Activity No Particulars

1 Comfort Enterprises, Karnataka started a company with a capital of ₹

10,00,000, in April 2022. The company is into timber manufacturing. They
have branches in 3 locations Delhi, Mumbai, and Chennai. They have
taken a logging machinery on rental basis for business purpose. The
amount of rent is ₹ 3,00,000 which is above the exemption limit. Hence,
they must deduct TDS on rental expenses, let us now see how Comfort
Enterprises maintains its books of accounts in Tally.
2 Date 01.05.2022

Receipt entry for introducing capital of ₹ 10,00,000 to business

3 Date 31.05.2022

Comfort Enterprises booked rental expenses of ₹ 3,00,000, on Machinery

against Quick Agency. Since the Rent on Machinery expenses is
₹ 3, 00,000 TDS must be deducted while booking the expense

4 Date 31.05.2022

Made a payment of remaining amount of ₹ 2,94,000 to Quick Agency vide

cheque number 000001 dated 30-07-2019.

5 Date 01.07.2022

Comfort Shelters has purchased software to its branches, to maintain the

books of accounts. The company deducted TDS on the same and made a
payment to the government.

Comfort Shelters purchased the software directly from producer Sky

High Solutions at ₹ 50,000 and TDS @ 10% is deducted.

Made a payment of remaining amount of ₹ 45,000 to Quick Agency vide

cheque number 000003 dated 31-07-2022.
6 Comfort Enterprises incurred commission expenses of ₹1,20,000 for services
taken from a Business Consultancy Mayur Agency.

24 Q – Enable Payroll option

Contract -

Revised return – Make changes in tally, generate the correct file and file revised returns
Set the basic configuration

Units and attendance type

Dealing with payheads creation

Groups and individual salaries

Generate Payroll Report

1. Company Information and Policy

 Prepare Payroll of M/s Ganesh & Co Pvt Ltd for the month of July 2022
and company’s Accounts details are given below
 Opening balance as on 01.07.2022
o Cash on hand – Rs 3,50,000
o HDFC Bank – Rs 6,25,000
o Capital – 9,75,000
2. Total allowance and deduction of the company

S.No Payheads type Calculations

1 Basic Salary Rs per month
2 Overtime allowance Rs (per hour)
3 Dearness allowance 20% for Earned Basic Pay
4 Food Allowance Rs per month
5 Medical Allowance Rs per month
6 Employees PF 12% for Earned Basic Pay
7 Employers Contribution 8.33% or Rs 541
8 House Loan Rs (User Defined)
9 Travelling Allowance 25% for Earned Basic Pay+DA

3. Provident Fund Details

a. Company Code – KN/BN/12345/50302
b. Company accounts group code – KN/BN/12345/2103
c. Company Security Code – KN/BN/12345/24560
4. Employees attendance details – July 222

Employee Employees ID Attendance OT OT rate per

Name Working date hour
Siva FW001 26 Days 23 hrs 190
Naveen FW002 24 Days 420 mts 150
Fahat OW003 25 Days 32 hrs 160
  July month has 27 working days
 Company transfers salary through HDFC bank Chq and july salary is paid
using Chq 0002150
 For the Employers contribution if the Basic Earned Salary is less than Rs
6,500, the EPS (Employess Pension Scheme for Employeers’s Contribution)
should calculate 8.33%on Basic Earned Salary and if Basic Earned Salary is
equal to or greater than Rs 6,500, the EPS (Employess Pension Scheme for
Employeers’s Contribution) will be Rs 541 on Basic Earned Salary, rest of
the amount will be posted to employees contribution for EPF
 Siva Rs 8,500; Naveen Rs 10,500; Fahat Rs 12,500 – have taken as house
loans and it should be deducted in July month salary
5. Factory workers details - Siva

Name Siva
Date of Joining 01.04.2022
Employee ID FW001
Designation Worker
Gender Male
Bank Name HDFC
Branch Name Main Branch
Bank A/c No 545 8548 56585

S.No Payheads type Calculations

1 Basic Salary Rs 35,000 per month
2 Overtime allowance Rs 190 (per hour)
3 Dearness allowance 20% for Earned Basic Pay
4 Food Allowance Rs 4,500 per month
5 Medical Allowance Rs 3,000 per month
6 Employees PF 12% for Earned Basic Pay
7 Employeers Contribution 8.33% or Rs 651
8 House Loan Rs 8,500
9 Travelling Allowance 25% for Earned Basic Pay+DA

6. Factory workers details – Naveen

Name Naveen
Date of Joining 01.04.2022
Employee ID FW002
Designation Worker
Gender Male
 Bank Name HDFC
Branch Name Main Branch
Bank A/c No 545 235 57320

S.No Payheads type Calculations

1 Basic Salary Rs 40,000 per month
2 Overtime allowance Rs 150 (per hour)
3 Dearness allowance 20% for Earned Basic Pay
4 Food Allowance Rs 4,500 per month
5 Medical Allowance Rs 3,000 per month
6 Employees PF 12% for Earned Basic Pay
7 Employeers Contribution 8.33% or Rs 651
8 House Loan Rs 10,500
9 Travelling Allowance 25% for Earned Basic Pay+DA

7. Office workers details – Fahat

Name Fahat
Date of Joining 01.04.2022
Employee ID OW003
Designation Worker
Gender Male
Bank Name HDFC
Branch Name Main Branch
Bank A/c No 545 147 58971

S.No Payheads type Calculations

1 Basic Salary Rs 38,000 per month
2 Overtime allowance Rs 160 (per hour)
3 Dearness allowance 20% for Earned Basic Pay
4 Food Allowance Rs 4,500 per month
5 Medical Allowance Rs 3,000 per month
6 Employees PF 12% for Earned Basic Pay
7 Employeers Contribution 8.33% or Rs 651
8 House Loan Rs 12,500
9 Travelling Allowance 25% for Earned Basic Pay+DA
8. 5 Steps for PayRoll
a. Create Employees Master
i. Employees Group Creation
ii. Employee’s Creation
b. Create Payroll Masters
i. Unit Creation
ii. Attendance Creation
c. Create Payheads
i. Earnings
ii. Deductions
iii. Employees Statutory Deductions
iv. Employees Statutory Contribution
v. Graduity
vi. Loans and advances
vii. Reimbursements to employees
d. Create salary Details
i. Group Salary Pay structure
ii. Individual Salary Pay structure
e. Process Payroll
i. Attendance Process
ii. Payroll process
iii. Payment process
9.