A
PROJECT REPORT
ON
Accounting skills with the use of Tally
AT
D.P. Sinha & Co.
(Chartered Accountant)
Submitted in partial fulfillment of the requirement
For the award of degree
Of
BACHLEOR OF COMMERCE (HONOURS)
SESSION (2014-2015)
SUBMITTED TO:-
SUBMITTED BY:-
Mr. Saurabh Agarwal
Sumit Kumar
Assistant Professor
B.com (Honours)
Roll No- 12023051
IFTM UNIVERSITY MORADABAD
CERTIFICATE OF ORIGINALITY
I Sumit Kumar Roll no. 12023051 a full time bonafide student of third year of
Bachelor of Commerce (Honors)Programme of IFTM University, Moradabad ,
declared that this project work carried out by me at D.P. Sinha & Co. (Chartered
Accountant ) and the report submitted in partial fulfillment in the requirement of the
programme is an original work of mine under the guidance of the industry mentor Mr.
Vikas Agarwal and faculty mentor Mr. Saurabh Agarwal .
Further, the present work is not based or reproduce from any existing work of any
other person or on any earlier work undertaken at any other time or for any other
purpose, and has not been submitted
Anywhere else at any time.
( Sumit Kumar )
( Saurabh Agarwal )
ACKNOWLEDGEMENT
It my pleasure to be indebted to various people, who directly or indirectly contributed
in the development of this work and who influenced my thinking, behavior and act during the
course of study.
I expressed my sincere gratitude to Dr. Manjula Jain for providing me an
opportunity to undergo winter training at CA D.P. Sinha &Co.
I am very thankful to Mr. Vikas Agarwal for his support, cooperation and
motivation to me during the training for constant inspiration ,presence and blessings.
I also extend my sincere appreciation to Mr. Saurabh Agarwal who provided his
valuable suggestions and precious time in accomplishing my project report.
Lastly,I would like to thank the almighty and my parents for their moral support and
my friends with whom I shared my day- to- day experience and received a lot of suggestions
that improve my quality of work.
( SUMIT KUMAR )
INDEX
S No.
Table Of Content
1
Introduction Of Tally
2
Version Of Tally
3
Features
4
Gateway of Tally
5
Open The Tally Folder
6
Accounting Treatment
7
Questions
8
Shortcut keys
9
Result and discussion
10
Conclusion
11
Brief profile of the firm
12
Reference
INTRODUCTION
Tally is a main program made by Peontronies Pvt. Ltd. company. It is design for all types of
accounting solution and stock management. It is DOS based version which include
accounting and windows based inventory control system. Its main technology is based on
alignment of various transactions happens on company other report and book writing is made
by the tally own. For the each transaction ledger a/c entry be open after this voucher entry is
done.
Tally is a trade name of accounting software maintaining accounts, and for performing
additional accounting and other analytical operations helpful in management of an
organization
Tally is versatile and massive software package. It is used by various types of trade and
industries. Tally software business was setup in 1986 by Late S.S. Goenka, who was the
founder of the company Peutronics Ptv. Ltd. , Bangalore.
It is easy to use software and is designed to simply complex day to day activities associated
in an enterprise. Tally provides comprehensive solution around accounting principles,
inventory and data integrity. Tally also has feature encompassing global business. Tally
software comes with easy to use interface thus making it operationally simple.
Tally accounting software provides a solution around inventory management, stock
management, invoicing, purchase order management, discounting, stock valuation
methodology, etc.
Tally accounting software also comes with drill down options, which can track every detail of
transaction. It helps in maintaining simple classification of accounts, general ledger, accounts
receivable and payable, bank reconciliation, etc.
The technology employed by tally makes data reliable and secure. Tally software supports all
the major types of file transfer protocols. This helps in connecting files across multiple office
locations.
Type Of Tally Version
Tally 4.5
Tally was started with is first version of Tally 4.5, which was a DOS based program. This
program was very light weight and very fast in operation.
