E - BUSINESS AND ACCOUNTING.

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1
ABHISHEK D K, COMMERCE LECTURER.
CHAPTER – 4:
CONFIGURING TALLY:
Configuring Tally (F12):

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Configuration in Tally applies for the company. They are:
1. General:
In General Configuration, it contains the Country Details, Naming Style, Format of
Dates, Format of Numbers, Table Configuration, Import / Export Options and Other
Options. These are the options which can be operated accordingly to the requirement.
2. Numeric Symbols:
This option is only for the Number Styles and prefix / suffix to be used and symbols
for Debit and Credit Amounts.
3. Accounts / Inventory Info.:
This option allows the Accounts and Inventory to use the address and contact details
or godown details and description, remarks of the stocks.
4. Voucher Entry:
Two options always to be activated:
a. Use Single Entry mode for Payment / Receipt / Contra: NO
b. Use Cr / Dr instead of To / By during an entry: YES
Other options in Voucher Entry can be activated as per the requirement of a
customer.

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5. Invoice or Order Entry:
This option is used only when the Invoice order is been needed.
Security and Access Control in Tally:
When many users have access to Tally.ERP 9, the issue of ‘control’ crops up-what are
different users allowed to do? Can user ‘A’ be allowed to make voucher alterations? Should
user ‘B’ be allowed to print reports?
Tally.ERP 9 security keeps everything open by default (full access); you progressively ‘lock-
down’ the system as the need arises. To simplify usage, you can define standard sets of
rights and use these as templates for specific users, adding or removing rights for that user, if
required.
Once you open your company for Tally.NET remote access, you can apply the same level of
control to such users – a Tally.NET Identity (ID) is added in exactly the same way as the
‘normal’ user.
Other Aspects related to security are:
 Administrators can get access to all features of the Control Centre, the enterprise-wide
control point, but can be denied access to business data.
 If you have some extra sensitive data, you can specify a password that must be
provided to even open the company. This is implemented with a secure encryption
method and renders the data useless to anyone who manages to get a copy of the data
files.
 Un-encrypted data may need protection against casual theft. With Tally.ERP 9, you
can specify that data is not accessible locally via an Educational version.
 You might have customized Tally.ERP 9 to deliver certain proprietary business
capabilities; you might not like these to be available to others. With Tally.ERP 9, you
can limit access to specific Tally.ERP 9 serial numbers, and even restrict access from
Educational Versions.
Almost all security and access needs are covered by default. In case, you require additional
controls (say, suppliers are to be given remote access only to their respective accounts), these
are customizable. Contact your Tally.ERP 9 dealer or look up a Tally Service Partner.

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Working with Tally:
To work with Tally, fundamental knowledge is required. One must know the golden rules of
accounting for preparation of Final Accounts. In early times, manual system of accounting
was required for maintaining the Books of Accounts such as Journal, Cash Book, Special
Purpose Book, Ledger and so on. Such lengthy process of preparing Accounts is been
simplified in Tally. In India, Tally.ERP 9 is the most popular and reliable business software
for Finance, Accounting, Inventory and Payroll Management. Tally professionals having
expertise in Computerized Accounting, Taxation, Payroll Accounting, GST, VAT,Excise and
Service Tax are highly demanded.
The process of accounting of Tally is given below:
1. Creation of Company in Tally.
2. Identify the Groups and Ledgers to be created respectively for the specific transaction.
3. Identify the monetary transaction with the help of given voucher or invoices.
4. Know the particular ledger to be debit or Credit with the help of the transaction given.
5. In addition to the voucher entries, Cost Center, Cost Categories are also been created
for accounting purpose and Stock Items, Stock Categories and Unite of Measurement
will be created for the Inventory information.
6. On entering all the transactions, reports will be automatically generated.
Group Creation:
A Group is a collection of ledgers which have similar transactions. For example, all account
heads relating to fixed assets of the company are grouped under the fixed assets primary
group in Tally.ERP 9. Using this classification, one can generate reports that are meaningful
as well as compliant with statutory requirements.
Tally.ERP 9 provides a set of 28 Pre-defined Groups under which Ledgers can be classified.
i.e., 15 Primary Groups and 13 Sub Groups. Out of the 15 Pre-defined Primary Groups, 9
Primary Groups are of Capital nature (which appears in Balance Sheet) and 6 Primary Groups
are of Revenue nature (which appears in Profit and Loss Account). All 13 Sub-Groups are
classified under the 9 Primary Groups that are Capital in nature and appear in the Balance
Sheet.

