Unit I: Fundamentals of Accounts and Tally

Topic 1: Financial Accounting                                                                   

1. Personal account refers to a person or parties in a business transaction.
2. Real account refers to Cash, Goods, liability, property or assets of a business transaction.
3. Nominal account refers to a service transaction. i.e., incomes, expenses, Profit or Loss.
4. Loss due to fire, flood and theft is known as Abnormal Loss
5. Accounting period ranges from 1st April to 31st March.
6. Accounting is a scientific way of recording day to day transactions.
7. Accounts were maintained to find Profit or Loss, Assets and Liabilities of a business
8. Transaction is nothing but transfer of money, goods or services from one person to another.
9. Every transaction has two aspects. Debit Aspects & Credit Aspects.
10. Debit is benefit receiving aspect. Credit is benefit giving aspect.
11. Journal is also known as the Primary Book of Entry.
12. Compound voucher is a voucher which has more than one debit or credit.
13. Ledger show individual Account balance and their transactions.
14. Trial balance show debit balance and credit balance of all ledger accounts
15. Trial balance is used to check Ledger posting & Correctness of Accounts (Arithmetical Accuracy).
16. Profit & Loss account and Balance Sheet Shows the Net Profit or Net Loss of business.
17. Profit & Loss account is known as income and expenses account in non-profit organization.
18. Balance sheet summaries the Assets and Liabilities of a business on a particular date.
19. Capital (Owners’ Equity) is the only Fixed Liability for the business.
20. In a business, Assets = Liabilities + Capital (Owners’ Equity).

Topic 2: Tally

1. Tally is a Business Accounting Software.
2. Cash and Profit & Loss A/C Ledgers are auto generated during company creation
3. F4 key, Contra Voucher is used to record transfer of funds between bank accounts, cash to petty cash, Cash Deposit in to Bank and Cash withdraw from Bank via ATM or Cheque.
4. F5 key, Payment voucher to record All Expense, Purchase of Asset, Drawings & Loan Repayment.
5. F6 key, Receipt voucher to record All Incomes, Sales of Asset, Capital Receipts and Loan Receipt.
6. F7 key, Journal Voucher type records Non Cash Transaction, Assets credit purchase, Adjustment entries and entries with Profit & Loss A/c Ledger.
7. F8 key, Sales Voucher is used to record Sales of Goods for Cheque, Cash or Credit.
8. F9 key, Purchase Voucher is used to record Purchase of Goods for Cheque, Cash or Credit.
9. Accounting ledgers are mandatory to record transaction in TallyERP.9
10. There are 28 the Pre-Defined Groups in Tally with 15 Primary Groups and 13 Sub-Groups.
11. Capital Ledger, Drawings Ledger, Reserves & Surplus Group will come under Capital Account Group.
12. Mutual Fund, Good Will, Prepaid Salary, Bills Receivable will come under Current Assets Group.
13. Land and Building, Machinery ledger will come under Fixed Assets Group
14. Bank ledger will come under Bank Account Group
15. Bank loan ledger will come under Loan (Liabilities) / Current Liabilities Group
16. Bank Overdraft; when cash withdrawn from the bank exceeds the deposits in the bank.
17. Bank overdraft will come under Bank OD Account Group
18. Outstanding Liabilities ledger will come under Current Liabilities Group
19. Supplier ledger will come under Sundry Creditor Group
20. Non – Trading office Expenses, Depreciation Ledger will come under Indirect Expenses Group
21. Preliminary Expenses ledger will come under Misc. Expenses (Asset) Group

