Recording without Inventory Transactions in Tally.ERP 9 explained
Tally Accounting Software is designed to meet the requirements of the business people. In some business cases we don’t need to record the Inventory related transactions, and do not need to maintain the Stock Register. For instance, auditors will not handle the Physical Inventory they leave it on the owner’s shoulders as it is not mandatory for them in respect with the Statutory Filling of Accounts. They simply take the Opening and Closing Inventory figures for auditing. Hence, they record all the Accounting Transactions except inventory. And Tally supports it.
Recording Business Transactions in Tally.ERP 9 |
Now let us start recording the business transactions with a simple example and see the Trading, Profit and Loss Account and Balance Sheet of the firm.
Problem
On April 1st 2014, Mr. Venkkatesh started his business with a capital of Rs.1,00,000 in the name of AccountsGuy.Net. And he does not want to maintain Inventory as the business scope is very small and he is the sole person to handle his entire business, so there is no risk regarding the stock. And the Business Transactions for the April month as follows.
- 01/04/2014 – Given an advance of Rs. 9,000/- for Office.
- 04/04/2014 – Purchased Furniture worth Rs. 25,000/- for Office.
- 09/04/2014 – Opened Current Account at SBI with Rs.
- 45,000/- deposit.
- 13/04/2014 – Advance payment of Rs. 40,000/- to M/s Johnson Enterprises through Net Banking.
- 16/04/2014 – Purchases made from M/s Johnson Enterprises worth Rs. 35,000/-.
- 19/04/2014 – Cash Sales worth Rs. 10,000/-.
- 20/04/2014 – Rs. 18,000/- cash deposited at bank.
- 21/04/2014 – Sales worth Rs. 30,000/- made to Ms. K Leela Vathi.
- 23/04/2014 – Cheque Received from K Leelavathi worth Rs. 35,000/- bearing no. 355450 of Andhra Bank, Krishna Nagar Branch. Same on the same cheque presented at bank for clearance.
- 25/04/2014 – Sales Returns worth Rs. 5,000/- received from K Leelavathi.
- 27/04/2014 – Rs. 40,000/- cash directly deposited into bank by Mr. Smith.
- 28/04/2014 – Sales worth Rs. 30,000/- made to Mr. Smith.
- 29/04/2014 – Purchase Returns worth Rs. 3,000/-.
- 30/04/2014 – Office Maintenance worth Rs. 500/- paid.
- 30/04/2014 – Office Rent Rs. 2,000/- paid.
Record the above transactions in the books of M/s AccountsGuy.Net Company using the Tally.ERP 9 accounting package. And help him to know the profitability and financial position of his business after recording the voucher entries.
Solution
Now open Tally.ERP 9 application in your computer and create a company named AccountsGuy.Net with Accounts Only. After you have created the company load it and follow the below steps for recording the above said business transactions.
- Now you are in the Gateway of Tally screen.
- Create the following Ledgers with corresponding Groups.
- Capital Account under Capital Account Group.
- Furniture under Fixed Assets Group.
- Office Advance under Loans & Advances (Asset) Group.
- SBI Account under Bank Accounts Group.
- M/s Johnson Enterprises under Sundry Creditors Group.
- Purchases and Purchase Returns ledgers under Purchase Accounts Group.
- K. Leelavathi and Smith ledgers under Sundry Debtors Groups.
- Sales and Sales Returns ledgers under Sales Accounts Group.
- Office Maintenance and Office Rent under Indirect Expenses Group.
- After created the required ledgers just get back again to the Gateway of Tally menu.
- Choose Accounting Vouchers option.
- In the Accounting Voucher Creation screen press F2 key using the keyboard for setting the Voucher Date.
- Using the Button Area record the transactions cited in the problem section.
- F6: Receipt Voucher for recording Capital Brought into firm and first transaction.
- F7: Journal Voucher for recording second transaction.
- F4: Contra Voucher for third and forth transactions.
- F5: Payment Voucher for forth, ninth, fourteenth, and fifteenth transactions.
- F9: Purchase Voucher for fifth transaction.
- F8: Sales Voucher for sixth, eighth, and twelfth transactions.
- F8: Credit Note Voucher for tenth transaction.
- F9: Debit Note Voucher for thirteenth transaction.
In order to generate the financial report again get back to the Gateway of Tally menu change the period from 01-04-2014 to 30-04-2014 of the Books of Accounts in Tally.ERP 9 and Generate the Trail Balance, Profit and Loss Accounts and Balance Sheet of the company.