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EDU IT LEARNING
(By RITIK SIR)
Accounting with Tally Prime Project

Basic concept of accounting

Accounting: -

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions and
information about an organization or individual.
Business Transaction: -
A business transaction is “The movement of money and money’s worth form oneperson to another”. Or
exchange of values between two parties is also known as “Business Transaction”.
Purchase: -
A purchase means goods purchased by a businessman from suppliers.
Sales: -
Sales are goods sold by a businessman to his customers.
Purchase Return or Rejection in or Outward Invoice: -

Purchase return means the return of the full or apart of goods purchased by the businessman to his
suppliers.
Sales Return or Rejection out or Inward Invoice: -
Sales return means the return of the full or a part of the goods sold by the business to the customer.
Assets: -
Assets are the things and properties possessed by a businessman not for resale but for the usein the
business.
Liabilities: -
All the amounts payable by a business concern to outsiders are called liabilities.
Capital: -
Capital is the amount invested for starting a business by a person.
Debtors: -
Debtor is the person who owes amounts to the businessman.
Creditor: -
Creditor is the person to whom amounts are owed by the businessman.
Debit: -
The receiving aspect of a transaction is called debit or Dr.
Credit: -
The giving aspect of a transaction is called credit or Cr.
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Drawings: -

Drawings are the amounts withdrawn (taken back) by the businessman from his business for his
personal, private and domestic purpose.
Receipts: -
It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received
voucher.
Account: -
Account is a summarized record of all the transactions relating to every person, everything or property
and every type of service.
Ledger: -
The book of final entry where accounts lie.
Journal entries: -
A daily record of transaction.
Trail Balance: -

It is a statement of all the ledger account balances prepared at the end of particular period to verify the
accuracy of the entries made in books of accounts.

Profit and loss account : It is prepared to ascertain actual profit or loss of the business.
Balance Sheet: -

It is a statement of assets andliabilities. It helps to know us how many assets or liability currently
present in the business.

Bad debt: -
Debt that cannot be collected. Bad debt can arise when a company extends too much credit to a customer
who is unable to pay back the debt.

Goodwill: -

Intangible assets.

Depreciation: -
Depreciation means decrease in the value of a fixed asset due to its use, obsolescence or passage of time.

Audit: -
The result of an independent professional accountant examining the financial statements to determine fairness
and compliance with generally accepted accounting principles (GAAP).

Bank Reconciliation: -
The verification process that ensures your bank statement and your checkbook balance.

Revenue: -
Revenue is the total amount of income generated by the sale of goods and services related to the primary
operations of the business.

Book Keeping: -
Bookkeeping is the process of recording and organizing a company's financial transactions. It is an essential
part of accounting and focuses on recording day-to-day financial transactions. Bookkeeping ensures that
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records of each financial transaction are up-to-date, correct, and comprehensive.
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Types of accounts and Golden Rule of accounting

Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions
which the businessmen deal. It is made with name of the person, company, institution etc.

Ex. Mohan A/C, Capital A/C etc.

Principles: Debit the receiver
Credit the giver
Real Account: These are the accounts of things, materials, assets & properties. It has physical
existence which can be seen & touch.
Ex. Cash, Sale, Purchase, Furniture, Investment etc.
Principles: Debit what comes in
Credit what goes out
Nominal account: Nominal account is the account of services received (expenses and Losses) and
services given (income and gain)
Ex. Salary, Rent, Wages, Stationery etc.
Principles: Debit all expense/losses
Credit all income/ gains

In simple word can be said that Rules of accounting are: -

Types of books of account

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1.) Journal
A journal is a book of accounts that records a business's financial transactions.
A journal is a concise record of all transactions a business conducts. The journal is the
first step in the accounting process. It records transactions in chronological order and
includes details about the accounts affected by each transaction.
 Purchase day Book
A purchase day book is a book of original entry that records all credit purchases
made by a business. It is also known as a purchase journal, purchase book,
invoice book, or bought book.
 Sales day book
Sales Day Book is a manually maintained account, with the purpose of
recording all the credit sales of the business in one distinct place. All the credit
sales of the firm are recorded in the sales day book.
 Return Inward book / Sales Return book
It records returned goods by customer or goods returned to dealer/supplier by
customer. It is also called a sales return book.
 Return outward
It records the details of goods returned by a business to its suppliers.
 General Journal
It is used to record those transaction that is not feet in other journal books.
 Cash book
A cash book is a financial journal that records all cash receipts and
disbursements, including bank deposits and withdrawals.
2.) Ledger
A ledger in accounting refers to a book that contains different accounts where records
of transactions pertaining to a specific account is stored. It categorizes the financial
transaction which is recorded in the journal. It is also known as the book of final entry
or principal book of accounts.
 Cash book
A cash book is a subsidiary ledger that records all cash transactions for a
business.
 General Ledger
A GL is a set of numbered accounts. Each account is a unique record that
summarizes a specific type of asset, liability, equity, revenue, or expense.
 Debtor Ledger/Sales Ledger
A sales ledger is an accounting ledger that records a business's sales,
including the amounts paid and owed by customers.
 Creditor Ledger/Purchase Ledger
A purchase ledger is a record of a company's purchases of goods and
services. It shows the amounts that have been paid and remain to be paid.

Accounting Cycle
Process of identifying, analyzing, and recording the accounting events of a company.
 Accounting Cycle Steps
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Identify
Transaction

Record
Closing the
transaction in
Book
journal

Financial
Ledger Posting
Statement

Adjusting
journal Uadjusted
entries/Fixing Trial Balance
errors

Build
Worksheet

1.) Identify Transaction

An organization begins its accounting cycle with the identification of those transactions
that comprise a bookkeeping event. This could be a sale, refund, payment to a vendor,
and so on.
2.) Record Transaction in journal
Recording of all transaction using journal entries.
3.) Ledger Posting
After journal entries, Posting and categorizing all entries in a ledger.
4.) Unadjusted trial balance
After ledger posting, unadjusted trial balance is prepared. The trial balance ensures that
total debits equal total credits in the financial records.
5.) Worksheet
Create and analyze a worksheet of debits and credits to identify necessary adjusting
entries, if there are discrepancies.
6.) Adjusting journal entries and fixing errors
These result from corrections made on the worksheet and the passage of time.
7.) Financial Statement
A financial statement is a document that summarizes a business or individual's
financial position. It includes assets, liabilities, and net worth.
8.) Closing books
Finalizing temporary accounts, revenue, and expenses at the end of the period.
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Journal entry format

Dr. Cr.
Date Particulars L.F.
(Amount) (Amount)
Date of Name of the account to be debited Dr. XXXXXXX
transaction To name of account credited XXXXXXX
(…………...............Naration…………………………)

1.) Date: - In which days transaction is being recorded or event occur.

