Easy2Siksha.com
GNDU Question Paper-2022
Bachelor of Commerce
(B.Com) 5
th
Semester
COMPUTER BASED ACCOUNTING
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. What a detailed note on the evolution of computers in business. Briefly explain the
advantages of computers in business.
2. What are the different computer tools of business usage ? Explain the features,
advantages and limitations of each.
SECTION-B
3. Discuss the features of computerized accounting. What are the advantages of using
computers in accounting? Discuss in detail.
4. What are the different types of accounting software? Discuss in detail the features of
accounting software?
SECTION-C
Easy2Siksha.com
5. (a) Briefly explain the features of TALLY.
(b) Discuss the steps of activating TALLY for single-user and multi-user.
6. What are the new features of TALLY? Also explain the process of installation and
running of TALLY.
SECTION-D
7. What are the various components of Gateway of TALLY? Discuss the items of the Button
bar, Main area and Info panel.
8. What are the steps to create a company in TALLY? Explain all the details to be filled in
create company screen.
Easy2Siksha.com
GNDU Answer Paper-2022
Bachelor of Commerce
(B.Com) 5
th
Semester
COMPUTER BASED ACCOUNTING
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. What a detailed note on the evolution of computers in business. Briefly explain the
advantages of computers in business.
Ans: The Evolution of Computers in Business
If you look around in today’s world, you’ll notice something very interesting—whether it’s a
small shopkeeper recording sales on his smartphone, or a multinational company running
complex operations, computers have silently become the backbone of business. But this
wasn’t always the case. The marriage between computers and business has been a long
journey—full of experiments, discoveries, and transformations.
Let’s travel back in time and walk through this fascinating evolution step by step.
1. The Beginning – Computers as Giant Calculators (1940s – 1950s)
In the early days, computers were not at all like the sleek laptops we carry today. They were
massive machines, occupying entire rooms, powered by thousands of vacuum tubes, and
constantly overheating. Businesses didn’t use them directly at first—because they were
mainly built for scientific research, defense, and government projects.
But soon, forward-thinking business leaders realized: “If this machine can solve complicated
equations in seconds, why can’t it help in accounting, payroll, or inventory management?”
Easy2Siksha.com
That thought was the seed. Early computers started appearing in large banks and insurance
companies to handle record-keeping, calculations, and data processing. They were slow
and very expensive, but they showed a glimpse of the future.
2. The Expansion Era – Mainframes in Business (1960s – 1970s)
By the 1960s, mainframe computers became the kings of the business world. Companies
like IBM provided powerful machines that could handle massive amounts of data.
For the first time, large corporations started automating processes such as:
• Employee payroll systems
• Customer billing
• Transaction processing in banks
• Airline ticket reservations
Imagine the difference this made! Instead of hundreds of clerks manually checking ledgers,
a single machine could process thousands of records accurately and quickly.
Of course, these computers were still too expensive for small businesses, but for industries
like banking, insurance, airlines, and manufacturing, they were revolutionary.
3. The Turning Point – The Arrival of Personal Computers (1980s)
This was the true game-changer. Until now, computers were like luxury items—only for big
companies with huge budgets. But in the 1980s, the invention of personal computers (PCs)
completely changed the story.
Imagine an office in the 1980s: instead of a single giant machine in the basement, now each
employee could have a small computer on their desk.
This made everyday tasks easier:
• Typing and printing letters using word processors
• Creating business reports using spreadsheets (like the early versions of Excel)
• Maintaining customer databases
• Preparing presentations
Small businesses, which earlier could not dream of affording huge mainframes, now had the
power of computing at their fingertips. This was the era when computers stopped being
“machines” and became “office partners.”
Easy2Siksha.com
4. The Networking Era – Connecting Businesses Globally (1990s)
The 1990s were special because computers stopped being isolated devices. Thanks to
networking and the birth of the Internet, businesses discovered a whole new world.
• Email replaced letters and faxes, making communication faster.
• Online databases made research and record-keeping simpler.
• Businesses could expand internationally with digital communication.
This was also the era when e-commerce started. Companies like Amazon and eBay showed
that business could be done directly through computers and the Internet. Suddenly, a
business in one country could reach customers sitting thousands of miles away.
The world of business had officially gone digital.
5. The Modern Era – Computers as Business Ecosystems (2000s – Present)
Today, computers are no longer just “tools” in business—they are the entire foundation.
From multinational corporations to home-based startups, every business runs on computers
in some form.
Some major transformations include:
• Automation: Machines handle repetitive tasks like invoicing, stock updates, and
emails.
• E-commerce platforms: Businesses sell products worldwide using websites and apps.
• Data Analytics: Computers analyze customer behavior, market trends, and financial
data to help businesses make smart decisions.
• Artificial Intelligence & Cloud Computing: Businesses now use AI chatbots for
customer service, and cloud platforms for storing and sharing massive data securely.
• Remote Work: Computers and internet tools allow people to work from anywhere,
giving rise to freelancing and global collaboration.
From being “giant calculators,” computers have transformed into business partners,
consultants, and even decision-makers.
Advantages of Computers in Business
Now that we’ve walked through the journey, let’s look at why businesses can’t live without
computers today.
Easy2Siksha.com
1. Speed and Efficiency
Time is money in business. Computers complete tasks in seconds that would take humans
hours or even days. Whether it’s calculating salaries for 5,000 employees or generating a
sales report, computers save businesses immense time.
2. Accuracy
A single accounting mistake can cost a company millions. Computers reduce human errors,
especially in calculations and record-keeping, ensuring reliability.
3. Cost Reduction
At first, computers were expensive, but in the long run, they cut costs by reducing the need
for large clerical staff, minimizing mistakes, and increasing productivity.
4. Better Communication
Emails, video calls, instant messaging, and collaborative tools (like Slack or Teams) make
communication quick, professional, and global.
5. Data Management and Storage
Instead of storing thousands of paper files, businesses can now keep entire libraries of
records digitally, saving space and making retrieval simple.
6. Decision-Making Support
Through data analytics, businesses can understand customer needs, market demand, and
competitor strategies—helping leaders make smarter decisions.
7. Global Reach
Thanks to computers and the Internet, even a small business can showcase its products
worldwide through websites and online marketplaces.
