Tally Project 1
Tally Project 1
Each of the fields in the Company Creation screen is explained below. To navigate between the
fields, use the Enter key, the Tab key, the arrow keys or the mouse.
Mailing Name: Usually, Company Name and the Universal Business Solutions.
Mailing Name are the same, but Tally allows a
different mailing name where needed.
Address: Fill in the company address details. No.18, Roosevelt Road, Sector-4, Banga-
The address field is optional. lore.
Note:Tally picks up the mailing name and address details in any report, which needs to have
the company name and address such as balance sheets, statement of accounts, etc.
State: Select the appropriate state from the List Select Karnataka from the ‘List of States’
of States. displayed.
PIN Code: Enter the PIN code of the specified 560018.
address. This field is optional
E-mail Address: E-mail address will be used to [email protected].
e-mail documents, reports and data from Tally.
This field is optional.
Use Indian VAT?: Set to Yes for the companies No.
which are located in the state where VAT is appli-
cable. If VAT is not applicable, the field is set to
No.
Applicable From: Enter the date from which VAT --
is applicable
Note: Only if VAT is activated, the field Applicable From appears on the screen.
VAT TIN: Enter the VAT TIN number. The Tax- Skips field automatically.
payer’s Identification Number (TIN) consists of 11
digits. The first two digits represent state code as
used by the Union Ministry of Home Affairs. This
field is optional.
Local Sales Tax number: Enter the local sales Skip field – do not enter any details.
tax number. The local sales tax number refers to
the registration number allotted by Local (State)
Sales Tax Authorities. The details given here con-
tain of a number and the date of registration. This
information, if given, can be printed on invoices.
This field is optional. It is automatically skipped if
VAT is enabled.
Inter-state Sales Tax number: Enter the inter-
state sales tax number. The interstate sales tax Skip field – do not enter any details.
number refers to the registration number allotted
by Central Sales Tax Authorities. The details
given here comprise of a number and the date of
registration. This information, if given, can be
printed on invoices. This field is optional.
Income Tax number: Enter the income tax Skip field – do not enter any details.
number. The Income Tax Number is the number
allotted by the Income Tax Authorities. In India,
this could be the Permanent Account Number
that comprises 10 digits and may be alphanumer-
ical. This field is optional.
Currency Symbol: Tally displays Rs. by default. Rs. (pre-defined).
This cannot be modified at the time of the crea-
tion of the company.
Maintain: This field is used to specify which sec- Accounts Only.
tions of Tally your company would like to use.
Tally displays two options – Accounts Only and
Accounts with Inventory.
MAINTAIN
Option Description
Accounts only Only Financial Accounts of the company.
Accounts-with-Inventory Both Financial Accounts and Inventory
Records of the company.
7) 15-4-2004 Ms. Kapur issued cheques and purchased the following fixed assets.
1. A cell phone for office usage for Rs.6,000 (useful life 5 years).
2. Furniture for Rs.20,000 (useful life 8 years).
3. An Air conditioner for Rs.20,000 (useful life 6 years).
4. Electrical Fittings for Rs.15,000 (useful life 10 years).
The assets do not have any disposal value at the end of their useful
life.
8) 16-4-2004 Ms. Kapur obtained a mobile phone subscription with Planet Tele-
communications Ltd. by paying a deposit of Rs.3,000 in cash.
9) 20-4-2004 Ms. Kapur purchased stationery consumables worth Rs.12,500 from
Global House on credit.
10) 21-4-2004 Ms. Kapur entered into a contract with Silver Services for providing
consultancy services at an agreed price of Rs.75,000. She received
an advance of Rs.25,000 by cheque.
11) 23-4-2004 Ms. Kapur deposited Rs.50,000 cash in HDFC Bank.
12) 25-4-2004 Ms. Kapur received an invoice for Rs.6,000 raised by Ink and Paper
Publishers for printing of office stationery.
13) 27-4-2004 Ms. Kapur withdrew Rs.7,500 cash for personal use.
14) 30-4-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for April 2004.
MAY 2004
15) 1-5-2004 Ms. Kapur paid Rs.6,000 in cash to Ink and Paper Publishers.
16) 5-5-2004 Ms. Kapur paid Rs.2,500 by cheque towards office rent for April
2004.
17) 6-5-2004 Ms. Kapur paid salaries through cheque for Apri 2004 (25 days) to
1. Maya Nair Rs.6,500.
2. Vijay Narayan Rs.3,900.
18) 7-5-2004 Ms. Kapur received and paid mobile phone bill amounting to
Rs.1,250 in cash for April 2004.
