Computerized Accounting

141 Pages·2014·2.5 MB·English

Accounting Vouchers

Accounting Vouchers

Session -2

Vouchers
In computerized accounting, we record transactions through voucher entry. A voucher is a
basic recording document. To input any data in Tally you must use a voucher. Inputting data
through the voucher entry mode may be called creating a voucher or voucher entry.
Tally is pre-programmed with a variety of accounting vouchers, each designed, to perform a
different job.
Tally gives us two types of voucher:

1.
Conventional

2.
Unconventional

Conventional Vouchers
Conventional vouchers are used to record all accounting transactions. These vouchers directly
affect to your final Account. It tally we have different types of conventional vouchers:

Types of voucher (Conventional):
Vouchers
Shortcuts
Functions

Contra
F4
To Create A Contra Voucher

Payment
F5
To Create A Payment Voucher

Receipt
F6
To Create A Receipt Voucher

Journal
F7
To Create A Journal Voucher

Sales
F8
To Create A Sales Voucher

Purchase
F9
To Create A Purchase Voucher

Debit Note
Ctrl+F9
To Create A Debit Note Voucher

Credit Note
Ctrl+F8
To Create A Credit Note Voucher

Selection of Voucher at the time of transaction:
We give you a visual guideline to decide appropriate voucher type that is suitable to
record the transaction:

Contra Voucher (F4)
Contra voucher is for entering Fund transfer Transactions where net inflow and
outflow are equal, i.e. net effect is Zero. In contra voucher you can enter transaction
between cash and bank. As per accounting rules, Contra Entry is a transaction
indicating transfer of funds from:

1.
Cash account to Bank Account

2.
Bank account to Cash account

3.
Bank account to Bank account

Payment Voucher (F5)
All transaction related to payment (by cash or bank) are recorded in payment
voucher. Such payments can be towards purchases, expenses, acquisition of fixed
assets, dues to creditor, loans/advances given by you or repayment of
loans/advances taken by you earlier etc.
Receipt Voucher (F6)

All inflow of money (in cash or through bank) are recorded through receipt voucher. Such
receipts may be towards any income or from your debtors or loans/ advances given earlier etc.
The voucher is similar to the payment voucher except that you debit cash or bank A/cs and
credit the ledger form which you receive.

Journal Voucher (F7)
Journal entries are used in instances where the company requires adjusting the debit and credit
amounts without involving the cash or bank accounts. Hence, they are referred to as adjustment
entries.

Sales Voucher (F8)
Any sales transaction (whether for goods or Services) are entered in sales Voucher. In case of
cash sales, you receive payment immediately by cash or by cheque or credit card and since you
do not require to track outstanding (as payment has already been received so there is no need to
create a separate ledger for the buyer who has paid immediately).
Note: All Credit sales transaction is entered in sales voucher.

Purchases Voucher (F9)
Any purchases transaction (whether for goods or Services) are entered in Purchase Voucher. In
case of cash Purchases, you make payment immediately by cash or by cheque or credit card
and since you do not require to track outstanding (as payment has already been made so there is
no need to create a separate ledger for the seller who has paid immediately).
Note: All Credit Purchase transaction is entered in Purchase voucher.

Debit Note (Ctrl+F9)
By default Debit Note voucher would not be available. If you make entry in debit Note then
you have to active this option from F11 company Features. Normally a debit note is entered
when you make purchases return or have short-billed a customer or your supplier have granted
credit to you on account of rate difference, discount etc.

Credit Note (Ctrl+F10)
By Default Credit Note Voucher Would not be available. If you make entry in credit Note then
you have to active this option from F11 company Features. Normally a credit note is entered
when you make sales return or discount/ Rebate or due to some reason now you like to square
off a debit balance.

