Samacheer Kalvi Class 12 Accountancy Solutions Chapter 10 Computerised Accounting System Tally

I Multiple Choice Questions

Choose the correct answer

Question 1. Accounting report prepared according to the requirements of the user is
(a) Routine accounting report
(b) Special purpose report
(c) Trial balance
(d) Balance sheet
Answer: (b) Special purpose report
In simple words: A report made just for what a specific person needs is called a special purpose report. It's not a standard, everyday report.

🎯 Exam Tip: Remember that special purpose reports are tailored to specific needs, unlike routine reports which follow a standard format.

Question 2. Function key F 11 is used for
(a) Company Features
(b) Accounting vouchers
(c) Company Configuration
(d) None of the options
Answer: (a) Company Features
In simple words: In accounting software, the F11 key is a shortcut to open the 'Company Features' settings. These settings help you turn on or off different options for your business's accounts.

🎯 Exam Tip: Familiarize yourself with common function key shortcuts in accounting software, as they often come up in exams.

Question 3. Which sub menu displays groups, ledgers and voucher type in tally?
(a) Inventory vouchers
(b) Accounting vouchers
(c) Company Info
(d) Account Info
Answer: (d) Account Info
In simple words: To see all your groups, ledgers, and different voucher types in Tally, you need to go to the 'Account Info' menu. It's like the main place to manage your basic accounting setup.

🎯 Exam Tip: Understand the navigation paths in Tally as specific menu options are frequently tested in practical and theoretical exams.

Question 4. What are the predefined Ledger(s) in Tally?
(i) Cash
(ii) Profit & Loss A/c
(iii) Capital A/c
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Both (ii) and (iii)
Answer: (c) Both (i) and (ii)
In simple words: Tally already has two main ledgers set up for you: Cash and Profit & Loss Account. These are essential for starting any accounting work.

🎯 Exam Tip: Know the default ledgers in Tally as they are fundamental and will always be present when you start a new company.

Question 5. Contra voucher is used for
(a) Master entry
(b) Withdrawal of cash from bank for office use
(c) Reports
(d) Credit purchase of assets
Answer: (b) Withdrawal of cash from bank for office use
In simple words: A contra voucher is used when money moves between cash and bank accounts, like taking cash out of the bank for office use. It only affects cash and bank accounts.

🎯 Exam Tip: Contra entries involve only cash and bank accounts, and they don't affect third parties. This is a key distinguishing feature.

Question 6. Which is not the default group in Tally?
(a) Suspense account
(b) Outstanding expense
(c) Sales account
(d) Investments
Answer: (b) Outstanding expense
In simple words: In Tally, 'Outstanding expense' is not one of the built-in groups that comes automatically. You would need to create it manually if you need it.

🎯 Exam Tip: Be aware of the standard default groups provided by Tally to easily identify which groups need to be created manually.

Question 7. Salary account comes under which of the following head?
(a) Direct Incomes
(b) Direct Expenses
(c) Indirect Incomes
(d) Indirect Expenses
Answer: (d) Indirect Expenses
In simple words: Salary paid to employees is usually an 'Indirect Expense' because it's not directly linked to making a product or providing a service. It's a general running cost of the business.

🎯 Exam Tip: Clearly differentiate between direct and indirect expenses; direct expenses are directly related to production, while indirect expenses are for general operations.

Question 8. Rs 25,000 withdrawn from bank for office use. In which voucher type, this transaction will be recorded
(a) Suspense account
(b) Outstanding expense
(c) Sales account
(d) Investment
Answer: (a) Suspense account
In simple words: When money is taken out of the bank for office use, it's a movement between the bank and cash. This type of transaction is recorded using a contra voucher, not a suspense account. The source answer seems incorrect; the correct voucher type for this transaction is a Contra voucher.

🎯 Exam Tip: Movements of cash between the bank and the cash account (like withdrawal for office use) are always recorded using a Contra voucher.

