TALLY 9.

Versions of Tally
1)
2)
3)
4)

Tally 4.5 Single user Tally Silver

Tally 5.4 Multiuser Tally Gold
Tally 6.3 Auditing
Tally 7.2 VAT, CST, etc.

5) Tally 8.1 Excise Duties, etc.

6) Tally 9.0 Payroll, Multilanguage
Tally was created in 1986 by S.S.Goenka. He was working in Peutronix Pvt. Ltd. At present its name is changed to
TallySolutions Pvt. Ltd.
To use tally you should know some accounting terms. Here is a list of some accounting terms.
ACCOUNTING TERMS
Assets All the properties of the business are known as assets.

Current Assets All the assets that can be easily converted into cash within one year are known
as current assets. For e.g. bank, cash, debtors, stock, prepaid expenses, etc.

Fixed Assets All the assets that are to be used in business for long period of time are known as
fixed assets
Liabilities All the money or moneys worth that is to be paid to outsiders are known as liabilities.

Current Liabilities All the money that is to be paid to outsiders within one year of time can be classified as
current liabilities. For e.g. Outstanding Exp, etc.

Capital The amounts invested by the owner in the business are known as capital. It is shown in liabilities
side of balance sheet.

Direct Expenses All the expenses that are incurred while making purchases or
manufacturing are direct expenses. For e.g. Freight, wages, etc.

Indirect Expenses All the expenses that are incurred for office purpose are known as
indirect expenses.

Drawings Any amount withdrawn by the owner for his personal use from the business is
known as Drawings. In tally, it is created under capital group itself.

Bad Debts This is the loss that is due to non receipt of the amount from any person that
he/she should have given us.

Depreciation This is the reduction in value of fixed assets due to its use.

Sundry Creditors All the persons who are going to receive some amount because of
services rendered to business are known as sundry creditors. For e.g. if we had purchased from Mr. A on credit, then
Mr. A is a creditor for our business.

Sundry Debtors All the persons who are going to give some amount to business
because of service received from our business are known as sundry Debtors. For e.g. if we sold to Mr. B on credit,
then Mr. B is a debtor for our business.

Interest on capital If we treat capital as a liability, then the interest on capital will be
treated as indirect expenses for the business.

Interest on Drawings Interest on drawings is treated as an income for the business. It is

created under indirect income in tally.

Prepaid Expenses These are the payments which are made in advance before they
have been incurred i.e advance payment of some expenses. Hence they are assets

Outstanding Expenses These are the expenses which should be paid but are not yet
paid. Hence they are liabilities.

To use tally, there are two steps:

1) Creation of Masters
2) Entering Vouchers

SHORTCUT KEYS

CTRL + N Activate Calculator

CTRL + M Deactivate Calculator
CTRL + A Save
F1

Select Company/Open Company

ALT + F1 Close Company/Shut Company (In Gateway of Tally)

F2

Change Current Date

ALT + F2 Change Current Period

ALT + F3 Company Info (Create Company, select companies, shut company, alter/delete company, backup, restore,
etc.)
F11

Company Features

F12

Tally Configuration

ALT + L Change Language

CTRL + V Invoice Format for Purchases / Sales.
ALT + P Print
ALT + D Delete
ALT + I Preview
ALT + Z Zoom
ALT + C Create ledger a/c while entering transactions (Secondary Ledger Creation)
ALT + F1 To view in details (In Reports)
Esc/Q Quit with option
CTRL + Q Quit without option

Creation of Ledger Accounts

To create ledger accounts in tally follow the following steps:
Gateway of Tally Accounts Info Ledgers Single Ledgers Create
In tally we have to create the ledger accounts under certain groups that are already created.
Ledgers

Bank A/c
Drawings
Furniture
Buildings
Plant & Machinery

Groups (In tally 28 Groups)

Capital
Bank A/c
Capital A/c
Fixed Assets
Fixed Assets
Fixed Assets

Capital A/c

Cash
Advertisement
Salaries
Rent
Discount given
Bank Charges
Depreciation
Bad Debts
Wages
Freight
Carriage Inwards
Outstanding Exp
Prepaid Exp
Investment in shares
Dividend
Bank Interest
Commission Received
Discount Received
Purchases
Sales
Purchases Return
Sales Return
Provisions

