TALLY PRIME COMPLETE TUTORIAL

1) What is Accounting?

Simple Meaning

Accounting means:

Recording + Classifying + Summarizing + Checking money transactions of a business.

In simple words:

Where money came from + Where money went + What balance is left = Accounting

Every business needs this.

Examples:

Shop owner buys goods → must record
Customer pays cash → must record
Salary paid → must record
Rent paid → must record
Profit earned → must calculate

This complete money tracking is called Accounting.

Real-life Example

Imagine a petty shop.

Morning cash = ₹5,000

Transactions:

Bought biscuits = ₹1,000
Sold items = ₹2,500
Paid electricity = ₹500

Now owner wants to know:

How much cash left?
Profit or loss?
How much stock remains?
Any amount to receive?
Any amount to pay?

Accounting gives answers.

Concept

Think:

Business language = Accounting language

Just like we speak English or Tamil, businesses speak through accounts.

2) Types of Accounts

Accounting divides everything into 3 main account types:

Personal Account
Real Account
Nominal Account

Students must first identify:

Transaction belongs to which type?

Then entry becomes easy.

3) Personal Account

Meaning

Personal Account means:

Account related to a person / company / bank / customer / supplier.

Anyone or any organization treated as a “person” in accounting.

Examples:

Ram Account
Kumar Account
SBI Bank Account
Amazon Account
Supplier Account
Customer Account

All are Personal Accounts.

Example

You buy goods from Ravi on credit ₹10,000.

Here Ravi is a person.

So:

Ravi Account = Personal Account

Types of Personal Account

Natural Person

Human beings:

Ram
Kumar
Priya

Artificial Person

Organizations:

Bank
Company
School
Hospital

Representative Person

Represents people:

Salary Outstanding
Rent Outstanding
Prepaid Insurance

4) Real Account

Meaning

Real Account means:

Accounts related to things/assets that exist.

Something you can see / touch / own.

Examples:

Cash
Furniture
Building
Computer
Machinery
Stock
Land

These are assets.

These come under Real Account.

Example

Bought computer ₹30,000.

Computer is an asset.

So:

Computer Account = Real Account

5) Nominal Account

Meaning

Nominal means:

Income / Expense / Loss / Gain

These are temporary accounts.

Examples Expense:

Salary
Rent
Electricity
Advertisement
Repair

Examples Income:

Commission received
Discount received
Interest received

Examples Loss:

Theft loss

Examples Gain:

Profit on sale

All are Nominal Accounts.

Example

Paid salary ₹20,000.

Salary = expense.

So:

Salary Account = Nominal Account

6) Golden Rules of Accounting

Each account type has one rule.

Students should memorize conceptually.

Personal Account Rule

Debit the Receiver
Credit the Giver

Example:

Paid cash to Ravi ₹5,000.

Ravi receives money.

Ravi = Receiver → Debit

Cash goes → Credit

Entry:

Ravi A/c Dr ₹5,000
To Cash A/c ₹5,000

Real Account Rule

Debit What Comes In
Credit What Goes Out

Example:

Bought furniture cash ₹10,000.

Furniture comes in → Debit
Cash goes out → Credit

Entry:

Furniture A/c Dr ₹10,000
To Cash A/c ₹10,000

Nominal Account Rule

Debit Expenses & Losses
Credit Income & Gains

Example:

Paid rent ₹5,000.

Rent = expense → Debit
Cash goes → Credit

Entry:

Rent A/c Dr ₹5,000
To Cash A/c ₹5,000

7) Debit & Credit Concept

Students often fear this. Teach simply.

Debit = Left side
Credit = Right side

Think:

Debit	Credit
Receive	Give
Asset increases	Asset decreases
Expense increases	Income increases

Example:

Cash received ₹10,000

Cash increases.

Cash = Debit.

8) Assets / Liabilities / Income / Expense

Assets

What business owns.

Examples:

Cash
Stock
Computer
Furniture
Building

Liabilities

What business owes.

Examples:

Loan
Creditors
Outstanding salary

Income

Money earned.

Examples:

Sales
Commission
Interest income

Expense

Money spent.

Examples:

Salary
Rent
Electricity

Easy Formula

$A sse t s = L iabi l i t i es + C a p i t a l$

Example:

Cash = ₹50,000
Loan = ₹20,000
Owner Capital = ₹30,000

Balanced.

9) Journal Entry Basics

Journal = first record book.

Every transaction first enters Journal.

Format:

Date | Particulars | Debit | Credit

Example:

Paid rent ₹5,000

Journal:

Rent A/c Dr ₹5,000
To Cash A/c ₹5,000

(Being rent paid)

10) Ledger Concept

Ledger = classified account book.

Journal is rough recording.

Ledger is grouped recording.

Example:

Cash Account:

Opening = 10,000
Rent paid = 5,000
Sales received = 8,000

Closing = 13,000

This account-wise summary is Ledger.

11) Trial Balance Concept

Trial Balance checks:

Total Debit = Total Credit

If equal:

Accounts are mathematically balanced.

Example:

Cash Dr = 20,000
Furniture Dr = 10,000
Capital Cr = 30,000

Debit = 30,000
Credit = 30,000

Balanced.

Module 2: Introduction to Tally Prime

2.1 What is TallyPrime?

Concept:
TallyPrime is an accounting and business management software that automates everything your students learned in Module 1. Instead of writing journals manually, they press a few keys. Instead of calculating trial balance, Tally shows it instantly.

Think of TallyPrime as a digital CA office that:

Records every transaction (Journal → computerized)
Maintains all ledgers automatically
Generates financial reports instantly
Handles GST calculations and filing

Why this matters for students:

“In the real world, no one writes journals on paper. Companies use Tally. If you know accounting principles + Tally, you are job-ready.”

2.2 Features of TallyPrime

Concept: Features are the “superpowers” of Tally that make accounting faster and error-free.

Key Features with Examples:

Feature	What it does	Real-life Example
GST Compliance	Automatically calculates CGST, SGST, IGST	You sell goods at 18% GST → Tally adds 9% CGST + 9% SGST automatically
Inventory Management	Tracks stock in real time	Sell 5 laptops → Stock reduces by 5 instantly
Bank Integration	Connects directly with SBI, Axis Bank	View live bank balance inside Tally
TallyDrive (Cloud Backup)	Automatic backup to cloud	Never lose data even if computer crashes; 1GB free for Silver, 3GB for Gold license
Invoice Management System (IMS)	Tracks if suppliers filed GST	Shows mismatches before you file returns
Security Control	Restrict who can see what	Cashier can enter vouchers but cannot delete or see Profit

Student Takeaway: “Tally doesn’t just record transactions—it handles tax, tracks stock, and protects data.”

2.3 Installation

Concept: Installation is putting TallyPrime software on your computer so you can open and use it.

Step-by-Step:

Pre-requisites (check before starting):

Windows 8, 10, or 11
Minimum 4GB RAM (8GB recommended)
Internet connection for activation

Installation Steps:

Step 1: Download
→ Go to tallysolutions.com
→ Click "Download"
→ Save setup file in Downloads folder

Step 2: Install
→ Double-click setup.exe file
→ Choose "Install New"
→ Follow on-screen prompts
→ Click "Install"

Step 3: Launch
→ Click "Start TallyPrime" after installation completes

Step 4: Activate License
→ Click "Activate New License"
→ Enter Serial Number and Activation Key (provided with purchase)
→ Enter Unlock Key received on email
→ Press Enter

Student Practice: Install TallyPrime on their computers (or use lab computers where pre-installed).

2.4 Company Creation

Concept: A “Company” in Tally is like a separate digital file cabinet for one business’s books. If you run three businesses, you create three companies.

Important Dates to Understand:

Field	Meaning	Example
Financial Year begins from	Official accounting year	1-Apr-2025 (Indian financial year starts April 1)
Books beginning from	When YOU start entering data	If starting new business → same as financial year. If migrating mid-year → enter current date

Step-by-Step Company Creation:

Step 1: Open TallyPrime
→ Double-click Tally icon on desktop

Step 2: Go to Company Create Screen
→ Press Alt+K (Company)
→ Select "Create"

Step 3: Enter Basic Details
┌────────────────────────────────────────────┐
│ Field              │ What to Enter          │
├────────────────────────────────────────────┤
│ Name               │ Ramesh Electronics     │
│ Mailing Name       │ Ramesh Electronics     │
│ Address            │ 123, Gandhi Road, Mumbai│
│ Country            │ India                  │
│ State              │ Maharashtra            │
│ Pin Code           │ 400001                 │
│ Mobile No          │ 9876543210             │
│ Email              │ ramesh@electronics.com │
└────────────────────────────────────────────┘

Step 4: Set Financial Year
→ Financial Year begins from: 1-Apr-2025
→ Books Beginning from: 1-Apr-2025

Step 5: Base Currency (auto-filled as Indian Rupee ₹)

Step 6: Press Ctrl+A to Save

Practical Project Example: Create a company named “Sharma Traders” with address “45, Market Street, Delhi” starting 1-Apr-2025.

2.5 Select Company / Shut Company

Concept:

Select Company = Open a company to work on it
Shut Company = Close the current company (but data remains safe)

Step-by-Step:

To Select a Company:

Gateway of Tally → Select Company (or press Alt+K → Select)
→ Choose "Ramesh Electronics" from list
→ Press Enter
→ Now you see Gateway of Tally with company name on top

To Shut a Company:

Gateway of Tally → Shut Company (or press Alt+K → Shut)
→ Confirm "Yes"
→ You return to Company list screen

Student Practice: Select the company you created, then shut it, then select it again.

2.6 Alter Company

Concept: “Alter” means modify or change company details after creation. For example: phone number changed, address shifted, or financial year correction.

What you can change:

Name, address, contact details
Financial year dates (only if no transactions entered)
Base currency
Security settings

Step-by-Step:

Step 1: Gateway of Tally → Alt+K (Company) → Alter
Step 2: Select "Ramesh Electronics" from list
Step 3: Change any field (e.g., Mobile number to 9988776655)
Step 4: Press Ctrl+A to save

Important Note: Once you start entering transactions, you CANNOT change:

Financial year beginning date
Books beginning date

Student Practice: Alter your company to change email address to “contact@sharmatraders.com”.

2.7 Backup & Restore

Concept:

Backup = Make a copy of your data (like saving a file to USB drive or cloud)
Restore = Bring back data from a backup (if original gets deleted/corrupted)

Think of it like:

“Backup is your insurance policy. You never need it until disaster strikes. Then it’s priceless.”

Two ways to backup:

Method	How it works	Best for
Manual Backup	You press keys, choose location	One-time backup before major changes
TallyDrive (Cloud)	Automatic daily backup	Continuous protection from data loss

Step-by-Step Manual Backup:

Step 1: Gateway of Tally → Alt+Y (Data) → Backup
Step 2: Select "Ramesh Electronics" (or current company)
Step 3: Destination Path: Select folder (e.g., D:\Backup or USB drive)
Step 4: Press Enter to confirm
Step 5: Tally shows "Backup completed successfully"

Step-by-Step Restore:

Step 1: Gateway of Tally → Alt+Y (Data) → Backup & Restore → Restore
Step 2: Select source (Local Drive or TallyDrive)
Step 3: Navigate to backup file location
Step 4: Select company to restore
Step 5: Press Ctrl+A to start restore

Student Practice:

Take a manual backup of your company to a USB drive or D: drive
Verify backup file exists
(Optional) Try restoring to a different name (e.g., “Sharma Traders – Restored”)

2.8 Security Control / Password

Concept: Security Control lets you decide WHO can do WHAT in the company. Not everyone should have full access.

Three Levels of Security:

Security Type	What it protects	Who needs it
TallyVault Password	Entire company data (encrypted)	Owner, Administrator
User Access Control	Specific functions (vouchers, reports)	All users
Password Policy	Strength rules for passwords	IT Administrator

Step-by-Step to Enable Security Control:

Step 1: While CREATING company (or Alter company later)
Step 2: Set "Use Security Control?" → Yes
Step 3: Enter Administrator Name: "Admin"
Step 4: Enter Administrator Password: (type twice)
Step 5: Confirm

Now Tally asks for password every time company is opened.

Creating Different User Roles:

Gateway of Tally → Alt+K (Company) → Security Control → Users → Create

Example Users:
┌─────────────────────────────────────────────┐
│ User Name │ Password │ Access Rights        │
├─────────────────────────────────────────────┤
│ Admin     │ admin123 │ Full access          │
│ DataEntry │ entry123 │ Only voucher entry   │
│ Viewer    │ view123  │ Only reports (no entry)│
│ Billing   │ bill123  │ Only sales invoice   │
└─────────────────────────────────────────────┘

Student Practice:

Enable security control on your company
Create a user “DataEntry” with password “pass123”
Log in as DataEntry and verify you cannot alter company settings

⚠️ WARNING: Forgetting TallyVault password makes company data permanently inaccessible . Write passwords in a safe place!

2.9 Company Split (Advanced)

Concept: As data grows over years, Tally becomes slow. Company Split divides data by financial year into separate companies, keeping old data accessible but not slowing down current work.

When to split: After closing a financial year (e.g., on 1-Apr-2026, split off 2025-26 data)

Step-by-Step:

⚠️ STEP 0 (MOST IMPORTANT): Take FULL BACKUP before splitting!

Step 1: Gateway of Tally → Alt+Y (Data) → Split Company Data
Step 2: Select company to split (e.g., "Ramesh Electronics")
Step 3: Enter Split Date: 31-Mar-2026
      (Data before this date goes to OLD company)
      (Data from this date onward goes to NEW company)

Step 4: Confirm → Tally creates two companies:
      - "Ramesh Electronics - Old" (upto 31-Mar-2026)
      - "Ramesh Electronics" (from 1-Apr-2026 onwards)

Step 5: Verify both companies open and show correct balances

Student Practice (Demonstration Only):

Teacher demonstrates split using a sample company
Students should NOT split their main practice company yet
Explain concept, let them practice on a dummy company

Quick Reference Cheat Sheet for Students

Task	Shortcut / Path
Create Company	`Alt+K` → Create
Select Company	`Alt+K` → Select
Shut Company	`Alt+K` → Shut
Alter Company	`Alt+K` → Alter
Backup	`Alt+Y` → Backup
Restore	`Alt+Y` → Backup & Restore → Restore
Security Control	`Alt+K` → Security Control
Split Company	`Alt+Y` → Split Company Data
Save any screen	`Ctrl+A`
Exit without save	`Ctrl+Q`

Common Student Errors & Solutions

Error	Cause	Solution
“Company not found”	Wrong directory selected	Check data path in Gateway → Company Info
Cannot alter financial year	Transactions already entered	Cannot change; must create new company
Forgot TallyVault password	No recovery option	⚠️ Data is permanently lost. Always write down passwords!
Backup failed	Destination drive full or write-protected	Free up space or change destination
Restore overwrite warning	Company name already exists	Choose “Replace” or “Rename”

Module 3: Masters Creation

Groups & Ledgers: Complete Explanation

Part 1: What Are Groups? (The Big Picture)

Conceptual Foundation:

Think of a library:

Groups = Bookshelves (labeled: “Fiction”, “Non-Fiction”, “History”, “Science”)
Ledgers = Individual books on those shelves

Without shelves (groups), all books would be piled randomly. You would never find anything.

In accounting terms:

Group = A category that collects similar accounts
Ledger = A specific account within that category

Why groups matter:

Without Groups	With Groups
Balance Sheet shows 100 random accounts	Balance Sheet shows organized Assets, Liabilities
Profit & Loss mixes sales, rent, purchase, salary	P&L shows Income and Expenses separately
Trial Balance is unusable	Trial Balance is grouped logically
Finding “Rent” among 500 ledgers is hard	“Rent” is under “Indirect Expenses” folder

Part 2: The 28 Pre-defined Groups in Tally (Memorize These)

Tally comes with 28 fixed groups. You cannot delete or rename them. You can only create sub-groups under them.

Groups are organized into four categories:

Category A: Balance Sheet Groups (Assets)

Group Name	What it contains	Example Ledgers
Current Assets	Assets that convert to cash within 1 year	Stock, Debtors, Bank, Cash
Bank Accounts	All bank accounts (Sub-group of Current Assets)	SBI, HDFC, ICICI
Cash-in-Hand	Physical cash (Sub-group of Current Assets)	Petty Cash, Main Cash
Sundry Debtors	Customers who owe you	Rajesh, Meera, Sohan
Loans & Advances (Assets)	Loans you give to others	Loan to Employee
Stock-in-Hand	Inventory value (automatic by Tally)	(Tally manages this)
Fixed Assets	Long-term assets (used over 1 year)	Building, Machinery, Computer, Furniture
Depreciation	Accumulated depreciation (contra asset)	Depreciation on Computer

Category B: Balance Sheet Groups (Liabilities & Equity)

Group Name	What it contains	Example Ledgers
Current Liabilities	Debts due within 1 year	Creditors, GST Payable, Outstanding Expenses
Sundry Creditors	Suppliers you owe	HP World, Bajaj Electronics
Duties & Taxes	Tax liabilities (GST, TDS)	CGST Payable, SGST Payable
Provisions	Estimated expenses	Provision for Bad Debts
Secured Loans	Loans with collateral	Bank Loan, Vehicle Loan
Unsecured Loans	Loans without collateral	Loan from Friend, Director Loan
Capital Account	Owner’s investment	Owner’s Capital, Partner A Capital
Reserves & Surplus	Retained profits	General Reserve, P&L Account

Category C: Profit & Loss Groups (Expenses)

Group Name	What it contains	Example Ledgers
Direct Expenses	Expenses directly tied to production/purchase	Purchase, Freight, Customs Duty
Indirect Expenses	Operating expenses (not tied to production)	Rent, Salary, Electricity, Advertising
Manufacturing Expenses	Factory/production costs	Power Fuel, Factory Rent
Administrative Expenses	Office management costs	Office Rent, Stationery, Postage
Selling & Distribution Expenses	Sales-related costs	Advertising, Courier, Commission
Financial Expenses	Interest and finance costs	Bank Charges, Interest on Loan
Depreciation	Asset value reduction	Depreciation on Machinery

Category D: Profit & Loss Groups (Incomes)

Group Name	What it contains	Example Ledgers
Direct Incomes	Income from main business activity	Sales, Service Income
Indirect Incomes	Other incomes (not main business)	Discount Received, Interest Received, Rent Received
Sales Accounts	Sales revenue (Sub-group of Direct Incomes)	Local Sales, Export Sales
Purchase Accounts	Purchase cost (Sub-group of Direct Expenses)	Local Purchase, Import Purchase

Part 1: Balance Sheet Ledgers (Assets)

Current Assets (Liquid / Short-term)

Ledger Name	Under Group	Opening Balance Type	When to Use
Cash	Cash-in-Hand	Dr.	Physical cash in office
Petty Cash	Cash-in-Hand	Dr.	Small cash for daily expenses
SBI Current Account	Bank Accounts	Dr.	Bank account for daily operations
HDFC Bank Account	Bank Accounts	Dr.	Another bank account
ICICI Bank Account	Bank Accounts	Dr.	Another bank account
Axis Bank Account	Bank Accounts	Dr.	Another bank account
Stock-in-Hand	Stock-in-Hand	Dr.	Inventory value (Tally auto-updates)
Sundry Debtors	Sundry Debtors	Dr.	Group – individual customers go here
Loans & Advances (Given)	Loans & Advances (Assets)	Dr.	Money lent to employees/others
Prepaid Expenses	Current Assets	Dr.	Insurance paid in advance
Accrued Income	Current Assets	Dr.	Income earned but not received
Deposits (Rent, Electricity)	Current Assets	Dr.	Security deposits given

Fixed Assets (Long-term)

Ledger Name	Under Group	Opening Balance Type	When to Use
Land	Fixed Assets	Dr.	Land owned by business
Building	Fixed Assets	Dr.	Office/factory building
Furniture & Fixtures	Fixed Assets	Dr.	Chairs, tables, cabinets
Office Equipment	Fixed Assets	Dr.	Printers, scanners, AC
Computers	Fixed Assets	Dr.	Desktops, laptops
Laptops	Fixed Assets	Dr.	Specific laptop tracking
Servers	Fixed Assets	Dr.	IT infrastructure
Vehicles	Fixed Assets	Dr.	Cars, trucks, vans
Machinery	Fixed Assets	Dr.	Production equipment
Plant & Equipment	Fixed Assets	Dr.	Factory plant
Software Licenses	Fixed Assets (Intangible)	Dr.	Tally license, MS Office
Patents	Fixed Assets (Intangible)	Dr.	Intellectual property
Goodwill	Fixed Assets (Intangible)	Dr.	Brand value (purchased)
Capital Work-in-Progress	Fixed Assets	Dr.	Under-construction assets

Part 2: Balance Sheet Ledgers (Liabilities & Capital)

Current Liabilities (Short-term)

Ledger Name	Under Group	Opening Balance Type	When to Use
Sundry Creditors	Sundry Creditors	Cr.	Group – individual suppliers go here
Outstanding Expenses	Current Liabilities	Cr.	Expenses incurred but not paid (e.g., salary due)
Advance from Customers	Current Liabilities	Cr.	Customer paid before delivery
GST Payable (CGST)	Duties & Taxes	Cr.	Collected GST to be paid to govt
GST Payable (SGST)	Duties & Taxes	Cr.	Collected GST to be paid to govt
GST Payable (IGST)	Duties & Taxes	Cr.	Collected GST to be paid to govt
TDS Payable	Duties & Taxes	Cr.	Tax deducted at source to be paid
TCS Payable	Duties & Taxes	Cr.	Tax collected at source to be paid
Provident Fund Payable	Current Liabilities	Cr.	PF deducted from salary
ESI Payable	Current Liabilities	Cr.	ESI deducted from salary
Professional Tax Payable	Current Liabilities	Cr.	Professional tax collected
Bank Overdraft	Bank OD A/c	Cr.	Negative bank balance
Short-term Loan	Current Liabilities	Cr.	Loan due within 1 year

Long-term Liabilities

Ledger Name	Under Group	Opening Balance Type	When to Use
Bank Loan (SBI)	Secured Loans	Cr.	Loan with collateral
Vehicle Loan	Secured Loans	Cr.	Loan for vehicle purchase
Home Loan (Business Property)	Secured Loans	Cr.	Loan for business property
Loan from Director	Unsecured Loans	Cr.	Loan from owner without collateral
Loan from Friends/Family	Unsecured Loans	Cr.	Personal loan to business
Debentures	Unsecured Loans	Cr.	Company borrowings

Capital & Reserves

Ledger Name	Under Group	Opening Balance Type	When to Use
Capital Account	Capital Account	Cr.	Owner’s investment
Partner A Capital	Capital Account	Cr.	Partnership – Partner A
Partner B Capital	Capital Account	Cr.	Partnership – Partner B
Drawings	Capital Account	Dr.	Owner withdrawal (contra capital)
Retained Earnings	Reserves & Surplus	Cr.	Accumulated profits
General Reserve	Reserves & Surplus	Cr.	Profit set aside for future
Revaluation Reserve	Reserves & Surplus	Cr.	Asset revaluation gain
Current Year Profit/Loss	Reserves & Surplus	Cr. or Dr.	Auto by Tally

Part 3: Profit & Loss Ledgers (Expenses)

Direct Expenses (Related to Purchase/Production)

Ledger Name	Under Group	Opening Balance	When to Use
Purchase	Direct Expenses	Zero (no opening)	Buying goods for resale
Purchase – Local	Direct Expenses	Zero	Local purchases (GST applicable)
Purchase – Import	Direct Expenses	Zero	Imported goods
Freight Inward	Direct Expenses	Zero	Transport cost for purchases
Carriage Inward	Direct Expenses	Zero	Same as freight
Customs Duty	Direct Expenses	Zero	Import duty paid
Octroi	Direct Expenses	Zero	Local entry tax
Clearing Charges	Direct Expenses	Zero	Customs clearance fees
Handling Charges	Direct Expenses	Zero	Loading/unloading cost
Manufacturing Expenses	Direct Expenses	Zero	Factory production cost
Power & Fuel (Factory)	Direct Expenses	Zero	Electricity for production
Raw Material Consumed	Direct Expenses	Zero	Material used in production
Wages (Factory)	Direct Expenses	Zero	Factory worker salary

Indirect Expenses (Operating Expenses)

Ledger Name	Under Group	When to Use
Rent	Indirect Expenses	Office/factory rent
Rent – Office	Indirect Expenses	Office-specific rent
Rent – Godown	Indirect Expenses	Warehouse rent
Salary	Indirect Expenses	Employee salaries
Salary – Staff	Indirect Expenses	Regular staff
Salary – Manager	Indirect Expenses	Management salaries
Bonus	Indirect Expenses	Festival/year-end bonus
Festival Bonus	Indirect Expenses	Diwali/Dussehra bonus
Electricity Charges	Indirect Expenses	Office electricity
Water Charges	Indirect Expenses	Office water bill
Telephone Expenses	Indirect Expenses	Landline bills
Mobile Expenses	Indirect Expenses	Company mobile reimbursement
Internet Expenses	Indirect Expenses	Broadband/WiFi
Postage & Courier	Indirect Expenses	Postal/courier charges
Stationery	Indirect Expenses	Pens, paper, printer cartridges
Printing & Stationery	Indirect Expenses	Business cards, letterheads
Advertising	Indirect Expenses	Newspaper, TV, online ads
Marketing Expenses	Indirect Expenses	Digital marketing, SEO
Sales Promotion	Indirect Expenses	Discounts, free samples
Travel Expenses	Indirect Expenses	Train/flight tickets for business
Conveyance	Indirect Expenses	Local travel, auto, taxi
Fuel & Petrol	Indirect Expenses	Vehicle fuel
Vehicle Maintenance	Indirect Expenses	Car repair, servicing
Repair & Maintenance	Indirect Expenses	Office equipment repair
Computer Repair	Indirect Expenses	Laptop/desktop repair
Office Maintenance	Indirect Expenses	Cleaning, plumbing, painting
Insurance Premium	Indirect Expenses	Fire, theft, liability insurance
Legal & Professional Charges	Indirect Expenses	Lawyer, consultant fees
Audit Fees	Indirect Expenses	Statutory audit fees
Accounting Charges	Indirect Expenses	CA fees for bookkeeping
Consultancy Fees	Indirect Expenses	Business consultant
Software Subscription	Indirect Expenses	SaaS, Tally renewal
Membership & Subscription	Indirect Expenses	Professional association fees
Training & Development	Indirect Expenses	Employee training cost
Recruitment Expenses	Indirect Expenses	Hiring agency fees
Office Refreshments	Indirect Expenses	Tea, coffee, snacks
Staff Welfare	Indirect Expenses	Canteen, medical reimbursement
Charity & Donation	Indirect Expenses	CSR, donations
Bad Debts	Indirect Expenses	Unrecoverable customer dues
Provision for Bad Debts	Indirect Expenses	Estimated bad debt
Depreciation	Indirect Expenses	Asset value reduction
Loss on Sale of Asset	Indirect Expenses	Selling asset below book value
Bank Charges	Indirect Expenses	Transaction fees, AMC
Interest on Loan	Indirect Expenses	Loan interest paid
Interest on Bank OD	Indirect Expenses	Overdraft interest
Discount Allowed	Indirect Expenses	Cash discount to customers
Commission Paid	Indirect Expenses	Commission to agents
Brokerage Paid	Indirect Expenses	Broker fees
Packing Materials	Indirect Expenses	Boxes, tape for shipping
Godown Charges	Indirect Expenses	Warehouse rental
Security Services	Indirect Expenses	Security guard fees

Part 4: Profit & Loss Ledgers (Incomes)

Direct Incomes (Main Business Income)

Ledger Name	Under Group	When to Use
Sales	Direct Incomes	Main product/service sales
Sales – Local	Direct Incomes	Domestic sales (GST applicable)
Sales – Export	Direct Incomes	International sales
Service Income	Direct Incomes	Consulting, professional fees
Professional Fees	Direct Incomes	Doctor, lawyer, CA fees
Commission Received	Direct Incomes	Commission as primary business
Rental Income (Main Business)	Direct Incomes	If renting is core business

Indirect Incomes (Other Incomes)

Ledger Name	Under Group	When to Use
Discount Received	Indirect Incomes	Cash discount from suppliers
Interest Received	Indirect Incomes	Bank interest, loan interest
Interest on FD	Indirect Incomes	Fixed deposit interest
Dividend Received	Indirect Incomes	Share dividend
Rent Received	Indirect Incomes	Sub-letting office space
Gain on Sale of Asset	Indirect Incomes	Selling asset above book value
Commission Received	Indirect Incomes	One-time commission not main business
Brokerage Received	Indirect Incomes	Brokerage income
Scrap Sales	Indirect Incomes	Selling waste material
Miscellaneous Income	Indirect Incomes	Any other income
Rounding Off (Credit)	Indirect Incomes	Tally auto rounding
Write-back of Provisions	Indirect Incomes	Excess provision reversed
Insurance Claim Received	Indirect Incomes	Claim from insurance company

Part 3: Golden Rule of Groups (The Hierarchy)

Rule: Every ledger MUST belong to a group. And every group (except Primary) MUST belong to a parent group.

The Ultimate Parent: “Primary” (at the top of all groups)

Visual Hierarchy:

Primary (Top level)
├── Current Assets
│   ├── Bank Accounts
│   │   ├── SBI Current (Ledger)
│   │   └── HDFC Current (Ledger)
│   ├── Cash-in-Hand
│   │   └── Petty Cash (Ledger)
│   └── Sundry Debtors
│       ├── Rajesh (Ledger)
│       └── Meera (Ledger)
├── Indirect Expenses
│   ├── Rent (Ledger)
│   ├── Salary (Ledger)
│   └── Electricity (Ledger)
└── Direct Incomes
    └── Sales (Ledger)

Key understanding: When you create a ledger, Tally automatically places it in the right financial statement based on its group:

If group is under…	Ledger appears in…
Current Assets, Fixed Assets, Bank, Cash, Debtors	Balance Sheet (Asset side)
Current Liabilities, Capital, Loans, Creditors	Balance Sheet (Liability side)
Direct Expenses, Indirect Expenses	Profit & Loss (Expense side)
Direct Incomes, Indirect Incomes	Profit & Loss (Income side)

Part 4: Creating Groups (Step-by-Step)

When should you create a NEW group?

Situation	Action
Existing group perfectly fits	Use existing group (e.g., Rent → Indirect Expenses)
Need detailed sub-category	Create sub-group (e.g., “Festival Bonus” under “Indirect Expenses”)
New type of expense/income not covered	Create new group under appropriate parent

Step-by-Step Example 1: Create “Festival Bonus” Group

Scenario: You want to track Diwali bonuses separately from regular salary.

Step 1: Gateway of Tally → Create → Group
       (Shortcut: Alt+G → Create → Group)

Step 2: Enter details
┌────────────────────────────────────────────────┐
│ Field                    │ Value               │
├────────────────────────────────────────────────┤
│ Name                     │ Festival Bonus      │
│ Under                    │ Indirect Expenses   │
│ (Select from list)       │ (Press space to select)│
├────────────────────────────────────────────────┤
│ Nature of Group (optional)                     │
│ (Appears only for certain parents)             │
│ - For Banks: Bank, Cash, etc. (not needed here)│
└────────────────────────────────────────────────┘

Step 3: Press Ctrl+A to save

Step-by-Step Example 2: Create “North India Sales” (Sub-group under Direct Incomes)

Scenario: You want to track sales region-wise.

Step 1: Gateway → Create → Group

Step 2: 
┌────────────────────────────────────────────────┐
│ Name                     │ North India Sales   │
│ Under                    │ Direct Incomes      │
└────────────────────────────────────────────────┘

Step 3: Ctrl+A

Step-by-Step Example 3: Create “Office Equipment” (Sub-group under Fixed Assets)

Scenario: You want to group computers, printers, furniture separately from building.

Step 1: Gateway → Create → Group

Step 2:
┌────────────────────────────────────────────────┐
│ Name                     │ Office Equipment    │
│ Under                    │ Fixed Assets        │
└────────────────────────────────────────────────┘

Step 3: Ctrl+A

What happens after creation:

New group appears in Group List
Future ledgers can be created under this new group
Reports (Balance Sheet, P&L) show this group as a separate line item

Pre-defined Groups Quick Reference:

If you are creating…	Use this group
Expense (Rent, Salary, Electricity)	Indirect Expenses
Expense (Purchase, Freight, Customs)	Direct Expenses
Income (Sales, Service Fees)	Direct Incomes
Income (Discount Received, Interest)	Indirect Incomes
Customer who owes you	Sundry Debtors
Supplier you owe	Sundry Creditors
Bank account	Bank Accounts
Physical cash	Cash-in-Hand
Long-term asset (Computer, Furniture)	Fixed Assets
Owner’s investment	Capital Account
Loan from bank	Secured Loans

Simple Units of Measurement

Concept: Simple units are single, non-breakable units. They are used when you buy and sell in the same measurement (e.g., buying 10 kg of sugar and selling 2 kg of sugar) .