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The 15 Primary Groups are Branch / Divisions, Capital Account, Current Assets, Current
Liabilities, Direct Expenses, Direct Incomes, Fixed Assets, Indirect Expenses, Indirect
Incomes, Investments, Loans (Liability), Misc. Expenses (Asset), Purchase Accounts, Sales
Accounts and Suspense Account.
The 13 Sub-Groups are Bank Accounts, Bank OD Account, Cash-in hand, Deposits (Asset),
Duties and Taxes, Loans and Advances (Asset), Provisions, Reserves and Surplus, Secured
Loans, Stock-in-hand, Sundry Creditors, Sundry Debtors and Unsecured Loans.
Before the actual entry begins in Tally, necessary Ledgers should be created. Each Ledger
should be attached to a Group. Care should be exercised to assign Ledger to the Group.
Assigning a Ledger to a Group is dependent on the nature of account to which the Ledger
belongs. If necessary, additional Groups can be created under each Group.
Creating a Group:
In Tally.ERP 9, there are two options for creating Groups:
Single Group – We can create only One Group by using Single Group Creation screen.
Multiple Groups – We can create Multiple Groups by using Multiple Group Creation screen.
Creating a Single Group:
Group is a collection of Ledgers of the same nature. Tally.ERP 9 allows us to create Groups
as per our requirements.

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Go to -> Gateway of Tally -> Accounts Info. -> Groups -> Create under Single Group.
The Group Creation screen is displayed as shown:
Name of Group:
Enter the name of the Group to be created.
For example, “Administrative Expenses” in the name field.
Alias:
Enter an alias name to allow access to the group using the alias in addition to its name or
leave it blank. For example, for Administrative Expenses, you can enter Office Expenses or
even an alphanumeric code, say E001, as an alias.
Under:
Specify under which existing (Parent) Group, the sub-classification is required.
Pre-defined Groups in Tally.ERP 9:
By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The user can
create any number of Primary Groups and Sub Groups which are again grouped under a
Primary Group / Sub-Group.

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Ledger Creation:
Go to Gateway of Tally -> Accounts Info. -> Ledgers.
We can create either Single or Multiple Ledgers.

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Debtor / Creditor Classification:
1. Placing individual party accounts under Sales or Purchase Accounts Groups:
Accounts of parties with whom your company has trade relationship must be opened
under one of the following Groups (or sub-groups under them) only:
a. Sundry Debtors.
b. Sundry Creditors.
c. Branch / divisions.
Sales and Purchase Account Groups are meant for Revenue Accounts and would be reflected
in the Profit and Loss Account. If we open party accounts under these Groups, we will find it
difficult to pass sales or purchase voucher transactions. For example, in a sales voucher
transaction entry, we must debit an account which is a Sundry Debtor, Branch / Division or
even a Sundry Creditor. Moreover, other facilities like bill-wise allocation and tracking will
not be available unless the accounts belong to one of these groups.
2. Opening two accounts of the same party:
For convenience Tally.ERP 9 has separately classified Debtors, Creditors and Branch
/ Divisions. There is no operational distinction except for the purpose of keeping the
accounts of a particular group together during displays and analysis. We can pass
both sales and purchase entries for a party account placed under Sundry Debtors.
We can use the classification depending on the most natural Group for the party. For
example, parties from whom we buy more frequently than we sell to, can be placed
under Sundry Creditors, as that would be the natural place for us to look for his
account.
Tally.ERP 9 does not restrict the accounts from having adverse balances. Thus, a
Sundry Debtor can have a credit balance depending on the state of his account.
Note: We need not open two accounts of the same party – one under Sundry Debtors
and another under Sundry Creditors.
Remember, Tally.ERP 9 restricts us from opening two identical Ledger Accounts. Of
course, we may decide to circumvent by marking on account as A & Co -
S / Dr and another A & Co – S / Cr. Doing this would allow us to have two accounts
of the same party under two groups, but we would lose the advantage of analyzing his
net position at one instance. We can maintain a single account to obtain best results.