Topic 3: Computerised Accounting using Tally

1. Mailing Name field on the “Company Creation Screen” is formally used in preparing different reports.
2. By default, Tally Provides 5-Digit number (10000) to company.
3. There are 2 modes of voucher: Single Entry Mode & Double Entry Mode for recording payment, receipt and contra voucher.
4. There are 3 modes of voucher: as item invoice mode, Accounting invoice mode and as Voucher for recording Purchase and Sales entries.
5. Ctrl+ H is used to change voucher mode between Double Entry and single Entry or Item invoice, Accounting invoice and Voucher mode.
6. Petty Cash Book maintains Daily regular small expenditures which are not suitable to record in main cash book.
7. Press F3, to Create, Alter, Select or Shut Company from “Change Company” screen.
8. Press Ctrl + F3, to shut company and get to “Select Company” Screen.
9. Alt + F3 key is used to select an existing company from the list of companies.
10. Alt + D shortcut key to delete an unused Ledger / Stock Item / Stock Group etc.
11. Alt + P opens print menu it top menu bar in TallyPrime.
12. Ctrl + P is used to Print Current reports, invoice and payment voucher in TallyPrime.
13. Ctrl + A key combination is used to save the changes in ledgers and groups.
14. Alt + X key used to cancel a voucher which makes that transactions not included in accounts.
15. Alt + C key combination is used to create required masters at the time of making vouchers.
16. Ctrl + N short cut key is used to access and quit from calculator.
17. Shortcut to Quit Tally is Ctrl + Q.
18. Press Alt + F2, to set period for any report.
19. Press F2, to set Date for any entry or report.

Topic 4: Bank Reconciliation

1. Bank reconciliation helps to cross-verify its own books of accounts with the bank statement by just mentioning bank date with corresponding bank transaction amount.
2. Cash book is nothing but a subsidiary book which records all the cash and bank transactions.
3. Bank Pass Book / Statement are a copy of business account in the books of a bank.
4. If Company Bank Entries matches with the Transactions in Bank Statement. Then just mention Bank Dates in Bank Reconcile screen.
5. If Extra Transactions in Company Bank Entries. In case of repetition of same entry, delete the Unwanted Entry or Else Wait till it happens in Bank.
6. IF Extra Transactions in Bank Statement. Then record these Bank Entries and reconcile them also.
7. For reconciling bank entries in Tally, From Gateway of Tally > select Banking > select Bank Reconciliation > select the
8. Press Ctrl + Enter, to edit any entry in Bank reconciliation Screen.
9. Press Alt + J, to Create Voucher in Bank reconciliation screen for recording the extra transactions which are made directly in bank.
10. To view previously reconciled Transactions, Press Ctrl + B (Basis of Values) > select “include Reconciled Transactions” > press Enter key to change NO to YES.

Topic 5: Interest Calculation

1. Interest is a reasonable return on Money invested, Chargeable on loans and delayed payments.
2. Interest is calculated on simple and compound basis.
3. Interest is calculated on outstanding balance amounts / bills / invoices, receivable or payable.
4. Rate of interest can be set on ledgers for calculating interest as per requirements.
5. Interest receivable or interest payable can be viewed in statements of Accounts.

Unit II: Inventory Features

Topic 6: Inventory Management

1. FIFO – Stock Items purchased First are sold First (First In First Out)
2. LIFO – Stock Items purchased Last are sold First (Last In First Out)
3. UOM (Unit of Measures) is mandatory to create in inventory management.
4. UOM can have maximum of 4 decimal places.
5. When Unit of Measure is not selected in the Stock Item creation, then the cursor will skip Quantity & Rate field while entering opening stock or recording sales invoice in Tally.
6. “Simple Unit & Compound Unit” or “Simple Unit & Alternative Unit” combination can be used to measure a product in both Kilograms and Bags.
7. Stock Summary displays the transactions relating to buying and selling of goods that reports a stocks balance of business.
8. From Stock Summary Report, Use Ctrl + H or H: Change View, to view Monthly summary or Movement Analysis or Ageing Analysis from Related Reports.
9. Proforma invoice is a Preliminary invoice issued before actual sales invoice.

Topic 7: Godowns

1. Godowns are places where Items are stored safely till Production (or Purchases) to Sales.
2. Primary denotes a location or Godown (separate) situated far away from Shop.
3. Main Location is pre-defined default Godown for the company which can be used denotes stocks stored either in shop or Godown nearby the shop.
4. Godown Summary provides details of stock inward, outward and balance in each Godown.
5. Alt + F7, Stock Journal Voucher is used for Stock Adjustments like Inter – Godown Transfer, Dispose of Damaged or Expired Goods, Exchange of Products and Manufacturing Process.
6. Manufacturing journal is a voucher type based on Stock Journal which is used for recording manufacturing process.
7. Inter Godown transfer means transferring of goods from one Godown to another Godown.
8. Stock Journal (Transfer of Material) has two blocks: Source and Destination
9. Source is the location where products are actually being placed.
10. Destination is the location where products are transported and placed in new location.