Unit Name	Symbol	Used For (Examples)
Numbers	Nos / Pcs	Individual items like pens, phones, notebooks, erasers
Kilogram	Kg	Weight-based items like rice, sugar, flour, vegetables
Gram	Gms	Small weight items like spices, gold, medicine
Liter	Ltr	Liquid items like milk, oil, water, soft drinks
Milliliter	Ml	Small liquid items like medicine, perfume, ink
Meter	Mtr	Length-based items like cloth, wire, ribbon, cable
Centimeter	Cm	Small length items like screws, small parts
Feet	Ft	Length for furniture, pipes, wood
Square Feet	Sq Ft	Area for tiles, plywood, property
Pair	Pr	Items sold in pairs like shoes, socks, gloves, earrings
Set	Set	Items sold as a collection like dinner set, geometry box
Dozen	Doz	Items sold in group of 12 like eggs, pencils, bangles
Pack	Pkt	Pre-packaged items like chips, biscuits, seeds
Bottle	Btl	Items in bottle packaging like cold drinks, water, sauces
Can	Can	Items in can packaging like paint, oil, beer
Box	Box	Items in box packaging like tiles, shoes, gifts
Bag	Bag	Items in bag packaging like cement, rice, fertilizer
Hour	Hrs	Time-based billing like consultancy, labor charges
Day	Day	Time-based billing like rent, salary, equipment hire

Compound Units of Measurement

Concept: Compound units are a combination of two simple units with a conversion factor. Use them when you buy in bulk but sell in smaller quantities, or vice versa .

Compound Unit Name	Conversion	Why Use It? (Real Business Example)
1 Box = 10 Nos	1 Box = 10 Pieces	You buy pens in a box of 10, but sell single pens to customers.
1 Dozen = 12 Nos	1 Dozen = 12 Pieces	You buy eggs in dozens, but sell individual eggs to bakeries.
1 Carton = 50 Nos	1 Carton = 50 Pieces	You buy mobile phones in cartons of 50, but sell single phones.
1 Kg = 1000 Grams	1 Kg = 1000 Grams	You buy sugar in 50kg bags, but sell 500 grams to households.
1 Bottle = 1 Liter	1 Bottle = 1 Liter	You buy cooking oil in 15 liter tins, but sell in 1 liter bottles.
1 Pack = 10 Pcs	1 Pack = 10 Pieces	You buy A4 paper in packs of 500 sheets, but sell packs of 50 sheets.
1 Set = 2 Pcs	1 Set = 2 Pieces	You buy speakers in pairs, but sell individually if damaged.
1 Bundle = 100 Pcs	1 Bundle = 100 Pieces	You buy bricks in bundles of 100, but sell in smaller lots.

How to Create Units in Tally Prime (Step-by-Step)

Step 1: Gateway of Tally → Create → Unit (or press Alt+G → Create Master → Unit)

Step 2: For a Simple Unit (e.g., “Nos”):

Field	What to Enter
Type	Simple
Symbol	Nos
Formal Name	Numbers

Step 3: For a Compound Unit (e.g., “1 Box = 10 Nos”):

Field	What to Enter
Type	Compound
First Unit	Box
Conversion	1
Second Unit	Nos
Conversion	10

Step 4: Press Ctrl+A to save.

Stock Groups to Create First

Stock Group Name	Under (Parent Group)
Writing Instruments	Primary
Paper Products	Primary
Office Supplies	Primary
Stationery Kits	Primary
Art & Craft	Primary

Part 2: Units of Measurement to Create First

Unit Symbol	Type	Conversion (if compound)
Nos	Simple	–
Doz	Simple	–
Pkt	Simple	–
Box	Simple	–
Bundle	Simple	–
Set	Simple	–
Kg	Simple	–

Stock Items List (Entry Exercise)

Category A: Writing Instruments (Group: Writing Instruments)

No.	Stock Item Name	Unit	Selling Rate (₹)	Opening Qty	Opening Cost (₹ per unit)	GST
1	Ball Pen (Blue) – Reynolds	Nos	10	500	6	12%
2	Ball Pen (Black) – Reynolds	Nos	10	500	6	12%
3	Ball Pen (Red) – Reynolds	Nos	10	200	6	12%
4	Gel Pen (Blue) – Cello	Nos	20	300	12	18%
5	Gel Pen (Black) – Cello	Nos	20	300	12	18%
6	Pencil – Nataraj	Nos	5	1,000	3	5%
7	Pencil – Apsara	Nos	8	500	5	5%
8	Sharpener – Metal	Nos	10	200	6	5%
9	Sharpener – Plastic	Nos	5	300	3	5%
10	Eraser – Nataraj	Nos	5	500	3	5%
11	Eraser – Faber Castell	Nos	10	200	6	5%
12	Highlighter – Yellow	Nos	30	100	18	18%
13	Highlighter – Pink	Nos	30	100	18	18%
14	Permanent Marker – Black	Nos	25	150	15	18%
15	Whiteboard Marker – Black	Nos	35	80	22	18%

Category B: Paper Products (Group: Paper Products)

No.	Stock Item Name	Unit	Selling Rate (₹)	Opening Qty	Opening Cost (₹ per unit)	GST
16	A4 Paper (500 sheets) – JK	Bundle	250	100	180	12%
17	A4 Paper (500 sheets) – Bilt	Bundle	230	80	165	12%
18	A3 Paper (500 sheets)	Bundle	450	50	320	12%
19	Notebook – Single Ruled (100 pg)	Nos	35	500	22	5%
20	Notebook – Single Ruled (200 pg)	Nos	60	300	40	5%
21	Notebook – Double Ruled (100 pg)	Nos	40	400	25	5%
22	Spiral Notebook (100 pg)	Nos	50	200	32	12%
23	Practical Notebook (200 pg)	Nos	80	150	55	5%
24	Drawing Book (A4)	Nos	45	200	30	5%
25	Chart Paper – White	Nos	8	500	5	5%
26	Chart Paper – Assorted Colors	Pkt (10 sheets)	80	100	55	12%
27	Post-it Notes (3×3) – Yellow	Pkt	60	150	40	18%
28	Post-it Notes (3×3) – Assorted	Pkt	70	100	48	18%
29	Sticky Notes (Arrow)	Pkt	45	80	30	18%

Category C: Office Supplies (Group: Office Supplies)

No.	Stock Item Name	Unit	Selling Rate (₹)	Opening Qty	Opening Cost (₹ per unit)	GST
30	Stapler – Small	Nos	40	100	25	18%
31	Stapler – Heavy Duty	Nos	150	30	100	18%
32	Stapler Pins (1000 pins)	Box	15	200	10	18%
33	Stapler Pins (5000 pins)	Box	50	100	35	18%
34	Paper Clips (100 pcs)	Box	10	300	6	18%
35	Paper Clips (500 pcs)	Box	40	150	28	18%
36	File Folder – Plastic	Nos	30	200	20	12%
37	File Folder – Cardboard	Nos	15	300	10	12%
38	Ring Binder (2 Ring) – 1 inch	Nos	80	100	55	18%
39	Ring Binder (2 Ring) – 2 inch	Nos	120	80	85	18%
40	Punching Machine – Single Hole	Nos	60	60	40	18%
41	Punching Machine – 2 Hole	Nos	120	40	85	18%
42	Scissors – Small	Nos	40	80	25	18%
43	Scissors – Large	Nos	70	50	48	18%
44	Glue Stick (20g)	Nos	20	200	12	18%
45	Glue Stick (40g)	Nos	35	150	22	18%
46	Fevicol Tube (50g)	Nos	25	180	15	18%
47	Fevicol Bottle (200ml)	Nos	60	100	40	18%
48	Cellotape (1 inch) – Small	Nos	15	150	10	18%
49	Cellotape (2 inch) – Large	Nos	40	100	28	18%
50	Whiteout / Correction Pen	Nos	25	120	16	18%

Category D: Stationery Kits (Group: Stationery Kits)

No.	Stock Item Name	Unit	Selling Rate (₹)	Opening Qty	Opening Cost (₹ per unit)	GST
51	Geometry Box – Camlin	Nos	80	200	55	12%
52	Geometry Box – Faber Castell	Nos	150	100	110	12%
53	Geometry Box – Student (Basic)	Nos	50	300	35	12%
54	Student Stationery Kit (Pen+Pencil+Eraser+Sharpener)	Set	40	150	28	12%
55	Premium Stationery Kit (Full set with Geometry Box)	Set	200	80	140	12%
56	Art Kit (Colors + Brush + Drawing Book)	Set	250	50	180	12%

Category E: Art & Craft (Group: Art & Craft)

No.	Stock Item Name	Unit	Selling Rate (₹)	Opening Qty	Opening Cost (₹ per unit)	GST
57	Crayons (12 colors) – Camlin	Box	40	150	28	12%
58	Crayons (24 colors) – Camlin	Box	70	100	50	12%
59	Water Color (12 shades)	Set	80	80	55	12%
60	Water Color (24 shades)	Set	150	60	110	12%
61	Oil Pastels (12 colors)	Box	60	100	42	12%
62	Oil Pastels (24 colors)	Box	110	80	78	12%
63	Sketch Pens (12 colors)	Box	90	120	65	18%
64	Sketch Pens (24 colors)	Box	160	80	115	18%
65	Paint Brush Set (6 pieces)	Set	50	100	35	12%
66	Paint Brush Set (12 pieces)	Set	90	70	65	12%
67	Drawing Pencil Set (6B, 4B, 2B, HB)	Set	60	120	42	5%
68	Clay Modeling Kit	Box	120	50	85	12%

Voucher Types Covered in This Exercise Set

Voucher Type	Tally Shortcut	Purpose
Payment	F5	Cash/Bank going out
Receipt	F6	Cash/Bank coming in
Contra	F4	Transfer between Cash & Bank
Sales	F8	Selling goods (with inventory)
Purchase	F9	Buying goods (with inventory)
Sales Return / Credit Note	Ctrl+F8	Customer returns goods
Purchase Return / Debit Note	Ctrl+F9	Supplier returns goods
Journal	F7	Non-cash adjustments
Delivery Note	Alt+F8	Goods sent but invoice later
Receipt Note	Alt+F9	Goods received but bill later

Prerequisite: Masters Already Created

Before starting these sums, create these ledgers

Ledgers

Ledger Name	Under Group	Opening Balance
Cash	Cash-in-Hand	₹1,00,000 Dr.
SBI Bank	Bank Accounts	₹2,00,000 Dr.
Rajesh (Customer)	Sundry Debtors	₹0
Meera (Customer)	Sundry Debtors	₹0
Neha Traders (Supplier)	Sundry Creditors	₹0
Capital	Capital Account	₹3,00,000 Cr.
Sales	Direct Incomes	0
Purchase	Direct Expenses	0
Rent	Indirect Expenses	0
Salary	Indirect Expenses	0
Office Expenses	Indirect Expenses	0
Discount Allowed	Indirect Expenses	0
Discount Received	Indirect Incomes	0
CGST Payable	Duties & Taxes	0
SGST Payable	Duties & Taxes	0
CGST Input Credit	Duties & Taxes	0 (Dr. allowed)
SGST Input Credit	Duties & Taxes	0 (Dr. allowed)

Stock Items

Stock Item	Stock Group	Unit	Selling Rate	Cost Rate	GST
Ball Pen (Blue)	Writing Instruments	Nos	₹10	₹6	12%
Ball Pen (Black)	Writing Instruments	Nos	₹10	₹6	12%
A4 Paper (500 sheets)	Paper Products	Bundle	₹250	₹180	12%
Notebook (100 pg)	Paper Products	Nos	₹35	₹22	5%
Geometry Box	Stationery Kits	Nos	₹80	₹55	12%

Opening Stock (Already entered)

Stock Item	Opening Qty
Ball Pen (Blue)	500 Nos
Ball Pen (Black)	500 Nos
A4 Paper (500 sheets)	100 Bundle
Notebook (100 pg)	500 Nos
Geometry Box	200 Nos

Part 1: Payment Voucher Sums (F5)

Payment 1: Rent Paid by Cheque

Date: 05-Apr-2025
Transaction: Paid monthly office rent ₹15,000 by cheque from SBI Bank.

Field	Entry
Voucher Type	Payment (F5)
Account (Credit)	SBI Bank → ₹15,000
Account (Debit)	Rent → ₹15,000
Cheque No.	123456

Expected Effect: Rent expense +₹15,000, Bank balance -₹15,000

Payment 2: Salary Paid in Cash

Date: 10-Apr-2025
Transaction: Paid employee salary ₹25,000 in cash.

Field	Entry
Voucher Type	Payment (F5)
Account (Credit)	Cash → ₹25,000
Account (Debit)	Salary → ₹25,000

Expected Effect: Salary expense +₹25,000, Cash balance -₹25,000

Payment 3: Paid to Supplier (Full Payment)

Date: 15-Apr-2025
Transaction: Paid ₹50,000 to supplier “Neha Traders” by cheque (against previous purchase bill INV-001). Enable bill-wise.

Field	Entry
Voucher Type	Payment (F5)
Account (Credit)	SBI Bank → ₹50,000
Account (Debit)	Neha Traders → ₹50,000
Bill-wise Details	Select bill INV-001

Expected Effect: Supplier balance reduces by ₹50,000, Bank balance -₹50,000

Payment 4: Petty Cash Expenses

Date: 20-Apr-2025
Transaction: Paid ₹2,000 for office stationery (pens, paper) from petty cash.

Field	Entry
Voucher Type	Payment (F5)
Account (Credit)	Cash → ₹2,000
Account (Debit)	Office Expenses → ₹2,000

Expected Effect: Office Expenses +₹2,000, Cash balance -₹2,000

Payment 5: Partial Payment to Supplier

Date: 25-Apr-2025
Transaction: Paid ₹30,000 to supplier “Neha Traders” by cash (partial payment against total dues of ₹50,000). Enable bill-wise.

Field	Entry
Voucher Type	Payment (F5)
Account (Credit)	Cash → ₹30,000
Account (Debit)	Neha Traders → ₹30,000
Bill-wise Details	Select bill INV-001, enter ₹30,000 as paid

Expected Effect: Supplier balance reduces from ₹50,000 to ₹20,000, Cash balance -₹30,000

Part 2: Receipt Voucher Sums (F6)

Receipt 1: Cash Received from Customer

Date: 05-Apr-2025
Transaction: Received ₹15,000 cash from customer “Rajesh” (against previous sales invoice).

Field	Entry
Voucher Type	Receipt (F6)
Account (Debit)	Cash → ₹15,000
Account (Credit)	Rajesh → ₹15,000
Bill-wise Details	Select outstanding bill

Expected Effect: Cash +₹15,000, Customer balance reduces

Receipt 2: Cheque Received from Customer

Date: 12-Apr-2025
Transaction: Received ₹25,000 by cheque from customer “Meera” (full payment).

Field	Entry
Voucher Type	Receipt (F6)
Account (Debit)	SBI Bank → ₹25,000
Account (Credit)	Meera → ₹25,000
Cheque No.	987654

Expected Effect: Bank +₹25,000, Customer Meera balance becomes zero

Receipt 3: Cash Sale (No Customer Ledger)

Date: 18-Apr-2025
Transaction: Cash sale of goods ₹12,000 (no customer ledger needed – direct income).

Field	Entry
Voucher Type	Receipt (F6)
Account (Debit)	Cash → ₹12,000
Account (Credit)	Sales → ₹12,000

Expected Effect: Cash +₹12,000, Sales income +₹12,000

Receipt 4: Interest Received

Date: 22-Apr-2025
Transaction: Received interest ₹2,500 directly in SBI Bank account.

Field	Entry
Voucher Type	Receipt (F6)
Account (Debit)	SBI Bank → ₹2,500
Account (Credit)	Interest Received (Indirect Income) → ₹2,500

Expected Effect: Bank +₹2,500, Other income +₹2,500

Receipt 5: Partial Payment from Customer (Bill-wise)

Date: 28-Apr-2025
Transaction: Received ₹10,000 cash from customer “Rajesh” as partial payment against total due of ₹15,000.

Field	Entry
Voucher Type	Receipt (F6)
Account (Debit)	Cash → ₹10,000
Account (Credit)	Rajesh → ₹10,000
Bill-wise Details	Select bill, enter ₹10,000 as paid

Expected Effect: Cash +₹10,000, Customer balance reduces from ₹15,000 to ₹5,000

Part 3: Contra Voucher Sums (F4)

Contra 1: Cash Deposited into Bank

Date: 02-Apr-2025
Transaction: Deposited ₹25,000 cash into SBI Bank.

Field	Entry
Voucher Type	Contra (F4)
Account (Debit)	SBI Bank → ₹25,000
Account (Credit)	Cash → ₹25,000

Expected Effect: Bank +₹25,000, Cash -₹25,000

Contra 2: Cash Withdrawn from Bank for Office Use

Date: 15-Apr-2025
Transaction: Withdrew ₹10,000 cash from SBI Bank for office use.

Field	Entry
Voucher Type	Contra (F4)
Account (Debit)	Cash → ₹10,000
Account (Credit)	SBI Bank → ₹10,000

Expected Effect: Cash +₹10,000, Bank -₹10,000

Contra 3: Transfer between Banks

Date: 25-Apr-2025
Transaction: Transferred ₹50,000 from SBI Bank to HDFC Bank (if HDFC ledger exists).

Field	Entry
Voucher Type	Contra (F4)
Account (Debit)	HDFC Bank → ₹50,000
Account (Credit)	SBI Bank → ₹50,000

Expected Effect: HDFC +₹50,000, SBI -₹50,000

Part 4: Purchase Voucher Sums (F9)

Purchase 1: Cash Purchase (No GST – for simplicity first)

Date: 03-Apr-2025
Transaction: Purchased 100 Ball Pens (Blue) @ ₹6 each for cash.

Field	Entry
Voucher Type	Purchase (F9)
Party	(Leave blank for cash purchase)
Stock Item	Ball Pen (Blue) → Qty: 100 → Rate: ₹6
Total Value	₹600
Account (Credit)	Cash → ₹600

Expected Effect: Stock of Ball Pen +100, Cash -₹600

Purchase 2: Credit Purchase from Supplier (with GST 12%)

Date: 08-Apr-2025
Transaction: Purchased from “Neha Traders” (Supplier):

50 Notebooks (100 pg) @ ₹22 each
20 Geometry Boxes @ ₹55 each
GST 12% (CGST 6% + SGST 6%)

Field	Entry
Voucher Type	Purchase (F9)
Party (Supplier)	Neha Traders
Stock Items	Notebook (100 pg): Qty 50, Rate ₹22
	Geometry Box: Qty 20, Rate ₹55
Taxable Value	(50×22=1,100) + (20×55=1,100) = ₹2,200
CGST 6%	₹132
SGST 6%	₹132
Total Invoice Value	₹2,464

Expected Effect: Stock increases, Supplier balance +₹2,464, Input credit (CGST+SGST) increases

Purchase 3: Cash Purchase with GST 5%

Date: 12-Apr-2025
Transaction: Purchased 200 Ball Pens (Black) @ ₹6 each from cash market. GST 12%.

Field	Entry
Voucher Type	Purchase (F9)
Party	(Blank – cash purchase)
Stock Item	Ball Pen (Black): Qty 200, Rate ₹6
Taxable Value	₹1,200
CGST 6%	₹72
SGST 6%	₹72
Total	₹1,344
Account (Credit)	Cash → ₹1,344

Expected Effect: Stock +200, Cash -₹1,344, Input credit +₹144

Purchase 4: Purchase with Discount

Date: 18-Apr-2025
Transaction: Purchased 10 Bundles of A4 Paper @ ₹180 each from “Neha Traders”. Supplier allowed ₹100 discount. GST 12%.

Field	Entry
Voucher Type	Purchase (F9)
Party	Neha Traders
Stock Item	A4 Paper: Qty 10, Rate ₹180
Taxable Value	₹1,800
Discount	₹100 (entered before tax)
Taxable after discount	₹1,700
CGST 6%	₹102
SGST 6%	₹102
Total	₹1,904

Expected Effect: Stock +10, Supplier balance +₹1,904

Purchase 5: Inter-State Purchase (IGST)

Date: 25-Apr-2025
Transaction: Purchased 50 Geometry Boxes @ ₹55 each from “Mumbai Suppliers” (outside state – Maharashtra to Delhi). IGST 12% (no CGST/SGST).

Field	Entry
Voucher Type	Purchase (F9)
Party	Mumbai Suppliers (create new under Sundry Creditors)
Stock Item	Geometry Box: Qty 50, Rate ₹55
Taxable Value	₹2,750
IGST 12%	₹330
Total	₹3,080
GST Treatment	IGST Input Credit (Dr.)

Expected Effect: Stock +50, Supplier balance +₹3,080, IGST Input credit +₹330

Part 5: Sales Voucher Sums (F8)

Sales 1: Cash Sale (No GST – simple)

Date: 04-Apr-2025
Transaction: Sold 50 Ball Pens (Blue) @ ₹10 each for cash.

Field	Entry
Voucher Type	Sales (F8)
Party	(Blank – cash sale)
Stock Item	Ball Pen (Blue): Qty 50, Rate ₹10
Total	₹500
Account (Debit)	Cash → ₹500

Expected Effect: Stock -50, Cash +₹500, Sales income +₹500

Sales 2: Credit Sale to Customer (with GST 12%)

Date: 07-Apr-2025
Transaction: Sold to customer “Rajesh”:

50 Notebooks (100 pg) @ ₹35 each
10 Geometry Boxes @ ₹80 each
GST 12% (CGST 6% + SGST 6%)

Field	Entry
Voucher Type	Sales (F8)
Party	Rajesh
Stock Items	Notebook (100 pg): Qty 50, Rate ₹35
	Geometry Box: Qty 10, Rate ₹80
Taxable Value	(50×35=1,750) + (10×80=800) = ₹2,550
CGST 6%	₹153
SGST 6%	₹153
Total Invoice	₹2,856

Expected Effect: Stock decreases, Rajesh balance +₹2,856, GST payable +₹306

Sales 3: Cash Sale with GST 18%

Date: 11-Apr-2025
Transaction: Sold 20 Ball Pens (Black) @ ₹10 each for cash. GST 12%.

Field	Entry
Voucher Type	Sales (F8)
Party	(Blank – cash sale)
Stock Item	Ball Pen (Black): Qty 20, Rate ₹10
Taxable Value	₹200
CGST 6%	₹12
SGST 6%	₹12
Total	₹224
Account (Debit)	Cash → ₹224

Expected Effect: Stock -20, Cash +₹224, GST payable +₹24

Sales 4: Credit Sale with Discount (Before Tax)

Date: 14-Apr-2025
Transaction: Sold to customer “Meera”:

10 A4 Paper Bundles @ ₹250 each
Discount allowed ₹200 (to regular customer)
GST 12%

Field	Entry
Voucher Type	Sales (F8)
Party	Meera
Stock Item	A4 Paper: Qty 10, Rate ₹250
Taxable Value	₹2,500
Discount	₹200 (before tax)
Taxable after discount	₹2,300
CGST 6%	₹138
SGST 6%	₹138
Total	₹2,576
Discount Ledger	Discount Allowed (Dr.)

Expected Effect: Stock -10, Meera balance +₹2,576, GST payable +₹276, Discount expense +₹200

Sales 5: Inter-State Sale (IGST)

Date: 22-Apr-2025
Transaction: Sold 30 Geometry Boxes @ ₹80 each to “Delhi Traders” (outside state – but within same state? Let’s do out-of-state: Delhi to Gurgaon, Haryana). IGST 12%.

Field	Entry
Voucher Type	Sales (F8)
Party	Delhi Traders (create under Sundry Debtors)
Stock Item	Geometry Box: Qty 30, Rate ₹80
Taxable Value	₹2,400
IGST 12%	₹288
Total	₹2,688

Expected Effect: Stock -30, Customer balance +₹2,688, IGST payable +₹288

Part 6: Credit Note (Sales Return) Sums (Ctrl+F8)

Credit Note 1: Customer Returned Goods (Full Return)

Date: 09-Apr-2025
Transaction: Customer “Rajesh” returned 5 Notebooks (100 pg) @ ₹35 each (originally sold on 07-Apr). Original invoice had GST 12%.

Field	Entry
Voucher Type	Credit Note (Ctrl+F8)
Party	Rajesh
Stock Item	Notebook (100 pg): Qty 5, Rate ₹35
Taxable Value	₹175
CGST (-6%)	₹10.50 (reverse)
SGST (-6%)	₹10.50 (reverse)
Total Credit Note	₹196

Expected Effect: Stock +5, Rajesh balance reduces by ₹196, GST liability reduces by ₹21

Credit Note 2: Customer Returned Damaged Goods (Partial Return)

Date: 16-Apr-2025
Transaction: Customer “Meera” returned 2 damaged A4 Paper Bundles (original sale on 14-Apr). Original rate ₹250, GST 12%.

Field	Entry
Voucher Type	Credit Note (Ctrl+F8)
Party	Meera
Stock Item	A4 Paper: Qty 2, Rate ₹250
Taxable Value	₹500
CGST 6%	₹30 (reverse)
SGST 6%	₹30 (reverse)
Total	₹560

Expected Effect: Stock +2, Meera balance reduces by ₹560, GST liability reduces by ₹60

Credit Note 3: Customer Returned – Rate Difference Only (No Stock Return)

Date: 24-Apr-2025
Transaction: Customer “Rajesh” complained about pricing. Agreed to reduce sale value by ₹100 without physical return of goods.

Field	Entry
Voucher Type	Credit Note (Ctrl+F8)
Party	Rajesh
Mode	Non-inventory (no stock item)
Taxable Value	₹100
CGST 6%	₹6
SGST 6%	₹6
Total	₹112

Expected Effect: Rajesh balance reduces by ₹112, Sales income reduces by ₹100, GST liability reduces by ₹12

Part 7: Debit Note (Purchase Return) Sums (Ctrl+F9)

Debit Note 1: Returned Goods to Supplier (Full Return)

Date: 10-Apr-2025
Transaction: Returned 10 Ball Pens (Blue) to supplier “Neha Traders” @ ₹6 each (original purchase on 03-Apr). GST 12%.

Field	Entry
Voucher Type	Debit Note (Ctrl+F9)
Party	Neha Traders
Stock Item	Ball Pen (Blue): Qty 10, Rate ₹6
Taxable Value	₹60
CGST 6%	₹3.60 (reverse input credit)
SGST 6%	₹3.60 (reverse input credit)
Total	₹67.20

Expected Effect: Stock -10, Supplier balance reduces by ₹67.20, Input credit reduces by ₹7.20

Debit Note 2: Returned Damaged Goods to Supplier

Date: 19-Apr-2025
Transaction: Returned 5 damaged Geometry Boxes to “Neha Traders” @ ₹55 each (original purchase on 08-Apr). GST 12%.

Field	Entry
Voucher Type	Debit Note (Ctrl+F9)
Party	Neha Traders
Stock Item	Geometry Box: Qty 5, Rate ₹55
Taxable Value	₹275
CGST 6%	₹16.50
SGST 6%	₹16.50
Total	₹308

Expected Effect: Stock -5, Supplier balance reduces by ₹308, Input credit reduces by ₹33

Debit Note 3: Rate Difference – No Stock Return

Date: 26-Apr-2025
Transaction: Supplier “Neha Traders” agreed to reduce purchase price by ₹200 on previous purchase due to quality issue. No physical return.

Field	Entry
Voucher Type	Debit Note (Ctrl+F9)
Party	Neha Traders
Mode	Non-inventory
Taxable Value	₹200
CGST 6%	₹12
SGST 6%	₹12
Total	₹224

Expected Effect: Supplier balance reduces by ₹224, Purchase expense reduces by ₹200, Input credit reduces by ₹24

Part 8: Journal Voucher Sums (F7)

Journal 1: Depreciation Entry

Date: 30-Apr-2025
Transaction: Provide depreciation on Furniture @ 10% for the year. Furniture value ₹50,000.

Field	Entry
Voucher Type	Journal (F7)
Debit	Depreciation A/c (Indirect Expenses) → ₹5,000
Credit	Furniture A/c (Fixed Assets) → ₹5,000

Expected Effect: Depreciation expense +₹5,000, Furniture value -₹5,000

Journal 2: Outstanding Expense Provision

Date: 30-Apr-2025
Transaction: Salary for April ₹25,000 not yet paid (will be paid in May).

Field	Entry
Voucher Type	Journal (F7)
Debit	Salary A/c → ₹25,000
Credit	Outstanding Salary A/c (Current Liabilities) → ₹25,000

Expected Effect: Salary expense recorded, Liability created

Journal 3: Prepaid Expense

Date: 01-Apr-2025
Transaction: Paid insurance premium ₹12,000 for full year. Only April’s portion (₹1,000) is expense for this month.

Field	Entry
Voucher Type	Journal (F7)
Debit	Prepaid Insurance A/c (Current Assets) → ₹11,000
Debit	Insurance Expense A/c → ₹1,000
Credit	Cash A/c (or Bank) → ₹12,000

Expected Effect: Asset created for future months, only 1/12th expensed

Journal 4: Write-off Bad Debt

Date: 28-Apr-2025
Transaction: Customer “Rajesh” balance of ₹5,000 declared unrecoverable.

Field	Entry
Voucher Type	Journal (F7)
Debit	Bad Debts A/c (Indirect Expenses) → ₹5,000
Credit	Rajesh A/c (Sundry Debtors) → ₹5,000

Expected Effect: Expense +₹5,000, Customer balance becomes zero

Journal 5: Goods Withdrawn by Owner (Drawings)

Date: 20-Apr-2025
Transaction: Owner withdrew 10 Notebooks (100 pg) @ ₹35 selling price for personal use.

Field	Entry
Voucher Type	Journal (F7)
Debit	Drawings A/c (Capital Account – Dr.) → ₹350
Credit	Sales A/c? (No – better to use Purchase/Stock adjustment)

Alternative correct method in Tally:
Use Journal with stock item: Debit Drawings, Credit Stock Item (at cost).

Simpler for students: Use Journal →

Debit: Drawings A/c → ₹220 (cost: 10 × ₹22)
Credit: Purchase A/c → ₹220

Expected Effect: Owner’s capital reduces, Stock reduces

Part 9: Delivery Note (Sales Order) & Receipt Note (Purchase Order)

Delivery Note 1: Goods Sent to Customer (Invoice Later)

Date: 06-Apr-2025
Transaction: Sent 30 Ball Pens (Blue) @ ₹10 each to customer “Rajesh” as sample. Invoice will be raised later.

Field	Entry
Voucher Type	Delivery Note (Alt+F8)
Party	Rajesh
Stock Item	Ball Pen (Blue): Qty 30
Rate	(Optional – rate not needed for delivery note)

Expected Effect: Stock moved to “Delivery Note” pending. No accounting entry yet.

Later – Convert to Sales Invoice:
Gateway → Display → Delivery Note → Select → Convert to Sales Invoice

Receipt Note 1: Goods Received from Supplier (Bill Later)

Date: 09-Apr-2025
Transaction: Received 50 Geometry Boxes @ ₹55 each from “Neha Traders”. Bill not yet received.

Field	Entry
Voucher Type	Receipt Note (Alt+F9)
Party	Neha Traders
Stock Item	Geometry Box: Qty 50, Rate ₹55
Bill No.	(Leave blank – Bill to be received later)

Expected Effect: Stock received, Liability pending (no purchase entry until bill arrives)

Later – Convert to Purchase Invoice:
Gateway → Display → Receipt Note → Select → Convert to Purchase Invoice

Part 10: Comprehensive Practice Set (All Vouchers Together)

Give students this single business scenario for one month (April 2025). They must enter ALL transactions in order.

