Create Journal Voucher

Go to Gateway of Tally > Accounting Vouchers > Press F7: Journal.

1. You now get Voucher Type and Voucher Class List where you select Journal and Forex Gain/Loss respectively for the automatic adjustment of forex gain/loss

2. Change the date to 31-12-09.

4. In the Bill-wise details screen,

Select the invoice Export/1 (only those invoices involved in foreign exchange gain/loss will be displayed).

The amount displayed will be the gain/loss amount.

Accept the amount

5. Press Enter until you reach the narration field.

6. In Narration field, type Party's accounts adjusted for exchange gain and loss in the Narra-tion field.

The completed Forex Gain / Loss Adjustment entry using Voucher Class appears as shown below :

Figure 6.42 Journal Voucher - Forex Gain/Loss

7. Press Y or Enter to accept the voucher.

Practice Exercise

1. On 12-12-09, purchased 200 bags of wheat from Mirage Systems Pvt Ltd. @ £5 /bag. The Rupee was being traded @ Rs. 82/£.

2. On 21-12-09, paid Mirage Systems Pvt Ltd., £1000 at the rate of Rs. 83/£. The bank charges incurred were Rs. 2,000. Adjust the outstanding bill 'Wheat' with the payment from your Bank Account.

Setup :

In the currency alteration screen for Pound, enter these rates as on 1-12-09:

Standard rate - Rs. 80/£

Selling Rate - Rs. 81/£

Buying Rate - Rs. 82/£

For Purchase Voucher on 12-12-09 : Select the Godown as Warehouse

In Accounting allocation, select Purchases, New Ref as Wheat Type Credit period as 15 days

For Payment Voucher on 21-12-09 :

Enter Forex amount as £1000 = Rs. 83,000 in the amount field.

The completed Bank Payment voucher appears as shown below:

Type the narration and press Y or Enter to accept the screen.

Practice Exercise

To adjust Forex Gain/Loss, make a Forex Gain/ Loss adjustment entry using a voucher class on December 31, 2009.

6.5 Bank Reconciliation

Reconciling the Company's Bank Accounts with the Bank Statement is a fundamental and regular task of accounting. This process is referred to as Bank Reconciliation.

In this section, you will learn to reconcile the company's bank accounts with your banker's state-ment.

6.5.1 Reconciling Bank Accounts

The bank where you hold a current account has sent you a bank statement for the week ended April 7, 2009 showing the following entries:

Bank Statement of National Traders - Bank Account for April 2009

To view and reconcile the transactions relating to Bank Account for the month of April 2009 : Go to Gateway of Tally > Display > Account Books > Cash/Bank Book(s) > Bank Account 1. Select April 2009.

2. Press F12: Configure and activate Show Narration to view the cheque numbers and other details of all the transactions of April 2009.

3. Click F5: Reconcile (In Bank Account ledger display, an additional button F5: Reconcile will be available on the button bar).

4. The display now becomes an Edit screen in the reconciliation mode. The primary components are:

You will note an Unadjusted forex Gain / Loss of Rs. 1,000 in the Balance Sheet. Since, we first passed a purchase invoice for £1000 at Rs. 82/£ and paid

£1000 at Rs. 83/£ against it. The difference of Rs. 1/£ (83-82) is a loss. The calcu-lation is done as: £1000 x Rs. 1/£ = Rs. 1000 Cr.

Date Particulars Deposits Withdrawals Balance

1-4-09 Balance b/f 38,700.00

1-4-09 Cheque 12789 ref Employee Wages 600.00 34,400.00

2-4-09 Cheque 12790 ref Challenger

Sys-tems. 500.00 33,900.00

7-4-09 Balance c/f 33,900.00

A column for the Banker's Date.

The Reconciliation at the bottom of the screen, showing: Balance as per Company Books, Amounts not reflected in Bank and Balance as per bank.

5. Enter the Bank date for the two payment vouchers of Rs. 500 and Rs. 600. (As the dates are entered, you will find the Bank Balance as per Company books is effected).

The Bank Reconciliation screen appears as shown below :

Figure 6.44 Bank Reconciliation

6. Leave the dates blank for other vouchers and press Enter till you accept the screen.

7. To view the reconciled vouchers, press F12: Configure and activate Show reconciled vouch-ers also.

When you view the Bank Reconciliation again, only the vouchers which are unreconciled will appear.

Practice Exercises

The following is the Bank Statement of National Traders received for the period 1-05-09 to 31-05-09:

Bank Account for May 2009 :

Reconcile your bank book as per the Bank Statement.

6.6 Interest Calculations

Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of simple interest or compound interest. In Tally.ERP 9 you can calculate interest in two ways :

Simple Mode Advanced Mode

Setup :

Ensure that you have selected National Traders and set Activate Interest Calculation to Yes in F11: Features (Accounting Features).

Do NOT activate use advanced parameters (under Interest Calculations), accept the changes and return to the Gateway of Tally.

6.6.1 Calculating Interest in Simple Mode

Interest can be calculated on outstanding balances for any ledger account by specifying the interest rate and style of calculation in ledger master. The interest will be calculated automatically during voucher entry.

Date Particulars Deposits Withdrawals Balance

1-5-09 Balance b/f 36,700.00

9-5-09 Data Link Technologies 5,000.00 38,900.00

9-5-09 Petty Cash 200.00 38,700.00

19-5-09 Salaries 2,500.00 36,200.00

Simple Parameters is different from Simple Interest calculation. The latter is a commonly used method to calculate interest and Simple Parameters are the parameters defined in Tally.ERP 9 for the purpose of calculating interest.

Setup :

In National Traders,

Go to Gateway of Tally > Accounts Info. > Ledgers > Alter (Single mode) > Bank Account.

Set Activate Interest Calculation? to Yes and press Enter.

Now you have to set the Interest Parameters, on the basis of which interest will be calcu-lated for this ledger account. The screen appears as shown below:

Figure 6.45 Interest Parameters screen

Rate - This is the rate at which the interest has to be calculated. Specify a rate of 15%.

Interest Style - Select 365-day Year and accept the screen (This is the basis at which the rate is applied).

Step 1 : Display Interest Calculation Reports