Easy2Siksha.com
8. Innovation and Creativity
From digital marketing to product design, computers allow businesses to innovate faster.
Tools like graphic design software, simulation programs, and automation platforms
encourage creativity.
9. Customer Service
Chatbots, online helpdesks, and automated services ensure customers get support instantly,
improving brand loyalty.
Conclusion
The evolution of computers in business is like watching a shy guest turn into the star of the
party. What began as giant, room-sized machines for complex calculations has transformed
into sleek, intelligent systems that run the entire business ecosystem.
Computers didn’t just improve business—they reshaped it. They made businesses faster,
smarter, and more global. Today, they are not just assistants but partners in decision-
making, customer engagement, and innovation.
So, when we look back at the journey, we realize that computers have done more than
automate work—they have redefined what business means in the modern world.
2. What are the different computer tools of business usage ? Explain the features,
advantages and limitations of each.
Ans: 1. Word Processing Tools (e.g., Microsoft Word, Google Docs)
Features:
• Create, edit, and format text documents.
• Insert tables, images, charts, and hyperlinks.
• Spell check, grammar suggestions, and templates.
• Collaboration features in cloud-based tools.
Advantages:
• Speeds up document creation compared to manual typing.
• Professional formatting improves presentation.
• Easy editing without rewriting the whole document.
Easy2Siksha.com
• Cloud versions allow real-time collaboration from anywhere.
Limitations:
• Requires basic computer literacy.
• Formatting can become complex for large documents.
• Risk of data loss if not saved or backed up.
• Over-reliance on templates may limit creativity.
Business Use Example: Drafting contracts, reports, proposals, and meeting minutes.
2. Spreadsheet Tools (e.g., Microsoft Excel, Google Sheets)
Features:
• Organise data in rows and columns.
• Perform calculations using formulas and functions.
• Create charts, pivot tables, and dashboards.
• Data analysis and scenario modelling.
Advantages:
• Handles large amounts of numerical data efficiently.
• Automates repetitive calculations.
• Visualises data for better decision-making.
• Flexible — can be used for budgeting, forecasting, inventory, etc.
Limitations:
• Complex formulas can be hard to learn.
• Errors in formulas can lead to wrong decisions.
• Not ideal for unstructured data.
• Large files may slow down performance.
Business Use Example: Financial analysis, sales tracking, payroll management.
3. Presentation Tools (e.g., Microsoft PowerPoint, Canva, Google Slides)
Features:
• Create slide-based visual presentations.
• Add images, videos, animations, and transitions.
• Use templates for quick design.
• Share and present online or offline.
Advantages:
• Makes ideas visually engaging.
Easy2Siksha.com
• Helps structure information logically.
• Supports multimedia for better impact.
• Easy to update and reuse presentations.
Limitations:
• Overuse of effects can distract from content.
• Poor design can reduce message clarity.
• Requires design sense for maximum impact.
• File compatibility issues between different software.
Business Use Example: Sales pitches, training sessions, project updates.
4. Database Management Tools (e.g., Microsoft Access, MySQL, Oracle)
Features:
• Store, organise, and retrieve large volumes of data.
• Query data using SQL or built-in tools.
• Maintain data integrity and security.
• Support multi-user access.
Advantages:
• Centralised data storage reduces duplication.
• Fast retrieval of specific information.
• Scalable for growing data needs.
• Supports complex relationships between data sets.
Limitations:
• Requires technical skills to design and manage.
• Can be expensive for enterprise-level solutions.
• Needs regular maintenance and backups.
• Vulnerable to cyber threats if not secured.
Business Use Example: Customer relationship management, inventory systems, employee
records.
5. Communication Tools (e.g., Email, Microsoft Teams, Slack, Zoom)
Features:
• Send and receive messages instantly.
• Share files, images, and links.
• Video conferencing and screen sharing.
• Group chats and channels for team collaboration.
Easy2Siksha.com
Advantages:
• Speeds up internal and external communication.
• Reduces travel costs through virtual meetings.
• Keeps a record of conversations for reference.
• Enables remote work and global collaboration.
Limitations:
• Information overload from too many messages.
• Miscommunication without face-to-face cues.
• Security risks from phishing or hacking.
• Requires stable internet connection.
Business Use Example: Client communication, team coordination, virtual training.
6. Accounting and Financial Tools (e.g., Tally, QuickBooks, Zoho Books)
Features:
• Record and track income, expenses, and assets.
• Generate invoices, receipts, and financial statements.
• Automate tax calculations and compliance.
• Integrate with bank accounts.
Advantages:
• Saves time compared to manual bookkeeping.
• Reduces errors in financial records.
• Provides real-time financial insights.
• Simplifies tax filing and audits.
Limitations:
• Subscription or licence costs.
• Requires training to use effectively.
• Data security concerns if cloud-based.
• May not fit unique business processes without customisation.
Business Use Example: Managing company accounts, payroll, and tax compliance.
7. Project Management Tools (e.g., Trello, Asana, Microsoft Project)
Features:
• Plan, assign, and track tasks.
• Set deadlines and milestones.
• Visualise progress with boards, lists, or Gantt charts.
Easy2Siksha.com
• Collaborate with team members.
Advantages:
• Improves organisation and accountability.
• Keeps projects on schedule.
• Enhances transparency in team work.
• Centralises project-related communication.
Limitations:
• Learning curve for advanced features.
• Overcomplication for small projects.
• Dependence on internet for cloud tools.
• May require integration with other systems.
Business Use Example: Product launches, marketing campaigns, software development.
8. Graphic Design Tools (e.g., Adobe Photoshop, Canva, CorelDRAW)
Features:
• Create and edit images, logos, and marketing materials.
• Use templates, layers, and effects.
• Export in multiple formats.
• Integrate with other media tools.
Advantages:
• Enhances brand identity through professional visuals.
• Supports creative marketing campaigns.
• Customisable for different platforms.
• Cloud tools allow collaboration with designers.
Limitations:
• Professional tools can be expensive.
• Requires design skills for best results.
• Large files may require powerful hardware.
• Time-consuming for complex designs.
Business Use Example: Social media posts, brochures, advertisements.
