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Employee Salary Calculation — Formulas, Pay-Heads & Worked Example

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Why salary structure matters A well-planned salary structure does three big things: Statutory compliance – meets laws on PF, ESI, income-tax, professional-tax, gratuity, bonus, etc. Tax optimisation – splits pay into taxable and tax-free/reimbursable heads so employees take home more without raising company cost. Cost transparency – breaks “Cost-to-Company (CTC)” into fixed, variable and long-term benefits so budgeting and reporting are straightforward.   Key salary terms (glossary) Term What it represents Quick formula / rule CTC (Cost-to-Company) All annual money the employer spends on one employee, including statutory employer contributions & benefits CTC = Gross Pay + Employer PF + Employer ESI + Gratuity + Insurance + Perks Gross Pay Total earnings before employee-side deductions Gross = Sum of all earning heads (Basic, HRA, etc.) Net Pay / Take-Home Money credited to bank Net = Gross Pay – Employee PF – Employee ESI – Professional Tax – TDS – Other deductions Basic Salary Core earning, basis for many allowances & statutory deductions Often 35-60 % of Gross DA (Dearness Allowance) Inflation offset, common in public sector % of Basic HRA (House Rent Allowance) Helps with housing cost; partly tax-free Usually 40 % of Basic (non-metro) or 50 % (metro) Special / Flexi allowance Balances the structure so Gross aligns to budget Residual amount after all fixed heads Reimbursement Paid on bills—e.g., fuel, phone—mostly tax-exempt up to limits Actual spend (capped) Perquisite Non-cash benefit with cash value—e.g., car, ESOP Taxed as perquisite value   Common salary pay-heads Earnings (add to Gross Pay) Basic Salary Dearness Allowance (DA) House Rent Allowance (HRA) Conveyance Allowance Leave Travel Allowance (LTA) Medical Allowance / Medical Reimbursement Special / Supplementary / Flexi Allowance Food Coupons / Meal Allowance Overtime Pay Performance Bonus / Incentive Sales Commission Shift Allowance / Night Allowance Project Allowance / Site Allowance Uniform / Washing Allowance Child Education Allowance Internet / Mobile Phone Reimbursement Car / Driver Allowance Statutory Bonus (under Payment of Bonus Act) Ex-gratia   Employer contributions (part of CTC but not Gross) Employer Provident Fund (EPF) – 12 % of Basic (or of ₹15 000 ceiling in India if opted) Employer Employee State Insurance (ESI) – 3.25 % of Gross (if gross ≤ ₹21 000) Gratuity Accrual – 4.81 % of Basic (i.e., 15/26 × Basic × 1 year) National Pension System (NPS) / Superannuation Group Health / Term Insurance premium Leave Encashment Provision Company-paid Professional Development fund   Employee-side deductions Employee Provident Fund – 12 % of Basic (or 10 % in some orgs) Employee ESI – 0.75 % of Gross (if applicable) Professional Tax – slab-based (state law) Income-tax (TDS) – as per slab minus rebates/reductions Loan/Advance recovery (salary loan, festival advance) Voluntary NPS Contribution Union / Association subscription LIC premium through payroll, etc.   Core formulas you’ll encounter Component Typical formula / rule of thumb Basic 40 – 50 % of Gross (private sector); some MNCs keep 30 – 35 % to improve take-home DA Public sector: 38 % of Basic (rate revised twice yearly); Pvt. sector often “0” HRA Metro city: 50 % × Basic; Non-metro: 40 % × Basic Conveyance Allow. Fixed (e.g., ₹1 600 / month) or clubbed into special allowance after FY 2019 in India PF (Employee & Employer) 12 % × Basic (mandatory) or 12 % × ₹15 000 cap if employer chooses “PF on ceiling” ESI Employee 0.75 % × Gross, Employer 3.25 % × Gross (only if Gross ≤ ₹21 000) Gratuity 4.81 % × Basic (provision) Statutory Bonus 8.33 % of Basic (min) if Basic+DA ≤ ₹21 000 Professional Tax (India) ₹200 / ₹208 / ₹250 per month based on state slabs Income-tax (New Regime 2025-26) Slab: 0 % ≤ ₹3 L, 5 % ₹3-6 L, 10 % ₹6-9 L, 15 % ₹9-12 L, 20 % ₹12-15 L, 30 % > ₹15 L (rebate ≤ ₹7 L) Note: Adjust formulas to your jurisdiction—e.g., 401(k) match in the US, CPP/EI in Canada, NI in the UK, CPF in Singapore.   Step-by-step worked example Scenario Employee A joins an Indian IT firm in Bengaluru. Offer: CTC = ₹6 00 000 per annum (₹50 000 per month). Company follows “PF on actual Basic,” Gratuity provision, no ESI (income > ₹21 000). Pay-head Rule Monthly (₹) Basic 45 % of Gross 19 500 HRA 40 % of Basic 7 800 Special Allowance Balancing figure 20 200 Conveyance Allowance Fixed 1 500 Medical Insurance (Company group cover) Employer cost (CTC, not Gross) 500 Employer PF 12 % × Basic 2 340 Gratuity 4.81 % × Basic 938 Employer Cost to Company Sum above 50 000 (matches offer) Employee deductions Deduction Formula Monthly (₹) Employee PF 12 % × Basic 2 340 Professional Tax Karnataka slab (> ₹15 000) 200 Income-tax (New Regime) Approx. see below 1 910 Total deductions 4 450 Income-tax approximation Annual taxable income = Gross Pay – Std. Deduction (₹50 000) – Employer portion of NPS (none) – HRA exemption (assume employee pays ₹10 000 rent, metro). HRA exempt = least of: Actual HRA = 7 800 × 12 = 93 600 50 % of Basic = 50 % × (19 500 × 12) = 1 17 000 Rent – 10 % of Basic = (10 000 × 12) – 10 % × (19 500 × 12) = 1 20 000 – 23 400 = 96 600 → Exempt = 93 600 (least) Taxable HRA = 93 600 – 93 600 = 0. Taxable income ≈ 6 00 000 – 50 000 = 5 50 000 (falls under ₹7 L rebate zone → tax after rebate = ₹0). Yet surcharge & cess make monthly TDS ~₹0. (We used rough 1 910/month earlier to demonstrate deductions; with proper proof, TDS drops to 0.)   Net take-home pay Gross Pay = Basic + HRA + Special + Conveyance = ₹49 000 Net Pay ≈ Gross – Deductions = 49 000 – 4 450 ≈ ₹44 550   Designing a salary structure: best-practice checklist Keep Basic realistic – Too low violates PF

