Basic Accounting Software

(Using Tally.ERP9)

PRACTICAL FILE
Submitted for partial fulfillment for the award of the Degree of
BACHELOR OF COMMERCE
(B.COM (H) 2023 - 2026)
Under the supervision of
Dr. Apoorva Jain
Submitted by
NAME- SHARDUL THAKUR
ENROLLMENT NO. – 07229888823

SCHOOL OF BUSINESS STUDIES

VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES
(Affiliated to Guru Gobind Singh Indraprastha University)
 INDEX

UNIT 1

1. INTRODUCTION TO ACCOUNTING
2. DIFFRENCE BETWEEN BOOK KEEPING AND ACCOUNTING
3. TYPES OF ACCOUNTS
4. RULES OF GENERAL ENTRIES
5. TRIAL BALANCE

UNIT 2

1. INRODUCTION TO TALLY
2. INTRODUCTION TO TALLY.ERP 9
3. SAILENT FEATURES OF TALLY. ERP 9
4. FUNCTIONAL FEATURES OF TALLY.ERP 9
5. TECHNOLOGICAL ADVANTAGES OF TALLY.ERP 9
6. TALLY SCREEN COMPONENTS
7. CREATION OF CAMPANY IN TALLY.ERP 9
a. FEATURES
b. CONFIGRATION
8. INTRODUCTION TO ACCOUNTING GROUPS
a. GROUP CREATION
b. GROUP ALTREATION
c. GROUP DISPLAY
d. GROUP DELETION
 9. INTRODUCTION TO ACCOUNTING LEDGERS
a. LEDGER CREATION
b. ALTERATION
c. DISPLAY
d. EXERCISE ON LEDGER CREATION WITH SS
10. INTRODUCTION TO ACCOUNTING VOUCHER
a. LAB EXERCISE ON ACCOUNTING VOUCHER WITH SS
b. DAY BOOK
c. RANGE

UNIT 3

1. Bank reconciliation statement

a. LAB EXERCISE OF BRS
2. BACKUP AND RESTORE
3. EXPORT AND IMPORT
a. Export of data in multiple formats
b. Import of data from XML format
4. SECURITY CONTROL
a. Setting of password while creating a new company
b. Setting up access control for different users INTRODUCTION TO
ACCOUNTING

Accounting is the systematic process of recording, measuring, and communicating financial

information about an organization. It provides a framework for understanding financial
performance and position, helping stakeholders make informed decisions.

Key Components of Accounting:

1. Recording:
o This involves documenting financial transactions in a systematic manner using
journals and ledgers. Each transaction must be recorded accurately to maintain the
integrity of financial data.
 2. Classifying:
o After recording, transactions are classified into different categories (e.g., assets,
liabilities, income, expenses) for better organization and analysis.
3. Summarizing:
o The classified data is then summarized into financial statements such as the Income
Statement, Balance Sheet, and Cash Flow Statement, providing an overview of the
organization's financial health.
4. Interpreting:
o This involves analyzing the summarized data to provide insights into the
organization’s financial performance. Ratios and other analytical tools are often
used for this purpose.
5. Communicating:
o The final step is to communicate the financial information to stakeholders (e.g.,
management, investors, creditors) through reports and statements.

Importance of Accounting:

• Informed Decision-Making: o Provides essential information for strategic planning

and operational decisions.
• Financial Management:
o Helps in managing finances, tracking expenses, and budgeting.
• Regulatory Compliance:
o Ensures adherence to legal and regulatory requirements related to financial
reporting.
• Performance Evaluation:
o Facilitates the assessment of an organization’s financial performance and
efficiency.
• Stakeholder Communication:
o Enhances transparency and trust among stakeholders by providing accurate
financial information.
In summary, accounting is a vital discipline that plays a critical role in the financial health and
sustainability of businesses and organizations. It not only aids in compliance and regulation but
also empowers management with the insights needed for strategic decision-making.

DIFFRENCE BETWEEN BOOK KEEPING AND ACCOUNTING

Bookkeeping and accounting are both essential components of the financial management process,
but they serve different purposes and involve different tasks. Here are the key differences between
the two:

1. Definition:

• Bookkeeping: Refers to the systematic recording of financial transactions and maintaining

financial records. It focuses primarily on the day-to-day financial activities of a business.
• Accounting: Involves the interpretation, analysis, and summarization of financial data
recorded through bookkeeping. It provides insights into financial performance and helps
in decision-making.

2. Scope:

• Bookkeeping: Primarily concerned with recording financial transactions (e.g., sales,

purchases, receipts, payments) and maintaining ledgers.

• Accounting: Encompasses a broader scope that includes bookkeeping, preparation of

financial statements, budgeting, financial analysis, and reporting.

