Q1. Opening two or more companies with different names
a. First Company
b. Second Company
c. Third Company
Q2. The role of Buttons
Q3. Meaningful information into all the options available under heading ‘Company Info’
1. Select Company in the different companies.
2. Create Company
3. Backup
4. Restore
5. Quit
Q4. The Ledgers, which has been manually created in Block 2 of MCS-035 exercise
For the Problem of Illustration 2 & Revised Illustration 2
Bad Debts
Bank Commission
Bill Payable
Bills Receivable
Buildings
Depreciation on Machinery
Deprecation on Building
Discount
Discount Received
Check Your Progress 2 Question 4
Bank Balance
Check Your Progress 5 Question 6
Bad Debts
Bill Payable
Check Your Progress 5 Question 7
Bill Payable
Carriage on Sales
Carriage on Purchases
Cash in Bank
Q5. What is a Ledger in Tally?
A Ledger is the actual account head to which you identify a transaction. You pass all accounting voucher entries using ledgers. However, as mentioned in the introduction to Groups, all ledgers have to be classified into groups. Hence, a thorough understanding of account classification is important for working with ledgers. We have reproduced certain portions from the group’s chapter here.
Q6. Create a Sample Ledger in Tally
Q7. Open a ledger named purchase and then delete it.
Created the purchase account
Deleting the purchase account
Q8. Change the name of ledger from purchase to sales.
Purchase Account
Altering to Sales Account
Check Your Progress 2 Question 4
Capital
Building
Check Your Progress 5 Question 6
Fixed Assets
Debtors
Bills Receivable
Investment
Drawings
Purchases
Discount on Creditors
Depreciation on Fixed Assets
Check Your Progress 5 Question 7
Plant & Machinery
Fixture and Fittings
Q10. What do you understand by Voucher?
This is a non-accounting voucher and the entries made using it will not affect your accounts. That is, Tally does not post these entries to ledgers but stores them in a separate "Memo Register". You can alter and convert a Memo voucher into a regular voucher when you decide to bring the entry into your books. View all optional vouchers through Display —>Exception Reports —> Optional Vouchers. View them from the Day Book as well.
Some uses for Memo vouchers
Making suspense paymentsFor example, the company gives an employee cash to buy office supplies, the exact nature and cost of which are unknown. You could enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash. However, a simpler way is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when known.
Vouchers not verified at the time of entryIt sometimes happens that you do not understand the details of a voucher you are entering. Enter it as a Memo voucher and amend it when you get the details.
Items given on approvalYou will normally only enter completed sales into the books. Suppose items are given "on approval". You can track them with a Memo voucher and convert it into a proper Sales voucher, or delete the memo voucher, depending on the outcome.
Reminder serviceYou can enter a Memo voucher for a transaction that will take place in the future and get Tally to remind you about it one day prior to the date. For example, insurance premiums due, taxes due, installment payments, post-dated cheques.
Q11. Show the use of all the Voucher types available with Tally
Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard vouchers are:
-Payment voucher
-Receipt voucher
-Contra voucher -Sales voucher
Sales Orders Sales vouchers/invoices Delivery Notes Rejection In
-Purchase voucher Purchase Orders Purchase vouchers Goods Receipt Notes Rejection Out
-Journal voucher Credit Notes Debit Notes Journal
-Memo voucher Reversing Journal
-Stock Journal
-Physical Stock
You can alter these vouchers to suit your company, and also create new ones. For example, if you wish to distinguish between cash and bank payments you can create vouchers to do this.
The function of each voucher type is now explained.
Payment Voucher
Payment VoucherDescription Record all Bank & Cash PaymentsVoucher Entry Account Amount Amount
Ledger Account Paid e.g., Sundry Creditor, or expense head like Electricity charges.
Debit
Bank or Cash Account Credit
Receipts Voucher
Receipts VoucherDescription Record all receipts into Bank & Cash accountsVoucher Entry Account Amount Amount
Bank or Cash account e.g., Grindlays Bank (Bank Account)
Debit
Income ledger account e.g., Bank Interest (Indirect Incomes) or the giver of money e.g., A debtor (Sundry Debtors)
Credit
Contra Voucher
Contra VoucherDescription Records funds transfer between cash and bank accountsVoucher Entry Account Amount Amount
Cash (Cash-in-hand)Debit
Grindlays Bank (Bank Account) Credit
Sales Voucher
Sales VoucherDescription Records all salesVoucher Entry Account Amount Amount
Buyer’s ledger account, e.g., King & Co (Sundry Debtors)
Debit
Sales Account e.g., software salesVAT output/sales tax
CreditCredit
Purchase Voucher
Purchase VoucherDescription Records all PurchaseVoucher Entry Account Amount Amount
Purchases (Purchase Accounts)Input VAT/Tax
DebitDebit
Supplier’s ledger account, e.g., U S Computers (Sundry Creditors)
Credit
Q12. Change the date of voucher entered.
Q13. Change the period of Voucher entered.
Q14. Generate Balance Sheet, which has been manually created in Block 2 of MCS-035 exercise
The Problem of Illustration 2 & Revised Illustration 2
Balance Sheet
Check Your Progress 2 Question 4
Balance sheet
Check Your Progress 5 Question 6
Balance sheet
Check Your Progress 5 Question 7
Balance sheet
Q15. Generate Profit and Loss Account, which has been manually created in Block 2 of MCS-035 exercise
The Problem of Illustration 2 & Revised Illustration 2
Profit and Loss Account
Check Your Progress 2 Question 4
Profit and Loss Account
Check Your Progress 5 Question 6
Profit and Loss Account
Check Your Progress 5 Question 7
Profit and Loss Account
Q16. Generate Trail Balance, which has been manually created in Block 2 of MCS-035 exercise
The Problem of Illustration 2 & Revised Illustration 2
Trail Balance
Check Your Progress 2 Question 4
Trail Balance
Check Your Progress 5 Question 6
Trail Balance
Check Your Progress 5 Question 7
Trail Balance
Q17. How many types of Balance Sheet can be generated in Tally?
We can generate two types Balance Sheet
1. Vertical Balance Sheet
2. Horizontal Balance Sheet