Unconventional Voucher
These special vouchers are used to record provisional or non-accounting transactions. They
don’t clutter the main books of accounts with unnecessary entries and at the same time make
the information available. These vouchers enable valuable reports in terms of provisional
accounts and forecasting. This aspect of reporting has been dealt with under a separate section
‘Scenario Management’.
Types of vouchers (Unconventional)
Vouchers
Shortcuts
Functions

Memos
Ctrl+F10
To Create memorandum voucher

Rev Jrnl
F10
To Create Reversing journal voucher

Optional
Ctrl+L
To Make a voucher as Optional voucher

Post dated
Ctrl+T
To Make a Voucher as Post Dated Voucher

Accounting Vouchers

Memo Voucher
This is a non-accounting voucher and the entries made using it will not affect your accounts.
That is, Tally does not post these entries to ledgers but stores them in a separate Memorandum
Register.

Some uses for Memo Vouchers

1.
Making suspense payments

2.
Vouchers not verified at the time of entry

3.
Items given on approval

Reversing Journal
Reversing journals are special journals that are automatically reversed after a specified date.
They exist only till that date and are effective only when called for in reports like the Balance
Sheet. These are used in interim reporting in the course of the financial year where accruals are
required to be reported. These accruals are usually short term and are cleared in the subsequent
period. However, to get a proper perspective, decision makers require the reports with full
impact of all aspects and transactions

Use of optional vouchers

1. If a transaction has not been completed, you may not want it to affect the accounts.

But you want to record it so that you simply modify the voucher and remove the
‘Optional’ mark by ‘Regular’ it. Display the voucher in ‘Alter’ Form and click on
‘Regular’.

2. You might want to see the impact of transactions without actually posting them.

Optional vouchers allow you to do this.

Post-Dated Vouchers
While entering vouchers, you can post-date them, an tally will not update the ledgers until the
date in question. This is most useful for entering transactions that take place on a regular basis.
For example, if you pay for something by installments, you can set-up the payments in
advance, and tally will only enter them in the ledgers as they fall due. Mark vouchers ‘Post
Dated’ by [CTRL]+[D] or click on the button. The button toggles with ‘Regular’

Scenario Management
Scenario management is a management tool that enables different displays of accounts and
inventory related information, by selectively including certain types of vouchers without
affecting the source date. It is useful in generating provisional report, where entries are not
actually made in the main books. It is also a useful forecasting tool i.e. you can forecast the
expense using provisional Vouchers and include them in your reports.
The vouchers that are used in Scenario Management are:

Optional Vouchers
Memorandum Vouchers
Reversing Journals

Creating a Scenario
Set Use Reversing Journals & Optional Vouchers in F11: Company Features to Yes.
Gateway of Tally→ Accounts Info→ Scenario→ Create

1.
Name
Give a suitable name to the scenario. In this case, it is Provisional.

2.
Set Include Actual to Yes

3.
Set Exclude Forex Gains/Losses Calculations to yes if you do not want the
unadjusted forex Gains/loss element to appear in the scenario

4.
Set Exclude Inventory
Tracking Calculations to Yes if you do not want the sales/purchase bills pending
element to appear in the scenario

5.
Include
From the list of vouchers, include the type of vouchers required. Notice that it picks
up the voucher Types created for this company. Provisional vouchers and Regular
vouchers that are marked Optional are permitted for selection.

6.
Exclude
Exclude from the list of vouchers already included in the type of vouchers that you
do not want to affect this scenario. This option is used in Alter mode and hence is
discussed under Alter/Display scenario Information.

Accept to create this scenario.

Alter or Display Scenario information

1.
Gateway of Tally→ Accounts Info. → Scenario→ Alter

2.
Select the scenario to alter from the List of Scenarios

The information given while creating the scenario displays and you can alter it.

Exclude
Use the Alter mode when you do not want a selected included voucher to affect the
scenario, anymore. It is easier to put the selected voucher in the Exclude List, rather than to
remove it from the include List.
Using Scenarios
Create a Reversing journal Entry for the scenario as follows.
1.
Gateway of Tally→ Accounting Vouchers→ F10:Rev Jrnl

2.
Select Reversing Journals from the list.

3.
Debit Depreciation and enter the amount

4.
Credit Provision for Depreciation

5.
Enter narration if any.

6.
Accept the voucher.

Accounting Vouchers

Using Scenarios in Statements and Reports
You can use scenarios in statements (not registers) that have the New Column button
active.
1. Display the Balance sheet.
2. Select New Column.
3. In the column details, tab down to Types of Values to show
4. Select the scenario named Provisional.

