PRACTICAL FILE

OF
COMPUTARIZED ACCOUNTING SOFTWARE (TALLY)
Submitted in partial fulfillment of the requirement of
B.COM (H)

UNDER THE GUIDANCE: SUBMITTED BY:

MR. SHALU CHAUHAN RAVISHANKAR CHOUDHARY
Assistant professor(MCIT) ENROLLMENT NO.:
01721588820

CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES AND

SCHOOL OF LAW
AN ISO 9001-2008 certified institute (Approved by Govt. of NCT of
Delhi Affiliated to Guru Gobind Singh Indraprastha University, Delhi)

1
 INDEX
S.NO. TOPIC PAGE NO.
1 INTRODUCTION TO
TALLY:
 Introduction to
TALLY accounting 4-15
software
 How to install
TALLY ERP 9
 Features of TALLY
 Advantages &
disadvantages of
TALLY
 Technology
disadvantage
2 PRACTICAL1. (creation of
company)
1.1 creation of company in 16-21
TALLY ERP 9
1.2 basic information
3 PRACTICAL2. (creation of
ledgers) 22-28
2.1 introductions
2.1.1 ledgers &
Groups
2.1.2 ledger creation
i. simple ledger
ii. multiple ledger

4 PRACTICAL3. (accounting
vouchers)
3.1 introduction
3.1.1 accounting 29-39
vouchers
 practical
representation of
every vouchers
5 PRACTICAL4. (BANK
RECONCILIATION
STATEMENT 
) 40-43
4.1 introduction
4.2Using auto bank
reconciliation in Tally.ERP

2
 9

4.3 Working steps:

INTRODUCTION TO TALLY ERP9 OR ACCOUNTING

SOFTWARE
WHAT IS TALLY?

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Whenever we hear the name Tally, the very first thought that comes to our mind is accounting
software, because it’s the no. 1 accounting software in India which captures almost 90% of
market share. Tally ERP 9, is the major latest version of Tally. Tally prime is the latest version
of tally.

DEFINITION- Tally ERP9 is a windows-based Enterprise Resource Planning software. The

software handles Accounting, Inventory Management, Order Management, Tax Management,
Payroll, Banking and many such requirements of the business. here, ERP means Enterprise
Resource Planning software.

WHAT IS THE USE OF TALLY SOFTWARE

If you are a business owner, then you have a need to manage your business accounting, and here
Tally comes into picture. Tally is an accounting software, which is used to manage accounting of
a business. It’s an accounting software used for Barcode Integration, Email Integration,
Management, Inventory Management, VAT / CST / GST Reports, Service Tax, TDS / TCS and
much more. It is used in almost all types of companies. After implementation of GST (Goods
And Service Tax) in India, Tally incorporates it as a feature, hence  it’s now being used by more
and more people.

HISTORY OF TALLY 

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As we all know Tally is a very old software, it was first introduced in 1986. It’s a software which
was designed by a Bangalore based Multinational company Tally Solutions Pvt. Ltd. It is a
private company that used to deal with ERP software at that time.Tally was invented by Shyam
Sunder Goenka and Bharat Goenka.

It’s basically an accounting software used by both small and large companies. Due to a business
program like Tally, work has become easier & time saving. All those complex calculations have
been made easier. It comes with different kind of versions, so that, a person can choose from one
of them according to his/ her needs. It offers various versions from the Education version to
Auditor version, which is specially designed for Chartered Accountants. 

How to use Tally.ERP 9

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Download latest version of Tally ERP 9 with GST. The downloading and installation of Tally
ERP 9 software is an easy method and fast. Here we have provided a simple procedure steps to
download Tally ERP 9 software and install Tally on Windows OS or Apple Mac computer
systems for practice..

