Summer Training Report On

“A STUDY ON APPLICATION OF ACCOUNTING SOFTWARE IN M.S.NIKHRA

AND COMPANY WITH SPECIALISATION OF TALLY’’

A Training Report Submitted in Partial Fulfilment of the

Requirements Degree Of

MASTER OF BUSINESS ADMINISTRATION (FM) 2021-2023

By

Sabia Khan
Roll No. : 211145095019

Under The Guidance Of

DR. ATUL GOYAL [Assistant Professor, IEF, BU, Jhansi]

C.A. Sumit Nikhera [M/S Nikhera And Company]

INSTITUTE OF ECONOMICS AND

FINANCE BUNDELKHAND UNIVERSITY

JHANSI

2021-2023
 INSTITUTE OF BANKING, ECONOMICS AND FINANCE

BUNDELKHAND UNIVERSITY, JHANSI

CERTIFICATE

This is to certify that the Summer Training Report entitled “A STUDY ON APPLICATION
OF ACCOUNTING SOFTWARE IN M.S. NIKHERA AND COMPANY WITH
SPECIALISATION OF TALLY’’ in a partial fulfilment of the requirements for the award
of Degree of MBA (FM) is a record of original training undergone by Sabia Khan
[211145095019] during the year 2021-2022, under my supervision and the report has not
formed the basis for the award of any Degree/Fellowship or other similar title to any
candidate of any University.

Place: Jhansi Signature of Guide

Date: DR ATUL GOYAL [Assistant Professor]

Institute of Economics and

Finance, Bundelkhand University,

Jhansi
 DECLARATION

I, Sabia Khan, hereby declare that the Summer Training Report, entitled “A STUDY ON
THE APPLICATION OF TALLY ACCOUNTING SOFTWARE IN M.S. NIKHERA
AND
COMPANY” submitted to the Institute of Economics and Finance, Bundelkhand University
in partial fulfilment of the requirement for the award of the Degree of MBA(FM) is a record
of original training undergone by me during the period 10 June 2022 to 2O July 2022, under
the supervision and guidance of DR ATULGOYAL [Assistant Professor], Institute of
Economics and Finance, Bundelkhand University and it has not formed the basis for the
award of any Degree/Fellowship or any other similar title to any candidate of any University.

Place: Jhansi Signature of the Student

Date: Sabia Khan [211145095019]

MBA [FM]

Institute of Economics and Finance

 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my guide DR ATUL GOYAL,

Assistant Professor of Department of Banking, Economics and Finance, Bundelkhand
University Jhansi as well as our Head of Department Professor C.B. Singh who gave me the
golden opportunity and guidance to carry out this work. He has been a great source of
inspiration all the way. The accomplishment of this project “A STUDY ON THE
APPLICATION OF TALLY ACCOUNTING SOFTWARE’’ would have been not been
possible individually without the Encouragement , Assistance and Valuable support from
various sources.

I also thankful to various staff member of Department if Economics and Finance who
provided me valuable suggestion from Time to Time.

Sabia Khan
MBA (FM) 2nd Year
Roll No.: 211145095019
 TABLE OF CONTENTS

CHAPTER. NO PARTICULARS PAGE

NO
Declaration

Certificate

Company Certificate

Acknowledgement

Table of Contents

Chapter 1 Introduction 1-2

Chapter 2 Company Profile 3-4

Chapter 3 Accounting 5-53

Accounting software

Best Accounting Software

available in India

Tally Software

Advantages and Disadvantages

of Tally Accounting Software
Steps in Tally operation

Comparison of Tally
Accounting software with other
Accounting software

Chapte Limitation, Suggestions, 54-55

r4
Learning, Conclusion
56
Bibliography
 1

CHAPTER- 1

INTRODUCTION

In today’s world academic education is not adequate to enable a student to compete with
confidence and reach her goal without having experience with the outside world. In order to
have an idea and gain experience, we, the students of Faculty of Commerce, Bundelkhand
University, Jhansi have to undertake 8 week internship at any organization.

This 8 weeks internship program gave me the opportunity to have a practical knowledge on
the Accounting Software of Tally.

To face much more complex and challenging business world in the challenging business
areas, practical knowledge is essential to expand our theoretical base. To gather this practical
knowledge, we were forwarded different organizations for the summer internship training. As
I have an intention to become Accountant, I choose M.S. Nikhera and Company Charted
Accountant firm in Jhansi.

This study gave me an opportunity to observe and perform real world knowledge about the
Accountant, which is followed by the charted accountant firm. In the internship period I
could relate the theoretical knowledge of accounting to practical exposure.

Objective of the study -

I choose to work with M.S. Nikhera and Company. During this internship I have learnt many
new skills. Before training I have only theoretical knowledge about work in organisation but
now I have some practical experience of working in organisation. Now I have knowledge
about the organisations working environment and how organisations work and achieve their
goals and objectives.

This internship has to give me the understanding of business and also about the elements of
strategic thinking, planning and implementation, and how these things are applied in a real
world organisation environment. Following are the objectives that I have in my mind before
working as an internee.

● To improve communication skills.

● To learn more then the theoretical knowledge.
● To apply the theoretical knowledge in actual organization.
 2

● To get exposure to do a work in an organisation and also known about

organisational behaviour, ethical rules and regulations.
● To plan for the future of oneself and learn how to adjust in an organisation.
● To compare practical aspects with theoretical aspects.
● To know how to present your recommendations infront of your boss.
 3

CHAPTER-2

COMPANY PROFILE

M.S. NIKHERA AND COMPANY was established in 2009. It is a leading charted

accountancy firm rendering comprehensive professional services which include audit,
management consultancy, tax consultancy, accounting services, filing of returns etc.

M.S. Nikhera and Company is a professionally managed firm. The team consists of
distinguished charted accountants, corporate financial advisors and tax consultants. The firm
represents a combination of specialized skills, which are geared to offers sound financial
advice and personalized proactive services. Those associated with the firm have regular
interaction with industry and other professionals which enables the firm to keep pace with
contemporary development and to meet the needs of its clients.

Corporate Services-

● Incorporation of company.
● Consultancy on Company Law matters.
● Filing of annual returns and various forms, documents.
● Consultancy on Public/Rights/Bonus issue of shares.
● Change of Name, Objects, Registered Office etc

Vision-

To accomplish the assignment through the experience of firm’s partner‘s and professional
staff and also to arrange specific technical expertise from our associates of various streams or
profession.

Registration of Firm-

M.S. NIKHERA AND COMPANY CHARTED ACCOUNTANT FIRM is registered under

the Institute of Chartered Accountants of India in the year 2009.

M.S. NIKHERA & COMPANY deals in:

● GST Registration
● Returns
● Bank Finance
● Income Tax Return
 4

● Accounting and all Financial services

● DSC
 5

CHAPTER 3

ACCOUNTING

ACCOUNTING is the process of recording financial transactions pertaining to a business.

The accounting process includes summarizing, analyzing and reporting these transactions to
oversight agencies , regulators and tax collection entities. The financial statements used in
accounting are a concise summary of financial transactions over an accounting period,
summarizing a company’s operations, financial position and cash flows.

Or

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 thereof.

How Does Accounting Work?

At its simplest, accounting is a way to communicate the financial health of a business or an

organization to any and all interested parties. It is a way of assessing the assets, liabilities and
cash flow, or the future of an entity for all current and future investors. It is the lifeblood of a
business and all types of business have basic information that is recorded to get that job
done.

Types of Accounting-

● Financial Accounting- Financial Accounting refers to the processes used to generate

interim and annual financial statements. The results of all financial transactions that
occur during an accounting period are summarized into the balance sheet, income
statement, and cash flow statement. The financial statement of most companies are
audited annually by an external CPA firm. For some, such as publicly traded
companies, audit are legal requirement. However, lenders also typically require the
results of an external audit annually as part of their debt covenants. Therefore, most
companies will have annual audits for one reason or another.
● Managerial Accounting- Managerial Accounting uses much of the same data as
financial accounting, but it organises and utilizes information in different ways.
Namely, in managerial accounting, an accountant generates monthly or quarterly
 6

reports that a business’s management team can use to make decisions about how the
business operates. Managerial accounting also encompasses many other factes of
accounting, including budgeting, forecasting, and various financial analysis tools.
Essentially, any information that may be useful to management falls underneath this
umbrella.
● Cost Accounting- Just as managerial accounting helps businesses make decisions
about management, cost accounting helps businesses make decisions about costing,
Essentially, cost accounting considers all of the costs related producing a product.
Analysts, managers, business owners and accountants use this information to
determine what their products should cost. In cost accounting, money is cast as an
economic factor in production, whereas in financial accounting, money is
considered to be measure of a company’s economic performance.