Entering Voucher
The Voucher Entry Screen

The main voucher entry area
This is where you enter your transactions this screen contains fields fo date, ledger
name and amount as well as additional pop-up screens that are dependent upon your
voucher configuration.

Direct commands area
Displays the commands you type into this area, and in the current version of Tally, is
limited to calculator functions.

Buttons toolbar
Displays buttons that provide quick interaction with Tally. Only buttons relevant to the
current task will be visible.

Switching between screen areas
On selecting Voucher Entry from the Gateway of tally, you are taken to the main
voucher entry area. However, you may toggle between this and the Direct
commands/calculator area at the bottom of the screen, by pressing [Ctrl]+[N]+[M] as
indicated on the screen. The active area of the screen is highlighted by a green bar,

[Ctrl]+ [N] to go to the Calculator/Direct Commands area and [ctrl]+[M] for the
voucher entry area. Use calculator by [ALT]+[C] when in amount field.

Special Keys for Voucher Narration Field
ALT+R: Recalls the last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.

Contra Entry (F4):
Gateway of Tally→ Accounting Vouchers→ Selecting
F4: Contra
Example:

Cash deposited into the bank Rs. 50000/-

Payment Entry (F5):
Gateway of Tally→ Accounting Vouchers→ Selecting
F5: payment
Example:

1.
Rent Paid Rs. 5000/-

2.
Salary And Adv. Expenses paid Rs. 6500/-&

Rs. 2500/-

3.
Cash Purchases Rs.3000/-

Receipt Entry (F6):
Gateway of Tally→ Accounting Vouchers→ Selecting
F6: Receipt
Example:

1.
Cash sales Rs.8000/-

2.
Comm. Received from Ram Rs.500/-

3.
Interest Received Rs.250/-from ICICI bank

Journal Entry (F7):
Gateway of Tally→ Accounting Vouchers→ Selecting
F7:Journal
Example:
Depreciation Machinery & Computer Rs. 1,250/- &
Rs.480/-

Sales Entry (F8):
Gateway of Tally→ Accounting Vouchers→ Selecting
F8
Example:
Goods sold worth Rs. 5000/- to IFCA Trading Co. on
credit.

Accounting Vouchers

Credit Note (Ctrl+F8)
Gateway of Tally→ Accounting Vouchers→ Selecting
Ctrl+F8,
Example:
Goods return worth form IFCA Trading Co. Worth Rs.
450/-

Purchases Entry (F9)
Gateway of Tally→ Accounting Vouchers→ Selecting
F9,
Example:
Goods purchase worth Rs. 2500/- from king & Co. On
credit.

Debit Note (Ctrl+F9)
Gateway of Tally→ Accounting Vouchers→ Selecting
Ctrl+F9,
Example:
Goods return to king & Co. worth. Rs. 500/-

Exiercise

1. Pass the following transactions:
2005
April 5
Introduce furniture worth Rs. 15,000 for business.

April 7
Received a cheque of Rs. 14,000 from Amar in full settlement of his
account.

April 12
Amar’s cheque is dishonored and bank charged our account of Rs. 20 for
bank charges.

April 15
paid Rs. 2,850 to Mohan in full settlement of his account.

April 25
cash withdraw from the bank Rs. 5,000 for petty cash.

April 30
Cash withdraw form the bank Rs. 500 for personal use and Rs. 1,000 for
office use.

May 3
Paid wages 200, trade expenses 650, advertisment expenses 1,500 and
stationery expenses 275 from petty cash.

May 10
Sachin was declared insolvent and a payment of 60 paise in a Rupee
received form him.

May 16
Paid Rs. 4,000 and 3,000 to Shyam and Ram respectively.

May 27
Received cheque from Nitin in full settlement of his account after allowing
his 5% cash discount and cheque deposited into the bank same day.

May 29
Withdraw from bank Rs. 500 for personal use and Rs. 1,000 for office use.

May 30
Purchase two computers worth Rs. 15,000(each) for resale from J.K.
computers.

