Full Tutorial of tally.ERP9 Notes

What is Account:-

Recording of all the transactions like nature concerning a particular item at the same place is called an account. An acs two sides i.e debit and credit. Debit is the left side of an account while credit is right side of an account.

Account is a Record of transaction which may belong to person, company, assets, liabilities and Income & Expenditure.

Basically There are Three Types of account.

1. Personal account:- Any Account which belongs to person and all types to companies, They are called personal account.
Example:- Ram's A/c, Google A/c, Microsoft A/c, SBI A/c, Jio A/c & Capital A/c etc.


2. Real account:- All Types of company's Assets Account are Called Real A/c.
Example:- Stock A/c, Computer A/c, Furniture A/c, Cash A/c, Goodwill A/c etc.

3. Nominal account:- Any Account which Relates to Income & Expenditure, They are called Nominal Account.
Example:-Salary A/c, Wages A/c, Carriage A/c, Interest On Investment A/c etc.

What is Tally?

It is an application software also known as a complete business solution. In these days, computerized accounting has become a necessity for every business. Computerized accounting is the best way to maintain accounts in easy and accurate mode. With the help of computerized accounting, we can easily keep all accounting books like cash book, bank book, sales register, purchase register. It is a very common and user friendly software.

Tally is a course of accounting and Tally erp9 is a software with the help of which we can manage a company's account. Tally accounts all types of financial transactions.

Features of Tally:-

Speed:-A tally user can get any reports instantaneously for any date/period and can toggle between reports, either accounting or inventory or even from one company to another company. 

Easy management:- Tally has the power to generate management information, which would help the management in taking correct and quick decisions. 

Tally version:-

Tally 3.0

Tally 3.1

Tally 4.0

Tally 4.5

Tally 5.0

Tally 5.4

Tally 6.3

Tally 7.2

Tally 8.1

Tally 9.0

Tally Erp-9 (Enterprises Resource Planning)

Starting Tally-

Click start button⟶ all program⟶ Tally erp9 ⟶ Tally erp9 release.

Window of Tally

Tally Screen Component

Title Bar-

                 Display the version no., system Date, Time and the tally serial no.

Gateway of Tally-

             

Display means, Screen report and accepts the choice and option you select

     To view data as require. Ctrl+M

Calculator: - Use for calculation function. Ctrl+N

Buttons Toolbar-

   Displays buttons that provide quick instruction with tally only buttons to the Current task will be visible.

Minimize buttons-

                 Perform the standard window operating functions system.

Company Creation 

Gateway of Tally ⟶ Alt+F1⟶ Create Company

Select Company:-To Select an Existing Company.

Create company-This option is use to create a new company.

Back Up: - To take backup of an existing company in any secondary memory.

Restore:-To Restore any company in Tally.

Quit:-To Close.

Company Information:-

Gateway of Tally for Company Information Press Alt+F3

Select Company:-To Select an Existing Company.

Create company:-This option is use to create a new company.

Shut Company:-This option is used to shut\close the company.

Alter- The alter option is use for making changes to an existing company.

    This option can also be used to delete any company.

• Short cut key for delete the company. (Alt+ D)
• Short cut key for saving the company. (Ctrl+ A)

Backup: - If you want to take data of tally to some other storage device.

Restore: - when you want to yet date of tally from some other computers.

Quit: - To exit from Tally we use Quit option

Group Creation:-We can say that groups are collection of ledgers, which are same in their characteristics.

Ledger:-A ledger is the actual head to which we identify a transaction. In tally we pass all accounting vouchers using Ledgers. All ledgers have to be classified into groups.

