Tally Notes and Basic Accounting notes

Tally Notes and Basic Accounting notes 

Tally -

Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting software.

Tally ERP is an accounting software used to record the financial transactions and events. This is a multi function software which includes inventory management, accounting, payroll preparations, cost centre management, multiple Godowns management, multiple currency function etc. It is simple accounting software which is user friendly and can be configure according to your business requirements.

History of Tally ERP

Tally Solutions Pvt. Ltd., is an Indian multinational company that provides enterprise resource planning software. It is headquartered in Bengaluru, Karnataka India. The company reports that its software is used by more than 1.6 Million customers.

Tally Solutions, then known as Peutronics,  was co-founded in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

The first version of the accounting software was launched as an MS-DOS application.

And a successful version of tally and stable the tally solution in 1988.

In 1999, the company formally changed its name to Tally Solutions.

Tally 4.5:- Its MS-DOS support financial accounting system. It takes care of accounting activities only.

Tally 5.4:- It’s an up grated version to tally 4.5 and it works in windows operating system &  Inventory modules and data formats. And also import data.

Tally 6.3:-It’s an extended enterprise system whereby it interacts with other system through ODBC (Open Data Base Connectivity you and e-mail upload your financial records form tally.

Tally 7.2:- It’s an integrated enterprise system VAT, TDS & TCS and Service Tax modules is introduced in this version.

Tally 8.1:- It’s multi language support software. It supports 10 Languages (Includes is introduced in this version).

Tally 9.0:- It’s an improved model over the version 8.1. it supports 13 Languages (Includes Foreign Languages). Payroll, POS modules is introduced in this version.

Tally ERP 9:- It's an improved version of Tally 9, Some of the new features included in ERP is Remote Access, Tally.NET, Control & Support Centre, Excise for Manufacturers and more launched with this version.

Products	Tally.ERP9, Tally.Server9, Tally.Developer9 and Shoper9

Basic concept of accounting-

Accounting: It is an art of recording, classifying and summarizing in significant manner and in terms of money, transactions and events which are of financial character and interpreting the results thereof.

Business transaction: A business transaction is “The movement of money and money’s worth form one person to another”. Or exchange of values between two parties is also known as “Business Transaction”.

Accounting cycles- 

 

Tally Notes and Basic Accounting notes -

Purchase:        A purchase means goods or services purchased by a businessman from suppliers.

Sales:               Sales is goods or services sold by a businessman to his customers.

Purchase Return or Rejection out or Outward Invoice:         Purchase return means the return of the full or a part of goods purchased by the businessman to his suppliers.

Sales Return or Rejection in or Inward Invoice:    Sales return means the return of the full or a part of the goods sold by the customer to the businessman.

Assets: Assets are the things and properties possessed by a businessman not for resale but for the use in the business.

Liabilities:       All the amounts payable by a business concern to outsiders are called liabilities.

Capital:           Capital is the amount invested for starting a business by a person.

Debtors:          Debtor is the person who owes amounts to the businessman.

Creditor:         Creditor is the person to whom amounts are owed by the businessman.

Debit:              The receiving aspect of a transaction is called debit or Dr.

Credit:                        The giving aspect of a transaction is called credit or Cr.

Drawings:       Drawings are the amounts withdrawn (taken back) by the businessman from his business for his personal, private and domestic purpose. Drawings may be made in the form cash, goods and assets of the business.

Receipts:         It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received voucher.

Account:         Account is a summarized record of all the transactions relating to every person, every thing or property and every type of service.

Ledger:           The book of final entry where accounts lie.

Journal entries:          A daily record of transaction.

Trial Balance: It is a statement of all the ledger account balances prepared at the end of particular period to verify the accuracy of the entries made in books of accounts.

Profit: Excess of credit side over debit side.

Profit and loss account:          It is prepared to ascertain actual profit or loss of the business.

Balance Sheet:            To ascertain the financial position of the business. It is a statement of assets and liabilities.

Tally Notes and Basic Accounting notes -

Classification of Accounts:-

                  The classification of accounts is given as follows :

1.Personal Accounts : -

    Accounts which are related to individuals, firms, companies, co-operative societies, banks, financial institutions are known as personal accounts. The personal accounts may further be classified into three categories :-

(i) Natural Personal Accounts :-  Accounts of individuals (natural persons)

such as Akhils' A/c, Rajesh's A/c, Sohan's  A/c are natural personal accounts.