Requirement for Accounting-

In most cases, accountants are generally accepted accounting principles [GAAP] when
preparing financial statements in the United States. GAAP is a set of standards and
principles designed to improve the comparability and consistency of financial reporting
across industries. Its standards are based on double-entry accounting, a method in which
every accounting transaction is entered as both a debit and credit in two separate general
Ledger accounts that will roll up into the balance sheet and income statement.

Example of Accounting-

To illustrate double-entry accounting, imagine a business sends an invoice to one of its

clients. An accountant using the double-entry method records a debit to accounts
receivable, which flows through to the balance sheet and a credit to sales revenue, which
flows through to the income statement.
When the client pays the invoice, the accountant credits accounts receivables and debit
cash. Double-entry accounting is also called balancing the books, as all of the accounting
entries are balanced against each other. If the entries aren’t balanced, the accountant
knows there must be a mistake somewhere in the general ledger.

Recommended Online Accounting Degree Programs-

All accounting or bookkeeping has a standard set of accounting principles that stays roughly
the same for every type of business. In this way there is unity in all business accounting
procedures to ensure that there is unity and a clear understanding no matter what business is
 7

being monitored. This system is called GAAP – Generally Accepted Accounting Principles.
There is no law enforcing GAAP standards, but that may not matter when a business has to
report gains and losses to a credit agency or the government – or face an audit.

The Many Layers Of Accounting-

Accounting is not just one thing; in a corporation or business, there are many layers or
types of accounting. In very large companies and corporations, each of those layers might
have its own department, staffed by many accountants all taking care of one small part. In
small businesses, it might all be the job of one (very tired) accountant. Specializations
include:

● Taxes – Well, that one's obvious. Every business has to pay taxes, and every
business wants to pay as little in taxes as they have to. A good accountant does that.

● Payroll – Businesses have to play employees, but more importantly, they have to
pay payroll taxes, social security, retirement, workman's comp, and so on. Payroll
accountants keep all those balls rolling.

● Accounts Payable and Accounts Receivable – The bills that need to be paid (to
contractors, to vendors, to suppliers) and the payments that are coming in (from
clients, from customers, from services) all have to be processed. If payments don't
come in, someone has to alert collections; if payments don't go out, someone has to
take the fall.

● Bookkeeping – Income goes in one column, outflow goes in another, and if those
two columns are out of whack, so's the business. The bookkeeper doesn't have any
control over the money, but they make sure that every little transaction gets recorded.

Recommended Online Accounting Degree Programs

Accounting and Technology-

In the 21st century, all of this work is done with computers, and an understanding of the
underlying technology is extremely valuable in making sure that everything is recorded
correctly. Many accountants today specialize in exactly that – accounting information
technology.One of the most important jobs of an accountant is developing reports for the
management and executives. This is where modern accounting technology really shines;
computers can do analysis in seconds that once took highly skilled accountants weeks of
research and crunching. Reports of any kind can be produced with the push of a button and a
 8

quick snap-shot of the transactions and cash flow are revealed. All kinds of reports are
needed to gauge the company's success:

● Statement of Profit and Loss

● Balance Sheets

● Assets and Liabilities Report

● Retained Equity

All of these reports give a picture of what the company is doing and where it is headed. They
can help to decide if the company is financially stable and if there are any adjustments to be
made in the strategies for operation. These reports are good for the investors also. They are
able to see if a company is worth investing in.

And when things aren't going right, it's time to call in the accountants who are specially
trained to deal with indiscrepancies and kerfluffles – the forensic accountants and auditors.
These are accountants who have extensive education and experience in investigation, trained
to look for patterns and inconsistencies that may signal criminal activity, or just managerial
incompetence. In either case, you don't really want to see them come through the door, but if
things are bad, they'll clean it up.

So Yes, We Should Become an Accountant-

So it's easy to see that accounting is a multifaceted field. If you think of accounting as just an
adding machine and ledger, you're thinking too small. You may as well say writing is just
moving a pen, or that an ultramarathon is just running.

Accounting is a complex discipline and a widely diverse, exciting career path. There are a
multitude of career types and job opportunities available in the sphere of accounting, and the
field is growing every day. After all, not everyone can do it. For one, there's a lot of math
involved in accounting, and frankly, it's the rare mind that is naturally good in math. But
more importantly, to succeed as an accountant, you need motivation, determination,
organization, and a lot of smarts. It's a challenge not many are willing to take up, but for
those who are brave enough, smart enough, and determined enough, accounting can be very
rewarding.
 9

Accounting Software-
Accounting Software is a fundamental application that allows an organization to record the
flow of money for internal and external review and auditing. It is the primary tool for
assessing the financial health of the organization and for meeting legal compliance through
such core financial tools as general ledger, accounts payable and receivable, purchase order,
stock or inventory and billing. Modern implementations of the application expands to payroll
modules, electronic payment, timesheet and expenses among others in order to gain a wider
foothold in the market.

Benefits of Accounting Software-

● Simplification- Accounting system put finance control in the hands of a non-

accounting audience, designed to give numbers a meaning while performing
automated calculations, With little to no training at all, the business owner
can
complete all accounting operations and comply with legal standards from a desktop
computer or a mobile device, and without paying an external party to keep budget in
the loop.
● Cost Savings- Accounting and finances systems automate core calculations and
administrative procedures and take control of your revenue framework so that you
won’t have to outsource finance management to an external expert. In parallel,
they
also reduce costs related to printing and distributing documentation and store
sensitive data in secure and monitored locations.
● Full Financial Transparency- From an accountant’s or an auditor’s point of
view, the highlight of good accounting systems is that they prevent costly recurring
human errors. Calculating inaccurate sums or failing to report data in time can
easily lead to a business crisis, and that’s where automatic calculations is most
useful.
● Accurate Forecasting- It’s one of the main advantage of accounting software.
Understanding in detail the patterns and trends of your financial performance
something that would take ages to complete without a solid system. Accounting
software gives number a meaning, helping us understand where to cut expenses or
where to invest more. With a clear overview of our current financial status, we
will find it easier to develop smart strategies and allocate resources in the right
way.
● Tax Compliance- Many of today’s top accounting systems are dedicated to
 10

payroll assistance and reporting and adhere to tax regulations automatically.

Once we’ve activated them, they become our number one source of tax and audit
 11

information; they store all the important details for us ton maintain a transparent
workflow.
● Improve relationships with customers- One could argue that accounting
software has little to do with how customers are served, but that couldn’t be any
further from the truth. Most accounting systems nowadays work around effective
billing and invoicing and prevent all sorts of delays and miscommunication. They are
also easy to personalize on the business’s behalf and thus make company
performance appear more professional and credible.
● Security- Financial data is the company’s most valuable information and must be
prevented from falling into the wrong hands or getting lost by mistake. That’s exactly
what accounting and finance systems do for their users: prevent accounting from
being jeopardized in any way, and keeping an extra copy in case we need to retrieve
them. In most cases, we will get to build our internal security structure and decide
who will have access to sensitive data.

Types of Accounting Software-

Personal accounting:

Personal accounting software is mainly targeted towards home users, supporting accounts
payable-type accounting transactions, managing budgets, and simple account reconciliation,
at the inexpensive end of the market.

Low-end market:

At the low-end of the business markets, inexpensive applications software allows most
general business accounting functions to be performed. Suppliers frequently serve a single
national market, while larger suppliers offer separate solutions in each national market.
Many of the low end products are characterized by being "single-entry" products, as opposed
to double-entry systems seen in many businesses. Some products have considerable
functionality but are not considered GAAP or IFRS/FASB compliant. Some low-end systems
do not have adequate security nor audit trails.

Mid-market:

The mid-market covers a wide range of business software that may be capable of serving the
needs of multiple national accountancy standards and allow accounting in multiple
currencies. In addition to general accounting functions, the software may include integrated
 12

or add-on management information systems, and may be oriented towards one or more
markets, for example with integrated or add-on project accounting modules.

Software applications in this market typically include the following features:

● Industry-standard robust databases

● Industry-standard reporting tools

● Tools for configuring or extending the application (e.g. an SDK), access to program
code.

