Tally Book

PREPARE BY VELOCIS EDUCATION TALLY PRIME BOOK
ACCOUNTING FUNDAMENTAL AND INTRODUCTION OF TALLY PRIME
Golden rules of accounting

manual accounting and entries
Real a/c - Debit what comes in

Credit what goes out
It include cash Assets Investment goods, etc.
Personal A/c - Debit that receiver

Credit the giver
It include company name, party name, bank name , personal’s name, etc.
Nominal a/c - Debit all expenses & losses

Credit all income & grains
It include all expenses & losses all income & grains .
1
Introduction of tally prime :-

Tally prime is an Indian company, which introduced by the company pentronics Pvt . Ltd . it was
Bangalore based company which was set up by Mr. Gonek in the year 1988 the Reliance industry took
over the 51% shares of company & decided to change the name of the company to tally prime
soluation Pvt.Ltd .
Steps to create a company in tally prime
 Open the “tally prime” software.

 Click F3 and then select create company
 A form will be displayed
 Fill the form with necessary details and press ‘Enter’ from the keyboard after filling every detail.
2
COMPANY CREATION , ALTER, DELETE

We get state TALLY PRIME software
Then “press enter “ to education mode
Shortcut hey for company creation > (Alt + k ) press to keyboard
Alter selection
1. Alter selection to check out your company data
2. Alter selection for your company delete
For shortcut key (Alt + d )
Select Company OR Change company

Select company OR Change company for data selection and edit for data functions
TO shortcut key for (Select Company = Alt + F3
Change Company = Ctrl + F3 )
3
ZERO VALUE ENTRY

Zero value entry is used when you want to pass the entry without any amount as you do not know the
exact amount you will have to pay.
Gateway of tally > Alter > Accounting Master > Voucher Type > Purchase
Purchase > Allow zero value entry transitions – yes
Gateway of tally > Voucher
Purchase Voucher (F9)

Party’s name : DHRUV (Under : Sundry Creditors)
Purchase A/c :purchase (Under : purchase A/C)
Name of Item Quantity Rate Amount

Dvd player 10
 How to Check the entries,
Gateway of tally >Display More Reports> Statement of Account > Statistics > Purchase
Then select the date on which you have passed the entry, open the voucher and make the change you
want and enter the necessary amount .
Payment Voucher ( F5)

Account : Cash / Bank (Under : Bank A/c)
Particular : DHRUV
Amount : which amount you are going to pay
 How to Check the entries,
Gateway of tally >Display More Reports> Statement of Account > Statistics > Purchase
4
ACTUAL AND BILLED QUANTITY

This funcation is used when there are schemes like, Buy 2 and get 1 Free. Here the item purchased or
sold is different and be bill mode for those item are different . Therefore to keep a track of how much
quantity is purchased or sold & for how much quantity the bill is prepared this type of funcation is used.
Gateway of tally F11 Features

 use separate actual and bill quantity columns in invoice – yes
Gateway of tally voucher

1. Purchase Voucher (F9)
Supplier invoice No : 85/84/mar
Party’s A/c Name : RAVI (Under : sundry creditor)
Purchase Ledger : Purchase (Under : purchase a/c)
Name of Item : Quantity Rate Amount

Actual Billed 2,500 25,000
computer 15 10
2. Payment Voucher (F5)

Account : Cash/Bank (Under : bank a/c)
Particular : RAVI
Amount : 25,000
 How to check
Gateway of tally Display More Reports Statement of accounts Statistics
5
DISCOUNT
Discount is an offer are concession which is given by the seller to the buyer for various reasons.
These are two types of discount they are as follows -
1. Trade Discount : The discount which seller gives to the buyer at the time of bulk purchase, is
known as Trade Discount. Trade Discount is never to recorded in the book of accounts .
Therefore, as do not have to record it in tally too.
2. Cash Discount : The discount which seller gives to the buyer only when the buyer makes ihe
payment in cash or makes the payment within the maturity period cash .

 Separate Discount columns on invoice – yes

Party’s A/c Name : ahuja (Under : sundry creditor)
Purchase Ledger : Purchase (Under : purchase a/c )
Name of Item :
Quantity Rate Amount
keyboard 10 2,500 25,000
Cash Discount Received -5 -1,250

(under : indirect income)
Total 23,750

Particular : AHUJA
Amount : 23,750 (Against Ref)
 How to check
Gateway of tally Display More Reports accounts Books Ledger ABC & CO.
6
In the same manner , you can pass the entry for sales transaction .

1. Sales Voucher (F8)
Party’s A/c Name : JETHA (Under : sundry debtors)
Sales Ledger : Sales (Under : Sales a/c )

10 10,000 1,00,000
MOBILE
Cash Discount Allowed -5 -5,000

(under : indirect Expenses)
Total 95,000
2.Receipt Voucher (F6)

Particular : JETHA
 How to check
Gateway of tally Display More Reports accounts Books Ledger XYZ & CO.
7
STOCK JOURNAL
Stock journal is used when you want to transfer as goods from one godown to another .
Gateway of tally > Create > Godwon > Create new.

Godwons
1. Name : Onsite
Under : Primary
Godwons
2. Name : Warehouse
Under : Primary
Gateway of tally > Create > Stock item

Stock item
1. Name : DVD PLAYER

Under : Electronic Parts
Unit : Nos ( formal name : number of system )
Quantity Godown Rate Per Value
10 Onsite 1000 10,000
2. Name : TV
5 Warehouse 10,000 50,000
3. Name : A.C
2 Onsite 50,000 1,00,000
8
Gateway of tally > Vouchers (Alt +F7)
Transfer of material
Source ( consumption) Destination (Production)
Godown Godown
Name of item Quantity Rate Amount Name of item Quantity Rate Amount
Dvd Player Onsite Dvd Player Warehouse

10 1000 10,000 5 1000 5,000
TV Warehouse TV Onsite
5 10,000 50,000 5 10,000 50,000
A.C Onsite A.C Warehouse
2 50,000 1,00,000 2 50,000 1,00,000
 How to chech entries : -

Gateway of tally > Display > Inventory Books > Stock transfer journal register
9
MANUFACTURING JOURNAL
Stock Journal or manufacturing journal can be created directly while creating a sales invoice. This is
very helpful in situation where the manufacturing has not been recorded but the invoice is prepared .
Manufacturing journal is used to pass the entry when you manufacture any product or when
you convert raw material into same finished goods.
Gateway of tally Create Voucher Type

Name : Manufacturing Journal
Type : Stock Journal
Method of voucher numbering : Automatics
Use as a manufacturing journal : yes
Now, suppose we want to manufacturing shirt – 100 Qnty, then We need raw material such as cloth ,
thread , buttons , etc . for manufacturing shirts .
Gateway of tally create Inventory Master Stock Item

Name : Shirt
Under : Stock
Unit : Qnty
Name : Cloth
Under : Raw Materials
Unit : Mtrs
2,000 120 2,40,000
Name : Thread
Unit : Qnty

4,000 2 8,000
10
Name : Buttons
Unit : Nos

10,000 5 50,000
{After Creating All The Stock Item, Alter ‘Shirt’ & Alter Components (Bom) - Yes }
Gateway of tally Alter Stock Item Shirt

F12 Show all configuations– yes
Set components List of bill (Bill of material ) in stock item – yes .
Additional information:-
Set components BOM : -yes
BOM (Bill of material ) List of – Shirt
Components of BOM (Bill of material ) List of – Shirt
Unit of Manufacture : 1
Item Quantity
Cloth 2 Mtrs
Thread 4 Qnty
Buttons 10 NOS
Gateway of tally Voucher (ALT + F7) Manufacturing journal

Name of Product - Shirt
Name of BOM (Bill of material ) – Shirt
Quantity - 100 Qnty
Cost of components
Type of addition cost
Under :- direct expenses

Labour Charges – 5,000
Octroj 3,500
Fright/Chargs 500
Total cost 9,000
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Sales Voucher (F8)

Party’s A/c Name : MEHTA (Under : sundry debtors)
Sales Ledger : Sales (Under : Sales a/c )
Name of Item :
Shirt 50 500 25,000
Receipt Voucher (F6)

Particular : MEHTA
Amount : 25,000(Against Ref)
 How to check
Gateway of Tally Stock Summary Stock Shirt Press Enter Press ‘F7’
(Profit) .
12
ORDER PROCESSING
Order processing is the placing of orders suppelires for purchase to be made from them or receive
orders from customers the purpose of selling. In tally prime , Order processing is linked to inventories.
This allows tracking of the order position for a stock item using for you can track arrival of goods
ordered and also whether the order stock item are delivered on time etc.
You can create purchase and sales order in tally purchase orders can be created printed and
sent to suppliers. Goods recorded are linked with the purchase orders and invoice . Outstanding
purchase order should be monitored. Stock summary display order position of an item. The purchase
order books lists out all purchase order books list out all the purchase order.
Likewise , sales order received are recorded in sales order entry screen . These detail will
be available during delivery note and invoicing.
Purchase Order
 Steps for creating a purchase order
1. Purchase Order - Ctrl + F9
2. Receipt Note - alt + F9
3. Rejection out Note - Ctrl + F5
4. Purchase Voucher – F9
5. Payment Voucher - F5
6. Rejection Out Note - ctrl + F5
7. Debit Note - alt + F5
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Gateway of tally Voucher F10

List of Voucher : Show inactive Voucher PURCHASE ORDER ACTIVE NOW :YES
1. Purchase Order ( ctrl + F9) Order No : 1
Party A/c name : RUDRA (Under : sundry creditor)
Purchase Ledger : Purchase (Under : Purchase a/c)

LCD 10 2,500 25,000
F10 Show inactive Voucher Receipt Note ACTIVE NOW :YES
2. Receipt Note : ( alt + F9)


LCD 10 2,500 25,000
Tracking No : 1 Order No : 1
F10 Show inactive Voucher Rejection Out Note ACTIVE NOW :YES
3. Rejection Out Note (ctrl + F5)

Ledger name : RUDRA (Under : sundry creditor)
Supplier’s name : RUDRA (Under : sundry creditor)
Name of Item Quantity Rate Amoun

LCD 2 2,500 5,000
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F10 Show inactive Voucher Purchase Voucher ACTIVE NOW :YES

Supplier Invoice No : 45/48/May

LCD 8 2,500 20,000
F10 Show inactive Voucher Payment Voucher ACTIVE NOW :YES

Account : ICIC BANK (Under : bank a/c)
Particular : RUDRA (Under : sundry creditor)
Amount : 20,000 (Aginst Ref)
F10 Show inactive Voucher Rejection Out Note ACTIVE NOW :YES
6. Rejection Out Note ( ctrl + F5)

After some time you relize that there is some delect in the good and you want to retrn those
goods back to the supplier, then you on pass the entry in Rejection note.
Ledger name : RUDRA (Under : sundry creditor)

Supplier’s name : RUDRA (Under : sundry creditor)
LCD 3 2,500 7,500
15
F10 Show inactive Voucher Debit Note ACTIVE NOW :YES
7. Debit Note : ( alt + F5)


