New Tally Notes

 Home / / New Tally Notes

New Tally Notes

Audit Working Papers Notes

Notes : In an audit scenario, as per SA 230, Auditors have to manually record Notes their comments and audit-related tasks along with their clients’ inputs supporting audit conclusions. This leads to a large numbers of documents to manage. The Audit Working Paper (AWP) feature in Tally.ERP 9 Auditors' Edition eliminates this.
 
Keeping in mind the nature of the audit workflow with Notes, we have built enough flexibility into this feature to assist Auditors throughout the audit.
 
Highlights :
 
Flexibility of the feature & Notes: 
 
Auditors Notes can copy verification or working notes provided for particular vouchers/ledgers to AWP. Tally Notes also provides the flexibility of editing notes from within AWP or from the individual voucher/ledger.
 
Consolidated Audit Working Paper  Notes
 
AWP will have a complete list of notes (displayed category-wise) entered by Auditors along with response from their clients arranged chronologically.
 
Secured access to the Audit Working Paper Notes
Auditors can control their audit team's access to the Audit Working Paper based on actions to be performed (Alter, View, Print, All), or be the sole owners of the document.
 
Benefits  of Notes :
 
• All audit related Notes comments, observations, clarification and working notes are in single   repository
• Eliminates the manual Notes entry of comments/notes by Auditors & their clients
• It helps in Audit Notes & Documentation (SA 230) required for peer review
• Saves Notes the need for storing and maintaining voluminous amount of working Notes & paper files
• A single Notes document for tracking/proofing purpose even after the Audit Notes is over
• Better Notes clarity via a display of audit flow for individual transactions in AWP
• Controlled Notes access to observations/comments 
 
 
Basic concept of accounting - Tally Notes
 
Accounting: It is an art of recording, classifying and summarizing in significant manner and in terms of money, transactions and events which are of financial character and interpreting the results thereof.
 
Business transaction: A business transaction is “The movement of money and money’s worth form one person to another”. Or exchange of values between two parties is also known as “Business Transaction”.
 
Purchase: A purchase means goods purchased by a businessman from suppliers.
 
Sales: Sales is goods sold by a businessman to his customers.
 
Purchase Return or Rejection in or Outward Invoice: Purchase return means the return of the full or a part of goods purchased by the businessman to his suppliers.
 
Sales Return or Rejection out or Inward Invoice: Sales return means the return of the full or a part of the goods sold by the customer to the businessman.
 
Assets: Assets are the things and properties possessed by a businessman not for resale but for the use in the business.
 
Libilities: a All the amounts payable by a business concern to outsiders are called liabilities.
 
Capital: Capital is the amount invested for starting a business by a person.
 
Debtors: Debtor is the person who owes amounts to the businessman.
 
Creditor: Creditor is the person to whom amounts are owed by the businessman.
 
Debit: The receiving aspect of a transaction is called debit or Dr.
 
Credit: The giving aspect of a transaction is called credit or Cr.

Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from his business for his personal, private and domestic purpose. Drawings may be made in the form cash, goods and assets of the business.
 
Receipts: It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received voucher.
 
Account: Account is a summarized record of all the transactions relating to every person, every thing or property and every type of service.
 
Ledger: The book of final entry where accounts lie.
 
Journal entries: A daily record of transaction.
 
Trail Balance: It is a statement of all the ledger account balances prepared at the end of particular period to verify the accuracy of the entries made in books of accounts.
 
Profit: Excess of credit side over debit side.
 
Profit and loss account: It is prepared to ascertain actual profit or loss of the business.
 
Balance Sheet: To ascertain the financial position of the business. It is a statement of assets and liabilities.
 
Types of accounts
 
Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions which the businessmen deal.
 
Principles: Debit the receiver , Credit the giver
 
Real Account: These are the accounts of things, materials, assets & properties. It has physical existence which can be seen & touch.
Ex. Cash, Sale, Purchase, Furniture, Investment etc.
 
Principles: Debit what comes in , Credit what goes out
 
Nominal account: Nominal account is the account of services received (expenses and Losses) and services given (income and gain)
Ex. Salary, Rent, Wages, Stationery etc.
 