Process 1: Installation: (Buying a machine, we first install it for using it)

Tally software can be purchased and downloaded from the Tally website

Process 2: Navigation: (After installation is complete, we use it’s hardware supports or software

supports to use the machine)
Tally.ERP 9 is designed to be navigated by using the keyboard. While we can click any option
we want, everything in Tally has a keyboard shortcut. The Shortcut as we say is usually the key
displayed next to each available option. Learning how to get around with the keyboard will
increase efficiency

Process 3:Create a Company: (After we get some idea about the machine, we set the program
for it to work)
To use Tally, we will first need to create a company in the program. Even when we are not using
tally professionally, we still need to create a company using the following steps:

Step 1: In the opening menu, select "Create Company"

Step 2: Enter Company details:

Enter the company name as it appears on banking records

Enter the company address, statutory compliance, telephone number, and email

Step 3: Turn on "Auto Backup" to ensure that a copy of all your work is saved in case something
happens to the original.

Step 4: Choose your currency

Step 5: If you are using Tally to just manage your accounts, then select "Accounts only" in the
Maintain menu and If you are using Tally for inventory management as well, select "Accounts
with inventory".

Step 6: Enter the start of your financial year and the start date for the books

Process 4:Usage: (Now since we were going to use the machine, it becomes important to first
learn about the machine's usage)

Operations How to use Tally.ERP 9 in Detail

Creating Ledgers Understanding what ledgers are for: Ledgers in Tally
record all of the transactions for that account. One will

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 need to create a ledger for each account that they do
business with. Two ledgers are included in Tally by
default: "Cash" and "Profit and Loss Account". We can
create as many other ledgers as we need. How to?

Step 1: Open Create Ledger window by following the

given direction: Gateway of Tally > Account’s Info >
Ledger > Create

Step 2: Select the group. Here we will be required to

select as to which group the ledger will be assigned to.
Choosing the right group is important, as it will affect
how numbers and sales are totalled later

Step 3: Give the ledger a name. Enter a name for your

ledger to know what the ledger contains in it without
having to open it

Step 4: Enter an opening balance (if any).For Example:

If you are creating a ledger for your bank account, this
would be the amount currently in it. If you are starting a
ledger for the amount owed to a Vendor, the amount
you owe would be the starting balance
Creating Vouchers Understand the purpose of vouchers:  It is a document
that contains the details of a financial transaction. These
are used for all aspects of a business, from sales to
deposits. Tally.ERP 9 comes with several of the most
popular types of vouchers pre-configured for usage.
How to create different vouchers? Step 1: Open the
vouchers screen using the following direction: Gateway
of Tally > Accounting Vouchers

Step 2: In this step, we can choose the voucher we want

to create. Here’s is the list :

F4: Contra : For recording money deposited into or

withdrawn from the bank, or for
recording any sum transferred between
two accounts in the same company.
F5: Payment This voucher is used for payments
made by the business.
F6: Receipts For recording any income earned by
the company (sales, rent, interest, etc.)
and for recording the proceeds
received from Sundry debtors.
F7: Journal For recording all adjustment or due

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 entries such as prepaid expense,
accrued income etc., For recording
purchase of assets for recording Input
tax reversal entries, reverse charge
entries under GST
F8: Sales This is used for recording all the sales
made by the company
F9: Purchase This is used for recording all the
inventories purchased by the company
in the course of business.
Step 3: Enter the required information.
The information needed to complete the voucher will
vary depending on the type of voucher we want to
create. We will have to typically need to determine
which ledger the voucher will be attached to, as well as
enter the date and names of any involved parties.

FEATURES OF TALLY
Simplicity: Tally.ERP9 accounting software is easy to set up, simple to use and is designed to
simplify the complex day to day activities associated in an enterprise. It allows easy Keyboard
operations and requires basic knowledge of Accounts and English to use it.

Auditors’ Edition: A special Auditors’ Edition is offered by Tally.ERP9, which provides

auditing and compliance capabilities exclusively for Chartered Accountants.

Remote Access: Tally.ERP9 provides its users with remote capabilities to access the data
from any location whatsoever at any point in time.

Scalability: Tally.ERP9 suits any style of business needs and eliminates the necessity for a
business to change its style of operation, in order to adapt to the nature of the application.

Power: Tally.ERP9 allows users to maintain multiple companies and with unlimited levels of
classification & grouping capabilities. It even allows drill-down facility from report level to the
transaction level.

Accounting without Codes: Tally.ERP9 allows accounting with the regular names without
any account codes.

