TALLY PRIME NOTES

1.Single underline -“_” means press alter key such as B

[Alt + B]
2. Double underline – “= ’’ means press control keys such as B
[Ctrl + B]

Keyboard Keys
1.F1 to F12 – Function Keys
2.0 to 9 – Numeric Keys
3. Up Down Left Right – Navigation or Arrow Keys
4.Ctrl Shift Alt Keys – Combination Keys
5.Cap’s Lock , Num Lock, Scroll Lock – Toggle Keys
6.Windows Key

Special Keys
1.Esc Key – Escape
2.Tab Key , Enter Key
3.Page Up, Page Down, Home, End, Insert Key
4.Delet key – Letter erase from left to right
5.Back Space key – Letter erase form right to left
1. To Create Company – To create company from gateway of tally press alt + k
Then you will display list of menu then select the option from the list ‘shut’
press enter key twice then select option create company after entering
financial year press Ctrl + A [Save] press twice
2. To Select Company – To select company from gateway of tally press alt + k
Company. Then you display list of menu ‘select’ the option from the list
[Select] Then you display list of company which you already created then
select the company which you want to select.
3. To Shut Company – To shut company from gateway of tally press alt + K
Company then you display list of companies then you display list of menu
select the option ‘shut’ then you will display list of companies which you
already selected then select the company which you want to shut.
4. To Alter Company – To alter company select the company first which you
want to alter after selecting company. From gateway of tally press alt + K
then you will display list of menu select the option from the list ‘alter’ the
you will display list of companies which you already selected then select
the company which you want to alter after after changing a name of
company press alt + A and press esc key once.
5. To Delet Company - To delet company select the company first you which
you want to delet after selecting company from gateway of tally press alt+k
company you will display list of menu then select option from list Alter
then you will display list of companies which you already selected then
select the company which you want to delet. To delet company press alt+D
twice Enter Key.

ERP :- Enterprises Resources Planning

Web :- WWW.Tallysolutions.Com
 ACCOUNTING GROUP
Group- Groups are collection of ledger of same nature groups are
classified into 2 parts

Capital in nature means balance sheet reports and

revenue in nature means profit and loss A/C report

IN TALLY PREDEFINE GROUPS ARE 28

IN TALLY PREDEFINE LEDGERS ARE 2 CASH OR PROFIT & LOSS

IN TALLY THERE ARE 24 PREDEFINE VOUCHER TYPE

IN TALLY PREDEFINE GODOWN IS 1 SUCH AS MAIN LOCATION

IN TALLY PREDEFINE CURRENCY IS ⟨₹⟩ INR

In Tally there are 28 predefine groups 15 are primary group

and 13 are sub group. From 15 primary group 9 are related
to balance sheet report and remaning 6 primary groups
related to profit & loss A/C and 13 sub groups related to
balance sheet.
Predefine 28 Groups In Tally are as Follow

1.Capital Account
2.Reserve & Surplus Account
3.Loans & Liabilities Account
4.Bank OCC / OD Account
5.Secure Loan
6.Unsecure Loan
7.Current Liability
8.Duties & Taxes
9.Sundry Creditors
10.Provision
11.Branch & Division
12.Suspance Account
13.Fixed Asset
14.Investment
15.Current Asset
16.Loan & Advances Asset
17.Deposit Asset
18.Sundry Debtors
19.Cash In Hand
20.Stock In Hand
21.Bank Account
22.Misc. Expenses Account
23.Purchase Account
24.Sales Account
25.Direct Expenses
26.Direct Income
27.Indirect Expenses
28.Indirect Income
PREDEFINE PRIMARY AND SUBGROUP REALTED TO BALANCE
SHEET REPORT
Liabilities ‘ Cr ’ Assets ‘ Dr ’
1.Capital Account (PG) 1.Fixed Asset (PG)
2.Reserve & Surplus (SG) 2.Investment (PG)
3.Loan & Liabilities (PG) 3.Current Assets (PG)
4.Bank OCC/ OD A/C (SG) 4.Loan & Advances Assets (SG)
5.Secured Loan (SG) 5.Deposit Assets (SG)
6.Unsecured Loan (SG) 6.Sundry Debtors (SG)
7.Current Liabilities (PG) 7.Cash in Hand (SG)
8.Duties & Taxes (SG) 8.Stock in Hand (SG)
9.Sundry Creditors (SG) 9.Bank Account (SG)
10.Provision (SG) 10.Misc. Expenses (PG)
11.Branch Division (PG)
12.Suspance Account (PG)