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3. Placing expenditure items under a Liabilities Group:
Example: the expenditure item ‘Rates & Taxes’ under the Group ‘Duties and Taxes’.
The Group Duties and Taxes is specifically meant to handle taxation liabilities of our
company.
Rates & Taxes and other statutory expenses should be placed under Indirect Expense.
Pre-defined Ledgers in Tally.ERP 9:
There are two pre-defined Ledgers available in Tally.ERP 9. They are:
I. “Cash”:
This Ledger is created under the Group Cash-in-hand. We can enter the opening
balance as on the date of books beginning from. We can also alter the name and even
delete the Ledger.
II. “Profit and Loss Account”:
This Ledger is created under the Group Primary. Previous year’s Profit or Loss is
entered as the opening balance for this Ledger. The balance entered here is treated as
the opening profit / loss and shown in the Balance Sheet as opening balance of Profit
and Loss Account in the Liabilities side.
We cannot delete this Ledger, but we can modify the same.
Creating a Single Ledger:
By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in-Hand)
and Profit and Loss Account (direct Primary Account). We need to create all other accounts
heads. There are no restrictions in Ledger creation except that we cannot create another
Profit and Loss Account. Any number of Cash Accounts may be created in any other name,
for eg: Petty Cash.
Go to Gateway of Tally -> Accounts Info -> Ledgers -> Create.
Ledgers can be created in Normal Mode or in Advance Mode.

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Creating Ledger in Normal Mode:
The creation of a Ledger depends on the features we have selected under F11: Features of our
company and F12: Configure. We can create a Single Ledger Account with the default
options enabled.
Go to Gateway of Tally -> Accounts Info -> Ledgers -> Single Ledger -> Create.
 Name:
Enter the Name of the Account. We can provide the full name of the account. Tally.ERP 9
fits it all in. Press Enter to move to the next field. Tally.ERP 9 does not allow the entry of
duplicate names. The uniqueness check is made here itself.
Note that the punctuation and other non-relevant information are ignored by Tallly.ERP 9 in
its recognition of a name. Thus, GST, G.S.T. and G. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps us; speed
up data entry.
 Alias:
Enter an alias name if required. We can access the Ledgers using the original name
or the alias name.

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 Under:
All accounts must be classified under their appropriate Groups. Select the Group
under which the Ledger is created from the List of Groups. (To create a new Group
from this field, press Alt+C). A wrong classification would affect the treatment of
the Ledger account in final statements and during voucher entry. We can alter a
Ledger account to change its Group classifications at any time.
 Opening Balance:
If ours is an existing company whose books we are entering into Tally.ERP 9,
Opening Balance would be applicable in circumstances where the Ledger is an asset
or a liability and if it has a balance in the account as on the date of beginning of books
in Tally.ERP 9.
Creating a Purchase / Sales Ledger:
Purchase / Sales Ledgers are required for trading, repacking or for usage in manufacturing
products. Sales and Purchase Account Groups are meant for revenue accounts and are
reflecting in the Profit & Loss Account.
To create a Purchase / Sales Ledger:

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 Inventory values affected:
This is applicable for Companies maintaining Accounts with Inventory. Inventory
allocation is required for Accounts like Sales, Purchase, Receipt Note, Delivery Note,
etc. However, Tally.ERP 9 does not restrict to particular accounts as we may have the
need to affect inventory with accounts like Customs Duty and perhaps, Direct
Expenses related to purchases such as Freight Inwards.
 Cost Centres are applicable:
Tally’s concept of Cost Centres allows an additional dimension to a transaction.
 We have set Maintain Cost Centers to Yes in F11: Features: F1: Accounting
Features, to get this option in the Ledger creation screen. If any of the transactions
need to be allocated to any particular Cost Center (which involves this Ledger), set
this option to Yes.
 Activate Interest calculation:
Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based
on the interest rate and style of calculation specified for this Ledger account.
 Use advanced parameters:
The advanced parameters are particularly useful where interest rates change from
time to time. Set this option to Yes to enable this.
 Provide Bank Details:
This option allows us to set our Bank Details such as the Account Number, Bank
Name, IFSC code, BSR, etc.

