TALLY PROJECT REPORT

ON
MANAGING ACCOUNTS

Submitted in Partial fulfilment of the requirement of Bachelor of

Commerce (H)
Guru Gobind Singh Indraprastha University, Delhi

COMPUTERISED ACCOUNTING SOFTWARE

TALLY: BCOM 211
JIMS Engineering Management Technical Campus

Submitted To: Submitted By:

Ms. Shalini Singh Farhan Ansari
Asst. Professor B.COM (H)- III Sem
Department of Commerce Enrolment No. - 0352558819

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 STUDENT DECLARATION

I hereby declare that the project report entitled ‘COMPUTERISED

ACCOUNTING SOFTWARE (TALLY)’ submitted to Ms. Shalini Singh, is a
record of an original work done by me under the guidance of Ms. Shalini Singh,
Assistant Professor at Department of Commerce of Jagannath Institute of
Engineering, Management & Technology. I further declare that the work reported
in this project has been fully completed by me and altered by my professor Ms.
Shalini.

Name— Farhan Ansari

Course— BCOM (H)
Enrolment No— 0352558881

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 CERTIFICATE

This is to certify that Farhan Ansari, a student of BCOM department has

successfully completed the file work of ‘COMPUTERISED ACCOUNTING
SOFTWARE (TALLY)’ under the guidance of Ms. Shalini Singh (Assistant
Professor of Commerce Department) during the year 2020-21 in partial fulfilment
of Tally examination.

Ms. Shalini Singh

(Asst. Professor Department of Commerce)

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my professor ‘Ms.

Shalini Singh’ for their guidance and support in completing my project.
I would also like to extend my gratitude to Head of Department ‘Dr. Sumit
Agarwal’ and class coordinator ‘Ms. Bhavna Sharma’ for providing me with all
facilities that were required.

Farhan Ansari
BCOM (H)
ENROLMENT- 03525588819

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 TABLE OF CONTENT

Experiment No. Particulars Page No. Sign

Student Declaration II
Certificate III

Acknowledgement IV

Experiment No.1 Company Creation 6-7

Experiment No. 2 Ledger Creation, Alteration &Deletion 7-15

Experiment No. 3 Voucher Creation & Passing of entries 16-23

Experiment No. 4 Stock Group, Stock Item & Units 24-25

Experiment No. 5 Searching Entries 26

Experiment No. 6 Bank Reconciliation Statement 26-27

Experiment No. 7 Order Processing 27-29

Experiment No. 8 Reorder Levels 30

Experiment No. 9 Bill Wise Details 31-36

Experiment No. 10 Bills of Material 36-39

Experiment No. 11 Invoicing 39-42

Experiment No. 12 Cheque & Voucher Printing 43

Experiment No. 13 Interest Calculation 43-45

Experiment No. 14 Ratio Calculation 46

Experiment No. 15 Financial Statements 46

Summary 47
Conclusion 48

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Question. Create a company Milan trade for the year 2009-10 and pass necessary journal
entries.
Journalise the following the following transaction
1. Commence business with cash Rs 100000
2. Deposit into bank Rs 15000. 3. Bought office furniture R$3000.
4. Sold goods for cash R$ 2500
5.Purchased goods from Mr x on credit Rs2000.
6.Sold goods to Mr y on credit Rs3000.
7.Received cash from Mr y on account Rs 2000
8.Paid cash to Mr x on Rs 1000.
9. Received commission R$50.
10. Received interest on bank deposit Rs 100.
11.Paid into bank Rs 1000.
12. Paid for advertisement Rs 500.
13 Purchased goods for cash R: 800
14.Sold goods for cash R$ 1500.
15.Paid salary Rs 500.

