Tally Prime

Prepared by – Babloo Sir (8368894657)

June -1 Cash Dr. 9000 F6
(Receipt)
Megha Cr. 9000

(cash in Dr. side because cheque deposit next day in bank)

June -2 Bank Dr. 9000 F4
Cash Cr. 9000 (Contra)

June -2 Drawing Dr. 3000 F5
Cash Cr. 3000 (Payment)

June -2 Cash Dr. 10000 F6
Bank Dr. 5000 15000 (Receipt)
Sales
Cr.

June -2 Audit Fees Dr. 5000 F5
Bank Cr. 5000 (Payment)

June -2 Cash Dr. 4000 F4
Bank Cr. 4000 (Contra)

June -2 Praveen Dr. 2000 F5
Cash Cr. 1890 (Payment)
Discount Cr.
110

June -2 Megha Dr. 9000 F5
Bank charges Dr. 150 (Payment)
Bank 9150
Cr.

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Q-7 Dr. 19,00,000 F6

April -1 Cash Cr. 19,00,000 (Receipt)
Capital

April -1 HDFC Bank Dr. 15,00,000 F4
Cash
Cr. 15,00,000 (Contra)

May-2 Wages Dr. 30,000 F5
Salary Dr. 26,000 (Payment)
Electric Bill Dr. 19,000
ABC Charity Dr. 10,000
HDFC Bank
Cr. 85,000

June-1 Yes Bank Dr. Amount Show in current Bal.
July -1 HDFC Bank Cr. F4(Contra)
Hint - (1500000-85000)
Vimal Dr. 8000 F5
Yes Bank Cr. 8,000 (Payment)

July -1 Cash Dr. 900 F6
Commission Received Cr. 900 (Receipt)

July -1 Nisha Dr. 1560 F5
Bank charges Dr. 5.60 1565.60 (Payment)
Yes Bank
Cr.

Aug -1 Yes Bank Dr. 90.55 F6
Interest Received Cr. 90.55 (Receipt)

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Q-8 Dr. 50,000 Ledger
(Alter)
April -1 Cash

April -1 Cash Dr. 2,50,000 F6
Capital
Cr. 2,50,000 (Receipt)

April -2 HDFC Bank Dr. 40,000 40,000 F4
Cash Cr. (Contra)

April -2 Petty-Cash Dr. 15,000 15,000 F4
Cash Cr. (Contra)

April -2 ICICI Bank Dr. 25,000 25,000 F4
Cash Cr. (Contra)

April -2 Vishal Dr. 5000 F5
HDFC Bank Cr. 5000 (Payment)

April -2 Printing Dr. 200 F5
Postage Dr. 300 (Payment)
Paper Sheet Dr. 150
Petty-Cash
Cr. 650
April -2 Petty-Cash
ICICI Bank Dr. 1,000 1,000 F4
Cr. (Contra)
April -2 HDFC Bank
ICICI Bank Dr. 2000 2000 F4
Cr. (Contra)

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TALLY PRIME
INVENTORY

1. Stock 2.Units of 3.Stock 4. Stock Stock Item
Group Measure Godown * Category *

Furniture PCS Shahdara Wood/ Chair / Table
Plastic / Almira
Garment MTR Maujpur
Silk/ Shirt / Jeans
Electronic DOZ UP Cotton / T-shirt

Medicine KG Delhi 5 Wt / Bulb / Fan /
8 Wt Cooler
Stationery LTR Punjab
Capsul / Glycodin /
Tablet Bandage /

Ball / Gel Dettol

Pen /
Register /

Stapler

➢ Opening Balance Pass into Create - Stock Item with all necessary
details required (Group , Units , category and Godown)

➢ For Stock Summary
Gateway of tally – Stock Summary (Enter for group) – Press
Alt+F1 for Details of item

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➢ If any mistake in Stock Item, modify from Stock summary –
Press Ctrl+ Enter key for modify

E.G. Following is example of Inventory with (Opening Balance)
Ram furniture opening balance of item and item rate is given below
and pass in Delhi (Shahdara and Yamuna vihar) Godown

40 Pcs Chair, Wood @ Rs 399 PCS (Shahdara)
10 Pcs Stool, Wood @ Rs 150 PCS (Yamuna vihar)
25 Pcs Table, Wood @ Rs 250 PCS (Shahdara)
15 Pcs Almira @ Rs 9000 (Shahdara)
10 Pcs Bench,Plastic @ Rs 300 (Yamuna Vihar)
Sol
Step-1
Create New Company – Gateway of Tally –

Create

1. Stock Group –

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2. Stock Category
3. Units of measure
4. Godown

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5. Stock item
E.g. chair Stock Item and same follow for other item

• Pass Godown as per Item and amount of item Per Pcs.
• Same process follow for other item.

After pass all item back to Gateway of Tally - Reports – Stock Summary
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• Press Enter on Furniture for show all Items details and Press Alt + F1 Key
for Godown wise Details of All Items.

Practice Question

Q-1 Mohit Medical store following opening stock maintain in Uttar Pradesh

(Ghaziabad and Loni) Godown.

Item Units of Qty Rate (Rs.) Godown
Measure
Gylcodin Syrup BTL 12 55 GZB
Bandage PCS 150 2.50 LONI
Dyper PCS 30 11 GZB
Saradon PAC 10 9 LONI
Hajmola PAC 45 3 GZB

Stock Summary – RS 1,590

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Q-2 Simran Soft Drink store following opening stock maintain in Delhi (Gandhi
Nagar).

