CSI Tally

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INTRODUCTION

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Unit 1
BASICS OF ACCOUNTS

NEED OF ACCOUNTS

When a person starts business, whether small or big, his aim is to earn profit. He receives
money from certain sources like sale of Goods, interest on Bank deposits etc..., Also he spends
money on purchase of goods, salary, rent etc.., These transaction and activities take place in the
normal due course of business. Of course all will be anxious at the year end to know the progress
of his/her business whether it is in profit or loss stage.

At the same time if he had noted down his incomes and expenditure he can readily get the
required information.

If it is in systematic manner he could get the answer easily for the questions like....

➢ What happened to his investment?

➢ What is the result of his business?
➢ What are his earnings & income?
➢ How much should he receive from customers or debtors?
➢ How much should he pay his supplier or creditors?
➢ Value of Assets?
➢ Nature & value of Liabilities?

BOOK KEEPING
Recording of accounts in books that result in transfer of money or money’s worth.
Bookkeeping is done on the same day the transaction takes place.

ACCOUNTING
It is an art of recording, classifying and summarising in significant manner and in terms of
money, transaction and events which are of financial character and interpreting the results therof.

BUSINESS TRANSACTIONS
A business transaction is the movement of money and money’s worth from one person to
another or exchange of values between two parties is known as Business transactions.

OBJECTIVES OF ACCOUNTING
i) Providing Information to the users for Decision making .
Objective of accounting is to provide useful information for decision making to stake holders
such as owners, management, creditors, investors etc.. Various outcomes of business activities

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Such as cost, prices, ales volume, value under ownership, return of investment etc... are
measured in accounting.
ii) Systematic recording of transactions:
To ensure reliability and precision for the accounting measurement. It is necessary to
keep a systematic record of all financial transaction of a business enterprise which is ensures by
book keeping. These financial records are classified, summarised and reposted in the form of
accounting measurements to the users of accounting information.
iii) Ascertainment of results of above transaction:
Profit or loss is a core accounting measurement. It is measured by preparing profit and
loss account for a particular period. Various other accounting measurements such as different
types of revenue expenses and revenue incomes are considered for preparing this profit and loss
account.
iv) Ascertain the financial position of business:
Financial position is another core accounting measurement. Financial position is
identified by preparing a statement of ownership (ie) Assets and owings (ie) liabilities of the
business as on a certain date. This statement is popularly known as Balance Sheet.
v) To know the solvency position:
Balance sheet and profit & Loss account prepared as above given useful information to
owners regarding concern’s potential to meet its obligation in the short run as well as in the long
run.

BASIC ACCOUNTING TERMS

Business: –
The legal work done for the purpose of making profit is called business. Business is a broad term
under which business, Production work, Sale or purchase of goods or services, Bank, Insurance,
Transport companies come under it.

Types of Business
1.Manufacturing (production)
2.Trading (Sales)
3.Servicing (Service)
Trade (Business):-
The sale and purchase of goods done for the purpose of making a profit is called trade.

Profession
Any work or means done to earn income which requires prior training, The profession is called –
Doctor, teacher, Work of lawyer etc. comes under occupation.

Proprietor (Owner): –
The person starting the business, who arranges for the necessary capital and carries the risk of
loss and loss of the officer to receive the profit., The owner of the business is called proprietor.

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Capital
Money to start a business by the owner of the business, It is imposed as cash or other property, it
is called capital. In the business, the capital is employed for the purpose of profit, that part of the
profit which is not removed from the business. Capital: – Assets – Responsibilities

Drawing (Withdrawal)
Goods or cash which are taken out by the owner of the business for personal use of the business,
This is called withdrawal or personal expenditure. Withdrawal reduces the amount of capital.

Transaction
1. Cash Transaction (Cash transaction)
2. Credit Transaction (Credit or credit transaction)
3. Bill Transaction (Bill transaction)
Goods
The goods are called that thing, which is traded. Raw material obtained for the manufacture of
goods, can be semi-finished material or finished goods.

Purchase
When goods are purchased for sale by the merchant, It is called purchasing. It can be purchased
in the form of raw material or finished goods. Purchase of properties, Purchase not included,
because they are not for resale.

Purchase Return
Goods that are returned due to any of the purchased goods, Purchase return or outward return (to
him)Return Outward) It is said.