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TallyPrime Assignment 4: Inventory Master Create

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This assignment is designed to help you understand the Inventory Module of TallyPrime. You will learn how to manage stock by creating stock groups, categories, units, godowns, and stock items. Proper inventory setup is crucial for businesses involved in trading, manufacturing, and distribution.   Inventory Tasks Overview In this assignment, you will complete the following: Create 3 Stock Groups Create 3 Stock Categories Create 2 Units of Measure Create 2 Godowns Create 10 Stock Items with Quantity, Rate, and Amount   Task 1: Create Stock Groups Gateway of Tally → Create → Stock Groups S.No Stock Group Name Under Group 1 Electronics Primary 2 Mobile Accessories Primary 3 Home Appliances Primary   Task 2: Create Stock Categories Gateway of Tally → Create → Stock Categories S.No Stock Category Name 1 Branded 2 Non-Branded 3 Refurbished   Task 3: Create Units of Measure Gateway of Tally → Create → Units of Measure S.No Unit Name Type 1 Nos Simple 2 Box Simple     Task 4: Create Godowns Gateway of Tally → Create → Godowns S.No Godown Name Location 1 Main Warehouse Pune 2 Retail Store Mumbai   Task 5: Create 10 Stock Items Gateway of Tally → Create → Stock Items Select the proper Group, Category, Unit, Godown, Quantity, Rate, and Amount. S.No Item Name Group Category Unit Godown Quantity Rate (₹) Amount (₹) 1 Samsung LED TV Electronics Branded Nos Main Warehouse 5 25,000 1,25,000 2 Mi Smart TV Electronics Non-Branded Nos Retail Store 4 18,000 72,000 3 LG Washing Machine Home Appliances Branded Nos Main Warehouse 3 30,000 90,000 4 Vivo Charger Mobile Accessories Branded Nos Retail Store 10 500 5,000 5 Earphones – Boat Mobile Accessories Branded Nos Main Warehouse 8 1,000 8,000 6 Microwave – IFB Home Appliances Branded Nos Main Warehouse 2 12,000 24,000 7 Samsung Mobile A14 Electronics Branded Nos Retail Store 6 15,000 90,000 8 Refurbished Laptop Electronics Refurbished Nos Main Warehouse 3 20,000 60,000 9 Air Conditioner Home Appliances Branded Nos Main Warehouse 2 35,000 70,000 10 Power Bank – 10000mAh Mobile Accessories Non-Branded Nos Retail Store 7 1,200 8,400   Assignment Submission Guidelines Create all items, units, categories, and godowns in TallyPrime. Take screenshots of: One Stock Group One Stock Item with all details One Godown Submit a short write-up: “What I learned from Inventory Setup in TallyPrime” Email your screenshots and write-up to ankititsolutions2@gmail.com   Learning Outcome After completing this assignment, you will: Understand how inventory is organized in accounting software. Learn to create and manage items for retail or wholesale businesses. Be able to handle inventory setup in a real business environment.