Principles: Debit all expense/losses , Credit all income/ gains
 
Tally.ERP 9 with tally notes
 
Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting software.
 
Procedure for creating company in Tally
           
Double click on Tally icon on desktop. Alt+F3 Company info-Create company.
 
Accounts Only: To maintain only the financial accounts of the company. Inventory (stock) management is not involved in it.
 
Account with Inventory: This is the default option, which allows maintaining both the financial account of the company as well as the inventory of the company.
 
Select Company: We can choose the company which is already created.
Shortcut key - F1.
 
Shut Company: It is used to close the company which is opened. Shortcut key - Alt+F1.
 
Alter: It is used to make alterations in the company creation like name, date, maintain etc.
 
Quit: Exits from Tally. 1. Click on quit button.
                        2. Esc, Esc, Esc and enter.
                        3. Ctrl+Q
 
Short cut keys
 
Alt+F3 - Company information menu
 
Enter - To accept information typed into a field.
        To accept a voucher or master.
        To get a report with further details of an item in a report.
 
Esc  -  To remove what has been typed into a field.
        To exit a screen.
        To indicate you do not want to accept a voucher or master.
 
Ctrl+A - To accept a form wherever you use the key combination the screen or report will be accepted as it is on this screen.
 
Ctrl+Q - It quits the screen without making any changed to it.
 
Alt+C  - To create a master at a voucher screen.
When working within an amount field presses Alt+C to act as a calculator.
 
Alt+D - To delete a voucher.
        To delete a master.
 
 
Ctrl+Enter - To alter a master while making an entry or viewing report.
 
F2  - Date
 
Alt+F2 - Change period
 
Alt+F1 - To see detail
 
F11 - Features company
 
F12 - Configuration options are applicable to all the companies in a data directory.
 
Ctrl+N - Calculator screen.
 
Ctrl+V - Voucher mode (Cr. Dr)
         Invoice mode (name of item, rate, quantity, and amount)
 
Gateway of tally-Accounts info-Group
 
Bank account - Bank  Account
Bank Od account - Branch/division
Capital account - Cash in hand
Current asset - Current liability
Deposit - Direct expenses
Direct income - Indirect expense
Indirect income - Duties and tax
Fixed asset  - Investment
Loans and advance - Loan (liability)
Miscellaneous expenses - Provisions
Retained earning - Reserves and surplus
Purchase account - Sales account
Secured loan - Stock in hand 
Sundry debtor’s - Sundry creditors
Suspense - Unsecured account
 
Meaning:
 
Current asset:           
It is converted into cash with in a year. Ex. Bills receivable
 
Direct expenses:        
These are the expenses which are directly related to manufacturing of goods.
Ex. Wages, factory rent, heating, lighting etc
 
Indirect expense:      
These are the expenses which are indirectly related to manufacturing of goods.
Ex. Salary, rent, stationery, advertisement, printing
 
Depreciation: Decrease the value of the asset.         
 
Sundry debtors: The person who is the receiver or customer
 
Sundry creditors: The person who gives or supplier.
 
Expenses Outstanding or Unpaid expenses or Expenses due:
            Expenditure incurred during current year but the amount on which is not yet paid. (Added to the expenditure on the debit side and entered on the liability side.)
 
Income received in advance or Income received but not earned.
            Income received during the current year but not earned or a part of which relates to the next year. (Deducted form the concerned income on the credit side and entered on the liability side)
 
 
Prepaid advance or Expenses or Prepaid expenses
            Expenditure paid during current year but not incurred or a part of which relates to the next year is called expenditure prepaid. (Deducted form the concerned expenditure on the debit side and entered on the assets side)
 
Income outstanding or income earned but not received or Income accrued
            Income outstanding means income earned during the current year but the amount on which is not yet received (added to the concerned income on the credit side and entered on the asset side)
 