3. Purpose:

• Bookkeeping: The main purpose is to maintain accurate and up-to-date financial records
for the business, ensuring all transactions are documented.
• Accounting: The purpose is to analyze the financial data to provide insights, prepare
reports, ensure compliance with regulations, and inform strategic decisions.

4. Process:
 • Bookkeeping: Involves routine tasks like recording transactions, categorizing them, and
updating ledgers.
• Accounting: Involves more complex processes such as preparing trial balances, financial
statements, and conducting audits.

5. Outcome:

• Bookkeeping: Results in a complete record of financial transactions that can be used for
reference.
• Accounting: Results in financial statements (like income statements, balance sheets, and
cash flow statements) that summarize the financial health of the business.

6. Skills Required:

• Bookkeeping: Requires attention to detail, organization skills, and a basic understanding

of financial concepts.
• Accounting: Requires a deeper understanding of accounting principles, analytical skills,
and often requires formal education and certification (e.g., CPA).

TYPES OF ACCOUNTS

In accounting, accounts are categorized based on their nature and purpose. Understanding the
different types of accounts is essential for accurate financial reporting and analysis. Here are the
main types of accounts:

1. Real Accounts (Permanent Accounts):

These accounts are related to assets and liabilities that are not closed at the end of the accounting
period and carry their balances forward.
 • Asset Accounts: Represent resources owned by the business. o Examples: Cash,
Accounts Receivable, Inventory, Land, Buildings, Equipment.
• Liability Accounts: Represent obligations owed to external parties.
o Examples: Accounts Payable, Loans Payable, Accrued Liabilities.
• Equity Accounts: Represent the owner’s interest in the business.
o Examples: Common Stock, Retained Earnings, Additional Paid-In Capital.

2. Nominal Accounts (Temporary Accounts):

These accounts are related to income, expenses, gains, and losses, and are closed at the end of each
accounting period to start with a zero balance in the next period.

• Revenue Accounts: Record income earned by the business from its operations. o
Examples: Sales Revenue, Service Income, Interest Income.
• Expense Accounts: Record costs incurred by the business in its operations.
o Examples: Rent Expense, Salary Expense, Utilities Expense, Cost of Goods Sold
(COGS).
• Gain and Loss Accounts: Record gains or losses from non-operating activities.
o Examples: Gain on Sale of Asset, Loss on Investment.

3. Personal Accounts:

These accounts represent individuals or entities with whom the business has transactions. They
can be either real or nominal accounts, depending on the nature of the transactions.

• Natural Persons: Accounts related to individuals.

o Examples: Customer Accounts, Supplier Accounts.
• Artificial Persons: Accounts related to organizations or entities.
o Examples: Company Accounts, Partnership Accounts.

4. Contra Accounts:
These accounts are used to offset the balance of a related account. They carry a balance opposite
to the normal balance of the account they are related to.

• Examples:
o Accumulated Depreciation (contra asset account that reduces the value of fixed
assets). o Sales Returns and Allowances (contra revenue account that reduces total
sales revenue).

RULES OF GENERAL ENTRIES

The Rules of General Journal Entries in accounting are based on the Double-Entry System,
where every transaction affects two accounts: one is debited, and the other is credited. These rules
are divided into three types based on the classification of accounts: Personal, Real, and Nominal
accounts.

1. Personal Account:

• Debit: The receiver.

• Credit: The giver.

Example: If a business pays rent to a landlord:

• Debit: Rent A/c (the receiver of the rent).

• Credit: Cash/Bank A/c (the business is giving cash).

2. Real Account:

• Debit: What comes in.

• Credit: What goes out.

Example: If you buy machinery for cash:

• Debit: Machinery A/c (machinery is coming into the business).

• Credit: Cash A/c (cash is going out).
3. Nominal Account:

• Debit: All expenses and losses.

• Credit: All incomes and gains.

Example: If the business earns interest on an investment:

• Debit: Cash/Bank A/c (what comes in).

• Credit: Interest Income A/c (income from interest is a gain).

TRIAL BALANCE

A Trial Balance is a financial report that lists the balances of all ledger accounts (both debit and
credit) at a particular date. It is used to verify that the total debits equal the total credits, ensuring
that the accounting entries are mathematically correct and that the books are balanced.

Key Features of a Trial Balance:

1. List of Ledger Balances:

o It includes all the balances from the ledger accounts, categorized as either debit or
credit balances.