2.) Particular: - Every transaction affects at least two accounts. One is debited and the other one is
credited. The item that is debited is mentioned first and the word ‘Dr.’ is also written after that. In
the next line, the item which is credited is written, a few spaces away from the margin, starting
with ‘To’.
3.) Narration: - Brief explanation of the transaction.
4.) Dr. (Amount): - The amount that is debited.
5.) Cr. (Amount): - The amount that is credited.

Voucher
A voucher is a document or piece of evidence that supports a financial transaction.
Vouchers are used to provide a clear and traceable record of various types of financial
activities within a business.

Types of Voucher
1.) Purchase voucher
Purchase of goods which is further sold. It does not include purchase of
assets.
2.) Sales voucher
It includes sales of goods. It does not include sales of any assets.
3.) Contra voucher
Transaction of banks that affect both bank and cash.
Ex. Deposit of cash in bank
From this transaction both are affected bank and cash.
4.) Payment voucher
Any cash or cheque payments
5.) Receipt Voucher
Any cash or cheque received.
6.) Journal voucher
Those transaction that does not follow rules of debit or credit. All adjustments,
loss by fire/natural etc.
7.) Debit Note
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A debit note is typically made when there is a sales return.
8.) Credit Note
A credit note is typically made when there is a purchase return.

Cash Book
To record receipts and payments of cash and bank. It cannot have credit transactions.
Types of cash book
1. Single column cash book: - There is a single cash column. There is no bank
column/transactions in it.

Dr. Cr.
V.
Date Particulars V. No. L.F. Amount Date Particular L.F Amount
No.

Dr. (Debit) side is all receipts

Cr. (Credit) side is all payments.
Date: - Contains date of transaction
V. No. : - Contains voucher Number.
L.F. (Ledger Folio) : - Page number of the ledger.
Amount : - Contains amount of the transaction.
2. Double column cash book : - Two column cash and bank. It records both bank and cash
transactions.
Dr. Cr.
Date Particular L.F. Cash(Amount) Bank(Amount) Date Particular L.F. Cash(Amount) Bank(Amount)

For More than one bank Account

Dr. Cr.
Date Particular L.F. Cash Bank Date Particular L.F Cash(Amount) Bank

SBI PNB SBI PNB

3. Petty Cash Book : - A petty cash book is an accounting book that records small, day-to-day
expenses for a business or organization.
Types of Petty Cash book
i. Simple petty cash book : - It has two primary column receipts and payments.
Simple Petty Cash Book
Amount Cash Book Voucher
L.F. Date Particular L.F. Amount Paid
Received Folio No.
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ii. Analytical petty cash book : - It has separate columns for each usual items of
expenses and a column for total.
Receipts Date Voucher Total Cartage Stationery Postage Wages Input Input
No. Payments SGST CGST

Each Expenses must be separated by a column in analytical petty cash book.

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Introduction of Tally Prime
Tally
Tally is a complete business
siness solution for any kind of Business Enterprise. It is a full fledged
accounting software. It is widely used by businesses and professionals for various financial and
accounting purposes. Developed by the Indian company Tally Solutions Pvt. Ltd
Ltd.. Latest version of
tally is tally Prime.

For Training purpose we will use Educational Mode of tally prime:

Note: Tally Prime- educational mode work without a license, where you can input data only on the
first, second, and last days of the month

Procedure for creating company in Tally Prime

Start Tally Software Open Tally > W: Work in Educational Mode

To create company
press Alt+K or click on Company tab, after that click on create then fill all details
of the company.
Or

F3: Company Create Company

Company
ompany Name: EDU IT LEARNING
Fill up: Address, State and other optional details.
Accept Company Created Successfully, (Enable features as per your business need)
Accounting Maintain Account: Yes
Enable bill wise entry: Yes
Inventory: No
Enable Goods and
nd Service Tax (GST): No
TDS: No
For Additional currency details: -
Press F12 Provide additional base currency  Yes

Accept the company

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Enable Features

Shut Company
Alt + K  Shut/ ctrl+F3
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Alter Company
Alt + K  Select Company Alter
Alter
Change your address or any other data Accept

Delete Company
Alt + K Select Company Alter
Alter Alt + D

Short cut keys

Alt+F3 : - Select company
Enter: - To accept information typed into a field.
To accept a vouch
voucher or master.
To get a report with further details of an item in a report.
Esc: - To remove what has been typed into a field.
To exit a screen.
To indicate you do not want to accept a voucher or master.
Ctrl+A: - All save or accept wherever you are workin
working.
Ctrl+Q: - It quits the screen without making any changed to it. Alt+C
To create a master at a voucher screen.
When working within an amount field presses Alt+C to act as a calculator.
Alt+D: - To delete a voucher.
To delete a master.
Ctrl+Enter: - To
o alter a master while making an entry or viewing report.
F2 Date
Alt+F2 Change period
Alt+F1 To see detail
F11 Features company
F12 Configuration options are applicable to all the companies in a data directory.
Ctrl+N Calculator screen.
Ctrl+V Voucher mode (Cr. Dr)
Invoice mode (name of item, rate, quantity, and amount)

After creation of company, Gateway of tally will be opened

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Gateway of tally is divided into two parts

1.) Company’s Information section
It contain Current period, current date, name of the company, and last transaction date
of that company.

2.) Company’s Transaction section

It is further divided into groups

 Masters

 Transactions

 Utilities

 Reports
We will discuss all these further

Group
Groups are collection of ledgers of the same nature.
Default Groups in Tally Prime
Bank account Bank Od account Bank OCC A/C
Capital account Branch/division Capital account
Cash in hand Current asset Current liability
Deposit Direct expenses Direct income
Indirect expense Indirect income Duties and tax
Fixed asset Investment Loans and advance
Loan (liability) Miscellaneous expenses Retained earning
Provisions Reserves and surplus Purchase account
Sales account Secured loan Stock in hand
Sundry debtor’s Sundry creditors Suspense
Unsecured account Unsecured Loans

Meaning:
Current asset:- It is converted into cash with in a year. Ex. Bills receivable

Direct expenses : These are the expenses which are directly related to manufacturing of goods. Ex. Wages, factory
rent, heating, lighting etc

Indirect expense : These are the expenses which are indirectly related to manufacturing of goods.Ex. Salary, rent,
stationery, advertisement, printing
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Depreciation : Decrease the value of the asset.

