tally. erp9

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CCOUNTING

"The art of recording , classifying and summarizing , in a significant manner and in terms of money , transaction and events which are, in part at least, of financial character, and interpreting the result thereof."

The financial statements that summarize a large company's operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period.

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eatures of Accounting

Recording

Accounting is the art of recording of transactions. Only business relative

transactions are recorded in which money is mentioned. All transactions

are recorded in detail. Both journal and subsidiary books are used for this.

Classifying

Accounting’s main feature is also classifying all business transactions.

Accounting makes group of all similar accounting entries in one place. For

example all receipt and payment will be shown in cash book. So, all

transactions are collected under one common head.

Summarizing

Summarizing is the art of showing business results in summarize form.

After this, it can use for all the interested parties. This feature tells about

to financial statement. One is Trading and profit and loss account and

other is Balance Sheet.

Interpreting

By interpreting, we can know whether the position of profitability is

good or bad. By knowing this, we can estimate business’s performance.

Recording classiyfing summerizing interpreting

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ACCOUNTING

STANDARDS

1. Disclosure of accounting policies 2. Valuation Of Inventories

3. Cash Flow Statements

4. Contingencies and events Occurring

after the Balance sheet Date

5. Net Profit or loss for the period, Prior

period items and Changes in

accounting Policies.

6. Depreciation accounting.

7. Construction Contracts. 8. Revenue Recognition.

9. Accounting For Fixed Assets. 10. The Effect of Changes in Foreign

Exchange Rates.

11. Accounting For Government Grants. 12. Accounting For Investments.

13. Accounting For Amalgamation. 14. Employee Benefits.

15. Borrowing Cost. 16. Segment Reporting.

17. Related Party Disclosures. 18. Accounting For Leases.

19. Earnings per Share. 20. Consolidated Financial Statement.

http://www.saralaccounts.com/resources/accounting-std.php#1
























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21. Accounting For Taxes on Income

22. Accounting for Investment in

associates in Consolidated Financial Statement.

23. Discontinuing Operation. 24. Interim Financial Reporting.

25. Intangible assets. 26. Financial Reporting on Interest in joint

Ventures.

27. Impairment Of assets. 28. Provisions, Contingent, liabilities and

Contingent assets.

29. Financial instrument. 30. Financial Instrument: presentation.

31. Financial Instruments, Disclosures

and Limited revision to accounting

standards.


















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Accounting cycle is a sequence of accounting procedure which is used to record, classify and summarize the business transactions.

Source document A source document refers to include any document that is received and

issued against any business transactions.

Recording transactions in journal

The first step of accounting cycle, the any type of business transactions

occurred is entered in the journal.

Post to ledger accounts After recording the transactions in journal the debit and credit entries in

account balances are posted from journal to ledger.

Preparing trial balance A trial balance proves and authenticates the equality of debit and credit

entries in the ledger.

Preparation of financial statement It is used to prepare final a/c through trading and profit & loss a/c

Source Document

Journal

LedgerTrail

balance

Balance sheet

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And balance sheet.

Fundamentals of Tally.ERP 9

Introduction

Tally.ERP 9 is the world's fastest and most powerful concurrent Multi-lingual

business Accounting and Inventory Management software. Tally.ERP 9, designed

exclusively to meet the needs of small and medium businesses, is a fully integrated,

affordable and highly reliable software. Tally.ERP 9 is easy to buy, quick to install,

and easy to learn and use. Tally.ERP 9 is designed to automate and integrate all your

business operations.

Salient Features of Tally.ERP 9

A leading accounting package: The first version of Tally was released in 1988

and, through continuous development, is now recognised as one of the leading

accounting packages across the world, with over a quarter million customers. Tally’s

market share is more than 90%.

No accounting codes: Unlike other computerised accounting packages which

require numeric codes, Tally.ERP 9 pioneered the ‘no accounting codes’ concept.

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Tally.ERP 9 users have the freedom to allocate meaningful names in plain English to

their data items in the system.

Complete business solution: Tally.ERP 9 provides a comprehensive solution

to the accounting and inventory needs of a business. It also has various tools to

extract, interpret and present data.