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Creating a Expenses / Income Ledger:
Expense Ledgers must be created for each of the expense account separately.
To create an Expenses / Income Ledger,
need to affect inventory with accounts like Customs Duty, and perhaps, direct
expenses related to purchases such as Freight Inwards.
this option to Yes.

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Creating a Duty and Taxes Ledger:
Tax Ledgers should be created under Duties and Taxes Group which contains all tax accounts
like GST, VAT, CENVAT, Excise, Sales and other trade taxes and total liability.
To create a Tax Ledger,
 Type of Duty / Tax:
This option is based on statutory compliance of company. For Indian statutory, by
default, it will show the Excise and Others. Depends on features in F11: Statutory,
more options will be included in the Type of Duty / Tax.
need to be allocated to any particular Cost Center, set this option to Yes.

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 Percentage of Calculation:
The Group Duties and Taxes are used for automatic tax calculation. We need to
specify the rate of tax, eg: 5%, 10%, 12.5%, etc. We can use an automatic Discount
calculation facility by specifying a negative percentage in this field. On entering a
percentage, a new field Method of Calculation is displayed. From the Method of
Calculation, we can select appropriate options to calculate the Tax / Duty.
 Rounding Method:
This is used to round off the duty value. By default, rounding method will be Blank.
Once we select rounding method, rounding Limit sub option will be displayed. Here,
we can specify the round off limit.
For Example:
For Duty value 123.33 and rounding Limit is 1,
Downward rounding will show as 123
Normal rounding will show as 123
Upward rounding will show as 124
Creating a Current Liabilities / Assets Ledger:
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be
created directly under Current Liabilities and Assets can be classified as Current Assets and
Fixed Assets. To create Fixed Assets Ledger,

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this option to Yes.

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Creating a Ledger with Advanced Usage:
The information required for creating Ledgers depends on the features selected by us under
F11: Features and F12: Configure. The Ledger Creation screen will have additional fields
depending on our feature settings for our company. If we set the field,Provide advanced
information in Masters in F12: Configure (Ledger Configuration) as Yes, we can work in
Advanced.
Enable the following features in F11: Features (F2: Accounting Features):
 Allow Multi-Currency.
 Maintain Billwise Details.
 Maintain Cost Centres.
Enable all the options under Accounts Masters in F12: Configure (Ledger Configuration):
Creating Multiple Ledgers:
We can create Multiple Ledgers at a time in this mode. This will save the time of the user.
Go to Gateway of Tally -> Accounts Info -> Ledgers -> Multiple Ledgers -> Create.

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Under Group:
Select the Name of the Group under which we want to create the Ledgers from the List of
Groups. Below this field, the other fields are arranged in a table. The cursor rests at the field
Name of Ledger. The other fields in the column are:
 Sl.No.:
This is auto generated.
 Name of Ledger:
 Enter the Name of the Ledger.
 Under:
If we select All Items in Under Group field, we have the option to select the Group in
this column. We can even create a new Group from this field by pressing Alt+C. If
we have selected any other Group in Under Group, the selected Group in Under
Group gets displayed here automatically and the cursor skips this column.
 Opening Balance:
This is the balance remaining when we first enter our books on Tally.ERP 9, i.e., the
date of beginning of books. If we have opted to maintain balances bill-by-bill, we
must give the bill details.

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 Dr / Cr:
Specify whether the Opening Balance is Debit or Credit. Tally.ERP 9 follows the
normal accounting principles.
Note: While creating Ledgers in Multiple mode, the filed Cost Centres are applicable, is set
to YES for Revenue Accounts and NO for Non-Revenue Accounts by default. The filed
Inventory values are affected is set to YES for Sales and Purchase accounts and NO for the
others by default.
Displaying / Altering a Ledger Account:
Information under Display and Alter is the same. Display option does not permit any
modification. Any option permits us to alter the information. We are allowed to alter any
information of the Ledger Master with the exception of the Closing Balance of a Ledger
Account, if any, other than Closing Balance of Accounts under the Group Stock-in-hand.
Go to Gateway of Tally -> Accounts Info -> Ledgers -> Display or Alter.
Modification of Account Ledgers is possible under Single Ledgers as well as Multiple
Ledgers option. However, under Multiple Ledgers, all the fields are not available for
Alteration.
Deleting a Ledger Account:
We can delete the Ledger if no vouchers have been created under this Ledger.
Go to Gateway of Tally -> Accounts Info -> Ledgers -> Alter -> Press Alt+D.
If we want to delete a Ledger for which Vouchers have been created, then we have to first
delete all the Vouchers from that Ledger and then delete the Ledger Account.