Question 9. In which vouchers type credit purchase of furniture is recorded in Tally
(a) Receipt voucher
(b) Journal voucher
(c) Purchase voucher
(d) Payment voucher
Answer: (b) Journal voucher
In simple words: When you buy furniture on credit, it means you haven't paid cash yet. Since it's a credit transaction for an asset (not inventory), it is recorded in a Journal voucher.

🎯 Exam Tip: Remember that purchase vouchers are typically for inventory purchases, while journal vouchers handle non-cash, non-sales, non-purchase (of goods), and non-contra transactions, especially for assets.

Question 10. Which of the following options is used to view Trial Balance from Gateway of Tally?
(a) Gateway of Tally → Reports → Trial Balance
(b) Gateway of Tally → Trial Balance
(c) Gateway of Tally → Reports → Display → Trial Balance
(d) None of the options
Answer: (c) Gateway of Tally → Reports → Display → Trial Balance
In simple words: To see the Trial Balance report in Tally, you first go to the 'Gateway of Tally' screen, then select 'Reports', then 'Display', and finally 'Trial Balance'. It's like navigating through a menu.

🎯 Exam Tip: Practice the navigation steps for frequently accessed reports in Tally as these are often asked in practical exams.

II Very Short Answer Questions

Question 1. What is automated accounting system?
Answer: An automated accounting system is a way of keeping accounting records up-to-date with the help of computer software. This system uses technology to handle all the financial information and transactions, making the process faster and more accurate.
In simple words: It's when computers and special software do all the accounting work for a business.

🎯 Exam Tip: Focus on keywords like "computer software" and "up-to-date records" when defining an automated accounting system.

Question 2. What are accounting reports?
Answer: Accounting reports are documents that collect and present financial information from a business's accounting records. These reports help people understand how well the business is doing. They can be standard reports, like routine reports, or special reports made for specific reasons.
In simple words: Accounting reports show a business's money information, helping people know its financial health.

🎯 Exam Tip: Remember that accounting reports consolidate financial data and can be categorized into routine and special purpose reports based on their use.

Question 3. State any five accounting reports.
Answer: Five common accounting reports are:
1. Daybooks/Journal
2. Ledger
3. Trial Balance
4. Income statement
5. Balance sheet
In simple words: Five important accounting reports are the journal, ledger, trial balance, income statement, and balance sheet.

🎯 Exam Tip: Be ready to list and briefly explain the purpose of each key accounting report, as this is a fundamental knowledge area.

Question 4. What is Accounting Information System (AIS)?
Answer: An Accounting Information System (AIS) gathers financial details, processes them, and gives useful information to different people. For AIS to provide information, it often needs data from other systems like manufacturing, marketing, and human resources. In the same way, other systems also need financial data from AIS to complete their tasks.
In simple words: AIS is a system that collects, processes, and shares financial information with different users.

🎯 Exam Tip: Highlight that an AIS is not isolated but interacts with other information systems within an organization to share and obtain data.

Question 5. What is a group in Tally.ERP 9?
Answer: In Tally.ERP 9, a group is a collection of ledgers that are all similar in nature. There are many groups already set up in Tally that are widely used in any organization. These groups help to organize accounts into main categories called primary groups and smaller categories called subgroups.
In simple words: A group in Tally is a collection of similar ledgers, helping to organize accounts.

🎯 Exam Tip: Emphasize that groups help in classification and organization of ledgers, which is crucial for preparing financial statements accurately.

III Short Answer Questions

Question 1. Write a brief note on accounting vouchers.
Answer: An accounting voucher is a document that holds all the details of a business transaction. Every transaction must be recorded using these voucher entries. Tally has several types of vouchers already set up, such as Purchase, Sales, Payment, Receipt, and Contra vouchers. If a business needs more types of vouchers, they can easily create them based on their specific needs. To see all the voucher types, you can go to Gateway of Tally → Masters Accounts Info → Voucher Type → Display.
Following are some of the major accounting vouchers used in an organisation:

• Receipt Voucher
• Payment Voucher
• Contra Voucher
• Purchase Voucher
• Sales Voucher
• Journal Voucher

🎯 Exam Tip: Clearly define what a voucher is and list the main types available in Tally, as this is a common descriptive question.

