Tally used in number of MNC and start up companies .So this is important to know how to work with tally.
Introduction Of Tally
Tally Solutions Pvt. Ltd., is an Indian multinational company that provides enterprise resource planning software(ERP). It is headquartered in Bengaluru, Karnataka India. The company reports that its software is used by more than 1.8 Million customers
Groups : Set of account are called groups
Ledger : Ledger is set classification of journal it is called ledger.
There Are Two Default ledgers in tally (Press the page up key)
1. Cash
2. Profit & Loss A/c
There are 28 groups in Tally ERP Software .it is two types.
1. Primary group 15
2. Secondary group 13
Accounting
1. According to AICPA, “Accounting is the Systematic(art of)recording,
classifying and summarizing in a significant manner and in the term of
money, or money’s worth transactions and event”.
2. Accounting is the language of business
Accounting Process :
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Financial Statements
Financial Statements Are Set OF Statements Like Income Statement
,Cash Flow Statement, Balance sheet. It is Clearly Showed The
Organization’s Financial Health.
Journal Records
Accounting Transactions are Initially Recorded on the Basis of Source Of
Document and It should be Recorded Based On Double Entry System in The
Book.
Double entry system
Double entry system is an accounting system that records of effect to
transaction and other event in at least two accounts with equal debit and
credit.
The Debit Amount and credit Amount should be equal.
Account types
1. Revenue
2. Expense
3. Asset
4. Liability
5. Capital
Revenue
It means the amount which, as a result of operations, is added to the
capital.
It is inflow of assets which result in an increase in the owner's equity.
E.g. sales ,Rent Received, Received commission, Received brokerage etc.
If The revenue Increased, It Will Be Credit In the Double Entry System.
Expense
The terms “expense” refers to the amount incurred in the process of earning
revenue.
E.g. Rent, Telephone , Electricity
If The Expense Increased, It Will Be Debit In the Double Entry System
Asset
An Asset is a property of value owned by a business.
It may Physical objects and intangible rights.
If The Asset Increased, It Will Be debit In the Double Entry System
E.g. money, accounts receivable, machinery, buildings, and inventories,
Goodwill ,Royalty
Assets are generally divided into two main groups
1.Current Assets
2. Fixed Assets
Liability
A Liability is a legal obligation of a business Need to pay a debt.
E.g. Unpaid Expenses , salary due , loan
If The Liability Increased, It Will Be Credit In the Double Entry System
it is generally two type
1.Long-Term Liabilities /Non Current Liabilities
2.Current Liabilities
Capital
Capital is called net worth, it is Company Owner’s net worth same time it will
called owner’s capital.
E.g. Ramu Start a Business to Put 500,000
If The Capital Increased, It Will Be Credit In the Double Entry Systemc
Ledger creation
A ledger is a book containing accounts in which the classified and
summarized information from the journals is posted as debits and
credits. It is also called the second book of entry.