Topic 8: Debit Note and Credit Note

1. Debit Note issued to a party for accounting Purchase Returns, Escalation/De-escalation in price, any other expenses paid on behalf of the party.
2. Credit Note is issued to a party for accounting Sales Returns, Escalation/De-escalation in price.
3. Alt + F5 Key combination is used to open Debit Note voucher for recording Purchase Return entries.
4. Alt + F6 Key combination is used to open Credit Note to record entries of Sales Return.
5. Damage or expired goods were needed to be disposed for proper inventory management.
6. For accounting, Damage or expired products fill name and quantity without rate in source block. Do not fill any thing in destination block.
7. Activate zero valued transactions for recording a sales invoice with free items.
8. Actual & Billed Quantity Column enables to provide free gift on products.
9. Actual Quantity is used to mention quantity of products delivered to party.
10. Billed Quantity is used to mention quantity of products how much need to be billed.
11. Profit and Loss Account Statement Report shows the actual purchase and actual sales after deducting the goods returned to and from purchase and sales made.
12. Movement Analysis Report Shows the Basic rate and Effective rate of inwards and outwards.
13. Additional expenses posted using Additional cost on Purchase features, do not affect the ledger accounts but updated to the cost of the Stock Item.

Topic 9: Order Processing

1. Order Processing helps in tracking and planning the production process by manufactures.
2. Order Processing helps in tracking both arrivals of goods ordered from supplier and also delivery of goods in time to customer.
3. Purchase Order placed with a supplier for the delivering the goods on time to customer.
4. Purchase Order can be placed only with a Supplier.
5. Ctrl + F9 key is used to make Purchase Orders in TallyPrime.
6. Sales Order is placed by a customer for the delivery of goods at a given price and on time.
7. Sales Order is received from Customer.
8. Ctrl + F8 key is used to make Sales Orders in TallyPrime.
9. Sales Orders Book shows overall sales order received from customer.
10. Purchase Orders Book shows overall Purchase order placed with supplier.
11. Sales Orders Outstanding shows pending sales orders to be delivered to customer.
12. Purchase Orders Outstanding shows pending Purchase orders to be collected from supplier.
13. Pre-Close of orders is to cancel Sales Order and Purchase Orders due to some reason. It is necessary to get accurate inventory reports.
14. For Better Sales, DEMAND and SUPPLY should be equal.
15. Reorder Level has two important options Reorder Quantity and Minimum Order Quantity.
16. There is no short fall in reorder status, do not need to place any order.
17. If there is any short fall in reorder status than need to place order for that product.
18. Contra, Payment, Receipt, Journal, Sales, Purchase, Debit Note and Credit Note are Accounting voucher.
19. Stock Journal, Purchase Order, Sales Order, Physical Stock Vouchers are Inventory voucher.

Topic 10: Price Levels & Price List

1. In Tally, Price Level is used to create offer schemes on goods.
2. Tally assists in creating quantity based pricing with complex discount structure using price list.
3. Price Lists are available only for inventory Items.
4. For discount column in purchase and sales invoice, use discount column in invoices option is activated in inventory features.
5. In sales invoice, set Price Level with a particular offer in order to activate discount according to that offer.
6. In sales invoice, set price level as not applicable to specify the desired discount rate for products.

Topic 11: Batch-Wise Details

1. Batch wise details are used in Pharmaceutical, Chemical, Food Industries and other industries dealing with perishable items.
2. Batch wise is used to maintain inventory in Batches or Lots by assigning numbers for identification.
3. Batches/Lots No. is used to monitor Date of Manufacture, Date of Receipt and Date of Expiry.
4. Batches help in finding expired or likely to expiry goods.
5. Likely to expiry goods can be moved them faster by offering discounts, issuing as free items, etc.
6. Ageing analysis helps to identify expired batches & aged batches for perishable (spoilable) goods
7. Batch wise details can be used on Stock Item.

Topic 12: Manufacturing Journal

1. Manufacturing Journal is used by manufactures and assemblers to account the issue of raw materials to production floor and manufacturing them to finished goods.
2. Specific quantity of finished goods can be manufactured by using the Bill of Materials.
3. BoM is specified only to a Stock Item (Final Product).
4. Manufacturing journal is predefined voucher in TallyPrime.
5. To open Manufacturing Journal, Press Alt + F7: Stock Journal > Ctrl + H: Change Mode > select Use for Manufacturing Journal.