Question 2. What are the pre-defined ledgers available in Tally.ERP 9?
Answer: Tally.ERP 9 comes with two ledgers already created for you: Cash and Profit and Loss Account. These are the basic accounts needed for any business. Users must create all other ledgers depending on what their business needs. The ledgers that Tally has already set up (Cash and Profit and Loss Account) cannot be deleted. This ensures that essential accounts are always present.
In simple words: Tally already has 'Cash' and 'Profit and Loss Account' ledgers. You have to make all other ledgers.

🎯 Exam Tip: Remember the two non-deletable predefined ledgers in Tally; this is a common factual question.

Question 3. Mention the commonly used voucher types in Tally.ERP 9?
Answer: The commonly used voucher types in Tally.ERP 9 are essential for recording different kinds of transactions accurately. Each type serves a specific purpose, helping to categorize and track financial activities. Here are some of the major accounting vouchers used in an organization:
1. Receipt Voucher
2. Payment Voucher
3. Contra Voucher
4. Purchase Voucher
5. Sales Voucher
6. Journal Voucher
In simple words: Common Tally vouchers include Receipt, Payment, Contra, Purchase, Sales, and Journal.

🎯 Exam Tip: It is crucial to know the different voucher types and when each should be used for accurate transaction recording.

Question 4. Explain how to view profit and loss statement in Tally ERP 9?
Answer: To see the profit and loss statement in Tally.ERP 9, you can follow one of these two ways:
1. Press F10 for "A/c Reports", then select "Profit & Loss A/c", and then press Alt+F1 for a detailed view.
(or)
2. From the "Gateway of Tally", select "Reports", then "Profit & Loss A/c", and then press Alt+F1 for a detailed view. This report shows how much profit or loss a business made over a period.
In simple words: You can see the profit and loss statement in Tally by going through Reports, then Profit & Loss A/c, and pressing Alt+F1 for details.

🎯 Exam Tip: Learn both the direct function key method (F10) and the menu navigation method (Gateway of Tally) for viewing financial statements.

Question 5. Explain any five applications of computerized accounting system.
Answer: A computerized accounting system (CAS) has many uses that make accounting easier and more efficient. Here are five applications:
(1) Starting Tally: You can start Tally by clicking on Start > All programs > Tally.ERP 9 > Tally.ERP 9 icon, or by clicking the Tally.ERP 9 shortcut on your desktop. This is the first step to using the system.
(2) Creation of a company: Before you can record accounts, you need to enter your company's information in Tally. The steps are: Company Info > Create Company. This sets up your business in the software.
(3) Gateway of Tally: After making a company, the 'Gateway of Tally' screen appears every time you open Tally. It shows your selected company and has menu options for transactions and reports. The shortcut letter for each option is highlighted in red.
(4) Closing Tally: To close Tally, you can press the Esc key and then Enter or 'Y', or click 'yes'. Another way is to press Ctrl + Q. This helps to properly exit the software.
(5) Select a company: If you have many companies set up, you can choose a specific one after opening Tally by clicking F1 (Select Cmp) on the right side menu. Tally.ERP 9 will then show you the 'Select Company' screen.
In simple words: Computerized accounting helps start Tally, create companies, use the main Tally screen, close Tally, and choose a company to work on.

🎯 Exam Tip: Focus on the practical steps and common functions within Tally, as application-based questions are frequent.

