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Tally.

ERP 9
Introduction
The computer plays many roles in business, including communications, data storage and data
analysis. Additionaly, the computer can save business money through making employees more
efficient & providing tools that without a computer would cost too much money. Similarly
computer is very helpful in accounting. All the interested parties can easily track all accounting
reports if it is in connected computers.

Application of Computer in Accounting:

1. To keep accounting record of big company is possible: Being the accountant of a big company itis
not possible to record unlimited transactions in manual basis, but, it can easily be done with
computer & accounting software in it.
2. Seperate Payroll accounting is possible: One of top costly expense for an organisation is salary
of employee, so it should be recorded seperately, & with the help of computer it is no more a fuss.
3. Automation of Financial Accounts: With the help of computer, if accountant will pass voucher
entries, financial accounts will automatically be created by computer software.
4. Graphic presentation of accounting result: Computer can be used for graphic presentation of
accounting results. You can see the sale trend graphics, charts & diagrams.
5. Updated fastly: If there is any mistake, we can easily correct. All the accounts will automatically
get corrected. In manual accounting it is not possible.
6. Best inventory control: To record every small item in computer is so easy without keeping big
inventory registers. By comparing computer records of inventory & actual inventory, anytime, we
can check the difference & find the reason behind this difference.

Tally

Tally is a powerful accounting software, which is driven by a technology called concurrent


multilingual accelerated technology engine. It is easy to use software & is designed to simplify,
complex day to day activities associated with an enterprise. Tally software provides solution around
inventory management, stock management, discounting, stock valuation method, etc.

The manual system of accounting transactions requires maitaining books of accounts such as
jouranl, cash book, special purpose books & ledger & so on.

Steps involved while preparing accounts


manualy
Finacial reports like cashflow
Journal Enteries Statement, etc.

Ledgers Balance sheet

Trial balance Income statement


Steps involved in preparation of accounts in Tally Advantages of Tally:
Labour saving
Time saving
Prepare required Ledgers Accuracy
Minimization of frauds
Reduces hardness of work

Record entries

Trial balance, Income statement,


Balance sheet & all Financial report
wil be prepared automatically.

How to install Tally. ERP 9 ?

Click START from windows.


Select RUN.
Type <CD drive>:\INSTALL.
Press ENTER.
Follow the instruction displayed on your screen to proceed with the installation of Tally.Erp 9.
The Tally.ERP 9 Setup Wizard screen is displayed as shown.
Click Next to continue with the installation.
The Tally.ERP 9 Setup screen appears.

In the Tally.ERP 9 Setup section, you can accept the default directories as shown or click
on the buttons provided next to the respective text boxes to change the path of Application
Directory, Data Directory, Configuration Directory.

Click Next.

In the Country/Language Selection screen, check Install Operating System Language


Support to install Tally.ERP 9 with multi-lingual support.
Note: To use Tally.ERP 9 in English only, un-check Install Operating Systems Language
Support

By default, India/SAARC appears in the Country Selection. Select Others if you are
not residing in India or any of the SAARC countries.
Click Install.

The Setup Status screen is displayed as shown.

In the installer screen click Finish to complete Tally.ERP 9 Setup.

To start the Tally.ERP 9 application, double click the Tally.ERP 9 icon on the desktop.
Creating a Company
After successful Installation, Open the TallyERP.9 Software. The Main Gateway of Tally Window
look like this:

Click on Create Company or Press C Button.

Red Mark Fields are mandatory to make your Company & It shows following options:
1. The Directory Field are, where your data/ Company store.
2. Name of Your Company.
3. Mailing/ Billing or Registered Address of the Company.
4. Your Country name (India).
5. Select State, Pin Code , Telephone No. , Mobile No & your companys email id.
6. If you want to create Auto Backup of Your Data then select yes.
7. Your Country Currency Symbol (Indian Rupee), Select Accounts Only for only Accounting
Features or Select Accounts with Inventory for Accounting & Inventory (Stock Management)
features.
8.Select Security Control to protect your data from Strangers & also use the Benefit of Tally.Net
Feature.
Bottom Base Currency Information is related to your Country Currency. Please do not try to
change this section, because when you Select Country (Option-4) this section will be automatically
Change accordingly to your Country Currency.
After fill all these details the system ask you to accept yes or not, Press y or select yes. Your
company create successfully.