Sundry debtors : The person who is the receiver or customer

Sundry creditors : The person who gives or supplier.

Ledger in tally prime

Two ledger cannot be created by same name.
By default there is 2 ledger (1) Cash (2) profit and Loss A/C

To create ledger
Gateway of Tally -> Masters -> create --> Accounting Masters -> Ledger

Ledger Groups
Accrued Income Current Assets
Accrued Rent/ Accrued Income Current Assets
Advertisement Expenses Indirect Expenses
Advertisement Payable Current Liabilities
Air Conditioner Fixed Assets
Apprentice Premium Direct Incomes
Audit Fees Indirect Expenses
Bad Debts Indirect Expenses
Bad Debts Received Indirect Incomes
Bad Debts Reserve (last year balance) Indirect Incomes
Bank Bank Account
Bank Balance Bank Account
Bank Charges Indirect Expenses
Bank Commission Indirect Expenses
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Bank Loan Loans & Liabilities
Bank Overdraft Bank OD
Bills Payable Current Liabilities
Bills Receivable Current Assets
Bombay Branch Branch & Division
Bonds Current Assets
Building Fixed Assets
Capital Capital Account
Car Fixed Assets
Car Expenses Indirect Expenses
Car Repair Indirect Expenses
Carriage Direct Expenses
Carriage on Sales Indirect Expenses
Cash Cash in Hand
Cash at Bank Bank Account
Closing Stock Stock in Hand
Coal & Fuel Direct Expenses
Coal, Gas & Water of Factory Direct Expenses
Coffee Expenses Indirect Expenses
Coke Expenses Indirect Expenses
Commission (Cr.) / Commission Received Indirect Incomes
Commission (Dr.) Indirect Expenses
Computer Fixed Assets
Consignment Stock Current Assets
Consumed Material Direct Expenses
Coolage Direct Expenses
Creditors Sundry Creditors
Debtors Sundry Debtors
Deferred Expenses Current Assets
Deferred Income Current Liabilities
Delhi Branch Branch & Division
Depreciation Indirect Expenses
Depreciation Reserve Current Liabilities
Difference in Trial Balance (Dr or Cr) Suspense Account
Discount (Cr.) / Discount Received Indirect Incomes
Discount (Dr) / Discount Allowed Indirect Expenses
Donation Indirect Expenses
Drawing Capital Account
Electricity Expenses Indirect Expenses
Expenses on Purchases Direct Expenses
Expenses on Sales Indirect Expenses
Export Duty Indirect Expenses
Factory Fixed Assets
Factory Expenses (Lighting, Power etc.) Direct Expenses
Factory Incomes Direct Incomes
Farm House Fixed Assets
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FDR Current Assets
Multiple Ledgers
To create multiple ledger at a time
Charts of account  Ledger  Alt + H or Multi  Multi create

To edit on ledger
Gateway of tally Masters Alter  Select ledger
To delete ledger
Gateway of tally  Masters-> Alter Ledger select ledger  Alt + D
Note: - We cannot delete ledger which has been used for transaction.

Charts of account
The Chart of Accounts in Tally Prime provides a list of all accounting masters
created in the company. It also provides information related to those masters,
such as group, GST registration type, GSTIN/UIN, and opening balance.
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Voucher
We have learnt all about vouchers. In this lesson, we will learn how to create vouchers.
To create voucher in
n Tally Prime
Gateway of tally  Transaction  Voucher  Select voucher
F4 : Contra Voucher
F5 : Payment Voucher
F6 : Receipt Voucher
F7 : Journal Voucher
F8 : Sales Voucher
F9 : Purchase Voucher
If sales/purchase is made on credit
credit, Payment/Receipt voucher must
be made for adjustment of received/payment by cash/cheque

If Dr/Cr Not showing on voucher To/By is showing then click on

change mode or presss Ctrl + H and Select Double entry
Modes of voucher
There are two modes
es of voucher.
1. Single Entry: - Single entry in Tally is a voucher entry method that
allows users to enter vouchers without specifying debit or credit for cash
or bank transactions. In a single entry system, only one part of a
transaction is recorded, such as debit or credit.
2. Double Entry: -Double
Double entry mode in Tally is a bookkeeping
system that records both sides of a transaction. In double entry
mode, you can record multiple debits and credits in a single
transaction. This system is considered well-organized,
professional, and error
error-free.

How to change Mode of voucher

Go to voucher  select any voucher  ctrl + H /change mode  Select double or single entry.
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We will work on double entry system.

Sales and purchase invoice mode: -

 Item invoice: - In Item Invoice mode, you can provide an item, quantity,
and rate details.

 Accounting invoice: - you can use the accounting invoice mode if you
are selling services.
 As voucher: - you can use to record both sales of goods and services.

Practice problems
Assignment No.1:-
Create a company Milan Trade for the year 2023-24, and pass necessary Journal Entries
Journalize the following transactions
Commenced business with cash Rs.10, 000.
Deposit into bank Rs. 15,000
Bought office furniture Rs.3,000
Soled goods for cash Rs.2,500
Purchased goods form Mr X on credit Rs.2,000
Soled goods to Mr Y on credit Rs.3,000
Received cash form Mr. Y on account Rs.2,000
Paid cash to Mr X Rs. 1,000
Received commission Rs. 50
Received interest on bank deposit Rs. 100
Paid into bank Rs. 1,000
Paid for advertisement Rs.500
Purchased goods for cash Rs. 800
Sold goods for cash Rs. 1,500
Paid salary Rs. 500

Create ledgers of all account

Ex. Capital A/C, Sales A/C, Office Furniture A/C etc….