Sales
When the purchased goods are sold for the purpose of profit, it is called selling. Cash sale to sell
cash goods (Cash Sales) And sale of credit to sell goods (Credit Sales) it is said.

Sales Return
Any goods sold are returned by the customer due to any reason, This is called sales return or
internal return. In the lobby Sales return On entry, it is entered into a journal voucher or debit
note.

Stock
After a certain period of time, It is called a stock, on the last day of a business year, which
remains unsold, the last stock (Closing Stock) It is said. This stock at the beginning of the new
business year, Initial stock (Opening Stock) It is called.

Assets
All such permanent and temporary items of business which are necessary to run the business and
which are owned by the businessman, the assets are called. Like – machine, all instruments used
for personal use of land and business, Furniture, The printer, Computer etc.

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Types of Assets
1. Fixed Assets Permanent Property – Equipment, All instruments used for personal use of land
and business, Furniture, The printer, Custom etc.
2. Current Assets Movable property (cash) – cash. Bank, cash etc.

Liabilities
The liability of the business is called liability. There are some essential states in the business.
Those who have the obligation to repay the business like – Capital, Bill of credit, Creditor, Bank
overdraft etc.

Revenue
Revenue refers to the amount received regularly from the sale of goods or services. Business
day-to-day activities like rent – rent, Interest, The commission, Discount, Dividends etc. are also
called revenue.

Expenses
Goods in business, Costs incurred for producing or acquiring goods and services. The
expenditure is called. Payments for receipt of goods and services are covered under expenditure.
wage, The freight, Salary paid on delivery and sale of railway carriages and goods, The rent,
advertisement, expense, Insurance is also included in the expenditure. The cost of increasing the
revenue in brief is called expenditure.

Types of Expenses
1. Direct Expenses –
Payment for receipt of goods and services – wages, the freight, Payment on delivery and sale of
railway carriages and goods

2. Indirect Expenses –
Increase revenue, the wages, The rent, advertisement, the expense, Insurance etc. Expenditure
(Spend): – Spend is the amount paid to increase the profit-earning capacity of the business.
Expenses that are paid for the acquisition or acquisition of assets in a business are called
expenses.

Gain (Benefit):-
this Is a kind of monetary gain, Which results from business like if 1,00,000 Goods worth Rs.
1,50,000 If sold in rupees 50,000 Receipt of money will be called profit. Basic Accounting
Terms

Cost (Cost):-
Raw materials used in business and its functions, Service and loan, The sum of all direct and
indirect expenses to be produced or used to make it useful is called cost of goods. The item
includes the raw material or assets.

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Discount (Deduction)
Concession granted to the concession given by the merchant to his customers, It is called
discount or discount. It is also called a gift. There are two types of discount –

1. Merchant discount or Trade Distcount) : – The seller makes a discount to his customers in
the face value, ie the list price, while purchasing the goods., It is called a trade discount with the
aim of increasing the sale of goods. It is not done in the accounting books.

2. Cash discount– Exemption provided for payment of cash or check value in a fixed or fixed
period, It is called cash discount, it is used in books of accounts.

Debtor
The person, Borrow goods or services from a firm or institution, It is called the debtor or debtor
of the business. To debtors’sundry debtors’;It is said that Nainkantal.

Creditor
The person, Goods or services are borrowed from a firm or institution, it is called a creditor.
(Sundry Creditors) It is said.

Liabilities Payable) –
There are certain amounts in the business which the merchant has to repay in future.Payable) It is
said. Those from whom credit is purchased by trade are creditors of the trade (Creditors) It is
said.

Entry
Entering the transaction in the books of account is called Entry.

Total sale (Turn Over) –

The sum of the cash and credit sales that occur in a certain sum is the total sales or Turn over It is
said. Sales cash = sales creditTurn over

Insolvent / Bankrupt: –
A person who is unable to repay his loan is called bankrupt. The liability of such a person is
more than the value of his property. In such a situation, he cannot repay his loan in full. He has
to take refuge in the court to partially repay the debt. The court allows him to partially repay the
debt by declaring him bankrupt, thereby freeing him from his debt.

Bad Debts / Debt: –

Unable to recover the amount due to the inability of the debtor or going bankrupt, For a creditor,
it is called bad debt or unapproachable loan.