Integrated/ Non-integrated accounting and inventory: With Tally.ERP 9,

the user is able to choose between accounting and accounting with inventory.

Flexible and easy to use: Tally.ERP 9 is very flexible. Tally.ERP 9 users need not

change the way their business is run to adapt to the package.

Speed : Tally.ERP 9 provides the capability to generate instant and accurate

reports, which assists the management to take timely and correct decisions for the

overall productivity and growth of the company.

Power : Tally.ERP 9 allows the user to maintain multiple companies and with

unlimited levels of classification and grouping capabilities. It also allows drill

downfacility from report level to transaction level.

Flexibility : Tally.ERP 9 provides flexiblity to generate instant reports for any

given period (month/year) or at any point of time besides providing the facility to

toggle between Accounting & Inventory reports of the same company or between

companies.

Concurrent multi-lingual capability : Tally.ERP 9 offers you the exclusive

capability of maintaining your accounts in any Indian language, viewing them in

another language and printing them in yet another Indian language.

Real time processing : Immediate posting & updation of books of accounts as

soon as the transactions are entered, thereby facilitating instant statements & Reports.

It also faciliaties real-time multi-user environment.

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Versatility: Tally.ERP 9 is suitable for a range of organisations, from small

grocery stores to large corporations with international locations and operations.

Multi-platform availability: Tally.ERP 9 is available on Windows 95, 98,

ME, 2000 and NT. It runs on a single PC or on a network.

Online Help : The Tally.ERP 9 Online Help (Alt+H) provides instant assistance

on basic and advanced features or any other relevant topics of Tally.ERP 9.

Tally.NET : is an enabling framework which establishes a connection through

which the remote user can access the Client's data without copying / transferring the

data.

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Remote Access : Tally.ERP 9 provides remote capabilities to access the data

from any-where and any time.

Support Centre : allows a user to directly post his support queries on the

functional and technical aspects of the Product.

Technology Advantages

Simple and rapid installation: The user can install the program files on any

drive if the hard disk has partitions. The user can also specify the name and

directory location of the program files. Tally.ERP 9 uses minimum hard disk space in

the local drive. Its installation on the local disk takes just a few seconds.

Unlimited multi-user support: A multi-user version of Tally.ERP 9 can be

installed on a network, having any number of computers with different operating

systems such as Win 95, 98, NT, 2000, XP and Linux.

Internal backup/ restore: Tally.ERP 9 has an in-built, user-friendly ‘backup

and restore’ option. It helps the user to take a backup of one or more companies or

all companies, in a single directory, in the local hard disk, or in any external media.

Data reliability: Tally.ERP 9 is robust and even if there is a power failure or the

computer is incorrectly shut down, data is not lost. Tally.ERP 9 uses signalling

quality data integrity checks, at regular levels, to ensure the complete reliability of

data.

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User-defined security levels: Tally.ERP 9 offers high levels of security. Users

can define multiple levels of security according to their requirements. Every

authorised user in the company can have an individual password, with rights to use

specific features only.

Data security: Tally.ERP 9’s data integrity checks ensure that there are no

external changes to the data. Tally.ERP 9 also uses a binary encoding format of

storage to prevent devious grouping of information.

Tally audit: The Tally.ERP 9 audit feature provides the user with administrator

rights and the capability to check the entries made by the authorised users and

alter these entries, if necessary.

TallyVault: Tally.ERP 9 offers a data encryption option called TallyVault.

Without the valid TallyVault password, the data cannot be accessed. Tally.ERP 9

follows the DES (Data Encryption Standard) encryption method to safeguard the

data.

Multi-directory for company management: The user can create multiple

directories to store data. The data stored in these directories can be accessed

directly in Tally.ERP 9, by specifying the path.

Import/ Export of data: Any transaction can be exported and imported to

other software after suitably altering the current structures to accept the Tally.ERP

9 data structure. Data can also be imported to Tally.ERP 9 by writing a TDL

program. The data which is to be exported from Tally.ERP 9 can be in XML, HTML or

ASCII format.

Tally.ERP 9 Synchronization: Synchronization is the process of exchanging

Tally.ERP 9 data between two or more locations. This process enables a branch

office to send its data to the head office, over the Internet or a private network.