9. E-commerce and Web Tools (e.g., Shopify, WordPress, WooCommerce)
Features:
• Build and manage online stores.
Easy2Siksha.com
• Process payments securely.
• Track orders and manage inventory.
• Integrate with marketing and analytics tools.
Advantages:
• Expands market reach beyond physical location.
• Operates 24/7 for customer convenience.
• Automates sales and order processing.
• Provides data on customer behaviour.
Limitations:
• Requires ongoing maintenance and updates.
• Competition is high in online markets.
• Security risks like hacking or fraud.
• Dependence on internet connectivity.
Business Use Example: Selling products online, booking services, digital marketing.
10. Business Analytics Tools (e.g., Power BI, Tableau, Google Analytics)
Features:
• Collect and analyse data from multiple sources.
• Create interactive dashboards and reports.
• Identify trends and patterns.
• Support predictive modelling.
Advantages:
• Data-driven decision-making.
• Visual insights for quick understanding.
• Customisable reports for different stakeholders.
• Improves forecasting accuracy.
Limitations:
• Requires analytical skills to interpret results.
• Can be costly for advanced versions.
• Data quality affects accuracy.
• Integration challenges with legacy systems.
Business Use Example: Sales performance analysis, market research, customer
segmentation.
Easy2Siksha.com
Bringing It All Together
Think of these tools as the toolbox of a modern business:
• Word processors and spreadsheets are your hammers and screwdrivers — essential
for everyday tasks.
• Presentation and graphic design tools are your paintbrushes — making your work
appealing.
• Databases and analytics tools are your measuring tapes — ensuring accuracy.
• Communication and project management tools are your glue — holding the team
together.
• Accounting and e-commerce tools are your cash registers — keeping the business
running and growing.
Conclusion
Different computer tools serve different purposes in business, but they all share a common
goal: to make work faster, smarter, and more effective. Each tool has its features that
make it powerful, advantages that make it valuable, and limitations that remind us to use it
wisely.
A successful business doesn’t just own these tools — it knows when and how to use each
one, just like a skilled craftsman in a workshop.
SECTION-B
3. Discuss the features of computerized accounting. What are the advantages of using
computers in accounting? Discuss in detail.
Ans: What is Computerized Accounting?
Computerized accounting is the use of accounting software and computer systems to
record, store, process, and present financial data. Instead of writing entries by hand in
physical books, transactions are entered into a program that automatically updates ledgers,
prepares reports, and ensures accuracy.
It’s like moving from a bicycle to a high-speed train — the destination is the same (accurate
accounts), but the journey is much faster, smoother, and more reliable.
Features of Computerized Accounting
Let’s walk through the key features that make computerized accounting so powerful.
Easy2Siksha.com
1. Speed and Accuracy
• Transactions are processed instantly once entered.
• Built-in checks reduce calculation errors.
• Complex reports can be generated in seconds.
Example: Preparing a trial balance manually might take hours; with software, it’s instant.
2. Automation of Routine Tasks
• Recurring entries (like monthly rent or salaries) can be automated.
• Depreciation, interest calculations, and tax computations are handled by the system.
Benefit: Saves time and reduces repetitive work.
3. Real-Time Data Access
• Financial data is updated immediately after each transaction.
• Managers can see the latest figures anytime.
Impact: Enables quick decision-making.
4. Data Security and Backup
• Password protection and user access controls safeguard sensitive information.
• Regular backups prevent data loss.
Example: Even if a computer crashes, cloud backups keep data safe.
5. Scalability
• Can handle increasing volumes of transactions as the business grows.
• Suitable for small firms and large corporations alike.
6. Integration with Other Systems
• Links with inventory, payroll, and banking systems.
• Reduces duplication of data entry.
7. Customisable Reports
• Generate balance sheets, profit & loss accounts, cash flow statements, and
customised MIS reports.
• Filter data by period, department, or project.
8. Compliance Support
• Many systems are updated with the latest tax laws and accounting standards.
Easy2Siksha.com
• Helps in GST filing, TDS calculations, and statutory reporting.
9. Multi-User and Remote Access
• Multiple authorised users can work simultaneously.
• Cloud-based systems allow access from anywhere.
10. Audit Trail
• Every entry is time-stamped and linked to the user who made it.
• Makes auditing easier and more transparent.
Advantages of Using Computers in Accounting
Now that we’ve seen the features, let’s explore the benefits in detail.
1. Time Efficiency
• Manual bookkeeping is slow; computers handle large volumes of data quickly.
• Reports that once took days can be ready in minutes.
Story Example: In the old days, closing the books at year-end meant late nights for
accountants. Now, with computerized systems, year-end closing can be done in a fraction of
the time.
2. Greater Accuracy
• Automated calculations reduce human error.
• Built-in validation checks catch mistakes before they cause problems.
3. Cost Savings
• Reduces the need for large accounting teams for routine work.
• Saves on paper, printing, and storage costs.
4. Better Decision-Making
• Real-time reports give management up-to-date insights.
• Helps in budgeting, forecasting, and strategic planning.
5. Easy Data Retrieval
• Search and retrieve past records instantly.
• No need to dig through physical files.
6. Improved Security
• Access controls ensure only authorised personnel can view or edit data.
Easy2Siksha.com
• Encryption protects sensitive information.
7. Facilitates Compliance
• Keeps records in formats required by law.
• Generates tax returns and statutory reports automatically.
8. Enhances Collaboration
• Multiple users can work on the same data set without conflict.
• Cloud systems allow accountants, auditors, and managers to collaborate remotely.
9. Supports Growth
• As the business expands, the system can handle more transactions without a drop in
performance.
10. Environmental Benefits
• Reduces paper usage, contributing to eco-friendly practices.
Limitations to Keep in Mind
While the advantages are many, it’s fair to note a few limitations:
• Initial Cost: Buying software and hardware can be expensive.
• Training Needs: Staff must be trained to use the system effectively.
• Technical Issues: System failures or cyberattacks can disrupt work.
• Dependence on Power/Internet: Cloud systems need reliable connectivity.
A Day in the Life — Manual vs Computerized
Manual Accounting Day:
• Morning: Record yesterday’s sales in the ledger.
• Afternoon: Add up totals, check for errors.