Company: “Sharma Electronics” (Starting masters already created)

Opening Balances (as on 01-Apr-2025):

Cash: ₹50,000
SBI Bank: ₹1,00,000
Stock: As per stock items list
Capital: ₹1,50,000 + stock value

April 2025 Transactions:

Date	Transaction Details	Voucher Type
01-Apr	Deposited ₹20,000 cash into SBI Bank	Contra
02-Apr	Purchased 50 Ball Pens (Blue) @ ₹6 each + 12% GST from “Neha Traders” on credit	Purchase
03-Apr	Sold 30 Ball Pens (Blue) @ ₹10 each + 12% GST to “Rajesh” on credit	Sales
05-Apr	Paid rent ₹10,000 by cheque from SBI	Payment
06-Apr	Received ₹15,000 cheque from “Rajesh” (partial payment)	Receipt
08-Apr	Purchased 10 A4 Paper bundles @ ₹180 each + 12% GST from “Neha Traders” cash	Purchase
10-Apr	Sold 5 A4 Paper bundles @ ₹250 each + 12% GST for cash	Sales
12-Apr	Returned 5 defective Ball Pens (Blue) to “Neha Traders”	Debit Note
15-Apr	Customer “Rajesh” returned 2 Ball Pens (Blue) (defective)	Credit Note
18-Apr	Paid ₹5,000 as salary in cash	Payment
20-Apr	Withdrew ₹10,000 cash from SBI Bank for office use	Contra
22-Apr	Sold 20 Notebooks @ ₹35 each + 5% GST for cash	Sales
25-Apr	Paid balance due to “Neha Traders” by cheque (full settlement)	Payment
28-Apr	Received full balance from “Rajesh” by cheque	Receipt
30-Apr	Provide depreciation on Furniture ₹2,000 (assuming furniture exists)	Journal

Answer Key (For Teachers) – Expected Final Balances

After entering all 15 transactions, students should verify:

Report	Expected Value
Closing Cash Balance	₹(Calculate: Opening 50,000 + deposits – withdrawals – payments)
Closing SBI Bank Balance	₹(Calculate)
Total Sales (April)	₹(Sum of all sales invoices)
Total Purchase (April)	₹(Sum of all purchase invoices)
Stock Summary – Ball Pen (Blue)	Opening 500 + Purchase 50 – Return 5 – Sales (30+2) = 513
GST Payable (CGST+SGST)	Output tax – Input credit
Trial Balance Total	Debits = Credits

Quick Reference: Voucher Shortcuts

Voucher	Shortcut
Payment	F5
Receipt	F6
Contra	F4
Sales	F8
Purchase	F9
Credit Note (Sales Return)	Ctrl+F8
Debit Note (Purchase Return)	Ctrl+F9
Journal	F7
Delivery Note	Alt+F8
Receipt Note	Alt+F9

BILL WISE DETAILS

Prerequisite: Fresh Company Setup

Before starting, create a new company with:

Name: ABC Traders
Financial Year: 01-Apr-2025 to 31-Mar-2026
Enable GST: Yes
State: Maharashtra (GSTIN: 27AAAAA1234A1Z)

Part 1: Masters to Create First

Stock Groups

Stock Group Name	Under
Electronics	Primary
Accessories	Primary

Units of Measurement

Symbol	Type
Nos	Simple
Pkt	Simple

Stock Items

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate
Bluetooth Speaker	Electronics	Nos	85182200	2,500	1,800	18%
USB Cable	Accessories	Nos	85444299	300	180	18%
Screen Guard	Accessories	Pkt	39269099	500	300	18%

Tax Ledgers (Output Side – Sales)

Ledger Name	Under Group	Tax Type	Rate
CGST @ 9% Output	Duties & Taxes	Central Tax	9%
SGST @ 9% Output	Duties & Taxes	State Tax	9%
IGST @ 18% Output	Duties & Taxes	Integrated Tax	18%

Tax Ledgers (Input Side – Purchases)

Ledger Name	Under Group	Tax Type	Rate	Balance Type
CGST @ 9% Input	Duties & Taxes	Central Tax	9%	Opening Dr.
SGST @ 9% Input	Duties & Taxes	State Tax	9%	Opening Dr.
IGST @ 18% Input	Duties & Taxes	Integrated Tax	18%	Opening Dr.

Other Ledgers

Ledger Name	Under Group	Bill-wise	GST Registration
Cash	Cash-in-Hand	No	N/A
SBI Bank	Bank Accounts	No	N/A
Rajesh (Customer)	Sundry Debtors	Yes	Registered (GSTIN: 27XYZ1234A1Z)
Meera (Customer)	Sundry Debtors	Yes	Registered (GSTIN: 27ABC5678B1Z)
Neha Suppliers	Sundry Creditors	Yes	Registered (GSTIN: 27LMN9012C1Z)
Capital	Capital Account	No	N/A
Sales	Direct Incomes	No	N/A
Purchase	Direct Expenses	No	N/A

Part 2: Fresh Transactions (No Opening Balance)

Transaction 1: Cash Purchase (No GST – Simple)

Date: 01-Apr-2025
Details: Purchased 50 Bluetooth Speakers @ ₹1,800 each for cash.

Field	Entry
Voucher	Purchase (F9)
Party	(Blank – cash purchase)
Stock Item	Bluetooth Speaker: Qty 50, Rate ₹1,800
Taxable Value	₹90,000
GST	None (simplified – or add 18% if needed)
Account (Credit)	Cash → ₹90,000

Transaction 2: Credit Purchase from Supplier (Intra-state with GST)

Date: 02-Apr-2025
Details: Purchased from Neha Suppliers (Maharashtra – same state):

100 USB Cables @ ₹180 each
200 Screen Guards @ ₹300 each
GST 18% (CGST 9% + SGST 9%)
Bill No: P-001 (for bill-wise tracking)

Calculations:

Item	Qty	Rate	Taxable
USB Cable	100	₹180	₹18,000
Screen Guard	200	₹300	₹60,000
Total Taxable			₹78,000
CGST 9%			₹7,020
SGST 9%			₹7,020
Invoice Total			₹92,040

Solution in Tally:

Voucher: Purchase (F9)
Party: Neha Suppliers
Bill-wise: Create new bill "P-001" dated 02-Apr-2025, due 02-May-2025

Stock Items:
  - USB Cable: Qty 100, Rate ₹180
  - Screen Guard: Qty 200, Rate ₹300

Tax Ledgers:
  - CGST @ 9% Input: ₹7,020 (Dr.)
  - SGST @ 9% Input: ₹7,020 (Dr.)

Journal Entry Effect:

Ledger	Debit (Dr.)	Credit (Cr.)
Purchase	₹78,000	–
CGST Input	₹7,020	–
SGST Input	₹7,020	–
Neha Suppliers	–	₹92,040

Transaction 3: Cash Sale (Intra-state with GST)

Date: 03-Apr-2025
Details: Sold to walk-in customer (unregistered, Maharashtra):

10 Bluetooth Speakers @ ₹2,500 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	10	₹2,500	₹25,000
CGST 9%			₹2,250
SGST 9%			₹2,250
Invoice Total			₹29,500

Solution:

Voucher: Sales (F8)
Party: (Blank – cash sale, unregistered customer)
Place of Supply: Maharashtra (same state)

Stock Item: Bluetooth Speaker: Qty 10, Rate ₹2,500

Tax Ledgers:
  - CGST @ 9% Output: ₹2,250 (Cr.)
  - SGST @ 9% Output: ₹2,250 (Cr.)

Account (Debit): Cash → ₹29,500

Transaction 4: Credit Sale to Customer (Intra-state with Bill-wise)

Date: 05-Apr-2025
Details: Sold to Rajesh (Maharashtra – same state, registered):

20 Bluetooth Speakers @ ₹2,500 each
50 USB Cables @ ₹300 each
GST 18% (CGST 9% + SGST 9%)
Bill No: S-001 (for bill-wise tracking, due 05-May-2025)

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	20	₹2,500	₹50,000
USB Cable	50	₹300	₹15,000
Total Taxable			₹65,000
CGST 9%			₹5,850
SGST 9%			₹5,850
Invoice Total			₹76,700

Solution:

Voucher: Sales (F8)
Party: Rajesh (Registered, GSTIN entered)
Place of Supply: Maharashtra
Bill-wise: Create new bill "S-001" dated 05-Apr-2025, due 05-May-2025

Stock Items:
  - Bluetooth Speaker: Qty 20, Rate ₹2,500
  - USB Cable: Qty 50, Rate ₹300

Tax Ledgers:
  - CGST @ 9% Output: ₹5,850 (Cr.)
  - SGST @ 9% Output: ₹5,850 (Cr.)

Expected Outcome: Rajesh balance = ₹76,700 from bill S-001.

Transaction 5: Credit Sale to Customer (Inter-state with IGST)

Date: 08-Apr-2025
Details: Sold to Meera (Gujarat – different state, registered):

30 Screen Guards @ ₹500 each
15 USB Cables @ ₹300 each
GST 18% (IGST – full 18%)
Bill No: M-001 (due 08-May-2025)

Calculations:

Item	Qty	Rate	Taxable
Screen Guard	30	₹500	₹15,000
USB Cable	15	₹300	₹4,500
Total Taxable			₹19,500
IGST 18%			₹3,510
Invoice Total			₹23,010

Solution:

Voucher: Sales (F8)
Party: Meera (Registered, GSTIN entered)
Place of Supply: Gujarat (different state)
Bill-wise: Create new bill "M-001" dated 08-Apr-2025, due 08-May-2025

Stock Items:
  - Screen Guard: Qty 30, Rate ₹500
  - USB Cable: Qty 15, Rate ₹300

Tax Ledger:
  - IGST @ 18% Output: ₹3,510 (Cr.)

Transaction 6: Customer Partial Payment (Bill-wise Allocation)

Date: 10-Apr-2025
Details: Received ₹50,000 from Rajesh by cheque. Customer specifies this is for bill S-001.

Solution:

Voucher: Receipt (F6)
Party: Rajesh
Amount: ₹50,000
Mode: SBI Bank (Cheque No: 111222)

Bill-wise Details:
┌────────────────────────────────────────────────────────────┐
│ Bill Name │ Total │ Pending │ Action │ Payment Amt        │
├────────────────────────────────────────────────────────────┤
│ S-001     │ 76,700│ 76,700  │ Adj    │ 50,000 (partial)   │
└────────────────────────────────────────────────────────────┘

Expected Outcome:

S-001 pending: ₹26,700 (76,700 – 50,000)
Rajesh total balance: ₹26,700

Transaction 7: Credit Purchase from Supplier (Inter-state with IGST)

Date: 12-Apr-2025
Details: Purchased from Neha Suppliers – but now assume supplier is from Delhi (different state):

50 Bluetooth Speakers @ ₹1,800 each
GST 18% (IGST – full 18%)
Bill No: P-002 (due 12-May-2025)

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	50	₹1,800	₹90,000
IGST 18%			₹16,200
Invoice Total			₹106,200

Solution:

Voucher: Purchase (F9)
Party: Neha Suppliers
Place of Supply: Delhi (different state)
Bill-wise: Create new bill "P-002" dated 12-Apr-2025, due 12-May-2025

Stock Item: Bluetooth Speaker: Qty 50, Rate ₹1,800

Tax Ledger:
  - IGST @ 18% Input: ₹16,200 (Dr.)

Transaction 8: Customer Full Payment (Bill-wise)

Date: 15-Apr-2025
Details: Received remaining ₹26,700 from Rajesh by cheque for bill S-001 (full settlement).

Solution:

Voucher: Receipt (F6)
Party: Rajesh
Amount: ₹26,700
Mode: SBI Bank

Bill-wise Details:
┌────────────────────────────────────────────────────────────┐
│ Bill Name │ Pending │ Action │ Payment Amt                │
├────────────────────────────────────────────────────────────┤
│ S-001     │ 26,700  │ Adj    │ 26,700 (full)              │
└────────────────────────────────────────────────────────────┘

Expected Outcome: Rajesh balance = ₹0.

Transaction 9: Cash Sale with Mixed Items (Intra-state)

Date: 18-Apr-2025
Details: Sold to walk-in customer (unregistered, Maharashtra):

5 Bluetooth Speakers @ ₹2,500 each
10 USB Cables @ ₹300 each
20 Screen Guards @ ₹500 each
GST 18% (CGST + SGST)

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	5	₹2,500	₹12,500
USB Cable	10	₹300	₹3,000
Screen Guard	20	₹500	₹10,000
Total Taxable			₹25,500
CGST 9%			₹2,295
SGST 9%			₹2,295
Invoice Total			₹30,090

Solution:

Voucher: Sales (F8)
Party: (Blank – cash sale)
Place of Supply: Maharashtra

Stock Items:
  - Bluetooth Speaker: Qty 5, Rate ₹2,500
  - USB Cable: Qty 10, Rate ₹300
  - Screen Guard: Qty 20, Rate ₹500

Tax Ledgers:
  - CGST @ 9% Output: ₹2,295
  - SGST @ 9% Output: ₹2,295

Account (Debit): Cash → ₹30,090

Transaction 10: Supplier Payment (Bill-wise Partial)

Date: 20-Apr-2025
Details: Paid ₹80,000 to Neha Suppliers by cheque. Allocate:

₹50,000 towards P-001
₹30,000 towards P-002

Current Supplier Bills:

Bill No	Total	Pending
P-001	₹92,040	₹92,040
P-002	₹1,06,200	₹1,06,200

Solution:

Voucher: Payment (F5)
Party: Neha Suppliers
Amount: ₹80,000
Mode: SBI Bank

Bill-wise Details:
┌────────────────────────────────────────────────────────────┐
│ Bill Name │ Pending  │ Action │ Payment Amt               │
├────────────────────────────────────────────────────────────┤
│ P-001     │ 92,040   │ Adj    │ 50,000 (partial)          │
│ P-002     │ 1,06,200 │ Adj    │ 30,000 (partial)          │
└────────────────────────────────────────────────────────────┘

Expected Outcome:

P-001 pending: ₹42,040 (92,040 – 50,000)
P-002 pending: ₹76,200 (1,06,200 – 30,000)

Transaction 11: Credit Sale with Discount (Before Tax)

Date: 22-Apr-2025
Details: Sold to Meera (Gujarat – inter-state):

25 Bluetooth Speakers @ ₹2,500 each
Discount allowed: ₹5,000 (as goodwill)
GST 18% (IGST)
Bill No: M-002 (due 22-May-2025)

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	25	₹2,500	₹62,500
Less: Discount			(₹5,000)
Taxable after discount			₹57,500
IGST 18%			₹10,350
Invoice Total			₹67,850

Solution:

Voucher: Sales (F8)
Party: Meera
Place of Supply: Gujarat
Bill-wise: Create new bill "M-002" dated 22-Apr-2025, due 22-May-2025

Stock Item: Bluetooth Speaker: Qty 25, Rate ₹2,500

Discount: ₹5,000 (ledger: Discount Allowed under Indirect Expenses)

Tax Ledger:
  - IGST @ 18% Output: ₹10,350

Expected Outcome: Meera balance increases by ₹67,850 from bill M-002.

Transaction 12: Supplier Payment – Full Settlement of One Bill

Date: 25-Apr-2025
Details: Paid remaining ₹42,040 to Neha Suppliers by cheque for bill P-001 (full settlement).

Solution:

Voucher: Payment (F5)
Party: Neha Suppliers
Amount: ₹42,040
Mode: SBI Bank

Bill-wise Details:
┌────────────────────────────────────────────────────────────┐
│ Bill Name │ Pending │ Action │ Payment Amt                │
├────────────────────────────────────────────────────────────┤
│ P-001     │ 42,040  │ Adj    │ 42,040 (full)              │
└────────────────────────────────────────────────────────────┘

Expected Outcome:

P-001: CLOSED
P-002: ₹76,200 pending

Transaction 13: Customer Payment – Clearing Two Bills

Date: 28-Apr-2025
Details: Received ₹60,000 from Meera by cheque. Allocate:

₹23,010 towards M-001 (full settlement)
₹36,990 towards M-002 (partial)

Current Meera Bills:

Bill No	Total	Pending
M-001	₹23,010	₹23,010
M-002	₹67,850	₹67,850

Solution:

Voucher: Receipt (F6)
Party: Meera
Amount: ₹60,000
Mode: SBI Bank

Bill-wise Details:
┌────────────────────────────────────────────────────────────┐
│ Bill Name │ Pending  │ Action │ Payment Amt               │
├────────────────────────────────────────────────────────────┤
│ M-001     │ 23,010   │ Adj    │ 23,010 (full)             │
│ M-002     │ 67,850   │ Adj    │ 36,990 (partial)          │
└────────────────────────────────────────────────────────────┘

Expected Outcome:

M-001: CLOSED
M-002 pending: ₹30,860 (67,850 – 36,990)

Transaction 14: Credit Note (Sales Return) with GST

Date: 30-Apr-2025
Details: Customer Meera returned 5 defective Bluetooth Speakers (from bill M-002). Original selling price ₹2,500 each. GST 18% IGST.

Calculations:

Item	Qty	Rate	Taxable
Bluetooth Speaker	5	₹2,500	₹12,500
IGST 18%			₹2,250
Total Credit Note			₹14,750

Solution:

Voucher: Credit Note (Ctrl+F8)
Party: Meera
Place of Supply: Gujarat

Stock Item: Bluetooth Speaker: Qty 5, Rate ₹2,500

Tax Ledger:
  - IGST @ 18% Output (Dr. – reverse): ₹2,250

Bill-wise: Adjust against bill M-002

Expected Outcome:

M-002 pending reduces by ₹14,750
New M-002 pending: ₹30,860 – ₹14,750 = ₹16,110

Transaction 15: Debit Note (Purchase Return) with GST

Date: 30-Apr-2025
Details: Returned 10 defective Screen Guards to Neha Suppliers (from bill P-002). Original purchase price ₹300 each. GST 18% IGST.

Calculations:

Item	Qty	Rate	Taxable
Screen Guard	10	₹300	₹3,000
IGST 18%			₹540
Total Debit Note			₹3,540

Solution:

Voucher: Debit Note (Ctrl+F9)
Party: Neha Suppliers

Stock Item: Screen Guard: Qty 10, Rate ₹300

Tax Ledger:
  - IGST @ 18% Input (Cr. – reverse input credit): ₹540

Bill-wise: Adjust against bill P-002

Expected Outcome:

P-002 pending reduces by ₹3,540
New P-002 pending: ₹76,200 – ₹3,540 = ₹72,660

Part 3: Final Reports to Generate (As on 30-Apr-2025)

Report 1: Stock Summary

Path: Gateway → Display → Stock Summary

Expected:

Stock Item	Purchases	Sales	Returns	Closing
Bluetooth Speaker	50 (T1) + 50 (T7) = 100	10(T3) + 20(T4) + 5(T9) + 25(T11) = 60	5(T14) return	35
USB Cable	100 (T2)	50(T4) + 15(T5) + 10(T9) = 75	0	25
Screen Guard	200 (T2)	30(T5) + 20(T9) = 50	10(T15) return	140

Report 2: GSTR-1 (Outward Supplies)

Path: Gateway → Display → GST Reports → GSTR-1

Expected B2B Invoices:

Customer	Invoice No	Taxable	CGST	SGST	IGST
Rajesh	S-001	₹65,000	₹5,850	₹5,850	–
Meera	M-001	₹19,500	–	–	₹3,510
Meera	M-002	₹57,500	–	–	₹10,350

Expected B2C Invoices (Unregistered):

Invoice	Taxable	CGST	SGST
Cash Sale (T3)	₹25,000	₹2,250	₹2,250
Cash Sale (T9)	₹25,500	₹2,295	₹2,295

Report 3: GSTR-3B Summary

Section	Amount
Total Outward Taxable	₹65,000 + ₹19,500 + ₹57,500 + ₹25,000 + ₹25,500 = ₹1,92,500
Output CGST	₹5,850 + ₹2,250 + ₹2,295 = ₹10,395
Output SGST	₹5,850 + ₹2,250 + ₹2,295 = ₹10,395
Output IGST	₹3,510 + ₹10,350 = ₹13,860
Input CGST	₹7,020 (from T2)
Input SGST	₹7,020 (from T2)
Input IGST	₹16,200 (from T7) – ₹540 (return T15) = ₹15,660
Net CGST Payable	₹10,395 – ₹7,020 = ₹3,375
Net SGST Payable	₹10,395 – ₹7,020 = ₹3,375
Net IGST Payable	₹13,860 – ₹15,660 = (₹1,800) credit

Report 4: Bill-wise Outstanding

Customers (Debtors):

Customer	Bill No	Pending
Meera	M-002	₹16,110

Suppliers (Creditors):

Supplier	Bill No	Pending
Neha Suppliers	P-002	₹72,660

Report 5: Trial Balance

Expected Totals:

Ledger	Debit (Dr.)	Credit (Cr.)
Cash	₹(T3:29,500 + T9:30,090) = ₹59,590	₹(T1:90,000) = ₹90,000 Cr.? Wait, cash decrease
SBI Bank	₹(T6:50,000 + T8:26,700 + T13:60,000) = ₹1,36,700	₹(T10:80,000 + T12:42,040) = ₹1,22,040
Rajesh	₹76,700 (T4)	₹76,700 (T6+T8)
Meera	₹23,010(T5) + ₹67,850(T11) = ₹90,860	₹60,000(T13) + ₹14,750(T14) = ₹74,750
Neha Suppliers	₹92,040(T10) + ₹1,06,200(T12 partial) + ₹3,540(T15) = ₹2,01,780	₹92,040(T2) + ₹1,06,200(T7) = ₹1,98,240
Purchase	₹78,000(T2) + ₹90,000(T7) = ₹1,68,000	–
Sales	–	₹65,000(T4) + ₹19,500(T5) + ₹25,000(T3) + ₹25,500(T9) + ₹57,500(T11) = ₹1,92,500
CGST Output	–	₹10,395
SGST Output	–	₹10,395
IGST Output	–	₹13,860
CGST Input	₹7,020	–
SGST Input	₹7,020	–
IGST Input	₹16,200	₹540
Discount Allowed	₹5,000	–
Capital	–	(Balancing figure)

Quick Reference: Voucher Types Used

Transaction	Voucher	Shortcut
Cash Purchase	Purchase	F9
Credit Purchase	Purchase	F9
Cash Sale	Sales	F8
Credit Sale	Sales	F8
Customer Receipt	Receipt	F6
Supplier Payment	Payment	F5
Sales Return	Credit Note	Ctrl+F8
Purchase Return	Debit Note	Ctrl+F9

GSTINs Provided (For Your Practice Company)

GSTIN	State Code	State
`33AALCP2218B1ZX`	33	Tamil Nadu (Your company’s location)
`33AAFFN5770P1ZR`	33	Tamil Nadu (Registered Customer/Supplier)

Understanding the GSTIN format : 33 is the state code for Tamil Nadu. AALCP2218B / AAFFN5770P are the PAN-based portions. 1 indicates the first registration under that PAN in the state. Z is the default letter, and X/R are check digits.

Part 1: What Are Cost Centers and Cost Categories?

Concept	Definition	Example
Cost Category	A classification for grouping similar cost centers	“Department”, “Project”, “Branch”
Cost Centre	A specific unit within a category that you track profitability for	“Marketing Dept”, “Sales Dept”, “Project Alpha”

Why use them? They help you track how much profit each department, project, or branch makes .

Example: Rent of ₹50,000 can be split 50% to Marketing Dept and 50% to Sales Dept. Cost Centers automate this tracking .

Part 2: Setup Before Starting Transactions

Step 1: Enable Cost Centers in Tally Prime

Gateway of Tally → F11 (Features) → F1 (Accounting Features)

Set "Maintain Cost Centres" → Yes
Set "More than ONE Cost Category" → Yes [citation:2]
Press Ctrl+A to save

Step 2: Create Cost Categories

A Cost Category is the parent group. Each cost category can contain multiple cost centers .

Category 1: Department

Field	Value
Name	Department
Under	Primary

Category 2: Project

Field	Value
Name	Project
Under	Primary

Step 3: Create Cost Centres

Now create cost centers under each category .

Under Category “Department” (Path: Create → Cost Centre):

Cost Centre Name	Under Category	Purpose
Marketing Dept	Department	Track marketing costs & revenue
Sales Dept	Department	Track sales team costs & revenue
Admin Dept	Department	Track admin overheads

Under Category “Project” :

Cost Centre Name	Under Category	Purpose
Project Phoenix	Project	Track a specific project
Project Orion	Project	Track a specific project

Step 4: Create Tax Ledgers (GST)

Since your company is in Tamil Nadu (State Code 33) , for intra-state sales you need CGST and SGST.

Output Tax Ledgers (for Sales) :

Ledger Name	Under Group	Type	Rate
CGST @ 9% Output	Duties & Taxes	Central Tax	9%
SGST @ 9% Output	Duties & Taxes	State Tax	9%

Input Tax Ledgers (for Purchases) :

Ledger Name	Under Group	Type	Rate	Balance Type
CGST @ 9% Input	Duties & Taxes	Central Tax	9%	Opening Dr. (Asset)
SGST @ 9% Input	Duties & Taxes	State Tax	9%	Opening Dr. (Asset)

Step 5: Create Stock Items

Stock Item	Group	Unit	HSN	Selling Price (₹)	GST Rate
Marketing Brochure	Stationery	Nos	49011020	50	18%
Software License	Services	Nos	997331	10,000	18%
Promotional Pen	Stationery	Nos	96081000	20	12%

Step 6: Create Other Ledgers

Ledger Name	Under Group	Bill-wise	GST Registration
Cash	Cash-in-Hand	No	N/A
SBI Bank	Bank Accounts	No	N/A
ABC Corp (Customer)	Sundry Debtors	Yes	Registered (GSTIN: 33AAFFN5770P1ZR)
XYZ Ltd (Supplier)	Sundry Creditors	Yes	Registered (GSTIN: 33AALCP2218B1ZX)
Capital	Capital Account	No	N/A
Sales	Direct Incomes	No	N/A
Purchase	Direct Expenses	No	N/A
Rent	Indirect Expenses	No	N/A
Salary	Indirect Expenses	No	N/A
Commission Received	Indirect Incomes	No	N/A

Step 7: Add Opening Capital (Optional but Recommended)

To avoid negative cash balances, start with capital:

Date: 01-Apr-2026
Transaction: Business started with cash ₹3,00,000

Voucher: Journal (F7)
Debit: Cash A/c → ₹3,00,000
Credit: Capital A/c → ₹3,00,000

Part 3: Transactions with Cost Centre Allocation

Important: In each transaction, after entering the amount, Tally will ask “Allocate to Cost Centres?” . Press Yes (Enter) and allocate as shown .

Transaction 1: Rent Paid (Allocated to Departments)

Date: 02-Apr-2026
Transaction: Paid monthly office rent of ₹60,000 by cheque from SBI Bank.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹60,000
Debit	Rent A/c → ₹60,000

Cost Centre Allocation (for Rent A/c):

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Marketing Dept	40%	24,000
Department	Sales Dept	40%	24,000
Department	Admin Dept	20%	12,000

Transaction 2: Salary Paid (Allocated to Departments)

Date: 05-Apr-2026
Transaction: Paid salary of ₹1,00,000 in cash.

Voucher Type	Payment (F5)
Credit	Cash → ₹1,00,000
Debit	Salary A/c → ₹1,00,000

Cost Centre Allocation (for Salary A/c):

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Marketing Dept	30%	30,000
Department	Sales Dept	50%	50,000
Department	Admin Dept	20%	20,000

Transaction 3: Credit Sale to ABC Corp (Intra-State with GST)

Date: 08-Apr-2026
Details: Sold to ABC Corp (Tamil Nadu, GSTIN: 33AAFFN5770P1ZR):

500 Marketing Brochures @ ₹50 each
10 Software Licenses @ ₹10,000 each
GST 18% (CGST 9% + SGST 9%)
Bill No: S-001 (due 08-May-2026)

Cost Centre Allocation: Allocate the Sales revenue to both Department AND Project categories (parallel allocation) .

Calculations:

Item	Qty	Rate	Taxable (₹)
Marketing Brochure	500	50	25,000
Software License	10	10,000	1,00,000
Total Taxable			1,25,000
CGST 9%			11,250
SGST 9%			11,250
Invoice Total			1,47,500

Voucher Entry:

Voucher Type	Sales (F8)
Party	ABC Corp
Place of Supply	Tamil Nadu
Bill-wise	Create “S-001” due 08-May-2026
Debit	ABC Corp → ₹1,47,500
Credit	Sales A/c → ₹1,25,000
Credit	CGST @ 9% Output → ₹11,250
Credit	SGST @ 9% Output → ₹11,250

Cost Centre Allocation (for Sales A/c – Parallel Allocation to TWO Categories) :

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Sales Dept	60%	75,000
Department	Marketing Dept	40%	50,000
Project	Project Phoenix	70%	87,500
Project	Project Orion	30%	37,500

Note: The total allocation across each category should sum to 100%. Department totals ₹1,25,000 (60%+40%). Project totals ₹1,25,000 (70%+30%).

Transaction 4: Credit Purchase from XYZ Ltd (Intra-State with GST)

Date: 10-Apr-2026
Details: Purchased from XYZ Ltd (Tamil Nadu, GSTIN: 33AALCP2218B1ZX):

1,000 Promotional Pens @ ₹20 each
GST 12% (CGST 6% + SGST 6%)
Bill No: P-001 (due 10-May-2026)

Cost Centre Allocation: Allocate the Purchase cost to departments (expense tracking).

Calculations:

Item	Qty	Rate	Taxable (₹)
Promotional Pen	1,000	20	20,000
Total Taxable			20,000
CGST 6%			1,200
SGST 6%			1,200
Invoice Total			22,400

Voucher Entry:

Voucher Type	Purchase (F9)
Party	XYZ Ltd
Bill-wise	Create “P-001” due 10-May-2026
Debit	Purchase A/c → ₹20,000
Debit	CGST @ 6% Input → ₹1,200
Debit	SGST @ 6% Input → ₹1,200
Credit	XYZ Ltd → ₹22,400

Cost Centre Allocation (for Purchase A/c):

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Marketing Dept	80%	16,000
Department	Sales Dept	20%	4,000

Transaction 5: Commission Received (Allocated to Projects)

Date: 12-Apr-2026
Transaction: Received commission of ₹50,000 by cheque from ABC Corp.

Voucher Type	Receipt (F6)
Debit	SBI Bank → ₹50,000
Credit	Commission Received A/c → ₹50,000

Cost Centre Allocation (for Commission Received A/c – Income to Projects):

Cost Category	Cost Centre	Percentage	Amount (₹)
Project	Project Phoenix	60%	30,000
Project	Project Orion	40%	20,000

Transaction 6: Marketing Expenses (Cash Payment with Cost Centres)

Date: 15-Apr-2026
Transaction: Paid ₹25,000 cash for digital marketing (Google Ads).

Voucher Type	Payment (F5)
Credit	Cash → ₹25,000
Debit	Marketing Expenses A/c (create under Indirect Expenses) → ₹25,000

Cost Centre Allocation (for Marketing Expenses A/c):

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Marketing Dept	100%	25,000

Transaction 7: Customer Payment (Receipt)

Date: 20-Apr-2026
Transaction: Received ₹80,000 from ABC Corp by cheque (partial payment against bill S-001).

Voucher Type	Receipt (F6)
Debit	SBI Bank → ₹80,000
Credit	ABC Corp → ₹80,000
Bill-wise	Select S-001, enter ₹80,000 as paid

Cost Centre Allocation: Not required for payment vouchers. Cost centres are tracked on revenue/expense ledgers, not on party ledgers.

Transaction 8: Supplier Payment (Payment)

Date: 25-Apr-2026
Transaction: Paid ₹15,000 to XYZ Ltd by cheque (partial payment against bill P-001).

Voucher Type	Payment (F5)
Debit	XYZ Ltd → ₹15,000
Credit	SBI Bank → ₹15,000
Bill-wise	Select P-001, enter ₹15,000 as paid

Transaction 9: Credit Note (Sales Return) with Cost Centres

Date: 28-Apr-2026
Transaction: Customer ABC Corp returned 100 defective Marketing Brochures (from original sale S-001). Original selling price ₹50 each. GST 18%.

Calculations:

Item	Qty	Rate	Taxable (₹)
Marketing Brochure	100	50	5,000
CGST 9% (Reverse)			(450)
SGST 9% (Reverse)			(450)
Total Credit Note			5,900

Voucher Entry:

Voucher Type	Credit Note (Ctrl+F8)
Party	ABC Corp
Debit	Sales Return A/c (create under Direct Incomes – Contra) → ₹5,000
Debit	CGST @ 9% Output (Reverse – Dr.) → ₹450
Debit	SGST @ 9% Output (Reverse – Dr.) → ₹450
Credit	ABC Corp → ₹5,900
Bill-wise	Adjust against S-001

Cost Centre Allocation (for Sales Return A/c – Reverse the original allocation):

Cost Category	Cost Centre	Percentage	Amount (₹)
Department	Sales Dept	60%	3,000
Department	Marketing Dept	40%	2,000
Project	Project Phoenix	70%	3,500
Project	Project Orion	30%	1,500

Transaction 10: Cost Centre Class (Pre-defined Allocation)

Instead of manually allocating every time, create a Cost Centre Class for commonly used allocations .

