BASIC ACCOUNTING

Accounting is a finance support system that

Record transactions
Classifies transactions and Events
Express transactions in monetary terms
Helps to monitor financial performance and conditions of business
Helps to evaluate and establish control for business.

TRANSACTION
Transaction is an event that changes financial position or its earnings of an
organization. Transaction is classified as

RECEIPT
Cash or Bank
PAYMENTS Cash or Bank
Purchases and Sales

Essential function of accounting is recording the transaction and ascertain financial

status of the organization on a particular date.

USUAL TRANSACTION OF A BUSINESS ARE

1. Purchase of goods as raw materials for further processing or as finished goods
for resale
2. Payments of expenses incurred for business
3. Sale of goods and services
4. Receipts of cash or cheque
5. Other payments in cash or cheque

IN COURSE OF BUSINESS PARTIES TO BE DEALT ARE

1.
2.
3.
4.
5.
6.
7.

Suppliers who supply goods and services for cash or cheque or on credit
Customers who buy goods and services for cash or credit
Employees who provides services in exchange of salaries and wages
Banks with whom accounts are maintained
Suppliers of equipments, building and other assets needed to carry on business.
Financiers who lends money for business
Owners who hold a share in the capital of business

TYPES OF ACCOUNTS

There are three types of accounts.

1. Real Accounts
2. Personal Accounts
3. Nominal Accounts

Real accounts
Personal accounts
Nominal Accounts

Building, Furniture, Cash etc.

Suppliers, Buyers, Lenders
Sales, Cost of goods, Expenses

ACCOUNTS ARE BROADLY CLASSIFIED AS

Assets, Liabilities, Capital, Revenue and Expenses.
Assets & Liabilities are taken to Balance Sheet.
Revenue and Expenses are shown in Profit and Loss statement.
The accounts whether they are external financial accounts or internally focused
management accounts should reflect true substance of business. A number of
principles, concepts and conventions are used to ensure that accounting informations
are presented accurately and consistently.
REALISATION

Deals with how revenue is realized in the business.

Revenue is recognized only when it is received
(when an asset is sold or exchanged). It is legally
due and collectible.

MATCHING

During the accounting period reported revenue

must set off expenses to give a true picture of profit
earned.

ACCRUAL

Under this method revenue earned and expenses

incurred during the period of accounting
irrespective of the actual receipt or payment.

For Example

Any payments due, under credit system, even after

sometime are treated as expenses for the said
period.

GOING CONCERN

Transactions are recorded in the business as an

ongoing concern.

PERIODICITY

Financial statements are generated for relatively for

shorter period such as quarterly, half yearly or
annual.

ENTITY

Concern is treated as separate from individuals.

MONEY MEASUREMENT

Under accounting all units are expressed using a

common measurement expressed in terms of
money are recorded.

DOUBLE ENTRY SYSTEM

Is a system of recording transactions in a manner

that maintains the equality of accounting equation.
This accounting system of recording each
transaction as debit and credit where every debit,
has a corresponding credit and vice versa.

RULES OF ACCOUNTING
REAL ACCOUNTS

PERSONAL
ACCOUNTS

NOMINAL
ACCOUNTS

DEBIT

What Comes In

The Receiver

Expenses & Losses

CREDIT

What Goes Out

The Giver

Income & Gains

MODE OF ACCOUNTING

Journals
Ledgers

Journal is a book in which business transactions are entered in a chronological order,

report of single business transaction is known as Journal entry. Every such journal entry
has to be supported by a voucher evidencing the related transaction.

POSTING
The process by which a transaction is transferred or moved to an account.

ACCOUNTING PERIOD

A regular period of time, such as quarter of a year, for which financial statement is
generated, is called accounting period.

TRIAL BALANCE
A trial balance is a list of balances of all ledger accounts. It is prepared after all the
transactions are entered into journal and the journal entries posted to ledger accounts
and ledger accounts balanced.
A detailed trial balance contain account name, debit balances, credit balances

FINANCIAL STATEMENTS
Financial statement is a periodic report prepared from accounting records of a company.
Financial statement include, Profit & Loss account (or income statement), the Balance
sheet, Cash flow statement, Financial statements are made usually on quarterly, half
yearly or annual basis.

FOR REPORTING
Profit & Loss statement is divided into

Trading account
Profit & Loss account

PROFIT AND LOSS STATEMENT

Profit and Loss statement is further classified
Gross Profit

is arrived at after considering core activities in business.

GROSS PROFIT

Net Profit

is arrived at after considering administrative expenses incurred for

the period.

NET PROFIT

NET SALES - COST OF SALES

(GROSS PROFIT + OTHER INCOME) - SELLING AND

ADMINISTRATIVE EXPENSES + DEPRECIATION +
INTEREST + TAXES + OTHER EXPENSES

TRADING ACCOUNT
Trading account is prepared to arrive at gross profit earned by the organization over a
specified period from direct operations.
Profit and Loss account is the net profit of the company considering all incomes and
expenses incurred over a period of time.
Balance sheet is the statement that summarises,

The assets and liabilities of a company

The excess assets over liabilities are the net worth of the company.

BALANCE SHEET PROVIDES INFORMATIONS THAT HELPS

IN ASSESSING
1.
2.
3.
4.

Companys long term strength.

Assets portfolio
Efficient day to day working capital management
Companys sustainable performance

BUSINESS ORGANISATIONS
Business organizations perform a variety of functions and transactions. Based on that
they are classified as
1. Service organizations
2. Trading organizations
3. Manufacturing organizations
The legal description of business houses are proprietorship, partnership limited
companies etc.

SERVICE ORGANISATION
An organization which provides services is called service organizations. Customer
interaction is most important, services are usually provided by men and not machines.
Here intangible assets like good will etc. are created.
Accounting under service organization does not deal with inventories. Billing for service
is made on completion of the job. The focus is in utilization of human resources.

TRADING ORGANISATION

An organization involved in the process of buying and selling of products. They act as
channels that provides goods produced by manufacturers at a convenient place, price
pact (quantity)
Trading organizations should keep a continued tract of products and ensure that
inventory planning is done to take advantage of demand when arises. Should always
ensure steady the supply of products. The accounts should have inventory system also.

MANUFACTURING ORGANISATION
Manufacturing is a process of transforming raw materials (inputs) into finished goods
(outputs). For consumers or for further processing, by others, the success of the
manufacturing organization lays in its ability to effectively carryout this process and
profitability.
A manufacturing organization to be successful has to consider more factors in its style
of functioning.
The manufacturer has to find an effective answer to
PRODUCT

Should be standard or a customisedone

Should be acceptable to customer
Order numbers and volume based on the above
Time schedule for production
And strict adherence to the schedule

The strategy adopted should ensure production is based on orders and also a regular
demand. Further to ensure supply of sub components without interruption.

ACCOUNTING IN MANUFACTURING ORGANISATION

Account for inventories like raw materials, work in progress, and finished goods to arrive
at profit made for that period
Changes in inventory valuation method affect profit
Accounting of manufacturing co. requires more planning, preparation and scheduling
Calculation of cost of sales is relatively complex
Research and development expenses are relatively higher in manufacturing
organizations.

ACCOUNTING ON COMPUTERS
Information and technology has changed the way business is conducted. An effective
accounting system will support the management in making strategic business decisions
quickly. As the decisions change the accounting system must also change to the needs.

BENEFITS OF ACCOUNTING ON COMPUTERS

1. Result in generation of timely reports in desired formats and resolves time inquiry
needs and accuracy is ensured to enable faster decision making
2. Facilitates sharing between accountants across different locations in the same
organization
3. Supports financial planning tools such as budget performance reports which in
turn facilitate control and evaluation of business process

TALLY FUNDAMENTALS
Tally is a leading accounting package. The first version was released in 1988. It has lot
of modifications and at present ERP9 tally is the version used.
Unlike computer accounting package, which require numeric codes, tally is not having
any numeric code for accounts.
Tally provides a complete business solution with accounting and inventory.
With tally system the user can choose between accounting and accounting with
inventory and also can choose whether it has to integrate or not.
Tally can adapt to any business need. It is suitable to a range of organizations from
grocery stores to large companies with international locations and operations.

TALLY FEATURES
BASIC ACCOUNTING
Complete book keeping, books, registers
and statement of accounts
General ledgers
Accounts receivables and payables
Flexible voucher numbering
Flexible classification of accounts
Panoramic view
Drill down display

BASIC INVENTORY
Stock categories, stock query by stock
group or stock category
Multiple godowns
Stock transfers from godowns, branches
Multiple stock valuation
Batchwise/lotwise including expiry date
handling
Alternate units of measures and tail units
Tracking through delivery notes/receipt
notes/rejection inwards/outwards

Database reporting
Voucher & cheque printing
Columnar reports
Bank reconciliation
ADVANCED ACCOUNTING
Multiple companies
Multiple currency
Multiple financial year
Comparison of data using multi-columnar
reporting
Memo vouchers
Post dated vouchers
User defined vouchers
Sales and purchase extracts
Cash flow statement
Daily balances and transaction values
interest calculations
Percentage base reporting
Ratio analysis, ser.tax, FBT. Payroll

Additional cost on purchase incurred

Movement/profit analysis party wise /
itemwise / stock groupwise
Customisable sales invoices using price
list
Sale and Purchaser order processing
ADVANCED INVENTORY
Stock items classified as raw materials,
WIP, finished goods
Bill of materials with auto adjustment of
stock
Job, working concepts, including subcontracts
Additional cost of manufacturing with
notional value and percentage
Excise/VAT/CST, TCS
Related Transactions & Reports
Mod VAT support
Reorder levels
Stock Ageing analysis
Batch related reports P.O.S.