Sl. Type of
No Key Voucher Ledger Group account Principles Amount
Cr. Capital Capital account Personal Giver 10,000
1 F6 Receipt Dr. Cash Cash in hand Real Comes in 10,000
Cr. Cash Cash in hand Real Goes out 15,000
2 F4 Contra Dr. Bank Bank account Real Comes in 15,000
Dr. Office
furniture Fixed asset Real Comes in 3,000
3 F5 Payment Cr. Cash Cash in hand Real Goes out 3,000
Dr. Cash Cash in hand Real Comes in 2,500
4 F8 Sales Cr. Sales Sales account Real Goes out 2,500

Cr. X Sundry creditor Personal Giver 2,000

Purchase
5 F9 Purchase Dr. purchase Account Real Comes in 2,000
Dr. Y Sundry debtors Personal Receiver 3,000
6 F8 Sales Cr. Sales Sales account Real Goes out 3,000
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Cr. Y Giver 2,000
7 F6 Receipt Dr. cash Cash in hand Real Comes in 2,000
Dr. X Receiver 1,000
8 F5 Payment Cr. Cash Cash in hand Real Goes out 1,000
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Credit all
Cr. Commission Indirect income Nominal income 50
9 F6 Receipt Dr. cash Cash in hand Real Comes in 50
Cr. Interest on Credit all
bank deposit Indirect income Nominal income 100
10 F6 Receipt Dr. Bank Bank account Real Comes in 100
Cr. Cash Cash in hand Real Goes out 1,000
11 F4 Contra Dr. Bank Bank account Real Comes in 1,000
Dr. Indirect Debit all
Advertisement expenses Nominal expenses 500
12 F5 Payment Cr. Cash Cash in hand Real Goes out 500
Cr. Cash Cash in hand Real Goes out 800
Dr. purchase Purchase
13 F9 Purchase Cr cash account Real Comes in 800
Dr. cash Cash in hand Real Comes in 1,500
14 F8 Sales Cr. Sales Sales account Real Goes out 1,500
Debit all
Dr. salary Indirect expense Nominal expenses 500
15 F5 Payment Cr. Cash Cash in hand Real Goes out 500

Lab Assignment No.1:-

Create a company ‘InfoSoft Pvt. Ltd.’ on 1-4-2023. Pass the Journal Entry for the following transactions:-
Commenced business with Rs. 15000, goods of Rs. 3000 & Building Rs. 12000.
Purchase goods for Rs. 1000.
Sold goods to Pallavi for Rs. 15000.
Sold goods for Rs. 2000.
Paid office rent Rs. 200.
Paid cash to Dhanashi Rs. 500.
Received Commission Rs. 100.
Returned goods by Pallavi of Rs. 150.
Withdrawn Rs. 2000 for personal use.
Purchase Furniture for Rs. 10000.
Borrowed from Bank Rs. 8000.
Paid carriage on behalf of Sudesh Rs. 30.
Sold Building of Rs. 8000 for Rs. 7500.
Depreciation charged on all the assets @ 5% p.a.
Repaid loan to bank Rs. 3400.
Goods purchase from Kanji worth Rs. 1500.
Purchase Motor Car worth Rs. 8000 in exchange of Furniture worth Rs. 10000.
Sold half of the goods purchase from Kanji to Kalidas, getting profit of Rs. 15 on each Rs. 100.
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Class Room Assignment No.2:-

Create a company ‘M/S Albert & Brothers’ for the year 01.04.2023 and books beginning from 01.05.2023 and pass
the transactions considering the following
May 1
Albert starts business with Rs. 50,000. He opens a bank account and deposits Rs. 20,000.

May 1
Bought furniture for Rs. 5,000, machinery for Rs. 10,000. May 2 Purchased goods for Rs. 14,000.

May 31
Sold goods for Rs. 8,000.
May 31
Purchased goods from Malhotra & Co. Rs. 11,000. June 1 Paid telephone rent for the year by cheque Rs. 500.

June 1
Bought one typewriter for Rs. 2,100 from ‘Universal Typewriter Co.’ on credit. June 2 Sold goods to Keshav
Ram for Rs. 12,000.

July 1
Sold goods to Rajesh Kumar for Rs. 2,000 cash.

July 1
Amount withdrawn from bank for personal use Rs. 1,500.

July 2
Received cash from Keshav Ram Rs. 11,900 and discount allowed Rs. 100.

July 31
Paid into bank Rs. 5,800.

July 31
Bought 50 shares in X Y & Co. Ltd. At Rs. 60 per share, brokerage paid Rs. 20.

Aug 1
Goods worth Rs. 1,000 found defective were returned to Malhotra & Co. and balance of the amount due to them
settled by issuing a cheque in their favour.

Aug 1
Sold 20 shares of X Y & Co. Ltd. at Rs. 65 per share, brokerage paid Rs. 20.

Aug 2
Bought goods worth Rs. 2,100 from Ramesh and supplied them to Suresh at Rs. 3,000.

Aug 2
Suresh returned goods worth Rs. 100, which in turn were sent to Ramesh.

Aug 31
Issued a cheque for Rs. 1,000 in favour of landlord for rent .

Aug 31
Paid salaries to staff Rs. 1,500 & received from travelling salesman Rs. 2,000 for goodssold by him, travelling
expenses Rs. 100.
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Lab Assignment No. 2:-
Create a Company by name “Khanna Sons” for the year 2023-24, prepare following ledgers and pass
necessary entries
Commenced business with cash Rs.10, 000, as on 1/4/2023
Deposit into bank Rs. 15,000 on 2/4/2023
Bought office furniture Rs.3,000 on 2/4/2023
Sold goods for cash Rs.2,500 on 1/5/2023
Purchased goods form Mr X on credit Rs.2,000 on 2/5/2023
Sold goods to Mr Y on credit Rs.3,000 on 31/5/2023
Received cash form Mr. Y on account Rs.2,000 on 1/6/2023
Paid cash to Mr X Rs. 1,000 on 2/6/2023
Received commission Rs. 50 on 2/6/2023
Received interest on bank deposit Rs. 100 on 1/7/2023
Paid into bank Rs. 1,000 on 2/7/2023
Paid for advertisement Rs.500 on 31/7/2023
Purchased goods for cash Rs. 800 on 1/8/2023
Sold goods for cash Rs. 1,500 on 2/8/2023
Paid salary Rs. 500 on 31/8/2023
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Inventory
Inventory
Inventory or stock refers to the goods and materials that a business holds
for the ultimate goal of resale, production or utilization.
Stock Group
It is the way to classify goods based on common attributes.
Stock Categories
Stock categories are a way to classify stock items based on similar features.
Unit of measures
Used to measure the goods that how many/much goods are there?
Two types of unit in tally prime: -
1. Simple: - Simple units are units that are used to receive and issue stock items. Examples of
simple units include: Nos (numbers, KG (kilogram, PCS (pieces, LT (liter.
2. Compound: - Compound units are a combination of two simple units. For example, a compound
unit for speed might be meters per second (m/s).
Stock Items
It is goods thatt a company manufactures or trades.

How to enable inventory?

During company creation we can enable the inventory option.
After creation of company press F11  enable/yes the inventory.

