Textbook 5 : Tally ERP 9 – Accounting Software

Tally ERP 9 Full Textbook

Tally ERP 9 is a popular business management software developed by Tally Solutions, an Indian multinational company. It is primarily used by small to medium-sized businesses for accounting, inventory management, payroll, taxation, and other financial and business operations.

Key Features of Tally ERP 9:

1. Accounting Management
2. Bookkeeping, voucher entry, and financial reporting.
3. Support for multiple currencies and companies.
4. Inventory Management
5. Track stock levels, movement, batches, and locations.
6. Set reorder levels and generate stock reports.
7. GST Compliance
8. Handles Goods and Services Tax (GST) billing, returns, and reconciliation (for India).
9. Supports VAT, CST, TDS, TCS, and other tax regimes.
10. Payroll Management
11. Manage employee records, salary processing, and statutory deductions like PF, ESI.
12. Banking
13. Bank reconciliation, e-payments, and cheque management.
14. Remote Access
15. Allows users to access data remotely (with proper security and authorization).
16. Data Security and Backup
17. User-level access control, audit capabilities, and data backup features.

Who Uses Tally ERP 9?

• Small and Medium Enterprises (SMEs)
• Accountants and Chartered Accountants
• Retailers and Manufacturers
• Service Providers

Is Tally ERP 9 Still Relevant?

While Tally ERP 9 is widely used, Tally Prime is its newer version with an improved user interface, simplified navigation, and enhanced features. Many businesses are migrating to Tally Prime, but Tally ERP 9 remains in use due to its familiarity and stability.

Who created Tally ERP 9?

Tally ERP 9 was created by Tally Solutions Pvt. Ltd., an Indian software company founded by Shyam Sunder Goenka and Bharat Goenka in 1986.

Key People Behind Tally:

1. Shyam Sunder Goenka
2. A businessman based in Bangalore, he initially ran a business that needed accounting software, which led to the creation of Tally.
3. Bharat Goenka
4. Shyam Sunder’s son, a computer science graduate, developed the software. He is often credited as the “father of Tally” and was instrumental in writing the first version of the software.

History Timeline:

• 1986: The company was originally named Peutronics Financial Accountant.
• 1999: Renamed as Tally Solutions Pvt. Ltd.
• 2009: Tally ERP 9 was released, becoming one of the most widely used business software solutions in India.

The goal of Tally was to simplify accounting and business management for Indian businesses, and it succeeded in becoming a household name in the Indian SME sector.

What is Accounting?

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business or individual. It provides a clear picture of an organization’s financial health and helps stakeholders (like business owners, investors, and regulators) make informed decisions.

🔑 Key Functions of Accounting:

1. Recording Transactions (Bookkeeping)
2. Systematic recording of daily financial transactions (e.g., sales, purchases, expenses).
3. Classifying and Summarizing
4. Organizing transactions into categories (like income, expenses, assets, liabilities) and preparing summaries.
5. Financial Reporting
6. Creating financial statements such as:
7. Balance Sheet (shows assets, liabilities, equity)
8. Income Statement or Profit & Loss Account (shows revenues and expenses)
9. Cash Flow Statement (shows cash inflows and outflows)
10. Analyzing and Interpreting
11. Evaluating the financial data to assess performance and guide decision-making.
12. Compliance and Taxation
13. Ensuring adherence to financial regulations and tax laws.

📘 Types of Accounting:

Type	Description
Financial Accounting	Focuses on external reporting (e.g., for investors, tax authorities).
Management Accounting	Used internally by management for planning and decision-making.
Cost Accounting	Analyzes production costs to control spending and set prices.
Tax Accounting	Deals with preparing tax returns and planning for tax obligations.
Auditing	Involves verifying the accuracy of financial records and statements.

🎯 Why Is Accounting Important?

• Tracks income and expenses
• Helps in budgeting and planning
• Supports legal and tax compliance
• Aids in decision-making
• Builds credibility with stakeholders

Here’s a clear breakdown of the main types of accounting, each with its definition, purpose, and key features:

1. Definition of Financial Accounting: The process of recording, summarizing, and reporting an organization’s financial transactions through financial statements.

Purpose: To provide accurate and standardized financial information to external parties such as investors, creditors, regulators, and tax authorities.

Key Features:

• Based on accounting standards (like GAAP or IFRS)
• Includes balance sheet, income statement, cash flow statement
• Focuses on historical data
• Periodic reporting (monthly, quarterly, annually)
• Definition of Management Accounting (or Managerial Accounting): Internal accounting focused on analyzing and interpreting financial data to help managers make strategic decisions.

Purpose: To aid in planning, budgeting, forecasting, and decision-making within the organization.

Key Features:

• Not regulated by external standards
• Includes cost analysis, budgeting, performance evaluation
• Forward-looking and real-time
• Customized internal reports
• Definition of Cost Accounting: A branch of accounting that deals with capturing and analyzing all costs associated with production or operations.

Purpose: To control costs, set pricing strategies, and improve efficiency.

Key Features:

• Tracks direct and indirect costs (materials, labor, overhead)
• Used for cost control and profit maximization
• Integral part of management accounting
• Definition of Tax Accounting: Focuses on preparing tax returns and planning for future tax obligations according to laws and regulations.

Purpose: To ensure compliance with tax laws and minimize tax liabilities.

Key Features:

• Based on tax laws (not accounting standards)
• Includes income tax, sales tax, GST, etc.
• Covers tax planning and filing returns
• Often handled by tax professionals or accountants
• Definition of Auditing (Internal and External): The process of examining financial records to ensure they are accurate and comply with legal and regulatory standards.

Purpose: To verify the correctness of financial statements and ensure transparency.

Key Features:

• External Audits: Conducted by independent firms for statutory compliance
• Internal Audits: Performed by internal staff to improve internal controls
• Enhances credibility and investor confidence
• Definition of Forensic Accounting: A specialized area of accounting that investigates fraud, embezzlement, and other financial crimes.

Purpose: To provide financial evidence for use in legal proceedings.

Key Features:

• Involves detailed investigation and analysis
• Used in litigation, insurance claims, disputes
• Often works with law enforcement
• Definition of Government Accounting: Accounting system used by public sector organizations to track funds and ensure accountability.

Purpose: To manage public funds and comply with government regulations.

Key Features:

• Tracks budget allocations and expenditures
• Follows specific government accounting standards
• Focuses on transparency and public accountability
• Definition Fund Accounting: Used by nonprofits, charities, educational, and governmental organizations to track funds assigned for specific purposes.

Purpose: To ensure proper use and reporting of funds donated or granted for specific causes.

Key Features:

• Tracks multiple funds separately
• Ensures compliance with donor or grantor restrictions
• Financial reports based on fund-specific activity

📘 What is Accountancy?

Accountancy is the systematic process of measuring, processing, and communicating financial information about a business or individual. It includes the principles, methods, and rules used to perform accounting work.

In simple terms, accountancy is the science and practice of accounting — it provides the framework for maintaining accurate financial records and preparing financial statements.

🧩 Components of Accountancy:

1. Accounting

The actual recording, classifying, and summarizing of financial transactions.

• Bookkeeping

The basic process of recording daily transactions in a systematic way.

• Auditing

Examination of financial records to ensure accuracy and compliance.

• Cost Accounting

Determining and controlling the costs of production or services.

• Management Accounting

Preparing reports for internal decision-making.

• Tax Accounting

Ensuring correct calculation and payment of taxes.

🎯 Objectives of Accountancy:

• To record all financial transactions systematically.
• To determine profit or loss of a business.
• To ascertain financial position through the balance sheet.
• To provide information for decision-making, planning, and budgeting.
• To ensure legal compliance and prepare tax returns.

🏦 Importance of Accountancy:

• Helps businesses track income and expenses.
• Aids in financial reporting and transparency.
• Supports legal and tax compliance.
• Essential for attracting investors and lenders.
• Enables strategic decision-making through data.

⚖️ Difference Between Accountancy and Accounting:

Term	Description
Accounting	The actual process of recording and reporting financial data.
Accountancy	The field or discipline that includes the principles, concepts, and rules of accounting.

