Tally basics
Tally basics
Angelo's
Accounting Package - Tally COMPUTER EDUCATION
Creating Global Careers
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 atransaction 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Drawings : Drawings are the amounts withdrawn (taken back) by the businessman from his business for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.
Trail Balance : It is a statement of all the edger 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.
Accounting Package - Tally
St. Angelo's
COMPUTER EDUCATION
Creating Global Careers
Types of accounts
Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions
which the businessmen deal.
Real Account: These are the accounts of things, materials, assets & properties. It has physical
existence which can be seen & touch.
Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting
software.
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.
To delete a master.
Meaning:
Current asset : It is converted into cash with in a year. Ex. Bills receivable
Direct expenses: These are the expenses which are directly related to manufacturing of goods.
Ex. Wages, factory rent, heating, lighting etc
Indirect expense: These are the expenses which are indirectly related to manufacturing of goods.
Ex. Salary, rent, stationery, advertisement, printing
Depreciation : Decrease the value of the asset.
Sundry debtors :The person who is the receiver or customer
Sundry creditors : The person who gives or supplier.
Expenses Outstanding or Unpaid expenses or Expenses due :Expenditure incurred during current
year but the amount on which is not yet paid. (Added to the expenditure on the debit side and entered on
the liability side.)
Income received in advance or Income recelved but not earned
Income received during the current year but not earned or a part of which relates to the next year.
(Deducted form the concerned income on the credit side and entered on the liability side)
Prepaid advance or Expenses or Prepaid expenses
or a tofwhich
Expenditure paid during current year but not incurred expenditure relates to the next year is called
on the debit side and entered on the
expenditure prepaid. (Deducted form the concerned
assets side)
Income outstanding or income earned but not received or Income accrued
Income outstanding means income earned during the current year but the amount on which is not yet
erned income on the credit side and entered on the asset side)
received (added to the concerr
Gateway of Tally-Accounts info-ledger-create
Group Direct
Ledger Fright charges
expenses
Opening stock Stock in hand
Carriage inwards or Purchases Direct
Purchase expenses
Purchase account
Direct
Cartage and coolie
Purchase expenses
Purchase return account
Direct
Octroi
expenses
St. Angelo's
Accounting Package - Tally COMPUTER EDUCATION
Direct Indirect
Manufacturing wages expenses
Sundry expenses
expenses
Indirect
Discount allowed
Direct expenses
Coal, gas, water expenses
Indirect
Carriage outwards or sales expenses
Direct
Oil and fuel
expenses
Indirect
Traveling expenses expenses
Factory rent, insurance, Direct
electricity, lighting and heating expenses Indirect
Advertisement
Sales Sales account expenses
Indirect
Indirect Bad debts
Salary expenses
expenses
Indirect
Indirect Repair renewals
Postage and telegrams expenses
expenses
Indirect
Indirect Motor expenses
Telephone charges expenses
expenses
Indirect Indirect
Depreciation on assets
Rent paid expenses expenses
Indirect
Indirect Interest on investment received
Rates and taxes income
expenses
Indirect
Indirect Interest on deposit received
Insurance income
expenses
Indirect
Indirect Interest on loans received
Audit fees income
expenses
Indirect Indirect
Commission received
Interest on bank loan income
expenses
Indirect
Indirect Discount received
Interest on loans paid income
expenses
Indirect Indirect
Rent received
Bank charges income
expenses
Indirect
Indirect Dividend received
Legal charges income
expenses
Indirect
Indirect Bad debts recovered
Printing and stationery expenses
income
Indirect
Profit by sale of assets income
Indirect
General expenses
expenses Indirect
Sundry income income
St. Angelo's
Accounting Package - Tally COMPUTER EDUCATION
Creating Global Careers
Current
Expense outstanding Liabilities
Current
Income received in advance
Liabilities
Current
Other liabilities
Liabilities
Capital Capital
account
Drawings Capital
account
To Wages XXX
To Profit and loss account: Actual profit and loss of the business
Indirect expenses or payments Amount Indirect income or receipts Amount
To Advertisement
St. Angelo's
Accounting Package -Tally COMPUTER EDUCATION
Creating Global Careers
To Depreciation on assets
To General expenses
To Traveling
To Bad debts
To Net profit
Furniture XXX