19) 10-5-2004 Ms. Kapur issued cheque of Rs.12,500 to Global House.
20) 12-5-2004 Ms. Kapur paid Rs.1,100 in cash towards electricity charges for April
2004.
21) 14-5-2004 Ms. Kapur received further advance of Rs.25,000 from Silver Serv-
ices by cheque.
22) 15-5-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.650 in cash
to Vijay Narayan.
23) 18-5-2004 Ms. Kapur paid Rs.150 in cash towards miscellaneous office
expenses.
24) 20-5-2004 Ms. Kapur received Rs.15,000 of consulting revenue in cash from
Omega Infotech.
25) 25-5-2004 Ms. Kapur raised an invoice for Rs.75,000 on Silver Services after
completion of the service. Silver Services paid the balance amount of
Rs.25,000 in cash after deducting the advance paid.
26) 28-5-2004 Ms. Kapur withdrew Rs.6,000 cash for personal use.
JUNE 2004
27) 3-6-2004 Ms. Kapur paid Rs.2,500 in cash towards office rent for May 2004.
28) 4-6-2004 Ms. Kapur paid salaries by cheque for May 2004.
29) 5-6-2004 Ms. Kapur received an invoice for Rs.5,500 from Raj Travels. This
includes Rs.2,300 towards cab hiring charges and Rs.3,200 towards
outstation tours undertaken by her.
30) 9-6-2004 Ms. Kapur received Rs.35,000 in cash as consulting revenue from
Eateries Food Chain.
31) 10-6-2004 Ms. Kapur deposited Rs.30,000 cash in HDFC Bank.
32) 15-6-2004 Ms. Kapur paid mobile phone bill amounting to Rs.1,350 by cheque
for May 2004.
33) 16-6-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.750 in cash
to Vijay Narayan.
34) 20-6-2004 Ms. Kapur paid Rs.1,250 in cash towards electricity bill charges for
May 2004.
35) 21-6-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for May 2004.
36) 23-6-2004 Ms. Kapur paid Rs.3,000 in cash as salary advance to Maya Nair.
37) 27-6-2004 Ms. Kapur withdrew Rs.6,000 cash for personal use.
JULY 2004
38) 3-7-2004 Ms. Kapur raised an invoice for Rs.65,000 on Alfatech Solutions for
services provided.
39) 6-7-2004 Ms. Kapur subscribed for the ‘Management Consultant’ journal by
paying Rs.2,400 by cheque. The subscription period is from July
2004 to June 2006.
40) 7-7-2004 Ms. Kapur paid salaries for June 2004 by cheque. Salary advance
paid to Maya Nair is adjusted against the salary paid.
41) 10-7-2004 Ms. Kapur paid office rent by cheque for June 2004.
42) 15-7-2004 Ms. Kapur received Rs.35,000 by cheque from Alfatech Solutions.
43) 18-7-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for June 2004.
44) 19-7-2004 Ms. Kapur paid Rs.850 in cash towards electricity charges for June
2004.
45) 20-7-2004 Ms. Kapur paid Rs.1,650 by cheque as mobile phone bill charges for
June 2004.
46) 25-7-2004 Ms. Kapur reimbursed conveyance bills for Rs.550 in cash to Vijay
Narayan.
47) 28-7-2004 Ms. Kapur withdrew Rs.6,500 cash for personal use.
AUGUST 2004
48) 1-8-2004 Ms. Kapur paid by cheque Rs.6,000 for insurance of fixed assets.
The period of insurance is from August 1, 2004 to July 31, 2005.
49) 2-8-2004 Ms. Kapur received Rs.30,000 in cash as consulting revenue from
WorldX Multimedia.
50) 5-8-2004 Ms. Kapur paid salaries for July 2004 by cheque.
51) 10-8-2004 Ms. Kapur paid office rent for July 2004 by cheque.
52) 12-8-2004 Ms. Kapur withdrew Rs.25,000 cash from HDFC Bank.
53) 14-8-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for July 2004.
54) 16-8-2004 Ms. Kapur raised an invoice for Rs.50,000 on MediaLive Productions
for services provided. The terms of credit are 30 days.
55) 18-8-2004 Ms. Kapur paid Rs.950 in cash towards electricity charges for July
2004.
56) 20-8-2004 Ms. Kapur paid Rs.2,100 by cheque towards mobile phone bill
charges for July 2004.
57) 21-8-2004 MediaLive Productions settled the bill for a final amount of Rs.48,000
by paying Rs.20,000 in cash and Rs.28,000 by cheque.
58) 27-8-2004 Ms. Kapur withdrew Rs.7,000 cash for personal use.