Cash-in-hand
Indirect Exp
Indirect Exp
Indirect Exp
Indirect Exp
Indirect Exp
Indirect Exp
Indirect Exp
Direct Exp
Direct Exp
Direct Exp
Current Liabilities
Current Assets
Investment
Indirect Incomes
Indirect Incomes
Indirect Incomes
Indirect Incomes
Purchases
Sales
Purchases
Sales
Provisions

How to enter Opening balances or balances of last year:

Gateway of Tally Accounts Info Ledgers Single Ledger Alter Enter Opening Balances
ACCOUNTING VOUCHERS

F4Contra Voucher This voucher is used when both cash and bank a/c are involved
in the same transaction like cash withdrawn from bank, cash deposited in bank, bank
to bank transfers, etc.
F5 Payment Voucher This voucher is used when we make payment to any party
whether that is cash payment or cheque payment. Purchases of fixed assets are also
entered through this voucher.
F6 Receipt Voucher This voucher is used when we receive some amount from
someone whether it is by cash or cheque. Sale of fixed assets is also entered through
this voucher.
F8 Sales Voucher This voucher is used when we make sales that is whether on
cash or credit. Sale of fixed assets is not entered through this voucher.
F9 Purchases Voucher This voucher is used when we make some purchases from
some person whether it is on credit or after payment. Purchases of fixed assets are not
entered through this voucher.

transactions which
cannot be entered in any of the above voucher . For e.g.

F7 Journal Voucher This voucher is used for the

outstanding exp, interest on capital, depreciation, discount received/given, etc.

CTRL + F8 Credit Note Sales Returns This voucher is used whenever there
are any sales returns. But before using this voucher it must be activated first.
CTRL + F9 Debit Note Purchases Returns This voucher is used whenever
there are any purchase returns. But before using this voucher it must be activated first.
Activate DEBIT/CREDIT Note
F11 Accounting Features Use Debit/Credit Notes YES CTRL + A
Modes of Voucher Entry
There are two modes of voucher entry:
a) Single Entry Mode In this mode Dr/Cr format is not used.
b) Double Entry Mode In this mode Dr/Cr format is used which is same like you enter journal entries.
Activate Single/Double Entry Mode
F12 Use Single Entry Mode for Pymt/Rcpt/Contra YES CTRL + A
Problem 1:

Anupama Co. started business with cash Rs. 2,00,000

Opened a bank account with HDFC Rs. 1,50,000
Purchased Furniture Rs. 25,000 by cash.
Paid Rent Rs. 5,000 by cheque.
Purchases from Kishan Rs. 50,000 on credit.
Sold to Mohan Rs. 1,20,000 on credit.
Purchases Returns Rs. 2,000
Sales Returns Rs. 5,000
Solution:
1) Create Anupama Co. (Accounts Only Mode) Create Company in ALT + F3
2) Create Ledger Accounts (Gateway Of Tally Accounts Info)
a. Capital Capital
b. HDFC Bank Accounts
c. Furniture Fixed Assets
d. Rent Indirect Expenses
e. Purchases Purchases
f. Kishan Sundry Creditors
g. Sales Sales
h. Mohan Sundry Debtorss
i. Purchases Returns purchases
j. Sales Returns Sales
3) Enter Transactions
a. F6
b. F4

c.
d.
e.
f.
g.
h.

F5
F5
F9 (CTRL + V)
F8
CTRL + F9 (Activate Debit/Credit Notes in F11)
CTRL + F8

BILLWISE DETAILS

By using this option we can

track all the transactions of a party (creditor or debtor).
This option is used if there are some links between the transactions we enter.

To Activate Billwise Details

F11 Accounting Features Use Billwise Details YES CTRL + A

After activating this option we get a new option while creating the creditors
or debtors ledger.
Here we get four options:
1) New Ref New Reference This option is selected when we enter into a fresh transaction with someone.

