A.

Create a company in Tally ERP9 using your full name and index number as the company name
Financial year and books beginning from should be 1 st July 2018.

B. Configuration

i. Open the Accts/inventory Info window

Under Accounts set the following to YES:

1. Allow ADVANCE entries in masters

2. Use Addresses for Ledger Account

Under Inventory all options should be set to No

ii. Open the Voucher Entry window

Under Account, set the following option to YES:

1. Skip data field in create mode (Faster Entry)

2. Use Cr/Dr instead of To/By during entry
3. Warn on Negative Cash Balances
4. Allow cash accounts in Journal Vouchers
5. Show inventory details
6. Show Cost centre Details
7. Show Table of Bill Details for Selection
8. Show Bill-wise details
9. Expand into multiple lines
10. Show ledger current balances

All other option in this window should be set to No.

iii. Open Invoice Order Entry window and set the following options to YES:

1. Use Common Ledger A/C account for item allocation

2. Use Defaults for bill Allocations

All other options in this window should be set to No.

C. F11 Features

i. Under Accounting features, Set the following options to YES:

1. Maintain Cost centres

2. Use pre-defined cost centre Allocations During entry
3. Integrate Accounts with Inventory
4. Maintain Bill-Details
5. Allow Invoicing
6. Record Purchase in Invoice mode
7. Use Debit/Credit Note
8. Use invoice mode for Credit Note
9. Use invoice mode for Debit Note

All other options in this window should be set to No.

D. Under Enable VAT with the following details:

Type of Business…………………………………………………………………………..Regular

Regular VAT Application from……………………………………………………….1-1-19

Set/Alter tax rate details……………………………………………………………….Yes

Define VAT commodity and tax rate details as masters…………………Yes

Tax Rate………………………………………………………………………………………..3%

VAT Tin (Regular)…………………………………………………………………………..VAT28888888

E. Change the name of the Fixed Asset Account Group to Non-Current Asset

E. i. Create the following Groups under Non-Current Asset

a. Buildings

b. Computers

c. Office Equipment

d. Printers

e. Motor Vehicle

f. Depreciation Expense ( under Primary)

F. Create the following trial balance extracted from the books of Otiate Company Limited at the close
business on 30th June 2018

Ledger Under/Group Debit Credit Invoice Number

ADB Bank Account 170,000
Advertising Expenses Indirect Expenses
Agape Phones Ltd Sundry Debtors 7,000 AG1
Akate Phones Ltd Sundry Debtors 12,000 AK1
Baako and Co Ltd Sundry Creditors 14,000 BK1(6,000),BK2
Badu and Sons Ltd Sundry Creditors 5,000 BD1
Bank Charges Indirect Expenses
uilding @ Cost Buildings 234,000
Building Accum. Deprn Buildings 15,000
Computer @ Cost Computer 1,000
Computer Accum. Deprn Computer 200
Depreciation Expenses Depreciation
Expenses
Furniture @ Cost Furniture 4,000
Furniture Accum. Deprn Furniture 1,000
Loans Secured Loans 54,000
Motor Vehicle @ Cost Motor Vehicle 70,000
Motor Vehicle Accum. Deprn Motor Vehicle 8,000
Office Equipment @ Cost Office Equipment 8,000
Office Equipment Accum. Deprn Office Equipment 2,500
 Petty Cash Cash in Hand 1,000
Opening Stock Current Assets 441,000
Printer @ Cost Printer 2,000
Printer Accum. Deprn Printer 300
Purchases Purchases Account
Rent Expenses Indirect Expenses
Salaries Indirect Expenses
Sales Sales Accounts
Stated Capital Capital Accounts 900,000
Transportation Expenses Indirect Expenses
Treasury Bill Investment Investments 50,000
1,000,000 1,000,000

G. Create the following Ledgers under the Single Mode. Ensure that the necessary VAT setting are set

Account Description Group

VAT Sales Sales Account
VAT Payable Duties & Taxes

H. Your company operated a Phones Shop that is divided into three departments namely Phone
Department, Battery Department and Repairs Department. Create three Cost Centre

Create three cost centre classes as follows:

1. Payroll Expenses
a. Battery Department – 30%
b. Phones Department – 60%
c. Repairs Department – 10%
2. Building Expenses
a. Battery Department – 20%
b. Phones Department – 70%
c. Repairs Department – 10%
3. Admin Expenses
a. Battery Department – 30%
b. Phones Department – 50%
c. Repairs Department – 20%

I. Create the following stock groups under primary. NB: all items under the two groups are addable

1. Nokia Phones
2. Samsung Phones
3. Techno Phones
4. Infinix Phones

J. Create a simple units of measure

Symbol Formal name No Of Decimal Places

Unit Units of items 0
L. Alter your sundry creditors and sundry debtors and add your own addresses