EXPERIMENT NO. 1
COMPANY CREATION

To create company in Tally, follow the path – Start Tally ERP 9 > Gateway of Tally > Company
Info > Create company Creating Milan trade

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 EXPERIMENT NO. 2
Ledger Creation, Alteration and Deletion

After the creation of company, the next step will be the creation of ledger
To create ledger- Gateway of Tally > Accounts Info. > Ledgers > Create (single or multiple) >
Choosing specifics of Accounts > Accept.
Note – The cash and profits & loss accounts are present by default. No need of creation
Creating all the ledgers needed according to the transactions of the company

1. Commenced business with cash Rs,1,00,000

Creating Capital ledger - gateway of tally > accounts info > ledgers > create (single)

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2. Deposit into bank Rs. 15,000
Creating bank ledger - gateway of tally > accounts info > ledgers > create (single)

3. Bought office furniture for Rs. 3000

Creating Furniture ledger - gateway of tally > accounts info > ledgers > create (single)

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4. Sold goods for cash Rs. 2,500
Creating sales ledger - gateway of tally > accounts info > ledgers > create (single)

5. Purchased goods from Mr. X on credit Rs. 2000

Creating the ledger of Mr. X - gateway of tally > accounts info > ledgers > create (single)

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6. Sold goods to Mr. Y on credit Rs. 3000
Creating Mr. Y’s Ledger - gateway of tally > accounts info > ledgers > create (single)

7. Received cash from Mr. Y on account Rs. 2000

Creating Mr. Y’s ledger - gateway of tally > accounts info > ledgers > create (single)

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8. Paid cash to Mr. X Rs.1000
Creating Mr. X’s ledger - gateway of tally > accounts info > ledgers > create (single)

9. Received commission Rs. 50

Create ledger of commission - gateway of tally > accounts info > ledgers > create (single)

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10. Received interest on bank deposit Rs. 100
Creating ledger of Interest and Bank - gateway of tally > accounts info > ledgers > create

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11. Paid into bank Rs. 1000
Creating bank ledger - gateway of tally > accounts info > ledgers > create

12. Paid for advertisement Rs. 500

Creating advertisement ledger - gateway of tally > accounts info > ledgers > create (single)

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13. Purchased goods for cash Rs. 800
Creating purchase ledger - gateway of tally > accounts info > ledgers > create

14. Sold goods for cash Rs. 1500

Creating sales ledger - gateway of tally > accounts info > ledgers > create

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15. Paid salary Rs. 500
Creating salary ledger - gateway of tally > accounts info > ledgers > create

To alter ledger- Gateway of Tally > Accounts Info.> Ledgers > Alter

To delete a ledger- Gateway of Tally > Accounts Info. > Ledger > Alter > Alt + D

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 EXPERIMENT NO. 3
Voucher Creation and Passing of Entries
Voucher can be created - Gateway of Tally > Accounting Vouchers > then the type of voucher
according to the type of entry i.e., Receipts/ Payments/ Sales/ Purchases etc.
Voucher is the entry of financial transaction of the company in Tally Erp 9.
Short cut keys for entries:
Contra Voucher- F4
Payments Voucher- F5
Receipts Voucher- F6
Journal Voucher- F7
Sales Voucher- F8
Purchase Voucher- F9

1. Commenced business with cash Rs,1,00,000

Gateway of Tally > Accounting Vouchers > Capital voucher

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2. Deposit into bank Rs. 15,000
Gateway of Tally > Accounting Vouchers > Contra voucher

3. Bought office furniture for Rs. 3000

Gateway of Tally > Accounting Vouchers > Payments

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4. Sold goods for cash Rs. 2,500
Gateway of Tally > Accounting Vouchers > Sales

5. Purchased goods from Mr. X on credit Rs. 2000

Gateway of Tally > Accounting Vouchers > Purchases

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6. Sold goods to Mr. Y on credit Rs. 3000
Gateway of Tally > Accounting Vouchers > Sales

7. Received cash from Mr. Y on account Rs. 2000

Gateway of Tally > Accounting Vouchers > Receipt

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48. Paid cash to Mr. X Rs.1000
Gateway of Tally > Accounting Vouchers > Payments

