Tally ERP

Ledgers are indeed very important for voucher entries because they provide a systematic record of all financial transactions. Ledgers help in organizing and categorizing vouchers, making it easier to track and analyze expenses, revenues, and other financial activities. Without proper ledger entries, it would be difficult to maintain accurate and reliable financial records, which are crucial for making informed business decisions and ensuring compliance with accounting standards.

The explanation for the given correct answer is that a balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents a summary of a company's assets (what it owns), liabilities (what it owes), and shareholders' equity (the difference between assets and liabilities). Therefore, the statement "In Balance Sheet shows all our assets & liabilities" is true as it accurately describes the purpose and content of a balance sheet.

The F11 key is commonly used as a shortcut key to access the full-screen mode in many applications, including web browsers and software programs. In the context of the given question, it is likely that the feature being referred to is accessed by pressing the F11 key. Therefore, the statement "F11 key is used to access the feature for a company" is true.

A contra voucher is a type of accounting voucher that records transactions between the bank and cash accounts. It includes entries such as cash deposits, cash withdrawals, bank transfers, and bank reconciliations. These entries help maintain an accurate record of the movement of funds between the bank and cash accounts, ensuring proper reconciliation and control over cash and bank balances. Therefore, the statement is true as a contra voucher does include all the entries between bank and cash.

The statement suggests that sending an invoice to a customer can be done through the email option. This implies that there is a feature or functionality available that allows users to send invoices via email. Therefore, the correct answer is true.

The statement is true because there are indeed two methods of entry system in accountancy. The two methods are the single-entry system and the double-entry system. In the single-entry system, only one account is affected by each transaction, while in the double-entry system, at least two accounts are affected by each transaction. Both methods are used to record and track financial transactions, but the double-entry system is considered more comprehensive and widely used in modern accounting practices.

Vouchers are indeed used for recording day to day transactions. They serve as a source document that provides evidence of a transaction and includes details such as the date, description, amount, and accounts involved. Vouchers are essential for maintaining accurate and organized financial records and can be used for various types of transactions, including purchases, expenses, and payments.

The given statement is true. The amount that is owed by a debtor is referred to as debts. This is a common term used in financial transactions where one party owes money to another party.

The explanation for the given correct answer is that an inward invoice refers to the invoice received from the supplier or seller when goods are purchased. It is called an inward invoice because it is received by the buyer as part of the goods being brought into their business or organization. This invoice is used for accounting and record-keeping purposes to track the purchase and payment of the goods. Therefore, the statement that the invoice received along with goods purchased is called as an inward invoice is true.

When creating a company, two ledgers are created by default: Cash and P/L A/c (Profit and Loss Account). This means that these two ledgers are automatically set up when a new company is created, without the need for any additional manual configuration. Therefore, the statement is true.

A credit note is a document issued by a seller to a buyer, indicating that the seller has credited the buyer's account for a specific amount. It is typically used in cases of sales returns, where the buyer returns goods to the seller and receives a credit note instead of a refund. Therefore, the statement "Credit Note means Sales Return" is true, as credit notes are often associated with sales returns.

The Stock Journal Voucher is indeed used to record stock transfer from one location to another. This voucher helps in maintaining accurate records of stock movement within a company, ensuring that the stock levels are updated and tracked correctly. It allows for proper documentation of the transfer, including details such as the quantity, value, and location involved in the transfer. By using the Stock Journal Voucher, companies can effectively manage their inventory and have a clear understanding of stock movement between different locations.

Drawings refer to the amount of money or assets that an owner withdraws from a business for personal use. When an owner takes out money from the business, it reduces the capital or equity of the business. Therefore, it is correct to say that drawings reduce capital.

In accounting, the balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time. It follows the fundamental accounting equation, which states that assets equal liabilities plus shareholders' equity. This equation is maintained through double-entry bookkeeping, where every transaction has a debit entry and a corresponding credit entry. Therefore, in the balance sheet, every debit entry is indeed matched by a credit entry, making the statement TRUE.

The statement is true because the Profit & Loss A/c is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time. It includes all primary groups, such as sales, expenses, and gains/losses, and displays their closing debit and credit balances. This helps in determining the net profit or loss for the period.