📒 What is an Account?

In accounting, an Account is a record or statement that tracks all financial transactions related to a specific item, person, or type of activity.

Simple explanation:

An account shows the inflows and outflows of money for one particular thing — like cash, sales, rent, or a customer.

Key Points about Accounts:

• Every financial transaction affects at least two accounts (Double-entry accounting).
• Accounts are classified into different types based on their nature.
• They help organize and summarize financial information.
• Used to prepare financial statements like the Balance Sheet and Profit & Loss Account.

Types of Accounts (Basic Classification):

Account Type	What it Represents	Examples
Assets	What the business owns	Cash, Bank, Inventory
Liabilities	What the business owes	Loans, Creditors
Capital / Equity	Owner’s interest in the business	Capital Account
Income / Revenue	Earnings from business activities	Sales, Interest Received
Expenses	Costs incurred	Rent, Salaries, Utilities

Example of an Account:

Cash Account

• Records all cash receipts and payments.
• Shows how much cash is available at any point.

🏦 What is Banking?

Banking refers to the services provided by banks and financial institutions that involve managing money, such as accepting deposits, providing loans, facilitating payments, and other financial activities.

Simple Explanation:

Banking is all about handling money safely and helping people and businesses manage their finances.

Key Functions of Banking:

1. Accepting Deposits
2. Savings accounts, current accounts, fixed deposits.
3. Providing Loans and Advances
4. Personal loans, business loans, mortgages.
5. Facilitating Payments
6. Issuing checks, electronic transfers, debit and credit cards.
7. Currency Exchange
8. Exchanging foreign currency.
9. Investment Services
10. Mutual funds, wealth management.

Why Banking is Important:

• Keeps your money safe.
• Helps in saving and growing wealth.
• Provides credit to buy or invest.
• Makes business transactions smooth and efficient.

Banking in Business Accounting:

• Bank accounts are recorded as assets.
• All money transactions via banks are recorded in the Bank Ledger.
• Bank statements help reconcile cash balances.

📋 What is Account Payable?

Account Payable (AP) refers to the amount of money a business owes to its suppliers or creditors for goods or services purchased on credit.

Simple Explanation:

Account Payable = Money you need to pay to others (your suppliers/vendors).

Key Points about Account Payable:

• It is a liability on the company’s balance sheet.
• Represents short-term debts or obligations.
• Arises when the business buys goods or services but has not yet paid for them.
• Managing accounts payable is crucial for maintaining good supplier relationships and cash flow.

Example:

If you purchase inventory worth $5,000 on credit, this amount becomes your accounts payable until you pay the supplier.

Accounting Treatment:

Aspect	Detail
Nature	Current Liability
Balance Type	Credit Balance
Recorded in Ledger	Sundry Creditors or Accounts Payable ledger

💰 What is Accounts Receivable?

Accounts Receivable (AR) refers to the amount of money that a business is owed by its customers for goods or services sold on credit.

Simple Explanation:

Accounts Receivable = Money your customers owe you.

Key Points:

• It is recorded as a current asset on the balance sheet.
• Represents future cash inflows.
• Arises when a business makes a credit sale (i.e., sells now, gets paid later).
• Essential for managing cash flow and customer credit.

Example:

If you sell goods worth ₹50,000 to a customer and they will pay in 30 days, that ₹50,000 is recorded as Accounts Receivable.

Accounting Treatment:

Account	Type	Entry
Accounts Receivable	Asset	Debited when sale is made
Sales Revenue	Income	Credited when sale is made

Why It Matters:

• Helps measure how much cash is tied up in credit sales.
• Indicates how efficiently a business is collecting money from customers.
• A high AR balance may signal poor collection practices, while too low may mean missed sales opportunities.

📒 What is a Ledger?

A Ledger is a book or digital record that contains all the financial transactions related to a particular account. It shows the detailed history of all debits and credits for that specific account over a period.

In simple terms:

A ledger tracks how much money came in or went out for each individual account like cash, sales, rent, etc.

Key Points about Ledgers:

• Each ledger corresponds to one account (e.g., Cash Ledger, Sales Ledger).
• Ledgers help in preparing financial statements.
• Ledgers are maintained in double-entry accounting (every debit has a credit).
• All business transactions are first recorded in journals and then posted to ledgers.

📂 What are Groups?

Groups are categories or classifications under which ledgers are organized. They help in structuring accounts in a way that makes financial reporting easier and more meaningful.

Why Groups are Important:

• They help in classifying similar types of accounts together (e.g., all expenses under “Indirect Expenses”).
• Facilitate financial statement preparation (Profit & Loss, Balance Sheet).
• Help in summarizing data at a higher level.
• Used by accounting software like Tally ERP 9 to automate reports.

Common Ledger Groups (Examples):

Group Name	Description	Example Ledgers
Capital Account	Owner’s capital and equity accounts	Capital, Drawings
Bank Accounts	Money held in banks	SBI Bank, HDFC Bank
Cash-in-Hand	Physical cash available	Cash
Sundry Debtors	Money owed by customers	Customer A, Customer B
Sundry Creditors	Money owed to suppliers	Supplier X, Supplier Y
Sales Account	Revenue from sales	Domestic Sales, Export Sales
Purchase Account	Purchase of goods	Raw Material Purchase
Indirect Expenses	Expenses not directly linked to production	Rent, Electricity, Salary
Direct Expenses	Expenses directly related to production	Wages, Freight Inward
Fixed Assets	Long-term tangible assets	Machinery, Furniture
Current Assets	Short-term assets	Inventory, Prepaid Expenses
Loans and Advances	Money lent or borrowed	Loan from Bank, Advance to Staff
Duties and Taxes	Government levies	GST Payable, TDS

📇 What is a Debtor?

A Debtor is a person, company, or entity that owes money to a business because they have purchased goods or services on credit.

In simple terms:

A debtor is your customer who hasn’t paid you yet.

Key Points about Debtors:

• Also called Accounts Receivable.
• Money owed by debtors is considered a current asset in accounting.
• Debtors arise when a business allows customers to buy now and pay later.
• Managing debtors is important for cash flow.

Example:

If you sell goods worth $1,000 to a customer on credit, that customer becomes a debtor until they pay you.

How it appears in Accounting:

Account	Type	Balance Type
Debtors / Accounts Receivable	Current Asset	Debit Balance

📋 What is a Creditor?

A Creditor is a person, company, or entity to whom a business owes money because the business has purchased goods or services on credit.

In simple terms:

A creditor is your supplier or vendor who you haven’t paid yet.

Key Points about Creditors:

• Also called Accounts Payable.
• Money owed to creditors is considered a current liability in accounting.
• Creditors arise when a business buys goods or services now and pays later.
• Managing creditors is important to maintain good supplier relationships and cash flow.

Example:

If you purchase goods worth $500 from a supplier on credit, that supplier becomes your creditor until you pay them.

How it appears in Accounting:

Account	Type	Balance Type
Creditors / Accounts Payable	Current Liability	Credit Balance

What is Inventory?

Inventory refers to the goods and materials that a business holds for the purpose of resale, production, or utilization. It is a key asset on a company’s balance sheet and plays a central role in operations, cost management, and profitability.

🏷️ Types of Inventory:

1. Raw Materials
2. Basic materials used in the production process.
3. Example: Wood for furniture, fabric for clothing.
4. Work-in-Progress (WIP)
5. Goods that are in the process of being manufactured but are not yet finished.
6. Example: A half-assembled computer.
7. Finished Goods
8. Products that are completed and ready for sale.
9. Example: Packaged smartphones in a warehouse.
10. Maintenance, Repair, and Operations (MRO) Inventory
11. Items used to support the production process but not part of the final product.
12. Example: Lubricants, tools, cleaning supplies.

📦 Why Inventory Is Important:

• Ensures smooth operations – Keeps production and sales running without delays.
• Helps meet customer demand – Sufficient inventory prevents stockouts.
• Affects cash flow and profitability – Excess inventory ties up cash; too little can lead to missed sales.
• Required for financial reporting – Inventory is a current asset and impacts cost of goods sold (COGS).