When we create a ledger keep two thing:-

1. Name of Ledger
2. Under Group

Ledger creation

Gateway of Tally ⟶Accounts Information ⟶ Ledgers⟶ Create

List of ledger:-

Name of Ledger	Under Group
Goods Purchase	Purchase a/c
Goods Sales	Sales a/c
Bank name	Bank a/c
Capital	Capital a/c
Party(Firm)	Sundry Creditors(Whom with Purchase)
Party (Firm)	Sundry Debtors(Whom with sales)
Income	Direct Income
Income	Indirect Income
Loan	Loan(Liabilities)
Outstanding	Current (Liabilities)
Stock	Stock in Hand
Cash	Cash in Hand
Expenses	Direct Expenses
Expenses	Indirect Expenses
Air Conditioner	Fixed Assets
Calculator Phone	Fixed Assets
Computer	Fixed Assets
Electronic Fitting	Fixed Assets
Furniture	Fixed Assets
Office Equipment	Fixed Assets
Salary Expense Payables	Provisions

Indirect Expenses ⟹  1. Electricity Bill  2. Repairing  3. Investment  4. Salary  5. Insurance  6. Stationary  

7. Rent paid  8. Repaired Generator  9. Discount allow 10. Interest on loan 11. Telephone bill,  advertising 12. News paper.

Direct Expenses ⟹ 1. Power               2. Water                     3. Wages                   4. Freight 

Indirect Income ⟹ 1. Commission Received             2. Rent Received        3. Discount received 

Direct Income ⟹ 1. Audit Fees Received                        2. Consultancy fees received                        3. Certification fees                       received                   4. Retainer ship fees Received

Fixed assets ⟹ 1. Machinery             2. Computer               3. Generator              4. Building

Deposits (Asset)  Fixed Deposits       Security Deposit A/c  Telephone Deposit A/c  Deposit in Other Company       

Multiple Ledgers

Multiple Ledger is used for create one or more ledger in single step.   

G.O.T⟶Account Information⟶Ledger⟶Multiple Ledger⟶Create

Detail of Ledger:-  

G.O.T⟶Display⟶Account Book⟶Ledger⟶Select Ledger⟶Alt+F2 (For Change Period) 

Voucher Entry

A Voucher is a document that contains details of a financial transaction and is required for recording the same into the books of accounts. For every transaction, we can use the appropriate Tally Voucher to enter the details into the ledgers and update the financial position of the company.

There are basically two types of voucher Entries:

1. Accounting Vouchers
2. Inventory Vouchers

Types of Voucher

1. Purchase                   F9
2. Sales                          F8
3. Receipt                      F6
4. Payment                    F5
5. Contra                       F4
6. Journal                      F7

Purchase Voucher:-All purchase transaction are entered in purchase voucher.

 Particular                                                      Debit                                                  Credit

Cr Party a/c                                                                                                                (Amount)

Dr Purchase Account                                               (Amount)

For Changes in Voucher or Delete.

G.O.T⟶Display⟶Day Book⟶Select Voucher (For Delete Press Alt+D)

Sales Voucher:- All credit sales transaction is entered in sales voucher.

Particular                                                       Debit                                                        Credit

Dr Name of Buyer                                        (Amount)

Cr Sales Account                                                                                                            (Amount)

Receipt Voucher:-All inflow of money (in cash or through Bank) is recorded through receipt voucher. Such receipts may be towards any income or from Debtors or Loans/Advance taken or Refund of Loans/Advances given earlier etc.

Particular                                                       Debit                                                           Credit

Cr Ledger Account Recd from                                                                                         (Amount)

Dr Cash/Bank Account                                (Amount)

Payment Voucher:-All transaction related to payment (by Cash or through Bank) are recorded in Creditor, Payment voucher. Such payments may be towards Purchase, Expenses, and Acquisition of Fixed Assets Loans/Advances given by you or repayment of Loans/Advances taken by you earlier etc

Particular                                                       Debit                                                             Credit

Dr Ledger Account Paid to                          (Amount)

Cr Cash/Bank Account                                                                                                      (Amount)

Profit & Loss Account:-A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The profit and loss statement is also known as a “statement of profit and loss” an “income statement” or an “income and expenses statement”.

Balance Sheet:-The balance sheet is a financial statement that shows what the business is worth at one point in time. A standard company balance sheet has three parts assets, liabilities and ownership equity or capital.

Contra Voucher: - Contra voucher is for entering fund transfer where net inflow and outflow are equal. i.e. net effect is Zero. We can enter transaction between Cash and Bank Accounts (Ledgers placed under Groups: Cash-in hand, Bank Accounts and Bank OCC) only.