Debit and credit

Each account has two sides. The left side is called the debit compound or the deviation and the
right side is called the deposit centroid or the integral. Accounting on the left side of an account

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is called a debit account, which is traditionally abbreviated Dr. It is thus written that accounting
on the right side of the account is called deposit account, which is traditionally Cr. Let’s write It
is noteworthy that in Indian bookkeeping system, the debit side is on the right and the deposit is
on the left.

Commission or revocation: –

Representative or agent in return for cooperating or representing in business activities; The

remuneration paid to Hamdjad is called commision.

Company (Firm): –
In a general sense, a firm refers to an entity that establishes a partnership or does a business or
business function, but in a broader sense each business entity can be referred to as a firm.

Account / Leger / Account :-

Ledger or ledger is a table in which soida are classified according to their nature and are written
in order at a place under a heading in simple words., The list that is made after sorting the
accounts related to property and income, etc., is an account or ledger.

Account the word is abbreviated in English as A / c. This abbreviated form is often used in
articles and each account is divided into two sides. Debit the left side Debit And right side Credit
They say

Key Features of Tally ERP 9

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Prepare journal entries for the following

1. Journalise the following in the books of Mr Harsh

1.4.19.1 Business started with cash Rs 80000
2.4.19 Opened current account with SBI Rs 2000
3.4.19 Bought goods from Shnamugam Rs 15000
4.4.19 Sold goods to Anu & Co Rs 18000
5.4.19 Settled Shanmugam A/c
7.4.19 Anu & Co settled their a/c
8.4.19 Kannappan bought goods form us Rs 30000
9.4.19 Ramasamy sold goods to us Rs 6000
10.4.19 Typewriter purchased for Rs 6000
11.4.19 Sold to Sekar and cash received Rs 1000
12.4.19 Sold to Ramanujam Rs 40000
15.4.19 Paid in to Bank Rs 2000
16.4.19 Stationery paid by cheque Rs 250
17.4.19 Withdrew from Bank Rs 2000
19.4.19 Paid salary to Raja Rs 2500 & Rs 3000 to Ravi
22.4.19 Paid Rent Rs 1000
24.4.19 Paid Advance Rs 4000
2. Journalise the following in the books of Mr Praveen

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3.

4. Prepare journal entries for the following transactions in the books of Mr Samarth

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5. Journalise the following in the books of Mr Sasi

1.6.20 Cash in hand Rs 8900

3.6.20 Bought goods for cash Rs 4300
5.6.20 Paid wagers Rs 4100
7.6.20 Withdrew from bank for exp Rs 7500
10.6.20 Sold goods for cash Rs 13500
10.6.20 Cash paid to Yusuf Rs 1950 and discount received Rs 50
13.6.20 Received cash from Banwarilal Rs 3900 and Discount allowed Rs 100
15.6.20 Purchased stationery from Ram on credit Rs 200
16.6.20 Paid postage & Stamps Rs 150
18.6.20 Amount introduced as capital Rs 5000
21.6.20 Received cash from Rajesh Rs 7840 and discount allowed Rs 160
26.6.20 Paid cash for travelling expenses rs 120
24.6.20 Amount paid in to Bank Rs 2500
30.6.20 Paid salaries Rs 2800

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Unit 2
STEP IN TO TALLY ERP 9

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UNIT 3
LEDGER CREATION

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Tally Ledger List

Group Name Ledger Name

All types of Purchase Accounts like
Purchase Local 12 %
Purchase Interstate 12%
Purchase Local 0%
Purchase Interstate 0%
Purchase (Composition)
Purchase Exempt (Unregistered Dealer)
Purchase Local (Exempt Registered)
Purchase Accounts
Purchase Taxable (Unregistered Dealer)
Purchase Nil Rated (Unregistered Dealer)
Purchase Reverse Charge
Purchase Import Taxable 12%
Purchase Import Exempt
Purchase Import Nil Rated
Purchase (Own Branch)
Purchase Return