• Evening: Prepare a basic report for the manager.
Computerized Accounting Day:
• Morning: Enter yesterday’s sales — system updates ledgers instantly.
• Afternoon: Generate a detailed sales report with graphs.
• Evening: Email the report to the manager and upload it to the cloud.
The difference is clear — less time on routine work, more time for analysis and strategy.
Conclusion
Easy2Siksha.com
Computerized accounting has transformed the way businesses manage their finances. Its
features — from speed and accuracy to integration and security — make it an indispensable
tool in today’s competitive environment. Its advantages — time savings, accuracy, cost
efficiency, better decision-making — directly contribute to business success.
In short, it’s like upgrading from a hand-drawn map to GPS navigation: you still reach your
destination, but with far more speed, precision, and confidence.
4. What are the different types of accounting software? Discuss in detail the features of
accounting software?
Ans: A Fresh Beginning
Imagine you are opening a small sweet shop in your city. At first, business is simple—you
buy sugar, milk, dry fruits, make sweets, and sell them. At the end of the day, you just count
the cash in your box and note it down in a small diary. Easy, right?
But as your business grows, you open two more shops, start giving sweets on credit to
caterers, hire employees, and also pay GST and income tax. Now your little diary is not
enough. You need something faster, smarter, and more reliable—this is where accounting
software enters the story.
Accounting software is like a digital assistant that takes care of all the money-related
records, calculations, and reports of a business. Just like a calculator does quick math,
accounting software does the whole accounting cycle—recording transactions, preparing
accounts, generating statements, and even analyzing financial health.
Part 1: Types of Accounting Software
Just like not every person wears the same shoe size, not every business uses the same
accounting software. Businesses choose different types depending on their size, needs, and
budget. Let’s understand them step by step:
1. Spreadsheets Software
This is the simplest form of accounting, often used by small shopkeepers, freelancers, or
startups. Microsoft Excel or Google Sheets can act as accounting software when businesses
are small.
• Example: A tuition teacher may maintain fee records of students in Excel.
Easy2Siksha.com
• Pros: Cheap, easy, customizable.
• Cons: Prone to errors, not suitable for large businesses.
2. Commercial / Ready-made Accounting Software
These are pre-designed software available in the market for general business needs. They
are affordable and easy to use.
• Examples: Tally, Busy, Zoho Books, QuickBooks.
• Who uses it? Small to medium-sized businesses, shops, and service providers.
• Pros: Affordable, user-friendly, wide support.
• Cons: Limited customization.
3. Enterprise Resource Planning (ERP) Software
When a company grows very large, accounting becomes only one part of management.
They also need control over HR, production, supply chain, and customer relations. ERP
integrates everything in one system, with accounting as a key module.
• Examples: SAP, Oracle NetSuite, Microsoft Dynamics.
• Who uses it? Large corporations and MNCs.
• Pros: Highly integrated, powerful, scalable.
• Cons: Very expensive, requires training.
4. Customized Accounting Software
Some businesses have very unique requirements. For example, a hospital, a bank, or an
airline may need tailor-made solutions. In such cases, they hire software developers to build
custom accounting software.
• Example: A bank’s internal accounting system.
• Pros: Fits exact business needs, unique features.
• Cons: Costly and time-consuming to build.
5. Cloud-based Accounting Software
This is the modern era of accounting. Everything is on the internet, accessible from
anywhere, anytime.
• Examples: FreshBooks, Zoho Books (cloud version), QuickBooks Online.
Easy2Siksha.com
• Who uses it? Startups, freelancers, and even big businesses that want remote
access.
• Pros: No need to install, automatic backups, collaboration.
• Cons: Requires internet, subscription-based cost.
6. Industry-specific Accounting Software
Some industries need specialized features. For example:
• Hotels need software that manages room booking + billing.
• Schools need fee management systems.
• Manufacturing companies need production cost tracking.
Thus, industry-specific accounting software is developed for such businesses.
In short, the types of accounting software can be grouped into:
• Spreadsheets software
• Ready-made software
• ERP systems
• Customized software
• Cloud-based software
• Industry-specific software
Part 2: Features of Accounting Software
Now that we know the types, let’s explore the features—the qualities that make accounting
software truly useful. Think of features as the “superpowers” of accounting software that
make life easy for businesses.
1. Automation of Records
No more writing entries manually in bulky registers. The software automatically records
transactions once you enter them. For example, when you sell an item, it updates sales,
stock, and cash accounts instantly.
2. Accuracy and Error Reduction
Easy2Siksha.com
Human beings often make calculation mistakes. But accounting software reduces such
errors. For example, if you enter ₹10,000 sale with 18% GST, the software calculates tax
automatically.
3. Financial Reporting
One of the strongest features is report generation. With just one click, you can generate:
• Profit and Loss Account
• Balance Sheet
• Cash Flow Statement
• Trial Balance
This saves huge time for accountants.
4. Data Security
Good software keeps sensitive financial data safe with passwords, encryption, and access
control. Cloud-based systems also provide backups, so data is not lost.
5. Scalability
A small shop today can grow into a chain of stores tomorrow. Accounting software is
scalable, meaning it can handle growing data and transactions.
6. Integration with Other Systems
ERP and modern software integrate accounting with payroll, inventory, and even customer
management. For example, when inventory goes below a certain level, the software can
alert the purchase department.
7. Remote Access (Cloud Feature)
With cloud software, owners can check their business accounts even while traveling. A
shopkeeper sitting at home can know sales figures of all branches instantly.
Easy2Siksha.com
8. Customization Options
Many software allow customization like adding new fields, designing invoices, or setting tax
rules as per country.
9. Cost and Time Efficiency
Instead of hiring multiple accountants, software can do much of the routine work
automatically, saving cost and time.
10. User-friendliness
Even non-accountants can use it with minimal training. Dashboards, colorful graphs, and
simple interfaces make it easy to understand.
11. Regulatory Compliance
Modern accounting software comes with features to handle GST, VAT, income tax, and
other statutory requirements. This ensures businesses stay compliant with laws.
Part 3: Why Accounting Software Matters?
Think back to our sweet shop story. If you only rely on memory or handwritten diaries:
• You may forget who owes you money.
