Tally Prime Case Study 1 Exercise

APRIL 2020
1	1-4-2020	Arpit Kumar Verma started a business solutions by bringing in cash of Rs.300000.
2	2-4-2020	Mr. Verma paid Rs.22500 in cash to purchase a computer. The computer does not have any disposal value at the end of its useful life of four years.
3	3-4-2020	Mr. Verma opened a bank account in HDFC Bank and deposit cash of Rs.100000.
4	4-4-2020	Mr. Verma rented an office apace for Rs.2500 per month on April 01, 2020 He paid the security deposit of Rs. 25000 by cheque.
5	5-4-2020	Mr. Verma hired Shubham as Manager on a monthly salary of Rs.7500. He also hired Geeta Shukla as Assistant Manager on a Monthly salary of Rs.4500.
6	10-4-2020	Mr. Verma made an arrangement with Raj Travels to receive bills, for travel expenses, at regular intervals.
7	15-4-2020	Mr. Verma issued cheque and purchased the following fixed assets. 1. Cell Phone Rs.6000 (useful life-5 years) 2. Furniture Rs.20000 (useful life-8 years) 3. AIR Conditioner Rs.20000 (useful life-6 years) 4. Electrical fittings Rs.15000 (useful life-10 years) The above assets do not have any disposal value at the end of their useful life.
8	16-4-2020	Mr. Verma obtained a mobile phone subscription from Planet telecommunications, by paying a deposit of Rs.3000 in cash.
9	20-4-2020	Mr.Verma purchased stationary consumables worth Rs.12500 from Global House, on credit.
10	21-4-2020	Mr. Verma signed a contract with Silver Services to provide consultancy services at an agreed price of Rs.75000. He received an advance of Rs.25000 by cheque.
11	23-4-2020	Mr. Verma deposit Rs.50000 cash in HDFC Bank.
12	25-4-2020	Mr. Verma received an invoice for Rs.6000 from Ink and Paper Publishers for printing office stationary.
13	27-4-2020	Mr. Verma withdrew Rs.7500 cash for personal use.
14	30-4-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.

May 2020
15	1-5-2020	Mr. Verma paid Rs.6000 in cash to Ink and paper publishers.
16	5-5-2020	Mr. Verma paid Rs.2500 by cheque towards office rent for April 2020.
17	6-5-2020	Mr. Verma paid salaries through cheque for April 2020 (25 days) to Shubham Rs.6500, Geeta Shukla Rs.3900.
18	7-5-2020	Mr. Verma received and paid her mobile phone bill amounting to Rs.1250 in cash.
19	10-5-2020	Mr. Verma issued a cheque of Rs.12500 to Global House.
20	12-5-2020	Mr. Verma paid Rs.1100 in cash towards electricity charges.
21	14-5-2020	Mr. Verma received a further advance of Rs.25000 from silver services by cheque. (Refer transaction 10.)
22	15-5-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.650 in cash to Geeta Shukla.
23	18-5-2020	Mr. Verma paid Rs.150 in cash towards miscellaneous office expenses.
24	20-5-2020	Mr. Verma received Rs.15000 as consulting revenue in cash from Omega Infotech.
25	25-5-2020	Mr. Verma raised an invoice for Rs.75000 on Silver Services after completion of the service. Silver Services paid the balance amount of Rs.25000 in cash after deducting the advance. (Refer transactions 10 and 21.)
26	28-5-2020	Mr. Verma withdrew Rs.6000 cash for personal use.

June 2020
27	3-6-2020	Mr. Verma paid Rs.2500 in cash towards office rent.
28	4-6-2020	Mr. Verma paid salaries by cheque for May 2020 (Refer transaction 5.)
29	5-6-2020	Mr. Verma received an invoice for Rs.5500 from Raj travels. This includes Rs.2300 towards cab hiring charges and Rs.3200 towards outstation tours.
30	9-6-2020	Mr. Verma received Rs.35000 in cash as consulting revenue from eateries food chain.
31	10-6-2020	Mr. Verma deposited Rs.30000 in HDFC Bank.
32	15-6-2020	Mr. Verma paid mobile phone bill amounting to Rs.1350 by cheque.
33	16-6-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.750 in cash to Geeta Shukla.

34	20-6-2020	Mr. Verma paid Rs.1250 in cash towards electricity bill charges.
35	21-6-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
36	23-6-2020	Mr. Verma paid Rs.3000 in cash as salary advance to Shubham.
37	27-6-2020	Mr. Verma withdrew Rs.6000 cash for personal use.