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Real-time processing: Real-time processing allows immediate posting and updating of
books of accounts as soon as the transactions are entered, thereby facilitating instant statements
and reports. It also facilities a real-time and multi-user environment.

Concurrent multi-lingual capability: Tally.ERP9 offers its users with the exclusive

capability of maintaining their accounts in any Indian language, viewing them in another
language and printing them in yet another Indian language.

Flexibility: Tally.ERP9 comes with a flexible option to generate instant reports for any given
period, either month or a year or at any given point of time besides providing the facility to
switch between Accounting & Inventory reports of the same company or between companies.

Speed: Tally.ERP9 provides the capability to generate instant and accurate reports, which
assists the management to take timely and correct decisions for the overall productivity and
growth of the organization.

Control Centre: works as an interface between the user and Tally.ERP9 installed at different
sites and enables the user to centrally configure and administer Site or User belonging to an
account.

TALLY VERSIONS LIST WITH TIME

Whenever a software is first introduced, developers try to deliver the best of their knowledge.
But later on, they want to add some more functionality or want to fix some problems of previous
one. Then they introduce a new variant to that previous software, which is called the new
version. In case of tally, Tally has majorly released 9 versions since 1986, when it’s first version
was introduced. And the Latest version of Tally is Tally ERP 9 release 6.6.1.The details from
first to the latest versions are shared in the form of info graphic as shown below. 

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10
1. In 1990, the very first version Tally 3.0 was launched which worked only on Microsoft
DOS.
2. A similar version of 3.0 was released in 1991, that was Tally 3.12.
3. Tally 4 was released in 1992 which only operated on DOS.
4. In 1994, Tally 4.5 came out which was used more in financial activities with the help of
Ledgers and Classification vouchers entry.
5. In the year 1996, they released its upgraded version as Tally 5 which could not only run
on MS-DOS but on the windows operating system as well. Inventory was added as a tool
in it. It could perform the functions of inventory records, and accounting.
6. In the same year 1996, Tally 5.4 was released with an update of importing data which
helped in importing data from one operating system to another.
7. In 2001, Tally 6.3 was released which was an upgrade to all the previous versions.
Through open data connectivity, it was able to connect to other operating networks.
8. In 2005, Tally 7.2 was released with a new tool of Taxes.
9. In 2006, Tally 8.1 came out with multiple language support.
10. In 2006, Tally 9 was launched which an upgrade was given to Tally 8.1. It included
Payroll and POS which supported 13 Languages including some foreign languages too.
11. In 2009, Tally ERP 9 was released, with high security features. Tally then became a
work efficient and very useful software of new generation.
12. After that they have just made various releases available with more additional features
and the recent release is Tally ERP 9 release 6.6.1 which was launched on 20 February
2020

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TALLY PRODUCTS

Most of us think that Tally Solutions has only one product to offer, which is Tally, but today here
you will get to know about some more products which are also offered by Tally Solutions and
you have sometime or the other heard their names as well. You can say, these are related
products and offered by Tally.So here they are:

1. TALLY ERP 9
2. TALLY AUDITOR EDITION
3. TALLY SERVER 9
4. TALLY SHOPER 9
5. TALLY DEVELOPER 9

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TALLY ERP 9

IS TALLY ERP 9 FREE?

Let’s start with the most popular question which asks about Tally. So, the answer is Yes and NO
both. So let me tell you how it’s FREE. Tally offers a one month trial absolutely free. If you
want to use it for more than 1 month then you have to purchase it.

TYPES OF TALLY ERP 9

On a broader level, we can say, Tally has only two types of editions. One is the Silver edition, it
is also commonly known as Single User Tally. And the other one is Gold edition, it is also
commonly known as Multi User Tally.But if we go deeper, then you will also find one more
edition, that is Auditor Edition. Auditor Edition is a C.A. only edition.So let’s discuss in details
about all types of Tally: 

TALLY AUDITOR EDITION

It’s an advanced version which is specially designed for Chartered Accountant as per their needs.
The main key feature of the Auditor version is the Audit Function. The Auditor version has lots
of extra features as compared to Multi-user Edition. But even with extra features, it costs cheaper
than Multi user Tally.If you are a CA, you can claim your discounted Tally TODAY from this
link.