High-end market:

The most complex and expensive business accounting software is frequently part of an
extensive suite of software often known as enterprise resource planning (ERP) software.
These applications typically have a very long implementation period, often greater than six
months. In many cases, these applications are simply a set of functions which require
significant integration, configuration and customization to even begin to resemble an
accounting system. Many freeware high-end open-source accounting software are available
online these days which aim to change the market dynamics. Most of these software solutions
are web-based. The advantage of a high-end solution is that these systems are designed to
support individual company specific processes, as they are highly customizable and can be
tailored to exact business requirements. This usually comes at a significant cost in terms of
money and implementation time

Hybrid solutions:

As technology improves, software vendors have been able to offer increasingly advanced
software at lower prices. This software is suitable for companies at multiple stages of
growth. Many of the features of mid-market and high-end software (including advanced
customization and extremely scalable databases) are required even by small businesses as
they open multiple locations or grow in size. Additionally, with more and more companies
expanding overseas or allowing workers to home office, many smaller clients have a need to
connect multiple locations. Their options are to employ software-as-a-service or another
application that offers them similar accessibility from multiple locations over the internet.

SaaS accounting software:

With the advent of faster computers and internet connections, accounting software companies
have been able to create accounting software paid for on a monthly recurring charge instead
 13

of a larger upfront license fee (software as a service - SaaS). The rate of adoption of this new
business model has increased steadily to the point where legacy players have been forced to
come out with their own online versions.

Examples of Accounting Software-

● Fresh Books – A fully-featured and simple client invoicing and time-tracking system
used by more than 5 million businesses around the world. Ideal for freelancers and
small businesses looking to fast track their sales cycle and keep their processes in
line with standards and regulations. The solution is well integrated and mobile
friendly. If you need a reliable Fresh Books alternative, check out our other
comparison articles.
● Xero – A handy asset for managing different accounting operations, preferred by solo
accountants and small business teams. The capable accounting management system
works in line with business rules and priorities, and manages money in a way that
will coincide with their goals and long-term objectives.
● QuickBooks – Available in different editions, QuickBooks caters to the accounting
needs of any company. As a notable Xero alternative, it offers a vast array of insights
and organizational capabilities to help companies keep their accounting data
organized, including overdue items, payable bills, accounting notes and contacts’
data, and standard accounting operations. Also popular for great Profit&Loss
reporting.
● Wave – It’s the definition of what a free accounting system for small and
developing businesses should be. A solid QuickBooks alternative that combines
accounting, invoicing, and receipt scanning into one compact and straightforward
package, it allows easy integration with other third-party applications for seamless
data migration. Wave is likewise fully optimized for mobile usage.
● Zoho Books – The accounting app of a reputed software family, Zoho Books is
designed to help small businesses handle their finances and stay on top of their
financial operations. It offers an array of unique accounting features, including cash
flow statements, P&L, Balance sheets, and many more.
● CashManager – An on-premise/cloud-based accounting software designed to
streamline your accounting processes—from computation, automated quotation and
invoicing, and reconciliation of banking statements and faster than ever without
sacrificing accuracy.
 14

● Declaree – a cloud-hosted expense management solution with a mobile app that helps
company employees digitize their expenses. With Declaree, staff can instantly
capture receipts instead of manually filling out end-of-month expense forms. This
functionality affords companies full control over their workers’ expenditures.

Best Accounting software in INDIA-

The following are the most popular accounting software and thus are regarded as the best
accounting software for small business in India-

● Tally
● Busy
● Marg
● Quickbooks
● Zoho books

Busy-

BUSY is the complete accounting software for small and medium businesses. It has been
allowing SMEs across geographies, industry verticals and customers division such as
FMCG, Retail, Trading, Manufacturing, Distribution and Service by helping them manage
their business efficiently. Busy was launched in the year 1997 and is mainly popular for its
inventory management feature. Most of the distributes and stockists have now shifted from
Tally to Busy as the detailed inventory reports generated by Busy help a business in keeping
a track of the stock. The price for busy starts from Rs. 6300 onwards. Busy is best for
maintain stock also we can use here Re-Order Qty and Minimum order Qty level and more.
With over 3,00,000 licenses sold worldwide, Busy is one of the leading accounting software
in India.

The salient features of BUSY are:

● Financial Accounting {Multi-Currency}

● Inventory Management {Multi-location]
● Production/Bill of material
● Sales/Purchase Quotations
● Sales/Purchase Order Processing
● Fully User-configurable Invoicing
● User-configurable Documents/Letters
 15

● User-configurable Columns in Reports

● GST invoicing and reports
● VAT/Excise/Service Tax
● TDS/TCS
● MIS reports and analysis

Marg-

Marg accounting software is developed by Marg Compusoft Pvt. Ltd and is well accepted
in small and medium enterprises of India. The software is marketed for the last two decades
in the Indian market. Marg is a GST integrated and compliant accounting software. It delivers
transactions into the GST portal and directly files returns from Marg biling software. The
software is marketed for the last Marg was launched in the year 1992, Marg has build a name
for itself in the market as a software which provides customized solutions depending on the
need of each industry. It has build different accounting software for different industries like
Pharmaceutical Industry, Trading Industry and Retail Industry. Marg accounting is very
famous for its software for the Pharmaceutical Industry. Some important features of Marg
accounting software are in the following:

● Easy and Fast Biling

● Auto-Bank Reconciliation
● Efficient Management
● Barcode Management
● GST Tax calculation

Quickbooks India-

Quickbooks is an accounting software package developed and marketed by Intuit.

Quickbooks products are geared mainly toward small and medium-sized businesses and offer
on-premises accounting application as well as cloud-based versions that accept business
payment, manage and pay bills and payroll functions. Quickbooks is one of the leading
accounting software in the US and other countries. Few years back, it ventured into the India
market as well by launching the Indian version of quickbooks. The need for having different
software for each country arises from the fact that the accounting and tax laws of each
country is different and therefore changes in the software are required to be made
accordingle. Quickbooks is highly popular with that category of accountants who have
earlier used quickbooks in some other country while they were abroad and now prefer to use
 16

quickbooks in India as well. To cater to such cater to such category of individuals,

quickbooks has launched an India version of its famous accounting software. Quickbooks has also
recently tied up with various banks for downloading the Bank Statements through the quickbooks
accounting software itself and there is no need for manually feeding the details.

Zoho Books-

Zoho Books is online accounting software that manages our finances, keep us GST
compliant, automates business workflow, and help us work collectively across departments.
It is a cloud-based accounting solution suitable for small organizations. It features contact
management, invoices, expenses, sales and purchase orders, project time trackimg and
inventory management. The latest entry in the field of accounting software is the Zoho Books
Accounting Software. It is a cloud accounting software and can be easily accessed from any
device with the use of internet. The data in this accounting software is not saved in our device
but is saved over the cloud and can easily accessed from anywhere. As the data is not saved
in our device, it is also safe from any system related errors/ crashes. Zoho books allows user
to manage multiple time sheets of different projects and tracking of reimbursable expenses.
Organizations can also connect bank and credit card accounts and match automated feeds
with transactions.

Features of Zoho Books-

1. Zoho can create a contact list of all relevant information even social feeds in a
single location. User can easily access the location and stay up to date.

2. Create a proper sales activities report on intuitive dashboard.

3. Zoho can manage ongoing projects by using tools like Planning, Time Tracking,
Reports, Wiki, Forum Zoho mobile app will give user an update on smartphone.

4. User can post on Twitter for campaigning. User can attach a link in LinkedIn, Facebook
or even post an image and status messages and use Zoho tools to track the interest generated.

5. Zoho connect is a platform where all employees can interact and get things done
without any security threat.

6. Make emails with customize templates, to boost email marketing.

7. Zoho CRM is complete service called Zoho CRM integration service. It is enriched with
above thirty five apps. User can easily use extensions like Zoho Mobile Edition, Zoho
Email, Zoho Projects, Google Apps, Mail Chimp, Twitter, Facebook and many more. Zoho
CRM is
 17

still working on collaborate more apps. User can easily transfer data from app to app, which
minimize time consumption. It makes far more better communication between employees
in any organization and decision making

8. Zoho CRM is more affordable than any other CRM software. Recently Zoho has
launched a new software suite called Zoho One. Because of its wide range of application
and lower costing it is highly preferred by small and medium enterprises.