July 2020
38	3-7-2020	Mr. Verma raised an invoice for Rs.65000 on Alfatech Solution for services provided.
39	6-7-2020	Mr. Verma subscribed for the Management Consultant journal paying Rs.2400 by cheque. The subscription period is from July 2020 to June 2022.
40	7-7-2020	Mr. Verma paid salaries for June 2020 by cheque. Salary advance paid to Shubham is adjusted against the salary paid. (Refer transaction 36.)
41	10-7-2020	Mr. Verma paid office rent by cheque. (Refer transaction 4.)
42	15-7-2020	Mr. Verma received Rs.35000 by cheque from Alfatech solutions.
43	18-7-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
44	19-7-2020	Mr. Verma paid Rs.850 in cash towards electricity charges.
45	20-7-2020	Mr. Verma paid Rs.1650 by cheque as mobile phone bill charges.
46	25-7-2020	Mr. Verma reimburses conveyance bills of Rs.550 in cash to Geeta Shukla.
47	27-7-2020	Mr. Verma withdrew Rs.6500 cash for personal use.

August 2020
48	1-8-2020	Mr. Verma paid by cheque Rs.6000 for insurance of fixed assets. The period of insurance is from August 1, 2020 to July 31, 2021.
49	2-8-2020	Mr. Verma received Rs.30000 in cash as consulting revenue from ABC Computer.
50	5-8-2020	Mr. Verma paid salaries by cheque.
51	10-8-2020	Mr. Verma paid office rent by cheque.
52	12-8-2020	Mr. Verma withdrew Rs.25000 from HDFC Bank.
53	14-8-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
54	16-8-2020	Mr. Verma raised an invoice for Rs.50000 on MediaLive Productions for services provided.
55	18-8-2020	Mr. Verma paid Rs.950 in cash towards electricity charges.
56	20-8-2020	Mr. Verma paid Rs.2100 by cheque towards mobile phone bill charges.
57	21-8-2020	MediaLive Productions settled the bill for a final amount of Rs.48000 by paying Rs.20000 in cash and Rs.28000 by cheque. (Refer transaction 54.)
58	27-8-2020	Mr. Verma withdrew Rs.7000 cash for personal use.
59	28-8-2020	Mr. Verma received Rs.30000 by cheque from Alfatech Solutions.
60	29-8-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.1200 in cash to Geeta Shukla.

September 2020
61	2-9-2020	Mr. Verma paid Rs.3800 in cash for repairs and maintenance of office premises.
62	5-9-2020	Mr. Verma paid salaries by cheque. As Shubham was on leave for 15 days, he was paid half-month’s salary.
63	8-9-2020	Mr. Verma paid rent by cheque.
64	9-9-2020	Mr. Verma received an invoice for Rs.7600 from Raj Travels. This includes Rs.3150 towards cab hiring charges and Rs.4450 towards outstation tours.
65	12-9-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
66	15-9-2020	Mr. Verma received Rs.25000 in cash as consulting revenue from Cam and Cut Productions.
67	17-9-2020	Mr. Verma paid Rs.1300 in cash towards electricity charges.
68	20-9-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.500 in cash to Geeta Shukla.
69	23-9-2020	Mr. Verma paid Rs.10000 by cheque to Raj Travels.
70	24-9-2020	Mr. Verma paid Rs.1750 by cheque towards mobile phone bill charges.
71	28-9-2020	Mr. Verma withdrew Rs.5500 cash for personal use.

October 2020
72	3-10-2020	Mr. Verma received Rs.50000 by cheque as consulting revenue from Xceed International Couriers.
73	5-10-2020	Mr. Verma paid office rent by cheque.
74	7-10-2020	Mr. Verma withdrew Rs.30000 cash from HDFC Bank.
75	8-10-2020	Mr. Verma paid salaries by cheque.
76	10-10-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
77	12-10-2020	Mr. Verma purchased stationary items worth Rs.1600 in cash.
78	15-10-2020	Mr. Verma received Rs.15000 in cash as consulting revenue from Samaritan Products.
79	18-10-2020	Mr. Verma paid Rs.1700 in cash towards electricity charges.
80	20-10-2020	Mr. Verma paid Rs.2300 by cheque towards mobile phone bill charges.
81	23-10-2020	Mr. Verma introduced further capital into the firm by bringing in cash of Rs.100000.
82	24-10-2020	Mr. Verma deposit cash amounting to Rs.75000 in HDFC Bank.
83	26-10-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.1600 in cash to Geeta Shukla.
84	28-10-2020	Mr. Verma entered into a contract with Planet Consultancy for providing service at an agreed price of Rs.35000. An advance of Rs.10000 was received by cheque.