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TALLY SERVER 9

Tally ERP 9 is a very useful software worldwide. With Tally Server 9, We can increase the
speed of the execution of the task. It converts the peer to peer data into the server based data.
Which helps in making the execution and transfer of the data very fast and simple.

TALLY SHOPER 9

Tally Shoper 9 is a completely different software, it’s nowhere related to Tally ERP 9. Shoper is
a POS(point of sale) software. It is mostly used by retails chains or retails shops, but frankly
speaking it is not popular as compared to the popularity of Tally ERP

ADVANTAGES AND DISADVANTAGES OF TALLY

Advantages

 Depending upon the needs of the small or large business groups alongside, its different
features make it a very useful software. It helps you to take your decisions easily with its
wide range of features.
 You can remote access your account with the help of Tally.NET.
 With various language support, it is convenient for a user to use it in his own language.
 In the latest version, if your operating system shuts down suddenly due to some reason
your data won’t be lost.
 In the past year’s people used to manage their accounts manually, all the complex
calculations were done manually which had a high risk of error. But, as we now use Tally
it’s pretty simple and easy to use and comes with less risk of errors.
 As it has numerous functions performing various tasks is made simple due to this
software. Especially in the case of GST.

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DISADVANTAGES

 Retrieving the data after forgetting the user ID and password is a bit difficult. Fewer, data
security is also one of the disadvantages.
 It is complex software for beginners to use. It lacks back office support for the users who
find some trouble using it.
 Backing up your data is also one of the issues users face while working with Tally. You
have to manually back up your data at someplace. It won’t do the backing up by itself.
 It doesn’t allow you to open the same transaction sheet from various systems on a single
operating system. It’s a single window software.
 As Tally has upgraded itself year by year there is no major update made in it. It has the
same features as the ability to do some extra work.

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 PRACTICAL1.

(CREATION OF COMPANY)

CREATING OF COMPANY IN TALLY ERP-9.

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

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

The Company Creation screen appears as per Figure below:

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

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Directory
It is nothing but the data storage location. The tally directory will store all data you entered in
Tally ERP 9. Anyway, by default, the data storage will be inside the installation folder.

Name
In this field, we are required to type the name of the company, for example. XYZ INC.

Primary mailing details

 Mailing name

In this field, we are required to type the name of the company, for example. XYZ INC.

 Address

In this data field, we are required to enter the address of the company.

 Country

Here we are required to select the country from the list in which the business Operates.

 State

In this data field, we have to select the state in which we would comply with statutory
laws

 Pin code

Pin code of the location where the office exists.

Contact details
 Phone no

Enter the Company contact number which we would like to display on Invoices

 Mobile no

Enter the Contact number of Managing Person to whom any queries related to Invoicing
or Delivery of product, complaint in the product could be reached to

 Fax No

Enter the Fax number to which any confirmation statements, ledger copies etc., could be
sent and received

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  E-mail

Enter the company’s email address to which any product inquiry and other
communications could be made.

 Website

Enter the company’s web address if any

Books and financial year details

 Financial year begins from

In this data field, you have to type the financial year in which you want to create a
company. Suppose you may be starting company on December 01 2018, you should enter
the financial year from as 01.04.2018.

 Book beginning from

In this data field, you have to type the financial year in which you want to create a
company. Suppose you may be starting company on December 01 2018, you should enter
the financial year from as 01.04.2018.

o Starting in the middle of the financial year.

o Companies which are migrating from Manual Accounting to Tally ERP 9 in the
middle of the financial year.

Security control
 Tally Vault password (if any)

This data filed is for security purpose. By enabling this field, Tally ERP 9 Convert tally
data into an encrypted format. To encrypt means convert data from recognised format to
unrecognised format.

By entering the Tally Vault password we can prevent unauthorized access of company
data. Now in Latest Tally ERP 9, There is a password strength indicator, which will help
you to set a strong password. Red colour indicates a weak password whereas peach-
orange colour: fair, Yellow is good and Green colour indicates a strong password.

