TRAINING MATERIAL & TALLY MODEL COMPANYINDEX SR NO. PARTICULARS PAGE NO. 1 Basic Principles of Accounting 2-4 2 Golden Rules of Accounting 5-5 3 First Screen 6-6 4 Select Company 7-7 5 Choose Company 8-8 6 Gateway of Tally 9-9 7 Change in Accounting Period 10-10 8 Alter/Create New Company iit 9 Recording of Opening Balances 12-15 10 | Making Accounting Entries 16-16 it Select the Proper Key As per Requirement 7-17 12 | F6— Receipt Entries 18-19 13 | F4—Contra Entries 20-21 14 | F5—Payment Entries 22-23 15 | Banks Monthly Extracts 24-24 16 | Banking Detailed Transactions 25-25 17 | Preparing Bank Reconciliation Statements 26-26 18 Printing Option 27-28 19 | Trail Balance View 29-33 20 | Profit & Loss Ale View 34-34 21 Balance Sheet view 22 | Shortcut Keys in Tally 36-38Basic Principles of Accounting : - Guidelines on Basic Accounting Principles and Concepts GAAP (Generally Accepted Accounting Principles) is the framework, rules and guidelines of the financial accounting profession with a purpose of standardizing the accounting concepts, principles and procedures. Here are the basic accounting principles and concepts under this framework : 1. Business Entity A business is considered a separate entity from the owner(s) and should be treated separately. Any personal transactions of its owner should not be recorded in the business accounting book, vice versa. Unless the owner's personal transaction involves adding and/or withdrawing resources from the business 2. Going Concern It assumes that an entity will continue to operate indefinitely. In this basis, assets are recorded based on their original cost and not on market value. Assets are assumed to be used for an indefinite period of time and not intended to be sold immediately. 3. Monetary Unit The business financial transactions recorded and reported should be in monetary unit, such as INR,US Dollar, Canadian Dollar, Euro, etc. Thus, any non-financial or non-monetary information that cannot be measured in a monetary unit are not recorded in the accounting books, but instead, a memorandum will be used.4, Historical Cost All business resources acquired should be valued and recorded based on the actual cash equivalent or original cost of acquisition, not the prevailing market value or future value. Exception to the rule is when the business is in the process of closure and liquidation. 5. Matching Concept This principle requires that revenue recorded, in a given accounting period, should have an equivalent expense recorded, in order to show the true profit of the business. 6. Accounting Period This principle entails a business to complete __ the whole accounting process of a business over a specific operating time period. It may be monthly, quarterly or annually. For annual accounting period, it may follow a Calendar or Fiscal Year, 7. Conservatism This principle states that given two options in the valuation of business transactions, the amount recorded should be the lower rather than the higher value. 8. Consistency This principle ensures consistency in the accounting procedures used by the business entity from one accounting period to the next. It allows fair comparison of financial information between two accounting periods.9. Materiality Ideally, business transactions that may affect the decision of a user of financial information are considered important or material, thus, must be reported properly. This principle allows errors or violations of accounting valuation involving immaterial and small amount of recorded business transaction. 10. Objectivity This principle requires recorded business transactions should have some form of impartial supporting evidence or documentation. Also, it entails that bookkeeping and financial recording should be performed with independence, that’s free of bias and prejudice.Golden Rules of Accounting :- A] Real Accounts:- 1)Debit what comes in. 2)Credit what goes out. B] Personal Accounts :- 1)Debit the reciver. 2)Credit the giver. C] Nominal Accounts :- 1)Debit all expenses & Losses. 