9. It allows for an open API, which gives user far more freedom to use the system. User
can customize there business interface according to fulfill needs.

Tally:

With more than 75% market share and 2 billion business users, tally is undoubtedly the
best accounting software in India for small enterprises. Tally is so popular with the
accountants that the first thing that comes to their mind when asked about accounting
software in Tally. As accountants have been using this software for so many decades, they
have established a comfort factor for working on tally and have a huge preference for
working on tally. Its mass reach and user acceptability is what driving its growth. As
accountants have been using this software for so many years for preparing the Balance
Sheets,they prefer not to shift from this software to some other software and rather prefer to
update the same software to newer versions of Tally.

Facilities with Tally-

● Data import and export facility

● Audit facility
● Budgeting
● Scenario management
● Bank reconcilitation
 18

Tally Solutions-

Tally Solutions Pvt Ltd.

Type Private

Industry ERP Software

Founded 1986

● Shyam Sunder Goenka

Founder
● Bharat Goenka

Bengaluru, Karnataka

Headquarters ,

India

Tally.ERP9, Tally.Server9,
Products
Tally.Developer9 and Shoper9

Website tallysolutions.com

Tally accounting is a software used for accounting purposes. It is provided by Tally

Solutions and is a standard business accounting software. Tally ERP is a very robust ERP
product and is a complete business management solution.Tally is defined as record, count or
a record of debit and credit or an account. Tally is powerful accounting software, which is
driven by a technology called concurrent multilingual accelerated technology engine. It is
easy to use software and is designed to simply complex day to day activities associated in an
enterprise. Tally provides comprehensive solution around accounting principles, inventory
and data integrity. Tally also has feature encompassing global business. Tally software
comes with easy to use interface thus making it operationally simple.Tally accounting
software is capable
 19

of undertaking financial analysis and financial management. It provides information around

receivables turnover, cash flow statement, activity consolidation and even branch accounting.

Tally accounting software is east to set up and simple to use. A single connection can
support multiple uses. It can be easily used in conjunction with the internet making possible
to publish global financial reports.

Tally accounting software can seamless connect with various Microsoft Applications. -

History-

Tally Solutions Pvt. Ltd., is an Indian multinational company that provides enterprise
resource planning software. It is headquartered in Bengaluru, Karnataka India. The company
reports that its software is used be more than 1.6 Million customers.Tally Solutions. Then
known as Peutronics, was co-founded in 1986 by Shyam Sunder Goenka and his son Bharat
Goenka. Shyam Sunder Goenka was running a company that is supplied raw materials and
machine parts to plants and textile mills in southern and eastern India. Unable to find
software that could manage his books of accounts, he asked his son, Bharat Goenka, 23, a
Maths graduate to create a software application that would handle financial accounts for his
business. The first version of Accounting Software was launched as an MS-DOS application.
It had only basic accounting functions, and was named Peutronics Financial Accountants.

● In 1999, the company formally changed its name to Tally Solutions.

● In 2006, Tally launched Tally 8.1 a concurrent multi-lingual version, and also Tally 9.
● In 2009, the company released Tally.ERP 9, a business management solution.
● In 2015, the company launched a program called Vriddhi to certify and classify its
business partners. Also in 2015, Tally Solutions announced the launch of Tally
ERP.9 Release to 5.0 with taxation and compliance feature.
● As of 2016, the company had 1 million customers.
● In 2016, Tally Solutions was shortlisted as a GST Suvidha Provider to provide
interface between the new Goods and Service Tax [GST] server and taxpayers and
in 2017, the company launched its updated GST compliance software.

Tally. ERP 9-

Tally’s main product is its enterprise resource planning and accounting

software called Tally. ERP 9. For large organisations with many branches, Tally.
 20

Server 9 is offered. The software handles accounting, inventory management, tax

management , payroll etc.

Evolution of Tally ERP 9-

Tally Solutions was established in the early 1980s. Mr. Bharat Goenka, the man behind Tally
ERP 9 had dreamt to develop this software with advanced technologies keeping pace with
time and business requirements.

Antraweb Technologies is an trusted partner of Tally Solutions almost since it’s inception
and having 6 branches, 200+ expert Tally Professionals and more than 25,000+ satisfied
global customers in Dubai, Mumbai, Pune and other cities.

Antraweb Technologies is a one-stop solution for all your accounting needs providing
complete Tally based solutions, which includes installation, support, migration,
customization, integration, training and Tally software Licence.

Different Version of Tally-

There are 9 versions of Tally:

● Tally 3.0
● Tally 4
● Tally 4.5
● Tally 5
● Tally 5.4
● Tally 6.3
● Tally 7.2
● Tally 8.1
● Tally 9
● Tally ERP 9

Tally 3.0:

Tally released this version in 1990 wherein it supported only Basic Accounting needs of a
small businesses. This version required some predefined commands for the software to be
operated. This version only ran on Microsoft DOS and was unable to run in Windows Os.
 21

Tally 3.12 : Established in 1991, this version of tally focused on the basics of accounting
somewhat similar to version 3.0.

Tally 4:

1992 was the year for version 4 of Tally. Like its predecessors, it also supported DOS based
accounting as it could not be run on windows operating system.

Tally 4.5:

Tally released this version in 1994 which ran on MS-DOS and focused on financial
accounting system. This version focused on accounting activities such as Ledgers
Classification Vouchers Entry. It offered simple financial reports and scrutiny of debtors and
creditors in the business.

Tally 5:

The year was 1996 when Tally released its upgraded version to Tally 4.5 working on
Windows operating system. This version comprised of inventory modules which involved
detailed inventory, structure invoicing and integrating accounting and inventory records.

Tally 5.4:

This version released in 1996 was an enhanced module over its earlier 5.0 version. It had the
capacity of importing of data facility with the help of which it was able to convert earlier data
formats into the current data format.

Tally 6.3:

This version released in 2001, this version was an extension enterprise systems wherein it
interacted with other system through Open Data Base Connectivity.

Tally 7.2:

This version released in 2005, this version came up with new additional features. It is the
fastest version where operations are completed faster then before. Additional features
including statutory complaint features, different VAT values, etc made it more unique then
usual versions.

Tally 8.1:

Released in 2006, this version is a software that supports multi language. It support 10
languages.
 22

Tally 9:

Released in 2006, this is an enhanced version over the earlier 8.1. It supports 13 languages,
including foreign ones and also include Payroll, POS [Point of Sales].

Tally ERP.9:

This is the latest version released in 2009 which is a complete business solution. This version

offers different features such as remote access, much commanding data security, tally.net and
several more.

Tally all Versions list

YEAR VERSIONS CONTENTS

1988-1989 4.0 Account only

1989-1990 4.5 Account only

1990-1997 5.0 Account with Inventory

1997-2000 5.4 Account with Inventory

2000-2005 6.3 Account with Inventory

2005-2006 7.2 Account with Inventory,

Vat, TDS, Service tax

1 September 2006 8.1 Account with Inventory,

1 December 2006-2009
Vat, TDS, Multi
lingual, Composit vat,
Excise
9 Account with Inventory,
Vat, TDS, Multi lingual,
Composit vat, Payroll, Job
casting, Excise co-dealer

12 March 2009 ERP 9 Account with Inventory,

Vat, TDS, Multi lingual,
Composit vat, Payroll, Job
casting, Remote access,
Excise for manufacturing
 23

Advantages and Disadvantages of Tally Accounting Software

Advantages of Tally accounting software-

● Enables effortlessness data movements- The main benefits of accounting software

is when the data is entered through the application: it is updated throughout the
programs.
For example- If a person makes some entries in stock, the data has been
updated at every department level and in every management. The employers
can view the updated data files at their software terminal. No need to move the
data file from one department to other. Everything happens automatically at
the main server or at the main database, as the information has been
automatically updated.
● Less expenses on data collection and data transfer of files- The data of inventory
and accounting is required at almost every business unit be it a small business or a
corporate business, and accounting software helps us to save money and time
consuming also spend on maintenance of paper files and accounting data.
● Fast data files transaction- The manual process of accounting and spend more
time on calculations is prevent through accounting software.
● To get easy and fast documents accesses- Each and every data entry gets updated in
the software and we can make easy way of getting reports of every week, month,
quarter or year in minutes.
● Easy to use and handle- We can conduct every day business transactions through
our accounting software and we may even make payment online through the software
to our clients or we can receive payment through online transaction.
● Web enabled services- Web enabled accounting software can be used if the
company has branches at many geographical locations, in that time it reduce the time
consuming problems.
● Industry specific software sides- There are many of industries specific
accounting software, designed for manufacturing or construction sector etc.
● For better sales promotion’s- Accounting software not only benefits for the
business owners, but the employees and customers are also benefited from the
features. The process of monetary transaction speeds up on the use of a software and
customer are satisfied to get quick services and getting more value on the services.
 24

● Human errors are eliminated on the data- The software does its job on time
without error and the company officials get time to concentrate on core business
activities. If a company gets exact file information and exact figures on time all
activities, it can make forecast for further processes and make strategies documents
to improve the business. The time spent on handling accounting books and resources
is reduced and non mistakable of errors.

