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 payments

For 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 entry

It 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 approval

You 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 service
You 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 Voucher
Description Record all Bank & Cash Payments
Voucher Entry Account Amount Amount
Ledger Account Paid e.g., Sundry
Creditor, or expense head like Debit
Electricity charges.
Bank or Cash Account Credit
Receipts Voucher

Receipts Voucher
Description Record all receipts into Bank & Cash accounts
Voucher Entry Account Amount Amount
Bank or Cash account e.g.,
Debit
Grindlays Bank (Bank Account)
Income ledger account e.g., Bank
Interest (Indirect Incomes) or the Credit
giver of money e.g., A debtor
(Sundry Debtors)
Contra Voucher

Contra Voucher
Description Records funds transfer between cash and bank accounts
Voucher Entry Account Amount Amount
Cash (Cash-in-hand)
Debit
Grindlays Bank (Bank Account) Credit
Sales Voucher

Sales Voucher
Description Records all sales
Voucher Entry Account Amount Amount
Buyer’s ledger account, e.g., King
Debit
& Co (Sundry Debtors)
Sales Account e.g., software sales Credit
VAT output/sales tax Credit
Purchase Voucher

Purchase Voucher
Description Records all Purchase
Voucher Entry Account Amount Amount
Purchases (Purchase Accounts) Debit
Input VAT/Tax Debit
Supplier’s ledger account, e.g., U S
Credit
Computers (Sundry Creditors)
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