MCA 4 Lab Manual Solved Questions.

1. Q1. Opening two or more companies with different names
a. First Company
b. Second Company
c. Third Company

2. Q2. The role of Buttons
Q3. Meaningful information into all the options available under heading ‘Company Info’
1. Select Company in the different companies.
2. Create Company 3. Backup

3. 4. Restore 5. Quit
Q4. The Ledgers, which has been manually created in Block 2 of MCS-035 exercise
For the Problem of Illustration 2 & Revised Illustration 2
Bad Debts Bank Commission
Bill Payable Bills Receivable

4. Buildings Capital
Carriage Inwards Cash
Creditors Debtors

5. Depreciation on Furniture Depreciation on Machinery
Deprecation on Building Discount
Discount Received Drawings

6. Furniture Interest On Capital
Interest On Capital Life Insurance
Machinery Outstanding Trade Expenses

7. Outstanding Expenses on Wages Provision for Doubtful Debts
Purchases Purchases Returns
Reserved for Bad Debts Salaries

8. Sales Sales Returns
Stock (Opening) Trade Expenses
Wages

9. Check Your Progress 2 Question 4
Bank Balance Buildings
Capital Commission
Creditors Debtors

10. Drawings Establishment Expenses
Furniture Insurance
Interest Paid Loan form Ashok

11. Motor Car Outstanding Expenses
Purchases Sales
Stock Wages

12. Check Your Progress 5 Question 6
Bad Debts Bill Payable
Bill Receivable Capital
Carriage Inwards Carriage Outwards

13. Cash Cash at Bank
Creditors Darwings
Debtors Depreciation on Fixed Assets

14. Discount Discount Received
Fixed Assets Insurance
Interest Interest On Investment
Investment Loan for Bank

15. Office Expenses Outstanding on Rent
Prepaid Insurance Provision for Discount on Debtors

16. Provision for Doubtful Debts Purchases
Purchases Returns Stock (Opening) Raw Material
Rent Reserve for Discount on Creditors

17. Sales Sales Returns
Selling Expenses

18. Check Your Progress 5 Question 7
Bill Payable Carriage on Sales
Carriage on Purchases Cash in Bank
Depreciation on Fixtures and Fittings Depreciation on Plant Machinery

19. Discount Drawings
Factory Fuel & Power Fixtures & Fittings
Insurance Lighting

20. Manufacturing Expenses Office Expenses
Office Salaries Outstanding on Salaries
Outstanding on Wages Plant and Machinery

21. Prepaid Insurance Purchases
Purchases Returns Rent Outstanding
Rent and Taxes Reserve for Bad Debts

22. Sales Sales Retruns
Sanjeev’s Capital Stock (Opening)
Sundry Creditor Sundry Debtors

23. Travelling Expense Wages
Q5. What is a Ledger in Tally?
A Ledger is the actual account head to which you identify a transaction. You pass all accounting voucher entries using ledgers. However, as
mentioned in the introduction to Groups, all ledgers have to be classified into groups. Hence, a thorough understanding of account classification is
important for working with ledgers. We have reproduced certain portions from the group’s chapter here.
Q6. Create a Sample Ledger in Tally

24. Q7. Open a ledger named purchase and then delete it.
Created the purchase account
Deleting the purchase account

25. Q8. Change the name of ledger from purchase to sales.
Purchase Account
Altering to Sales Account

26. Q9. Voucher entry of the question, which have been manually created by us in Block-2 of Mcs-035 exercise.
The Problem of Illustration 2 & Revised Illustration 2
Drawings Buildings
Creditors Debtors
Purchases Purchases Returns

27. Sales Sales Returns
Discount Discount Allowed
Life Insurance Bad Debts

28. Reserves for Bad Debt Carriage Inwards
Wages Machinery
Furniture Salaries

29. Bank Commission Bills Receivable
Bills Payable Trade Expenses
Capital Depreciation on Buildings

30. Depreciation on Furniture Depreciation on Machinery
Outstanding Trade Expenses Outstanding Wages
Interest on Capital Provision for Doubtful Debts

31. Installation Charges on Wages and Machinery
Check Your Progress 2 Question 4
Capital Building
Drawings Furniture

32. Motor Car Interest Paid for Loan
Purchases Sales
Establishment Expenses Wages

33. Insurance Commission
Debtors Creditors
Bank Balance

34. Check Your Progress 5 Question 6
Fixed Assets Debtors
Bills Receivable Investment
Drawings Purchases

35. Purchases Returns Sales
Sales Returns Carriage Inwards
Carriage Outwards Rent
Insurance Office Expenses

36. Discount Allowed Bad Debts
Interest Selling Expenses
Creditors Bill Payable

37. Loan for Ashok Discount
Outstanding Rent Insurance Premium

38. Interest on Investment Write of Further Bad Debts
Provision for Doubtful Debts Provision for Discount on Debtors
Discount on Creditors Depreciation on Fixed Assets