2. Debit-Credit Matching:
o The total of the debit column must equal the total of the credit column. If they
match, it indicates that the books are arithmetically correct.
3. Prepared at Period End:
o The trial balance is typically prepared at the end of an accounting period, such as
monthly, quarterly, or annually, as a precursor to preparing the financial statements.
4. Basis for Financial Statements:
o The trial balance serves as a foundation for preparing key financial statements, such
as the Profit and Loss Account and the Balance Sheet.

Purpose of a Trial Balance:

 • Verify Accuracy: Ensures that for every debit entry there is a corresponding credit entry.
• Error Detection: Helps detect errors in the ledger, such as omissions or incorrect postings.
• Financial Reporting: It provides a snapshot of the business’s ledger accounts,
summarizing financial positions before final adjustments.

INRODUCTION TO TALLY
Tally is an accounting software widely used for financial management, bookkeeping, and inventory
management. It is especially popular among small to medium-sized businesses due to its user-
friendly interface and robust features.

INTRODUCTION TO TALLY.ERP 9
Tally.ERP 9 is one of the most widely used financial software. Tally.ERP 9 reports can help a
business owner make informed decisions to increase efficiency, reduce costs, and organize
business operations. With Tally.ERP 9, accurate, up-to-date business information is available at
your fingertips anytime. It provides a Comprehensive solution for the accounting and inventory
needs of a business. It provides the capability to generate fully accurate tax returns in a matter of
minutes and is also capable of extracting, interpreting and presenting financial data. Tally.ERP 9
is the world’s fastest and most powerful concurrent Multi-lingual business Accounting and
Inventory Management software. Tally.ERP 9, designed exclusively to meet the needs of small and
medium businesses, is a fully integrated, affordable and highly reliable software.

Tally.ERP 9 is easy to buy, quick to install, and easy to learn and use. Tally.ERP 9 is designed to
automate and integrate all your business operations, such as sales, finance, purchasing, inventory,
and manufacturing. With Tally.ERP 9, accurate, up-to-date business information is literally at your
fingertips anywhere. The powerful new features and blazing speed and power of Tally.ERP 9
combined with enhanced MIS, Multilingual, Data Synchronization and Remote capabilities help
you simplify all your business processes easily and cost-effectively.
SAILENT FEATURES OF TALLY. ERP 9

A leading accounting package: The first version of Tally was released in 1988 and, through
continuous development, is now recognised as one of the leading accounting packages across the
world, with over a quarter million customers. Tally’s market share is more than 90%.

No accounting codes: Unlike other computerised accounting packages which require numeric
codes, Tally.ERP 9 pioneered the ‘no accounting codes’ concept. Tally.ERP 9 users have the
freedom to allocate meaningful names in plain English to their data items in the system.

Complete business solution: Tally.ERP 9 provides a comprehensive solution to the accounting

and inventory needs of a business. The package comprises financial accounting, book-keeping and
inventory accounting. It also has various tools to extract, interpret and present data.

Integrated/Non-integrated accounting and inventory: With Tally.ERP 9, the user is able to

choose to maintain accounts only. If accounting with inventory is opted for, the user can choose
whether it should be integrated or not. Flexible and easy to use: Tally.ERP 9 is very flexible. It
mimics the human thought process, which means that Tally.ERP 9 can adapt itself to any business
need. Tally.ERP 9 users need not change the way their business is run to adapt themselves to the
package.

Speed: Tally.ERP 9 provides the capability to generate instant and accurate reports, which assist
the management to take timely and correct decisions for the overall productivity and growth of the
company.

Power: Tally.ERP 9 allows the user to maintain multiple companies and with unlimited levels
of classification & grouping capabilities. It also allows drill down facility from report level to
transaction level.

Flexibility: Tally.ERP 9 provides flexibility to generate instant reports for any given period
(month/year) or at any point of time besides providing the facility to toggle between Accounting
& Inventory reports of the same company or between companies.
 Concurrent multilingual capability: Tally.ERP 9 offers you the exclusive capability of
maintaining your accounts in any Indian language, viewing them in another language and printing
them in yet another Indian language.

Real time processing: Immediate posting & updation of books of accounts as soon as the
transactions are entered, thereby facilitating instant statements & Reports. It also faciliates a
realtime multi-user environment.

Versatility: Tally.ERP 9 is suitable for a range of organisations, from small grocery stores to
large corporations with international locations and operations.

Multi-platform availability: Tally.ERP 9 is available on multiple versions of windows. It runs

on a single PC or on a network. On a network, it supports access via any combination of platforms.
Online Help: The Tally.ERP 9

Functional Features of Tally.ERP 9

TECHNOLOGICAL ADVANTAGES OF TALLY.ERP 9
Simple and rapid installation: Tally.ERP 9 has a simple, menu-driven installation proce- dure.
The user can install the program files on any drive if the hard disk has partitions. The user can
also specify the name and directory location of the program files. Tally.ERP 9 uses minimum
hard disk space in the local drive. Its installation on the local disk takes just a few seconds.