Unit III: Accounting Features

Topic 13: Bill Wise Details

1. Main reason for maintaining accounts is to know the Receivable and Payable amount of the business.
2. Accounts Receivable (current asset) is the amounts owed to a company by its customers (Debtors).
3. Accounts Payable (current liability) is the amounts that a company owes to its suppliers (Creditors).
4. By Default, “Enable Bill-wise entry” option will be enabled.
5. Tally provides the user to maintain Bill by Bill accounting and obtain both Receivable & Payable report.
6. In Tally, Sundry Debtors and Sundry Creditors ledgers are supported by Bill- Wise Details.
7. A new credit purchase or credit sales is made with new reference in bill wise details.
8. When default allocation is enabled, new reference is selected by default for credit purchase & credit sales.
9. In bill wise details, against reference is selected on any payment or receipt is made against a credit purchase or credit sales.
10. On Account is used to Skip the Reference & adjust transaction manually.
11. Maintain balance bill by bill option need to be activated in Sundry Creditor and Sundry Debtor Ledger.
12. For Cash purchase, it’s mandatory to pay amount at the time of Purchase.
13. For Credit purchase, it’s not mandatory to pay amounts at the time of purchase.
14. Outstanding Receivable and Payable can be viewed at Gateway of Tally > Display More Reports >  Statements of Accounts > Outstanding > Receivables & Payables
15. Supplier and Customer transaction details, balance can be viewed at Gateway of Tally > Display More Reports > Account Books > Sundry Creditor or Sundry Debtor ledger.
16. Purchase Rs. 10,000. Cash paid Rs. 2,000 and Balance Payable =?
17. Sales Rs.1,60,000. Cheque received Rs. 60,000 and remaining amount on credit. Balance Receivable =?
18. Purchase Rs. 75,000. Cash paid Rs. 25,000 and Rs. 50,000 paid by Cheque. Balance Payable =?
19. Advance Received Rs. 90,000. 1st sales Rs. 60,000 and 2nd Sales Rs. 25,000. Balance Payable=?
20. Credit Limit refers to the maximum amount of credit to a customer on a Credit Sale.
21. After setting credit limit on a customer ledger, business cannot make sales above the specified credit limit.
22. Credit limit can be set on both Sundry Creditor & Sundry Debtor Ledgers.

Topic 14: Cost Centre Allocation

1. Cost Centre allows dimensional analysis of financial information.
2. Cost Category and Cost Centre were used to create classification in ledger accounts.
3. Cost centre is breaks up the ledger with one sublevel.
4. Cost centre along with cost category breaks the ledger with two sublevels.
5. Category Summary reports are based on Cost Category allocation over Cost Center.
6. Cost Centre Break-up reports are based on Cost Center allocation over Ledger.
7. Ledger Break-up reports are based on Ledger allocation over Cost Category with Cost Centre
8. Group Break-up reports are based on Accounting Groups allocation over Cost Category with Cost Centre

Topic 15: Budgets

1. Budget helps in planning and use of funds efficiently.
2. Budget aids to refine goals and reference for future planning.
3. Budget provides accurate information on financial activities for decision making.
4. Multiple budgets like Banks, Head offices, Departmental budgets can be created for specific purposes in TallyPrime.
5. The budgeted value compared with Actual value and variance report is generated.
6. Budget can be created on Groups, Ledgers and Cost Centres.
7. Budget Variance report can be viewed From Trial Balance.