Item Qty Category Rate Units of
Measure
Pepsi 15 2 LTR 85 BTL
2 LTR 90 BTL
Maaza 25 600 ML 40 BTL
500 ML 35 CAN
Limca 18 1 LTR 30 BTL
2 LTR 95 BTL
Sprite 20

Appy 16

Fruiti 14

Stock Summary – RS 6,755

Q-3 Vikram Computer store following opening stock maintain in Nehru Palace

Item Qty Rate Units of Measure
MOUSE 25 300 PCS
Keyboard 45 400 PCS
RAM 2 GB 10 1100 PCS
LED 17 Inch 18 8000 PCS
WIFI Router 5 1900 PCS
Pan Drive 8 GB 19 450 PCS
Hard DISK 1 TB 7 3500 PCS

Stock Summary – RS 2,23,050

Q-4 Maintain All Details of Item in Mr. Mehta Telecom Following Stock

20 PcsNokia Lumia810, Touch @ Rs 19,500 (Shahdara)
45 PcsSamsung Galaxy J5, Touch @ Rs 12,300 (Maujpur)
15 PcsNokia Aasha, Touch @ Rs 9000 (Shahdara)
25 PcsSamsung Galaxy J7, Touch @ Rs 15,500 (Shahdara)
20 PcsNokia E63, Keypad @ Rs 5600 (Shahdara)
25 PcsSamsung Guru, Keypad @ Rs 2500 (Maujpur)

Stock Summary – RS 16,40,500

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SUBSIDIARY BOOK

(Purchase – Sales with Return)

TALLY – PRIME

 Purchase Book (F9)

This book is used for recording goods purchased on credit. This book is also known as invoice book,
bought book or purchased journal. It must be noted that only credit purchases are recorded in this
book. Things purchased on credit for personal use are not recorded in this book.

 Sales Book (F8)

Sales book is used for recording goods sold on credit. When the trader sells goods on credit then he
should keep record in sales book to know how much goods have been sold, when and to whom. Thus
a sales goods is prepared to know credit sales

 Purchase Return Book/ Debit Note (ALT+F5)

The book used for recording goods return for the seller is called "Purchase Return Book". It is also
known as return outwards Books. The buyer returns goods when he finds them damaged or inferior
in quality or against the sample. While retuning goods buyer prepares debit note

 Sales Return Book / Credit Note (ALT+F6)

It is a book used for recording goods returned by the buyer. It is also known as returns inward book.
Goods sold may be return by customer for various reasons such as goods sent of wrong description
or inferior quality or damaged. While keeping records in sales return books sellers prepares a credit
note.

➢ After Create Firm and Inventory Setting Goto to Gateway of Tally

Goto Gateway of Tally → Create → Ledger

Required Ledger

• Purchase → Purchase A/c

• Sales → Sales A/c

• Purchase return → Purchase A/c

• Sales return → Sales A/c

• Party Name (if Purchase) → Sundry Creditor

• Party Name (if Sales) → Sundry Debtor

Note-
➢ (CTRL +H Key Press for Item Invoice Mode/Voucher Mode /Account mode transaction)

➢ If you want to show discount column is Sales or Purchase book

Press F11 → Show More feature - Yes

Use discount column in invoice→ Yes

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EXAMPLE- Prepare Subsidiary Book in Vansh Electronic Books of the following Transaction. Maintain All
Stock in Shahdara Location. (Set GST Details – No)

DATE PARTICULARS

APR-1 Purchase 10 Pcs Refrigerator from Gupta Electronic, Bill no 1011 @ Rs. 11500 Per Pcs.

APR-1 Purchase 15 Pcs Hitachi Air conditioner, (1.5 Tonne) from Sharma Electronic, Bill no 4672 @
May-1 Rs. 31200 Per Pcs.
May-1
Sold goods on Credit to Yadav Electricals 5 Pcs Refrigerator @ Rs 12300 Per Pcs with 2%
Discount on each Item.

Sold goods on Credit to Vimal Electricals 7 Pcs Hitachi Air conditioner @ Rs 34500 Per Pcs.

May-2 Yadav Electricals Return 2 PCS Refrigerator (Reason- Out of order)

May-2 Return to Sharma Electronic 1 PCS Hitachi Air. (Reason- broken body)

Solution –

• Step-1

Gateway of Tally – Create – Ledger

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• Step-2

Gateway of Tally – Create – Inventory Masters
1. Group

2. Unit

3. Stock Category

4. Godown / Location

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5. Stock Item

Note – Press Ctrl + I (Apply Stock Category) – Show More – Apply Stock Category

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• Step-3 (Purchase Transaction)

Gateway of Tally – Voucher – Press F9 or Click Purchase (Pass 1st Voucher)

• Step-4 (Sales Transaction)

Voucher – Press F8 or click Sales Voucher and then Press F2 for Date change of Transaction.
After change date press F11 and Activate Discount Column in Invoices.

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• Step-5 (Sales Return Transaction)

Press F10 Key – Click on credit/Debit note if not Activate.

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• Yadav Electronic Return Goods 2 Pcs Refrigerator (Sales Return) – Credit note Entry
Press (Alt + F6) key.

• Set Date (F2) – 2nd May

• Step-6 (Purchase Return Transaction)
• Return to Sharma Electronic 1 PCS Hitachi Air- Debit Note / Purchase Return Press (Alt + F5)

Key.

• Now, we Check Purchase book, Sales Book and Return Book.
• Gateway of Tally – Display more report – Account book

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• To Check all Details – Click on Group Summary
• To Check all Voucher Details – Click on Group Voucher (Select Group)

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PURCHASE BOOK

Q-1. You are required to prepare purchase book of the following transaction.