Ctrl+F8 is a keyboard shortcut commonly used in accounting software to select the credit note voucher. This shortcut allows users to quickly access and work with credit notes, which are used to record adjustments and refunds for customers. By pressing Ctrl+F8, users can efficiently navigate to the credit note voucher and enter the necessary information. This shortcut helps streamline the process of managing credit notes and ensures accuracy in financial records.

Users have the ability to select multiple companies simultaneously. This allows them to compare and analyze data from different companies at the same time, making it easier to make informed decisions or identify trends and patterns across multiple companies.

The given statement is false. A personal account is not specifically related to expenses and income. A personal account is a type of account that represents an individual or a group of individuals and is used to record transactions related to them, such as personal loans, withdrawals, or deposits. Expenses and income can be recorded in various types of accounts, such as expense accounts or revenue accounts.

When there are no transactions recorded into the ledger, it means that there is no financial activity or changes in the accounts. In such cases, the ledger becomes irrelevant and can be deleted as it no longer serves any purpose. Deleting the ledger helps in maintaining a clean and organized record-keeping system, ensuring that only relevant and active information is retained.

The statement "Appreciation is Loss to Business" is false. Appreciation is actually beneficial for business as it helps in boosting employee morale, increasing productivity, and creating a positive work environment. When employees feel appreciated for their hard work and contributions, they are more likely to be motivated and engaged in their work, leading to better performance and overall success for the business. Therefore, appreciation is not a loss but rather an investment in the growth and success of a business.

The given statement is true. In Tally, the configuration option affects all companies maintained in the same directory. This means that any changes made to the configuration settings will be applied to all the companies within that directory. It is important to keep this in mind when configuring Tally for multiple companies, as any changes made will have a global impact on all the companies in that directory.

The statement is true because the VAT option is indeed available in Tally 7.2. Tally 7.2 is a popular accounting software that allows users to manage various financial transactions, including VAT calculations and reporting. With the VAT option, users can easily track and calculate the amount of VAT they need to pay or collect, ensuring compliance with tax regulations.

Memo vouchers are used to record transactions that do not have a financial impact on the accounts. These vouchers are typically used for informational purposes or to correct errors. Since memo vouchers do not have any effect on the accounts, the statement that entries made using memo vouchers will not affect your accounts is true.

The statement is false because a personal account is not specifically related to expenses and incomes. A personal account is a type of account that represents an individual or an entity with whom the organization has a direct relationship. It is used to record transactions related to individuals or entities, such as customers, suppliers, or employees. While expenses and incomes may be recorded in personal accounts, they can also be recorded in other types of accounts such as revenue or expense accounts. Therefore, the statement is incorrect.

The statement is true because when a supplier offers a discount to a customer, it is essentially reducing the amount of money the customer has to pay. This reduction in payment can be considered as an income for the customer, as they are saving money that they would have otherwise spent. Therefore, the discount allowed by the supplier can be classified as an income.

All types of bank accounts, such as checking accounts, savings accounts, and money market accounts, are considered current assets. This is because they can be easily converted into cash within a short period of time, typically within a year. Current assets are those that are expected to be used up or converted into cash within a year, and bank accounts fit this criteria as they can be readily accessed and used for transactions or withdrawn as cash. Therefore, the statement that all types of bank accounts are current assets is true.

The given statement is FALSE. A sale voucher records the sale of goods or services, not the purchase of assets. A purchase voucher, on the other hand, records the purchase of assets. Therefore, the correct answer is FALSE.

In single alteration mode, a user is only able to make changes to one item at a time. Therefore, it is logical that they can also delete a group from single alteration mode only. This means that they cannot delete multiple groups simultaneously, but can only delete one group at a time in this mode.

The given statement is false. A sale voucher records the sale of goods or services, not the purchase of assets. The correct voucher to record the purchase of an asset would be a purchase voucher or an asset purchase voucher. Therefore, the answer is false.

Tally, a popular accounting software, restricts users from changing the parent of a predefined group. This means that once a group is created and assigned a parent group, it cannot be moved to a different parent group. This limitation ensures the integrity and consistency of the accounting data, as changing the parent group could potentially disrupt the hierarchical structure and affect the accuracy of financial reports. Therefore, the statement is true.

When preparing a trial balance, it is important to ensure that the total debits and total credits are equal. However, if there is a discrepancy or an error in the recording of transactions, the trial balance may not balance. In such cases, the balances are temporarily transferred to a Suspense Account until the error is identified and corrected. This allows for the trial balance to still be prepared and the financial statements to be produced, even if there are discrepancies. Therefore, the statement that balances in the trial balance are temporarily transferred to Suspense A/c is true.