Topic 16: Payroll Statement

1. Payroll helps in accounting simplified salary statement processing.
2. Payroll provides management Information and reports like Pay Slip, Payroll statements, Attendance, Overtime Registers, Gratuity and so on.
3. Payroll statement is a detailed form of a salary statement on each and every employee.
4. Any amount received by a person for work done / job rendered is “Salary” or “Wages” or “Pay”.
5. Basic pay is the base income of an employee paid before any reductions or increases due to overtime or bonus, allowances.
6. Allowance or Earnings means “any amount or sum allowed regularly” given along with the salary to employee.
7. Some of Allowances are Dearness Pay, Dearness Allowances, City Compensatory Allowances, Deputation Allowances, Overtime Allowances, House Rent Allowances, Conveyance Allowances, Medical Allowances, Entertainment Allowances, Traveling Allowances, Tribal or Hill Area Allowances and Children Education Allowances.
8. Deduction means “any amount presently deducted from the salary for the employee future benefits”.
9. Some of the deductions are Provident Fund, Employees State Insurance Corporation, Life Insurance Premium, Income Tax or TDS, Loans and Advances.
10. There are 6 Payroll Masters in Tally; Employees Group, Employees, Units, Attendance / Production Type, Pay Heads and Define Salary.
11. Attendance Voucher can be used by pressing F10: Other Vouchers in Voucher Creation Screen.
12. To view vertical Pay Slip, press Ctrl + H: Change View and select Vertical option in Pay slip screen.

Topic 17: Job Costing

1. In Tally, Job costing enables to track cost and revenue of each and every Transaction.
2. Job Costing can be applied on Interior Decoration, Construction, Architecture, Printing, etc.
3. Job Costing Ascertains profitability i.e., Net Profit / Loss for a particular Job or Project.
4. Job costing Provides summary of inventory movements and also allows tracking of consumption of materials at different locations
5. Job Costing process is Purchase > Manufacture > Expense > Sales > Job Work Analysis.
6. Alt + N: Auto Column option is used to compare the Job / Project.

Unit IV: Statutory and Taxations

Topic 18: Taxation

1. Tax is a financial charge which is imposed on a Taxpayer by government.
2. Taxpayer is an individual or legal entity, who pays the tax to government.
3. Tax is not a voluntary payment or donation, but an enforced contribution to legislative authority which is revenue for the government.
4. In India, Taxes are divided into two Direct and Indirect Taxes.
5. Direct tax, paid directly to the government by the (Tax Payer) persons on whom it is imposed.
6. Direct tax like Personal Income Tax, Corporate Income Tax, Property Tax.
7. Indirect taxes were collected by an intermediary from the Tax Payer. This intermediary later files and pays the tax to government.
8. Personal Income Tax is often collected on a pay-as-you-earn basis (Total Payroll).
9. Corporate Income Tax refers to income, capital, net worth of the company imposed on corporations.
10. A Property Tax (or Millage Tax) levy on the value of property that is required to pay to a government by the property owner.
11. Value Added Tax (VAT) the trader will collect the VAT on the product price, but will remit tax to the government only the excess of “Value Added”.
12. Goods and Services Tax (GST) levied on the value of supply of goods and services.

Topic 19: Tax Collected at Source

1. TCS, Tax Collected at Source by the seller (collector/lessor) from the buyer (collectee/lessee)
2. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote TAN allotted by the Income Tax Department (ITD) on all TDS and TCS returns.
3. TAN, Tax Deduction and Collection Account Number used to pay other’s Income Tax either by collecting or deducting.
4. PAN, Permanent Account Number used to pay our own Income Tax.
5. TAN (10-digit alpha numeric number): 4 Alphabets         5 Number            1 Alphabet
6. PAN (10-digit alpha numeric number): 5 Alphabets         4 Number            1 Alphabet
7. TCS has only one section (206C) to file TCS returns.
8. 1% TCS on Alcoholic liquors, Scrap, Minerals (coal, lignite, iron ore) and Motor Vehicle
9. 2% TCS on Parking lot, Toll plaza, Mining & Quarrying
10. 5% TCS on Timber or any other Forest Produce.
11. 5% TCS on Tendu Leaves, Overseas Tour Program Package, Remittance under LRS.
12. 5% TCS on Remittance under LRS for Education loan.
13. In case of non-furnishing of Aadhaar/PAN by collectee, TCS will be charged at Twice of the normal rate applicable or rate of 5%
14. 1% TCS on Sale of Goods. In case of NO PAN by collectee, 1% TCS will be charged.
15. Form 27EQ is used to file quarterly returns of TCS.
16. GSTR 8 Form is used to file TCS monthly Returns in GST Portal online.