• You may miscalculate profits.
• You may lose tax records during inspection.
But with accounting software, every transaction is recorded, analyzed, and stored safely. It
acts like a loyal, never-tired accountant who works 24×7 without complaint.
Conclusion
Accounting software has become the backbone of modern businesses. From small shops
using spreadsheets to giant corporations running on ERP systems, every business now relies
on it. The choice depends on size, budget, and complexity, but the features remain
universally helpful—automation, accuracy, reporting, security, and compliance.
Easy2Siksha.com
In simple words, accounting software is not just a tool; it’s like the digital nervous system of
a business, keeping every money-related activity connected and under control. Without it,
businesses today would struggle to survive in this fast and competitive world.
SECTION-C
5. (a) Briefly explain the features of TALLY.
(b) Discuss the steps of activating TALLY for single-user and multi-user.
Ans: The accounts department is buzzing. Files are open, invoices are being checked, and
the manager walks in with a smile:
“Relax, everyone. We’ve got Tally — it’s going to handle the heavy lifting.”
That’s the charm of Tally — it’s not just software, it’s like having a super-efficient
accountant who never gets tired, never makes a calculation error, and can pull up any
report in seconds.
We’ll first explore its features (what makes it so powerful), and then walk through the exact
steps to activate it for both single-user and multi-user setups — in a way that feels like a
story you can visualise.
(a) Features of Tally
Tally (now in its latest avatar as TallyPrime) is one of India’s most trusted accounting and
business management software. It’s used by small shops, large corporations, and everything
in between. Here’s what makes it special:
1. Simple and User-Friendly
• Easy to install and navigate — even someone with basic accounting knowledge can
start using it quickly.
• Keyboard shortcuts make work faster.
• Clean interface with logical menus.
Story feel: Imagine teaching a new intern — with Tally, they can start entering vouchers on
day one without feeling lost.
2. Comprehensive Accounting
• Handles all core accounting functions: ledgers, vouchers, journal entries, trial
balance, profit & loss, balance sheet.
• Supports double-entry bookkeeping automatically.
Easy2Siksha.com
Impact: No need to manually balance debits and credits — Tally does it instantly.
3. GST and Compliance Ready
• Generates GST-compliant invoices.
• Auto-calculates GST, prepares GSTR-1, GSTR-3B, and reconciles with GSTR-2A/2B.
• Handles reverse charge, input tax credit, and e-invoicing.
Benefit: Saves hours of compliance work and reduces errors.
4. Inventory Management
• Tracks stock by item, batch, expiry date, location, or godown.
• Generates stock ageing reports, reorder levels, and movement analysis.
• Integrates inventory with accounts — so stock and financials are always in sync.
5. Multi-Currency and Multi-Language Support
• Can invoice and maintain accounts in multiple currencies.
• Supports multiple Indian languages — you can enter data in one language and view
reports in another.
6. Payroll Management
• Automates salary calculation, deductions (PF, ESI), and payslip generation.
• Maintains employee records.
7. Remote Access and Multi-User Capability
• With the right licence, multiple users can work on the same company data over a
LAN.
• Remote access allows authorised users to log in from anywhere.
8. Powerful Reporting
• Over 400 reports — from cash flow to ratio analysis.
• Drill-down feature lets you click on a figure in a report and see the underlying
transactions.
• Customisable views for different needs.
9. Security and User Management
• Create multiple security levels.
• Restrict access to sensitive data based on user roles.
• Audit trail to track who did what and when.
10. Scalability
Easy2Siksha.com
• Handles data for up to 99,999 companies.
• Suitable for a small shop or a large enterprise without changing the core system.
In short: Tally is like a Swiss Army knife for business — accounting, inventory, compliance,
payroll, reporting, and security — all in one neat package.
(b) Steps to Activate Tally for Single-User and Multi-User
Before you can enjoy all these features, you need to activate your Tally licence. Think of it
like getting the keys to a brand-new car — you can admire it in the showroom, but to drive
it, you need to register it.
Tally offers two main licence types:
• Single-User (Silver Licence): For use on one computer.
• Multi-User (Gold Licence): For use by multiple people on different computers within
the same LAN.
1. Activating Tally for Single-User (Silver Licence)
Scenario: You’re a small business owner with one computer in your office for accounts.
Steps:
1. Start TallyPrime
o Open TallyPrime on your computer.
o The “Welcome to TallyPrime” screen appears.
2. Choose Activate New License
o Select A: Activate License (or click the option).
3. Enter Licence Details
o Input your Serial Number, Activation Key, and Administrator Email ID
(Tally.NET ID).
o This email becomes your account ID for all future licence activities.
4. Receive Unlock Key
o Tally sends an Unlock Key to your registered email.
o Enter this key in the “Unlock License” screen.
5. Complete Activation
o Press Enter — your licence is now active.
o You can now create your first company and start recording transactions.
Tip: Keep your Tally.NET ID and password safe — you’ll need them for renewals or
reactivation.
2. Activating Tally for Multi-User (Gold Licence)
Scenario: You have an accounts team of 5 people, each with their own computer, all
connected via LAN.
Easy2Siksha.com
Steps:
1. Choose a Server System
o Pick one computer to act as the Licence Server — it should be on and
connected to the network whenever others need Tally.
2. Activate on the Server
o On the server system, open TallyPrime.
o Select A: Activate License.
o Enter your Serial Number, Activation Key, and Administrator Email ID.
o Enter the Unlock Key received via email.
3. Configure Client Systems
o On each other computer (client), open TallyPrime.
o Press F1 (Help) > Settings > Manage License.
o Choose Use License from Network.
o Enter the Computer Name/IP and Port Number of the server system.
4. Test the Connection
o Once configured, all client systems can use Tally simultaneously, sharing the
same company data.
Tip: The server system must remain available for clients to access the licence.
3. Common Points for Both
• Run as Administrator: When activating, right-click the TallyPrime icon and choose
“Run as Administrator” to avoid permission issues.
• Internet Connection: Required during activation to communicate with Tally’s
servers.
• Backup: Always back up your company data before making major changes.
A Quick Story Recap
Picture this:
• Ravi, a shop owner, buys a single-user licence. He follows the steps, activates Tally
on his office PC, and starts billing customers the same day.