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Ledger and Groups:
Ledger Group
Opening Stock
Purchases
Purchase Returns
Freight Charges
Carriage Inwards
Cartage and Coolie, Octroi
Railway Freight
Manufacturing Wages
Coal, Gas, Water
Oil and Fuel
Factory Rent, Insurance, Electricity, Lighting
and Heating
Sales
Sales Returns
Salary
Postage and Telegrams
Telephone Charges
Rent Paid
Rates and Taxes
Insurance
Audit Fees
Interest on Bank Loan
Interest on Loans Paid
Bank Charges
Legal Charges
Printing and Stationery
General Expenses
Sundry expenses
Discount Allowed
Stock in hand
Purchase Accounts
Purchase Accounts
Direct Expenses
Direct Expenses
Direct Expenses
Direct Expenses
Direct Expenses
Direct Expenses
Direct Expenses
Direct Expenses
Sales Accounts
Sales Accounts
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses

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Carriage Outwards
Travelling Expenses
Advertisement
Bad Debts
Repairs, Renewals
Motor Expenses
Depreciation on Assets
Interest on Investments Received
Interest on Deposits Received
Interest on Loans Received
Commission Received
Discount Received
Rent Received
Dividend Received
Bad Debts Recovered
Profit by Sale of Assets
Sundry Incomes
Loan from Others
Bank Loan
Bank Overdraft
Bills Payable
Expense Outstanding
Income Received in Advance
Other Liabilities
Mortgage Loans
Capital
Drawings
Cash in hand
Cash at bank
Fixed Deposit at bank
Investments
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Expenses
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Loans (Liability)
Loans (Liability)
Bank OD A/c
Current Liabilities
Current Liabilities
Current Liabilities
Current Liabilities
Secured Loans
Capital Account
Capital Account
Cash-in-Hand
Bank Accounts
Deposits (Asset)
Investments

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Bills Receivable
Stock of Stationery
Prepaid Expenses
Income Outstanding
Sundry Debtors (Customers)
Closing Stock
Sundry Creditors (Suppliers)
Loose Tools
Fixtures and Fittings
Furniture
Motor vehicles
Plant and Machinery
Land and Building
Leasehold Property
Patents
Goodwill
Miscellaneous Expenses Account
Current Assets
Current Assets
Current Assets
Current Assets
Sundry Debtors
Stock-in-Hand
Sundry Creditors
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Miscellaneous Expenses (Asset)
Function Keys / Shortcut Keys:
Alt + 2: To Duplicate a Voucher.
Alt + A: To Add a Voucher.
Alt + C: To Create a Master at Voucher Screen.
Alt + D: To Delete a Voucher.
Alt + I: To Insert a Voucher.
Alt + F3: To Select the Company Info Menu (At Gateway of Tally Screen).
Alt + F5: To View Sales and Purchase Register Summary on a quarterly basis.
F8 (Ctrl + F8):To Select Credit Note Voucher.
F9 (Ctrl + F9): To Select Debit Note Voucher.
Ctrl + Enter: To Alter a master while making an entry or Viewing a Report.
Ctrl + R: To Copy an item from the previous year.
Ctrl + V: To Select the Voucher.
Alt + F2: View details between two dates.

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Role of F2 and Escape Keys:
F2 = To Enter the Date and Period.
Esc =To come out of any screen without affecting change.
Other Keys:
F1: To Select a Company and To Shut a Company.
PgUp: Displays Previous Voucher during Voucher Entry / Alter.
PgDn: Displays Next Voucher during Voucher Entry / Alter.
Enter: To Accept anything we type into a field.
F3: Company Information (Info).
F11: Features.
F12: Configuration.
Voucher Entry Function Keys:
F4: Contra Voucher.
F5: Payment Voucher.
F6: Receipt Voucher.
F7: Journal Voucher.
F8: Sales Voucher.
F9: Purchase Voucher.
Ctrl + F8: Credit Note.
Ctrl + F9: Debit Note.
Ctrl + F10: Memo Voucher.
Ctrl + G: To Create “Stock Group” from the Stock Item Creation Screen.
Ctrl + C: To Create “Currency” from the Stock Item Creation Screen.
Ctrl + S: To Create “Cost Category” from the Stock Item Creation Screen.
Ctrl + C: To Create “Cost Center” from the Stock Item Creation Screen.
Ctrl + B: To Create “Budget” from the Stock Item Creation Screen.
Ctrl + V: To Create “Voucher Type” from the Stock Item Creation Screen.