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All types of Sales Accounts like
Sales Local 12 % (Registered)
Sales Interstate 12%
Sales Local Nil Rated
Sales Interstate Nil Rated
Sales Export With Bond
Sales Export Taxable
Sales Account
Export (0%)
Sales Local (Exempt Registered)
Sale To Consumer (Taxable 12%)
Sale To Consumer (0%)
Sale To Consumer (Exempt)
Sales (Own Branch)
Sale Return
All types of Taxes like
INPUT CGST SGST IGST CESS
OUTPUT GST SGST IGST CESS
Excise Duty Payable etc
Service Tax Payable
TDS Payables
Duties and Taxes
Input Vat Accounts
Output Vat Accounts
Cenvat Accounts
Sale tax
Income Tax
VAT Payable
All expenses which appear in Trading Account (except
purchases) like
Labor
Power
Electricity Expense (Factory)
Loading Unloading Expense
Warehousing Expenses
Custom Clearing Charges
Direct Expenses OR
Expenses(Direct) Carriage
Freight & Cartage
Import duty
Wages
Coal & Fuel
Coal, Gas & Water of Factory
Consumed Material
Export Duty

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Wages on Production
Delivery Charges(In Purchase Bill
All Indirect Expenses like
Rounded Off
Salary
Advertisement Expense
Maintenance Expense
Rent Expense
Director Remuneration Expense
Bad Debts
Printing Expense
Stationary Expense
Foreign Exchange fluctuation
Audit Fees
Professional Charges
Legal Expenses/Charges
Depreciation Expenses
Interest Expense
Penalty
Royalty
Bank charges
Indirect Expenses OR
Expense(Indirect) Commission allowed
Discount allowed
Donation & charity
Free sample
Insurance premium
Interest on loan
Legal charge
Loss by fire
Postage & courier
Repair charge
Taxi fare
Telephone charge
Travelling expenses
Outstanding expenses
Accrued expenses
Bad debt
Loss on theft
depreciation
Coffee Expenses
Coke Expenses

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Manager’s Commission
UPTT
Fuel Expenses A/c
Liability of Expenses
Preliminary Expenses A/c
Professional Fees
All Indirect Income like
Indirect Income OR
Income(Indirect) Discount Received
Interest on Investment
Only 2 Accounts Already Created like
Already Created in
Cash
Tally
Profit and Loss Account
All Bank Current Account
Bank Account All Bank FD Account
(Personal Savings Account and FD not recorded)
All types of deposits like
Security Deposit
Deposit Account
Electricity Deposit
Rent Deposit
All types of Capital Account like
Share Capital
Partner Capital Account
Partner Current Account
Capital A/c Proprietor Account
Drawings
Life insurance
Equity Capital A/c
Partners Capital A/c
Prepaid Maintenance Expense
Prepaid Expense
Prepaid Rent
Prepaid Insurance Charges
Current Assets
Interest Receivables
Bill receivable
Accrued income
Mutual Fund
CGST SGST IGST Credit
Bill drawn
Current Liabilities Bill Payable
CGST SGST IGST Payable
Sundry Creditor Any Party from Whom Goods Purchased

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Party from Whom any Bill of Expense Received
Any Party to whom we gave loan
Loans and Advances like Loan Given to Friends Relatives/Related Companies
(Assets) Any Party to whom we gave Advance
like Advance to Supplier
Any Party from whom we take loan.
We can also put group Secured loan or Unsecured loan
Debenture A/c
Loans Liabilities
Loans From Bank
Loans From Outside Party
Loans From Aravind(Friend)
All Fixed Assets on which Depreciation charged like
Furniture
Machine
Plant and Machinery
Mobile
Computers
Furniture and Fittings
Car
Fixed Assets
Scooter
Laptops
Office lighting
Land & Building
Good will
Factory lighting
Air Conditioner
Accumulated depreciation
Cash Credit Limit (CC)
Bank OCC
taken from bank
Overdraft Limit (OD)
Bank OD
taken from bank
Any Branch whose Separate Accounting Done
(If branch account maintained by head office only, then this
Branch/Divisions account not required)
Delhi Branch
Branch in division
Imprest Account
Cash in Hand (Cash kept with Employee)
Petty Cash
All types of Investments like
Investments Investment in Shares
Investment in Bonds

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Investment in Property/Plot etc.
Long term investment
Short Term Investment
Stock
Closing Stock
Stock-in-hand
Consignment Stock
Opening Stock
Preliminary Expenses
Misc. Expense (ASSET)
NOT yet written off
Suspense Account
Suspense A/c Any payment or receipt from party whose name not known
Suspense
Loans for whom Security Given
Secured Loan
like loan from bank/ Financial Institution
Loans taken for whom no Security given
Unsecured Loan Like Short term loan from directors
or loan from friends /relatives
Any type of reserve like
General Reserve
Capital Reserve
Reserve & Surplus Capital Reserve A/c
Investment Allowance Reserve A/c
Share Premium A/c
Reverse and Surplus
All Provisions except Provisions for bad debts
Provision for Tax
Provisions Provision for Expense
Provision for Sinking Fund
All types of Payables like Salary Payable, Audit fees Payable,
Any Party to Whom Sales Made
Sundry Debtors
Provision for Bad Debts
General Reserve
Retained Earring Share Premium
Any other Reserve
Any Income from main service like
Freight Charges Income
Delivery Charges Income
Direct Incomes OR
Transportation Charges Income
Income(Direct)
Professional Charges Income
Consultancy Charges Income
Maintenance Service Income

