New Books

Educational mode is
the non licence

version of tally and
its only for To Activate Tally you want
education purpose. to purchase from
In free version you www.tallysolutions.com
can pass entries in 3
days only. 1st,2nd &
31st of the month.
Press Esc Key

Go to Create Company
Company Info  Create Company

(If company is already selected then pressing Alt+F1 to create a new company)
No Company Is Selected Here
Types of company
1) Normal Company (No Password)
2) Password Company
a. Tally vault Password (Show company with *****)
b. Use security control (Show company but don`t open without user and password)
COMPANY CREATION
1st Method :- Creation Of Normal Company In Tally
2nd Method :- Creation Of Tally Vault Password Company In Tally
3rd Method :- Creation Of Security Control Company In Tally
Note :- You can create company any one given the following above.
DELETE A COMPANY
Select A Company Which You Want To Delete
Here company is select
Press Alt+F3  Alter  Enter  Enter 
Press Alt+D  Enter  Enter

BACKUP & RESTORE ANY COMPANY
BACKUP :-
Click Start  Computer (Window+E)  Local Disk (D:)
Create A Folder In D: Drive (Right Click New  Folder) And Rename It Eg. Nimitbackup
Open Tally  Backup  Destination : D:\Nimitbackup  Enter  Select Company  End Of List 
Accept
Select company you

want to Backup
To Check Your Company Is In Backup Or Not, Click Start  Computer  Local Disk (D:) Open
nimitbackup folder
RESTORE :-
1) Delete Your Company ( See Page No. 10)
2)Then To Restore Your Company
Go To Restore
To Check Your Company Restore Or Not
Go To Select Company  See Your Company

CREATION OF LEDGER IN TALLY
Gateway of Tally  Accounts Info  Ledger  Create
In Tally Two Ledger Are Already Created In Any Company
(I) Cash A/C

(II) Profit & Loss A/C
Once You Create The Ledger You Can View This Ledger By Using Display Option
And If You Want To Delete Ledger And Make Any Kind Of Changes In This Ledger You Can Use Alter
Option
HOW TO CREATE , ALTER AND DELETE GROUP

Group Creation :
The Single Group allows you to create on group at a time where as the Multiple Group
option allows you to create several related groups at a time so it saves your time.
Single Group Creation

Gateway of Tally  Account Info.  Groups  Create.
Name Customer
Alias Enter
Under Sundry Debtor
Group Behaves Like a Sub-Ledger Field. No
Net Debit/Credit Balances for Reporting No
Used for Calculation (e.g. Taxes, Discounts) No
Method to Allocate When used in Purchase Not Applicable
Invoice
Press Enter Accept the Screen
The most commonly used groups are:
1) Sales Account
Account related to Sale, Sale Return
2) Purchase Account
Account Related To Purchase, Purchase Return
3) Direct Expenses
Accounts related to expenses incurred on product under direct expenses. E.g.
Wages, Power Bill, Factory Rent, Factory Insurance, Carriage Inward Etc.
4) Indirect Expenses
Account Related To Rent Paid, Salary Paid, Advertising, Printing And
Stationery Discount Paid, Interest Paid, Bed Debts Etc.
5) Direct Income
Accounts related to income earned on product For e.g. sale of scrap material,
discount received on purchase of product of raw material, Apprentice premium
etc.
6) Indirect Income
Accounts related to Rent received, Interest received, Commission Received
etc.
7) Capital Account
Accounts Related to Capital, Drawing, LIC, Income Tax Etc.
8) Reserve & Surplus

This amount is part of profit set aside every year for future risk of the business;
such accounts come under Reserve & Surplus. For e.g. Capital reserve,
General reserve, Reserve for Depreciation, Reserve for Bad Debts etc.
9) Secured Loan
Accounts Those Are Related To Loans That Have Been Obtained Against Security Of
Some Asset. E.g. Bajaj Finance, Gold Loan, Home Loan Etc.
10) Unsecured Loan

Accounts those are related to loans obtained without any security. For e.g.
Loans from Director, Partners or outsides parties.
11) Loan & Advance

Accounts Related to Advance Salary, Loan to Anil
12) Sundry Creditors

These accounts are created against credit purchase from the dealers. All such
dealer names come under Sundry Creditors Account.
13) Sundry Debtor

These accounts are created against credit sale to the Customers; all such
customer names come under Sundry Debtors Account.
14) Bank Overdraft

Excess withdrawal from Bank against Current a/c comes under Bank Overdraft E.g. Bank
loan
15) Fixed Asset

All those assets used in a business for a certain number of years that cannot
be moved frequently. E.g. Building, Machinery, Plant, Land, Computer, Car
etc.
16) Investment
Investment accounts like Investment in Shares, Lottery, Mutual Fund Etc.
17) Deposite
Accounts related to FD, RD, KSP(Kisan Vikas Patra), NSC, PPF Etc.
18) Stock in Hand

Accounts related to Opening stock, closing stock
19) Duties & Taxes

Accounts Related To Sales TAX, CST, VAT, TDS, Service Tax, GST, Sb Cess, K.K. Cess,
Surcharge
20) Provision
Accounts Related To Provision For Bad Debts, Provision For Income Tax, Provision For
Sundry Creditors/Debtors
Now Create The Following Ledgers For Practice :-
SNO. LEDGER GROUP/UNDER

1 ADVERTISEMENT EXPENSE INDIRECT EXPENSE
2 AIR CONDITIONER FIXED ASSETS
3 BAD DEBTS INDIRECT EXPENSE
4 BAD DEBTS RECEIVED INDIRECT INCOME
5 BANK BANK ACCOUNTS
6 BANK BALANCE BANK ACCOUNTS
7 BANK CHARGE INDIRECT EXPENSE
8 BANK LOAN LOAN & LIABILITIES
9 BANK OVERDRAFT BANK ODD
10 BILL PAYABLE CURRENT LIABILITY
11 BILL RECEIVABLE CURRENT ASSETS
12 BOND CURRENT ASSETS
13 BUILDING FIXED ASSETS
14 CAPITAL CAPITAL ACCOUNT
15 CAR FIXED ASSETS
16 CAR EXPENSE INDIRECT EXPENSE
17 CAR REPAIR INDIRECT EXPENSE
18 CARRIAGE DIRECT EXPENSE
19 CARRIAGE ON SALE INDIRECT EXPENSE
20 CASH CASH IN HAND
21 CASH AT BANK BANK ACCOUNTS
22 CLOSING STOCK STOCK IN HAND
23 COAL & FUEL DIRECT EXPENSE
4 COAL, GAS & WATER OF FACTORY DIRECT EXPENSE
25 COFFEE EXPENSE INDIRECT EXPENSE
26 COMMISSION RECEIVED INDIRECT INCOME
27 COMMISION ALLOWED INDIRECT EXPENSE
28 COMPUTER FIXED ASSETS
29 OPENING STOCK CURRENT ASSETS
30 CREDITOR SUNDRY CREDITOR
31 DEBTOR SUNDRY DEBTOR
32 DEPRECIATION INDIRECT EXPENSE
33 DISCOUNT RECEIVED INDIRECT INCOME
34 DISCOUNT ALLOWED INDIRECT EXPENSE
35 DONATION INDIRECT EXPENSE
36 DRAWING CAPITAL ACCOUNT
37 ELECTRICITY EXPENSE INDIRECT EXPENSE
38 EXPENSE ON PURCHASE DIRECT EXPENSE
39 EXPENSE ON SALE INDIRECT EXPENSE
40 FACTORY FIXED ASSETS
41 FACTORY EXPENSE DIRECT EXPENSE
42 FACTORY INCOME DIRECT INCOME
43 FREIGHT DIRECT EXPENSE
44 FREIGHT INWARD DIRECT EXPENSE
45 FREIGHT ON PURCHASE DIRECT EXPENSE
46 FREIGHT ON SALE INDIRECT EXPENSE
47 FUEL & POWER OF FACTORY DIRECT EXPENSE
48 FURNITURE & FITTING FIXED ASSETS
49 GAS & WATER DIRECT EXPENSE
50 GENERAL EXPENSE INDIRECT EXPENSE
51 RENT INDIRECT EXPENSE
52 INCOME TAX CAPITAL ACCOUNT
53 INPUT VAT DUTIES & TAXES
54 INVESTMENT INVESTMENT
55 LIC PREMIUM CAPITAL ACCOUNT
56 LIFE INSURANCE CAPITAL ACCOUNT
57 LOSS BY DAMAGE INDIRECT EXPENSE
58 LOSS BY FIRE INDIRECT EXPENSE
59 LOSS ON ASSETS INDIRECT EXPENSE
60 MISCELLANEOUS EXPENSE INDIRECT EXPENSE
61 MOTOR CYCLE FIXED ASSETS
62 OFFICE EXPENSE INDIRECT EXPENSE
63 OUTSTANDING EXPENSE CURRENT LIABILTY
64 PERSONAL EXPENSE CAPITAL ACCOUNT
65 PREPAID EXPENSE CURRENT ASSETS
66 PURCHASE PURCHASE ACCOUNT
67 PURCHASE RETURN PURCHASE ACCOUNT
68 RENT INDIRECT EXPENSE
69 RENT ON PURCHASE DIRECT EXPENSE
70 SALARY INDIRECT EXPENSE
71 SUNDRY CREDITOR SUNDRY CREDITOR
72 SUNDRY DEBTOR SUNDRY DEBTOR
73 TRADE EXPENSE INDIRECT EXPENSE
74 TYPEWRITER FIXED ASSETS
75 WAGES DIRECT EXPENSE
Intro of F11 Features
: - There are Three Main Features
1) Accounting
2) Inventory
3) Statutory & Taxation
We are going to make changes means turn ON/OFF

features as per our requirement.
Intro of F12Configuration
There are some F12 page configuration

