Project on Tally.ERP9

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CCOUNTING
"The art of recording ,
classifyingand 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.

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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
Ledger
Trail
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 programfiles. 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 fromTally.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 costand is charged no further VAT on his sale.

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• Composite Dealers
Dealers with an annual gross turnover notexceeding 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)
Introduction
TDS

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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
• Create single TDS Duty Ledger for Multiple Nature of Payment
• Book & Deduct TDS in the same voucher

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• 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.
 It provides auto-fill facility to expedite the Attendance, Payroll & Employer
Contributions processes.

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 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 Enterprisesby 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
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 furnitureand fixturesworth Rs.
1,50,000 for theshop by Cheque. (Chequeno. 123452).
Ledger Under
Furniture & fixture Fixed Assets
Go to Gateway of tally > Accounting voucher > F
Furniture7 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. (Chequeno. 123453).
Ledger Under
Security Deposit Current Assets
Security Deposit A/c Dr 25,000

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

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 Enable payroll for Global Enterprisesin 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/Alterpayroll 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 itemsfromA2Z
traderson 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
Pur@12.5% Pur A/c Yes Yes Pur@12.5@

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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 itemsfromA2Z
traderson credit
vat
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 carriageinward 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
Carriageinward Dr 500
To Cash A/c Cr 500

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• On 27-4-2010, Mr. Vinod Kumar transferred Rs.10,000to patty cash fromcash
to meet theday 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 withdrewRs.5,000 in cash for personal use.
Ledger Under
Drawings Capital A/c
Cash Cash A/C
Drawings A/c Dr 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 sen-
gupta
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 Enterprisesprocesses payroll for all the employees and
entitled thefollowing employees for variablepay. The salarieswere paid in
cash.
Particulars Rahul Bhatt Jairam sen-
gupta
Shishir
Mathur
Ajith V Nair
Variable Pay - 1000 - -
Go to Gateway of tally > payroll vouchers > ctrl+F4 for payroll voucher > press
Alt+A (payrollauto fill)

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 On 30-4-2010, M/sGlobal Enterprisesprocessed provident fund contribution for
the month of April 2010.

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 On 30-4-2010, Global enterprisesprocessed 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 Enterprisesprocessed thepayment of ESI for the month of
April 2010.
Go to Gateway of tally > Accounting vouchers > press F5 > press Alt+A (other charges
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/sGlobal Enterprisesmade 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

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 On 06-5-2010, Mr. Vinod Kumar paid Rs.3500 by Cheque towardsshop rent for
April 2010. (Chequeno. 123456).
 Create following Ledgers:
Ledger Under
Shop rent Indirect expenses
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 itemsfor cash. The detailsare
as follow:
vat
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 withdrewRs.4,000 in cash for personal use.
Ledger Under
Drawings Capital A/c
Cash Cash A/C
Drawings A/c Dr 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 invoiceof 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

52
 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

53
 On 30-5-2010, raised an invoiceon M/s Avantech associatesfor maintenance
services for Rs.44,120/- (inclusiveof servicechargesof Rs.40,000 servicetax
@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 chequeof Rs.44,120/- fromM/sAvantech associates
towardsthe bill dates 30-5-2010.
Ledger Under
M/s Avantech associates Sundry Debtors
National Bank A/c Dr 44,120
To M/s Avantech associates Cr 44,120

55
 On 31-5-2010, theservicetax input credit isadjusted against output servicetax
and servicetax paid to the Government.

56
 On 31-5-2010, received an invoicefor Rs.21,000 fromRamesh Kumar an service
engineer for providing technical servicein maintenancework.
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 towardshis invoiceafter deducting TDS
Rs.2,100 fromamount payableto him.
Ledger Under
Ramesh Kumar Sundry Creditor
Ramesh Kumar A/c Dr 18,900

58
 On 31-5-2010, Rs.2,100 paid to Government Treasury towardsTDS on fees for
professional or technical services.
Ledger Under
TDS on Adv. Duties & Taxes
TDS on Adv. Dr 2,100

59
• On 31-5-2010, the attendance record of Global Enterprises displayed the
following details:
Attendance/Production
types
Rahul Bhatt Jairam sen-
gupta
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 thefollowing employees for variablepay. The salarieswere paid in
cash.
Particulars Rahul Bhatt Jairam sen-
gupta
Shishir
Mathur
Ajith V Nair
Variable Pay - - 1000 -

61
 On 31-5-2010, M/sGlobal Enterprisesprocessed provident fund contribution for
the month of May 2010.

62
 On 31-5-2010, Global enterprisesprocessed 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 Enterprisesprocessed thepayment 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
•

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