2) Agst Ref Against Reference This option is used when the present transaction has
a link with a previously entered transaction.
3) Advance If we receive advance from someone or give advance to someone then we can use this option.
4) On Account This option is used when we dont have the details of a transaction.
Problem 2:
1)
2)
3)
4)
5)
6)

Capital 1,00,000
Cash 1,00,000
Purchased goods from Mr. A Rs. 20,000
Paid to Mr. A Rs. 5,000
Purchased goods from Mr. A Rs. 10,000
Paid the balance amount to Mr. A

Solution:
1) Create a company (Accounts Only)
2) Create Ledger A/c
a. Capital Capital 1,00,000
b. Cash Cash in hand 1,00,000
c. Purchases Purchases
d. Mr. A Sundry Creditors (Maintain Billwise details YES )
3) Enter Transactions cash(Gateway of Tally Accounting Vouchers)

Problem:

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)

Capital 3,00,000
Cash 2,00,000
Furniture 1,00,000
Purchased from Rahul on credit. Rs. 30,000
Paid to Rahul by cash Rs. 10,000
Sold to Varun on credit Rs. 50,000
Received from Varun Rs. 30,000 by cash.
Purchased from Rahul on credit Rs. 20,000
Paid to Rahul the balance amount.
Sold to Varun Rs. 45,000
Received from Varun balance amount.

Problem 3:
Goodwill Co. started business with cash Rs. 5,00,000
Opened bank account with SBI Rs. 4,50,000
Purchased Plant & machinery Rs. 50,000 by cheque.
Paid Advertisement charges Rs. 5,000 by cheque.
Purchases goods from Ram Rs. 1,50,000 on credit.
Freight Rs. 1,000 by cash.
Sold goods to Rahim Rs. 2,50,000 on credit.
Depreciation on Plant & machinery @ 10%
Received amount from Rahim Rs. 1,50,000 by cheque.
Paid the balance amount to Ram by cheque.
Bank Interest Rs. 250
Solution:
1)
2) Create Goodwill Co. (Accounts Only)
3) Create Ledger Accounts (Account Info)
a. Capital Capital
b. SBI Bank Account
c. Plant & Machinery Fixed Assets
d. Advertisement Indirect Expenses
e. Purchases Purchases
f. Ram Sundry Creditors
g. Freight Direct Expenses
h. Rahim Sundry Debtors
i. Sales Sales
j. Depreciation Indirect Expenses
k. Bank Interest Indirect Incomes
4) Enter Transactions (Accounting Vouchers)
a. F6
b. F4
c. F5
d. F5

e.
f.
g.
h.
i.
j.
k.

F9 (CTRL + V)
F5
F8
F7 DR Depreciation CRPlant & Machinery
F6
F5
F6

Problem:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)

Rising Hope Co. started business with cash Rs. 5,00,000 and a Building worth Rs. 2,00,000
Opened bank account with Standard Chartered Bank (SCB) and deposited Rs. 4,50,000
Paid Telephone Deposit Rs. 10,000 by cash.
Paid electricity Rs.5,000 by cheque.
Purchased goods from Mr. Rao on credit Rs. 60,000
Commission Paid Rs. 2,000
Bank charges Rs. 500
Sold goods to Rahim on credit Rs. 1,30,000
Discount received from Mr. Rao 5%
Paid balance amount to Mr. Rao by cheque.
Received balance amount from Rahim after discount of Rs. 300

Problem:
1) Hon-lee started business with cash Rs. 4,00,000 , Furniture Rs. 50,000 and Plant & machinery Rs. 1,00,000.
2) Opened Bank account with Union Bank Rs. 2,50,000
3) Advertisement expenses Rs. 4000 by cash
4) Loan taken from Mr. Paisewala Rs. 6,00,000
5) Purchased goods Rs. 3,00,000 by cheque.
6) Paid Carriage Inwards Rs. 3500 by cash.
7) Insurance payable Rs. 600
8) Sold goods Rs. 5,10,000 to SunTech Co.
9) Paid Salaries Rs. 20,000 by cheque.
10) Paid pending Insurance amount by cash.
11) Received amount from SunTech Co. by Cheque No. 444345.
12) Paid to Mr. Paisewala Rs. 3,00,000 by cheque No. 778657.
Accounts with Inventory
To use inventory while creating a company select Maintain Accounts with inventory.
If the company is already created in Accounts Only mode then you can use the following steps;
ALT + F3 Alter Change to Account with Inventory CTRL + A