Means Settings related to Account and
inventory voucher as well as printing
settings and Data
configurations…etc.
Every voucher and Report has their

different configuration settings and that
can be alter by pressing F12 While
working with that voucher screen.
Basic concept of accounting
Accounting : It is an art of recording, classifying and summarizing in significant manner and in terms of
money, transactions and events which are of financial character and interpreting the results there of.
Business Transaction : A business transaction is “The movement of money and money’s worth form one
person to another”. Or exchange of values between two parties is also known as “Business Transaction”.
Purchase : A purchase means goods purchased by a businessman from suppliers.
Sales : Sales is goods sold by a businessman to his customers.
Purchase Return or Rejection out or Outward Invoice : Purchase return means the return of the full or a
part of goods purchased by the businessman to his suppliers.
Sales Return or Rejection in or Inward Invoice : Sales return means the return of the full or a part of the
goods sold by the customer to the businessman.
Assets : Assets are the things and properties possessed by a businessman not for resale but for the use in
the business.
Liabilities : All the amounts payable by a business concern to outsiders are called liabilities.
Capital : Capital is the amount invested for starting a business by a person.
Debtors : Debtor is the person who owes amounts to the businessman.
Creditor : Creditor is the person to whom amounts are owed by the businessman.
Debit : The receiving aspect of a transaction is called debit or Dr.
Credit : The giving aspect of a transaction is called credit or Cr.
Drawings : Drawings are the amounts withdrawn (taken back) by the businessman from his business for his
personal, private and domestic purpose. Drawings may be made in the form cash, goods and assets of the
business.
Receipts : It is a document issued by the receiver of cash to the giver of cash acknowledging the cash
received voucher.
Account : Account is a summarized record of all the transactions relating to every person, every thing or
property and every type of service.
Ledger : The book of final entry where accounts lie.
Journal entries : A daily record of transaction.
Trail Balance : It is a statement of all the ledger account balances prepared at the end of particular period
to verify the accuracy of the entries made in books of accounts.
Profit : Excess of credit side over debit side.
Profit and loss account : It is prepared to ascertain actual profit or loss of the business.
Balance Sheet : To ascertain the financial position of the business. It is a statement of assets and liabilities.
GOLDEN RULES OF ACCOUNTING
They are also known as the traditional rules of accounting or the rules of debit and credit.
1. Personal Account
Personal account relates to Persons.
E.g. - Ram, NIMIT Institute, Maruti Company etc
The Golden Rule for Personal Account is.
Debit the Receiver and Credit the Giver
Example: Paid Cash to Ram Rs 1,000
Ram (Receiver) Dr 1,000

Cash A/c Cr 1,000
2. Real Account
Real account relates to property/Assets.
E.g. – Furniture, Land & Building, Computer
The Golden Rule for Real Account is,
Debit What Comes in and Credit What Goes out
Example: purchase machinery for cash Rs 5,000
Machinery A/c (Come In) Dr 5,000

Cash A/C (Goes Out) Cr 5,000
3. Nominal Account
Nominal account is an account that relates to business expenses, loss, income and gains.
E.g. – Rent Paid, Salary Paid, Commission Received, Interest Received
The Golden Rule for Nominal Account is,
Debit All Expenses and Loss and Credit all Income and Gains
Example 1: Paid rent Rs 2,000
Rent A/C (Expense) Dr 2,000

Cash A/C (Goes Out) Cr 2,000
Example 2: Commission Received Rs 500
Cash A/C (Come In) Dr 500

Commission Rec.(Income) Cr 500
RULES PERSONAL A/C REAL A/C NOMINAL A/C

Debit (Dr) Receiver What come in All expenses & losses
Credit (Cr) Giver What goes out All income & gain
ACCOUNTING VOUCHER
A voucher is a document that contains details of a financial transaction. It is like
Journal Entry. For every transaction, we can use appropriate tally voucher to enter
the details into the ledgers and update the financial position of the company.
Mainly there are 3 types of Voucher Entry:-

1) Accounting voucher 3) Inventory voucher
2) Non-Accounting voucher –(Optional)
There Are Mainly Eight Types Of Accounting Voucher
1. CONTRA (Press F4)
Here Are Only Shown Cash And Bank Ledger.
Cash Deposite Into Sbi Bank Rs 5000

Sbi Bank A/C Dr 5000
To Cash A/C 5000
Transfer Rs 1000 Form Axis Bank To Icici Bank

Icici Bank A/C Dr 1000
To Axis Bank A/C 1000
2. PAYMENT (F5)
All Types Of Payment (Expenses) Entry Made By Cash Or Bank

Note: (In Payment Voucher Cash / Bank Always Credit And Operating Expenses Are Debit As Per
Requirement.)
Paid Rent Rs 2000

Rent A/C Dr 2000
To Cash A/C 2000
Purchase Goods For Cash Rs 2500
Purchase A/C Dr 2500
To Cash A/C 2500
3. RECEIPT (F6)
All Types Of Receipt (Or Income) Entry Made By Cash Or Bank

Note: (In Receipt Voucher Cash / Bank Always Debit And Party Or Any Type Of Income Credit As Per
Requirement.)
Commission Received Rs 500

Cash A/C Dr 500
To Commission Received A/C 500
Goods Sold Rs 3000 For Cash

Cash A/C Dr 3000
To Sale A/C 3000
4. JOURNAL (F7)
Here Never Shown Cash And Bank Ledger

Journal Voucher Is Used For Adjustment Entries Eg : Bad Debts, Outstanding Expenses, Prepaid/Advance
Expenses, Depreciation, Interest On Capital, Interest On Drawing, Cancellation Of Cheque.
Provide Depreciation On Machinery Rs 500

Depreciation On Machinery A/C Dr 500
To Machinery A/C 500
5. SALES(Press F8 Then Ctrl+V To Convert into Voucher Format)
All Types Of Credit Sale Entry
Sold Goods To Ram For Rs 5000

Ram Dr 5000
To Sale A/C 5000
6. PURCHASE (Press F9 Then Ctrl+V to Convert into Voucher Format)
All Types Of Credit Purchase Entry
Purchase Goods To Ravi For Rs 4000

Purchase A/C Dr 4000
To Ravi 4000
Note:- Firstly We Have To Enable Debit Note/Credit Note By Following Methods
Press F11 Then F1(Accounting Feature)
Use Debit/Credit Note : Yes

Then Accept The Screen
7. CREDIT NOTE (CTRL + F8)
All Types Of Credit Sale Return Entry.
Ram Return Goods To Us For Rs 500

Sale Return A/C Dr 500
To Ram 500
8. DEBIT NOTE ( CTRL + F9)
All Types Of Credit Purchase Return Entry.
Return Goods To Ravi For Rs 800

Ravi Dr 800
To Purhase Return A/C 800
To Check Details  Display  Day Book  Press F4  Select Voucher

DO THIS QUESTION FOR YOURSELF FOR PRACTICE :-
Create a company Shyam Sunder for the year 2020-21, and pass necessary Journal Entries
Journalize the following transactions
1. Commenced business with cash Rs.10, 000.

2. Deposit into bank Rs. 15,000
3. Bought office furniture Rs.3,000
4. Sold goods for cash Rs.2,500
5. Purchased goods form Mr X on credit Rs.2,000
6. Sold goods to Mr Y on credit Rs.3,000
7. Received cash form Mr. Y on account Rs.2,000
8. Paid cash to Mr X Rs. 1,000
9. Received commission Rs. 50
10. Received interest on bank deposit Rs. 100
11. Paid into bank Rs. 1,000
12. Paid for advertisement Rs.500
13. Purchased goods for cash Rs. 800
14. Sold goods for cash Rs. 1,500
15. Paid salary Rs. 500
Gateway of tally-Account info-Ledger-Create
Gateway of tally – Accounting voucher
Sl. Type of
No Key Voucher Ledger Group account Principles Amount
Cr. Capital Capital account Personal Giver 10,000
1 F6 Receipt Dr. Cash Cash in hand Real Comes in 10,000
Cr. Cash Cash in hand Real Goes out 15,000
2 F4 Contra Dr. Bank Bank account Real Comes in 15,000
Dr. Office
furniture Fixed asset Real Comes in 3,000
3 F5 Payment Cr. Cash Cash in hand Real Goes out 3,000
Dr. Cash Cash in hand Real Comes in 2,500
4 F8 Payment Cr. Sales Sales account Real Goes out 2,500
Cr. X Sundry creditor Personal Giver 2,000

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

2020
June 1. Paid Cash To Mahesh Rs 9,600 And Discount Received From Him Rs 400
June 4. Received cash From Arun Rs 4,900 And Discount Allowed To Him Rs 100
June 10. Goods Sold To Harish Rs 30,000
June 12. Harish Returned Goods Rs 2,000
June 14. Received Cash From Harish Rs 27,500 In Full Settlement of His Account.
June 20. Sold Goods To Gopal of The List Price of Rs 60,000 At 10% Trade Discount.
June 23. Purchased Goods From Ravi of The List Price Of Rs 20,000 At 15% Trade Discount.
Pass Journal Entries In The Book of Raghunath Brothers From The Following Transactions :-
2020
June 1. Raghunath Brothers Started Business With Cash Rs 80,000, Goods Rs 40,000 And Furniture Rs 20,000.
June 2. Sold Goods To Nandlal of The List Price Of Rs 20,000 At Trade Discount of 10%.
June 4. Nandlal Returned Goods of The List Price of Rs 4,000
June 8 Received From Nandlal Rs 14,150 In Full Settlement of His Account.
June 10. Purchased Goods From Brij Mohan of The List Price of Rs 10,000 At 15% Trade Discount.
June 13. Returned Goods To Brij Mohan of The List Price of Rs 1,000
June 16. Settled The Account of Brij Mohan By Paying Cash, Under A Discount At 4%
June 18. Purchased Goods From Anil Rs 5,000 And Sunil Rs 10,000
June 19. Paid Cash To Anil Rs 1,900 And Discount Received Rs 100
June 20. Paid Rs 9,800 To Sunil In Full Settlement of His Account.
June 20. Bought A Table Fan For Rs 1,200 For The Domestic Use of Raghunath.
June 25. Sold Goods For Cash of The List Price Of Rs 8,000 At 10% Trade discount And 3% Cash Discount
June 30. Paid Rent Rs 800, Trade Expenses Rs 700 And Travelling Expenses Rs 380.
Pass Journal Entries Of The Following:

2020
March 1. Paid Into Bank For Opening A Current Account Rs 25,000.
March 5. Goods Purchased And Payment Made By Cheque Rs 10,000.
March 8. Cash Sale Rs 40,000, Out Of This Amount Rs 30000 Deposited In Bank
March 10. Withdraw For Private Use Rs 3,000
March 12. Withdrawn From Bank For Private Use Rs 4,000
March 15. Withdrawn From Bank Rs 12,000
March 20. Placed On Fixed Deposite Account At Bank By Transferring From Current Account Rs 20,000
1). Enter The Following Transactions In The Journal Of Siya Ram & Sons :
April 1 Siya Ram & Sons Started Business With Cash 50,000
Cash a/c Dr 50000
Capital a/c Cr 50000
2 Purchased Goods For Cash 20,000
Purchase a/c Dr 20000
Cash a/c Cr 20000
4 Purchased Goods From Subhash 12,000
Subhash Cr 12000
5 Purchased Furniture For Cash 6,000
Furniture a/c Dr 6000
Cash a/c Cr 6000
7 Sold Goods For Cash 13,000
Cash a/c Dr 13000
Sale a/c Cr 13000
9 Sold Goods To Mahesh 15,000
Mahesh Dr 15000
Sale a/c Cr 15000
10 Paid Cash To Subhash 8,000
Subhash Dr 8000
Cash a/c Cr 8000
12 Received Cash From Mahesh 10,000
Cash a/c Dr 10000
Mahesh Cr 10000
16 Purchased Goods From Ravi For Cash 7,500
Cash a/c Cr 7500
17 Purchased Goods From Ravi 5,000
Ravi Cr 5000
18 Sold Goods To Suresh For Cash 12,600
Cash a/c Dr 12600
Sale a/c Cr 12600
19 Sold Goods To Suresh 7,000
Suresh Dr 7000
Sale a/c Cr 7000
20 Bought Machinery For Cash 8,000
Machinery a/c Dr 8000
Cash a/c Cr 8000
24 Withdrew Cash From Office For Personal Use 2,500
Drawing a/c Dr 2500
Cash a/c Cr 2500
27 Paid Rent 400
Rent a/c Dr 400
Cash a/c Cr 400
29 Paid Wages 450
Wages a/c Dr 450
Cash a/c Cr 450
30 Paid Salary To Gopal 1,200
Salary a/c Dr 1200
Cash a/c Cr 1200
30 Received Commission 200
Cash a/c Dr 200
Commission a/c Cr 200
2). Record The Following Transactions In The Journal Of Vishal Bros:
May 1 Commenced Business With Cash 5,00,000

Cash a/c Dr 500000
2 Goods Purchased From Mohan For Cash 50,000
Cash a/c Cr 50000
3 Goods Purchased From Ajay 1,20,000
Ajay Cr 120000
4 Goods Returned To Ajay 5,000
Ajay Dr 5000
Purchase return a/c Cr 5000
8 Goods Sold To Rajiv 40,000
Rajiv Dr 40000
Sale a/c Cr 40000
12 Rajiv Returned 10% Of Goods
Sale return a/c Dr 4000
Rajiv Cr 4000
3). Record The Following Transactions In The Journal Of Naresh & Co.
June 1 Paid Cash To Mahesh 9,600
And Discount Received From Him 400
Mahesh Dr 10000
Cash a/c Cr 9600
Discount received a/c Cr 400
4 Received Cash From Arun 4,900
And Discount Allowed To Him 100
Cash a/c Dr 4900
Discount allowed a/c Dr 100
Arun Cr 5000
10 Goods Sold To Harish 30,000
Harish Dr 30000
Sale a/c Cr 30000
12 Harish Returned Goods 2,000
Harish Cr 2000
14 Received Cash From Harish 27500 In Full Settlement Of His
Account
Cash a/c Dr 27500
Harish Cr 28000
20 Sold Goods To Gopal Of The List Price Of 60000 At 10% Trade
Discount
Gopal Dr 54000
Sale a/c Cr 54000
23 Purchased Goods From Ravi Of The List Price Of 20000 At
15% Trade Discount
Ravi Cr 17000
4). Give Journal Entries For The Following Transactions In The Books Of Pratab Rai & Sons:
April 1 Started Business With Cash 1,00,000

Cash a/c Dr 100000
2 Cash Purchased 48,000
Purchased a/c Dr 48000
Cash a/c Cr 48000
3 Sold Goods To Vasudev 10,000
Vasudev Dr 10000
Sale a/c Cr 10000
6 Returned Defective Goods By Vasudev 1,000
Vasudev Cr 1000
8 Received Cash From Vasudev 8,800
And Discount Allowed 200
Cash a/c Dr 8800
Vasudev Cr 10000
9 Chanderkant Sold Goods From Us 20,000
Chanderkant Cr 20000
10 Pritam Purchased Goods From Us 12,000
Pritam Dr 12000
Sale a/c Cr 12000
10 Paid Insurance Premium 500
Insurance premium a/c Dr 500
Cash a/c Cr 500
12 Paid For Life Insurance Premium Of Sh. Partab Rai 2,000
Drawing a/c Dr 2000
Cash a/c Cr 2000
15 Paid Cash To Chanderkant 13,780
And Discount Allowed By Them 220
Chanderkant Dr 14000
Cash a/c Cr 13780
Discount received Cr 220
18 Bought Goods From Pawan List Price 15000 Less 20%
Trade Discount
Pawan Cr 12000
22 Paid To Pawan 8,000
Pawan Dr 8000
Cash a/c Cr 8000
26 Received Cash From Pritam 6,000
Cash a/c Dr 6000
Pritam Cr 6000
30 Paid Wages 2000, Advertisement Expenses 2500 And
Salaries Paid 9000
Wages a/c Dr 2000
Advertisement a/c Dr 2500
Salary a/c Dr 9000
Cash a/c Cr 13500
30 Received Interest 500
Cash a/c Dr 500
Interest a/c Cr 500
30 Received Commisssion 2,000
Cash a/c Dr 2000
Commission received a/c Cr 2000
5). Enter The Following Transactions In The Journal Of Hari & Co.
April 1 Purchased Goods From Vinod Of The List Price Of 40,000 At 10% Trade
Discount
Vinod Cr 36000
2 Returned Goods To Vinod Of The List Price Of 1,000
Vinod Dr 900
6 Paid Cash To Vinod 34,000 In Full Settlement Of His Account
Vinod Dr 35100
Cash a/c Cr 34000
6). Enter The Following Transactions In The Journal Of Gaurav Bros.
May 10 Sold Goods To Kailash Of The List Price Of 1,00,000 At Trade Discount Of 15%
Kailash Dr 85000
Sale a/c Cr 85000
13 Kailash Returned Goods Of The List Price Of 4,000
Kailash Cr 3400
18 Received From Kailash The Amount Due From Him, Under A Cash Discount Of
5%
Cash a/c Dr 77520
Kailash Cr 81600
7). Pass The Journal Entries In The Books Of Raghunath Brothers From The Following Transactions:
June 1 Raghunath Brothers Started Business With Cash 80,000, Goods 40,000
And Furniture 20,000
Cash a/c Dr 80000
Furniture a/c Dr 20000
2 Sold Goods To Nandlal Of The List Price Of 20,000 At Trade Discount Of
10%
Nandlal Dr 18000
Sale a/c Cr 18000
4 Nandlal Retured Goods Of The List Price Of 40,000
Nandlal Cr 3600
8 Received From Nandlal 14,150 In Full Settlement Of His Account
Cash a/c Dr 14150
Nandlal Cr 15000
10 Purchased Goods From Brij Mohan Of The List Price Of 10,000 At 15%
Trade Discount
Brij mohan Cr 8500
13 Returned Goods To Brij Mohan Of The List Price Of 1,000
Brij mohan Dr 850
16 Settled The Account Of Brij Mohan By Paying Cash Under A Discount Of
4%
Brij mohan Dr 7650
Cash a/c Cr 7344
18 Purchased Goods From Anil 5,000 And Sunil 10,000
Anil Cr 5000
Sunil Cr 10000
19 Paid Cash To Anil 1900 And Discount Received 100
Anil Dr 2000
Cash a/c Cr 1900
20 Paid 9800 To Sunil In Full Settlement Of His Account
Sunil Dr 10000
Cash a/c Cr 9800
20 Bought A Table Fan For 1200 For The Domestic Use Of Raghunath.
Drawing a/c Dr 1200
Cash a/c Cr 1200
25 Sold Goods For Cash Of The List Price Of 8000 At 10% Trade Discount
And 3% Cash Discount
Cash a/c Dr 6984
Sale a/c Cr 7200
30 Paid Rent 800 Trade Discount 700 And Travelling Expenses 380
Rent a/c Dr 800
Trade expenses a/c Dr 700
Travelling expense a/c Dr 350
Cash a/c Cr 1880
8). Pass Journal Entries For The Following:
March 1 Paid Into Bank For Opening A Current Account 25000