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ODBC (Open Database Connectivity) compliance: It allows other

programs to use data from Tally.ERP 9, directly. Thus, any program such as MS-

Excel or Oracle, which is ODBC compliant, can use data from Tally.ERP 9.

Direct web browser access: While working on Tally.ERP 9, the user can

directly log on to the Tally website, provided he/ she has access to the Internet. The

website lists details of all the facilities offered by Tally.ERP 9.

Ability to preview and publish reports and documents on the

Internet: Companies which want to publish reports and price lists on their

website can do so directly from Tally.ERP 9.

‡ E-mail Facility: Tally.ERP 9 facilitates the mailing of any Tally.ERP 9 report or

document.

Multilingual capability: Tally is the world's first accounting and inventory

software with multilingual capability . It provide us to maintain accounting records

in 12 different languages in india.

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What is VAT (value added tax)

Value added tax (VAT) is an indirect tax on goods. vat is imposed only on the

amount of value addition. It is a multi-point tax levied as a proportion of value

addition, where the tax burden can be shifted from one person to another

person till the ultimate consumer can consume the goods.

VAT RATES

• 0% on (Exempted Goods) Agriculture products, Cotton and silk yarn,

Curd and Butter Milk, National Flag, Salt.

• 1% for Jewellery, Bullion and Specie, Precious and Semi-precious

stones.

• 4% for Pharmacy, Computers, Soaps etc.

• 12.5% for FMCG, Automobile

VAT Terminology

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INPUT TAX

• Input Tax is the Tax shown in our purchase bills.

• Apart from Trade Purchases, Tax on Capital Goods purchases like A.C.,

Computers etc.. is also considered for this Input Tax.

OUTPUT TAX

• Output Tax is the Tax charged on all the Taxable sales of a Vat Dealer.

For Ex. Tax shown as Output Tax and it becomes Input Tax for our

customer.

Types of Dealers

• Registered Dealers

A dealer whose gross annual turnover is above the VAT threshold limit is

required to register under VAT. This is mandatory. A new dealer will be allowed 30

days time from the date of liability to get registered. A VAT registered dealer will

be eligible for input tax credit.

• Unregistered Dealers

A dealer whose annual turnover is less than Rs.5 lakhs is an Unregistered

Dealer and has been granted the status of a Consumer. So, the VAT paid by an

Unregistered Dealer is treated as his cost and is charged no further VAT on his sale.

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• Composite Dealers

Dealers with an annual gross turnover not exceeding a prescribed limit (e.g. Rs.

50 lakh can opt for a composition scheme with a payment of tax at a small

percentage of gross turnover. Dealers are not entitled to input tax credit and

required to submit vat returns in a separate format.

TDS(TAX DEDUCTED AT SOURCE)

TDS

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Introduction

TDS means Tax Deducted at Source. The concept of TDS was introduced in the Income

Tax Act, 1961, with the objective of deducting the tax on an income, at the source of

income. It is one of the methods of collecting Income Tax, which ensures regular flow of

income to the Government.

TDS Process

• A seller (Deductee) provides services to the buyer (Deducator).

• The buyer deducts the Tax at the time of payment of advances or while accounting

the Bills received.

• The buyer deposits the deducted amount to the designated branches of the

authorized bank.

• The buyer files annual returns electronically to the Income Tax department.

TDS Features in Tally.ERP 9

Tally.ERP 9’s TDS Feature enables you to handle all the functional, accounting and

statutory requirements of your business in an accurate and simplified manner. The

TDS functionality in Tally.ERP 9 has the following features:

• Simple and user-friendly

• Quick and easy to set up and use

• Create single Expenses Ledger for Multiple Nature of Payment

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• Create single TDS Duty Ledger for Multiple Nature of Payment

• Book & Deduct TDS in the same voucher

• Single TDS deduction for multiple vouchers

• Single TDS deduction for Multiple Nature of Payments

• TDS deduction on partial applicable value

• Retrospective Surcharge Deduction

• Party wise configuration for Lower / Zero rate

• Deduction of TDS on advance payments

• TDS deduction on Non-Resident (Sec.195) payments

• Reversal of TDS

• Print TDS Challan (ITNS 281)

• Print Form 16A

• Generate E-TDS Returns

• Print Form 27A

• Print Form 26, 26Q, 27, 27Q with Annexure(s)

• TDS Computation Report � Generate TDS Outstanding and TDS Exception Reports

P

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What is Payroll

The term Payroll refers to a series of accounting transactions involved in the

process of paying employees for the services rendered after taking all the

statutory and non-statutory deductions into account, in conformance with the

terms of employment, company policy and the law of the land i.e., payment of

payroll taxes, insurance premiums, employee benefits and other deductions.