9. Received commission Rs. 50

Gateway of Tally > Accounting Vouchers > Receipt

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10. Received interest on bank deposit Rs. 100
Gateway of Tally > Accounting Vouchers > Receipt

11. Paid into bank Rs. 1000

Gateway of Tally > Accounting Vouchers > Contra

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12. Paid for advertisement Rs. 500
Gateway of Tally > Accounting Vouchers > Payments

13. Purchase goods for cash Rs. 800

Gateway of Tally > Accounting Vouchers > Purchase

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14. Sold goods for cash Rs. 1500
Gateway of Tally > Accounting Vouchers > Sales

15. Paid salary Rs. 500

Gateway of Tally > Accounting Vouchers > Payment

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 EXPERIMENT NO. 4
Stock Group, Item, Unit of Measures and Passing of Entries
To create a stock group, stock item or even units of measure the path is Gateway of Tally >
Inventory Info. > Stock Group or Stock Item or Units of Measure accordingly.
Manohar Brothers bought 20 pcs of LG washing machine for 6,000/- per piece and sold 10
pieces to Sony Brothers for 10,000/- per piece. For this particular entry a company will be
named Manohar brothers, create necessary Ledgers. Then create Stock Group named Washing
Machine, then Stock Item named LG, then unit of measure in which it will be measured like
pieces (in this case) and in the end the voucher entry will be passed.

Creating the company in question and filling all the necessary details.

Stock group named washing machine: gateway of tally > inventory info > stock group > create

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Creating stock item named LG: gateway of tally > inventory info > stock item > create

Create unit of measure: gateway of tally > inventory info > units of measure > create

Passing voucher entry of purchase: gateway of tally > accounting vouchers > purchase

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 EXPERIMENT NO. 5
Searching Entries
To search for voucher entries in Tally simply: Gateway of Tally > Display > Day Book and
look for the needed to be alter and delete (alt + d) these vouchers as well.

EXPERIMENT NO. 6
Bank Reconciliation Statement
Question. salary paid Rs.50,000 through PNB.
2) Rent paid Rs.30,000 through PNB.
3) Commission paid through PNB Rs20,000.
Bank reconciliation statement (BRS) is a statement prepared by account holder on a particular
date to reconcile the bank as per Cash Book with the balance as per Bank Statement or Bank
Pass Book showing entries because of which differences between the two balances exist. In
Tally reconciliation statement it is already prepared by Tally only to enter proper details
needed.
Prepare necessary ledgers including the ledger of bank then make this change in the feature
Enable cheque printing in Accounting Features and accept it. Pass necessary voucher entry.
Now to view BRS: Gateway of Tally > Display > Accounts Book > Ledgers > Bank a/c > F5
you can see reconciliation and can match your cash book with pass book.

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Enter correct dates accordingly and look for dues and all.

EXPERIMENT NO. 7
Order Processing
Question. Process by which trader purchases or sells goods from or to any party. There are two
types of order processing: 1. Purchase order processing 2. Sales order processing
A company purchased 50 pieces of HCL computers from ABC company on 1 Apr. 2014 for
25000 per piece but received only 40 pieces. Due to damage 10 pieces were returned to his
supplier and finally received only 30 pieces.

Firstly, allow order processing feature by going to features (F11) then inventory features (F2)
and enabling purchase order processing.

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Make the entry of purchase of 50 pieces in purchase order voucher (alt + F4)

Then the entry of 40 pieces received will be made in Receipt Note Voucher (alt + F9) as only
40 pieces are received.

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The entry of 10 returned goods will be passed in Rejections out Voucher (alt+F6).

And ultimately the entry of purchases will be made the purchase voucher (F9) of 30 units as
out of 50 only 30 are present.