Bank a/c Dr 25000
Cash a/c Cr 25000
5 Goods Purchased And Payment Made By Cheque 10000
Bank a/c Cr 10000
8 Cash Sale 40000 Out Of This Amount 30000 Deposited In
Bank
Cash a/c Dr 10000
Bank a/c Dr 30000
Sale a/c Cr 40000
10 Withdrawn For Private Use 3000
Drawing a/c Dr 3000
Cash a/c Cr 3000
12 Withdrawn From Bank For Private Use 4000
Drawing a/c Dr 4000
Bank a/c Cr 4000
15 Withdrawn From Bank 12000
Cash a/c Dr 12000
Bank a/c Cr 12000
20 Place On Fixed Deposit Account At Bank By Transferring 20000
From Current Account
Fixed deposite a/c Dr 20000
Bank a/c Cr 20000
9). The Following Balance Appeared In The Books Of Vishal Stores On 1st April 2015 :
Assets:- Cash 15000, Bank Balance 5000, Furniture 3600, Debtors 24000( X 6000, Y 8000 And Z 10000)
Liabilities:- Bank Loan 10000, Creditors 12500( Ajay 5000, Vijay 7500)
Following The Transactions Took Place During April 2015
April 2 Bought Goods From Kailash For 20000 At A Trade Discount Of 10% And Cash
Discount Of 2%, Paid 60% Amount Immediately
Cash a/c Cr 10584
Discount allowed a/c Cr 216
Kailash Cr 7200
4 Sold Goods To X For 9000
X Dr 9000
Sale a/c Cr 9000
5 Received 14800 From X In Full Settlement Of His Account
Cash a/c Dr 14800
X Cr 15000
6 Cash Deposited Into Bank 10000
Bank a/c Dr 10000
Cash a/c Cr 10000
8 Cheque Received From Y For 7850 In Full Settlement Of His Account. This
Cheque Was Immediately Deposited Into Bank.
Bank a/c Dr 7850
Y Cr 8000
10 Received A Cheque From Z 2000
Cheque in hand a/c Dr 2000
Z Cr 20000
12 Cheque Received From Z Deposited Into Bank
Bank a/c Dr 2000
Cheque in hand a/c Cr 2000
15 Cheque Received From Y Dishonored.
Y Dr 8000
Bank a/c Cr 7850
Discount allowed a/c Cr 150
16 Cash Sale 15000; Out Of This Amount 12000 Deposited Into Bank.
Cash a/c Dr 3000
Bank a/c Dr 12000
Sale a/c Cr 15000
16 Amount Due To Ajay Paid By Cheque.
Ajay Dr 5000
Bank a/c Cr 5000
18 Old Newspapers Sold 50
Cash a/c Dr 50
Miscellaneous income Cr 50
20 Old Furniture Sold 750
Cash Dr 750
Furniture Cr 750
22 Z Became Insolvent And 40 Paise In A Rupees Could Be Received From His
Estate.
Cash a/c Dr 3200
Bad debts a/c Dr 4800
Z Cr 8000
24 Purchased Goods From Gopal And Paid By Cheque 8000
Bank a/c Cr 8000
25 Sold Half Of The Above Goods To Chanderkant At A Profit Of 30% On Cost.
Chanderkant Dr 5200
Sale a/c Cr 5200
28 Proprietor Withdrew For Private Use 2000 Form Office And 3000 Form Bank
Drawing a/c Dr 5000
Cash a/c Cr 2000
Bank a/c Cr 3000
30 Paid Salary To Motilal By Cheque 2000
Salary a/c Dr 2000
Bank a/c Cr 2000
30 Paid Rent By Cheque 1500
rent a/c Dr 1500
bank a/c cr 1500
30 Paid Trade Expenses 500
Trade expenses a/c Dr 500
Cash a/c Cr 500
10). Pass Journal Entries For The Following:
1. Received 20000 From Subhash, Which Were Written Off As Bad-Debts In The Previous Year.
Cash a/c Dr 20000
Bad debts recovered a/c Cr 20000
2. Salaries Due To Clerks 50000

Salaries a/c Dr 50000
Outstanding salaries a/c Cr 50000
3. Out Of The Rent Paid This Year, 10000 Is Related To Next Year.
Prepaid rent a/c Dr 10000
Rent a/c Cr 10000
4. Provide 10% Depreciation On Furniture Costing 50000

Depreciation a/c Dr 5000
Furniture a/c Cr 5000
5. Provide 12% Interest On Capital Amounting To 10,00,000

Interest on capital a/c Dr 120000
6. Charge Interest On Drawings 8000

Drawing a/c Dr 8000
Interest on drawing a/c Cr 8000
Opening Entry
Que). The Following balance appears in the book of gopal traders on 1st april 2020.
Assets : Cash Rs 8,000, Bank Balance Rs 20,000, Debtors Rs 47,000(Ashok Rs 12,000, Pawan Rs 15,000,
Vivek Rs 20,000), Machinery Rs 60,000
Liabilities : Creditors Rs 20,000(Chaman Lal Rs 7,000, Om Pal Rs 13,000), Capital Rs 2,00,000
The Opening Entry will be :
Date Particulars L Amount Amount

F Dr Cr
2020 Cash a/c 8000
April 1 Bank a/c 20000
Ashok 12000
Pawan 15000
Vivek 20000
Machinery 85000
Goodwill (balancing figure)
(i.e., Total of liabilities rs 2,20,000
Less Total of Assets 1,35,000
To chaman lal 7000
To Om pal 13000
To Capital a/c 200000
(Assets and liabilities brought forward)
Note:-
If Total of Liabilities is Greater than Total of Assets, then we have to make a ledger of Goodwill to
balancing the amount (as given above)
If Total of Assets is Greater than Total of Liabilities, then we have to make a ledger of Capital to
balancing the amount Goodwill Goes Under
Current Assets
Do Same As Youself for Practice :-

The Following Balance Appear In The Book Of Vishal Store On 1st April 2020
Assets: Cash Rs 15,000 Bank Balance Rs 5,000 Furniture Rs 3,600 Debtors Rs 24,000 (X Rs 6,000 Y Rs
8,000 and Z Rs 10,000)
Liabilities : Bank Loan Rs 10,000 Creditors Rs 12,500 (Ajay Rs 5,000, Vijay Rs 7,500)
1). Enter the following transaction in the journal of manohar lal
March 1 Manohar lal started business with cash 60000
2 Purchased furniture for cash 10000
4 Purchased goods for cash 25000
5 Bought goods from kamlesh 15000
6 Sold goods for cash 36000
8 Sold goods to hari 30000
10 Paid cash to kamlesh 15000
14 Perceived cash from hari 18000
16 Purchased goods from sohan 8000
18 Purchased goods from sohan for cash 1000
20 Paid rent for the office 750
20 Received commission 1200
27 Paid salary to gopal 12000
28 Received cash from hari 4000
29 Withdrew cash from office for personal use 7200
30 Wages paid 8000
30 Bought machinery for cash 2000

2) Enter the following transaction in the journal of sahil
October 1 Purchased goods from anil for cash 40000
3 Purchased goods from atul 75000
6 Returned goods to atul 3000
8 Paid cash to atul 50000
10 Sold goods to charu 100000
12 Charu returned 20% of goods
15 Paid rent 2000
20 Sahil withdrew for personal use 10000
3) Enter the following transactions in the journal of ganesh bros:
March 3 Sold goods to dev 100000
5 Received from dev in full settlement of his account 98000
6 Sold goods to manmohan 80000
8 Manmohan returned goods 1000
15 Received from manmohan in full settlement of his account 78200
16 Received cash from ram 19500
And discount allowed 500
20 Paid cash to pawan 4700
And discount received from him 300
25 Sold goods to varun of the list price of 25000 at 20% trade

discount
4) Pass journal entries in the books of hari Shankar & co. form the following:
April 1 Commenced business with cash 50000
2 Purchased goods from subhash 20000
4 Sold goods to ramnath 15000
6 Ramnath returned defective goods 1000
10 Received cash from ramnath and 13800
Discount allowed 200
12 Gopal sold goods to us. 10000
14 Paid to gopal in full settlement of his account after

deducting 5% discount
15 Paid rent 1000
16 Paid rent of hari shankar‟s residence 500
18 Purchased goods for cash from govind for 6000 at 20%

trade discount.
20 Purchased goods from govind for 10000 at 20% trade

discount.
24 Paid to govind 7850 in full settlement of his account.
25 Paid to subhash 4750; and discount received 250
30 Paid wages 400; salaries 4000; advertisement expense 800

and trade expense 1000
5) Enter the following transaction in the journal of marutinandan stores:
Jan 10 Purchased goods from ghanshyam of the list price of 50000 at 15%
trade discount
13 Returned goods to ghanshyam of the list price of 2000
15 Paid cash to ghanshyam 40000 in full settlement of his account.
20 Purchased goods form raghu of the list price of 60000 at 10% trade
discount
22 Returned goods to raghu of the list price of 5000
25 Paid cash to raghu 49000 in full settlement of his account.
6) Pass journal entries for the following transactions:

Jan 6 Sold goods to muskan of the list price of 200000 at trade discount of
20%
8 Muskan returned goods of the list price of 5000
15 Received from muskan the full payment under a cash discount of 4%
7) Record the following transactions in the journal of shyam sunder & sons:
April 1 Shyam sunder & sons started business with cash 75000; goods 30000
and furniture 5000
2 Sold goods to bhushan of the list price of 10000 at trade discount of

10%
5 Bhushan returned goods of the list price of 1000
10 Received from bhushan 8000 in full settlement of his account.
12 Purchased furniture for 6000
12 purchased goods from navin of the list price of 25000 less trade
discount 12%
15 Returned goods to navin of the list price of 2000
16 Cleared the account of navin by paying cash under a discount of 5%