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TallyPrime Assignment 3: Journal Entries in Accounting

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A Journal Entry is the first step in the accounting cycle. It records all financial transactions in the books of accounts in chronological order using the double-entry system. Each transaction has: At least one Debit At least one Credit Equal amounts on both sides   Golden Rules of Accounting Journal entries follow these three Golden Rules based on account types: Account Type Rule for Debit Rule for Credit Personal Account Debit the Receiver Credit the Giver Real Account Debit What Comes In Credit What Goes Out Nominal Account Debit All Expenses and Losses Credit All Incomes and Gains Tip: First identify the account type before passing a journal entry.   In this assignment, you will practice creating 30 basic journal entries used in accounting. Each entry includes a transaction and its correct journal entry answer. This will help you understand how financial transactions are recorded in a business through the double-entry system.   Instructions Read each transaction carefully. Identify which accounts are affected and apply the Golden Rules of Accounting. Write the correct journal entry with Dr (debit) and Cr (credit).   List of 30 Journal Entries with Answers S.No Transaction Journal Entry 1 Owner started business with ₹5,00,000 cash Cash A/c Dr ₹5,00,000 To Capital A/c ₹5,00,000 2 Purchased goods for ₹50,000 in cash Purchase A/c Dr ₹50,000 To Cash A/c ₹50,000 3 Sold goods for ₹70,000 in cash Cash A/c Dr ₹70,000 To Sales A/c ₹70,000 4 Paid rent ₹10,000 Rent A/c Dr ₹10,000 To Cash A/c ₹10,000 5 Received commission ₹5,000 Cash A/c Dr ₹5,000 To Commission Received A/c ₹5,000 6 Purchased furniture for ₹25,000 Furniture A/c Dr ₹25,000 To Cash A/c ₹25,000 7 Paid salary ₹20,000 Salary A/c Dr ₹20,000 To Cash A/c ₹20,000 8 Paid electricity bill ₹2,000 Electricity A/c Dr ₹2,000 To Cash A/c ₹2,000 9 Received interest ₹3,000 Cash A/c Dr ₹3,000 To Interest Received A/c ₹3,000 10 Goods sold on credit to Ramesh ₹40,000 Ramesh A/c Dr ₹40,000 To Sales A/c ₹40,000 11 Purchased goods on credit from Ram Traders ₹35,000 Purchase A/c Dr ₹35,000 To Ram Traders A/c ₹35,000 12 Paid Ram Traders ₹35,000 Ram Traders A/c Dr ₹35,000 To Cash A/c ₹35,000 13 Received ₹40,000 from Ramesh Cash A/c Dr ₹40,000 To Ramesh A/c ₹40,000 14 Withdrew cash for personal use ₹5,000 Drawings A/c Dr ₹5,000 To Cash A/c ₹5,000 15 Paid mobile expenses ₹1,000 Mobile Expense A/c Dr ₹1,000 To Cash A/c ₹1,000 16 Paid insurance premium ₹3,000 Insurance A/c Dr ₹3,000 To Cash A/c ₹3,000 17 Banked cash ₹50,000 Bank A/c Dr ₹50,000 To Cash A/c ₹50,000 18 Withdrawn cash from bank ₹10,000 Cash A/c Dr ₹10,000 To Bank A/c ₹10,000 19 Loan taken from SBI ₹1,00,000 Bank A/c Dr ₹1,00,000 To Loan from SBI A/c ₹1,00,000 20 Paid interest on SBI loan ₹5,000 Interest A/c Dr ₹5,000 To Bank A/c ₹5,000 21 Goods returned to supplier Ram Traders ₹2,000 Ram Traders A/c Dr ₹2,000 To Purchase Return A/c ₹2,000 22 Goods returned by Ramesh ₹3,000 Sales Return A/c Dr ₹3,000 To Ramesh A/c ₹3,000 23 Paid office rent by cheque ₹8,000 Rent A/c Dr ₹8,000 To Bank A/c ₹8,000 24 Received cheque from Suresh ₹15,000 Bank A/c Dr ₹15,000 To Suresh A/c ₹15,000 25 Paid advertisement expense ₹6,000 Advertisement A/c Dr ₹6,000 To Cash A/c ₹6,000 26 Paid audit fees ₹4,000 Audit Fees A/c Dr ₹4,000 To Cash A/c ₹4,000 27 Received refund from electricity office ₹500 Cash A/c Dr ₹500 To Electricity A/c ₹500 28 Received advance from customer ₹20,000 Cash A/c Dr ₹20,000 To Advance from Customer A/c ₹20,000 29 Deposited additional capital ₹1,00,000 Bank A/c Dr ₹1,00,000 To Capital A/c ₹1,00,000 30 Issued cheque for printing ₹1,500 Printing & Stationery A/c Dr ₹1,500 To Bank A/c ₹1,500 Assignment Submission Guidelines Write all 30 journal entries in your notebook or accounting register. Practice each entry in TallyPrime (Optional). Submit your completed work with your name and training batch. Email a photo or scanned copy of your work to ankititsolutions2@gmail.com   Learning Outcome By completing this journal entry assignment, you will: Understand real-world business transactions. Learn how to apply debit and credit rules correctly. Build confidence in recording journal entries. Prepare for ledger posting and trial balance generation.  