Unlimited multi-user support: A multi-user version of Tally.ERP 9 can be installed on a network,

having any number of computers with different operating systems such as Win 98, NT, 2000, XP
etc.

Internal backup/restore: Tally.ERP 9 has an in-built, user-friendly ‘backup and restore’ option.
It helps the user to take a backup of one or more companies or all companies, in a single directory,
in the local hard disk, or in any external media.

Data reliability: Tally.ERP 9 offers reliable data. It uses a flexi-field, flexi-length, self-indexed,
weighted file structure for an extremely compact and fast database. Tally.ERP 9 is robust.
Tally.ERP 9 uses signalling quality data integrity checks, at regular levels, to ensure the complete
reliability of data.

User-defined security levels: Tally.ERP 9 offers high levels of security. Users can define multiple
levels of security according to their requirements. Every authorised user in the company can have
an individual password, with rights to use specific features only. The user with the administrator
level password will have full access and can set controls for other users.

Data security: Tally.ERP 9’s data integrity checks ensure that there are no external changes to the
data. Tally.ERP 9 also uses a binary encoding format of storage to prevent devious grouping of
information.

Tally audit: The Tally.ERP 9 audit feature provides the user with administrator rights and the
capability to check the entries made by the authorised users and alter these entries, if necessary.
Once the entries are audited, Tally.ERP 9 displays the altered entries, if any, along with the name
of the user, who has altered the entry, and the date and time of the alteration.

TallyVault: Tally.ERP 9 offers a data encryption option called TallyVault. Without the valid
TallyVault password, the data cannot be accessed. Tally.ERP 9 follows the DES (Data Encryption
Standard) encryption method to safeguard the data.
Removal of data into a separate company: Tally.ERP 9 allows users to maintain a company for
any number of financial years. Once the books of accounts have been completed for the earlier
financial years, the user can split the company data into multiple companies as per financial periods
required. The user can specify the date from which the company has to be split and Tally.ERP 9
will split the company to form two companies as per periods specified. Once the data has been
split, the closing balance of the first period (first company) becomes the opening balance for the
next period (second company).

Import/Export of data: Any transaction can be exported and imported to other software after
suitably altering the current structures to accept the Tally.ERP 9 data structure. Data can also be
imported to Tally. ERP 9 by writing a TDL program. The data which is to be exported from
Tally.ERP 9 can be in XML, HTML or ASCII format

TALLY SCREEN COMPONENTS

1. Gateway of Tally : This is the main screen where you can access different features of the
software. It serves as a hub for navigation.

2. Menu Bar : Located at the top, it provides access to various modules like Accounting,
Inventory, Payroll, Reports, and more. Each menu expands to show more options.

3. Button Panel : At the bottom of the screen, you’ll find function buttons (e.g., Create, Alter,
Delete, Display, Print) that facilitate quick actions.

4. Company Information : Displays the current company name and details. Users can switch
between different companies from here.

5. Display Area : The central part of the screen shows the content based on the selected menu or
option. This includes ledgers, reports, and data entries.

6. Status Bar : Located at the bottom of the display area, it provides real-time information about
the current operation, such as the status of data entries or errors.

7. Shortcut Keys : Tally offers various keyboard shortcuts for quick access to frequently used
functions. These shortcuts can enhance efficiency.
8. Help Section : Access to user manuals and help documents to assist with using Tally’s features.

9. Search Bar : A search feature to quickly find ledgers, reports, or specific data without
navigating through menus.

10. Notification Area : Displays alerts or messages about transactions, errors, or important
updates.

CREATION OF CAMPANY IN TALLY.ERP 9

The first step towards working with Tally.ERP 9 is to create a ‘company’. A ‘company’ in
Tally.ERP 9 is a central repository where you can maintain all the financial records of your
business, and from where you can extract the required financial reports and statements.

Go to Gateway of Tally > Company Info. > Create Company

The fields in the company creation screen and the information to be filled in each of them are
explained below. To navigate between the fields, use the Enter/Tab/Arrow Keys, or Mouse clicks.

Directory: The path to the location of Tally.ERP 9 data is displayed here. By default, the path
provided while installing Tally.ERP 9 will be displayed. However, you can press backspace and
specify the location in which you want the data to be stored. Name: Provide a name for the
company that is being created. In this example, we are creating a company named Vridhi Traders.

Primary Mailing details: The mailing name and address details are picked from here for any
report such as balance sheet and statements of accounts.