Create stocks in tally prime

Create stock groups, categories, units, stock items.
Stock group
Gateway of tally  Create  Inventory  Stock group
Ex. Electronic
Unit
Gateway of tally  Create inventory
inventory units
Ex. PCS(Pieces)
Symbol = PCS
Formal Name = Pieces
Stock Items
Gateway of tally  create  inventory  Stock items  create stock items
Ex. Air Conditioner
Under = Electronic
Units = PCS
Stock Group
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Unit

Stock Items
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Batch Wise Details

Batch-wise
wise details are used to track inventory in batches or lots. They can be used to monitor the date of
manufacture, date of receipt, or the expiry date.
Batch-wise
wise details are useful for perishable goods like medicines, sea
sea-food,
food, dairy products, fruits,
vegetables, flowers, and meat.

To use batch wise details

Press F11 Enable Batches  Yes Maintain Expiry date for Batches  Yes  Accept & Save

Create stock Item

Maintain in Batches  Yes  Track date of manufacturing  Yes  Use Expiry Date  Yes

 Track Date of manufacturing: - To track expiry date when

n we use item in voucher.
 Use Expiry Date : - To set expiry date during voucher entry.
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Create voucher of Batched Items

Ex. I am purchasing keyboard whose batch no. is
Batch No. : - KBD-101
101
Mfg Date : - 2-May-2022
2022 Expir
Expiry : - 2-May-2025

During Purchasing type batch no., mfg date, expiry date

After selecting item,
New Number Type Batch Number  type Qtyrate Mfg Date Expiry DateAccept
Date

Batch wise purchase Transaction

Create Medical Company

Purchase Transaction Batch Wise

Details
Bill
No Party Names Batch Item Names Categories Mfg Date Exp Date Quantity Rate
Per0421 Peracetamo Fever 01-04- 01-09-23
01 12 Box 55 Rs
l 21
1 Surya Medical Cit0421 Citrem Fever 01-04- 01-04-22
01 50 Box 60 Rs
Store Plus 21
Cro0421 Crocin Painkiller 01-04- 01-11-24
01 20 Box 30 Rs
 Page 27 of 54
21
Fab0421 Fabi Flu Fever 01-04- 01-08-24 15 Box 40 Rs
21

Pan0421 Panadol Painkiller 01-04- 01-04-24 30 Box 39 Rs

21
2 Sona Medical Gof0421 Gofen 400 Fever 01-04- 01-04-24 50 Box 45 Rs
Store 21
Asp0421 Aspirine Painkiller 01-04- 01-04-22 60 Box 65 Rs
100 21
Ben0421 Benadryl Cough 01-04- 01-04-22 15 Syp 78 Rs
21

3 Sun Medical Cof0421 Cofsils Cough 01-04- 01-10-25 20 Syp 112 Rs

Store 21
Cor0421 Corex Cough 01-04- 01-04-22 50 Syp 98 Rs
21
Cro0521 Crocin Painkiller 01-05- 01-04-22 20 Box 30 Rs
21
Fab0521 Fabi Flu Fever 01-05- 01-04-22 15 Box 40 Rs
21

Pan0621 Panadol Painkiller 01-06- 01-04-24 60 Box 39 Rs

4 Ali Medical 21
Store
Gof0621 Gofen Fever 01-06- 01-04-24 15 Box 45 Rs
400 21
Asp062 Aspirine Painkiller 01-06- 01-04-22 50 Box 65 Rs
1 100 21
Ben062 Benadryl Cough 01-06- 01-04-22 10 Syp 78 Rs
1 21

Shree Medical Per0721 Peraceta Fever 01-07- 01-10-25 20 Box 55 Rs

5 Agency mol 21
Cit0721 Citrem Fever 01-07- 01-04-22 45 Box 60 Rs
Plus 21
Cro0721 Crocin Painkiller 01-07- 01-04-22 10 Box 30 Rs
21
Fab0721 Fabi Flu Fever 01-07- 01-04-22 20 Box 40 Rs
21

Cof0821 Cofsils Cough 01-08- 01-03-24 80 Syp 112 Rs

21
6 Jeff Medical
Agency
Cor0721 Corex Cough 01-07- 01-06-25 90 Syp 98 Rs
21
Cro0521 Crocin Painkiller 01-05- 01-05-23 50 Box 30 Rs
21
Fab0821 Fabi Flu Fever 01-08- 01-01-22 90 Box 40 Rs
21
Cit0821 Citrem Fever 01-08- 01-11-23 50 Box 60 Rs
Plus 21
 Page 28 of 54
Per0721 Peraceta Fever 01-07- 01-06-22 50 Box 55 Rs
mol 21

Cit0921 Citrem Fever 01-09- 01-10-25 50 Box 60 Rs

7 Abbas Medical Plus 21
Store
Ona092 Onabet Itch Cream 01-09- 01-04-22 100 15 Rs
1 21 Crm
Fab0921 Fabi Flu Fever 01-09- 01-04-22 10 Box 40 Rs
21
Neo092 Neospori Itch Cream 01-09- 01-04-22 15 Crm 45 Rs
1 n 21

1000
Hea0421 Healthka Multivitami 01-04- 01-05-24 Cps 2.5 Rs
Surya Medical rt n 21
8 Agency
1500
Mac042 Mactotal Multivitami 01-04- 01-04-24 Cps 2 Rs
1 n 21
Cro0421 Crocin Painkiller 01-04- 01-11-22 20 Box 30 Rs
21
Rev0421 Revital Multivitami 01-04- 01-02-22 100 10 Rs
n 21 Cps
Neo042 Neospori Itch Cream 01-04- 01-12-22 15 Crm 45 Rs
1 n 21

Cof1021 Cofsils Cough 01-10- 01-03-24 80 Syp 112 Rs

21
9 Zama Medical
Agency
Cor1021 Corex Cough 01-10- 01-06-25 90 Syp 98 Rs
21
Cro1021 Crocin Painkiller 01-10- 01-05-23 50 Box 30 Rs
21
Fab1021 Fabi Flu Fever 01-10- 01-01-22 90 Box 40 Rs
21
Rev1021 Revital Multivitami 01-10- 01-11-23 80 Cps 10 Rs
n 21
Cit1021 Citrem Fever 01-10- 01-06-22 45 Box 60 Rs
Plus 21

