Tally Notes for Beginners

TALLY Prime

    Business Management Software in India

What is tally?

Tally Solutions Pvt Ltd is a Bangalore-based software company that currently sells into more than 100 countries beyond its native India, including the United Kingdom, Bangladesh and the Middle East.

Mr. Shyam Sunder Goenka was the founding chairperson of Tally Solutions Private Limited.

Tally's software is mainly used for vouchers, financial statements, and taxation in many industries, and has specialized packages for retail businesses. More advanced capabilities are found in its Enterprise resource planning package. It is   computerized Financial Package, which is used to account & maintain financial data.

  

What is accounting?

Accounting is a business language. It is used record and present day-to-day transaction. About the business in such a way that the user can form opinion about business, judge its performance and take certain decisions.

What is transaction?

A Transaction is an event that changes the organization’s financial position and its earning.

(Transaction is process in which daily records of Purchases and Sales are maintained properly)

Types of transaction	1.Cash transaction
	2.Credit transaction

                                                                    

1)    PERSONAL A/C

The account which is related with person, bank, any financial institution, investment, capital etc. they are called as personal a\c.

Eg.- Ram’s a\c, ICICI Bank a\c

2)    REAL A/C

The account which is related with properties and assets of the business, they are called as real a\c.

E.g. =land, building, machinery, furniture, motor car (fixed assets), goodwill (intangible assets), cash/bank balance (current assets).

        

3)    NOMINAL A/C

The account which is related with expenses and losses as well as incomes and gains they are call as nominal a\c.

e.g. =discount allowed, rent paid, interest received, commission earned etc.

GOLDEN RULES OF ACCOUNTS:

1)      PERSONAL A\C: (RELATED TO PERSON)

Debit – the receiver

Credit – the giver

2)      REAL A\C: (RELATED TO ASSETS)

Debit – what comes in?

Credit – what goes out?

3)      NOMINAL A\C: (RELATED TO INCOME & EXPENSES)

Debit – all expenses & losses

Credit – all income & gains

Advantages Of Computerized Accounting Over Manual Accounting:

1) Speed 

2) Storage Capacity

3) Accuracy

4) Security 

5) Auto effect Of Every Entry

6) Regular Backup 

7) Automatically Prepare Balance sheet.

Shortcut Keys in Tally

Alt + f1	shut company, to see any information in detailed
Alt + f2	change period
Alt + f3	company information (alter, split, company data, security control)
F1	select company
F2	Change date
F11	Feature
F12	Configure
Alt + C	to open calculator & ledger creation etc
Alt + D	to delete entry, ledger etc
Alt + X	to cancel entry
Alt + P	to print
Ctrl + R	to repeat  narration
Alt + E	to export
Ctrl + N	to start calculator
Ctrl + M	close (invoke) calculator
New Ref	it is use for purchase & sales
Against Ref	it is use against receipts and payment
On Account	it is use when cash/bank received in excess

                                   

Shortcut of voucher entry

           

F4	contra voucher
F5	payment voucher
F6	receipt voucher
F7	journal voucher
F8	sales voucher
Ctrl+F8	Sales Return(credit note)
F9	purchase voucher
Ctrl+F9	Purchase return(debit note)
Ctrl + F10	memorandum voucher
Alt + f7	stock journal voucher