Mailing Name: The name provided for the company in the name field is automatically displayed
here. However, you can change it as per requirements. The name specified here will be used for
mailing purposes. In this example, Vridhi Traders is retained.

Fill in the company’s address.

Country: Select the country in which the company is located. This will allow users to choose the
statutory capabilities available for that country. In this example, the country selected is India.

Fill in the relevant numbers in the Telephone No. and Mobile No. fields.

COMPANY ALTER
By ‘altering’ a company, you are modifying the details which you have provided in the Company
Creation screen. Go to Gateway of Tally > F3: Company Info. (Alt+F3) 1. Click Alter or press A.
Tally.ERP 9 displays the Select Item screen, with a List of Companies that are available in the
location specified. Select the company which you need to alter and press Enter to view the
Company Alteration screen. Alter the company details as required and accept the screen.
SHUTTING COMPANY
By ‘shutting’ a company, you are essentially closing a company. Go to Gateway of Tally > F3:
Company Info. (Alt+F3) 1. Click Shut Company. Tally.ERP 9 displays the Close Company screen,
with the List of Companies that are open. You can also use Alt+F1 from the Gateway of Tally to
get to this screen.
SELECTING COMPANY
By ‘selecting’ a company, you are essentially opening the company it in Tally.ERP 9. 1. Go to
Gateway of Tally > F3: Company Info. (Alt+F3) 2. Click Select Company, or press S. Tally.ERP
9 displays the Select Company screen, with a List of Companies that are available in the location
specified. You can also press F1 to get to the Select Company screen.
Accounts Info
Groups

In Tally.ERP 9, there are 28 predefined groups, this mean that it is not necessary to create the
Account Group in Tally.ERP 9. However, considering the different requirement of an organisation
and its nature, Tally.ERP 9 has also provided flexibility to create the account group if need be.
Group creation is similar to ledger creation in Tally.ERP 9. As with ledgers, there are two ways of
creating groups:

Single Group Creation: Involves creation of a single group at a time

To create the group, 1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Single Group)
2. Enter Name as Debtors - North 3. Against the field Under select Sundry Debtors from the List
of Groups
Multiple Group Creation: Involves creation of multiple groups at a time Single Group Creation
GROUP ALTER
SINGLE GROUP

MULTIPLE GROUP
Group deletion

LEDGER
A ‘Ledger’ is an account head. For instance, the sales account head will be called a ‘Sales Ledger’
in Tally.ERP 9. Similarly, a customer would be an account head, and will be called a ‘party ledger’.
You can create ledgers specific to your business transactions. For a newly created company, there
are two pre-defined ledgers available in Tally.ERP 9: Cash Profit & Loss A/c
I. Single Ledger Creation Learning Tally.ERP 9 Creation of Proprietor’s Capital Account ledger
from single ledger creation screen.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single Ledger Creation)

2. Enter Name as Proprietor’s Capital Account

3. Select Capital Account from the List of Groups

MULTIPLE LEDGER CREATION

Now let us create the following ledgers using the Multi Ledger Creation option: To create Multiple
Ledgers at once, follow the below given steps:

1. Go to Gateway of Tally > Accounts Info > Led gers > Multiple ledgers > Create

2. From Under Group field select All Items

3. Under Name of Ledger enter the name as PETTY CASH

4. Select as Sundry Creditors from the List of Groups

5. Press Enter and move to next line as there is no opening balance

6. Similarly, select the other ledgers as shown in figure

LEDGER ALTERATION

Now, go to Gateway of Tally >Accounts Info>Ledgers > Select Display under single ledger, you
will see that the List of Ledgers. You can also Alter ledgers from Accounts Info. > Ledgers > Alter
(Multiple Ledgers). Deleting Ledgers You can delete a ledger, by pressing Alt+D in the Ledger
Alteration screen.

SINGLE LEDGER
MULTIPLE LEDGER ALTERATION

LEDGER DELETION
SINGLE LEDGER
EXERCISE ON LEDGER CREATION

ANSWER

Accounting Vouchers
INTRODUCTION

In accounting terms, a voucher is a document containing the details of a financial transaction. For
example, a purchase invoice, a sales receipt, a petty cash docket, a bank interest statement, and so
on. For every such transaction made, a voucher is used to enter the details into the ledgers to update
the financial position of the company. This feature of Tally.ERP 9 will be used most often.

Tally.ERP 9 follows the Golden Rules of Accounting:

Type of Voucher It is essential to check if you are using the right voucher for the transaction. You
can change the voucher type by selecting a new type from the button bar, if required. For example
on the selection of a payment voucher, Tally. ERP 9 automatically displays the list of voucher types
you have created. You can select the voucher type required.