📊 Inventory in Accounting:

• Recorded as a current asset on the balance sheet.
• Valued using methods like:
• FIFO (First In, First Out)
• LIFO (Last In, First Out)
• Weighted Average Cost
• Movement tracked through inventory accounting or stock management systems.

🔄 Inventory Management:

Effective inventory management involves:

• Tracking stock levels and movement
• Setting reorder levels
• Avoiding overstocking or understocking
• Using tools like Tally ERP 9, SAP, Zoho Inventory, etc.

📦 What are Goods?

Goods refer to the physical items or products that a business buys, manufactures, or sells as part of its regular operations. They are tangible assets and form the core of trading or manufacturing businesses.

📘 Definition in Accounting:

In accounting, goods are: “Items bought for the purpose of resale or for manufacturing finished products.”

🧩 Types of Goods:

1. Trading Goods
2. Purchased and sold without any modification.
3. Example: A retailer buys and sells mobile phones.
4. Raw Materials
5. Basic materials used in the production process.
6. Example: Cotton used to make clothes.
7. Work-in-Progress (WIP)
8. Partially completed goods in production.
9. Example: A half-built table.
10. Finished Goods
11. Products that are ready for sale.
12. Example: A fully assembled washing machine.

🔁 Goods in Business Transactions:

Term	Meaning
Purchases	Goods bought for resale or production.
Sales	Goods sold to customers.
Purchase Returns	Returned goods to the supplier.
Sales Returns	Goods returned by customers.
Opening Stock	Goods available at the start of the accounting period.
Closing Stock	Goods remaining unsold at the end of the period.

🎯 Importance of Goods in Accounting:

• Directly impacts revenue and cost of goods sold (COGS).
• Part of inventory management.
• Affects profit and loss reporting.

Used to calculate gross profit:

Gross Profit = Sales – COGS

💼 What are Assets?

Assets are resources owned or controlled by a business or individual that have economic value and are expected to provide future benefits.

In accounting, assets are recorded on the balance sheet and represent everything a company owns that can help generate income or improve business value.

📘 Definition: “Assets are things of value owned by a business that help it earn revenue or support its operations.”

🧩 Types of Assets:

🔹 1. Based on Convertibility:

Type	Description	Example
Current Assets Easily	converted into cash within 1 year.	Cash, bank balance, inventory, debtors
Non-Current Assets	Held for long-term use and not easily converted into cash.	Land, buildings, machinery, patents

🔹 2. Based on Physical Existence:

Type	Description	Example
Tangible Assets	Physical items you can touch.	Furniture, vehicles, buildings
Intangible Assets	Non-physical but valuable items.	Trademarks, goodwill, patents

🔹 3. Based on Usage:

Type	Description	Example
Operating Assets	Used in daily business operations.	Equipment, inventory, computers
Non-Operating Assets	Not essential to core operations, but still owned.	Unused land, long-term investments

🧮 Examples of Assets in Accounting:

• Cash – Currency held
• Bank Balance – Money in bank accounts
• Accounts Receivable (Debtors) – Money owed by customers
• Inventory (Stock) – Goods held for sale
• Land and Buildings
• Vehicles and Equipment
• Patents and Copyrights
• Investments

📊 Why Are Assets Important?

• Help businesses operate and grow
• Contribute to revenue generation
• Determine a company’s net worth
• Used to secure loans or investments
• Essential in financial analysis and reporting

🧾 Assets in the Balance Sheet:

Assets are listed on the left side (or top section) of the balance sheet and are usually presented in order of liquidity (ease of conversion to cash).

📘 What are Liabilities?

Liabilities are the financial obligations or debts that a business or individual owes to others. They represent what the business owes, and they are settled over time through payments of money, goods, or services.

In accounting, liabilities are recorded on the right side (or bottom section) of the balance sheet.

🧾 Definition: “Liabilities are the obligations of a business that arise from past transactions and are expected to result in an outflow of economic resources (usually cash).”

🧩 Types of Liabilities:

🔹 1. Based on Time of Payment:

Type	Description	Examples
Current Liabilities	Payable within 1 year or the normal operating cycle.	Creditors, bills payable, GST payable, salary payable
Non-Current Liabilities	Payable over a period longer than 1 year.	Bank loans, debentures, long-term leases

🔹 2. Based on Source:

Type	Description	Examples
Operating Liabilities	Arise from core business operations.	Accounts payable, wages payable
Financing Liabilities	Related to borrowing money or financial arrangements.	Loans, bonds, interest payable

💡 Common Examples of Liabilities:

Liability	Group in Accounting
Accounts Payable	Current Liabilities
Salaries Payable	Current Liabilities
GST Payable	Duties & Taxes
Bank Loan	Secured Loans / Long-Term Liabilities
Loan from Friends/Relatives	Unsecured Loans
Outstanding Rent	Current Liabilities
TDS Payable	Duties & Taxes
Interest Payable	Current Liabilities
Income Received in Advance	Current Liabilities

🎯 Importance of Liabilities in Accounting:

• Help businesses fund operations and growth
• Represent claims of outsiders on company assets
• Crucial for calculating net worth (Assets – Liabilities = Equity)
• Important for credit evaluation and financial analysis

📊 Liabilities in the Balance Sheet:

Assets = Liabilities + Owner’s Equity

This is the fundamental accounting equation, showing the relationship between what a company owns, owes, and what the owners have invested.

What is Capital?

Capital refers to the funds or wealth invested by the owner(s) into a business to start, operate, or expand it. It represents the owner’s claim on the business assets after all liabilities are paid off.

📘 Definition: “Capital is the amount of money or assets contributed by the owner(s) to start and run the business.”

🧩 Types of Capital:

1. Owner’s Capital / Equity Capital
2. Money invested by the business owner(s).
3. In sole proprietorships and partnerships, it reflects the owner’s stake.
4. Paid-up Capital
5. The actual amount invested by shareholders in a company through purchasing shares.
6. Working Capital
7. The capital used for day-to-day operations, calculated as:

Working Capital = Current Assets – Current Liabilities

• Fixed Capital
• Funds invested in fixed assets like buildings, machinery, and land.
• Reserve Capital
• Portion of capital not called up except in liquidation.

🧾 Capital in Accounting:

• Recorded under the Capital Account in the liabilities section of the balance sheet.
• Represents the owner’s residual interest in the assets.
• Increases with additional investments or profits retained.
• Decreases with drawings (money taken out by the owner) or losses.

🔄 Capital vs. Liability:

Aspect	Capital	Liability
Meaning	Owner’s investment or stake	Amount owed to outsiders
Nature	Owner’s equity in the business	Debt or obligation
Recorded as	Equity in balance sheet	Liability in balance sheet

📈 Importance of Capital:

• Provides the financial foundation for business operations.
• Determines the company’s capacity to grow and take risks.
• Acts as a cushion against losses.
• Used to acquire assets and fund expenses.

🧾 What is Billing?

Billing is the process of creating and sending an invoice or bill to a customer for goods sold or services provided. It shows the amount the customer needs to pay and details about the transaction.

Simple explanation:

Billing = Asking the customer to pay for what they bought.

Key Points about Billing:

• Includes important details like:
• Customer’s name and address
• Description of goods or services
• Quantity and price
• Total amount payable
• Taxes (like GST or VAT)
• Payment terms (due date, method, etc.)
• Used for recording sales in accounting.
• Helps businesses keep track of revenue and payments.
• Essential for legal and tax purposes.

Example of a Billing Document:

Item	Quantity	Price per Unit	Total Price
Laptop	1	$1,000	$1,000
Mouse	2	$20	$40
Subtotal			$1,040
GST (10%)			$104
Total Amount			$1,144

🧾 What is Taxation?

Taxation is the process by which a government levies charges or compulsory contributions on individuals, businesses, or other entities to generate revenue for public purposes.

Simple Explanation:

Taxation = Money paid to the government to fund public services like roads, schools, hospitals, and defense.

Key Points about Taxation:

• Taxes are mandatory and enforced by law.
• Collected from income, sales, property, goods, services, etc.
• Helps the government run the country and provide services.
• Different types of taxes apply depending on the country and laws.