November 2020
85	1-11-2020	Mr. Verma withdrew Rs.8000 cash for personal use.
86	2-11-2020	Mr. Verma received an invoice for Rs.7200 from Raj Travels. This includes Rs.2800 towards cab hiring charges and Rs.4400 towards outstation tours.
87	5-11-2020	Mr. Verma paid salaries by cheque.
88	8-11-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
89	10-11-2020	Mr. Verma received Rs.27500 by cheque as consulting revenue form Trishul Software Solutions.
90	12-11-2020	Mr. Verma paid office rent by cheque.
91	15-11-2020	Planet Consultancy terminated their contract and the advance of Rs.10000 was refunded to them by cheque.
92	20-11-2020	HDFC Bank intimated Mr. Verma that the cheque of Trishul Software solutions for Rs.27500 had bounced. Trishul Software solutions was informed of this development and they promised to pay the amount in a few days. (Refer Transaction 89.)
93	21-11-2020	Mr. Verma paid Rs.950 in cash towards electricity bill charges.
94	23-11-2020	Mr. Verma received Rs.12500 in cash Trishul software solutions.
95	25-11-2020	Mr. Verma paid Rs.1470 by cheque towards mobile phone bill charges.
96	27-11-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.900 in cash to Geeta Shukla.
97	30-11-2020	Mr. Verma withdrew Rs.6500 cash for personal use.

December 2020
98	3-12-2020	The statement received from HDFC Bank, shows that the bank has charged Rs.550 as cheque bouncing charges and Rs330 as cheque book charges. Cheque bouncing charges are to be recovered from Trishul Software solutions (Refer transaction 92.)
99	5-12-2020	Mr. Verma paid office rent by cheque.
100	6-12-2020	Mr. Verma paid salaries by cheque.
101	8-12-2020	Mr. Verma received an invoice from Raj Travels for Rs.6200. This includes Rs.3000 towards cab hiring charges and Rs.3200 towards outstation tours.

102	9-12-2020	Mr. Verma received Rs.50000 by cheque as consulting revenue form Unigrand Technologies.
103	10-12-2020	Mr. Verma withdrew Rs.30000 cash from HDFC Bank.
104	11-12-2020	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
105	15-12-2020	Mr. Verma purchased office equipment worth Rs.12000 on credit from Transfrom Tech. The assets does not have any disposal value after its useful life of 6 years.
106	16-12-2020	Mr. Verma paid Rs.1450 by cheque towards mobile phone bill charges.
107	18-12-2020	Mr. Verma paid Rs.850 in cash towards electricity bill charges.
108	20-12-2020	Mr. Verma reimbursed conveyance bills amounting to Rs.1100 in cash to Geeta Shukla.
109	23-12-2020	Mr. Verma paid Rs.12000 by cheque to transform tech.
110	21-12-2020	Mr. Verma raised an invoice for Rs. 42500 on InGroove Designers for consultancy services.
111	25-12-2020	Mr. Verma received Rs.15550 in cash from trishul software solutions.
112	28-12-2020	Mr. Verma withdrew Rs.6000 cash for personal use.
113	30-12-2020	Mr. Verma paid Rs.7500 by cheque towards professional charges for internal audit of accounts.

January 2021
114	3-1-2021	Mr. Verma paid office rent by cheque.
115	5-1-2021	Mr. Verma received Rs.30000 in cash from InGroove Designers.
116	6-1-2021	Mr. Verma paid salaries by cheque.
117	10-1-2021	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
118	12-1-2021	Mr. Verma received Rs.35000 by cheque as consulting revenue from Ala Carte Investments.
119	15-1-2021	Mr. Verma withdrew Rs.50000 capital from the firm by cheque.
120	18-1-2021	Mr. Verma paid Rs.2300 by cheque as mobile phone bill charges.
121	21-1-2021	Mr. Verma paid Rs.1050 in cash towards electricity charges.
122	23-1-2021	Mr. Verma reimbursed conveyance bills amounting to Rs.1800 in cash to Geeta Shukla.
123	30-1-2021	Mr. Verma withdrew Rs.8000 cash for personal use.

February 2021
124	5-2-2021	Mr. Verma paid office rent by cheque.
125	6-2-2021	Mr. Verma paid salaries by cheque.
126	10-2-2021	Mr. Verma received an invoice from Raj Travels for Rs.9400. This includes Rs.3800 towards cab hiring charges and Rs.5600 towards outstation tours.
127	11-2-2021	Mr. Verma paid Rs.20000 by cheque to Raj Travels.
128	12-2-2021	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
129	15-2-2021	Mr. Verma paid Rs.1600 by cheque towards mobile phone bill charges.
130	18-2-2021	Mr. Verma paid Rs.1200 in cash towards electricity bill.
131	20-2-2021	Mr. Verma reimbursed conveyance bills of Rs.1150 in cash to Geeta Shukla.
132	24-2-2021	Mr. Verma purchased stationary worth Rs.7400 on credit from Global House.
133	28-2-2021	Mr. Verma withdrew Rs.7000 cash for personal use.

March 2021
134	3-3-2021	Mr. Verma paid salaries by cheque.
135	5-3-2021	Mr. Verma paid office rent by cheque.
136	8-3-2021	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
137	10-3-2021	Mr. Verma received Rs.30000 in cash as consulting revenue from Eye Television Network.
138	12-3-2021	Mr. Verma paid Rs.1450 in cash towards electricity bill.