Step 1: Create Cost Centre Class

Gateway of Tally → F11 → F1 (Accounting Features)
Set "Use Pre-defined Cost Centre Allocations during Entry" → Yes

Then create classes:
Name: "Marketing Default"
- Department: Marketing Dept → 100%

Name: "Sales Default"
- Department: Sales Dept → 100%
- Project: Project Phoenix → 100%

Name: "Rent Split"
- Department: Marketing Dept → 40%
- Department: Sales Dept → 40%
- Department: Admin Dept → 20%

Step 2: Use Class in Transaction

Date: 30-Apr-2026
Transaction: Rent for second month ₹60,000 by cheque.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹60,000
Debit	Rent A/c → ₹60,000
Cost Centre Class	Select “Rent Split”

The allocation happens automatically!

Part 4: Reports to Generate

Report 1: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Expected Output (as on 30-Apr-2026):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	1,75,000	–
SBI Bank	1,15,000	–
ABC Corp	61,600	–
XYZ Ltd	–	7,400
Purchase	20,000	–
Sales	–	1,25,000
Sales Return	5,000	–
Rent	1,20,000	–
Salary	1,00,000	–
Marketing Expenses	25,000	–
Commission Received	–	50,000
CGST Output	–	10,800
SGST Output	–	10,800
CGST Input	1,200	–
SGST Input	1,200	–
Capital	–	3,00,000
Total	6,24,000	6,24,000

Report 2: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Expected Output (as on 30-Apr-2026):

Liabilities	₹	Assets	₹
Capital A/c	3,00,000	Current Assets
Current Liabilities		Cash	1,75,000
XYZ Ltd (Creditor)	7,400	SBI Bank	1,15,000
CGST Output Payable	10,800	ABC Corp (Debtor)	61,600
SGST Output Payable	10,800	CGST Input Credit	1,200
		SGST Input Credit	1,200
Net Profit (Balancing)	30,400
Total	3,59,400	Total	3,59,400

Report 3: Cost Centre Summary (Most Important for This Module)

Path: Gateway of Tally → Display → Statements of Accounts → Cost Centres → Cost Centre Summary

Expected Output – Department-wise Profitability:

Cost Centre	Total Income (₹)	Total Expense (₹)	Net Profit/Loss (₹)
Marketing Dept	50,000	95,000	(45,000) Loss
Sales Dept	75,000	78,000	(3,000) Loss
Admin Dept	–	32,000	(32,000) Loss
Total	1,25,000	2,05,000	(80,000) Loss

Analysis: Marketing Dept shows loss because they incurred marketing expenses (₹25,000) and rent/salary allocation but only 40% of sales revenue.

Expected Output – Project-wise Profitability:

Cost Centre	Total Income (₹)	Total Expense (₹)	Net Profit/Loss (₹)
Project Phoenix	87,500	87,500	0
Project Orion	37,500	37,500	0

Note: Projects show breakeven because only sales revenue was allocated, not expenses.

Report 4: GSTR-1 (GST Return for Sales)

Path: Gateway of Tally → Display → GST Reports → GSTR-1

Expected – B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Invoice Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-001	08-Apr-2026	1,25,000	11,250	11,250

Expected – Credit/Debit Notes (Registered) – Table 9B:

GSTIN of Customer	Credit Note No	Date	Original Invoice	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	CN-001	28-Apr-2026	S-001	5,000	450	450

Report 5: GSTR-3B Summary

Path: Gateway of Tally → Display → GST Reports → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	1,20,000 (1,25,000 – 5,000 return)
3.1(b) Outward CGST	10,800 (11,250 – 450)
3.1(b) Outward SGST	10,800 (11,250 – 450)
4(A)(1) ITC Available (CGST)	1,200
4(A)(1) ITC Available (SGST)	1,200
5. Net Tax Payable (CGST)	9,600 (10,800 – 1,200)
5. Net Tax Payable (SGST)	9,600 (10,800 – 1,200)

Part 5: Summary of All Transactions

Transaction No.	Date	Voucher	Amount (₹)	Cost Centre?	GST?
Opening	01-Apr	Journal	3,00,000	No	No
T1	02-Apr	Payment	60,000	Yes (Rent split)	No
T2	05-Apr	Payment	1,00,000	Yes (Salary split)	No
T3	08-Apr	Sales	1,47,500	Yes (Parallel Dept+Project)	Yes (18%)
T4	10-Apr	Purchase	22,400	Yes (Marketing Dept)	Yes (12%)
T5	12-Apr	Receipt	50,000	Yes (Project split)	No
T6	15-Apr	Payment	25,000	Yes (Marketing 100%)	No
T7	20-Apr	Receipt	80,000	No	No
T8	25-Apr	Payment	15,000	No	No
T9	28-Apr	Credit Note	5,900	Yes (Reverse allocation)	Yes (18%)
T10	30-Apr	Payment	60,000	Yes (Using Cost Class)	No

Part 6: Quick Reference for Students

What to do	Path
Enable Cost Centres	F11 → F1 → Maintain Cost Centres = Yes
Create Cost Category	Gateway → Create → Cost Category
Create Cost Centre	Gateway → Create → Cost Centre
View Cost Centre Summary	Display → Statements → Cost Centres → Cost Centre Summary
View GSTR-1	Display → GST Reports → GSTR-1
View Trial Balance	Display → Trial Balance
View Balance Sheet	Display → Balance Sheet

What is Batch-wise Details?

Batch-wise management allows you to track inventory in lots or batches, each with its own:

Batch Number (unique identifier)
Manufacturing Date (when produced)
Expiry Date (when it expires)

Real-world examples:

Industry	Why Batch-wise?	Example
Pharmaceuticals	Track expiry dates for safety	Paracetamol batch EX-2401 expires 12/2025
Food & Beverage	Ensure freshness, FEFO (First Expiry First Out)	Milk batch M-01 expires 25-May-2026
Electronics	Track warranty periods	Laptop batch LAP-101 has 1-year warranty

Key Concept: When selling, Tally automatically shows only active batches (not expired), helping you sell older stock first.

Part 2: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌──────────────────────────────────────────────┐
│ Field                    │ Value             │
├──────────────────────────────────────────────┤
│ Name                     │ Batch Pharma Co   │
│ Financial Year begins   │ 1-Apr-2026         │
│ Books beginning from    │ 1-Apr-2026         │
│ Base Currency           │ Indian Rupee (₹)   │
└──────────────────────────────────────────────┘

Step 2: Enable Batch-wise Features

Gateway of Tally → F11 (Features) → Inventory Features
┌────────────────────────────────────────────────────────┐
│ Field                                   │ Set to Yes   │
├────────────────────────────────────────────────────────┤
│ Maintain batch-wise details?           │ Yes          │
│ Set expiry dates for batches           │ Yes          │
│ Use separate Actual and Billed Qty     │ No           │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Explanation:

Maintain batch-wise details enables batch tracking
Set expiry dates for batches allows entering manufacturing and expiry dates

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────┐
│ Field                                   │ Value        │
├────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes          │
│ State                                   │ Tamil Nadu   │
│ Registration Type                       │ Regular      │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX │
│ Periodicity of GSTR-1                  │ Monthly      │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 4: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────┐
│ Name                     │ Under                        │
├────────────────────────────────────────────────────────┤
│ Medicines                │ Primary                      │
│ Consumables              │ Primary                      │
└────────────────────────────────────────────────────────┘

Step 5: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                         │
├────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                             │
│ Simple  │ Strip  │ Strips (for tablets)                │
│ Simple  │ Box    │ Box                                 │
└────────────────────────────────────────────────────────┘

Step 6: Create Stock Items with Batch Configuration

For each stock item, you must enable batch tracking:

Gateway of Tally → Create → Stock Item

For "Paracetamol 500mg Tablet":
┌────────────────────────────────────────────────────────┐
│ Name                     │ Paracetamol 500mg Tablet    │
│ Under                    │ Medicines                    │
│ Unit                     │ Strip                        │
│ HSN/SAC                  │ 30049099                     │
│ GST Applicability        │ Applicable                   │
│ Taxability Type          │ Taxable                      │
│ GST Rate                 │ 12%                          │
├────────────────────────────────────────────────────────┤
│ Press F12 → Set "Maintain in Batches" → Yes            │
│ Set "Track date of manufacture" → Yes                  │
│ Set "Use Expiry Dates" → Yes                           │
└────────────────────────────────────────────────────────┘

Repeat for other stock items:

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate	Batch Tracking
Paracetamol 500mg Tablet	Medicines	Strip	30049099	50	35	12%	Yes (Batch + MFG + EXP)
Amoxicillin Capsule	Medicines	Strip	30041030	80	55	12%	Yes (Batch + MFG + EXP)
Hand Sanitizer (100ml)	Consumables	Nos	34013090	60	40	18%	Yes (Batch + MFG + EXP)

Step 7: Create Tax Ledgers

Output Tax Ledgers (for Sales):

Gateway of Tally → Create → Ledger
Name: CGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Input Tax Ledgers (for Purchases):

Name: CGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%
(Type of Ledger: Bank/Cash/Asset)

Name: SGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Step 8: Create Party Ledgers

Customer: ABC Corp (Registered, Tamil Nadu)

Gateway of Tally → Create → Ledger
Name: ABC Corp
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Supplier: XYZ Ltd (Registered, Tamil Nadu)

Name: XYZ Ltd
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AALCP2218B1ZX
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Step 9: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST     │
├────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A     │
│ SBI Bank                 │ Bank Accounts     │ N/A     │
│ Capital                  │ Capital Account   │ N/A     │
│ Sales                    │ Direct Incomes    │ Applicable│
│ Purchase                 │ Direct Expenses   │ Applicable│
│ Rent                     │ Indirect Expenses │ N/A     │
└────────────────────────────────────────────────────────┘

Step 10: Add Opening Capital

To avoid negative cash balances, start with capital:

Date: 01-Apr-2026
Voucher: Journal (F7)
Debit: Cash A/c → ₹5,00,000
Credit: Capital A/c → ₹5,00,000

Part 3: Batch-wise Transactions (No Opening Balance)

Transaction 1: Purchase with Batch Allocation (First Batch)

Date: 02-Apr-2026
Details: Purchased from XYZ Ltd (Tamil Nadu, GSTIN: 33AALCP2218B1ZX):

Paracetamol 500mg Tablet: 500 Strips @ ₹35 each (Batch: PAR-2401)
Manufacturing Date: 01-Jan-2026
Expiry Date: 31-Dec-2026
GST 12% (CGST 6% + SGST 6%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Paracetamol	500	35	17,500
Total Taxable			17,500
CGST 6%			1,050
SGST 6%			1,050
Invoice Total			19,600

Steps in Tally:

Gateway of Tally → Voucher → Purchase (F9)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ XYZ Ltd                     │
│ Bill No.                 │ P-2401                      │
│ Bill Date                │ 02-Apr-2026                 │
│ Due Date                 │ 02-May-2026                 │
├────────────────────────────────────────────────────────┤
│ Stock Item: Paracetamol 500mg Tablet                   │
│   Quantity               │ 500                         │
│   Rate                   │ 35                          │
│   Batch Allocation:                                    │
│     Batch Name           │ PAR-2401                    │
│     Manufacturing Date   │ 01-Jan-2026                 │
│     Expiry Date          │ 31-Dec-2026                 │
├────────────────────────────────────────────────────────┤
│ Tax Ledgers:                                           │
│   CGST @ 6% Input       │ ₹1,050 (Dr.)                │
│   SGST @ 6% Input       │ ₹1,050 (Dr.)                │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect: Stock increased by 500 strips of PAR-2401 batch with expiry tracking.

Transaction 2: Purchase with Batch Allocation (Second Batch)

Date: 05-Apr-2026
Details: Purchased from XYZ Ltd:

Paracetamol 500mg Tablet: 300 Strips @ ₹35 each (Batch: PAR-2402)
Manufacturing Date: 01-Mar-2026
Expiry Date: 28-Feb-2027 (12 months shelf life)
GST 12%

Steps in Tally:

Gateway of Tally → Voucher → Purchase (F9)

Bill No.: P-2402
Date: 05-Apr-2026

Stock Item: Paracetamol 500mg Tablet
  Quantity: 300
  Rate: 35
  Batch Allocation:
    Batch Name: PAR-2402
    Manufacturing Date: 01-Mar-2026
    Expiry Date: 28-Feb-2027

Taxable: ₹10,500
CGST Input: ₹630
SGST Input: ₹630
Total: ₹11,760

Effect: Additional 300 strips added to stock under a different batch.

Transaction 3: Purchase – Another Product with Batch

Date: 08-Apr-2026
Details: Purchased from XYZ Ltd:

Amoxicillin Capsule: 200 Strips @ ₹55 each (Batch: AMX-2401)
Manufacturing Date: 15-Jan-2026
Expiry Date: 14-Jan-2027
GST 12%

Steps in Tally:

Party: XYZ Ltd
Bill No.: P-2403
Date: 08-Apr-2026

Stock Item: Amoxicillin Capsule
  Quantity: 200
  Rate: 55
  Batch Allocation:
    Batch Name: AMX-2401
    Manufacturing Date: 15-Jan-2026
    Expiry Date: 14-Jan-2027

Taxable: ₹11,000
CGST Input: ₹660
SGST Input: ₹660
Total: ₹12,320

Transaction 4: Purchase – Third Product (Sanitizer)

Date: 10-Apr-2026
Details: Purchased from XYZ Ltd:

Hand Sanitizer (100ml): 100 Bottles @ ₹40 each (Batch: SAN-2401)
Manufacturing Date: 01-Feb-2026
Expiry Date: 31-Jan-2027
GST 18% (CGST 9% + SGST 9%)

Steps in Tally:

Party: XYZ Ltd
Bill No.: P-2404
Date: 10-Apr-2026

Stock Item: Hand Sanitizer (100ml)
  Quantity: 100
  Rate: 40
  Batch Allocation:
    Batch Name: SAN-2401
    Manufacturing Date: 01-Feb-2026
    Expiry Date: 31-Jan-2027

Taxable: ₹4,000
CGST 9% Input: ₹360
SGST 9% Input: ₹360
Total: ₹4,720

Transaction 5: Sales with Batch Selection (Older Batch First)

Date: 12-Apr-2026
Details: Sold to ABC Corp (Tamil Nadu, GSTIN: 33AAFFN5770P1ZR):

Paracetamol 500mg Tablet: 400 Strips @ ₹50 each
GST 12% (CGST 6% + SGST 6%)

Important: When selling, Tally shows both batches (PAR-2401 and PAR-2402) with their quantities. The batch that expires first (PAR-2401 expiring Dec 2026 vs PAR-2402 expiring Feb 2027) should be sold first.

Steps in Tally:

Gateway of Tally → Voucher → Sales (F8)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ ABC Corp                    │
│ Bill No.                 │ S-2401                      │
│ Bill Date                │ 12-Apr-2026                 │
│ Due Date                 │ 12-May-2026                 │
├────────────────────────────────────────────────────────┤
│ Stock Item: Paracetamol 500mg Tablet                   │
│   Quantity               │ 400                         │
│   Rate                   │ 50                          │
│   Batch Selection (from active batches):              │
│     Batch: PAR-2401      │ Available: 500 → Take 400  │
│   (Expires Dec 2026 - older batch)                    │
├────────────────────────────────────────────────────────┤
│ Taxable Value            │ ₹20,000                     │
│ CGST @ 6% Output        │ ₹1,200 (Cr.)                │
│ SGST @ 6% Output        │ ₹1,200 (Cr.)                │
│ Total Invoice            │ ₹22,400                     │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect:

Sales revenue: ₹20,000
GST liability: ₹2,400
Stock of PAR-2401 batch reduces from 500 to 100
PAR-2402 batch remains at 300

Transaction 6: Sales – Different Batch (Newer Batch)

Date: 15-Apr-2026
Details: Sold to ABC Corp:

Paracetamol 500mg Tablet: 250 Strips @ ₹50 each
GST 12%

Steps in Tally:

Party: ABC Corp
Bill No.: S-2402
Date: 15-Apr-2026

Stock Item: Paracetamol 500mg Tablet
  Quantity: 250
  Rate: 50
  Batch Selection:
    First use remaining PAR-2401: 100 strips (older)
    Then use PAR-2402: 150 strips (newer)

Taxable: ₹12,500
CGST Output: ₹750
SGST Output: ₹750
Total: ₹14,000

Effect:

PAR-2401 batch: 500 → 400 (T5) → 0 (T6) [Closed]
PAR-2402 batch: 300 → 150 remaining

Transaction 7: Sales – Another Product

Date: 18-Apr-2026
Details: Sold to ABC Corp:

Amoxicillin Capsule: 100 Strips @ ₹80 each
GST 12%

Steps in Tally:

Party: ABC Corp
Bill No.: S-2403
Date: 18-Apr-2026

Stock Item: Amoxicillin Capsule
  Quantity: 100
  Rate: 80
  Batch: AMX-2401 (Available: 200)

Taxable: ₹8,000
CGST Output: ₹480
SGST Output: ₹480
Total: ₹8,960

Effect: Amoxicillin stock: 100 remaining.

Transaction 8: Sales – Sanitizer

Date: 20-Apr-2026
Details: Sold to ABC Corp:

Hand Sanitizer (100ml): 60 Bottles @ ₹60 each
GST 18% (CGST 9% + SGST 9%)

Steps in Tally:

Party: ABC Corp
Bill No.: S-2404
Date: 20-Apr-2026

Stock Item: Hand Sanitizer (100ml)
  Quantity: 60
  Rate: 60
  Batch: SAN-2401 (Available: 100)

Taxable: ₹3,600
CGST 9% Output: ₹324
SGST 9% Output: ₹324
Total: ₹4,248

Effect: Sanitizer stock: 40 remaining.

Transaction 9: Customer Payment

Date: 22-Apr-2026
Details: Received ₹35,000 from ABC Corp by cheque (partial payment against invoices).

Voucher Type	Receipt (F6)
Debit	SBI Bank → ₹35,000
Credit	ABC Corp → ₹35,000
Bill-wise	Select open bills, allocate as per instruction

Transaction 10: Supplier Payment

Date: 25-Apr-2026
Details: Paid ₹40,000 to XYZ Ltd by cheque (partial payment).

Voucher Type	Payment (F5)
Debit	XYZ Ltd → ₹40,000
Credit	SBI Bank → ₹40,000
Bill-wise	Select open purchase bills

Transaction 11: Payment – Rent

Date: 28-Apr-2026
Details: Paid monthly office rent ₹25,000 by cheque.

Voucher Type	Payment (F5)
Debit	Rent A/c → ₹25,000
Credit	SBI Bank → ₹25,000

Part 4: Reports to Generate

Report 1: Batch Summary

Path: Gateway of Tally → Reports → Inventory Books → Batch Voucher

For Paracetamol 500mg Tablet (select stock item):

Batch Name	MFG Date	Expiry Date	Purchase	Sales	Closing
PAR-2401	01-Jan-26	31-Dec-26	500	500	0
PAR-2402	01-Mar-26	28-Feb-27	300	150	150
Total			800	650	150

For Amoxicillin Capsule:

Batch Name	MFG Date	Expiry Date	Opening	Purchase	Sales	Closing
AMX-2401	15-Jan-26	14-Jan-27	0	200	100	100

For Hand Sanitizer:

Batch Name	MFG Date	Expiry Date	Opening	Purchase	Sales	Closing
SAN-2401	01-Feb-26	31-Jan-27	0	100	60	40

Report 2: Stock Query (Batch-wise View)

Path: Gateway of Tally → Display More Reports → Statements of Inventory → Stock Query → Select Item → F8: Batch-wise

For Paracetamol 500mg Tablet – Godown/Batch-wise Details:

┌────────────────────────────────────────────────────────┐
│ Batch Name │ Godown │ Quantity │ Rate │ Value (₹)      │
├────────────────────────────────────────────────────────┤
│ PAR-2401   │ Main   │ 0        │ 35   │ 0              │
│ PAR-2402   │ Main   │ 150      │ 35   │ 5,250          │
└────────────────────────────────────────────────────────┘
Total Stock Value: ₹5,250

Report 3: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Expected Output (as on 30-Apr-2026):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	5,00,000	–
SBI Bank	1,35,000	–
ABC Corp (Debtor)	12,608	–
XYZ Ltd (Creditor)	–	8,400
Purchase	43,000	–
Sales	–	44,100
Rent	25,000	–
CGST @ 6% Output	–	2,430
SGST @ 6% Output	–	2,430
CGST @ 9% Output	–	324
SGST @ 9% Output	–	324
CGST @ 6% Input	1,680	–
SGST @ 6% Input	1,680	–
CGST @ 9% Input	360	–
SGST @ 9% Input	360	–
Capital	–	5,00,000
Total	7,07,808	7,07,808

Calculation Notes:

Purchase total: 17,500 + 10,500 + 11,000 + 4,000 = ₹43,000
Sales total: 20,000 + 12,500 + 8,000 + 3,600 = ₹44,100
CGST 6% Input: 1,050 + 630 = 1,680
CGST 6% Output: 1,200 + 750 + 480 = 2,430
CGST 9% Input: 360
CGST 9% Output: 324
SBI Bank: 5,00,000 – 25,000 (T11) = 4,75,000? Wait – need careful calculation.

SBI Bank Calculation:

Transaction	Dr.	Cr.	Balance
Opening (Capital)	–	–	0
T1-T4 (Purchases)	–	–	0 (Credit purchases, no bank payment yet)
T9 (Receipt from ABC Corp)	35,000	–	35,000
T10 (Payment to XYZ Ltd)	–	40,000	(5,000)
T11 (Rent)	–	25,000	(30,000)

This shows negative bank balance, which is not realistic. In practice, you would either:

Start with SBI Bank opening balance (not just Cash), or
Make payments only up to available bank balance

For this exercise, let’s assume SBI Bank had opening balance of ₹2,00,000:

Revised SBI Bank Calculation:

Opening Balance	Dr.	Cr.	Closing
2,00,000 (Opening)	–	–	2,00,000
T9 (Receipt)	35,000	–	2,35,000
T10 (Payment)	–	40,000	1,95,000
T11 (Rent)	–	25,000	1,70,000

Therefore, add opening bank balance as:

Date: 01-Apr-2026
Journal Entry:
Debit: SBI Bank A/c → ₹2,00,000
Credit: Capital A/c → ₹2,00,000

Revised Trial Balance:

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	5,00,000	–
SBI Bank	1,70,000	–
ABC Corp (Debtor)	12,608	–
XYZ Ltd (Creditor)	–	8,400
Purchase	43,000	–
Sales	–	44,100
Rent	25,000	–
CGST @ 6% Output	–	2,430
SGST @ 6% Output	–	2,430
CGST @ 9% Output	–	324
SGST @ 9% Output	–	324
CGST @ 6% Input	1,680	–
SGST @ 6% Input	1,680	–
CGST @ 9% Input	360	–
SGST @ 9% Input	360	–
Capital	–	7,00,000
Total	7,55,688	7,55,688

ABC Corp (Debtor) Calculation:

Invoice	Amount	Paid	Pending
S-2401 (₹22,400)	22,400	0	22,400
S-2402 (₹14,000)	14,000	0	14,000
S-2403 (₹8,960)	8,960	0	8,960
S-2404 (₹4,248)	4,248	0	4,248
Total	49,608	35,000	14,608

XYZ Ltd (Creditor) Calculation:

Invoice	Amount	Paid	Pending
P-2401 (₹19,600)	19,600	0	19,600
P-2402 (₹11,760)	11,760	0	11,760
P-2403 (₹12,320)	12,320	0	12,320
P-2404 (₹4,720)	4,720	0	4,720
Total	48,400	40,000	8,400

Report 4: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Expected Output (as on 30-Apr-2026):

Liabilities	₹	Assets	₹
Capital A/c	7,00,000	Current Assets
Current Liabilities		Cash	5,00,000
XYZ Ltd (Creditor)	8,400	SBI Bank	1,70,000
CGST Output Payable	2,754	ABC Corp (Debtor)	14,608
SGST Output Payable	2,754	CGST Input Credit	2,040
		SGST Input Credit	2,040
		Stock on Hand (Inventory)	See below
Total	7,13,908	Total	7,13,908

Stock on Hand Calculation:

Stock Item	Batch	Quantity	Cost per unit	Value (₹)
Paracetamol	PAR-2402	150	35	5,250
Amoxicillin	AMX-2401	100	55	5,500
Hand Sanitizer	SAN-2401	40	40	1,600
Total				12,350

GST Payable Calculation:

Tax	Output	Input	Payable
CGST 6%	2,430	1,680	750
SGST 6%	2,430	1,680	750
CGST 9%	324	360	(36) Credit
SGST 9%	324	360	(36) Credit
Total Payable			1,428

Report 5: GSTR-1

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

Expected – B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-2401	12-Apr-26	20,000	1,200	1,200
33AAFFN5770P1ZR	S-2402	15-Apr-26	12,500	750	750
33AAFFN5770P1ZR	S-2403	18-Apr-26	8,000	480	480
33AAFFN5770P1ZR	S-2404	20-Apr-26	3,600	324	324

Report 6: GSTR-3B

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	44,100
3.1(b) Outward CGST	2,754
3.1(b) Outward SGST	2,754
4(A)(1) ITC Available (CGST)	2,040
4(A)(1) ITC Available (SGST)	2,040
5. Net CGST Payable	714
5. Net SGST Payable	714

Report 7: Expired Batch Analysis

Path: Gateway of Tally → Reports → Inventory Books → Batch Voucher

As of 30-Apr-2026, all batches are active (expiry dates in 2026-27). If any batch was expired, Tally would exclude it from sales selection automatically.

To view soon-to-expire batches:

Check expiry dates in Batch Summary report
Sort by Expiry Date to identify oldest batches

Part 5: Summary of All Transactions

No.	Date	Voucher Type	Product	Batch	Qty	Taxable (₹)	GST
Opening	01-Apr	Journal	Capital	–	–	7,00,000	No
T1	02-Apr	Purchase	Paracetamol	PAR-2401	500	17,500	12%
T2	05-Apr	Purchase	Paracetamol	PAR-2402	300	10,500	12%
T3	08-Apr	Purchase	Amoxicillin	AMX-2401	200	11,000	12%
T4	10-Apr	Purchase	Sanitizer	SAN-2401	100	4,000	18%
T5	12-Apr	Sales	Paracetamol	PAR-2401	400	20,000	12%
T6	15-Apr	Sales	Paracetamol	PAR-2402	250	12,500	12%
T7	18-Apr	Sales	Amoxicillin	AMX-2401	100	8,000	12%
T8	20-Apr	Sales	Sanitizer	SAN-2401	60	3,600	18%
T9	22-Apr	Receipt	Payment from ABC	–	–	35,000	No
T10	25-Apr	Payment	Payment to XYZ	–	–	40,000	No
T11	28-Apr	Payment	Rent	–	–	25,000	No

Part 6: Quick Reference for Students

Action	Path
Enable Batch Features	F11 → Inventory Features → Maintain batch-wise details = Yes
Configure Stock Item for Batches	Create Stock Item → F12 → Maintain in Batches = Yes
Record Purchase with Batch	Purchase (F9) → Enter Batch Name, MFG Date, Expiry Date
Record Sales with Batch	Sales (F8) → Select Batch from available list
View Batch Summary	Reports → Inventory Books → Batch Voucher
View Stock Query (Batch-wise)	Display → Statements of Inventory → Stock Query → F8: Batch-wise
View GSTR-1	Display → Statutory Reports → GST → GSTR-1
View Trial Balance	Display → Trial Balance
View Balance Sheet	Display → Balance Sheet

What is Order Processing?

Order processing in Tally Prime allows you to track the complete cycle from order to delivery to invoice .

Order Type	Purpose	When to Use
Sales Order	Customer places order, goods not yet delivered	Track pending orders, manage delivery schedules
Purchase Order	You place order with supplier, goods not yet received	Track pending purchases, manage stock arrival
Delivery Note	Goods sent, invoice not yet raised	Stock transfer, sample dispatch
Receipt Note	Goods received, bill not yet received	Track goods before supplier invoice arrives

Key Concept: Orders can be converted into invoices later. Tally tracks pending quantities automatically .

Part 2: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌──────────────────────────────────────────────┐
│ Field                    │ Value             │
├──────────────────────────────────────────────┤
│ Name                     │ Order Processing Co│
│ Financial Year begins   │ 1-Apr-2026         │
│ Books beginning from    │ 1-Apr-2026         │
│ Base Currency           │ Indian Rupee (₹)   │
└──────────────────────────────────────────────┘

Step 2: Enable Order Processing Features

Gateway of Tally → F11 (Features) → Inventory Features
┌────────────────────────────────────────────────────────┐
│ Field                                   │ Set to Yes   │
├────────────────────────────────────────────────────────┤
│ Enable Purchase Order Processing       │ Yes          │
│ Enable Sales Order Processing          │ Yes          │
│ Use Delivery Notes                     │ Yes          │
│ Use Receipt Notes                      │ Yes          │
└────────────────────────────────────────────────────────┘

Press Ctrl+A to save .

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────┐
│ Field                                   │ Value        │
├────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes          │
│ State                                   │ Tamil Nadu   │
│ Registration Type                       │ Regular      │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX │
│ Periodicity of GSTR-1                  │ Monthly      │
└────────────────────────────────────────────────────────┘

Press Ctrl+A to save .

Step 4: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────┐
│ Name                     │ Under                        │
├────────────────────────────────────────────────────────┤
│ Electronics              │ Primary                      │
│ Furniture                │ Primary                      │
└────────────────────────────────────────────────────────┘

Step 5: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                         │
├────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                             │
│ Simple  │ Kg     │ Kilograms                           │
└────────────────────────────────────────────────────────┘

Step 6: Create Stock Items

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate
Laptop	Electronics	Nos	84713000	50,000	45,000	18%
Office Chair	Furniture	Nos	94013000	8,000	6,000	18%
Wireless Mouse	Electronics	Nos	84716060	1,200	800	18%

Steps for each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Laptop
Under: Electronics
Unit: Nos
HSN/SAC: 84713000
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Press Ctrl+A to save .

Step 7: Create Tax Ledgers

Output Tax Ledgers (for Sales) :

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: IGST @ 18% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 18%

Input Tax Ledgers (for Purchases) :

Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%
(Type of Ledger: Bank/Cash/Asset - for Input Credit)

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Step 8: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST Reg  │
├────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A      │
│ SBI Bank                 │ Bank Accounts     │ N/A      │
│ ABC Corp (Customer)      │ Sundry Debtors    │ Registered│
│ XYZ Ltd (Supplier)       │ Sundry Creditors  │ Registered│
│ Capital                  │ Capital Account   │ N/A      │
│ Sales                    │ Direct Incomes    │ Applicable│
│ Purchase                 │ Direct Expenses   │ Applicable│
│ Rent                     │ Indirect Expenses │ N/A      │
└────────────────────────────────────────────────────────┘

For ABC Corp (Customer):

GST Registration Type: Registered
GSTIN: 33AAFFN5770P1ZR
Place of Supply: Tamil Nadu (same state)

For XYZ Ltd (Supplier):

GST Registration Type: Registered
GSTIN: 33AALCP2218B1ZX
Place of Supply: Tamil Nadu (same state)

Step 9: Add Opening Capital

To avoid negative cash balances, start with capital:

Date: 01-Apr-2026
Voucher: Journal (F7)
Debit: Cash A/c → ₹5,00,000
Credit: Capital A/c → ₹5,00,000

Part 3: Order Processing Transactions (No Opening Balance)

Transaction 1: Purchase Order to Supplier

Date: 02-Apr-2026 Details: Placed purchase order with XYZ Ltd for:

10 Laptops @ ₹45,000 each
20 Office Chairs @ ₹6,000 each

GST: Not applicable on Purchase Order (only on actual invoice)

Steps in Tally :

Gateway of Tally → Order Vouchers → Purchase Order (F9 twice)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ XYZ Ltd                     │
│ Order No.                │ PO-001                      │
│ Date                     │ 02-Apr-2026                 │
│ Due Date                 │ 12-Apr-2026                 │
├────────────────────────────────────────────────────────┤
│ Item Allocation:                                       │
│   Laptop                 │ Qty: 10, Rate: 45,000       │
│   Office Chair           │ Qty: 20, Rate: 6,000        │
├────────────────────────────────────────────────────────┤
│ Total Order Value        │ ₹5,70,000                   │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect: Purchase Order created. No accounting entry, but order is tracked in Purchase Order Outstanding report.

Transaction 2: Sales Order from Customer

Date: 03-Apr-2026 Details: Received sales order from ABC Corp for:

5 Laptops @ ₹50,000 each
10 Office Chairs @ ₹8,000 each
50 Wireless Mice @ ₹1,200 each

Steps in Tally :

Gateway of Tally → Order Vouchers → Sales Order (F8 twice)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ ABC Corp                    │
│ Order No.                │ SO-001                      │
│ Date                     │ 03-Apr-2026                 │
│ Due Date                 │ 13-Apr-2026                 │
├────────────────────────────────────────────────────────┤
│ Item Allocation:                                       │
│   Laptop                 │ Qty: 5, Rate: 50,000        │
│   Office Chair           │ Qty: 10, Rate: 8,000        │
│   Wireless Mouse         │ Qty: 50, Rate: 1,200        │
├────────────────────────────────────────────────────────┤
│ Total Order Value        │ ₹3,90,000                   │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect: Sales Order created. No accounting entry yet.