Gateway of Tally-Accounts info-ledger-create
 
Ledger
Group
Opening stock
Stock in hand
Purchase
Purchase account
Purchase return
Purchase account
Fright charges
Direct expenses
Carriage inwards or Purchases
Direct expenses
Cartage and coolie
Direct expenses
Octroi
Direct expenses
Manufacturing wages
Direct expenses
Coal, gas, water
Direct expenses
Oil and fuel
Direct expenses
Factory rent, insurance, electricity, lighting and heating
Direct expenses
Sales
Sales account
Salary
Indirect expenses
Postage and telegrams
Indirect expenses
Telephone charges
Indirect expenses
Rent paid
Indirect expenses
Rates and taxes
Indirect expenses
Insurance
Indirect expenses
Audit fees
Indirect expenses
Interest on bank loan
Indirect expenses
Interest on loans paid
Indirect expenses
Bank charges
Indirect expenses
Legal charges
Indirect expenses
Printing and stationery
Indirect expenses
General expenses
Indirect expenses
Sundry expenses
Indirect expenses
Discount allowed
Indirect expenses
Carriage outwards or sales
Indirect expenses
Traveling expenses
Indirect expenses
Advertisement
Indirect expenses
Bad debts
Indirect expenses
Repair renewals
Indirect expenses
Motor expenses
Indirect expenses
Depreciation on assets
Indirect expenses
Interest on investment received
Indirect income
Interest on deposit received
Indirect income
Interest on loans received
Indirect income
Commission received
Indirect income
Discount received
Indirect income
Rent received
Indirect income
Dividend received
Indirect income
Bad debts recovered
Indirect income
Profit by sale of assets
Indirect income
Sundry income
Indirect income
Loan from others
Loan Liabilities
Bank loan
Loan  Liabilities
Bank overdraft
Bank OD
Bills payable
Current Liabilities
Sundry creditors
Sundry creditors
Mortgage loans
Secured loans
Expense outstanding
Current Liabilities
Income received in advance
Current Liabilities
Other liabilities
Current  Liabilities
Capital
Capital account
Drawings
Capital account
Cash in hand
Cash in hand
Cash at bank
Bank account
Fixed deposit at bank
Deposit
Investments
Investments
Bills receivable
Current asset
Sundry debtors
Sundry debtors
Closing stock
Stock in hand
Stock of stationery
Current asset
Loose tools
Fixed asset
Fixtures and fittings
Fixed asset
Furniture
Fixed asset
Motor vehicles
Fixed asset
Plant and machinery
Fixed asset
Land and building
Fixed asset
Leasehold property
Fixed asset
Patents
Fixed asset
Goodwill
Fixed asset
Prepaid expenses
Current asset
Income outstanding
Current assset
 
Trading account: Buying and selling of goods.
 
Dr. Receiving aspect                                                                    
Giving aspect    Cr.
 
Direct expenses - Amount
Direct Income - Amount
 
To Opening stock - xxx
By Sales - xxx
 
To Purchases - xxx
By (-)Sales return - xxx
 
To (-)purchase return - xxx
By Closing stock - xxx
 
To Freight charges - xxx
To Cartage and coolie - xxx
To Lorry hire - xxx
To Manufacturing expenses - xxx
To Wages - xxx
To Factory rent, fuel power - xxx
To Gross profit (transfer to profit and loss account) - xxx
To Profit and loss account: Actual profit and loss of the business
Indirect expenses or payments- Amount
Indirect income or receipts - Amount
To Salary - xxx
By Gross profit - xxx
 
To Postage and Telegram - xxx
By Interest on investment received - xxx
 
To Telephone charges - xxx
By Interest on deposit received - xxx
 
To Rent paid - xxx
By Interest on loans received - xxx
 
To Rate and taxes - xxx
By Discount received - xxx
 
To Insurance paid - xxx
By Discount received - xxx
 
To Interest on bank loan - xxx
By Rent received - xxx
 
To Bank charges -xxx
By Bad debts received - xxx
 
To Printing and stationery -xxx
By Net loss - xxx
 
To Discount allowed xxx
To Advertisement
To Carriage outward (sales)
To Depreciation on assets
To General expenses
To Traveling
To Bad debts
To Net profit
 
