A STUDY OF COMPUTERSIED ACCOUNTING

SYSTEM IN ANY BUSSINESS UNIT

WITH A CASE STUDY OF
MASTER CARE AIR CON SERVICES

A PROJECT REPORT SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE DEGREE OF MASTER OF COMMERCE

SUBMITTED BY

DIGAMBAR DNYANESHWAR NANGARE

ROII NO/SEAT NO

UNDER THE GUIDANCE OF

DR.PRASHANT SALAVE

DEPARTMENT OF COMMERCE
BABUJI AVHAD MAHAVIDYALYA PATHARDI
MAY- 2024
 Declaration by the Candidate

I declare that the field Project entitled A STUDY ON E-FILING OF TAX RETURN
INCOME TAX & GST submitted by me for the degree of Master of Commerce is the
record of work carried out by me during the period from 07/03/2024 to 12/03/2024
under the guidance of Dr. Prashant Salave Sir and has not formed the basis for the
award of any degree, diploma, associateship, fellowship, titles in this or any other
University or other institution of Higher learning. I further declare that the material
obtained from other sources has been duly acknowledged in the project

Date: Signature of the

Candidate
 Certificate of the Project Guide

CERTIFIED that the work incorporated in the Field project A STUDY ON E-

FILING OF TAX RETURN INCOME TAX & GST submitted by Mr./Ms. Digambar
Dnyaneshwar Nangare was carried out by the candidate under my supervision/
guidance. Such material has been obtained from other sources has been duly
acknowledged in the project.

Date: (Supervisor/ Research Guide)

 INDEX

SR. NO PARTICULAR

1. INTRODUCTION

2. LITERATURE REVIEW

3. PROFILE OF THE COMPANY

4. RESEARCH METHODOLOGY

5. DATA COLLECTION AND DATA ANALYSIS

6. FINDING AND CONCLUSION

7. SUGGESTION AND RECOMEDATION

8. BIBILIOGRAPHY

9. APPENDIX
 INTRODUCTION
A computerized accounting system is an accounting information system that
processes the financial transaction and events as per Generally Accepted Accounting
Principles (GAAP) to produce reports as per user requirements. Every accounting system,
manual or computerized, has two aspects. First, it has to work under a set of well-defined
concepts called accounting principles. Another, that there is a user-defined framework
for maintenance of records and generation of repots.
In a computerized accounting system, the framework of storage and processing of
data is called operating environment that consists of hardware as well as software
in which the accounting system, works. The type of the accounting system used
determines the operating environment. Both hardware and software are
interdependent. The type of software determines the structure of the hardware. The
type of software determines the structure of the hardware. Further, the selection of
hardware is dependent upon various factors such as the number of users, level of secrecy
and the nature of various activities of functional departments in an organization.
Take the case of a club, for example, where the number of transactions and their
variety is relatively small, a personal computer with standardized software may be
sufficient. However, fora large business organization with a number of geographically
scattered factories and offices, more powerful computer systems supported by
sophisticated networks are required to handle the voluminous data and the
complex reporting requirements. In order to handle such requirements, multi-user
operating systems such as UNIX, Linux, etc. are used.
Modern computerized accounting systems are based on the concept of database.
A database is implemented using a database management system, which is define by a
set of computer programmes (or software) that manage and organize data effectively
and provide access to the stored data by the application programmes. The accounting
database is well-organized with active interface that uses accounting application
programs and reporting system.

Every computerized accounting system has two basic

requirement:-
1.) Accounting Framework:-It consist a set of principles, coding and grouping
structure of accounting.
2.) Operating Procedure:-It is a well-defined operating blended suitably with the
operating environment of the organization.
Need and Importance and Significance of Computerized
Accounting System
1.) It processes data quickly and saves a lot of business time
2.) Performing large number of business transaction is possible with computerized
accounting
3.) This system of accounting reduces the manpower effort
4.) Computer accounting reduces the amount of paperwork
5.) It also ensures the security of accounting information from thefts and frauds
6.) Computer accounting can develop instant financial reports because of its
accuracy and speed
7.) Accounting information can be stored online (cloud facility) for longer
durations. This free up system space, speeds up the RAM and increases
performance

Benefits or Merits or Advantage of Computerized Accounting

System
1.) Computerized accounting improves financial performance and efficiency
2.) It ensures standardization of process and end results
3.) Computer-based accounting reduces the frequency of routine errors
4.) It reduces the investment in training costs
5.) Moreover, this type of accounting portrays that the company is updated and
adoptable
6.) An overall increase in the level of accuracy, effectiveness and efficiency of
the financial statement are accounting reports
7.) Another key benefit is that this type of accounting reduces operation cost due
to errors and repetitive working
8.) Financial workflow of the organization will not be hindered by the absence of
accountants
9.) Unique accounting techniques and procedures which are relevant to the
particular organization can be created
Requisites or Pre-requisites of Computerized Accounting System
1.) A computer system with (or without) satisfactory internet connection
2.) A well-organized accounting database
3.) Well-trained, efficient and competent accounts who have adequate computer
knowledge
4.) A well-established and or ganized accounting framework and operational
strategy
 5.) An effective backup arrangement of all accounting database is necessary in
order to avoid technical crash and loss of data
6.) An effective accounting policy which determines the financial functions and
ethics of the organization
7.) An appropriate accounting software that is compatible with the computer
specification as well as the organization’s needs.
8.) In case of technical glitches, an alternative accounting software is of paramount
importance

Complexities or Demerits or Disadvantage of Computerized

Accounting System
1.) This system explicitly steals human jobs as manpower, in particular, is replaced
by computers
2.) The added expense to install a computer/computers is an additional key point
3.) Furthermore, there is a requirement for special skills among employees
performing accounting tasks
4.) This accounting system will eventually depend entirely on the system. As a
result of this, there will arise the added risk of system failure and hindrance of
business operations
5.) Editing of data that has been misplaced under the wrong category can be very
challenging
6.) Spotting of errors that occur in the middle of the accounting process will be
difficult to identify and locate
7.) Since organization have a lot of workloads, they may not have the resources
(time or human) to create backups. Hence, loss of valuable accounting
data/information is a high possibility

Features or Characteristics of Computerized Accounting System

1.) It is aided by the technology of a computer
2.) Accounting with the help of computers yield accurate and efficient results after
data interpretation
3.) It is capable of storing very large quantities of accounting data. Data of the past
10 years can be stored in the accounting base
4.) Computer accounting systems make precise accounting reports that are of
good quality
5.) It is capable of interpreting very large quantities of accounting data
6.) Converting journal entries into ledger accounts can be done with ease and
precision
7.) Accounting with the help of computers reduce the process time drastically
 8.) Adopting computer-based accounting will ensure that you stay updated with
the needs and changes in the company
9.) This type of accounting demands accountants to have a strong
subject foundation. They should also have adequate knowledge of working
with computers

Online Accounting Information Systems

The use of intranets, extranets, and the internet and other technologies have
revolutionized the way, in which the accounting information systems monitor and track
the activities of a business organization. All these networks are interactive in nature, they
demand new forms of transaction files, controls and procedures.
Inventory Computerized Accounting System
Inventory is the main input of the production system. It includes raw materials,
goods in progress and finished goods. The knowledge of inventory data is critical, as it
may shutdown leading to losses, if inventory is running out of stock. Inventory control is
the technique of maintaining stock keeping items at the desired level. Inventory
information system is an essential part of an organization. Marketing production, finance
and purchase directly influence the level of inventory system.
Input
Inventory data is the level of inventory at a particular point of time. Production
data is the data related to production process. It gives the number of incomplete and
complete finished good. By using terminals on the shop floor, data on production process
can be quikly gathered and processed. Vendor data shows the source of raw material i.e.
from, where raw material can be procured. External data offers the knowledge of raw
material, prices and labour activity.