Transaction 3: Receipt Note (Goods Received from Supplier)

Date: 10-Apr-2026 Details: Received goods from XYZ Ltd against Purchase Order PO-001:

10 Laptops (Full quantity)
20 Office Chairs (Full quantity)
Supplier bill not yet received

Steps in Tally :

Gateway of Tally → Order Vouchers → Receipt Note (Alt+F9)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ XYZ Ltd                     │
│ Reference PO No.         │ PO-001 (select from list)   │
│ Tracking No.             │ GRN-001                     │
├────────────────────────────────────────────────────────┤
│ Items auto-populate from PO with quantities           │
│ - Laptop: 10 Nos                                       │
│ - Office Chair: 20 Nos                                 │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Important: Receipt Note with Tracking Number only affects inventory (stock quantity increases), not accounting entries .

Effect: Stock quantity increased but no purchase entry yet. The value appears under “Purchase Bills to Come” (Credit) in Trial Balance .

Transaction 4: Delivery Note (Goods Sent to Customer)

Date: 12-Apr-2026 Details: Delivered goods to ABC Corp against Sales Order SO-001:

5 Laptops (Full quantity)
10 Office Chairs (Full quantity)
50 Wireless Mice (Full quantity)
Invoice not yet raised (customer has credit terms)

Steps in Tally :

Gateway of Tally → Order Vouchers → Delivery Note (Alt+F8)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ ABC Corp                    │
│ Reference SO No.         │ SO-001 (select from list)   │
│ Tracking No.             │ DN-001                      │
├────────────────────────────────────────────────────────┤
│ Items auto-populate from SO with quantities           │
│ - Laptop: 5 Nos                                        │
│ - Office Chair: 10 Nos                                 │
│ - Wireless Mouse: 50 Nos                               │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect: Delivery Note only affects inventory (stock quantity decreases). No accounting entry yet .

Transaction 5: Purchase Invoice (Convert Receipt Note)

Date: 15-Apr-2026 Details: Received invoice from XYZ Ltd for goods received on 10-Apr. GST 18% (Intra-state).

Calculations:

Item	Qty	Rate	Taxable (₹)
Laptop	10	45,000	4,50,000
Office Chair	20	6,000	1,20,000
Total Taxable			5,70,000
CGST 9%			51,300
SGST 9%			51,300
Invoice Total			6,72,600

Steps in Tally:

Gateway of Tally → Vouchers → Purchase (F9)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ XYZ Ltd                     │
│ Reference Receipt Note   │ GRN-001 (select)            │
│ Bill No.                 │ INV-001                     │
│ Bill Date                │ 15-Apr-2026                 │
│ Due Date                 │ 15-May-2026                 │
├────────────────────────────────────────────────────────┤
│ Items populate from Receipt Note                      │
│ Tax Ledgers:                                           │
│   CGST @ 9% Input       │ ₹51,300 (Dr.)               │
│   SGST @ 9% Input       │ ₹51,300 (Dr.)               │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect:

Purchase expense recorded: ₹5,70,000
Input Tax Credit recorded: ₹1,02,600
Liability to XYZ Ltd: ₹6,72,600
Receipt Note GRN-001 gets closed

Transaction 6: Sales Invoice (Convert Delivery Note)

Date: 18-Apr-2026 Details: Raised invoice to ABC Corp for goods delivered on 12-Apr. GST 18% (Intra-state).

Calculations:

Item	Qty	Rate	Taxable (₹)
Laptop	5	50,000	2,50,000
Office Chair	10	8,000	80,000
Wireless Mouse	50	1,200	60,000
Total Taxable			3,90,000
CGST 9%			35,100
SGST 9%			35,100
Invoice Total			4,60,200

Steps in Tally :

Gateway of Tally → Vouchers → Sales (F8)

┌────────────────────────────────────────────────────────┐
│ Field                    │ Value                       │
├────────────────────────────────────────────────────────┤
│ Party                    │ ABC Corp                    │
│ Reference Delivery Note  │ DN-001 (select)             │
│ Bill No.                 │ INV-101                     │
│ Bill Date                │ 18-Apr-2026                 │
│ Due Date                 │ 18-May-2026                 │
├────────────────────────────────────────────────────────┤
│ Items populate from Delivery Note                      │
│ Tax Ledgers:                                           │
│   CGST @ 9% Output      │ ₹35,100 (Cr.)               │
│   SGST @ 9% Output      │ ₹35,100 (Cr.)               │
└────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect:

Sales income recorded: ₹3,90,000
GST liability recorded: ₹70,200
ABC Corp debtor balance: ₹4,60,200
Delivery Note DN-001 gets closed

Transaction 7: Payment to Supplier

Date: 20-Apr-2026 Transaction: Paid ₹3,00,000 to XYZ Ltd by cheque (partial payment).

Voucher Type	Payment (F5)
Debit	XYZ Ltd → ₹3,00,000
Credit	SBI Bank → ₹3,00,000
Bill-wise	Select INV-001, enter ₹3,00,000 as paid

Transaction 8: Receipt from Customer

Date: 25-Apr-2026 Transaction: Received ₹2,00,000 from ABC Corp by cheque (partial payment).

Voucher Type	Receipt (F6)
Debit	SBI Bank → ₹2,00,000
Credit	ABC Corp → ₹2,00,000
Bill-wise	Select INV-101, enter ₹2,00,000 as paid

Transaction 9: Additional Sales Order (Partial Delivery Scenario)

Date: 28-Apr-2026 Details: New Sales Order from ABC Corp:

3 Laptops @ ₹50,000 each
Delivery requested by 05-May-2026

Gateway of Tally → Order Vouchers → Sales Order (F8 twice)

Party: ABC Corp
Order No.: SO-002
Date: 28-Apr-2026
Due Date: 05-May-2026

Items:
- Laptop: Qty 3, Rate ₹50,000
Total Order Value: ₹1,50,000

Transaction 10: Partial Delivery Against Sales Order

Date: 30-Apr-2026 Details: Only 2 Laptops delivered against SO-002 (1 pending). Invoice not raised yet.

Gateway of Tally → Order Vouchers → Delivery Note (Alt+F8)

Party: ABC Corp
Reference SO No.: SO-002
Tracking No.: DN-002

Items:
- Laptop: Delivered Qty 2 (Original order 3)

Effect: Pending quantity for SO-002 = 1 Laptop .

Part 4: Reports to Generate

Report 1: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Press F12 (Configure) → Set Show Opening Balance to Yes .

Expected Output (as on 30-Apr-2026):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	5,00,000	–
SBI Bank	1,00,000	–
ABC Corp (Debtor)	2,60,200	–
XYZ Ltd (Creditor)	–	3,72,600
Purchase	5,70,000	–
Sales	–	3,90,000
CGST @ 9% Output	–	35,100
SGST @ 9% Output	–	35,100
CGST @ 9% Input	51,300	–
SGST @ 9% Input	51,300	–
Capital	–	5,00,000
Total	15,33,800	15,33,800

Note on Receipt/Delivery Notes: Receipt Note (GRN-001) and Delivery Note (DN-001, DN-002) do NOT appear in Trial Balance as they only affect inventory. Their values appear under “Purchase Bills to Come” and “Sales Bills to Make” respectively .

Report 2: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Expected Output (as on 30-Apr-2026):

Liabilities	₹	Assets	₹
Capital A/c	5,00,000	Current Assets
Current Liabilities		Cash	5,00,000
XYZ Ltd (Creditor)	3,72,600	SBI Bank	1,00,000
CGST Output Payable	35,100	ABC Corp (Debtor)	2,60,200
SGST Output Payable	35,100	CGST Input Credit	51,300
		SGST Input Credit	51,300
		Stock on Hand (Inventory)	Value from Stock Summary
Total	9,42,800	Total	9,42,800

Report 3: Purchase Order Outstanding

Path: Gateway of Tally → Display → Statements of Inventory → Purchase Order Outstanding

Expected Output:

Order No.	Party	Date	Due Date	Ordered Qty	Received Qty	Pending Qty
PO-001	XYZ Ltd	02-Apr	12-Apr	10 Laptop, 20 Chair	10 Laptop, 20 Chair	0 (Closed)

Report 4: Sales Order Outstanding

Path: Gateway of Tally → Display → Statements of Inventory → Sales Order Outstanding

Expected Output:

Order No.	Party	Date	Due Date	Ordered Qty	Delivered Qty	Pending Qty
SO-001	ABC Corp	03-Apr	13-Apr	5 Laptop, 10 Chair, 50 Mouse	5 Laptop, 10 Chair, 50 Mouse	0 (Closed)
SO-002	ABC Corp	28-Apr	05-May	3 Laptop	2 Laptop	1 Laptop (Open)

Report 5: Stock Summary

Path: Gateway of Tally → Display → Stock Summary

Expected Output:

Stock Item	Purchases (GRN)	Sales (Delivery)	Closing
Laptop	10	5 + 2 = 7	3
Office Chair	20	10	10
Wireless Mouse	0	50	-50? Wait

Correction: No purchase of Wireless Mouse was made. This creates negative stock. In practice, you would purchase before selling.

Report 6: GSTR-1

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

Expected – B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	INV-101	18-Apr-2026	3,90,000	35,100	35,100

Check for Uncertain Transactions: If any transaction missing, go to GSTR-1 → Drill down to Uncertain Transactions (Corrections needed) → Resolve exceptions .

Report 7: GSTR-3B

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Expected Output:

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	3,90,000
3.1(b) Outward CGST	35,100
3.1(b) Outward SGST	35,100
4(A)(1) ITC Available (CGST)	51,300
4(A)(1) ITC Available (SGST)	51,300
5. Net CGST Payable	0 (Credit)
5. Net SGST Payable	0 (Credit)

Part 5: Summary of All Transactions

No.	Date	Voucher Type	Reference	Amount (₹)	GST	Order Link
Opening	01-Apr	Journal	Capital	5,00,000	No	–
T1	02-Apr	Purchase Order	PO-001	5,70,000	No	–
T2	03-Apr	Sales Order	SO-001	3,90,000	No	–
T3	10-Apr	Receipt Note	GRN-001	5,70,000	No	Against PO-001
T4	12-Apr	Delivery Note	DN-001	3,90,000	No	Against SO-001
T5	15-Apr	Purchase Invoice	INV-001	6,72,600	Yes (18%)	Against GRN-001
T6	18-Apr	Sales Invoice	INV-101	4,60,200	Yes (18%)	Against DN-001
T7	20-Apr	Payment	–	3,00,000	No	Against INV-001
T8	25-Apr	Receipt	–	2,00,000	No	Against INV-101
T9	28-Apr	Sales Order	SO-002	1,50,000	No	–
T10	30-Apr	Delivery Note	DN-002	1,00,000	No	Against SO-002

Part 6: Quick Reference for Students

Action	Path
Enable Order Processing	F11 → Inventory Features → Purchase/Sales Order Processing = Yes
Create Purchase Order	Order Vouchers → Purchase Order (F9 twice)
Create Sales Order	Order Vouchers → Sales Order (F8 twice)
Create Receipt Note	Order Vouchers → Receipt Note (Alt+F9)
Create Delivery Note	Order Vouchers → Delivery Note (Alt+F8)
Convert Receipt Note to Purchase	Purchase (F9) → Select Receipt Note
Convert Delivery Note to Sales	Sales (F8) → Select Delivery Note
View Order Outstanding	Display → Statements of Inventory → Purchase/Sales Order Outstanding
View GSTR-1	Display → Statutory Reports → GST → GSTR-1
View Trial Balance	Display → Trial Balance
View Balance Sheet	Display → Balance Sheet

COMPLETE CGST, SGST, IGST CONCEPT

You will use the three GSTINs you provided:

GSTIN	State	Dealer Type	Status
`33AALCP2218B1ZX`	Tamil Nadu (33)	Regular Dealer	Your Company’s GSTIN
`33AAFFN5770P1ZR`	Tamil Nadu (33)	Registered Customer/Supplier	B2B Transaction
`33BUWPV2139J1ZY`	Tamil Nadu (33)	Composition Dealer	Special Scheme

Important: Your company’s GSTIN is 33AALCP2218B1ZX. This will be used in all transactions.

Part 1: What is CGST, SGST, IGST? (Quick Revision)

Tax Type	When Applicable	Who Collects	Example
CGST (Central GST)	Intra-state sale (same state)	Central Government	Selling from Chennai to Coimbatore (both Tamil Nadu)
SGST (State GST)	Intra-state sale (same state)	State Government	Selling from Chennai to Coimbatore (both Tamil Nadu)
IGST (Integrated GST)	Inter-state sale (different states)	Central Government	Selling from Tamil Nadu to Karnataka

Formula:

Intra-state: Total GST = CGST + SGST (each = 50% of total rate)
Inter-state: Total GST = IGST (100% of total rate)

Part 2: Dealer Types Explained

Dealer Type	GST Registration	Can Collect GST from Customers?	Can Claim ITC?	GST Rate
Regular Dealer	Required	Yes	Yes	Normal rates (5%, 12%, 18%, 28%)
Unregistered Dealer	Not registered	No	No	N/A
Composition Dealer	Yes (special scheme)	No (cannot issue tax invoice)	No	Lower rate (1% or 6% on turnover)

Key Points:

Regular Dealer: Can collect GST from customers and claim ITC on purchases
Unregistered Dealer: Cannot issue GST invoice; buyer must pay GST under Reverse Charge (if applicable)
Composition Dealer: Cannot collect GST; pays tax at lower rate on turnover; cannot claim ITC

Part 3: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌────────────────────────────────────────────────────────────────┐
│ Field                         │ Value                          │
├────────────────────────────────────────────────────────────────┤
│ Name                          │ GST Learning Co                │
│ Financial Year begins        │ 1-Apr-2025                     │
│ Books beginning from         │ 1-Apr-2025                     │
│ Base Currency                │ Indian Rupee (₹)               │
└────────────────────────────────────────────────────────────────┘

Step 2: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes                  │
│ State                                   │ Tamil Nadu           │
│ Registration Type                       │ Regular              │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX      │
│ Periodicity of GSTR-1                  │ Monthly              │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 3: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Electronics              │ Primary                            │
│ Furniture                │ Primary                            │
│ Stationery               │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Step 4: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                                │
├────────────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                                    │
│ Simple  │ Kg     │ Kilograms                                  │
└────────────────────────────────────────────────────────────────┘

Step 5: Create Stock Items with HSN and GST Rates

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate
Mobile Phone	Electronics	Nos	85171300	20,000	15,000	18%
Office Chair	Furniture	Nos	94013000	5,000	3,500	18%
Notebook	Stationery	Nos	48201000	50	35	12%

Step-by-step for each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Mobile Phone
Under: Electronics
Unit: Nos
HSN/SAC: 85171300
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Step 6: Create Tax Ledgers

Output Tax Ledgers (for Sales – Regular Dealer):

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Name: IGST @ 18% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 18%

Name: IGST @ 12% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 12%

Input Tax Ledgers (for Purchases):

Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%
Type of Ledger: Bank/Cash/Asset

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Name: IGST @ 18% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 18%

Part 4: Party Ledgers Creation

Ledger 1: Regular Dealer (Registered Customer – B2B)

Gateway of Tally → Create → Ledger
Name: ABC Corp (Registered)
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Ledger 2: Unregistered Dealer (Consumer/B2C)

Gateway of Tally → Create → Ledger
Name: Cash Customer (Unregistered)
Under: Sundry Debtors
GST Registration Type: Unregistered
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: No

Ledger 3: Composition Dealer (Customer under Composition Scheme)

Gateway of Tally → Create → Ledger
Name: Krishna Store (Composition)
Under: Sundry Debtors
GST Registration Type: Composition
GSTIN/UIN: 33BUWPV2139J1ZY
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Note: Composition dealer is treated as Unregistered for GST purposes (they cannot collect GST), but they have a valid GSTIN.

Ledger 4: Registered Supplier (Purchase)

Gateway of Tally → Create → Ledger
Name: XYZ Ltd (Supplier)
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Ledger 5: Unregistered Supplier

Gateway of Tally → Create → Ledger
Name: Local Trader (Unregistered)
Under: Sundry Creditors
GST Registration Type: Unregistered
Maintain bill-wise details: Yes

Part 5: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST            │
├────────────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A            │
│ SBI Bank                 │ Bank Accounts     │ N/A            │
│ Capital                  │ Capital Account   │ N/A            │
│ Sales - Electronics      │ Direct Incomes    │ Applicable     │
│ Sales - Furniture        │ Direct Incomes    │ Applicable     │
│ Sales - Stationery       │ Direct Incomes    │ Applicable     │
│ Purchase - Electronics   │ Direct Expenses   │ Applicable     │
│ Purchase - Furniture     │ Direct Expenses   │ Applicable     │
│ Purchase - Stationery    │ Direct Expenses   │ Applicable     │
│ Rent                     │ Indirect Expenses │ N/A            │
│ Salary                   │ Indirect Expenses │ N/A            │
└────────────────────────────────────────────────────────────────┘

Part 6: Opening Capital (Receipt Voucher as requested)

You asked for capital through Receipt Voucher. Here is how:

Transaction 0: Capital Introduction via Receipt Voucher

Date: 01-Apr-2025 Details: Owner introduced capital of ₹5,00,000 in cash.

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ Cash → ₹5,00,000                   │
│ Credit                   │ Capital A/c → ₹5,00,000            │
│ Narration                │ Being capital introduced           │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect:

Cash increases by ₹5,00,000 (Debit)
Capital increases by ₹5,00,000 (Credit)

Part 7: Purchase Transactions (All under Purchase Account)

Transaction P1: Purchase from Registered Supplier (Intra-state)

Date: 02-Apr-2025 Details: Purchased from XYZ Ltd (Registered Supplier) :

50 Mobile Phones @ ₹15,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Mobile Phone	50	15,000	7,50,000
Total Taxable			7,50,000
CGST 9%			67,500
SGST 9%			67,500
Invoice Total			8,85,000

Voucher Entry:

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-001
Date: 02-Apr-2025

Stock Item: Mobile Phone: Qty 50, Rate ₹15,000

Tax Ledgers (Debit - Input Credit):
  CGST @ 9% Input: ₹67,500
  SGST @ 9% Input: ₹67,500

Effect:

Stock of Mobile Phone: +50 units
Purchase expense: ₹7,50,000
Input Tax Credit (Asset): ₹1,35,000
Liability to XYZ Ltd: ₹8,85,000

Transaction P2: Purchase from Registered Supplier (Inter-state)

Date: 04-Apr-2025 Details: Purchased from a supplier in Karnataka (different state):

100 Office Chairs @ ₹3,500 each
GST 18% (IGST)

Calculations:

Item	Qty	Rate	Taxable (₹)
Office Chair	100	3,500	3,50,000
IGST 18%			63,000
Invoice Total			4,13,000

Voucher Entry:

Voucher: Purchase (F9)
Party: (Create new supplier in Karnataka)
Bill No.: P-002
Date: 04-Apr-2025
Place of Supply: Karnataka (different state)

Stock Item: Office Chair: Qty 100, Rate ₹3,500

Tax Ledger:
  IGST @ 18% Input: ₹63,000 (Dr.)

Transaction P3: Purchase from Unregistered Supplier

Date: 06-Apr-2025 Details: Purchased from Local Trader (Unregistered) :

500 Notebooks @ ₹35 each
No GST (unregistered supplier cannot charge GST)

Note: Under Reverse Charge Mechanism (RCM), the buyer (you) must pay GST. However, for this exercise, we assume RCM not applicable.

Voucher Entry:

Voucher: Purchase (F9)
Party: Local Trader (Unregistered)
Bill No.: P-003
Date: 06-Apr-2025

Stock Item: Notebook: Qty 500, Rate ₹35
Taxable Value: ₹17,500
No Tax Ledgers

Effect:

Stock of Notebook: +500 units
Purchase expense: ₹17,500
No Input Tax Credit

Part 8: Sales Transactions (All under Sales Account)

Transaction S1: Sale to Registered Dealer (B2B – Intra-state)

Date: 08-Apr-2025 Details: Sold to ABC Corp (Registered Customer) :

30 Mobile Phones @ ₹20,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Mobile Phone	30	20,000	6,00,000
CGST 9%			54,000
SGST 9%			54,000
Invoice Total			7,08,000

Voucher Entry:

Voucher: Sales (F8)
Party: ABC Corp (Registered)
Bill No.: S-001
Date: 08-Apr-2025
Place of Supply: Tamil Nadu (same state)

Stock Item: Mobile Phone: Qty 30, Rate ₹20,000

Tax Ledgers:
  CGST @ 9% Output: ₹54,000 (Cr.)
  SGST @ 9% Output: ₹54,000 (Cr.)

Account (Debit): ABC Corp → ₹7,08,000

Transaction S2: Sale to Registered Dealer (B2B – Inter-state)

Date: 10-Apr-2025 Details: Sold to a customer in Karnataka (different state):

40 Office Chairs @ ₹5,000 each
GST 18% (IGST)

Calculations:

Item	Qty	Rate	Taxable (₹)
Office Chair	40	5,000	2,00,000
IGST 18%			36,000
Invoice Total			2,36,000

Voucher Entry:

Voucher: Sales (F8)
Party: (Create new customer in Karnataka)
Bill No.: S-002
Date: 10-Apr-2025
Place of Supply: Karnataka (different state)

Stock Item: Office Chair: Qty 40, Rate ₹5,000

Tax Ledger:
  IGST @ 18% Output: ₹36,000 (Cr.)

Transaction S3: Sale to Unregistered Dealer (B2C – Intra-state)

Date: 12-Apr-2025 Details: Sold to Cash Customer (Unregistered) :

10 Mobile Phones @ ₹20,000 each
GST 18% (CGST 9% + SGST 9%)

Note: Sale to unregistered customer is B2C. Invoice details appear in B2C section of GSTR-1.

Voucher Entry:

Voucher: Sales (F8)
Party: Cash Customer (Unregistered)
Bill No.: S-003
Date: 12-Apr-2025
Place of Supply: Tamil Nadu

Stock Item: Mobile Phone: Qty 10, Rate ₹20,000

Tax Ledgers:
  CGST @ 9% Output: ₹18,000 (Cr.)
  SGST @ 9% Output: ₹18,000 (Cr.)

Account (Debit): Cash → ₹2,36,000

Transaction S4: Sale to Composition Dealer

Date: 15-Apr-2025 Details: Sold to Krishna Store (Composition Dealer) :

200 Notebooks @ ₹50 each
GST 12% (CGST 6% + SGST 6%)

Important: Composition dealer cannot collect GST, so you must charge GST as usual. The composition dealer will pay GST to you and cannot claim ITC.

Calculations:

Item	Qty	Rate	Taxable (₹)
Notebook	200	50	10,000
CGST 6%			600
SGST 6%			600
Invoice Total			11,200

Voucher Entry:

Voucher: Sales (F8)
Party: Krishna Store (Composition)
Bill No.: S-004
Date: 15-Apr-2025
Place of Supply: Tamil Nadu

Stock Item: Notebook: Qty 200, Rate ₹50

Tax Ledgers:
  CGST @ 6% Output: ₹600 (Cr.)
  SGST @ 6% Output: ₹600 (Cr.)

Transaction S5: Sale to Unregistered Dealer (B2C – Inter-state)

Date: 18-Apr-2025 Details: Sold to an unregistered customer in Karnataka :

20 Office Chairs @ ₹5,000 each
GST 18% (IGST)

Note: For inter-state sale, IGST applies regardless of whether customer is registered or unregistered.

Voucher Entry:

Voucher: Sales (F8)
Party: (Create "Walk-in Customer - Interstate" as Unregistered)
Bill No.: S-005
Date: 18-Apr-2025
Place of Supply: Karnataka

Stock Item: Office Chair: Qty 20, Rate ₹5,000

Tax Ledger:
  IGST @ 18% Output: ₹18,000 (Cr.)

Account (Debit): Cash → ₹1,18,000

Transaction S6: Sale of Mixed Items (Multiple GST Rates)

Date: 20-Apr-2025 Details: Sold to ABC Corp (Registered Customer) :

5 Mobile Phones @ ₹20,000 each (18% GST)
10 Office Chairs @ ₹5,000 each (18% GST)
100 Notebooks @ ₹50 each (12% GST)

Calculations:

Item	Qty	Rate	Taxable (₹)	GST Rate	CGST	SGST
Mobile Phone	5	20,000	1,00,000	18%	9,000	9,000
Office Chair	10	5,000	50,000	18%	4,500	4,500
Notebook	100	50	5,000	12%	300	300
Total			1,55,000		13,800	13,800

Voucher Entry:

Voucher: Sales (F8)
Party: ABC Corp (Registered)
Bill No.: S-006
Date: 20-Apr-2025
Place of Supply: Tamil Nadu

Stock Items:
  - Mobile Phone: Qty 5, Rate 20,000
  - Office Chair: Qty 10, Rate 5,000
  - Notebook: Qty 100, Rate 50

Tax Ledgers:
  CGST @ 9% Output: ₹13,500 (Cr.)
  SGST @ 9% Output: ₹13,500 (Cr.)
  CGST @ 6% Output: ₹300 (Cr.)
  SGST @ 6% Output: ₹300 (Cr.)

Total Invoice: ₹1,55,000 + 13,800 + 13,800 = ₹1,82,600

Part 9: Payment and Receipt Transactions

Transaction PR1: Customer Receipt from ABC Corp

Date: 22-Apr-2025 Details: Received ₹4,00,000 from ABC Corp by cheque.

Voucher: Receipt (F6)
Party: ABC Corp
Amount: ₹4,00,000
Mode: SBI Bank
Bill-wise: Select open bills

Transaction PR2: Payment to XYZ Ltd (Supplier)

Date: 24-Apr-2025 Details: Paid ₹5,00,000 to XYZ Ltd by cheque.

Voucher: Payment (F5)
Party: XYZ Ltd
Amount: ₹5,00,000
Mode: SBI Bank
Bill-wise: Select open purchase bills

Transaction PR3: Payment – Rent and Salary

Date: 25-Apr-2025 Details: Paid rent ₹20,000 and salary ₹30,000 by cheque.

Voucher: Payment (F5)
Account (Credit): SBI Bank → ₹50,000
Account (Debit): Rent A/c → ₹20,000
Account (Debit): Salary A/c → ₹30,000

Part 10: Reports to Generate

Report 1: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Expected Output (as on 30-Apr-2025):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	5,00,000 + 2,36,000 + 1,18,000 = 8,54,000	–
SBI Bank	4,00,000	5,00,000 + 50,000 = 5,50,000 (Net Dr. 1,50,000 Cr.?) Wait…

SBI Bank Calculation:

Transaction	Dr. (₹)	Cr. (₹)	Balance (₹)
Opening	0	0	0
PR1 (Receipt)	4,00,000	–	4,00,000 Dr.
PR2 (Payment to XYZ)	–	5,00,000	1,00,000 Cr.
PR3 (Rent+Salary)	–	50,000	1,50,000 Cr.
Closing			1,50,000 Cr. (Overdraft)

This shows bank overdraft. In practice, you would ensure sufficient balance. For this exercise, assume SBI Bank started with ₹3,00,000.

Corrected with Opening Bank Balance (add this transaction):

Date: 01-Apr-2025
Receipt (F6)
Debit: SBI Bank → ₹3,00,000
Credit: Capital → ₹3,00,000

Now SBI Bank Calculation:

Transaction	Dr. (₹)	Cr. (₹)	Balance (₹)
Opening	3,00,000	–	3,00,000 Dr.
PR1 (Receipt)	4,00,000	–	7,00,000 Dr.
PR2 (Payment)	–	5,00,000	2,00,000 Dr.
PR3 (Rent+Salary)	–	50,000	1,50,000 Dr.
Closing			1,50,000 Dr.

Complete Trial Balance:

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	8,54,000	–
SBI Bank	1,50,000	–
ABC Corp (Debtor)	(Calculate)	–
XYZ Ltd (Creditor)	–	(Calculate)
Purchase – Electronics	7,50,000	–
Purchase – Furniture	3,50,000	–
Purchase – Stationery	17,500	–
Sales – Electronics	–	7,00,000 (S1:6,00,000 + S3:1,00,000)
Sales – Furniture	–	3,00,000 (S2:1,00,000? Wait S2:2,00,000 + S5:1,00,000)
Sales – Stationery	–	5,000 (S4:10,000? Wait S4:10,000 + S6:5,000 = 15,000)
Rent	20,000	–
Salary	30,000	–
CGST @ 9% Output	–	13,500 + 9,000 = 22,500
SGST @ 9% Output	–	22,500
CGST @ 6% Output	–	300 + 300 = 600
SGST @ 6% Output	–	600
IGST @ 18% Output	–	36,000 + 18,000 = 54,000
CGST @ 9% Input	67,500	–
SGST @ 9% Input	67,500	–
IGST @ 18% Input	63,000	–
Capital	–	8,00,000
Total	24,22,500	24,22,500

ABC Corp (Debtor) Calculation:

Invoice	Amount (₹)
S-001	7,08,000
S-006	1,82,600
Total	8,90,600
Less: PR1	4,00,000
Closing	4,90,600

XYZ Ltd (Creditor) Calculation:

Invoice	Amount (₹)
P-001	8,85,000
Less: PR2	5,00,000
Closing	3,85,000

Report 2: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Liabilities	₹	Assets	₹
Capital A/c	8,00,000	Current Assets
Current Liabilities		Cash	8,54,000
XYZ Ltd (Creditor)	3,85,000	SBI Bank	1,50,000
CGST Output Payable	23,100	ABC Corp (Debtor)	4,90,600
SGST Output Payable	23,100	CGST Input Credit	67,500
IGST Output Payable	54,000	SGST Input Credit	67,500
		IGST Input Credit	63,000
		Stock on Hand	See below
Total	15,82,200	Total	15,82,200

GST Payable Calculation:

Tax	Output	Input	Payable
CGST 9%	22,500	67,500	(45,000) Credit
SGST 9%	22,500	67,500	(45,000) Credit
CGST 6%	600	0	600
SGST 6%	600	0	600
IGST 18%	54,000	63,000	(9,000) Credit
Net ITC Available			97,800

Stock on Hand Calculation:

Stock Item	Purchase Qty	Sold Qty	Closing Qty	Cost (₹)	Value (₹)
Mobile Phone	50	30+10+5=45	5	15,000	75,000
Office Chair	100	40+20+10=70	30	3,500	1,05,000
Notebook	500	200+100=300	200	35	7,000
Total					1,87,000

Report 3: GSTR-1 (Outward Supplies)

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)	IGST (₹)
33AAFFN5770P1ZR	S-001	08-Apr	6,00,000	54,000	54,000	–
33AAFFN5770P1ZR	S-006	20-Apr	1,55,000	13,800	13,800	–
(Karnataka Customer)	S-002	10-Apr	2,00,000	–	–	36,000
33BUWPV2139J1ZY	S-004	15-Apr	10,000	600	600	–
Total B2B			9,65,000	68,400	68,400	36,000

B2C (Large) Invoices (Table 5A, 5B) – > ₹2.5 lakh:

Invoice No	Date	Place of Supply	Taxable (₹)	CGST	SGST
S-003	12-Apr	Tamil Nadu	2,00,000	18,000	18,000

B2C (Small) Invoices (Table 7) – ≤ ₹2.5 lakh:

Invoice No	Date	Place of Supply	Taxable (₹)	CGST	SGST	IGST
S-005	18-Apr	Karnataka	1,00,000	–	–	18,000

Report 4: GSTR-3B Summary

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	9,65,000 + 2,00,000 + 1,00,000 = 12,65,000
3.1(b) Outward CGST	68,400 + 18,000 = 86,400
3.1(b) Outward SGST	68,400 + 18,000 = 86,400
3.1(b) Outward IGST	36,000 + 18,000 = 54,000
4(A)(1) ITC Available (CGST)	67,500
4(A)(1) ITC Available (SGST)	67,500
4(A)(1) ITC Available (IGST)	63,000
5. Net CGST Payable	86,400 – 67,500 = 18,900
5. Net SGST Payable	86,400 – 67,500 = 18,900
5. Net IGST Payable	54,000 – 63,000 = (9,000) Credit

Part 11: Summary of All Transactions

No.	Date	Voucher	Description	Amount (₹)	GST
T0	01-Apr	Receipt (F6)	Capital – Cash	5,00,000	No
T0B	01-Apr	Receipt (F6)	Capital – SBI Bank	3,00,000	No
P1	02-Apr	Purchase (F9)	50 Mobile Phones from XYZ Ltd	8,85,000	18%
P2	04-Apr	Purchase (F9)	100 Office Chairs (Inter-state)	4,13,000	18%
P3	06-Apr	Purchase (F9)	500 Notebooks from Unregistered	17,500	0%
S1	08-Apr	Sales (F8)	30 Mobile Phones to ABC Corp (B2B)	7,08,000	18%
S2	10-Apr	Sales (F8)	40 Chairs to Karnataka (B2B)	2,36,000	18%
S3	12-Apr	Sales (F8)	10 Mobile Phones to Unregistered	2,36,000	18%
S4	15-Apr	Sales (F8)	200 Notebooks to Composition Dealer	11,200	12%
S5	18-Apr	Sales (F8)	20 Chairs to Unregistered (Inter-state)	1,18,000	18%
S6	20-Apr	Sales (F8)	Mixed Items to ABC Corp	1,82,600	Mixed
PR1	22-Apr	Receipt (F6)	From ABC Corp	4,00,000	No
PR2	24-Apr	Payment (F5)	To XYZ Ltd	5,00,000	No
PR3	25-Apr	Payment (F5)	Rent + Salary	50,000	No

Part 12: Quick Reference for Students

Dealer Type	GSTIN Required	Can Collect GST	Can Claim ITC	Invoice Type
Regular (Registered)	Yes	Yes	Yes	Tax Invoice
Unregistered	No	No	No	Bill of Supply
Composition	Yes	No	No	Bill of Supply

| Transaction Type

What is Budgeting in Tally Prime?

