Accounting Software Package - Tally
Transcript of Accounting Software Package - Tally
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Learning Objectives:
After studying this chapter, you will be able to use Tally Accounting software for
• Creating Books of Accounts
• Print Profit and Loss Account
• Print Balance sheet
• Prepare Bank Reconciliation Statement
• Print MIS Reports on Accounting
Tally is a windows based accounting software. This is the most commonly used and powerful accounting
package. It is developed by Tally Sollutions Pvt Ltd.
Startup Tally
If Tally icon is displayed on the desktop, double click on it or click Start Button on the Task bar
Start � Program � Tally
Structure of Tally Screen
Tally screen has four components. The tally Start Up screen will be displayed as shown below
Chapter – 5
Accounting Software Package - Tally
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1. Title Bar / Product Info : It displays Software Name, Version etc
2. Work Area : It is just below the title bar and the largest area. It is divided into two parts, On the
right hand side it displays Menus and accept the option we select. On the left hand side list of
selected companies, current period and current date are displayed.
3. Calculator/ODBC Server : It is used for arithemetical functions and ODBC Server functionality.
To activate calculator press Ctrl+N.
4. Buttons Tool Bar : It is the small vertical screen area shown on the right hand side. It shows
several buttons with function keys to provide quick and direct access to various options and
tasks.
Current Period
In the current period user enters starting date of the financial year and clowsing date of the financial
year. To change current period press Alt+F2
Current Date
It is the date of your last working . To change current date press F2
Active Company
When you have selected multiple companies the last selected company becomes the active company
Steps of Accounting in Tally
The various steps required for entering transactions and preparing final accounts
1. Start the Accounting Package
2. Create Company
3. Create the Accounting group, if needed
4. Create Ledger Accounts
5. Create additional vouchers, if needed
6. Enter the transactions using proper vouchers
7. Display the reports.
Create Company
To create a Company from Gateway of Tally go to Company Info menu and select Create Company
Gateway of Tally � Company Info � Create Company ( GT�Alt+F3�C)
The company creation screen contains different fields like Directory, Name, Mailing Name, Income Tax
No, Financial Year etc. We have to enter the relevant information in the respective fields. The fields such
as Name, Maintain, Financial Year from and Books Beginning from are compulsory fields to be filled. On
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completing the information Tally seeks your confirmation to save company profile by asking Accept? Yes
or No. To save the information select Yes otherwise No.
Illustration
Create a company with the following detaisl
Name : Universal Industries Ltd
Addres : MG Road, Ernakulam
Email Address : [email protected]
Income Tax No : ITK233P
Maintail : Accounts with Inventory
Fianancial year From : 01/04/2015
Books beginning from : 01/04/2015
Use Security Control : No
Steps:--
1. Press Alt+F3 or Click on ‘F3-Company Info’ button on Button Panel
2. In Company info Menu select ‘Create Company’ or Press ‘C’
3. Enter the deatails in Company creation screen
4. Press ‘Y’ or ‘Enter’ to accept the company creation.
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Alteration of a Company
To modify the details of a company choose Alter Option in Company info menu
1. Press Alt+F3 or Click on ‘F3-Company Info’ button on Button Panel
2. In Company info Menu select ‘Alter’ or Press ‘A’
3. Select the company to make alterations
4. Edit the details in Company Alteration screen
5. Press ‘Y’ or ‘Enter’ to accept the company Alteration
Deletion of a Company
1. Press Alt+F3 or Click on ‘F3-Company Info’ button on Button Panel
2. In Company info Menu select ‘Alter’ or Press ‘A’
3. Select the company to be deleted
4. In Company Alteration screen press Alt+D
5. Press ‘Y’ or ‘Enter’ twice to accept the company Deletion
Accounting Groups Grouping of Account is done for the purpose of classifying and identifying ledger accounts according to
their nature. Tally provides 28 pre-defined accounting groups.
Creating account groups In addition to the pre-defined groups, we can create as many groups as we needed. The following
sequence is followed to create additional groups.
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Gate way of Tally � Accounts Info � Group � Create
Creating Ledger Accounts A ledger is the actual account head to which you identify a transaction. Tally provides two ledgers by
default viz. Cash A/c and Profit and Loss A/c. I addition to these we can create any number of ledger
accounts that you require. The following sequence is followed to create additional ledge
Gate way of Tally � Accounts Info � Ledgers � Create ( GT�A�L�C )
Display Ledger Accounts
To display the ledger accounts already created, use the following sequence
Gate way of Tally � Accounts Info � Ledgers � Display ( GT�A�L�D )
Alter Ledger Accounts
To alter the ledger accounts already created, use the following sequence
Gate way of Tally � Accounts Info � Ledgers � Alter ( GT�A�L�A )
Delete Ledger Accounts
To delete the ledger, use the following sequence
Gate way of Tally � Accounts Info � Ledgers � Alter � select the ledger � Press Alt+D
Illustation
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We have already created a Company named Universal Industries Ltd. Below is given the transactions of
that company during the month of January 2015.