Output
Product design activities are getting more automated through computer
software’s like Computer Aided Design and Computer Aided Engineering Production is the
process of making new products from raw materials as per the design specification.
Material Requirement Planning (MRP) permits companies to effectively use computers to
establish a detailed inventory control.
Importance of Computerized Inventory System
1.) Provides and maintain good customer service.
2.) Enables smooth flow of goods
3.) Provides protection against the uncertainties of demand and supply
4.) Maintain minimum stock to obtain high profile margin
Computerized Transaction Processing Syste
Transaction processing system collect and process the data relating to
transactions. The transaction processing system concerns with capturing or collecting,
recording, coding and editing activities of transaction data.
In the data entry, data is captured or collected by recording, coding and editing
activities and then converted into a form, which can be led directly into a computer
system.
Data entry can be done in three ways viz. manual data entry, semi-automated data
entry, fully-automated data entry.
Computerized Accounting System in Income Tax
Computer helps in computation of taxable income from salary, house property,
capital gain etc. admissible tax deduction and rebates, depreciation rates.
Preparation of returns of income. A free preparation software called sampark is
available on department’s website since, 2003. This enables an online preparation of
return of income for non-business taxpayers through a question answer session.
Taxpayers can file returns through e-return intermediaries or directly through
internet. A utility has been provided to convert data of return of income to specified XML
format will simplify the process of digitizing the paper return information for taxpayers
and e-return intermediaries.
Computerized processing of returns has created database needed for selection of
cases for scrutiny, identification of stop filers and supporting data for decision-making
on tax policy issues.
A system of Computerized Assisted Selection of Cases for Scrutiny (CASS) has been develop to
introduce transparency, to eliminate discreation in selection of cases for scrutiny.
Free TDS returns preparation software has been provided for generating E-TDS returns

Information Technology and Income Tax in Computerized

Accounting System
Directorate of income tax (system) was created in 1981 to coordinate, at the
apex level, all activities relating to introduction of
Computerization in the Income Tax Department
and to perform the following functions:-

Software Development
1.) Conduct of feasibility and systems study, to identify areas suitable for
computerization
2.) Development, testing and documentation of application software packages
 3.) Implementation of software packages at various computer centres of
the department including on the job training and monitoring the progress of
implementation
Hardware Installations
1.) Conducting of bench mark tests for selection of appropriate computer
hardware for various users of the department and finalization of terms and
conditions of purchase with the approval of appropriate authorities
2.) Selection of sites for installation of computer hardware, preparation of sites
with the help of appropriate government agency, installation of
computer systems, conducting acceptance tests and making the system
operational
3.) Maintenance of computer hardware through appropriate agencies and
finalization of terms and conditions of the annual maintenance contract, which
may be taken up centrally and/or in decentralized manner through CCIT of the
region concerned
4.) Monitoring or the performance of installed computer hardware and periodic
evaluation of the needs of additional hardware

Training and Coordination

1.) Identification of training requirements of the department in the field of
computers
2.) Conduct of various courses at different computer centres of the departments
to build-up in house expertise in the field of computers at various operational
levels
3.) Coordination of all activities relating to the smooth functioning of all computer
centres of the department
4.) Evaluation of the requirements of technical manpower to fill the vacant
position in computer centres of the department and preparation of suitable
recruitment rules for the appointment of this manpower from within and
outside the department

National Computer Centre

1.) Planning and coordination of all activities relating to setting up and functioning
of the National Computer Centre
2.) Maintenance of the national database pertaining to departmental application
softwares
3.) Ensuring security of the national database
E-Governance /E-Delivery
The income Tax Department under National E-Governance Action Plan introduced
E-Delivery, a service for taxpayers. This services of E-Delivery is provided through website
as a single window 24 hours a day, 7 days a week, so that a taxpayer can full fill his routine
tax obligations without visiting income tax offices

Taxpayer Services Identified for E-Delivery

1.) Dissemination of tax related information
2.) Dissemination of taxpayer specific information
3.) PAN and TAN related services
4.) Preparation of returns of income
5.) E-Filling of returns of income
6.) E-Payment of taxes
7.) Computerized processing of returns/refunds

Computer Application in Computerized Accounting System

Computers have their application or utility everywhere. We find their application
in all computations are required to be done at a very fast speed and where data is so
computer. Some of the prominent areas of computer application are:-
1.) Tourism 2.) Bank’s 3.) Industry
Scientific and Engineering Application
 Surveying
 Navigation
 Weather forecasting
 Computer-aided Design and Manufacturing (CAD, CAM)
 Process control (e.g. in the chemical industry)
 Engineering drafting
 Software engineering
 Earthquake predictions
 Communications
 Defence
 Space science
Business, Commercial and Administrative Applications
 Preparation of payroll
 Invoicing
 Financial accounting
 Word processing and document preparation
  Annual reports and balance sheet preparations
 Commercial graphics displays, presentation animations
 Large-scale spread sheet calculation

Uses of Computerized Accounting System for Auditing Purpose

Computer is used in auditing procedure. They work to the advantage of auditing
in the following ways :-
More-Reliable
A computer works as programmed. If the programming has taken into account all
possible circumstances, the computer will work more reliable and consistently than the
manual system. In manual system, the auditor may undertake detailed checking of a
number of transactions, yet certain errors and frauds may remain undiscovered. It is not
so in the Computerized Accounting System environment. The auditor has only to see
whether there is effective international control on programme and, if so, checking of
certain significant or unusual transactions will be ensure accuracy in accounting.

In Built Control Procedure

With built-in automatic procedures, the EDP systems will themselves indicate
certain unusual or significant transactions such as, overdue payments, falling of
inventory levels below the prescribed levels, etc. prescription of password control in
computer will secure the data against access by unauthorized persons. In manual system,
there is always possibility of unauthorized access to accounts.
Automatic Updating
Computers facilitate automatic updating of all relevant computer files by a single
transaction. For example, purchase of raw material from a single supplier will update the
accounts of the supplier, purchases and inventory. In manual system, different
individuals will need to update the relevant files under their charge. Likewise, with
proper programming, certain tasks can be performed without human intervention. For
example generation of monthly accounts in case of customers will remove the need for
manual preparation of accounts in individual cases.

Computerized Assisted Audit Techniques/Tools

Computerized-assisted audit techniques or tools are nothing but

computer programmes and data. They may consist of test packs or test data, and
computerized audit programmes. The auditor uses them as part of the audit procedures
to process data of audit significance contained in an entity’s information systems.
They enable the auditor to use the computer as an audit tool for enhancing the
effectiveness and efficiency of audit procedures. Before using these programmes for
audit purpose auditor should substantiate their appropriateness and validity. Some
commonly used computer-assisted audit techniques/tools are given below.

Test Packs/Test Data

Test packs or test data represent a set of test data prepared by the auditor himself,
or by using any such data prepared by the internal auditor of the client. They comprise
transactions of all kind, prepared specially to test a programme or a set of programme
of the client. To evaluate the effectiveness of the client’s programmes, the auditor may
run his test data on the client’s computer using the programme of the client himself.
Use of test packs serves as an assurance about the correct functioning of
tested programme. However, its limitation is that preparation of the test data requires
care and expertise on the part of the auditor. For example, it will involve selection of the
type of master files or record, e.g. processing of a test transaction showing receipt of
payment from a debtor will reflect in the master file that contains records of sundry
debtors. Moreover the test data should cover all types
and variations to ascertain that the client’s programme includes all necessary controls.
For control purposes, the auditor should maintain proper working papers regarding the
use of test packs. Working papers should show the programme put to test and the
results-both expected and actual. He should also ensure that the programme unaffected
by the tests used by him.

Computerized Audit Programmers

Computers are used in auditing to provide auditing information required by the auditor
for making judgement and drawing conclusions. The use of computers in planning,
conducting and concluding audit will be of great help to the auditor. Use of computer in
audit saves time. It reduces monotony of work and enhances reliability and lowers audit
cost in appropriate cases. However, to use computers in auditing requires expert
knowledge of the system. It is also necessary to note that the computerized auditing
assistance is only to provide help to the auditor and not to substitute his professional
judgement.