Balance sheet: Actual financial position
 
Liabilities - Amount
Assets - Amount
 
Bank loan - xxx
Cash in hand - xxx
Bank overdraft - xxx
Cash at bank - xxx
Bills payable - xxx
Fixed deposit at bank - xxx
Sundry creditors - xxx
Investments - xxx
Expenses outstanding - xxx
Bills receivable - xxx
Capital - xxx
Sundry debtors - xxx
(-)drawings - xxx
Closing stock - xxx
Net profit - xxx
Stock of stationery - xxx
Furniture - xxx
Plant machinery - xxx
Land and building - xxx
Motor vehicles - xxx
Prepaid expenses - xxx
Income outstanding - xxx
 
Alt+F3 Company Creation
Gateway of tally-Accounting voucher
 
F4        Contra:            Records funds transfer between cash and bank accounts.
                                    Deposit into bank or Opened bank account   Cr. Cash
                                                 Dr. Bank
                                    Withdraw form bank                                      Cr. Bank
                                                                                                                        Dr. Cash
 
F5        Payment:         Record all bank and cash payments.
                                    Paid or Give                            Dr.
                                                                                                Cr. Cash/bank (in case cheque)
 
F6        Receipt:           Records all receipts into bank or cash accounts.
                                    Received or Borrow or Take   Cr.
                                                                                                Dr. Cash/bank (in case cheque)
 
F7        Journal:            Records adjustments between ledger accounts.
 
F8        Sales:               Records all sales.
                                                                                                Dr. Cash/party (incase of credit-party)
                                                                                                Cr. Sales
F9        Purchase:         Records all purchase.
                                                                                                Cr. Cash/party (incase of credit-party)                                                                                                           Dr. Purchase
 
 
Journalize the following transactions
 
1.      Commenced business with cash Rs.10, 000.                               
2.      Deposit into bank Rs. 15,000                                                      
3.      Bought office furniture Rs.3,000                                                
4.      Soled goods for cash Rs.2,500                                        
5.      Purchased goods form Mr X on credit Rs.2,000
6.      Soled goods to Mr Y on credit Rs.3,000
7.      Received cash form Mr. Y on account Rs.2,000
8.      Paid cash to Mr X Rs. 1,000
9.      Received commission Rs. 50
10.  Received interest on bank deposit Rs. 100
11.  Paid into bank Rs. 1,000
12.  Paid for advertisement Rs.500
13.  Purchased goods for cash Rs. 800
14.  Sold goods for cash Rs. 1,500
15.  Paid salary Rs. 500
 
Gateway of tally-Account info-Ledger-Create
 
Gateway of tally – Accounting voucher
 
Sl.No - Key - Voucher -   Ledger -       Group -        Type of account -    Principles Amount
 
1 F6    Receipt   Cr.Capital   Capital account      PersonalGiver      10,000
 
Dr. Cash Cash in hand Real Comes in  10,000
 
 
2       F4    Contra    Cr. Cash      Cash in hand         Real Goes out     15,000
 
Dr. Bank Bank account Real Comes in 15,000
 
 
3       F5    Payment  Dr.Office furniture  Fixed asset    Real Comes in     3,000
 
Cr.Cash Cash in hand Real Goes out  3,000
 
 
To view-         Gateway of tally-Accounts info-Ledger-Multiple ledger Alter-All items      (for ledger)
                        Gateway of tally-Display-Day book-Alt+F1 (to see detail)               (Accounting Voucher)
 
Inventory information
 
Alt+F3 Company creation-Maintain-Accounts with inventory
Gateway of Tally-Inventory information-Unit of measure
Gateway of tally –Inventory information-Godown
Gateway of tally-Inventory information-Stock group
Gateway of tally – Inventory information-Stock item
 
To View
 
Gateway of tally-Display-Day book-Alt+F2 (change period) Alt+F1 (to see detail)                        or
Gateway of tally-Stock summary
 
1. On 1-4-15 Raman commenced business with cash of Rs. 25,00,000. He further introduced Land and    Building costing Rs. 30,000, Plant and Machinery costing Rs. 25,000 and furniture and fixture costing Rs. 36,000.
 