CAUTION: FORGETTING TALLY VAULT PASSWORD WILL RENDER THE

DATA INACCESSIBLE

Use security control?

Enabling this data field, we will get complete control over the data, we can assign users for
specific purposes, for example:

18
  We can assign data entry operators who can access only voucher entry screens.
 We can assign billing clerks who can access only Sales invoice voucher
 We can assign Financial managers who can access financial data’s and reports as the
administrator control his access.

In this data field, we will be asked the administrator name and password

Base currency information

 Base currency symbol 

In this data field, the currency symbol of the country is auto selected based on the country
of origin fed by you in the previous data field. There is no need to change this data field if
you are using the same currency for accounting.

 Formal name

This is the formal name of the currency selected in the previous field

 Suffix symbol to amount?

This data field will ask you whether currency symbol is required for example: prior to
amount like $ 4,500

 Add space between amount and symbol?

This data field is like $ 4,500 space in between currency symbol and amount.

 Show amount in millions?

If we set this data field to Yes, Tally will display the amount in millions that are in the
Balance sheet or other reports. Amount for example 100,00,000 will be shown as 10.
[One million equals 10,00,000].

 Number of decimal places

It is a general practice to use 2 decimal places, for example:

o For using Paisa in Indian currency we use 2 decimal place.

o for using cents in American dollar currency we use 2 decimal places
 Word representing amount after decimal

This data field is used in printing, in Indian currency decimal portion is said to be Paisa.
Set this field as per your formal name of the decimal value in your currency. For USD it
is cents. Hundred cents make one dollar.

19
  Number of decimal places for amount in words

If we set this data field to 1 decimal places in Indian currency, then while printing 75
Paisa. Will print as seventy Paisa, if we set this to 2 decimal places, then it will print the
second fraction like seventy-five Paisa.

The message Accept? Yes or No will be displayed.

Press Y or Enter to save the details.

1.2BASIC INFORMATION:
1.2.1 Select a Company
 Go to Gateway of Tally > F3: Company Info. (Alt+F3)
 Click Select Company, or press S. Tally ERP 9 displays the Select Company screen, with
a List of Companies that are available in the location specified. You can also press F1 to
get to the Select Company screen.

1.2.2 Shut a Company

 Go to Gateway of Tally > F3: Company Info. (Alt+F3)

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  Click Shut Company. Tally ERP 9 displays the Close Company screen, with the List of
Companies that are open. You can also use Alt+F1 from the Gateway of Tally to get to
this screen.

1.2.3 Alter Company Details

 By ‘altering’ a company, you are modifying the details which you have provided in the
Company Creation screen.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
 Click Alter or press A. Tally ERP 9 displays the Select Item screen, with a List of
Companies that are available in the location specified. Select the company which you
need to alter and press Enter to view the Company Alteration screen. Alter the company
details as required and accept the screen.

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 PRACTICAL2.
(CREATION OF LEDGER)

2.1 INTRODUCTION:
A ‘Chart of Accounts’ is a list that depicts the accounts that a business uses to record
transactions in its books of accounts.
Tally ERP 9 will put together your business’ chart of accounts based on the ‘Ledgers’ and
‘Groups’ that you identify.
2.1.1. LEDGERS AND GROUPS:

 LEDGERS: A ‘Ledger’ is an account head. For instance, the sales account head will be
called a ‘Sales Ledger’ in Tally ERP 9. Similarly, a customer would be an account head,
and will be called a ‘party ledger’.
You can create ledgers specific to your business transactions.
For a newly created company, there are two pre-defined ledgers available in ERP
 Cash
 Profit & Loss A/c

To view the list of ledgers, go to Gateway of Tally > Accounts Info. > Ledgers > Display
(Multiple Ledgers) > Select All Items.

 GROUPS: A ‘Group’ is the accounting group under which ledgers of the same nature can
be classified. For instance, Tally ERP 9 has a default Group ‘Sales Accounts’, under
which all the sales ledgers will be classified.
There are 28 pre-defined groups in Tally ERP 9, which feature in the chart of accounts of
many organizations. Out of these, 15 groups are primary groups and the remaining 13 are sub-
groups. Among the 15 primary groups, 9 groups are balance sheet items and the remaining 6
groups are Profit & Loss A/c items. You can use these groups to build your chart of accounts, as
well as create and used group’s specific to your business transactions.