• Meera, who runs a chain of boutiques, buys a multi-user licence. She activates it on
her head office server, configures all branch computers, and now her accounts team
works in sync, updating stock and sales in real time.
Both are using the same Tally features — but activation tailored to their needs makes all the
difference.
Conclusion
Tally’s features make it a complete business solution — from accounting and GST
compliance to inventory and payroll. Activating it is straightforward, whether you’re a solo
entrepreneur with a single PC or a large team needing multi-user access.
Easy2Siksha.com
Once activated, it’s like unlocking a powerful engine for your business — one that runs
smoothly, keeps you compliant, and gives you the insights you need to grow.
6. What are the new features of TALLY? Also explain the process of installation and
running of TALLY.
Ans: Imagine for a moment that you are opening a small shop in your town. You are
excited—there are products on the shelves, customers walking in, and money coming in and
going out every single day. But soon you realize something:
“How will I keep track of all these sales, purchases, taxes, and reports without getting lost in
messy registers and endless pages of accounts?”
This is exactly the problem that Tally was created to solve. Tally is like that intelligent
assistant who never forgets, always stays organized, and ensures that your business records
are safe and accurate. And the beauty of Tally is that with every new version, it becomes
smarter, faster, and more user-friendly.
Now, let’s walk step by step—first, by exploring the new features of Tally, and then moving
on to the installation and running process. To make it enjoyable, think of it as a journey
where Tally is a helpful guide in your business adventure.
New Features of Tally
Earlier versions of Tally were good, but modern businesses needed something more flexible,
more connected, and more reliable. That’s why newer editions (like TallyPrime) introduced
features that make accounting feel less like a burden and more like an effortless activity.
Here are some of the most important new features of Tally:
1. Simplified Interface (Easy to Use)
The first thing you notice in TallyPrime is how simple the design is. The menus, buttons, and
options are cleaner. It is built so that even someone who is using Tally for the first time
doesn’t feel lost. Imagine your shop assistant, who has never done accounting before,
quickly learning how to use Tally in a day or two—that’s the power of its new interface.
Easy2Siksha.com
2. Powerful Search and Navigation
Earlier, you had to remember exact menu paths to reach certain reports. But now, Tally
allows you to type keywords (like “sales”, “stock summary”, “GST report”), and it directly
takes you there. Think of it like using Google inside your accounting software—fast, smart,
and time-saving.
3. Better Multi-Tasking
Businesses don’t just deal with one thing at a time. You might want to check sales while
entering purchase data, or look at stock details while preparing an invoice. TallyPrime lets
you multi-task easily. You can open multiple reports, switch between them, and work
without closing one task to start another.
4. GST and Compliance Made Easy
Tax compliance is a headache for almost every business. Tally’s newer versions have in-built
support for GST, TDS, and TCS, with automatic calculations, return preparation, and error
detection. Imagine you are filing GST returns—Tally not only prepares the reports but also
highlights mistakes like missing GST numbers or wrong rates, saving you from penalties.
5. Remote Access and Data Security
One of the most exciting new features is Tally on Cloud or remote access. Now, you don’t
have to be in your shop or office to check your accounts. You could be sitting at home or
traveling, yet still log in securely and access your business data. At the same time, Tally has
upgraded its data encryption and security so your information is safe from misuse.
6. Faster Reports with More Insights
Tally has always been known for instant reports. In the newer versions, reports like Profit &
Loss Account, Balance Sheet, Stock Summary, Cash Flow appear even faster, with more
filters and customization options. You can slice and dice your data—like viewing sales by
customer, by region, or by product category—all in seconds.
Easy2Siksha.com
7. Flexibility in Setup
Unlike earlier rigid structures, TallyPrime gives flexibility. You can start entering transactions
with minimal setup and add details later. For example, if you don’t know your customer’s
GST number at the time of sale, you can still create the bill and update it later.
8. Better Connectivity with Other Apps
Modern businesses use multiple software. New Tally versions can integrate with other apps
and export/import data in formats like Excel, XML, or JSON. This makes it easy to connect
your accounts with government portals or third-party tools.
In short, the new features of Tally make it simpler, faster, more secure, and more
connected—like upgrading from a regular phone to a smartphone.
Process of Installation and Running of Tally
Now that we know what makes Tally so powerful, let’s imagine you are ready to install it for
your shop. Installing Tally is almost like setting up a new gadget—you just follow the steps,
and soon it’s ready to serve you.
Step 1: Getting Tally Setup File
First, you need to download the Tally installation file. You can get it from the official
website of Tally Solutions or from a licensed dealer. It usually comes as an .exe file.
Step 2: Starting the Installation
Once you double-click the setup file, an installation wizard opens. It’s like the welcome mat
inviting you inside. The wizard asks you where you want to install Tally on your computer
(by default, it chooses the C: drive). You can simply press “Next” unless you want to
customize.
Step 3: Choosing Type of Installation
You’ll see options like:
Easy2Siksha.com
• Normal Installation – for regular users.
• Server Installation – if you want to use Tally in a multi-user environment.
For most small businesses, “Normal” works just fine.
Step 4: Completing Installation
After confirming, click “Install”. Within a few moments, Tally is installed, and a shortcut
appears on your desktop.
Step 5: Activating the License
When you open Tally for the first time, it asks whether you want to:
• Activate License (if you purchased it)
• Use Educational Mode (a free version with some restrictions, useful for students)
Most students practicing accounting choose the educational mode, while businesses
activate the license using their serial number and activation key.
Step 6: Creating a Company
This is where the real fun begins. You now tell Tally about your business:
• Name of the company
• Address and contact details
• Financial year starting date
• Currency (like INR)
Once done, your company is created, and you enter the Tally world.
Step 7: Running Tally – Day-to-Day Use
Now comes the daily operations:
1. Creating Ledgers and Groups – You define heads like “Cash”, “Sales”, “Purchases”,
“Bank Accounts”, “Sundry Debtors”, etc.
2. Entering Vouchers – Every transaction in business is entered using vouchers (Sales
voucher, Purchase voucher, Receipt voucher, Payment voucher, etc.).