2020
Apr -1 Purchase from Arnav Verma

200 Pcs of T-Shirt, Cotton @ Rs 225 per Pcs.
120 Pcs of jeans @ Rs 325 per Pcs.

Apr - 2 Purchase from Piyush
100 Pcs of Lower @ Rs 125 per Pcs.
200 Pcs of shirt, Silk @ 400 per Pcs.
50 Pcs of cargo @ Rs 300 per Pcs.

Apr-2 Purchase from Sandeep
40 Pcs V-Neck T-Shirt @ Rs 400 per Pcs
30 Pcs Kurti @ Rs 200 Per Pcs.
10 Pcs Punjabi Suit @ Rs 800

(Ans. → Purchase Book →Rs 2, 21,500)

Q- 2 M/S Anil & Sons Who are Dealer in Electric item, Create purchase book.

2020

April 1 Purchase from Mr. Sanjeev

100 Bulb Holder, Cona @ Rs10 per Pcs

April 1 Purchase from Mr. Rahul
2 Tube-light @ Rs 70 Per Pcs

April 2 Purchase from Mr. Ajay
200 Surya bulbs, 100 Wt @ Rs 12 Per Pcs.

April 2 Purchase from Mr. Rashid
10 Anchor Switch @ Rs22 per Pcs (Discount 3%)

(Ans. → Purchase Book →Rs 3,753.40)

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Q.3 Maintain Stock of Medical Store items in Rashid Medical Store.

May-1 Purchase from Mr.Chaman,Shahdara
20 Bottle Glycodin @ Rs 80 Per Bottle
10 Bottle PCM Syrup @ Rs 60 per Bottle

May-2 Purchase from Mr. Pranav, Shahdara
10 Packets Bandage @ Rs30 Per Packet
30 Strips PCM Tablet @ Rs 10 Per Strips
5 Pcs Axe Dew @ Rs 160 Per Pcs
(Discount on Above Item 2%)

May-31 Purchase from Mr Shukla, Durga Puri
10 Box Hajmola Candy @ Rs 120 Per Box
20 Pcs Pamper-Small @ Rs 9 Per Pcs
20 Box ENO-Cola @ Rs 50 Per Box

(Ans. → Purchase Book →Rs5,952)

Q–4 You are required to prepare purchase book of the following transaction.

2020
May -1 Purchase from MrDheeraj , Laxmi Nagar

20 Pcs of Mouse, Dell @ 200 Rs per Pcs
30 Pcs of Keyboard, TVS @ 300 Rs. Per Pcs
10 Cabinet,Zebronics @ Rs 800 Per Pcs.

Discount: → 4% on all above item

May – 2 Purchase from MrHemant, Noida-Sec 12
10 Motherboard G31 Combo , Gigabyte @ Rs 2100 per Pcs.
10 Speaker 5in 1, Intex @ Rs 1200 per Pcs.
10 Processor , Intel-I7 @ Rs 4800 per Pcs.
10 SMPS, Intex @ Rs 310 per Pcs.
Discount: → 7.5% on all above item

(Ans. → Purchase Book →Rs 97,952.50)

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Purchase &Purchase Return

Q- 5 Prepare Purchase Books in Mr Karan's Accounts.

Apr-1 Purchase from Mehta Telecom, Yamuna Vihar
50 Pcs Samsung Galaxy J7 MAX @ Rs 16,500
10 Pcs Apple 7S 32GB @ Rs. 45600
40 Pcs Oppo F1s @ Rs 15400
30 Pcs Nokia 6 @ Rs 14000

Apr-2 Purchase from Abhit Telecom, DurgaPuri
10 Pcs 64 Gb Memory Card (Kingston) @ Rs 4500
10 Pcs 32 Gb Memory Card (Samsung) @ Rs 3100
15 Pcs Card reader (Intex) @ Rs 70

May-1 Return to Mehta telecom
4 Pcs Samsung Galaxy J7 MAX
6 Pcs Nokia 6

May-2 Return to Abhit Telecom
2 Pcs 64 Gb Memory card (Kingston)
3 Pcs Card Reader (Intex)

Net Purchase - 23, 94,050 Purchase Return - 1,59,210

Purchase & Sales

Q-6 Prepare Purchase Book & Sales book of Ramesh Gupta who is dealer of stationery

2020

May-1 Purchase Goods from Mr. Sanjay Mehta, Delhi

100 ream white paper @ Rs 120 per ream

10 dozen inkpot @ Rs 90 per dozen

30 drawing board @ Rs 270 per Pcs

50 Pcs Chart Paper @ Rs 5 per Pcs

July 1 Sold to M/S stationery on credit
2 Ream white paper @ Rs 150 per ream

July 2 Sold to Mr. Puranchand
6 Dozen inkpot @ Rs 120 per dozen

July 2 Sold to Harshit Stationery
10 Drawing Board @ Rs 270 per Pcs

July 2 Sold to Mr. Sunil on credit

40 Pcs Chart Paper @ Rs 5 per Pcs

(Ans. → Purchase Book 21,250Rs, -Sales Book 3,920 Rs)

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Purchase - Sales &Sales Return

Q-7 Prepare Sale Return book of Mr Raman and from the following transaction.