Topic 20: Tax Deducted at Source

1. TDS, Tax Deducted at Source was introduced under Income Tax Act, 1961, with an objective of deducting the tax on an income.
2. TDS is Direct Tax but deducts income tax in indirect method.
3. TDS rate will be 20%, if No PAN or invalid PAN.
4. TDS rate on cash withdrawal is Nil. But if no PAN or invalid PAN, than TDS will be 20%.
5. TDS rate on Purchase of goods 0.10% (applicable w.e.f 01.07.2021) if Purchase value crosses Rs.  50,00,000 (50 Lakhs).
6. TDS certificate is a proof that buyer (Deductor) has deducted the tax and paid the same to the government.
7. TDS certificate Form 16 or 16AA, seller (Deductee) to claim credit of tax in his Income Tax returns.
8. GSTR 7 need to be filed within one month for the payment has been made.
9. Form 26Q (Quarterly) need to be filed in respect of payments other than salary.
10. Form 27Q (Quarterly) need to be filed in respect of payments to Non-residents.
11. TDS is applicable for the advance payment also.
12. TDS or TCS tax payment is made within 10th of next month.
13. Commission or Brokerage Rs. 5,00,000. Find out the TDS amount at 5%
14. Commission or Brokerage Rs. 5,00,000 at 5% TDS rate. Find out the total payment.

Topic 21: GST – Goods and Services Tax

1. GST (Goods and Services Tax), a single tax on supply, formed by eliminating many indirect taxes.
2. GST is destination based tax on consumption of goods and services.
3. GST helps to eliminate (remove) cascading effect on Tax Payment.
4. The Monthly Outward Supply (Sales) and Inward Supply (Purchase) to determine the Net Tax Liability or Tax carried forward to next month for a dealer.
5. Inward of any goods or service can be entered in Purchase invoice.
6. Outward of any goods or service can be entered in Sales invoice.
7. Input Tax is the amount of tax paid at the time of Purchase to the supplier.
8. Output Tax is the amount of tax collected at the time of Sales from the customer.
9. ITC (input Tax Credit), is the Tax paid at the time of Purchase (Input Tax) which is deducted from tax collected at the time of Sales (Output Tax).
10. GST PAYABLE = TAX LIABLE (Output Tax) – INPUT TAX CREDIT (Input Tax)
11. If Output Tax is more than Input Tax, than the balance Output Tax is the GST payable.
12. If Input Tax is more than Output Tax, than the balance Input Tax is the GST Refundable / Carried forward to next month.
13. Invoice Cross matching concept, recipient (Buyer) of a supply can avail ITC of the supply only on successful invoice matching under GST with the supplier (Seller).
14. Intra State Transactions are nothing but the transaction made within the state. Example, Puducherry to Puducherry.
15. Inter State Transactions are nothing but the transaction made between states. Example, Puducherry to Tamil Nadu.
16. For Intra State Transactions, CGST and SGST/UTGST will be mentioned in invoice.
17. For Inter State and import Transactions, IGST will be mentioned in invoice.
18. GST 3% is charged on Ornamental Jewels.
19. GST 5% is charged on Common & Regularly used items.
20. GST 12% & 18% are charged on Bulk and fast-moving consumer goods and services.
21. GST 28% is charged on Luxury Cars, Tobacco and Aerated Drinks.
22. Health & Education CESS 4% is charged in addition with some of the 28% goods supply.
23. In Tally, GST rate in Integrated Tax will be equally divided (bifurcates) as central Tax and State Tax.
24. B2C refers to Business to Consumer. B2B refers to Business to Business.
25. B2C L (Large) transaction above 2.5 lakhs. B2C S (Small) transaction below 2.5 lakhs.
26. Regular Dealer Threshold limit, if turnover exceeds 20 lakhs.
27. Regular dealers are required to file monthly return on 20th or 22nd or 24th of next month.
28. Composition Dealer threshold limit, if Aggregate turnover is above 20 lakhs* but does not exceed 1.5 Crores.
29. Composition dealer cannot claim input tax credit, can’t be an interstate Seller, cannot issue taxable invoices and can’t be an E-commerce Seller.
30. Composition dealers files only quarterly return.
31. Integrated input tax can be utilized with Integrated Output, Central Output and State Output.
32. GSTR 1 form is used to file outward supply of goods and services on or within 10^th of next month
33. GSTR 2 form is used to file inward supply of goods and services on or within 15^th of next month.
34. GSTR 3B form is used for Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax on or within 20th or 22nd or 24th of next month.
35. GSTR 4 form is used for Quarterly return on Composite quarterly turnover along with the payment of amount of tax on or within 18th of month succeeding quarter.
36. GSTR 7 form is used for Monthly return on authorities deducting tax at source.
37. GSTR 8 form is used for Monthly return on details of supplies affected through e-commerce operator and the amount of tax collected.
38. A registered dealer issues “Bill of Supply” for supply of “Exempted Goods” and “Tax Invoice” for supply of “Taxable Goods”.
39. HSN Code (Harmonized System of Nomenclature), 8 Digits number, is used to identify and recognized a product.
40. SAC Code (Services Accounting Code), 6 Digits number, starts with 99, is used to identify and recognized a Service.
41. GST implemented in India on 1^st July, 2017.
42. Goods and Services Taxpayer Identification Number (GSTIN) is PAN-based 15-digit number.
43. A company or person can have more than one GSTIN registration in a State.
44. CGST, SGST and IGST ledger will be created under Duties and Taxes.
45. Round off and Discount ledger will be created under Indirect Expenses.
46. JSON (Java Script Object Notation) format is used for Data Interchange.
47. Sales Register and Purchase Register report can be viewed in Accounts Books.
48. Tax Adjustments (Stat Adjustment) Entries are entered in Journal voucher by pressing Alt + J.
49. Tax Payments (Stat Payment) Entries are entered in Payment Voucher by pressing Alt + S.
50. Discount should be provided before GST by either mentioning discount in negative Percentage or amount.
51. POS (Point Of Sale) invoice is the proof of sale and also for customer it is the proof of purchase.
52. An e-Way Bill has to carry along by a transporter when transporting goods worth more than Rs. 50,000.
53. E-Way bill has a 12 digit number for identification.
54. Invoices, Kilometer, Transporter Id or Vehicle Number are required for preparing E-Way Bill.
55. 1% without ITC for Affordable Residential building.
56. 5% without ITC for Non- Affordable Residential building.
57. 5% without ITC and 12 % with ITC for Commercial Property.
58. Composite Supply is a combination of Goods and Services which are naturally bundled together.
59. Sold Computers GST rate @12% and installation services GST rate @ 5%. What is the GST rate in case of composite supply?
60. Supplied goods Rs. 60,400 at GST rate 5%. Total GST charged =?
61. Supplied goods worth Rs. 25,000 with Labour charges of Rs. 1,000 at GST rate 12%. Total GST charged =?
62. Goods sales value Rs. 10,00,000, Discount Rs. 10,000 on invoice and GST rate 5% on goods. GST charge =?
63. Service worth Rs. 25,000. Service failed to provide as per the terms & conditions Rs. 20,000 with GST @ 18%. What is the pending amount receivable?
64. Integrated Tax liability Rs. 5,000. Input Tax Credit of Rs. 2,000. Tax payable =?

