Assignment on Tally

Dear Friends,
I am giving hereunder the Assignment on Tally for your reference please. This was
prepared by me only.
Please comment..
sekhar
Question No.1 : Write the steps to create a new company in Tally and also explain the all
reliable fields in company creation window.
Answer: Every business has no. of financial transactions, as a human being we could not
remember all of them. To overcome this problem we used to record all business
transactions in books. As technology is developing we are using computers in every area.
Tally is an application package which is used to record and analyze all business
transactions in computer. To work with this package we need Windows operating System
in our computer.
To record transactions in Tally, first we need to create Companies for whose transactions
to be entered. Suppose as a consultant if want to maintain number of companies data, we
need to create separate companies.
To create a company we have to follow the steps giving hereunder:
By Double clicking the Tally Icon on desktop, it opens the Tally screen.
The gateway of Tally Screen divides into four areas
Title area : Shows version No. Date, Time etc.,
The main area : List of selected Companies etc.,
Calculator Area : To done mathematical calculations
Button bar : Displays Commands to be used
The names of the companies already created will displays on the main areas left part. In
the right part of the main area there is a menu called Company Info.
Click on Create Company. It will display a dialog box.
We have to fill the required fields
After entering all the information it will display Accept Yes or No? dialog box.
Click on Yes Button to save all the information and it will creates the company
The Following are the various details required to create a company.
Directory: Companys data will be saved in a directory, for this it is required to give the
path of the Data directory. Path is the location of the directory. By default Tally creates its
data directory at C:\Tally\data. We can the change the default path by pressing backspace
key and enter a new path. Internally Tally Names its directories like 001, 002.
Name: Here we have to give the name of the company for whose books are to be opened.
For Eg. XYZ Company Ltd.,
Mailing Name and Address: Here we can enter the mailing address of the company. It can
be entered in multiple lines also.

E-mail Address: This is optional, if we want we can enter it.

Local Sales Tax Number: Here we have to enter the Sales tax number allotted to the
company by the state Govt.( if available)
Inter state Tax Number: Type the number if available which was allotted by Central
Govt..
Income tax Number: Type the number allotted by the Central Govt to the company if it
available.
Currencey Symbol: Type the base currency symbol like Rs. $ etc. In India it will be Rs.
Maintain: We can maintain two types of Accounts
Accounts Only: To maintain Accounts Transactions only
Accounts-cum-Inventory: To maintain the Inventory transaction as well as Accounts
transactions.
Financial Year from: Type the Financial Year of the country for Eg: 2005-06
Books beginning from: Tally assumes that this period will be the same as Financial Year ,
if we want we can change it. Suppose company books begins from July 2006, then the
date will be 01-07-2006.
Tally Valut Password: To avoid unauthorized persons to operate/enter and view our
company transactions we can maintain data in encrypted form(Unrecognizable form). By
typing the password authorized persons only can view and record/enter the information.
As administrator we have give the Password for it.
Use Security Control: We can define and maintain security control layers by classifying
the Supervisor rights and normal user rights. Type Yes to maintain Security control , other
wise Type No.
Basic Currency Info: In this area we have to enter currency formal name, Decimal Points
etc., information
Question No. 2: Explain the following group with an example
Capital Account
Current Assets
Indirect Expenses
Direct Expenses
Bank account
Bank OCC account
Fixed Assets
Current liabilities
Answer:
In manual accounting grouping is need to be done after figures of transaction (Vouchers)
have been posted to the ledger accounts and balance drawn (Trial Balance).
In Tally by default it creates 15 groups; they are called as Reserved Groups (some are
divided into sub groups)
Capital Account
This group holds the Capital and Reserves of the company. The following ledgers that
may be opened under this group are
Share Capital A/c [When the firm is Company]
Partners' Capital A/c [When the firm is Partner-ship firm,

Proprietor's Capital A/c [When the firm is proprietary ship based]

Reserves and Surplus A/c [also called as Retained Earnings]
Capital Reserve A/c, General Reserve A/c, Reserve for Depreciation A/c, etc.
Current Assets
This Group holds the current assets ledgers other than Bank Accounts, Cash in Hand
For Eg: Loan & Advances (assets)
Deposits (Assets)
Stock-in-hand
Indirect Expenses
This group holds all the Administrative, selling & distribution Expenses Accounts. These
expenses are generally shows in Debit side of Profit & Loss account.
For Eg. Depreciation A/c,
Rent, Rate & taxes A/c ,
Insurance charges A/c,
Printing & stationery A/c,
Repairs & Maintenance (Admn) A/c,
Traveling and conveyance A/c.
Salaries Payable A/c
Direct Expenses
This group holds all the Trade A/c Expenses; it determines the gross profit / gross loss of
the company
For Eg: Wages A/c,
Factory Light A/c,
Frieght & Octroi A/c,
Carriage inwards A/c,
Bank account
This group holds Bank related Accounts
Bank Current Accounts for Eg: State bank of India [CA-1095]
Bank Savings Accounts, for Eg: HDFC bank [SB-2555]
Short term deposits A/c etc
Bank OCC account
This group holds the Bank Overdraft Account
Fixed Assets
This group holds ledgers of fixed asset like