Voucher Number Tally.ERP 9 automatically sets the voucher number for you. You can change the
voucher number manually, if required.

Reference You can enter a reference of your choice. A purchase order number or an invoice number
can be entered as a reference.

Date of Voucher The date of the voucher you enter is displayed at the top-right of the voucher
creation screen. The date is taken initially from the Gateway of Tally - Current Date and you may
need to change it frequently to ensure that the vouchers are dated as you want.

Accounting Vouchers
Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform
a different job. The standard accounting vouchers are:

Contra Voucher (F4) : A Contra Voucher in Tally is used to record fund transfers between
cash and bank accounts or between two bank accounts within the business.
 Payment Voucher (F5) : A Payment Voucher in Tally is used to record all transactions involving
payments made by the business, typically through cash, bank, or other modes like cheques or
online transfers.

Receipt Voucher (F6) : A Receipt Voucher in Tally is used to record all money or funds received
by the business, whether through cash, bank, or other modes like cheques or online payments.

Journal Voucher (F7): A Journal Voucher in Tally is used to record non-cash transactions,
adjustments, and entries that do not involve immediate cash or bank accounts, such as depreciation,
provisions, and rectification entries.

Sales Voucher/Invoice (F8) : A Sales Voucher/Invoice in Tally is used to record the sale of
goods or services, capturing details like the items sold, quantities, rates, applicable taxes, and
customer information, thereby generating an invoice for the transaction.

Credit Note Voucher (Ctrl+F8) : A Credit Note Voucher in Tally is used to record a reduction
in the amount owed by a customer, typically due to returned goods or overbilling, effectively
reversing a previous sales transaction.

Purchase Voucher (F9) : A Purchase Voucher in Tally is used to record the purchase of goods
or services, capturing details such as the items purchased, quantities, rates, applicable taxes, and
supplier information.

Debit Note Voucher (Ctrl+F9) : A Debit Note Voucher in Tally is used to record an increase in
the amount payable to a supplier, typically due to returned goods or under-billing, effectively
reversing a previous purchase transaction.

You can alter these vouchers to suit your company, and also create new ones. Read ahead to
understand the function of each voucher type. The following exercises are sample entries for
understanding voucher entry in Tally. ERP 9.
Receipt Voucher (F6)
Contra Voucher (F4)

Journal Voucher (F7)

Payment Voucher (F5)

Purchase Voucher (F9)

DAYBOOK

In Tally ERP 9, the Daybook is a comprehensive report that displays all the transactions for a
selected date or range of dates. It is essentially a ledger that records every financial transaction
made within a particular day or set period, including:

• Sales
• Purchases
• Receipts
• Payments
• Journal entries
• Debit and credit notes
• Any other financial transactions
DETAILED VIEW OF DAYBOOK

RANGE
In Tally, a Range is used in the context of filtering and searching for specific data within reports or
lists. It helps in narrowing down data based on certain conditions or criteria. Ranges are typically
applied when you want to analyze or view particular sets of data like vouchers, ledgers, or
inventories in Tally's reports.

For example:

- You can set a range to view all sales made to a specific customer.

- You can filter transactions within a particular date range.

- You can search for all entries that contain a certain keyword or ledger account.

To set a range in Tally:

1. Open the report (e.g., Daybook, Ledger, Sales Register).

2. Use the Alt + F12 (Range) shortcut.

3. Specify the field (e.g., Date, Ledger Name) and condition (e.g., greater than, equal to).
4. Set the criteria, and Tally will display the filtered data according to the range you set.

Ranges make it easier to manage large sets of data by helping you focus on specific aspects of your
accounting.
 UNIT 3

Bank reconciliation statement

A Bank Reconciliation Statement (BRS) in Tally is used to reconcile your company’s bank
account records with the bank statement. It helps in identifying any discrepancies between the two,
ensuring that the transactions recorded in Tally match those reflected by the bank.

Steps to Perform Bank Reconciliation in Tally:

1. Ensure Bank Ledger is Created :

Before performing reconciliation, make sure you have created a bank ledger in Tally under the
group Bank Accounts .

2. Record Bank Transactions :

Enter all the transactions (payments, receipts, and bank charges) in Tally through the Voucher
Entry screen.

3. Access the Bank Reconciliation Screen :

- Go to Gateway of Tally > Display > Accounts Books > Cash/Bank Books > Select the Bank
Ledger.

- Select the bank account you want to reconcile.

- Press F5 to open the Bank Reconciliation option.

4. Enter Reconciliation Date :

- Tally will show all the transactions recorded for the selected bank ledger.

- You need to enter the Bank Date (the date when the transaction appears in the bank statement)
against each transaction.
5. Mark Transactions as Reconciled :

- Compare the bank statement with the list of transactions in Tally.