Predefine Primary Groups related to Profit & Loss A/C

Dr Debit Side Group Cr Credit Side Group

1.Purchase Account (PG) 1.Sales Account (PG)
2.Direct Expenses (PG) 2.Direct Income (PG)
3.Indirect Expenses (PG) 3.Indirect Income (PG)
 Types of Goods
There are 3 Types of Goods
1.Trading Goods
2.Capital Goods
3.Non Trading / Non Capital Goods
Types of Organization
There are 3 Types of Organization
1.Trade Organization – Inventory [ Stock]
2.Manufacturing Organization – Inventory [Stock Raw]
3.Service Organization – Non Inventory
Types of Account
There are 3 Types of Account

Account Types Rules of Account

1.Personal Account :- “Debit the Receiver” Dr
“Credit the Giver” Cr
2.Real Account :- “Debit what comes in”
“Credit what goes out”
3.Nominal Account :- “Debit all Expenses and losses”
“Credit all income and Gain”
Predefine Primary Groups Related to Profit And Loss Account
1. Purchase Account :- This is primary group and also Debit side group. You
can open ledger account of all types of goods purchased of trading goods of the
company comes under this group.
Such as
Purchase Vat @ 3%, 5%, 6%, 12.50%,13.50%
Purchase GST @ 0.1%, 1.1%, 3.1%, 5.1%, 12%, 18%, 28%
Purchase Import :- Unregistered Dealers Purchase [ URD],
Purchase from Composite Dealers,
Purchase Exempt Purchase,
Tax free, Interstate Purchase, Intrastate Purchase

Credit Balance :- Goods Purchase Account

2.Sales Account :- This is a primary group and also Credit side group. You can
open ledger account of all types of goods sales of trading goods of company.

Such as :-Goods sales – Goods Sold

Sales Vat :- @ 3%, 5%, 6%, 12.50%, 13.50%
Sales GST :- @ 0.1%, 1.1%, 3%, 5%, 12%, 18%, 28%
Sales Export, Sales Exampt, Sales Tax Free,
Interstate sales, Intrastate Sales

Debit Balance :- Goods Sales Account

3.Direct Expenses :- This is a primary group and also Debit side group. You
can open Ledger account of those expenses that are done on purchase of goods of
the company and it directly effect its gross profit.

Such as :- Labour Charges, Wages, Hamali, Godown Expenses, Transportation,

Carriage Inward, Octori Charges, Freight Charges, All factory expenses
4.Direct Income :- This is a primary group and also Credit side group. You can
open Ledger account of those income that are directly effect its gross profit.

Such as :- Trade Discount – Discount On Purchase

5. Indirect Expenses :- This is a primary group and also Debit side group.
You can open ledger account of those expenses that are done on sale of goods of the
company and it directly effect its net profit. Means sales and administrative expenses
and not related to goods
Such as :- Salary, Advertisement, Travelling Expenses, Vehicle Expenses,
Seminar Expenses, Godown rent, Light Bill, Telephone Bill, Furniture repair,
Computer, Conveyance Expenses, Bonus, Printing & Stationery, Postage &
Telegram, Courier, Bank Charges, Interest on CC Account, Interest on Loan
Account, Pooja Expenses, Stock Insurance, Employee Insurance, Vehicle
Insurance, Depreciation, Carriage Outward, Audit Fees, Accounting Fees etc.