59) 28-8-2004 Ms. Kapur received Rs.30,000 by cheque from Alfatech Solutions.
60) 29-8-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.1,200 in
cash to Vijay Narayan.
SEPTEMBER 2004
61) 2-9-2004 Ms. Kapur paid Rs.3,800 in cash for repairs and maintenance of
office premises.
62) 5-9-2004 Ms. Kapur paid salaries for August 2004 by cheque. Since Maya Nair
was on leave for 15 days, she was paid one half-month’s salary.
63) 8-9-2004 Ms. Kapur paid office rent for August 2004 by cheque.
64) 9-9-2004 Ms. Kapur received invoice for Rs.7,600 from Raj Travels. This
includes Rs.3,150 towards cab hiring charges and Rs.4,450 towards
outstation tours undertaken by her.
65) 12-9-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for August 2004.
66) 15-9-2004 Ms. Kapur received Rs.25,000 in cash as consulting revenue from
Cam and Cut Productions.
67) 17-9-2004 Ms. Kapur paid Rs.1,300 in cash towards electricity charges for
August 2004.
68) 20-9-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.500 in cash
to Vijay Narayan.
69) 23-9-2004 Ms. Kapur paid Rs.10,000 by cheque to Raj Travels.
70) 24-9-2004 Ms. Kapur paid Rs.1,750 by cheque towards mobile phone bill
charges for August 2004.
71) 28-9-2004 Ms. Kapur withdrew Rs.5,500 cash for personal use.
OCTOBER 2004
72) 3-10-2004 Ms. Kapur received Rs.50,000 by cheque as consulting revenue
from Xceed International Couriers.
73) 5-10-2004 Ms. Kapur paid office rent for September 2004 by cheque.
74) 7-10-2004 Ms. Kapur withdrew Rs.30,000 cash from HDFC bank.
75) 8-10-2004 Ms. Kapur paid salaries for September 2004 by cheque.
76) 10-10-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for September 2004.
77) 12-10-2004 Ms. Kapur purchased stationery items worth Rs.1,600 in cash.
78) 15-10-2004 Ms. Kapur received Rs.15,000 in cash as consulting revenue from
Samaritan Products.
79) 18-10-2004 Ms. Kapur paid Rs.1,700 in cash towards electricity charges for Sep-
tember 2004.
80) 20-10-2004 Ms. Kapur paid Rs.2,300 by cheque towards mobile phone bill
charges for September 2004.
81) 23-10-2004 Ms. Kapur introduced further capital into the firm by bringing in cash
of Rs.1,00,000.
82) 24-10-2004 Ms. Kapur deposited cash amounting Rs.75,000 in HDFC bank.
101) 8-12-2004 Ms. Kapur received invoice from Raj Travels for Rs.6,200. This
includes Rs.3,000 towards cab hiring charges and Rs.3,200 towards
outstation tours undertaken by her.
102) 9-12-2004 Ms. Kapur received Rs.50,000 by cheque as Consulting Revenue
from Unigrand Technologies.
103) 10-12-2004 Ms. Kapur withdrew Rs.30,000 cash from HDFC Bank.
104) 11-12-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for November 2004.
105) 15-12-2004 Ms. Kapur purchased Rs.12,000 worth office equipments on credit
from Transform Tech Pvt. Ltd. The asset does not have any disposal
value after its useful life of 6 years.
106) 16-12-2004 Ms. Kapur paid Rs.1,450 by cheque towards mobile phone bill
charges for November 2004.
107) 18-12-2004 Ms. Kapur paid Rs.850 in cash towards electricity bill charges for
November 2004.
108) 20-12-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.1,100 in
cash to Vijay Narayan.
109) 23-12-2004 Ms. Kapur paid Rs.12,000 by cheque to Transform Tech Pvt. Ltd.
110) 24-12-2004 Ms. Kapur raised invoice for Rs.42,500 on InGroove Designers for
consultancy services.
111) 25-12-2004 Ms. Kapur received Rs.15,550 in cash from Trishul Software Solu-
tions.
112) 28-12-2004 Ms. Kapur withdrew Rs.6,000 cash for personal use.
113) 30-12-2004 Ms. Kapur paid Rs.7,500 by cheque towards professional charges for
internal audit of accounts.
JANUARY 2005
114) 3-1-2005 Ms. Kapur paid office rent for December 2004 by cheque.
115) 5-1-2005 Ms. Kapur received Rs.30,000 in cash from InGroove Designers.
116) 6-1-2005 Ms. Kapur paid salaries for December 2004 by cheque.
117) 10-1-2005 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for December 2004.