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TallyPrime Assignment No 2 – Ledger Master Creation with Example

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In this assignment, you will learn how to create various types of Ledgers in TallyPrime, which are essential for recording transactions. You will create 30 ledger accounts with correct group classifications and mention whether the amount is Debit (Dr) or Credit (Cr). This practical exercise will help you understand how to categorize ledger entries properly under appropriate accounting groups.   Step-by-Step Instructions to Create a Ledger Open your selected company in TallyPrime. From the Gateway of Tally, go to: Accounts Info → Ledgers → Create Enter the required details: Name of the Ledger Under Group (e.g., Capital Account, Sundry Debtors, etc.) Opening Balance and mention whether it is Dr (Debit) or Cr (Credit) Press Ctrl + A to save the ledger.   List of 30 Ledger Accounts to Create in TallyPrime S.No Ledger Name Group Under Opening Balance Dr/Cr 1 Cash Cash-in-Hand 50,000 Dr 2 Axis Bank Bank Accounts 1,00,000 Dr 3 Capital Account Capital Account 3,00,000 Cr 4 Purchase A/c Purchase Accounts 0 Dr 5 Sales A/c Sales Accounts 0 Cr 6 Rent Paid Indirect Expenses 15,000 Dr 7 Salary Expense Indirect Expenses 30,000 Dr 8 Electricity Expense Indirect Expenses 5,000 Dr 9 Mobile Expense Indirect Expenses 2,000 Dr 10 Commission Received Indirect Incomes 7,000 Cr 11 Interest Received Indirect Incomes 3,000 Cr 12 Furniture & Fixtures Fixed Assets 75,000 Dr 13 Computer Equipment Fixed Assets 1,20,000 Dr 14 Loan from SBI Bank Secured Loans 2,00,000 Cr 15 Loan from Friend Unsecured Loans 50,000 Cr 16 GST Output IGST Duties & Taxes 12,000 Cr 17 GST Output CGST Duties & Taxes 6,000 Cr 18 GST Output SGST Duties & Taxes 6,000 Cr 19 GST Input IGST Duties & Taxes 10,000 Dr 20 GST Input CGST Duties & Taxes 5,000 Dr 21 GST Input SGST Duties & Taxes 5,000 Dr 22 Ram Traders Sundry Creditors 40,000 Cr 23 Shyam Enterprises Sundry Creditors 25,000 Cr 24 Ramesh Kumar Sundry Debtors 60,000 Dr 25 Suresh Agencies Sundry Debtors 45,000 Dr 26 Printing & Stationery Indirect Expenses 3,000 Dr 27 Office Rent Indirect Expenses 10,000 Dr 28 Audit Fees Indirect Expenses 4,000 Dr 29 Miscellaneous Income Indirect Incomes 2,000 Cr 30 Drawings Capital Account 20,000 Dr   Assignment Submission Guidelines Create all 30 ledgers with proper groups and balances. Take screenshots of the creation screen for at least 5 different ledgers. Submit a short summary: “What I learned from Ledger Creation in TallyPrime.” Email your assignment to ankititsolutions2@gmail.com   Learning Outcome After completing this assignment, you will: Understand how to create ledger accounts in TallyPrime. Know how to select the correct group for each type of ledger. Learn the difference between debit and credit balances. Be able to prepare accounts for any type of business.  

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TallyPrime Assignment No. 1 – How to Create, Alter, and Delete Company in Tally

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Overview This is the first assignment for students learning Accounting and TallyPrime. In this task, you will learn how to create, alter, delete, and select companies in TallyPrime. These are the foundational skills every accountant must master to work efficiently with TallyPrime software. This assignment is designed and provided by Ankit IT Solutions – a leading provider of digital marketing and accounting training in India.   Task 1: Create Two Companies in TallyPrime Step-by-Step Instructions: Open the TallyPrime software. On the startup screen, click on “Create Company.” Fill in the following details for each company.   Method 2: Step-by-Step Instructions: Open the TallyPrime software. On GOT screen, press “Alt + F3″ Click on “Create Company.” Fill in the following details for each company.   Company 1: Smart Traders Pvt. Ltd. Company Name: Smart Traders Pvt. Ltd. Mailing Name: Smart Traders Pvt. Ltd. Address: 12, Station Road, Pune, Maharashtra – 411001 Country: India State: Maharashtra PIN Code: 411001 Telephone: 020-12345678 Email: info@smarttraders.com Financial Year Begins From: 01-Apr-2024 Books Begin From: 01-Apr-2024 Currency Symbol: ₹ Maintain Accounts Only: Yes   After entering all the information, press Ctrl + A to save.   Company 2: Future Tech Solutions Company Name: Future Tech Solutions Mailing Name: Future Tech Solutions Address: 5th Floor, Crystal Tower, Ahmedabad, Gujarat – 380015 Country: India State: Gujarat PIN Code: 380015 Telephone: 079-87654321 Email: contact@futuretech.in Financial Year Begins From: 01-Apr-2024 Books Begin From: 01-Apr-2024 Currency Symbol: ₹ Maintain Accounts Only: Yes Save this company by pressing Ctrl + A.   Task 2: Alter the Information of the Second Company Go to the Gateway of Tally and press Alt + F3 to access Company Info. Choose “Alter” and select “Future Tech Solutions.” Change the company details as shown below. Updated Details for Company 2: Company Name: Future Tech Innovations Pvt. Ltd. Address: 3rd Floor, Sapphire Complex, SG Highway, Ahmedabad – 380054 Telephone: 079-99887766 Email: support@ftinnovations.com After making the changes, press Ctrl + A to save the updated company information.   Task 3: Delete the First Company From the Gateway of Tally, press Alt + F3 and go to “Alter.” Select “Smart Traders Pvt. Ltd.” Press Alt + D to delete the company. Confirm the deletion when asked. Note: Deleting a company is permanent and cannot be undone. Be careful before you proceed.   Task 4: Select the Active Company From the TallyPrime startup screen, go to “Select Company.” Choose “Future Tech Innovations Pvt. Ltd.” from the list. Now you are working inside the selected company.   Assignment Submission Guidelines Take clear screenshots of each step: creating, altering, deleting, and selecting the company. Write a short summary of what you learned from this assignment in your own words. Submit your completed assignment to: ankititsolutions2@gmail.com   Learning Outcome After completing this assignment, you will have practical experience in: Creating multiple companies in TallyPrime Altering or updating company information Deleting a company safely and correctly Switching between multiple companies in TallyPrime These are essential skills for working as a Tally accountant or managing business data through TallyPrime.  