6.Indirect Income :- This is a primary group and also Credit side group you
can open ledger account of those income that are directly effect its net profit means
other sources income not related to business

Such as :- Income from Rent, Commission Received, Interest Received,

Incentive Received, all such other income etc.
Predefine Primary & Sub Groups related to Balance Sheet Reports
7.Capital Account :- This is a primary group and also Credit side group. You
can open ledger account of owners, Capital account Proprietor, Capital account
Partner’s, Equity Shares Capital, Preference Capital

Debit balance :- Drawings, Personal withdrawal, House Hold Expenses,

Agriculture Expenses, Income Tax, Mutual Fund, School Fees etc.

8.Reserve Surplus :- This is a subgroup comes under Capital account group

and also Credit side group. You can open Ledger account of all types of reserve &
surplus account of existing company comes under this group.

Such as :- Reserve Fund, General Reserve, Capital Reserve .

9.Loan Liabilities :- This is a primary group and also Credit side group you can
open ledger account of all types of loan taken by the company to run the business or
business concern

This group is divided in 3 sub group

10. Bank OCC/ OD Account :- This is a subgroup comes under Loan

Liability group and also Credit side group. You can open ledger account of all bank
account with over draft account. This loan is depend upon current asset securities
means Stock

Such as :- State Bank Of India CC Account, State Bank Of India OD Account,

All Other Bank account.
11.Secure Loan :- This is a subgroup comes under Loan Liability group and also
Credit side group you can open ledger account this Loan obtained on some Fixed asset
securities

Such as :- Term Loan [ Short, Medium, Long Term ], HDFC Home loan, HDFC
Business Loan, HDFC Personal Loan, FD Loan, Gold Loan, LIC Loan, SBI Vehicle
Loan, Education Loan etc.

12.Unsecure Loan :- This is a subgroup comes under Loan Liability group and
also Credit side group. You can open Ledger account of loan obtain without any
securities such as loan taken from any person.

Such as :- Loan from Relatives, Friends, Board of Directors, Loan from Parties,
Loan From Financial Institution etc.

13.Current Liabilities :- This is a primary group and also Credit side group.
You can open ledger account of all types of business outstanding and liabilities of
existing company comes under this group.

This group is divided in 3 sub group

14.Duties & Taxes :- This is a subgroup comes under Current Liabilities and
also Credit side group you can open ledger account of all types of Duties & Taxes of
existing company.

Such as :- TDS [ Tax Deducted Source ], TCS [ Tax Collected at Source ], VAT
[Value Added Tax], Cen VAT [ Centralized Value Added Tax], GST, Excise Duty,
Custom Duty, Input Tax, Output Tax, State Tax [ SGST],Central Tax [CGST],
Integrated Tax etc.
 15.Sundry Creditors :- This is a subgroup comes under Current Liability and
also Credit side group. You can open ledger account of all types of goods

Such as :- Purchased [Trading Goods], Capital goods, Non Trading Non Capital
Goods.
On Credit from supplier comes under this group in short supplier means
Sundry Creditors
ABC Company LTD, Vijay Traders etc.

16.Provision :- This is a subgroup comes under Current Liability group and also
Credit side group. You can open ledger account of expenses due but not paid make a
provision at the end of the year.

Such as :- Salary, Telephone, Audit fees payable, Light Bill, GST payable, VAT
payable, Wages payable, MSEB All such payable account comes under this
group etc.

17.Fixed Asset :- This is a primary group and also Debit Side group you can
open ledger account of asset with have resale value are called as fixed asset. Asset
which held for long period of time to earn revenue for the business or business
concern.

Such as :- Land, Building, Plant Unit, Machinery, Vehicle, Furniture, Fax

Machine, Computer, Mobile, Handset, Air Conditioner, Electrical and Fixtures
etc.

18.Investment :- This is a primary group and also Debit side group you can
open ledger account of all types of investment made by the company

Such as :- Plot, Securities, Bonds, Shares, SBI Fixed Deposit, SBI Recurring
Deposit, SBI Daily Deposit, Gold, EPF, PPF, LIC etc.
19.Current Asset :- This is a primary group and also Debit side group you can
open ledger account of all business outstandings and Receivable existing company
comes under this group.

Such as :- Interest Receivable, Commission Receivable, Prepaid Receivable,

Prepaid Expenses, Prepaid Insurance etc.