Tally 5.4
The next version was 5.4 which was graphic interface version. It became popular in the
masses. Its pirated copy made it most popular accounting software.
Tally 6.3
Next version was tally 6.3 which was truly windows based version which could support fast
printing and with VAT implemented. Tally 6.3 came with water tight security in terms of
piracy. With its dongle it was almost impossible to crack. Although crack of software were
available but Tally's policy of frequent upgrades and newer releases does the trick.
Tally 7.2
Next version of Tally was Tally 7.2. It was also fast version with lots fo new feature like
statutory compliant versions. Different VAT rules for different states was achieved with this
version.
Tally 8.1
Tally 8.1 was developed with new data structure of Tally. A module of POS and Payroll was
added to it. It could not live up to the expectations with the people and marred by bugs.
Company rectified many but the version could not become popular and company has to abort
it before time and launch new version.
Tally 9
This is the latest version of Tally which has maximum features. All other versions have been
declared end of life period by Tally company. Tally 9 has advance features like Excise for
Dealers, Payroll, FBT, TDS, e-TDS filing facility etc along wit its regular features related to
accounting and inventory management.
How to Create Company (SCREEN PROPERTY)
The first step to get started in Tally.ERP 9, is to Create a Company. The initial screen
appears as shown:
The Gateway of Tally screen is divided into six sections, namely Horizontal Button Bar,
Main Area (Ctrl+M), Info. Panel, Calculator Area (Ctrl+N), Task Bar and Vertical Button
Bar.
The elements of the Gateway of Tally screen are explained below:
Horizontal Button Bar
The Buttons, Print (Alt+P), Export (Alt+E), E-mail (Alt+M), Upload (Alt+O), Language
(Ctrl+L), Keyboard (Ctrl+K), Control Centre (Ctrl+K), Support Centre (Ctrl+H) and Help
(Alt+H) can be seen in the Horizontal Button Bar.
Control Centre (Ctrl+K) � Login to the Control Centre for account management
Support Centre (Ctrl+H) � To access support incidents, queries and track the resolution
status
Help (Alt+H) � To access Tally.ERP's online context-sensitive help
Main Area (Gateway of Tally)
The Main Area is separated into two:
1
Left-hand side area
2
Right-hand side area
The left-hand side provides information on Current Period, Current Date and List of Selected
Companies (Name of the company and the date when last entry has been made).
The right-hand side displays the Company Information menu such as Select a Company,
Create a Company, Backup a Company or Restore a Company and so on.
Hot Keys
Hot keys are capitalized and appear in red colour on all the menus. Using the Hot Keys
in Company Info menu will take you to the relevant screen or sub - menus within the
selected option.
Info. Panel
The Information Panel or Info Panel as it is widely known appears at the bottom part of the
screen. It is divided into five blocks, the first four block give you vital information on the
various aspects of the product installed on your computer where as the last block contains the
calculator.
The user, based on his requirement can hide the Info Panel to give you a larger working area.
To hide the Info Panel click on the [x] close button, a green colour band appears with a ^ (up
arrow symbol) indicating the info panel is hidden. To un-hide the Info panel click anywhere
within the hidden Info Panel or activate the Calculator Pane by pressing Ctrl+N.
By default the Info Panel is displayed in Gateway of Tally or the Company Info menu and
remains hidden in other screens or reports. To display the Info Panel in all the screens or
reports click any where within the hidden Info Panel.
To always display the Info Panel across all the screens or reports follow the steps shown:
Go to Gateway of Tally > F12: Configuration Menu > General
Set the option Always show Info Panel to Yes, Tally.ERP 9 will always display
the Information Panel in all the screens or reports
Or
In the Company Info or Gateway of Tally
Click close to hide the Info Panel
Double click any where within the hidden Info Panel
A brief write-up about each block of information panel is given below for your benefit
Product Block
The product block of the information panel displays the Tally.ERP 9 logo. You can click on
the Product band to access the Product Details screen or click on theTally.ERP 9 logo to
visit www.tallysolutions.com.