17 Sold goods to ajay 10000 and vijay 16000
20 Received cash from ajay 9800 In full settlement of his account
Paid insurance premium 750
22 paid for shyam sunder‟s life insurance premium 1200
24 Purchased goods for 8000 for cash at a trade discount of 10% and cash
discount of 2%
25 Received cash from vijay at a cash discount of 5% in full settlement of

his account.
30 Paid rent 800; advertisement 1000; and salaries 4000
30 Received commission 500

8) Journalise the following transactions:
Jan 1 Paid into bank for opening a current account. 10000
3 Goods sold for 50000 and the amount was deposite into the
bank
7 Amount withdrawn form bank 20000
10 Goods sold for cash 15000
12 amount deposited into bank 12000
14 Goods purchased and payment made by cheque 25000
9) Following balances appeared in the books of radhika traders as on 1st april

2017 :
Assets : - cash 8000; cash at bank 7000; stock 30000; debtors 36000(mohan 10000; sohan
12000; dinesh 14000); furniture 5000; building 25000.
Liabilities : - creditor: x 5000 y 6000
In april 2017, the following transactions took place:
April 2 Bought goods of the list price of 6000 from khanna

brothers less 15% trade discount and 2% cash
discount and paid 40% price at the same time.
3 Received a draft from mohan in full settlement and 9750

deposited it into bank
5 Purchased goods from suresh of the list price of 8000

at 20% trade discount and paid him by cheque.
8 Sold goods and received a cheque 25000
10 Deposited the above cheque into bank
12 Sohan deposited in our bank a/c 4000
16 Paid income tax 5600
20 Received a cheque from sohan and sent to bank 7800
Discount allowed 200

21 Withdrew from bank – for office 2000
For private use 4000
23 Sent a cheque to x in full settlement of his a/c 4500
27 Cheque of sohan returned by the bank as dishonoured
28 Dinesh was declared insolvent and a payment of 60

paise in a rupee received from his estate
30 Bank allowed interest 350
30 Paid for rent by cheque 1500
30 Paid for travelling expenses by cheque 500
10) Pass the journal entries for the following:-

1. Provide depreciation on furniture 500 and on machinery 2000
2. Received cash 1000 for bad debts written off last year.
3. Ajay singh was declared bankrupt. He owed 2500 to us. Nothing could be
recovered from his estate.
4. 20000 for wages and 4000 for salaries are outstanding.
5. Purchased furniture for 6000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting for 200000
7. Charge interest on drawing 1000
OPENING STOCK
Que). The Following Items Appear In The Book Of Gopal Traders On 1st April 2020.
In Delhi Godown : Computer 8 Pcs, D.V.D 5 Pcs, Pen Drive 10 Pcs, Web Camera 5 Pcs, Laptop 3 Pcs
In Noida Godown : Computer 2 Pcs, D.V.D 5 Pcs, Pen Drive 10 Pcs
The Opening Entry will be :
GODOWN / LOCATION :- DELHI GODOWN
STOCK DETAIL OPENING BALANCE
GROUPS CATEGORY UOM ITEM QTY. RATE BATCH MFG. EXP DATE
(RS) NO. DATE
ELECTRONICS LG PCS. COMPUTER 8 22000 CO/E/01 01.04.2020 01.04.2021
ELECTRONICS SONY PCS. D.V.D 5 1400 DV/E/02 01.04.2020 01.04.2021
ELECTRONICS SAMSUNG PCS. PEN DRIVE 10 675 PD/E/03 01.04.2020 01.04.2021
ELECTRONICS LOGITECH PCS. WEB 5 2500 WC/E/04 01.04.2020 01.04.2021

CAMERA
ELECTRONICS HCL PCS. LAPTOP 3 2700 LT/E/05 01.04.2020 01.04.2021
GODOWN / LOCATION :- NOIDA GODOWN
STOCK DETAIL OPENING BALANCE
GROUPS CATEGORY UOM ITEM QTY. RATE BATCH MFG. EXP DATE
(RS) NO. DATE
ELECTRONICS LG PCS. COMPUTER 2 22000 CO/E/011 01.04.2020 01.04.2021
ELECTRONICS SONY PCS. D.V.D 5 1400 DV/E/012 01.04.2020 01.04.2021
ELECTRONICS SAMSUNG PCS. PEN DRIVE 10 672 PD/E/013 01.04.2020 01.04.2021
SOLUTION :-
Press F11  F2
Maintain Multiple Location : Yes

Maintain Stock Categories : Yes
Maintain Batch Wise Details : Yes
Set Expiry Date For Batches : Yes
Accept
Go To Inventory Info  Stock Group  Create
Name : Electroncs
Under : Primary
Accept
Inventory Info  Stock Category  Create
Name : Lg
Under : Primary
Accept
Same As Create The Other Category Such As :- Sony, Samsung, Logitech, Hcl
Inventory Info  Unit  Create
Symbol : Pcs
Formal Name : Pieces
Accept
Inventory Info  Location  Create
Name : Delhi
Under : Primary
Accept
Same As Create The Other Location Such As :- Noida
Inventory Info  Stock Item  Create
Name : Computer
Under: Electronics
Unit : Pcs
Maintain In Batches : Yes
Track Date Of Manufacturing : Yes
Use Expiry Dates : Yes
Opening Balance : 10 Pcs
Give Location, Batch, Manufacturing Date, Expiry Date, Quantity, Rate
Same As Create The Other Following Items Like ;- D.V.D, Pen Drive, Laptop, Web Camera
To Check Details  Display  Statement of Inventory  Location 

Delhi/Noida Stock
details of
Delhi
location
Stock
details of
Noida
location
HOW TO MAKE PURCHASE INVOICE/BILL
There Is A Question Given Below, We Have To Implementation In Tally
2020
June 2 Purchased Goods From Surya Electric Store, Chandni Chowk, On Credit (480)
200 Tubelights @ Rs 50 Each
20 Table Fans @ Rs 400 Each
20 Heaters @ Rs 100 Each
Trade Discount 15%
Create A Ledger
1) Name - Surya Electric Store

Under - Sundry Creditors
Maintain Balance Bill-By-Bill? – Yes
Accept
2) Name – Purchase
Under – Purchase Account
Inventory Values Are Affected - Yes
Accept
Create a Stock item
Gateway of tally  inventory info  stock item  create
You can
also create
Under &
Units by
pressing
Alt+C key
Same As We Have To Create Other Two Item :- Table Fan & Heater
Then, Go To
Gateway Of Tally  Accounting Voucher  Press F9 (Purchase)
Then,
Press F11  F2
Separate Discount Column On Invoices - Yes
Then We Have To Make A Purchase Invoice (Purchase Bill)
DO THESES FOUR QUESTIONS GIVEN BELOW AS YOURSELF FOR PRACTICE :-
June 10 Bought Goods From New Light Traders, Connaught Place, On Credit
(Invoice No. 2310)
20 Table Fans @ Rs 500 Each
40 Ceiling Fans @ Rs 600 Each
10 Electric Irons @ Rs 200 Each
Less : Trade Discount 20%
June 20 Purchased Goods From Ravindra Electic Co. Patel Nagar, On Credit
(Invoice No. 1508)
120 Dozen Bulbs @ Rs 80 Per Dozen
20 Water Heaters @ Rs 120 Each
June 21
Sale Goods To Five Star Furniture, New Delhi On Credit
150 Chair @ Rs 200 Each
40 Table @ 600 Each
June 22
Sale Goods To Vishal Furniture House, Faridabad
10 Almirah @ Rs 2,000 Each
5 Sofa Set @ Rs 3,000 Each
GST – Good and Service tax
What is GST?
GST: All that you need to know about the newest & biggest tax reform in India
Goods and Services Tax better known as GST in India, is a new and comprehensive tax to be levied on
sales, manufacturing and consumption of services and goods across the nation. Referred to as one of the
biggest tax reforms in the country, GST is expected to bring together state economies and improve overall
economic growth of the nation.
Both the Central as well as State governments are set to impose GST on all services and goods produced,
manufactured and imported in India. Exports are not subject to GST. As of now, the proposal is for two tax
rates at both State and Central levels for the initial two years, which would be merged into a single tax rate
in the third financial year.
In other words GST is Indirect Tax Collected by Govt. of India. Which is lived on certain categories of
goods and services Supply.
There are so many types of indirect taxes that are levied by the central and state governments on Goods &
Services
We have to pay Entertainment tax, Value added tax, excise tax, import duties, luxury tax, central sales tax,
service tax etc.
Abolish all indirect taxes and implement a single taxation system - GST
Why we need GST?
VAT rates and regulations differ from state to state. And it has been observed that states often resort to
slashing these rates for attracting investors. This results in loss of revenue for both the Central as well as
State government.
On the other hand, GST brings in uniform tax laws across all the states spanning across diverse industries.
Here, the taxes would be divided between the Central and State government based on a predefined and
pre-approved formula. In addition, it would become much easier to offer services and goods uniformly
across the nation, since there won‟t be any additional state-levied tax.
GST rollout missed several deadlines due to disagreement among many states over certain important
issues on the new tax reform. However, as per recent reports, GST is scheduled for a nation-wide rollout
on April 1, 2016.
GST it is ONE Nation One Tax for India.

WhowillPayGST?
Being an indirect tax, GST will be ultimately borne by the end consumers, just like current Process Process
of Sales CHAIN
Manufacturer Wholesaler Retailer  Consumer.
GST rate levied on manufacturer, wholesaler retailer and consumers.
How to Check GST Rates of Goods/Services & HSN Code / SAC Code?
What kind of GST will be implemented in INDIA? CGST – Collected by Centre

SGST – Collected by State - State IGST – Applicable on inter-state sales What will be GST Rates?
The GST rate passed by the LOK SABHA. 5%, 12%, 18%, 28% (+ Luxury Cess)
What is HSN Code?

HSN code or "Harmonized System of Nomenclature" is a multipurpose international product nomenclature
developed by the World Customs Organization. The purpose of using the HSN codes is to ensure that GST
invoicing practices are in tune with international standards of product nomenclature.
What is SAC Code?