Common Types of Taxes:

Tax Type	Description	Example
Income Tax	Tax on individual or business earnings	Tax on salary, business profit
Sales Tax / VAT / GST	Tax on sale of goods and services	GST on retail sales
Property Tax	Tax on ownership of property	Tax on land or buildings
Excise Duty	Tax on manufacture or sale of certain goods	Tobacco, alcohol tax
Customs Duty	Tax on imported or exported goods	Import duty on electronics

Why Taxation is Important:

• Funds government operations and public welfare.
• Redistributes wealth and reduces inequality.
• Influences economic decisions and growth.

Taxation in Accounting:

• Businesses must collect and pay taxes accurately.
• Taxes appear as liabilities (like GST payable) or expenses (like income tax).
• Proper tax accounting ensures compliance and avoids penalties.

🧾 What is GST?

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services in many countries, including India.

Simple Explanation:

• GST = A tax you pay on almost everything you buy or sell, combined into one system.

Key Points about GST:

• Replaced many earlier taxes like VAT, Service Tax, Excise Duty.
• It is a destination-based tax, meaning tax is collected where the goods or services are consumed.
• Collected at every stage of the supply chain but offset by input tax credit, so the final consumer bears the cost.
• Aims to simplify taxation and create a unified market.

Types of GST (In India):

Type	Applies to
CGST (Central GST)	Collected by Central Government on intra-state sales
SGST (State GST)	Collected by State Government on intra-state sales
IGST (Integrated GST)	Collected by Central Government on inter-state sales

How GST Works (Example):

• Manufacturer sells goods to wholesaler: GST charged.
• Wholesaler sells to retailer: GST charged but offset by credit of GST paid earlier.
• Retailer sells to customer: GST charged, final consumer pays the tax.

Importance of GST:

• Simplifies the tax structure.
• Prevents tax cascading (tax on tax).
• Increases compliance and transparency.
• Helps in ease of doing business.

🧾 What is VAT?

VAT stands for Value Added Tax. It is a type of indirect tax charged on the value added at each stage of the production or distribution of goods and services.

Simple Explanation:

• VAT = A tax on the value added to goods or services at each step before the final sale to the consumer.

How VAT Works:

• Businesses collect VAT on their sales (output VAT).
• They pay VAT on their purchases (input VAT).
• They remit the difference (output VAT minus input VAT) to the government.
• This avoids tax being charged on the entire sales amount repeatedly (no tax on tax).

Example:

• Manufacturer buys raw materials for $100 + $10 VAT.
• Manufacturer sells product to retailer for $200 + $20 VAT.
• Retailer pays $220 but can claim $10 input VAT paid earlier.
• Retailer sells to consumer for $300 + $30 VAT.
• Retailer pays government $20 VAT (output $30 – input $10).

Why VAT is Important:

• Generates government revenue.
• Prevents cascading tax effect.
• Transparent tax system.
• Encourages compliance by businesses.

VAT vs GST:

• VAT is generally applied only on goods.
• GST (Goods and Services Tax) is more comprehensive, covering both goods and services.
• Many countries have replaced VAT with GST for simplification.

🧾 What is TDS?

TDS stands for Tax Deducted at Source. It is a mechanism of collecting income tax in India where tax is deducted directly from certain payments like salary, interest, rent, or contractor fees before the money is paid to the recipient.

Simple Explanation:

TDS = Tax taken out upfront before you get paid.

Key Points about TDS:

• Helps the government collect tax gradually rather than all at once.
• The person or entity making the payment (called the deductor) deducts TDS.
• The deducted tax is deposited with the government on behalf of the recipient (called the deductee).
• The recipient can claim credit for the TDS while filing their income tax return.
• Different types of payments have different TDS rates.

Common Payments Subject to TDS:

Payment Type	Example
Salary	Monthly wages
Interest on securities	Bank interest
Rent	Rent for land, building, or machinery
Professional fees	Payments to consultants, contractors
Commission	Brokerage or agent commission

Why TDS is Important:

• Ensures steady flow of revenue to the government.
• Minimizes tax evasion.
• Makes taxpayers comply regularly.

TDS in Accounting:

• Recorded as a liability for the deductor (amount deducted but not yet paid to the government).
• Deductee records it as tax paid in advance and adjusts while filing returns.

🧾 What is TCS?

TCS stands for Tax Collected at Source. It is a tax that a seller collects from the buyer at the time of sale of certain goods or services, which is then deposited with the government.

Simple Explanation:

TCS = Tax the seller collects from the buyer upfront during the sale.

Key Points about TCS:

• Applicable on the sale of specified goods and services.
• The seller collects this tax in addition to the sale price.
• The collected amount is deposited with the government.
• Buyer can claim credit for TCS while filing income tax returns.
• Different goods or transactions have different TCS rates.

Common Transactions Subject to TCS:

Transaction Type	Example
Sale of scrap	Selling scrap materials
Sale of minerals	Mining or quarrying minerals
Sale of timber	Timber obtained by cutting trees
Sale of tendu leaves	Used in making beedis (Indian cigarettes)
Sale of certain motor vehicles	Vehicles above a specified price

Why TCS is Important:

• Helps the government track high-value transactions.
• Prevents tax evasion by collecting tax at source.
• Ensures transparency in business transactions.

TCS in Accounting:

• The amount collected is shown as a liability until deposited with the government.
• Seller needs to report TCS collected in tax returns.

📄 What is a Debit Note and Credit Note?

Both Debit Note and Credit Note are documents used in business to adjust the amounts in sales or purchase transactions, especially when goods are returned or there are changes in billing.

🔹 Debit Note

• Issued by the buyer to the seller.
• Used when the buyer returns goods or is charged less than originally invoiced.
• It increases the amount payable by the seller to the buyer (or reduces the buyer’s liability).
• Essentially, it is a request for a debit adjustment on the seller’s account.

Example: If you receive damaged goods worth $500 and return them, you issue a debit note to the seller to reduce your payable by $500.

🔹 Credit Note

• Issued by the seller to the buyer.
• Used when the seller acknowledges a reduction in the amount due (due to returns, discounts, or errors).
• It reduces the amount receivable by the seller (or the buyer’s liability).
• Essentially, it is a confirmation of a credit adjustment.

Example: If a buyer returns goods worth $500, the seller issues a credit note to acknowledge the return and reduce the buyer’s payable.

Summary Table:

Document	Who Issues It	Purpose	Effect on Accounts
Debit Note	Buyer	To notify seller about returned goods or increase payable	Increases seller’s liability to buyer
Credit Note	Seller	To acknowledge returned goods or reduce payable	Decreases buyer’s liability to seller

🛒 What is POS (Point of Sale)?

POS (Point of Sale) refers to the place or system where a sales transaction is completed. It’s where a customer pays for goods or services, and the business records the sale.

Simple Explanation:

POS = The checkout counter or system where you pay for your purchase.

Key Points about POS:

• Can be a physical location (like a retail store counter).
• Can be a software system used to record sales, print receipts, and update inventory.
• Modern POS systems often include hardware (barcode scanners, cash registers) and software.
• Helps businesses manage sales, inventory, and customer data efficiently.

Features of POS Systems:

• Billing and invoicing
• Inventory tracking
• Payment processing (cash, card, mobile payments)
• Sales reporting and analytics
• Integration with accounting software

Example:

When you buy groceries and pay at the supermarket counter, the cash register or billing software is the POS system.

👔 What is Payroll?

Payroll refers to the process of calculating and distributing salaries, wages, bonuses, and deductions to employees of an organization.

Simple Explanation:

Payroll = Managing how much employees get paid and handling related taxes and benefits.

Key Points about Payroll:

• Includes calculating gross salary (basic pay + allowances).
• Deducts taxes, provident fund (PF), insurance, and other contributions.
• Manages bonuses, overtime, and leaves.
• Generates pay slips for employees.
• Ensures compliance with labor laws and tax regulations.
• Records salary expenses in accounting.

Components of Payroll:

Component	Description
Basic Salary	Fixed part of salary
Allowances	HRA, medical, transport, etc.
Deductions	TDS, PF, insurance premiums
Net Salary	Amount payable after deductions
Employer Contributions	Employer’s share of PF, ESI, etc.