Salient Features of Payroll in Tally.ERP 9

The key features of the Payroll functionality in Tally.ERP 9 are as follows:

It is fully integrated with accounts to give you the benefits of simplified Payroll

processing and accounting.

It has user defined classifications and sub-classifications for comprehensive

reporting. This may be related to the employees, employee groups, pay

components, departments etc.

It provides the facility to create user-defined earnings and deductions Pay

Heads.

It allows flexible and User-definable criteria for simple or complex calculations.

It allows unlimited grouping of Payroll Masters

It provides a flexible payroll processing period.

It provides comprehensive Cost Centre as well as employee-wise costing

reports

It ensures an accurate & timely Salary Processing, Employee Statutory

Deductions & Employer Statutory Contributions with the help of predefined

processes.

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It provides auto-fill facility to expedite the Attendance, Payroll & Employer

Contributions processes.

It facilitates an accurate computation and deduction of ESI, EPF, Professional

Tax, Gratuity etc.

It helps in the generation of Statutory Forms & Challans for EPF & ESI, as

prescribed.

It allows to drill-down to voucher level for any kind of alteration.

It facilitates computation of arrears pertaining to prior period(s).

It helps in tracking employee loan details.

Payroll Process

The Payroll feature in Tally.ERP 9 requires minimal effort for accurate

payroll processing. It takes five easy steps to process payroll & generate Pay Slip in

Tally.ERP 9.

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Essentially, Payroll involves the calculation of amounts due for an employee on the

following basis:

Employee Masters

Payroll Masters

Pay Heads

Salary

SERVICE TAX

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Introduction

Service Tax is a destination based consumption tax in the form of Value Added Tax.

Service Tax is an indirect tax imposed on specified services (taxable services) provided

by a service provider (Company, Individual, Firm etc.).

Service Tax was first brought into force with effect from 1 July 1994. All service

providers in India, except those in the state of Jammu and Kashmir, are required to

pay a Service Tax in India.

Scope & Applicability

Initially, Service Tax was chargeable on Realization basis i.e. receipt of the

consideration for the services provided / to be provided (advance receipts). With

effect from 1 April 2011, the Point of Taxation Rule was introduced for effective

collection of Service Tax.

According to this rule, point of taxation shall be on the –

• Date of Issue of Invoice

• Date of receipt of Payment, whichever is earlier?

The liability of tax is on the service provider (in some cases service receiver), i.e.

person who is providing the service is liable to pay tax to the Government.

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Registration

As per section 69 of the Finance Act 1994, every person liable for paying Service Tax

has to register as set out in the rules.

According to Rule 4 of the Service Tax Rules, 1994, the following deals with the

manner and time for registration.

• Application for registration to the concerned superintendent in form ST -1 within

30 days from the date on which Service Tax is levied or 30 days from the

commencement of business providing a taxable service.

• Assessee providing Service from more than one Premises or Office has to make

separate applications for each of such premises or offices.

• In case of transfer of business from a Registered Assessee to a new person, the

Transferee has to obtain a fresh Registration Certificate.

• Service Provider having multiple offices other than from where the services are

provided and wants to distribute the input services and CENVAT credit thereon

to another location which is liable for payment of Service Tax, a separate

Registration (in the manner as that of service provider) will be required for each

such office.

Charge of Service Tax As per Section 66 of Finance Act, 1994,

Service Tax is charged at 12% of the value of

taxable services. In addition to this, 2%

Education Cess and 1% Higher Education Cess is

payable on taxable services Thus, total Service

Tax is 12.36% and it will be collected in such

manner as pre-scribed.

