Home Tutorials Videos Q&A MCQ Shortcuts Exercises Appointment Login
Tutorial Exercises MCQ Test Interview Q&A
Final Practical Project – Complete Business Accounting in Tally Prime
100%

🏢 Practical Project – Complete Business Accounting in Tally Prime

In this project, you will create a complete company in Tally Prime and perform day-to-day accounting transactions exactly as they are done in a real business.

Project Objective Create a complete accounting system including company creation, ledger creation, inventory management, GST, banking, payroll, vouchers and financial reports.
1. Project Introduction

You are appointed as the accountant of ABC Traders, a wholesale and retail business dealing in computer accessories.

Business Name ABC Traders
Business Type Wholesale & Retail
State Bihar
GST Applicable Yes
Financial Year 2025–2026
Currency Indian Rupee (₹)
2. Step 1 – Create Company
  1. Create a new company.
  2. Enter company name.
  3. Enter address and contact details.
  4. Enable GST.
  5. Select Financial Year.
  6. Save the company.
The company should be created before entering any accounting data.
3. Step 2 – Create Ledger Accounts
Ledger Group
Cash Cash-in-Hand
SBI Bank Bank Accounts
ABC Supplier Sundry Creditors
Rahul Kumar Sundry Debtors
Capital Account Capital Account
Salary Indirect Expenses
Rent Indirect Expenses
Electricity Indirect Expenses
4. Step 3 – Create Inventory
  • Create Stock Group.
  • Create Stock Category.
  • Create Units of Measure.
  • Create Godown.
  • Create Stock Items.
  • Set Selling Price.
Inventory should be configured before purchase and sales entries.
5. Step 4 – Record Opening Balances
Particular Amount
Capital ₹10,00,000
Cash ₹1,00,000
Bank ₹3,00,000
Furniture ₹1,50,000
Inventory ₹4,50,000
Verify all opening balances before recording daily transactions.
6. Step 5 – Record Purchase Transactions

Enter purchase transactions using Purchase Voucher (F9). Record both cash and credit purchases along with GST details.

Date Supplier Item Amount
01-Apr-2025 ABC Supplier Laptop ₹2,50,000
03-Apr-2025 XYZ Electronics Keyboard ₹40,000
05-Apr-2025 Tech World Mouse ₹25,000
Verify GST rates, quantity and purchase value before saving each voucher.
7. Step 6 – Record Sales Transactions

Enter all customer sales using Sales Voucher (F8). Record both cash and credit sales.

Date Customer Item Amount
06-Apr-2025 Rahul Kumar Laptop ₹3,10,000
08-Apr-2025 Ajay Singh Keyboard ₹58,000
10-Apr-2025 Cash Sale Mouse ₹35,000
Always generate proper GST invoices for taxable sales.
8. Step 7 – Receipt, Payment & Contra Vouchers
Transactions to Record
Voucher Transaction Amount
Receipt Received payment from Rahul Kumar ₹1,50,000
Payment Paid Office Rent ₹20,000
Payment Paid Electricity Bill ₹8,500
Contra Cash Deposited into SBI Bank ₹50,000
Contra Cash Withdrawn from Bank ₹25,000
Verify Cash and Bank balances after recording Contra vouchers.
9. Step 8 – Journal Entries

Use Journal Voucher (F7) for non-cash accounting adjustments.

Transaction Amount
Depreciation on Furniture ₹5,000
Outstanding Salary ₹12,000
Interest on Bank Loan ₹4,500
Provision for Expenses ₹3,000
Journal entries affect financial statements without involving Cash or Bank.
10. Step 9 – GST & Banking Transactions
GST Activities
  • Generate GST Purchase Invoice.
  • Generate GST Sales Invoice.
  • Verify Input GST.
  • Verify Output GST.
  • Check GSTR Reports.
Banking Activities
  • Deposit Cash into Bank.
  • Withdraw Cash from Bank.
  • Issue Cheques.
  • Receive Cheques.
  • Perform Bank Reconciliation.
After completing all transactions, verify Cash Book, Bank Book, GST Reports and Ledger Balances before preparing financial statements.
11. Step 10 – Generate & Analyze Financial Reports

After completing all accounting transactions, generate the following reports to verify the company's financial position.

Report Purpose
Day Book Review all vouchers entered.
Cash Book Verify cash receipts and payments.
Bank Book Check bank transactions.
Ledger Report Review individual ledger balances.
Trial Balance Verify Debit and Credit totals.
Profit & Loss Account Calculate business profit or loss.
Balance Sheet Check financial position.
GST Reports Verify tax liability.
A professional accountant always verifies reports before closing the accounting period.
12. Complete Project Verification Checklist
Task Status
Company Created✔
GST Enabled✔
Ledgers Created✔
Inventory Created✔
Opening Balances Entered✔
Purchase Entries Completed✔
Sales Entries Completed✔
Receipt & Payment Vouchers Entered✔
Contra Entries Completed✔
Journal Entries Recorded✔
GST Reports Verified✔
Financial Reports Generated✔
Data Backup Taken✔
Completing this checklist ensures that your practical project is accurate and complete.
13. Professional Accountant Workflow
  1. Create Company.
  2. Configure Features & GST.
  3. Create Ledger Accounts.
  4. Create Inventory Masters.
  5. Enter Opening Balances.
  6. Record Daily Vouchers.
  7. Verify GST Transactions.
  8. Reconcile Bank Accounts.
  9. Generate Financial Reports.
  10. Take Data Backup and Close the Period.
Following a systematic workflow improves accounting accuracy and saves time.
14. Final Practical Assignment & Interview Questions
Final Practical Assignment
  1. Create a new company.
  2. Create all required ledgers.
  3. Create stock groups, units and stock items.
  4. Record at least 10 Purchase Vouchers.
  5. Record at least 10 Sales Vouchers.
  6. Enter Receipt, Payment and Contra Vouchers.
  7. Record Journal Adjustment Entries.
  8. Generate GST Reports.
  9. Generate Trial Balance.
  10. Generate Profit & Loss Account and Balance Sheet.
20 Interview Questions
  1. How do you create a company in Tally Prime?
  2. Why are ledgers important?
  3. How do you create stock items?
  4. What is the purpose of Purchase Voucher?
  5. What is the purpose of Sales Voucher?
  6. What is a Contra Voucher?
  7. When is a Journal Voucher used?
  8. How is GST configured?
  9. How do you verify GST Reports?
  10. How do you reconcile bank transactions?
  11. What is Trial Balance?
  12. Why is Trial Balance important?
  13. How is Profit calculated?
  14. What does the Balance Sheet show?
  15. How do you verify ledger balances?
  16. Why should data backups be taken regularly?
  17. How do you export reports?
  18. What reports should be reviewed every month?
  19. What are common accounting mistakes?
  20. How would you complete the accounting cycle for a business?
15. Project Summary & Certificate of Completion
  • Created a complete company.
  • Configured accounting and GST features.
  • Created ledgers and inventory.
  • Recorded business transactions.
  • Maintained banking records.
  • Generated GST Reports.
  • Prepared Trial Balance.
  • Prepared Profit & Loss Account.
  • Prepared Balance Sheet.
  • Completed the full accounting cycle in Tally Prime.

🏆 Congratulations!

You have successfully completed the Tally Prime Practical Project. You are now capable of managing accounting, inventory, GST, banking and financial reporting for a real business using Tally Prime.

🧠 Final Quiz

Which report is prepared after verifying all accounting transactions and is used to show the financial position of a business?



← Previous Next