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Accounting Vouchers:
Type of Voucher Description
1. Contra Voucher (F4):
2. Payment Voucher (F5):
3. Receipt Voucher (F6):
4. Journal Voucher (F7):
5. Sales Voucher (F8):
6. Credit Note (Ctrl + F8):
7. Purchase Voucher (F9):
8. Debit Note (Ctrl + F9):
9. Memo Voucher (Ctrl + F10):
10. Inventory Voucher (Stock
Journal):
To record Cash deposited into Bank and
Withdrawals of Cash from Bank for Office
use.
To record all types of Payments (Both Cash
and Bank).
To record all types of Receipts (Both Cash
and Bank).
To record Adjustment Entries.
To record Sales (Both Cash and Bank).
To give Credit to the Party. When Buyer
returns, Credit Note is created to give Credit
to this extent.
To record Purchases (Both Cash and Credit).
To give Credit to the Party. When goods are
returned to Creditors, Debit Note is created to
give Debit to this extent.
It is a non-accounting voucher whose entries
do not affect the accounts. Entries in this
voucher will not be posted into ledgers.
These vouchers are separately stored in
Memo Register. These Vouchers can be
regularized later by pressing F10.
To transfer goods between Godowns.

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Accounting Vouchers:
1. Contra Voucher (F4):
 Contra Entry is a transaction indicating transfer of funds from:
 Cash Account to Bank Account.
 Bank Account to Cash Account.
 One Bank Account to another Bank Account.
 In this voucher, Credit comes first and next Debit.
<Syntax>
Cr: Cash in hand / Bank Accounts.
Dr: Cash in hand / Bank Accounts.
The main transactions recorded in this voucher are:
 Deposited Cash into Bank.
 Withdraw of Cash from Bank.
 Transfer of Cash from one Bank to another.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Contra Voucher (F4).
Step 1: F2 -> Date, F12 -> Configuration.
Step 2: Pass the Entry.
Step 3: Give Narration.
Step 4: Save it or Output: YES.
2. Payment Voucher (F5):
 All Payments either in the form of Cash / Bank should be recorded in this
Voucher.
 In this Voucher, Debit comes first and next Credit.
<Syntax>
Dr: Expenses / Purchase of Fixed Assets / Purchase of Shares / Duties & Taxes /
Sundry Debtors & Sundry Creditors.
Cr: Cash in hand / Bank Accounts.
 Payment of Expenses. Ex: Rent paid, Commission paid, etc.
 Purchase of Fixed Assets. Ex: Furniture, Land & Building, Machinery, etc.

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 Purchase of Shares. Ex: Shares in Wipro, Shares in Infosys, etc.
 Payment of Taxes by Cash.
 All types of Bills Cleared to Customers / Suppliers.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Payment Voucher (F5).
3. Receipt Voucher (F6):
 All Receivables either in a form of Cash / Bank should be recorded in this
Voucher.
 In this Voucher, Credit comes first and next Debit.
<Syntax>
Cr: Incomes / Sale of Fixed Assets / Sale of Shares / Capital Account / Sundry Creditors and
Sundry Debtors.
Dr: Cash in hand / Bank Accounts.
 Income Received: Eg: Commission Received, Interest Received, etc.
 Sale of Fixed Assets: Eg: Furniture, Land and Building, Machinery, etc.
 Sale of Shares. Eg: Shares in Reliance, TESCO, etc.
 Capital introduced to Business.
 All types of Bills cleared from Customers or Supplies.
Types of Bills:
1. New Reference Bill.
2. Against Bill.
3. On Account Bill.
4. Advance Bill.