Service Tax Features in Tally.ERP 9

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Tally.ERP 9’s simple yet powerful Service Tax feature enables you to record

transactions related to Service Tax with ease. The Service Tax functionality in

Tally.ERP9 has the following features:

• Simple and user-friendly

• Flexibility to have common/Tax head specific tax ledger to account both Input

Credit and Output Tax.

• Record Service Tax transactions in Journal, Payment, Purchase or Sales Voucher

• Service Tax Billing (for professionals) through Receipt Voucher and print Receipt -

Cum- Challan.

• Record multiple services in a single voucher

• Account service bill Inclusive of Service Tax

• Account Services Partly Subject to Service Tax (Works Contract)

• Record Cash Purchases and Sales and print the invoice in the name of the party.

• Manage Advance Receipts and adjust the advances towards the service bill

• Record Import of services and calculate the Service Tax payable

• Record Exempt, Export, Pure Agent and services with Taxable Percentage

• Supports Service Tax Calculation at Lower Rate

• Manage Advance Service Tax payments to Government and adjust the tax payable

• towards the advance

• Support for Amount deducted as TDS on Services Received are considered as

realized.

• Supports Service Tax Calculation in Sales / Purchase Orders

• Supports Service Consideration Adjustments in Journal Vouchers

• Adjust Full / Partial Service Tax input credit towards Service Tax payable

• Adjust CENVAT credit towards Service Tax payable

• Provision to Reverse the Utilized Input Credit

• Provision to account Service Tax Opening Balance

• Reversal of Service amount with Service Tax (before realization)

• Record Rule 6(3) and 6(4A) Adjustments

• Provision to account the Refund of service Input Credit

• Facility to Print G.A.R. 7 Challan

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• Generate Service Tax Payables report based on Bill date wise or Receipt Date wise

• Separate Service Tax Payables report for Tax on Service Received and Import of

Services.

• Track the Input Credit utilized before making the payment to the service provider

• Maintain Input Credit Summary report

• Generate ST-3 Form - both physical and E-filing

Exemption from Service Tax

In some cases, the Central government can grant exemption on Service Tax, by

issuing a notification u/s 93 of Finance Act, 1944. The Service Tax Exemption

provided may be

• Partial or Total Service Tax

• Conditional or unconditional

Following are the general Exemptions from Service Tax

• Small Service Providers (whose turnover is less than Ten Lakhs)

• Export of Services

• Service to UN Agencies

• Services provided within Special Economic Zone (SEZ)

• Services provided to foreign diplomatic missions, family members of

diplomatic missions etc.

• Services provided by RBI

• Goods and materials supplied while provided services

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Global enterprises started by Vinod Kumar to start his new business. He wants

to implement Tally.ERP 9 to record the financial transactions in Global Enterprises.

Record the following transactions in Tally.ERP 9:

• Create a company Global Enterprises in Tally.ERP 9

Go to Gateway of tally > ALT+F3 > Create Company

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On 1-4-2010, Vinod Kumar started Global Enterprises by bringing capital of Rs.

15,00,000 by Cheque and deposited the same amount into National bank

by opening a new account.

• Create following Ledgers:

Ledger Under

National Bank Bank A/C Capital Capital A/C

Go to Gateway of tally > Accounting voucher > F6

Bank A/c Dr 15,00,000 To Capital A/c Cr 15,00,000

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On 3-4-2010, Mr. Vinod Kumar withdrew Rs. 50,000 Cheque for shop

expenditure from National bank. (Cheque no. 123451).


Ledger Under

Cash Cash A/C

National Bank Bank A/C


Cash A/c Dr 50,000 To National Bank A/c Cr 50,000

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On 5-4-2010, Mr. Vinod Kumar purchased furniture and fixtures worth Rs.

1,50,000 for the shop by Cheque. (Cheque no. 123452).


Ledger Under

Furniture & fixture Fixed Assets National Bank Bank A/C

Go to Gateway of tally > Accounting voucher > F

Furniture 7 fixture A/c Dr 1,50,000 To National Bank A/c Cr 1,50,000

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On 6-4-2010, Mr. Vinod Kumar rented a business at Rs. 3,500 per month. He

paid a security deposit of Rs. 25,000 by Cheque. (Cheque no. 123453).