Tally has a simple, menu driven installation procedure, uses only minimum hard
disk space
Unlimited multi-user support
Internal back up / restore
Data reliability
User defined security level
Tally audit. Tally vault
Removal of data into a separate company
Multi directory for company management
Import/Export data
Email facility. Multi-Lingual capacity and capability

Payroll is integrated with accounts and benefits user by simplifying pay roll processing.
Enables users to set up and implement salary structures, ranging from simple to
complex as per requirements.
It has all features pertaining to duties & taxes.

GETTING FUNCTIONAL WITH TALLY

Tally set up :
Click

Start Programs Tally 9 Tally 9.Icon

Double click Tally 9 icon on the desktop.

Welcome screen. Tally Power of Simplicity. Displays while software loads.

Tally screen components

Title bar
Horizontal button
Minimise button
Gateway tally
Button toolbar
Calculator/ODBC

Displays Tally version

Selection of language

Displays menus, screens, reports and view data required

Displays buttons which provides quick interaction with tally
For calculation purposes

TO QUIT TALLY
Press ESC. Until you get message Quit? YES / NO. Press Enter

CREATION OF A COMPANY
The first step towards understanding tally is creation of a company in tally.
Go To - Gateway tally Company Info Create Company Name, Address details,
Currency symbols (By default Rs. will appear) Maintain : Field Account only.
And Account with Inventory (Account only for financial accounts of company and
account with inventory for both accounts and inventory records of company)
Financial Year : 12 months from 01.04.0000 to 31.03.0000
Book Beginning from : The date can be changed to actual date of the first transaction.
By default 01.04.000 will appear.
Tally vault password

Skip

Use security control

No

Base Currency info.

Skip

By default the base currency cannot be changed at the time of creation of company. But
can change by activating multi currency in F11 Accounts.

COMPANY FEATURES
F11 Button is used to modify various features of the company.
It is divided into

Accounting features
Statutory features

By default maintain bill wise details? Is activated set it to option NO.

Press Hot Key. S. To Go To Statutory & Taxation.
F12 Configure
Configuration setting for one company will affect other companies also.
Master configuration - F12
Gateway Tally
amendments.
F12

F12 configure

Configuration
General
Numeric symbols
Accts / Inventory Info.
Voucher entry
Invoice / Orders entry
Printing
Connectivity
Licensing
Quit

Accts. / Inv. Info can make necessary

VOUCHER CONFIGURATION
Gateway F.12: configure Voucher entry
General
Numeric symbols
Accts / Inv. Info.
Voucher entry
Invoice / Order entry
Printing, connectivity / Licensing

PROCESSING TRANSACTIONS IN TALLY

LEDGERS AND GROUPS
All financial entries are made using ledger account heads. Every transaction /
voucher can be linked to any of the ledger account it belongs to ledger with same nature
of transactions are grouped based on accounting principles tally provides a set of 28
predefined groups under which ledgers are classified.
Primary Groups

15

Sub Groups

13

Out of 15 primary group 9 groups which are of capital nature display in balance sheet.
And 6 groups which are of revenue in nature display in profit and loss account

ACCOUNTING VOUCHERS
Tally has pre programmed accounting vouchers. Each designed to perform a specific
function. They are :

Contra voucher
Payment voucher
Receipt voucher
Journal voucher
Sales invoice
Purchase invoice

CONTRA VOUCHER
Transfer of Funds F4
o Cash account to Bank account
o Bank account to Cash account
o One Bank to Another Bank account

PAYMENT VOUCHER
Gateway Tally accounts voucher Payment F5
Payment transactions accounted using tally voucher

RECEIPT VOUCHER
Gateway Accounting voucher Receipts F6

JOURNAL VOUCHER
Gateway Accounting voucher F7 Journal
All credit transactions which do not invoice cash or bank dealing immediately.

SALES INVOICE
Gateway Accounting voucher F8 Sales
Goods / Services sold, a voucher, which can be used as proof of purchase and the
document is called Invoice. Tally has the facility to generate the same.

PURCHASE INVOICE
Gateway Accounting voucher F9 Purchase
Purchase invoice is a bill issued by supplier for the purchases made.

FUNCTIONAL KEYS

F2
F4
F5
F6
F7
F10

To change the date

To select contra
To select payment
To select receipt
To select journal
Navigate between accounting reports

F11
F12
ALT + F1
ALT + F2
ALT + F3
ALT + C
ALT + N
ALT + P

Select feature screen

Select configuration screen
Close a company
Change the period
To create / alter / shut a company
Create a ledger in voucher screen
To add multiple columns to a report
To print reports

TRADING ORGANISATIONS

Trading is an exchange of products for a fixed market price or a perceived value.

Traders act as intermediaries between manufacturers and consumers at a
convenient place, price, quantity and time.
Traders are wholesalers and retailers.
Wholesalers procure goods from manufacturers in bulk and sell to retailers.
Retailers purchase merchandise from wholesalers and sell to consumers.
Traders deals with goods and repack them but does not process them. They
keep a track of the demand and inventory planning is done to take advantage of
the demand whenever it arises.

DIFFERENCE BETWEEN TRADING AND SERVICE ORGANISATION

TRADING ORGANISATION
SERVICE ORGANISATION
Sells goods
Sells services
Maintain inventory
No inventory
Cost of trading org. is the cost of goods Cost of service org. is cost of providing
sold
service.
Goods are tangible
Services intangible

ACCOUNTING AND COMMERCIAL TERMS

Cost of goods available for sale.
Cost of goods available for sale

Opening stock + Purchases Purchase

Returns and allowances.

Cost of goods sold

- Closing stock

Gross Profit

Gross profit is arrived at by reducing

direct expenses from direct income

Operating Expenses

Periodic expenses incurred for running

business (including all sales, marketing
and administrative exp.)

Operating Profit

Gross profit operating expenses

Net Profit

Operating profit Interest expenses

Income tax expenses

INVENTORY
Consists of raw materials and other items available for sales or in the process of being
made ready. Otherwise money invested in raw materials, work in progress and finished
goods, for expected future sales.

INVENTORIES ARE ASSETS

Cost of purchase

Includes purchase price including duties and taxes (other

than those recoverable from tax authorities) Freight inwards
and other expenses directly attributed to acquisition. (Trade
discounts rebates, duty drawbacks and other similar
expenses)

INVENTORY VALUATION
To be valued at lower cost or net realizable value, in a price sensitive market where
selling price of materials based on cost of purchase the questions to be answered are :
Is input stock identifiable with output stock?
Is cost input stock identifiable with output stock used for sales?
Valuation of stock has to serve
Closing stock to be valued close to market realizable value.
Input valuation method on profits should be measurable.
The valuation method has to facilitate comparison.

INVENTORY COSTING METHODS :

FIFO - (FIRST IN FIRST OUT)
Goods purchased first assumed to be goods sold, closing stock. Hence, will consist of
most recently purchased goods or produced. It is useful only when price is stable.
LIFO - (LAST IN FIRST OUT)
Wherein last goods purchased are assumed to be first goods sold. So closing stock will
consist of goods first purchased.

ADVANTAGES OF LIFO

Matches more recent cost with current revenue.

With increasing price yields lowest taxable income.
With reduced taxes cash flow improves.
The need to write down inventory to market value is lower.

DISADVANTAGES OF LIFO METHOD

Does not approximate flow of goods.

Yields lowest income (Net). Hence reduced earnings.
Inventory is understated relative to current cost.
Involuntary liquidation may result in income which is detrimental from tax view.
May cause poor buying.

WEIGHTED AVERAGE
Under this each quantity to be averaged after multiplying them by weighted quantities.

STANDARD COST
A standard price is set for each material and issues are made for a particular period. A
comparison of two jobs is not possible due to market fluctuations.

INVENTORY SYSTEM
QUANTITY Vs. VALUE RECORDS
Both used to record movement of stock value records are for people who deal with
suppliers and customers. It helps to reveal stock position for updating sales and
purchase records. Quantity records are maintained usually in factories.

PERPETUAL INVENTORY SYSTEM

Inventory accounting is kept upto date and it involves recording of receipts and delivery
of materials on daily basis.

THIS SYSTEM IS PREFERRED IN CASES WHERE

Physical verification is difficult.

Movement of materials significant
Movement at stores level can be recorded.

This system is applicable when integrate accounts with inventory in F11 is set to YES.

DETERMINING INVENTORY LEVELS

Usually determined by sales projections, however a minimum stock has to be
maintained. For reasons there is a lead time involved for procurement of goods factors
such as machine breakdown, strike and other expenses.
An accurate prediction of availability of goods at a desired location and price, at the time
it is required, is difficult.

PURCHASES AND SALES

Purchases have been classified as down payment purchases and credit purchases.
Down payment purchases are known as cash purchases where payment is by cash or
bank payment.
When payment is made on an agreed future date with mutual consent it is known as
credit purchases.
While recognizing purchase of goods, organizations have to answer.
1. Has been authorized?
2. Are goods actually received?
3. Whether invoices raised matched with the authorization and actual receipt of
goods?
Payments will be released when above factors are adhered to.
Credit and cash sales are also similar in nature of purchases. Instead of purchase under
sales, invoicing, delivery note etc. will be taken into account.

Examples
Purchase :

Credit :

Cash / Bank Payment

Sales

Purchase account

Dr.

Cash / Bank A/c.

Dr.

Cash / Bank account

Cr.

Sales A/c.

Cr.

Purchases A/c

Dr.

Partys A/c

Dr.

Party Account

Cr.

Sales A/c

Cr.