118) 12-1-2005 Ms. Kapur received Rs.35,000 by cheque as consulting revenue
from Ala Carte Investments.
119) 15-1-2005 Ms. Kapur withdrew Rs.50,000 capital from the firm by cheque.
120) 18-1-2005 Ms. Kapur paid Rs.2,300 by cheque as mobile phone bill charges for
December 2004.
121) 20-1-2005 Ms. Kapur paid Rs.1,050 in cash towards electricity charges for
December 2004.
122) 23-1-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs.1,800 in
cash to Vijay Narayan.
123) 30-1-2005 Ms. Kapur withdrew Rs.8,000 cash for personal use.
FEBRUARY 2005
124) 5-2-2005 Ms. Kapur paid office rent for January 2005 by cheque.
125) 6-2-2005 Ms. Kapur paid salaries for January 2005 by cheque.
126) 10-2-2005 Ms. Kapur received invoice from Raj Travels for Rs.9,400. This
includes Rs.3,800 towards cab hiring charges and Rs.5,600 towards
outstation tours undertaken by her.
127) 11-2-2005 Ms. Kapur paid Rs.20,000 by cheque to Raj Travels.
128) 12-2-2005 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for January 2005.
129) 15-2-2005 Ms. Kapur paid Rs.1,600 by cheque towards mobile phone bill
charges for January 2005.
130) 18-2-2005 Ms. Kapur paid Rs.1,200 in cash towards electricity bill for January
2005.
131) 20-2-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs.1,150 in
cash to Vijay Narayan.
132) 24-2-2005 Ms. Kapur purchased stationery consumables worth Rs.7,400 on
credit from Global House.
133) 28-2-2005 Ms. Kapur withdrew Rs.7,000 cash for personal use.
MARCH 2005
134) 3-3-2005 Ms. Kapur paid salaries by cheque for February 2005.
135) 5-3-2005 Ms. Kapur paid office rent for February 2005 by cheque.
136) 8-3-2005 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for February 2005.
137) 10-3-2005 Ms. Kapur received Rs.30,000 in cash as consulting revenue from
Eye Television Network.
138) 12-3-2005 Ms. Kapur paid Rs.1,450 in cash towards electricity bill for February
2005.
139) 15-3-2005 Ms. Kapur paid Rs.1,900 by cheque towards mobile phone bill
charges for February 2005.
140) 18-3-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs.950 in cash
to Vijay Narayan.
141) 20-3-2005 Invoice received from Global House on 24th of February 2005 had a
totaling error and was overvalued by Rs.600.
142) 21-3-2005 Ms. Kapur paid Rs.6,800 by cheque to Global House.
143) 25-3-2005 Ms. Kapur withdrew Rs.6,500 cash for personal use.
PROVISION ENTRIES
144) 1-4-2005 Ms. Kapur received Rs.20,000 cash as consulting revenue from
ForeC Marketing Solutions. The services had already been pro-
vided in March 2005.
145) 2-4-2005 Ms. Kapur paid office rent for March 2005 by cheque.
146) 5-4-2005 Ms. Kapur paid salaries by cheque for March 2005.
147) 7-4-2005 Ms. Kapur paid Rs.750 in cash towards office maintenance
charges for March 2005.
148) 12-4-2005 Ms. Kapur paid Rs.1,690 by cheque towards mobile phone bill
charges for March 2005.
149) 15-4-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs.950 in
cash to Vijay Narayan. The bills pertain to March 2005.
150) 18-4-2005 Ms. Kapur received invoice from Raj Travels for Rs.6,600. This
includes Rs.2,900 towards cab hiring charges and Rs.3,700
towards outstation tours undertaken by her. The bill pertains for
February 2005 and March 2005.
151) 20-4-2005 Ms. Kapur paid Rs.870 in cash towards electricity bill for March
2005.
DEPRECIATION ENTRIES
Sl. Asset Date of Value Useful Annual No. of Depreci-
No. name purchase to be life depreci- days ation
depreci- (in ation (a)/ used in for
ated (a) years) (b)=(c) the year
(d) 2004-05
(b) (c)*(d)/
365=(e)
1) Computer 2-4-2004 22,500 4 5,625 364 5,610
2) Cellular 15-4-2004 6,000 5 1,200 351 1,154
Phone
3) Furniture 15-4-2004 20,000 8 2,500 351 2,404
4) Air Condi- 15-4-2004 20,000 6 3,333 351 3,205
tioner
5) Electrical 15-4-2004 15,000 10 1,500 351 1,442
Fittings
6) Office 15-12-2004 12,000 6 2,000 107 586
Equipments
Total 14,401
Disposal value for all assets = 0.