In the Product Details screen highlight the required option and press Enter to visit the
download page and get latest information about various aspects of the product.
Version Block
The Version block displays important product information such as
Series: is the product series installed on your computer. When the status of the
series is Latest, it indicates that the most recent series of Tally.ERP 9 running on
your computer.
Release: Basically displays a number indicating the version of the installed
product for the respective series. When the status of the release is
displayed Latest, it indicates that you are using the most recent version of
Tally.ERP 9. In case you are using the older release of Tally.ERP 9, the status is
displayed 9.9 Available, which indicates the latest version of Tally.ERP 9 is
available for download.
Edition: displays the edition of the product installed which is
either Silver or Gold or Auditor.
Users: The number of users displayed are based on the product edition installed.
The number of users for Silver is limited to One whereas Unlimited users can
simultaneously work on the Gold and Auditor edition.
Click on Version block, the Product Details screen appears displaying the
detailed information about the Series, Release, Build, release Status as of
date,Version and Edition of Tally.ERP 9 installed on your computer.
Highlight the required option and press Enter to get the latest information on various aspects
of the product.
License Block
The License Block displays information related to the product licensing such as
Serial Number: displays the activated license serial number for the respective
product edition. On detecting a copyright violation the License Serial
Numberwill turn blank and Invalid License is displayed in red instead of Site
ID and Account ID.
Remote Serial: The remote serial number appears when you have logged in as a
remote user or logged in to the Control Centre or Support Centre.
Site ID: It is the site name assigned by the user while activating a multi-site
license. In a multi-site licensing scenario the first site activated is
assigned PrimarySite ID.
Account ID: displays the E-Mail Id of the Account Administrator which was
provided in the activation form.
Click on License block of the Info. Panel. The Tally.ERP 9 License and
Tally.NET Details screen appears displaying License Details, Remote License
Details and Tally.NET Account Details of the respective license serial number.
OPEN THE TALLY FOLDER DIRECT AND SHORTCUT TYPE
CREAT
SELECT
DISPLAY
ALTER
BACK UP
RESTORE
RECOVERY OF DATA
QUIT
Create:- This option is used to create information about a new company. It can include
company name, address, income tax, sale tax no account of any year. The report of the date of
accounting started, password no. etc can be get.
Select:- By Showing created company list this option opens the selected company on which
its account entry and maintenance can be done.
Backup:- All the accounts of related to selected company data files can be do9press in the
floppy to record. In which if data size is exceeding more than one floppy can be used by
continue tally back up 001, 002 and so on files can be copied.
Recovery of Data:- All the data occurs either due to various infection or due to
fluctuation of power. Can be corrected by this option.
Quit :- Tally can be close by this option if created company needs to be related than.
Grouping of Legged A/C:- This option Creating of all ledger a/c heads and a/c groups getting
information. Correcting budget for all a/c heads is possible.
S. No
Ledger
Type of Account
Tally Group
1
Shop Keeper
Personal Account
Account Payable/Sundry Creditor
2
Customer
Personal Account
Account Receivable /Sundry Creditor
3
Bank Saving
Personal Account
Bank Accounts
4
Post Office Saving
Personal Account
Bank Accounts
5
Capital
Personal Account
Capital Account
6
Drawing Account
Personal Account
Capital Account
7
Cash
Personal Account
Cash in hand
8
Building
Real Account
Fixed Assets
9
Car
Real Account
Fixed Assets
10
Furniture
Real Account
Fixed Assets
11
Furniture & Fixtures
Real Account
Fixed Assets
12
Carriage Outward
Income & Exp.
Direct Expenses
13
Wages
Income & Exp.
Direct Expenses
14
Direct Wages
Income & Exp.