Groups
Tally main product is its Enterprise
Groups are collection of ledgers of the same Resource Planning (ERP) software called
nature. The group behaviour is classified into Tally.ERP 9. For large organisations
capital or revenue & more specifically into Tally offers software handles accounting,
Assets, Liabilities, Income & Expenditure. The Inventory anagement, Tax management,
Group ascertain weather the same will affect Payroll, etc.
Profit & Loss account which is revenue in nature
or Balance Sheet which is capital in nature. Earlier Version of Tally before
By default, Tally. ERP 9 provides a list of groups Tally.ERP 9:
called pre-defined groups. The user can create Tally 9.0
any number of groups. There are 28 pre-defined Tally 8.1
groups in Tally.EERP 9, out of which 15 are Tally 7.2
primary groups & 13 are sub groups. Tally 6.3
Tally 5.4

List of pre-defined groups are as follow :-

Capital accounts

Reserve & Surplus


Loans (Liability)

Bank OD A/c

Secured Loans

Unsecured Loans

Current Liabilities

Duties & Taxes

Provisions

Secured Creditors

Fixed Assets

Investments

Current Assets

Stock-in-Hand

Deposits (Asset)

Loan & Advances (Asset)

Sundry Debtors

Cash-in-hand

Bank Accounts

Branch / Divisions

Misc. Expenses (Asset)

Suspense A/c

Sales Accounts

Purchase Accounts

Direct Incomes

Direct Expenses

Indirect Incomes

Indirect Expenses
How to create a group?
Gateway of Tally Accounts infoSingle GroupsCreate.

Under single group we can create a single group at a time whereas in multiple groups we can
create multiple groups at a time.

The group creation screen appears like :-

1.Create For creating groups.


2.Display Displays all created
or predefined groups.
3.Alter For altering or to make
changes in Groups.

1.Enter Name of the Group


2.Alias is sub name of the Group,
either you can enter code no. of your
expense.
3.Specify Under which existing
(parent) group the sub
classification is required.

Ledgers
Ledgers : A ledger is the actual account head to which you identify a transaction andmust be used
in all accounting vouchers. Without a ledger we cannot record any transactions. Example :
purchase, sales, rent etc.

All Ledgers have to be classified into Groups. Classification of Ledgers to the appropriate groups is
very important. These Groups and Ledgers are classified to Profit & Loss or Balance Sheet.

There are two pre-define ledgers in TallyERP.9


1. Cash : This Ledger is created under the Group Cash-in-hand. You can enter the opening
balance as on the date of books beginning from. You can also alter the name and even delete the
Ledger. It helps you to maintain Daily Cash Expenses.
2. Profit & Loss Account : This Ledger is created under the Group Primary. Previous years
Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated
as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss
account in the Liabilities side. You cannot delete this ledger, but you can modify the same.

How to create Ledger ?

Gateway of Tally Accounts info Ledgers Single ledger Create.

1.Create For creating


Ledgers.
2.Display Displays all
created or predefined Ledgers.
3.Alter For altering or to
make changes in Ledger.

Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all
in. Press Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names.
The uniqueness check is made here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its
recognition of a name. Thus, CST, C.S.T. and C. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up
data entry.
Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias
name.
Under
All accounts must be classified under their appropriate Groups. Select the Group under which the
Ledger is created from the List of Groups. (To create a new Group from this field press [ALT + C]).
A wrong classification would affect the treatment of the Ledger account in final statements and
during voucher entry.
Opening Balance
If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance
would be applicable in circumstances where the Ledger is an asset or a liability and if it has a
balance in the account as on the date of beginning of books in Tally.ERP 9.