LCD 3 2,500 7,500
 How to check entry

Gateway of tally Display More Reports Statement of inventory Purchase of
Outstanding All Orders
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SALES ORDER
Sales Order
 Steps for creating a sales order
1.Sales Order - Ctrl + F8
2. Delivery Note - alt + F8
3. Rejection In Note - Ctrl + F6
4. Sales Voucher – F8
5.Receipt Voucher - F6
6. Rejection In Note - ctrl + F6
7. Credit Note - alt + F6
Gateway of tally Voucher F10
List of Voucher : Show inactive Voucher Sales Order ACTIVE NOW :YES
Order No : 1
1. Sales Order ( ctrl + F8)
Party A/c name : KARAN (Under : sundry debtors)
Sales Ledger : Sales (Under : Sales a/c)

SMPS 10 3,000 30,000
F10 : Show inactive Voucher Delivery Note ACTIVE NOW :YES
2. Delivery Note : ( alt + F8)


SMPS 10 3,000 30,000
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F10 : Show inactive Voucher Rejection In Note ACTIVE NOW :YES
3. Rejection In Note (ctrl + F6)

Ledger name : KARAN (Under : sundry debtors )
Supplier’s name : KARAN (Under : sundry debtors)

SMPS 2 3,000 6,000
F10 : Show inactive Voucher Sales Voucher ACTIVE NOW :YES
4. Sales Voucher (F8)

Supplier Invoice No : 45/484/May

SMPS 8 3,000 24,000
F10 : Show inactive Voucher Recipt Voucher ACTIVE NOW :YES
5. Recipt Voucher (F6)

Account : ICIC BANK (Under : bank a/c)
Particular : KARAN (Under : sundry debtors)
Order No : 1
Tracking No : 1
18
F10 : Show inactive Voucher Rejection In Note ACTIVE NOW :YES
6. Rejection In Note ( ctrl + F6)

After some time you relize that there is some delect in the good and you want to retrn those
goods back to the supplier, then you on pass the entry in Rejection note.
Ledger name : KARAN (Under : sundry debtors)

Supplier’s name : KARAN (Under : sundry debtors)
Name of item Rate Amount

smps 3,000 9,000
Order No : 1
Tracking No : 2
F10 : Show inactive Voucher Credit Note ACTIVE NOW :YES
7. Credit Note : ( alt + F6)

Sales Ledger : SALES (Under : Sales a/c)

SMPS 3 3,000 9,000
 How to check entry

Gateway of tally Display More Reports Statement of inventory Sales Order
Outstanding All Orders
19
MULTI CURRENCIES
Multi-Currency entries are mainly done in those companies which deal with the companies which are
located in different countries multi-currency is used in foreign exchange transactions.
Gateway of tally > Create > Currency

Symbols Formal Name Shortcut Keys on Keyborad
$ Dollar Shift + 4
£ Pound Alt + 156
€ Euro Allt + 0128
¥ Yen Alt + 0165
No. of Decimal Place – 0

Decimal Place for printing amount in words – 0
 Import Entries
purchase Voucher (F9)
Party’s A/c Name : KHURANA (Sundary Creditor)
Purchase Ledger : Purchase (Purchase A/C)

Ipod 100 $100 $10,000
Rate in Forex Rate of Exchange Ratein Rs.

$100/Qnty Rs.45/$ Rs.4,500.00/Qnty
Payment Voucher (F5)

Account : Cash/ ICIC BANK (Under : Bank a/c)
Particular : KHURANA
Amount : $10,000 (Aginst Ref)

$100/Qnty Rs.48/$ Rs.4,800.00/Qnty
(Change)
20
Now during purchase rate of exchange was Rs.45/- and during payment it. was Rs.48/- . It means
we have to pay more amount than the amount which was entered during the purchase entry .
So,it means that we suffer a loss.
 To see the loss go to,
Gateway of tally >Display More Reports > Account Books >Ledger >ABC & CO,
Now we have to pass journal adjustment entry in journal voucher
journal voucher (F7)

Entry : Dr. Foreign Exchange loss (Under : provision A/C) 30,000
Cr. KHURANA ( on accounts) 30,000
 To view the entries you have passed , go to

Gateway of tally > Display More Reports > Account Books > Ledger > ABC & CO,
In the same manner, if the rate /$ decrease then
 Gateway of tally > Voucher

purchase Voucher (F9)
Party’s A/c Name : BHATIYA (Sundary Creditor)
Purchase Ledger : Purchase (Purchase A/C)

Ipod 100 $100 $10,000

$100/Qnty Rs.45/$ Rs.4,500.00/Qnty

Particular : BHATIYA

$100/Qnty Rs.43/$ Rs.4,300.00/Qnty
(Change)
21
Now during purchase rate of exchange was Rs.45/- and during payment it. was Rs.43/- . It means
we have to pay less amount than the amount which was entered during the purchase entry .
So,it means that we grain profit.
 To see the profit go to,
Gateway of tally >Display More Reports > Account Books >Ledger >ABC & CO,

Entry : Dr. BHATIYA( on accounts) 20,000
Cr. Foreign Exchange Profit (Under : provision A/C) 20,000

Gateway of tally > Display More Reports > Account Books > Ledger > ABC & CO,
22
 Export Entries
 Sales Voucher (F8)

Party’s A/c Name : ABDUL (Sundary debtors)
Sales Ledger : sales A/C (sales A/C)

Ipod 100 $100 $10,000

$100/Qnty Rs.45/$ Rs.4,500.00/Qnty

Particular : ABDUL

$100/Qnty Rs.48/$ Rs.4,800.00/Qnty
(Change)
Now during sales rate of exchange was Rs.45/- and during receipt it. was Rs.48/- . It means
we have receive pay more amount than the amount which was entered during the sales entry .
So,it means that we grain profit .
 To see the profit go to,
Gateway of tally >Display More Reports > Account Books >Ledger > XYZ & CO,
23

Entry : Dr. ABDUL( on accounts) 30,000
Cr. Foreign Exchange profit (Under : provision A/C) 30,000

Gateway of tally > Display More Reports > Account Books > Ledger > XYZ & CO,
Ipod 100 $100 $10,000
In the same manner, if the rate /$ decrease then
 Gateway of tally > Voucher

Sales Voucher (F8)
Party’s A/c Name : sunil (Sundar debtors)
Sales Ledger : Sales (Sales A/C)

Ipod 100 $100 $10,000

$100/Qnty Rs.45/$ Rs.4,500.00/Qnty

Particular : sunil
Rate in Forex Rate of Exchange Rate in Rs.

$100/Qnty Rs.43/$ Rs.4,300.00/Qnty
(Change)
Now during sales rate of exchange was Rs.45/- and during receive it. was Rs.43/- . It means
we receive pay amount than the amount which was entered during the Sales entry .
So,it means that we suffer loss.
24
 To see the loss go to,
Gateway of tally >Display More Reports > Account Books >Ledger > XYZ & CO,

Entry : Dr. Foreign Exchange loss (Under : provision A/C) 20,000
Cr. SUNIL( on accounts) 20,000

Gateway of tally > Display More Reports > Account Books > Ledger > XYZ & CO,
25
COST CATEGORY AND COST CENTRES

Cost Categories are useful for organisations that require allocation of resource to parallel sets of cost
centres , Such origanisations would usually be project oriented.
Most organisations would not need cost categories. The proper use of cost centres itself would
offer the same benefits . cost categories could increase data entry work and make it more complicated
Hence , before opting for cost categories , evaluate whether you actually need this option always
attempt to first use cost centres.
A cost centre is any unit of an origanisation to which transactions (generally , revenue )

can be allocated. When only costs or expenses are allocated to these unites , they are referred to as cost
centres.
Gateway of tally > F11 > Accounting

Enable cost centres :- yes
Gateway of tally > Create > Show more > Show inactive > Cost Category > create new
Name : Branch
Allocate Revenue Items : yes
Allocate Non - Revenue Items : No
Name : Department
Allocate Revenue Items : yes
Allocate Non - Revenue Items : No
Gateway of tally > Create > Show more > Show inactive > Cost Centres
Category : Branch
 Name : Mumbai (Under : Primary)

 Name : Delhi (Under : Primary)
 Name :Kolkata (Under : Primary)
Category : Department
 Name :Sales (Under : Primary)

 Name :Finance (Under : Primary)
 Name :Markiting (Under : Primary)
26
Gateway of tally > Create > Accounting Masters > Ledger
 Name : Office Expenses

Under : Indirect Expenses
payment Voucher (F5)
1. Account : Cash / Bank ( Under : Bank A/C )

Particular : Office Expenses (Under : Indirect Expenses)
Amount : 5000
Cost Category
Name of Cost Centre Amount

Branch Mumbai 5000
Department Sales 1500

Finance 2000
Marketing 1500
payment Voucher (F5)

Amount : 6000
Cost Category

Branch Delhi 6000

Finance 2000
Marketing 1500
27

Amount : 4000
Cost Category

Branch Kolkata 4000

Finance 1000
Marketing 1500
 To View the expenses :-
Gateway of tally > Display More Reports > Statement of Accounts > Cost centres > Ledger –
Break – Up > Office expenses
28
BUDGET AND CONTROL
A budget is a plan prepared for the flow of funds in an origanisation . it contains financial guidelines for
the future plan of action for a selected period of time .
A budget helps to refind goals and use funds efficiently . it provides accurate information for
evaluation of financial activities , aids in decision making and provides a reference for future planning .
Gateway of tally > Create >Accounting Master > Ledger

Name : Advertising Expense
Name : ICIC Bank

Under : Bank A/C
Gateway of tally > Create > Show More > Show Inactive > Budget
Name : Expense Budget

Under : Primary
Period Budget Set / Alter Budget of

From: To: Ledger
Group
1-4-2022 31-3-2023 No Yes
Account Name : Advertising Expense

Type of Budget : On closing Balance
Amount : 30,000 ( Budget for only year)
Explain for budget amount :-

For the calculation of, budget per month
Ctrl + N > 30,000 / 12 (MONTH ) =Rs. 2500/-per month
29
Gateway of tally > Voucher > Payment Voucher

Note : Change the date for every entry
Account : ICIC Bank
Particular : Advertising Expenses
Amount : whatever would be the expense for every month.
 How to check
Gateway of tally > Profit & loss A/C > indirect Expense > Adversting Expense > F10 > Select the
budget name > press enter
30
CHEQUE PRINTING
Gateway of tally > Create > Ledger

Name : State bank
Under : Bank a/c
Bank Accounts Details :-
A/c holder’s name : Banking
A/c No. : 778521496325
IFC Code : SBIN001245
swift Code : SBINBXXXX
Bank configurations :-
Enable cheque printing : yes
Set/alter cheque printing configurations : yes
Than press “Alt + B” > sample format > then press “ Ctrl + A “
For select cheque printing configuratiions > then press “ Esc “ key
Accounts : 5,00,000
Name : ABC @
Under : Sundary creditor
Gateway of tally > Voucher > Payment Voucher

Accounts : State bank
Particular : ABC @
Amount : 2,00,000
31
How To Check Reports :-

Gateway of tally > Banking > Cheque printing > [Alt + P ]
Current > Print
Print cheque : yes
show cheque before details printing : yes
“ Then press preview “
32
PRICE LIST
Price list are useful for orders and invoice an up-to –data price list helps in decision –making even ata
the lower levels of the organisation and quickens the sales process. Tally prime assists in creating
quantity based pricing with complex –discount structure . Price list are avilable only for inventory item
and hence the feature is avilable only if inventory and invoice are activated for the company .
You can have one or more list . You requir more than one price list, when you have different
price structures/levels for different purpose. Usually , different groups of customers requiring different
discount or dealing in different products .