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Job Costing Manage in TallyPrime

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Job Costing is a method of costing where costs are assigned to a specific job project or batch. Each job is treated as a unique cost unit, and all related income and expenses are tracked to analyze profitability. Job Costing is used to track expenses and incomes related to a specific project, contract, or job. It helps to know the profit or loss for each job or project.  Enable Job Costing in TallyPrime  Press F11 → Accounting Features.  Set “Maintain cost centres” to Yes.  Set “Use cost centre for job costing” to Yes.  Press Ctrl + A to save.    Steps to Use Job Costing  Create Cost Centres (Jobs/Projects):  Go to: Gateway of Tally → Create → Cost Centres   Allocate Expenses and Income to Cost Centres  While passing any expense/income entry, Tally will ask: “Allocate to Cost Centre?”  View Report  Gateway of Tally → Display More Reports → Cost Centres → Cost Centre Break-up  It shows profit/loss for each project.    Assignment 1: Building Construction Project  You are handling a construction project for a client. You record purchases and services involved.  ➤ Create Cost Centre: Building Construction  Transaction  Amount  Voucher Type  Allocate to  Cement Purchase  ₹1,20,000  Purchase  Building Construction  Labour Charges  ₹50,000  Journal  Building Construction  Site Supervision Expense  ₹10,000  Payment  Building Construction  Payment Received from Client  ₹2,00,000  Receipt  Building Construction  Profit = ₹2,00,000 – ₹1,80,000 = ₹20,000    Assignment 2: Office Renovation Work  You manage renovation for a client’s office. The project includes furniture purchase and labour.  Step 1: Create Cost Centre – Office Renovation  Step 2: Record Entries:  Transaction  Amount  Voucher Type  Allocate to  Purchase of Furniture  ₹75,000  Purchase  Office Renovation  Labour Charges  ₹25,000  Journal  Office Renovation  Payment Received  ₹1,20,000  Receipt  Office Renovation  Task:  Record purchases and labour under Office Renovation.  Record income as Receipt.  Profit = ₹1,20,000 – ₹1,00,000 = ₹20,000    Assignment 3: Computer Lab Setup for College  You are setting up a computer lab in a college. The project includes buying systems and hiring an installation team.  Create Cost Centre: College Lab Setup  Transaction  Amount  Voucher Type  Allocate to  Purchase of 10 Computers  ₹3,00,000  Purchase  College Lab Setup  Installation Charges  ₹25,000  Journal  College Lab Setup  Network Cabling & Accessories  ₹15,000  Journal  College Lab Setup  Payment Received from College  ₹3,75,000  Receipt  College Lab Setup  Profit = ₹3,75,000 – ₹3,40,000 = ₹35,000    Job Costing Summary Table  Project Name  Total Expense  Total Income  Profit  Building Construction  ₹1,80,000  ₹2,00,000  ₹20,000  Office Renovation  ₹1,05,000  ₹1,25,000  ₹20,000  College Lab Setup  ₹3,40,000  ₹3,75,000  ₹35,000       

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500+ MCQs Questions and Answers on Accounting & TallyPrime with Highlighted Answers