	Ledgers	Groups
1	Advance Tax paid	Current Liabilities
2	Advance to Employee	Current Assets
3	Advertisement	Indirect Expenses
4	Agent's commission	Indirect Expenses
5	Air Conditioner	Fixed Assets
6	Audit Fees	Indirect Expenses
7	Bad Debts	Indirect Expenses
8	Bad Debts Recovery	Indirect Income
9	Bad Debts W/off	Indirect Income
10	Bank Charges	Indirect Expenses
11	Bank o/d	Current Liabilities
12	Bank of India	Current Assets
13	BEST Deposit	Deposits
14	Bills Payable	Current Liabilities
15	Bills Receivable	Current Assets
16	Camera	Fixed Assets
17	Canteen expenses	Indirect Expenses
18	Capital	Capital
19	Capital Reserve	Reserves & Surplus
20	Carriage Inward	Direct Expenses
21	Carriage Outward	Indirect Expenses
22	Commissin paid	Indirect Expenses
23	Commission Received	Indirect Income
24	Computer Software	Fixed Assets
25	Consultancy Charges	Indirect Expenses
26	Conveyance	Indirect Expenses
27	Copyright	Fixed Assets
28	Custom duties (on goods despatched)	Direct Expenses
29	Delivery van expenses	Indirect Expenses
30	Deposit with BEST	Deposits
31	Deposite with MTNL	Deposits
32	Deposits	Deposits
33	Depreciation	Indirect Expenses
34	Depreciation on Furniture	Indirect Expenses
35	Depreciation on Machinery	Indirect Expenses
36	Director's Remmuneration	Indirect Expenses
37	Discount allowed	Indirect Expenses
38	Discount Received	Indirect Income
39	Dividend Received	Indirect Income
40	Drawings	Capital
41	Electricity Expenses	Indirect Expenses
42	Entertainment Expenses	Indirect Expenses
43	Equity Share Capial	Capital
44	Establishment Expenses	Indirect Expenses
45	Excise Deposit	Deposits
46	Exhibition Expenses	Indirect Expenses
47	FDR	Deposits
48	Festival charges	Indirect Expenses
49	Frieght Inward	Direct Expenses
50	Frieght Outward	Indirect Expenses
51	Fuel and Lighting	Direct Expenses
52	Furniture	Fixed Assets
53	Gas and Water	Direct Expenses
54	General Expenses	Indirect Expenses
55	General Reserve	Reserves & Surplus
56	Goods	Current Assets
57	Goods Distributed as Free Samples
58	Goods lost by theft
59	Goods taken over by partner
60	Goodwill	Fixed Assets
62	HDFC Mutual Fund	Investments
63	Income Receivable	Current Assets
64	Income Received in Advance	Current Liabilities
65	Income Tax	Indirect Expenses
66	Inputvat@5%	Current Liabilities
67	Insurance Claim Received	Indirect Income
68	Insurance Premium paid in Advance	Current Assets
69	Insurance Premium	Indirect Expenses
70	Interest Earned	Indirect Income
71	Interest on Bank O/d	Indirect Expenses
72	Interest on Capital	Indirect Expenses
73	Interest on Drawings	Indirect Income
74	Interest on Loan taken	Indirect Expenses
75	Interest paid	Indirect Expenses
76	Interest Received	Indirect Income
77	Kisan Vikas Patra	Investments
78	Land & Building	Fixed Assets
79	Lease	Fixed Assets
80	Leasehold/Freehold Property	Fixed Assets
81	Legal Expenses	Indirect Expenses
82	Live Stock	Fixed Assets
83	Loading & Unloading Charges	Indirect Expenses
84	Loan From Mr. A	Loan Liability
85	Loan given to Mr. B	Current Assets
86	Loan to Employee	Current Assets
87	Loose Tools	Fixed Assets
88	Loss by accident	Indirect Expenses
89	Loss by Fire	Indirect Expenses
90	Loss by flood	Indirect Expenses
91	Loss by Theft	Indirect Expenses
92	loss on sale of machinery	Indirect Expenses
93	Manager’s Commission	Indirect Expenses
94	Maneger's Salary	Indirect Expenses
95	Margin Money Charges	Indirect Expenses
96	Margin Money Deposit	Deposits
97	Misc. Expenses	Indirect Expenses
98	Motor Car and Truck	Fixed Assets
99	Mrs. Chandani(Purchase party)	Sundry Creditor
100	Mr. Deepak(Sales party)	Sundry Debtors
101	O/s Expenses	Current Liabilities
102	Office Equipments	Fixed Assets
103	Office Lighting	Indirect Expenses
104	Packing and Forwarding	Direct Expenses
105	Packing charges	Direct Expenses
106	Patents	Fixed Assets
107	Penalty and fines	Indirect Expenses
108	Petty Expenses	Indirect Expenses
109	Plant & Machiery	Fixed Assets
110	Postage & Telegram	Indirect Expenses
111	Postal Deposit	Deposits
112	Power & Fuel	Direct Expenses
113	Prepaid Expenses	Current Assets
114	Printing & Stationary	Indirect Expenses
115	Professional Tax	Indirect Expenses
116	Profit on Sale of Asset	Indirect Income
117	Profit on Sale of Investment	Indirect Income
119	Purchase	Purchase Account
120	Purchase Return	Purchase Account
121	Rent paid (Factory)	Direct Expenses
122	Rent paid(office)	Indirect Expenses
123	Rent Received	Indirect Income
124	Rent Deposit	Deposits
125	Repairs	Indirect Expenses
126	Repairs & Maintenance	Indirect Expenses
127	Repairs of Machinery	Indirect Expenses
128	Royalty	Direct Expenses
129	Salary &Wages	Indirect Expenses
130	Sale of Raw Material	Direct Income
131	Sale of Scrap	Direct Income
132	Sales	Sales Account
133	Sales Promotion	Indirect Expenses
134	Sales Return	Sales Account
135	Service Tax	Duties & Taxes
136	Share in Mahindra Finance	Investments
137	Share Premium Reserve	Reserves & Surplus
138	Show room Insurance	Indirect Expenses
139	Showroom expenses	Indirect Expenses
140	Showroom Rent	Indirect Expenses
141	Staff Salary	Indirect Expenses
142	Staff welfare Expenses	Indirect Expenses
143	Sundry expenses	Indirect Expenses
144	Tax Refund	Indirect Income
145	TDS Receivable	Loans and Advances
146	TDS Rent	Duties & Taxes
147	Telephone Charges	Indirect Expenses
148	Telephone Deposit	Deposits
149	Trade Expenses	Indirect Expenses
150	Trademark	Fixed Assets
151	Transpotation charges	Indirect Expenses
152	Travelling expenses	Indirect Expenses
153	Unproductive wages	Direct Expenses
154	Vat Deposit	Deposits
155	Vehicles	Fixed Assets
156	Wages	Direct Expenses
157	Warehouse Rent	Direct Expenses