Similarly, the above procedure is followed at time of sales order processing including steps
like
1). Sales Order (alt+F5)
2). Delivery Note (alt+F8)
3). Rejections (ctrl+F6)
4). Sales (F8)

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 EXPERIMENT NO. 8
Reorder Levels
Question. For a company we want to create a reorder level. If that company has maximum
capacity to sell is 20 computers, so we set reorder level at 10 pieces (minimum order).
Level at which stock of particular item is reordered by the company as to maintain accuracy of
work.

Let us take the above experiment for reorder levels experiment. Following are the steps:
Gateway of tally > inventory info. > reorder levels > stock group/items > computers > HCL

Here reordered the 20 units of HCL computers which were earlier ordered by ABC company
out of 10 were damaged and 10 were not even received. Then voucher of purchase

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 Experiment No. 9
Bill-Wise Details
To show bill wise details first of all enable maintain bill wise details by going to Features
(F11).

Question. Goods sold to Ravi of Rs. 15,000 on 1 Apr 2014.

Cash received from Ravi 10,000 on 1 Apr 2014
Goods sold to Ravi of Rs. 10,000 on 1 May 2014
Cash received from Ravi 20,000 on 1 May 2014
Goods sold to Ravi of Rs. 25,000 on 1 Jun 2014
Interest charged to Ravi Rs. 500 on 1 Jun 2014

Create the ledgers of Ravi, Sales and Interest received in which enable inventory values are
affected

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For Ravi ledger enable maintain balances bill by bill

For Interest ledger disable maintain balances bill by bill and inventory values.

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Now the voucher entries:
1. Sales Voucher with a new reference

2. Receipt voucher with against reference

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3. Sales Voucher with new reference

4. Receipt voucher with two against references and one advance

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 5. Sales voucher with new reference

6. Journal voucher with on account

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Check the balances as well by: Gateway of tally > Display > Statements of accounts >
Outstanding > Ledgers > Ravi

Experiment No. 10
Bills of Material (BOM)
IBM Company purchased following spare parts of HCL computers at:
1. CPU 1pc 10,000
2. Mouse 1pc 1,000
3. Keyboard 1pc 2,000
4. Monitor 1pc 3,000
Additional expenses made on purchasing the spare parts which are given below:
Octroi Rs.300, Wages Rs.400, Carriage Inwards Rs.300

First of all, enable certain features by gateway of tally > inventory info. > stock item > F12 >
enable component list detail.

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Now create stock group of computers

Now stock item named HCL and enabling alter components option.

Then add spare parts by pressing Alt + C

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Now enter voucher: gateway of tally > Inventory vouchers > Purchases (F9)

Create a manufacturing voucher for spare parts gateway of tally > inventory info > Voucher
types > create

Creating ledgers of expenses

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Entering voucher for those expense: gateway of tally > inventory voucher > stock journal
Entering all necessary details.

Experiment No. 11
Invoicing
Question. Invoice entry is a bill which contains all information about goods and all info. it also
contains info about customers, delivery note, mode of payment and delivery place. For eg in
invoicing all the details of customers and goods are recorded such as buyers name, name of
goods, export details etc.
Any voucher can be easily converted to invoice and can be viewed as well. To enter any
transaction as invoice simply go to accounting features (F11) and enable invoicing and
invoicing in purchase mode.

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Now any voucher can be easily seen as Invoice by clicking alt + I

Question. Sold 10 pieces of HCL computer to Mohan maintain the details:

Firstly for doing invoicing we need to do changes in configuration in sales voucher
Path for it – Gateway of tally > Accounting Voucher > sales (F8) > F12.

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Creating HCL item

Creating ledger of Mohan & sales

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Now passing the invoicing entry.
Path for it: gateway of tally > Accounting Voucher > sales voucher (F8)
Doing the dispatch entry first

Passing the entry for sales

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 Experiment No. 12
Printing of cheque and voucher
To print a Voucher or Invoice open the particular Voucher and press Alt + P on your keyboard.
A rectangular box will appear on screen showing the printing details. Then press yes.