Creating a Sales / Purchase Ledger


Purchase / Sales ledgers are required for trading, repacking or for usage in manufacturing products.
Sales and Purchase account groups are meant for revenue accounts and are reflected in the Profit &
Loss Account.
To create a Purchase / Sales Ledger
Gateway of Tally Accounts Info Ledgers Create.

1. Name : Purchase Account / Sales


Account
2. Under : Purchase Account / Sales
Account
3. Inventory value Affected : Yes
(This is applicable for Companies
maintaining Accounts with Inventory.
Inventory allocation is required for
Accounts like Sales, Purchase, Receipt
note, Delivery note, etc.)
4. Opening balance : Put the amount of
opening Balance.
5. Accept.

Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc.

Creating a Income/ Expenses Ledger


Expense ledgers must be created for each of the expense account separately.
To create a Expenses / Income ledger
Gateway of Tally Accounts Info Ledgers Create.

1. Name : Write down thename of expenditure or


income, like transportation charges, Interest
recieved.
2. Under : Indirect Expenditure / Income or
Direct Expenditure / Income.
3. Inventory values are affected : No
4. Opening balance : Put the opening figure if
there.
5. Accept.

Creating a Party Ledger


Party Accounts should be opened under Sundry Debtors or Sundry Creditors group with whom your
company is trading.
Customers (Sundry Debtors) who buy goods or services for on credit. Suppliers (Sundry Creditors)
who supply goods and services for on credit.
To create a Party Ledger
Gateway of Tally Accounts Info Ledgers Create.

The Party Ledger account screen is displayed as shown


1. Name : Parties name
2. Under : Sundry Debtors / Creditors
3. Maintain balances bill-by-bill : Yes
4. Inventory values are affected : No
5. Mailing Details : You can even put the mailing details of parties, like address,
state,PIN code, telephone number, etc.
6. Accept.

Vouchers

Accounting Vouchers are used to record all accounts related transactions in Tally.ERP 9. Its the data
etry form or screen where we are entering different types of transactions like sales, purchase,
reciept, etc. Tally provides 18 different predefined voucherformats or what it calls predefined types
of vouchers.
List of predefined Vouchers are :-
1. contra
2. Credit note
3. Debit note
4. Delivery note
5. Job work in order
6. Job work out order
7. Journal
8. Memorandum
9. Payment
10. Physical stock
11. Purchase
12. Purchase order
13. Reciept
14. Reciept note
15. Reversing Journal
16. Sales
17. Sales order
18. Stock Journal
These 18 vouchers are divided into parts :
Accounting Vouchers : There are 10 accounting vouchers already created in Tally software.
You can create, delete, or modify as per your requirement.
Inventory Vouchers : There are by default 8 inventory vouchers in Tally. You can create,
delete, or modify as per your requirement.

Voucher Entry
The Voucher Entry screen is divided into three parts:
The Main Voucher Entry
Button Bar
Calculator

Contra Voucher (F4) :


With the help of contra voucher you can make entry which shows relation between cash and bank.
Like cash deposited into your bank account. Cash withdrawals from your bank account either from
cheque / DD / ATM / or any other media and also you can make entry to transfer amount from one
bank account to another bank account using voucher.
Gateway of Tally Accounting Voucher press F4
Payment voucher (F5) :
Under payment voucher recordd entries where payments has been made either in cash or by bank.
Like rent paid in cash, interest on loan paid by cheque, etc.
Gateway of Tally Accounting Voucher press F5

Reciept Voucher (F6) :


In this voucher you need to record those enteries were money is received either in cash or in bank
account. Like salary received in bank account, commission received in cash, etc.
Gateway of Tally Accounting Voucher press F6
Journal Voucher (F7) :
This voucher is used to adjust the debit & credit amounts without using the cash or bank
accounts.Journal Voucher entries are also known as adjustment entries. Like credit purchase or
sales, depriciation entry, etc.
Gateway of Tally Accounting Voucher press F7

