Balance will show the closing balances of all accounts

Example: Trial Balance

Ledger Name Debit (₹) Credit (₹)

Cash A/c 5,00,000 -
SBI Bank A/c 5,20,000 -
Capital A/c - 10,00,000
Mr. X A/c (Debtor) 50,000 -
Mr. Y A/c (Creditor) - 20,000
Mr. Z A/c (Creditor) - 30,000
Plant & Machinery A/c 20,50,000 -
Land & Building A/c 30,00,000 -
Furniture & Fixture A/c 5,00,000 -
SBI Loan A/c - 1,00,000
Purchase A/c 1,70,000 -
Sales A/c - 2,00,000
Salary A/c 30,000 -
Telephone Expense A/c 2,000 -

 Ensure that Debit = Credit

 Press Alt + P to Print or Export the Trial Balance

Step 3: View & Generate Trading Account

Steps to View Trading Account

1. Go to: Gateway of Tally → Display → Profit & Loss A/c

2. Press F12 (Configure) → Enable Trading Account
3. Press F2: Select 31st March, 20XX
Example: Trading Account

Particulars Amount (₹) Particulars Amount (₹)

To Opening Stock 0 By Sales 2,00,000
To Purchases 1,70,000
To Gross Profit (Balancing Figure) 30,000
Total 2,00,000 Total 2,00,000

 Gross Profit = Sales - Purchases = ₹2,00,000 - ₹1,70,000 = ₹30,000

Step 4: View & Generate Profit & Loss Account

Steps to View Profit & Loss A/c

1. Go to: Gateway of Tally → Display → Profit & Loss A/c

2. Select 31st March, 20XX as the date

Example: Profit & Loss Account

Particulars Amount (₹) Particulars Amount (₹)

To Salary A/c 30,000 By Gross Profit 30,000
To Telephone Expense A/c 2,000
Net Profit (Loss) (2,000)

 Net Loss = Gross Profit - Expenses = ₹30,000 - ₹32,000 = ₹(2,000)

Step 5: View & Generate Balance Sheet

Steps to View Balance Sheet

1. Go to: Gateway of Tally → Display → Balance Sheet

2. Select 31st March, 20XX
3. Press Alt + F1 for detailed view
Example: Balance Sheet

Liabilities Amount (₹) Assets Amount (₹)

Capital A/c 10,00,000 Cash A/c 5,00,000
SBI Loan A/c 1,00,000 SBI Bank A/c 5,20,000
Mr. Y A/c (Creditor) 20,000 Mr. X A/c (Debtor) 50,000
Mr. Z A/c (Creditor) 30,000 Plant & Machinery A/c 20,50,000
Net Loss 2,000 Land & Building A/c 30,00,000
Total 11,52,000 Total 11,52,000

 Ensure that Total Liabilities = Total Assets

 Press Alt + P to Print or Export the Balance Sheet

Step 6: Save & Export Reports

1. Press Alt + E to Export the reports in PDF or Excel
2. Press Alt + P to Print the reports