Journalize the following:

No Date Transaction

01 01-02-2004 Maruthi & Sons Started business with capital of Rs.

2,00,000
02 02-02-2004 Paid into Indian bank Rs. 50,000
03 03-02-2004 Bought goods for cash 14,700
04 06-02-2004 Sold good to JJ Traders on Credit 7,000
05 09-02-2004 Cash Sales 19,000
06 11-02-2004 Received Commission 400
07 13-02-2004 Received seven tables from Amirtha Stores at 500 each
08 15-02-2004 Bought goods from Vignesh 2,000
09 21-02-2004 Paid cash to Amirtha Stores
10 26-02-2004 Paid rent 1,000
11 27-02-2004 Paid Salary 2,500

Exercise : 6

Journalize the following:

No Date Transaction

01 03-07-2004 Peter started business with Rs. 75,000

02 05-07-2004 Goods purchased 6,000
03 10-07-2004 Good sold Rs. 8,000
04 15-07-2004 Goods purchased from Mathew Rs. 21,000
05 17-07-2004 Goods sold to Sanjay Rs. 24,000
06 18-07-2004 Goods returned to Mathew Rs. 1,300

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07 20-07-2004 Goods returned by Sanjay Rs. 500
08 23-07-2004 Opened an account with HDFC Bank Rs. 15,000
09 25-07-2004 Drew from Bank Rs. 4,000
10 25-07-2004 Furniture purchased Rs. 3,500
11 27-07-2004 Sanjay settled his account
12 28-07-2004 Settled Mathew’s Account
13 29-07-2004 Insurance Premium paid Rs. 350
14 29-07-2004 Electric Charges paid Rs. 250
15 30-07-2004 Drew for Personal use Rs. 1,300
16 31-07-2004 Salary paid Rs. 1,500

Exercise: 7
Journalize the Following with invoice:

HS & Co started the business from 01/04/2004

01/04/2004 Received capital by cash 2,00,000

01/04/2004 Cash Deposited in HDFC Bank 50,000
04/04/2004 Credit purchases from Kiran Traders 20,000 (Inv.No. 122)
04/04/2004 Credit purchases from Pooja Traders 20,000 (Inv.No. 433)
11/04/2004 Credit purchases from Kiran Traders 20,000 (Inv.No. 144)
11/04/2004 Credit purchases from Pooja Traders 20,000 (Inv.No. 444)
11/04/2004 Returned Goods to Kiran Traders 5000 (Inv.No. 122)
13/04/2004 Returned Goods to Pooja Traders 5000 (Inv.No. 444)
16/04/2004 Credit Sales to Ram & Ram 50,000 (Inv.No.1)
16/04/2004 Credit sales to Kavitha & co 50,000 (Inv.No. 2)
16/04/2004 Cash Sales 20,000 (Inv.No. 3)
18/04/2004 Credit Sales to Ram & Ram 50,000 (Inv.No.4)
18/04/2004 Credit sales to Kavitha & co 50,000 (Inv.No. 5)
18/04/2004 Goods returned by Ram & Ram 5,000 (Inv.No.1)
18/04/2004 Goods returned by Kavitha & co 5000 (Inv.No. 5)
21/04/2004 Payment made by cheque to Kiran Traders 30,000 Ch. No. 161122
21/04/2004 Payment made by cheque to Pooja Traders 30,000 Ch. No. 161123
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21/04/2004 Received cheques from Ram & Ram 75000 Ch. No. 320321
21/04/2004 Received cheques from Kavitha & co 75000 Ch. No. 112310

Payment Made by cash:

26/04/2004 Paid to Petty cash by cash 1,000
26/04/2004 Furniture purchased 20,000
26/04/2004 Salaries paid 10,000
26/04/2004 Rent 4,000
26/04/2004 Electricity charges 3,000
26/04/2004 Telephone charges 3,500
26/04/2004 Cash Purchases 5,000

Payments Made by Petty Cash:

30/04/2004 Conveyance 150
30/04/2004 Postage 100
30/04/2004 Stationeries 200
30/04/2004 Staff Welfare 100
30/04/2004 Stationeries purchased from Jain & Co 1500 on Credit
30/04/2004 Depreciation on Furniture 10%
Answer: Balance Sheet Total Rs. 3, 21,950

Memorandum

Exercise: 8

25 Apr 2007 Paid advance in Travailing Rs.10000

27 Apr 2007 Paid salary advance Rs.3000
01 May 2007 Paid salary Rs.3000 against advance
05 May 2007 Paid Traveling exp Rs.8900 against advance
25 May 2007 Paid rent Advance Rs.5000
02 June 2007 Paid rent against advance

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Voucher Types:

By default Tally 9 provides 18 types of Vouchers (with out counting payroll

vouchers) for recording different natures of transactions. However, if you require further
Voucher Types that function like the one of the existing type, you can create New Voucher
Types and give different Voucher Numbering series.

The Voucher Type facility is great as you can make several alternates of each pre-fixed
Voucher Type. For example, for Sales Voucher, it may be convenient to have several
Voucher Types like Cash Sales, Credit Sales, Sales To Registered Dealers, Sales to
Unregistered Dealers, Export Sales, etc. By creating separate voucher types for them, you
can independently configure their numbering scheme, layout, etc.