 Enable multiple price levels – yes
Gateway of tally Create Inventory Master Price levels
Company Price levels
1. Wholesale
2. Retail
Gateway of tally Create Inventory Master Stock item

Name : Digital Camera
Unit : Pcs (Formal name – Pieces)
Gateway of tally Create Inventory Master Price List (stock group) All item
Electronic Parts .
Stock Group Name : Electronic Parts
Price Level : Retail
Application From : 1-4-2022
Name of item : From To Rate
Digital Camera 2 16,000
2 4 14,850
4 6 14,700
6 10 14,500
10 Above 13,300
33
Gateway of tally Create Inventory Master Price List (stock group) All item Electronic
Parts .
Stock Group Name : Electronic Parts
Price Level : Wholesale
Application From : 1-4-2022
Name of item : From To Rate
Digital Camera 100 20,000
100 150 18,850
150 200 17,700
200 250 16,500
250 Above 15,000

Now , you have to pass the retail sales entry in the sales Voucher
Sales Voucher (F8)

Party’s A/c Name : shah and sons (Under : sundry debtors)
Price Level : Retail
Purchase Ledger : Sales (Under : Sales a/c )

3 14,850 44,550
Digital Camera
Note : The rate & amount should come automatically according to the price lists given .

Particular : shah and sons (Under : sundry debtors)
In the same manner , you have to pass the Wholesale entry in the sale Voucher .
34
Sales Voucher (F8)

Party’s A/c Name : SHANI (Under : sundry debtors)
Price Level : Wholesale
Purchase Ledger : Sales (Under : Sales a/c )

125 18,850 23,56,250
Digital Camera
Note : The rate & amount should come automatically according to the price lists given .

Particular : SHANI
Amount : 23,56,250 (Aginst Ref)
In the same manner , you have to pass the Wholesale entry in the sale Voucher .
How to check
Gateway of tally Display More Reports Statement of accounts Statistics .
35
TAX DEDUCATED AT SOURCE (TDS)
Tax Deducted at source (TDS) is one of the modes of collecting income tax . The buyer (Deductor)
deducts the tax from the payment made to the seller (Deductee) and remits the tax to the income Tax
Department within the stipulated time .
The buyer ( Corporate and Non- Corporate) make payment ( Such as salary, Rent , Interest on
securities , Dividends , Insurance Commission ,Professional Fess , Commission on Brokerage ,
Commission on Lottery Tickets, ets.)to the seller (Services ) and deduct the requisite amount from such
payment toward tax .
The buyer files the TDS returns containing details of the seller and the bank , where the TDS
amount is deposited to the Income Tax Department .
A seller (Deductor) provied services to the buyer (Deductor) . The buyer deducts the
amount towards TDS prior to the serices or the bills recived . The buyer issued from NO.16A to the
Deductor and deposite the deducted amount to the Authorised Bank (Treasury) . The buyer files annual
returns electronically to the Income Tax Department .
The buyer (Deductor) has to furnish the TDS returns in electronic from and Form 27 A in
physical from along with e-TDS return CD/Hoppy .
36
FLOW – CHART OF PROCEDURE FOR TDS
Seller (Deducted)
Bils /
Services
Form 16 A
Buyer (Deducted)
Files
Quarteriy
Buyer deducts TDS
Deposite in the
Returns
Authorised
Electronically
Bank Bank
In form 27 A
Income Tax Department
37
Gateway of tally > F11 > Taxation
 Enable tax Deducted at source (TDS ) – YES

Company TDS deductor details
-Tan registration number : 012345
-Deductor type : company
-Set/Alter details for personal responsible : No
Rate & Exemption Details
-Ignore IT Exemption limit for TDS deduction : No

-Active TDS for stock item : No
Gateway of tally > Create > Accounting Master > Ledger

1. Name : ICIC Bank
Under : Bank Account
2. Name : Professional Fess

Statutory Details
IS a TDS Applicable : Applicable
Nature of payment : Fess for Professional or Technical Services (create)
3. Name : Bhavik Enterprises

Under : Sundry Creditors
Statutory Details
IS a TDS Deductable: yes
Deductee type : Company Resident
Deduct TDS in same voucher : yes
4. Name : TDS on Professional Fess

Under : Duties & Taxes
Type of duty/tax : TDS
Nature of payment : Fess for Professional or Technical Services (create)
38
Gateway of tally >Voucher
Journal Voucher (F7)

Dr. Professional Fess 3,50,000
Cr. Bhavik Enterprises 2,80,000
Cr. TDS on Professional Fess 70,000

Account : ICIC Bank
Particular : Bhavik Enterprises
Amount : 2,80,000

Account : ICIC Bank
Particular : TDS on Professional Fess
Amount : 70,000
To view the TDS Entries:-

Gateway of tally > Display More Reports > TDS Reports > challan reconciliatio
39
TAX COLLECTED AT SOURCE (TCS)

TCS is the tax collected at source by the seller (collector) from the buyer/lesser (collected /payee) The
goods are as specified under section 206C of the Income Tax Act, 1961.
If the purchase value of goods is X, the amount payable by the buyer is X+Y ,where Y is the value
of tax at source . The seller deposits Y(tax collected at source) at any designated branch authories to
receive the payment .
The seller, lessor or licensor is responsible for the collection of tax from the buyer ,lessee or
licensee, The tax is collected for sale of goods on transaction, receipt of amount from the buyer in cash
or issue of cheque, draft or nay other mode whichever is earlier.
Goods and transaction classified under TCS are listed below :
 Alcoholic liquor for human consumption including Indian made foreign Liquor (IMFL)
 Tendu leaves
 Timber obtained under a forest lease
 Timber obtained by any mode other then under a forest lease
 Any other forest produce not being Timber or Tendu
 Scrap (Scrapmeans waste and Scrap from the manufacture or mechanical working of material
which is usable as such because of breakage , cutting up, wear and tear and other reasons)
 Licensing lasting of Parking Lot , Toll Plaza
 Mining and quarring
The certificate of collection of tax at source has to be submitted in Form No - 27D by

persons collecting tax at source within a week from the last day of the month in which the tax
was collected.
If there is more than one certificate to be issued to a buyer for tax collected at source with
respect to the period ending September 30 and March 31 in the finical year, then the person
collecting the tax on request from the buyer can issued a consolidated certificate within one
month from the end of such period .
If an issued TCS certificate is lost, the person collecting tax at source may issue a duplicate
certificate on plain paper, with necessary details as contained in Form – 27D .
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The Assessing Officer (AO), before giving credit for the tax collected at source on the basis
of the duplicate certificate, bas to get the payment certified and obtain an indemnity Band from
the assesse.
The tax collected is to be paid to the central Government within one weak of the last day of the
month in which the tax was collected. This payment is made in any branch of Reserve Bank Of India
(RBI), State Bank Of India ( SBI), or any other authorised bank. The payment is made accompained by
Income Tax Challan 281. If the tax is collected on behalf of the Government, then the amount can be
paid without the income tax challan.
TCS returns are to be filed quarterly, in addition to annual returns.
 The quarterly returns are to be filed in Form Number 27EQ on or before July 15 October 15 and
January 15 , respectively for the first three quarters of the finicial year for the last quarter, the
returns are to be filed on or before April30.
 Annual returns are to be filed in Form Number 27E on or before June 30 of the following
financial year.
 Enable Tax Collected at source (TCS ) – YES

Company TCS deductor details
-Tan registration number : 012345
-Deductor type : company
-Set/Alter details for personal responsible : No
Rate & Exemption Details
-Ignore IT Exemption limit for TCS deduction : No
Gateway of tally > Create > Accounting Master >Ledger

1. Name : ICIC Bank
2. Name : Sales A/c

Under : Sales Account
Statutory Details
IS a TCS Applicable : Applicable
Nature of payment : Timber Obtained Under Forest Leases (create)
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3.Name : Sharme &Co,

Under : Sundry Debtors
Statutory Details
IS a TCS Applicable : yes
Buyer/Lessee type : Company Residency
4. Name :TCS (tax collected at source)

Under : Duties &taxes
Type of duty/tax : Other
Percentage of Calculation : 2.50%
Method of calculation : On Total Sales
Sales Voucher (F8)

Party A/c Name : Sharme &Co,
Sales Ledger : Sales Account
Timber 500 1,000 5,00,000
TCS 2.50% 12,500

Account :ICIC Bank
Particular : Sharma &Co,
Amount : 5,12,500 (Against Ref )

Account :ICICI Bank
Particular : TCS
Amount : 12,500 (Against Ref )
To view the TCS Entries:-

Gateway of tally > Display More Reports > TCS Reports
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VALUE ADDED TAX (VAT)

VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. it is the tax
paid by the producers, manufacturers, retailers or any other dealer who add value to the goods and that
is ultimately passed on to the consumer. VAT has been introduced in India to ensure a fair and uniform
system of taxation. It is an efficient , transparent, revenue-neutral,globally acceptable and easy to
administer taxation system. it benefits the common man (consumer),businessman and the government.
VAT makes the tax structure simple ,hassle-free and export-oriented .The integration of VAT
with Tally will help you in the smooth functioning of youe business and eliminate the complications that
might otherwise arise in VAT.
The essence of VAT in providing set-off for input tax and this is applied through the concept of
input credit/rebate. This input credit in relation to any period means setting off the amount of input tax
by a registered dealer against the amount of his output tax. Value Added Tax (VAT) is based on the value
addition to the goods, and related VAT liability of the dealer is calculated by deducting the input credit
from the tax collected on sales during the payment period.
VAT works in two different ways :-
1. If VAT registered business receives more output tax then the taxes paid as input, they will need
to pay the difference to the Commissioner Of Taxes (State) .
2. If the input tax paid is more then the output tax collected,
 You can carry forward the Input credit and aj dust it a against the output tax in the subsequent
months.
 You can have the Input Credit refunded to you by the Government at the end of the current or
following year.
 You can receive refunds for Input Credit on exports within a period of three months.
Term Description
Input tax This is a tax paid on Purchases.
Output tax This is a tax charged on Sales.
Input This amount of Input tax that is permitted to be Set off against Output tax.
Credit
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 As VAT is a multi-point tax with set-off for tax paid on purchases, it prevents repeated taxation
of the same product.
 Simple and Transparent: In the Sales tax system the amount of tax levied on the goods at all
stages is not known. However, in VAT. the amount of tax would be known at each and every
stage of goods sale or purchase.
 VAT has the flexibility to generate large and buoyant revenues, as it levies tax on value
additions.
 Zero rating of tax on exports is possible in case of VAT.
 Fair and Equitable: VAT introduces uniform tax rates across the state so that unfair advantage
cannot be taken while levying the tax.
 Procedure of simplification: Procedures related to filing of returns payment of tax, furnishing
declaration and assessment are simplified under the VAT system so as to minimize any interface
between the tax payer and the tax collector.
 Ability to provide same revenue to the Government with lower rates of tax.
 Tax does not become a cost of doing business.
According to the white paper, there are 550 categories of goods under the VAT system. They are
classified into the following four groups, depending on the VAT rate:
VAT @ 4%
The largest number of goods (270) comprising of basic necessity items such as drugs and
medicines , agricultural and industrial inputs ,capital goods and declared goods are under 4% VAT rate.
Exempted From VAT
There are about 46 commodities under the exempted category. This includes a maximum of 10
commodities that each state would be allowed to select, from a broader approved list for VAT
exemption, The exempted commodities include natural and unprocessed products in unorganized sector
as well as item, which are legally barred from taxation.
VAT @ 1%
This is a specific category of goods like gold, silver etc.
VAT @ 12.5%
The remaining commodities are under the general VAT rate of 12.5%
Value Added Tax (VAT) is an indirect tax of goods ,introduced in lieu of sales tax, to ensure
transparency and greater compliance. The basic premise of VAT is to tax the “true value” added to the
goods , at each stage of the transaction chain This ultimately reduces.
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1. Tax paid to the government.

2. Cost/tax passed onto the consumer.
VAT is a multi-point tax as against sales tax, which is a single-point tax. VAT removes the
cascading effect of tax on tax, by allowing a set off for input tax, i.e, tax paid at eariler stage on
purchases. It is an efficient, globally acceptable and easy to administer taxation system.
In order to relieve some small business of the need to keep detailed records: the law has made
provision for a simple method of accounting for VAT. The method of calculating. VAT payable is also
made easier such a method is called a VAT Composition Returns.
The VAT Composition Returns states that “Small dealers with an annual gross turnover not
exceeding 5 to 50 lakhs and subject to respective state and rules, who are otherwise liable to pay
VAT ,shall however have the option for a composition scheme with payment of tax at a small
percentage of gross turnover. The dealer opting for this composition scheme will not be entitled to
input tax credit.”
This scheme is a special method of determining the tax liability for specified dealers whose
turnover in the year before April 1,2005 or in the current year exceeds Rs.5 lakhs but does not
exceed Rs. 50 lakhs and subject to respective state act and rules.
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 Enable Value Added TAX (VAT ) – YES

VAT details
-State : Gujarat
-Tin : 012
-VAT Registration Date : 1-4-2022
-Set/ alter tax/rate details : yes
Tax rate details
-Tax Rate : 4%
-Additional Tax : 4%
- Tax Type : Taxable
 Name : ABC & CO,

Set alter VAT details : yes
VAT details
- Type of delar : Regular

- VAT Tin No : 012
- VAT Registration Date : 1-4-2022
 Name : XYZ & CO,

VAT details
- Type of delar : Regular
- VAT Tin No : 012
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 Name : Purchase @ 4%
Under : Purchase Accounts
Statutory details
- Is VAT/CST Application : Application
-Set alter VAT details : yes
Tax /Rate Details
Transaction Info :-
Nature of Transaction : Purchase Taxable
VAT rate
-Tax Rate : 4%
-Addition Tax : 4%
-Tax Type : Taxble
 Name : Sales @ 4%
Under : Sales Accounts
Statutory details
Is VAT/CST Application : Application
Tax /Rate Details
Transaction Info :-
-Nature of Transaction : Sales Taxable
VAT rate
-Tax Rate : 4%
-Addition Tax : 4%
-Tax Type : Taxble
 Name : Input VAT @ 4%

Type of Duty Tax : VAT
Percentage of calulation : 4%
 Name : Output VAT @ 4%

Type of Duty Tax : VAT
Percentage of calulation : 4%
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 Name : VAT Payable

Under : Current Liabilities
 Name : ICIC Bank

 Name : Axis Bank
Gateway of tally >Voucher

Party’s A/c Name : ABC & CO,
Purchase Accounts : Purchase @ 4%
Name of item Quantity Rate Amount

Tea 100Kg 200 20,000
Input VAT @ 4% 4% 800

Accounts : ICIC Bank
Particular : ABC & CO,
Amount : 20,800 (Agnist Ref)
Sales Voucher (F8)

Party’s A/c Name : XYZ & CO,
Sales Accounts : Sales @ 4%

Tea 100Kg 250 25,000
output VAT @ 4% 4% 1,000
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Particular : XYZ & CO,
Amount : 26,000 (Agnist Ref)
 How To View VAT Payable

Gateway of tally > Display More Reports > Statutory Reports >VAT Reports > Enter

Journal Voucher (F7)
Dr. Output Vat @ 4% 1,000

Cr. Input Vat @ 4% 800
Cr. VAT Payable 200

Particular : VAT Payable
Amount : 200 (Against Ref)
 Now to view the reports:-

Gateway of tally > Display More Reports > Statutory Reports >VAT Reports
And Then check the entries.
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SERVICE TAX
Service tax is an indirect tax levied on certain category of services provided by a person,
firm,agency,etc. The Government of India has marked a set of services as taxable under the service
structure. The seller provides a service and the responsibility of paying the service tax to the
government rests with the seller.
A person/firm providing a service that comes under the service tax category has to pay service
tax. Service tax is to be shown separately in the invoice and is payable based on the payment realized
and not on the total amount shown in the invoice. Similarly, when you buy a service that fails under
service tax category. You avail service tax credit based on the payment made. So, you pay service tax on
the service that you sell and get credit on the service tax payable when you buy a service.
Enable Service Tax – YES

Service Tax details
-Service Tax registration number : 12345
- Type of Organisation : Registered Private Ltd Company
- Set/alter Service tax details : NO

1. Name : Pluse Point Pvt Ltd.
Under : Sundry Creditor
Set alter service tax details : yes
service tax details
service tax registation number :12345
Type of service : Taxable
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2. Name : K P Shah. Pvt Ltd.

service tax details
service tax registation number :12345
Type of service : Taxable
3. Name : CA Service
Statutory Details :
Is service tax applicable: Application
-Service tax details
Name : CA Service
-Rate Details
Service Tax : 12%
4. Name : Coaching Given

Statutory Details :
Is service tax applicable : Application
-Service tax details
Name : Coaching given Service
- Rate Details
Service Tax : 12%
5. Name : Input Service Tax

Under : Duties &Taxes
Type of Duty Taxes : Service Tax
Tax head :service tax
6. Name : Output Service Tax

Under : Duties &Taxes
Type of Duty Taxes : Service Tax
Tax head :service tax
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7. Name : ICIC Bank

Under : Bank A/C
8. Name : HDFC Bank

Under : Bank A/C
Press ‘F12’ For Configuration :-Select Common ledger A/c for item Allocation – NO
Change Mode (CTRL+H) : Accounting Invoice
Sales Voucher (F8)

Party’s A/c Name : K P SHAH. PVT LTD.
Particular Amount
Coaching Given 1,00,000
Output Service Tax 12000

Particular : K P SHAH. PVT LTD.
Amount : 1,12,000 (Against Ref)

Party’s A/c Name : Pluse Point Pvt Ltd.
Particular Amount
CA Service 50,000
Input Service Tax 6,000

Accounts : HDFC Bank
Particular : Pluse Point Pvt Lt
 Now to view the service Tax Payable,

Gateway of tally > Display more reports > service tax reports (for check out)
52
EXCISE DUTY
A manufacturer of excisable goods can avail MODVAT (now CENVAT)credit of duty paid on the
goods purchase from any dealer e.f. 04.07.94. The dealer intending to issue modvatable (now
Cenvatable) invoice should get themselves registered with the jurisdictional Range Superintendent by
following the procedure prescribed in Rule 9 of Central Excise(NO.2) Rules,2001. All THE Godown/Store
–rooms should be registered separately.
A Central Excise Registered dealer should ensure that the prescribed register is maintained for
the godwon/store-room. All the consignments received/issued from the godown have to be entered in
the register(futher details in Central Excise Rules and Manual).
The Dealer shall issue the invoice in quadruplicate. The copies of the invoice issued by a first
stage dealer and a second stage dealer and a second stage dealer shall be marked at the top as “FIRST
STAGE DEALER”and“SECOND STAGE DEALER”respectively. The invoice issued by a first stage or second
stage dealer in the cash of imported goods and by a second stage dealer in the cash of other goods ,shall
be duly authenticated by the officer.
First Stage Dealer
A First Stage Dealer is one who purchasees goods directly from any of following:
 The manufacturing under the cover of any invoice issued in terms of the provision of Central
Excise Rules,2002 or from the depot of the said manufacturing .
 Goods purchased from the premises of the consignment against of the said manufacturing.
 Goods purchased from any other premises from where the goods are sold by or on behalf
of the said manufacturing.
 Goods purchased from an import or from the depot of an import.
 Goods purchased from the premises of the consignment against of the importer.
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Second Stage Dealer
A registered dealer who purchases goods from the First Stage dealer is called a Second Stage Dealer.
Type of duty Method of Formula for Calculation

Calculation
Basic Excise Duty On Assessable Assessable Value
Value
Special Excise Duty On Assessable Assessable Value
Value
Additional Duty of Excise (Goods On Assessable Assessable Value
of special Importance ) Value
AED(GST)
Additional Duty of Excise (Textile
and Textile Articles ) On Duty Value BED+SED
AED(TTA)
Additional Duty of Excise (Tea
and Tea Waste ) On Duty Value BED+SED
AED(TTW)
National Calamity
Contingent Duty On Duty Value BED+SED+ AED(GST)
(NCCD)
Countervailing On Assessable Assessable Value OR
Duty(CVD) ON Value Assessable Value+ BED
Import)
Education Cess BED+SED+ AED(GST)+
On Duty Value AED(TTA)+ AED(TTW)+
NCCD+ADE+SAD
Secondary BED+SED+ AED(GST)+
Education Cess On Duty Value AED(TTA)+ AED(TTW)+
(SED) NCCD+ADE+SAD
Education Cess
CVD On Duty Value CVD Value
Special Additional BED+SED+ AED(GST)+
Excise Duty(SAD) On Duty Value AED(TTA)+ AED(TTW)+
NCCD+ADE
Additional Duty of
Excise(ADE) On Duty Value BED+SED
54
Every registered dealer is required to maintain a Daily Stock Register Of records of receipt of duty-paid
goods and issue thereof and submit quarterly return in the form - 2
Gateway of tally > F11 > Taxation >