Different versions of tally

                  4.5            inventory facilities was not available (1988)

                  5.4            Multiple ledger as well as inventory facilities was available

                  6.3            ODBC (open data base connectivity) online help, e-mail facilities, double security, print preview was available

                  7.2            VAT (value added tax) and TDS (tax deducted at source) added

                  8.1            different language are added (there are 12 language in which we use add to maintain Own company)

                  9.0            excise duty, payroll, F.B.T (fringe benefit tax) added
                 ERP 9       GST added

                 

Remembering  points

1)    Trail balance account is prepared to record all closing balances of ledgers.

2)    Trading account is related to factory (direct expenses) e.g. wages.

3)    Balance sheet is related to Assets and Liabilities.

4)    One Million means 10 Lakhs it has 6 zeros.

5)    Inventory values are affect-Yes only to Purchase & sales A/C &

for all the other account inventory values are affected -No.

VOUCHER ENTRY

SR.NO.	VOUCHER NAME	CR/TO	DR/BY	REFERENCE
1.	Purchase (F9)	Party a/c	Purchase a/c	New
2	Payment (F5)	Cash/Bank	Party a/c	Against
3	Sales (F8)	Sales a/c	Party a/c	New
4	Receipt (F6)	Party a/c	Cash /Bank a/c	Against
5.	Contra (F4)	Bank	Cash	For Withdrawal
		Cash	Bank	For Deposit
		Bank	Bank	Transfer
6.	Journal(F7)	Fixed Assets	Depreciation	-------------------

Ledger Creation:-

Gateway Tally ------- Accounts Info ------ Ledger---- Create

LEDGER	UNDER (GROUP)	Opening bal
Initial Capital	Capital A/C	10,00,000
Loan from directors	Unsecured Loan	60,000
Loan from IDBI against Motor Car	Secured Loan	40,000
Electricity charges	Current Liabilities	25,000
Adm inistrative Expenses	Current Liabilities	15,000
Investment	Investment	2,00,000
Motor Car	Fixed Assets	2,00,000
Plant & Machinery	Fixed Assets	3,00,000
State Bank of India	Bank A/C	1,50,000

Gateway Tally ------- Accounts Info ------ Ledger--- Alter---Cash----100000/-

Gateway Tally à Balance Sheet ---(Alt + F1)

To maintain stock statement:

Steps are:

1) Create stock groups,

2) Create stock categories,

3) Create unit of measurement

4) Create godowns,

5) Create stock item,

Press F11 and f2- inventory to on the categories & godown option

    Maintain stock categories –yes

    Maintain multiple godowns-yes

Press F12 Configuration – accts/Inventory info

    Use the Alternate Units for Stock Item. - Yes.

    To create a stock group:

Gateway of tally à inventory info àstock group à create

Example:-

Name: Raw Material

Under: primary

Can quantities of item be added – yes

            Accept it

    To create a stock category:

Gateway of tally à inventory info àstock category à create

Example:

Name: Logitech

Under: primary

            Accept it

    To create godowns:

Gateway of tallyà inventory info àgodowns à create

Name:Vashi

Under: primary

Accept it (save)

    To create unit of measurement:

Gateway of tally à inventory info àunit of measurement à create

Example

Symbol: nos

Formal name: numbers

Number of decimal places: 0

Accept it (save)

    To create stock item:

Gateway of tally à inventory info àstock itemà create

Example

Name: Keyboard

Under: Raw Material

Category: Logitech

Unit: nos

Qty: 100

Godown: Vashi

Price: 200

Accept (y)

    To create stock item:

Gateway of tally à inventory info àstock itemà create

Example

Name: Mouse

Under: Raw Material

Category: Logitech

Unit: nos

Alternate Unit: Box (Alt +C to create this unit)

Where: 1 box=10 no.

Qty: 50

Godown: Vashi

Price: 100

Accept (y)

    To check stock statement:

Gateway of tally àstock summary àpress alt+f1 to see in detail.