Areas of Use of Computerized Accounting System in Auditing

The following are certain areas where the use of computerized accounting system
in auditing may be relevant:-
 Preparing detailed audit programming
 Preparing audit planning, scheduling and assignment of available manpower to
different assignments in hand
 Retrieving requires key information from the files for making comparison with the
set of standard information
  Doing arithmetical computations and checking the arithmetical computations
 Doing analytical review of the data by way of comparison, ratio analysis, trend
analysis, test of reasonableness and so on
 Checking of validity, consistency and reasonableness of entries
 Reviewing the internal control of the system
 Selecting representatives for vouching, verification-debtors accounts may
be planned to be listed if they comply with certain predetermined criteria
 Flow-charting
 Preparation of audit reports, documenting working papers and writing other
communication etc.
The use of these techniques tools is of great help to the auditor. However, the
adoption of such tools/techniques should be appropriate to handle the audit. The
auditor should weigh the audit demands before he decides on the contents of computer
assisted audit tools he would make use of, its use requires computer knowledge and
experience. The auditor should be familiar with the system in vogue in the
Appropriateness and relevance must be established with the client’s system and the
auditor’s test pack. He should also ascertain whether his test pack can be accommodated
in the facility offered by his client and whether required co-operation would be forth
coming without any inconvenience to the client in regard to offering of expert personnel
for assistance and making available the system for checking.
1. Review of Internal Control in Computerized Accounting
System
The auditor has to decide whether he can place reliance on the internal control. If
internal control is adequate, he can restrict nature, timing and extent of his checking
accordingly. For this purpose he has to review the internal control system of an
organization. The need for such review is explained below:-
2. To Check Reliability
The auditor has to review the system of internal control to check reliability of the
system and data generated in accounting system. He has to ensure that the
internal control system is reliable enough to ensure that transactions are executed in
accordance with management’s general or specific authorization.
3. To Check Operations
The auditor seeks to find out whether there exists good internal control system
and whether such a system has operated with continuity throughout the period covered
under audit. He evaluates the actual operation of the system against certain criteria that
must exist.
 4. To Find Adequacy of System
The internal control system is reviewed to see whether the design of the system
is adequate or not. Here, the auditor is concerned whether the system actually works
out without break. He tests the completeness, accuracy and validity of data generated
in the computerized accounting system of the entity by adopting substantive procedure.
5. To Ensure Prompt Record
There is need to review internal control system to know that it ensures that all
transactions are promptly recorded in the correct amount in the appropriate accounts
and in the computerized accounting system period in which they are execute.
6. To Ensure Safety of Assets
It is reviewed to ensure that assets are safeguarded from unauthorized access use or
disposition. The auditor has to check all this to find out the reliability of the system. If
it is not so, he is left with no alternative but to resort to detailed checking. In case the
internal control system is found to be strong, only a limited number of audit tests will be
necessary to confirm the initial evaluation and then the auditor can safely reply on it for
the purpose of expressing his opinion on the authenticity of the financial statements of
the enterprise.
Computerized Accounting System Audit Environment
The features of computers accounting system audit environment explained
below:-
1.) Computerized Accounting System Infrastructure
Computerized Accounting System infrastructure includes hardware like CPU,
Monitor, Printer and Keyboard. It also includes operating systems. These may be
Windows, Microsoft (MS) Office, Disc Operating System (DOS), LINUX etc. they oversee
the communication of data between the computer processor and its magnetic discs, as
well as the management of files and programmes on the discs. Application software is a
set of all computer programmes such as Tally, which is a specially developed Accounting
Software, including operating system, compliers, packages and user programmes which
enables a particular computer centre to operate.

2.) Lack of Documents and Transaction Trials

In annual accounting, there is a transaction trail. First, a document originates a
transaction. Then, there is entry of the transaction in the original books of account.
Thereafter, there is posting of the transaction in the principle books. Lastly, the net
effected of transaction reflects in financial statements. In computer accounting system,
on the other hand, there are often no transaction creating documents and no visible
transaction trail. For example, if there is direct feeding of data into the computer, they
may not be any physical input documents e.g. voucher, invoice, receipt, etc. and no
transaction trail. Therefore, to assess how Computerized Accounting System may
influence the audit examination process, he should consider the availability of data:-
a.) Entered in computer
b.) Retained in data files
C.) Generated for outputs
The data may be available only in machine-readable form and accessible
only for a brief period. In such a case, the auditor needs to request the client to
retain particular data for examination. This is because invisibility of information is
likely to increase the possibility of hidden errors as compared to manual system
where such errors are visible
3.) Uniform Processing
Under computer processing, there is uniform processing of similar transactions with
same processing instructions or programme. This decreases the risks of human errors
like calculation mistakes but programming error may result in incorrect processing of all
transactions

4.) Concentration of Processing of Information

In Computerized Accounting System environment, only a small number of
persons process the entire information. As against this, in the manual system, there is
division of the work among several persons. As a result, customary controls based on
segregation of diverse functions may be absent or ineffective. Further, persons operating
the Computerized Accounting System achieve expertise as regards the source of data,
manner of processing and generation and distribution of output.
5.) Automatic Execution of Transactions
Under Computerized Accounting System, there is automatic execution of certain
transactions. As a result, there may not be generation may any documents for such
transaction.
6.) Analytical Tools
Computerized Accounting System generates a variety of analytical tools. These may
be useful in reviewing and supervising the operations of the client. These will also go to
improve the internal control structur
7.) Effective Supervision
Computerized Accounting System enables management to enforce effective super
vision over operations. Analytical tools of Computerized Accounting System only go to
make this easier. The auditor can apply computerized auditing tools to ensure audit
efficiency. EDP system contain built-in software and hardware controls that are more
effective than manual controls.

Generation of Computerized Accounting System

 The history of the computer development can be understood in terms of
5 generations of computerized accounting system. These generations are marked by
various technological development that have transformed the way, in which
computerized accounting system operate. Over the years, computerized accounting
system have become smaller, cheaper, more powerful, efficient and reliable.

 First Generation Computerized Accounting System (1940-56)

The first generation computerized accounting system used vacuum tubes, which
were fragile glass device that had the ability to control and amplify the electronic signals.
It required lot of electric power and generated huge amount of heat. The input
was produced on print-outs. Programming was performed in machine language and
were able to solve only one problem at a time.

 Second Generation Computerized Accounting System (1956-

63)
In the second generation of computerized accounting system vacuum tubes were
replaced by transistors, which were smaller and more reliable than the vacuum tubes or
circuits with transistors were smaller in size, generated little heat, more reliable, less
expensive. These computerized accounting system support high level language like Tally
ERP. The main drawback of these computerized accounting system was that they
required frequent maintenance and individual components had to be assembled
manually.

 Third Generation Computerized Accounting System (1964-71)

The third generation computerized accounting system used integrated circuits.
Keyboard and monitors replaced punched cards and print-outs. These computerized
accounting system allowed the users to perform many application at one time. They
were smaller, faster and cheaper than the previous generation of computerized
accounting system. Integrated circuit technology made the use of small computerized
accounting system.

 Fourth Generation Computerized Accounting System (1971-

Present)
The fourth generation computerized accounting system saw technology
advancements in the manufacture of integrated circuits. In this, very large
scale integration with circuit densities of millions of transistors. Per chip was introduced
computerized accounting system of this generation were smaller, more powerful and
have the ability to for networks. These feature led to the development of the internet
and the World Wide Web.
  Fifth Generation Computerized Accounting System (Present
and Beyond)
The fifth generation computerized accounting system are based on artificial
intelligence and possess voice recognition capabilities. These computers are parallel
processing of semi-conducts for advanced computerized accounting system. Thus, the
design approach of the central processing unit of these computerized accounting system
are conceptually different from that of the earlier generations.

Elements under Data Processing under Computerized Accounting

System
Computerized accounting system is the execution of a systematic sequence of
operations performed upon data to transform it into information Following are the
elements of data processing under computerized accounting system
1.) Data entry
It is entering the data in a computer program. Here data is captured or collected by
recording, coding and editing activities
2.) Data Coding
The data is then converted into a form, which can be fed directly into a computerized
accounting system. In other words, data coding is inputting the data into the corrupt in
a format that it can understand

3.) Data Clearing

Third element in data processing under computerized accounting system is data
cleaning. Here, corrected data is identified and corrected
4.) Information Display
Generation of information products like reports and other documents forms the
element of data processing under computerized accounting system

Tally Solutions
Tally Solution Pvt. Ltd. Is an Indian multinational company that provides enterprise
resource planning software. It is headquartered in Bangalore, Karnataka India.
The company reports that its software is used by more than 1 Million customers.

Industry Private

Industry ERP Software

Founded 1986
 Founder Shyam Sunder Goenka
Bharat goenka
Headquarters Bangalore, Karnataka India
Products Tally ERP.9
Tally Server9
Tally Developer 9
Shoper 9
Website www.tallysolutions.com

History
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 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 the accounting software was launched as an MS-DOS application. It
had only basic accounting functions, and was named Peutronics Financial Accountant
 In 1988, the product was renamed as Tally
 In 1997, the first windows based version Tally 5.4 released
 In 1999, the company formally changed its name to Tally Solutions
 In 2001, Tally 6.3 launched (Educational/ Licence version)
 In 2005, Tally 7.2 was launched with features designed to meet Indian value added
taxation (VAT) requirement
 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 5.0 with
taxation and compliance features
 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 good and service tax (GST) server and taxpayer.
 In 2017, the company launched its update GST compliance software.
Tally main product is its enterprise resource planning software called Tally ERP.9 with
single and multi-user liecences . For large organizations with branches, Tally. Server 9 is
offered. The software handles accounting, inventory management, tax management,
payroll etc.
Simple Accounting Management
1.) GST Invoicing
Earlier define GST rates for your items, define HSN Code and generate GST
compliant bills. Tally ERP.9 gives complete support for all types of GST invoices and
transactions, for all types of businesses. Tally ERP.9 helps in generating e-way bills
without you having to re-enter details in the e-way bill portal.
2.) Purchase and Sales Management
Be it purchase or sales orders, debit or credit notes, keep your books up-to-date with
Tally ERP.9which tracks and manages the purchase and sales cycles completely.

3.) Multi-Currency Support

Have business operations, or customers and suppliers outside India? Tally ERP.9 lets
you define the rate of currency, and standard selling and buying rates before calculating
Forex. You can adjust gains or losses in Forex that occur due to daily variations in
currency rates by simply recording a journal entry.