Zin0821 Zincovit Multivitami 01-08- 01-09-23 150 3.5 Rs

n 21 Tab
10 Lucky Medical
Store
46.70
Ket0821 Ketorol Pain Cream 01-08- 01-10-22 35 Crm Rs
Gel 21
Gof0621 Gofen Fever 01-06- 01-09-24 20 Box 45 Rs
400 21
Asp112 Aspirine Painkiller 01-011- 01-04-24 55Box 65 Rs
1 100 21
 Page 29 of 54
BOM (Bill of Material)
BOM
It is specially used for manufacturing company to assemble the goods.
A bill of materials (BOM)
OM) is an extensive list of raw materials, components, and
instructions required to construct, manufacture, or repair a product or service. A bill of
materials (BOM) is a centralized source of information used to manufacture a product.
Assembling/To create Finished goods from raw material
 Firstly create item of raw material and purchase it, then create stock item which
will be finished goods.
 For manufacturing, I am assembling computer which requires these raw
materials thus firstly purchase that raw mater
materials
After creating of all raw material, create stock item/product which is
assembling.
I am assembling computer, thus I will create Computer item.
Create Stock item press F12 for BOM  Yes
Gateway 0f TallyCreate
Create and purchase all raw materials

Enabling BOM in Stock Item Screen

 Page 30 of 54
After enable accept
Stock ItemBOM yes
yesName of BOM computerunit
unit of Manufacturing 1 select
all raw material require for 1 finished goods.
Name of BOM/Product Select Raw Material for manufacture 1 finished goods

After creating manufacturing product, assemble the product and create

finished goods
Steps to create finished goods
 Create voucher Type Name  Manufacturing Journal Select Type of Voucher
Voucher
Stock Journal Use as a manufacturing journ
journalYes
Voucher Type
 Page 31 of 54
After created voucher type
Create voucher
Gateway of tallyvoucher
voucher Alt + F7 Manufacturing JournalName
Name of finished goods
Qty

 Name of Product:- Name of finished goods/product.

 Qty: - How many product/item you want to assemble/create/manufacture.

 Name of item: - Raw materials needed for assemble the product. It will be automatically selected
because we have previously mentioned that how many and which material is required to
create/assemble finished
ished goods during creating BOM.

 Co-Product/By-Product/Scrap: - list of raw materials which is scrapped.

 Cost of components: - Cost of any labour/employee, room rent any other expenses rather than raw
materials, wages, electricity etc to assemble the finis
finished product. It can be by % or we can
directly write amount.
 Effective rate of primary item: - Rate of product per item.
To display finished goods/product
Gateway of tallyReportsStock Summary
 Page 32 of 54
Price List
Price List
A price list in Tally Prime is a list of all items an organization maintains, along with their price
details. Price lists are useful for orders and invoices. They help in decision-making and quicken
the sales process.
We can set customer and retailer price separately so that during selling, we don’t need to specify
the rate separately. It will calculated automatically as price list.

To create price list firstly we have to create stock item

Create stock Group
After creating group Press F11  Enable multiple price level  Yes Accept

Enabling Price Level

Now, we have to create price level

Gateway of tally Masters Create Inventory MastersPrice Level
Type Price level like, Retailer and customer Accept
 Page 33 of 54
Now create Price List (Stock Group)
Gateway of Tally Masters Create  inventory masters Price List(Stock Group)Select
Stock Group or All items Select Customer or Retailer

Set price lever for customer

Ex. Computer price
Less than 5 PCS Rate 58000  Discount 1%
Greater than 5 less than 10 Rate57000 Discount 1%.
Greater than 10 less than 25  Rate55000Discount 2%
Greater than 25 and less than 50  Rate 50000 Discount2%
Greater Than 50 Rate 49000Discount Nil

Set price lever for Retailer

Less than 5 PCS Rate 50000  Discount 1%
Greater than 5 less than 10 Rate49500 Discount 1%.
Greater than 10 less than 25  Rate49000Discount 2%
Greater than 25 and less than 50  Rate 48000 Discount2%
Greater Than 50 Rate 47000Discount Nil
 Page 34 of 54

Now, sale item and select price level as retailer or cu

customer
Gateway of tally Transaction  Voucher F8 for sale

Select Party a/c name or Cash  Select price level Sales ledger Select items
 Page 35 of 54
Stock Journal
Stock Journal
It is used to keep goods in different locations/Godown
Create Godowns
Gateway of tally Masters create Inventory Godowncreate new

Create godowns
Godown Name Under
Delhi Clothes Godown Primary
Lucknow Computers Godown Primary
Meerut Confectionery Godown Primary
Agra Electronics Godown Primary
Goa Footwear Godown Primary
Ajmer Fruits Godown Primary
Mumbai Mobiles Godown Primary
Muzaffarnagar Provision Godown Primary
Kumargarh Stationery Godown Primary
Kanpur Tools Godown Primary
Himachal Vegetables Godown Primary
 Page 36 of 54

For transfer goods/Items

ems from one location to another
Gateway of Tally> Voucher > F10 (other Vouchers) Alt+F7 (Stock Journal)

 Source is the location from here we want to transfer goods/items

 Destination is the location where we want to transfer goods/items
 Page 37 of 54
Debit and Credit Note
Debit Note (Purchase Return)
It is created when purchaser want to return goods. If we purchase
goods and if that goods is damaged then we have to return goods.
At that time, we have to create Debit Note Voucher.
Debit note is created when: -
 When there is a return of goods or services after the purchase.
 When a discount is allowed on goods or services after the
purchase.
 When there is a deficiency in services (like a quality issue) after
purchase.
 When there is a change in the invoice raised that leads to a
change in the tax amount.
Credit Note (Sales Return)
A sales return is when a customer returns a product to the seller for a refund.

Purchase Return (Debit Note)

Gateway of Tally>Vouchers>Debit Note (Alt+F5)
 Date : 2-4-2022 (Press F2 Change Date)
 Party Name
 Party Details
 Purchase Ledger
 Name of Item
 Qty
 Rate
 Accept voucher

Purchase Return (Debit Note)

Gateway of Tally>Vouchers>Credit Note (Alt+F6)
 Date
 Party Name
 Party Details
 Sales Ledger
 Name of Item
 Qty
 Rate
 Accept voucher
 Page 38 of 54
GST (Good and Service Tax)
GST
GST is known as the Goods and Services Tax. It is an indirect tax which
has replaced many indirect taxes in India such as the excise duty, VAT,
services tax, etc. The Goods and Service Tax Act was passed in the
Parliament on 29th March 2017 and came into effect on 1st July 2017.