However, you may also alter the nomenclature of these 28 groups.

To view the list of the 28 groups, known as the List of Accounts, go to Gateway of Tally >
Accounts Info. > Groups > Display (Multiple Groups) > Select All Items.

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Out of the 15 Primary groups, the following appear in the Profit & Loss Account:
1. Sales Accounts

2. Purchase Accounts

3. Direct Incomes or Income (Direct)

4. Indirect Incomes or Income (Indirect)

5. Direct Expenses or Expenses (Direct)

6. Indirect Expenses or Expenses (Indirect)

2.1.2 LEDGER CREATION:

In Tally ERP 9, we can create the ledgers in two ways given below:
I. Single Ledger Creation: Here we can create one ledger at a time.

II. Multiple Ledger Creation: Here we can create different ledgers at one go and also ledgers
which belong to particular group.

I. Single ledger creation: Creation of Proprietor’s Capital Account ledger from single ledger
creation screen.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single Ledger Creation)

23
2. Enter Name as Proprietor’s Capital Account

3. Select Capital Account from the List of Groups

Tally ERP 9 displays the total debit and credit opening balances in the right upper corner of
screen while the ledgers are being created in the ledger creation screen. This is to avoid
differences in the opening balance.

II. Multiple Ledger Creation

Now let us create the following ledgers using the Multi Ledger Creation option:
To create Multiple Ledgers at once, follow the below given steps:
1. Go to Gateway of Tally > Accounts Info > Ledgers > Multiple ledgers > Create

2. From Under Group field select All Items

3. Under Name of Ledger enter the name as kajora ltd

4. Select as Sundry Creditors from the List of Groups

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

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Now that we have learnt how to create ledgers under Tally ERP 9’s default pre-defined groups,
let us move on to
Understand how to make alterations to ledgers that are already created.

Altering and Displaying Ledgers

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

You will not be able to delete a ledger, once the financial transactions (vouchers) have been
entered (excluding the Opening Balance). If there is a need to delete a ledger with any financial
transactions, all the transactions must be deleted first by pressing Alt+ D.

2.1.3 GROUP CREATION:

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

25
Single Group Creation

To create the group,

1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Single Group)
2. Enter Name as sara ltd
3. Against the field Under select Sundry Debtors from the List of Groups

Note: To create a Multi Group in Tally ERP 9, go to Gateway of Tally >. Accounts Info >
Groups > Under Multiple Groups > Select Create.

Now, Create a company “your name@automobiles” and create the

following ledgers:

LEDGERS UNDER GROUP

Capital a/c Capital a/c
Building a/c Fixed assets
Air conditioner a/c Fixed assets
Furniture and fixture a/c Fixed assets

26
Vehicle a/c Fixed assets
Computer a/c Fixed assets
Machine a/c Fixed assets
Telephone bill a/c Indirect expense
Electricity bill a/c Indirect expense
Salary a/c Indirect expense
Depreciation a/c Indirect expense
Commission received a/c Indirect income
SBI A/C Bank a/c
PNB a/c Bank a/c

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VOUCHER ENTRY-
Sr. Receipt voucher Sr Payment voucher
1 Received cash Rs. 3000000 with 5 Building purchased worth Rs 100000
capital a/c with cash
2 Receiving Rs 6000000 with capital a/c 6 Furniture purchased worth Rs 50000
in PNB bank with cash
3 Commission received Rs 200000 7 Air conditioner purchased worth Rs
100000 with cash
4 Rent received Rs 50000 with cash 8 Vehicle purchased of Rs 500000 with
PNB
9 Computer purchased of Rs 50000 with
PNB
1 Telephone bill paid by PNB Rs 5000
0
1 Electricity bill paid with cash Rs 10000
1

Sol- screenshot of tally software (showing ques solution)-

28
 PRACTICAL3.
(ACCOUNTING VOUCHERS)

3.1 INTRODUCTION:

In accounting terms, a voucher is a document containing the details of a financial transaction.