Easy2Siksha.com
3. Generating Reports – At any time, you can see reports like Balance Sheet, Stock
Summary, or GST Returns.
4. Backup and Restore – Tally also allows you to take backups of your data, ensuring
safety.
Running Tally daily is like maintaining a digital diary of your business, but instead of just
words, it captures every single rupee.
Conclusion
If we step back and look at the big picture, Tally is more than just accounting software. It is
like the heartbeat of a business, silently recording every pulse of money flow, making sure
the owner is always informed and compliant. The new features—from simplified navigation
to GST support and remote access—make it an indispensable tool for modern businesses.
The installation process is straightforward, almost like unwrapping and setting up a new
phone, while the running of Tally is like journaling your business journey day by day.
So, whether you are a student learning accounting or a business owner managing a
company, Tally is that trustworthy partner who ensures your financial story is always told
clearly, accurately, and beautifully.
SECTION-D
7. What are the various components of Gateway of TALLY? Discuss the items of the Button
bar, Main area and Info panel.
Ans: A Fresh Beginning
Imagine you’ve just entered a huge office building for the very first time. This building is no
ordinary office—it’s the office of your own business, and Tally is like the manager who
helps you run everything smoothly. But the moment you step into the office, you don’t
directly start working; first, you come to the reception area.
This reception is called the Gateway of Tally. It is like the main door where all the activities
of your business are listed neatly, waiting for you to choose what you want to do. Whether
it’s accounting, inventory, payroll, or generating reports—everything begins here.
But the Gateway is not just a simple list. It has different components—just like any office
has different sections such as reception desk, waiting area, information board, and control
switches. These components in Tally are:
1. Button Bar
Easy2Siksha.com
2. Main Area
3. Info Panel
Now, let’s take a guided tour through this office and explore what each section really
means.
The Button Bar – Your Shortcut Panel
Think of the Button Bar as a row of special switches or shortcuts, placed right at your
reception desk. Imagine the receptionist in the office saying, “Sir, if you want quick access,
just press these buttons instead of searching through the whole office.”
In Tally, the Button Bar is usually seen on the right-hand side of the screen. It is context-
sensitive, which means the buttons keep changing depending on where you are. For
example, if you are entering a voucher, you’ll see buttons related to vouchers. If you’re
looking at a report, you’ll get options to modify or export it.
Some commonly seen buttons are:
• F1: Select Company – Just like choosing which office you want to enter if you own
multiple branches.
• F2: Date – Imagine you telling your manager, “Show me the work of this specific
date.”
• F3: Company Info – Think of it as accessing the entire company’s file cabinet.
• F11: Features – This is like adjusting the office setup—turning on or off the facilities
you want.
• F12: Configuration – Fine-tuning the system to suit your working style, like adjusting
office chairs or lights for comfort.
• Alt + C: Create – Suppose while writing a letter you suddenly realize you need a new
file; instead of leaving the work, you instantly create it. That’s what this button does.
• Ctrl + A: Accept – This is the classic “Okay, done!” button that saves your work.
The magic of the Button Bar is its speed. You don’t need to waste time searching through
menus. Just one click or shortcut key, and you’re there.
The Main Area – The Heart of the Gateway
Now let’s move from the reception into the main hall of the office. This is where the real
activity happens. In Tally, this main hall is called the Main Area, and it is divided into two
parts:
1. Left-hand side (Masters and Transactions)
2. Right-hand side (Reports)
Easy2Siksha.com
Let’s break them down one by one.
1. Masters and Transactions
The left-hand side is like your operations department—the place where you define and
record things.
• Masters are like permanent files. For example, you create records of ledgers, stock
items, groups, and employees. Once created, they become the backbone of your
office.
• Transactions are like the daily entries made in the office diary. For example, sales
vouchers, purchase vouchers, payments, receipts—all these keep your business
moving every day.
This area is action-oriented. You are either creating, altering, or deleting something.
2. Reports
The right-hand side is more like the accounts and audit department, where you analyze
what has already happened. Reports include Balance Sheet, Profit & Loss, Stock Summary,
GST reports, and so on.
The beauty is that reports in Tally are real-time. The moment you pass a voucher on the left-
hand side, its effect instantly shows on the right-hand side. Imagine writing down today’s
sales in the operations diary and immediately seeing the balance sheet updated in the audit
department—that’s how seamless it is.
So, the Main Area is like the office’s “working ground”—half for recording, half for
analyzing.
The Info Panel – Your Office Dashboard
Before leaving the reception, your eyes probably noticed a big information board on the
wall. This is what Tally calls the Info Panel, usually placed on the bottom of the screen.
This panel gives you at-a-glance details, almost like the pulse of your business. It is divided
into three smaller areas:
1. Version and Licensing Details
o This is like your office’s registration certificate. It tells you which version of
Tally you are using and whether your license is valid.
2. Company Details
o It shows the name of the company currently open, the financial year, and the
working period. In our office example, this is like a nameplate outside the
office saying: “Welcome to XYZ Pvt. Ltd., Financial Year 2025–26.”
3. Connectivity Details
Easy2Siksha.com
o In today’s digital era, this part is like your Wi-Fi status board. It shows
whether your company data is connected for remote access, whether
Tally.NET services are enabled, or whether synchronization is happening.
The Info Panel does not demand action; instead, it informs you. It makes sure you always
know the status of your office and prevents confusion.
Why These Three Together Matter
Now, let’s pause and see why these three sections—Button Bar, Main Area, and Info
Panel—make the Gateway of Tally so powerful.
• The Button Bar gives you speed and convenience.
• The Main Area gives you functionality—recording and analyzing data.
• The Info Panel gives you clarity about the environment you are working in.
Together, they act like three key parts of a smart office: the switchboard, the workspace,
and the dashboard. Without even one of them, your work would feel incomplete or
confusing.
Wrapping It Up with a Story Touch
Imagine you’re running a supermarket. Every morning, you enter the office (Gateway of
Tally).
• On the Button Bar, you quickly press the shortcut to set today’s date.
• In the Main Area, your staff enters purchase invoices on the left and immediately
sees updated stock reports on the right.
• On the Info Panel, you check whether the company data is connected online so your
accountant sitting in another city can also access it.