When payment is made

When actual receipt is made

Partys Account

Dr

Cash / Bank A/c

Dr

Cash / Bank A/c.

Cr

Partys A/c.

Cr

PRICE LEVEL
Products are sold in different markets for different prices and different customers. The
price level features in tally allow setting up of different price list for same items.

REVENUE RECOGNITION PRINCIPLES

Revenue can be recognized under accounting standard. 9 when
1. Significant risks and rewards of ownership of goods are transferred to buyer.
2. Seller retains no effective control of goods, usually associated with ownership.
3. No significant uncertainty exists regarding the amount of consideration to be
received.

ACCOUNTING AND COMMERCIAL TERMS

CREDIT PERIOD

Arrangement made for deferred payment of services and

goods.

TRADE DISCOUNT AND CASH DISCOUNT

TRADE DISCOUNT

Is a discount allowed from price list of commodities. It is

offered on customer segmentation.

CASH DISCOUNT

It is allowed as an inducement/incentive to customers for

prompt payment. It is recognized separately and not
deducted from sales revenue.

RETURNS / ALLOWANCE
Returns are the total value of merchandise returned by customers for refund or credit.
Allowance is a concession allowed/granted to customers for unsatisfactory goods or
services.

GOODS MAY BE RETURNED FOR

Quantity, quality or payment related issues.

AS FOR QUANTITY RELATED ISSUES

Reach for a conclusion of stock delivered. Deliver the balance goods or reduce
customers obligation.

FOR QUALITY RELATED

Take back the stock or offer a discount rate.
How to account the returns?
If purchases or sales already recorded a debit note / credit note has to be raised to
account. If purchase / sales not yet recorded a delivery note / receipt note is issued and
rejection in / rejection out is recorded to account.

DEBIT NOTE
Debit note which accounts for an amount owed by a person or company. It contains
date of return, name of supplier to whom goods have been returned and reasons there
off. It informs supplier that his account has been debited with value of goods returned
taking into account discount allowed.

THE SCOPE OF DEBIT NOTE EXTENDS TO

1. Buyer does not agree with sales invoice of supplier after booking purchases.
2. The supplier intimates the buyer interest for delayed payment.
3. The supplier informs about expenses incurred by him on behalf of buyer is
recoverable.

CREDIT NOTE
Credit note is an acknowledgement and accounts for an amount owed by a person or
company. It is a simple and efficient system to inform supplier of all receipts due. It is
generally issued

Supplier acknowledges the goods returned by the buyer. Interest due to for delayed
payment and reimbursement of expenditure incurred by supplier on his behalf.

BILL OF EXCHANGE
Bill of Exchange is an instrument in writing, containing an unconditional order, signed by
maker (drawer) directing a certain person (drawee) to pay a certain sum of money only
to or to the order of. A certain person or to the bearer (payee) of the instrument. (as per
NI Act of 1881)
It must be accepted by drawee and dated properly and stamped correctly.
Once the instrument is accepted and dated and stamped it is treated as bill of
exchange.
A bill of exchange is payable and receivable.
The Drawer can retain the bill till due date and collect money or endorse the bill to
creditor or discount the bill with (his) banker or send for collection through his banker.

DUTIES AND TAXES

VAT : (VALUE ADDED TAX) is an indirect tax on goods in lieu of sales tax. The
principle is to tax the true value of goods. At each stage of the transaction, it reduces
the tax paid to govt. cost / tax passed onto the consumer.
VAT is a multipoint tax against sales tax which is a single point tax. Under sales tax
value of goods to be taxed in each stage is computed as Basic cost + Profit margin +
Sales tax paid at earlier stages. VAT does away with cascading effect of tax on tax. By
allowing set off for input tax. i.e. tax paid on earlier stage of purchases. Hence it is
efficient, globally acceptable and easy to administer tax system.

THE ADVANTAGES OF VAT ARE

1. Enhancement of competitiveness by removing the cascading effect of taxes.
2. Simplified process of taxation
3. Self regulatory mechanism ensuring greater compliance.

TERMS ASSOCIATED WITH VAT

INPUT VAT

Tax paid on purchases

OUTPUT VAT

Tax charged on sales

INPUT CREDIT

The amount of input tax that is permitted to be set off against

output tax.

COMPOSITE DEALERS
Are those whose annual gross turn over not exceeding a certain threshold (it is decided
by respective state govts) who can opt for composition scheme whereby they will pay
tax as a small% of their gross turnover. However retailers opting for this composition
scheme will not be entitled to input credit. The state govt. will fix the periods and
procedures for payment of the lump sum.

SALES TAX
Sales tax is a levy on purchases and sales of goods in India. It is levied both under
central legislation (CST) and state legislation (Sales tax).
Central sales tax is governed under CST act of 1956. which covers interstate
transactions of sale of goods as well as transactions of import and exports. State sales
tax is only intra state transactions.

FEATURES OF TALLY
BASIC ACCOUNTING
Complete book keeping
Books, registers & statement of accounts
General Ledgers
Accounts receivable & payable
Flexible voucher numbering
Flexible classification of account heads
Drill down display
Voucher & cheque printing
Database reporting
Columnar reports

BASIC INVENTORY
Stock categories
Stock query by stock group
Multiple godowns
Stock transfers to godowns & branches
Multiple stock verification methods
Batchwise / lotwise, including expiry date
Alternate units of measures & tail units
Tracking through receipt / delivery notes
Movement / profitability analysis party wise
/ item wise / stock groupwise
Customizable sales invoices using price
lists with multiple prices

Bank reconciliation
ADVANCED ACCOUNTING
Multi Currency
Multi companies

ADVANCED INVENTORY
Stock items classified as raw materials,
work in progress, finished goods
Bill of material, with auto adjustment of
stocks, job working concepts, including
sub contracting

Comparison of data using multi columnar

reporting
Memo vouchers
Post dated vouchers
User defined voucher types
Sales & purchase extracts
Cash flow statement
Daily balances and transaction values /
interest calculations
Percentage based reporting
Ratio analysis, payroll, point of sales

Additional cost of manufacturing with

notional value and percentage
Excise / VAT analysis on invoices
Modvat support
Reorder levels
Stock aging analysis
Batch related stock reports

MULTI LINGUAL CAPABILITY

Tally system is the first accounting and inventory software with multilingual capability as
on date around 12 languages are included of which 9 Indian languages are seen. Tally
enables you to enter data in one language and translated to different languages of your
choice.

DATA MIGRATION
The latest versions tally 9 ERP. is the present version. It is an ideal solution and helps to
put in the latest version with the help of migration tools and migrate to tally 9 ERP.

FEATURES PERTAINING TO DUTIES AND TAXES

Tally 9 provides :
1.
2.
3.
4.
5.
6.
7.

Statutory reporting capability for VAT, CST, Composite VAT, TDS, ST, TCS, FBT.
Tally capability for trading organizations :
Can be used for preparation of invoices
Balance sheet can be viewed at any point of time
Profit & Loss, cash and funds flow details can be viewed
Stock valuation under multiple methods and stock position in detail
Pending orders, invoices and pending payments against invoices

In short all business details can be ascertained immediately which saves lot of time.

GETTING FUNCTIONAL WITH TALLY

First step to get started with tally is creation of a company for whom the system has to
keep various account heads required for management of financial accounts.

COMPANY CREATION

GoTo Gateway Tally Company info Create company

COMPANY CREATION - SHART AGENCIES

FIELD

DATA TO BE ENTERED
Accept what is displayed in screen
Sharp agencies
Sharp agencies
40, II Avenue, Anna Nagar West, Chennai600040
Tamilnadu
600040
Sharpagencies-sale@gmail.com
Rs. (Predefined)
Account with Inventory

Directory
Name
Mailing name
Address
State
Pincode
Email Address
Currency symbol
Maintain

MAINTAIN
ACCOUNTS ONLY

FINANCIAL ACCOUNTS OF COMPANY

ONLY
Both financial accounts and inventory
records of the company

Accounts with Inventory

Financial Year

01.04.200

Booking Begins From

01.04.200

Tally vault password (Ifany)

Skip the field

Use security control

No

Base currency information

Skip the field

BASE CURRENCY INFORMATION

FIELD
Base currency symbol
Formal, Name
Number of Decimals
Is symbol suffixed to amounts?
Put space between amounts and symbol?
Symbol for decimal portion

DESCRIPTION
Pre-set as default currency Rs.
Complete name of currency symbol by
default this is set as Indian Rs.
By default this is set to 2
By default.. Set to YES
By default.. Set to YES
By default.. Set to PAISE

Decimal space for printing amounts in By default.. Set to 2

words

F11 FEATURES
F11 Used to modify the various features of the company. The button is available in
most applications of tally. For each company separate features activated.
F11 features divided into Accounting, Inventory & Statutory & Taxation

INTEGRATE ACCOUNTS AND INVENTORY

If accounts are not integrated with inventory vouchers will not have any impact on
balance sheet stock figures. Stock balance will be maintained separately. By integration
of accounts & inventory by setting this to YES, inventory entries automatically update
the balance sheet stock figures.
Allow multiple currencies if required can be enabled and transactions can be recorded
in foreign currency. Invoices can be raised in any currency. Bank account or ledgers can
be maintained in foreign currency.
Allow multi currency.. is set to YES.
Likewise any other function such as invoicing, bills wise details is set to YES (whenever
required)

ALTERATION OF A COMPANY
Go To Gateway of tally F3 Company Info Alter
F12 Configure : is used to configure settings of various applications available. In tally,
before starting to work on company it is advisable to configure it by pressing F12.
Go To Gateway of tally F12 Configure Accts. / Inv. Info
Allow advanced entries in masters. Set to YES
Following fields will appear in group creation screen, group behaves like a sub ledger?
Set to YES. Used for calculation (Ex. Taxes, Discounts) (For sales invoice entries) Set
to YES.
Method to allocate when used in Purchase invoice?