Unit V: Financial Accounts, mis report and Security

Topic 22: Final Accounts

1. In Accounting, a final account Statement is comprised with Trading, Profit & Loss Account and Balance Sheet.
2. Income and Expenditure Statement or Trading and Profit and Loss Account to show the net results of the business.
3. Balance Sheet, to portray the financial position of the business.
4. Final accounts are prepared for a period of 1st April to 31st March.
5. In order to ascertain, the correct picture of the business adjustment need to be passed on expenses, income and fixed assets.
6. Journal entries passed to effect the required adjustments are known as adjustment entries.
7. Adjustment Entries are entered in Journal Voucher (F7) on 31st March (yearend).
8. Closing Stock ledger comes under Stock in Hand accounting group.
9. Prepaid Expenses, Accrued Income but not yet Received ledger will come under Current Assets group.
10. Outstanding Expenses, Income Received in Advance ledger will come under Current Liabilities group.
11. Depreciation on Fixed Assets, Bad Debts, Provision for Bad and Doubtful Debts, Provision for Discount on Debtors, Interest on Capital ledger will come under Indirect Expenses group.
12. Provision for Discount on Creditors, Interest on Drawings ledger will come under Indirect Income group.
13. Press Ctrl + F7: Physical Stock is used to enter the physical stock balance in Tally.
14. Year End Activities is compressed of Pass Adjustment Entries, Transfer Profit or Loss to Capital, Export all masters with Closing Balance to XML file, Create New Company and enable required Features and Import All Masters with Opening Balance from XML file.