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100+ MCQs Questions and Answers on Accounting & TallyPrime with Highlighted Answers 1.Which of the following is an example of an asset? A. Accounts Payable B. Capital C. Cash D. Sales 2.Which account is a personal account? A. Debtors B. Rent C. Machinery D. Wages 3.Which of the following is shown on the credit side of the trial balance? A. Purchases B. Drawings C. Capital D. Carriage Inward 4.Goods sold to Ram should be credited to: A. Sales A/c B. Ram’s A/c C. Purchase A/c D. Cash A/c 5.The rule for nominal accounts is: A. Debit all expenses and losses, credit all incomes and gains B. Debit what comes in, credit what goes out C. Debit the receiver, credit the giver D. None of the above 6.Outstanding rent is shown under: A. Assets B. Liabilities C. Capital D. Income 7.Which of these is not a current asset? A. Cash B. Debtors C. Building D. Stock 8.Depreciation is: A. Decrease in the value of asset B. Increase in asset C. Profit D. Reserve 9.Cash paid to creditors is recorded in: A. Journal B. Sales Book C. Cash Book D. Purchase Book 10.The balance of the Cash Book is always: A. Debit B. Credit C. Zero D. Negative 11.Purchase of machinery is recorded in: A. Sales Book B. Purchase Book C. Journal Proper D. Cash Book 12.Which of the following is real account? A. Salaries A/c B. Furniture A/c C. Ram’s A/c D. Commission A/c 13.Prepaid expenses are shown as: A. Assets B. Liabilities C. Income D. Capital 14.Drawings are deducted from: A. Assets B. Liabilities C. Capital D. Profit 15.Which of the following is not a nominal account? A. Rent B. Debtors C. Salary D. Commission 16.The trial balance is prepared to check: A. Arithmetical accuracy B. Financial position C. Errors of principle D. Fraud 17.Which book is used to record credit purchases of goods only? A. Sales Book B. Purchase Book C. Journal D. Ledger 18.Bank overdraft is a: A. Asset B. Liability C. Income D. Expense 19.Which account is affected when salary is paid in cash? A. Salary A/c and Cash A/c B. Capital A/c and Cash A/c C. Wages A/c and Bank A/c D. Rent A/c and Cash A/c 20.Wages paid for installation of machinery is: A. Revenue Expense B. Capital Expense C. Operating Expense D. Indirect Expense 21.Petty Cash is maintained under: A. Single Entry B. Imprest System C. Journal Proper D. None 22.Ledger is known as: A. Journal B. Principal Book of Accounts C. Final Account D. Trial Balance 23.Sales returns are recorded in: A. Purchase Book B. Sales Return Book C. Journal D. Cash Book 24.Which side of the Trial Balance will Capital appear? A. Debit B. Credit C. Both D. None 25.Goodwill is a: A. Current Asset B. Intangible Asset C. Liability D. Reserve 26.Amount received from debtors is recorded in: A. Purchase Book B. Cash Book C. Journal D. Ledger 27.Trade discount is shown in: A. Cash Book B. Invoice only C. Journal D. Trial Balance 28.The account which is prepared to know the net profit or loss is: A. Balance Sheet B. Profit & Loss A/c C. Trading A/c D. Journal 29.Rent received in advance is a: A. Asset B. Liability C. Income D. Expense 30.Capital introduced by the owner is credited to: A. Capital A/c B. Liability C. Income D. Expense 31.A cash sale of goods to Mohan should be recorded in: A. Sales Book B. Journal Proper C. Cash Book D. Purchase Book 32.Purchase of furniture for office use is recorded in: A. Purchase Book B. Sales Book C. Journal Proper D. Cash Book 33.Outstanding salary is classified as: A. Asset B. Liability C. Income D. Expense 34.Goodwill is classified as: A. Tangible Asset B. Intangible Asset C. Current Asset D. Liability 35.If purchase is made for cash, which account is credited? A. Purchase A/c B. Cash A/c C. Sales A/c D. Bank A/c 36.Which account is debited when furniture is purchased? A. Purchase A/c B. Furniture A/c C. Cash A/c D. Sales A/c 37.Return of goods purchased is recorded in: A. Sales Book B. Purchase Return Book C. Journal Proper D. Cash Book 38.The balance of a real account is carried to: A. Trading A/c B. Profit & Loss A/c C. Balance Sheet D. Journal 39.The discount allowed to debtors is recorded in: A. Purchase Book B. Sales Book C. Journal Proper D. Cash Book 40.Capital Expenditure is recorded in: A. Balance Sheet B. Trading A/c C. Profit & Loss A/c D. None of these 41.Which of the following is a revenue expenditure? A. Repair to machinery B. Purchase of building C. Purchase of plant D. Purchase of patent 42.The balance of the Sales A/c is transferred to: A. Profit & Loss A/c B. Trading A/c C. Balance Sheet D. Cash Book 43.Carriage inward is added to: A. Purchases B. Sales C. Capital D. Expenses 44.Which account is debited for commission paid? A. Cash A/c B. Commission A/c C. Bank A/c D. Capital A/c 45.Rent paid is an: A. Asset B. Income C. Expense D. Liability 46.Insurance premium paid is shown under: A. Income B. Expense C. Liability D. Asset 47.Carriage outward is a part of: A. Purchases B. Cost of Goods Sold C. Trading A/c D. Profit & Loss A/c 48.A machine was purchased for cash. Which accounts are affected? A. Purchase A/c and Cash A/c B. Machinery A/c and Cash A/c C. Sales A/c and Bank A/c D. Machinery A/c and Capital A/c 49.What is the nature of the Capital A/c? A. Personal Account B. Real Account C. Nominal Account D. Expense Account 50.Cash deposited into Bank is recorded in: A. Purchase Book B. Cash Book C. Journal Proper D. Sales Book 51.Bank charges are recorded on the: A. Debit side of the Cash Book B. Credit side of the Cash Book C. Both sides D. Not recorded 52.Goods withdrawn by the proprietor for personal use are debited to: A. Drawings A/c B. Purchases A/c C.