Value to be depreciated (a) is same as the purchase cost.
CLOSING ENTRY
SL. NO. TRANSACTION
1) Transfer balance of profit and loss account to Nandini Kapur Capital account.
ii Practice Exercise
Nandini Kapur’s transactions for the year 2005 - 2006 are as follows. You are required to:
Record the transactions.
Prepare financial statements.
Click F1: Detailed or Press ALT+F1 to drill down to the next level of the grouped information.
Figure 5.13 Detailed Trial Balance –1st April’04 to 30th April ‘04
1. You can drill down from a group for further details of that particular group.
Click F4: Group to view the list of groups available in Tally.
Select Fixed Assets and press Enter to view the group summary of fixed assets.
SL NO DATE TRANSACTIONS
JUNE 2004
27) 3-6-2004 Ms. Kapur paid Rs.2,500 in cash towards office rent for May 2004.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses 2,500.
Credit: Cash 2,500.
28) 4-6-2004 Ms. Kapur paid salaries by cheque for May 2004. (refer to transaction
number 5.)
35) 21-6-2004 Ms. Kapur paid Rs.750 in cash towards office maintenance charges
for May 2004.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Office Maintenance Expenses 750.
Credit: Cash 750.
36) 23-6-2004 Ms. Kapur paid Rs.3,000 in cash as salary advance to Maya Nair.
i. Create ledger Salary Advance (under Loans & Advances [asset]).
ii. Make an entry of the transaction in a Payment Voucher.
Debit: Salary Advance 3,000.
Credit: Cash 3,000.
37) 27-6-2004 Ms. Kapur withdrew Rs.6,000 cash for personal use.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Withdrawals 6,000.
Credit: Cash 6,000.
Trial Balance until June 2004
68) 20-9-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs.500 in cash
to Vijay Narayan.
Make an entry of the transaction in a Payment Voucher.
Debit: Conveyance Expenses 500.
Credit: Cash 500.
69) 23-9-2004 Ms. Kapur paid Rs.10,000 by cheque to Raj Travels.
Make an entry of the transaction in a Payment Voucher.
Debit: Raj Travels 10,000.
Credit: HDFC Bank 10,000.
70) 24-9-2004 Ms. Kapur paid Rs.1,750 by cheque towards mobile phone bill charges
for August 2004.
Make an entry of the transaction in a Payment Voucher.
Debit: Telephone Expenses 1,750.
Credit: HDFC Bank 1,750.
71) 28-9-2004 Ms. Kapur withdrew Rs.5,500 cash for personal use.
Make an entry of the transaction in a Payment Voucher.
Debit: Withdrawals 5,500.
Credit: Cash 5,500.
Trial Balance until September 2004
SL NO DATE TRANSACTIONS
NOVEMBER 2004
85) 1-11-2004 Ms. Kapur withdrew Rs.8,000 cash for personal use.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Withdrawals 8,000.
Credit: Cash 8,000.
86) 2-11-2004 Ms. Kapur received an invoice for Rs.7,200 from Raj Travels. This
includes Rs.2,800 towards cab hiring charges and Rs.4,400 towards
outstation tours undertaken by her.
SL NO DATE TRANSACTIONS
DECEMBER 2004
98) 3-12-2004 The statement received from HDFC bank shows that the bank has
charged Rs.550 as cheque bouncing charges and Rs.330 as cheque
book charges. Cheque bouncing charges are to be recovered from
Trishul Software Solutions (refer transaction number 92).
SL NO DATE TRANSACTIONS
JANUARY 2005
114) 3-1-2005 Ms. Kapur paid office rent for December 2004 by cheque. (Refer trans-
action number 4.)
i. Make an entry of the transaction in a Payment Voucher.
Debit: Rent Expenses 2,500.
Credit: HDFC Bank 2,500.
115) 5-1-2005 Ms. Kapur received Rs.30,000 in cash from InGroove Designers.
123) 30-1-2005 Ms. Kapur withdrew Rs.8,000 cash for personal use.
i. Make an entry of the transaction in a Payment Voucher.
Debit: Withdrawals 8,000.
Credit: Cash 8,000.
Trial Balance until January 2005
SL NO DATE TRANSACTIONS
FEBRUARY 2005
124) 5-2-2005 Ms. Kapur paid office rent for January 2005 by cheque (refer trans-
action number 4).
passing each entry. The profit and loss account gives the financial health of an organisation at the
end of the year.
When the balances of the company are carried forward, Tally carries forward the balances of asset
and liability accounts only. The balances of income and expenditure account will not be carried
forward.