June 3
Payment made to J.k. Computers.

Hint:
match the figure of Trial Balance 6,61,125.



Advance Accounting Features [F11]

Advance Accounting Features [F11]

Session -3

Advance Accounting Features [F11]
The different features of a company can be selected or modified by F11 button. This button is
available is available in almost all screens of tally as you might wish to modify it as your
requirements change.

1.
Accounting Features<F1>

2.
Inventory Features<F2>

3.
Statutory Features<F3>

Accounting Features<F1>

General
Integrate Accounts with Inventory
Effect on Balance Sheet and Profit & Loss Account
The option in F11: Accounting Features>General has a significant effect on the Balance
Sheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures
from the inventory records and provides a drill down to the stock registers from the Balance
Sheet.

Income/Expense Stmt instead of P&L
Account statements for Non-Trading organizations. For Non-
Trading accounts like accounts for charitable organizations, the
trading and Profit & loss statement are irrelevant. They need and
Income & Expenditure Account. They should activate the feature
in F11: Accounting Features>General and set the option
Income/Expense Stmt instead of P&L to Yes.
Note: The Profit & Loss Account is now displayed as Income & Expenditure Statement.

Multi Currency
Allow Multi Currency
For many organizations, globalization of business has necessitated working with more than one
currency. Transactions are often made in currencies other than the home currency. Such
transactions have to be recorded either in the home currency or in the foreign currency. It they

are recorded in home currency, the rate at which the foreign currency is exchanged for the
home currency should be recorded as well. Sometimes you need to record the transaction in
foreign currency itself. This would arise when you maintain the balance of the concerned
account in foreign currency. Tally uses the term base currency for the currency in which your
account books it kept (typically in home currency). Foreign Exchange is used interchangeably
with foreign currency. Tally has attempted to make the complex task of handling multiple
currencies very easy for you. You would find some new ways of working with multiple
currencies, automatic calculations of exchange rates, automatic conversion of any currency
used to record a transaction to the currency of the account, etc.

You must first activate multi-currency capabilities.
Gateway of Tally→
[F11]: accounting features→

Multiple Currency
Now, let us work with currencies.
→ Currency →
The Currencies menu has the usual create, display and
alter options. There is an additional optional option,
rates of Exchange. We shall examine each option in
greater detail.

Create a Foreign Currency Master
You will now need to create the foreign currencies that would be used.
Gateway of Tally→ Accounts Info.→ Currencies→ Create

Symbol
: Give the Currency symbol, as it should appear in all reports.

Formal Name
: This is meant for the name of the currency, e.g., U.S. Dollars, Pound

Sterling, Indian Rupees, etc. you are not allowed duplicates.

Number of
Decimal places
: Give the number of decimal places for the currency.

Show amounts
In Millions
: Tally has two formats for displaying an amount, viz., in millions and in

Lakhs. 1000000 (one followed by six zeroes) in millions format would
appear 1,000,000 and in lakhs 10,00,000. Selecting ‘No’ would mean
you want amounts to appear in lakhs.

Is symbol suffixed
to amount
: Normally currency symbols are prefixed. However, if you want it to

appear after the amount, select yes.

Put a space
Between amount
And symbol
: This is purely for aesthetics. Select Yes for amounts to appear like $100/,

No for $100/- If you put a’.’ after a prefixed symbol, do not opt for a
space. This could be found suitable for currencies like Rs. Where
amounts would appear Rs.100/-

Display/Alter Currency
If you do not have multiple currencies, the Alter screen is identical to the Display screen. When
you have more than one currency, select the currency whose details are to be display, Altered.

Advance Accounting Features [F11]

Rates of Exchange
The screen always comes up in Alter mode:

Date for Rates
Of Exchange
: Rates of Exchange operate on day-to-day basis. Hence, you can specify

the rates of different currencies for a day.

Note: the date column in the previous alter screen.

Standard Rate
: The standard rate is used to calculate variances from the actual

transaction rates. You may choose to leave it blank.