How Tally handles it?

1) Using Tally ERP.9 the distributor can categories her sales into retail and distribution
sales. By the click of a button, she/he can filter the sales transactions done for retail
customers are know the sales and profit achieved through retail sales.
2) Use the handle configurations for voucher numbering and specify the year either as
a suffix or pre-fix to your voucher number format. Tally ERP.9 accordingly positions
the voucher number. Additionally, specify the width of the numeric part and pre-fill
the invoice with zeros if your format requires.
3) Although the sales bill is recorded, once the purchases of these items is recorded,
the inventory books are updated, and negative stock is adjusted instantly.
4) The firm raises a delivery note every time a batch of water bottles are delivery.
Towards the end of the month, one consolidated sales invoice is recorded, tracking
all the delivery note vouchers and the payment is made.
5) Using Tally ERP.9 you can pre-close an order by the click of a button. You can record
the reason for pre-closure for later reference. The details of all such pre-closed
orders are available in a report.
6) When recording transactions, velocity electronics can record an account invoice
when a service bill for maintenance is recorded. The business can choose an item
to record the sales. The invoice will present the item name, quantity, rate and
 amount. When entering data, moving from one invoice to another is simple and can
be done by the click of a toggle button.
7) Additionally, velocity electronics also has the flexibility to record sales and service,
both in a single invoice. Various invoice formats can also be maintained.
8) In the sales order, the delivery is split for two dates. One with the immediate
delivery of900 chairs and the remaining 100 chairs are marked as due after one
week. The stock is dispatched with a delivery note. The sales order outstanding
report shows the balance quantity the needs to be delivered. If the order hasn’t
been completed within a week, the balance quantity will reflect as orders overdue.
When the delivery note or sales for the balance 100 chairs is recorded, the reports
get updated instantly. However, due to some reasons, if the customer cancels the
order, pre-closing is just a button away. The store can record the partial quantity
that wasn’t delivered with the reason for pre-closure.
9) The spare parts trader creates price level in Tally ERP.9 for each type of customer.
He then creates custom price list for the customer types. He selects the items and
defines the quantity range for which a price can be applicable. He also defines the
additional discount percentage, and date of applicability for the prices.
10) During invoice, the trader selects the required price level, and the stock items.
Automatically, the price of the stock item is displayed. Depending on the invoice
date and quantity sold, the price varies. This allows having floating rates for stock
items.
11) However, the trader has the flexibility to overwrite the price defined for an item.
12) While they decide over the outstanding bill, the amount received has to be
accounted for, and there is no particular bill towards which this amount can be
adjusted. Selecting the type of reference as on account will account for this amount
without tagging it to a specific bill. However, after sorting the difference the trader
can alter the type of reference to tag it against the appropriate bill.
13) To meet the requirement of using multiple addresses for the same party, Tally ERP.
9give the flexibility to create multiple address types for a party in the ledger master.
For example, Head Office and Branch Office can be created as address types. The
contract person’s name can be different for each person, and other details like fax
number, and e-mail ID specific to a particular address can be maintained. Statutory
details like GSTIN, Excise Registration No. and more can be specified.
14) When recording a sales invoice, just by selecting the respective consignee address,
and supplier address, all relevant details are displayed and can be printed in invoices
too.
 Tally ERP.9 is a business management program that allows business managers to
handle all of their business transactions from a centralized application and from any
location.
The program allows users to handle accounting, finance, point of sales, payroll
and branch management.
The Tally ERP.9 software is designed for the sole purpose of helping business
succeed in an integrated and controlled environment. It is a business system that does
not discriminate based on the location of the users and can be used with a variety of
platforms. It comes with tutorials and demonstrations that allow to better understand
the way the application works.
The application provides ease of access in all aspects, including the way that it is
installed onto a platform. There are various methods for installation, but it can be easily
completed by even new users.
The installation has walk through demonstrations that allows users to control
every aspects of the installation. It is also equipped with features like the ability to install
only what is needed in the particular business setting.
Users can choose which features they want to use and install them. All of the features
that are avail able with the system do not have used by all business managers.

What is the difference between Accounting and Bookkeeping

1. Bookkeeping involves recording basic accounting transactions such as regarding
invoices from suppliers, paying suppliers, processing payrolls and recording cash
received from customers.
2. Bookkeeping is a subset of accounting. Accounting is usually more involved and
includes activities such as creating financial statements, creating budgets and
compiling tax returns.
3. A Bookkeeper may have a lot of experience but may lack formal accounting
training.
4. Accountants typically work in a specific function, while bookkeeping is more
broad- based.
5. Accountants for mid-sized to large business set up procedures that are then
followed by bookkeepers.
6. Bookkeepers do mechanical procedures, but accountants design them.
7. A small business might only need a Bookkeeper for its accounting, but larger
businesses typically have at least one accountant.

Manual Accounting System

 1. A manual accounting system is a way of keeping business financial records with
a written ledger of transaction. Computers and software are not used as part of a
manual system
2. While modern business use computerized accounting system/ packages, some firms
still prefer a manual system.
3. A manual system costs less because there is no expenses for computer equipments,
software and employee training.
4. A manual system can be more secure because it does not use the internet to
transfer to accountants or the IRS
5. A disadvantage of a manual accounting system is that it is prone to mistakes, with
no software in use to confirm calculations.
6. Generating financial reports takes more time and efforts, and paper records with
no backup are more prone to destruction by fire or floods.
7. Preparing tax returns takes longer when using a manual system.
8. In the event of an audit, a manual system requires more man hours spent on
gathering requested documentation.
9. Manual system work best for smaller business and don’t work well in companies
with large numbers of financial transactions.
10.Using paper requires that the bookkeeper be more knowledgeable in basic
accounting principles than in necessary for an employee using accounting software.
11.This makes it more challenging to find suitable employees to keep books, as fewer
companies use manual accounting and more use computerized accounting system.

A few key features of Tally ERP.9 are listed below

1. Codeless Accounting System
Normally for other accounting softwares, a certain code is used for identifying any
particular ledger, for example Ledger Code B2081 indicates “Printing and Stationary”.
2. Unlimited Accounting Period
It means you can maintain the records for more than one financial accounting period,
for example, you can maintain the record for the financial year (F.Y.) 2017-18 and 2018-
19 for the same company.
3. Simultaneous Operation of Multiple Companies
It means you can update the data record for more than one company simultaneously,
for example at the same you can update the data for all of your companies in the same
group.
4. Accounting for the Complete Group of Companies
You can prepare a consolidated balance sheet for all the members of your group
companies.
 5. Top Level Security for each Company
You can create different levels of users and restrict their a activities by assigning them
rights, for example you can create a user for data entry, who cannot view the report.
 LITERATURE REVIEW

Comparison between Manual And Computerized Accounting

Accounting, by definition, is the process of identifying, recording, classifying and
summarizing financial transactions to produce the financial reports for their ultimate
analysis. Let us understand these activities in the context of manual and computerized
accounting system.
1) Identifying:-The identifying of transactions, based on application of
accounting principles, common to both manual and computerized accounting
system.
2) Recording:-The recording of financial transactions, in manual accounting system is
through books of original entries while the data content of such transaction is stored
in a well-designed accounting database in computerized accounting system.
3) Classification:-In a manual accounting system, transaction recorded in the books of
original entry are further classified by posting into ledger accounts. This results
intrans action data duplicity. In computerized accounting, no such data duplication
is made to cause classification of transactions. In order to produce ledger accounts,
the stored transaction data is processed to appear as classified so that the same is
presented in the form of a report. Different forms of the same transaction data are
made available for being presented in various reports.
4) Summarizing:-The transaction are summarized to produce trial balance in manual
accounting system by ascertaining the balance of various accounts. As a
result, preparation of ledger accounts becomes a pre-requisite for preparing the trail
balance. However, in computerized accounting, the originally stored transactions
data are processed to churn out the list of balances of various accounts to be finally
shown in the trial balance report. The generation of ledger accounts is not necessary
condition for producing trial balance in a computerized accounting system.
5) Adjusting Entries:-In a manual accounting system, these entries are made to adhere
to the principle of cost matching revenue. These entries are recorded to match the
expenses of the accounting period with the revenues generated by them. Some
other adjusting entries may be made as part of errors and rectification. However, in
computerized accounting, journal vouchers are prepared and stored to follow the
principle of cost matching revenue, but there is nothing like passing adjusting entries
for errors and rectification, except for rectifying an error of principle by
having recorded a wrong voucher such as using payment voucher for a receipt
transaction.
6) Financial Statements:-In a manual system of accounting, the preparation of financial
statement pre-supposes the availability of trial balance. However, in computerized
 accounting, there is no such requirement. The generation of financial statement is
independent of producing the trial balance because such statement can be prepared
by direct processing of originally stored transaction data.
7) Closing The Books:-After the preparation of financial reports, the accountants
make preparation for the next accounting period. This is achieved by posting of
closing and reversing journal entries. In computerized accounting, there is year-end
processing to create and store opening balances of accounts in data base.
It may be observed that conceptually, the accounting process is identical regardless
of the technology used.