(ii) Artificial Personal Accounts :-  Accounts of firms, companies, banks, financial institutions such as Reliance Industries Ltd., Lions Club, M/s Sham & Sons, Punjab National Bank, National College are artificial personal accounts.

iii) Representative Personal Accounts : -The accounts recording transactions relating to limited expenses and incomes are classified as nominal accounts. But in certain cases (due to the matching concept of accounting) the amount on a particular date, is payable to the individuals or recoverable from individuals. Such amount (i) relates to the particular head of expenditure or income and (ii) represents persons to whom it is payable or from whom it is recoverable. Such

accounts are classified as representative personal account e.g., Wages outstanding

account, Pre- paid insurance account etc. 

2. Impersonal Accounts : -

Account which are not personal such as machinery account, cash account , salary account etc.

There are two types of impersonal account-

1. Real account-  Real accounts are the accounts related to assets/properties.

       There are two types of  Real account:-

       (i) Tangible Real Account-  The accounts relating to tangible assets (which can be touched, purchased and sold) such as building, plant, machinery, cash, furniture etc. are classified as

        Tangible Real Accounts.

        (ii) Intangible Real Account- The accounts relating to intangible assets (which do not have physical shape) are the accounts related to intangible assets such as goodwill, trademarks,

        copyrights, patents etc.

2. Nominal account - The accounts relating to income, expenses, losses and gains are classified as nominal accounts. For example Wages Account, Rent  Account, Interest Account, Salary Account, Bad Debts Accounts, Purchases; Account etc. fall in the category of nominal accounts.

Journal Entry Rules

-Tally Notes and Basic Accounting notes -

Procedure for creating company in Tally

          

            Double click on Tally icon on desktop. Alt+F3 Company info-Create company.

Accounts Only: To maintain only the financial accounts of the company. Inventory (stock) management is not involved in it.

Account with Inventory:      This is the default option, which allows maintaining both the financial account of the company as well as the inventory of the company.

Select Company:       We can choose the company which is already created.

Shortcut key - F1.

Shut Company:         It is used to close the company which is opened. Shortcut key - Alt+F1.

Alter:              It is used to make alterations in the company creation like name, date, maintain etc.

Quit:            Exits from Tally. 1. Click on quit button.