To create Inventory
Gateway of Tally Inventory Info
Units of Measure Create
Stock Group Create (If necessary)
Stock Items Create

Problem 4:
Capital 53,125
Cash 50,000
Fruits

Units

Qty

Rate

Banana
Pineapple

Doz
PCS

30
50

25
30

Kgs
Kgs

45
20

15
10

Vegetables
Potato
Tomato

Purchases following items by cash:

10 Kgs Tomato @ 15 and 10 Doz Banana @ 20

Sold following items by cash:

20 Kgs Tomato @ 20

15 Kgs Potato @ 25

20 Doz Banana @ 35

Problem 5:
Suresh Computers started business with cash Rs. 6,00,000 Furniture Rs. 30,000 and Andhra Bank Rs. 3,00,000
Cash deposited in Andhra bank Rs. 5,00,000
Paid Courier Expenses Rs. 2000 by cash
Distributed pamphlets 400 Copies @ 5 per copy.
Purchased a sign board Rs. 10,000 by cheque.
Bank interest Rs. 500
Investment in shares of Birla Cement Rs. 50,000 by cheque.
Depreciation on Furniture @ 5%
Purchases following items from Imran Computers on credit.
30 Nos Samsung Monitors @ 12,000
20 Nos HCL CPUs @ 15,000
30 Nos Logitech Keyboards @ 5,000
10 Nos Dell Laptops @ 35,000
Paid Freight Rs. 800 by cash.
Dividends received Rs. 5,000 by cheque.
Sold following items on credit to Sashi Computers.
20 Nos Samsung Monitors @ 16,000
10 Nos HCL CPUs @ 22,000
10 Nos Logitech Keyboards @ 8,000
5 Nos Dell Laptops @ 45,000
Provisions created Rs. 25,000
Bad Debts Rs. 2,000
Received from Sashi Computers balance amount by cheque.
Solution:

1) Create Suresh Computers (Accounts with Inventory)

2) Create Inventory Items (Gateway of Tally Inventory Info)
a. Units of Measure Nos
b. Stock Items Samsung Monitors, HCL CPUs, Logitech Keyboards & Dell Laptops.
3) Create Ledger Accounts (Gateway of Tally Accounts Info)
a. Capital Capital
b. Andhra Bank Bank A/c
c. Furniture Fixed Assets
d. Courier Expenses Indirect Expenses
e. Advertisement Indirect Expenses
f. Bank Interest Indirect Incomes
g. Investment in Birla Cement Investments
h. Depreciation Indirect Expenses
i. Purchases Purchases
j. Imran Computers Sundry Creditors
k. Freight Direct Expenses
l. Dividends Indirect Incomes
m. Sales Sales
n. Sashi Computers Sundry Debtors
o. Provision Provision
p. Bad Debts Indirect Expenses
4) Enter Transactions (Gateway of Tally Accounting Vouchers)
a. F7 Cash Dr., Furniture Dr., Andhra Bank Dr., Capital CR.
b. F4
c. F5
d. F5
e. F5
f. F6
g. F5
h. F7 Depreciation Dr., Furniture CR.
i. F9
j. F5
k. F6
l. F8
m. F7 Profit & Loss A/c Dr., Provisions CR.
n. F7 Bad Debts A/c Dr., Sashi Computers CR.
o. F6
Problem:

VALUE ADDED TAX (VAT)

VAT is the tax charged on purchases or sales within the state. Whenever we make any
purchases or sales VAT is charged on it.

Following are the two examples on implementation of VAT.