Enable Excise : yes
Excise Details
- Unit Name : Excise
- Address : Address
- State : Gujarat
- Pin code : 394107
- Telephone Number : 7894561258
- Registration Type : Dealer
- ECC Number : 123456
Enable Value Added Tax : yes

- State : Gujarat
- TIN : 123456789
- Inter state sales tax number : 987654321
- Set/alter tax/rate details : yes
Tax /rate details
- VAT rate : 4%
- Additional tax : 4%
- Tax type : taxable
Gateway of Tally > Create > Accounting Master > Voucher Type
1. Name : Excise Purchase
Type of Voucher : Purchase
Method of Voucher Numbering : Automatic
Use common Narration : Yes
Set default tax unit : Excise
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2. Name : Excise Sales

Type of Voucher : Sales
Method of Voucher Numbering : Automatic
Use common Narration : Yes
Set default tax unit : Excise
 Name : Ahuja & co,

Tax Registration Details
Set alter Excise details : yes
Default nature of purchase : Manufacture
Registration Info:-
ECC Number : 123456
Range : M.G. Road
Division : Bangalore I
Commissionerate : Bangalore
Tax Registation Details
VAT details
-Type of dealer :Regular
-VAT TIN No :123456789
-VAT Reg date : 1.4.2022
 Name : Purchase (Excise Goods)

Under : Purchase A/c
Is VAT / CST applicable : applicable
Nature of Transaction : Purchase Taxable
VAT rate
- TAX rate : 4%
Is Excise / CST applicable : applicable
56
 Name : Input VAT @ 4%

Type of duty/Tax : VAT
Percentage of calculation : 4%
 Name : Output VAT @ 4%

Type of duty/Tax : VAT
Percentage of calculation : 4%
 Name : Delta & co,

Set alter Excise details : yes
Default nature of purchase : Second stage dealer
Registration Info:-
ECC Number : 123456
Range : S.V. Road
Division : Kolkata IV
Commissionerate : Kolkata
VAT details
-Type of dealer :Regular
-VAT TIN No :123456789
-VAT Reg. date : 1.4.2022
 Name : Sales (Excise Goods)

Under : Sales A/c
Nature of Transaction : Sales Taxable
VAT rate
- TAX rate : 4%
57
Gateway of tally > Create > Inventory Master > Stock Item
Name : Hot Rolled Colls
Under : Stock
Unit : Mt (Metric Tonnes)
Set/alt excise details : yes
Excise Tariff name : Excise
HSN code : 72271000
Reporting Unit Measure : MT (metric Tonnes)
Valuation Type Ad Valorem
Rate : 4%

VAT rate
- TAX rate : 4%
Gateway of tally > Accounting Voucher
 Purchase Voucher (F9)

Voucher Type : Excise Purchase
Supplier invoice No. : 1
Party’s A/C Name : Ahuja & co,
Nature of Purchase : Purchase (Excise Goods)
Hot Rolled Coils 500 800 4,00,000
Input VAT @ 4% 4% 16,000
4,16,000
58
 Payment Voucher (F5)

Particular : Ahuja & co,
Amount : 4,16,000
 Sales Voucher (F8)

Voucher Type : Excise Sales
Supplier invoice No. : 1
Party’s A/C Name : Delta & co,
Nayure of Purchase : Sales (Excise Goods)
Hot Rolled Coils 300 1,000 3,00,000
Output VAT @ 4% 4% 12,000
3,12,000
 Reeipt Voucher (F6)

Accounts : HSBC Bank
Particular : Delta & co,
Amount : 3,12,000
 To view the excise Details go to,

Gateway of tally > Display more Reports > Check Excise reports
59
COMPANY LENDS LOAN TO SOME OTHER PARTY
Interest Calculations :-
Interest is a legitimate return on money invested and chargeable in the business world on
loans and also on delayed payments. Interest can be calculated on the basis of Simple or
Compound Interest.
F11 > Company Features >Show More Features > Yes Show all features : Yes
Accounting > Activate interest calculation (Yes)
Gateway of tally >Create > Accounting Master > Ledger

1.Name : Sonic Pvt Ltd
Under : Loans & Advances (Asset)
Maintain bill by bill : Yes
Active Interest calculation : Yes
Interest Parameters
Calculate Interest Transaction – by – Transaction : NO
Include Transaction date for interest calculation : NO
For amount added : NO
For amount added : NO
Rate : 3% per : Calendar Year on : Debit balance Only Applicability
2.Name : Global Bank

Under : Bank A/C
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3. Name : ICIC Bank

Under :Bank A/C
4. Name : Interest Receivable

Under : Current Assets
5. Name : Interest Received

Under : Indirect Income
Gateway of tally >Alter > Voucher Type

Name : Debit Note
Select type of Voucher : Debit Note
Abbreviation : D/Note
Active this voucher : YES
Allow narration in voucher : yes
Printing voucher after saving : NO
Name of class
Simple interest
Use class for interest Accounting : YES
Amount to be treated as compound interest : YES
Gateway of tally >Voucher > Payment (F5)
Payment voucher (F5)

Date : 1-4-2022
Account : Global Bank
Particular : Sonic Pvt Ltd
Amount : 2,00,000
61
Gateway of tally >Voucher > (F10) > Accounting Voucher > Debit Note (Alt+F5)
Debit Note (Alt+F5)
Class : Simple Interest

Date : 31-3-2023
Dr. : Sonic Pvt Ltd 71, 806.45

Cr. : Interest Receivable 71, 806.45
(Here amount should come automatically )
Receipt voucher (F6)

Date : 31-3-2023
Account : ICIC Bank
Particular : Interest Received
Amount : 71, 806.45
Journal voucher (F7) (Settlement Entry)

Date : 31-3-2023
Dr. : Interest Receivable 71, 806.45
Cr . : Sonic Pvt Ltd 71, 806.45
Receipt voucher (F6)

(Receipt of principle
amount) Date : 31-3-2023
Account : ICIC Bank
Particular : Sonic Pvt Ltd
Amount : 2,00,000
 To view the entries

Gateway of tally > Display more reports > Statement of accounts > Statistics
62
BANK RECONCILIATION STATEMENT (BRS)

This is an important feature in tally prime , which is very useful .The passbook holder keeps a
contra record , issued by the bank to the cheque book holder for all the payment and receipt
transactions that have to tally at the year ending . Reconciling the company bank accounts with the
banker’s statement is a regular task of accounting . This is of crucial importance in auditing . The bank
reconciliation is one of the pre-requisites of auditing and verification of the correctiness of accounts at
the year end .

1. Name : Indian Overseas Bank
Under : Bank A/c
Opening Balance : 5,00,000
(With a minimum of some balance)
2.Name : Salary
3. Name : Advertising Expenses
4. Name : M/S Ultra Ltd.

1. Date : 1-4-2022
Account : Indian Overseas Bank
Particular : Salary
Amount : 50,000
2. Date : 2-4-2022
Particular : Advertising Expenses
Amount : 1,00,000
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3. Date : 31-4-2022
Particular : M/S Ultra Ltd.
Amount : 30,000
Now To Reconcile the entries;
Gateway of tally > Display > Account Books > Cash / Bank Book(s) > Select the bank Name > Press ‘Enter ‘
Press (Alt + R)
Select the month in which entries are passed and press ‘Enter’again . And Then Press (Alt + R)
for reconciling the entries. Then entries . Then enter the date on which the cheque is been cleared .After
entering all the dates, Press’ Enter ‘again .
If the cheque are cleared in the same month , then it will not show any different , in our
company book’s balance and bank statement’s balance .
But if some cheque which are issued in this month get cleared in
next month or some other month then there will be different in our company book’s balance and bank
statement’s balance . It will be shown below in the bank reconciliation statement .
64
LOGO CHANGE IN INVOICE

First we get prepared for { create company }
Gateway of tally > Create> Accounting Master > Ledger

Name – Arun Pawar
Under- Sundary Debtors
Name – Sales Accounts

Under – Sales A/c
Name – ICIC Bank

Under – Bank A/c
(Logo Create Option)
Gateway of tally > print > Configuration

Company Details :-
Include Company logo – yes
Image Parth – D:/Velocis tutorial/5 footage /2 ms word
Image File Name – Logo. Jpg
Gateway of tally > Voucher > Sales Voucher
Sales Voucher ( F8)

Party’s A/c Name - Arun Pawar
Sales Ledger - Sales A/c
Name of item Quantity Rate Total
T.V 10 50,000 5,00,000

Accounts - ICIC Bank
Particular - Arun Pawar
Amount – 5,00,000
How to check Reports :-

Display More reports > Daybooks > print (Alt + P ) > Preview ( I )
65
POINT OF SALES (POS)

Point of sales is considered a one – step billing process. This means that entering the order and
generating the invoice and receipt of amount are considered to be part of the same step . This is
normally used in an envoirment where the custmer is making the purchase in person and the invoicing
process is parts of the checkout process.
Gateway of tally > F11 Features >Show more feature > show all features > Taxation
Enable Value Added TAX (VAT) - YES
State : Gujarat
TIN : Regular
Vat registration date : 1-4-2022
Inter sales tax number : 987654321
Set /alter tax / rate details : yes
Tax /rate details
VAT RATE
Tax rate : 4%
Additional tax : 2%
Tax Type : Taxable
Define VAT commodity and tax details as master : yes
 Name : Timex Gift Voucher

Set/ Alter VAT Details : YES
VAT Details
Type of Dealer : Regular
VAT TIN NO. 987654321
VAT Reg. Date :1-4-2022
66
 Hdfc Visa Card (Under : Bank Account)

 ICIC Bank (Under : Bank Account)
 Sales Exempt
Under : Sales A/c
Statutory Details
IS VAT / CST applicable : Applicable
Set/ Alter VAT Details : YES
Tax /rate details
Transaction Info
Nature of Transaction : sales taxable
VAT RATE
Tax rate : 4%
Additional tax : 2%
Tax Type : Taxable
 Name : Output VAT @ 4%
Under : Duties taxes
Type of Duty/tax : Others
Percentage of calcultion : 4%
Method of calculation : On total sales
Rounding Method : Not Applicable
Statutory Details
Include in assessable value calculation for : VAT
Method of calculation : Based on value
67
Gateway of tally > Create > Accounting Master >Voucher type
Name : Point of Sales

Type of Voucher : Sales
Abbreviation : Sales
Active this voucher type : Yes
Printing
Print Voucher after saving : Yes
Use for POS Invoicing : yes
Print Message (1) : Thank you !!!
Print Message (2) : Do visit us again !!!
Default title to Print : Spencer’s Super Market
Set/alter declaration : YES (Sunday Close)
Name of Class
Class : POS
Enable Ledger Name
Gift Voucher yes Timex Gift Voucher
Credit / Debit Card Payment yes Hdfc Visa Card
Cheque /DD yes ICIC Bank
Cash yes Cash
Default Accounting allocations for all item in invoice (except for the item specified below)
Ledger Set/Alter Percentage Override using
Tax Class ? Item Default
Sales-Exempt Sales-Exempt 100% yes
Additional Accunting Entries