This group is divided in 6 sub group

20.Loans & Advances [Asset] :- This is a subgroup comes under current

asset group and also Debit side group. You can open ledger account of advances
against salary advances, Advance Tax, Advance Given to Work, Contractor, Loan given
to any person

21.Deposit Asset :- This is a subgroup comes under current asset group and
also Debit Side Group you can open ledger account Such as Company Deposit,
Telephone, Mobile, MSCB Deposit, Rental Deposit & all other deposit account comes
under this group

22.Sundry Debtors :- This is a subgroup comes under current asset group

and also Debit side group you can open ledger account of all types of goods [ Trading
goods, Capital goods, Non Trading Non Capital goods ] Sold on credit to customer In
short customer means Sundry Debtors

ABC Company, R.R. Trading Company, Sanjay Agencies

23.Cash in Hand :- This is a subgroup comes under current asset group and
also Debit side group. You can open ledger account of one cash ledger already
created under this group when you create a new company

Petty Cash [ Pocket Money ]

24.Stock in Hand :- This is a subgroup comes under current asset group and
also Debit side group. Yon can open ledger account of Raw material, WIP [Work in
Progress], Finished Goods, Opening Stock, Closing Stock
 25.Bank Account :- This is a subgroup comes under current asset group and
also Debit side group you can open ledger account of all Bank accounts which are
current and savings account

SBI Current A/C, SBI Savings A/C

26.Branch & Division :-This is a Primary group its Balance Dr/ Cr Depends
upon nature of Transaction. You can open ledger account of all Branches and Division
of existing company
Such as :- Raj Trader is Main Company and Existing Branch Raj Traders Ausa etc.

27.Suspense Account :- This is primary group a Suspense ledger is created

when money received or paid who’s nature of transaction not yet Known. Its balance
Dr/Cr depends upon nature of transaction

Such as :- Suspense account, Difference

28. Miscellaneous Account :- This is a primary group and also Debit side
group you can open ledger A/C of this group typically used for legal disclosure
requirement. Schedule VI of the Indian Company Act 1961. It should hold in
corporation and pre operative expenses company would write off permissible
portion of the account every year balance remain to an extend that cannot be return
of in profit and loss account and amount balance display Separately in Balance sheet

Such as :- Preliminary Expenses, Godown Construction, Residential House

Construction
 Voucher
Voucher is a documentary proof of money received or paid
purchase and sales and all other adjustments entries are
recorded in systematic manner.
Voucher Types
In Tally Predefine Voucher types are 24 out of which we will
learn 18 Predefine Voucher types are as follow
1. Contra Voucher
2.Payment Voucher
3.Receipt Voucher
4.Journal Voucher
5.Sale Voucher
6.Purchase Voucher
7.Debit Note Voucher
8.Credit Note Voucher
9.Memorandum Voucher
10.Reversing Journal Voucher
11.Purchase Order Voucher
12.Sales Order Voucher
13.Receipt Note Voucher
14.Delivery Note Voucher
15.Rejection In Voucher
16.Rejection Out Voucher
17.Physical Stock Voucher
18.Stock Journal Voucher
 Note
1.Voucher type from 1 to 8 are standard account
voucher. When to enter transaction in this
voucher type they effect accounting books but
not inventory books.
2.Voucher type from 9 to 10 When you enter
transaction in this voucher type they do not
effect accounting books as well as inventory
books.
3.Voucher type from 11 to 12 When you are
enter transaction in this voucher type they do
not effect inventory books as well as accounting
books.
4.Voucher type from 13 to 18 When you enter
transaction in this voucher type they effect only
inventory books but not on accounting books.
 Contra Voucher
This Voucher type is used to record transaction involving the
transfer of Cash or Bank funds between different accounts
Such as cash and bank, or between two banks accounts
Entries
1. Cash deposited into Dena Bank
Cr :- Cash
Dr :- Dena Bank