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1. Bring the opening balance in the books of Mr Ravi for the year ended Mar 2018 by
creating single ledger

Ledgers Amount Ledger Amount

Capital 32000 Outstanding Salary 1400
Stock 20000 Rent 4000
Debtors 8000 Telephone Charge 1500
Creditors 22000 Purchase return 4000
Machinery 20000 Miscellaneous Exp 12000
Cash 12000 Sales 34000
Bank OD 14000 Purchase 14000
Sales Return 8000 Prepaid Insurance 200
Loan 10800 Freight Charge 1000
Stationeries 1500 Reserves & Surplus 6000
Wages 10000 Salary 12000

Ans : (Opening Balance – 124200, Net Loss – 14000, Balance Sheet – 86200 )

2. Bring the opening balance in the books of Mr Kumar for the year ended Mar 2019 by
creating single ledger

Ledgers Amount Ledger Amount

Appreciation 3000 Sales 50000
Bank Loan 35000 Sales Tax 5800
Bills payable 20000 Audit Fee 3000
Cash 30000 Bank OD 35000
Discount Allowed 3500 Capital 120000
Discount Received 3400 Computer 60000
Godown Rent 4000 Dividend Received 1200
Land 120000 Drawings 5000
Purchase return 5000 Investment 40000
Salary 20000 Purchase 30000
Sundry Creditors 30000 Sales Return 2900

Ans : (Opening Balance - Net Profit – Balance Sheet – )

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Create Multiple Ledgers in Tally

In this section, we are going to see how to create multiple ledgers in Tally.

Step 1: Goto Gateway of Tally and then choose Accounts Info as follows:

Step 2: Choose the option Ledgers under Accounts Info

Step 3: Under multiple ledgers, click on Create option to create multi ledgers in Tally.

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Step 4: Enter the following details under a multi ledger creation screen.

Under Group: Under the list of Groups, choose the Bangalore Debtors. However, we can search
the

group by entering the group name under the group text field.

Step 5: Update the following details under the Group Bangalore Debtors screen.

1. Name of Ledgers: Enter the ledger name that we like to create in Tally.
2. Under: The under group field will be automatically filled by Tally as Bangalore Debtors.
3. Press Enter to continue after entering the details. We will get a message as
Accept: Yes or No. To accept the updated details in Tally, choose "Yes".

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Now we have successfully created multiple ledgers in Tally ERP 9.

How to Display Multiple Ledgers in Tally

In Tally application, after ledgers are created, we can check multiple ledgers by choosing the
display option.

Step 1: Use the following path to display multiple ledgers.

Gateway of Tally → Accounts Info → Ledgers → Multiple Ledgers (Display)

How to Alter Multi Ledgers in Tally

Use the following step to alter the multi ledgers in Tally.

Step 1: Using the following path, we can alter the change the details as per the requirements:

Gateway of Tally -> Accounts Info -> Ledgers -> Multiple Ledgers -> Choose Alter

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3. Bring the opening balance in the books of Mr Sasi for the year ended Mar 31st --------
using Multipe Ledger

Ledger Amount Ledger Amount

Stock 15500 Capital 90000
Land 35000 Creditors 19600
Machinery 50000 Purchase return 2100
Furniture 5000 Dividend received 1200
Purchase 106000 Sales 207000
Salaries 11000 Postage 1400
General Expenses 2500 Stationery 1300
Rent 3000 Freight Charges 2800
Wages 26000 Repairs 4500
Carriage on sales 4000 Bad Debts 600
Debtors 30000 Bank 6400
Cash 11000 Reserves & Surplus 1200
Sales Return 5100

Ans : (Opening Balance - Net Profit – Balance Sheet – )