Disadvantages of Tally accounting software-

● Not user-friendly- Tally fails to be an user friendly software. It does not help you
use it with ease. It is of course a simple software but not everyone can grasp the
knowledge of accounting soon after installing. Hence it fails to guide its users in a
simple way on how to use it when you do not know have much knowledge about
accounting.
● No useful Upgrades- They have brought out new versions of Tally but the
improvement has been bare minimum. There was Tally 4.5 and till Tally ERP 9 but
the difference is hardly noticeable. And in case you have got yourself the old Tally
than you cannot improve it with new features that the latest version has, which is
one of the biggest drawbacks of this software. You are stuck with one kind of tally
as the developers does not care to check on the old existing Tally that are still being
used. However they have now made it possible to move from 7.2 to 9 and it is a
good start.
● Is not ideal for Multi-branch- In case we have multiple branches, Tally becomes
way too expensive to run. We will have to invest in Servers and LAN bundled with
Tally.net. Further more the sync is not real-time. It needs manual sync and the data
is not updated if the accountant is not available in any of the branches to sync
manual.
● Not flexible- The default setting button is not provided. In case we want to change
the setting after the configuration settings are done. We have to restart and delete all
the ledgers and start again from the beginning. Once we have created the journal
voucher it is not possible to make changes in it. In Tally ERP 9 once we have set the
level of the items in the inventory we cannot set the level once again after the
recorder. This makes it very rigid and difficult to use.
● No central support- The support system of this software is still lagging behind and
that makes it difficult for the users to find support when there is any issue with the
software. It makes the users find even more difficult in operating it as there are no
good supports from the other side to help them out with the training on how to use
it.
 25

● Risk of Data loss and intrusion- As it is an offline software therefore it has no

backup in case our system crash or some mishap takes place. Therefore we have
to separately back up your data which gives birth to extra work.
● Bad Integration of Invoicing Modules- Tally does not have any modules that we
can call as an extra feature that results automatically when using a feature that
already exists independently. So it does not provide account payable, receivable, etc:
unlike quickbook and other software.
● Low security- We have to be very careful with the password as well. Once we have
lose or forget the user password the retrieving of data is very difficult and quite time
consuming. Also there is a alarming possibility of losing the data in case of a virus
or hard disk crash.
● No customization- Customization is very limited. When they customize their
product for you, you do not get the complete package and it makes it even more
difficult for you to work with as you pay the price but then you have to settle for
minimum.

Features of Tally ERP-

Organizations including small, large industries and non-profitable areas are also being
benefited with Tally software. Let us have a brief look at the accounting software features of
the Tally software.

Voucher Entry:

Tally software has the unique voucher entry system that enables diverse transactions at ease.
The feature is also flexible to use. As per the accounting terminology, the voucher is a
document with the details of various business transactions. Likewise, the software has also
been loaded with several accounting vouchers each used for a particular purpose.

Interest Calculation:

The software uses different interest calculation methods that are customized for every
transaction. Once the calculation is done, the user can get a detailed report of the interest
obtained. The report helps in knowing the balance amounts that are ought to receive.

Integration of Ledgers:

Tally software inculcates multiple ledgers including General ledger, Sales ledger, and
Purchase Ledger into a single ledger. The ledgers have been differentiated into groups to get
 26

ease in the account management. Unified ledgers concept helps in entering data and creating
records simultaneously.

Individual Bill Tracking:

The software enables the user to track the bills of trading and non-trading accounts. The user
can track the new bills, receipts, payments and adjustments made against the bills without any
hassles.

Replacing Accounting Codes:

The software replaces the accounting codes with regular names for accounts. It eases up the
maintenance of complex ledger systems. Due to the replacement of accounting codes,
everyone can operate this system without the knowledge of accounting codes.

Control, Audit, and Budgeting:

Tally's superior audit capabilities enable the user to have unlimited periods and budgets. With
the help of this feature, the user can track changes and make corrections at ease. Using
security levels, the user can gain robust access control.

Billing Information:

Tally software enables the user to handle the top to bottom billing information that is
receivable and payable as well. It helps the organizations in allocating payments regarding
invoices and the overdue ones. The software also helps in segregating good customers and
bad customers using the billing information.

Multiple Currency Support:

Many companies involving in International Trade conduct transactions has increased the
usage of multiple currencies. Due to exchange rate fluctuations, companies find it difficult to
record transactions. Tally software renders a great help in easy transaction management
involving foreign currencies.

Every feature has its own unique advantages to the companies. Users who intend to start
learning Tally software can complete the work twice faster than before. Mazenet Solutions,
the leading provider of ERP solutions built in the Tally platform. The organization trains
candidates and make them a valuable product in the current market. For more information,
visit the site and enroll the details.
 27

SOME COMMON TERMS USED IN TALLY-

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 IN 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 OUT 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.

CREDITORS: Creditor is the person to whom amount 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 by the businessman from his business
for his personal , private and domestic purpose. Drawings may be made in the form of
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,
everything or property and every type of service.

LEDGER: The book of final entry where accounts lie.

JOURNAL ENTRIES: A daily record of transaction.

TRIAL 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 book of accounts.

PROFIT: Excess of credit over debit side.

 28

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.

SHORT CUT KEYS

F1 : To select a company.

Alt + F1: To shut or close the company.

F2: To change the current date.

Alt + F2: To change the period.

F3: To select a different company which is already loaded . {If one company is loaded in
gateway of tally, this button is disabled.

Alt + F3: To access companies info. Menu.

F4: To connect companies on Tally.NET.

Alt + F4: To disconnect companies on Tally.NET.

F11: Features.

F12: To access the configuration settings.

F4:Contra voucher

F5: Payment voucher.

F6: Receipt voucher.

F7: Journal voucher.

F8: Sales voucher.

Ctrl+F8: Credit note voucher.

F9: Purchase voucher.

Ctrl+ F9: Debit note voucher.

F10: Reversing Voucher.

Ctrl+ F10:Memo voucher.

Alt+ D: To delete a voucher.

 29

F11: Company features.

Ctrl+ N: Calculator screen.

Ctrl+ V: Voucher mode {Cr. Dr.}

Steps in Tally-

Install the Tally software: Tally 9 ERP can be purchased and downloaded from the Tally
website. We can download a 30-day trial version if we're not sure if we want to use it yet.
Tally 9 is for Windows only. We can also use Tally in Educational Mode, which allows us to
learn how to use the software without having to purchase a license. Some features are
restricted in this mode.

Navigate Tally. Tally is designed to be navigated by using the keyboard. While we can
click any option we want, everything in Tally has a keyboard shortcut. Usually, the key is
displayed next to each available option. Learning how to get around with the keyboard will
increase our efficiency.
 30

In order to use Tally, following steps must be followed:

1. Create a company

2. Enable GST features

3. Ledger creation

⮚ How to create a company-

● Go to Gateway of Tally > Alt + F3 > Create Company

● Enter the basic information, i.e., name, mailing name and address of the
company, currency symbol etc.

● In the ‘maintain field’, select Accounts Only or Accounts with Inventory as per
the company requirements.

● In the Financial Year from, the first day of the current financial year for e.g., 1-4-2017
will be displayed by default, which can be changed as per requirement.

● Enter the Tally Vault Password if required.

● Press Y or Enter to accept and save

⮚ Enabling GST features in Tally-

1. Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

2. In the screen you will find following options :

3. Enable goods and service tax (GST): Yes

 31

1. Set/alter GST Details: Yes.

● This will display another screen where you can set GST details of the company such
as the state in which company is registered, registration type, GSTIN number etc.

● Press Y or Enter to accept and save.