Land & Building A/c,

Furniture & Fixtures A/c,
immovable properties,
patents ,
trade rights,
Current liabilities
This group contains the flowing sub-groups
Duties taxes
Sales Tax,
Central Sales Tax,
Exise Duty,
Marketing Fee,
Purchase Tax
Provisions
Provision for Income Tax
Provision for Bad Debts
Sundry Creditors
All trade creditors of the company
For Eg: Raj & Raj Co.,
ABC Company Ltd
Current Liabilities holds the following Ledgers:
All liabilities accounts which are not fallen in above 3 groups can be placed here Like
Statutory Liabilities
For Eg;
T.D.S payable A/c.
E.S.I Employers Contrib Payable A/c
P.F Employers Contrib Payable A/c
Question No. 3 : Explain the following voucher entry with an example
Contra voucher entry
Payment voucher entry
Receipt voucher entry
Journal voucher entry
Sales voucher entry
Answer
In Tally transactions are to be entered through vouchers. A voucher is a online document
to enter/ recording transactions. In Tally there are 16 predefined vouchers. These can be
selected by pressing the function keys as well as by clicking on the commands.
Gateway of Tally > Display> List of Accounts > <Ctrl>+<V> [Voucher Types]
Contra Voucher

This voucher is used to enter funds transfer transactions between cash & banks. Function
key F4 is the short cut key
For Eg: To Deposit cash Rs. 5000/- in Bank
Ledger Debit Rs Credit Rs.
Bank A/c 5000.00
Cash A/c 5000.00
To Transfer funds Rs. 5000/- from HDFC Bank to Bank of Maharashtra
Ledger Debit Rs Credit Rs.
Bank of Maharashtra A/c 5000.00
HDFC Bank A/c 5000.00
Payment voucher entry
This voucher is used to make payment to the parities through cash and bank. Function
key F5 is the short cut key
For Eg: Paid Rs. 4300/- as Insurance Charges through HDFC Bank
Ledger Debit Rs Credit Rs.
Insurance Charges A/c 4300.00
HDFC Bank A/c 4300.00
Receipt voucher entry
This voucher is used to record the cash/ bank receipts ( receipts from debtors). Function
Key F6 is the shortcut key
For Eg: Rs. 450000 received from Philips Co. Ltd., against our sales through cheque and
it has been deposited in HDFC Bank
Ledger Debit Rs Credit Rs.
HDFC Bank A/c 450000.00
Philips Co. Ltd., A/c 450000.00
Journal voucher entry
This Voucher is used to record adjustment entries between ledgers.
Function Key F6 is the shortcut key.
For eg. Rs. 75000/- made provision for make payment towards P.F Employers
contribution.
Ledger Debit Rs Credit Rs.
P.F Employers Contribution A/c 75000.00
P.F Employers Contribution Payable A/c 75000.00
Sales voucher entry
This voucher is used to record all sales transactions. Function key F8 is the shortcut key.
For Eg. Rs.830000 worth sales done on credit to Manohar & Company
Ledger Debit Rs Credit Rs.

Manohar & Company A/c 830000.00

Sales A/c 830000.00
Rs. 4500/- made cash sales
Ledger Debit Rs Credit Rs.
Cash A/c 4500.00
Sales A/c 4500.00
Question No. 4: Write the steps to
Delete a ledger
Modify a voucher
Create an user
Delete a voucher
Alter company information
Answer:
Delete a ledger : We can delete the legers by using the following steps:
Click on Accounts Info from Gateway of Tally
Click on Ledgers
Click in Single Ledger
Click on Alter , it displays a list of ledgers available
Double click on the ledger which we want to delete.
Then it displays ledger Alteration Screen
Press Alt key + D from the key board
It displays delete Yes or No dialog box.
Click on Yes.
Modify a voucher : We can modify a voucher already entered. For this the following steps
to be done
Click on Display from Gateway of Tally
Click on Accounts Books
Click on Ledger
Double Click on the Ledger which we want to modify
From the list of vouchers Double click on the voucher which we want to modify
Select the Voucher type command from the command bar or Press the Short cut key to
change the voucher type.
Make the necessary changes
Press Ctrl + A from the keyboard to save it
Create an user : When we are maintaining security layers we should create users and allot
the rights to them
The steps to create users are:
Press Alt + F3 to open Company info menu
Click on Security Control
Click on users and passwords
A dialog box will be opened ,
Type the user names in Name of user area

Type the Password in Password area

Select the security level.
In this way we can create no of users.
Press enter key to save the transaction
Click on Yes
Delete a voucher : To delete a voucher the following steps to be done
Click on Display from gateway of Tally Menu.
Click on Account Books
Click on ledger
Select the ledger
Select the voucher which we want to delete
Press Alt+ D from the keyboard
Click on Yes to delete the voucher
Alter company information : If any requirement to alter/modify the information of
already created company, the following steps to be done
Press Alt + F3 to open Company info menu
Click on Alter, it will displays available companies list
Select the company which we want to modify the information
Then it opens company alteration screen
Make necessary changes.
Press Ctrl + A , to save the contents
Press Esc key from the keyboard to come out to the menu area