Selling Rate
Specified Rate
: This is the rate obtained form the daily newspaper or your banker. If you

input this rate before any transaction entry, while entering a foreign
exchange transaction, this rate will be brought up by default. (you nay
still change the actual rate). Selling rate is your selling rate (as opposed
to bank’s selling rate. Banks will buy currency from you in this case)
used for receipt voucher entry where you receive foreign exchange.

Buying Rate
Specified rate
: this is the rate at which you would buy the foreign currency (as opposed

to bank’s buying rate. Banks will sell currency to you in this case).
Hence, it is used in payment vouchers.

Multi Currency in Voucher
Example: Mr. King Purchased goods from Samsung Pvt. Ltd. Worth $130.

Invoicing
The default invoice formats have a variety of configurations options. Using them you may print
your invoices, You may not need to create new invoice formats. It is recommended that you
attempt to configure the default invoice itself. However, should you finally feel that the invoice
does not meet the needs; you can design a new invoice using Tally’s Definition Language
Report Designer. The TDL is quite an advanced language with which you can create new
reports and screens. You may even modify existing reports and screens. However, it is a
specialist’s job and would require advanced training.

Debit Note/ Credit Note
Debit note is entered when you make purchases return or have short-billed a customer or your
supplier have granted credit to you on account of rate difference, discount etc. Credit Note is
entered when you make Sales Return or discount/Rebate or due to some reason now you like to
square off a debit balance.

Outstanding Management
Maintain bill wise detail
Yes, if you wish to give a bill-wise break-
up of the ledger balance including the
opening
balance.
The
following

information for all pending bills of the
previous accounting period would be
required when entering the Opening
Balance:

Date
: Since you are giving

the break-up of the
opening balance, the
date
of
the
bill

would naturally be
prior to the accounting period. To end your list of entries, leave the Date
or name blank.

Name
: Give a name to which you can later refer when adjusting the bill.

Typically, you would give the bill no or document number. Remember,
the purpose of the break-up is to enable you to adjust it later when the
relevant transaction is squared off.

Due date
: Give the credit period or the date when the bill is due. You may give

either. Tally automatically calculates the other. Another of those small
conveniences that make life easier.

Note: During transaction entry, there would be another concept-that of effective date. If you opt for “using
effective dates” instead of “bill dates” the due would be calculated accordingly
Amount
: For the amount of the bill due. You would give particulars of all the

pending bills one by one. Tally fills in the difference between your
Opening Balance, and the sum of the bills, and reflects it as ‘On
Account’ at the bottom of the screen. If all your bills exactly cover the
opening Balance, the On Account becomes NIL.

Types of Ref.
: A pop-up window appears to select Method of Adjustment:

1. Advance
2. Against Ref.
3. New Ref
4. On Account

Select Relevant Type of Adjustment, Normal practice is listed below:

Advance
: when you make a Receipt or Payment as Advance against a Future

Sales/Purchase, entered as Advance.

Against Ref.
: When payment is received or made against any exiting bill (already

entered as New Ref.) or a bill is raised against earlier Advance, it is

Advance Accounting Features [F11]

entered as Against Reference which reduces the outstanding amount to
the extent of the adjusted amount. At Name field, you should give the
bill Ref (either by selecting from List of Bills or by entering Reference
Number-depending on your configuration) against which Bill the current
entry should be adjusted.

New Ref.
: When a new bill is entered (Sales or Purchase voucher) or when duplicate

payment/ receipt for already cleared Bill comes up comes up-treated as
New ref. the New Ref. is added to List of outstanding. At Name field,
enter an Identity for the bill (normally bill#)

On Account
: When a payment is received or made but not against specific bill (or bill

reference is not know). It will not appear while entering Sales or
Purchase voucher. On Account transactions do not effect bill-wise
outstanding as you do not adjust the transaction against any Bill. It
however reflects in the net balance of the Ledger.

Interest Calculations
Tally 9.0 allows you to obtain reposts on interest calculated by Tally based on the instructions
you furnish. Interest figures are typically desired in the following situations:

1.
On outstanding Balance amounts

2.
On outstanding bill/invoices/transactions (Receivable and payable)

Tally gives you an exhaustive capability to obtain interest implications on both.

