Cost Center and Cost Category Practical Assignment in Tally

 

Cost Center and Cost Category Practical Assignment in Tally

1.   Introduction

Please read the business scenario given below and implement it in Tally Prime by creating a company for Alok Traders.

The company had a Cash balance of ₹ 80,00,000/- as on 1^st May.

1.1.           Business Scenario I

Alok Traders is engaged in a trading business.

The company wants to track the Salary expenses based on the departments. On 1st April, the company paid a Salary of Rs. 5,00,000/- and would like to allocate it as given below -

Marketing Department- ₹ 1,50,000/-

Accounts Department – ₹ 2,00,000/-

Sales Department - ₹ 1,50,000/-

Record a Salary payment transaction for the above and allocate it to the departments by creating cost Centres.

 

1.2.           Business Scenario II

On 2^nd May, Alok traders have expanded and opened three branches. They wish to track Telephone expenses of 1,50,000/- by doing a parallel allocation towards the branches, departments, and employees.

Branches

a.      Bengaluru – 35,000

b.     Mumbai – 65,000

c.      Delhi – 50,000

Department

a.      Marketing – 75,000

b.     Accounts Department – 25,000

c.      Sales – 50,000

Employees

a.      Amar – 45,000

b.     George - 55000

c.      Asim – 50,000

Record a few transactions to achieve this report

1.3.            Business Scenario III

Alok traders want to track executive-wise Sales so that they can incentivize them accordingly.

1.      On 1^st June 2019, sales of Rs. 35,500 done and allocated to Salesman Abhay

2.      On 20^th June 2019, sales of Rs. 39,900 done and allocated to Salesman Yashas

3.      On 25^th June 2019, sales of Rs. 23,400 done and allocated to Salesman Abhay

4.      On 28^th June 2019, sales of Rs. 11,600 done and allocated to Salesman Yashas

 

 

1.4.           Business Scenario IV

Alok Traders needs to pay their Electricity bills and auto-allocate it to the individual department. On 1^st July, ₹

 50,000 was paid towards Electricity bill. This amount needs to be allocated to the following departments based

 on the predefined percentages as given below –

 

Marketing Department- 35%

Accounts Department – 40%

Sales Department-25%

Record the Electricity payment transaction for the above and auto-allocate it to the departments.

 

2.   Reports outcome

 

Below are the outcomes after recording transactions in business scenarios, this is for your reference to ensure you have done it properly.

1.1.           Business Scenario I

1.1.           Business Scenario II

1.1.           Business Scenario III

1.1.           Business Scenario IV