Apr -1 Purchase from Arun Electronics, Bareilly

20 Pcs Cooler , Plastics @ Rs 4,000

10 Pcs Samsung Air conditioner , Split @ Rs 24,500

15 Pcs Samsung LED 32 inch @ Rs 28900

Apr-1 Sold ToAakash
2 Pcs samsung Air conditioner , Split @ Rs 27,500
3 Pcs Samsung LED 32 Inch @ 31,200

Apr-2 Akash Returned
1 Pcs. samsung Air conditioner

1 Pcs Samsung LED 32 Inch

Reason (Brokerage due to bad packing)

May-1 Sold to Mayank
May-2 2 Pcs Cooler @ Rs 5300

Mayank Returned
1 Pcs Cooler @ Rs 5300
(Reason: - out of order)

(Ans. →Purchase Book 7, 58,500 Sales Book 1, 59,200 Sales Return Book 64,000)

Q-8. Write up Purchases and Sales Books from the following transactions given for April 2017 and post

the totals to the ledger also:

2020

April 1 purchased goods from Ram Prasad. Bombay

100 Mtr Silk @ Rs. 45 per meter

75 MtrVelvet @ Rs. 80 per metre

April 1 Sold goods to Rati Ram, Ahmedabad
60 MtrSilk @ Rs. 50 per metre
50 MtrVelvet @ Rs. 82.50 per metre

April 1 Sold goods to Radhey Shyam, Delhi
30 MtrSilk @ Rs. 52.50 per metre
20 MtrVelvet @ Rs. 85 per metre

April 2 Roop Narain & Sons,Delhi Purchased from us
10 MtrSilk @ Rs. 60 per metre
5 MtrValvet @Rs. 87.50 per metre

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April 2 Purchased goods from Hari Ram & Sons Delhi
50 Pcs Prints @ Rs. 130 per piece
80 Pcs Colico @ Rs. 65 per piece

April 2 Purchased from Man Mohan Lal, Varanasi
Shirting Cloth
Saris Rs. 10,000
Rs. 60,000
April 2 Sold to Brij Mohan & Bros. Mathura
April 2 Shirting Cloth Rs. 7,000
Saris Rs. 25,000

Shri Ram & Bros. Hapur, Sold to us
Long cloth 10 pieces @ Rs. 1,000 per piece
Dhotis 100 parts @ Rs. 250 per pair

PURCHASE→ 1, 27,200 – SALES→43,437.50

Without Inventory (Sales and Purchase)

Q-9 Pass the following entry in Sales and Purchase Book with Return.

1. Purchase goods from Shyam on Credit Rs 10,000.
2. Purchase goods from Abhinav on credit Rs 20,000.
3. Sold goods to Ranjeet Rs 5,000
4. Sold goods to Mittal Rs 3,400.
5. Goods return by Abhinav Rs 2500.
6. Ranjeet Returned goods Rs 1,100.
7. Purchase goods from Vikas on credit Rs 3000, Discount 10%
8. Sold goods to Narayan Rs 4000, Discount 25%.

Note - press Ctrl + H (Accounting Invoice Mode)

Ans.
Total Purchase – 33,000 / Return 2500 Total Sales – 12,400 / Return 1,100.

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Text Question
• Purchase Following Item from Hemraj, All Below Item Discount 2%

Item Name QTY Price (Per Pcs)
Keyboard (HP) Wireless 50 699
Mouse (HP) Wire Less 50 599
LED 17 Inch (HP) 50 9999
Power Cable 100 50
UPS (INTEX) 50 1500
Ram 4 GB (Kingston) 40 1560
Ram 8 GB (Kingston) 40 2340
Hard disk 1 TB (WD) 40 4200
Hard Disk 500 GB (WD) 40 3500
Cabinet 100 1200
Gigabyte H319M - I7 Motherboard 30 4650
GigabyteGA-H110M -I5Motherboard 30 3990
Core i5 - 7400 - LGA7th Generation 30 12900
processor
Core i7 - 7700 8th Generation Processor 30 15600
DVD Writer (HP) 50 1100

Total Purchase - 23, 50,089

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BILL-WISE DETAILS

TALLY – Prime

What is Bill-Wise details?

Bill-wise details help us to track the details of all transaction with party-wise, payment, return good etc.
We can maintain different types of bill.

• New reference (At the time of Sales transaction and Purchase transaction)
• Advance (while received advance cash against Sales/Purchase Transaction)
• Against Reference (At the time of cash received against Sales transaction)
• On Account (At the time of interest charged on Party)

How to check Pending Amount (Ledger-wise)

Display More Report – Account Book – Ledger – Select Ledger –(check Closing Balance)

Practical Question

Question - 1

Check the Bill-wise Details of All party in following transaction.

1. Cash Balance 25000,Bank 35000

2. Purchase Goods from Mr. Hitesh 200 Pcs Lamp holder @ Rs 20.
3. Purchase Goods from Mr. Chetan 100 Pcs Tube light @ Rs 40.

4. Paid 20 Pcs Amount to Mr. Chetan.
5. Paid Half Amount to Mr. Hitesh

6. Return to Chetan 15 Pcs tube light (Reason - Out of order)

7. Sold goods to Mr. Mukesh 5 Pcs Tube light @ Rs 50 Per Pcs.

8. Purchase Goods from Mr. Hitesh 50 Pcs Fancy Light @ Rs 150 Pcs.

9. Sold goods to Mr. Sanjay 10 Pcs fancy Light @ Rs 200.

10. Received Cheque from Mr. Mukesh 4 Pcs Tube light Amount.
11. Received cash from My Sanjay Half Pcs fancy Light Amount

Check the Bill-wise details of Pending Amount Received / Payable

• Mr. Mukesh - 50 Rs Mr. Sanjay - 1000 Rs
• Mr. Hitesh - 9,500 Rs. Mr. Chetan - 2600 Rs

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Question - 2

Check the Bill-wise Details of All party in following transaction.