Particular                                                       Debit                                                           Credit

Cr Source of Funds                                                                                                          (Amount)

Dr Destination of Funds                               (Amount)

Example of Contra Voucher:

• Cash account to Cash account
• Cash account to Bank account
• Bank account to Cash account
• Bank account to Bank account

Journal Voucher:- Journal entries are used in instances where the company requires adjusting the debit & credit amounts without involving the cash or bank account.

Particular                                              Debit                     Credit

Dr Depreciation                                   (Amount)

Cr Machinery                                                                                                                                                (Amount)

Cr Furniture & Fixture                                                            (Amount)

Cr Motor Car                                                                                                                                               (Amount)

Method of Voucher Numbering:

If you have set method of voucher numbering to automatic in voucher type screen, tally will automatically inter the voucher number and if you have set method of voucher numbering manually, tally allows you to enter the voucher number manually.

Apply Manually Method of Voucher Numbering:-

G.O.T⟶ Account Information⟶Voucher Type⟶Alter⟶Select Voucher⟶Method of Voucher Numbering⟶Manual

Prevent Duplicate⟶Yes

References

New Reference:-The new reference option is use for purchase and sales voucher.

Again Reference:-The again reference option use in payment and receipt voucher.

Advance:- The advance option use in payment or Receipt voucher.

On Account:-On accounts option is used to adjustment entry.

Debit/Credit Note

Activation:- G.O.T⟶ Press F11 features⟶ Accounting features⟶Use Credit and Debit Note-Yes

Credit Note:- Credit note is entered to credit party account. Normally credit note is issued when a buyer returns some goods that were sold him (sales return).

Shortcut Key:- Ctrl+F8

Voucher Entry G.O.T ⟶ Accounting Vouchers Press ctrl+F8 (Credit Note)

                 Particularly                                                                Debit                           Credit

Dr           Party Account (customer)                                                                         Amount

Cr           Sales Return (Under Sales A/C)                       Amount

Debit Note:- Debit Note is entered to debit party account. Generally a debit note is entered when we make purchase return.

Shortcut Key:- Ctrl+F9

Voucher Entry:- G.O.T⟶ Accounting Vouchers⟶ Press Ctrl+F9 (Debit Note)

Particularly                                                    Debit                                      Credit

Dr            Party Account                                                                   Amount

Cr           Purchase Return (Under Purchase A/c)                                         Amount

Multi Currency

Multi currency feature is used to change the currency in one form to another form.

Activation:-G.O.T⟶Press F11 features⟶ Accounting Features⟶ Enable multi currency- yes 

Step-1

Create a Currency:- G.O.T⟶ Accounting Information⟶ Currencies Create

Symbol            :     $

Formal Name  :  Dollar

Number of Decimal : 2

Show Amount in Millions:  No                    

Press Ctrl+A For Save

Rate of Exchange:- G.O.T⟶ Accounts Information⟶ Currencies⟶ Rate of Exchange

Step-2

Multi Currency Alternation

S.No    Currency                    Std Rate                     Selling Rate                Buying Rate

$ Dollar                      Rs 50/$                        Rs 50/$                        Rs 50/$

Cost Centers

A cost centers any unit of an organization to which transaction (generally revenues) can be allocated. When only costs or expenses allocated to these units they are referred to as cost centers. When profits are also allocated to these units, they become profit centers. We can now obtained a profit lose account of each such profit centers.

Example of cost centers

1.  Department of any organization finance, manufacturing, marketing,
2.  Products of a company
3.  Individual details such as student detail, employee detail etc.

Activation Cost Centers: - G.O.T⟶ Accounting Feature (F11)⟶ Maintain Cost Centers- (yes)

Ctrl +A (for save).

Create New Cost Category:- Cost category facilitated to allocate amount to multiple cost centers.

Activation:- G.O.T ⟶ Account Information ⟶ Cost category ⟶ Create

Name                                     : Employee Salary

Class                                      : 

Allocate Revenue Item         : Yes

Allocate Non Revenue Item : Yes

Some other Examples: Advertisement, Manufacturing etc.

Create New Cost Centers :- Cost centers in tally allow an additional dimension to transaction where a ledger account indicates the nature of the transaction.

Activation:- G.O.T⟶Account Information⟶ Cost centers⟶ Create

Category           :     Salary

Name                 :

(Alias)                :

Under                 :   Primary

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1. What is  Payroll?