2)Credit all Incomes & Revenue.Tally ERP Icon. Please double Click on Tally ERP9 Icon or select and press enter on Tally ERP9 Icon to start the Tally ERP ProgramSELECT COMPANY:- Main Screen rn De sto Set Conga a fas Ent oo \seetcomany tn as erat User create Corry Bevis Rese out crore Enter on Select or Press “S” to open the desired company.CHOOSE COMPANY :- 5 flyan Select Company ‘be sere THLE say 20010 Sea atte [pubsaacmPe a, a Sie, (59811 Choose the Relevant company from the list and press enter.GATEWAY OF TALLY :- Ce annie stan Mondo. 129.200) na List of etn Cmpien Nea Cangany ato taa En Accourts ino ‘unk seh seme Younes ree ‘easactont ‘seourera vous umes Inport of ats Bonen juste -Auat &¢orptance Reports Baance sheet Prats Loss ae ath anayss Deploy Nuh Account Paning roast” coltnte raperataain sie sesna| Ob sere on Poe 25" fi css, eT 9 08 5238 foe At this screen, it can be seen as to which company is open, period of operation, current date and the date of last entry.CHANGE ACCOUNTING PERIOD :- al a — eo [ese ei secon sneconlame | Press “Alt-F2” to change the period for which accounting is to be done.ALTER COMPANY/ CREATE NEW COMPANY :- reat aes corer a santo naan Sunday, 8 Ap, 203, Lit of Sled Companion | sone of eonpany Dato Lact Ey aeapea0t9 (change Tabyaxt Pit Comeany Data Bachup Rese After pressing “Alt-F3”, the company info screen is displayed, in which options for Altering company master data, backup etc are seen (Alter).RECORDING OF OPENING BALANCES :- PATH : At Gateway of Tally Accounts Info>Ledger>Alter>Cash in Hand. ‘Caen at Sub Marit Os (aaetnessnnent Ons The opening Balances of all Balance Sheet items can be recorded by selecting the ledgers.ENTER THE OPENING BALANCE AMOUNT :- 1.45700. The Opening Balance as on 01-04-2013 can be feeded for all ledgers and it should be ensured that there is no difference in opening Balance in Tally.PATH : Accounts info>Ledger>Alter>DCC BANK co oc BAN SHRE, Inirestto Banks -D 0. Em [TET Ue A eT TESA|ENTERING THE OPENING BALANCE AMOUNT :- (Cro ans) ot Aypiabe The Closing balance as on 31.03.2013 as per audited statement of accounts can be recorded as opening balance as on 01.04.2013.FOR MAKING ACCOUNTING ENTRIES Select Accounting Vouchers 420s 213200 ‘Sunday 28 pe, 2013 Lit of Sette Comps a of Coma i apmc Imgonotbaa Saveng att ‘uate conplance Reports Salace eet Prot Lassie Rao anayes Depay ul Becourt PontingSELECT THE PROPER KEY AS PER REQUIREMENT :- i) F4 - Contra : For any Deposit/Withdrawal of Cash from Bank. (Only Cash/Bank A/c are Debited / Credited in Contra entries.) ii) F5 - Payment: For any Payment made weather cash /Cheque entry should be passed through Payment entry. (Only Cash/Bank A/c are Credited in Payment entry.) iii) F6 - Receipt: For any Receipt weather in cash /Cheque entry should be passed through Receipt entry. (Only Cash/Bank A/c are Debited in receipt entry.) iv) F7 - Journal : Other than Cash/Bank any entry can be passed through Journal entry. (Transactions where No Cash/Bank A/c are affected should be passed through Journal e.g. Year end Provisions entries). v) F8 & F9 - Sales & Purchase Entries: For Trading Activities ie Purchase & Sales of Goods, Entries should be passed through this keys.SELECT F6 KEY FOR RECEIPT ENTRY : - MAIN MARKET FEES RECEIPT. 2.9 Lh Ea a coo For recording of any transactions, Rules of Accounting should be followed. E.g. At the time of recording Market receipt (Income) Nominal Accounts rules i.e. Credit the Incomes and Revenues.( Please refer above screen). Summary of Transactions Should be mentioned in Narration Part. In the above entry, please provide the details of Cheque Number, Name of the Bank, Branch etc which will facilitate Bank Reconciliation.SUB MARKET FEES RECEIPT. In the above entry , please provide the details of Cheque Number, Name of the Bank, Branch etc which will facilitate Bank Reconciliation.SELECT F4 KEY FOR CONTRA ENTRY : - Contra entry : Amount withdrawn from the Bank. ‘To occ Bank Carbs! 