Under this when an user enters a purchase transaction using the invoice mode, value
given for a selected groups ledger can be apportioned.
Net balances credit / debit for reporting?
Set the field to YES.

VOUCHER CONFIGURATION
FEATURE

Go To Gateway of Tally
voucher entry.

F12 configure

In the same way wherever configuration is needed you have to go for configuration.
Examples

Show billwise details

Ledger current balances
Allow cash accounts in journal
Warn on negativAe balances

Recording the transactions is the beginning of business transactions being recorded in

the company records.

VOUCHER TYPE
Go To Gateway of tally Accounts info Voucher type Create
For contra entries Tally Accounting vouchers F4
For payments / Bank payments
Tally Accts info Voucher type Create
When purchase of materials
Account is related to stock also.
When segregation of local and outstation creditors sub groups under primary group,
sundry creditors are depicted.
Sundry Creditors

Local creditors
Outstation creditors

Create Local creditors (under sundry creditors)

Gateway of Tally Accounts info Groups Create
Likewise VAT accounts are also to be created.
Note : Enable VAT in F11 features Statutory & Taxation Set to YES
And all basic details are to be filled
Purchase account @ 12.5% or 4% (as per rate) under purchase accounts
Input VAT @ 12.5% or 4% (as per rate) under duties & taxes.
For purchase account inventory is affected but VAT account (input or output) inventory
is not affected.

STOCK ITEM
Stock item is a primary entity. Stock items are used while recording receipts and issue
of inventory.

UNITS OF MEASURES
Units of measures is the basic unit of measurement, it can be simple units (examples
numbers, meters, kgs, pieces) or compound units (box where one box contains 10
pieces). Compound unit is a relation between two simple units.
Hence before a compound

STOCK GROUP
Stock items can be grouped together under stock groups based on some commonality.
Grouping enables easy location and reporting items of a particular brand or type can be
grouped.

CREATION STOCK GROUP

Gateway tally Inventory info Stock group Create
Eg. STABILISER
NAME

STABILISER

UNER

PRIMARY

Can quantities of items be added no.

CREATING UNITS

Gateway of Tally
measure Create

TYPE

Simple

SYMBOL

Nos.

FORMAL NAME

Number

NUMBER OF DECIMALS :

Inventory Info.

Units of

CREATE STOCK ITEM

Tally Inventory info. Stock items Create
NAME

STABILISER

UNITS

Nos.

RATE OF DUTY

RATE OF VAT

As the case may be

TRANSACTION ENTRY IN A PURCHASE VOUCHER

Gateway of Tally Accounting vouchers F9 purchase
For collection of VAT and remittance to tax authorities we have to open VAT adjustment
A/c.
While

Input VAT is for purchase accounts

Output VAT is for sales accounts

As per the govt. guidelines the netting of output VAT and input VAT has to be done at
the end of the month or quarterly and to be remitted or carried over to the next period.
VAT reports have to be generated periodically.

TRANSACTION FOR A JOURNAL VOUCHER IS

Gateway of Tally
computation.

Display

Statutory reports

VAT reports

VAT

COST CENTRES
Are objects for which expenses are incurred under various account heads and cost
control can be effectively established by keeping track of cost at one place. Similar cost
centres for revenue profits can also be created.

TALLY CONCEPT
Tally Accounts info. Cost centres Multiple cost centres create

CHEQUE PRINTING
Cheque printing can be made from payment voucher. In F11 Features Accounting
features ensure that we set to YES. The following

Enable cheque printing

Set / Alter cheque printing configuration
Enter the following details
o Company name
o Name of bank
o Cheque dimension

TO PRINT A CHEQUE
Gateway to Tally Display Day book

INTEREST CALCULATIONS
Activate interest calculations
F11 Features

Accounting features

Set Activate interest calculation to YES

BANK RECONCILIATION

Bank reconciliation is a routine procedure of systematically adjusting the account

balance reported by a bank with account balance of Companys account book and
explain any differences.

TALLY
Go To Gateway of Tally Display Account books Ledger Select bank
Press Alt + F2 to change the period

From 01.04.2.. To 30.04.2...

Click F5 : Reconcile
Here the transaction dates in the bank statement to be given.
For any new transaction where new accounts comes in tally has to be enabled for
opening new accounts to enter the transactions.

CREATION OF PRICE LIST FOR OLD AND NEW CUSTOMERS

F11 Features Inventory features Set use Multiple price level to YES.
ENTER DETAILS AS SHOWN BELOW
COMPANY PRICE LEVELS

Old customers
New customers

CREATION OF PRICE LIST

Go To Gateway of Tally Inventory info. Price list Select all items

DISPLAY AND REPORTS

Report generation is a powerful tool in tally. It helps the user to

Prepare his financial statements based on vouchers entered to date.

Present strategic informations in a manner that would help in his decision-making
and control
o GATE OF TALLY
Balance Sheet
Profit & Loss A/c
Stock Summary
Display
Trial Balance

 Day Book
Account Books
o STATEMENT OF ACCOUNTS
Outstanding
Interest calculations
Cost centres
Statistics
o INVENTORY BOOKS
Stock items
o STATUTORY INFO
VAT Reports
CST Reports
o CASH/FUNDS FLOW
o LIST OF ACCOUNTS
o EXCEPTION REPORTS
Optional vouchers

ACCOUNTING REPORTS
Balance sheet
Go To Gateway of Tally Balance sheet F12
Set Show Percentage to YES
Press Alt + F1 to view detailed balance sheet.

TO ENTER CLOSING STOCK VALUE

Set integrate accounts & inventory to NO in F11 features

In accounting features
Create ledger stock (under stock in hand)
In closing balance specify date : 31.03.20..

PROFIT & LOSS A/C.

Go To Gateway of Tally Profit & Loss A/c. F12 configure

Activate show vertical profit & loss and show percentage in P & L configure
settings.

Press Alt + F1, to see detailed Profit and Loss A/c.

ACCOUNT BOOKS
SALES REGISTER : Displays the monthly summary salesmade
To view : Go To Gateway of Tally Display Account books Sales register

DIFFERENT WAYS OF VIEWING

Use F12 configure to alter sales register configuration settings.
To view summary on quarterly basis, click F5 Quarterly
To Go To Other voucher types from register, click F4 Voucher type
To view sales voucher register in columnar form
Go To Gate of Tally Display Account books Sales register Select month
Voucher register F5 columnar

STATEMENT OF ACCOUNT
Cost centres

Gateway of Tally Display Stt. Of Accounts Cost centres

For Breakup of cost centre

Gateway of Tally Display Stt. Of Accounts Costcentre Breakup

For Ledger Breakup

Gateway of Tally Display Stt. Of Accounts Ledger breakup

OUTSTANDINGS
RECEIVABLES / PAYABLES
Gateway of Tally Display Stt. Of Accounts Outstandings Receivables /
Payables F4
Agewise analysis
To View :

By bill date / By due date

Gateway of Tally Display Stt. Of Accounts Outstandings Payables

F6 agewise

FOR CALCULATION OF INTEREST ACTIVATE INTEREST

CALCULATION
Interest calculations are of two types :
1. Interest on loans and deposits
2. Interest on overdue Receivables / Payables

STATUTORY MASTERS
VAT Classification is a list of VAT rates, which describes nature of business and type of
transaction. It is in built into system. Some of classifications are

INPUT VAT @ 4%
INPUT VAT @ 12.5%
INPUT VAT @ 1%
OUTPUT VAT @ 4%
OUTPUT VAT @ 12.5%
Purchases capital goods
Purchases exempt
Purchases from unregistered dealers.

Depending upon the type of business, type of transaction and statutory requirements of
a state, appropriate classifications have to be selected from the list during ledger
creations, voucher entries etc.
The sales and purchase transactions are segregated based upon the classification
selected during voucher entry and shown in the VAT computation

TO VIEW VAT CLASSIFICATION

Go To Gateway of Tally Display Statutory info. VAT classifications

VAT CLASSIFICATION DISPLAY

Select input VAT (eg.)
NAME

INPUT VAT @ 12.5%

Alias

PURCHASES @ 12.5%

RATE

12.5%

IS SALES

NO

TYPE OF TAX

VAT

USED IN COMPOSITE RETURN

NO

STATUTORY REPORTS
VAT REPORTS
VAT COMPUTATION

To view

Go To Gateway of Tally Display Statutory reports VAT reports VAT

computation

VAT FORMS
VAT returns have to be filed in the prescribed forms of each state.
To View
Go To Gateway Display Statutory reports VAT forms VAT return
Before taking print out, click with Preview button
Likewise other reports also can be generated.

DAY BOOK
RANGE FEATURES
Display and reports in tally can be customerised as per user requirements using filters.
This filter can scan through range of informations.
To view customerised Day book
Go To Gateway of Tally Display Day book
Click

F2 Selection of period
F12 Range

EXCEPTION REPORTS

OPTIONAL VOUCHERS
Optional voucher is not a separate voucher type. It is a non-accounting voucher which is
typically used when a transaction has not been completed. The user does not want it to
affect accounts; an existing voucher can be marked option. This voucher does not get
posted anywhere but remains as optional voucher in optional voucher register. At a
later stage it can be regularized and recorded by modifying the voucher to remove
optional mark.