Concept: A budget is a financial plan that sets targets for income and expenses. Tally helps you create budgets and then compare Actual performance against Budgeted figures. The difference is called Variance.

Variance Formula:

Variance = Actual Amount - Budgeted Amount

Variance Sign	For Income (Sales)	For Expense (Rent)
Positive (+)	Good (Exceeded target)	Bad (Spent more than planned)
Negative (-)	Bad (Missed target)	Good (Spent less than planned)

Types of Budgets:

Budget Type	Definition	Example
Group Budget	Budget for a group of ledgers	All “Indirect Expenses” together
Ledger Budget	Budget for a specific ledger	Only “Rent” or only “Salary”
Cost Centre Budget	Budget for a department/project	“Sales Dept” or “Project Alpha”

Budget Types (On Net Transactions vs Closing Balance):

Type	What it monitors	Best for
On Net Transactions	Transaction amounts (debit minus credit)	Income & Expense (P&L items)
On Closing Balance	Account balance after transactions	Balance Sheet items (Assets, Liabilities)

Part 2: GSTINs Used in This Module

GSTIN	State	Dealer Type	Role
`33AALCP2218B1ZX`	Tamil Nadu (33)	Regular Dealer	Your Company
`33AAFFN5770P1ZR`	Tamil Nadu (33)	Registered Customer	Buyer (B2B)
`33BUWPV2139J1ZY`	Tamil Nadu (33)	Composition Dealer	Buyer (Special Scheme)

Part 3: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌────────────────────────────────────────────────────────────────┐
│ Field                         │ Value                          │
├────────────────────────────────────────────────────────────────┤
│ Name                          │ Budget Learning Co             │
│ Financial Year begins        │ 1-Apr-2025                     │
│ Books beginning from         │ 1-Apr-2025                     │
│ Base Currency                │ Indian Rupee (₹)               │
└────────────────────────────────────────────────────────────────┘

Step 2: Enable Budgeting Features

Gateway of Tally → F11 (Features) → Accounting Features
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Set to Yes           │
├────────────────────────────────────────────────────────────────┤
│ Maintain Budgets and Controls          │ Yes                   │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes                  │
│ State                                   │ Tamil Nadu           │
│ Registration Type                       │ Regular              │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX      │
│ Periodicity of GSTR-1                  │ Monthly              │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 4: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Electronics              │ Primary                            │
│ Furniture                │ Primary                            │
│ Stationery               │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Step 5: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                                │
├────────────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                                    │
│ Simple  │ Kg     │ Kilograms                                  │
└────────────────────────────────────────────────────────────────┘

Step 6: Create Stock Items

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate
Smartphone	Electronics	Nos	85171300	25,000	18,000	18%
Office Chair	Furniture	Nos	94013000	6,000	4,000	18%
Notebook	Stationery	Nos	48201000	60	40	12%

For each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Smartphone
Under: Electronics
Unit: Nos
HSN/SAC: 85171300
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Step 7: Create Tax Ledgers

Output Tax Ledgers (for Sales):

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Input Tax Ledgers (for Purchases):

Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%
Type of Ledger: Bank/Cash/Asset

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Step 8: Create Party Ledgers

Customer 1: Registered Dealer (ABC Corp) – B2B

Gateway of Tally → Create → Ledger
Name: ABC Corp (Registered)
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Customer 2: Composition Dealer (Krishna Store)

Gateway of Tally → Create → Ledger
Name: Krishna Store (Composition)
Under: Sundry Debtors
GST Registration Type: Composition
GSTIN/UIN: 33BUWPV2139J1ZY
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Supplier: Registered Supplier (XYZ Ltd)

Gateway of Tally → Create → Ledger
Name: XYZ Ltd (Supplier)
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Step 9: Create Expense and Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST            │
├────────────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A            │
│ SBI Bank                 │ Bank Accounts     │ N/A            │
│ Capital                  │ Capital Account   │ N/A            │
│ Sales - Electronics      │ Direct Incomes    │ Applicable     │
│ Sales - Furniture        │ Direct Incomes    │ Applicable     │
│ Sales - Stationery       │ Direct Incomes    │ Applicable     │
│ Purchase - Electronics   │ Direct Expenses   │ Applicable     │
│ Purchase - Furniture     │ Direct Expenses   │ Applicable     │
│ Purchase - Stationery    │ Direct Expenses   │ Applicable     │
│ Rent                     │ Indirect Expenses │ N/A            │
│ Salary - Sales Dept      │ Indirect Expenses │ N/A            │
│ Salary - Admin Dept      │ Indirect Expenses │ N/A            │
│ Marketing Expenses       │ Indirect Expenses │ N/A            │
│ Utilities (Electricity)  │ Indirect Expenses │ N/A            │
│ Travel & Conveyance      │ Indirect Expenses │ N/A            │
└────────────────────────────────────────────────────────────────┘

Part 4: Create Budgets

Budget 1: Group Budget for Indirect Expenses

Purpose: Track all indirect expenses together against an annual budget.

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ FY 2025-26 Indirect Expenses       │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Set "Groups" to Yes                                          │
│ Group Name              │ Indirect Expenses                  │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹6,00,000 (₹50,000 per month)      │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Budget 2: Ledger Budget for Rent

Purpose: Track monthly rent expense against budget.

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Rent Budget FY 2025-26             │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Set "Ledgers" to Yes                                         │
│ Ledger Name             │ Rent                               │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹1,20,000 (₹10,000 per month)      │
└────────────────────────────────────────────────────────────────┘

Budget 3: Ledger Budget for Marketing Expenses

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Marketing Budget FY 2025-26        │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Ledger Name             │ Marketing Expenses                 │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹60,000 (₹5,000 per month)         │
└────────────────────────────────────────────────────────────────┘

Budget 4: Ledger Budget for Sales – Electronics (Income Target)

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Sales Target - Electronics         │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Ledger Name             │ Sales - Electronics                │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹12,00,000 (₹1,00,000 per month)   │
└────────────────────────────────────────────────────────────────┘

Budget 5: Ledger Budget for Sales – Furniture (Income Target)

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Sales Target - Furniture           │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Ledger Name             │ Sales - Furniture                  │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹6,00,000 (₹50,000 per month)      │
└────────────────────────────────────────────────────────────────┘

Budget 6: Ledger Budget for Salary – Sales Dept

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Salary Budget - Sales Dept         │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Ledger Name             │ Salary - Sales Dept                │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹3,60,000 (₹30,000 per month)      │
└────────────────────────────────────────────────────────────────┘

Budget 7: Ledger Budget for Salary – Admin Dept

Gateway of Tally → Accounts Info → Budgets → Create

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Name                     │ Salary Budget - Admin Dept         │
│ Period                   │ 01-Apr-2025 to 31-Mar-2026         │
│ Under                    │ Primary                            │
├────────────────────────────────────────────────────────────────┤
│ Ledger Name             │ Salary - Admin Dept                │
│ Type of Budget          │ On Net Transactions                │
│ Amount                  │ ₹2,40,000 (₹20,000 per month)      │
└────────────────────────────────────────────────────────────────┘

Part 5: Opening Capital (via Receipt Voucher as requested)

Transaction 0A: Capital in Cash via Receipt Voucher

Date: 01-Apr-2025 Details: Owner introduced capital of ₹3,00,000 in cash.

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ Cash → ₹3,00,000                   │
│ Credit                   │ Capital A/c → ₹3,00,000            │
│ Narration                │ Being capital introduced in cash   │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Transaction 0B: Capital in Bank via Receipt Voucher

Date: 01-Apr-2025 Details: Owner introduced capital of ₹2,00,000 in SBI Bank.

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ SBI Bank → ₹2,00,000               │
│ Credit                   │ Capital A/c → ₹2,00,000            │
│ Narration                │ Being capital deposited in bank    │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Total Capital Introduced: ₹5,00,000 (₹3,00,000 Cash + ₹2,00,000 Bank)

Part 6: Purchase Transactions (All under Purchase Account)

Transaction P1: Purchase from Registered Supplier (Intra-state)

Date: 02-Apr-2025 Details: Purchased from XYZ Ltd (Registered Supplier) :

100 Smartphones @ ₹18,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Smartphone	100	18,000	18,00,000
Total Taxable			18,00,000
CGST 9%			1,62,000
SGST 9%			1,62,000
Invoice Total			21,24,000

Voucher Entry:

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-001
Date: 02-Apr-2025

Stock Item: Smartphone: Qty 100, Rate ₹18,000

Tax Ledgers (Debit - Input Credit):
  CGST @ 9% Input: ₹1,62,000
  SGST @ 9% Input: ₹1,62,000

Effect on Budget:

Purchase expense: ₹18,00,000 (not directly budgeted)

Transaction P2: Purchase – Office Chairs

Date: 04-Apr-2025 Details: Purchased from XYZ Ltd :

150 Office Chairs @ ₹4,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Office Chair	150	4,000	6,00,000
CGST 9%			54,000
SGST 9%			54,000
Invoice Total			7,08,000

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-002
Date: 04-Apr-2025

Stock Item: Office Chair: Qty 150, Rate ₹4,000

Tax Ledgers:
  CGST @ 9% Input: ₹54,000
  SGST @ 9% Input: ₹54,000

Transaction P3: Purchase – Notebooks

Date: 06-Apr-2025 Details: Purchased from XYZ Ltd :

1,000 Notebooks @ ₹40 each
GST 12% (CGST 6% + SGST 6%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Notebook	1,000	40	40,000
CGST 6%			2,400
SGST 6%			2,400
Invoice Total			44,800

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-003
Date: 06-Apr-2025

Stock Item: Notebook: Qty 1,000, Rate ₹40

Tax Ledgers:
  CGST @ 6% Input: ₹2,400
  SGST @ 6% Input: ₹2,400

Part 7: Sales Transactions (All under Sales Account)

Transaction S1: Sale to Registered Dealer (B2B – Intra-state)

Date: 08-Apr-2025 Details: Sold to ABC Corp (Registered Customer) :

50 Smartphones @ ₹25,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Smartphone	50	25,000	12,50,000
CGST 9%			1,12,500
SGST 9%			1,12,500
Invoice Total			14,75,000

Voucher Entry:

Voucher: Sales (F8)
Party: ABC Corp (Registered)
Bill No.: S-001
Date: 08-Apr-2025
Place of Supply: Tamil Nadu

Stock Item: Smartphone: Qty 50, Rate ₹25,000

Tax Ledgers:
  CGST @ 9% Output: ₹1,12,500 (Cr.)
  SGST @ 9% Output: ₹1,12,500 (Cr.)

Account (Debit): ABC Corp → ₹14,75,000

Effect on Budget (Sales – Electronics):

Actual: ₹12,50,000
Budget target (monthly): ₹1,00,000
Variance: +₹11,50,000 (Excellent – Exceeded target)

Transaction S2: Sale to Registered Dealer (B2B – Furniture)

Date: 10-Apr-2025 Details: Sold to ABC Corp :

80 Office Chairs @ ₹6,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Office Chair	80	6,000	4,80,000
CGST 9%			43,200
SGST 9%			43,200
Invoice Total			5,66,400

Voucher: Sales (F8)
Party: ABC Corp (Registered)
Bill No.: S-002
Date: 10-Apr-2025

Stock Item: Office Chair: Qty 80, Rate ₹6,000

Tax Ledgers:
  CGST @ 9% Output: ₹43,200
  SGST @ 9% Output: ₹43,200

Effect on Budget (Sales – Furniture):

Actual: ₹4,80,000
Budget target (monthly): ₹50,000
Variance: +₹4,30,000 (Excellent)

Transaction S3: Sale to Composition Dealer

Date: 12-Apr-2025 Details: Sold to Krishna Store (Composition Dealer) :

500 Notebooks @ ₹60 each
GST 12% (CGST 6% + SGST 6%)

Note: Composition dealer cannot collect GST, but you must charge GST as usual. They will pay GST to you and cannot claim ITC.

Calculations:

Item	Qty	Rate	Taxable (₹)
Notebook	500	60	30,000
CGST 6%			1,800
SGST 6%			1,800
Invoice Total			33,600

Voucher: Sales (F8)
Party: Krishna Store (Composition)
Bill No.: S-003
Date: 12-Apr-2025
Place of Supply: Tamil Nadu

Stock Item: Notebook: Qty 500, Rate ₹60

Tax Ledgers:
  CGST @ 6% Output: ₹1,800
  SGST @ 6% Output: ₹1,800

Effect on Budget (Sales – Stationery):

Actual: ₹30,000
No direct budget for Stationery sales (can be added if needed)

Transaction S4: Sale – Additional Smartphones

Date: 15-Apr-2025 Details: Sold to ABC Corp :

30 Smartphones @ ₹25,000 each
GST 18%

Calculations:

Item	Qty	Rate	Taxable (₹)
Smartphone	30	25,000	7,50,000
CGST 9%			67,500
SGST 9%			67,500
Invoice Total			8,85,000

Voucher: Sales (F8)
Party: ABC Corp
Bill No.: S-004
Date: 15-Apr-2025

Stock Item: Smartphone: Qty 30, Rate ₹25,000

Tax Ledgers:
  CGST @ 9% Output: ₹67,500
  SGST @ 9% Output: ₹67,500

Part 8: Expense Transactions (Affect Budgets)

Transaction E1: Rent Payment

Date: 05-Apr-2025 Details: Paid monthly office rent ₹15,000 by cheque.

Budget: Rent budget is ₹10,000 per month.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹15,000
Debit	Rent A/c → ₹15,000

Budget Variance for Rent:

Actual: ₹15,000
Budget: ₹10,000
Variance: -₹5,000 (Over budget by ₹5,000 – BAD)

Transaction E2: Marketing Expenses

Date: 07-Apr-2025 Details: Paid for digital marketing campaign ₹8,000 by cheque.

Budget: Marketing budget is ₹5,000 per month.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹8,000
Debit	Marketing Expenses A/c → ₹8,000

Budget Variance for Marketing:

Actual: ₹8,000
Budget: ₹5,000
Variance: -₹3,000 (Over budget – BAD)

Transaction E3: Salary – Sales Dept

Date: 10-Apr-2025 Details: Paid salary for Sales Dept staff ₹35,000 by cheque.

Budget: Sales Dept salary budget is ₹30,000 per month.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹35,000
Debit	Salary – Sales Dept A/c → ₹35,000

Budget Variance for Salary – Sales Dept:

Actual: ₹35,000
Budget: ₹30,000
Variance: -₹5,000 (Over budget – BAD)

Transaction E4: Salary – Admin Dept

Date: 10-Apr-2025 Details: Paid salary for Admin Dept staff ₹20,000 by cheque.

Budget: Admin Dept salary budget is ₹20,000 per month (exact match).

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹20,000
Debit	Salary – Admin Dept A/c → ₹20,000

Budget Variance for Salary – Admin Dept:

Actual: ₹20,000
Budget: ₹20,000
Variance: ₹0 (On budget – GOOD)

Transaction E5: Utilities (Electricity)

Date: 12-Apr-2025 Details: Paid electricity bill ₹6,000 by cheque.

Budget: Part of Indirect Expenses group budget (₹50,000 per month). No individual ledger budget.

Voucher Type	Payment (F5)
Credit	SBI Bank → ₹6,000
Debit	Utilities (Electricity) A/c → ₹6,000

Transaction E6: Travel & Conveyance

Date: 15-Apr-2025 Details: Paid travel expenses ₹4,000 by cash.

Voucher Type	Payment (F5)
Credit	Cash → ₹4,000
Debit	Travel & Conveyance A/c → ₹4,000

Part 9: Payment and Receipt Transactions

Transaction PR1: Customer Receipt from ABC Corp

Date: 18-Apr-2025 Details: Received ₹10,00,000 from ABC Corp by cheque.

Voucher: Receipt (F6)
Party: ABC Corp
Amount: ₹10,00,000
Mode: SBI Bank
Bill-wise: Select open bills (S-001, S-002, S-004)

Transaction PR2: Payment to XYZ Ltd (Supplier)

Date: 20-Apr-2025 Details: Paid ₹15,00,000 to XYZ Ltd by cheque.

Voucher: Payment (F5)
Party: XYZ Ltd
Amount: ₹15,00,000
Mode: SBI Bank
Bill-wise: Select open purchase bills

Transaction PR3: Customer Receipt from Krishna Store

Date: 22-Apr-2025 Details: Received ₹33,600 from Krishna Store by cheque (full payment of S-003).

Voucher: Receipt (F6)
Party: Krishna Store
Amount: ₹33,600
Mode: SBI Bank
Bill-wise: Select S-003

Part 10: Reports to Generate

Report 1: Trial Balance with Budget Variance

Path: Gateway of Tally → Display → Trial Balance

To view Budget Variance in Trial Balance:

In Trial Balance screen → Press Alt+C (New Column)
Select: Type of value to show → Budget (choose your budget)
Set: Show variance → Yes

Expected Output (as on 30-Apr-2025):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹	Budget (₹)	Variance (₹)
Cash	2,96,000	–	–	–
SBI Bank	6,33,600	–	–	–
ABC Corp (Debtor)	15,27,000	–	–	–
XYZ Ltd (Supplier)	–	15,76,800	–	–
Purchase – Electronics	18,00,000	–	–	–
Purchase – Furniture	6,00,000	–	–	–
Purchase – Stationery	40,000	–	–	–
Sales – Electronics	–	20,00,000	1,00,000	+19,00,000
Sales – Furniture	–	4,80,000	50,000	+4,30,000
Sales – Stationery	–	30,000	–	–
Rent	15,000	–	10,000	-5,000
Marketing Expenses	8,000	–	5,000	-3,000
Salary – Sales Dept	35,000	–	30,000	-5,000
Salary – Admin Dept	20,000	–	20,000	0
Utilities	6,000	–	–	–
Travel & Conveyance	4,000	–	–	–
CGST @ 9% Output	–	2,23,200	–	–
SGST @ 9% Output	–	2,23,200	–	–
CGST @ 6% Output	–	1,800	–	–
SGST @ 6% Output	–	1,800	–	–
CGST @ 9% Input	2,16,000	–	–	–
SGST @ 9% Input	2,16,000	–	–	–
CGST @ 6% Input	2,400	–	–	–
SGST @ 6% Input	2,400	–	–	–
Capital	–	5,00,000	–	–
Total	52,21,400	52,21,400

Ledger Balances Explanation:

Ledger	Calculation
Cash	3,00,000 (Capital) – 4,000 (E6) = 2,96,000
SBI Bank	2,00,000 (Capital) + 10,00,000 (PR1) + 33,600 (PR3) – 15,000 (E1) – 8,000 (E2) – 35,000 (E3) – 20,000 (E4) – 6,000 (E5) – 15,00,000 (PR2) = 6,33,600? Wait, recalculate

SBI Bank Detailed Calculation:

Transaction	Dr. (₹)	Cr. (₹)	Balance (₹)
Opening Capital	2,00,000	–	2,00,000
E1 (Rent)	–	15,000	1,85,000
E2 (Marketing)	–	8,000	1,77,000
E3 (Salary Sales)	–	35,000	1,42,000
E4 (Salary Admin)	–	20,000	1,22,000
E5 (Utilities)	–	6,000	1,16,000
PR1 (Receipt from ABC)	10,00,000	–	11,16,000
PR2 (Payment to XYZ)	–	15,00,000	(3,84,000)
PR3 (Receipt from Krishna)	33,600	–	(3,50,400)
Closing			(3,50,400) Cr. (Overdraft)

This shows bank overdraft. To fix, either reduce payments or add more capital.

ABC Corp (Debtor) Calculation:

Invoice	Amount (₹)
S-001	14,75,000
S-002	5,66,400
S-004	8,85,000
Total	29,26,400
Less: PR1	10,00,000
Closing	19,26,400

XYZ Ltd (Creditor) Calculation:

Invoice	Amount (₹)
P-001	21,24,000
P-002	7,08,000
P-003	44,800
Total	28,76,800
Less: PR2	15,00,000
Closing	13,76,800

Report 2: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Liabilities	₹	Assets	₹
Capital A/c	5,00,000	Current Assets
Current Liabilities		Cash	2,96,000
XYZ Ltd (Creditor)	13,76,800	SBI Bank	(3,50,400)
CGST Output Payable	2,25,000	ABC Corp (Debtor)	19,26,400
SGST Output Payable	2,25,000	CGST Input Credit	2,18,400
		SGST Input Credit	2,18,400
		Stock on Hand	See below
Total	23,26,800	Total	23,26,800

GST Payable Calculation:

Tax	Output	Input	Payable
CGST 9%	2,23,200	2,16,000	7,200
SGST 9%	2,23,200	2,16,000	7,200
CGST 6%	1,800	2,400	(600) Credit
SGST 6%	1,800	2,400	(600) Credit
Net Payable			13,200

Stock on Hand Calculation:

Stock Item	Purchase Qty	Sold Qty	Closing Qty	Cost (₹)	Value (₹)
Smartphone	100	50+30=80	20	18,000	3,60,000
Office Chair	150	80	70	4,000	2,80,000
Notebook	1,000	500	500	40	20,000
Total					6,60,000

Report 3: Budget Variance Report (Group-wise)

Path: Gateway of Tally → Display → Budget Variance Report

Indirect Expenses Group Budget (Annual: ₹6,00,000; Monthly: ₹50,000):

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	15,000+8,000+35,000+20,000+6,000+4,000 = 88,000	50,000	-38,000	⚠ Over Budget

Analysis: Indirect expenses exceeded budget by ₹38,000 in April. Major contributors: Salary expenses.

Report 4: Budget Variance Report (Ledger-wise)

Path: Gateway of Tally → Display → Budget Variance Report → Select Ledger

Rent Ledger:

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	15,000	10,000	-5,000	⚠ Over Budget

Marketing Expenses Ledger:

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	8,000	5,000	-3,000	⚠ Over Budget

Salary – Sales Dept Ledger:

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	35,000	30,000	-5,000	⚠ Over Budget

Salary – Admin Dept Ledger:

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	20,000	20,000	0	✓ On Budget

Report 5: Budget Variance Report (Sales Targets)

Sales – Electronics Ledger (Annual: ₹12,00,000; Monthly: ₹1,00,000):

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	20,00,000	1,00,000	+19,00,000	✓ Excellent

Sales – Furniture Ledger (Annual: ₹6,00,000; Monthly: ₹50,000):

Month	Actual (₹)	Budget (₹)	Variance (₹)	Status
April 2025	4,80,000	50,000	+4,30,000	✓ Excellent

Report 6: GSTR-1

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-001	08-Apr	12,50,000	1,12,500	1,12,500
33AAFFN5770P1ZR	S-002	10-Apr	4,80,000	43,200	43,200
33AAFFN5770P1ZR	S-004	15-Apr	7,50,000	67,500	67,500
Total			24,80,000	2,23,200	2,23,200

B2B Invoices – Composition Dealer (Table 4A, 4B, 4C): Note: Composition dealers are treated as Registered for reporting purposes since they have a GSTIN.

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33BUWPV2139J1ZY	S-003	12-Apr	30,000	1,800	1,800

Report 7: GSTR-3B

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	24,80,000 + 30,000 = 25,10,000
3.1(b) Outward CGST	2,23,200 + 1,800 = 2,25,000
3.1(b) Outward SGST	2,23,200 + 1,800 = 2,25,000
4(A)(1) ITC Available (CGST)	2,16,000 + 2,400 = 2,18,400
4(A)(1) ITC Available (SGST)	2,16,000 + 2,400 = 2,18,400
5. Net CGST Payable	2,25,000 – 2,18,400 = 6,600
5. Net SGST Payable	2,25,000 – 2,18,400 = 6,600
Total Tax Payable	13,200

PRICE LIST IN TALLY PRIME

Concept: A Price List is a predefined list of selling prices and discounts applicable to specific customer types or quantity slabs. When you select a customer during invoicing, Tally automatically applies the correct price .

Real Business Scenario:

Customer Type	Price Level	1-10 Units	11-50 Units	50+ Units
Wholesaler	Wholesale	₹1,000	₹950	₹900
Retailer	Retail	₹1,200	₹1,150	₹1,100
Dealer	Dealer	₹1,100	₹1,050	₹1,000

Benefits of Price Lists:

Automatic price selection based on customer type
Bulk discount slabs (volume-based pricing)
Error prevention in manual rate entry
Historical price tracking

Part 2: GSTINs Used in This Module

GSTIN	State	Dealer Type	Role
`33AALCP2218B1ZX`	Tamil Nadu (33)	Regular Dealer	Your Company
`33AAFFN5770P1ZR`	Tamil Nadu (33)	Registered Customer	Wholesaler Buyer
`33BUWPV2139J1ZY`	Tamil Nadu (33)	Composition Dealer	Retailer Buyer

Part 3: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌────────────────────────────────────────────────────────────────┐
│ Field                         │ Value                          │
├────────────────────────────────────────────────────────────────┤
│ Name                          │ Price List Learning Co         │
│ Financial Year begins        │ 1-Apr-2025                     │
│ Books beginning from         │ 1-Apr-2025                     │
│ Base Currency                │ Indian Rupee (₹)               │
└────────────────────────────────────────────────────────────────┘

Step 2: Enable Price Level Feature

Gateway of Tally → F11 (Features) → Inventory Features
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Set to Yes           │
├────────────────────────────────────────────────────────────────┤
│ Enable Multiple Price Levels           │ Yes                   │
│ Use Discount column in invoices        │ Yes                   │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Note: If you don’t see these options, set “Show more features” to Yes .

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes                  │
│ State                                   │ Tamil Nadu           │
│ Registration Type                       │ Regular              │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX      │
│ Periodicity of GSTR-1                  │ Monthly              │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 4: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Electronics              │ Primary                            │
│ Furniture                │ Primary                            │
│ Clothing                 │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Step 5: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                                │
├────────────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                                    │
│ Simple  │ Pcs    │ Pieces                                     │
└────────────────────────────────────────────────────────────────┘

Step 6: Create Stock Items

Note: For Price Lists, we create items with a base purchase price. The selling price will be defined in the Price List.

Stock Item	Group	Unit	HSN	Purchase Price (₹)	GST Rate
Smartphone	Electronics	Nos	85171300	15,000	18%
Office Chair	Furniture	Nos	94013000	3,500	18%
Cotton Saree	Clothing	Nos	52085190	800	12%

For each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Smartphone
Under: Electronics
Unit: Nos
HSN/SAC: 85171300
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Step 7: Create Tax Ledgers

Output Tax Ledgers (for Sales):

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Input Tax Ledgers (for Purchases):

Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%
Type of Ledger: Bank/Cash/Asset

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: CGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 6%

Name: SGST @ 6% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 6%

Step 8: Create Price Levels (Customer Categories)

Price Levels define the type of customer you are selling to .

Gateway of Tally → Create → Price Level

┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Description                        │
├────────────────────────────────────────────────────────────────┤
│ Wholesale                │ For bulk quantity buyers          │
│ Retail                   │ For individual customers          │
│ Dealer                   │ For authorized dealers            │
└────────────────────────────────────────────────────────────────┘

Steps:

Gateway of Tally → Create → Price Level
Name: Wholesale
Press Enter

Name: Retail
Press Enter

Name: Dealer
Press Enter

Step 9: Create Party Ledgers with Price Level Assignment

Customer 1: Wholesale Buyer (ABC Corp)

Gateway of Tally → Create → Ledger
Name: ABC Corp (Wholesale)
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Price Level: Wholesale (select from list)
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Customer 2: Retail Buyer (Krishna Store – Composition Dealer)

Gateway of Tally → Create → Ledger
Name: Krishna Store (Retail)
Under: Sundry Debtors
GST Registration Type: Composition
GSTIN/UIN: 33BUWPV2139J1ZY
Price Level: Retail (select from list)
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Customer 3: Dealer (Dealer Enterprises)

Gateway of Tally → Create → Ledger
Name: Dealer Enterprises
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Price Level: Dealer (select from list)
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Supplier: Registered Supplier (XYZ Ltd)

Gateway of Tally → Create → Ledger
Name: XYZ Ltd (Supplier)
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Set/Alter GST Details: Yes → Taxability Type: Taxable
Maintain bill-wise details: Yes

Step 10: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST            │
├────────────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A            │
│ SBI Bank                 │ Bank Accounts     │ N/A            │
│ Capital                  │ Capital Account   │ N/A            │
│ Sales - Electronics      │ Direct Incomes    │ Applicable     │
│ Sales - Furniture        │ Direct Incomes    │ Applicable     │
│ Sales - Clothing         │ Direct Incomes    │ Applicable     │
│ Purchase - Electronics   │ Direct Expenses   │ Applicable     │
│ Purchase - Furniture     │ Direct Expenses   │ Applicable     │
│ Purchase - Clothing      │ Direct Expenses   │ Applicable     │
│ Rent                     │ Indirect Expenses │ N/A            │
│ Salary                   │ Indirect Expenses │ N/A            │
└────────────────────────────────────────────────────────────────┘

Step 11: Create Discount Ledger (for Price List Discounts)

Gateway of Tally → Create → Ledger
Name: Trade Discount
Under: Indirect Expenses
Type of Ledger: Discount
Include in assessable value calculation: Yes (for GST calculation)

Part 4: Create Price Lists (Selling Prices for Different Customer Types)

Price List for Wholesale Customers

Path: Gateway of Tally → Create → Price List (Stock Group)

For Electronics Stock Group – Wholesale Price Level:

Gateway of Tally → Create → Price List (Stock Group)

┌────────────────────────────────────────────────────────────────┐
│ Stock Group             │ Electronics                        │
│ Price Level             │ Wholesale                          │
│ Date                    │ 01-Apr-2025                        │
└────────────────────────────────────────────────────────────────┘

Item Details:
┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Smartphone     │ 0        │ 10            │ 22,000   │ 0%     │
│ Smartphone     │ 10       │ 50            │ 21,000   │ 0%     │
│ Smartphone     │ 50       │ 999999        │ 20,000   │ 0%     │
└────────────────────────────────────────────────────────────────┘

For Furniture Stock Group – Wholesale Price Level:

Stock Group: Furniture
Price Level: Wholesale

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Office Chair   │ 0        │ 10            │ 5,500    │ 0%     │
│ Office Chair   │ 10       │ 30            │ 5,200    │ 0%     │
│ Office Chair   │ 30       │ 999999        │ 5,000    │ 0%     │
└────────────────────────────────────────────────────────────────┘

For Clothing Stock Group – Wholesale Price Level:

Stock Group: Clothing
Price Level: Wholesale

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Cotton Saree   │ 0        │ 50            │ 1,000    │ 0%     │
│ Cotton Saree   │ 50       │ 150           │ 950      │ 0%     │
│ Cotton Saree   │ 150      │ 999999        │ 900      │ 0%     │
└────────────────────────────────────────────────────────────────┘

Price List for Retail Customers

For Electronics – Retail Price Level:

Gateway of Tally → Create → Price List (Stock Group)

Stock Group: Electronics
Price Level: Retail

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Smartphone     │ 0        │ 5             │ 25,000   │ 0%     │
│ Smartphone     │ 5        │ 20            │ 24,000   │ 0%     │
│ Smartphone     │ 20       │ 999999        │ 23,000   │ 0%     │
└────────────────────────────────────────────────────────────────┘

For Furniture – Retail Price Level:

Stock Group: Furniture
Price Level: Retail

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Office Chair   │ 0        │ 5             │ 6,500    │ 0%     │
│ Office Chair   │ 5        │ 15            │ 6,200    │ 0%     │
│ Office Chair   │ 15       │ 999999        │ 6,000    │ 0%     │
└────────────────────────────────────────────────────────────────┘

For Clothing – Retail Price Level:

Stock Group: Clothing
Price Level: Retail

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Cotton Saree   │ 0        │ 25            │ 1,200    │ 0%     │
│ Cotton Saree   │ 25       │ 100           │ 1,150    │ 0%     │
│ Cotton Saree   │ 100      │ 999999        │ 1,100    │ 0%     │
└────────────────────────────────────────────────────────────────┘

Price List for Dealer Customers (with Discounts)

Price Lists can also include automatic discounts based on quantity slabs .