Voucher Number:

To identify a voucher uniquely, normally every voucher is given unique

number. The number may be allotted by the user, or can be automatically generated by
Tally, according to options set in voucher Types under Accounts Info.

Tally provides three options for voucher numbering

1) Automatic 2) Manual 3) None

If Automatic is opted for the selected Voucher Types, Tally allots incremental
number and cursor would not move here. And we cannot change the voucher number.

If Manual is specified for the selected voucher type, cursor would blink at the
voucher number field to input from keyboard. We can modify the voucher Number

If none is opted for the selected Voucher Type, voucher number field would
not appear.

Features

Tally controls operational Features through F11: Features button.

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F11:Features button appear almost in every screen upon selecting a company.
We get same option irrespective of screen where we launch it. Feature settings
are company specific. We can activate an option for one company and
deactivate the same for another company.

Accounting Features - 11

1. Integrate Accounts and Inventory: This option basically affects

accounts. If we set this option to Yes, the value of stock is automatically
computed on the basis of Inventory and posted in Balance sheet, Profit &
loss a/c and we are not allowed to input the stock value on our own as the
accounts are integrated with the Inventory Part.

If we set No, our Accounts & Inventory remains separate and we have to
input the value of closing stock in the ledger under Stock-in-hand group
which is posted in the Balance Sheet & Profit & Loss A/c.

1. Income /Expense Statement Instead of P & L: We change Profit and Loss A/c
to Income and Expenditure statement. By default, Profit & Loss A/C

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2. Allow Multi Currency: If we wish to record transaction in foreign currency,
we should set this option to yes. On setting this feature to yes, Currency option
would be available at Accounts Info menu and in ledger creation we can specify
currency for the ledger. In case we do not need foriegn currency option, we
should respond No, that would keep, Accounts Info menu and ledger creation
screen tidly.

3. Maintain Billwise Details: By default, Tally would maintain ledger wise

balance and display net debit or credit balance for a ledger. If we receive or
grant credit on purchase or sales, mere ledger balance may not reflect the true
state of affairs-as a ledger may show an amount due which may not be over due
on that date. By maintaining Bill wise details, we can get bill wise outstanding
,compute bill wise overdue interest , In case we need these features, respond
Yes to this option that would allow to selectively option to maintain Bill Wise
Details for ledgers. In case mere ledger balances is sufficient to meet our
requirement. Respond No to keep the ledger creation screen more sleek.

4. Maintain Cost Centres: If we wish to make cost centre wise allocation, respond
Yes that would activate Cost Centres option which we would get in Accounts
inof menu

5. More than One cost Category: If we respond Yes to the above

option, we are asked this question. If we wish to allocate a transaction to more
than one set of cost centres simultaneously, respond Yes that would activate
Cost Category option under accounts info menu and we would be able to
allocate to multiple set of cost centres.

6. Interest Calculations:Interest is re-calculated with every change in balance

outstanding. The Cr in the interest amount should not be confused to mean an
Income. It only means that it is payable and is a liability.

7. Maintain Payroll: If we set this option to yes, we can create a employee pay slip.

8. Allow Invoicing: If we set this option to yes, we can enter sales

transactions in Invoice mode also if we respond No, we will ne restricted to enter
sales transactions in voucher mode only.

9. Maintain Budgets and Controls: If we wish to use Budget to compare with actual
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 or other budgets and get variance or set Credit Limit for party,set this feature to
yes. When we set this feature to yes, Budget option would be avaliable at
Accounts info and Credit Limits under Accounts Info-Ledger menu. In case we
do not need to use Budgets or credit limits, set to No.
10. Use Reversing Journals & Optional Vouchers:If we set this option to yes,
It would be enable to voucher entry.

11. Allow Zero valued entries: If we need to make Voucher entires whose
monetary transaction value is 0, respond yes (For example, to prepare an
Invoice for sample of zero value), otherwise respond No.

12. Enable Cheque printing : You can choose to write cheques directly
from Tally. Cheques will be printed when printing a Payment Voucher.
However, first activate the capability and set dimensions

Multi-Currency

Organizations who transact in multiple currencies need to record transaction in the

currencies they transact with. We can create and transact in any currency. We can also
enter selling and buying rate of different currencies.

F11- Features Allow Multi currency Yes

Once this option is said to yes we get currencies under accounts info.

Select currencies  press enter

The currencies menu has the usual create, display and alter options.

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Symbol : Enter currency symbol

Formal Name : Enter the name of currency, must

be different from the symbol.

Number of Decimal places : Enter the number of decimal places for the
Currency.

Rate of Exchange:

Thee screen always comes up in Alter mode.

Rate of Exchange: It operate on day-to-day

Standard Rate : The standard rate is used to calculate variances from

The actual transaction rates

Selling Rate : Enter the rate at which we are selling the currency
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 to our money exchange.

Buying Rate : Enter the rate at which we are buying the currency

from our Banker or Money Exchanger.