INVENTORY REPORTS
Tally prepares inventory reports based on vouchers entered till date. The appearance of
reports can be customerised to a users need. For example, to make comparison
between different companies, period of financial year and so on.
Stock summary is a statement of stock in hand on a particular date. Tally treats stock
summary as primary statements and makes it accessible directly from tally.

INVENTORY BOOKS
STOCK ITEM : Summary is a statement which displays inwards, outwards and closing
balance details of a selected stock item on monthly basis.
To view
Go To Gateway Tally Display Inventory books Stock item

VAT FOR COMPOSITE DEALER

All dealers with a gross turn over above the specified limit determined by the state are
required to register under the VAT act, with respective state. All existing dealers are
automatically registered under the VAT Act. For new dealers are allowed 30 days from
the date of liability to get registered.
Small dealers with annual turnover of Rs.5 Lacs are not liable to pay VAT eventhough
the limit will vary from state to state.
Dealers with an annual turnover above 50 lacs who are otherwise liable to pay VAT, can
opt for composition scheme with payment of tax at a small percentage of gross turn
over. This scheme is particularly convenient to retailers.
Dealers who opt for this scheme will not collect VAT on their invoice and are not entitled
to input tax credit on their purchases.

The VAT on their purchases will be the total cost of purchases. But they are required to
submit their VAT returns every quarter in a separate format.

SALIENT FEATURES OF COMPOSITE VAT COMPLIANT

TALLY
Easy set up, error free voucher entry, predefined VAT classification for composition of
VAT tracks each transaction. Facilitates VAT computation report. Generates monthly /
quarterly VAT composition return.

GENERATION OF REPORTS
Go To Tally Display Statutory reports VAT composition reports VAT
composition computation.
Any modifications can be done in F12
From VAT 120. Composition of VAT Tax Returns.

POINT OF SALES (POS) FEATURES IN TALLY

Generates POS. invoice with date and time of transaction

Generates POS related reports such as cash register, sales register, inventory
reports
Ensures management of Gift cards, vouchers, admissions, discounts and so on
Allows multiple mode of payment for a single invoice
Eases cash / credit / debit transactions
Provides quantified tracking of sales and promotions
Allows real time updation of inventory and option of quick matching inventory
Helps to identify consumer purchase pattern
Ensures multi level security level of cash and inventory
Increase efficiency and productivity

CREATION OF VOUCHER

POS Invoicing
o Go To Gateway of Tally Accts. Info Voucher type Create

NAME OF VOUCHER

POS Invoice with class

NUMBERING

Automatic

POS Report
o Go To Gateway of Tally Display Accounts books POS Register

CREATING VOUCHER TYPE

Invoicing in tally for POS is the first step which is known as POS invoice voucher type.
Using voucher class we can predefine accounts, limit the list of ledgers for selection
during voucher entry, automate ledger posting associated with stock items and create
auto selection of duties, discounts and rounding off.
Go To Gateway of Tally Accounts info Voucher type Create

CREATION OF MASTERS
Gateway of Tally Accounts Info. Ledgers Create
LEDGER
PURCHASES
SALES

UNDER GROUP
Purchase Accounts
Sales Accounts

INVENTORY VALUES
AFFECTED OR NOT
YES
YES

CREATION OF STOCK ITEM

Creation of stock item with standard price to set standard rates for stock items, set Allow
Standard Rates for Stock Items to YES in F12. Configure Accts / Inventory Info.
Go To Gateway of Tally Inventory info. Stock items Create

MANUFACTURING ORGANISATIONS
The process of transforming raw materials (Inputs) to finished goods (Output) for
consumers or for further processing by others in the channel is called Manufacturing.
The success of a manufacturing organization depends on its ability to carry this process
effectively and profitably.
A manufacturer before going into production has to know :

Product to be customerised or standardized?

What will be order volumes?
What will be the time required by production unit from receipt of order to
production, taking the resources available into account?
What will be requirement lifecycle (time line, from placement of order to receipt of
goods) as agreed upon by both customer and manufacturer and demand and
competition for the product in the market?

An efficient manufacturer would strive to

Lower costs
Improve effectiveness by creating product value
Meet expectations of all stake holders

DIFFERENCES BETWEEN SERVICE,

MANUFACTURING ORGANISATIONS
SERVICE ORGANISATION
Provides services to others
as an occupation or
business
Major business process of
service at the point of
consumption
No procurement of product
involved
The cost of services
provided
depend
on
demand for such service

TRADING

AND

TRADING ORGANISATION MANUFACTURING

ORGANISATION
Goods are purchased and Raw
materials
are
sold without any further purchased and converted
processing
to final product for sale
Major
business
is Major task is procurement,
procurement of goods for production and sales
sale
Time for procurement of Time from procurement,
products
to
sales
is production
and
sales
relatively less
consumes more time
Cost
of
goods
sold For manufacturer, opening
(opening trading goods + finished goods + cost of
purchase closing stock)
goods manufactured
closing finished goods)

INVENTORY
Inventory consists of raw materials, items available for sales or in process of being
made ready for sale (work in progress). Otherwise inventory is the money invested by
organization on raw materials, work in progress and finished goods.

INVENTORIES ARE ASSETS

Held for sale in course of business

In the process of production for sale
In the form of materials or supplies consumed
In the process of production or rendering services

Proper inventory accounting helps to determine the trading profit for a particular period
with all the related expenses for production. In manufacturing concern the process
involved is more in number and inventory records forms a major cost factor.

It is advisable to follow perpetual inventory system. Under this system, inventory

accounting is kept upto date. Where

Strong physical control over movement of goods ensured.

Physical verification of stock is difficult.
Price movement of materials relevant.
Movement at stores level can be recorded.

In tally, you have to set the integration of accounts with inventory to YES, F11. Features.
OPERATING PROFIT

Gross profit Operating expenses

OPERATING EXPENSES

Expenses incurred in course of running

BUSINESS

It includes all expenses including sales, marketing

and administrative expenses

NET PROFIT

Operating profit Interest expenses Income tax

expenses

COSTING
Costing is essential in a manufacturing organization to control and maximize efficiency
and product value.
COSTING :

Product Cost
Manufacturing Cost
o Direct Material
o Direct Labour
o Manufacturing Overhead

PRIME COST

Add. Direct materials + Direct Wages + Direct Expenses

CONVERSION COST

Cost / Expenses incurred to convert raw materials to final product.

o Direct Labour
o Manufacturing Cost

COST CENTRE

Cost centre is a location, person or item of equipment. In relation to which cost may be
ascertained and used for the purposes of cost control.
Fiscal environment of a manufacturing organization.

DIRECT TAXES
Direct taxes are collected by the govt. directly from tax payers such as income tax,
wealth tax and interest tax.

INCOME TAX
Income tax is the tax on income of individuals. Income tax act classifies individuals into
5 different sources.
1.
2.
3.
4.
5.

Income from salaries

Income from business or profession
Income from house property
Capital gains
Other incomes

TAX DEDUCTED AT SOURCE (TDS)

TDS is one of the modes of collection of taxes. The buyer / seller (deductor) deducts tax
from payment made to seller payee (deductee). The deductor remits this tax to income
tax department.
The seller / payee collects Form.16/16A/16AA Certificate for deduction of tax from the
buyer / payer and files this certificate with his return of income tax claim.
Tax Collected at Source (TCS) is the collection of tax at source by seller (collector) from
the buyer (collectee / payee) for trading purposes of goods specified u/s. 206c(1) of the
income tax act of 1961.

FRINGE BENEFIT TAX (FBT)

The Finance Act. 2005 introduced a new tax structure under title Fringe Benefit Tax
(FBT). By including a new chapter. XII-H. In the IT Act of 1961 containing section 115W
to 115WL, which provides for the levy of additional income tax on Fringe Benefits
offered by employer to employees. FBT is payable in the year in which the expenditure
is incurred. Irrespective of whether expenditure is capitalized or not.
Fringe Benefit Tax is

An expenditure tax, not income

A tax on employers and not on employees. Now under the present tax
amendment employees are liable to pay tax.
A surrogate tax on employers
A tax on benefits enjoyed collectively by employees. (But now it is attributed to
employees)
Payable by employer only if his employees are based in India
Payable by employers irrespective of the fact they are liable to pay income tax.

TALLY SUPPORTS

Basic masters configuration

FBT, transactions
FBT, challans

INDIRECT TAXES
Imposed on commodities, is indirectly borne by consumers / people. It includes excise
duty, sales tax (Now VAT), customs duty, indirect taxes eventhough falls on people it is
different from the person who carries the burden of paying tax.

CENTRAL EXCISE DUTY

Central excise duty is charged on goods manufactured in India under section 3(1) of
Central Excise Act, 1944.
The rate of duty, AD valerom or specific are prescribed under schedule (Cent VAT Duty)
and schedule II (Special Excise Duty) of Central Excise Tariff Act, 1985.
The duty arises when goods are manufactured. However payment has to be made at
the time of removal of goods from the factory. The tax administration and goods
clearances are effected based on manufacturers invoice.
Centvat Credit Rules, 2004 has introduced input credit for excise duty and service tax
on input materials and services for final product.
TALLY SUPPORTS

Excise invoice
Input credits

CUSTOMS DUTY
Customs duty is imposed on import of goods, under sec. 12 of Customs Act. Goods are
taxable when they are brought to India. That is when they are expressed Imported

Goods. Before clearance of imported goods, an importer has to comply with prescribed
customs clearance formalities.
The following documents : Bill of entry, invoices etc.
Bill of entry gives essential particulars relating to goods imported.
Generally handles these formalities himself or appoints authorized agents in the
customs house.
TALLY SUPPORTS

Capturing of invoice particulars for imports

Multi currency operation

SALES TAX
Sales tax is a levy on purchases and sales of goods. It is levied both under central and
state govts. legislation, governed by Central Sales Act 1956, which covers interstate
transaction of sale of goods, transactions of import and export of goods. The local sales
tax is governed by respective State Sales Tax Acts. Where tax is levied on intra state
transaction of sales.
TALLY FEATURES

Support tax calculations

Generate Sales Tax Forms

SERVICE TAX
Service tax is an indirect tax levied by govt. of India on certain categories of services
provided by a person, firm, and agency and so on. Govt. of India has marked a set of
services as taxable under service tax structure, the responsibility of paying service tax
rests with service provider. During the budget there is every likely-hood of bringing more
services under service tax structure and increase the rate of tax also.