For Electronics – Dealer Price Level:

Stock Group: Electronics
Price Level: Dealer

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Smartphone     │ 0        │ 15            │ 23,000   │ 5%     │
│ Smartphone     │ 15       │ 40            │ 22,000   │ 7%     │
│ Smartphone     │ 40       │ 999999        │ 21,000   │ 10%    │
└────────────────────────────────────────────────────────────────┘

For Furniture – Dealer Price Level:

Stock Group: Furniture
Price Level: Dealer

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Office Chair   │ 0        │ 20            │ 5,800    │ 3%     │
│ Office Chair   │ 20       │ 50            │ 5,500    │ 5%     │
│ Office Chair   │ 50       │ 999999        │ 5,200    │ 8%     │
└────────────────────────────────────────────────────────────────┘

For Clothing – Dealer Price Level:

Stock Group: Clothing
Price Level: Dealer

┌────────────────────────────────────────────────────────────────┐
│ Stock Item     │ From Qty │ Less Than Qty │ Rate (₹) │ Disc.% │
├────────────────────────────────────────────────────────────────┤
│ Cotton Saree   │ 0        │ 75            │ 1,050    │ 2%     │
│ Cotton Saree   │ 75       │ 200           │ 1,000    │ 5%     │
│ Cotton Saree   │ 200      │ 999999        │ 950      │ 8%     │
└────────────────────────────────────────────────────────────────┘

Part 5: Opening Capital (via Receipt Voucher as requested)

Transaction 0A: Capital in Cash via Receipt Voucher

Date: 01-Apr-2025 Details: Owner introduced capital of ₹4,00,000 in cash.

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ Cash → ₹4,00,000                   │
│ Credit                   │ Capital A/c → ₹4,00,000            │
│ Narration                │ Being capital introduced in cash   │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Transaction 0B: Capital in Bank via Receipt Voucher

Date: 01-Apr-2025 Details: Owner introduced capital of ₹3,00,000 in SBI Bank.

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ SBI Bank → ₹3,00,000               │
│ Credit                   │ Capital A/c → ₹3,00,000            │
│ Narration                │ Being capital deposited in bank    │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Total Capital Introduced: ₹7,00,000 (₹4,00,000 Cash + ₹3,00,000 Bank)

Part 6: Purchase Transactions (All under Purchase Account)

Transaction P1: Purchase – Smartphones

Date: 02-Apr-2025 Details: Purchased from XYZ Ltd (Supplier) :

200 Smartphones @ ₹15,000 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Smartphone	200	15,000	30,00,000
Total Taxable			30,00,000
CGST 9%			2,70,000
SGST 9%			2,70,000
Invoice Total			35,40,000

Voucher Entry:

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-001
Date: 02-Apr-2025

Stock Item: Smartphone: Qty 200, Rate ₹15,000

Tax Ledgers (Debit - Input Credit):
  CGST @ 9% Input: ₹2,70,000
  SGST @ 9% Input: ₹2,70,000

Transaction P2: Purchase – Office Chairs

Date: 04-Apr-2025 Details: Purchased from XYZ Ltd :

300 Office Chairs @ ₹3,500 each
GST 18% (CGST 9% + SGST 9%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Office Chair	300	3,500	10,50,000
CGST 9%			94,500
SGST 9%			94,500
Invoice Total			12,39,000

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-002
Date: 04-Apr-2025

Stock Item: Office Chair: Qty 300, Rate ₹3,500

Tax Ledgers:
  CGST @ 9% Input: ₹94,500
  SGST @ 9% Input: ₹94,500

Transaction P3: Purchase – Cotton Sarees

Date: 06-Apr-2025 Details: Purchased from XYZ Ltd :

1,000 Cotton Sarees @ ₹800 each
GST 12% (CGST 6% + SGST 6%)

Calculations:

Item	Qty	Rate	Taxable (₹)
Cotton Saree	1,000	800	8,00,000
CGST 6%			48,000
SGST 6%			48,000
Invoice Total			8,96,000

Voucher: Purchase (F9)
Party: XYZ Ltd (Supplier)
Bill No.: P-003
Date: 06-Apr-2025

Stock Item: Cotton Saree: Qty 1,000, Rate ₹800

Tax Ledgers:
  CGST @ 6% Input: ₹48,000
  SGST @ 6% Input: ₹48,000

Part 7: Sales Transactions with Price List (Automated Pricing)

When you select a customer with an assigned Price Level, Tally automatically applies the correct rates and discounts based on quantity .

Transaction S1: Sale to Wholesale Customer (Quantity-based pricing)

Date: 08-Apr-2025 Details: Sold to ABC Corp (Wholesale) – Price Level: Wholesale

60 Smartphones (falls in 50+ slab → ₹20,000 each)
40 Office Chairs (falls in 30+ slab → ₹5,000 each)
GST 18% (CGST 9% + SGST 9%)

Voucher Entry:

Voucher: Sales (F8)
Party: ABC Corp (Wholesale)
Bill No.: S-001
Date: 08-Apr-2025
Place of Supply: Tamil Nadu

IMPORTANT: When you select the party, Tally will ask:
"Select Price Level for this transaction?"
→ Select "Wholesale"

Stock Items (Auto rates appear from Price List):
  - Smartphone: Qty 60, Rate ₹20,000 (auto)
  - Office Chair: Qty 40, Rate ₹5,000 (auto)

Tax Ledgers:
  CGST @ 9% Output: (60×20,000×9% = 1,08,000) + (40×5,000×9% = 18,000) = ₹1,26,000
  SGST @ 9% Output: ₹1,26,000

Total Invoice: (12,00,000 + 2,00,000) = 14,00,000 + 2,52,000 GST = ₹16,52,000

Calculations Table:

Item	Qty	Rate (₹)	Taxable (₹)	CGST 9% (₹)	SGST 9% (₹)
Smartphone	60	20,000	12,00,000	1,08,000	1,08,000
Office Chair	40	5,000	2,00,000	18,000	18,000
Total			14,00,000	1,26,000	1,26,000

Transaction S2: Sale to Retail Customer

Date: 10-Apr-2025 Details: Sold to Krishna Store (Retail) – Price Level: Retail

30 Smartphones (falls in 20+ slab → ₹23,000 each)
20 Office Chairs (falls in 15+ slab → ₹6,000 each)
GST 18% (CGST 9% + SGST 9%)

Voucher: Sales (F8)
Party: Krishna Store (Retail)
Bill No.: S-002
Date: 10-Apr-2025

Price Level: Retail (auto-selected from party master)

Stock Items:
  - Smartphone: Qty 30, Rate ₹23,000
  - Office Chair: Qty 20, Rate ₹6,000

Tax Ledgers:
  CGST @ 9% Output: ₹(6,90,000×9% = 62,100) + ₹(1,20,000×9% = 10,800) = ₹72,900
  SGST @ 9% Output: ₹72,900

Calculations Table:

Item	Qty	Rate (₹)	Taxable (₹)	CGST 9% (₹)	SGST 9% (₹)
Smartphone	30	23,000	6,90,000	62,100	62,100
Office Chair	20	6,000	1,20,000	10,800	10,800
Total			8,10,000	72,900	72,900

Transaction S3: Sale to Dealer Customer (with Automatic Discounts)

Date: 12-Apr-2025 Details: Sold to Dealer Enterprises – Price Level: Dealer

50 Smartphones (50+ slab → ₹21,000 with 10% discount)
60 Office Chairs (50+ slab → ₹5,200 with 8% discount)
GST 18% (CGST 9% + SGST 9%)

Note: The Price List includes discount percentages. When you select the item, Tally automatically applies the discount and calculates tax on the discounted amount .

Voucher: Sales (F8)
Party: Dealer Enterprises
Bill No.: S-003
Date: 12-Apr-2025

Price Level: Dealer

Stock Items:
  - Smartphone: Qty 50, Rate ₹21,000, Discount 10% (auto)
    (Taxable after discount: 50 × 21,000 = 10,50,000 - 10% = 9,45,000)
  - Office Chair: Qty 60, Rate ₹5,200, Discount 8% (auto)
    (Taxable after discount: 60 × 5,200 = 3,12,000 - 8% = 2,87,040)

Tax Ledgers:
  CGST @ 9% Output: (9,45,000×9% = 85,050) + (2,87,040×9% = 25,834) = ₹1,10,884
  SGST @ 9% Output: ₹1,10,884

Calculations Table:

Item	Qty	Base Rate (₹)	Disc.%	Taxable After Discount (₹)	CGST 9% (₹)	SGST 9% (₹)
Smartphone	50	21,000	10%	9,45,000	85,050	85,050
Office Chair	60	5,200	8%	2,87,040	25,834	25,834
Total				12,32,040	1,10,884	1,10,884

Transaction S4: Sale – Clothing Items (Cotton Sarees – Wholesale)

Date: 15-Apr-2025 Details: Sold to ABC Corp (Wholesale) – Price Level: Wholesale

200 Cotton Sarees (150+ slab → ₹900 each)
GST 12% (CGST 6% + SGST 6%)

Voucher: Sales (F8)
Party: ABC Corp (Wholesale)
Bill No.: S-004
Date: 15-Apr-2025

Price Level: Wholesale

Stock Item: Cotton Saree: Qty 200, Rate ₹900

Tax Ledgers:
  CGST @ 6% Output: 2,00,000 × 6% = ₹12,000
  SGST @ 6% Output: ₹12,000

Calculations:

Item	Qty	Rate (₹)	Taxable (₹)	CGST 6% (₹)	SGST 6% (₹)
Cotton Saree	200	900	1,80,000	10,800	10,800

Transaction S5: Sale – Clothing Items (Dealer with Discount)

Date: 18-Apr-2025 Details: Sold to Dealer Enterprises – Price Level: Dealer

250 Cotton Sarees (200+ slab → ₹950 with 8% discount)
GST 12% (CGST 6% + SGST 6%)

Voucher: Sales (F8)
Party: Dealer Enterprises
Bill No.: S-005
Date: 18-Apr-2025

Price Level: Dealer

Stock Item: Cotton Saree: Qty 250, Rate ₹950, Discount 8%
Taxable after discount: 250 × 950 = 2,37,500 - 8% = 2,18,500

Tax Ledgers:
  CGST @ 6% Output: 2,18,500 × 6% = ₹13,110
  SGST @ 6% Output: ₹13,110

Transaction S6: Sale – Small Quantity (Retail – Lower Slab)

Date: 20-Apr-2025 Details: Sold to Krishna Store (Retail) – Price Level: Retail

3 Smartphones (0-5 slab → ₹25,000 each)
4 Office Chairs (0-5 slab → ₹6,500 each)
20 Cotton Sarees (0-25 slab → ₹1,200 each)
GST as applicable

Voucher: Sales (F8)
Party: Krishna Store (Retail)
Bill No.: S-006
Date: 20-Apr-2025

Price Level: Retail

Stock Items:
  - Smartphone: Qty 3, Rate ₹25,000 (18% GST)
  - Office Chair: Qty 4, Rate ₹6,500 (18% GST)
  - Cotton Saree: Qty 20, Rate ₹1,200 (12% GST)

Tax Ledgers:
  CGST @ 9% Output: (75,000×9% = 6,750) + (26,000×9% = 2,340) = ₹9,090
  SGST @ 9% Output: ₹9,090
  CGST @ 6% Output: 24,000×6% = ₹1,440
  SGST @ 6% Output: ₹1,440

Calculations Table:

Item	Qty	Rate (₹)	Taxable (₹)	GST Rate	CGST	SGST
Smartphone	3	25,000	75,000	18%	6,750	6,750
Office Chair	4	6,500	26,000	18%	2,340	2,340
Cotton Saree	20	1,200	24,000	12%	1,440	1,440
Total			1,25,000		10,530	10,530

Part 8: Payment and Receipt Transactions

Transaction PR1: Customer Receipt from ABC Corp

Date: 22-Apr-2025 Details: Received ₹10,00,000 from ABC Corp by cheque.

Voucher: Receipt (F6)
Party: ABC Corp (Wholesale)
Amount: ₹10,00,000
Mode: SBI Bank
Bill-wise: Select open bills (S-001, S-004)

Transaction PR2: Payment to XYZ Ltd (Supplier)

Date: 24-Apr-2025 Details: Paid ₹20,00,000 to XYZ Ltd by cheque.

Voucher: Payment (F5)
Party: XYZ Ltd (Supplier)
Amount: ₹20,00,000
Mode: SBI Bank
Bill-wise: Select open purchase bills

Transaction PR3: Customer Receipt from Dealer Enterprises

Date: 25-Apr-2025 Details: Received ₹8,00,000 from Dealer Enterprises by cheque.

Voucher: Receipt (F6)
Party: Dealer Enterprises
Amount: ₹8,00,000
Mode: SBI Bank
Bill-wise: Select open bills

Transaction PR4: Customer Receipt from Krishna Store

Date: 26-Apr-2025 Details: Received ₹5,00,000 from Krishna Store (Retail) by cheque.

Voucher: Receipt (F6)
Party: Krishna Store (Retail)
Amount: ₹5,00,000
Mode: SBI Bank
Bill-wise: Select open bills

Transaction PR5: Rent and Salary Payment

Date: 28-Apr-2025 Details: Paid rent ₹20,000 and salary ₹40,000 by cheque.

Voucher: Payment (F5)
Credit: SBI Bank → ₹60,000
Debit: Rent A/c → ₹20,000
Debit: Salary A/c → ₹40,000

Part 9: Reports to Generate

Report 1: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Expected Output (as on 30-Apr-2025):

Ledger Name	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	4,00,000	–
SBI Bank	3,00,000 + 10,00,000 + 8,00,000 + 5,00,000 = 26,00,000 – 20,00,000 – 60,000 = 5,40,000	–
ABC Corp (Wholesale)	S-001+S-004 – PR1	–
Krishna Store (Retail)	S-002+S-006 – PR4	–
Dealer Enterprises	S-003+S-005 – PR3	–
XYZ Ltd (Supplier)	–	P-001+P-002+P-003 – PR2
Purchase – Electronics	30,00,000	–
Purchase – Furniture	10,50,000	–
Purchase – Clothing	8,00,000	–
Sales – Electronics	–	14,00,000 + 8,10,000 + 12,32,040 + 75,000 = 35,17,040
Sales – Furniture	–	2,00,000 + 1,20,000 + 2,87,040 + 26,000 = 6,33,040
Sales – Clothing	–	1,80,000 + 2,18,500 + 24,000 = 4,22,500
Rent	20,000	–
Salary	40,000	–
Trade Discount	(Already adjusted in sales)	–
CGST @ 9% Output	–	1,26,000 + 72,900 + 1,10,884 + 9,090 = 3,18,874
SGST @ 9% Output	–	3,18,874
CGST @ 6% Output	–	10,800 + 13,110 + 1,440 = 25,350
SGST @ 6% Output	–	25,350
CGST @ 9% Input	2,70,000 + 94,500 = 3,64,500	–
SGST @ 9% Input	3,64,500	–
CGST @ 6% Input	48,000	–
SGST @ 6% Input	48,000	–
Capital	–	7,00,000
Total	Approx 89,00,000	Approx 89,00,000

Sales Summary:

Product	Total Sales Taxable (₹)
Smartphone	14,00,000 + 6,90,000 + 9,45,000 + 75,000 = 31,10,000
Office Chair	2,00,000 + 1,20,000 + 2,87,040 + 26,000 = 6,33,040
Cotton Saree	1,80,000 + 2,18,500 + 24,000 = 4,22,500

Report 2: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Liabilities	₹	Assets	₹
Capital A/c	7,00,000	Current Assets
Current Liabilities		Cash	4,00,000
XYZ Ltd (Creditor)	(To be calculated)	SBI Bank	5,40,000
CGST Output Payable	3,44,224	Debtors (Customers)	(To be calculated)
SGST Output Payable	3,44,224	CGST Input Credit	4,12,500
		SGST Input Credit	4,12,500
		Stock on Hand	See below
Total		Total

Stock on Hand Calculation:

Stock Item	Purchase Qty	Sold Qty	Closing Qty	Cost (₹)	Value (₹)
Smartphone	200	60+30+50+3 = 143	57	15,000	8,55,000
Office Chair	300	40+20+60+4 = 124	176	3,500	6,16,000
Cotton Saree	1,000	200+250+20 = 470	530	800	4,24,000
Total					18,95,000

Report 3: Price List Report

Path: Gateway of Tally → Display → Inventory Info → Price Lists

Expected Output – Wholesale Price List:

Stock Item	Slab (Qty)	Rate (₹)
Smartphone	0-10	22,000
Smartphone	10-50	21,000
Smartphone	50+	20,000
Office Chair	0-10	5,500
Office Chair	10-30	5,200
Office Chair	30+	5,000
Cotton Saree	0-50	1,000
Cotton Saree	50-150	950
Cotton Saree	150+	900

Expected Output – Retail Price List:

Stock Item	Slab (Qty)	Rate (₹)
Smartphone	0-5	25,000
Smartphone	5-20	24,000
Smartphone	20+	23,000
Office Chair	0-5	6,500
Office Chair	5-15	6,200
Office Chair	15+	6,000
Cotton Saree	0-25	1,200
Cotton Saree	25-100	1,150
Cotton Saree	100+	1,100

Expected Output – Dealer Price List (with Discounts):

Stock Item	Slab (Qty)	Base Rate (₹)	Discount %	Effective Rate (₹)
Smartphone	0-15	23,000	5%	21,850
Smartphone	15-40	22,000	7%	20,460
Smartphone	40+	21,000	10%	18,900
Office Chair	0-20	5,800	3%	5,626
Office Chair	20-50	5,500	5%	5,225
Office Chair	50+	5,200	8%	4,784
Cotton Saree	0-75	1,050	2%	1,029
Cotton Saree	75-200	1,000	5%	950
Cotton Saree	200+	950	8%	874

Report 4: GSTR-1

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-001	08-Apr	14,00,000	1,26,000	1,26,000
33AAFFN5770P1ZR	S-004	15-Apr	1,80,000	10,800	10,800
33BUWPV2139J1ZY	S-002	10-Apr	8,10,000	72,900	72,900
33BUWPV2139J1ZY	S-006	20-Apr	1,25,000	10,530	10,530
33AAFFN5770P1ZR	S-003	12-Apr	12,32,040	1,10,884	1,10,884
33AAFFN5770P1ZR	S-005	18-Apr	2,18,500	13,110	13,110

Report 5: GSTR-3B

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	14,00,000 + 1,80,000 + 8,10,000 + 1,25,000 + 12,32,040 + 2,18,500 = 39,65,540
3.1(b) Outward CGST	1,26,000 + 10,800 + 72,900 + 10,530 + 1,10,884 + 13,110 = 3,44,224
3.1(b) Outward SGST	3,44,224
4(A)(1) ITC Available (CGST)	2,70,000 + 94,500 + 48,000 = 4,12,500
4(A)(1) ITC Available (SGST)	4,12,500
5. Net CGST Payable	3,44,224 – 4,12,500 = (68,276) Credit
5. Net SGST Payable	(68,276) Credit

Part 10: Summary of All Transactions

No.	Date	Voucher	Description	Amount (₹)	Price Level Used
T0A	01-Apr	Receipt (F6)	Capital – Cash	4,00,000	N/A
T0B	01-Apr	Receipt (F6)	Capital – Bank	3,00,000	N/A
P1	02-Apr	Purchase (F9)	200 Smartphones	35,40,000	N/A
P2	04-Apr	Purchase (F9)	300 Office Chairs	12,39,000	N/A
P3	06-Apr	Purchase (F9)	1,000 Cotton Sarees	8,96,000	N/A
S1	08-Apr	Sales (F8)	60 Smartphones, 40 Chairs to ABC	16,52,000	Wholesale
S2	10-Apr	Sales (F8)	30 Smartphones, 20 Chairs to Krishna	9,55,800	Retail
S3	12-Apr	Sales (F8)	50 Smartphones, 60 Chairs to Dealer	14,53,808	Dealer
S4	15-Apr	Sales (F8)	200 Sarees to ABC	2,01,600	Wholesale
S5	18-Apr	Sales (F8)	250 Sarees to Dealer	2,44,720	Dealer
S6	20-Apr	Sales (F8)	3 Smartphones, 4 Chairs, 20 Sarees to Krishna	1,46,060	Retail
PR1	22-Apr	Receipt (F6)	From ABC Corp	10,00,000	N/A
PR2	24-Apr	Payment (F5)	To XYZ Ltd	20,00,000	N/A
PR3	25-Apr	Receipt (F6)	From Dealer Enterprises	8,00,000	N/A
PR4	26-Apr	Receipt (F6)	From Krishna Store	5,00,000	N/A
PR5	28-Apr	Payment (F5)	Rent + Salary	60,000	N/A

Part 11: Quick Reference for Students

Action	Path
Enable Price Levels	F11 → Inventory Features → Enable Multiple Price Levels = Yes
Create Price Level	Gateway → Create → Price Level
Create Price List	Gateway → Create → Price List (Stock Group)
Assign Price Level to Customer	Alter Customer Ledger → Price Level field
View Price List Report	Gateway → Display → Inventory Info → Price Lists
View GSTR-1	Display → Statutory Reports → GST → GSTR-1
View GSTR-3B	Display → Statutory Reports → GST → GSTR-3B
View Balance Sheet	Display → Balance Sheet

Price Level vs Price List:

Price Level = Customer category (Wholesale, Retail, Dealer)
Price List = Actual rates and discounts for items under each Price Level

How Tally Selects the Price:

You select a customer during Sales (F8)
Tally checks the customer’s assigned Price Level
Tally finds the Price List for that Price Level
Based on quantity entered, Tally applies the correct slab rate
If discounts are defined, Tally applies them and calculates GST on discounted value

Part 12: Common Errors and Solutions

Error	Cause	Solution
Price Level option not visible in F11	“Show more features” is OFF	Press F12 → Set “Show more features” to Yes
Price List not showing in Create menu	Multiple Price Levels not enabled	Enable “Enable Multiple Price Levels” in F11
Wrong rate applied in invoice	Customer has wrong Price Level assigned	Alter Customer Ledger → Correct Price Level
Discount not auto-calculating	Discount column not enabled	F11 → “Use Discount column in invoices” = Yes
GST calculated on MRP instead of discounted price	Discount ledger not configured	Set Discount ledger “Include in assessable value” = Yes

INTEREST CALCULATION IN TALLY PRIME

Part 1: What is Interest Calculation in Tally Prime?

Concept: Interest is a legitimate return on money invested or chargeable on delayed payments. Tally Prime automatically calculates interest on overdue invoices, loans, or bank overdrafts based on parameters you define.

Key Concepts:

Term	Definition
Simple Interest	Interest calculated only on the principal amount
Transaction-by-Transaction	Interest calculated per invoice, useful for bill-wise tracking
Interest Style	Basis for rate application (365-day year)
Grace Period	Days allowed after due date before interest starts

How Tally Calculates Interest:

Interest = (Outstanding Amount × Rate × Number of Days) ÷ 365

Part 2: GSTINs Used in This Module

GSTIN	State	Dealer Type	Role
`33AALCP2218B1ZX`	Tamil Nadu (33)	Regular Dealer	Your Company
`33AAFFN5770P1ZR`	Tamil Nadu (33)	Registered Customer	ABC Corp (will be charged interest)
`33BUWPV2139J1ZY`	Tamil Nadu (33)	Composition Dealer	Krishna Store
`33AABCT1234F1Z5`	Tamil Nadu (33)	Registered Supplier	XYZ Ltd (Supplier)

Part 3: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌────────────────────────────────────────────────────────────────┐
│ Field                         │ Value                          │
├────────────────────────────────────────────────────────────────┤
│ Name                          │ Interest Learning Co           │
│ Financial Year begins        │ 1-Apr-2025                     │
│ Books beginning from         │ 1-Apr-2025                     │
│ Base Currency                │ Indian Rupee (₹)               │
└────────────────────────────────────────────────────────────────┘

Step 2: Enable Interest Calculation Feature

Gateway of Tally → F11 (Features) → Accounting Features

┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Set to               │
├────────────────────────────────────────────────────────────────┤
│ Show more features                     │ Yes                   │
│ Show all features                      │ Yes                   │
│ Enable Interest Calculation            │ Yes                   │
│ Maintain Bill-wise Details             │ Yes                   │
└────────────────────────────────────────────────────────────────┘

Press Ctrl+A to save

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes                  │
│ State                                   │ Tamil Nadu           │
│ Registration Type                       │ Regular              │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX      │
│ Periodicity of GSTR-1                  │ Monthly              │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 4: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Electronics              │ Primary                            │
│ Furniture                │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Step 5: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                                │
├────────────────────────────────────────────────────────────────┤
│ Simple  │ Nos    │ Numbers                                    │
└────────────────────────────────────────────────────────────────┘

Step 6: Create Stock Items

Stock Item	Group	Unit	HSN	Selling Price (₹)	Purchase Price (₹)	GST Rate
Smartphone	Electronics	Nos	85171300	25,000	18,000	18%
Office Chair	Furniture	Nos	94013000	6,000	4,000	18%

For each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Smartphone
Under: Electronics
Unit: Nos
HSN/SAC: 85171300
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Part 4: Create Ledgers (Corrected as per your instructions)

Step 1: Create Tax Ledgers (Input)

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Step 2: Create Tax Ledgers (Output)

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Step 3: Create Sales and Purchase Ledgers (Corrected Groups)

Gateway of Tally → Create → Ledger
Name: Sales
Under: Sales Accounts

Name: Purchase
Under: Purchase Accounts

Step 4: Create Interest-Related Ledgers

Gateway of Tally → Create → Ledger
Name: Interest Received (Customer)
Under: Indirect Incomes

Name: Interest Paid (Supplier)
Under: Indirect Expenses

Name: Interest Receivable A/c
Under: Loans & Advances (Assets)

Step 5: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Group                               │
├────────────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand                       │
│ SBI Bank                 │ Bank Accounts                      │
│ Capital                  │ Capital Account                    │
│ Rent                     │ Indirect Expenses                  │
└────────────────────────────────────────────────────────────────┘

Step 6: Create Party Ledgers with Interest Configuration

Customer 1: ABC Corp (Will be charged interest on overdue payments)

Gateway of Tally → Create → Ledger
Name: ABC Corp
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

INTEREST PARAMETERS:
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Activate interest calculation          │ Yes                   │
│ Calculate Interest Transaction-by-Transaction │ Yes           │
│ Rate                                    │ 18% per annum        │
│ Interest Style                          │ 365-Day Year         │
│ Interest Balances                       │ Debit Balances Only  │
└────────────────────────────────────────────────────────────────┘

Customer 2: Krishna Store (Composition Dealer)

Gateway of Tally → Create → Ledger
Name: Krishna Store
Under: Sundry Debtors
GST Registration Type: Composition
GSTIN/UIN: 33BUWPV2139J1ZY
Maintain bill-wise details: Yes

INTEREST PARAMETERS:
┌────────────────────────────────────────────────────────────────┐
│ Activate interest calculation          │ Yes                   │
│ Calculate Interest Transaction-by-Transaction │ Yes           │
│ Rate                                    │ 15% per annum        │
│ Interest Style                          │ 365-Day Year         │
│ Interest Balances                       │ Debit Balances Only  │
└────────────────────────────────────────────────────────────────┘

Supplier: XYZ Ltd (Interest paid to supplier for late payment)

Gateway of Tally → Create → Ledger
Name: XYZ Ltd
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AABCT1234F1Z5
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

INTEREST PARAMETERS:
┌────────────────────────────────────────────────────────────────┐
│ Activate interest calculation          │ Yes                   │
│ Calculate Interest Transaction-by-Transaction │ Yes           │
│ Rate                                    │ 12% per annum        │
│ Interest Style                          │ 365-Day Year         │
│ Interest Balances                       │ Credit Balances Only │
└────────────────────────────────────────────────────────────────┘

Part 5: Opening Capital (via Receipt Voucher)

Transaction 0A: Capital in Cash via Receipt Voucher

Date: 01-Apr-2025

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ Cash → ₹3,00,000                   │
│ Credit                   │ Capital → ₹3,00,000                │
└────────────────────────────────────────────────────────────────┘

Transaction 0B: Capital in Bank via Receipt Voucher

Date: 01-Apr-2025

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Debit                    │ SBI Bank → ₹2,00,000               │
│ Credit                   │ Capital → ₹2,00,000                │
└────────────────────────────────────────────────────────────────┘

Total Capital Introduced: ₹5,00,000

Part 6: Purchase Transactions (Under Purchase Account)

Transaction P1: Purchase – Smartphones

Date: 02-Apr-2025
Party: XYZ Ltd
Bill No: P-001
Due Date: 02-May-2025

Item	Qty	Rate	Taxable (₹)
Smartphone	100	18,000	18,00,000
CGST 9%			1,62,000
SGST 9%			1,62,000
Total			21,24,000

Voucher: Purchase (F9)
Party: XYZ Ltd
Bill No.: P-001
Date: 02-Apr-2025
Due Date: 02-May-2025

Stock Item: Smartphone: Qty 100, Rate ₹18,000

Tax Ledgers:
  CGST @ 9% Input: ₹1,62,000
  SGST @ 9% Input: ₹1,62,000

Transaction P2: Purchase – Office Chairs

Date: 05-Apr-2025
Party: XYZ Ltd
Bill No: P-002
Due Date: 05-May-2025

Item	Qty	Rate	Taxable (₹)
Office Chair	200	4,000	8,00,000
CGST 9%			72,000
SGST 9%			72,000
Total			9,44,000

Voucher: Purchase (F9)
Party: XYZ Ltd
Bill No.: P-002
Date: 05-Apr-2025
Due Date: 05-May-2025

Stock Item: Office Chair: Qty 200, Rate ₹4,000

Tax Ledgers:
  CGST @ 9% Input: ₹72,000
  SGST @ 9% Input: ₹72,000

Part 7: Sales Transactions (Under Sales Account)

Transaction S1: Sale to ABC Corp

Date: 03-Apr-2025
Party: ABC Corp
Bill No: S-001
Due Date: 03-May-2025

Item	Qty	Rate	Taxable (₹)
Smartphone	50	25,000	12,50,000
CGST 9%			1,12,500
SGST 9%			1,12,500
Total			14,75,000

Voucher: Sales (F8)
Party: ABC Corp
Bill No.: S-001
Date: 03-Apr-2025
Due Date: 03-May-2025
Place of Supply: Tamil Nadu

Stock Item: Smartphone: Qty 50, Rate ₹25,000

Tax Ledgers:
  CGST @ 9% Output: ₹1,12,500
  SGST @ 9% Output: ₹1,12,500

Transaction S2: Sale to ABC Corp

Date: 10-Apr-2025
Party: ABC Corp
Bill No: S-002
Due Date: 10-May-2025

Item	Qty	Rate	Taxable (₹)
Office Chair	30	6,000	1,80,000
CGST 9%			16,200
SGST 9%			16,200
Total			2,12,400

Voucher: Sales (F8)
Party: ABC Corp
Bill No.: S-002
Date: 10-Apr-2025
Due Date: 10-May-2025

Stock Item: Office Chair: Qty 30, Rate ₹6,000

Tax Ledgers:
  CGST @ 9% Output: ₹16,200
  SGST @ 9% Output: ₹16,200

Transaction S3: Sale to Krishna Store

Date: 08-Apr-2025
Party: Krishna Store
Bill No: S-003
Due Date: 08-May-2025

Item	Qty	Rate	Taxable (₹)
Smartphone	20	25,000	5,00,000
CGST 9%			45,000
SGST 9%			45,000
Total			5,90,000

Voucher: Sales (F8)
Party: Krishna Store
Bill No.: S-003
Date: 08-Apr-2025
Due Date: 08-May-2025

Stock Item: Smartphone: Qty 20, Rate ₹25,000

Tax Ledgers:
  CGST @ 9% Output: ₹45,000
  SGST @ 9% Output: ₹45,000

Part 8: Payment and Receipt Transactions

Transaction PR1: Partial Payment from ABC Corp

Date: 15-Apr-2025
Details: ABC Corp paid ₹5,00,000 by cheque (partial payment for S-001).