Ledger Under

Security Deposit Current Assets National Bank Bank A/C


Security Deposit A/c Dr 25,000 To National Bank A/c Cr 25,000

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On 10-4-2010, Mr. Vinod Kumar issued a Cheque to purchase following

assets. (Cheque no. 123454).

Assets Cost(Rs.) Rate of Depreciation

Cell phone 5,500 15%

Computer 25,000 60%

Electrical fitting 5,000 10%

Motor vehicle 40,000 15%


Ledger Under

Assets Fixed Assets National Bank Bank A/C


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Enable payroll for Global Enterprises in Tally.ERP 9 with the following payroll

statutory details:

Provident fund

Company code KN/BN/78910/0801

Company account group code KN/BN/78910/0801

Company security code KN/BN/78910/009

Employee state insurance

Company code ESI012584

ESI branch code Magrath road

Standard working Days 26 Days

Go to Gateway of tally > press F11 > Statutory & Taxation > Enable following:

• Enable payroll statutory > Yes

• Set/Alter payroll statutory details > Yes

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• On 12-4-2010, Mr. Vinod Kumar hired the following people.

Employee Name Designation Department Date of joining

Rahul Bhatt Sales exc. Sales 5-4-2010

Jairam Sengupta Salesman Sales 2-4-2010

Shishir Mathur Accountant Accounts 5-4-2010

Ajith V Nair Clerk Accounts 2-4-2010

Go to Gateway of tally > payroll info. > Employees > Create

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• On 20-4-2010, Mr. Vinod Kumar purchased the following items from A2Z

traders on credit.

items Quantity Rs. Value Input vat

Total Value

High capacity stabilizers 100 600 60,000 12.5% 67,500


Ledger Under Maintain Balance bill-by-bill

A2Z traders Sundry creditors Yes

Ledger Under Inventory values are affected

Used in VAT returns

VAT/Tax class

[email protected]% Pur A/c Yes Yes [email protected]@

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• Create Stock item:

item Under Units

High capacity stabilizers Primary Nos

• Entering Transaction


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• On 21-4-2010, Mr. Vinod Kumar purchased the following items from A2Z

traders on credit


Total Value

Law capacity stabilizers 100 400 40,000 12.5% 45,000

Open well pumps 50 1,500 75,000 4% 78,000

Submersible pumps 100 2,000 2,00,000 4% 2,08,000

Gross Total 3,31,000



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• On 22-4-2010, Mr. Vinod Kumar paid carriage inward expenses of Rs.500 in cash

on purchases made on 20-4-2010 and 21-4-2010.


Ledger Under

Carriage inward Direct expenses

Cash Cash A/C


Carriage inward Dr 500 To Cash A/c Cr 500

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• On 27-4-2010, Mr. Vinod Kumar transferred Rs.10,000 to patty cash from cash

to meet the day to day expenses.


Ledger Under

Petty cash Current A/c

Cash Cash A/C


Petty cash A/c Dr 10,000 To Cash A/c Cr 10,000

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• On 28-4-2010, Mr. Vinod Kumar withdrew Rs.5,000 in cash for personal use.


Ledger Under

Drawings Capital A/c Cash Cash A/C


Drawings A/c Dr 5,000 To Cash A/c Cr 5,000

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• On 30-4-2010, the attendance record of Global Enterprises displayed the

following details:

Attendance/Production types

Rahul Bhatt Jairam sengupta

Shishir Mathur

Ajith V Nair

Present Days 22 21 20 20

Overtime Hours 10 hrs. - - -

Go to Gateway of tally > payroll vouchers > ctrl+F5 for attendance voucher

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On 30-4-2010, Global Enterprises processes payroll for all the employees and

entitled the following employees for variable pay. The salaries were paid in

cash.

Particulars Rahul Bhatt Jairam sengupta

Shishir Mathur

Ajith V Nair

Variable Pay - 1000 - -

Go to Gateway of tally > payroll vouchers > ctrl+F4 for payroll voucher > press

Alt+A (payroll auto fill)

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On 30-4-2010, M/s Global Enterprises processed provident fund contribution for

the month of April 2010.



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On 30-4-2010, Global enterprises processed PF admin expenses for the month of

April 2010.