M. Create the following Stock Categories Namely Double Sim and Single Sim

N. Create the following Stock Items under Multiple mode

SN Name of stock Group Category Unit of Opening Quantity Rate per

item Measure Unit Unit GH¢
1 Infinix Hot Infinix Phones Sin gle Sim Unit 110 300
2 Infinix Note Infinix Phones Double Sim Unit 120 500
3 Nokia 7 Nokia Phones Single Sim Unit 90 400
4 Nokia 8 Nokia Phones Double Sim Unit 100 500
5 Nokia 9 Nokia Phones Single Sim Unit 120 600
6 Samsung Galaxy S8 Samsung Phones Single Sim Unit 100 500
7 Samsung Galaxy S9 Samsung Phones Double Sim Unit 80 600
8 Techno Camon Techno Phones Double Sim Unit 80 400
9 Techno Phantom Techno Phones Single Sim Unit 100 600

O. Create VAT Sales Voucher to charge VAT Automatically.

V . The following transactions took place in January 2018. Enter all the transactions using appropriate
Tally Vouchers.

1. On 1st July 2018, Your Company issued a cheque of GH¢2,000 to withdraw cash from the ABC
Bank Account to Cash account.
2. On 2nd July 2018 Your Company paid Rent Expenses of GH¢700 by Cash.
3. On 5th July 2018 Your Company paid the following Expenses by Cheque:

Advertising Expenses GH¢500, Transportation Expenses GH¢300

4. On 7th July 2018 Your Company paid the following expenses by Cheque:
a. Salaries GH¢5,000
b. Bank Charges GH¢100
c. Transportation Expenses GH¢400
5. On 8th July 2018 Your Company paid a cheque of GH¢6,000 to Baako & Co Ltd against the
opening bill BK1.
6. On 10th July 2018 Your Company received a Barclay’s cheque No: 003344 of GH¢7,000 from
Agape Phone Ltd against the opening balance and deposited it into the ABC Bank Account.
7. On 12th July 2018 Your Company received an Ecobank cheque No: 4545 of GH¢20,000 from
Akate Phone Ltd against the opening bill AK1 and the balance in advance of future sales and
deposited it into ABC Bank Account.
8. On 15th July 2018 Your company purchase the following items from Badu & Son Ltd on 30 days
credit: Use Ref. PBD1
Item Quantity (units) Rate per unit (GH¢)
Infinix Hot 50 300
Infinix Note 60 500
Nokia 7 50 400

9. On 17th July 2018 Your Company purchase the following items and paid by cheque No. 2225. Ref
CP1
Item Quantity (units) Rate per unit (GH¢)
Nokia 9 70 600
Samsung Galaxy S8 80 500

10. On 19th July 2018 Your Company sold the following items to Agape Phones Ltd on credit. Ref
SAG1
Item Quantity (unit) Rate per unit(GH¢)
Nokia 9 40 800
Infinix Hot 40 600
Infinix Note 60 800
Samsung Galaxy S8 30 700

11. On 24th July Your Company sold the following items for Cash. Ref CS1
Item Quantity(unit) Rate per unit (GH¢)
Infinix Hot 30 600
Samsung Galaxy S9 20 900
Techno Camon 20 600
Techno Phantom 20 900

12. On 28th July Your company sold the following items to Akate Phones Ltd against the deposit
made by them and the balance on 30 days’ credit: Ref SAK1
Item Quantity (unit) Rate per unit(GH¢)
Infinix Hot 38 600
Nokia 8 10 700
Nokia 9 20 800
Samsung Galaxy S9 20 900

13. On 29th July 2018 Your company paid a cheque No. 2226 of GH¢8,000 to Baako & Co Ltd against
the opening bill BK2.
14. On 30th July 2018 Your company paid a cheque No. 2227 of GH¢50,000 to Badu & Sons Ltd
against the opening bill BD1 and the balance as part payment against the credit purchases made
from them on 15th July.
15. On 1st August 2018 Your company bought the following fixed assets for the Director’s office on
30 day’s credit from Melcome Ghana Ltd
Furniture ……………………………………….. GH¢4,000
Computer……………………………………….. GH¢2,000
 Printer…………………………………………….. GH¢1,000
16. On 15th August 2018 Your company purchased the following items from Badu & Sons on credit:
Ref PBD2
Item Quantity (unit) Rate per unit (GH¢)
Infinix Hot 70 300
Infinix Note 60 500
Nokia 8 50 500
Nokia 9 40 600

17. On 20th August 2018 Your company returned the following items to Badu & Sons and processed
a debit note to record the return:
Item Quantity (units)
Infinix Hot 20
Infinix Note 20

18. On 28th August 2018 Your Company sold the following items to Akate Phones Ltd on credit:Ref
SAK2
Item Quantity (unit) Rate per unit(GH¢)
Infinix Hot 30 600
Infinix Note 60 800
Nokia 7 50 600
Nokia 9 40 800
Samsung Galaxy 50 700

19. On 29th August 2018 Akate Phones Ltd returned the following items to Your company because
they were in excess of the quantities ordered.
Item Quantity(unit)
Nokia 7 20
Nokia 9 10