294820526 0" vee soaca ‘Cheque Range: Nx Agplcale sn oe 26-9:20°3 Cas Using Ac Payee Bank at (Cures 66503500Contra entry : Amounts Deposit into the Bank. ‘To cash atHeas once (ur 6.95095. OF By Doc Bank GurB 298, 28625 Or Cash ‘ono. sta. Int Date ge 2013 BeachSELECT F5 KEY FOR PAYMENT ENTRY : - Payment Entry : By Bank Charges Guba’ TononoF To pce Bank (Gur Ba, 29,5 18525 Bink Charges wom ‘Cheque Ranges No Apiesble In Doe + 25Ag:20%8 Cross Ung = Ale Payee ‘Bank DawePayment Entry : A Ken | Cael ate i: Spt at Hep cn Particulars By House Rent -Otieers& Sat GurBat 1.00000 To occ Bank Gu Bal 79.48 16526 0" Howse Rent Ofices 8 Stal Cheque Ranges! Net Apicele Bank Date 10,000.00 ‘0.90100 fest Date: -Ag-2013 Cross Using : Ale Pajee 00000 10.0000BANKS MONTHLY EXTRACT :. eae eMC ‘Aged BeOS Tansacions sng Debt | __Cudt Balance 3,865.0 Een Eg NL 29,50, 38025 Dr We can see the Total monthly Inflow and outflow (Dr.& Cr.) of a particular ledger and also can see the Monthly closing balance of the said ledger.BANKING DETAILED TRANSACTIONS :- Leager Dee Bank Tae Woke Fee-Banana Moin Mit 18.10.98 Supervidon Fae Mala Makst 10.08 Cr (342019 (a8 pet deta) Receipt ailat Fos Coton Male wht 1.000008 cx SSmperison Fee-HsinMasst SHAD Ce 5:03 [as pet details) Pacey Woke Fee-Weat-Main it 5000.9 Superidon Fao Main Mat 25008 x 42013 (03 per deta) Reaeiyt avo: Foo- Bost! Loaf Sak ht 58,008 cx Sperison Foe Sih Market 7500 Cr 26.1203 (os per deta) Poca het Fes Wheat Sut hd 400 (8 Ce ‘Superion Foo Sub Markt Suto: 42013 (03 per deta) Receipt aibatFos -Poata-Sub Mh 68,0000 x ‘Sperison Foe Sih Market MIS Ce 26.1203 (os per details) Poca askt Fe try Fats Seb Wht 45008 Ce ‘Supervidon Fao Sub Market NG 2.02013 cash atHead omce conta 2502013 Cash atHead Office Conta 2.07013 BANK CHARGES Papert 2220/3 House Rem -Ofoers & Stat Payne 2.0705 as per datals) Receipt Dyeing Beane Curent Toa losing Baie: eke After Entering Ledger Monthly Extract, We can get the detailed day wise Transactions.PREPARING BANK RECONCIALTION STATEMENTS Eee eps | KeCns Ca epee Help mo ‘apron to 0-9-2019 Reconcitvon) Da Pariewins —_vevTyge__TirsasianTpe _nsamen ta) Vawonen tae Beaks ebro 1-203 Ra NE Receipt Chequto ls san e279 10000 Chega seri 12¢2719 1000000 Chegusc0 1502013 4973 50025000 hequa0. {SS 50025.00 Chega Beno 1.00 050.00 Chega meno 6050025 Chega eno 5042500 Chea meno Coch aem0 10900.0 Chew zene Che zene Chemo Bem8 90010 1090000 are as per Conpany Hoos: 285898025 Sanurrsnctretesesin Sari 10,63,59025. ‘lanes 98 per Sank 1897 25000 — For Preparing Bank Reconciliation , Press F5 Key and enter the Actual clearance date of cheque (Bank Date). From that we can get the difference and detail of amount which is not reflected in Bank account for current period.PRINTING OPTION :- Printing A La 485) Pape Type: Let 1 Erabh (Pintng Omens] est Mows Papo Siz : BAY Tan) rt Print ea = fi 37 mm) Tega Tae Dec Bask econ Serent (rtnPen Peon) Witt Congay hon Sle ourero ash Vouchers Stow Marans #0 > Stow Rensis ako Pane? Stow Reconciled Taneactin eo Stow Payne Fan Resid Fen ves to For Print of any page press Alt+P key and select the required detail: (Please see the above Right side screen). E.g. - For Print Preview -Alt+I - For Title Editing - Alt +T - For No.ofcopies - Alt + C etc.BANK RECONCIALATION STATEMENTS :- DCC Bank econ Sanert ‘apenas Fee TE Palins Wiig __Tassinn Tee aie Iehaneose Sea etc eeDD TEES Tob. Crewe meena ‘sms Cteqao0 ween 50.05.00 405 Cah tend ic Cota eee secanls 109 BANK CHARGES Panwa Chats mem M40 tat. et Papmest Chee seems MHS Cah ted fee Cat Cash seen3 2503 oman fbf Faw SaReceet_—__CheweDO__ 285 rev3 25002 _ sou Tice ayer Company Boks PB. rou ret eletodn Ean 10.31.1065, lance as pet Bonk: PAT3I500 Bank Reconciliation can be prepared on the basis of Bank date and Date on which entries are recorded in tally. With the help of this BRS can be obtained on Real Time basis.TRAIL BALANCE :: PATH- Gateway of Tally > Display -> Trail Balance Baty on 9 cet Pd 1420151 3152014 Sunday, 2p, 208 isto Sete Congres Doet Lat ny Beka 2019 ecoure Enos Smits Acts CashiFunds Flan Reseprs ano Feyerts stor acounts Excagion Paps ut EAT ITESummerise Groupwise Closing Trail Balance:- Bray. cers Particulars Cling Balance Incct Expenses ciesAfter Pressing Alt+F1 key, We will get the detailed trail Balance Ele Centar ‘SUPERVSIONFEES PAYABLE Cuneta Opering Stack Cashin Bark Acoune Diet Incomes MABVETFEES Init Exponsos SO\INSTRATVE BPENISES SALARY 2 ALLOWANCE TD STARE ‘Grand TotalBy Pressing F12 ( Configuration), We can select Opening trail Balance Yes Option and can see the Opening Trail Balance also or transactions during the year