Why Payroll is Important:

• Ensures employees are paid accurately and on time.
• Maintains legal compliance.
• Helps in budgeting and financial planning.
• Keeps track of employee compensation history.

📔 What is a Journal Entry?

A Journal Entry is the recording of a financial transaction in the accounting books of a business. It shows which accounts are affected and by how much.

Simple Explanation:

Journal Entry = The first step in recording any financial transaction, showing what you debit and credit.

Key Points about Journal Entries:

• Every transaction affects at least two accounts (Debit and Credit).
• Helps keep the accounting equation balanced:

Assets = Liabilities + Equity

• Includes details like date, accounts involved, amounts, and description.
• Recorded in a book called the Journal or Day Book.
• Later posted to individual Ledger Accounts.

Format of a Journal Entry:

Date	Account Title (Debit)	Debit Amount	Account Title (Credit)	Credit Amount	Description
2025-05-17	Cash	$1,000	Sales	$1,000	Sold goods for cash

Example:

You sell goods for $1,000 cash.

• Debit: Cash Account $1,000 (Increase in asset)
• Credit: Sales Account $1,000 (Increase in income)

📊 What is a Balance Sheet?

A Balance Sheet is a financial statement that shows a company’s financial position at a specific point in time. It summarizes what the company owns (assets), owes (liabilities), and the owner’s equity (capital).

Simple Explanation:

Balance Sheet = A snapshot of what a business owns and owes on a particular date.

Key Components of a Balance Sheet:

Section	What it Represents
Assets	Resources owned by the business (cash, inventory, buildings)
Liabilities	Amounts the business owes to others (loans, creditors)
Equity	Owner’s interest in the business (capital, retained earnings)

Accounting Equation:

Assets = Liabilities + Equity

This equation must always balance.

Structure of a Balance Sheet:

Assets	Amount	Liabilities & Equity	Amount
Cash	$10,000	Loans	$5,000
Inventory	$7,000	Accounts Payable (Creditors)	$3,000
Fixed Assets	$15,000	Owner’s Capital	$14,000
Total Assets	$32,000	Total Liabilities & Equity	$32,000

Why Balance Sheet is Important:

• Helps assess financial health.
• Used by investors, creditors, and management.
• Basis for making business decisions.

Here’s the difference between Tally 9 and Tally ERP 9.

Aspect	Tally 9	Tally ERP 9
Full Form	Tally Version 9	Tally Enterprise Resource Planning 9
Release Time	Earlier version (around 2006 – 2007)	Launched in 2009
Features	Basic accounting and inventory	Advanced accounting + inventory + payroll + statutory compliance (GST, TDS, TCS, etc.)
Target Users	Small businesses	Small to large businesses
Multi-User Support	Limited or no multi-user support	Multi-user and network capabilities
Compliance	Basic tax compliance	Includes extensive statutory compliance (GST, VAT, TDS, etc.)
Integration	Limited integrations	Supports integration with other business applications
Support & Updates	Discontinued	Regular updates and support

Summary:

Tally ERP 9 is a much more advanced, feature-rich, and updated version designed to handle a wider range of business needs and statutory compliances, while Tally 9 was more basic and suited for simpler accounting tasks.

🔄 Tally ERP 9 vs Tally Prime (v6)

Feature / Aspect	Tally ERP 9	Tally Prime (v6)
User Interface	Traditional and menu-driven	Modern, simplified, and intuitive UI
Search & Navigation	Manual and hierarchical	Universal search bar (“Go To” feature)
Multitasking	Limited multitasking (one screen at a time)	True multitasking with multiple screens open
Ease of Use	Requires training	More user-friendly, easier to learn and use
Reporting	Standard reports	Faster, more flexible, customizable reports
Data Entry	Slower navigation, fewer shortcuts	Improved shortcuts, smoother data entry flow
Installation	Manual steps required	Simplified and faster installation
Printing & Exporting	Basic print/export functions	Smarter printing with preview and easy export
Software Updates	Requires manual checking	In-app updates, notifications built-in
Compliance	Supports GST, TDS, TCS	Enhanced compliance handling and updates
Release Date	Released in 2009	Tally Prime introduced in 2020, version 6 is one of the latest builds

📝 Summary:

• Tally Prime is the next-generation version of Tally ERP 9, designed with a modern interface, better usability, and more powerful features.
• Tally Prime is built to be faster, easier, and more efficient, especially for GST, multitasking, and day-to-day operations.
• If you’re new or upgrading, Tally Prime is the recommended version for current and future use.

🖥️ Tally ERP 9 Screen Components

The Tally ERP 9 interface is designed for efficient data entry and navigation. Here’s a breakdown of the main screen components:

📋 1. Title Bar

• Displays the name of the software (Tally ERP 9).
• Shows the current company name and the version of the software.

📁 2. Gateway of Tally

• This is the main menu screen.
• All features like Accounting Vouchers, Inventory, Reports, and Masters are accessed from here.

🧭 3. Button Bar (Right Side Panel)

• Provides quick access to frequently used options:
• F1 – Select Company
• F2 – Date
• F11 – Features
• F12 – Configuration
• Esc – Exit

📊 4. Main Area (Work Area)

• The central part of the screen where all forms, vouchers, and reports are displayed.
• The content changes based on the task you’re performing (like creating a ledger or entering a voucher).

📌 5. Info Panel (Bottom Bar)

• Shows system information such as:
• Current Period
• Date
• Active Company
• Tally Version
• Keyboard status (Num Lock, Caps Lock)

🧾 6. Menu Options

• Located on the left side of the Gateway of Tally.
• Includes options like:
• Masters (Ledger, Groups, Stock Items)
• Transactions (Vouchers)
• Utilities (Import/Export, Backup)
• Reports (Balance Sheet, P&L, Stock Summary)

🔣 7. Calculator Panel

• Built-in calculator (press Ctrl + N to activate).
• Useful for quick calculations while entering data.

Summary Table:

Component	Description
Title Bar	Shows software name, version, and company
Gateway of Tally	Main dashboard for navigation
Button Bar	Shortcut buttons (F1, F2, F11, etc.)
Work Area	Displays current form or report
Info Panel	Shows date, period, and system info
Menu Options	Navigate to masters, vouchers, reports
Calculator Panel	Built-in calculator (Ctrl + N)