Components of GST
1. CGST: - (Central Goods and Service Tax)
Tax collected by the central govt. on an intra-state sale (Within a state).
2. SGST: - (State Goods and Service Tax)
Tax collected by the state govt. on an intra-state sale (Within a state).
3. IGST: -(Integrated goods and service tax)
Collected by central govt. for inter-state sale (Outside the state ex. Delhi to
Maharashtra).
4. UTGST: - (Union Territory Goods and Services Tax)
For Union Territory states
Before GST

Included in GST
At central Level
 Central Excise Duty
 Service Tax
 Additional Custom Duty
 Special Additional Duty of Customes
 Page 39 of 54
At State Level
 VAT/Sales Tax
 Entertainment Tax
 Luxury Tax

GST Slab Rates

Tax Rates Products

Milk, Eggs, Education Services, Curd, Health Services, Lassi, Children’s Drawing &
Colouring Books, Unpacked Foodgrains, Unbranded Atta, Unpacked Paneer,
0%
Unbranded Maida, Gur, Unbranded Natural Honey, Fresh Vegetables, Palmyra
Jaggery, Salt

Sugar, Tea, Edible Oils, Domestic LPG, Roasted Coffee Beans, PDS Kerosene,
Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, Apparels (< Rs.1000),
5%
Fabric, Coir Mats, Matting & Floor Covering, Spices, Agarbatti, Sweets, Life-saving
drugs, Coffee (except instant)

Butter, Ghee, Processed food, Almonds, Fruit Juice, Fruits, Nuts, Pickles, Chutney,
12%
Jam, Jelly, Packed Coconut Water

Hair Oil, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Corn
18%
Flakes, Soups, Computers, Printers, Electrical & Electronics Items except some items

Small cars (+1% or 3% cess), Luxury & sin items like BMWs, cigarettes and aerated
28%
drinks (+15% cess), High-end, Air Conditioner, 32 Inch TV, Washing Machine etc

Advantages of GST
 easy compliance
 Transparency in Tax Payers and Taxes
 Uniformity in tax rates and structures
 reduce prevalence
 Higher fiscal efficiency (due to tax increase)
 Page 40 of 54

Exempt Supply Non-GST Activity

Zero Rated Supply

These supplies are taxable as per the These supplies are not
The rate of tax as per
Meaning GST act but are particularly exempted under the purview of GST
the GST act is ‘0’.
from GST. law.

ITC
Available Not Available Not Available
Availability

Alcohol for human

Supplies made to SEZ Fresh milk, fruits and vegetables, curd,
Example consumption, petroleum
or SEZ Developers bread, meat etc.
products, etc.

Items which not include in GST

 Petrol, high-speed diesel, aviation turbine fuel, crude oil.
 Electricity
 Alcohol used for human consumption
 Natural Gas
 Etc…….

GST Business Registration Types

Businesses are registered under 3 types of categories in GST

1. Composition: - A composition dealer has to issue a Bill of

Supply. They cannot issue a tax invoice. This is because the
tax has to be paid by the dealer out of pocket. A composition
dealer is not allowed to recover the GST from the customers.
The composition scheme is meant for small businesses whose
turnover of taxable goods not more than ₹1.5 crores, where GST
must be borne by the seller @ 1% of such turnover by Traders &
@2% by Manufacturers.
Limitation of Composition Dealer
 No Input Tax Credit can be claimed
 No inter-state supply of goods can be done
 No GST exempted goods can be supplied

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 Page 41 of 54
 As per the composition scheme rules, tax need to be paid at
normal GST rates for transactions under Reverse Charge
Mechanism

 If a taxable person has multiple segments of businesses under

the same PAN, they must all collectively opt for or opt out of the
composition scheme
 The words ‘composition taxable person’ must be displayed
prominently on every notice or signboard at the place of
business
 As per the composition scheme bill format, the words
‘composition taxable person’ must be displayed prominently
on every bill of supply which is issued

GST Invoice Format for Composition Scheme

a) Name, address and GSTIN of the supplier
b) a consecutive serial number not exceeding sixteen characters, in one or
multiple series, containing alphabets or numerals or special characters
c) date of its issue
d) name, address and Goods and Services Tax Identification Number or
Unique Identity Number, if registered, of the recipient
e) Harmonised System of Nomenclature Code for goods or services
f) description of goods or services or both
g) value of supply of goods or services or both after considering discount
or abatement, if any; and
h) a signature or digital signature of the supplier or his authorised
representative

2. Regular Dealer: - Regular GST is one type of registration under

GST. Every supplier of goods or services must obtain registration in the
state or union territory from where he makes the taxable supply if his
aggregate turnover exceeds the specified threshold limit in a financial
year. If turnover is more than 1.5 crore in a year than that business have
to register with Regular Dealer. They can issue Tax Invoice Bill.
Tax invoice Format contain
 Invoice number and date
 Customer name
 Shipping and billing address
 Customer and taxpayer’s GSTIN (if registered)**
 Place of supply
 HSN code/ SAC code
 Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
 Taxable value and discounts
 Rate and amount of taxes i.e. CGST/ SGST/ IGST
 Whether GST is payable on reverse charge basis
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 Page 42 of 54
 Signature of the supplier

3. Un-Registered: - Persons whose aggregate turnover in a financial year does not

exceed forty lakh rupees are not required to be registered with the GST
authorities. Such persons are called unregistered vendors. Any purchases from
unregistered vendors do not attract GST.

Un-registered dealer cannot issued a TAX INVOICE. Such

unregistered dealer can issue bill / cash memo but cannot charge
GST from its customers.
4. Consumer: - They are customers who pay the real tax.

Structure of GST
GSTIN
09AYLPS4851N1ZH
09 = State code (UP)
AYLPS4851N = PAN No.
1ZH = Unique code by GST

You can download the following reports required for filing GST returns.
Display Statutory Report GST
GSTR1 : - Sales Details
GSTR2 : - Purchase Details
GSTR3B: - Consolidated details of sales and purchase

For GST in Tally prime

Enable GST
Press F11 GST Yes Fill GST Details

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 Page 43 of 54

Now Create Stock Items and applicable G

GST
ST and Fill HSN and GST Rates

Calculation Type: - On value or On item Rate

Taxability: - Taxable
Rate of GST

Taxability
1. Exempt: - Exempt supply” means supply of any goods or services
or both which attracts nil rate of tax or which may be wholly exempt
from tax under section 11, or under section 6 of the Integrated
Goods and Services Tax Act, and includes non non-taxable supply.
2. Nil Rated: - Nil rated supply is the supply which is
chargeable to nil rate of tax or 0% of tax
tax.
3. Taxable: - Taxable
axable supply has been broadly defined and
means any supply of goods or services or both which, is
leviable to tax under the Act.
4. Unknown: - For unknown supplies

Now create CGST, SGST, IGST Ledgers

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 Page 44 of 54

Now purchase/Sale goods

s for GST Calculation

Gateway Of Tally Voucher

Voucher Sales Voucher

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 Page 45 of 54

Sales Tax Invoice

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 Page 46 of 54
HSN / SAC Code in Inventory

HSN(Harmonised System of Nomenclature)

It is used to classifying the goods under GST
GST.