TALLY SUPPORTS SERVICE TAX SUCH AS

Basic masters configuration
Service tax transactions
Service tax forms and reports

VALUE ADDED TAX (VAT)

VAT is an indirect tax in lieu of sales tax. Its objective is to ensure a fair and uniform
system of taxation. The basic object of VAT is to tax the True Value added to the goods
at each stage of transaction. Ultimately it reduces.

Tax paid to the government

Tax/Cost is passed on to consumer

Sales tax is single point tax and VAT is a Multi point tax. Under sales tax The value of
goods to be taxed at each stage (ie) Basic cost + Profit Margin + Sales tax paid at each
stage. VAT does away cascading effect of tax by allowing set off for input tax (input
VAT). Paid on earlier stages of purchases.

TALLY PROVIDES

Statutory reporting capability of VAT.

State specific statutory VAT returns

PURCHASES, SALES AND MANUFACTURING

PROCESS IN MANUFACTURE

ASSEMBLING
:
Components
are
assembled into finished product.
PROCESSING
:
Several components are
produced from a common batch of raw materials.
JOB WORK :
Where materials are issued to
outside agencies for carrying out conversion work and
returned as finished / semi finished goods.

The process in a manufacturing cycle will vary across different industries and some may
be outsourced.

STAGES IN MANUFACTURING CYCLE

RAW MATERIALS

The materials used for conversion to finished goods. Hence high investment is required
to stock materials, a proper purchase system is essential to have control and efficient
buying of materials.
Stores means not only covers materials, but also consumables, stores, spares, tools,
fixtures, oils, lubricants and so on. Inventory covers raw materials, work in progress,
and finished stock.
LABOUR
Labour is used to convert materials into finished goods. Direct labour is work done in a
factory on production.
WORK IN PROGRESS
Goods which are in the process of being converted into finished goods. The cost of
work in progress includes raw materials consumed direct labour and proportionate part
of factory overheads.
OVERHEAD EXPENSES
Aggregate indirect material cost, indirect wages and expenses which are not traceable
in the final product.
FINISHED GOODS
Finished goods are products awaiting sales or dispatch against sales order. All the cost
is included here.

PURCHASES
BASIC QUALITY REQUIRED FOR A GOOD PURCHASE

Right quality
Time
Quantity
Price
Source

An effect purchase system will have a purchase budget. Other factors taken into
consideration are :

Availability of raw materials

Source of supply
Availability of cash

Delivery dates for finished goods

TYPES OF PURCHASES
When payment for purchase is made instantly by cash or cheque. It is cash purchases.
If payment is made on an agreed future date it is known as Credit Purchases.

RECORDING PURCHASES
PURCHASE ORDER
Purchase order is a written authorization sent to a vendor to supply goods or services at
a specific price over a specified period. Acceptance of the purchase order constitutes
legally binding contracts.
Purchase account is an account where all inventory related transactions are recorded.
Only those goods purchased for resale are recorded.
PURCHASE RETURNS
Purchase returns or return outwards account record details of goods returned to
suppliers. Goods are often returned if they are not according to the terms and
conditions.
Rejection out, voucher is used to record goods which are rejected and returned to the
supplier.

VALUATION OF INVENTORY
COST OF PURCHASE
Cost of purchase includes duties and taxes (other than those recoverable from tax
authorities). Freight inwards and other expenses directly involved. Trade discounts,
rebates, duty drawbacks etc. are deducted from purchase.
COST OF CONVERSION
Cost of conversion includes cost directly related to the units of production such as direct
labour and also include systematic allocation of fixed and variable production overheads
which include depreciation, maintenance of factory building, cost of factory
management and administration. Fixed cost generally remains constant and variable
cost indirect production cost that vary directly or indirectly with the volume of production.

Arriving at cost when production results in more than one product.

A production process may result in more than one product being produced. Like main
product and by-product, when it is not possible to separate the costs they are allocated
on a rational and consistent basis, may be on a relative sales value of products.

MANUFACTURING / STOCK JOURNAL

Involves transformation, development or modification of raw materials or semi finished
goods from one form to another. The input is referred to as raw materials and final
product as finished goods.
A stock journal records.
Consumption of raw materials.
Transfer of stock from one location to another or one department to another or to an
external agency.

MANUFACTURE OF FINISHED PRODUCTS

BILL OF MATERIALS
Bill of materials (BOM) is a listing of all the assemblies, sub-assemblies, parts and raw
materials which are needed to produce one unit of a finished product. Each finished
product has its own bill of materials.

USES OF BOM

PURCHASE DEPARTMENT
o Materials requisitions are prepared and sent to procurement dept. for
procurement of materials.
STORES DEPARTMENT
o BOM helps stores incharge to track the materials in store.
PRODUCTION DEPARTMENT
o BOM helps to create a work order.
COSTING DEPARTMENT
o On the basis of BOM cost of consumption of raw materials with respect to
each work order can be calculated even before it is completed.

SALES

The transactions involving transfer of goods or services for monetary consideration is

called Sales. The purpose of purchase of goods or manufacture by business houses are
for sales with a profit. Sale of goods forming part of stock in trade as sale and disposal
of old fixed assets is referred to as not sales in accounting.
Type of sale in manufacturing organizations are cash sales and credit sales as the case
of purchases.
The same processes and terms and modalities for purchases are applicable to sales
also. In the manufacturing process we come across
WASTE
A portion of the raw materials lost in the manufacturing process. Normal waste is
absorbed in the cost of net output and abnormal waste is transferred to Profit and Loss
A/c. and written off.
SCRAP
Scrap is the incidental (waste) residue which is in small quantity, low in value and
recoverable without any further processing.
SPOILAGE
Spoilage is the term used for materials which are badly damaged in the manufacturing
operations and cannot be rectified economically. They are disposed without any further
processing. This may be both normal and abnormal. Normal spoilage is included in the
cost and abnormal spoilage is absorbed in Profit and Loss A/c.
DEFECTIVE
Products are semi finished or finished products manufactured which are not in
conformity with the laid down standards or specifications. It can be reworked or
reconditioned by application of additional materials, labour or processing and brought to
the point of the standard or sub standard products. It can be the result of various
causes.

BUDGETING SYSTEMS
A budget is a quantitative statement which covers cost, revenue and output. It is a
financial tool for the management to make an expected level of achievement of the
future based on past level performance.
It facilitates the following decisions.
OPERATING DECISION

Cost operation, business

strategy decisions.

volume

and

revenue

FINANCING DECISION

Trade credit, finance souces choice, dividend policy

etc.

INVESTMENT DECISION

Working capital re-structuring, physical assets

requirements, projects and decisions on major
expenditure.

STAGES OF BUDGETING
ESTABLISHMENT

Budget is prepared for each department along with

plans and objectives

CO-ORDINATION

All departments are put together to make a master

budget.

COMPARISON

A comparison is made with actual of the past.

REVISION

Budgets are almost revised in accordance with the

changed conditions.

ADVANTAGES OF BUDGET

Supports strategy development.

Helps performance assessment and incentives.
Acts as a directive in the day to day decisions and operational planning.
Promotes co-ordination and communication within company.

TYPES OF BUDGET
FIXED BUDGET

Is not changed or adjusted for changes in volume of

service.

FLEXIBLE BUDGET

Is based on different levels of activities. It is vary

useful tool for company for comparing actual cost vis-vis cost allowable.

Budget is one prepared on the basis of certain assumed circumstances and happenings
and likely to change due to certain business strategies and change of operational
difficulties and problems.

RATIO ANALYSIS
Ratio analysis is the key performance indicator of a company. This report is used by
management to gauge the financial health of the company. It shows performance over a
specified period of time.
It helps to,

Evaluate companys current performance.

Compare performance with the past.
Compare companys performance with other company or industry standards.

It helps further

Effective utilization of companys resources.

Profit on investments maximized.
Risk factor involved with investments.

CLASSIFICATION

Financial ratios
Operating ratios
Investment ratios

FINANCIAL RATIO

Financial means financial structure of the company.

LIQUIDITY RATIO

Ability to pay back the debts of the company.

The ratios under this :

Current ratio
Quick ratio

CURRENT RATIO
Current ratio compare the relative size of the current assets and current liabilities, the
best will be 2:1.
CURRENT RATIO

Current Assets
Current Liabilities

QUICK RATIO
Quick ratio is a good indicator of liquidity. It compares the relative size of liquid assets to
current liabilities. The ideal ratio = 1:1
Quick Ratio = Liquid assets/Current liabilities
CURRENT ASSETS

Total of inventories, sundry debtors, cash, bank

balances, receivables, accruals, loans, advances, and
disposable investments.

CURRENT LIABILITIES

Total of trade creditors, short term loans, bank

overdraft, cash credit, outstanding expenses,
provision for taxation, provision for proposed
dividends and unclaimed dividend.

LIQUID ASSETS

Current assets
expenses if any.