Entries and Under Their Groups/Ledgers

Sr.	Accounts Name	तात्पर्य / अर्थ	Groups
1	Accrued Income	अर्जित आय	Current Assets
2	Accrued Rent	संचित किराया	Current Assets
3	Advertisement Expenses	विज्ञापन खर्च	Indirect Expenses
4	Advertisement Payable	विज्ञापन देय	Current Liabilities
5	Air Conditioner	वातानुकूलक	Fixed Assets
6	Apprentice Premium		Direct Incomes
7	Audit Expense	लेखा परीक्षा व्यय	Indirect Expenses
8	Audit Fees	लेखा – परिक्षण शुल्क	Indirect Expenses
9	Bad Debts	डूबत ऋण	Indirect Expenses
10	Bad Debts Received	डूबत ऋण प्राप्त हुआ	Indirect Incomes
11	Bad Debts Reserve (last year balance)	डूबत ऋण संचय	Indirect Incomes
12	Bank		Bank Account
13	Bank Balance	बैंक में जमा राशि	Bank Account
14	Bank Charges	बैंक शुल्क	Indirect Expenses
15	Bank Commission		Indirect Expenses
16	Bank Loan	बैंक ऋण	Loans & Liabilities
17	Bank Overdraft	बैंक अधिविकर्ष	Bank OD
18	Bills Payable	देय बिल	Current Liabilities
19	Bills Receivable	प्राप्य बिल	Current Assets
20	Bombay Branch	बॉम्बे शाखा	Branch & Division
21	Bonds		Current Assets
22	Building	इमारत	Fixed Assets
23	Capital	पूंजी	Capital Account
24	Car	गाड़ी	Fixed Assets
25	Car Expenses	गाड़ी का खर्चा	Indirect Expenses
26	Car Repair	गाड़ी ठीक करना	Indirect Expenses
27	Carriage Inward	आवक माल भाड़ा	Direct Expenses
28	Carriage on Sales	बिक्री पर गाड़ी	Indirect Expenses
29	Carriage Outward	जावक माल भाड़ा	Indirect Expenses
30	Cash	नकद, भंजाना	Cash in Hand
31	Cash at Bank	बैंक में नकदी	Bank Account
32	CGST (Central Goods & Service Tax)	कर	Duties & Taxes
33	Closing Stock	आखरी बचा हुआ माल	Stock in Hand
34	Coal	कोयला	Direct Expenses
35	Coffee Expenses	कॉफी के खर्चे	Indirect Expenses
36	Coke Expenses	कोक व्यय	Indirect Expenses
37	Commission (Dr.)	दलाली	Indirect Expenses
38	Commission Received (Cr.)	प्राप्त दलाली	Indirect Incomes
39	Computer	संगणक, अभिकलक	Fixed Assets
40	Consignment Stock	निर्गत माल	Current Assets
41	Consumed Material	भस्म सामग्री	Direct Expenses
42	Cool age	शीतलक	Direct Expenses
43	Creditors	लेनदार	Sundry Creditors
44	Debtors	देनदार	Sundry Debtors
45	Deferred Expenses	आस्थगित खर्चे	Current Assets
46	Deferred Income	आस्थगित आय	Current Liabilities
47	Delhi Branch	दिल्ली शाखा	Branch & Division
48	Depreciation	मूल्यह्रास	Indirect Expenses
49	Depreciation on Debt	ऋण पर मूल्यह्रास	Indirect Expenses
50	Depreciation Reserve	मूल्यह्रास आरक्षित निधि	Current Liabilities
51	Difference in Trial Balance (Dr or Cr)	ट्रायल बैलेंस में अंतर	Suspense Account
52	Discount (Cr.)	रक़म में कमी, छूट प्राप्त	Indirect Incomes
53	Discount (Dr.)	छूट की अनुमति	Indirect Expenses
54	Discount Allowed	छूट की अनुमति	Indirect Expenses
55	Discount on Purchase	खरीद पर छूट	Indirect Incomes
56	Discount on Sale	बिक्री पर छूट	Indirect Expenses
57	Discount Received	छूट प्राप्त	Indirect Incomes
58	Donation	दान	Indirect Expenses
59	Drawing		Capital Account
60	Electricity Expenses	बिजली खर्च	Indirect Expenses
61	Expenses on Purchases	खरीद पर खर्च	Direct Expenses
62	Expenses on Sales	बिक्री पर खर्च	Indirect Expenses
63	Export Duty	निर्यात शुल्क	Indirect Expenses
64	Export Tax	निर्यात कर	Indirect Expenses
65	Factory	कारखाने	Fixed Assets
66	Factory Expenses (Lighting, Power etc.)	कारखाने का खर्च	Direct Expenses
67	Factory Incomes	कारखाने की आय	Direct Incomes
68	Farm House	फार्म गृह	Fixed Assets
69	FDR (Fixed Deposit Receipt)	निश्चित जमा रसीद	Current Assets
70	Fire Insurance	अग्नि बीमा	Indirect Expenses
71	Fitting Charges Allowed	फिटिंग शुल्क	Indirect Expenses
72	Fitting Charges Received	फिटिंग शुल्क	Indirect Income
73	Forex Gain Loss	विदेशी मुद्रा लाभ हानि	Indirect Expenses
74	Freight & Tax	माल ढुलाई और कर	Direct Expenses
75	Freight Inward	आवक भाड़ा	Direct Expenses
76	Freight on Purchase	खरीद पर माल ढुलाई	Direct Expenses
77	Freight on Sale	बिक्री पर माल ढुलाई	Indirect Expenses
78	Freight Outward	जावक भाड़ा	Indirect Expenses
79	Fuel	ईंधन	Direct Expenses
80	Furniture & Fitting	चल सामग्री  फिट करना	Fixed Assets
81	Furniture & Fixture	चल सामग्री स्थिरता	Fixed Assets
82	Gas	वाष्प	Direct Expenses
83	Gas and Water	वाष्प और पानी	Direct Expenses
84	General Expenses	सामान्य खर्चे	Indirect Expenses
85	General Reserve	सामान्य रिजर्व	Current Liabilities
86	Given Commission	कमीशन दिया	Indirect Expenses
87	Given Interest	ब्याज दिया	Indirect Expenses
88	Go down Rent	किराया	Indirect Expenses
89	Goods Sent on Consignment	परेषण पर माल भेजा	Sales Account
90	Goodwill	साख, ख्याति	Fixed Assets
91	Gross Profit	सकल मुनाफा, कुल लाभ	Indirect Expenses
92	Horse & Carts	घोड़ा और गाड़ियाँ	Fixed Assets
93	House Rent	मकान किराया	Capital Account
94	Hundi (Assets)		Current Assets
95	Hundi (Liability)		Current Liabilities
96	IGST (Integrated Goods & Service Tax)		Duties & Taxes
97	Import Duty & Import Tax	आयात शुल्क और आयात कर	Direct Expenses
98	Income from Repair	मरम्मत से आय	Indirect Incomes
99	Income on Assets	परिसंपत्तियों पर आय	Indirect Incomes
100	Income on Investments	निवेश पर आय	Indirect Incomes
101	Income Tax	आयकर	Duties & Taxes
102	Input VAT 4%, 12.5%	निवेश वैट	Duties & Taxes
103	Insurance	बीमा	Indirect Expenses
104	Insurance Claim	बीमा का दावा	Indirect Incomes
105	Insurance Company	बीमा कंपनी	Sundry Debtors
106	Interest (Dr.)	ब्याज	Indirect Expenses
107	Interest on Capital	पूंजी पर ब्याज	Indirect Expenses
108	Interest on Drawing	आहरण पर ब्याज	Indirect Incomes
109	Interest on Loan	ऋण पर ब्याज	Indirect Expenses
110	Interest Received (Cr.)	ब्याज प्राप्त किया	Indirect Incomes
111	Invest in Govt. Bond	सरकार बॉन्ड में निवेश करें	Investment
112	Investment	निवेश	Investment
113	Labor Charges	कार्यकर्ता शुल्क	Indirect Expenses
114	Land & Building	भूमि और भवन	Fixed Assets
115	Lease Hold Building	पट्टे पर इमारत	Fixed Assets
116	Legal Expenses	विधि व्यय	Indirect Expenses
117	LIC Premium (Dr)		Capital Account
118	LIC Refund (Cr)		Capital Account
119	Life Insurance	जीवन बीमा	Capital Account
120	Loan on Mortgage	बंधक पर ऋण	Loans & Liabilities
121	Loans	ऋण	Loans & Liabilities
122	Locker		Fixed Assets
123	Loose Tools	फुटकर औजार	Fixed Assets
124	Loss By Damage	नुकसान से नुकसान	Indirect Expenses
125	Loss by Fire & Lighting	आग और प्रकाश से नुकसान	Indirect Expenses
126	Loss in Transit	मार्ग में हुई हानि	Indirect Expenses
127	Loss on Assets	संपत्ति पर नुकसान	Indirect Expenses
128	Loss on Joint Venture	संयुक्त उद्यम पर नुकसान	Indirect Expenses
129	Machine		Fixed Assets
130	Machine Expense	मशीन व्यय	Indirect Expenses
131	Machine Repair	मशीन की मरम्मत	Indirect Expenses
132	Manager’s Commission	प्रबंधक का आयोग	Indirect Expenses
133	Manufacturing Expenses	निर्माण व्यय	Direct Expenses
134	Master Plus		Investment
135	Miscellaneous Expenses	फुटकर खर्च	Indirect Expenses
136	Miscellaneous Income	विविध आय	Indirect Incomes
137	Motor Car	मोटर गाड़ी	Fixed Assets
138	Motor Cycle	मोटर साइकिल	Fixed Assets
139	Motor Cycle Repair	मोटर साइकिल की मरम्मत	Indirect Expenses
140	Mutual Fund	निवेश पूंजी, कोष	Investment
141	Octopi	चुंगी वसूल	Direct Expenses
142	Office Expenses	कार्यालय का खर्चा	Indirect Expenses
143	Oil	तेल	Direct Expenses
144	Opening Stock	प्रारंभिक माल	Stock in Hand
145	Output VAT 4%, 12.5%		Duties & Taxes
146	Outstanding Expenses	बकाया खर्च	Current Liabilities
147	Outstanding Rent	बकाया किराया	Current Liabilities
148	Packing Expenses	पैकिंग खर्च	Indirect Expenses
149	Pan and Tea Expenses	पान और चाय का खर्च	Indirect Expenses
150	Papers Advertisement	पत्रों का विज्ञापन	Indirect Expenses
151	Personal Expenses	व्यक्तिगत खर्च	Capital Account
152	Petrol Expenses	पेट्रोल खर्च	Indirect Expenses
153	Plant	कारख़ाना	Fixed Assets
154	Postage	डाक–व्यय	Indirect Expenses
155	Power & Fuel	बिजली और ईंधन	Direct Expenses
156	Power of Factory	कारखाने की बिजली	Direct Expenses
157	Prepaid Expenses	पूर्वदात व्यय	Current Assets
158	Printing	मुद्रण, छपाई	Indirect Expenses
159	Printing & Advertisement	मुद्रण और विज्ञापन	Indirect Expenses
160	Printing & Stationery	छपाई और लेखन–सामग्री	Indirect Expenses
161	Production Expense	उत्पादन व्यय	Direct Expenses
162	Profit on Consignment	प्रेषण पर लाभ	Indirect Incomes
163	Profit on Joint Venture	संयुक्त उद्यम पर लाभ	Indirect Incomes
164	Provision for Bad Debts	खराब ऋणों के लिए प्रावधान	Indirect Expenses
165	Provision for Discount on Creditors	लेनदारों पर छूट का प्रावधान	Indirect Incomes
166	Provision for Discount on Debtors	देनदारों पर छूट का प्रावधान	Indirect Expenses
167	Provision for Office Expenses	कार्यालय व्यय का प्रावधान	Current Liabilities
168	Purchase	खऱीदना	Purchase Account
169	Purchase Ex-UP		Purchase Account
170	Purchase of New Land	नई भूमि की खरीद	Fixed Assets
171	Purchase of Raw Material	कच्चे माल की खरीद	Purchase Account
172	Purchase Return	खरीद वापसी	Purchase Account
173	Purchase UP		Purchase Account
174	Railway Authority	रेलवे प्राधिकरण	Sundry Debtors
175	Rates & Taxes	दरें और कर	Indirect Expenses
176	Refreshment Expenses	जलपान व्यय	Indirect Expenses
177	Refrigerator	शीतक यंत्र, ठंडा करनेवाला यंत्र	Fixed Assets
178	Rent & Tax	किराया और कर	Indirect Expenses
179	Rent (Cr.)	प्राप्त किया हुआ किराया	Indirect Incomes
180	Rent (Dr.)	दिया हुआ किराया	Indirect Expenses
181	Rent of Vehicle	वाहन का किराया	Indirect Expenses
182	Rent on Purchase	खरीद पर किराया	Direct Expenses
183	Rent Payable	किराया देय	Current Liabilities
184	Rent Received	किराया प्राप्त हुआ	Indirect Incomes
185	Repair & Renovation	मरम्मत और नवीनीकरण	Indirect Expenses
186	Repairing Charges Received	मरम्मत शुल्क प्राप्त हुआ	Indirect Incomes
187	Return Inward	वापसी आवक	Sales Account
188	Return Outward	वापसी जावक	Purchase Account
189	Salary	वेतन, तनख़्वाह	Indirect Expenses
190	Salary & Wages	मजदूरी वेतन	Indirect Expenses
191	Salary Payable	वेतन देय	Current Liabilities
192	Sales	बिक्री	Sales Account
193	Sales Ex-UP		Sales Account
194	Sales Return	बिक्री वापसी	Sales Account
195	Sales UP		Sales Account
196	Scooter	स्कूटर	Fixed Assets
197	Service Tax	कर	Duties & Taxes
198	SGST (State Goods & Service Tax)	कर, चुंगी	Duties & Taxes
199	Shares	शेयर	Investments
200	Shop	दुकान	Fixed Assets
201	Shop Expenses	दुकान का खर्च	Indirect Expenses
202	Shop Rent	दुकान का किराया	Indirect Expenses
203	Showroom	नुमाइश का घर	Fixed Assets
204	Showroom Repair	शोरूम की मरम्मत	Indirect Expenses
205	Stable Expenses	स्थिर व्यय	Indirect Expenses
206	Stamp & Postage	टिकट और डाक	Indirect Expenses
207	Stationery	लेखन–सामग्री	Indirect Expenses
208	Stock (1st April and 31st March)	भण्डार	Stock in Hand
209	Stock of Material	सामग्री का स्टॉक	Current Assets
210	Sundry Creditors	विविध लेनदार	Sundry Creditors
211	Sundry Debtors	विविध देनदार	Sundry Debtors
212	Tax and Insurance	कर और बीमा	Indirect Expense
213	TCS on Sale	बिक्री पर TCS	Duties & Taxes
214	TDS	कर	Duties & Taxes
215	Tea Expense Payable	चाय व्यय देय	Current Liabilities
216	Tea or Coffee Expenses	चाय या कॉफी का खर्च	Indirect Expenses
217	Telegram	तार का समाचार	Indirect Expenses
218	Telephone Expenses	तार का व्यय	Indirect Expenses
219	Telephone Securities	तार का प्रतिभूति	Indirect Expenses
220	Tools	उपकरण	Fixed Assets
221	Trade Expenses	व्यापार व्यय	Indirect Expenses
222	Train Freight & Rent	ट्रेन भाड़ा और किराया	Direct Expenses
223	Travelling Expenses	यात्रा खर्च	Indirect Expenses
224	Typewriter	टंकित्र	Fixed Assets
225	Unearned Income	बिना कमाया पैसा	Current Liabilities
226	Unexpired & Unrequited	अप्रकाशित और अप्रकाशित	Indirect Expense
227	UPTT (Unit Personnel & Tonnage Table)		Duties & Taxes
228	UPTT (Uttar Pradesh Trade Tax)	वाणिज्य कर	Duties & Taxes
239	VAT	कर	Duties & Taxes
230	VAT Payable	कर भुगतानी	Current Liabilities
231	Vehicle Repair	वाहन की मरम्मत	Indirect Expenses
232	Wages	मजदूरी	Direct Expenses
233	Wages on Production	उत्पादन पर मजदूरी	Direct Expenses
234	Water of Factory	कारखाने का पानी	Direct Expenses
235	Wholesaler	थोक व्यापारी	Sundry Creditors