2. On 2-4-15 Purchased Vehicle and Patents Rs. 20,000 and Rs. 15,000.
 
3. On 5-4-15 He deposited Rs. 1, 00,000 into Canara Bank.
 
4. On 6-4-15 Purchased from Cadbury Company
            500      5 Stars @  Rs. 5                      1000    Cadbury @ Rs. 5       
            100      Kit kat @ Rs. 4                       200      Dairy milk @ Rs. 7
 
5. On 10-4-015 Purchased from Paras
500            Moov @ Rs. 20
500            D’Clod @ Rs. 12
 
6. On 13-4-15 Sold to Pankaj
200            Moov @ Rs. 20.50                 
100            D’Clod @ Rs. 12.25
200            Adhensive tape roll @ Rs. 15.25
100            Band Aid box @ Rs. 252
200            Boric Acid powder @ Rs.14
 
7. On 15-4-15 Sold to Akbar
500            Cadbury @ Rs. 6
200            5 Star @ Rs.5.25
50                Kit Kat @ Rs. 6
 
8. On 16-4-15 Paid to Cadbury company Rs.
 
9. On 18-4-15 Received from Pankaj
 
10. On 20-4-15 Paid to Paras Rs.
 
11. On 25-4-15 Received from Akbar Rs.
 
12. On 26-4-15 Purchase from Well Cloth
 
            T-Shirts           Lee-25Pc-Rs.200       
                                    Nike-30Pc-Rs.300                  
            Formal Shirts   Pan America-35Pc-400
                                    Peter England-30Pc-450
            Jeans Pants      Tiger-20Pc-500
                                    Ruff and Tuff-30Pc-350
            Cotton Pants   Arrow-40Pc-200
                                    Ex-Calibar-20Pc-250
 
13. Paid Postage Rs. 500 by cheque
14. Received commission Rs. 15,000
15. Paid wages Rs. 2,500
 
 
Procedure for Inventory Problem
 
Gateway of Tally-Inventory Info-Unit of Measure-Create-
Symbol-           Nos.     Pcs
Formal Name-Number            Pieces
 
Gateway of Tally-Inventory Info-Stock Group-Create
Chocolate, Medicines, Cotton Pants, Jeans Pants, Formal Shirts, T-Shirts
 
Gateway of Tally-Inventory Info-Stock Item-Create
5 Stars , Kitkat , Chocolate , Cadbury , Dairy milk
                                               
Moov ,D’Clod , Adhensive tape rolls , Medicines ,Band Aid box
Boric Acid powder, T-Shirts , Formal Shirts , Peter England
Tiger , Jeans Pants , Cotton Pants
 
Journalize the following Transactions using the debit and credit given     by the American accounts
 
 
1.  Commenced business with cash 10,000
2.  Deposited into bank                         5,000
3.   Purchased goods for cash                   3,000
4.   Sold goods for cash                        2,500
5.   Purchased goods from A on credit           4,000
6.   Sold goods to B on credit                  4,500
7.   Withdraw from bank                         3,000
8.   Paid A on account                          2,000
9.    Received from B on account                2,500
10. Took loan from C                            5,000          
11. Gave loan to D                              4,000
12. Paid salary                                 1,000
13. Cash withdraw from the business for personal  200
14. Rent paid to E                              1,000
 
 
Ledger
Group
Capital
Capital Account
Cash
Cash in hand
Bank
Bank account
Purchase
Purchase account
Sales
Sales account
A
Sundry creditor
B
Sundry debtor
C
Sundry creditor
D
Sundry debtor
Salary
Indirect expenses
Drawings
Capital account
Rent
Indirect expenses
 