also. oniaron Shoe oping ances appears Nes amo Only Sel Fat vabee Deft Soar ere Det Evgndlelin OesiedFomst 7 Wo Can see theCan see the opening as well as Closing Trail Balance with Transactions During the year as per below screen : Bayi 9 ‘SUPERVISION FEES PRYAGLE Curent set psig Stack Cashinhand an cous Diet neomes NAPKETFEES Indtet Expenses ADMNSTRETYE BPENSES SALARY LALLOWAICE TO STAFF PU ‘Agen 2013 Transgctions Debi [Cre 26a 360.0 + 2.0200 Grand Total waa soresPROFIT & LOSS A/C IN TALLY :- PATH- Gateway of Tally > Display > Profit & Loss A/c Eleva AC {Agee An Particulars ADMINISTRATIVE BPENSES OMNITTEE WEEE S EP INTEREST PAD TO BANKS CTTHERERPENGES SOLARY 2 ALLOWANCE TOSTHEF Net rote 2140. 1030 10.1009 00 sognno 220m) Sale Acounts| Diet ncomes MODHETFEES cling Steck Gross Prt bi net noms INVESTHENT NCOME NANMARAET- OTHER NOONE AL YARPET- PROPERTY NONE SUBMARMET. OTHER INCOME SUBNARHET PROPERTY COVEBALANCE SHEET IN TALLY PATH- Gateway of Tally > Display > Balance Sheet ssa BANS 622800 ‘STEEL ADE AOE hvesmenss DEPOSITS RECEMED: Caren Ase ‘OTHERUABLTY Casing Sok SUPERVISINFEES PAYABLE Loans & tances fst) Poof & Less ie Cashin 90m 000 Comeau Ban eae 2358 5.35 arated 356488023SHORTCUT KEYS IN TALLY Windows | Functionality Availability To sclect a company ‘Atall masters menu screen FI To select Accounts Button | At the Accounting / Inventory vouchers and inventory Buttons creation and alteration screen F2 c the menu period | To change the menu period F3 To select the company ‘To change the menu period To select the Contra | At Accounting / Inventory Voucher creation Pa voucher and alteration screen bs To select the Payment | At Accounting / Inventory Voucher creation To select the Receipt | At Accounting / Inventory Voucher creation Fo voucher and alteration screen ee To select the Joumal | At Accounting / Inventory Voucher creation voucher and alteration screen ke To select the Sales voucher [Af Aceounting / Inventory Voucher creation seb To sclect the Credit Note | At Accounting / Inventory Voucher creation (CTRLAF8) voucher and alteration screen To select the Purchase | At Accounting / Inventory Voucher creation Fo voucher and alteration screen (crrL+ Fo) |T select the Debit Note |at Accounting / inventory Voucher creation voucher and alteration screen rio To select. the Reversing | At Accounting / Inventory Voucher creation ° Journal voucher and alteration screen 2]To select the Memorandum At Accounting / Inventory Voucher creation Flo voucher and alteration screen Pu Zo select the Functions 84 | 4 stmogt all cron in TALLY F12 To select the Configure | a¢ atmost all screens in TALLY To Duplicate a voucher At List of Vouchers - creates a voucher similar to the one where you positioned the cursor and used this key combination To Add a voucher ‘At List of Vouchers — adds a voucher after the one where you positioned the cursor and used this key combination. To create a master at a voucher screen (if it has not been already assigned a different function, as in reports like Balance Sheet, where it adds a new column to the report) At voucher entry and alteration screens, at a field where you have to select a master from a list. If the necessary account has not been created already, use this key combination to create the master without quitting from the voucher screen. To delete a voucher To delete a master (if it has not been already assigned a different function, as explained above) At Voucher and Master (Single) alteration screens. Masters can be deleted subject to conditions, as explained in the manual, #2 ALT +A ALT+C ALT + D. ALT+¢ To create a master at a voucher screen (if it has not been already assigned a different function, as in reports like Balance Sheet, where it adds a new column to the report) At voucher entry and alteration screens, at a field where you have to select a master from a list. If the necessary account has not been created already, use this key combination to create the master without quitting from the voucher screen. STH TsTo delete a voucher To delete a master At Voucher and Master (Single) alteration CTRL+A us a specific detail has to be given before combination, that screen or report gets accepted as it is. accepting.