Ledgers & Under Their Vouchers with Keys

Sr.	Groups	तात्पर्य / अर्थ	Vouchers	Keys
1	Bank Account	बैंक खाता	Contra	F4
2	Bank OD		Contra	F4
3	Branch & Division	शाखा और प्रभाग	—	—
4	Capital Account	पूंजी खाता	Receipt	F6
5	Cash in Hand	पास की नकद रकम	Amount In Ledger	—
6	Closing Stock	शेषमाल	Amount In Profit & Loss Account	—
7	Current Assets	वर्तमान संपत्ति	Amount In Ledger	—
8	Current Liabilities	वर्तमान देनदारियां, चालू दायित्व	Amount In Ledger	—
9	Direct Expenses	प्रत्यक्ष खर्च	Payment	F5
10	Direct Incomes	प्रत्यक्ष आय	Receipt	F6
11	Duties & Taxes	कर्तव्यों और करों	—	—
12	Fixed Assets	स्थायी संपत्तियाँ, अचल सम्पत्ति	Payment	F5
13	Indirect Expense	अप्रत्यक्ष व्यय	Payment	F5
14	Indirect Income		Receipt	F6
15	Investment		Amount In Ledger	—
16	Loans & Liabilities		Amount In Ledger	—
17	Paid		Payment	F5
18	Purchase Account		Purchase Account	F9
19	Purchase Return		Receipt	F6
20	Sales Account		Sales Account	F8
21	Sales Return		Payment	F5
22	Stock in Hand		Amount In Ledger	—
23	Sundry Creditors		Amount In Ledger	—
24	Sundry Debtors		Amount In Ledger	—
25	Suspense Account		—	—