- For each transaction that appears in both Tally and the bank statement, enter the date shown on
the bank statement in the Bank Date column.

- If a transaction does not appear in the bank statement, leave the Bank Date blank.

6. Check for Discrepancies :

- After entering the bank dates for all reconciled transactions, you can check if there are any
unmatched entries or discrepancies.

- Tally will automatically calculate the difference between the bank balance as per your
books and the actual balance per the bank statement.

7. Save the Reconciliation :

- Once you’ve reconciled all the transactions, you can save the reconciliation by pressing Ctrl +
A This process helps ensure that your company’s bank records are accurate and match those
maintained by the bank.
LAB EXERCISE OF BRS
EXPORT DATA
In Tally, you can export data such as reports, ledgers, and vouchers into various formats like Excel,
PDF, XML, and more. Exporting data can be useful for sharing reports, analyzing data outside
Tally, or integrating with other systems. DATA CAN BE EXPORTED IN 6 FORMATS
1. ASCII (COMMA DELIMITED)
2. EXCEL (SPREADSHEET)
3 HTML (WEB PUBLISHING)
3. JPEG (IMAGE)
4. XML (DATA INTERCHANGE)
5. PDF (PORTABLE DOCUMENT FORMAT)
IMPORT DATA
Importing data into Tally is useful for bringing in transactions, ledgers, masters, and vouchers from
external sources like Excel, XML, or other accounting systems. Tally allows importing in XML
format natively, and you can also use Excel data after converting it to XML.
BACKUP
Tally.ERP 9 helps users to take back up of one or more companies in a single directory. Let us
understand the backup feature of Tally.ERP 9 using the example of Vridhi Traders. To take a single
or multiple company data backup,

1. Go to Gateway of Tally > Company Info. > Backup

2. Enter Source and Destination of the backup as per Figure
3. Press Enter and the List of Companies available for backup will appear. Select the required
companies for which data backup needs to be created

Restoring Data
The Restore functionality allows you to restore the data backup taken earlier.

Remember the following points before restoring data backup.

1. Do not restore old or irrelevant data.

2. Do not restore data from a damaged media.

3. Do not restore data in the same folder as the existing data, since it may overwrite the existing
data.

For restoring data from a backup file, follow the steps given below:
1. Go to Gateway of Tally > Company Info. > Restore
2. Destination field: Enter the folder path where data backup needs to be restored.
3. Source field: Enter the folder path where data backup file or auto backup files for multiple
companies are stored. The path specified can be on the same storage device/external
storage device or a storage device on the network.
4. Select the required companies from the list of companies and then restore
5. Select End of List to complete the selection and accept the screen
SECURITY CONTROL
In Tally, Security Control is a feature that helps manage and restrict access to specific data,
reports, and functions. It allows the administrator to define user roles and permissions, ensuring
that users only have access to the areas of the system that are relevant to their role.
INVENTORY
In Tally ERP 9, inventory management is a key feature that helps businesses maintain accurate
stock levels and handle inventory transactions efficiently.

Enabling Inventory in Tally ERP 9

Before you start managing inventory, you need to enable the feature:Go to Gateway of Tally > F11:
Features > F2: Inventory Features.

• Set Maintain Stock to "Yes".

• Enable other features as per your requirements (e.g., multiple
godowns, batches, expiry dates).
Creating Stock Items

Stock Items are individual products that you want to manage. To create stock items:

• Go to Gateway of Tally > Inventory Info > Stock Items > Create .
• Fill in details like:
o Name: The name of the item. o Alias: Any alternate name. o Under: Select the stock
group it belongs to. o Units of Measure: Define the unit in which the item will be
measured (kg, pieces, etc.).
o Opening Balance: If there’s an opening stock, mention it here.
UNIT OF MEASURMENT
Tally allows you to create and manage multiple units of measure (e.g., kg, meters, liters):

• Go to Inventory Info > Units of Measure > Create.

• Define the base unit and any alternate units (e.g., 1 box =
12 pieces).
MULTI LOCATION CREATION

Godowns (warehouses) help track the location of your stock. To create a godown:

• Go to Gateway of Tally > Inventory Info > Godowns > Create.

• Name the godown and specify the parent if applicable.

STOCK ITEM CREATION

Stock Items are individual products that you want to manage. To create stock items:

• Go to Gateway of Tally > Inventory Info > Stock Items > Create.
Fill in details like:
o Name: The name of the item. o Alias: Any alternate name.
o Under: Select the stock group it belongs to.
o Units of Measure: Define the unit in which the item will be measured (kg, pieces,
etc.). o Opening Balance: If there’s an opening stock, mention it here.
GODWON ALLOCATION
Godowns (warehouses) help track the location of your stock. To create a godown:

• Go to Gateway of Tally > Inventory Info > Godowns > Create.