SAC Code or Service Accounting Code is used to identify services under GST. All the services are listed
under Chapter 99 of HSN & SAC Code List.
Why is it required?
Every business is required to declare a list of goods they are dealing into. This declaration is required along
with the HSN code of such commodity. The system will automatically pick tax rate under GST regime
based on these HSN codes. Thus it is of utmost importance to mention correct HSN codes at the time of
enrollment or registration under GST.
How to find GST Rates?

Apart from the correct HSN code, it is also important to find the right rate for your product so that you can collect
the right taxes. Under GST, tax slabs have been fixed at 0%, 5%, 12%, 18% and 28%. While staple and unbranded
food products have been placed under the zero and five percent tax brackets, the highest tax bracket is for luxury
goods like high-end cars, and sin category products like tobacco and cigarettes.
Our GST rate finder can help you find the GST rates for your products and inputs. Just type in the name of
a commodity and you will find the tax bracket it belongs in, right away!
How does one use the HSN Codes?
Under GST, there are three different types of HSN Codes a dealer can use. There are two-, four-, or eight-
digit HSN codes for commodities, and their use depends on the dealer‟s turnover in the previous financial
year. According to the law:
Dealers with an annual turnover of less than Rs 1.5 crores are not required to use HSN codes when
creating invoices or filing returns
Dealers whose annual turnover is between Rs 1.5 crores and Rs 5 crores need to use the right two-digit
HSN code for their commodities when invoicing or filing returns
Dealers with annual turnover equalling Rs 5 crores and above must use a four-digit HSN code for their
invoices
In the case of import or export of goods, using the right HSN codes of eight digits is compulsory, as these GST-
compliant invoices also have to be compatible with international invoicing standards and practices.
Official Website of GST Rates & HSN/SAC Code https://www.indiafilings.com/find-gst-rate
You can also Check GST Rates on - https://cleartax.in/s/gst-hsn-lookup
Advantages and Disadvantages

GST Advantages
* GST is a transparent tax and also reduce number of indirect taxes.
* GST will not be a cost to registered retailers therefore there will be no hidden taxes and and the
cost of doing business will be lower.
* Benefit people as prices will come down which in turn will help companies as consumption will
increase.
* There is no doubt that in production and distribution of goods, services are increasingly used or
consumed and vice versa.
* Separate taxes for goods and services, which is the present taxation system, requires division of
transaction values into value of goods and services for taxation, leading to greater complications,
administration, including compliances costs.
* In the GST system, when all the taxes are integrated, it would make possible the taxation burden to
be split equitably between manufacturing and services.
* GST will be levied only at the final destination of consumption based on VAT principle and not at
various points (from manufacturing to retail outlets). This will help in removing economic
distortions and bring about development of a common national market.
* GST will also help to build a transparent and corruption free tax administration.
* Presently, a tax is levied on when a finished product moves out from a factory, which is paid by the
manufacturer, and it is again levied at the retail outlet when sold.
* GST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspectsof
GST.
GST Disadvantages
* Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8
percent to the cost of new homes and reduce demand by about 12 percent.
* Some Experts says that CGST (Central GST), SGST(State GST) are nothing but new names for Central Excise/Service
Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
* Some retail products currently have only four percent tax on them. After GST, garments and clothes could become
more expensive.
* The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With
GST, this rate will surpass fifteen percent and effectively double the tax rate.
* Adoption and migration to the new GST system would involve teething troubles and learningfor the entire
ecosystem.
Missing Trader Problem – the biggest problem (in GST)

What is missing trader problem in GST lets learn with example B buys from A
Rs.10000/- base price VAT /GST – Rs.200/-
Total Cost Rs.1200/- B will pay 1200
Consider 20 rupees Profit C buys from B
1020
+200
1224
Be will GST / VAT return 
Vat Paid 204 - 200
GST PRACTICE QUESTION & IT’S SOLUTION
On 1 July 2020 Purchase From Raj Infotech, 5 Cds Of Antivirus Software @ Rs. 800 Each, With Input GST
Rate @ 18%. Make Local Purchase Entry.
SOLUTION :-
F11  F3
Enable goods & service tax (GST) : yes

Set/alter GST details : yes
Accept
Create Ledger
Name : Raj Infotech

Under : Sundry Creditors
Set/Alter GST Details : Yes
Registration Type : Regular
GSTIN/UIN :
Accept
Name : Purchase
Under : Purchase Account
Is GST Applicable : Applicable
Set/Alter GST Details : No
Type Of Supply : Goods
Accept
Name : Inputcgst@9%
Under : Duties & Taxes
Type Of Duty/Tax : GST
Tax Type : Central Tax
Percentage Of Calculation : 9%
Accept
Name : Inputsgst@9%
Tax Type : State Tax
Accept
Create Stock Item
Name : Antivirus
Under : Disc
Unit : Pcs
Gst Applicable : Applicable
Accept
Gateway Of Tally  Accounting Voucher  Press F9

Give Supplier Invoice No., Party Name, Purchase Ledger, Item, Quantity, Rate, Cgst, Sgst
Sale Of 2 ‘Hp-Laptop’ To Ganga Pvt Ltd @ Rs 50,000 With Output IGST @ 18% I.E. Rs.18,000 On Credit
Outside State Odisha.
SOLUTION:-
F11  F3
Enable Goods & Service Tax (GST) : Yes

Accept
Create Ledger
Name : Ganga Pvt Ltd

Under : Sundry Debtors Remember
State : Odisha It’s Compulsory
GSTIN/UIN :21
Accept
Name : Sale
Under : Sale Account
Accept
Name : Outputigst@18%
Type Of Duty/Tax : IGST
Tax Type : Integrate Tax
Accept
Create Stock Item

Name : Hp Laptop
Under : Electronics
Unit : Pcs
Accept
Gateway Of Tally  Accounting Voucher  Press F8

Give Supplier Invoice No., Party Name, Sale Ledger, Item, Quantity, Rate, Igst
MULTI GST
Purchase 1 Pcs Hp Laptop On 01/04/2019 Gross Value Of Laptop Is Rs 50,000 Charge Gst@18% And One
Samsung Washing Machine Gross Value Of Washing Machine Is Rs 20,000 Charge Gst@28% Invoice No-
Pur/Bill/005 From Mr. Pankaj Electronics. Pass The Local Purchase Entry.
SOLUTION :-
F11  F3
Enable Goods & Service Tax (GST) : Yes

Accept
Create Ledger
Name : Pankaj Electronics

Under : Sundry Creditors
GSTIN/UIN :
Accept
Name : Local Purchase @ 18%

Accept
Name : Local Purchase @ 28%

Accept
Name : Inputcgst@9%
Accept
Name : Inputsgst@9%
Accept
Name : Inputcgst@18%
Accept
Name : Inputsgst@18%
Accept
Create Stock Item
Name : Hp Laptop
Under : Electronics
Unit : Pcs
Accept
Name : Samsung Washing Machine

Under : Washing Machine
Unit : Pcs
Accept
Gateway Of Tally  Accounting Voucher  Press F9  Press F12
Use Common Ledger Accounts For Item Allocation : No
Then Give Supplier Invoice No., Party Name, Item@18% , Qty, Rate, Purchase@18% Ledger, Item@28%,
Qty, Rate, Purchase@28%, Tax
DISCOUNT, FREIGHT, ROUND OFF(SHORT & EXCESS) IN GST
Sold The Following Goods To Sanjay Enterprises Established In Other State. Make A Sale Invoice With Igst
2 Pcs Laptop @ Rs 35220 at 2% Discount
1 Pcs Printer @ Rs 6850 at Rs 50 Discount
Charge Freight Rs 1000
IGST @ 18%
Solution:-
Press F11  F3
Enable GST Point
Accept The Screen
Create Ledger :-
Name : Sanjay Enterprises

Under : Sundry Debtors
State : Delhi
Set/Alter GST Detail : Yes
Gstin/Uin :
Accept
Name : Inter Sale

Under : Sale
Is Gst Applicable : Applicable
Set/Alter Gst Details : No
Accept
Name : Discount
Under : Direct Expenses
Type Of Ledger : Discount
Accept
Name : Freight On Sale

Under : Indirect Income
Is Gst Applicable : Yes
Set/Alter Gst Details : Yes
Description : Service
HSN/SAC : 8704
Nature Of Transaction : Interstate Sales Taxable
Integrated Tax : 18%
Central Tax : 9%
State Tax : 9%
Type Of Supply : Service
Accept
Name : Output Igst@18%

Type Of Duty/Tax : Gst
Tax Type : Integrate Tax
Rounding Method : Not Applicable
Accept
Name : Short & Excess
Under : Indirect Expense
Type Of Ledger : Invoice Rounding
Rounding Method : Normal Rounding
Rounding Limit : 1
Accept
Create Stock Item :-
Name : Laptop
Under : Electronics
Unit : Pcs
Description : Electronics
HSN/SAC : 8471
Calculation Type : On Value
Taxability : Taxable
Central Tax : 9%
State Tax : 9%
Accept
Name : Printer
Under : Electronics
Unit : Pcs
Description : Electronics
HSN/SAC : 8471
Calculation Type : On Value
Taxability : Taxable
Central Tax : 9%
State Tax : 9%
Accept
Gateway Of Tally  Accouting Voucher  Press F8  Press F12  Again Press F12
Activate Cash/Trade Discount : Yes
Give Reference No., Party Name, Sale Ledger, Stock Item, Discount, Freight On Sale, Gst, Short & Excess
If The Total Amount Is Greater Than
Rs 50,000 Then We Have To Make
An E-Way Bill
How to make e-way bill
Open Internet Browser  Type In Address Bar Www.Ewaybillgst.Gov.In  Login

After Login  E-Way Bill  Generate New
Give Document Type, Document No., Bill To (Gstin), Item Details, Vehicle No/Transport Id
Then Sumit
After Submitting All The Detail You Get E-Way Bill No.
Fill E-Way Bill No.

