Tally lab manual.doc

Q1. Opening two or more companies with different names

a. First Company

b. Second Company

c. Third Company

Q2. The role of Buttons

Q3. Meaningful information into all the options available under heading ‘Company Info’

1. Select Company in the different companies.

2. Create Company

3. Backup

4. Restore

5. Quit

Q4. The Ledgers, which has been manually created in Block 2 of MCS-035 exercise

For the Problem of Illustration 2 & Revised Illustration 2

Bad Debts

Bank Commission

Bill Payable

Bills Receivable

Buildings

Depreciation on Machinery

Deprecation on Building

Discount

Discount Received

Check Your Progress 2 Question 4

Bank Balance

Check Your Progress 5 Question 6

Bad Debts

Bill Payable

Check Your Progress 5 Question 7

Bill Payable

Carriage on Sales

Carriage on Purchases

Cash in Bank

Q5. What is a Ledger in Tally?

A Ledger is the actual account head to which you identify a transaction. You pass all accounting voucher entries using ledgers. However, as mentioned in the introduction to Groups, all ledgers have to be classified into groups. Hence, a thorough understanding of account classification is important for working with ledgers. We have reproduced certain portions from the group’s chapter here.

Q6. Create a Sample Ledger in Tally

Q7. Open a ledger named purchase and then delete it.

Created the purchase account

Deleting the purchase account

Q8. Change the name of ledger from purchase to sales.

Purchase Account

Altering to Sales Account

Check Your Progress 2 Question 4

Capital

Building

Check Your Progress 5 Question 6

Fixed Assets

Debtors

Bills Receivable

Investment

Drawings

Purchases

Discount on Creditors

Depreciation on Fixed Assets

Check Your Progress 5 Question 7

Plant & Machinery

Fixture and Fittings

Q10. What do you understand by Voucher?

This is a non-accounting voucher and the entries made using it will not affect your accounts. That is, Tally does not post these entries to ledgers but stores them in a separate "Memo Register". You can alter and convert a Memo voucher into a regular voucher when you decide to bring the entry into your books. View all optional vouchers through Display —>Exception Reports —> Optional Vouchers. View them from the Day Book as well.

Some uses for Memo vouchers

Making suspense paymentsFor example, the company gives an employee cash to buy office supplies, the exact nature and cost of which are unknown. You could enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash. However, a simpler way is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when known.

Vouchers not verified at the time of entryIt sometimes happens that you do not understand the details of a voucher you are entering. Enter it as a Memo voucher and amend it when you get the details.

Items given on approvalYou will normally only enter completed sales into the books. Suppose items are given "on approval". You can track them with a Memo voucher and convert it into a proper Sales voucher, or delete the memo voucher, depending on the outcome.

Reminder serviceYou can enter a Memo voucher for a transaction that will take place in the future and get Tally to remind you about it one day prior to the date. For example, insurance premiums due, taxes due, installment payments, post-dated cheques.

Q11. Show the use of all the Voucher types available with Tally

Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard vouchers are:

-Payment voucher

-Receipt voucher

-Contra voucher -Sales voucher

Sales Orders Sales vouchers/invoices Delivery Notes Rejection In

-Purchase voucher Purchase Orders Purchase vouchers Goods Receipt Notes Rejection Out

-Journal voucher Credit Notes Debit Notes Journal

-Memo voucher Reversing Journal

-Stock Journal

-Physical Stock

You can alter these vouchers to suit your company, and also create new ones. For example, if you wish to distinguish between cash and bank payments you can create vouchers to do this.

The function of each voucher type is now explained.

Payment Voucher

Payment VoucherDescription Record all Bank & Cash PaymentsVoucher Entry Account Amount Amount

Ledger Account Paid e.g., Sundry Creditor, or expense head like Electricity charges.

Debit

Bank or Cash Account Credit

Receipts Voucher

Receipts VoucherDescription Record all receipts into Bank & Cash accountsVoucher Entry Account Amount Amount

Bank or Cash account e.g., Grindlays Bank (Bank Account)

Debit

Income ledger account e.g., Bank Interest (Indirect Incomes) or the giver of money e.g., A debtor (Sundry Debtors)

Credit

Contra Voucher

Contra VoucherDescription Records funds transfer between cash and bank accountsVoucher Entry Account Amount Amount

Cash (Cash-in-hand)Debit

Grindlays Bank (Bank Account) Credit

Sales Voucher

Sales VoucherDescription Records all salesVoucher Entry Account Amount Amount

Buyer’s ledger account, e.g., King & Co (Sundry Debtors)

Debit

Sales Account e.g., software salesVAT output/sales tax

CreditCredit

Purchase Voucher

Purchase VoucherDescription Records all PurchaseVoucher Entry Account Amount Amount

Purchases (Purchase Accounts)Input VAT/Tax

DebitDebit

Supplier’s ledger account, e.g., U S Computers (Sundry Creditors)

Credit

Q12. Change the date of voucher entered.

Q13. Change the period of Voucher entered.

Q14. Generate Balance Sheet, which has been manually created in Block 2 of MCS-035 exercise

The Problem of Illustration 2 & Revised Illustration 2

Balance Sheet

Check Your Progress 2 Question 4

Balance sheet

Check Your Progress 5 Question 6

Balance sheet

Check Your Progress 5 Question 7

Balance sheet

Q15. Generate Profit and Loss Account, which has been manually created in Block 2 of MCS-035 exercise

The Problem of Illustration 2 & Revised Illustration 2

Profit and Loss Account

Check Your Progress 2 Question 4

Profit and Loss Account

Check Your Progress 5 Question 6

Profit and Loss Account

Check Your Progress 5 Question 7

Profit and Loss Account

Q16. Generate Trail Balance, which has been manually created in Block 2 of MCS-035 exercise

The Problem of Illustration 2 & Revised Illustration 2

Trail Balance

Check Your Progress 2 Question 4

Trail Balance

Check Your Progress 5 Question 6

Trail Balance

Check Your Progress 5 Question 7

Trail Balance

Q17. How many types of Balance Sheet can be generated in Tally?

We can generate two types Balance Sheet

1. Vertical Balance Sheet

2. Horizontal Balance Sheet