4. Bring the opening balance in the books of Mr Manoj for the year ended 31st March -----
---- using multiple Ledger

Capital 920000 General Exp 60850

Bank 145340 Building 700000
Creditors 188520 Insurance 7830
Bills receivable 58440 Machinery 120000
Bills Payable 69300 Bad Debts 6130
Purchase 855220 Furniture 16400
Sales 1218500 Audit Fee 4000
Carriage Inward 12910 Debtor 156000
Provision 13200 Travel Expenses 3250
Carriage Outward 8000 Stock 150400
Interest Received 3400 Discount allowed 6200
Cash 19880 Sales Return 2850
Purchase Return 10000 Investment 89220

Ans : (Opening Balance - Net Profit – Balance Sheet – )

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5. Bring the opening balance in the books of Ms. Mithra for the year ended 31st March ----
-------- Using Multiple Ledger

Ledger Amount Ledger Amount

Discount allowed 9200 Cash at Bank 14000
Sales Return 3850 Bills Receivable 58440
Investment 160450 Purchase 155220
General Expenses 850 Carriage Inwards 12900
Insurance 8530 Carriage outwards 5000
Bad Debts 6130 Capital 400000
Advertisement Charges 6000 Creditors 120520
Travel Expenses 4250 Bills Payable 60300
Furniture 25000 Sales 218500
Debtors 40000 Provisions 13200
Opening Stock 18400 Interest Received 2700
Cash 17000 Building 200000
Purchase return 10000 Machinery 80000

Ans : (Opening Balance - Net Profit – Balance Sheet – )

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UNIT 4
ACCOUNTING VOUCHERS

6. Purchase Invoice

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6.

7.

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8.

9. SALES INVOICE

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10. Recording a Purchase Entry

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase
transactions of the company.
● Go to Gateway of Tally > Accounting Vouchers.
● Click on F9: Purchase on the Button Bar or press F9 .

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For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-
● Debit Purchase Account.
● Credit Party Account.

To pass a Purchase entry in the Invoice mode, you need to enable the option Enable Invoicing in F11:
Features (F1: Accounting or F2: Inventory Features) .
Invoice mode is of two types, namely:
● An Account Invoice
● An Item Invoice
Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an
Account Invoice. This is useful especially when a Service Bill is entered and does not include Inventory.
Pass a purchase Invoice for Service availed from XYZ Couriers.

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Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant
Ledger account. This is useful to record all the Inventory movements in books of account.
Pass a Purchase Invoice against purchase of Item A – 100 Nos. @ Rs. 10/= per quantity from LMN &
Company.

11. Recording Debit Note

Debit Note is a document issued to a party stating that you are debiting their Account in your Books of
Accounts for the stated reason or vise versa. It is commonly used in case of Purchase Returns,
Escalation/De-escalation in price, any other expenses incurred by you on behalf of the party etc.

Debit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features .
● To use it in Voucher mode you need to enable the feature in F11 :Accounting Features - Use debit
and credit notes .
● To make the entry in Invoice mode enable the option F11: Accounting Features - Record debit
notes in invoice mode .
To go to Debit Note Entry Screen,
● Go to Gateway of Tally > Accounting Vouchers.
● Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking Ctrl+V .
Pass an entry for the goods purchased returned to Supplier A:

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Special Keys for Voucher Narration Field:

● ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
● CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.

12. Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their Account in your Books of
Accounts for the stated reason or vise versa. It is commonly used in case of Sales Returns,
Escalation/De-escalation in price etc.
A Credit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory features.
• To use it in Voucher mode you need to enable the feature in F11 :Accounting Features - Use
Debit / Credit Notes.
• To make the entry in Invoice mode enable the option F11: Accounting Features - Use invoice
mode for Debit Notes.
To go to Credit Note Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
1. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.
You can toggle between voucher and Invoice mode by clicking Ctrl+V.
Pass an entry for goods sold returned from Customer A:

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Special Keys for Voucher Narration Field:

• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.