Before VAT

Suppose Tax rate = 10%

A 100 (Selling Price) 10 (Tax) 110
B 110 (Purchase Price) 40 (Profit) 150 (Selling Price)
15 (Tax) 165
C 165
After VAT
A 100 (Selling Price) 10 (Tax) 110
B 110 (Purchase Price) 40 (Profit) 150 (Selling Price) 15 (Tax Payable) 155
-10 (Tax on Purchases)
C 155
When We use VAT in tally, following concept is used:
Purchases Inputvat
Sales
Outputvat
But before using VAT in Tally it must be activated:
F11 Statutory & Taxation Enable Value Added Tax YES Set/Alter VAT details YES CTRL + A
TYPES OF RATES
Depending on the product that we are dealing, VAT rate will be applicable. For e.g
0% Newspaper, Indian Flags, etc.
1% Jewellery Items
4% Electronic Items, some food items, etc.
12.5 % Wooden articles, restaurants, etc. (At present increased to 14.5%)
Problem 6:
JJJ Jewellers started business with cash Rs. 15,00,000
Opened bank account with HDFC Rs. 12,50,000
Purchased vehicle Rs. 70,000 by cheque.
Paid Advertisement charges Rs. 5,000 by cheque.
Paid salaries Rs. 1,50,000 by cheque.
Salaries payable Rs. 10,000
Purchased following items on credit from Sha Jewellers in Hyderabad
30 Pcs Necklaces @ 20,000

25 Pcs Rings @ 8,200

40 Pcs Gemstones @ 5,000
(Vat Applicable)
Designing charges Rs. 50,000 by cheque.
Sold following items on credit to Mujtaba jewelers in Guntur.
20 Pcs Necklaces @ 35.000
20 Pcs Rings @ 13,000
20 Pcs Gemstones @ 8,500
(VAT Applicable)
Depreciation on vehicle @ 25%
Solution:
1) Create JJJ Jewellers Company (Accounts with inventory)
2) Activate VAT
3) Create Inventory Items (Gateway of Tally Inventory Info)
a. Units of Measure PCS
b. Stock Items Necklaces , Rings & Gemstones
4) Create Ledger Accounts (Gateway of Tally Accounts Info)
a. Capital Capital
b. HDFC Bank A/c
c. Vehicle Fixed Assets
d. Salaries Indirect exp
e. Advertisement Indirect Exp
f. Salaries Payable Current Liabilities
g. Purchases @ 1% Purchases
h. Inputvat@ 1% Duties & Taxes
i. Sales @ 1% Sales
j. Outputvat@ 1% Duties & Taxes
k. Designing Charges Direct Exp
l. Depreciation Indirect Exp
m. Sha Jewellers Sundry Creditors
n. Mujtaba Jewellers Sundry Debtors
5) Enter Transactions

CENTRAL SALES TAX (CST)

CST is the tax charged on purchases or sales from one state to another.
In tally the concept of CST is same as the concept of VAT.
First activate CST;
F11 Statutory & Taxation Enable VAT YES Set/Alter VAT Details YES CTRL + A
The rate of CST is 2 % if we use the forms that can be used to purchase or sell at 2% otherwise the rates are
higher. Hence the forms of CST are used to purchase the goods at concessional rate of 2%.
CST FORMS:

C Form This form is used by registered dealer to purchase the goods at concessional
rate of 2%

D Form This form is used by the govt. dept. to purchase goods at concessional rate of 2%
F Form This form is used by the company In case of transfer from one branch to another
of the same company.
H Form This form is used by the exporter to export goods at nil rate.
I Form This form is used by companies situated in Special Economic Zones (SEZ) to
purchase or sell at nil rate.