Rs.
01/01/2015 Started business with cash 5,00,000
01/01/2015 Opened a Bank A/c with SBT 25,000
01/01/2015 Purchased Machinery 25,000
01/01/2015 Purchased goods from Standard Traders 55,000
01/01/2015 Sold goods to Ameen Traders 70,000
01/01/2015 Returned goods to Standard Traders 5,000
01/01/2015 Returned goods by Ameen Traders 2,000
02/01/2015 Withdrew cash from Bank 5,000
02/01/2015 Sold goods for Cash 14,000
02/01/2015 Purchased goods for cash 50,000
02/01/2015 Withdrew cash by the proprietor for personal use 4000
02/01/2015 Purchased furniture from Furniture Land 6,000
31/01/2015 Paid cheque to Standard Traders 10,000
31/01/2015 Interest Received 1,000
31/01/2015 Paid wages 2,000
31/01/2015 Paid Salary 8,000
31/01/2015 Paid Rent 5,000
Based on the above example, we have to create the following ledger accounts under appropriate groups
as given below
Gate way of Tally � Accounts Info � Ledgers � Create
Sl.No Name of Ledger Group
1 Capital Capital Accounts
2 SBT Bank Accounts
3 Machinery Fixed Assets
4 Purchases Purchase Accounts
5 Standard Traders Sundry Creditors
6 Sales Sales Accounts
7 Ameen Traders Sundry Debtors
8 Purchase Returns Purchase Accounts
9 Sales Returs Sales Accounts
10 Drawings Capital Accounts
11 Furniture Fixed Assets
12 Furniture Land Sundry Creditors
13 Interest Indirect Income
14 Wages Direct Expense
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15 Salary Indirect Expense
16 Rent Indirect Expense
Voucher Entry After creating ledger accounts you have to make voucher entries. In computerized Accounting the term
Voucher Entry is used instead of Journal entry. Tally is programmed with a variety of Accounting
Vouchers.
The default vouchers and their corresponding function keys to activate the vouvher entry screen are
given below.
Sl.No Voucher Name Purpose Function
Key
1 Contra Voucher To record transactions in which accounts placed under
the groups cash in hand and Bank Accounts are involved
F4
2 Payment Voucher To enter cash and bank payments F5
3 Receipt Voucher To record all cash and bank receipts F6
4 Journal Voucher This is an adjustment voucher used for non cash
transactions
F7
5 Sales Voucher To enter Sale of goods F8
6 Purchase Voucher To enter purchase of goods F9
7 Credit Note Voucher To record Sales Returns Ctrl+F8
8 Debit Note Voucher To record Purchase Returns Ctrl+F9
Illustration
We have already created necessary ledger accounts for the transaction of Universal Industries Ltd. Now
let us examine how to record these transactions using appropriate vouchers.
Steps for entering Vouchers
1) To start voucher entry select Accounting Vouchers in Gate way of Tally or Press ‘V’.
2) Change the current date by pressing F2
3) Select appropriate Vouchers by pressing the relevant Function Keys
4) Select the debit item and credit item and enter the amounts
5) Press ‘Y’ or ‘Enter’ on confirmation window.
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By following the above steps enter all the transactions as given below:
Sl.No Date Accounts Involved Dr / Cr Voucher Function Key
1 01/01/2015 Cash
Capital
Debit
Credit Receipt F6
2 01/01/2015 Bank
Case
Debit
Credit Contra F4
3 01/01/2015 Machinery
Cash
Debit
Credit Payment F5
4 01/01/2015 Purchase Account
Standard Traders
Debit
Credit Purchase F9
5 01/01/2015 Ameer Traders
Sales Account
Debit
Credit Sales F8
6 01/01/2015 Standard Traders
Purchase Returns
Debit
Credi Debit Note Ctrl+F9
7 02/01/2015 Cash
Bank
Debit
Credit Contra F4
8 02/01/2015 Cash
Sales
Debit
Credit Sales F8
9 02/01/2015 Purchase Accounts
Cash
Debit
Credit Purchase F9
10 02/01/2015 Drawings
Cash
Debit
Credit Payment F5
11 02/01/2015 Furniture
Furniture Land
Debit
Credit Journal F7
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12 31/01/2015 Standard Traders
Bank
Debit
Credit Payment F5
13 31/01/2015 Cash
Interest
Debit
Credit Receipt F6
14 31/01/2015 Wages
Cash
Debit
Credit Payment F5
15 31/01/2015 Salary
Cash
Debit
Credit Payment F5
16 31/01/2015 Rent
Cash
Debit
Credit Payment F5
Display Trial Balance :
Gateway of Tally � Display � Trial Balance
Display Profilt & Loss A/c
Gateway of Tally � Profit and Loss A/c
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Display Balance Sheet
Gateway of Tally � Balance Sheet
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Know your Progress
Prepare Final Accounts of M/s Royal Agencies, Kozhikode from the following information.