                                                      2. Esc, Esc, Esc and enter.

                                                      3. Ctrl+Q

Tally Notes and Basic Accounting notes -

Tally ERP Ledgers and under group -

By default two (2) ledger created in tally 

1. Cash - (cash - in - hand)

2. Profit and loss - (primary)

S.No	Ledger Name	Under : Group
1	Arjun Capital A/c	Capital A/c
2	Arjun Drawing A/c	Capital A/c
3	Supplier Name( Ex. Manoj)	Sundry Creditor
4	Customer Name (Ex. Ramraj)	Sundry Debtor
5	Cash A/c	Cash in Hand
6	Petty Cash A/c	Cash in Hand
7	Furniture A/c	Fixed Asset
8	Computer A/c, Plant and Machinery A/c	Fixed Asset
9	Land & Building A/c	Fixed Asset
10	Purchase A/c	Purchase A/c
11	Cash Purchase A/c (*If using secondary)	Purchase A/c
12	Credit Purchase A/c (*If using secondary)	Purchase A/c
13	Purchase-Soap A/c (*If using secondary)	Purchase A/c
14	Purchase Return A/c	Purchase A/c
15	Sales A/c	Sales A/c
16	Cash Sales A/c (*If using secondary)	Sales A/c
17	Credit Sales A/c (*If using secondary)	Sales A/c
18	Sales Soap A/c (*If using secondary)	Sales A/c
19	Sales Return A/c	Sales A/c
20	Trade Discount on Purchase	Purchase A/c
21	Trade Discount on Sales	Sales A/c
22	Cash Discount Received	Indirect Income
23	Cash Discount to Customer	Indirect Expenses
24	Telephone Expenses	Indirect Expenses
25	Salary A/c, Advertisement ,Insurance Premium	Indirect Expenses
26	Wages A/c	Direct Expenses
27	Fuel Expenses A/c	Direct Expenses
28	Power Expenses A/c	Direct Expenses
29	Overhead Expenses A/c	Direct Expenses
30	Fees Received	Direct Incomes
31	Interest Received, Brokerage received, Rent Received	Indirect Incomes
32	Share Capital A/C	Capital A/c
33	Equity Capital A/c	Capital A/c
34	Partners’ Capital A/c	Capital A/c
35	General Reserve A/c	Reserves & Surplus
36	Capital Reserve A/c	Reserves & Surplus
37	Investment Allowance Reserve A/c	Reserves & Surplus
38	Share Premium A/c	Reserves & Surplus
39	Indian Bank A/c	Bank OD A/c
40	SBI Bank A/c	Bank A/c
41	Debenture A/c	Secured Loans A/c
42	Loan From Bank	Secured Loans A/c
43	Loan From Outside Party	Unsecured Loans A/c
44	Loan From Aravind (Friend)	Unsecured Loans A/c
45	TCS	Duties & Taxes A/c
46	TDS on Contractor	Duties & Taxes A/c
47	TDS on Professional services	Duties & Taxes A/c
48	TDS on Salary	Duties & Taxes A/c
49	TDS on Rent	Duties & Taxes A/c
50	Custom Duty A/c	Duties & Taxes A/c
51	All Tax A/c	Duties & Taxes A/c
52	Provision for Bad Debts	Provisions
53	Salary Payable A/c	Provisions
54	Rent Payable a/c	Current Liabilities
55	Liability of Expenses	Current Liabilities
56	Investment in Share	Investments
57	Stock in Hand	Stock in Hand
58	Stock of Raw Materials	Stock in Hand
59	Fixed Deposits	Deposits(Asset)
60	Security Deposit A/c	Deposits(Asset)
61	Telephone Deposit A/c	Deposits(Asset)
62	Deposit in Other Company	Deposits(Asset)
63	Loans to Employees	Loans and Advances(Assets)
64	Varanasi Branch A/c	Branch/divisions
65	Preliminary Expenses A/c	Misc. Expenses(Asset)
66	Professional Fees	Sales A/c
67	Commission Received	Direct Income
68	Delivery Charges(In Purchase Bill)	Purchase A/c
69	Depreciation A/c	Indirect Expenses
70	Carriage Inwards	Direct Expenses
71	Carriage Outwards	Indirect Expenses
72	Freight Charges	Direct Expenses
Another Examples
1	Share Capital A/c	Capital Account
2	Proprietor Capital A/c	Capital Account
3	Santa Capital A/c	Capital Account
4	General Reserve A/c,	Reserves and Surplus (Retained Earnings)
5	Capital Reserve A/c	Reserves and Surplus (Retained Earnings)
6	Share Premium A/c	Reserves and Surplus (Retained Earnings)
7	Profit and Surplus Reserve A/c	Reserves and Surplus (Retained Earnings)
8	Revaluation Reserve A/c	Reserves and Surplus (Retained Earnings)
9	Bank OD A/c	Bank OD Accounts
10	SBI Bank OD A/c	Bank OD Accounts
11	SBI Secured Loan A/c	Secured Loans
12	Loan from Rishi Finance	Secured Loans
13	Loan from Ganesh	Unsecured Loans
14	Loan from Jitendra	Unsecured Loans
15	Deposit Received From Manoj A/c	Unsecured Loans
16	Liabilities for Expenses,	Current Liabilities
17	Employee Contribution for ESI	Current Liabilities
18	PF A/c	Current Liabilities
19	TDS Realized from Contractor	Current Liabilities
20	TDS Realized from Employee	Current Liabilities
21	CGST A/c	Duties and Taxes
22	SGST A/c	Duties and Taxes
23	IGSTA/c	Duties and Taxes
24	Input CGST @ (%), Input SGST @ (%), Input IGST @ (%)	Duties and Taxes
25	Output CGST @ (%), Output SGST @ (%), Output IGST @ (%)	Duties and Taxes
26	Additional Tax A/c	Provisions
27	Leave Encashment A/c	Provisions
28	Pension Scheme A/c	Provisions
29	Proposed dividends	Provisions
30	Manoj Pvt Ltd A/c	Sundry Creditors
31	Aditya Pvt Ltd A/c	Sundry Creditors
32	Supplier A/c	Sundry Creditors
33	Creditor A/c	Sundry Creditors
34	Bike A/c ,	Fixed Assets
35	Lorry A/c	Fixed Assets
36	Office Building A/c,	Fixed Assets
37	Computer A/c,	Fixed Assets
38	Furniture A/c,	Fixed Assets
39	Land A/c	Fixed Assets
40	Equity Share A/c	Investments
41	Kisan Vikas Pathra A/c	Investments
42	Savings Bonds A/c	Investments
43	National Saving Certificates (NSCs)	Investments
44	Stock of Raw Materials A/c	Stock In Hand
45	Stock of Finished Goods A/c	Stock In Hand
46	Stock of Pipe A/c	Stock In Hand
47	SBI Fixed Deposit A/c	Deposits(Assets)
48	Tax Deposit A/c	Deposits(Assets)
49	Telephone Deposit A/c	Deposits(Assets)
50	Rent Deposit A/C	Deposits(Assets)
51	Electricity Deposit A/c	Deposits(Assets)
52	Advance to Supplier A/c	Loans and Advances (Assets)
53	Advance Salary A/c	Loans and Advances (Assets)
54	advance to rama pvt ltd (supplier)	Loans and Advances (Assets)
55	Customer A/c	Sundry Debtors
56	Royal Traders A/c	Sundry Debtors
57	Advance received from Customer	Sundry Debtors
58	Cash (Predefine in Tally)	Cash in Hand
59	Petty Cash A/c	Cash in Hand
60	Cash at Bangalore Branch A/c	Cash in Hand
61	State Bank of India A/C	Bank Accounts
62	Indian Bank A/C	Bank Accounts
63	West Bengal Branch	Branch/ Divisions
64	Madurai Branch A/c	Branch/ Divisions
65	Preliminary Expenses A/c,	Misc. Expenses (Asset)
66	Advance Paid to Travelling Expenses A/c After received Travelling Allowance bill from concern person , above ledger should be changed to indirect expenses group	Suspense A/c
67	Sales of Pipe A/c	Sales A/c
68	Export Sales A/c	Sales A/c
69	Sales @ 10%	Sales A/c
70	Sales A/c	Sales A/c
71	Sales Return A/c	Sales A/c
	For servicing companies………………..
72	Professional Charges A/c	Sales A/c or Direct Income
73	Consulting Fees A/c	Sales A/c or Direct Income
74	Service Charges A/c	Sales A/c or Direct Income
75	Professional Charges A/c	Direct Income
76	Rent Received A/c	Indirect Income
77	Interest Received A/c	Indirect Income
78	Commission Received A/c	Indirect Income
79	Purchase A/c	Purchase A/c
80	Purchase Return A/c	Purchase A/c
81	Cash Purchase A/c	Purchase A/c
82	Credit Purchase A/c	Purchase A/c
83	Freight Charges A/c (if included in purchase bill )	Purchase A/c
84	Delivery Charges A/c  (if included in purchase bill )	Purchase A/c
85	Postage Charges A/c(if included in purchase bill )	Purchase A/c
86	Sales Tax Charges A/c(if included in purchase bill )	Purchase A/c
87	Carriage inwards A/c	Direct Expenses
88	Wages A/c	Direct Expenses
89	Telephone Charges A/c	Indirect Expenses
90	Bank Charges A/c	Indirect Expenses
91	Rent Charges A/c	Indirect Expenses