HOW TO CREATE CST LEDGERS

Sales @ cst2% Sales Inter State Sales
CST@2% Duties & Taxes CST Inter State Sales On total Sales
Problem 7:
Mukesh Furniture started business with cash Rs. 5,00,000
Opened bank account with HDFC Rs. 4,50,000
Paid Rent Rs. 25,000 by cheque.
Paid Registration Expenses Rs. 2,000 by cash.
Purchased following Items on credit from Den Furnitures in Hyderabad.
300 Pcs Chairs @ 600
100 Pcs Tables @ 2500
20 Pcs Computer Tables @ 1200
10 Pcs Almirah @ 4000
(Tax Applicable)
Transportation charges Rs. 2,400 by cheque.
Sold following items through cheque in Hyderabad.
200 pcs chairs @ 800
60 pcs tables @ 5000
10 pcs computer tables @ 2400
2 pcs almirah @ 8000
(Tax Applicable)
Bank Charges Rs. 500
Sold following items to Mujtab Furnitures on credit in Mumbai
50 Pcs Chairs @ 1200
5 Pcs Almirah@ 12000
(Tax Applicable)
Interest on capital @ 5%
Solution:
1) Create Mukesh Furnitures (account with inventory)
2) Activate VAT
3) Create Inventory Info
a. Units of Measure PCS
b. Stock Items Chairs, Tables, Computer Tables & Almirah
4) Create Ledger A/c
a. Capital Capital
b. HDFC Bank A/c
c. Rent Indirect Exp
d. Registration Exp Indirect Exp
e. Purchases@ 12.5% Purchases Used in VAT Returns YES

f. Inputvat@ 12.5% Duties & Taxes VAT

g. Den Furnitures Sundry Creditors
h. Sales@ 12.5% Sales Used in VAT Returns YES
i. Outputvat@ 12.5% Duties & Taxes VAT
j. Sales @CST2% Sales Used in VAT returns YES Inter state sales
k. CST @ 2% Duties & Taxes CST
l. Transportation charges Direct Exp
m. Bank Charges Indirect EXP
n. Mujtab Furnitures Sundry Debtors
o. Int on Capital Indirect Expenses
5) Enter Transactions (gate way of Tally Accounting Vouchers)

TAX DEDUCTION AT SOURCE (TDS)

There are certain payments made by the business on which tax should be deducted before payment to the party. The
tax deducted before payment to the party is the TDS.

First activate TDS:

F11 Statutory & Taxation Enable TDS YES Set/Alter TDS Details YES Enter the details CTRL + A
All the payments on which TDS should be deducted:
Gateway of Tally Display Statutory Info TDS Nature of Pymt
To use TDS in tally, we have to follow the four following steps after activating TDS in tally.
1)
2)
3)
4)

Booking of Expenses F7 Expenses A/c ..Dr. Party A/c Cr. (New Ref)
Deduction of Tax F7 ALT + S (TDS Filter) Select Party A/c
Payment to Party F5 Agst Ref
Payment to Govt F5 Agst Ref

For TDS in Tally, following ledgers are created:

TDS Payable Duties & Taxes
Party A/c Sundry Creditors (Is TDS applicable YES)
Expenses A/c Indirect Expenses
TDS REPORTS
Gateway of Tally Display Statutory Reports TDS Reports
1) Form 16A This form is prepared to give to the party on whose payment, the tax is deducted. The person can
use this form to file his IT return.
2) Form 27A This form is used to file the quarterly TDS return along with the ETDS file. This form gives details
of the no. of persons on whose payment TDS has been deducted.
3) ETDS Forms Usually this is in the format of Ms. Excel and it contains details of all the TDS deductions
made by us.

Problem 8:

Capital Capital 2,00,000

HDFC Bank A/c 2,00,000
Paid Rent to Janardhan Rs. 80,000 (TDS applicable)

Paid Audit Fees to Raghu C.A Rs. 1,20,000 (TDS Applicable)

Solution:
1) Create a company
2) Activate TDS
3) Create Ledger
a. Capital Capital
b. HDFC Bank A/c
c. Rent Indirect Exp
d. Janardhan Sundry Creditors
e. TDS @rent Duties & Taxes (Rent)
f. Audit Fee Indirect Expenses
g. Raghu C.A Sundry Creditors
h. TDS @ Audit Duties & Taxes (Fees for professional & Technical Services)
4) Enter Transaction (For Rent)
a. F7 Rent A/c DR. Janardhan A/c CR.
b. F7 Alt +s Select Janardhan
c. F5
d. F5
5) Enter Transaction (For Audit Fees)
a. F7 Audit Fee A/c ..Dr. Raghu C.A A/c .Cr
b. F7 Alt +s Select Raghu C.A
c. F5
d. F5