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500 Popular Ledger Names with Group in TallyPrime

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Sr No Ledger Name Group Under Type of Account Accounting Type 1 Cash Cash-in-Hand Asset Real 2 HDFC Bank Bank Accounts Asset Personal 3 ICICI Bank Bank Accounts Asset Personal 4 SBI Bank Bank Accounts Asset Personal 5 Axis Bank Bank Accounts Asset Personal 6 Bank of Baroda Bank Accounts Asset Personal 7 Punjab National Bank Bank Accounts Asset Personal 8 Kotak Mahindra Bank Bank Accounts Asset Personal 9 ABC Traders Sundry Debtors Asset Personal 10 XYZ Enterprises Sundry Debtors Asset Personal 11 Global Solutions Pvt Ltd Sundry Debtors Asset Personal 12 Sunrise Agencies Sundry Debtors Asset Personal 13 Bharat Electronics Sundry Debtors Asset Personal 14 Om Sai Traders Sundry Debtors Asset Personal 15 Universal Sales Sundry Debtors Asset Personal 16 PQR Suppliers Sundry Creditors Liability Personal 17 LMN Wholesalers Sundry Creditors Liability Personal 18 Ganesh Enterprises Sundry Creditors Liability Personal 19 National Distributors Sundry Creditors Liability Personal 20 Rainbow Suppliers Sundry Creditors Liability Personal 21 Excel Traders Sundry Creditors Liability Personal 22 Sales – Local Sales Accounts Income Nominal 23 Sales – Interstate Sales Accounts Income Nominal 24 Sales – Export Sales Accounts Income Nominal 25 Commission Received Indirect Incomes Income Nominal 26 Interest Received Indirect Incomes Income Nominal 27 Discount Received Indirect Incomes Income Nominal 28 Rent Expenses Indirect Expenses Expense Nominal 29 Electricity Charges Indirect Expenses Expense Nominal 30 Telephone Expenses Indirect Expenses Expense Nominal 31 Internet Charges Indirect Expenses Expense Nominal 32 Stationery Expenses Indirect Expenses Expense Nominal 33 Printing & Stationery Indirect Expenses Expense Nominal 34 Office Maintenance Indirect Expenses Expense Nominal 35 Legal Fees Indirect Expenses Expense Nominal 36 Audit Fees Indirect Expenses Expense Nominal 37 Conveyance Expenses Indirect Expenses Expense Nominal 38 Travel Expenses Indirect Expenses Expense Nominal 39 Advertisement Expenses Indirect Expenses Expense Nominal 40 Postage & Courier Indirect Expenses Expense Nominal 41 Insurance Charges Indirect Expenses Expense Nominal 42 Bank Charges Indirect Expenses Expense Nominal 43 Freight Inward Indirect Expenses Expense Nominal 44 Freight Outward Indirect Expenses Expense Nominal 45 Donation Paid Indirect Expenses Expense Nominal 46 Charity Paid Indirect Expenses Expense Nominal 47 Loss on Sale of Assets Indirect Expenses Expense Nominal 48 Depreciation Indirect Expenses Expense Nominal 49 Bad Debts Indirect Expenses Expense Nominal 50 Provision for Bad Debts Indirect Expenses Expense Nominal Sr No Ledger Name Group Under Type of Account Accounting Type 51 Outstanding Expenses Current Liabilities Liability Personal 52 Advance from Customers Current Liabilities Liability Personal 53 Statutory Dues Payable Duties & Taxes Liability Personal 54 GST Payable Duties & Taxes Liability Personal 55 GST Input Duties & Taxes Asset Personal 56 GST Output Duties & Taxes Liability Personal 57 Input CGST Duties & Taxes Asset Personal 58 Input SGST Duties & Taxes Asset Personal 59 Input IGST Duties & Taxes Asset Personal 60 Output CGST Duties & Taxes Liability Personal 61 Output SGST Duties & Taxes Liability Personal 62 Output IGST Duties & Taxes Liability Personal 63 TDS Payable Duties & Taxes Liability Personal 64 TCS Payable Duties & Taxes Liability Personal 65 PF Payable Duties & Taxes Liability Personal 66 ESIC Payable Duties & Taxes Liability Personal 67 Professional Tax Payable Duties & Taxes Liability Personal 68 Salary Payable Current Liabilities Liability Personal 69 Wages Payable Current Liabilities Liability Personal 70 Capital Account Capital Account Liability Personal 71 Drawings Capital Account Asset Personal 72 Partner’s Capital Capital Account Liability Personal 73 Partner’s Current Account Loans (Liability) Liability Personal 74 Loan from Director Loans (Liability) Liability Personal 75 Secured Loans Loans (Liability) Liability Personal 76 Unsecured Loans Loans (Liability) Liability Personal 77 Loan from Bank Loans (Liability) Liability Personal 78 Cash Credit Account Loans (Liability) Liability Personal 79 Overdraft Account Loans (Liability) Liability Personal 80 Fixed Assets Fixed Assets Asset Real 81 Furniture & Fixtures Fixed Assets Asset Real 82 Plant & Machinery Fixed Assets Asset Real 83 Building Fixed Assets Asset Real 84 Computer & Accessories Fixed Assets Asset Real 85 Motor Vehicles Fixed Assets Asset Real 86 Investments Investments Asset Real 87 Shares Investment Investments Asset Real 88 Bonds Investment Investments Asset Real 89 Mutual Fund Investment Investments Asset Real 90 FD with Bank Investments Asset Real 91 Prepaid Expenses Current Assets Asset Personal 92 Advance to Suppliers Current Assets Asset Personal 93 Security Deposit Loans & Advances (Asset) Asset Personal 94 Rent Deposit Loans & Advances (Asset) Asset Personal 95 Tax Deducted at Source (TDS) Receivable Loans & Advances (Asset) Asset Personal 96 Income Tax Refund Receivable Loans & Advances (Asset) Asset Personal 97 Advance Income Tax Loans & Advances (Asset) Asset Personal 98 Custom Duty Receivable Loans & Advances (Asset) Asset Personal 99 VAT Receivable Loans & Advances (Asset) Asset Personal 100 Service Tax Receivable Loans & Advances (Asset) Asset Personal Sr No Ledger Name Group Under Type of Account Accounting Type 101 Outstanding Income Current Assets Asset Personal 102 Accrued Interest Current Assets Asset Personal 103 Insurance Claim Receivable Current Assets Asset Personal 104 Credit Card Receivable Current Assets Asset Personal 105 Unbilled Revenue Current Assets Asset Personal 106 Cash Sales Sales Accounts Income Nominal 107 Credit Sales Sales Accounts Income Nominal 108 Export Sales Sales Accounts Income Nominal 109 Local Sales Sales Accounts Income Nominal 110 Sales Return Sales Accounts Income Nominal 111 Cash Purchase Purchase Accounts Expense Nominal 112 Credit Purchase Purchase Accounts Expense Nominal 113 Import Purchase Purchase Accounts Expense Nominal 114 Purchase Return Purchase Accounts Expense Nominal 115 Freight Inward Direct Expenses Expense Nominal 116 Custom Duty Direct Expenses Expense Nominal 117 Clearing Charges Direct Expenses Expense Nominal 118 Loading Charges Direct Expenses Expense Nominal 119 Unloading Charges Direct Expenses Expense Nominal 120 Manufacturing Expenses Direct Expenses Expense Nominal 121 Power & Fuel Direct Expenses Expense Nominal 122 Royalty on Production Direct Expenses Expense Nominal 123 Wages Direct Expenses Expense Nominal 124 Factory Rent Direct Expenses Expense Nominal 125 Factory Insurance Direct Expenses Expense Nominal 126 Factory Maintenance Direct Expenses Expense Nominal 127 Factory Expenses Direct Expenses Expense Nominal 128 Carriage Inward Direct Expenses Expense Nominal 129 Carriage Outward Indirect Expenses Expense Nominal 130 Office