ACCOUNT WITH INVENTORY PROCESS
PURCHASE PROCESS
Purchase Order (Alt + F4) 
It is an account with inventory based voucher. Purchase order can be sent to the supplier in form of how
much quantity required, rate, name of stock item etc. It is just like a quotation which is given to supplier or
(Creditor). After receiving it Supplier may understood what the requirements of customer are. Purchase order
is not an actual purchase. Customer can change the purchase order as per the requirement.
Receipt Note (Alt + F9)
Goods that are received from the supplier are recorded in a receipt note voucher. It is used to record
receipt of new stock in case the bill is not received.
Rejection Out (Alt + F6)
It is used to record return of rejected goods to supplier. A rejection out voucher may be passed in cases
where Debit Note is not sent immediately.
Purchase Voucher (F9) 
It is an account with inventory based voucher. It is use when we make purchase on credit basis. Cash
purchase will be recorded in Payment Voucher. If we are purchase any goods or stock, it is shown in stock
summary and creditors balance shown in liability side.
Debit Note Voucher (Ctrl + F9)
It is accounts with inventory based voucher. This voucher is related with rejection out voucher (Purchase
Return). Rejection out voucher effect only our stock and not the balance sheet position, but after passing
Debit Note voucher we can adjust Rejection out Voucher with Debit Note, and that will affect balance sheet
also.
SALE PROCESS
Sales Order (Alt +F5) 
It is account with inventory based voucher. In Sales order we record order details received from customer.
For e.g. A Customer places an order with our company for purchasing some goods, then sales order entry
has to be made. The sales order number will be used as the reference.
Delivery Note (Alt + F8)
It is used to record the delivery of goods to customers.
Rejection in (Ctrl + F6)
It is used to keep a record of the goods returned by the customer, which was sold earlier.
Sales Voucher (F8)

This voucher record all the entries related to credit sale to the customer, and cash sales are recorded in
„Receipt voucher‟. The effect of sales goods display in „Stock Summary‟ and Customers/Debtors details
displayed in „Balance Sheet‟ asset side.
Credit Note Voucher (Ctrl + F8)
It is accounts with inventory based voucher. It is related with Rejection in Voucher (Sales return). Rejection
in voucher only affect our stock and not the balance sheet, then we can pass Credit Note voucher, that will
automatically adjusted with Rejection in voucher, and that will affect balance sheet position also.
PURCHASE ORDER, RECEIPT NOTE, REJECTON OUT, PURCHASE INVOICE WITH GST,
DEBIT NOTE (INTER PURCHASE)
Press F11  F3
Enable Goods & Service Tax (Gst) : Yes
Set/Alter Gst Detail : Yes
State : Haryana
Gstin/Uin : 06ADGPL1104L1Z8
Accept
Then Press F11  F2, Yes this points given below

Enable Purchase Order Processing : Yes
Use Debit And Credit Note : Yes
Record Debit Notes In Invoice Mode : Yes
Use Tracking Number (Enables Delivery And Receipt Notes) : Yes
Use Rejection Inward And Outward Notes : Yes
1) Place An Order To Mr. Swarup Traders (Established In U.P) To Deliver The Following Goods To
Our Gurugram Store.
Date: 02-05-2020
Party: Mr. Swarup Order No. POI/04
Term Of Payment : 45 Days

Term Of Delivery : 7 Days
Dispatch Thru : Transport
a) T.V. Trolley -- 50 Pcs
Press “Alt + F4” for Purchase Order Voucher

Give party name, order no, Purchase ledger, stock item, godown, quantity, rate.
2) Delivery Received From Vendor In Gurugram With Challan No. – P/CH/04 Against The Order
No.—POI/04
Receipt Note
Date: 02-05-2020
Party: Mr. Swarup
Tracking No: P/CH/04 Order No: POI/04

a) T.V. Trolley -- 50 Pcs
Press “Alt + F9” For Receipt Note And Give Reference No., Party Name, Order No., Purchase
Ledger, Tracking Number, Stock Item, Godown, Quantity, Rate.
3) On 02/05/2020 10 Pcs Of Tv Trolley Have Been Returned To Mr Swarup. Pass Rejection Out Entry.
Press “Alt + F6” for “Rejection out” voucher and give Suppliers name and address, name of
item, tracking no., order no., location, quantity, rate.
4) On 01-06-2020 Mr. Swarup Traders Sent Their Bill Against The Challan No. P/Ch/04 . As Per
Our Records The Bill Number Recorded As P/Bill/04
i) Additional Charges
InputIGST@ 12%
Press “F9” For Purchase Voucher And Give Invoice No., Party Name, Receipt Note, Order No.,
Receipt Note Purchase Ledger, Name Of Stock Item, Tracking No., Order No., Location, Quantity,
Rate, Tax.
On 01-06-2020 5 Pcs Of Tv Trolley Has Been Return To Mr Swarup. Pass Debit Note Entry.
Press “Ctrl + F9” For „Debit Note” Voucher And Give Orginal Invoice No., Party A/C Name, Purchase
Ledger, Name Of Stock Item, Location, Quantity, Rate, Tax.
To Check Details  Display  Statement of Inventory  Location  Press 4

times Enter
SALE ORDER, DELIVERY NOTE, REJECTION IN, SALE INVOICE WITH TAX, CREDIT
NOTE (LOCAL SALE)
Press F11 F3
Enable Goods & Service Tax (Gst) : Yes
Set/Alter Gst Detail : Yes
State : Haryana
Gstin/Uin : 06ADGPL1104L1Z8
Accept
Then Press F11  F2, Yes This Points Given Below

Enable Sale Order Processing : Yes
Use Debit And Credit Note : Yes
Record Credit Notes In Invoice Mode : Yes
Use Tracking Number (Enables Delivery And Receipt Notes) : Yes
Use Rejection Inward And Outward Notes : Yes
1) Received An Order [Sale/Ord/H 002] From Hanuman Store For 20 Pcs T.V Trolley @ Rs 1200/-
at 2% trade discount. Which Will Be Dispatch From Gurugram. (We Are Also Live In Gurugram.
Means It’s A Local Sale) ( On Date 02-06-2020)
Press “Alt + F5” for Sale Order Voucher

Give party name, order no, Sale ledger, stock item, godown, quantity, rate, discount.
2) 20 Pcs TV Trolley Have Been Delivered to Hanuman Store Against Order No—Sale/Ord/H 002
On 02-06-2020 ( Challan No CH/M/D 11)
Press “Alt + F8” for Delivery Note and give Reference No., Party Name, Order no., Sale
ledger,Stock item, tracking number, order no., location, quantity, rate, discount.
5) On 02/07/2020 5 Pcs Of Tv Trolley Have Been Returned from hanuman store. Pass Rejection In
Entry.
Press “Ctrl + F6” for “Rejection in” voucher and give Suppliers name and address, name of item,
tracking no., order no., location, quantity, rate, discount
3) Send A Bill To Hanuman Store ( Bill No—Hanu/12/01) Against The Pending Challan – Ch/M/D
11 With The Following Additional Terms On 02-07-2020
Trade Discount -- 2%
Output CGST @ 6% -- 6%
Output SGST @ 6% -- 6%
Press “F8” for Sale voucher and give invoice no., Party Name, Delivery note, order no., Sale Ledger,
Name of stock item, tracking no., order no., location, quantity, rate, discount, tax
On 01-07-2020 3 Pcs Of Tv Trolley Has Been Return from Hanuman store. Pass Credit Note Entry.
Press “Ctrl + F8” for „Credit Note” voucher and give orginal invoice no., Party a/c name, sale ledger, name
of stock item,location, quantity, rate, discount, tax.
To Check Details  Display  Statement of Inventory  Location  Press 4

times Enter
PURE INVENTORY VOUCHER
In day to day business, if goods are purchased or sold through credit transaction, then the bill is not given
to the party or vice versa.
Many times goods are sent/receive much earlier and the bill is sent/receive after a few days. In such cases
we have to make a record of the increase or decrease in stock of those particular goods. Similarly, at
times, goods are transferred from one Godown to another, here only the increase or decrease in stock has
to be noted down. Pure Inventory vouchers are used just to record such entries
Stock Journal :-
It is used to record the transfer of stock from one location to another without affection the books of
Accounts. It is different from other Journals because it permits different Debit & Credit amounts. It is also
used when the company transfer stock item from the warehouse to the shop.
TRANSFER OF MATERIAL/ GOODS TRANSFER
Press F11  F2
Gateway Of Tally  Inventory Voucher

Press Alt+C And Create Stock Item, Location, Quatity, Rate, Etc.
To Check Details  Display  Statement of Inventory  Location 
Delhi/Noida
Physical Stock Voucher (Alt + F10)

Physical stock voucher is used for recording actual stock physically verified or conduct. For e.g. on
conducting a stock-check, the company finds a discrepancy between the actual stock and the computer
stock figure. Once a physical stock entry is made, tally will consider the stock available details based on
the entry. It also records the Physical stock (Actual Stock) as the new stock balance and this is called as
„Stock in Hand‟.
Gateway Of Tally  Inventory Voucher  Press Alt+F10

Give Stock Item, Location, Quatity.
To Check Details  Display  Inventory Book  Stock item  Computer