LEVERAGE RATIO

This is concerned with the relationship between longterm liabilities and the capital employed. The share
holders capital need to be significantly larger than
long-term liabilities. So the lender to the business is
ensured that the repayment of the principle and
interest even if profit is not generated.

DEBT EQUITY RATIO

Debt / Equity

DEBT TO ASSET RATIO

Debt / Assets

less

inventories,

and

prepaid

Ideal = 1:1

DEBT SERVICE COVERAGE RATIO

Used to judge companys ability to pay

interest and instalments.

DEBT SERVICE COVERAGE RATIO

Earning available for debt service

Interest + Instalments

PROFITABILITY RATIO
Measures operational efficiency of the company ratios are :

Gross profit ratio

Net profit ratio

GROSS PROFIT RATIO

Calculate the margin between cost of goods and sales :
G.P. Ratio = Sales Cost of Sales / Sales

NET PROFIT RATIO

Indicate the extent to which the business has managed its operating expenses.
N.P. Ratio = Gross Profit Period Cost / Sales

ACTIVITY RATIO
Also called as turnover ratio or performance ratio.
The ratio usually indicate frequency of sales with respect to assets and evaluate the
efficiency of the firm in utilization of resources.

Capital Asset
Working Capital
Average Inventory

CAPITAL TURNOVER RATIO

Indicate the efficiency to generate sales on long term investment.
CAPITAL TURNOVER RATIO

Sales / Capital employed

Sales / Capital assets

FIXED ASSETS RATIO

FIXED ASSETS RATIO

WORKING CAPITAL TURNOVER RATIO

Again it indicates efficiency in utilization of working capital. It helps to know the liquidity.

WORKING CAPITAL TURNOVER RATIO

Sales
Working capital

INVESTMENTS RETURN AND MARKET PERFORMANCE

RATIO
RETURN OF EQUITY

Profit after taxes

Networth (Share capital + General reserve)

PRICE EARNING RATIO

Indicates the expectation of equity investors about earning of the company.
PRICE EARNING RATIO

Market price per share

Earnings per share

RATIO ANALYSIS IN TALLY

Ratios generally have decimal values. To view the true ratios in a ratio analysis
statement number of decimals in the currency information has to be altered.

TO ALTER CURRENCY INFORMATION

Go to Gateway of Tally Accts info Currencies Alter

Select Rs. (Rupees) as name of currency
Retype the value 2, in the number of decimal places field
Accept the currency alteration screen

TO VIEW RATIO ANALYSIS STATEMENT

Gateway of Tally Ratio analysis

Press Alt + F2. Change the period.
Add two new columns (Press Alt + C) one with period from 01-10-2006 to
31.12.2006 to 01-01-2007 31-03-2007
Select actual in the field Types of Value To Show

CASH FLOW STATEMENT AND FUNDS FLOW STATEMENT

FUNDS FLOW STATEMENT

Funds flow statement is a financial statement reveals how business has been financed
and how funds were utilized between opening and closing balance sheet date. It
explains the movement of funds in a given period.
IT CONSISTS OF TWO PARTS
Sources of funds and application. The difference make change in working capital.

OBJECTIVES
1.
2.
3.
4.
5.
6.

Determines the financial consequences of business. The resource and utilization

Management formulates dividends and reserves
Serves as a control device
It helps financial institutions to assesses the financial risks of the firm
Helps to assess and rearrange the financing more effectively
Helps to compare with budget funds utilizations

LIMITATIONS

It only a rearrangement of data appearing in the account books.

Only indicates past performance position and not future.
Indicates movement of funds in summary form and not other changes taking
place.
When both aspects are of current transactions they are not considered.
It is not an ideal tool for financial analysis.

FUNDS FLOW STATEMENT IN TALLY

Go To Gateway of Tally Display Cash / Funds flow Funds flow
Press Alt + F2. For change of period.

CASH FLOW STATEMENT

Cash flow statement is the inflow and outflow of cash during the accounting period.

OBJECTIVES
Cash flow statement facilitates sound financial policies, while helping to evaluate the
current cash position.
Project cash flow statement is prepared to evaluate future cash position.

Helps to obtain financial assistance from banks and other financial institutions.
Both short term and long term loans and short financial decisions.
Statement explains the cause of poor cash positions despite substantial profits in a firm.

LIMITATIONS
A cash flow statement only reveals inflow and outflow of cash. There are some of the
items such as cheques, postal orders to be included in cash.
It cannot be equated with income statement. An income statement takes into account
into cash and non-cash items.
Working capital being a wider concept of funds, a funds flow statement present more
complete picture than a cash flow statement.

CLASSIFICATION OF CASH FLOW STATEMENT

May be classified as operating, investing and financing activities.

OPERATING ACTIVITIES
Amount of cash flow due to operating activities indicating generation of cash. Cash
operating capability of an enterprise and cash flow can be used for payment of
dividends, repayment of loans and without recourse to external sources of finance,
making new investments.
EXAMPLES

Receipts from sales of goods and services.

Payments for purchases.
Cash payments for employees.

INVESTING ACTIVITIES
Represent the extent to which expenditure has been made for resources intended to
generate future income.
EXAMPLES

Cash payments to acquire fixed assets.

Cash advances and loans made to third parties.

FINANCING ACTIVITIES

These activities are useful in predicting claims on future cash flows by providers of
funds both owners and lenders.
The preparation of cash flow statements from the accounting date. But each statement
services its own purpose.
Cash flow statement can be prepared either through direct method or indirect method.
In direct method, the cash and bank accounts are analyses to identify cash flow during
the period and eliminate the effects of accrual basis of accounting to arrive at the net
cash effect.
In the case of indirect (cash flow) method cash are based on net income as per income
statement and include accrual basis accounting and working capital.
DIFFERENCES BETWEEN CASH FLOW AND FUNDS FLOW STATEMENT
FUNDS FLOW STATEMENT
CASH FLOW STATEMENT
Shows the causes of changes in net Shows the causes for changes in cash.
working capital.
There is no opening or closing balances.
Starts with the opening and closing
balances.
Deals with all components of working Deals with only cash.
capital.
It is useful for long term financing.
It is useful for short term financing.
It is based on accrual basis accounting.
It is based on cash basis accounting.
It is concerned with the changes in It depicts only the cash position changes.
working capital between two balance sheet
dates.
A sound funds position may not Improvement in cash position, as indicated
necessarily a strong cash position.
by cash flow statement, can be taken as
an indicator of an improved working capital
position.

CASH FLOW IN TALLY

To view cash flow

Go To Gateway of Tally Display Cash / Funds flow

Press Alt + F2.
Change the period : 01-10-2006 to 31-03-2007

PROCESSING OF TRANSACTIONS IN TALLY

LEDGERS AND GROUPS

Based on mercantile accounting tally has 28 predefined accounts which are classified
as
PRIMARY GROUP

- 15

SUB GROUP

- 13

Under sub group 9 accounts are primary groups appearing in balance sheet and under
primary 6 appear in revenue.
Tally has cash and Profit & Loss A/c under primary group.

ACCOUNTING VOUCHERS
The standard vouchers are

CONTRA VOUCHER

Cash account to bank account and vice versa

One bank account to another

Gateway of Tally Accounting vouchers F4 contra

PAYMENT VOUCHER
Gateway of Tally Accounting vouchers F5 payment

RECEIPT VOUCHER
Gateway of Tally Accounting vouchers F6 receipt

SALES VOUCHER (INVOICE)

Gateway of Tally Accounting vouchers F8 sales

PURCHASE VOUCHER (INVOICE)

Gateway of Tally Accounting vouchers F9 purchase

JOURNAL VOUCHER
Credit transactions F7

CREATION OF THE COMPANY

Go To Gateway of Tally Company info Create company
F11 Company features, Accounting features and Statutory & Taxation.
F12 Configure - Configure Accts./Inv. Info.

VOUCHER CONFIGURATION
Gate of Tally F12 configure Voucher entry

CREATE LEDGER
Gateway of Tally Accts. Info Ledger Single ledger Create

LIST OF TRANSACTIONS
COMPANY : SHYAM SOFT SOLUTIONS
01.04.2005
02.04.2005

Shyam (Proprietor) started business by bringing in cash Rs.2.00 lacs

Purchased computer in cash Rs.25,000 Asset to be depreciated in 5

03.04.2005

years.
Opened bank account with HSBC, Chennai by depositing cash

04.04.2005

Rs.1.00 lac.
Rented office space Rs.2000pm on 1 April, 2005. Paid security

05.04.2005

deposit. Rs.20000/- by cheque.

Appointed Manager for salary Rs.7500pm and Assistant for Rs.4500

15.04.2005

salary.
Purchased fixed assets by cheque
Cell Phone

Rs.6000

(Life time 5 years)

Furniture

Rs.15000

(Life time 8 years)

A.C.

Rs.20000 (Life time 6 years)

18.04.2005
21.04.2005

Elect. Fittings - Rs.10000 (Life time 10 years)

Obtained cell connection paying a deposit of Rs.2000 in cash
Obtained stationery consumables for Rs.10000/- from Green house

24.04.2005

stationers on credit
A contract for Rs.1.00 lac entered into with Quick Services Ltd. and

25.04.2005
28.04.2005

received a cheque for Rs.50000 as advance

Deposited Rs.50000 cash to bank A/c.
Received a bill for Rs.5000/- from Power Press for printing letter heads

30.04.2005

etc.
Shyam withdrew Rs.5000/- for his personal use.