IV Exercises

Question 1. Record the following transactions in Tally.
(a) Devi commenced a business with a capital of Rs 4,00,000
(b) An account was opened with Indian Bank and deposited Rs 60,000
(c) Purchased furniture by paying cash Rs 15,000
(d) Goods purchased on credit from Sumathy for Rs 50,000
(e) Cash sales made for Rs 10,000
(f) Goods purchased from Raja for Rs 5,000 and paid by cheque
(g) Goods sold to Arun on credit for Rs 70,000
(h) Money is withdrawn from bank for office use Rs 25,000
(i) Part payment of Rs 30,000 made to Sumathy by cheque
(j) Arun made part payment of Rs 10,000 by cash
(k) Salaries paid to staff through ECS Rs 36,000
(l) Carriage on purchases of Rs 6,000 paid by cash
(m) Purchased computer from Muthu Ltd. on credit Rs 44000
Answer: The transactions listed below are recorded in Tally ERP 9 according to their nature and effect on accounts. Each transaction impacts at least two accounts (Debit and Credit) and is entered through a specific voucher type.

🎯 Exam Tip: Always identify the two accounts affected by each transaction (one Debit, one Credit) and the correct voucher type for entry in Tally.

Question 2. The following balance sheet has been prepared from the books of pearl on 1-4-2018,
During the year the following transactions took place.
(a) Wages paid by cash Rs 4,000
(b) Salaries paid by cheque Rs 10,000
(c) Cash purchases made for Rs 4,000
(d) Good purchased on credit from Yazhini Rs 30,000
(e) Goods sold on credit to Jothi Rs 40,000
(f) Payment made to Yazhini through NEFT Rs 6,000
(g) Cash received from Peter Rs 10,000
(h) Cash sales made for Rs 4,000
(i) Depreciate buildings at 20%
(j) Closing stock on 31.03.2013 Rs 9,000
You are required to prepare trading and profit and loss account for the year ended 31-03-2019 and balance sheet as on that using Tally.
Answer: First, let's look at the opening balance sheet for Pearl on 1-4-2018. Then, we will consider the transactions that happened during the year. These transactions will be recorded to prepare the final trading, profit and loss account, and balance sheet for the year ended 31-03-2019 in Tally. The table below shows how the ledger accounts are created and their opening balances.

🎯 Exam Tip: When given a balance sheet and transactions, the first step is always to create all necessary ledgers with their correct opening balances in the accounting software.

III Short Answer Questions

Question 1. What do you mean by a Computerised Accounting system?
Answer: A computerized accounting system is a method of keeping financial records by using computers. It handles accounting transactions with accounting software to create various reports. This system helps to keep accounts well-organized and to produce reports quickly and accurately.
In simple words: It's using computers and software to manage all the money records for a business.

🎯 Exam Tip: Focus on the core idea that it is a system utilizing computers and software for managing accounting transactions and generating reports efficiently.

Question 2. What are the applications of the Computerised Accounting system?
Answer: The applications of a Computerised Accounting System (CAS) are many, making business operations smoother. Here are some key uses:
(1) Maintaining accounting records: CAS makes it easy and quick to keep accounting records. It doesn't need much physical space and can find information fast and accurately.
(2) Inventory management: CAS helps manage what a company has in stock. It can identify items that sell fast, slow, or are old, and gives updated information about stock levels.
(3) Payroll preparation: CAS calculates how much employees should be paid. It records attendance, works out salaries based on hours or units, and deducts things like provident fund and income tax.
(4) Report generation: CAS can create many kinds of reports, both standard ones and special ones, very quickly.
(5) Data import/export: Accounting information can be easily moved into or out of the system, allowing other users both inside and outside the company to access it.
(6) Taxation: CAS helps calculate different taxes and makes sure they are deducted and paid to the government correctly.
In simple words: CAS helps keep records, manage stock, prepare salaries, make reports, share data, and handle taxes efficiently.

🎯 Exam Tip: When listing applications, ensure each point describes a distinct benefit or function of using a computerized system, such as efficiency, accuracy, and data management.