20. On 30th August 2018 Your company received a Barclay’s cheque No. 003349 of GH¢100.000 from
Agape Phone Ltd against bill number 1 and deposited it into the ABC Bank Account.
21. On 30th August 2018 Your company received Ecobank cheque No. 004550 of GH¢192,000 Akate
Phones Ltd against all outstanding bills and deposited it into the ABC Bank Account.
22. On 30th August Your company paid Salaries of GH¢5,000 by Cheque No. 2228
23. 0n 31st August Your company paid Cheque No. 2229 of GH¢7,000 in full settlement of the debt
owed to Melcom Ghana Ltd.
24. On 4th September Your company purchased the following items on credit from Baako & Co Ltd.
Ref PBK3
Item Quantity (units) Rate per unit (GH¢)
Infinix Hot 60 300
Nokia 7 30 400
Samsung Galaxy S9 60 600
Techno Camon 50 400

25. On 7th September Your company returned the following items to Baako & Co Ltd.
Item Quantity (unit)
 Infinix Hot 10
Techno Camon 10

26. On 8th September 2018 Your company sold the following items on credit to Agape Phones Ltd.
Ref SAG4
Item Quantity (unit) Rate per unit(GH¢)
Samsung Galaxy S8 40 700
Samsung Galaxy S9 50 900
Techno Phantom 30 900
All items attract a VAT Flat Rate of 3%
27. On 20th September 2018 Your company sold the following items Cash. Ref CS4
Item Quantity (Units) Rate per Unit(GH¢)
Infinix Hot 50 500
Nokia 7 55 600
All items attract a VAT Flat Rate of 3%

28. On 30th September 2018 Agape Phones returned the following items to Your company.
Item Quantity (unit)
Nokia 7 10
Infinix Hot 10

29. On 10th October 2018 Your company bought the following items with cash. Use Ref. CP3
Item Quantity (Unit) Rate per unit (GH¢)
Infinix Note 50 500
Nokia 7 40 400
Techno Phantom 50 600

30. On 18th October 2018 Your company sold the following items for cash. Use Ref. VCS1
items Quantity (unit) Rate per unit (GH¢)
Infinix Note 40 800
Nokia 7 50 600
Techno Phantom 60 900
All items attract a VAT Flat Rate of 3%
31. On 20th October 2018 your company received UBA cheque No. 8963 of GH¢22500 from Agape
Phone in full settlement of their Bill Ref. Number 1 of GH¢25,000, after giving them a 10%
discount of GH¢2,500.
32. On 26th October 2018 Your company issued a cheque No 2230 of GH¢93,600 in full settlement of
their outstanding debt owed to Badu & Sons of 104,000 after taking a discount of GH¢10,400.
33. On 28th October 2018 Your company paid Rent Expenses of GH¢5,000 by cheque No 2231
34. 0n 28th October 2018 Your company sold the following items on credit to Akate Phones Ltd. Ref
SAK5
Item Quantity (Unit) Rate per Unit(GH¢)
Infinix Note 60 800
Nokia 9 80 800
All items attract VAT of 3%
35. On 29th October 2018 Your company sold the following items on credit to Agape Phones Ltd
Item Quantity (unit) Rate per unit(GH¢)
Infinix Hot 60 600
Nokia 8 60 600

All items attract a VAT of 3%

36. On 30th October Your company sold the following items for cash. Ref VCS5
Item Quantity (Unit) Rate per unit(GH¢)
Infinix Note 20 800
Nokia 7 40 600
Nokia 8 40 700
Samsung Galaxy 9 50 900
All items attract a VAT of 3%
37. On 31st October Your company issued cheque No 2232 to pay the VAT liability of GH¢17,880
38. On 10th December Your company sold the following items to Agape Phones on credit on a
promotional sale where every 10 items bought attract 1 free item. Use Ref. PBK7
Item Actual Quantity Billed Quantity Rate per unit(GH¢)
Samsung Galaxy S9 22 20 900
Nokia 7 33 30 600
All items attract a VAT of 3%
39. On 14th December 2018 Your company bought the following items for on credit from Baako &
Co. Ref PBK7
Item Quantity (Units) Rate per unit (GH¢)
Infinix Hot 40 300
Infinix Note 40 500
Nokia 7 60 400
Samsung Galaxy S9 40 600

40. On 12th December 2018 Your company paid the following expenses by cash.
Rent Expenses 5,000
Telephone Expenses 200
Stationery and Printing 100
41. On 14th December 2018 your company sold the following items to a one-time customer who
paid with UBA cheque No. 7788 Use Ref. VCS8
Item Quantity (Units) Rate per unit (GH¢)
Infinix Hot 40 600
Infinix Note 40 800
Techno Camon 20 600
Techno Phantom 20 900
All items attract a VAT of 3%
42. On 6th January 2019 Your company issued a cheque No. 2233 of GH¢700 to James on a business
trip to Accra. Details of the expenses are not known at the time the cheque was issued.
43. On 10th January 2019, James reported that the GH¢700 has been spend as follows
Fuel………………………………………………………………….. GH¢300
 Hotel………………………………………………………………… GH¢200
Repairs and maintenance…………………………………. GH¢200
44. On 28th January