Numerical with Answers

Numerical No 1

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bad Debt	1500
2	Bill Payable		6000
3	Bill Receivable	4800
4	Building & Land	35000
5	Capital		40000
6	Carriage Inward	800
7	Cash	2500
8	Closing Stock	12000
9	Creditor		8000
10	Debtor	12000
11	Gas & Electricity	1200
12	Insurance	2400
13	Interest Receive		800
14	Opening Stock	8000
15	Purchase	22000
16	Salary	4600
17	Sales		43000
18	Sales Return	1000
19	Wages	2000
	Gross Profit	20000
	Net Profit	12300

Numerical No 2

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Advertisement	100
2	Bad Deft	200
3	Carriage Inward	200
4	Closing Stock	14000
5	Commission		300
6	Discount	100
7	Discount on Purchase		200
8	Drawings		200
9	Electricity	100
10	Gas & Electricity	400
11	Insurance	250
12	Interest		800
13	Office Electricity	200
14	Opening Stock	10000
15	Others Expense	50
16	Printing	100
17	Production	100
18	Purchase	6000
19	Purchase Return		200
20	Rent	100
21	Rent Receive		400
22	Repair	500
23	Salary	300
24	Salary & Wages	400
25	Sales		8000
26	Sales Exp	200
27	Sales Return	300
28	Wages	100
29	Wages & Salary	300
	Gross Profit	4600
	Net Profit	3900

Numerical No 3

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bank Loan		25000
2	Building	34000
3	Capital		60000
4	Cash in Bank		22000
5	Cash in Hand	5700
6	Closing Stock	15000
7	Commission		1300
8	Creditor		16000
9	Debtor	8000
10	Discount	440
11	Fright on Sale	1400
12	Furniture	7000
13	Insurance	1460
14	Interest	2800
15	Machinery	23000
16	Office Exp	3900
17	Opening Stock	8600
18	Purchase	22600
19	Purchase Return		1600
20	Salary	4600
21	Sales A/c		44300
22	Sales Return	1300
23	Wages	2000
	Gross Profit	26400
	Net Profit	13100

Numerical No 4

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Advertisement	4000
2	Bank Loan		7000
3	Bill Payable		6500
4	Bill Receivable	5000
5	Capital		74150
6	Cash	2800
7	Closing Stock	76000
8	Commission	5000
9	Creditors		356000
10	Debtors	24000
11	Discount	2000
12	Discount Receive		1800
13	General Exp	10400
14	Machinery	25000
15	Opening Stock	20000
16	Purchase	167000
17	Purchase Return		2500
18	Rent & Taxes	2800
19	Salary	10000
20	Sales		180050
21	Sales Return	1200
22	Wages	28400
	Gross Profit	41950
	Net Profit	9550

Numerical No 5

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bank Loan		108000
2	Building	180500
3	Capital		452530
4	Carriage Outward	5500
5	Carriage Inward	4000
6	Cash in Bank		380000
7	Cash in Hand	11250
8	Closing Stock	48000
9	Commission		3800
10	Creditors		85000
11	Debtors	70080
12	Furniture	40000
13	General Exp	2800
14	Interest		12000
15	Opening Stock	21000
16	Purchase	180000
17	Purchase Return		12400
18	Rent	9600
19	Sales		270000
20	Sales Return	18000
21	Wages	2100
	Gross Profit	105300
	Net Profit	103200

Numerical No 6

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Advertisement	18320
2	Bill Payable		186000
3	Bill Receivable	6400
4	Buildings	155000
5	Capital		250400
6	Carriage Inward	4800
7	Carriage Outward	3400
8	Cash	46910
9	Closing Stock	88050
10	Creditors		80320
11	Furniture	80000
12	General Exp	5950
13	Machinery	65000
14	Opening Stock	48600
15	Purchase	180400
16	Salary	36000
17	Sales		288320
18	Sales Return	4800
19	Stationary	2300
20	Wages	1680
	Gross Profit	136090
	Net Profit	70120

Numerical No 7

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Advertisement	360
2	Bill Payable		1700
3	Building	26600
4	Capital		32600
5	Cash	2245
6	Closing Stock	7290
7	Commission		745
8	Creditors		8640
9	Debtors	9360
10	Furniture	3600
11	General Exp	380
12	Octori	730
13	Opening Stock	6340
14	Post Exp	520
15	Purchase	36460
16	Repair	230
17	Salary	3260
18	Sales		50410
19	Sales Return	850
20	Type Writer	1200
21	Wages	1960
	Gross Profit	11360
	Net Profit	7355

Numerical No 8

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bad Deft	1500
2	Bank	1500
3	Bill Payable		1700
4	Capital		10000
5	Carriage Inward	350
6	Cash	2500
7	Closing Stock	13800
8	Commission		1500
9	Creditor		1000
10	Debtors	2700
11	Drawings	900
12	Furniture	3600
13	Interest Receive		400
14	Machinery	2500
15	Opening Stock	2000
16	Purchase	9500
17	Purchase Return		200
18	Rent	450
19	Repair	230
20	Salary	1000
21	Sales		10000
22	Sales Return	300
23	Wages	5000
	Gross Profit	6850
	Net Profit	5570

Numerical No 9

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Audit Expense	200
2	Bill Payable		6000
3	Bill Receivable	4800
4	Cash	2500
5	Closing Stock	15000
6	Commission		1300
7	Donation	400
8	Insurance	200
9	Interest Receive		800
10	Legal Expense	400
11	Lighting	300
12	Motor Car	8000
13	Octori	200
14	Opening Stock	8600
15	Other Income		800
16	Production Expense	600
17	Purchase	22600
18	Purchase Return		1600
19	Sales		44300
20	Sales Return	1300
	Gross Profit	27600
	Net Profit	29000

Numerical No 10

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bad Debt	200
2	Closing Stock	14000
3	Commission		300
4	Discount	100
5	Discount on Purchase		200
6	Drawing		200
7	Interest		800
8	Office Electricity	200
9	Opening Stock	10000
10	Other Expense	50
11	Purchase	6000
12	Purchase Return		200
13	Rent	100
14	Rent Receive		400
15	Salary	300
16	Salary & Wages	400
17	Sales		8000
18	Sales Return	300
19	Wages	100
20	Wages & Salary	300
	Gross Profit	5500
	Net Profit	5850

Numerical No 11

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Bank Loan		25000
2	Bill Payable		500
3	Bill Receivable	800
4	Capital		60000
5	Cash in Bank	22000
6	Cash in Hand	5700
7	Closing Stock	15000
8	Commission		1300
9	Creditors		16000
10	Discount	440
11	Fright on Sales	1400
12	Furniture	7000
13	Income on Investment		300
14	Insurance	1460
15	Interest	2800
16	Interest on Drawing		500
17	Land	2000
18	Machinery	23000
19	Office Expense	3900
20	Opening Stock	8600
21	Purchase	22600
22	Purchase Return		1600
23	Salary	4600
24	Sales		44300
25	Sales Return	1300
26	Wages	2000
	Gross Profit	26400
	Net Profit	13900

Numerical No 12

Sr.	Ledgers/Accounts	Dr.	Cr.
1	Advertisement	500
2	Bank Loan		1500
3	Carriage Inward	200
4	Closing Stock	14000
5	Commission		400
6	Discount	200
7	Electricity	200
8	Gas & Electricity	400
9	Insurance	300
10	Interest		900
11	Office Electricity	200
12	Opening Stock	10000
13	Other Expense	500
14	Printing	200
15	Production	200
16	Purchase	8000
17	Purchase Return		300
18	Rent Receive		300
19	Repair	500
20	Salary	300
21	Sales		10000
22	Sales Expense	200
23	Sales Return	500
24	Wages	100
25	Wages & Salary	300
	Gross Profit	4400
	Net Profit	3100