Ledger Type of Calculation Value Rounding Remove
Basic Method If zero ?
Output VAT VAT 4% Not application yes

@ 4% (On total sales)
68
Gateway of tally > Voucher> Press ‘F8’
VOUCHER TYPE
Name :Point of Sales

Party A/C Name : Timex Gift Voucher
Vat /Tax Class : Sales @ 4%
Tea 10 200 2,000
Refind Oil 12 100 1,200
Pencils 20 40 800
Note books 30 50 1,500
5,500
Output vat @ 4% 4% 220
Total Amount 5,720
Gift Voucher : Timex 1,000

Credit Card : Hdfc 2,000 Card Number : 1234567890123456
Cheque : ICIC 2,000 Bank Name : ICIC ch. No. : 123456
Cash : Cash 720 Cash Tendered : 1,000 Balance : 280
 First Accept the voucher and then press “Enter “

You will be able to see the bill .
69
PAYROLL
Tally prime payroll is integrated with accounts to give the user the benefit of simplified payroll
processing and accounting .
Tally prime payroll enables users to set up and implement salary structure ranging from simple
to complex as per the company requirement. You can also align the payroll process and directly
integrate them with the mainstream accounting applications payroll data can be viwed as part of the
excisting and configurate cost centre reports for business analysis.
Tally prime also supports configurable formats for payslip printing flexible salary/wage ,
attendance , leave and overtime registers gratuity and expat reports.
Gateway of tally > F11 Features

 Maintain payroll – yes
Enable Payroll statutory – no
Gateway of tally > Create > Show More > Show inactive > Payroll master > Pay Head
1. Name : Basic Salary

Pay Head Type : Earning For Employee
Income Type : Fixed
Affect Net Salary : Yes
Calculation Type : On attendance
(Example For write present)
Attendence/ Leave with pay : Present (Under – Primary) (create by ‘Alt +C ‘ )
Calculatioon Period : Month
Basic of calculation : As per calendar Period
Rounding Mathod : Normal Rounding
2. Name : Professional tax

Pay head type : Employees Statutory Deducation
Under : Current Liabilities
Affect net Salary : yes
Name to be displayed in playslip : Professional tax
Calculation Type : As Computer value
Calculation Type : Months
Rounding Method : Not Applicable
70
Computer Information
Computer : On Current Earnings Total
Effective Amount Amount Up Slab Type Value

From Greater Than To Basic
1-4-2022 0 10,000 Percentage 1%
10,000 25,000 Percentage 2%
25,000 above Percentage 5%
Gateway of tally > Creat > Show More > Show inactive > Payroll master > Employee Group
Employee Group
1. Name : Manager
Under : Primary
2. Name :Executive
Under : Primary
Gateway of tally > Creat > Show More > Show inactive > Payroll master > Employee
Employee
Name : Rohan Sharma
Under : Manager
Date of Joining : 1-4-2022
Define salary Details : yes
Salary Details
Effective From Pay Head Rate Per
1-4-2022 Basic Salary 24,000 Month
Professional Tax
General Info
Provide Bank Details :
Employee Number : M-43
A/c No. 0012
Designation : Manager IFS Code 02561
Function : Managing the office Bank Name :Janata Bank
Location : Dadar Branch : Dadar (E)
Blood Group : A + Ve For Banking
Father / Mother Name : Mahesh Sharma Transaction Type
Address : C/51 , Sai Ashish CHS , ATM
Dadar, Mumbai -400028
Phone Number : 022-2456-9325
E-mail ID : Rohan [email protected]
71
In the similar manner, fill the salary details for other employee too.
Gateway of tally > Voucher > (F10) > Show inactive > Payroll Voucher > Attendance > Select Employee
Name
Attendance
Employee Name Attendence/ Value Unit
Production Type
Rohan Sharam Present 20 Days
In the similar manner, fill the salary details for other employee too.
Gateway of tally > Voucher > (F10) > Show inactive > Payroll Voucher > Payroll ( ctrl + F4)
Payroll ( ctrl + F4)
Account : Cash / Bank ( Under : Bank A/C)
Now Press : (Ctrl +F)
Autofill
Type of Transaction : Payroll Autofill
Process for : Salary
From (blank for beginning ) :1-4-2022
To (blank for end) :1-5-2022
Employee Group : Rohan Sharma
Sort By : Employee Name
Payroll/Bank/ Cash Ledger : Cash/ Bank
Now rest all the details will come automatically
 Now view the payment slip go to;

Gateway of tally > Display > Payroll Reports > Payslip > Select name of the employee
72
Security Control
Protect Company data with Password :
TallyVault
Tally Vault: This feature will encrypt the company data and hide company name at list of
Company.
F3> Alter company > F12 Configure
Configuration: Use Tally Vault Password to encrypt company data : Yes Use Access Control :
No Alt +K (Company) > Tally Vault
Company Name : ABC Ltd (Open company name) Password : 123 Confirm Password: 123
Accept : Yes
Set the Tally Vault Password : Yes Do you want to create a copy of company : No
Check the Company in the List of Company F3 : Company > Select Company
The Company is shown as “ *************”
Select this company : TallyVault Password : 123
Protect Company data with Password :
Alt +F3 > Creat > Creat company

OR
(Alt+F3 > Company > Alter Company )
F12 > configuration
Use tally vault password to encrypt company data : Yes
Use user access control : yes
Security
Use Tally Vault Password to encrypt company data : Yes Use Access Control : No Alt +K (Company) > Tally Vault
Security Control user Access to Company data : Yes
User Name: ABC & CO,
Password: 123
Confirm Password : 123
Enable Tally Audit: Yes
Accept: Yes
73
Alt +F3: Company: Shut Company
Reopen with username and password.

Use Security Audit Features: The admin can use this feature to access the all users date in
that company.
Display More Reports > Statement of Accounts > Tally Audit
Check Voucher Type Masters Users
Remove Password from the Company

F3: Company > Alter Company
Control user access to company data :No
Current /Existing password: 123
Accept: Yes
F3: Company: Shut Company
Reopen the Company (username and password is not required)
74
EXPORT TO EXCEL & SPLIT COMPANY

Name – Arun Pawar

Under – Sales A/c
Name – ICIC Bank

Under – Bank A/computer
Gateway of tally > Create> Inventory Master > Stock Item

Name – Mouse
Under – Electronic Parts
Unit – Nos (Number of system)
Sales Voucher ( F8)

Party’s A/c Name - Arun Pawar
Mouse 10 1,000 10,000

Particular - Arun Pawar
Amount – 10,000
How To Check Report And Convert To Export To Excel

Gateway of tally > Balance Sheet > Export Reports
75
Export Reports :-
Export Reports > Current > Configure
Reports Details
Show Percentage – No
Exclude Accounts with Zero closing balance – No
Auto column
Format of report – Detailed
Show vertical balance sheet –No
Show loss also under liabilities –No
Method of showing balance sheet – liabilities / Assests
Include working capital – No
Scale factor – Default
Display name for ledger and group – Name Only
Show base currency – No
Company details
Show company name – Yes
Show company Address –Yes
Export Setting
File format – Excel (Spreedsheet)
Update existing file – Yes
Export To – Local drive
Folder Parth -
(EXPORT SETTING > UP > UP > D:/ )
File Name – BSheet.xlsx
(Then press to (ESC) key > Send > Your file export to excel sheet to show the reports )
76
SPLIT COMPANY
ALT + K for company creation
 Financial Year : 1 – 4 – 2020

 Book Beginning : 1- 4 – 2020
Sales Voucher ( F8)

Party’s A/c Name - Amit sharma
Monitor 5 5,000 25,000

Particular - Amit sharma
Amount – 25,000

Party’s A/c Name - Rohan Sharma
Purchase Ledger – Purchase Ledger
Tv 5 25,000 1,25,000

Particular - Rohan Sharma
Amount – 1,25,000
77
How to convert voucher entry to split company : -

Data (Alt + Y)
Split > Verify data
Company Name : select your company
“ than press Enter “
Split > Split data

Company Name : select your company
Split from : 1 – 9 -2020
The following companies will be created
Name of first company : (from 1 – 4 – 2020 )
Name of second company : (from 1 – 9 -2020 )
78
BATCH WISE DETAILED

ALT +K > For Company Creation
F11 > Inventory
Enable Batches – Yes
Maintain expiry date for batches - yes

Name – Dev Jon@
Under- Sundary Creditors
Name – Purchase Accounts

Under – Purchase A/c
Name – Aditiya Sek

Name –Sales Accounts

Under – Sales A/c

Name – Computer
Additional details
Mintain in batches – yes
Track date of manufacturing – Yes
Use expire date –Yes
79

Purchase Accounts (F9)
Party’s A/c name : Dev Jon@
Sales Ledger : Purchase Accounts
Computer 5 15,000 75,000
Item Allocation for
Batch/Lot No. Quantity Rate per Amount

Mfg Dt. Expiry Date
ST/103 5 15,000 75,000
Apr - 2022 31 – Mar - 2024
Sales Accounts (F8)

Party’s A/c name : Aditiya Sek
Sales Ledger : Sales Accounts
Computer 2 10,00 20,000
Item Allocation for
Batch/Lot No. Quantity Rate per Amount

Mfg Dt. Expiry Date
ST/103 2 10,000 20,000
Apr - 2022 31 – Mar - 2024
How to check reports : -

Display More Reports > Statement of inventory > Movement Analysis > Stock Group Analysis >
Select Item name > Press Enter
80
BILL WISE DETAIL

F11 > Accounting
Maintain Accounts – Yes
Enable Bill- wise entry – Yes

Name – Raj electronic
Under- Sundary Creditors
Maintain balance bill-by-bill - Yes
Default credit period – 30 days
Check for credit days during voucher entry - No
Name – Purchase Accounts

Under – Purchase A/c
Name – Star World

Maintain balance bill-by-bill - Yes
Default credit period – 15 days
Check for credit days during voucher entry - No
Name –Sales Accounts

Under – Sales A/c

Name – Monitor
81
Purchase Voucher ( F9) Date : - 1 – 4 - 2023

F12 : Use default bill – wise details for bill allocation - No
Supplier Invoice No. - 311
Party’s A/c Name - Raj electronic
Purchase Ledger - Purchase Accounts
Monitor 5 5,000 25,000
Bill – Wise details for
Type of Ref Name Due Date .Or credit Amount

days
New Ref 311 30 days 25,000 Cr.
(1-MAY-2023)

Particular - Raj electronic
Amount – 25,000
Sales Voucher ( F8) Date : - 2 – 4 - 2023