2. Cash withdrawn from Dena bank [ office use]

Cr :- Dena Bank
Dr :- Cash

3. Amount / Fund transfer from Dena Bank to Indian Bank

Cr :- Dena Bank
Dr :- Indian Bank

4. Cash transfer to Petty Cash

Cr :- Cash
Dr :- Petty Cash
 Payment Voucher
This voucher type is used to record transaction on all types of
payment made by the company through cash and bank only
Entries
1. Paid for expenses by Cash / Bank
Dr :- Expenses
Cr :- Cash Bank
2. Paid for purchase of fixed asset by cash / bank from personal A/C
Dr :- Fixed Asset
Cr :- Cash / Bank
3. Paid to personal A/C by cash / Bank
Dr :- Personal A/C
Cr :- Cash A/C

Receipt Voucher
This voucher type is used to record transaction of all types of
payment received by the company through cash or Bank only.

Entries
1. Received from personal A/C by cash A/C
Cr :- Personal A/C
Dr :- Cash / Bank

2. Received for sale or fixed asset by Cash/Bank

Cr :-Fixed Asset
Dr :- Cash/ Bank

3. Received for Income A/C by Cash/ Bank

Cr :- Income A/C
Dr :- Cash/ Bank
 Journal Voucher
This voucher type is used to record transaction of all types of adjustment
entries between two accounts and depreciation provisional entries and
account closing entries are recorded in journal voucher and it is also called as
non cash transaction voucher
Transaction are not related to cash, bank, Purchase, Sale, Debit Note, Credit
Note.
Entries
1. Expenses made on credit from personal A/C
Dr :- Expenses A/C
Cr :- Personal A/C
2. Fixed asset purchased on credit from personal AC
Dr :- Fixed Asset
Cr :- personal A/C
3. Fixed Asset sold on credit to personal A/C
Dr :- Personal A/C
Cr :- Fixed Asset
4. Bad debts transfer to personal (Parties) A/C
Dr :-Baddebts
Cr :- Personal A/C
5. Depreciation charge on fixed asset at End of the Year 31st March
Dr :- Depreciation
Cr :- Fixed Asset
6. Expenses due but not paid make a provision at the end of year
Dr :- Expenses A/C
Cr :- Expenses payable A/C
7. Drawings A/C Transfer to capital A/C at the end of year 31st Mar
Dr :- Capital A/C
Cr :- Drawings A/C
8. Net loss transfer to Capital A/C at the end of year 31st March
Dr :-Capital A/C
Cr :- Profit & Loss A/C
9. Net profit transfer to Capital A/C at the end of year 31st March
Dr :- Profit & Loss A/C
Cr :- Capital A/C
 Purchase Voucher
This voucher type is used to record transaction of all types of goods
purchase of trading goods of the company from supplier on Cash/
Credit
Entries
1. Goods Purchase on Cash purchase From Personal A/C
Cr :- Cash / Bank
Dr :- Goods Purchase
2. Goods Purchase on credit purchase from Personal A/C
Cr :- Personal A/C
Dr :- Goods Purchase

Sales Voucher
This voucher type is used to record transaction of all types of goods
sales of trading goods of the company to customer on Cash / Credit
Entries
1. Goods sold on credit sales to personal A/C
Dr :- Personal A/C
Cr :- Goods Sales
2. Goods sold on cash sales to personal A/C
Dr :- Cash / Bank
Cr :- Goods Sales
 Debit Note Voucher
This voucher type is used to record transaction of all types of goods
of purchase return of trading goods of the company to supplier on
cash or credit it is also called as purchase return voucher

Entries
1. Goods purchase return on cash purchase to personal A/C
Dr :- Cash / Bank
Cr :- Goods Purchase Return
2. Goods purchase return on credit purchase to personal A/C
Dr :- Personal A/C
Cr :- Goods Purchase Return

Credit Note Voucher

This voucher type is used to record transaction of all types of goods
sales return of trading goods of the company from customer cash or
credit

Entries
1. Goods sales return on credit sales from personal A/C
Cr :- Personal A/C
Dr :- Goods Sale Return
2. Goods sales return on cash sale from personal A/C
Cr :- Cash / Bank
Dr :- Goods Sales Return