Go to Gateway of tally > Accounting vouchers > press F7 > press Alt+A (other charges

auto fill)

Select all Admin expenses:


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On 30-4-2010, Global Enterprises made the payment in respect of EPF, EDLI

Admin expenses, EDLI contribution and PF Admin charges for the month of April

2010.


auto fill)

Select PF challan in process list screen:

Enter the PF payable amount, the payment voucher appears as shown:

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On 30-4-2010, Global Enterprises processed employer ESI contribution for the

month of April 2010.



Select ESI contribution in process list screen:

Press Enter to Accept and completed Employee ESI contribution

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On 30-4-2010, Global Enterprises processed the payment of ESI for the month of

April 2010.


auto fill)

Select ESI challan from process list screen:

Press Enter to Accept and Prefill the Employer’s ESI contribution amount for

the eligible employees:

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On 30-4-2010, M/s Global Enterprises made payment of professional tax for the

month of April 2010.


auto fill)

Select Professional tax payment from process list screen:

Press Enter to Accept and Prefill the Professional tax amount in the payment

voucher:

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On 02-5-2010, Mr. Vinod Kumar paid Rs.2500 in cash for stationary, printing

invoices and vouchers to cannon traders.


Ledger Under

Stationary Indirect expenses Cash Cash A/C


Stationary A/c Dr 2,500 To Cash A/c Cr 2,500

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On 06-5-2010, Mr. Vinod Kumar paid Rs.3500 by Cheque towards shop rent for

April 2010. (Cheque no. 123456).

Create following Ledgers:

Ledger Under

Shop rent Indirect expenses National Bank Bank A/C


Shop rent A/c Dr 3,500 National Bank A/c Cr 3,500

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On 10-5-2010, Mr. Vinod Kumar sold the following items for cash. The details are

as follow:


Total Value

High capacity stabilizers 50 850 42,500 12.5% 47,813

Open well pumps 15 1,700 25,500 4% 26,520

Gross Total 74,333

The above items are already created.



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On 28-5-2010, Mr. Vinod Kumar withdrew Rs.4,000 in cash for personal use.


Ledger Under

Drawings Capital A/c

Cash Cash A/C


Drawings A/c Dr 4,000 To Cash A/c Cr 4,000

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On 29-5-2010, the company decided to provide maintenance service for

submersible pumps. Services were outsourced to prime tech services Ltd. For

witch an invoice of Rs.7,721/- (inclusive of service charge Rs.7,000, service tax @

10% Rs.700 and education cess @ 2% on service tax Rs.14 and sec education cess

@ 1% Rs.7 on service tax) was received.


Ledger Under

Prime tech service Ltd Sundry Creditors

Maintenance service Purchase A/c

Creating Duties & Taxes Ledger Ledger Under Type of Duty/Tax Tax Head

Service Tax @10% Duties @ Taxes Service tax Service tax Edu cess @2% Duties @ Taxes Service tax Edu cess

Sec Edu cess @1% Duties @ Taxes Service tax Sec Edu cess


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On 30-5-2010, paid Rs.7721/- by Cheque to prime tech services Ltd, towards bill

Dated 29-5-2010.


Ledger Under

Prime tech service Ltd Sundry Creditors



Prime tech service A/c Dr 4,000 To National Bank Cr 4,000

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On 30-5-2010, raised an invoice on M/s Avantech associates for maintenance

services for Rs.44,120/- (inclusive of service charges of Rs.40,000 service tax

@10% - Rs.4000, 2% cess – Rs.80 and 1% cess – Rs.40).


Ledger Under

M/s Avantech Associates Sundry Debtors

Maintenance service Sales A/c


54

On 31-5-2010, received a cheque of Rs.44,120/- from M/s Avantech associates

towards the bill dates 30-5-2010.


Ledger Under

M/s Avantech associates Sundry Debtors National Bank Bank A/C


National Bank A/c Dr 44,120 To M/s Avantech associates Cr 44,120

55

On 31-5-2010, the service tax input credit is adjusted against output service tax

and service tax paid to the Government.


56

On 31-5-2010, received an invoice for Rs.21,000 from Ramesh Kumar an service

engineer for providing technical service in maintenance work.