• Name the godown and specify the parent if applicable.

STOCK SUMMARY
The Stock Summary report in Tally ERP 9 is one of the most important inventory reports. It provides an
overview of the stock position, showing quantities, values, and performance of stock items at any point in
time. Here’s a detailed explanation of the Stock Summary and how to use it:

DETAILED FROMAT

BILL OF MATERIAL
In Tally ERP 9, the Bill of Materials (BOM) is used for manufacturing processes where raw materials or
components are assembled to produce finished goods. BOM allows businesses to define the list of items
required for manufacturing a product. This is particularly useful for industries like manufacturing, where
tracking raw materials, components, and costs associated with production is crucial.
Key Features of Bill of Materials (BOM) in Tally ERP 9:

1. Define Components for Finished Goods: You can list all the raw materials, sub-assemblies, and
components that go into the production of a finished product.
2. Track Costs: It helps track the costs associated with the production of each finished item.
3. Multi-Level BOM: Tally allows you to define multiple levels of BOM where one item can have
its own sub-BOM.
4. Automatic Consumption of Raw Materials: When you record a manufacturing process, raw
materials get consumed automatically based on the BOM.

STEPS

• Go to Gateway of Tally > F11: Features > F2: Inventory Features.

• Set Use Tracking Numbers (Delivery/Receipt Notes) to "Yes".
• Set Use Rejection Inwards and Outwards to "Yes".
• Enable Use BoM in Manufacturing Journal by setting it to "Yes".
Invoicing

Invoicing in Tally ERP 9 is a key feature that allows businesses to create and manage different types of
invoices such as sales invoices, purchase invoices, and service invoices. These invoices help in recording
transactions related to sales, purchases, and services while integrating with accounts and inventory.

Types of Invoices in Tally ERP 9:

1. Sales Invoices: For selling goods or services to customers.

2. Purchase Invoices: For purchasing goods or services from suppliers.
3. Service Invoices: For billing non-inventory items or services.
4. Tax Invoices: Includes GST, VAT, or other taxes as per business needs.
5. Credit/Debit Notes: For returns, adjustments, or corrections.

Accounting Ratios

Accounting Ratios in Tally ERP 9 are a useful tool for analyzing the financial health and performance of a
business. These ratios help in understanding profitability, liquidity, solvency, and efficiency by comparing
different financial data from the Balance Sheet and Profit & Loss Account.

Tally ERP 9 automatically generates important accounting ratios based on the transactions entered,
making it easier to assess business performance without the need for manual calculations.
INTREST CALCULATION
Interest Calculation in Tally ERP 9 is a powerful feature that allows businesses to automatically
calculate interest on outstanding balances for loans, advances, or delayed payments. This can be applied
to ledger accounts, including customers, suppliers, and banks. The interest calculation feature can help
automate the process, saving time and reducing the risk of manual errors.
UNIT − 4

FINANCIAL STATEMENT
In Tally ERP 9, financial statements are essential reports that give insights into the financial health and
performance of a business. These statements include the Balance Sheet, Profit and Loss Account, and
the Cash Flow Statement. Tally generates these reports automatically based on the accounting data
entered, making it easy to track your business’s financial position.

BALANCE SHEET
The Balance Sheet in Tally ERP 9 is one of the most essential financial statements for any business. It
provides a snapshot of the company's financial position at a given date by showing the assets, liabilities,
and equity (capital). Tally automatically generates the balance sheet based on the data entered into the
system, making it a powerful tool for financial analysis and decision-making

P AND L
The Profit and Loss Account (P&L) in Tally ERP 9 is a financial statement that summarizes the
revenues, costs, and expenses incurred during a specific period. It helps businesses determine their net
profit or loss for that period. This report is crucial for evaluating a company's financial performance
CASH FUND / FLOW

Cash Flow in Tally ERP 9 provides a detailed analysis of the inflow and outflow of cash in the
business over a specified period. This report helps track how cash moves in and out of the
business, focusing on operational, investing, and financing activities. It helps you manage
liquidity and plan for future cash requirements.

TRIAL BALANCE

The Trial Balance in Tally ERP 9 is a summary report that lists all the ledger accounts and their
balances (debit or credit) for a specific period. It is a key accounting report used to ensure that
total debits equal total credits, helping to check the accuracy of the entries made in the
accounting system. If the trial balance is balanced, it indicates that the books are mathematically
accurate, though it does not ensure the absence of other errors (e.g., incorrect ledger postings).