Any party account name  ledger group define- 

Payment / Purchase  question in name ledger under Tally group - Sundry Creditor

Receipt  / Sales  question in name ledger under Tally group - Sundry Debtor


 For more Ledger and Under Group Head in Tally and Account
Then click on below Button and Download it.
if any problem in open then open  in new browser . and screenshot.

             -:Download Chart of Accounts click below button:-

Tally.ERP 9 in Voucher uses and shortcut keys -

Accounting Voucher:-

All entries which you made in the see given accounting vouchers is effect on your current accounting of your business.

F4: Contra ->Used for cash and bank entries ( Deposited or Withdrawn ) and also fund transfer from one bank to another.

F5: Payment->Used for expenditure and payment to parties’ by cheque or cash.

F6: Receipt->Used for income and received amount from the parties by cheque and cash. And also started business entries

F7: Journal->Used for adjustable /non bank / cash transaction and transferable entries.

F8: Sales->Used for cash and credit sales entries and income

F9: Purchases->Used for cash and credit purchased entry and expenses.

Ctrl+F8: Credit Note->Used for cash and credit sales returns entries.

Ctrl+F9: Debit Note->Used for cash and credit purchases return entries.

F10: Reverse Journal: Used for rectifying any wrong entries. (Non Accounting Voucher)

Ctrl+F10: Memo (Memorandum): Used for memorize any entry in tally. (Non-Accounting Voucher)

-Tally Notes and Basic Accounting notes -

Inventory Vouchers:-

These vouchers are effect on inventory reports in the business. All entries which you made in these inventory vouchers are effect on your stock register.

ALT+F4: Purchases Order Voucher r: Used to give purchases order to party.

ALT+F5: Sales Order Voucher: Used to receive sales order from customer.

ALT+F9: Receipt Note Voucher: Used for recording goods received.

ALT+F8: Delivery Note: Used for recording goods delivered to a customer.

ALT+F6: Rejections Out: Used for records goods that are rejected and returned to a supplier.

CTRL+F6: Rejections In: Used to record goods that are rejected and returned back by the customer.

ALT+F7: Stock Journal Voucher: Used to record stock transfers from one location to another.

Alt+F10: Physical Stock: Used for recording actual stock physically verified or counted.

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Tally. ERP 9 Main page screen content names-

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comments on post for more notes .