2014 March 1 Started business with Cash Rs.3,00,000
2014 March 1 Opened Bank Account with Canara Bank 20,000
2014 March 1 Purchased Land& Building 50,000
2014 March 1 Purchased goods from Kairali Traders 75,000
2014 March 1 Sold goods to Hakeem Traders 1,00,000
2014 March 2 Paid Carriage 3,000
2014 March 2 Commission Received 300
2014 March 31 Paid Salaries 10,000
2014 March 31 Paid Insurance 3,200
A Small Project with Bank Reconciliation Statements (BRS) We already learned about the preparation of BRS manually in first year classes. We were
incurred lot of problems related with addition and subtraction from cash book and passbook balance
while preparing BRS manually. We can use computerised accounting system- tally software- to
overcome these difficulties. We can easily prepare BRS by enter the bank date under the reconciliation
menu in tally and there is no need of addition and subtraction from cash book and passbook balances.
After displaying bank book and its monthly summary, we have to press F5 (Reconciliation
button) for entering bank date and getting BRS
Bank date is the date at which the transaction is effective in bank. It should be enter the
reconciliation menu
We can see the following in reconciliation menu
Balance as per Company Books
Amounts not reflected in Banks
balance as per Bank
We can easily understand the pricedure for preparing BRS through the following illistration.
Prepare Bank reconciliation statement of Bathery Ltd.as on 31-12-2014.
Opening balance of PNB Saving Bank Account (1-12-2014) Rs. 40000.
1-12-2014 purchased goods and paid by cheque (Ch No. 231) Rs. 10000
1-12-2014 deposited into PNB Saving Bank Account Rs. 16000
2-12-2014 paid rent by cheque( Ch No. 232) Rs. 10000
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2-12-2014 paid salaries by cheque (Ch No. 233) Rs.6000
31-12-2014 Interest credited in the pass book Rs. 600
31-12-2014 Bank charges debited in pass book Rs. 150
Cheque No. 231 and 232 were presented in the bank on 31-12-2014. But Cheque No.
233 is not presented to the bank.All other transactions were entered in the pass on the same
day itself.
Procedure fpr Preparation of Bank Reconciliation statement
Steps
1. Company creation
GT->Company info->create
Name of company: Bathery Ltd
2. Change period
Press <Alt+F2>
3. Ledger creation
GT->A/C info>Ledger->create
(ledger created without entering opening balance except bank)
Sl
No
Name of ledger Under group Opening balance Dr/ Cr
1 PNB Bank 40000 Dr
2 Purchases Purchases - -
3 Rent Indirect expense - -
4 Salary Indirect expense - -
5 Interest received Indirect Income - -
6 Bank charges Indirect expense - -
5. Voucher entry
GT->Accounting vouchers
Date Voucher type Functional Key Debit A/C Credit A/C Amount
01-12-14 Purchase F9 Purchases PNB 10000
01-12-14 Contra F4 PNB Cash 16000
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02-12-14 Payment F5 Rent PNB 10000
02-12-14 Payment F5 Salary PNB 6000
31-12-14 Receipt F6 PNB interest 600
31-12-14 Payment F5 Bank charges PNB 150
6.Display of cash book and Preparation of BRS
GT-> Display->Account books->Ledger-> cash book->Press enter to get monthly wise
report->press F5-> enter Bank date-> Press F5
Picture from tally screen
Enter bank date as follows
Date Debit A/C Credit A/C Bnk date
01/12/14 Purchases PNB 31/12/14
01/12/14 PNB Cash 01/12/14
02/12/14 Rent PNB 31/12/14
02/12/14 Salary PNB -
31/12/14 PNB interest 31/12/14
31/12/14 Bank charges PNB 31/12/14
Picture from tally screen