Direct Expenses
15
All type of main Income
Income & Exp.
Expenses
16
Receivable Rent
Income & Exp.
Direct Income
17
FBT
Income & Exp.
Duties & Taxes
18
Income Tax
Income & Exp.
Duties & Taxes
19
Sales Tax
Income & Exp.
Duties & Taxes
20
Service Tax
Income & Exp.
Duties & Taxes
21
TCS
Income & Exp.
Duties & Taxes
22
TDS
Income & Exp.
Duties & Taxes
23
VAT
Income & Exp.
Duties & Taxes
24
Rent
Income & Exp.
Duties & Taxes
25
Audit Expenses
Income & Exp.
Duties & Taxes
26
Bad Debts
Income & Exp.
Duties & Taxes
27
Bank Charges
Income & Exp.
Indirect Expenses
28
Commotion
Income & Exp.
Indirect Expenses
29
CST
Income & Exp.
Indirect Expenses
30
Depreciation
Income & Exp.
Indirect Expenses
31
Electric Bill
Income & Exp.
Indirect Expenses
This option Creating of all ledger a/c heads and a/c groups getting information. Correcting
budget for all a/c heads is possible.
Account Info -
Ledger
Groups
Cost Centre
Quit
Ledger -
Create
Display
Alter
Budget
Quit
Ledger A/C
Ledger a/c name
Alias name
Group
Opening balance
Closing balance
Main
Income tax no.
Sales tax no.
Ledger a/c:- The ledger a/c mean the transaction done by the company. That helps to unable
the final a/c of that company
1
The name of the group and subname of the group while making the ledger is used to give
2
the making address income tax no. etc
Voucher Entry:- The voucher Entry means the details of the work that done by the
transaction in a company. That helps to make the final a/c book and report. The work
done by the company, receipt transition or other works. Also represented by the voucher.
Tally itself make the final reports to the data voucher.
Employment of the think of competed contribution of Tally in Employment
The main problem before the youngster of India is unemployment. The basic reason for this
is our Expiration Population growth. After having higher.
Degrees the student of India are unable to get good job. So due this problem our youth. Has
to think about their own business.
Be know there are many possibilities in the field of business but before choosing any option
for this purpose we should know some basic idea about it like. How much profit we can get
why it? How any person will it require and which type of technology and machines be will
have to affored. So we can adopit that particular business. Since Tally also satisfied these
condition like it is Economical and it require less space and less equipment, so it will be a
good business. So for establish by this unit be have selected this syllabus.
We are selecting Tally as our cares we don’t require any additional education but it will be
batter. If we should have basic knowledge about computer.
Because the option we are selecting is just medium of our own business. And it dose not be
longs to any particular institution. That require any compilation exam or provide job after
any planning, so it means. We should not have to face any commotion.
In our daily fast life there are many task before us. It is related to our job our business or our
occupation and just like this the option we are selecting will also take many task. That helps
us to reach our goal and how to achieve it ? So for this we will also have to know how to
solve these kind of problem. So it depends on us that we should intelligently choose our
option so that it helps us to be successful in our life.
We should have theoretical knowledge of our option but is metical utility in more required
because the theoretical information.
Gives only some knowledge about any particular thing in a system as for as our practical
knowledge is concern it much helpful as companies to the theoretical utility of any operation
because while doing practical, we get some additional information and a visual display why
these practical we can ratify many problems that faced us during the application, but these
problems becomes unsolved it be have only theoretical knowledge for example when be
want to such some information by the internet so we shell have to take the help of the such
engine, but some time it does not give any result. In that situation what should be done so we
can rectify the problem. So the Moto of its example is that we can’t know about these all
problem by the theory and can’t rectify, but when these problems by us and we know about
its practical function. So we can easily solve it. If we orally say about this problem so person
cannot even understand it.
Question No.1 : Write the steps to create a new company in Tally and also explain the all
reliable fields in company creation window.