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

Tally ERP 9 follows the Golden Rules of Accounting:

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  Type of Voucher -It is essential to check if you are using the right voucher for the
transaction. You can change the voucher type by selecting a new type from the button
bar, if required. For example on the selection of a payment voucher, Tally. ERP 9
automatically displays the list of voucher types you have created. You can select the
voucher type required.
 Voucher Number -Tally ERP 9 automatically sets the voucher number for you. You
can change the voucher number manually, if required.
 Reference -You can enter a reference of your choice. A purchase order number or an
invoice number can be entered as a reference.
 Date of Voucher -The date of the voucher you enter is displayed at the top-right of
the voucher creation screen. The date is taken initially from the Gateway of Tally -
Current Date and you may need to change it frequently to ensure that the vouchers are
dated as you want.
 Effective Date- A voucher type can be configured to allow for an effective date. The
line below the date of voucher displays the date when the voucher will be effective. This
will be available only if the effective date option is activated in the particular voucher
type.
 Particulars -This is where you enter the ledger names and the debit and credit
amounts. Each line displays a prompt of Dr or By for debit entries and Cr or To for credit
entries.
 Narration -Here you type whatever appropriately describes the transaction. Remember,
you can have a separate narration for each line of particulars, if you configure the
voucher type in that way. Once the narration is complete, press Enter to bring up the
Accept? The box. Once you accept the data, Tally ERP

3.1.1 Accounting Vouchers

Tally ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform
a different job. The standard accounting vouchers are:
 Contra Voucher (F4)

 Payment Voucher (F5)

 Receipt Voucher (F6)

 Journal Voucher (F7)

 Sales Voucher/Invoice (F8)

 Credit Note Voucher (Ctrl+F8)

 Purchase Voucher (F9)

 Debit Note Voucher (Ctrl+F9)

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

Now,

Practical representation of every voucher down under:

CONTRA VOUCHER- Contra in Latin means the opposite. It is more popularly

known as contra voucher. To make the definition further simpler, any transactions
involving a transfer of cash between one cash a/c to another or one cash a/c to another
bank a/c or one bank account to another is called as a contra entry.

 ENTRY- cash deposited into axis bank amt. 20,000

 Journal- axis bank a/c dr……. 20,000

To cash a/c…………20,000

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PAYMENT VOUCHER- The Payment Voucher (PV) authorizes the spending of money.
You can use it to pay an outside vendor or to transfer money within your entity. Date of
Record. Default is the date the document is accepted.

ENTRY- purchased furniture for office use for amt. 50000

Journal-furniture(office use) a/c dr…….50000

To cash a/c…………………….50000

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RECEIPT VOUCHER- Like the payment voucher receipt voucher is the document
maintained for the purpose of account for the receipt transactions in a business or company.
Company or business may receive payments in various purposes like sales, settlement of dues
etc.

ENTRY- received cash from miss sara of amt. 100000

JOURNAL- cash a/c dr……..100000

to miss sara a/c…100000

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JOURNAL VOUCHER- Journal voucher in Tally is an important voucher which is
used to make all kind of adjustment entries, credit purchases or sales, fixed assets
purchase entries.

ENTRY- furniture of amt. 100000 being depreciated @10% p.a

JOURNAL- depreciation a/c dr…….10000

to furniture a/c………...10000

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SALES VOUCHER- The Sales Voucher is most widely used by the users of Tally.
ERP9, it is a type of accounting voucher. Depending on the nature of your business, it
can be created in the Invoice mode or Voucher mode. In the Invoice mode, you can print
and provide a copy of the invoice to your customers.

ENTRY-sold goods to MR abhi on credit of amt. 500000

JOURNAL- MR abhi a/c dr…….500000

To sales a/c………..500000

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PURCHASE VOUCHER-  Purchase Vouchers is used when you have
to purchase some goods from any party and you get an invoice against cash or
credit purchase from the party. Tally provides the facility to create purchase and
credit purchase entries from Purchase voucher.

ENTRY- purchased goods from MR shek on credit of amt. 1000000.

