Practical application of accounting software – Tally.ERP 9
Practical on application of accounting software - Tally
Tally can be started in either of the ways as given below:
Click on Start > All Programs > Tally.ERP 9 > Tally.ERP 9 icon
Click on Tally.ERP 9 icon (shortcut) on the desktop
A newly installed Tally, if opened, will appear as in figure 10.1.
When Tally is started, choose the mode of operation as per the options listed on the screen. If license is available, choose ‘Activate Your License’. Otherwise choose ‘Work in Education Mode’.
For practice, ‘Work in Education Mode’ is chosen. After the selection, the first screen appears as in figure 10.2.
It is essential to enter the particulars of the company for which accounts are to be maintained in Tally.
In order to create a company, the following steps are to be followed:
Company Info > Create Company
After selection of Create Company from first screen in Tally, the Company Creation screen will appear as in figure 10.3.
Tally asks for name, address, books and financial year details, security control, base currency information, etc. Now, provide all particulars of the company as required in Tally. After completing all entries, choose ‘Yes’ to accept data and create company.
For practice purpose, enter only the name and keep all other fields as they are.
Following the above procedure, multiple companies can be created.
Tally screen appears as in figure 10.4 given below, after creation of a company and whenever Tally is started. This screen is called Gateway of Tally. It shows the company selected under List of Selected Companies on the left pane.
Gateway of Tally is shown on the right pane which contains menu options such as Transactions and Reports. The shortcut key for each menu option is a letter from the option’s name, which will be highlighted in red.
Vertical button bar is placed on the extreme right of the screen which contains buttons such as F1 and F2 for quick interaction with Tally.ERP 9.
Bottom horizontal information panel displays details of product, version, licence, configuration and calculator.
The Gateway of Tally screen will appear as below:
4. Closing Tally
The following are the two ways for closing Tally:
Press Esc Key > Press Enter or Y
Click on Yes(or)Press Ctrl + Q
If multiple companies are created, to choose a particular company, after opening Tally, click F1 (Select Cmp) on the vertical button bar. Tally.ERP 9 displays the Select Company screen, with a list of companies that are already created. Select the company for which accounting has to be done.
After creation of a company, it is necessary to set up Tally.ERP 9’s features. The features in Tally.ERP 9 are set of capabilities, provided as options, that enable maintainenance of financial records as per the requirements of the users. Click F11:Features, on the vertical button bar to go to Company Features menu. It contains Accounting Features, Inventory Features, etc. The Company Features screen will appear as shown in figure 10.5.
The General Accounting Features include ‘Maintain accounts only’, ‘Integrate accounts and inventory’ and use Income and Expenses A/c instead of Profit and Loss A/c. The other Accounting Features include Invoicing, Banking Features, etc.
For practice purpose, only the accounting aspects are considered and inventory features are not considered.
Select Accounting Features from the Company Features menu. Under General Accounting Features, set ‘Yes’ to ‘Maintain accounts only’ option. Leave all other features to default values and accept ‘Yes’.
The Accounting Features screen will appear as shown in figure 10.6. (see the next page)
Statutory and Taxation features include Goods and Services Tax (GST), Value Added Tax (VAT) and Tax Deducted at Source (TDS). To enable Goods and Services Tax, set ‘Yes’ to ‘Enable Goods and Services Tax’ option. For practice purpose set to default value of ‘No’.
In Tally, a Group is a collection of ledgers of the same nature. There are predefined groups of accounts which are widely used in accounts of many organisations. These predefined groups comply with the basic accounting principles of classifying various account heads into Assets, Liabilities, Income and Expense as shown below:
Groups are categorised as Primary Groups and Sub-Groups. Primary group includes Capital Account, Current Liabilities, Fixed Assets, Current Assets, etc. Sub-Group includes Reserves Surplus, Sundry Creditors, Sundry Debtors, etc.
To view predefined groups,
Gateway of Tally > Masters > Accounts Info > Groups > Single Group > Display After selection, Tally screen will appear as in Figure 10.7.
If any additional group is required, it can be created as follows:
Gateway of Tally > Masters > Accounts Info > Groups > Single Group > Create
In Tally, to record transactions, the transactions are to be identified with the related ledger accounts. Tally has two predefined ledgers, Cash and Profit & Loss A/c. The user has to create various other ledgers based on their requirements.
To create ledger:
Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Create After selection, Tally screen will appear as in Figure 10.8.
While creating a ledger, name and the Group under which the ledger account is to be classified should be provided. Leave all other features to default values and accept ‘Yes’.
Alteration or deletion of group and ledger is possible. While details of user-defined group/ ledger can be fully altered, only name can be altered for predefined group/ledger. Predefined group/ledger cannot be deleted. However, user-defined group/ledger can be deleted.
To delete a ledger: Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Alter > Select the Ledger to be deleted > Alt D > Yes
Voucher is a document which contains details of transactions. Transactions are to be recorded through voucher entries. Tally has a set of predefined vouchers such as Purchase, Sales, Payment, Receipt and Contra.
To view the list of voucher types:
Gateway of Tally > Masters > Accounts Info > Voucher Types > Display As per the requirements of users, additional voucher type can be created. Following are some of the major accounting vouchers used in an organisation:
i. Receipt Voucher
ii. Payment Voucher
iii. Contra Voucher
iv. Purchase Voucher
v. Sales Voucher
vi. Journal Voucher
All transactions related to receipt either in cash or through bank are recorded using receipt voucher. In this voucher, cash or bank account is debited and other ledger account is credited. To record receipt:
Gateway of Tally > Transactions > Accounting Vouchers > F6:Receipt
All transactions related to payments either in cash or through bank are recorded using payment voucher. In this voucher, cash or bank account is credited and other ledger account is debited. To record payment:
Gateway of Tally > Transactions > Accounting Vouchers > F5:Payment
A transaction involving both cash account and bank account is recorded using contra voucher. The transaction may be for deposit of cash into bank account or withdrawal of cash from bank account.
To record contra:
Gateway of Tally > Transactions > Accounting Vouchers > F4:Contra
Purchase vouchers are used for recording both cash and credit purchases of goods.
To record purchases:
Gateway of Tally > Transactions > Accounting Vouchers > F9:Purchase
Sales vouchers are used for recording both cash and credit sales of goods.
To record sales:
Gateway of Tally > Transactions > Accounting Vouchers > F8:Sales
Journal vouchers are used for recording transactions involving other than cash, bank, purchases and sales such as depreciation, provision for bad debts.
To record journal:
Gateway of Tally > Transactions > Accounting Vouchers > F7:Journal
To record transactions using voucher, Accounting Voucher Creation has to be used. Accounting Voucher Creation contains Name and Number of the voucher, Date of voucher, Particulars, Debit and Credit and Narration.
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