The statement is false because Alt+F5 is not the shortcut key for purchase order. The correct shortcut key for purchase order may vary depending on the specific software or program being used.

The correct answer is FALSE. Transaction accounting for money received is not entered into a Payment Voucher. Payment Vouchers are typically used for recording payments made by an organization, not for recording money received. Money received is usually recorded in a different type of document, such as a Receipt or a Cash Receipt.

The statement is false because discount allowed to customers is not considered as income. It is actually a reduction in the amount owed by the customer and is recorded as an expense or a reduction in revenue for the business. Discounts allowed are given to encourage customers to make purchases or to reward them for their loyalty, but they do not generate additional income for the business. Therefore, the correct answer is false.

When creating a company, it is common to create multiple cash accounts to manage different types of cash transactions. These accounts can include a main cash account for general expenses, a petty cash account for small purchases, and separate accounts for different currencies or bank accounts. Having multiple cash accounts allows for better tracking and organization of cash flow within the company. Therefore, the statement that many cash accounts can be created after creating a company is true.

The given statement, "Capital = Liabilities - Assets," is incorrect. In accounting, the equation is "Assets = Liabilities + Capital." This equation is known as the accounting equation and represents the fundamental relationship between a company's assets, liabilities, and owner's equity (capital). The correct equation shows that the total assets of a company are equal to the sum of its liabilities and owner's equity.

The shortcut key designated for initiating the printing functionality within Tally is Alt+P. This key combination serves the purpose of accessing the print menu, allowing users to print various transactions or reports effortlessly.

The statement is not clear and seems to contain a typo. It is unclear what is meant by "alternation mode" and how it relates to deleting groups. Without further clarification, it is not possible to provide a meaningful explanation for the given answer.

The statement is false because entries in Memo Voucher are not posted directly to the Ledger. Memo Vouchers are used to record temporary or non-accounting transactions, and they do not affect the balances in the Ledger accounts. The information from Memo Vouchers is typically used to create proper accounting entries in the Journal, which are then posted to the Ledger.

In display mode, users are not able to make any changes to the group.

The statement is false because capital invested by the proprietor in a business is not considered as a business's asset. Instead, it is considered as the proprietor's equity or contribution to the business. Assets are the resources owned by the business that have economic value, such as cash, inventory, and equipment.

The given statement is false. Sales Voucher is not used to record goods sold on cash. Sales Voucher is actually used to record credit sales, where the payment is not made immediately. For cash sales, a Cash Receipt or Cash Sales Voucher would be used instead.

The statement is false because stock is not always valued at market price. The market price of a stock is determined by the supply and demand in the market, which can fluctuate based on various factors such as company performance, economic conditions, and investor sentiment. Therefore, the value of a stock may be higher or lower than its market price, depending on factors like the company's financial health, future prospects, and market conditions.

Configuration changes do not only affect the current company, but they can also have an impact on other related systems or entities. These changes can have a ripple effect and potentially impact other companies or systems that are connected or dependent on the current company. Therefore, the statement that configuration changes only affect the current company is false.

Tally does not allow the deletion of a ledger that has entries recorded in it. This is because deleting a ledger with entries would result in the loss of important financial data and could affect the accuracy of the overall accounting records. Therefore, it is not possible to delete a ledger with recorded entries in Tally.

A person who owes money to the business is not a creditor, but rather a debtor. A creditor is someone to whom the business owes money, such as a supplier or a lender.

Appreciation charged on Fixed Assets is recorded in Contra Voucher. This statement is true because a contra voucher is used to record transactions that offset each other, such as when an asset's value increases (appreciation) and needs to be balanced out in the accounting records. By recording the appreciation in a contra voucher, it helps maintain accurate and balanced financial statements.

The statement is incorrect because a Sales Order is used to place orders of goods from the Customer, not to the Supplier. In a sales transaction, the customer initiates the order by placing a sales order with the supplier. Therefore, the correct answer is FALSE.

The statement is false because a Profit and Loss account is not an arithmetical check of all the entries done up to date. Instead, it is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, typically a fiscal quarter or year. It shows the net profit or loss generated by a business during that period, providing valuable information about the company's financial performance.