1. Cash Balance 50000 , HDFC Bank 400000, ICICI Bank 300000
2. Purchase LED 32 inch 5 Pcs @ Rs 29000 Through ICICI Bank from Mr. Jangid
3. Purchase 10 Pcs Refrigerator 225 LTR @ Rs 15600 from Mr. Rashid.
4. Sold good 1 Pcs LED 32 inch @ RS 31200 to Mr. Kunal and Received Payment in ICICI Bank
5. Sold goods to 2 Refrigerator to MK Electronics @ Rs 16200
6. Paid cash 2000 into HDFC Bank Account.
7. Issue 4 Pcs refrigerator Amount through HDFC Bank cheque to Mr. Rashid.
8. Return to Mr. Jangid 1 Pcs LED 32 inch and cash return company account against return.
9. Withdraw cash from ICICI Bank 10000
10. Paid carriage Rs 500 and Office rent Rs 12000
11. Received 20000 from MK Electronics in HDFC Bank

Cash Balance 45,500 Rs MK Electronics - 12,400 Rs
Mr. Rashid - 93,600 Rs
HDFC Bank Balance 3,59,600 Rs

ICICI Bank Balance 2,05,200 Rs

Question - 3

Check the Bill-wise Details of All party in following transaction
1. Cash Balance 90000 , HDFC Bank Balance 150000
2. Purchase Machinery worth Rs 30000
3. Paid office clerk salary Rs 40000 paid By HDFC Cheque

4. Purchase 10 Pcs Keyboard and 10 Pcs Mouse @ Rs 400 each from Mr.Naresh chand (Balaji

Computer Shop)
5. Paid half Pcs Amount each to Mr.Naresh chand by cash
6. Return 2 Pcs of Keyboard to Naresh chand(Reason: Defective)
7. Sold 4 Pcs Keyboard to Mr. Sujeet @ Rs 500
8. Sold 5 Pcs Mouse to Mr Naresh kumarby cash @ Rs 500 (Discount 4%)
9. Received 3 Pcs Amount in Hdfc Bank by Mr Sujeet and 1 Pcs Return being Defective
10. Purchase 10 Card Reader @ Rs 40 and 10 (8GB memory card) @ Rs 180 through HDFC

BankFrom Mr. Rakesh Telecom
11. Withdraw cash from bank Rs 5000.

Cash Balance 63,400 Mr Sujeet 0
Mr. Naresh chand 3200
HDFC Bank Balance 1,04,300

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Adjustment Entry

TALLY – Prime

What is Adjustment Entry?

Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust
expenses and revenues to the accounting period where they actually occurred. Some example is
outstanding rent, advance insurance, discount on debtor, interest on capital etc. All Adjustment Entry
describe below.

▪ Journal (F7)

All Adjustment entry done in Journal Voucher (Non-cash Transaction) which is recorded by pressing
F7 in Accounting voucher.

o Example-1

Depreciation charge 10% on machinery (Machinery cost 2, 00,000) / or any other
Depreciation charges on Assets

Depreciation on machinery A/c Dr.
Machinery A/c Cr

Note – Assets value is reduce (2, 00,000 – 20,000 = 1, 80,000) it show in Balance sheet but we
pass entry only 10% Amount = 20,000 and do same entry any other Assets (Deprecation on
machinery comes under – Indirect Expenses Ledger)

o Example-2

Outstanding Salary / Outstanding rent / Wages is due / Rent is due

Salary A/c Dr.
O/s Salary Cr

Note – Outstanding Salary or any other O/S Expenses comes under (Current Liability group).

Outstanding means company is liable to pay pending Expense amount.

o Example-3

Prepaid Salary / Prepaid rent / Advance Wages (or) Wages Include a sum of Rs 2000

Prepaid Salary Dr.
Salary Cr.

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Note – Prepaid Expenses Comes under (Current Assets group). Prepaid Means Company paid
Expenses in advance.

o Example-4

Interest on capital @ 10% (Capital 5, 00,000)

Interest on capital A/c Dr.
Capital Cr.

Note – (Interest on capital means Available capital is Decrease because of interest Amount – interest

on capital comes under (Indirect Expenses Group))

o Example-5

Provision on debtor @ 5% / Discount to Debtor @ 5% (Debtor = 50000)

Discount on debtor A/c Dr.
Debtor A/c Cr.

Note – (Debtor Amount is decrease while Company give discount on debtor or Provision on
debtor – Provision on debtor comes under (Indirect Expenses group))

o Example-6

Sales tax Rs 20,000 (Any kind of charges of Tax)

Sales Tax Dr.
Sales Cr.

Sales Tax comes under (Indirect Expenses)

o Example-7
Closing Stock Ledger Amount fill with Opening Stock ledger (Ledger-alter)

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Practical Question

Q.1 Create Book of Mr. Radhey Shyam and Prepared P&L andthe Balance sheet and trial balance of
the following transaction after adjustment.

LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Cash 540 Building A/c 30,000
Cash in bank 2,630 Freehold A/c 10,000
Purchase A/c 40,675 Machinery A/c 20,000
Sales A/c 98,780 Patents A/c 7500
Return Inward A/c 680 Salaries A/c 15,000
Wages A/c 10,480 Insurance A/c 600
Fuel & Power A/c 4,730 Drawing A/c 5,245
Carriage Outward 3,200 Capital A/c 71,000
Carriage Inward 2,040 Sundry Debtors A/c 14,500
Stock-in-hand 5,760 Sundry Creditors A/c 6,300
General expenses 3,000 Return outward 500

Take into accounts with following adjustment.
(a) Closing stock in Valued of Rs. 6800.
(b) Deprecation on Machine, Patents is 10% 20%.
(c) Outstanding Salaries Rs. 1500.
(d) Prepaid Insurance Rs.1500.
(e) Wages include a sum of Rs. 2000 which will be deduct.
(f) Reserve for Bad debts 5% on debtors. (Indirect Expenses).