MAY 2005
04.05.2005
06.05.2005
06.05.2005
08.05.2005
12.05.2005
18.05.2005

Paid Power press Rs.5000/- in cash

Paid rent Rs.2000/- by cheque
Paid salary to employees (for 25 days April) by cheque
Cell phone bill for Rs.1450 received for April05 and paid by cash
Electricity bill for Rs.600 paid by cash
Received consultancy revenue by cheque for Rs.25000. On

22.05.2005

completion of job from data agencies.

Received Rs.45000/- by cheque from Quick Service Ltd. in full
settlement of the job work.

JUNE 2005
03.06.2005
04.06.2005
06.06.2005
08.06.2005

Paid rent Rs.2000/- by cheque

Paid salary for May05
Reimbursed Rs.700/- to Asst. Manager for his travel
Received Rs.30000/- consultancy revenue by cash from Rhythm Data

10.06.2005
14.06.2005
18.06.2005
26.06.2005
30.06.2005

Centre for work done

Paid cell phone bill Rs.1200/- by cash
Paid electricity bill for Rs.1300/- by cash for May05
Paid Rs.700/- for office maintenance expenses
Paid travel expenses to Asst. Manager Rs.1200/- for his travel
Withdrew Rs.10000/- cash for personal use

JULY 2005
03.07.2005
04.07.2005
06.07.2005
08.07.2005
10.07.2005
14.07.2005
18.07.2005
20.07.2005
28.07.2005

Paid Rent for June05 by cheque

Paid salary by cheque
Paid electricity charges Rs.1800/- by cash
Paid cell phone bill Rs.2300/- by cheque
Subscribed for management journal Rs.2400/- from July to June 2006
Paid Rs.500/- for office maintenance by cash
Paid electricity charges Rs.1250/- by cash
Paid Rs.1250/- towards mobile phone bill
Paid Rs.1700/- to Manager for his travel expenses

31.07.2005

Withdrew Rs.5000/- cash for personal use

AUGUST 2005
04.08.2005

Paid insurance Rs.6000/- by cheque for insuring fixed assets from

08.08.2005

01.08.2005 to 31.07.2006
Received Rs.50000/- in cash as consultation fees from Multi Colour

09.08.2005
10.08.2005
12.08.2005
14.08.2005
18.08.2005
20.08.2005

Data Centre
Paid salary by cheque for July
Remitted electricity charges in cash Rs.600/Paid cell phone bill for July by cheque Rs.1200
Withdrew Rs.40000 cash for office use
Paid office maintenance expenses Rs.800 in cash
Raised a bill on RedFort consultant Rs.50000 for service provided

24.08.2005
30.08.2005

credit period 30 days

Reimbursed conveyance bill for Rs.750 to Manager
Withdrew Rs.10000 cash for personal use

SEPTEMBER 2005
04.09.2005
05.09.2005
06.09.2005
08.09.2005
09.09.2005
12.09.2005

Paid cash Rs.4000 to wood peck furniture for repairs

Paid rent for July & Aug05 by cheque
Paid salary for Aug by cheque
Paid electricity bill for Rs.1050 in cash
Paid cell phone bill for Rs.1750 by cheque
Received cheque for Rs.47000 from RedFort consultant in full

14.09.2005
24.09.2005

settlement
Reimbursed travel expenses for Rs.1500 in cash
Withdrew Rs.8000 in cash for personal use

OCTOBER 2005
03.10.2005

Received Rs.70000 by cheque from Raj consultant for services

04.10.2005
06.10.2005
10.10.2005

rendered
Paid salary for September by cheque
Paid electricity bill in cash for Rs.950
Paid cell phone bill for Rs.1200 by cheque

16.10.2005
18.10.2005

Purchased stationery for Rs.2300 in cash

Received Rs.40000 consultancy revenue from Neltron Networks for

24.10.2005
28.10.2005

services by cheque
Paid office maintenance charges Rs.500 in cash
Reimbursed conveyance expenses Rs.2300 to Manager & Asst. for

29.10.2005

travel
Bank informed return of cheque Rs.40000 and bank charges Rs.500
debited to A/c.

NOVEMBER 2005
04.11.2005

Made a new contract with Nutron Consultancy for providing service for

06.11.2005
08.11.2005
10.11.2005
12.11.2005
14.11.2005
16.11.2005
17.11.2005
30.11.2005

Rs.60000 and received advance Rs.25000 in cash

Paid salary for Oct.05 by cheque
Purchased stationery for Rs.2500/- in cash from Blue Star stationery
Paid electricity bill for Rs.800 in cash
Paid cell phone bill for Rs.1350 in cash
Received Rs.25000 from Nuton consultancy by cheque
Paid office maintenance expenses Rs.700 in cash
Paid travel expenses to Manager Rs.1300 in cash
Withdrew Rs.10000 in cash for personal use

DECEMBER 2005
03.12.2005
12.12.2005

Paid rent for office for Oct & Nov05 by cheque

Received Rs.50000 by cheque from Star consultants for consulting

13.12.2005
14.12.2005
15.12.2005
17.12.2005

fees
Paid electricity charges for Rs.1200 in cash
Paid salary by cheque for Nov05
Withdrew Rs.50000 for office use
Purchased office equipment for Rs.15000 on credit from Bajaj

20.12.2005
24.12.2005
27.12.2005
31.12.2005

equipments. Asset has to be brought to zero value within 10 years.

Paid cell phone bill for Rs.1300 in cash
Brought Rs.1.00 lac in cash as additional capital
Received cheque Rs.50000 from Andrew export for consultancy fees
Bank informed return of cheque and informed cheque returned
charges Rs.500 charged to account

JANUARY 2006
03.01.2006

Received Rs.30000 by cheque from Axon Computers for the job work

04.01.2006

done
Paid rent for Dec05 by cheque
Paid salary for Dec05 by cheque

06.01.2006
10.01.2006
15.01.2006
25.01.2006
28.01.2006

Manager was loss of pay for 10 days (In Dec05)

Paid cell phone bill for Rs.1200 in cash
Paid Rs.700 in cash for office maintenance
Paid Rs.2500 towards travel expenses for Dec05 to staff
Withdrew Rs.10000 in cash for personal use
Bank statement included a debit for Rs.250/- towards Folio charges

FEBRUARY 2006
06.02.2006
07.02.2006

Paid rent for Jan06

Kapoor & Co. submitted a bill for Rs.20000 towards Programme

08.02.2006
10.02.2006
14.02.2006
20.02.2006
24.02.2006
28.02.2006

Management Training
Paid salary for Jan06 by cheque
Paid electricity bill for Rs.1250 in cash
Paid cell phone bill for Rs.1700 in cash
Purchased stationery for Rs.7000 from Globe Paper Mart on credit
Paid travel expenses for Jan06 Rs.2000 in cash to Manager
Withdrew Rs.50000 cash from Bank for office expenses

MARCH 2006
04.03.2006

Paid salaries for Feb06 by cheque

Paid rent for Feb06 by cheque

08.03.2006
10.03.2006

Paid electricity bill for Rs.1050 in cash

Paid travel expenses Rs.1400 to Asst. Manager for his trips
Paid to Globe House Rs.7000 by cheque

12.03.2006
18.03.2006

Paid rent for Feb06 by cheque

Paid office maintenance expenses Rs.1200/- in cash
Paid cell phone bill Rs.1300 in cash

23.03.2006

Received Rs.40000 from Max consultancy by cheque for the work

done

DEPRECIATION ENTRIES
LIFE
31.03.0
6

ASSET NAME

CELL PHONE
FURNITURE
AC
ELECTRICAL
FITTINGS

DATE OF

VALUE

PURCHASE

OF

ANNUAL

NO. OF

DEPRECIATION

ASSE

DEPRECIATION

DAYS

FOR 2005-2006

15.04.2005
15.04.2005
15.04.2005

6000
15000
20000

T
5
8
6

1200
1875
3335

350
350
350

1155
1800
3205

15.04.2005

10000

10

1000

350

960

17.12.2005

15000

10

1500

105
TOTAL

ADJUSTMENT ENTRIES
Magazine subscription

Amount Rs.2400

July 2005 to Jun 2006

Prepaid : 01.04.2006 30.06.2006
3 months : Rs.600

Current year : Rs.1800/Insurance

Amount : Rs.6000

Prepaid : 01.04.2006 to 31.07.2007 (4M)

Prepaid : 500 x 4 = 2000

Current year : 04.08.2005 , 30.03.2006 (8M) = 4000

OTHER ADJUSTMENT ENTRIES

Provision for income tax (2005-2006) Rs.20,000
Transfer of Withdrawal A/c. to Capital A/c.

PROVISION ENTRIES
Salary for Mar06

Rs.12000

435
7555

Rent for Mar06

Rs. 2000

Electricity Bill

Rs. 1500

Cell phone bill

Rs. 1200

Travel expenses

Rs. 2000

Office maintenance

Rs.

700

SERVICE CERTIFICATE

NAME

:MANJU. K

EMP. CODE

:0003642

DEPARTMENT

:LOG-IN

DESIGNATION

:DATA ADMINISTRATOR

DATE OF JOINING

:13-Jul-09

LAST WORKING DATE

:18-Sep-10

LAST DRAWN SALARY

:BASIC
H.R.A.
CON.ALL
TOTAL

:
:
:

3,790.00
1,020.00
690.00

5,500.00

(RUPEES
FIVE
HUNDRED ONLY)

THOUSAND

FIVE

*Also Eligible for Shift allowance of Rs.500/whenever comes in shift.

E. S. I. NO

:16770655

P. F. NO

:TN/39246/4572

WE WISH ALL THE BEST FOR YOUR FUTURE ENDEAVOURS.

for SCIENTIFIC PUBLISHING SERVICES(P)LTD.