F12 : Use default bill – wise details for bill allocation - No
Supplier Invoice No. – 311
Party’s A/c Name - Star World
Sales Ledger – Sales Accounts
Monitor 2 5,000 10,000
Bill – Wise details for
Type of Ref Name Due Date .Or credit Amount

days
New Ref 311 15 days 10,000 Cr.
(17-APR-2023)
82

Particular - Star World
Amount – 10,000
How to check reports : -

Gateway of tally > Display more reports > Daybook
83
COMPANY GODOWN MANAGEMENT

Godown creation :-
Gateway of tally > Create > Inventory voucher > Godown
1. Name : Onsite
Under : Prime
2. Name : W’HOUSE
Under : Prime
Gateway of tally > Create > Inventory info > Stock item
Stock item
1. Name : Dvd player
Under : Electronic parts
Unit : Nos (Number of system )
5 2500 12,500
2. Name : Mouse
3. 5Name : Keyboard 700 3,500
84
4. Name : Monitor

5 5,000 25,000
Gateway of tally > Stock summary > (Alt + F1 ) To see details

Gateway of tally > stock summary > ( Alt +F1 ) To see all details
85
BACKUP & RESTORE COMPANY

Date on a computer is vulnerable to all type of difficulties . Considering the same, it is important that we
do not overlook the importance of regular backing – up of data regardless of the stability of the
database with a little planning and forthought, we can ensure that maintenance of the important data is
continuous and hassle – free .
Depending on the volume of data entry an appropriate backup mechanism will have to be
devised . One method of achiving it will be by maintaining a backup directory in the local hard disk or
the server (external storage media such as the floppy disk , zip diskette can also be used )
BACK - UP : -
STEP – 1 : First press “Alt + F3 “ for select company shortcut
STEP – 2: Back-up shortcut is [ Alt + y ]
STEP – 3 : Select companies for back-up
Backup destination path : C:\
Select from drive > C:\ > User > Public > Tally prime > Data > Enter
STEP – 4 : Company Name
Now select the name of the companies , of which you want to take a backup from the list that appears
automatically . Alter selecting the all the companies , select “end of list “ .
ACCEPT ? YES
86
RESTORE : -
Now suppose, those companies of which you had taken the backup have got corrupled in “tally prime“
and you have deleted those companies . Now you want to bring back those companies in a “TALLY
PRIME “ .
STEP -1 : Restore shortcut is [ Alt + y ]

STEP – 2 : Select companies for restore
Backup destination path : C:\User\Public\Tally prime\Data
STEP – 3 : Company Name
Select those companies .Now you can see in the list of companies those companies have been
restored again .
Notes
If you want to again take backup of some other companies , then give different destinations .
This is because by giving the same destination , old backup of companies will be replaced by the new
backup of the other companies.
Taking the back up of any company does not mean deleting the company “TALLY PRIME “
However ypu cannot open or view the data in any of the drive. It can opened throught “ TALLY
PRIME “ only .
87
SCENARIO REPORTS
Scenario management is a management tool that enables . different display of accounts and inventory
related information , by selectively including certain types of voucher without affecting the source data .
it is useful in generating provisioned reports , where entries are not actually made in the main books . it
is also a useful forecasting tools i.e. you can forecast the expenses using provisional voucher and include
them in your reports .
Gateway of tally > voucher

Purchase voucher(f9)
Party’s a/c name : Rohan
Purchase ledger :Purchase a/c
name of item Quantity Rate Amount
T.v 10 15,000 1,50,000
Gateway of tally > Create > Show more > scenario >
Scenario creation
Name : profit
Include actual : Yes
Include : sales
Exclude : End of list
Suppose you have already passed some entries for afinancial year and you seen the profit & loss
a/c from “gateway of tally > profit & loss a/c “. Now you want to see that , if the purchases / sales /
expenses / income in a financial year get increases or decreased then how will it affect in profit & loss
a/c .
Select the month in which the entry was passed , then select the entry which you have passed
and open the entry completely .
Suppose you know that the entry should be passed in sales voucher then , when the entry is opened
completely press “F8” for sales voucher . Now you just have to enter the party’s name and accept the
entry.
88

Sales voucher (f8)
Press [CTRL + L] for optinal voucher
Party’s a/c name : mohit
Sales ledger : sales a/c
name of item Quantity Rate Amount
T.v 5 20,000 1,00,000
Gateway of tally > Profit & loss a/c > press “Alt + C “
Column Details
From (blank for beginning ) : 1 – 4 – 2023
To (blank for end ) : 31 – 3 -2024
Method of stock valuation : default
Type of value to show : select to your scenario name
Show variance : No
You will see the different in the Gross profit /s and net profit / loss of actual and scenario (whatever the
scenario name you had given )
You will see to different in the actual profit & loss a/c since the entries were passed in memorandum
voucher and the entries passed in memorandum voucher do not affect any voucher ledger accounts ,
statement of accounts , etc.
89
E-WAY BILL

F11 > Taxation > Enable Goods and Service Tax (GST) – Yes
Invoive Features
E-way bill application - Yes
Application from – 1- 4- 2022
Thresholds limit – 50,000
Application for intrastate – Yes
Threshold limit – 50,000
E-invoicing application – Yes
Application from – 1- 4 -2022
Send e-way bill details with e – invoice - Yes

Name – Amit sharma

Under – Sales A/c
Name – ICIC Bank

Under – Bank A/computer

Name – Monitor
Sales Voucher ( F8)

F12 : Configuration > GST Details
Modify tax rate details of GST – Yes
90
Send e – invoice details after saving voucher – Yes

Send e – way will details with e – invoice – Yes
Export e – way bill details after saving voucher –Yes
Party’s A/c Name - Amit sharma
Monitor 20 5,000 1,00,000
Provide e – invoice details : Yes

Particular - Amit sharma
Amount – 1,00,000
How to check reports :-

Display more reports > Daybook > then press (Alt + Z )
91
GOODS & SERVICES TAX (GST)

Full-form of (Gst tax)
CGST - Centre Goods and Service Tax
SGST – State Goods and Service Tax
IGST – Integrated Goods and Service Tax
GST Rates:
1. Nil
2. 5%
3. 12%
4. 18%
5. 28%
Open New Company:

ACTIVATE GST
F11 > Taxation
Enable Goods and Service Tax (GST): Yes
GST Details
GST registration Details :-
State : Gujarat
Registration type : Regular
Assessed Other Terrtory : No
GST Applicable Form : 1-4-2022
GST /UIN : 22AAAAA0000A1Z5
Periodicity of GSTR1 : Monthly
Additional Features :-
Set/alter GST rate details : yes
GST Details for company
Tax details
Taxability : Taxable
Tax Type Rate
Integrated 18%
Cess 9%
Enable GST classifications : yes
Provide LUT/Bond details : No
92
Invoice Features
e-way bill applicable : yes
Application from : 1-4-2022
Threshold limit includes : invoice value
Thresold limit : 50,000
Application for intrastate : yes
Threshold limit : 50,000
e-invoicing applicable : No
Gateway of tally > create > Accounting Master > Ledger
Create Ledger
1.Name : Khurana LTD
Maintain balance bill-by-bill : yes
Tax Registration Details :
-Registration Type : Regular
-GSTIN/UIN : 22AAAAA0000A1Z5
-Set /alter GST details : yes
GST Details
Registration Type : Regular
Assess of other Territory : NoIs
e-commerce operator : No
Consider Party as Dammed Exporter for purchase : No
Party Type : “Not Applicable”
GSTIN/UIN : 22AAAAA0000A1Z5
Is a transporter : No
1. Name : Maharaja LTD

Under : Sundery Creditors
Maintain balance bill-by-bill : yes
Tax Registration Details :
-Registration Type : Regular
93
GST Details :-
Registration Type : Regular

Asseases of other Territory : No
Is e-commerce operator : No
Consider Party as Demmed Exporter for purchase : No
Party Type : “Not Aplicable”
GSTIN/UIN : 21AAAAA0000A1Z5
Is a transporter : No
2. Name : Sales with GST @ 18 %

Statutory Details
-is GST applicable : Applicable
GST details for ledger
Nature of transaction : sales taxable
-Tax details
Tax type Rate
-Integer tax 18%
-Type of supply : Goods
3. Name : Purchase with GST @ 18 %

Statutory Details
GST details for ledger
Nature of transaction : Purchase taxable
-Tax details
Tax type Rate
Integer tax 18%
-Type of supply : Goods
94
4. Name : C GST on sales @ 9%

Under : Duty & tax
-Tax on duty /tax : GST
-Tax type : Central tax
-Percentage calaulation : 9%
5. Name : S GST on sales @ 9%
Under : Duty & tax
-Tax type : State tax
-Percentage calculation : 9%
6. Name : C GST on Purchase @ 9%

Under : Duty & tax
7. Name : S GST on Purchase @ 9%

Under : Duty & tax
8. Name : ICIC BANK

Under : Bank A/C
Gateway of tally > create >Inventory Master > Stock item

Create Stock Item
Name : Monitor
Unit : NOS (Number of system)
95
Statutory Details
GST Details for stock item
-Tax Details
Calculation type : On Value
Tax type Rate
Integer tax 18%
-Type of Supply : Goods
Gateway of tally > Voucher > Sales Voucher (F8)
 Sales Voucher (F8)

Party A/C Name : Khurana LTD
Sales Ledger : Sales A/c
Name of Item Qnty Rate Amount

Monitor 800 500 4,00,000.00
C GST on sales @ 9% 9% 36,000

S GST on sales @ 9% 9% 36,000
 Purchase Voucher (F9)

Party A/C Name : Maharaja LTD
Purchase Ledger : Purchase A/c
Name of Items Qnty Rate Amount

Monitor 800 500 4,00,000.00
C GST on Purchase @ 9% 9% 36,000

S GST on Purchase @ 9% 9% 36,000
 View to Reports
Display More Reports GST Reports GSTR-2+ GSTR -3B
96
 What is GST IN TALLY ? ?