By the end of the day, you realize that this “reception-like” Gateway is not just an entry
point—it is the control room of your business.
Final Words
The Gateway of Tally is much more than a screen; it’s the nerve center of the entire
software. With the Button Bar guiding you through shortcuts, the Main Area balancing
between data entry and reporting, and the Info Panel ensuring clarity about the company’s
environment, you get a complete ecosystem in one place.
Easy2Siksha.com
So, if Tally is your business manager, the Gateway is like its smiling reception desk that
makes sure you never get lost, always stay informed, and finish your work with ease.
8. What are the steps to create a company in TALLY? Explain all the details to be filled in
create company screen.
Ans: Step 1: Opening the Create Company Screen
When you launch TallyPrime for the first time:
• You’ll see the Gateway screen with options like Create Company, Select Company,
etc.
• If you already have a company open and want to create another, press Alt + K
(Company) → Create.
This is like opening a blank diary where you’ll write your business story.
Step 2: Filling in the Company Details
The “Create Company” screen is divided into sections. Let’s go through them one by one.
1. Directory
• What it is: The folder path where your company’s data will be stored.
• Default: Usually something like C:\Users\Public\TallyPrime\Data.
• Tip: You can change it if you want to store data on another drive or a shared network
location.
Why it matters: This is your company’s “locker” in Tally. Keep it safe and back it up
regularly.
2. Name
• What it is: The legal name of your business.
• Example: Rishabh Traders Pvt. Ltd.
• Tip: This is how Tally will identify your company internally.
3. Mailing Name
• What it is: The name that will appear on invoices, reports, and correspondence.
• Example: You might have the company name as Rishabh Traders Pvt. Ltd. but the
mailing name as Rishabh Traders for simplicity.
• Tip: Can be the same as the company name or slightly different for branding.
4. Address
Easy2Siksha.com
• What it is: Your complete business address.
• Tip: This will be printed on invoices and other documents, so make sure it’s accurate.
5. Country
• What it is: Select your country from the list (e.g., India).
• Why it matters: Determines statutory compliance settings like GST, VAT, etc.
6. State
• What it is: Select your state (e.g., Punjab).
• Why it matters: Important for state-specific tax rules and GST place-of-supply
calculations.
7. Pin Code
• What it is: Your area’s postal code.
• Tip: Helps in proper addressing on printed documents.
8. Contact Details
• Phone Number: Landline or mobile.
• Mobile Number: For quick contact.
• Fax Number: Optional, if applicable.
• Email: Official business email.
• Website: If you have one.
Why it matters: These details appear on invoices and help customers reach you.
Step 3: Financial Year and Books Beginning
1. Financial Year Beginning From
• What it is: The start date of your financial year.
• In India: Usually 1st April.
• Tip: This affects how Tally organises your reports.
2. Books Beginning From
• What it is: The date from which you want to start recording transactions in Tally.
• Example: If you’re starting mid-year, you can set this to, say, 1st July.
• Tip: This can be the same as the financial year start or later.
Step 4: Security and User Control
1. TallyVault Password
• What it is: An encryption password to protect your company data.
Easy2Siksha.com
• Tip: Highly secure — without this password, the data cannot be accessed even if
someone has the files.
2. User Name and Password
• What it is: Login credentials for accessing the company.
• Why it matters: Allows you to control who can open and work on the company.
Step 5: Base Currency Information
1. Base Currency Symbol
• Example: ₹ for Indian Rupee.
• Tip: Tally automatically sets this based on your country.
2. Formal Name
• Example: Indian Rupee.
3. Suffix Symbol to Amounts
• Yes/No: Whether to show ₹ after amounts.
4. Add Space Between Amount and Symbol
• Yes/No: For formatting preference.
5. Show Amounts in Millions
• Yes/No: Useful for large-scale reporting.
6. Number of Decimal Places
• Usually 2 for currency.
Step 6: Statutory & Taxation Details
If you’ve selected India as your country, you’ll see:
• Enable Goods & Services Tax (GST): Yes/No.
• State: Auto-filled from earlier.
• GSTIN/UIN: Your GST registration number.
• PAN/Income Tax Number: For income tax compliance.
• Enable TDS/TCS: Yes/No, depending on your business needs.
Tip: You can enable or disable these later from the F11 Features menu.
Step 7: Saving the Company
Easy2Siksha.com
Once all details are filled:
• Press Ctrl + A to accept and save.
• Tally will create the company and take you to the Gateway of Tally for that company.
A Quick Example Walkthrough
Let’s say you’re creating a company for Bright Future Electronics.
1. Directory: D:\TallyData
2. Name: Bright Future Electronics Pvt. Ltd.
3. Mailing Name: Bright Future Electronics
4. Address: 21, Mall Road, Amritsar, Punjab
5. Country: India
6. State: Punjab
7. Pin Code: 143001
8. Phone: 0183-123456
9. Email: accounts@brightfuture.com
10. Financial Year Beginning: 01-04-2025
11. Books Beginning: 01-04-2025
12. TallyVault Password: (set if needed)
13. Base Currency: ₹ Indian Rupee
14. Enable GST: Yes
15. GSTIN: 03ABCDE1234F1Z5
16. PAN: ABCDE1234F
Press Ctrl + A — and your company is ready to record transactions.
Why Each Field Matters
• Accuracy here saves headaches later. For example, wrong GSTIN means wrong tax
filings.
• Branding consistency in mailing name and address makes your invoices look
professional.
• Security settings protect sensitive financial data.
• Correct financial year and books start date ensure reports are accurate.
Tips for a Smooth Setup
• Keep all your business details handy before you start.
• Decide on your data storage location for easy backups.
• If unsure about statutory settings, you can skip and enable them later.
• Use meaningful company names if you manage multiple businesses in Tally.
Conclusion
Easy2Siksha.com
Creating a company in Tally is not just a formality — it’s the foundation of your accounting
system. By carefully filling in each detail on the “Create Company” screen, you ensure that
your books are accurate, compliant, and ready for smooth day-to-day operations.
Once this is done, Tally becomes your business’s financial diary — recording every
transaction, generating every report, and keeping you in control.
“This paper has been carefully prepared for educational purposes. If you notice any mistakes or
have suggestions, feel free to share your feedback.”