Come to voucher entry  Press F5  Payment  Payment is made to Krishna Traders in

Dollars that is 50 dollars. The entry is passed as shown below :

Once enter is pressed in the amount column the Dollar gets converted to Rupee as on the
date of voucher Entry as shown below and the amount is displayed based on Rupee
currency.

Exercise: 9

Mr. Laxman started a business in the name of Laxmana Traders on 1/5/2005

02/5/2005 Received capital from Murali 1000 Dollars.

02/5/2005 Standard rate Dollars 67,68,65

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03/5/2008 Purchased items from Vimal & co for 150 Dollars
03/5/2008 Standard rate Dollars 61, 63, 60

06/5/2008 Sold goods to Raja & Raja for 75 Dollars

06/5/2008 Standard rate Dollars 46, 48, 47

08/5/2008 Received 70 Dollars from Raja & Raja

08/5/2008 Standard rate Dollars 58, 59, 57

Exercise: 10

Create currencies for the following:

Standard Selling Buying

Rate Rate Rate

$ (Dollar) 62 63 60
# (Frank) 45 47 46
£ (Pound) 72 73 72
¥ (Yen) 58 60 59
€ (Euro) 82 83 82

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1.2.2004 Sathesh Started business with Rs. 5,00,000
01-02-2004 Opened Current Account in HDFC Rs. 25,000
03-02-2004 Bought goods from Levi Traders $200
06-02-2004 Sold good to Jagan Traders on Credit £150
09-02-2004 Goods Purchased from Mahila & Co ¥100
11-02-2004 Furniture purchased £500
13-02-2004 Goods returned to Mahila & Co ¥15
15.2.2004 Bought goods from Vinita & Sons €100
21-02-2004 Settled Mahila & Co Account
26-02-2004 Paid rent 1,000
27.2.2004 Paid Salary 2,500
27.2.2004 Sold to Peter Steel Enterprises € 200
28-02-2004 Peter Steel Enterprises settled his account.
28-02-2004 Drew from Bank Rs.10, 000

Cost Categories and Cost Centres

By providing cost centre, a transaction can be allocated to it which would then enable
extraction of all transactions for a cost centre. Hence, a cost centre can be said to be any
unit of an organization to which transactions can be allocated when only costs or expenses
are allocated to these units; they are referred to as cost canters.

F11-Featrues Set yes to two options

Maintain Cost centre yes

More than one Cost Category yes

Steps Involved:

Cost Categories  Single  create

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Name: Department

Allocated Revenue Items: yes

Accept  yes

Cost CentreMultiple Cost Centre Create

Under Cost Centre: All items.

In Category Column  Select Department

Under Name of Cost Centre  Type the different types of Cost Centres

Accept  yes

Come to voucher Entry

Press F5  Payment and enter the following entry

By Salaries Rs. 45,600

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Once we press enter we get the following screen, select Cost Category, then select cost
centres and type the salary amount incurred for the different departments as shown below:

Type to cash  Type the Narration  Accept Yes

COST CENTRE CLASS

Cost Centre Classes affect all voucher types. In voucher entry, the allocation screen
would not appear, but allocation would be made automatically.

Steps Involved:

1. Press F11 -> Features -> Maintain Cost Centres and more than
one cost category options should be set to Yes.
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 2. press F11 -> Features -> Pre-defined cost centre allocation
during entry set Yes.

3. The following screen appears.

4. Type a Class name, say Expenses Allocation . Press Enter the following
screen appears.

5. Select the name of the cost category as Department , select Cost

Centres and type the Percentage of allocation for each department. The
percentage should be typed by us. Press Enter Accept Yes.

6. Come to Voucher Entry. Press F5 -> payment -> Under Cost Centre
Class -> Select the name of the class as Expenses allocation. Then pass
the entry.

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To view the Allocation of Expenses under different Cost
Centre: Display -> Statements of Accouts -> C ost centres

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Exercise No: 11

Cost Category: Chennai

Cost Centre: Marketing, Finance, Administration

01/4/2005 Paid Salary Rs.28, 000 (M-10, 000, F-10, 000, A- 8,000)

03/4/2005 Paid Rent Rs. 8, 000 (M-2, 300, F- 2,200, A- 3, 500)

17/4/2005 Paid Stationeries Rs. 3,000 for all departments

24/4/2005 Paid Electricity charges Rs. 12,000 (M-4, 000, F- 3,500, A- 4,500)

30/4/2005 Paid Sales Tax Rs. 1,650 for all departments

01/4/2005 Paid Income Tax Rs. 1,800 for all departments

Exercise No: 12

Cost Category: Department

Cost Centre: Account, Purchase, Sales, Computer

Date Expenses Account Purchase Sales Computer Total

03/5/05 Electric Bill 2000 2000 1400 5000 10400

05/5/05 Rent 1500 1500 300 3000 6300

07/5/05 Interest 500 200 150 850

05/5/05 Wages 500 200 700

09/5/05 Stationery 250 50 120 100 520

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13/5/05 Salary 4500 2000 3000 4000 13500

25/5/05 Postal Charge 400 150 550

27/4/05 Telepone Bill 1300 300 200 1500 3300

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