139	15-3-2021	Mr. Verma paid Rs.1900 by cheque towards mobile phone bill charges.
140	18-3-2021	Mr. Verma reimbursed conveyance bills of Rs.950 in cash Geeta Shukla.
141	20-3-2021	The invoice received from Global House on February 24, 2021 had an error in calculation and was over-valued by Rs.600.
142	21-3-2021	Mr. Verma paid Rs.6800 by cheque to Global House.
143	25-3-2021	Mr. Verma withdrew Rs.6500 cash for personal use.

Provision Entries

Transactions after 31-3-2021, pertaining to the year ending March 31, 2021, require provision entries. All provision entries are depicted using Journal Voucher.

Note: Prevision Entries, Depreciation Entries and Adjustment Entries are all recoded as on March 31, 2021.

Provision Entries
144		31-3-2021	Mr. Verma raised an invoice for Rs.20000 on ForeC Marketing Solution for consultancy service.
145		31-3-2021	Provision for Rent.
146		31-3-2021	Provision for salary.
147		31-3-2021	Provision for office maintenance Rs.750.
148		31-3-2021	Provision for mobile phone fill charges Rs.1690.
149		31-3-2021	Provision for conveyance bills Rs.1300.
150		31-3-2021	Mr. Verma received an invoice from Raj travels for Rs.6600. This includes Rs.2900 towards cab hiring charges and Rs.3700 towards outstation tours.
151		31-3-2021	Provision for electricity bill Rs.870.
Depreciation Entries
152		31-3-2021	Computer, Cell Phone, Furniture, Air Conditioner, Electrical Fitting, Office Equipment.
	S.N	Assets Name	Date of Purchase	Value of Last Financial year (a)	Useful Life on Years (b)	Annual Depreciation (a)/(b)=(c)	Days Used in the year (d)	Depreciation value *(c)(d)/365=(e)**
	1	Computer	02-04-20	22500	4	5625	364	5610
	2	Cell Phone	15-04-20	6000	5	1200	351	1154
	3	Furniture	15-04-20	20000	8	2500	351	2404
	4	Air Conditioner	15-04-20	20000	6	3333	351	3205
	5	Electrical Fittings	15-04-20	15000	10	1500	351	1442
	6	Office Equipment	15-12-20	12000	6	2000	107	586
	Total							14401

Adjustment Entries
153		31-3-2021		Adjustment Entries for Prepaid Expenses (Magazine subscription and Insurance).
	Nature		Payment Date		Period (a)	Amount (b)	Prepaid Period (c)	Prepaid Amount (b)/(a) *(c)=(d)	Amount for Current Year (b)-(d) =(e)
	Magazine Subscription		06-07-20		01-07-20 to 30-06-22 (24 months)	2400	01-04-21 to 30- 06-22 (15 months)	1500	900
	Insurance		01-08-20		01-08-20 to 31-07-21 (12 months)	6000	01-04-21 to 31- 07-21 (4 months)	2000	4000

Other Adjustment Entries
154	31-3-2021	Provisions for Income Tax (2020-2021) have to be made at Rs.17500.
155	31-3-2021	Closing stock of stationary consumables was Rs.5000.
156	31-3-2021	Transfer balance of withdrawals account to Arpit Kumar Verma Capital A/c.
Closing Entry
157	31-3-2021	Transfer of Profit and Loss Account to Arpit Kumar Verma Capital A/c.

Export Closing Balance with All Masters.

Create New Company for New Financial year 2021-2022.

Import Master with Combine opening balance.

Record Transactions of Next Financial Year.

April 2021
1	1-4-2021	Transfer opening balance of stock of stationary account to stationary expenses account.
2	1-4-2021	Mr. Verma received Rs.20000 in cash from ForeC Marketing Solutions.

3	2-4-2021	Mr. Verma paid office rent by cheque.
4	5-4-2021	Mr. Verma paid salaries by cheque.
5	7-4-2021	Mr. Verma paid Rs.750 in cash towards office maintenance charges.
6	10-4-2021	Mr. Verma deposited Rs.150000 cash in HDFC Bank.
7	12-4-2021	Mr. Verma paid Rs.1690 by cheque towards mobile phone bill charges.
8	15-4-2021	Mr. Verma reimbursed conveyance bills amounting to Rs.1300 in cash to Geeta Shukla.
9	20-4-2021	Mr. Verma paid Rs.870 in cash towards electricity charges.
10	21-4-2021	Mr. Verma received cheque for Rs.12500 from Ingroove Designers.
11	23-4-2021	Mr. Verma paid Rs.12500 in cash to Raj Travels.
12	30-4-2021	Mr. Verma withdrew Rs.7500 cash for personal use.