Answer: Every business has no. of financial transactions, as a human being we could not
remember all of them. To overcome this problem we used to record all business transactions
in books. As technology is developing we are using computers in every area.
Tally is an application package which is used to record and analyze all business transactions
in computer. To work with this package we need Windows operating System in our computer.
To record transactions in Tally, first we need to create Companies for whose transactions to
be entered. Suppose as a consultant if want to maintain number of companies data, we need
to create separate companies.
To create a company we have to follow the steps giving hereunder:
1
By Double clicking the Tally Icon on desktop, it opens the Tally screen.
2
The gateway of Tally Screen divides into four areas
Title area : Shows version No. Date, Time etc.,
The main area : List of selected Companies etc.,
Calculator Area : To done mathematical calculations
Button bar : Displays Commands to be used
3
The names of the companies already created will displays on the main area’s left part.
In the right part of the main area there is a menu called Company Info.
4
Click on Create Company. It will display a dialog box.
5
We have to fill the required fields
6
After entering all the information it will display ‘Accept Yes or No?’ dialog box.
7
Click on Yes Button to save all the information and it will creates the company
The Following are the various details required to create a company.
1
Directory: Company’s data will be saved in a directory, for this it is required to give
the path of the Data directory. Path is the location of the directory. By default Tally
creates its data directory at C:\Tally\data. We can the change the default path by
pressing backspace key and enter a new path. Internally Tally Names its directories
like 001, 002.
2
Name: Here we have to give the name of the company for whose books are to be
opened. For Eg. XYZ Company Ltd.,
3
Mailing Name and Address: Here we can enter the mailing address of the company. It
can be entered in multiple lines also.
4
E-mail Address: This is optional, if we want we can enter it.
5
Local Sales Tax Number: Here we have to enter the Sales tax number allotted to the
company by the state Govt.( if available)
6
Inter state Tax Number: Type the number if available which was allotted by Central
Govt..
7
Income tax Number: Type the number allotted by the Central Govt to the company if it
available.
8
Currencey Symbol: Type the base currency symbol like Rs. $ etc. In India it will be Rs.
9
Maintain: We can maintain two types of Accounts
o Accounts Only: To maintain Accounts Transactions only
o Accounts-cum-Inventory: To maintain the Inventory transaction as well as
Accounts transactions.
10 Financial Year from: Type the Financial Year of the country for Eg: 2005-06
11 Books beginning from: Tally assumes that this period will be the same as Financial
Year , if we want we can change it. Suppose company books begins from July 2006,
then the date will be 01-07-2006.
12 Tally Valut Password: To avoid unauthorized persons to operate/enter and view our
company transactions we can maintain data in encrypted form(Unrecognizable form).
By typing the password authorized persons only can view and record/enter the
information. As administrator we have give the Password for it.
13 Use Security Control: We can define and maintain security control layers by
classifying the Supervisor rights and normal user rights. Type Yes to maintain Security
control , other wise Type No.
14.Basic Currency Info: In this area we have to enter currency formal name,
Decimal Points etc., information
Question No. 2: Explain the following group with an example
1
Capital Account
2
Current Assets
3
Indirect Expenses
4
Direct Expenses
5
Bank account
6
Bank OCC account
7
Fixed Assets
8
Current liabilities
Answer:
In manual accounting grouping is need to be done after figures of transaction (Vouchers) have
been posted to the ledger accounts and balance drawn (Trial Balance).
In Tally by default it creates 15 groups; they are called as Reserved Groups (some are divided
into sub groups)
Capital Account
This group holds the Capital and Reserves of the company. The following ledgers that may be
opened under this group are
Share Capital A/c [When the firm is Company]
Partners' Capital A/c [When the firm is Partner-ship firm,
Proprietor's Capital A/c [When the firm is proprietary ship based]
Reserves and Surplus A/c [also called as Retained Earnings]
Capital Reserve A/c, General Reserve A/c, Reserve for Depreciation A/c, etc.