F11 Company Feaatures in Tally ERP 9-

Go to Gateway of Tally>F11;Features

The F11:Features menu is displayed as shown:

The menu consists of the following options;

● Accounting features [F1]

● Inventory features[F2]
● Statutory and Taxation[F3]
● Audit features[Applicable only for Auditors Edition][F4]
● Tally.Net features[F5]
● Add-on-features

F1 ACCOUNTING FEATURE- This feature enables us to set the various Accounting

Feature required for transaction entries.

Go to Gateway of Tally>F11:Features >F1:Accounting Feature

F2 INVENTORY FEATURE- This feature enables us to set the Inventory feature required
for the transaction.
 32

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

F3 STATUTORY AND TAXATION- This feature enables us to set the statutory features
required for the transaction.

Go to Gateway of Tally>F11:Feature>F3:Statutory and Taxation. We can enable the future as

per our statutory requirement.

⮚ Ledger Creation-
 33

After creating a company and activating GST features, you need to create ledgers that will
enable you to pass accounting entries in Tally.

Here are the following steps :

Go to Gateway of Tally > Accounts Info > Ledgers > Create

● Enter the Name for the ledger you want to create such as purchase, sales, state tax,
central tax, integrated tax, stock item names etc.

● Select the appropriate group to which such ledger belongs for example state tax
under duties and taxes group.

● Enter the other related information required and press Y or Enter to accept and save.

After having done the above 3 steps, we can start entering accounting entries in Tally.

For this, Go to Gateway of Tally >Accounting Vouchers. There are many

accounting Vouchers in Tally such as Payment, Receipt, Contra, Sales, Purchase, etc.
Choose the relevant Voucher and start passing the accounting entries.

VOUCHER ENTRY -

Tally comprises of the following vouchers, to suite different business requirements for
recording various transactions. Tally also allows us to create user-defined Vouchers as per as
our requirements.

● Contra Voucher {F4}

● Payment Voucher {F5}
 34

● Receipt Voucher {F6}

● Journal Voucher {F7}
● Sales Voucher/Invoice {F8}
● Debit Note Voucher {Ctrl+F9}
● Credit Note Voucher {Ctrl+F8}
● Purchase Voucher/Invoice {F9}
● Memo Voucher {Ctrl + F10}
● Reversing Voucher {F10}
⮚ Contra Voucher- The Contra voucher is used to transfer funds. In the Conta voucher,
the transaction between cash and bank are recorded. That’s why only cash and bank
related lagers are displayed in it.
Example:
● Cash deposited into bank.
● Cash withdrawn from bank.
● Cash deposited into bank.
● Check receive from bank.
⮚ Payment Voucher- This voucher is used to keep a record of all types of
transactions related to the payment, whether the payment is in cash or through the
bank. Example:
● Salary paid.
● Wages paid to Mohan.
● Cash paid to Shyam.
● Discount given on goods.
● Rent paid.
⮚ Receipt Voucher- Receipt voucher is used for entry related to receipts.
Example:
● Cash receive from Aman.
● Salary Receive.
● Rent receive.
● Commission receive to Ram.
⮚ Sales Voucher- Sales voucher is used to see all the transactions related to the
sale, whether cash or borrowed.
Example:
 35

● Sold goods worth 1500.

● Selling furniture to Mohan.
● Rama sold cash machines.
● Sanjay sold the goods.
⮚ Purchase Voucher- Purchase voucher is used to purchase all the transactions
related to purchasing, whether cash or borrowed,
Example:
⮚ Furniture purchase.
⮚ Machine purchase from Sohan.
⮚ Goods purchase from Mohan by cash.
⮚ Building sold.
⮚ Credit Note Voucher- Credit note voucher is used for entry related to the sale of
the sale, apart from this, it is also used to enter the discount on the goods. Before
using

⮚ this voucher, it has to be activated. To activate it, pressing F11 key has to be
done using yes.
Example:
● Sold out goods.
● 10% discount on the goods sold.
⮚ Debit Note Voucher- The Debit note voucher is used to enter into the relate to the
purchase return, apart from this, it is also used to enter the discount on merchandise.
Before using this voucher, it has to be activated. To activate it, pressing F11 key
has to be done using yes.
Example:
● Company A purchases goods worth Rs 200 from Company B.
⮚ Reversing Voucher: This is a special type of voucher that automatically becomes
similar to a journal voucher after a certain period. This voucher is used to reverse
the entry.
⮚ Memo Voucher- This is a non accounting voucher. It is used for memory
related entry. The effect of the entry made in this voucher does not affect any
statement. Example:
● Advance salary given to employee.
● Office expenses.
 36

● Goods given to Shiva.

⮚ Journal Voucher- A journal voucher is an important voucher which is used to make
all kinds of adjustment entries, credit purchases or sales, fixed assets purchase
entries. In order to pass entries as journal voucher we have to press F7 shortcut key
from accounting voucher screen on Gateway of Tally.
Example:
● Credit assets purchase/sales.
● Drawings/Donation/Charity as Goods.
● Goods distributed as Free sample.
● Loss be fire/Loss by theft.
● Any adjustment entry.

Types of Entries:

⮚ Purchase-

Entries having Purchase A/c Debited like:

Purchase A/c Dr
To Party

Purchase A/c Dr
To Cash

⮚ Sales-

Entries having Sales A/c Credited like:

Party Dr
To Sales

Cash Dr
To Sales
⮚ Receipt-

When Cash or Bank is Debited like:

Bank Dr
To Party
 37

Cash Dr
To Party
⮚ Payment-
When Cash or Bank is Credited like:
Party Dr
To Bank

Party Dr
To cash
⮚ Contra-
When both Cash and Bank are Debited and Credited
like: Bank Dr
To Cash

Cash Dr
To Bank
Bank 1 Dr
To Bank 2
⮚ Journal-

When there are no Purchase/Sale/Bank/Cash like:

Exp Dr
To party
Asset Dr
To Income
Party Dr
To income

Day Book in Tally:

The Day Book lists all transactions made in a particular day and by default displays the last
voucher entry date of a regular voucher. It could also be set up to list all the transactions
made over a certain period. Transactions include all financial vouchers, reversing and
memorandum journals as well as inventory vouchers. In Tally.ERP 9, the Day Book is by
 38

default displayed for the current date (as on the last date of voucher entry). However,
you may specify the required period, as per your requirements.

To view the Day Book : Go to Gateway of Tally > Display > Daybook . The Day Book will
appear as shown below:

2. Click F2: Period to change the period for which the Day Book is displayed.

3. Click F4: Change Vouch to view Day Book for a particular voucher type.

4. Select the required Voucher Type to display. The screen appears as shown below:
 39

5. Click T: post dated to view the Post-dated Transactions report for the specified period.

Trial Balance in Tally:

A trial balance is a summary of all ledger balances, and helps in checking whether the
transactions are correct and balanced. If journal entries are error-free and posted correctly to
the general ledger, the total of all debit balances should be equal the total of all credit
balances.

Note : By default, the Trial Balance report will be generated as on the date of the last
voucher entry. You can change the date to view the report for the required period.

Objectives of preparing a Trial balance:

⮚ To ascertain the arithmetical accuracy of ledger accounts: As a summary of all the

ledger accounts closing balance, trial balance helps in determining the accuracy of
journal and ledger posting. The trial balance is assumed to be accurate only when the
total debit is equal to the credit.

⮚ Helps to Locate Errors : If there any difference in the trial balance, it signals that
journal or ledger posting is not carried out efficiently. It clearly implies that there
are errors and it is high time for accountants to find and correct it. The error may
have occurred at any of the following stages of accounting.

o Posting journal entries to the ledger account

o Totaling of Subsidiary books

o Calculation errors
 40

o Posting of Balance from Ledger account to trial balance

o Error in totalling Trial balance and so on ...

⮚ Helps to prepare Financial Statement : Trial balance is a bridge between

accounting records and financial statements. Trial balance is the steppingstone for
preparing all the financial statements such as Trading and Profit & loss account,
balance sheet etc. Using the trial balance, all the income and expenses related ledger
accounts are compiled to create Profit and loss account and rest are used for preparing
a balance sheet.

How to Prepare Trial Balance

Preparing trial balance is one of the first steps towards preparing final accounts and other
financial statements. Following are the steps to prepare trial balance:

● Preparing ledger accounts to determine the closing balance of each account.