39. Check Your Progress 5 Question 7
Plant & Machinery Fixture and Fittings
Factory Fuel & Power Office Salaries
Lighting Travelling Expenses

40. Carriage on Sales Cash in Bank
Sundry Debtors Purchases
Purchases Return Wages

41. Rates & Taxes Office Expenses
Carriage on Purchases Discount
Drawings Manufacturing Expenses

42. Sales Sales Returns
Insurance Rent Outstanding
Sanjeev’s Capital Sundry Creditors

43. Bills Payable Depreciation on Plant and Machinery
Depreciation on Fixture and Fittings Insurance Unexpired
Outstanding Wages Outstanding Salaries

44. Q10. What do you understand by Voucher?
This is a non-accounting voucher and the entries made using it will not affect your accounts. That is, Tally does not post these entries to ledgers but stores
them in a separate "Memo Register". You can alter and convert a Memo voucher into a regular voucher when you decide to bring the entry into your
books. View all optional vouchers through Display —>Exception Reports —> Optional Vouchers. View them from the Day Book as well.
Some uses for Memo vouchers
Making suspense payments
For example, the company gives an employee cash to buy office supplies, the exact nature and cost of which are unknown. You could enter a voucher for
the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash.
However, a simpler way is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when
known.
Vouchers not verified at the time of entry
It sometimes happens that you do not understand the details of a voucher you are entering. Enter it as a Memo voucher and amend it when you get the
details.
Items given on approval
You will normally only enter completed sales into the books. Suppose items are given "on approval". You can track them with a Memo voucher and
convert it into a proper Sales voucher, or delete the memo voucher, depending on the outcome.
Reminder service
You can enter a Memo voucher for a transaction that will take place in the future and get Tally to remind you about it one day prior to the date. For
example, insurance premiums due, taxes due, installment payments, post-dated cheques.
Q11. Show the use of all the Voucher types available with Tally
Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard vouchers are:
-Payment voucher
-Receipt voucher
-Contra voucher
-Sales voucher
Sales Orders
Sales vouchers/invoices
Delivery Notes
Rejection In
-Purchase voucher
Purchase Orders
Purchase vouchers
Goods Receipt Notes
Rejection Out
-Journal voucher
Credit Notes
Debit Notes
Journal
-Memo voucher
Reversing Journal
-Stock Journal
-Physical Stock
You can alter these vouchers to suit your company, and also create new ones. For example, if you wish to distinguish between cash and bank payments
you can create vouchers to do this.
The function of each voucher type is now explained.
Payment Voucher
Payment Voucher
Description Record all Bank & Cash Payments
Voucher Entry Account Amount Amount
Ledger Account Paid e.g., Sundry Creditor, or
expense head like Electricity charges. Debit
Bank or Cash Account Credit

45. Receipts Voucher
Receipts Voucher
Description Record all receipts into Bank & Cash accounts
Voucher Entry Account Amount Amount
Bank or Cash account e.g., Grindlays Bank (Bank
Account) Debit
Income ledger account e.g., Bank Interest (Indirect
Incomes) or the giver of money e.g., A debtor
(Sundry Debtors)
Credit

46. Contra Voucher
Contra Voucher
Description Records funds transfer between cash and bank accounts
Voucher Entry Account Amount Amount
Cash (Cash-in-hand)
Debit
Grindlays Bank (Bank Account) Credit
Sales Voucher
Sales Voucher
Description Records all sales
Voucher Entry Account Amount Amount
Buyer’s ledger account, e.g., King & Co (Sundry
Debtors) Debit
Sales Account e.g., software sales
VAT output/sales tax
Credit
Credit

47. Purchase Voucher
Purchase Voucher
Description Records all Purchase
Voucher Entry Account Amount Amount
Purchases (Purchase Accounts)
Input VAT/Tax
Debit
Debit
Supplier’s ledger account, e.g., U S Computers
(Sundry Creditors)
Credit
Journal Voucher
Journal Voucher
Description Records adjustments between ledger accounts
Voucher Entry Account Amount Amount
Advertising (Indirect Expenses)
Debit
Office Costs (Indirect Expenses)
Credit