Current Assets
This Group holds the current assets ledgers other than Bank Accounts, Cash in Hand
For Eg: Loan & Advances (assets)
Deposits (Assets)
Stock-in-hand
Indirect Expenses
This group holds all the Administrative, selling & distribution Expenses Accounts. These
expenses are generally shows in Debit side of Profit & Loss account.
For Eg. Depreciation A/c,
Rent, Rate & taxes A/c ,
Insurance charges A/c,
Printing & stationery A/c,
Repairs & Maintenance (Admn) A/c,
Traveling and conveyance A/c.
Salaries Payable A/c
Direct Expenses
This group holds all the Trade A/c Expenses; it determines the gross profit / gross loss of the
company
For Eg: Wages A/c,
Factory Light A/c,
Frieght & Octroi A/c,
Carriage inwards A/c,
Bank account
This group holds Bank related Accounts
Bank Current Accounts for Eg: State bank of India [CA-1095]
Bank Savings Accounts, for Eg: HDFC bank [SB-2555]
Short term deposits A/c etc
Bank OCC account
This group holds the Bank Overdraft Account
Fixed Assets
This group holds ledgers of fixed asset like
Land & Building A/c,
Furniture & Fixtures A/c,
immovable properties,
patents ,
trade rights,
Current liabilities
This group contains the flowing sub-groups
Duties taxes
Sales Tax,
Central Sales Tax,
Exise Duty,
Marketing Fee,
Purchase Tax
Provisions
Provision for Income Tax
Provision for Bad Debts
Sundry Creditors
All trade creditors of the company
For Eg: Raj & Raj Co.,
ABC Company Ltd
Current Liabilities holds the following Ledgers:
All liabilities accounts which are not fallen in above 3 groups can be placed here Like
Statutory Liabilities.
For Eg;
T.D.S payable A/c.
E.S.I Employer’s Contrib Payable A/c
P.F Employer’s Contrib Payable A/c
Short-Cut Key on Tally 9.o ( Function Keys )
Features of Tally
Accounting without codes
Comprehensive coverage
Outstandings
Interest Calculations
Cost/Profit Center
Number of companies
Currency
Budgeting
Security Control
Printing of various documents
Import/Export data
RESULT AND DISCUSSION
Results
Tally is best in Compete Book-Keeping.
Tally is the best for basic Financial Management.
Tally is the best for Advanced Financial Management
Tally is the best for basic Inventory Management.
Tally is the best for Advanced Inventory Management.
The Technology Advantage of Tally.
Statutory compliance Capabilities in Tally.
Payroll Compliance in Tally.
CONCLUSION AND FUTURE SCOPE
Conclusion
On the basis of the study it is found that Tally is better than other accounting software
because of their advance technology and more features Tally provide the facility of complete
book keeping, Financial management ,advance inventory management, The technology
advantages, Statutory compliance capabilities and payroll compliance etc. It also provided the
information through email study also concludes that people who are using Tally, they can
easily maintain their accounts in comparison to non tally users.
Future Scope
The Awareness of this accounting software tally is up to the marks among
the people for which people is attracting from this accounting software
.And the future is very bright of the tally in coming future. If the company
do more and more activities regarding his accounting software tally then
can also add more and more customer in the coming future.
BRIEF PROFILE OF THE FIRM
D.P SINHA & COMPANY
CHARTERED ACCOUNTANT
Name
Designation
D.P Sinha
Proprietor
Place
Moradabad
Office address:Moradabad
`
Pili kothi
References
References
Hingorani N.L and Ramanathan A.R., “Management Accounting” ,Sultan Chand New
delhi,1982.
Kuchhal S.C” Financial management” Chaitanya .Allahabad 1980.
Shukla M.C and Grewal T.S “Advance Acoounts”,S .Chand and Company,
New Delhi,1991.