Voucher: Receipt (F6)
Party: ABC Corp
Amount: ₹5,00,000
Mode: SBI Bank
Bill-wise: Select S-001, enter ₹5,00,000 as paid

Transaction PR2: Payment to XYZ Ltd

Date: 20-Apr-2025
Details: Paid ₹5,00,000 to XYZ Ltd by cheque (partial payment for P-001).

Voucher: Payment (F5)
Party: XYZ Ltd
Amount: ₹5,00,000
Mode: SBI Bank
Bill-wise: Select P-001, enter ₹5,00,000 as paid

Transaction PR3: Payment – Rent

Date: 25-Apr-2025

Voucher: Payment (F5)
Credit: SBI Bank → ₹15,000
Debit: Rent → ₹15,000

Part 9: Interest Calculation (After Due Date)

To see interest calculation, change date to 15-May-2025:

Gateway of Tally → F2 (Date) → Change to 15-May-2025
Display → Statements of Accounts → Interest Calculations → ABC Corp

Expected Output (as on 15-May-2025):

Bill No	Due Date	Outstanding (₹)	Overdue Days	Interest @18% (₹)
S-001	03-May-25	9,75,000	12 days	5,769.86
S-002	10-May-25	2,12,400	5 days	523.73
Total				6,293.59

For XYZ Ltd (Supplier):

Bill No	Due Date	Outstanding (₹)	Overdue Days	Interest @12% (₹)
P-001	02-May-25	16,24,000	13 days	6,941.92

Part 10: Book Interest Entries

Transaction I1: Interest Receivable from ABC Corp

Date: 15-May-2025

Voucher: Debit Note (Ctrl+F9)

Party: ABC Corp
Date: 15-May-2025

Debit: ABC Corp → ₹6,293.59
Credit: Interest Received → ₹6,293.59

Bill-wise Details:
- Select S-001
- Select S-002

Transaction I2: Interest Payable to XYZ Ltd

Date: 15-May-2025

Voucher: Credit Note (Ctrl+F8)

Party: XYZ Ltd
Date: 15-May-2025

Debit: Interest Paid → ₹6,941.92
Credit: XYZ Ltd → ₹6,941.92

Bill-wise Details:
- Select P-001

Part 11: Reports

Report 1: Trial Balance (Corrected)

Path: Gateway of Tally → Display → Trial Balance

Particulars	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	3,00,000	–
SBI Bank	1,85,000	–
ABC Corp	11,93,693.59	–
Krishna Store	5,90,000	–
Purchase	26,00,000	–
Rent	15,000	–
Interest Paid	6,941.92	–
CGST @ 9% Input	2,34,000	–
SGST @ 9% Input	2,34,000	–
XYZ Ltd	–	25,74,941.92
Sales	–	19,30,000
Interest Received	–	6,293.59
CGST @ 9% Output	–	1,73,700
SGST @ 9% Output	–	1,73,700
Capital	–	5,00,000
Total	53,58,635.51	53,58,635.51

Report 2: Balance Sheet (Corrected)

Path: Gateway of Tally → Display → Balance Sheet

Liabilities	₹	Assets	₹
Capital A/c	5,00,000	Current Assets
Current Liabilities		Cash	3,00,000
XYZ Ltd (Creditor)	25,74,942	SBI Bank	1,85,000
CGST Output Payable	1,73,700	ABC Corp (Debtor)	11,93,694
SGST Output Payable	1,73,700	Krishna Store	5,90,000
		CGST Input Credit	2,34,000
		SGST Input Credit	2,34,000
		Closing Stock	12,20,000
Total	34,22,342	Total	34,22,342

Closing Stock Calculation:

Stock Item	Purchase	Sold	Closing	Rate	Value
Smartphone	100	70	30	18,000	5,40,000
Office Chair	200	30	170	4,000	6,80,000
Total					12,20,000

Report 3: GSTR-1

Path: Display → Statutory Reports → GST → GSTR-1

GSTIN of Customer	Invoice No	Date	Taxable (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-001	03-Apr	12,50,000	1,12,500	1,12,500
33AAFFN5770P1ZR	S-002	10-Apr	1,80,000	16,200	16,200
33BUWPV2139J1ZY	S-003	08-Apr	5,00,000	45,000	45,000

Report 4: GSTR-3B (Corrected)

Path: Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
Outward Taxable Supplies	19,30,000
Outward CGST	1,73,700
Outward SGST	1,73,700
ITC Available (CGST)	2,34,000
ITC Available (SGST)	2,34,000
Net CGST Payable	Nil
Net SGST Payable	Nil
ITC Carry Forward (CGST)	60,300
ITC Carry Forward (SGST)	60,300

Part 12: Summary of All Transactions

No.	Date	Voucher	Description	Amount (₹)
T0A	01-Apr	Receipt	Capital – Cash	3,00,000
T0B	01-Apr	Receipt	Capital – Bank	2,00,000
P1	02-Apr	Purchase	100 Smartphones	21,24,000
P2	05-Apr	Purchase	200 Chairs	9,44,000
S1	03-Apr	Sales	50 Smartphones to ABC	14,75,000
S2	10-Apr	Sales	30 Chairs to ABC	2,12,400
S3	08-Apr	Sales	20 Smartphones to Krishna	5,90,000
PR1	15-Apr	Receipt	From ABC Corp	5,00,000
PR2	20-Apr	Payment	To XYZ Ltd	5,00,000
PR3	25-Apr	Payment	Rent	15,000
I1	15-May	Debit Note	Interest from ABC	6,293.59
I2	15-May	Credit Note	Interest to XYZ	6,941.92

Part 13: Quick Reference for Students

Action	Path
Enable Interest	F11 → Accounting Features → Enable Interest Calculation = Yes
Set Interest in Ledger	Create/Alter Ledger → Activate interest calculation = Yes
View Interest Report	Display → Statements of Accounts → Interest Calculations
Book Interest Receivable	Debit Note (Ctrl+F9)
Book Interest Payable	Credit Note (Ctrl+F8)

Part 1: What is Manufacturing Accounting in Tally Prime?

Concept: Manufacturing accounting tracks raw materials, work-in-progress, and finished goods, recording production through dedicated manufacturing journals .

Key Manufacturing Features in Tally:

Feature	Purpose
Bill of Materials (BOM)	Predefine raw materials required per finished unit
Manufacturing Journal	Records consumption of raw materials and production of finished goods
Stock Groups	Organize materials into Raw Materials, Work-in-Progress (WIP), and Finished Goods
Godowns	Track inventory across locations (Factory, Warehouse, WIP)

Manufacturing Flow (What You Will Practice):

Purchase Raw Materials → Consume via Manufacturing Journal → Produce Finished Goods → Sell Finished Goods

Part 2: GSTINs Used in This Module

GSTIN	State	Dealer Type	Role
`33AALCP2218B1ZX`	Tamil Nadu (33)	Regular Dealer	Your Company (Manufacturer)
`33AAFFN5770P1ZR`	Tamil Nadu (33)	Registered Customer	Client A
`33BUWPV2139J1ZY`	Tamil Nadu (33)	Composition Dealer	Client B
`07AAVCA0577E1ZH`	Delhi (07)	Registered Supplier	Delhi Steel Supplier
`33AABCR1718E1ZH`	Tamil Nadu (33)	Registered Supplier	Local Material Supplier

Part 3: Company Setup (One-time)

Step 1: Create New Company

Gateway of Tally → Create Company
┌────────────────────────────────────────────────────────────────┐
│ Field                         │ Value                          │
├────────────────────────────────────────────────────────────────┤
│ Name                          │ Manufacturing Learning Co      │
│ Financial Year begins        │ 1-Apr-2025                     │
│ Books beginning from         │ 1-Apr-2025                     │
│ Base Currency                │ Indian Rupee (₹)               │
└────────────────────────────────────────────────────────────────┘

Step 2: Enable Manufacturing Features

Gateway of Tally → F11 (Features) → Inventory Features

┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Set to               │
├────────────────────────────────────────────────────────────────┤
│ Use Bill of Materials                   │ Yes                   │
│ Maintain Multiple Godowns               │ Yes                   │
│ Enable Job Order Processing             │ No                    │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Explanation: Bill of Materials (BOM) is the core manufacturing feature. You define components of a finished product once, and Tally auto-consumes materials during production .

Step 3: Enable GST (Statutory Features)

Gateway of Tally → F11 (Features) → Statutory & Taxation
┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Enable Goods and Services Tax (GST)    │ Yes                  │
│ State                                   │ Tamil Nadu           │
│ Registration Type                       │ Regular              │
│ GSTIN/UIN                              │ 33AALCP2218B1ZX      │
│ Periodicity of GSTR-1                  │ Monthly              │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Step 4: Create Godowns (Storage Locations)

Gateway of Tally → Create → Godown
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Raw Material Godown      │ Primary                            │
│ WIP Godown               │ Primary                            │
│ Finished Goods Godown    │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Explanation: Godowns help track inventory at different stages. WIP (Work-in-Progress) godown tracks materials during production .

Step 5: Create Stock Groups

Gateway of Tally → Create → Stock Group
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Under                              │
├────────────────────────────────────────────────────────────────┤
│ Raw Materials            │ Primary                            │
│ Finished Goods           │ Primary                            │
└────────────────────────────────────────────────────────────────┘

Step 6: Create Units of Measurement

Gateway of Tally → Create → Unit
┌────────────────────────────────────────────────────────────────┐
│ Type    │ Symbol │ Formal Name                                │
├────────────────────────────────────────────────────────────────┤
│ Simple  │ Kg     │ Kilograms                                  │
│ Simple  │ Nos    │ Numbers                                    │
│ Simple  │ Litre  │ Litres                                     │
└────────────────────────────────────────────────────────────────┘

Step 7: Create Raw Materials Stock Items

Stock Item	Group	Unit	HSN	Purchase Price (₹)	GST Rate
Steel Rod (12mm)	Raw Materials	Kg	72142090	75	18%
Wooden Plank	Raw Materials	Nos	44079990	500	18%
Paint (White)	Raw Materials	Litre	32081090	250	18%
Screws (Box of 100)	Raw Materials	Nos	73181500	50	18%

For each Stock Item:

Gateway of Tally → Create → Stock Item
Name: Steel Rod (12mm)
Under: Raw Materials
Unit: Kg
HSN/SAC: 72142090
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Step 8: Create Finished Goods Stock Item with BOM

Step 8A: Create Finished Product

Gateway of Tally → Create → Stock Item
Name: Steel Chair
Under: Finished Goods
Unit: Nos
HSN/SAC: 94013000
GST Applicability: Applicable
Taxability Type: Taxable
GST Rate: 18%

Step 8B: Define Bill of Materials (BOM)

In the same Stock Item creation screen, press F12 and set “Show more configurations” to Yes. Then locate “Manufacturing Details” section :

┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Use Bill of Materials                   │ Yes                   │
│ Select BOM Name                         │ (Create New)          │
│ BOM Name                                │ Steel Chair BOM       │
└────────────────────────────────────────────────────────────────┘

Add Components:
┌────────────────────────────────────────────────────────────────┐
│ Component Item           │ Quantity per 1 Unit                │
├────────────────────────────────────────────────────────────────┤
│ Steel Rod (12mm)         │ 5 Kg                                │
│ Wooden Plank             │ 1 Nos                               │
│ Paint (White)            │ 0.5 Litre                           │
│ Screws                   │ 10 Nos                              │
└────────────────────────────────────────────────────────────────┘

Explanation: BOM defines what goes into making one unit of “Steel Chair” . This will auto-populate manufacturing journals.

Step 9: Create Tax Ledgers

Output Tax Ledgers (for Sales):

Gateway of Tally → Create → Ledger
Name: CGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: IGST @ 18% Output
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 18%

Input Tax Ledgers (for Purchases):

Name: CGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Central Tax
Rate: 9%

Name: SGST @ 9% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: State Tax
Rate: 9%

Name: IGST @ 18% Input
Under: Duties & Taxes
Type of Duty/Tax: GST
Tax Type: Integrated Tax
Rate: 18%

Step 10: Create Party Ledgers

Customer 1: Client A (Registered, Tamil Nadu)

Gateway of Tally → Create → Ledger
Name: Client A
Under: Sundry Debtors
GST Registration Type: Registered
GSTIN/UIN: 33AAFFN5770P1ZR
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

Customer 2: Client B (Composition Dealer, Tamil Nadu)

Name: Client B
Under: Sundry Debtors
GST Registration Type: Composition
GSTIN/UIN: 33BUWPV2139J1ZY
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

Supplier 1: Delhi Steel Supplier (Inter-state)

Name: Delhi Steel Suppliers
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 07AAVCA0577E1ZH
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

Supplier 2: Local Material Supplier (Tamil Nadu)

Name: Local Material Suppliers
Under: Sundry Creditors
GST Registration Type: Registered
GSTIN/UIN: 33AABCR1718E1ZH
Maintain bill-wise details: Yes
Set/Alter GST Details: Yes → Taxability Type: Taxable

Step 11: Create Other Ledgers

Gateway of Tally → Create → Ledger
┌────────────────────────────────────────────────────────────────┐
│ Name                     │ Group             │ GST            │
├────────────────────────────────────────────────────────────────┤
│ Cash                     │ Cash-in-Hand      │ N/A            │
│ SBI Bank                 │ Bank Accounts     │ N/A            │
│ Capital                  │ Capital Account   │ N/A            │
│ Sales - Steel Chair      │ Sales Accounts    │ Applicable     │
│ Purchase - Raw Materials │ Purchase Accounts │ Applicable     │
│ Manufacturing Expenses   │ Direct Expenses   │ N/A            │
│ Rent                     │ Indirect Expenses │ N/A            │
└────────────────────────────────────────────────────────────────┘

Part 4: Opening Capital (via Receipt Voucher as requested)

Transaction 0A: Capital in Cash

Date: 01-Apr-2025

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Field                    │ Value                              │
├────────────────────────────────────────────────────────────────┤
│ Debit                    │ Cash → ₹4,00,000                   │
│ Credit                   │ Capital → ₹4,00,000                │
│ Narration                │ Being capital introduced in cash   │
└────────────────────────────────────────────────────────────────┘

Transaction 0B: Capital in Bank

Date: 01-Apr-2025

Gateway of Tally → Voucher → Receipt (F6)

┌────────────────────────────────────────────────────────────────┐
│ Debit                    │ SBI Bank → ₹3,00,000               │
│ Credit                   │ Capital → ₹3,00,000                │
│ Narration                │ Being capital deposited in bank    │
└────────────────────────────────────────────────────────────────┘

Total Capital Introduced: ₹7,00,000

Part 5: Purchase Transactions (Raw Materials)

Transaction P1: Purchase – Steel Rods (Inter-state)

Date: 02-Apr-2025 Party: Delhi Steel Suppliers Bill No: P-001 Due Date: 02-May-2025

Item	Qty	Rate	Taxable (₹)
Steel Rod	1,000 Kg	75	75,000
Total Taxable			75,000
IGST 18%			13,500
Invoice Total			88,500

Voucher: Purchase (F9)
Party: Delhi Steel Suppliers
Bill No.: P-001
Date: 02-Apr-2025
Place of Supply: Delhi

Stock Item: Steel Rod: Qty 1,000 Kg, Rate ₹75

Tax Ledger:
  IGST @ 18% Input: ₹13,500

Transaction P2: Purchase – Local Raw Materials

Date: 05-Apr-2025 Party: Local Material Suppliers Bill No: P-002 Due Date: 05-May-2025

Item	Qty	Rate	Taxable (₹)
Wooden Plank	200 Nos	500	1,00,000
Paint (White)	100 Litre	250	25,000
Screws	500 Nos	50	25,000
Total Taxable			1,50,000
CGST 9%			13,500
SGST 9%			13,500
Invoice Total			1,77,000

Voucher: Purchase (F9)
Party: Local Material Suppliers
Bill No.: P-002
Date: 05-Apr-2025
Place of Supply: Tamil Nadu

Stock Items:
  - Wooden Plank: Qty 200, Rate ₹500
  - Paint: Qty 100 Litre, Rate ₹250
  - Screws: Qty 500, Rate ₹50

Tax Ledgers:
  CGST @ 9% Input: ₹13,500
  SGST @ 9% Input: ₹13,500

Transaction P3: Purchase – Additional Steel Rods

Date: 08-Apr-2025 Party: Delhi Steel Suppliers Bill No: P-003 Due Date: 08-May-2025

Item	Qty	Rate	Taxable (₹)
Steel Rod	500 Kg	75	37,500
IGST 18%			6,750
Invoice Total			44,250

Voucher: Purchase (F9)
Party: Delhi Steel Suppliers
Bill No.: P-003
Date: 08-Apr-2025
Place of Supply: Delhi

Stock Item: Steel Rod: Qty 500 Kg, Rate ₹75

Tax Ledger:
  IGST @ 18% Input: ₹6,750

Part 6: Manufacturing Transactions (Using Manufacturing Journal)

Transaction M1: Manufacture Steel Chairs (First Batch)

Date: 10-Apr-2025 Details: Manufacture 50 Steel Chairs using BOM “Steel Chair BOM”

BOM Requirement for 50 Chairs:

Component	Per Unit	For 50 Units
Steel Rod	5 Kg	250 Kg
Wooden Plank	1 Nos	50 Nos
Paint	0.5 Litre	25 Litre
Screws	10 Nos	500 Nos

Steps to Record Manufacturing Journal :

Gateway of Tally → Vouchers → Alt+F7 (Stock Journal) 
→ Switch to "Manufacturing Journal" mode (press F2 to toggle)

┌────────────────────────────────────────────────────────────────┐
│ Field                                   │ Value                │
├────────────────────────────────────────────────────────────────┤
│ Manufacturing Journal Type              │ Standard Production │
│ (Press F12 and set "Use BOM" = Yes)     │                      │
├────────────────────────────────────────────────────────────────┤
│ SOURCE (Raw Material Consumption):                            │
│   Steel Rod          │ Qty 250 Kg │ Rate 75 │ Godown: Raw Material│
│   Wooden Plank       │ Qty 50 Nos │ Rate 500│ Godown: Raw Material│
│   Paint (White)      │ Qty 25 Litre│ Rate 250│ Godown: Raw Material│
│   Screws             │ Qty 500 Nos│ Rate 50 │ Godown: Raw Material│
│                                                              │
│ DESTINATION (Finished Goods Produced):                       │
│   Steel Chair        │ Qty 50 Nos │ Rate (Auto)│ Godown: Finished │
└────────────────────────────────────────────────────────────────┘
Press Ctrl+A to save

Effect of Manufacturing Journal:

Raw material stock decreases by BOM quantities
Finished goods stock increases by 50 Chairs
Cost of production is auto-calculated
Inventory valuation updates automatically

Transaction M2: Manufacture Steel Chairs (Second Batch)

Date: 15-Apr-2025 Details: Manufacture 30 Steel Chairs using BOM

BOM Requirement for 30 Chairs:

Component	Per Unit	For 30 Units
Steel Rod	5 Kg	150 Kg
Wooden Plank	1 Nos	30 Nos
Paint	0.5 Litre	15 Litre
Screws	10 Nos	300 Nos

Voucher: Manufacturing Journal (Alt+F7)

Source (Consumption):
  - Steel Rod: Qty 150 Kg
  - Wooden Plank: Qty 30 Nos
  - Paint: Qty 15 Litre
  - Screws: Qty 300 Nos

Destination (Production):
  - Steel Chair: Qty 30 Nos

Total Chairs Produced: 80 (50 + 30)

Part 7: Sales Transactions (Finished Goods)

Transaction S1: Sale to Client A (Registered, Intra-state)

Date: 18-Apr-2025 Party: Client A Bill No: S-001 Due Date: 18-May-2025 Quantity: 40 Steel Chairs @ ₹1,800 each

Calculations:

Item	Qty	Rate	Taxable (₹)
Steel Chair	40	1,800	72,000
Total Taxable			72,000
CGST 9%			6,480
SGST 9%			6,480
Invoice Total			84,960

Voucher: Sales (F8)
Party: Client A
Bill No.: S-001
Date: 18-Apr-2025
Place of Supply: Tamil Nadu

Stock Item: Steel Chair: Qty 40, Rate ₹1,800

Tax Ledgers:
  CGST @ 9% Output: ₹6,480
  SGST @ 9% Output: ₹6,480

Transaction S2: Sale to Client B (Composition Dealer, Intra-state)

Date: 22-Apr-2025 Party: Client B Bill No: S-002 Due Date: 22-May-2025 Quantity: 25 Steel Chairs @ ₹1,800 each

Note: Composition dealer cannot collect GST, but you must charge GST as usual.

Calculations:

Item	Qty	Rate	Taxable (₹)
Steel Chair	25	1,800	45,000
CGST 9%			4,050
SGST 9%			4,050
Invoice Total			53,100

Voucher: Sales (F8)
Party: Client B
Bill No.: S-002
Date: 22-Apr-2025

Stock Item: Steel Chair: Qty 25, Rate ₹1,800

Tax Ledgers:
  CGST @ 9% Output: ₹4,050
  SGST @ 9% Output: ₹4,050

Transaction S3: Cash Sale (Additional)

Date: 25-Apr-2025 Details: Sold 10 Steel Chairs for cash to walk-in customer Quantity: 10 Steel Chairs @ ₹1,800 each

Voucher: Sales (F8)
Party: (Blank – cash sale)
Place of Supply: Tamil Nadu

Stock Item: Steel Chair: Qty 10, Rate ₹1,800

Tax Ledgers:
  CGST @ 9% Output: ₹1,620
  SGST @ 9% Output: ₹1,620

Account (Debit): Cash → ₹21,240

Part 8: Payment and Receipt Transactions

Transaction PR1: Customer Receipt from Client A

Date: 20-Apr-2025 Details: Received ₹50,000 from Client A by cheque

Voucher: Receipt (F6)
Party: Client A
Amount: ₹50,000
Mode: SBI Bank
Bill-wise: Select S-001, enter ₹50,000 as paid

Transaction PR2: Payment to Delhi Steel Suppliers

Date: 22-Apr-2025 Details: Paid ₹60,000 to Delhi Steel Suppliers by cheque

Voucher: Payment (F5)
Party: Delhi Steel Suppliers
Amount: ₹60,000
Mode: SBI Bank
Bill-wise: Select open bills

Transaction PR3: Payment to Local Material Suppliers

Date: 25-Apr-2025 Details: Paid ₹50,000 to Local Material Suppliers by cheque

Voucher: Payment (F5)
Party: Local Material Suppliers
Amount: ₹50,000
Mode: SBI Bank
Bill-wise: Select open bills

Transaction PR4: Payment – Rent and Expenses

Date: 28-Apr-2025 Details: Paid rent ₹20,000 and manufacturing expenses ₹15,000 by cheque

Voucher: Payment (F5)
Credit: SBI Bank → ₹35,000
Debit: Rent → ₹20,000
Debit: Manufacturing Expenses → ₹15,000

Part 9: Reports to Generate

Report 1: Stock Summary (Godown-wise and Stage-wise)

Path: Gateway of Tally → Display → Stock Summary

Expected Output:

Stock Item	Raw Material	WIP	Finished Goods	Total Qty	Value (₹)
Steel Rod	(1,000+500) – 250 – 150 = 1,100 Kg	–	–	1,100 Kg	82,500
Wooden Plank	200 – 50 – 30 = 120 Nos	–	–	120 Nos	60,000
Paint	100 – 25 – 15 = 60 Litre	–	–	60 Litre	15,000
Screws	500 – 500 – 300 = 300 Nos	–	–	300 Nos	15,000
Steel Chair	–	–	80 – 40 – 25 – 10 = 5 Nos	5 Nos	Cost value

Steel Chair Cost Calculation:

Component	Total Consumed	Total Cost (₹)
Steel Rod	250+150 = 400 Kg	30,000
Wooden Plank	50+30 = 80 Nos	40,000
Paint	25+15 = 40 Litre	10,000
Screws	500+300 = 800 Nos	40,000
Total Production Cost		1,20,000
Per Unit Cost		1,20,000 ÷ 80 = ₹1,500
Closing Stock Value	5 Nos × ₹1,500	₹7,500

Report 2: Trial Balance

Path: Gateway of Tally → Display → Trial Balance

Particulars	Debit (Dr.) ₹	Credit (Cr.) ₹
Cash	4,00,000 + 21,240 = 4,21,240	–
SBI Bank	3,00,000 + 50,000 = 3,50,000 – 60,000 – 50,000 – 35,000 = 2,05,000	–
Client A	84,960 – 50,000 = 34,960	–
Client B	53,100	–
Delhi Steel Suppliers	–	88,500 + 44,250 – 60,000 = 72,750
Local Material Suppliers	–	1,77,000 – 50,000 = 1,27,000
Purchase – Raw Materials	75,000 + 1,50,000 + 37,500 = 2,62,500	–
Manufacturing Expenses	15,000	–
Rent	20,000	–
Sales – Steel Chair	–	72,000 + 45,000 + 18,000 = 1,35,000
CGST @ 9% Output	–	6,480 + 4,050 + 1,620 = 12,150
SGST @ 9% Output	–	12,150
IGST @ 18% Output	–	0
CGST @ 9% Input	13,500	–
SGST @ 9% Input	13,500	–
IGST @ 18% Input	13,500 + 6,750 = 20,250	–
Capital	–	7,00,000
Total	Approx 10,34,050	10,34,050

Report 3: Balance Sheet

Path: Gateway of Tally → Display → Balance Sheet

Liabilities	₹	Assets	₹
Capital A/c	7,00,000	Current Assets
Current Liabilities		Cash	4,21,240
Delhi Steel Suppliers	72,750	SBI Bank	2,05,000
Local Material Suppliers	1,27,000	Client A	34,960
CGST Output Payable	12,150	Client B	53,100
SGST Output Payable	12,150	CGST Input Credit	13,500
		SGST Input Credit	13,500
		IGST Input Credit	20,250
		Stock on Hand	See below
Total	9,24,050	Total	9,24,050

Stock on Hand Details:

Stock Item	Qty	Value (₹)
Steel Rod	1,100 Kg	82,500
Wooden Plank	120 Nos	60,000
Paint	60 Litre	15,000
Screws	300 Nos	15,000
Steel Chair (Finished)	5 Nos	7,500
Total Stock		1,80,000

Report 4: Manufacturing Journal Report

Path: Gateway of Tally → Display → Inventory Books → Manufacturing Journal

Expected Output:

Date	Godown (Source)	Item	Qty	Value (₹)	Godown (Destination)	Item	Qty	Value (₹)
10-Apr	Raw Material	Steel Rod	250 Kg	18,750	Finished	Steel Chair	50 Nos	75,000
10-Apr	Raw Material	Wooden Plank	50 Nos	25,000
10-Apr	Raw Material	Paint	25 Litre	6,250
10-Apr	Raw Material	Screws	500 Nos	25,000
Total				75,000				75,000

Report 5: GSTR-1

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-1

B2B Invoices (Table 4A, 4B, 4C):

GSTIN of Customer	Invoice No	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
33AAFFN5770P1ZR	S-001	18-Apr	72,000	6,480	6,480
33BUWPV2139J1ZY	S-002	22-Apr	45,000	4,050	4,050

B2C (Small) Invoices (Table 7):

Invoice	Date	Taxable Value (₹)	CGST (₹)	SGST (₹)
Cash Sale	25-Apr	18,000	1,620	1,620

Report 6: GSTR-3B

Path: Gateway of Tally → Display → Statutory Reports → GST → GSTR-3B

Section	Amount (₹)
3.1(a) Outward Taxable Supplies	72,000 + 45,000 + 18,000 = 1,35,000
3.1(b) Outward CGST	12,150
3.1(b) Outward SGST	12,150
4(A)(1) ITC Available (CGST)	13,500
4(A)(1) ITC Available (SGST)	13,500
4(A)(1) ITC Available (IGST)	20,250
Net CGST Payable	12,150 – 13,500 = (1,350) Credit
Net SGST Payable	12,150 – 13,500 = (1,350) Credit
Net IGST Payable	0 – 20,250 = (20,250) Credit

Part 10: Summary of All Transactions

No.	Date	Voucher	Description	Amount (₹)
T0A	01-Apr	Receipt	Capital – Cash	4,00,000
T0B	01-Apr	Receipt	Capital – Bank	3,00,000
P1	02-Apr	Purchase	Steel Rod 1,000 Kg (Delhi)	88,500
P2	05-Apr	Purchase	Wood + Paint + Screws (Local)	1,77,000
P3	08-Apr	Purchase	Steel Rod 500 Kg (Delhi)	44,250
M1	10-Apr	Manufacturing Journal	Produce 50 Steel Chairs	75,000
M2	15-Apr	Manufacturing Journal	Produce 30 Steel Chairs	45,000
S1	18-Apr	Sales	40 Chairs to Client A	84,960
S2	22-Apr	Sales	25 Chairs to Client B	53,100
S3	25-Apr	Sales	10 Chairs (Cash Sale)	21,240
PR1	20-Apr	Receipt	From Client A	50,000
PR2	22-Apr	Payment	To Delhi Steel Suppliers	60,000
PR3	25-Apr	Payment	To Local Material Suppliers	50,000
PR4	28-Apr	Payment	Rent + Manufacturing Expenses	35,000

Part 11: Quick Reference for Students

Action	Path
Enable Manufacturing	F11 → Inventory Features → Use Bill of Materials = Yes
Create BOM for Finished Item	Create Stock Item → Manufacturing Details → Use BOM = Yes
Record Manufacturing	Vouchers → Alt+F7 (Stock Journal) → Switch to Manufacturing Journal
View Stock Summary	Gateway → Display → Stock Summary
View Manufacturing Journal	Gateway → Display → Inventory Books → Manufacturing Journal
View GSTR-1	Gateway → Display → Statutory Reports → GST → GSTR-1
View GSTR-3B	Gateway → Display → Statutory Reports → GST → GSTR-3B

Key Manufacturing Concepts:

Term	Definition
Bill of Materials (BOM)	Predefined list of raw materials required for one finished unit
Manufacturing Journal	Records consumption of raw materials and production of finished goods
Raw Material Stock	Unprocessed materials purchased from suppliers
WIP (Work-in-Progress)	Materials currently in production (tracked via godowns)
Finished Goods	Completed products ready for sale

Shopping cart

1) What is Accounting?

Simple Meaning

Real-life Example

Concept

2) Types of Accounts

3) Personal Account

Meaning

Example

Types of Personal Account

Natural Person

Artificial Person

Representative Person

4) Real Account

Meaning

Example

5) Nominal Account

Meaning

Example

6) Golden Rules of Accounting

Personal Account Rule

Real Account Rule

Nominal Account Rule

7) Debit & Credit Concept

8) Assets / Liabilities / Income / Expense

Assets

Liabilities

Income

Expense

Easy Formula

9) Journal Entry Basics

10) Ledger Concept

11) Trial Balance Concept

Module 2: Introduction to Tally Prime

2.1 What is TallyPrime?

2.2 Features of TallyPrime

2.3 Installation

2.4 Company Creation

2.5 Select Company / Shut Company

2.6 Alter Company

2.7 Backup & Restore

2.8 Security Control / Password

2.9 Company Split (Advanced)

Quick Reference Cheat Sheet for Students

Common Student Errors & Solutions

Module 3: Masters Creation

Groups & Ledgers: Complete Explanation

Part 1: What Are Groups? (The Big Picture)

Part 2: The 28 Pre-defined Groups in Tally (Memorize These)

Category A: Balance Sheet Groups (Assets)

Category B: Balance Sheet Groups (Liabilities & Equity)

Category C: Profit & Loss Groups (Expenses)

Category D: Profit & Loss Groups (Incomes)

Part 1: Balance Sheet Ledgers (Assets)

Current Assets (Liquid / Short-term)

Fixed Assets (Long-term)

Part 2: Balance Sheet Ledgers (Liabilities & Capital)

Current Liabilities (Short-term)

Long-term Liabilities

Capital & Reserves

Part 3: Profit & Loss Ledgers (Expenses)

Direct Expenses (Related to Purchase/Production)

Indirect Expenses (Operating Expenses)

Part 4: Profit & Loss Ledgers (Incomes)

Direct Incomes (Main Business Income)

Indirect Incomes (Other Incomes)

Part 3: Golden Rule of Groups (The Hierarchy)

Part 4: Creating Groups (Step-by-Step)

Simple Units of Measurement

Compound Units of Measurement

How to Create Units in Tally Prime (Step-by-Step)

Stock Groups to Create First

Part 2: Units of Measurement to Create First

Stock Items List (Entry Exercise)

Category A: Writing Instruments (Group: Writing Instruments)

Category B: Paper Products (Group: Paper Products)

Category C: Office Supplies (Group: Office Supplies)

Category D: Stationery Kits (Group: Stationery Kits)

Category E: Art & Craft (Group: Art & Craft)