48. Memo Voucher
This is a non-accounting voucher and the entries made using it will not affect your accounts. That is, Tally does not post these entries to ledgers
but stores them in a separate "Memo Register". You can alter and convert a Memo voucher into a regular voucher when you decide to bring the entry into
your books. View all optional vouchers through Display —>Exception Reports —> Optional Vouchers. View them from the Day Book as well.
Some uses for Memo vouchers
Making suspense payments
For example, the company gives an employee cash to buy office supplies, the exact nature and cost of which are unknown. You could enter a
voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of
surplus cash. However, a simpler way is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual
amount spent, when known.
Vouchers not verified at the time of entry
It sometimes happens that you do not understand the details of a voucher you are entering. Enter it as a Memo voucher and amend it when you
get the details.
Items given on approval
You will normally only enter completed sales into the books. Suppose items are given "on approval". You can track them with a Memo voucher
and convert it into a proper Sales voucher, or delete the memo voucher, depending on the outcome.
Reminder service
You can enter a Memo voucher for a transaction that will take place in the future and get Tally to remind you about it one day prior to the date.
For example, insurance premiums due, taxes due, installment payments, post-dated cheques.
Memo Voucher
Memo Voucher
Description Records the voucher entries in a memo register, without affecting the ledger accounts
& financial statements.
Voucher Entry Account Amount Amount
Ledger Account
Debit
Ledger Account
Credit

49. Optional Voucher
This is another non-accounting voucher. However, it differs from the Memo voucher in that it is not a separate voucher type. You mark an
existing voucher, (e.g., a payment voucher or a receipt voucher) as 'Optional'. Press [CTRL]+[L] or click on the button. This button toggles with 'Regular'.
By marking it 'Optional' the voucher does not get posted anywhere but remains in the have the Optional Register. You can view all optional vouchers
through Display —>Exception Reports —> Optional Vouchers. View them from the Day Book as well.
Use of Optional Vouchers
Obviously, a transaction has not been completed and you do not want it to affect the accounts. But you want to record it so that you simply
modify the voucher and remove the 'Optional' mark by 'Regularizing' it. Display the voucher in 'Alter' form and click on 'Regular'. This way you can
regularize the voucher and then post it. E.g. Performance sales invoice. In fact, print an optional sales invoice as a Performance Invoice.
You can choose to view a Balance Sheet including Optional vouchers. Normally, since these vouchers have no bearing on the books and
statements. However, you might want to see their impact without actually posting the transactions. Optional vouchers allow you to do so. This not unlike
the reversing journal.
Reversing Journals
Reversing Journals are special journals that are automatically reversed after the date of the journal. They exist only for a day and are effective on
the date of the reversing journal. Moreover, they are effective only when called for in reports like the Balance Sheet.
For example, it is 30th June and you want to view the Balance Sheet as of today but June salaries are not due for payment until the first week in July.
There is, therefore, a large liability, which would not be reflected in the Balance Sheet. To overcome this, you would enter a reversing journal voucher
dated 30th June, which would look something like this:
DrSalaries 5,000
CrProvisions (Current Liabilities) 5,000
When you view the Balance Sheet, you would ask Tally for the report with the reversing journals included. The voucher affects the report only
for that day, i.e., 30th
June.
Post-dated vouchers
While entering vouchers, you can post-date them, and Tally will not update the ledgers until the date in question. This is most useful for entering
transactions that take place on a regular basis. For example, if you pay for something by installments, you can set-up the payments in advance, and Tally
will only enter them in the ledgers as they fall due. Mark vouchers 'Post Dated' by [CTRL]+[D] or click on the button. The button toggles with 'Regular'.

50. Stock Journal
A stock journal is used to transfer materials or stock from one location to another location. Stocks could even simply be shown as consumed. Or
even only produced without both consumption and production. Hence, it is not like other journal where debits and credits must match.
You can specify quantities that are move as well as their rates and amounts. If standard rates have been entered in the stock item masters, they
will appear. In the target location, you can specify additional costs incurred without actually affecting accounting at all. Only the stock value goes up.
Hence, it is technically correct where an expense incurred on production or inward has been accounting for in the cost of that item.
The Stock Journal Screen has three parts – the top part accepts general information, the left hand side is the Source location or Consumption Part
and the right hand side is the Destination location or the Production Part. While you must furnish the common information required in the top part, you
may elect to give information for only the left or the right part or both.
Physical Stock

51. Q12. Change the date of voucher entered.
Q13. Change the period of Voucher entered.

52. Q14. Generate Balance Sheet, which has been manually created in Block 2 of MCS-035 exercise
The Problem of Illustration 2 & Revised Illustration 2
Balance Sheet
Check Your Progress 2 Question 4
Balance sheet

53. Check Your Progress 5 Question 6
Balance sheet
Check Your Progress 5 Question 7
Balance sheet