Net Profit:-17690 Balance Sheet: -91,245 TrialBalance:-1, 78,980

Q.2 Form the following Trial Balance of Shri Gupta, Prepare P&L and Balance Sheet.

LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)

Capital 4,00,000 Rent 40,000

Drawings 50,000 Postage 25,000

Opening Stock 75,000 Loan (Cr.) 3,00,000

Purchase 4,20,000 Interest Given 20,000

Sundry Creditors 75,000 Furniture 3,50,000

Sundry Debtors 1,20,000 Motor Vehicles 1,00,000

Sales 8,10,000 Brand 60,000

Discount Given 16,000 Cash at bank 1,50,000

Discount Received 28,000 Cash 63,000

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Commission Given 12,000 Freight Inward 20,000
Purchase Return 20,000
Sales Return 16,000 Salaries 1,20,000

Direct income 10,000

Commission Received. 14,000

Other Information:
(1) Closing stock Rs. 1,70,000

(2) Sales Tax Rs.50,000

(3) Depreciation Furniture, Brand Name, Motor Vehicles 10% 20% 20% p.a.

(4) Salaries outstanding Rs. 12000, Salaries paid in advance Rs. 10000

Net Profit :- 2,19,000Balance Sheet :- 9,56,000Trial Balance :-17,19,000

Q.3 From the following Trial Balance of Megha&Co. Trial Balance, Trading & profit and Loss accounts

for the year ended on 31st March 2017Balance Sheet as on the data.

LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)

Capital 10,000 Manufacture Expenses 800

Creditors 1,200 Trade Expenses 700

Return Outwards 500 Bad Debts 200

Sales 16,400 Carriage Inwards 150

Bills payable 500 Return Inwards 400

Plant & machinery 4,000 Bank 1,000

Debtors 2,400 Repairs 50

Drawings 1,000 Opening Stock 2,000

Purchase 10,500 Rent 400

Wages 5,000

Other Information:

1. Depreciation on Plant &Machinery Rs. 400.

2. Interest on Capital 5% and Outstanding Repairs Rs. 40.

3. Closing stock will be values Rs. 1450.

Net Loss: 2,790 Balance Sheet :-11,240 Trial Balance :-29,140

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Q.4 From the following Trial balance of M/s Amar &Co. Trial balance,Trading &Profit & LossAccounts
for the year ended on 31st March 2017Balance Sheet as on the data.

LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Capital 80,000
Drawing 6,000 Discount 200
Opening stock 45,000
Purchase 2,60,000 Bad Debts 1,600
Sales 3,10,000
Furniture 10,000 Provisioning for bad debts 900
Sundry Debtors 40,000
Freight 4,600 Creditors 20,000
Trade expenses 500
Salaries 5,500 Cash 5,200
Rent 2400
Bank 5,800

Goodwill 20,000

Commission Received 1,300

Advertising Expenses 5,000

Insurance Premium 400

Other information:

1) Closing stock Rs.53000
2) Salaries have been only for 11 months (Outstanding only for one month)
3) Prepaid insurance Rs.100.
4) Prepaid commission Rs. 122.
5) Reserve for bad debts up to 3% on sundry debtors.
6) Furniture is depreciated@ 10% P.A.
7) Prepaid Advertising 75%.

Net Profit: -39,472 Balance sheet:-1, 35,772. Trial balance: -4, 13,722

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Solution –

Question 1 (Adjustment Entry)

a) Closing Stock Pass with Opening Stock (Ledger – Alter)

b)

Dep. On machine Dr. 2000
Machine Cr. 2000

Dep. On Patent Dr. 1500
Machine Cr. 1500

Note - Depreciation Ledger comes under – Indirect Expenses

c) Dr. 1500
Salary Cr. 1500
Outstanding salary

Note - Outstanding Ledger comes under – Current Liabilities

d)

Prepaid Insurance Dr. 1500

Insurance Cr. 1500

Note–Prepaid/Advance Ledger comes under – Current Assets

e) Dr. 2000
Advance Wages Cr. 2000
Wages

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f)

Discount on debtor Dr. 725

Debtor Cr. 725

Note – Discount on Debtor Ledger comes under – IndirectExpenses.

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Transfer of Material

(Tally –PRIME)

Stock Transfer Analysis gives the movement details of each type of Stock Journal. This can be
used powerfully by following a simple discipline of using different Stock Journal types for each
'nature' of transaction. We can manage our stock – Godown wise and check the report of
available stock.

*Note - (Set Date According to Current Year)

• Step 1– Create Company.

• Step 2– Set Inventory details as per following points.

 Gateway of Tally→ Create - Inventory Masters

Godown/Location → Delhi, UP
Stock Group →furniture
Units of measure → Pcs

Stock item Details

Item QTY Price Godown
Delhi
Chair 400 450 Delhi

Table 500 600

• Step 3 –Stock Summary – Enter on furniture – Press (Alt + F1)Details of Items
with Location

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• Step 4–Transfer half PCS Chair and 170 Table to UP Location.

Transport Expenses charges RS 300 on Transfer Item to UP and distribute 50% amount in
Chair and 50% in Table (Transport charges)

o Create - Ledger – Transport Expenses under Indirect Expenses

Note - Enable - Track additional cost of Purchase
Goto - Alter - Voucher Types - Select Stock Journal

Gateway of Tally - Voucher - Press Alt+F7 Key for Transfer of Material

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• When Destination item is pass – Ask for Any other charges - Pass here transport charges
50% amount because 2 item transfer to other place- Equally % Charges amount divide into
all transfer item for effect cost rate of item.