Problem 9:

Suncare Hospital started business with following items:

Cash Rs. 20,00,000
Medical Equipments Rs. 50,00,000
Furnitures Rs. 80,000
Buildings Rs. 20,00,000
Opened two current accounts with SCB & SBH Rs. 8,00,000 & 9,00,000 respectively.
Purchased 5 Ambulance Vehicles Rs. 5,00,000 by cheque of SCB.
Registration expenses Rs. 50,000 by cheque of SBH.
Marketing Expenses Rs. 28,000 by cheque of SBH.
Audit Fee to S&V Associates Rs. 80,000 by cheque of SBH. (TDS Applicable)
Provided following services to customers:
50 patients Medical Checkup @ 12,000
5 Open Heart Surgeries @ 3,00,000

Salaries Paid to Employees Rs. 6,50,000 by cheque of SBH.

Salaries Payable Rs. 50,000
Bank Interest Rs. 200 in SCB.
Problem 10:
Mukesh Furniture started business with cash Rs. 5,00,000
Opened bank account with HDFC Rs. 4,50,000
Paid Rent Rs. 75,000 by cheque to Reddy. (TDS Applicable)
Paid Registration Expenses Rs. 2,000 by cash.
Purchased following Items on credit from Den Furnitures in Hyderabad.

300 Pcs Chairs @ 600

100 Pcs Tables @ 2500

20 Pcs Computer Tables @ 1200

10 Pcs Almirah @ 4000

(Tax Applicable)
Transportation charges Rs. 2,400 by cheque.
Drawings Rs. 5,000
Sold following items through cheque in Hyderabad.

200 pcs chairs @ 800

60 pcs tables @ 5000

10 pcs computer tables @ 2400

2 pcs almirah @ 8000

(Tax Applicable)
Bank Charges Rs. 500
Sold following items to Mujtab Furnitures on credit in Mumbai

50 Pcs Chairs @ 1200

5 Pcs Almirah@ 12000

(Tax Applicable)
Interest on capital @ 5%
Interest on drawings @ 10%
Problem 11:
Bata showroom started business with cash Rs. 10,00,000 and furniture Rs. 50,000 and Buildings Rs. 5,00,000
Opened bank account with Axis bank Rs. 3,00,000 and HSBC Rs. 3,00,000 and Allahabad Bank Rs. 3,00,000
Marketing Exp payable to Southern Ads Rs. 30,000 by cheque of HSBC.(TDS Applicable)
Recruitment agencies charged Rs. 50,000 by cheque of AXIS BANK
Purchased following items from Shakti Shoes on credit in Hyderabad. (tax applicable)
a) Shoes
a. 500 Pcs size 9 @ 200
b. 500 Pcs size 8 @ 250
c. 500 Pcs size 7 @ 220
d. 500 pcs size 6 @ 210
b) Sandals
a. 500 Pcs size 9 @ 300
b. 500 Pcs size 8 @ 260
c. 500 PCs size 7 @ 210
d. 500 PCs size 6 @ 190
Paid Truck charges Rs. 5000 by cheque.

Sold following items to customers (tax applicable)

a) Shoes
a. 200 Pcs size 9 @ 350
b. 250 Pcs size 8 @ 450
c. 300 Pcs size 7 @ 500
b) Sandals
a. 300 Pcs size 9 @ 250
b. 300 Pcs size 8 @ 550
c. 400 Pcs size 6 @ 250
Bank Interest Rs. 300 in HSBC, 200 in Axis bank and 290 in Allahabad bank.
Promotion exp Rs. 500
Donation Rs. 200
Refreshment to customers and staff Rs. 3000
Investment in securities Rs. 20000 by cheque of Allahabad bank.
Dividends received Rs. 10,000 by cheque in Allahabad bank.
Insurance for business Rs. 500 to LIC by cash.
Salaries Payable Rs. 80,000