To print a cheque: gateway of tally > Banking > Cheque printing > select the bank > Alt + P

Experiment No. 13
Interest calculation
Question. A businessman started business with cash Rs.100, 000, interest on capital is 10%.
Do the voucher entry.
Creating a new company

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Creating respective ledgers
Capital (as business is commenced)

Interest on Capital (as it is to be paid)

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Now entering vouchers
Commencement (in Receipt Voucher F6)

Payment of Interest on capital (in journal voucher F7)

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 Experiment No. 14
Ratio Calculation

No need to do anything extra for ratio calculation and analysis it is prepared by tally itself. It
can be simply by
gateway of tally > ratio analysis and make decisions accordingly.

Experiment No. 15
Financial Statements
Financial statements are also made itself by tally. Access and analyse it accordingly and make
decisions based on them. To access it: Gateway of tally > the respective report Example –
Balance Sheet (Milan Trade).

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 SUMMARY
Tally ERP 9 is one the best software to maintain Financial Books of any firm, it is easy to
operate and with absolute accuracy any one can use with practise it has different features and
functions which can be used in different Business Scenarios. Milan trade and other question
are solved in this file by using different features. It is used to maintain journal, ledger, and
inventories, and it also provides different precalculated financial statements such Balance
sheets. Tally ERP handles Accounting, Inventories Management, Order management, Tax
Management, Payroll, Banking and many other requirements by a business.
The Tally needs a prerequisite knowledge of Accountancy the knowledge of nature, types,
characteristics of different accounts. The transactions are needed to entered by accurately for
proper maintenance of the books. In the report above mostly features and books are covered in
different question the primary question is Milan Trade which started the basic books with
simple journal entries of commencement of business and sale and purchasing goods and
materials then different question are used to use different features of tally which are very used
to record, classifying, analysing, evidence, decision making etcetera. One of the best function
is it helps in taxes and now it has become GST friendly too which is very helpful for
accountants and businessman.
To be the technology fabric that drives the economic growth of the world, by 2030. Tally
Solutions Pvt. Ltd believe that 'velocity of money' is key to driving economic growth. Hence,
in order to achieve our goal, our technologies will be centred around simplifying commerce for
people all over the world and making it easier for people to transact. This will ensure that more
value gets added, more gets demanded, more is spent, and more is earned. A faster cycle is a
winning situation for all stakeholders and creates a happier world.

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 CONCLUSION

Tally is created by Shyam Sunder Goenka Bharat Goenka

About Tally
Tally Solutions Pvt. Ltd a technology & innovation company. Delivering business software for
Small and Medium Businesses (SMB's) is our passion.
What sets a company apart is as much in its DNA as its achievements. Today, three decades
since it was founded, Tally's product caters to millions of users across industries in over 100
countries. Our robust network of 28000+ partners deliver unmatched customer experience in
sales, support and services. With a strong research and development division, Tally strives to
deliver innovation and excellence in enterprise resource planning software for small and
medium businesses.

Journey
30 years ago, Shri Shyam, Sundar Goenka, moved out of Kolkata and set up his textile business
in Bangalore which supplied raw material and machinery to textiles mills. During the course
of his business, Shri S.S Goenka wanted to automate his accounting operations but he found
the existing accounting softwires to be extremely complicated and difficult to use. With a vision
to simplify his accounting operations, Shri S.S Goenka suggested his son, Bharat Goenka to
develop an accounting solution which led to the birth of Tally Solution in 1986. Since its
inception, Tally Solutions has been relentlessly working to provide robust business
management applications to business houses in India and other geographies around the world.

Conclusion
Tally ERP 9 is one of the most popular accounting software used in India. It is complete
enterprise software for small and medium enterprises. ERP 9 is a perfect business management
solution and GST software with an ideal combination of function, control and in-built
customisability.
Tally permits business owners and their associates to interact more in accounts related
discussions and is a complete product which retains its original simplicity yet offers
comprehensive business functionalities such as Accounting, Finance, Inventory, Sales,
Manufacturing, Costing, TDS, TCS and now GST too.

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