SCA(Services Accounting Code

It is Used to classify services in GST
GST.

Enable HSN/SAC
Create Stock Item GST
GST yes F12 HSN Yes

GST Reports
Gateway of TallyDisplay
Display more reports
reports Statutory Report GST Report
GSTR1 for Sales
GSTR2 for Purchase
GSTR3B for sales/purchase consolidated report

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 Page 47 of 54
TCS and TDS
TCS (Tax collected at Source)
Tax collection at source (TCS
(TCS) is an additional amount collected
as tax by a seller of specified goods from the buyer at the time of
sale over and above the sale amount and is remitted to the
government account.
Section 206 of the Income Tax Act mentions the list of goods on
which the seller should collect tax from buyers.
In excess of determined amount, TCS will be charged for ex.
In Excess of Rs. 200000 jewelry than 1% TCS will be
charged.
Goods & Transactions Covered under TCS Provisions?
The following goods and/or transactions are considered for Tax Collected at Source –
 Liquors of alcoholic nature including IMFL (Indian Made Foreign
Liquor) that are deemed for human consumption
 Timber wood obtained from a leased forest area
 Tendu Leaves
 Timber wood obtained from any mode other tha than leased
 Forest produces (other than timber and Tendu leaves)
 Scrap
 Parking lot tickets, Toll Plaza, Mining and Quarrying
 Minerals that include iron ore, lignite or coal
 Bullion having valuation over Rs. 2 lakh
 Jewellery whose value exceeds Rs. Five lakhs
 Motor vehicle purchases over Rs. 10 Lakhs
TCS Rates Applicable

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 Page 48 of 54

Note:
 If the payer does not furnish PAN/Aadhaar to TCS collector
then rate of TCS is double or 5% whichever is higher for Sl.
No. 1 to 10 and for Sl. No. 11 it is 5%.
 With effect from 01.07.2021 if the payer (other than
Non-resident
resident who does not have Permanent
Establishment in India) and has not filed the IT Return
for last 2 Assessment Years, TCS rate is double or 5%
whichever is higher.

Payee Status and Charge

harge

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 Page 49 of 54

Enable TCS in Tally Prime

Press F11 TCS
TCS Yes Fill TCS Details

Create TCS Ledger

Gateway of tallyCreateL
Ledger Name TCSunder Duties and d
Taxestype of duty/tax TCSNa ature of goodsCreate Type nature of go
oods
and section/payment code

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 Page 50 of 54

Then Create/Alter Sales Ledger and applicable TCS

In Debtors ledger, Enable TCS and select Payee Type

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 Page 51 of 54
Create sales voucher

Assignment No. 3:- TCS (Tax Collected at Source) & Service

16B

Tax
Tax has to be collected at source by the seller, while debiting the amount payable by the buyer to buyer’s
account (or) at the time of receipt of such amount from the buyer in cash or by issue of cheque / draft or by
any other mode, whichever is earlier. The rate of tax should be applied as a percentage on the purchase
price. Within 10 days from the date of debit or receipt of the amount, the person collecting tax should issue
a certificate of tax collected. The Certificate shall be in Form No.27D.
1. Open Previous TDS Company Created (Alter to Account with Inventory) (Change the period to
2005-2006 at gateway of tally)
2. Press F11F3  Enable TCS (Yes)
 Set/Alter TCS details (Yes)
Creation of TCS Ledger A/c
For TCS you create the TCS Ledger A/c on which the tax has been collected. At TCS Ledger creation
screen enter the following details :
a. Name : TCS on Scrap Sale
b. Under : Duties & Taxes
c. Type of Duty/Tax : TCS
d. Nature of Goods… : Scrap
e. Inventory Values… : No
Creation of Party Ledger A/c
You must create the Party Ledger from whom TCS is collected. At the Party Ledger creation

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 Page 52 of 54
screen enter the following details :
a. Name : Roy Enterprises
b. Under : Sundry Debtors
c. Maintain balance… : Yes
d. Inventory Values… : No
e. Is TCS Applicable : Yes
Buyer/Lessee : Body of Individuals
Is Lower /No Collection Applicable ? No
Ignore Surcharge Exemption Limit ? Yes
(Note:- (1) Select the Buyer / Lessee Type from the list. (2) Is Lower /No Collection Applicable : If this field
is set to Yes then the exemption is applicable.)
Creation of Sales Ledger
a. Name : Scrap Sales
b. Under : Sales Account
c. Inventory Values… : Yes
Creation of Stock Item
a. Name : Scrap
b. TCS Nature of Goods : Scrap
c. Under : Primary
d. Units : Ton
Pass the following entries for TCS
1. Sold scrap 10 tons at 1200/- to Roy Enterprises on 2/4/05
Entry to be passed in Sales invoice mode.
2. Received total amount from Roy Enterprises on 1/5/2005, after deducting 3.5% discount by
cheque.
3. Paid TCS by cheque on 2/5/05
(Note:- Use TCS helper for calculating TCS amount)
TCS Report
Display > Statutory Report > TCS Report
There are three types of Statutory Reports 1) Print Form 27D. 2) Print Form 27B. 3) ETCS
Forms.

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 Page 53 of 54

Lab Assignment No. 3:- (TCS)

17B

Tax Collected at Source

Gateway of TallyClick on the F11: F
3
Set Enable TCS to Yes
Set/Alter Details Yes
Tax Assessment Number : BLRM00123A
Income Tax Circle/Ward (TCS) : Wards
Deductor Type : Others
Name of person responsible : Mr. Nair
Designation : Account Manager

Gate of TallyAccounts InforLedgersCreate

Ledger 1
Name : TCS on Timber Leaves
Under : Duties & Taxes
Type of Duty/Tax : TCS
Nature of Payment ; Timber obtained under forest lease
Ledger 2
Name : Agarwal Timber Plant
Under : Sundry Debtors
Maintain balance bill… ? Yes
Is TCS Applicable ; Yes
Deductee Type : Individula/HUF – Non Resident
Ignore surcharge Exemp… : Yes

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Gateway of Tally:-
Pass the necessary entries for TCS
1) Sold Timber leaves to Agarwal Timber Plant at Rs. 5,00,000/-, Charged the TCS on same.
2) Agarwal Timber paid the amount of 5,00,000/- plus TCS.
3) Payment done through bank for TCS collected from Agarwal Timber Plant

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