Accounting Packages
Every computerized accounting system is implemented to perform the accounting
activity (recording and storing of accounting data) and generate reports as per the
requirements of the user. From the perspective. The accounting packages are classified
into the following categories:-
a.) Ready To Use
b.) Customised
c.) Tailored
d.)Tally ERP

Each of these categories offers distinctive, the choice of the accounting software
would depend upon the suitability to the organization especially in terms of accounting
needs.

a.) Ready To Use

Ready to use accounting software is suited to organization running
small/conventional business where the frequency or volume of accounting transaction
is very low. This is because the cost of installation is generally low and number of users
is limited. Ready to use software is relatively easier to learn and people (accountant)
adaptability is very high.This also implies that level of secrecy is relatively low and the
software is prone to data frauds. The training needs are simple and sometimes the
vendor (supplier of software) offers the training on the software free. However, these
software offer little scope of linking to their information systems.

c.) Customized
 Accounting software may be customized to meet the special requirement
of their user. Standardized accounting software available in the market may not
suit or fulfil the user requirements. For example, standardized accounting
software may contain the sales voucher and inventory status to be updated
immediately upon entry of sale voucher and report be printed, the software
needs to be customized.
Customized software is suited for large and medium business and can be linked to
theother information systems. The cost of installation and maintenance is relatively
high because the high cost is to be paid to the vendor for customization. The
customization includes modification and addition to the software contents,
provision for the specifiednumber of users and their authentication etc. secrecy of
data and software users is important, the training costs are therefore high.

c.) Tailored
The accounting software is generally tailored in large business organization
with multi users and geographically scattered locations. These software requires
specialized trainingto the users. The tailored software is designed to meet the
specific requirements of the users and form an important part of the organizational
MIS. The secrecy and authenticitychecks are robust in such software and they often
high flexibility in terms of number of users.

To summarise, the following table represents the comparison between

the various categories of accounting software:-
 Basis Ready To use Customized Tailored
Nature of Small, Large, medium Large, typical
business conventional business business
Business
Cost of Low Relatively high High
installation
and maintenance
Expected level Low Relatively high Relatively high
ofsecrecy
(software
and data)
Number of users Limited As per Unlimited
and specifications
their interface yes
Linking to other Restricted Yes Yes
information
system
Adaptability High Relatively high Specific
Training Low Medium High
requirements

d.) Tally ERP.9

Tally ERP 9 has been developed by Tally ERP 9 solution Pvt. Ltd. a Bangalore-
based company in India. It’s a very user-friendly and popular accounting software
that runs onMS Windows and also computer for Indian VAT, TDS and Service Tax. It
can even maintain your account and inventory simultaneously.
 Import and Export Facility:-You can import export any particulardata from
one company to another company.
 Audit Facility:-Using this facility you can check the recorded voucher andmake
modifications as per requirement
 Budgeting:-Allows you to analyze the variance (difference between actual and
 standard) for expenses, income etc.
 Scenario Management:-Can be used for projected profit and loss A/C and
balance sheet
 Bank Reconciliation Statement
 Price List, Ageing Analysis For Stock Item:-Rate of product can bedefined
with its quantity
 Cost Centre And Cost Category-Wise Account Analysis:-These featuresare
very useful for unit-wise analysis, for example you may want to analyze
employee-wise cost, branch-wise cost etc.
 Usefulness in Manufacturing Business:-Useful for calculation of goodssold
 Ratio Analysis, Cash Flow, Funds Flow
 E-capabilities
 Foreign Currency:-Useful for calculation of foreign gain and loss using
foreign currency
 Defining the Bill/Voucher Entry Setup
 Columnar Reporting Related to Stock and Accounts
 Adherence of Purchase and Sales Procedure such as Order, Challan, Bill
 Credit Control:-Credit Control is possible for a customer
 Tracking through Receipt/Delivery Note
 Profitability Analysis of Stock
 Accounts

For:- 1.) Indian VAT

2.) TDS
3.) E-TDS
4.) Service Tax
Due to these unique features and multifarious facilities, Tally ERp.9 is
widely used by different kinds of Business Companies and other
Organization for maintaining the accounts of
 1. Company 2. Individual
3. Charitable Trust 4. Trader
5. Manufacturer 6. Enterprise
7. Partnership firm 8. Shop
9. Transport 10. Services Industries
11. Nursing Home 12. Petrol Pump
13. Pharmaceuticals 14. Departmental Stores
15. Whole-Seller 16. Insurance Agents
17. Restaurant 18. School
19. Institutions 20. Tutorials
21. Advocate 22. Builders
23. Chartered Accountants 24. Chit Funds
25. Doctors

Computerized Accounting over Manual Book-Keeping in

Tally ERP 9
Manual Book-Keeping has to bother for all the following steps:-
 Creating ledger and carrying forward their closing balances
 Recording cash transactions in a Cash-Book and Bank Transactions in a Bank Book
 Recording other Noon-Cash transaction in a Journal Book
 After recording you have to calculate the balance of the Ledgers
 Preparing Trial Balance to prepare Final Accounts
 Deriving Nominal Account from the Trial Balance in the Profit and Loss A/c
 Posting Real and Personal Accounts in the Balance Sheet

But when you are using Tally ERP.9 you concentrate only on recording the
transaction. Tally ERP.9 automatically generates all kinds of reports for you.
 Basic Accounting Basic
Inventory
Complete Book-Keeping Stock Categories
Books, Registers and Statement of Multiple Godowns
Accounts
General Ledger Stock Transfer to Godown and Branches
Accounts Receivable and Accounts Batch-Wise, Lot-Wise, including Expiry
Payable Date
Flexible Voucher Numbering Alternate Costs incurred on Purchase
Drill Down Display Movement/Profitability Analysis Party-
Wise,
Item-Wise, Stock Group-Wise
Data Base Reporting Sales and Purchase Order Processing
Columnar Reports Excise/Vat analysis of Invoices
Bank Reconciliation Stock Ageing Analysis
Multiple Companies Additional Cost of Manufacturing with
Notional Value and Percentage
Multiple Financial Years Batch related Stock Report
Memo Vouchers Bill of Material with Auto-adjustment of
Stocks
Post-Dated Vouchers
User-Defined Voucher Types
Cash Flow Statement
Flexible Classification of Accounts Heads

Tally Versions
Year Version Conten
ts
1999-1989 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

1st Sept. 2006 8.1 Account with Inventory,

VAT,
TDS, Multi Lingual,
CompositVAT Excise
1st Dec. 2006-2009 9 Account with Inventory,
VAT, TDS, Multi Lingual,
Composit VAT, Payroll,
Job Casting,
Excise, Co-dealer
th
12 March 2009 ERP 9 Account with Inventory,
VAT, TDS, Multi Lingual,
CompositVAT, Payroll, Job
Casting, Remote Access,
Excise for
Manufacturing
2nd August 2018 ERP 9 6 Series GSTIN Validation

Tally ERP.9 Release

6 GST Masters
In the ledger, an error invalid GSTIN/UIN appeared on entering the GSTIN/UIN
for few regular tax payers, and the transaction appeared as exception in GSTR-1, which
could not be resolved. This issue is resolved, and you can also include the vouchers
captured with GSTIN/UIN exception in the returns.

Computerized Accounting System in an Organization

Any computer can perform four basic operation of input, processing, output and
storage
1.) Input Unit
Data and instructions are entered into the computer through the input unit to get
processed into information. Input device like the keyboard, the mouse or the
microphone are used the enter the data. Keyboard is used to input characters,
numbers and certain symbols. Mouse is a device that has on screen pointer that
enables the users to select items and choose option and microphone can be used, if
the user wishes to enter instruction by making a voice entry.
2.) Central Processing Unit
The central processing unit is the main processing component of a computer system.
The central processing unit stores the data and instructions in the primary memory
of the computer, called the Random Access Memory and process them from this
location. The Arithmetic Logical Unit and the control unit are the two sub-
components of the central processing unit. The arithmetic logical unit carriers out the
arithmetic and logical operations while the central unit retrieves the information from
the storage unit and interprets this information
3.) Output Unit
The output unit passes on the final results of computation to the users through the
output devices like monitor, printers etc. a monitor displays the final results of the
processed data on the screen, while a printer can be used for obtaining the output in
a printed format.
4.) Storage Unit
The data and instructions that enter the computer system have to be stored internally
before the actual processing takes place. The storage unit of a computer system is
designed to store the data generated at various stages of processing. Storage media
like hard disks, floppy disks, etc. aid in storing the data in various forms
 PROFILE OF THE COMPANY
MASTER CARE AIR CON SERVICES