● Post the ledger Accounts into trial balance and place the balance in the debit or
credit column. The format of the trial balance is explained in the next section.

● All the assets and expenses should have debit balance while liabilities and
income should have credit Balance.

● Calculate the total of the debit balance

● Similarly, compute the total of the credit column

● Finally, the sum of debit balance should match the sum of credit balance.

● If there is any difference, the process of error rectification should be started. Errors
could be of commission errors, errors of omissions, errors of principle,
compensating error and so on…

To view the Trial Balance : Go to Gateway of Tally > Display > Trial Balance . The Trial
Balance appears as shown below:
 41

2. Press F12 to configure the Trial Balance , as required.

Note: As per accounting principles, the Trial Balance does not display the closing stock.

3. Press Ctrl+A to accept.

Note: While providing the opening balance in ledgers, equivalent contrary balance will
appear as Difference in opening balances in order to tally the assets and liabilities, or debit
and credit balances. The entry passed for the difference will affect the closing balance, but
the Trial Balance will still display the difference in the amount. To balance the difference
in the closing balance, you need to adjust it with the opening balance of another ledger.

For example , if the Difference in opening balances is Rs 5000/- on the debit side, adjust
this with Rs 5000/- of credit in the opening balance of another ledger.

Profit & Loss Account in Tally-

Profit and Loss Account or Income Statement is a periodic statement, which shows the net
result of business operations for a specified period. All the expenses incurred and incomes
earned during the reporting period are recorded in the Profit and Loss account or Income and
Expenditure account.The profit and loss account in Tally.ERP 9 displays the information
based on the default primary groups. It is updated instantly with every transaction/ voucher
that is entered and saved. No special processing is required to produce a profit and loss
account in Tally.ERP 9.

To view the Profit & Loss Account of ABC Company,

 42

Go to Gateway of Tally > Profit & Loss A/c

● Click F1: Detailed, to view the Profit & Loss Account in detailed format.

The Profit & Loss Account is displayed as shown:

The Profit & Loss account is generated and updated immediately from the date of opening of
books till the date of last entry.

Press F2: Period to change the period as required.

Note: The Profit & Loss Account is displayed according to the configuration set up in the
F12: Configure.

Horizontal Form of Profit & Loss Account:

The Profit & Loss A/c, by default is in horizontal form. However, you may configure the
same to view in Vertical form by pressing it in F12: Configure. You can view additional
information or toggle to another report using the options available in the Button Bar.

Some of the Button Bar options are

● Select F1: Detailed/Condensed to display more information or condense.

● Change the date of the Profit & Loss Account using F2: Period.
 43

● Add new columns to

>Display the Profit & Loss Account for a different period to compare with the current
one

>Display the Profit & Loss Account in a different currency

>Display a column with Budget figures and analyse variances

>See the effect of different Stock Valuations on the Profit/Loss account.

>Select and compare Profit & Loss of different companies.

Schedule VI Profit & Loss A/c-

A new button S: Schedule VI has been provided in Profit & Loss A/c screen to view
Schedule VI Profit & Loss A/c.

Clink on S: Schedule VI button of press Alt+S to view Schedule VI Profit & Loss A/c

The Schedule VI Profit & Loss A/c is displayed as shown

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● The report displays the Schedule VI Income and Expense Heads with the respective
balances. Default Tally Accounting Groups are automatically linked to their
respective Schedule VI Income/Expense Heads. The Ledgers that are classified
under these Accounting Groups, too, get linked to the Schedule VI Heads. This is a
broad classification provided by Tally.ERP 9. Users can reclassify the
Groups/Ledgers under other Schedule VI Income/Expense Heads as required.
● Schedule VI Income/Expense Heads consisting of Groups/Ledgers that have not been
categorised by the user, will be displayed as Ungrouped and in red, to bring the same
to attention.
● Press Enter on the required Schedule-VI head/sub-head to view the respective Note
Summary report.
● Total value of Ledgers grouped under Exceptional Items from Schedule VI
Configuration screen will be captured for the same Head on the face of the
Statement of Profit and Loss
● Total value of Ledgers grouped under Extraordinary Items from Schedule VI
Configuration screen will be captured for the same Head on the face of the
Statement of Profit and Loss
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● Where F11: Statutory Features are enabled and used, Tally.ERP 9 will
automatically categorise VAT and CST enabled Sales Ledgers under Sale of
Products, and Service Tax enabled Ledgers under Sale of Services

Comparison of Tally with other Accounting Softwares-

● Comparison between Tally and Zoho-

Tally Zoho

Tally is a simple accounting software Zoho is a fully business ready CRM

software

Tally is on premises software Zoho CRM is cloud based software.

Tally is used to calculate multiple types
of accounts, multi currency transaction,
calculate profit and loss controls , and
make a perfect budget report for the
company
Zoho CRM has all those features
including accessibility of contacts. Its
feature is more efficient to give user a
close view of invoices, supply bills
and users contacts.

Multiple Indian language support which Multiple foreign language support which
makes it more efficient for Indian users. makes it globally acclaimed CRM
software.

Onetime payment system and its much User friendly payment system, monthly
higher. and yearly basis and costs very low.

Mobile compatible for IOS and Android It is better mobile compatible features
platform like Android, IOS, Amazon, Microsoft
windows

Company name Tally solution Pvt. Ltd. Company name Zoho Corporation
Headquarter is in Bangalore. Pvt.Ltd. Headquarter at Chennai.

● Comparison between Tally and Sap-

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Tally Sap

Tally ERP is associated with SAP offers some really sophisticated

basic features of ERP features of the ERP package.

Tally has several products to offer such SAP also provides several other products
as Tally Server 9, Tally Developer 9 such as Customer Relationship
and Shoper 9 wherein, Tally Server 9 is Management, Supplier Relationship
specifically configured for medium to Management, Product Lifecycle
large businesses to work as a powerful Management, etc. SAP ERP has been
data server. most sought after software for small as
well as midsize companies.

Tally ERP offers more advanced SAP is concerned, third party software
features such as data validation and data support for it is extremely high in
substitution. comparison to Tally.

Tally software is comparatively more SAP is comparatively less user friendly and
user friendly, easy to learn and requires professional guidance and
doesn’t require professional training. training.
One can easily learn it on its own.

● Comparison between Tally and Quickbooks-

Tally Quickbooks

Tally ERP 9 is an accounting software QuickBooks Online Accounting Software

from Tally Solutions Private Limited. from Intuit is a cloud based accounting
Tally ERP is offered as a software software offered in a SAAS mode
that can be installed on any PC
running Windows XP or higher.

QuickBooks is offered as in a SAAS Tally ERP 9 is offered as a software. A

model through the clouds. Therefore, PC running Windows XP or higher is
 47

there is no software to install and the required. Tally ERP 9 is a works as a

accounting information of the Company stand-alone software and the
can be accessed from any computer with accounting information is stored on the
an internet browser. PC’s hard- drive.

Tally ERP 9 is a powerhouse of QuickBooks Online has been released in

features and functionalities. Tally ERP India only about a year ago, targeting
9 can be used to manage the accounting small and medium sized businesses.
information of small or large businesses
in any industry – have any type of
business model.

Tally ERP 9 is powerful and feature-rich. QuickBooks is extremely user-friendly

However, Tally lags on user-friendliness.
Maintaining and accessing accounting
information from Tally ERP 9 is a breeze
for those trained and experienced on the
software, having accounting knowledge
and intuitive. QuickBooks can be easily
operated by anyone without any prior
accounting knowledge or training on
QuickBooks.

Tally ERP 9 Silver software can be One year QuickBooks online edition can
purchased online through be purchased through IndiaFilings.com
IndiaFilings.com for Rs.17,000. There are for Rs.3000 inclusive of all costs.
no renewals associated with purchasing
Tally ERP 9 software – though purchase
of higher editions when launched maybe
required to stay updated. Tally ERP 9 is
also provided in a monthly rental format
with a monthly rental of Rs.600 –
wherein future upgrades are included.
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How is Tally Different from Manual Accounting-

Manual Accounting Accounting Accounting in Tally

[As done Practically]
[As done in School/College books]

Manual Accounting is the system in In this system of accounting, we use

which we keep physical register of computer and different accounting
journal and ledger for keeping the records software for digital record of each
of each transaction. transaction.