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How to Alter Group of Ledgers in TallyPrime?

TallyPrime Basic, TallyPrime Course /

In TallyPrime, Ledger Groups help organize accounts properly. Sometimes after creating groups, you may need to edit or correct them. That process is called altering group of ledgers. Alter Group of Ledgers” means to edit, rename, or change any details of an existing ledger group in TallyPrime. You may want to change: The group name The parent group Whether it is a primary group or a sub-group Enable or disable GST, TDS, or other options Step 1- Go to “Alter” Menu   Step 2- Click the Group to Edit   Step 3- Select the Ledger Group to Edit   Step 4- Make Changes You can now: Edit Name of the Group Change Parent Group Set group as Primary or not   after making changes Once done, press Ctrl + A to save. Your ledger group is now updated!   Assignment for Practice: Create a group named Transport Expenses under Indirect Expenses. Now go to Alter → Group and rename it to Freight Charges. Change the parent group to Direct Expenses. Save and verify from Display → List of Accounts.

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Purchase Voucher with Stock Item – TallyPrime Purchase Voucher

TallyPrime Accounting Vouchers, TallyPrime Course /

Purchase with Stock Item   Step 1- Click on Create Create Required Ledger for Make Voucher Entry like Party Name, Purchase or Other If Already done that’s great – for create new click on ledger Enter your your ledger information like name, under group and related info   Now Create inventory master like stock group, category, unit, item name, godown for arrange in a systematic way. Create Stock group click on group after click on create its visible only if enable inventory features in your company. Enter here you stock group name and other info Create stock Category Enter here your item category name Create item measurement unit Create Stock Godown Enter here godown name and info Now Create Stock Item And with stock group , category and unit also used (Group) Add category Add stock unit now item is ready to save Another stock item with another category stock item create Before purchase our balance Sheet (Closing Stock 6700.00)   Select voucher mode as item invoice Purchase voucher with all information filled Fill other information like rate, qty, godown, etc now accept voucher and save transaction   now see reports after making purchase voucher (Balance Sheet) See reports   See liability report   See reports Stock summary Stock group wise   Stock item      

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