• Pass same as other item and save the Stock Journal voucher.

Step 5–Check stock summary status for Item with Godown and Cost Price changes.

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• Up – Chair amount increase .75 Paisa and Table amount increase .88 Paisa after Transfer
of material from one Godown to another Godown

Q-1 Ram who is dealer of stationery, opening Balance of following Items

Register →2000 Pcs @ 40RS Per Pcs

Penset → 1000 Pcs @ 30 RS Per Pcs

Above item in Delhi Godown and one fourth of all above item transferred to Mumbai Godown.

Sold Register 100 Pcs to Ramesh @ Rs. 80 Per Pcs (From Delhi)
Sold Penset 120 Pcs to Mahesh @ Rs. 60 Per Pcs(From Delhi)
Check the summary of remaining item – Godown wise

Sol-

Q-2 Maintain Stock-Wise Details after Transfer of Material, and calculate Net profit and Stock
Summary

Hard disk (500 GB) → 200 Pcs @ 3440 Rs
Hard disk (1 TB) → 400 Pcs @ 5430 Rs
Ram (1 GB) → 800 Pcs @ 1100 Rs
Ram (2 GB) → 1200 Pcs @ 1670 Rs
Samsung LCD 15 inches → 350 Pcs @ 3450 Rs
Samsung LCD 18’5 Inches → 700 Pcs @ 7600 Rs

• Hard Disk Godown is Noida-Sector 63
• Ram Godown is Noida-Sector 61
• Samsung LCD Godown is Noida-Sector 62

Transferred

• Hard disk(1TB) 30 Pcs to Noida – Sector 62 and Hard disk (500 GB) 20 Pcs to Noida-sec-61
• Ram(1 Gb) Transferred Half Pcs to Noida-Sec-62

• Samsung 15 inches 50 Pcs transferred to Noida sec-61 and 35 Pcs transferred to Noida-sec-63

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Sold Item to

• Mr Ajeet Kumar 10 Pcs (Hard disk 1 Tb) @ 5600 from Noida-sec-62

• Mr Kunal Rana 5 Pcs Ram (1 Gb) @ 1350 from Noida-Sec-61

• Mr Anuj Mehta 10 Pcs of Samsung LCD 18.5’inches @ 8100 on 2% Discount source
godown is Noida -sector -62

Q-3 Maintain Stock and Calculate cost of items after transfer of material.
Purchase goods from Shyam & Brothers. (Maintain in Shahdara Godown)

• 1000 Pcs T-shirt @ Rs 350
• 1000 Pcs Trousers. @ Rs 250
Half Pcs transferred to Yamuna vihar Godown and set Expenses on Transfer goods
• 800 Rs. Freight charges (Distribute half/half amount both item)
• 200 Rs. Loading Charges. (Distribute half/half amount both item)
Check the New Rate of Product in Yamuna Vihar Godown.?

Note – Create fright and loading charges Under – Indirect expenses Distribute amount 50% in T-shirt
transfer and 50% in Trouser transfer)

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TALLY-PRIME

Manufacture Process Accounting

Manufacture Process is used for produce a final product include its related items,
in this process some items might be damage/scrap for making final product.

For E.G if we produce BESAN(Final Item) using CHANA DAL(item) then we can go
through the manufacture process on which date final product produced or what is
the balance of remaining item. If we produce BESAN using 1 kg. CHANA DAL, we
assume that 50gm scrap in this process.

Example of related manufacture process is given below step by step (practically)

Step-1 *Note - (Set Date According to Current Year)

• Create new company

Step-2

• Create Partyledger (under-Sundry Creditor) E.g. VIKAS
• Create Purchase Ledger (Under Purchase A/c)

Step-3

• Create - Inventory Masters
o Units - K.g (Decimal Place - 3)
o Another units of measure - Grm(Grams)

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o STOCK ITEM
▪ CHANA DAL

• Press F12, in Stock item creation mode

• Set above following option 'Yes' for making BOM (BILL of material) and Alternate
units of stock item

o STOCK ITEM
▪ Chana Dal Wastage (This item for display only scrap while manufacture
process)

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o STOCK ITEM
▪ BESAN (if alternate units and BOM not show) Press F12 - activate

• Pass BOM Name After select BOM 'Yes'

• We take 1 kg example in manufacture process, 50 Grm CHANA
DALwastage. set all details and scrap details

• Note - Press F12 to show define type of component set - YES
• Now make a Voucher for manufacture Process Entry

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Step-4
Create - Voucher types

• Type of voucher - Stock journal and Set Manufacture Journal 'Yes'

Step-5
➢ Purchase 1000 Kg CHANA DAL from VIKAS@ Rs 40. Per Kg

• Check Stock Summary before manufacture Product.

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➢ Gateway of tally - Stock Summary

Step-6
➢ Pass Ledger - Grinder Expenses for CHANA DAL in Manufacture process 3
Rs Per kg , assume we process 40kg BESAN process It means 120 Rs to be
charges in Grinder Expenses which pass in Manufacture Voucher.

➢ All wastage related manufacture process show in CHANA DAL (wastage)
Item in Stock summary.

Step-7
➢ Pass Manufacture voucher , Press Alt+F7 Key in Accounting voucher and
select (BESAN Manufacture)

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• Name of Product - BESAN and Fill Qty 40 Kg
• Grinder charges - 120 Rs

• Check Stock Summary from Gateway of Tally

➢ Now Besan Price is 45 Rs per Kg (including scrap and Grinder Exp) , we can
set any other expenses related to Manufacture Process.
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Practice Question

Q-1 Mr. Visnu Dealer of Computer , Create a manufacture process of Computer
(final Product) Including Items related computers.