Question 3. What are the steps involved in designing accounting reports?
Answer: Designing accounting reports involves several important steps to make sure they are useful and accurate. These steps help to create reports that meet specific needs:
1. Define the objective of generating the report: First, decide why you need the report and what information it should show.
2. Specify the structure of the report: Next, plan how the report will look, including its sections and layout.
3. Creating database queries to interact with the database to retrieve, modify, add, or delete data from the records: Then, set up how the computer will get, change, add, or remove information from the accounting records.
4. Write notes on the following:

• Contra Voucher: A transaction involving both cash and bank accounts is recorded using a contra voucher. This can be depositing cash into the bank or withdrawing cash from the bank for office use. To record a Contra, go to Gateway of Tally > Transactions > Accounting Voucher > F4:Contra.
• Purchase Voucher: Purchase vouchers are used to record buying goods, whether with cash or on credit. To record Purchases, go to Gateway of Tally > Transactions > Accounting Vouchers > F9:Purchase.
• Journal Voucher: Journal vouchers are used for recording transactions that don't involve just cash or bank, or direct purchases and sales of goods. Examples include depreciation or making provisions for bad debts. To record a Journal, go to Gateway of Tally > Transactions > Accounting vouchers > F7:Journal.

🎯 Exam Tip: Understanding the purpose and usage of each voucher type is fundamental to correctly recording transactions and ensuring accurate reports.

Question 2. What are the applications of the Computerised Accounting system?
Answer: The Computerised Accounting System (CAS) has several important uses.
(1) **Maintaining Accounting Records:** With CAS, accounting records are kept easily and efficiently. It uses less physical space and helps to quickly find and get accounting data and information.
(2) **Inventory Management:** CAS helps to manage inventory effectively. It can identify which items sell fast, which sell slowly, and which are old or not selling. It provides quick updates on stock levels and availability.
(3) **Payroll Preparation:** This system handles calculating employee wages. It computes salaries based on hours worked or units produced and manages deductions like provident fund and income tax.
(4) **Report Generation:** CAS creates various reports, including regular and special ones, which are useful for decision-making.
(5) **Data Import/Export:** Accounting information can be easily shared or moved between different users or systems, both inside and outside the company.
(6) **Taxation:** CAS helps calculate different taxes, deducts them, and ensures they are paid to the government on time.
In simple words: A computerised accounting system helps businesses in many ways, such as keeping records, managing stock, preparing salaries, creating reports, sharing data, and handling taxes. It makes these tasks faster and easier.

🎯 Exam Tip: When listing applications, aim to provide a brief, clear explanation for each point to show a thorough understanding of the system's benefits.

Question 3. What are the steps involved in designing accounting reports?
Answer: The steps to design accounting reports are as follows:
1. **Define the objective:** First, decide what the report needs to achieve or what information it should show.
2. **Specify the structure:** Next, plan how the report will be organised, including its layout and what sections it will have.
3. **Create database queries:** Develop commands to interact with the database. These commands will get, change, add, or remove data for the report.
4. **Write notes on the following:**
(a) **Contra Voucher:** This is used for transactions involving both cash and bank accounts, such as depositing cash into a bank or withdrawing cash for office use. To record a Contra entry in Tally, navigate through: Gateway of Tally > Transactions > Accounting Voucher > F4:Contra.
(b) **Purchase Voucher:** This voucher records both cash and credit purchases of goods. To record a Purchase entry: Gateway of Tally > Transactions > Accounting Vouchers > F9:Purchase.
(c) **Journal Voucher:** This voucher is used for transactions that do not involve cash, bank, purchases, or sales directly, like depreciation or provisions for bad debts. To record a Journal entry: Gateway of Tally > Transactions > Accounting vouchers > F7:Journal.
In simple words: To make a good accounting report, first know what you want it to do. Then, plan how it will look. After that, create commands to pull the right information from your accounting system. Finally, understand specific voucher types like Contra, Purchase, and Journal, which record different kinds of money movements.

🎯 Exam Tip: For steps involving software navigation (like Tally), always list the full path clearly to demonstrate practical knowledge of the application. Make sure to define each voucher type before stating its navigation path.