Master Care Air Con Services was established in the year 2000 and has its
main branch in Pune. It is a Air Conditioner Business which was founded by Mr. Mazhar
Khan in 2000. Master Care Air Con Services has an office in Bangalore also. It deals with
all types of Air Conditioners for all corporate companies, banks, institutions, and
individuals. It also deals with a dealership of Panasonic And Voltas. Master Care Air Con
Services Uses Computerized Accounting System such as Tally ERP. They Use Tally ERP for
their purchase and sale and for accounting purpose.
Master Care Air Con Services uses the latest version under Tally. ERP 9. Option to
avail input credit under reverse charge in current or future period, the business needs to
avail charge mechanism, you will find it delightfully useful and flexible to take credit on
reserve charges in current or future periods.
Earlier for few taxpayer types, GSTIN validation was failing in tally. ERP.9 Now, with
this new Release, GSTIN will be validation for all taxpayer types.
Master Care Air Con Services uses Tally ERP. 9 was started using from January 2019
for the help of GST filing in various department of the day to day work in different
department wise to help in the use of sales and purchase of profit and loss account and
balance sheet of the account of Master Care Air Con Services.
Master Care Air Con Services focuses on Air conditioners and manufacture of air
conditioner, safety systems and of stability control system and electronic system such as
Tally ERP Master Care Air Con Services supplies air conditioners for Panasonic, Voltas and
Daikin from the distributor . the company consists of 3 brands, service centre and
different electronic items in2 city including Pune and Bangalore.
Their average daily selling of air conditioners are 15 per piece of
air conditioners of different brands such as:-
1. 0.8 Ton Split, Window Air Conditioners
2. 1 Ton Split, Window Air Conditioners
3. 1.5 Ton Split, Window, Cassette Air Conditioners
4. 2 Ton Split, Window, Cassette, Tower Air Conditioners
5. Above 3 Ton VRV, Cassette. Ductable, Tower Air Conditioners

The company has a long list of products that includes:-

PCB Card System
Fan Motors of air conditioners
Fan Blade of air conditioners
Capacitor of air conditioners
Body of air conditioners
Filter of air conditioners
History
Founded in Pune, Maharashtra, in 2000, Master Care Air Con Services can look back on
history of success. We help people around the city turn their ideas of mobility
into reality. Our technologies, systems, and service solutions make mobility and
transport more sustainable, safer, more reliable, more comfortable, more customized
and more affordable. As an air conditioner supplier and dealer partner, we offer
solutions that help keep people safer and healthier, that help protect the environment,
and give individuals more opportunities to shape their future. Master Care Air Con
Services ground the globe are currently developing new answers for future mobility.

In 2000
Master Care Air Con Services is founded on October 8 as a proprietor company. Dealing
at the main office in Pune Bhawani Peth includes:-
1. Voltas Air Conditioners
2. Panasonic Air Conditioners
3. Daikin Air Conditioners

In 2001
Master Care Air Con Services opened a new office at Bangalore

In 2002
Master Care Air Con Services started giving services in chakan industrial areas company
such as AMPCO Company Pvt Ltd.
In 2003
Master Care Air Con Services started giving services in wagholi industrial
areas company such as Minda Company Pvt Ltd.
In 2004
Master Care Air Con Services took the agency of Daikin Air Conditioners
In 2005
Master Care Air Con Services started they business service centre in B.T.Kawade road
and in New Nana Peth in Pune
In 2006
Master Care Air Con Services started using Computerized Accounting System such as
TallyERP.9
In 2007
Master Care Air Con Services totally stop manual accounting and started doing totally
computerized accounting
In 2008
Master Care Air Con Services started doing computerized accounting in Bangalore
branch.
In 2009
Master Care Air Con Services started spreading there business in Bangalore and started
a service centre in Bangalore
In 2010
Master Care Air Con Services totally stop manual accounting and started doing
computerized accounting system in tally.
Innovation of the Company
In addition to air conditioner technologies such as Voltas, Daikin, Panasonic dealership
several service centre are put into exestiance for doing repairing work such as repairing
of PCB Card, and Electronic Circuit Board are as much a part of the service sector as
safety of the air conditioners and convience for air conditioners
Automated Updating
One of the major trends in computerizes accounting system is automated updating. In
the future, the connectivity of intelligent technologies will ensure that, on an increasing
number of TallyERP.9 the task will be taken on by the accountant. In keeping the stored
data in “Tally ERP.9”, we are passionately working on making the vision a reality for all
computerized accounting system.
Electric Circuit Board
How we can design electric circuit board to be even more efficient through the
increasing connectivity of electrification and existing power transmission technology as
well as the software and an intelligent mix of circuit board.
Safety
Accidentals should be a thing of the past. Given the steadily increasing volume of
service, the issue of safety in the Master Care Air Con Services business is becoming a
key challenge for society, industry, and corporate clients. Discover how Master Care Air
Con Services is increasing service safety with its business.
Digitalization
Entire business are changing with and through digitization, while Tally ERP.9 are
demanding even more from their accountant. In addition to computerized accounting
system in Tally ERP.9also plays a significant role.
Product of the Company

Air Conditioners
Air Conditioner are the link between a dealer and a consumer. In critical situations, it is
the technology level of the air conditioners that determines whether a air conditioner
is able to start in time or stay in the correct order during cornering maneuvers. The
Service centre is known for maximizing safety through making the PCB Card and Electric
Circuit Board as well as reducing manpower through machine work.

The company offer the right air conditioners for every consumer or clients or a
company.

The Air conditioner Business is divided into two business units:-

1. One firm has GST and Computerized Accounting System
2. One firm does not have GST its annually turnover is below the GST amount
For the commercial sector, the company offers digital solutions for the comprehensive
and efficient time management of our fleet customers as well as the complete life-
cycle, including computerized accounting system such as Tally ERP.9Master Care Air
Con Services division in Pune is one of the Local leading business specialists. As a
technology partner, our name is synonymous with expertise in development
and provides not only products, system and services but also Tally solutions and is a
formative influence on the business. We see digitalization and current trends as an
opportunity to work our customers to add sustainable value- for both side and for
goods materials for components made of copper and wiring and also in combination
with air conditioners. By integrating electronic components, we are also generating
solutions for the future.
With the rising taxes and growing competition, managing a business is not a child’s
play. While the operating cost of the business are ever increasing, rising competition
makes it difficult to demand a premium for the customers to run the business
profitably. In such a scenario, the solutions may lie inwards in the business operations.
By optimizing the operations and in turn optimizing the costs, the business can hope
to reduce their costs to drive their profits. Master care air con services represent a
major cost in local business and the right decision are needed to keep the business
going. Air conditioners can be effect up to 40% of a cost directly and is the second
largest cost to business after fuel. Generally, due to the huge risk and risk involved,
customers are less interest to try new air conditioners.

I visited to Master Care Air Con Services at Bhawani Peth Branch Pune Maharashtra
 RESEARCH METHODOLOGY
“A computerized accounting system is the arrangement of accounting information
such as Tally ERP for collection and analysis of data in manner that aims to combine
relevance to the research purpose with economy in procedure”
This study involves both Primary and the Secondary data covering a period of 2018
and 2019 till date. The Primary data was collected by Questionary Form by asking some
question to the Accountant of Master Care Air Con Services. Questionaries Was As
Follows:-

1.) What is the name of the computerized accounting system?

Tally ERP.9
2.) Sir from how long you are working on computerized accounting system?
Since 2010
3.) You are working as?
I am working as an accountant of the company
4.) Sir I what does the company deals in?
The company deals in all types of air conditioner
5.) When was Tally ERP.9 came into existence in the company?
Since 2005The Secondary data was collected from the firm for profile and
accounting related information relating computerized accounting system and to
understand Tally ERP.

The sources of the primary data

1.)The company visit
2.)The question was asked by me to the accountant of the company (Pune)

The source of the secondary data

The research work is based on the secondary data also the secondary data was
collected by the following ways
1.) Books
2.) Journals
3.) Websites

1.) The books on Computerized Accounting System were as follows:-

 Computerized Accounting System-NCERT

 Computerized Accounting System-Textbook
  Computers And Accounting System-Bibliography
 Computerized Accounting System-A Practical Guide
 Computerized Accounting System-Tally ERP.9

2.) The journals of Computerized Accounting System

 The journal issued by the Tally ERP.9
 Journal on computerized Accounting System
3.) The website were used to collect the information on computerized
accounting system for the company information
 www.mastercareairconservices.com
 www.mastercare.in.com
 www.mastercareairservicecentre.in .
This are the source form the information is collected for the completion of this
project. As mention above the source of the collecting the information relates to both
primary as well assecondary sources.