Purchase entry (F9) :


Purchase voucher is used to record the purchase transactions of the company.
Gateway of Tally Accounting Voucher Press F9

1. Referance no. : Enter Bill no.


2. Party'sName : Enter party's name
3. Purchase Entry : Purchases
4. Particular : Name of item bought
5. Amount : Value of goods bought
6. Accept.
Sales entry (F8) :
Sales voucher is used to record the sale transactions of the company.
Gateway of Tally Accounting Voucher Press F8

1. Referance no. : Enter Bill no.


2. Party'sName : Enter party's name
3. Sale Entry : Sales
4. Particular : Name of item bought
5. Quantity : No. of item bought
6. Rate : Rate per item
7. Amount : Value of goods bought
8. Accept.

Financial Reports in Tally.ERP 9 :

1. Balace Sheet :
Gateway of tally Balace sheet Press Alt+F1.
2. Profit & Loss Account :
Gateway of tally Profit & Loss a/c Press Alt+F1.
3. Ratio Analysis :
Gateway of tally Ratio Analysis.
4. Trial Balance :
Gateway of tally Display Trial Balance Press Alt+F1.
5. Bills Receivables :
Gateway of tally Display Statement of Accounts Outstandings Receivables.
6. Bills Payable :
Gateway of tally Display Statement of Accounts Outstandings Payables.
7. Cash Flow Summary :
Gatewayof tally Display Cash/Funds Flow Cash Flow.
8. Sales Register :
Gateway of Tally Display Accounts book Sales register PressF7.
9. Bank Reconciliation Statement :
Gateway of Tally Banking Bank Reconciliation Select the required bank ledger
enter the bank date.
10. Gowdown Summary :
Gateway of Tally Display Statement of inventory Godowns select Main Location.
Question 1 :
1.Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000.
2.Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000.
3.Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000.
4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000.
5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000.
6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100.
7.Received rent Rs.500, commission Rs.400.
8. Received a cheque from Ganesh Rs.1,000.

Question 2 :
Particulars Rs.
1. Bought goods for cash 2,500
2. Bought office furniture for cash 500
3. Paid for postage 10
4. Purchased goods from Rajkamal 2,000
5. Sold goods for cash 150
6. Bought goods from Rahim 400
7. Sold goods to Suresh 400
8. Sold goods to Nayak 250
9. Purchased goods for cash 400
10. Recevied cash from Nayak 200
11. Paid cash to Rahim 50
12. Returned goods to Ralkamal 200
13. Suresh returned goods 50
14. Paid salary 150
15. Sold goods for cash 500
16. Rao withdraw for his personel use 800
17. Paid for stationery 100
18. Paid rent 50
19. Received commission 225

Question 3 :
Rakesh and company
1. Started business with cash Rs. 2,000, Bank Rs. 20,000.
2. Issued cheque for goods purchased Rs. 1,000.
3. Bought goods for cash Rs.8,000.
4. Bought furniture from Anil for cash Rs.100.
5. Bought goods from harish Rs. 1,500.
6. Bought goods from chandan on credit Rs. 5,800.
7. Returned damaged goods to Chandan Rs.800.
8. Bought goods from Naveen and paid by cheque immediately Rs.400.
9. Sold goods to Guptha Rs. 1,000.
10. Received a cheque from Guptha Rs.1,000 for goods sold.
11. Paid commission Rs.2,000.
12. Paid wages by cheque Rs.4,000.
13. Draw cheque for personal use Rs.4,000.
14. Draw cash for personal use from bank Rs.3,000.
15. Receive a cheque from Manju Rs.2,800.
16. Borrow loan from Anands Rs.1,000.
17. Paid Anands Loan with interest Rs.1,000.