Efficient TCS Advance Receipt and Adjustment in Tally Prime: A Step-by-Step Guide

TCS on Advance Receipts and Adjusting Advances towards Bill

20th June 2023 Malar Industries Pvt. Ltd. paid an advance of ₹ 5,000 (Incl. of TCS) to Mukil Enterprises Pvt. Ltd for the sale of scrap which takes place in future. The payment was made vide Bank A/c cheque 600619.

27th June 2023 Mukil Enterprises Pvt. Ltd. sold the following goods to Malar Industries Pvt. Ltd. (Company - Resident) vide Sale Bill No.23.

Item	Qty	Rate
Scrap	1 Ton	₹ 7,000

28th June 2023 Mukil Enterprises Pvt. Ltd. received the balance amount of ₹ 2,071 from Malar Industries Pvt. Ltd. against the Sales made on 27th June 2023 after adjusting Advance Receipt. The payment was received vide Bank A/c cheque 600621.

01st July 2023 Mukil Enterprises Pvt. Ltd. received ₹ 57,00,000 from vishwa Industries Pvt. Ltd. against the Sales made on 10th June 2023.

03rd July 2023 Mukil Enterprises Pvt. Ltd. made payment of ₹ 51,00,000 to Lenovo Computer Zone against the Supplier Invoice No. Dell/PUR/25 for the purchase made on 2nd July 2023. The payment was made through bank A/c vide cheque 510135.

Malar Industries Pvt.Ltd

Navigate to Ledger Creation:

Open Tally Prime software.
Go to the "Accounts Masters" section.

Create New Ledger:

From the menu, select "Ledgers."
Choose "Create" to add a new ledger.

Enter Ledger Details

Name: Enter "Malar Industries Pvt Ltd" as the name of the ledger.
Under: Select "Sundry Debtors" to categorize it correctly.
Maintain balance bill-by-bill: Set this to "Yes" to maintain balances bill-by-bill for this ledger.

Statutory Details:

Is TCS Applicable: Set this to "Yes" to indicate that TCS is applicable for this ledger.
Buyer/Lessee Type: Choose "Company - Resident" to specify the type of buyer or lessee.

Save Changes:

After entering all the necessary details, save the ledger

Navigate to Receipt Voucher Entry:

Open Tally Prime software.
Go to the "Accounting Vouchers" section.

Enter Date and Voucher Details:

Set the voucher date as 20th June 2023.
Choose "Receipt" as the voucher type.
Ensure that the voucher mode is set to "Single Entry Mode."

Enter Transaction Details:

Account: Indian Bank .
Particular: Malar Industries Pvt. Ltd.
Enter the total amount received from Malar Industries Pvt. Ltd., which is ₹5,000.

Enter Bill-wise Details:

Under "Bill-wise Details," select "Advance" as the type of reference.
Specify "AD01" as the reference name.
Enter the amount of the advance payment, which is ₹4,950.

Enter TCS Details

Under "TCS," enter the TCS allocation details:

Nature of Goods: Sales of Scrap
Assessable Value: ₹4,950

Save and Verify:

Save the receipt voucher after verifying all the entries.

27th June 2023 Mukil Enterprises Pvt. Ltd. sold the following goods to Malar Industries Pvt. Ltd. (Company - Resident) vide Sale Bill No.23.

Item	Qty	Rate
Scrap	1 Ton	₹ 7,000

Navigate to Sales Voucher Entry:

Open Tally Prime software.
Go to the "Accounting Vouchers" section.

Enter Date and Voucher Details:

Set the voucher date as 27th June 2023.
Choose "Sales" as the voucher type.

Enter Party and Sales Ledger Details:

Party A/c Name: Malar Industries.
Particular: Sales under Sales Account.

Enter Item Details:

Name of Item : Scrap
Quantity : 1 Ton
Rate: ₹7,000 per Ton
Total: ₹7,000

Enter TCS Details:

Credit: TCS under Sales Account.
Enter the TCS amount as ₹21.

Enter Bill-wise Details:

Under "Bill-wise Details," select "Agst Ref" as the type of reference.
Specify "AD01" as the reference name with the amount of ₹4,950.
Then, under "New Ref," select "5" as the type of reference with the remaining amount of ₹2,071.