Do it yourself

1. Record the opening balance in the books of Ms Dharshini and record the
transaction and arrive P& L a/c & B/S

Ledger Amount Ledger Amount

ICICI Bank 200000 Capital 400000
Machinery 400000 Reserves & Surplus 50000
Land & Buildings 250000 Bank OD 60000
Cash 50000 Unpaid Expenses 300000
Investment 25000 Salary Due 50000
Furniture 25000 Bank Loan 40000
Free Hold Property 150000 General reserve 200000

Sundry Debtors:
Jana & Co was RS 10000 Bill No:26 (10 days)
Deena & Co was Rs 5000 Bill No:27 (15 Days)
Vini & Co was Rs 5000 B.No: 32 (12Days)

Sundry Creditors:
Babu Traders was Rs 4000 B.No: 28 (20 days)
Vijay Traders was Rs 6000 B.No:32 (10days)
Sangeetha Traders was Rs 10000 B.No: 12 (15Days)

Transactions:
01.4.15 Paid for Electricity charges Rs 20000
10.4.15 received Commission Rs 30000
13.4.15 Sold goods to Jana & Co rs 16000 B.no:25 (30 days)
16.4.15 Received cheque from Jana & Co Rs 10000 B.No:26 (10 days)
20.4.15 Paid salary Rs 30000
25.4.15 Paid telephone charges Rs 40000
01.5.15 Withdrew for personal use Rs 1800
01.5.15 Salary due Rs 1500

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07.5.15 Dividend received Rs 100000

08.5.15 Sold goods to Pavi & Co Rs 10000 B.No:32 (15days)
12.5.15 Sold goods to Vini & Co rs 8000 B.No: 28 (10 Days)
16.5.15 Purchased furniture for cash Rs 30000
18.5.15 Paid trade expenses Rs 200
20.5.15 Withdrew from Bank Rs 2000
01.6.15 Sold gods on cash Rs 4000
13.6.15 Purchase goods for cash Rs 250
18.6.15 Paid water tax Rs 450
22.6.15 Dividend received Rs 50000
01.7.15 Paid Postage Rs 1500
12.7.15 Received Interest Rs 20000
18.7.15 Purchase goods on credit from Babu Traders Rs 8000
22.7.15 Paid wages by cheque Rs 2500
25.7.15 Cash withdrew from Bank Rs 10000
29.7.15 25% of profit amount transferred to Profit & loss account.

(Ans: Opening Bal- 1120000, GP – 27250, NP – 136600, B/S – 1261300, TB – 1364500)

2. Bring the opening balance in the books of Mr Krishnan and record the transaction in
the relevant voucher.

Ledger Amount Ledger Amount

Capital 400000 Reserves & Surplus 120000
Cash 300000 Furniture 50000
Bank Loan 200000 Profit & Loss a/c 20000
City Union Bank 100000 Land & Buildings 60000
Outstanding Salary 50000 Prepaid Expenses 20000
Investment 100000 Machinery 60000
Bank OD 150000 Stock 150000

Sundry Creditors:
Fahmi & Co Rs 35000 B.No: FC22(10 days)
Kumar & Co Rs 5000 B.No:KM20 (15days)
Mano& Co Rs 10000 B.No: MC15 (20 days)

Sundry Debtors:
Dharshana Traders Rs 70000 B.NO: DT85 (15days)
National Traders Rs 50000 B.NO: NT65 (25days)
Anbu Agencies Rs 30000 B.No: AA02 (30days)

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Transactions:

01.4.16 Paid advertisement charges Rs 2000

05.4.16 Amount withdrew for personal use Rs50000
09.4.16 Interest received Rs 10000
13.4.16 Cash deposited in to bank Rs 6000
17.4.16 Amount paid to Fahmi & co Rs 30000 and balance Rs 5000 discount received.
20.4.16 Goods purchases from Compaq Ltd was Rs 20000 B.No: 22
25.4.16 Amount received from national traders Rs 30000
28.4.16 Salary paid by cheque Rs 15000
30.4.16 Freight Charge paid Rs 2500
06.5.16 Depreciation on Machinery and Land & Buildings 5 % and 10% respectively
12.5.16 Stock of Rs 30000 used for Propreitor’s own use
16.5.16 Goods sold to Aravind Rs 350000 B.No:67 (15days)
18.5.16 Bank OD settled Rs 50000
20.5.16 Cash withdraw from Bank Rs 40000
01.6.16 Issued debit note against Compaq Ltd was Rs 15000
02.6.16 Credit note received from Aravind was Rs 10000
20.6.16 Paid wages by cheque Rs 10000
28.6.16 Paid postage for Rs 250
30.6.16 Paid stationery Rs 75

(Ans: Opening Balance - 990000, GP – 322500, NP – 311175, B/S – 1141175, TB – 1324000)

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