TAX DEDUCTED AT SOURCE (TDS)
Mr. Rakesh (Body Of Indivisual) Charged Rent Rs 3,60,000. Company Paid To Rakesh After Deducting
TDS Through SBI (Bill No. # Rent/0011) (Ch No—490493)
SOLUTION :-
Press F11  F3
Enable Tax Deducted As Source (Tds) : Yes
Set/Alter Tds Details : Yes
Accept The Screen
Then Create The Following Ledgers :
Name : Rent
Under : Indirect Expenses
Is Tds Applicable : Applicable
Nature Of Payment : New Category
Name : Rent
Rate : 20%
Accept
Name : Mr Rakesh
Under : Sundry Creditor
Is Tds Deductable: Yes
Deductee Type : Body Of Indivisual
Deduct Tds In Same Voucher : Yes
Accept
Name : Tds On Rent

Type Of Duty/Tax : Tds
Nature Of Payment : Rent
Accept
Name : Sbi Bank

Under : Bank Accounts
Accept
Then Go To
Gateway Of Tally  Accounting Voucher  Press F7 (Journal)
Pass the journal Entry of TDS Deduction
After Deduction of TDS Paid To Rakesh
Company Made The Payment Of TDS Dues Through SBI. (Chq No.490492), And See The TDS Challan-
ITNS 281, In Print Preview.
To see the print preview, Press Alt+P  Enter  Alt+Z (For Zoom)
TAX COLLECTED AT SOURCE (TCS)
Dated As On 01-11-2017 Sold 20 Kg Timber To Mukesh Timber Ltd (Company Resident) Cost Rs 700 Per
Kg. With T.C.S (Timber Obtained Under Forest Lease) From Satya Niketan Store. Bill No: # TI/MUK/001
SOLUTION :-
Press F11  F3
Enable tax collected at source (TCS) : yes
Set/alter TCS detail : yes
Accept the screen
Create Ledger
Name : Mukesh Timber Ltd

Under : Sundry Debtors
Is Tcs Applicable : Yes
Buyer/Lessee Type : Company Resident
Accept
Name : Sale
Under : Sale Accounts
Is Tcs Applicable : Applicable
Nature Of Goods : New Category
Name : Timber
Rate : 3%
Accept
Name : TCS On Timber

Type Of Duty/Tax : Tcs
Nature Of Goods/Contract/License/Lease : Timber
Create Stock Item
Name : Timber
Under : Furniture
Unit : Kg
Is Tcs Applicable : Applicable
Nature Of Goods : Timber
*You Can Create Group & Unit In Stock Item By Pressing Alt+C
Gateway Of Tally  Accounting Voucher  Press F8(Sale)

PAYROLL
Press F11  F1
Maintain Payroll : Yes

More Than One Payroll/Cost Category : Yes
Accept The Screen
Gateway Of Tally  Payroll Info  Employee Categories  Create
Payroll Info  Employee Groups  Create
Payroll info  Employees  Create
You can fill

all the
details of
Employees
Payroll Info  unit (work)  create
1. 2.
3.
Payroll Info  Attendance/Production Type  Create
1. 2.
3.
Payroll Info  Pay Head  Create
1.
2.
3.
4.
Payroll Info  Salary Details  Define  Mr. Ram
Payroll Info  Voucher Types  Alter  Payroll
Gateway of Tally  Payroll Vouchers  Press Ctrl+F5 (Attendance)

Then Press Ctrl+F4  Staff Salary  Enter  Press Alt+A (Payroll Autofill)
To Check Details  Display  Payroll Reports Statement of Payroll

 Payslip  Single Pay slip
COST CENTRES/COST CATEGORY
For Example, We Have Received Commission From Agent For Rs 34,500 – But From Which Person We Have
Received The Money Is The Main Question Here. That Is Where Cost Centres Are Used
Cost Category: Agent

Ledger: Commission Received. A/C (Amount Rs. 34,500)
Voucher: Receipt
Cost Center Amount Rs.

Amit 10,350
Vijay 13,800
Krishna 10,350
SOLUTION :-
Press F11  F1
Maintain Cost Centres : Yes
Maintain More Than One Payroll Or Cost Category : Yes
Accept The Screen
Gateway Of Tally  Accounts Info  Cost Categories  Create

Name : Agent
Accept
Accounts Info  Cost Centre  Create

Category : Agent
Name : Amit
Accept
Same As Create Other Two Cost Centre Such As : Vijay & Krishna
Create Ledger :
Name : Commission Received

Under : Indirect Income
Cost Centres Are Applicable : Yes
Accept
Gateway Of Tally  Accounting Voucher  Press F6 (Receipt)
Pre-Allocation Of Costs
For Faster Entry You Can Pre-Allocate Cost Centres By Defining Percentage In The Cost Centre Class. For Example, If
A Commission Of Rs.34, 500 Is To Be Received From As 30% From Amit, 40% From Vijay & 30% From Krishna. To Do
This:
SOLUTION :-
Press F11  F1
DO THESE QUESTION AS YOURSELF FOR PRACTICE :
Cost Category: Employee

Ledger: Salary A/C (Amount Rs. 1,12,000)
Voucher: Payment
Cost Center Amount Rs.

Umesh 25,000
Rajeev 27,000
Priyanka 32,000
Preeti 28,000
GST PRACTICE QUESTIONS
Create a company :-
Name : NIMIT Computers

Address : khandsa road
D.A.V Sr. Sec. School
Gurugram
State : Haryana
 NIMIT Computers Sales One Computer On 01/04/2019 Gross Value Of Computer Is Rs

15000 With Accessories GST@12% (Rs 1800) Total Value Rs 16800 Invoice No-
01/TI/19-20 To Mr. X In Haryana As Local Sales. Please Make Sales Invoice In
Appropriate Manners Under GST.
 NIMIT Computers Sales One Computer of Gross Values Dated 01/04/2019 Rs 10000
Each and Charge IGST@12% Invoice No-02/19-20 to Mr. Y, He Live In Uttar Pradesh
(UP) Pass The Sale Entry.
 On 1st April 2019 Mr. Y Sales 5 Computer Costing Rs 6000 Each And Charge GST@12%
on Cost (Invoice No-06/TI/2019) To NIMIT Computer Establish In Haryana. Pass The
Necessary Entry.
 Xyz Ltd (Uttar Pradesh) Sales 4 Printer On 1st April 2019 Costing Rs 7000 Each Charge
IGST@18% (Invoice No-03/TI/2019) To NIMIT Computer . Makes Purchase Entry.
 NIMIT Computer Purchase One Printer On 01/04/2019 Gross Value Of Printer Is Rs

10000 Charge Gst@18% And One Computer Gross Value Of Computer Is Rs 8000
Charge Gst@12% Invoice No-08/TI/2019 To Mr. Narayan (Establish In Haryana). Pass
The Necessary Entry.
Reports
Tally automatically generates a number of reports once you have enter the vouchers.
Horizontal Balance sheet
Balance Sheet
It is the statement of Assets and Liabilities. You can view the Balance sheet by pressing the
alphabet B on the Gateway of Tally screen.
Vertical Balance Sheet
Show Vertical Balance Sheet  yes
Vertical Balance sheet will look like as follows:

Export Balance sheet in Excel, PDF etc.
By Pressing Alt+ E  Export  Balance sheet in Excel
Balance sheet in excel

Profit & LossReport
It is used to find out Net Profit or Net Loss. The Profit & Loss Account shows the operational results for a
given period. It lists out the Incomes and Expenditures based on the Primary Groups of Tally. The Profit &
Loss Account in Tally is updated instantly with every transaction voucher that is entered and saved. No
special processing is required to produce a Profit & Loss Account. You can view the Profit & Loss a/c by
pressing the alphabet P on the Gateway of Tally screen.
Stock Summary
Stock summary gives you the details of the various Stock Items to view Stock Summary go to Gateway of
TallyStock Summary Or press „S‟ from the keyboard
View Trail Balance

View Trail Balance

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Press Esc Key

Company Info  Create Company

No Company Is Selected Here

a. Tally vault Password (Show company with *****)

1st Method :- Creation Of Normal Company In Tally

2nd Method :- Creation Of Tally Vault Password Company In Tally

3rd Method :- Creation Of Security Control Company In Tally

Select A Company Which You Want To Delete

Here company is select

Press Alt+F3  Alter  Enter  Enter 

Press Alt+D  Enter  Enter

Click Start  Computer (Window+E)  Local Disk (D:)

Select company you

1) Delete Your Company ( See Page No. 10)

2)Then To Restore Your Company

To Check Your Company Restore Or Not

Go To Select Company  See Your Company

In Tally Two Ledger Are Already Created In Any Company

(I) Cash A/C

HOW TO CREATE , ALTER AND DELETE GROUP

Single Group Creation

8) Reserve & Surplus

10) Unsecured Loan

11) Loan & Advance

12) Sundry Creditors

13) Sundry Debtor

14) Bank Overdraft

15) Fixed Asset

18) Stock in Hand

19) Duties & Taxes

SNO. LEDGER GROUP/UNDER

We are going to make changes means turn ON/OFF

There are some F12 page configuration

Every voucher and Report has their

Purchase : A purchase means goods purchased by a businessman from suppliers.

Sales : Sales is goods sold by a businessman to his customers.

Capital : Capital is the amount invested for starting a business by a person.

Debtors : Debtor is the person who owes amounts to the businessman.

Debit : The receiving aspect of a transaction is called debit or Dr.

Credit : The giving aspect of a transaction is called credit or Cr.

Ledger : The book of final entry where accounts lie.

Journal entries : A daily record of transaction.

Profit : Excess of credit side over debit side.

Personal account relates to Persons.

E.g. - Ram, NIMIT Institute, Maruti Company etc

The Golden Rule for Personal Account is.

Debit the Receiver and Credit the Giver

Example: Paid Cash to Ram Rs 1,000

Ram (Receiver) Dr 1,000

Real account relates to property/Assets.

E.g. – Furniture, Land & Building, Computer

The Golden Rule for Real Account is,

Debit What Comes in and Credit What Goes out

Example: purchase machinery for cash Rs 5,000

Machinery A/c (Come In) Dr 5,000