Computer Application in Accounting

A computer is an electronic device that receives data or a set of instructions, processes
them and then gives the information. These data and instructions are called, input,
whereas information is termed as output. It is a set of electronic device that can
systematically and sequentially follow a set of instructions called a programme or
perform high-speed arithmetic and logical operations on data. A computer makes our
work easy. It is a machine having memory. It works with instructions. We can store words
and numbers in its memory. It works fast and does not get tired. A computer never
forgets and thousand of facts can be stored in its memory. It never makes careless
mistakes. Because of the rapid changes in finance and its related fields, accurate record
keeping is critical. Computerizing a business tasks of accounting procedures, increase
efficiency. With a computer and its appropriate software, one can request and receive
an in house balance sheet, an income statement, cash flow and statements of affairs and
other accounting reports within a short time hence, an increase in productivity. The role
computers are playing in the field of accounting, changing some of the things that were
manually done and facilitating accounting data processing.

Spread Sheets
Electronic spread sheets allow to do anything that would normally be dome with
a calculator, pencil and columnar scratch pad. A typical integrated double entry
accounting spread sheet system will contain some of the following components general
ledger, inventory levels, order entry, payroll, time and billing etc.
General Ledger
Electronic general ledgers are labour saving device for the preparation of financial
statement sand for establishing multiple income and cost entries. It takes charge of
secondary postings.
Inventory control
Electronic inventory control module has multiple functions, which includes tracking
inventory for both costing and tax purposes, helping managers in controlling purchasing
and minimizing the investment in inventory. It is integrated with the general ledger, so
it can automatically set a side the correct amount for processing further.
Accounts Receivable
Electronic accounts receivable can get the bills out the same day a service performed.
Electronic accounts receivable module can prepare invoices.
Accounts Payable
Paying bills requires lots of time and energy, especially when using the manual system.
Using software, one can pay a bill and book the expenses associated with the payment
at the same time. It saves time, as payments for bills can be made in batches and prints
of all the checks can be taken at once. No more handwritten checks or manually entered
expenses.
Once vendors are entered in the system, writing of their names and addresses over
and over gets removed the software saves this information you only invoice numbers
and amounts need to be entered and the rest pre-populated-a major benefit of
computerized system.

Reporting
Easy reporting is a important benefit of a computerized accounting programme. Errors
can be easily identified, corrected and one can re-run reports in minutes-something,
which is impossible to perform using the manual system. Report accuracy is very high as
all calculations are done by a computer increasing reliability of financial information.
Once accounting data is put into the system, it can be complied and manipulated through
report sand queries that are usually easy to use and modify. Accounting systems offer a
variety of reporting options, including the ability to export data to a spread sheet, where
you can manipulate the information.
Payroll
Payroll is often processed with computers and not by hand. Complex calculations,
such as benefits and taxes are performed by a computer, increasing correctness and
efficiency. Change scan be made easily and in timely manner. If an employee want to
increase his tax with holding, this information is entered in the system and the rest is
processed by a payroll system. To minimize errors, time sheets can be uploaded directly
into the system without human intervention, which saves any time of firm with many
hourly employees.
Computer Application in Finance
Computers have revolutionized the financial industry and the way finance works by auto
mating complex calculations and providing instant communication and news. The
sophisticated way, we do business and economics today, would have been impossible
only a few decades ago, due largely to the impact of computer technology on our ability
to make financial decisions.
Communication
Communicating remotely and instantly among people and computer networks is one of
the primary uses of computing power. This system allows producers of good to instantly
access price in formation in faraway places and make decisions about where and when
to sell. Financial traders, such as stock prices and trade volumes around the world and
make their own trades based von that information.
Automation
Computers can perform automatic calculations and even automatically retrieve
information needed to perform those calculations .E.g. quick books or peach tree
accounting information and transaction records from a bank and then perform
calculation to show a business owner their current cash, accounts payable, profit and
loss etc.
Excel templates automatically perform mathematical calculations and create graphs
and charts, allowing financial professionals to understand meaningful data at a glance.

Record-Keeping
Earlier, all financial records were handwritten on paper or even carved on tablets in
ancient times. Having financial records is essential for determining, who is in debt to
whom, how much is owned in taxes, how much money is on deposit at a bank and so
on. Computers can store millions of documents in a very small space, allowing us to
keep more in depth records about more transactions, without taking up nearly so much
physical space.
Spread Sheet Software
Spread sheet software influences the way large and medium sized firms, as well as
individuals, key in and organize financial data. Spread sheet applications are used to
run day-to-day financial tasks, such as compiling financial data, presenting the data in
an organized manner through the use of charts and graphs, drawing budgets and
calculations of complex transactions. This application comes with computer programs,
such as Microsoft Excel, that enables organization and individuals to plan finance
without wasting too much time.
Data Storage
Computerization makes data storage manageable and less bulky. Computers enable
organization to store large amounts of files in a small space, while avoiding consumption
of space that would otherwise be consumed by piles of files in cabinets. Keeping financial
records is critical for organization, as well as individual, as it allows tracking of payments
records, debts owned, purchases done and bank transactions made. Having detailed
financial records helps an organization to continually audit and analyse business
performance.
Financial Information
Computers have enhanced access to wide financial information through internet
access. Business operators or individuals can now access information on investment
prospects and conduct a detailed research on its profitability. There is also wide
financial information available on the internet, such as world prices, tax changes,
inflation rate and currency exchange rates making it easier for institutions and
individuals to make informed financial decisions. The internet provides a wide source of
information and access to specific financial reports of companies in trade. Some
reference book where refer.
 DATA COLLECTION AND DATA ANALYSIS
The data collection and data analysis, is done by the primary method and secondary
method
I collected the information of computerized accounting system which were service
centre and dealer of air conditioner in Pune From the primary information that I collected
by the questioner. Are as follows Name of the company for which the research work is
done It is Master Care Air Con Services It is a Pune based Company invested the capital
in India The accountant farooq who is appointed as accountant of the company having
the working experience since 5 years in the company The company is dealer in many of
the brands of air conditioners but in the service centre the services goes on The research
work is done on the computerized accounting system of Tally ERP 9 in the company To
process the data scientifically and to make it easily understandable statistical method of
tabulations used. Compilation of data was done with the aid of computers.MS-Word was
used for data processing and presentation of Computerized Accounting System In A
Business Unit Of Master Care Air Con Services. Business statistics is a tool which can be
used in solving problems that arise in almost all business field of empirical enquiry. It is
the science of good decision-making in the face of uncertainty and is used in many
disciplines like financial analysis, econometrics, auditing, production and operation
including service improvement and marketing research. Data used in business include
population census, opinion polls, consume data bases and demand data. It is a branch of
applied, statistics working mostly on data collected as a by product of doing business or
by government agencies. It provides knowledge and skill to interpret and use statistical
in variety of business application. Business statistics is very useful in economic planning
banking, transport, agricultural and insurance. Thus, business which includes whole of
complex of commerce and industry.

In every statistical investigation, the first thing is the collection of data. These data are
so huge and complex in their nature that they do not give a clear and correct picture of
the whole data. In order to have a clear and intelligible picture of the complex and bulky
data, certain devices are applied. These devices are known as statistical methods. These
statistical methods are the techniques used for collection, summarization, analysis,
comparison, classification and interpretation of the huge and complex numerical data.
Statistical tools such as tables, graphs and diagrams are required for the analysis of data.
After the data have been collected, it is essential to put them in the form of tables with
rows and columns. Tables should be prepared in such a way that they can be put to the
best advantage with minimum efforts. For analyzing the data collected, tools such as
tables, graphs and diagrams are used. These tools are exhaustively used in data records,
government reports etc. in such a way that an ordinary person will be understand and
draw a valid conclusion from the tools or information. Computerized Accounting systems
the oldest and perhaps the most widely used computerized information system in
business. It is responsible for maintaining the accounting system of the organization.
These system record and report financial transaction and other economic proceedings
taking place in an organization. The main purpose of an computerized accounting system
is to accumulate data pertaining to the financial transactions, process it into information
and report it to the external entities in the organization. The internal entities include the
managers, who need such information for planning and controlling the business
operations and for decision-making. The external entities include the creditors, investors
and government agencies that need such information to make various decisions like
investment decisions.
Accounting is the process of identifying, measuring and communicating economic
information to permit informed judgements and decisions by users of the computerized
accounting information system. Basically, computerized accounting system are rooted in
the concept of double entry book keeping.
 In computerized accounting system, source of data is mainly internal to the
enterprise and thus, database are well defined and integrated and controlled.
 Computerized accounting system deals with transactions, which are financial in
nature and can be expressed in terms of money.
 Computerized accounting system caters to the information needs of both
external and internal users. The external users are customers, vendors,
shareholders, investors, stock exchange, etc. the internal users are managers at
various levels of the organization.
 Computerized accounting system is simple and well structured information
system.
 Computerized accounting system mainly uses the historical data and also
includes the future data in the form of budgets and forecasts.