Rakesh  and company
 
1. Started business with cash Rs. 2,000, Bank Rs. 20,000.
2. Issued cheque for goods purchased Rs. 1,000.
3. Bought goods for cash  Rs.8,000.
4. Bought furniture from Anil for cash Rs.100.
5. Bought goods from harish Rs. 1,500.
6. Bought goods from chandan on credit Rs. 5,800.
7. Returned damaged goods to Chandan Rs.800.
8. Bought goods from Naveen and paid by cheque immediately Rs.400.
9. Sold goods to Guptha Rs. 1,000.
10.Received a cheque from Guptha Rs.1,000 for goods sold.
11.Paid commission Rs.2,000.
12.Paid wages by cheque Rs.4,000.
13.Draw cheque for personal use Rs.4,000.
14.Draw cash for personal use from bank Rs.3,000.
15.Receive a cheque from Manju Rs.2,800.
16.Borrow loan from Anands Rs.1,000.
17.Paid Anands Loan with interest Rs.1,000.
 
Ledger
Group
Capital
Capital account
Bank
Bank account
Purchase
Purchase account
Anil
Sundry Creditor
Chandan
Sundry Creditor
Harish
Sundry Creditor
Purchase return
Purchase account
Naveen
Sundry Creditor
Sales
Sales account
Guptha
Sundry debetor
Commission
Indirect expenses
Wages
Direct expenses
Drawings
Capital account
Manju
Sundry Creditor
Anand
Sundry Creditor
 
Surdas and company
 
1.Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000.
2.Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000.
3.Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000.
4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000.
5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000.
6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100.
7.Received rent Rs.500, commission Rs.400.
8. Received a cheque from Ganesh Rs.1,000.
 
Ledger
Group
Capital
Capital account
Furniture
Fixed asset
Machinery
Fixed asset
Purchase
Purchase account
Anil
Sundry Creditor
Sales
Sales account
Rajesh
Sundry debtor
Arun
Sundry creditor
Ramesh
Sundry debtor
Salary
Indirect expenses
Printing
Indirect expenses
Wages
Direct expenses
Rent
Indirect expenses
Commission
Indirect expenses
Ganesh
Sundry creditor
Trade discount
Indirect expenses
 
Memorandum book
Particulars
1. Commenced business with cash Rs. 10,000.
2. Purchased goods for cash Rs.3,000.
3. Opened a bank  account with Rs.2,000.
4. Purchased stationary Rs.1,00.
5. Purchased furniture Rs.1,000.
6. Sold goods to A Rs.2,000.
7. Purchased goods from B Rs.2,000.
8. Sold goods for cash Rs.1,000.
9. Paid for postage Rs.20.
10.Took loan from C Rs.1,500.
11.Paid rent Rs.300.
12.Withdraw from bank Rs.800.
13.Received from A on account Rs.500.
14.Paid commission by cheque Rs.200.
 
 
Ledger
Group
Capital
Capital account
Purchase
Purchase account
Bank
Bank account
Purchase
Purchase account
Stationary
Indirect expenses
Furniture
Fixed asset
Sales
Sales account
Sundry debtor
Sundry Creditor
Potage
Indirect expenses
Sundry Creditor
Rent
Indirect expenses
Commission
Indirect expenses
 
Roa and company
 
Particulars                              Rs.
 
1. Bought goods for cash               2,500
2. Bought office furniture for cash      500
3. Paid for postage                       10
4. Purchased goods from Rajkamal       2,000
5. Sold goods for cash                   150
6. Bought goods from Rahim               400
7. Sold goods to Suresh                  400
8. Sold goods to Nayak                   250
9. Purchased goods for cash              400
10. Recevied cash from Nayak             200
11. Paid cash to Rahim                    50
12.  Returned goods to Ralkamal          200
13. Suresh returned goods                 50
14. Paid salary                          150
15. Sold goods for cash                  500
16. Rao withdraw for his personel use    800
17. Paid for stationery                  100
18. Paid rent                             50
19. Received commission                  225
 
Ledger
Group
Capital
Capital account
Purchase
Purchase account
Postage
Indirect expenses
Rajkamal
Sundry Creditor
Sales
Sales account
Rahim
Sundry Creditor
Suresh
Sundry Debtor
Nayak
Sundry Debtor
Purchase returns
Purchase account
Salary
Indirect expenses
Drawings
Capital account
Stationary
Indirect expenses
Rent
Indirect expenses
Commission