Goods and services tax is a comprehensive tax levied on supply of goods and services across
India . GST is a destination based consumption tax , and the taxable event is supply as against
the existing taxable events of sales , manufacture or provision of service .
 What are type are GST ? ?
Introducation to GST and its 3 types – C GST , S GST , I GST AND UTGST are effectively
supporting such major economic development programs. GST stands for Goods and services
tax.
 What is Goods and services tax ? ?
GST full form & GST meaning . GST full form is good and services tax. before learing more about
goods and service tax, iet’s try to understand how taxes in india work . The government of any
country needs money for ites functioning and taxes are a major source of revenue for a
government .
 WHAT IS THE MAIN PURPOSE OF GST ??
Originally answered: What is Purpose of GST ? The goods and service tax (GST) is a
comprehensive value added tax on the supply of goods and services. GST will replace all the
indirect taxes ( like excise duty , vat ,cst etc.) levied on goods and services by government once
it is implemented.
 How is GST USEFUL ??
Originally answered : What is the Purpose of GST ? The goods and service tax (GST) is a
comprehensive value added tax on the supply of goods and services . GST will replace all the
indirect taxes ( like excise duty , vat , cst etc.) levied on goods and services by Government once
it is implemented.
 HOW GST BANIFICEAL FOR COMMON MAN ? ?
GST helps to reduce inflation (general increase in price levels), which shows a huge influence on
a common man’s life . It reduce the tax burden by removing tax on tax.
 EXPLAINED WITH AN EXAMPLE. GST ??
explained with an example. GST is a singale tax on the supply of goods and services. … GST will
eventually replace all indirect taxes levied on goods and services by the central and state
government , and is expected to liberate india of its complex indirect taxtion stucture.
97
How to send EMAIL

Create company > with [alt + k]
Gateway of tally > create > Accounting Master > Create
1. Name : danish
Under : sundry creditor
2. Name : purchase
Under : purchase a/c
3. Name : ICICI BANK

Under : Bank a/c
Gateway of tally > create > inventory master > stock item
1. Name : Iphone
Unit : Nos
Purchase Voucher (f9)
Party’s a/c name : danish
Purchase a/c : purchase a/c
Iphone 1 1,50,000 1,50,000
Payment Voucher (f5)

Accounts : ICICI BANK
Particular : Danish
Amount : 1,50,000
How to send email process:-

Gateway of tally > daybook > press [alt + m] > current
E- mail process:-
E-mail from :[email protected]
E-mail to : [email protected]
Subjaect : Daybook
E-mail message : Tally file data entry
01-12-2023 date file……
98
Then ho to configure:-
Report details---
show narration : no
show voucher no. : yes
formate of reports : condensed
type of voucher entry : all voucher
display name for ledger : yes
header information----
show page no. : yes
company details---
show company name : yes
show company address : yes
E-mail setting ------
E-mail from :[email protected]
E-mail to : [email protected]
Subjaect : Daybook
File formate : pdf (read-only document)
File name : daybook.pdf
Then send your E-mail data.
99
TOTAL ALL LEDGER UNDERSTANDING
Ledgers Understanding
Bank Accounts All Bank Current Account
All Bank FD Account
(Personal Savings Account and FD not recorded)
Bank OCC A/C Cash Credit Limit (CC)
taken from bank
Bank OD A/C Overdraft Limit (OD)
taken from bank
Branch / Divisions Any Branch whose Separate Accounting Done
(If branch account maintained by head office only,
then this account not required)
Delhi Branch Branch in division
Capital Accounts All types of Capital Account like
Share Capital
Partner Capital Account
Partner Current Account
Proprietor Account
Drawings
Life insurance
Equity Capital A/c
Partners Capital A/c
Cash – In – Hand Imprest Account
(Cash kept with Employee)
Petty Cash
Current Assets Prepaid Maintenance Expense
Prepaid Expense
Prepaid Rent
Prepaid Insurance Charges
Interest Receivables
Bill receivable
Accrued income
Mutual Fund
CGST SGST IGST Credit
Current Liabilities Bill drawn
Bill Payable
CGST SGST IGST Payable
Deposits (Asset) All types of deposits like
Security Deposit
100
Electricity Deposit
Rent Deposit
Direct Expenses All expenses which appear in Trading Account
(except purchases) like
Labor
Power Electricity
Expense (Factory)
Clearing Charges
Carriage
Freight & Cartage
Direct Income Any Income from main service like
Freight Charges Income
Delivery Charges Income
Transporation Charges Income
Professional Charges Income
Consultancy Charges Income
Maintainance Service Income
Duties & Taxes All types of Taxes like
INPUT CGST SGST IGST CESS
OUTPUT GST SGST IGST CESS
Excise Duty Payable etc
Service Tax Payable TDS Payables Input Vat
Accounts Output Vat Accounts
Expenses (Direct) All expenses which appear in Trading Account
(except purchases) like
Labor
Power
Electricity Expense (Factory)
Custom Clearing Charges
Carriage Freight & Cartage
Expenses (Indirect) All Indirect Expenses like
Salary
Advertisement Expense
Rent Expense
Bad Debts Printing Expense
Stationary Expense
Telephone charge
Travelling expenses
Fixed Assets All Fixed Assets on which Depreciation charged like
Furniture
Machine
Mobile
Computers
Furniture and Fittings
101
Car
Laptops
Office lighting
Land & Building
Income (Direct) All Indirect Income like
Discount Received
Interest on Investment
Income (Indirect) All Indirect Income like
Discount Received
Indirect Expenses All Indirect Expenses like
Salary
Advertisement Expense
Rent Expense
Telephone charge
Travelling expenses
Indirect Income All Indirect Income like
Discount Received
Investment All types of Investments like
Investment in Shares
Investment in Bonds
Investment in Property/Plot etc
Loan Advance (Assets) Any Party to whom we gave loan
like Loan Given to Friends Relatives/Related
Companies
Any Party to whom we gave Advance
like Advance to Supplier
Loan (Liability) Any Party from whom we take loan.
We can also put group Secured loan or Unsecured
loan Debenture A/c
Loans From Bank
Loans From Outside Party
Loans From Aravind(Friend)
Misc. Expenses (Assets) Preliminary Expenses
NOT yet written off
Provision All Provisions except Provisions for bad debts
Provision for Tax
Provision for Expense
All types of Payables like Salary Payable, Audit fees
Payable
Purchase Accounts All types of Purchase Accounts like
Purchase Local 12 %
Purchase Interstate 12%
102
Reserve & Surplus Any type of reserve like

General Reserve
Capital Reserve
Capital Reserve A/c
Investment Allowance Reserve A/c
Share Premium A/c
Reverse and Surplus
Retained Earning General Reserve
Share Premium
Any other Reserve
Sales Accounts All types of Sales Accounts like
Sales Local 12 % (Registered)
Sales Interstate 12%
Sale Return
Secured Loans Loans for whom Security Given like
loan from bank/ Financial Institution
Stock – In – Hand Stock
Closing Stock
Consignment Stock
Opening Stock
Sundry Creditors Any Party from Whom Goods Purchased
Party from Whom any Bill of Expense Received
Sundry Debtors Any Party to Whom Sales Made
Provision for Bad Debts
Suspense A/C Suspense Account
Any payment or receipt from party whose name
not known Suspense Account
Unsecured Loans Loans taken for whom no Security given
Like Short term loan from directors
or loan from friends /relatives
103
SHORTCUT KEY FOR TALLY PRIME

Shortcut Key On Keyboard Function Availability
(Alt + k ) To create company At all most all screens in tally prime
F3 To change in company data To change the company data , voucher
entry
Alt + F3 To select company At all most selected to company
F2 To change the current data At all most all screens in tally prime
(Alt + F2 ) To change the period At all most all screens in tally prime
F11 To enable the company all At all most all screens in tally prime
features
At F11 features in screen
F12 To enable the company At all most all screens in tally prime
configurations
At F12 features in screen
F4 To Select the Contra Voucher At accounting / inventory voucher
creation and alteration screen
F5 To select the payment At accounting / inventory voucher
voucher creation and alteration screen
F6 To select the receipt voucher At accounting / inventory voucher
F7 To select the journal voucher At accounting / inventory voucher
F8 To select the Sales voucher At accounting / inventory voucher
F9 To select the Purchase At accounting / inventory voucher
voucher creation and alteration screen
Only for F10 features To select Change voucher type At accounting / inventory voucher
(Show in active ) creation and alteration screen
Alt + F6 To select credit note At accounting creation and alteration
screen
Alt + F5 To select debit note At accounting creation and alteration
screen
Ctrl + F7 To select physical stock At inventory voucher creation and
alteration screen
Alt + F7 To select stock journal At inventory voucher creation and
alteration screen
Ctrl + H To select Change Mode At accounting / inventory voucher
Alt + F8 To select delivery notes At accounting / inventory voucher
Alt + F9 To select receipt notes At accounting / inventory voucher
104
Ctrl + F6 To select rejections “in “ At accounting / inventory voucher

Ctrl + F5 To select rejections “out” At accounting / inventory voucher
Ctrl + F9 To select “ purchase order “ At accounting / inventory voucher
Ctrl + F8 To select “sales order “ At accounting / inventory voucher
Ctrl + F4 To select (Payroll voucher ) At accounting / inventory voucher
Alt + C To select a master at a At voucher entry and alteration screen ,
voucher screen. If it has not at a field where you have to select a
been already assigned a master front a list . If the necessary
different funcation , as in account has not been creted already,
reports like balance sheet use this key combination to create the
where it adds a anew column master without quitting from the
to the reports . voucher screen .
Alt + D To delete a voucher At voucher and master (single)
To delete a company alteration screens . Master can be
deleted subject to conditions as
explained in the manual.
Alt + E To export the reports in At all most all reports screens in tally
EXCEL SHEET format prime
Alt + Y To select company data At all most all reports screens in tally
backup and restore OR split prime
company data
Alt + M To select the company email At all most all reports screens in tally
data prime
Alt + P To select the company print At all most all reports screens in tally
voucher data prime
105

Tally Book

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PREPARE BY VELOCIS EDUCATION TALLY PRIME BOOK

ACCOUNTING FUNDAMENTAL AND INTRODUCTION OF TALLY PRIME

Golden rules of accounting

Real a/c - Debit what comes in

Personal A/c - Debit that receiver

Nominal a/c - Debit all expenses & losses

Introduction of tally prime :-

Steps to create a company in tally prime

 Open the “tally prime” software.

COMPANY CREATION , ALTER, DELETE

Select Company OR Change company

ZERO VALUE ENTRY

Gateway of tally > Voucher

Purchase Voucher (F9)

Name of Item Quantity Rate Amount

 How to Check the entries,

Payment Voucher ( F5)

 How to Check the entries,

ACTUAL AND BILLED QUANTITY

Gateway of tally F11 Features

Gateway of tally voucher

Name of Item : Quantity Rate Amount

2. Payment Voucher (F5)

Gateway of tally F11 Features

Gateway of tally voucher

Cash Discount Received -5 -1,250

2. Payment Voucher (F5)

Gateway of tally voucher

Name of Item : Quantity Rate Amount

Cash Discount Allowed -5 -5,000

2.Receipt Voucher (F6)

Gateway of tally > Create > Godwon > Create new.

Gateway of tally > Create > Stock item

1. Name : DVD PLAYER

Gateway of tally > Vouchers (Alt +F7)

Source ( consumption) Destination (Production)

Dvd Player Onsite Dvd Player Warehouse

 How to chech entries : -

Gateway of tally Create Voucher Type

Gateway of tally create Inventory Master Stock Item

Quantity Rate Amount

Quantity Rate Amount

Gateway of tally Alter Stock Item Shirt

Gateway of tally Voucher (ALT + F7) Manufacturing journal

Under :- direct expenses

Gateway of tally voucher

Sales Voucher (F8)

Receipt Voucher (F6)

Gateway of tally Voucher F10

Name of Item Quantity Rate Amount

F10 Show inactive Voucher Receipt Note ACTIVE NOW :YES

2. Receipt Note : ( alt + F9)

Name of Item Quantity Rate Amount

3. Rejection Out Note (ctrl + F5)

Name of Item Quantity Rate Amoun

F10 Show inactive Voucher Purchase Voucher ACTIVE NOW :YES

4. Purchase Voucher (F9)

Name of Item Quantity Rate Amount

F10 Show inactive Voucher Payment Voucher ACTIVE NOW :YES

5. Payment Voucher (F5)