In the past computerized accounting system were designed primarily for

providing reports to government authorities and investors. Very little information
was generated for managerial decision making. Today, focus more on generation
of computerized accounting system for use in managerial decision-making
process.
Components of Computerized Accounting System

• Input • Process

Classification
Comprasion
Transaction Aggreation
and other
Calculation
data

Financial Users
Statement
Management
Report
Documents
• Output • Internal
and
External
Contr
Input
The input of accounting information system consist of the transaction data. It
also includes the status information regarding different entities such as
customers, vendors, employees and assets.
Process
The processing of accounting data is done in four different ways such
as classification, comparison, aggregation and calculation.
Output
 Output of the computerized accounting system consists:-
 Financial statement such as income statement, balance sheet and
statement of changes in financial position.
 Management reports such as debtors ageing report, financial ratios,
expenses analysis support, etc.
 Other output documents like customers invoice, materials purchase
order, pay cheques, etc.
 FINDING AND CONCLUSIONCONCLUSION
The growth and development of any country is measured in terms of the
computerized accounting of the country. Computerized accounting plays a vital
role in the accounting department of an firm or a company. From the study, it
is evident that the overall performance of the firm with regard to Tally ERP is
satisfactory.
Since the Master Care Air Con Services, is a firm they have to concentrate on
the computerized accounting system and check they financial statement and
balance sheet and profit and loss account at every month of the year not only
at beginning of the accounting year.
The basic objective is to develop the business so that the local people need
not relay upon others for its requirements
As far as the other things are concern. The company provides the service
facilities to the regular customers. As they are the customers from longer
period of time since the company are not getting service facility and the time
to do manual accounting. The company have to work on it and have to
improve the service facility. For building the good relationship with customers.
The company have to put more focus on the local sale mans the purchase of
the Pune itself it will leads to the increase in the demand as well as it leads
to the better sales in the market as the master care air con services is a local
company they used to focus on the market as the whole simply means they
have to put the focus as well as a particular city. But still my suggestion is
to put more focus on the local areas also.
Yes I think the labour participation is less in the management. As I, analysis
that the labour is just for services. They never take the participation in the
management decisions making process as far as labours are concerns if we give
the chance to the labour in the management to share their views and ideas so
that it will be very helpful for the management for the decisions
making process.
The company have to put focus on the additional service centre. Which they do
servicing form of air conditioners located in the city.
If that service. Is start servicing in the local market as per the demand of the
market it will leads to the maximisation of the profit.

If they work on it I think the demand of the product will be increase and the
customer satisfaction also.
I recommended to put more focus on the service centre of the business. I do
agree that the quality standards are very much important than the cost form
the point of view of the competition across the price and cost impact on the
demand of the air conditioner
Overall the project was useful and informative for me and helped me to know
the computerized accounting system of Master Care Air Con Services.

FINDING
From the research I got the information and data regarding to the
computerized accounting system which were used in Pune

Regarding the Company and its Management

1. The company name is Master Care Air Con Services
2. It is a local company invested in Air Conditioners
3. The company is the dealer of air conditioners product of different
variety
4. The dealership are as follows:-
 Voltas
 Panasonic
 Daikin
5. The company is now focusing on service centre for customer satisfaction
6. The company put more focus on dealership than the service of the
product and tomaintain the standard in the market
7. Daily selling of air conditioners are 25 units
8. There is a combination of 2 to 3 different brands that I cannot share it
because of the business secrecy purpose
9. 25 to 30 employees are working in the business
10.As the dealership is there they have targets in the units not in volume
11.This company have to maintain the standards and have to compete with
others is the local business helps in understanding the profitability
measures and knowing to the contribution of each brand
12.The company should use a new programme of Tally ERP. For new version
13.It will help in developing new knowledge.
14.The firm should concentrate on computerized accounting system Tally
ERP.9
15.It will provide the accountant to gain more knowledge of Tally ERP.9
 SUGGESTION AND RECOMEDATION
Suggestion and Recommendation
The suggestion and recommendation are as follows:-

1.) The company should improve computerized accounting system

The provides the computerized accounting system to the accountant. As
they are the accountant from a longer period of time since the company
are not getting the good computerized accounting system and the time
to upgrade it. The company have to work on it and have to improve the
computerized accounting system. For having good business with
distributor. If they work on it I think the demand of computerized
accounting system will be increase and it will be a business satisfaction
also.
2.) The company should concentrate on Tally ERP.9
The company have to put more focus on the Tally ERP.9 the purchase of
Tally ERP.9itself it will leads to the increase in the demand as well as it
leads to the better accounting in the market as the master care air
con service is a local company they used to focus on manual accounting
as the simply means they have to put the focus on Tally ERP.9. but still
my suggestion is to put more focus on Tally ERP.9
3.) The service centre has to focus on additional unit in Pune
The company have to put focus on the on the additional service centre
Which they service form the client across Pune It is the starting of the
service centre as per the demand of the market it will leads to the
maximization of the profits
 BIBILIOGRAPHY
This Project/ Research work is based on both “A research design is the
arrangement of conditions for collection and analysis of data in manner the
aims to combine relevance to the research purpose with economy in
procedure.” This study involves both primary and the secondary data covering
a period of 2018 and 2019 till date.

The primary data was collected by Questionary by asking some question to the
Accountant of Master Care Air Con Services

The secondary data was collected from company’s website for profile,
magazines, articles relating to Computerized Accounting System and to
understand Tally ERP.9

Some important Books were refer:-

 The company visit
 The question was asked by me to the Manager of the company (Pune)
 The books on the Computerized Accounting System the name were as
follows:-
1.) Computerized Accounting System-NCERT
2.) Computerized Accounting System-Textbook
3.) Computers And Accounting System-Bibliography
4.) Computerized Accounting System-A Practical Guide
5.) Computerized Accounting System-Tally ERP.9

The journals of the Computerized Accounting Systems

1. The journal issued by the ICMAI
2. Journal on Tally ERP.9

The website were used to collect the information of the Computerized

Accounting System as well as for the company information also
The website used for collecting the company information:-
1. www.mastercareairconservices.com
2. www.mastercare.in.com
3. www.mastercareairservicecentre.in
The website is used for the collecting te information on the Computerized
Accounting System and its techniques:-
1. www.information on computerized accounting system
2. www.icmai.in
3. www.tallyerp9.in
4. www.wekipedia/computerizedaccountingsystem.com
5. www.wekipedia/tallyerp9.com
Company Visit
I visited the firm Master Care Air Con Services for collection of the data and
basic information
This visit helps me in the understanding of the computerized accounting
system in a business unit to take the information of Computerized Accounting
System to study Tally ERP.9
 APPENDIX
I asked Question Some Question to the Accountant of the Master Care Air
Con Services
QUESTIONARIES WAS AS FOLLOWS
 What is Computerized Accounting?
Accounting is the method in which financial information is gathered
 What are the problems faced in computerized accounting system?
User Training, System Dependency, Hardware Requirement, System
Failure, Backups And Prints, Voucher Management, Security
 What are the advantage of computerizes accounting system?
Better Quality Work, Lower Operating, Improved Efficiency, Facilitates
Better Control, Greater Accuracy
 What are the disadvantages of computerized accounting system?
Reduction Of Manpower, High Cost, Require Special Skill, Other
Problems
 Describe the various types of accounting system?
Tally ERP, Ready to use
 Distinguish between a Manual And Computerized Accounting
System?
The main difference between manual and computerized system is
speed
 Computerized accounting system are best of accounting system. Do
You Agree?
Yes, accounting refers to identifying transaction and events them in the
books of account sand produce meaningful information for the series.
 What is the need of computerized accounting system?
The need for computerized accounting arises from advantage of speed
and accuracy and lower cost of handling the business transactions.
 What is computerized Payroll accounting?
Computerized payroll accounting system allow you to process all your
normal payroll tasks via a computerized system, rather than by hand.
 Why is a manual accounting system not feasible for most businesses?
There may be too many transactions that cannot be maintained in a
manual system.
 When the company started to use Computerized Accounting System?
 It is started 2 years back 2017
 What is the name of the company/ Business Firm?
It is Master Care Air Con Services
 Is it an local business because you said Master Care Air Con Services?
Yes it is an local business located in Pune and Bangalore
 You are working as?
I am working as an accountant
 Sir how long you have been in the accountant profession?
Since 5 Years
 What kind of business is going on?
The business mainly deals in air conditioners and have the clients
such as local clients, corporate client, institution client and so on.
 How many dealership do you have currently over here?
There are 3 types of dealership such as
1. Voltas
2. Daikin
3. Panasonic
 The computerized accounting system is used for which office?
It is used in both office in Pune as well as Bangalore
 How much time it takes to do Tally ERP.9 System?
Approx a half a day