JOURNAL- purchases a/c dr……….1000000

To MR shek a/c………..1000000

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Now,

For debit note and credit note, first we need to enable them..

Hence, press f5 and F6 go to the features and enable debit and credit note column

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CREDIT NOTE VOUCHER- Credit Note Voucher (Ctrl + F8) – Sales
Return Voucher in Tally. ERP9. ... To use it in Voucher mode you need to enable the
feature in F11: Accounting Features - Use debit and credit notes. To make the entry in
Invoice mode enable the option F11: Accounting Features - Record credit notes in
invoice mode.

ENTRY- MR abhi returned the defected goods of amt. 200000.

JOURNAL- sales return a/c dr……..200000

To MR abhi a/c……….200000

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DEBIT NOTE VOUCHER- Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory features . To use it
in Voucher mode you need to enable the feature in F11

ENTRY- returned defected goods to MR shek of amt. 400000

JOURNAL- MR shek a/c dr………400000

To purchase return a/c..400000

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 PRACTICAL4.
(BANK RECONCILIATION STATEMENT (BRS)

Bank Reconciliation Statement is an explanation of the difference between bank balance

as per cash book and bank balance as per Passbook (Bank statement). Sometimes, the
bank balance as per cash book and pass book do not tally with each other, then we can
know the difference between them by preparing the bank reconciliation statement.

The process of checking the differences between a bank column of the cash book and the
bank statement or passbook is called Bank reconciliation process in accounting terms.
The person preparing BRS Statement has to check all the transaction recorded in the cash
book with transactions recorded in passbook by the bank.

Using auto bank reconciliation in Tally.ERP 9\

After enabling the Auto Bank Reconciliation option, now one can go ahead and reconcile the
bank statement with the company’s books following these directions :

 Step 1 Go to ‘Gateway of Tally > Banking > Bank Reconciliation’

Step 2 Select the required bank which has to be reconciled from the ‘List of Bank’
Step 3 On the ‘Bank Reconciliation’ screen, press ‘B: Bank Statement’ or ‘Alt +
B’
Step 4 Specify the ‘Directory’, where you have saved the downloaded bank
statement
Step 5 In case you need to change the ‘File Type’, you can press ‘Backspace’ to
select the appropriate ‘File Type’ for the bank statement to be imported
Step 6 Once you’ve selected the required ‘File Type’, select the required bank
statement file from the ‘List of Files’, and reconciliation will happen
automatically. Once the reconciliation happens, a ‘Success!!’ notification
will be displayed with details like ‘Total Entries in Bank Statement’,
number of entries reconciled and ‘Additional Bank Entries’
Step 7 Now press any key and the Bank Reconciliation Statement with Imported
bank statement details will appear. Now the screen will show the
reconciled list of entries from the bank statement under ‘Amounts not
reflected in Company Books’
Step 8 Begin the reconciliation process for entries under Amounts not reflected in
company books by verifying with the Bank Statements obtained from the

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 bank or the Bank book maintained by you.

BRS is prepared by a business man to know causes of difference between cash

book balance and pass book balance on a particular date.

For example:-

1)    Salary paid Rs. 50,000 through PNB.

2)    Rent paid Rs. 30,000 through PNB.
3)    Commission paid Rs. 20,000 through PNB.

Working steps:
First of all we create a company.
Now create ledger in the created company
Path for ledger creation:- G.O.T. (Gateway of tally)--> accounts info--> ledger--
> create(multiple).

Now we will do voucher entry as follows:

Path for voucher creation:- G.O.T. (Gateway of tally)à accounting

voucherà press F5(Payment voucher) and change the date by pressing F2 key.

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    1)    First, we do voucher entry of salary as follows:

    2)    Now, do voucher entry of rent as follows:

3)    And now, do voucher entry of commission as follows:

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After this we create Bank Reconciliation statement as follows:

Path for BRS creation:- G.O.T. (Gateway of tally)--> display--> ledger--> press

“Alt + F2” (to change the period)--> press F5 for Reconciliation--> insert bank
date

And then accept it “Yes”.

The Bank Reconciliation Statement is prepared

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7

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