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Procedure:
Gateway of Tally –> Transactions –> Accounting Vouchers –> Receipt Voucher (F6).
Step 1: F2 – Date, F12 – Configuration.
4. Journal Voucher (F7):
 They are also referred as Adjustment Voucher.
 All types of transactions can be recorded in this Voucher. But, it should not
include C – Cash, B – Bank, P – Purchases and S – Sales (C, B, P, S).
 In this Voucher, Debit comes First and next Credit.
<Syntax>
Dr: Any Ledger.
Cr: Any Ledger.
 Depreciation of Fixed Assets.
 Appreciation of Fixed Assets.
 Bills of Exchange.
 Transfer of Cash from One Account to Another.
 Receivables / Payables without Cash and Bank.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Journal Voucher (F7).

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5. Sales Voucher (F8):
 A Sales Voucher is used when goods or services are sold to a Customer
(Sundry Debtor), for example, a Company sells Software on Credit / for Cash.
 Sales Voucher is also known as Invoice.
 In Tally.ERP 9, when Invoicing Feature is activated, you can generate sales
invoices as per our business requirements.
 Cash and Credit Sales transactions are going to be recorded in this voucher.
 In this Voucher, Debit comes First and next Credit.
<Syntax>
Dr: Cash in hand / Sundry Debtors.
Cr: Sales Accounts.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Sales Voucher (F8).
6. Purchase Voucher (F9):
 A Purchase Voucher is used when goods or services are purchased from the
Supplier (Sundry Creditor), for example, a Company purchases Raw Materials
on Credit / for Cash.
 A Purchase Voucher is also known as Purchase Invoice or a Bill, which is
issued by the Supplier for the Purchases made by the Customer.
 In Tally.ERP 9, when invoicing feature is activated, you can create Purchase
Invoice as per your business requirements.
 If the Purchase Invoice needs to prepare, Activate (Ctrl + V) in the Purchase
Voucher.
 Cash and Credit Purchase transactions are going to be recorded in this
Voucher.

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 In this Voucher, Credit comes First and then Debit.
<Syntax>
Cr: Cash in hand / Bank Accounts / Sundry Creditors.
Dr: Purchase Accounts.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Purchase Voucher (F9).
7. Credit Note Voucher (Ctrl + F8):
 A Credit Note is prepared by the seller and it contains the
date on which goods are returned, name of a customer, details of the goods
received back, amount of such goods and reasons for returning the goods.
 A Credit Note Register records all the Credit Notes passed during the relevant
period.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Credit Note Voucher (Ctrl +
F8).
8. Debit Note Voucher (Ctrl + F9):
 Debit Note Voucher is prepared by the buyer and it contains the date of goods
returned, name of the supplier, details of the goods returned and reasons for
returning the goods and so on.
 A Debit Note Register records all the Debit Notes passed during the relevant
period.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Debit Note Voucher (Ctrl +
F9).

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9. Reversing Journal Voucher (F10):
 Reversing Journal Voucher is used to record the transaction without affecting
the ledger accounts and financial statements.
 All reversing journal transactions are stored in a Reversing Journal Register.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Reversing Journal Voucher
(F10).
10. Memo Voucher (Ctrl + F10):
This is a non – accounting voucher and the entries made using it will not affect your
accounts. That is, Tally.ERP 9 does not post these entries to ledgers but stores them
in a separate Memo Register.
Procedure:
Gateway of Tally -> Transactions -> Accounting Vouchers -> Memo Voucher (Ctrl + F10).

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PROBLEMS:
1. Pass the Voucher Entries for the following transactions:
1/04/2019 Salary Outstanding Rs. 10,000.
2/04/2019 Rent Prepaid Rs. 5,000.
3/04/2019 Paid Robin Smith in full settlement of his account Rs. 2,800.
Solution:
Voucher Entries for the following transactions:
Date Particulars L/F Debit (Rs.) Credit (Rs.) Group Type of
Voucher
1/04/2019
2/04/2019
3/04/2019
Salary A/c Dr.
To Outstanding Salary A/c.
(Being Salary is
Outstanding).
Prepaid Rent A/c Dr.
To Cash A/c.
(Being paid Rent in
advance).
Robin Smith’s A/c Dr.
To Cash A/c
To Discount Received A/c.
(Being Settlement of Robin
Smith’s account).
10,000
5,000
3,000
10,000
5,000
2,800
200
Indirect
Expenses.
Current
Liabilities.
Current Assets.
Cash – in –
hand.
Sundry
Creditors.
Cash – in –
hand.
Indirect
Incomes.
Journal Voucher
(F7).
Journal Voucher
(F7).
Payment
Voucher (F5).
2. What are the procedures involved in making the Voucher Entries for the
following transactions:
1/04/2019 Salary Outstanding Rs. 10,000.
2/04/2019 Rent Prepaid Rs. 5,000.
3/04/2019 Paid Robin Smith in full settlement of his account Rs. 2,800.
Solution:
Procedures involved in making the Voucher Entries for the following transactions:
a. Transaction as on 1/04/2019:

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 Entering the transactions through Journal Voucher (F7).
Gateway of Tally -> Accounting Vouchers -> Select Journal Voucher (F7).
 Press F2 (Date) to Enter the Date - 1/04/2019.
Accounting Rule Particulars Debit (Rs.) Credit (Rs.)
Dr.
Cr.
Salary Account.
Outstanding Salary
Account.
(Being Salary is
Outstanding).
10,000
10,000
Accept “Yes” to save the Voucher.
b. Transaction as on 2/04/2019:
 Entering the transactions through Journal Voucher (F7).
Gateway of Tally -> Accounting Vouchers -> Select Journal Voucher (F7).
 Press F2 (Date) to change the Date from 1/04/2019 to 2/04/2019.
Dr.
Cr.
Prepaid Rent
Account.
Cash Account.
(Being paid Rent in
advance).
5,000
5,000
c. Transaction as on 3/04/2019:
 Entering the transactions through Payment Voucher (F5).
Gateway of Tally -> Accounting Vouchers -> Select Payment Voucher (F5).
 Press F2 (Date) to change the Date from 2/04/2019 to 3/04/2019.
Dr.
Cr.
Cr.
Robin Smith’s
Account.
Cash Account.
Discount Received
Account.
(Being paid Robin
Smith in full
settlement of his
account).
3,000
2,800
200

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3. Create the necessary Ledgers for the following transactions:
1/04/2019 Salary Outstanding.
2/04/2019 Rent Prepaid.
3/04/2019 Paid Robin Smith in full settlement of his account.
Solution:
Creation of Ledgers for the following transactions / procedures involved in creation of
Ledgers for the following transactions:
 Ledgers to be created:
Salary Account and Outstanding Salary Account.
 Salary Account:
Gateway of Tally -> Accounts Info -> Ledgers -> Single -> Create.
[and Enter the following details].
Name: Salary Account.
Alias: Leave the field Blank.
Under Group: Indirect Expenses.
Opening Balance: Leave the field Blank.
Then, press “Y” to save the Ledger.
 Outstanding Salary Account:
Name: Outstanding Salary Account.
Under Group: Current Liabilities.
Prepaid Rent Account and Cash Account.
 Prepaid Rent Account:

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Name: Prepaid Rent Account.
Under Group: Current Assets.
 Cash Account:
By default, Tally creates this account. Hence, it is not necessary to create
this account.
c. Transaction as on 3/04/2019:
Robin Smith’s Account, Cash Account and Discount Received Account.
 Robin Smith’s Account:
Name: Robin Smith’s Account.
Under Group: Sundry Creditors.
 Cash Account:
this account.
 Discount Received Account:
Name: Discount Received Account.
Under Group: Indirect Incomes.

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4. Create the necessary Ledgers for the following transactions:
1/03/19 Purchased goods for Cash.
2/03/2019 Purchased goods and paid by Cheque.
Solution:
Creation of Ledgers for the following transactions / procedures involved in creation of
Ledgers for the following transactions:
Purchases Account and Cash Account.
 Purchases Account:
Name: Purchases Account.
Under Group: Purchase Accounts.
 Cash Account:
this account.
Purchases Account and Bank Account.
 Purchases Account:
It is already created in the previous transaction. So, we should not create it
again.
 Bank Account:
Name: Bank Account.
Under Group: Bank Accounts.

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________________________________________________________

E - BUSINESS AND ACCOUNTING.

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E - BUSINESS AND ACCOUNTING.