We first: We only:
1. Make ledger name
1. Pass Entries
2. Pass Entries
2. Make ledgers
3. Make Trial Balance Automatically Ledgers, Trial
4. Make profit and loss Balance and Balance Sheet updated.
5. Make Balance sheet

More chances of errors and very time Less chances of error and less time
taking.
Taking.
[However, Accounting entry should be
correct, otherwise there will be errors]

Balance sheet Asset and liability rarely Balance sheet automatically tallied with
tallied. each entry.

Trial balance is prepared when Instant trial balance is provided on daily

necessary. basis.
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Recording of Entries

M.S. NIKHERA AND COMPANY

● Record the following transactions in the books of ‘’M/S Albert & Bros.’’
1. Aasim started a business with Rs.50000
2. He opens a SBP saving bank account and deposits Rs.20000
3. Brought furniture for Rs.5000 and machinery for Rs.10000
4. Purchased goods for Rs.14000
5. Sold goods for Rs.8000
6. Purchased goods from AK & Company for Rs.11000
7. Paid telephone rent for the year by cheque Rs.500
8. Bought one typewriter for Rs.2100 from’Universal Typewriter Co.’on credit
9. Solds goods to Junaid for Rs.12000
10. Sold goods to Rehan for Rs.2000 cash
11. Amount withdrawn from bank for personal use Rs.1500
12. Received cash from Junaid Rs.11900 and discount allowed Rs.100
13. Paid into bank Rs.5800
14. Bought 50 shares in XY & Co. Ltd at Rs 60 per share, brokerage paid Rs.20
15. Issued a cheque for Rs.1000 in favour of landlord for rent for April
 50

Journal of “M/S Albert & Bros.’’

S.No Particulars Debit Credit

Rs Rs
1. Cash A/c Dr 50000

To Capital A/c 50000

20000
SBP saving bank A/c Dr
2. 20000
To Cash A/c
10000
Machinery A/c Dr
3. 5000
Furniture A/c Dr
15000
To Cash A/c
Purchase A/c Dr
4. 14000
To Cash 14000
Cash A/c Dr
5. 8000
To Sales A/c 8000
Purchase A/c Dr
11000
6. To AK & Co. A/c 11000
Telephone rent A/c Dr
500
7. To SBP bank A/c 500
Typewriter A/c Dr
2100
8. To Universal Typewriter Co. A/c 2100
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11 1500
Drawings A/c Dr
1500
To SBP Bank A/c
11900
Cash A/c D
12 100
Discount allowed r
12000
A/c To Junaid D

A/c r

SBP bank A/c Dr 5800

13 To Cash A/c 5800

3000
Investment in shares Dr
20
A/c Brokerage A/c Dr
3020
To Cash A/c
14

Rent A/c Dr 1000

15 To Bank A/c 1000

9 Junaid A/c Dr 12000

To Sales A/c 12000

2000
Cash A/c Dr
10 2000
To Sales A/c
 52

M.S. NIKHERA AND

COMPANY Day
Book
1-April-2018 to 31-March-2019

Date Particulars Voucher type Voucher no Debit Credit

1-4-2018 Cash Contra 1 300000.00
1-4-2018 Saumya Receipt 1 2500000.00
1-4-2018 Bank loan Receipt 2 500000.00
4-4-2018 Accounting Charges Payment 1 48000.00
4-4-2018 Cash Purchase 1 1350000.00
Timber Purchases 1350000.00
27-4-2018 Cash Sales 1 900000.00
30-4-2018 ZS Co.Shares Journal 1 2500000.00
4-5-2018 Shivam Purchase 2 1350000.00
5-5-2018 Motor Vehicle Payment 2 150000.00
30-5-2018 Esha Payment 3 25000.00
31-5-2018 Depriciation Sales 2 1000000.00
1-6-2018 Bank Charges Journal 2 22500.00
4-6-2018 Cash Payment 4 15000.00
6-6-208 Machinery Purchase 3 1350000.00
27-6-2018 Cash Payment 5 150000.00
30-6-2018 Depriciation Sales 3 2000000.00
2-7-2018 Bank interest Journal 3 22500.00
5-7-2018 Deva Payment 6 50000.00
7-7-2018 Furniture Purchase 4 1350000.00
30-7-2018 Tanya Payment 7 100000.00
31-7-2018 Depriciation Sales 4 1000000.00
3-8-2018 Commision Journal 4 10000.00
7-8-2018 Krishna Payment 8 36000.00
8-8-2018 Computer Purchase 5 1350000.00
28-8-2018 Cash Payment 9 200000.00
31-8-2018 Depriciation Sales 5 2000000.00
4-9-2018 Freight Journal 5 120000.00
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Date Particulars Voucher type Voucher no Debit Credit

6-9-2018 Krishna Payment 10 50000.00
9-9-2018 Air conditioner Purchase 6 1350000.00
30-9-2018 Depriciation Payment 11 100000.00
4-10-2018 Freight Journal 6 15000.00
6-10-2018 Krishna Sales 6 1000000.00
9-10-2018 Air conditioner Purchase 7 1350000.00
30-10-2018 Depriciation Payment 12 2000.00
4-11-2018 Jatin Sales 7 2000000.00
5-11-2018 Electricity expenses Payment 13 500.00
27-11-2018 Cash Purchase 8 1350000.00
1-12-2018 Postage Sales 8 1000000.00
5-12-2018 Jatin Payment 14 6500.00
30-12-2018 Palak Purchase 9 1350000.00
2-1-2019 Printing and Stationery Payment 15 350000.00
7-1-2019 Nikunj Purchase 10 1350000.00
3-2-2019 Salary Sales 9 20000.00
6-2-2019 Nikunj Payment 16 40000.00
5-3-2019 Apurva Sales 10 100000.00
25-3-2019 Cash Payment 17 15000.00
 54

M.S.NIKHERA AND COMPANY

Profit & Loss A/c

1-April-2018 to 5-March-2019

Particulars 1-April-2018 to 31-March-2019 Particulars 1-April-2018 to 31-March-2019

Opening Stock 16,81,848.44 Sales Accounts 4,32,99,616.28

Purchase Accounts 2,74,43,682.50
Direct Incomes 56,550.00
Direct Expenses 43000.00
Gross Profit c/o 2,17,81,930.40 Closing Stock 75,94,295.06

73,30,923.75 73,30,923.75

Indirect Expenses 73,30,923.75 Gross Profit b/f 2,17,81,930.00

Indirect Incomes 10,50,000.00
Net Profit 1,55,01,006.65

Total 2,28,31,930.40
Total 2,28,31,930.40
 55

CHAPTER-4

LEARNING, LIMITATION, SUGGESTIONS, CONCLUSION

Learning:

I learned through my training program that how I can

● Improve communication skills.

● Establish high standard in professionalism.
● Learn more then the theoretical knowledge.
● Apply the theoretical knowledge in actual organisation.
● Compare practical aspects with theoretical aspects.
● Promote my personal knowledge and professional preparation for future. To
properly integrate my theoretical knowledge and practical work.
● Plan for the future of oneself and learn how to adjust in an organisation.
● Know how to present our recommendations in front of boss.
● Get knowledge of opportunities and threats while entering into an organisation.
● Get exposure to do a work in an organisation and also known about organisational
behaviour, ethical rule and regulation.

Limitations:

● They have a small staff with shallow skills base in many areas.
● Less number of staff members.
● Workspace is low.

Suggestion:

● Staff should be increased.

● There should be separate place for internship.
● Workspace should be more.
 56

CONCLUSION

In review this internship has been an excellent and rewarding experience. I have been
able to meet and network so many people that I am sure will be able to help me with
opportunities in future.
One main thing that I have learnt through this internship is time management skills
so as well as in office for six hours a day, six days a week. Once I realized what I had
to do I organised my day and work so that I was not overlapping or wasting my
hours. I learnt that I needed to be organised and have questions ready for when it was
the correct time to get feedback. From this internship and time management I had to
learnt how to motivate myself through being in the office for so many hours.
At last I would like to conclude by saying:
● Tally ERP 9 is such a type of accounting package which provides the
simplest mode of performing various accounting treatment for transactions.
● Tally ERP 9 provides facilities of self generated statement.

As a whole it can be said that TALLY is the most desirable and required accounting package.
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BIBLIOGRAPHY

GOEL, D.K.[2017].Accountancy. Delhi: APC Publication.

Press,[20100.Tally ERP.9 in simple steps. Dreamtech Press.

https://www.softwaresuggest.com › accounting-software

https://tallysolutions.com
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