Set-up required
You first need to activate the feature for the Company and then activate it for each specific
ledger account for which interest in to be calculated.
F11: Accounting Features contains the option to activate Interest Calculations for the
Company. Look at the outstanding management in this screen. The questions asked of you
are:
1.
Activate Interest Calculations? Set it to yes.

2.
Use Advanced Parameters? Set it to Yes.

Advanced Mode

Advanced Parameters – Interest Calculations on outstanding Balances
Following extra options now become available:
1.
You can now have multiple rates of interest.

2.
Choice of balances all Balances, Credit Balances only, Debit Balances only.

3.
Applicably period when is the interest applicable from and to which date.

4.
Choice of methods for Rounding off of interest amounts.

A brief explanation on each is called for:

Balances
Interest can be calculated on all outstanding balances whether debit or credit. You would like to
select only credit balances in case of accounts like bank accounts if you want to know the
interest that the bank might charge on overdrawn balances.

Applicable from
The date from which the rate is applicable to a specific date. If left blank then it is up to the last
date.

Rounding off
Whether the amount is to be rounded off normally or upward or downward. You need to give
the rounded to amount. E.g. round off upwards to the nearest 10.

The advanced parameters are particularly useful where interest rates change from time to time.
You may want to set your Bank Ltd interest parameters as follows:

Display Report Interest on Outstanding Balances
Display→ Statement of Accounts→ Interest Calculations→ Receivable/Payable

Budgets
Tally allows you to create multiple budgets. There could be a budget for specific purposes, e.g.,
for the bank, for the head office, optimistic budget, realistic budget, pessimistic budget, etc.
Departmental budgets can also be created, e.g., Marketing Budget, Finance Budget, etc.

As usual, you first create budgets. You can of course alter them.
Budget figures are used to compare against actual and to display
variances. This is done by bringing up anew column when
displaying a statement and selecting the appropriate budget.
We shall now go through the creation and alteration of budgets.
Gateway of Tally→ Account Info.→ Budgets

Operate Budgets
Gateway of Tally→ Account Info.→ Budgets Create

Name
Give the budget a name, in this case, Corporate Budget. As you may have other budgets as
well, the name distinguishes them.
Under
In the true Tally tradition, you can have a hierarchical budget set-up. At the top level is the
Primary budget. You can set up more than one Primary Budget.
Period of Budget
Specify the period of the budget. The period could be a month, a year or any period starting
from any date top any date.

Advance Accounting Features [F11]

Set/Alter Budgets
You may want to set the budget for groups of ledger accounts or for ledger accounts or
for ledger accounts individually or all of them. We shall take up budget for group only.
Follow the same process for same process for setting budgets for individual ledgers and
const centers.

Budget for Groups
Yes, if you want to set budgets for group or
groups of ledgers.
If yes, fill in the fields in the Group Budget
sub-screen:

Account Name
Give the names of the groups for which the budget is being set.
Type of Budget
Budgets could be of two types:
On Nett Transactions
Where transaction amounts are to be monitored and not the balances. Nett is net of
debits and credit for the specified period. Hence, Nett transactions for Indirect
Expenses would mean the debit amount for the specified period after reducing the
credits for the same period. Opening and closing balances notwithstanding.

On closing Balance
Where you wish to monitor the balance of the accounts and are not too keen on
the transactions., e.g., balances of Bank Accounts, Balances of debtors.
Amount
The budget amount for the account.

Budget for Ledger Accounts
Gateway of Tally→ Accounts Info.→ Budgets→ Create

Name for the Budget

1. Give the name of Budget E.g. Financial Budget under Primary budget.
2. Specify the period of the Budget. The period could be Month, a Year or any

period starting from any date to any date.

3. Under Set/Alter Budgets of, you may set the budget for groups of ledge accounts

or for ledger accounts individually or all of them.

4. Here we shall take up Budget for ledgers. Hence, set Yes under Ledgers and let

others remain No.

5. Select the ledgers for which you wish to set the Budget.

Type of Budget
Under the Type of Budget a pop-up of two different kinds of Budgets appears.