• Stock Item
o Keyboard (HP) Wireless
o Mouse (HP) Wire Less
o LED 17 Inch (HP)
o Power Cable
o UPS (Intex)
o Ram 4 GB (Kingston)
o Ram 8 GB (Kingston)
o Hard disk 1 TB (WD)
o Hard Disk 500 GB (WD)
o Cabinet
o Gigabyte H319M - I7 Motherboard
o GigabyteGA-H110M -I5Motherboard
o Core i5 - 7400 - LGA7th Generation processor
o Core i7 - 7700 8th Generation Processor
o DVD Writer (HP)

Computer I5 PC (Items) Computer I7 (Items)

• Keyboard (HP) Wireless • Keyboard (HP) Wireless
• Mouse (HP) Wire Less • Mouse (HP) Wire Less
• LED 17 Inch (HP) • LED 17 Inch (HP)
• Power Cable • Power Cable
• Cabinet • Cabinet
• Hard Disk 500 GB (WD) • Hard Disk 1 TB (WD)
• DVD Writer (HP) • DVD Writer (HP)
• UPS (Intex) • UPS (Intex)
• Gigabyte GA-H110M I5Motherboard • Gigabyte H319M - I7 Motherboard
• Core i5 - 7400 - LGA7th Generation • Core i7 - 7700 8th Generation

processor Processor
• Ram 4 GB • Ram 8 GB

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• Purchase Following Item from Mr.Hemraj, All Below Item discount 2%

Item Name QTY Price (Per Pcs)
Keyboard (HP) Wireless 50 699
Mouse (HP) Wire Less 50 599
LED 17 Inch (HP) 50 9999
Power Cable 100 50
UPS (Intex) 50 1500
Ram 4 GB (Kingston) 40 1560
Ram 8 GB (Kingston) 40 2340
Hard disk 1 TB (WD) 40 4200
Hard Disk 500 GB (WD) 40 3500
Cabinet 100 1200
Gigabyte H319M - I7 Motherboard 30 4650
GigabyteGA-H110M -I5Motherboard 30 3990
Core i5 - 7400 - LGA7th Generation 30 12900
processor
Core i7 - 7700 8th Generation Processor 30 15600
DVD Writer (HP) 50 1100

• Manufacture 15 Pcs i5 Computer and 18 Pcs i7 Computers on 2nd April

• Assembling charges on i5 Computer is 300 RsPer Pcs and i7 Computer 500
Per Pcs.

Find out What is the final cost Price of i5 Per Pcs and i7 Per Pcs ?
Ans - I-5 PC Price (36,655.06) and I-7 Price (41,598.26)

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Q-2 XYZ Atlas Cycle PVTLTD. Show the manufacture Process of CYCLE Production

• Labour charges for(1 Cycle) Per Pcs is Rs 250

Firm opening Balance Qty is2000 for All Items ,and Item rate is mentioned below
with item.

Item Name Price Per Pcs (Rs.)
Frame Cycle 800
Paddle 40
Handle 120
Break set 100
Chain set with Cover 150
Tire 200
Tube 90
Rim 350
Lock 80
Bell 40
Seat 100

Products include following items.(Per Pcs) 1 Units Manufacture

Cycle (Per Pcs Units) Item Consumed per Pcs
Cycle Manufacture
Frame Cycle 1
Paddle 2
Handle 1
Break set 2
Chain set with Cover 1
Tire 2
Tube 2
Rim 2
Lock 1
Bell 1
Seat 1

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• Manufacture 10 Pcs Cycle and find out the cost price of Bicycle
Ans - 3100RsPer Cycle

Q-3 Calculate the Per Pcs Water Tap Amount and create manufacture process of
water tap including its related component and labour charges

• Neelkamal Water Tap (Product Final)

Purchase Components (Item) from Mr. Sanjay on 1st April

• Peetal(kg / Grm) 3 Decimal place 200 Kg 700 Rs (Kg)
• Varsel 100 Pcs .50 Paisa
• Box 100 Pcs 2 Rs Pcs
• Poly Bags 100 Pcs .80 Paisa

Per Pcs Manufacture Item consume (Neelkamal Water Tap)

• 600 GrmPeetal (100 Grm Wastage)
• 2 Varsel
• 1 box
• 2 Polybags

Other Charges (Expenses)

• 20 Rs Per Pcs Melting Charges
• 10 Rs Labour charges Per Pcs
• 200 Rs Transport Charges one time manufacture Process.

Manufacture 20 Pcs and Find out the Per PCS Amount of Neelkamal Water Tap ?

Ans - 464.60

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Purchase Order – Process

Tally-PRIME

What is Purchase Order?

Purchase order (PO) is a commercial document issued by a buyer to seller (Supplier), indicating
type, Quantities, and agreed price for product or services the seller will provide to the buyer.
Sending a purchase order to a supplier constitutes a legal offer to buy products or services.
Acceptance of a PO by a seller usually forms a once-off contract between the buyer and seller,
so no contract exists until the PO is accepted.

Example *Note - (Set Date According to Current Year)

Step-1

• Create new company(Pritam Garments) - Gateway of Tally - Accounting Voucher
- Press F10 Key

• set Activate Purchase order, Receipt note and Rejection out process, Ignore if
already Activate because it is disable before using 1st time.

• Click on Inactive command, and Activate same as below

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Step-2

• Create Supplier(Set Bill by Bill ‘Yes’) and Purchase Ledger

Step-3

• Define Item Group, Units of Measure , Category , Godown and Stock Item as required.

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