Ledger Under Inventory values

affected

Is TDS applicable

Default nature of payment

Adv. Service Indirect exp No Yes Adv. contractor Ledger Under Type of

Duty/Tax Nature of Payment

TDS ON Adv. Duties & Taxes TDS Adv. contractor

Ledger Under Maintain balances

bill-by-bill

Inventory values

affected

Is TDS Deductable

Deductee type

Ramesh Kumar Sundry Creditors Yes No Yes Company resident


57

On 31-5-2010, paid to Ramesh Kumar towards his invoice after deducting TDS

Rs.2,100 from amount payable to him.


Ledger Under

Ramesh Kumar Sundry Creditor National Bank Bank A/C


Ramesh Kumar A/c Dr 18,900 To National Bank A/c Cr 18,900

58

On 31-5-2010, Rs.2,100 paid to Government Treasury towards TDS on fees for

professional or technical services.


Ledger Under

TDS on Adv. Duties & Taxes



TDS on Adv. Dr 2,100 To National Bank A/c Cr 2,100

59

• On 31-5-2010, the attendance record of Global Enterprises displayed the

following details:

Attendance/Production types

Rahul Bhatt Jairam sengupta

Shishir Mathur

Ajith V Nair

Present Days 26 25 26 23

Overtime Hours 5 Hrs. - - -

Go to Gateway of tally > payroll vouchers > ctrl+F5 for attendance voucher

60

On 31-5-2010, Global Enterprises processes payroll for all the employees and

entitled the following employees for variable pay. The salaries were paid in

cash.

Particulars Rahul Bhatt Jairam sengupta

Shishir Mathur

Ajith V Nair

Variable Pay - - 1000 -



61

On 31-5-2010, M/s Global Enterprises processed provident fund contribution for

the month of May 2010.



62

On 31-5-2010, Global enterprises processed PF admin expenses for the month of

May 2010.


auto fill)

Select all Admin expenses:


63

On 31-5-2010, Global Enterprises made the payment in respect of EPF, EDLI

Admin expenses, EDLI contribution and PF Admin charges for the month of May

2010.


auto fill)

Select PF challan in process list screen:

Enter the PF payable amount, the payment voucher appears as shown:

64

On 31-5-2010, Global Enterprises processed employer ESI contribution for the

month of May 2010.



Select ESI contribution in process list screen:

Press Enter to Accept and completed Employee ESI contribution

65

On 31-5-2010, Global Enterprises processed the payment of ESI for the month of

May 2010.


auto fill)

Select ESI challan from process list screen:

Press Enter to Accept and Prefill the Employer’s ESI contribution amount for

the eligible employees:

81

CONCLUSION

In this project I have done case study on Global Enterprises and I have

passed all the transactions from the financial year 1-4-2010 to 31-3-2011

on the tally software with the guidance of our teacher Miss Vaishali

Joshi. She encourages and motivates us during this project. In this

project I have done all the statutory & taxation configuration and setting

of VAT, Payroll, TDS, Service tax. During payroll transactions I create

employees and their departments, then attendance of all the employees,

then create all the pay heads.

In this project I have define how to create a company,

manage payroll, how to maintain salary, how to deduct taxes from

salary, how to manage sales and purchase transactions, apply vat on

purchase and sale, apply service tax on different services, journal

transactions, calculate tax deducted at source, then create payroll

reports and attach annexure reports with the project.

82

Bibliography

The study material to complete this project is takes from the books

provided us by the NIIT.

The books are:

• Advanced accounting, inventory and VAT Vol.2

• Statutory Taxation and compliances Vol.3

• Payroll Accounting in Tally.ERP 9 Vol.4

The study material is also taken from different websites like:

• www.google.com

• www.slideshare.com

• www.wikipedia.com

• www.Tally.ERP9.com

• www.timesofindia.com

• www.nsdl.com

•

http://www.google.com/

http://www.slideshare.com/

http://www.wikipedia.com/

http://www.tally.erp9.com/

http://www.timesofindia.com/

http://www.nsdl.com/

tally. erp9

Economy & Finance

depreciation accounting

similar accounting entries

business transactions

financial position

financial statements

art of recording

financial character

business relative transactions