Tally Accounting Ledgers

Ledgers are the actual account heads to which a transaction is identified. Ledgers are very important


for Voucher entries. In Tally, Ledgers are allocated to within Groups for better control of the

Accounts.

As you create a Company, two Ledger Accounts Cash and Profit and Loss A/c are created by default.

You cannot create another Profit and Loss A/c but any number of Cash accounts may be created.

Note :--

• Only the authorized users can alter Ledgers.

• One can not alter :
o Parent of Ledger under the Group Cash-in-hand or Bank Account if there are entries in


that account.

o Parent of a Ledger under Purchase or Sales Account or Sundry Debtors or Creditors if

there are entries in these accounts.

o Closing Balance of a Ledger Account. But this can be altered for account under the Group

‘Stock-in-hand’.

Cost Categories and Cost Centres

Centres

It is a unit of an organization to which transactions (usually revenue) are allocated. We can have the

details of all the transactions from a Centre. The ledger account shows only the nature of a

transaction, it does not give any idea of the unit or organization involved though one may have some

idea about it from Narration. The centers are of the following two types:

Cost Centre: When only costs or expenses are allocated to these centers then they are termed as Cost

Centres.

Profit Centre: When income is also allocated to these centres, then they are termed as Profit Centres.

Cost Categories : It allows allocation of a transaction to several sets of Cost Centres (parallel

allocation).

Note : -- The concept of Cost Centres and Cost Categories is similar to Ledgers and Groups

respectively. By default Tally maintains a Cost Category as ‘Primary’.

Vouchers In Tally

A voucher is the basic recording document. Vouchers are used for recording day-to-day transactions.

Tally has several Pre-Defined Vouchers with different formats, for different types of transactions.

You have the facility to even modify the existing formats as per your need. Vouchers can be created

only in Single mode.

Pre-Defined Vouchers

Contra Voucher : This Voucher is used for fund transfer between Cash and Bank accounts only.

Like Fund transfer from one Bank / Cash account, to another Bank / Cash account cash deposits /

withdrawals into / from Bank. Follow the steps to get this voucher displayed on your desktop:

Gateway of Tally
Voucher Entry
Click on the F4 : Contra button on the Button Panel to have

the Contra Voucher creation screen.

Purchases

We have following three types of Vouchers for purchase.

1. Purchase Voucher : This Voucher records all entries relates to purchases. If inventory values are

affected for purchase accounts in case of Acct-with-Inventory companies, item details must be

given. Perform the following steps to have this Voucher on your desktop:

Gateway of Tally
Voucher Entry
Click on the F9: Purchase button on the Button. Panel to
get the Purchase Voucher creation screen.This voucher is used to place purchase orders of the


goods to the suppliers. This voucher is for outward return of rejected goods. The rejected goods

are sent back to the supplier.

Sales

For sales, we have following types of Vouchers.

1. Sales Voucher : This voucher records all entries related to sales. You need to enter the item

details if inventory value gets affected due to sales. It is very useful when sale entry is not made

through Invoice. Perform the following steps to have this Voucher on your desktop:

Gateway of Tally
Voucher Entry
Click on the F8 : Sales button on the Bottom panel to get

the Sales Voucher creation screen. This voucher is used for recording orders for supply of goods

or services. It is used for making customer’s Invoices. This is return inward of the sold goods by

the customers.

Payment Voucher

This voucher records all the payments made through Bank and Cash. Perform the following steps to

have Payment Voucher creation screen:

Gateway of Tally
Voucher Entry
Click on the F5: Payment button present on the Button Panel

to have the Payment Voucher Creation screen.

Receipt Voucher

The purpose of this voucher is to record all receipts into bank or cash accounts. Perform the following

steps to have Receipt Voucher creation screen:

Gateway of Tally
Voucher Entry
Click on the F6:Receipt button on the Button Panel to have

the Receipt Voucher Creation screen.

Journal Voucher

These are for rectification / adjustment entries.

Invoke the Voucher Features screen by clicking on the F11:Features button on the Button Panel. In

the Voucher Features screen, activate the field Use Debit / Credit Notes? By typing Yes for it.

Journal Vouchers are of three types:

i. Journal

ii. Credit Note Voucher

iii. Debit Note Voucher

i. Journal : It is for adjustments between any two ledgers. No outside parties, like Debtor,

Creditor, Branches / Division are involved. Perform the following steps to have this Voucher on

your desktop:

Gateway of Tally
Voucher Entry
Click on F7:Journal button on Button Panel. A menu

with three options Journal, Credit Note and Debit Note, pops-up. Select Jounal option by

highlighting it and pressing the Enter key.

ii. Credit Note Voucher : This note is useful in case of return of a part of goods by the

customer due to incorrect supply or due to overcharging. Perform the following steps to have this
Voucher creation screen:


Gateway of Tally
Voucher Entry
Click on the F7:Journal button on the Button Panel. A

menu with three options Journal, Credit Note and Debit Note pops up. Select Credit note option

by highlighting it and pressing thee Enter key.

iii. Debit Note Voucher : This note is raised in case of Return Outward (Purchase Return) of

damaged goods to the supplier or in case of under-charging a customer.

Memo Voucher

As the name implies, it is a Non-Accounting voucher whose entries do not affect your accounts at all.

The entries in this voucher are not posted into ledgers, instead they are stored in a separate Memo

Register. A Memo Voucher can be converted into a regular voucher, for inclusion in your books of

accounts. Perform the following steps to have this Voucher creation screen on your desktop:

Gateway of Tally
Voucher Entry
Click on the F10:Memos button on the Button Panel.

The Memo Vouchers are of two types:

i. Memorandum Voucher: This type of memo Voucher can be used in many situations such

as:

a. Suspense Payments: Suppose an employee takes an advance for his traveling

expenses. Until and unless the expenses are incurred, the actual expenditure details

cannot be worked out. A Memo Voucher can be entered for advance and can be

entered for advance and can be turned to Payment Voucher after receiving the details

of the expenditure incurred.

b. Vouchers are not verified at the time of entry : At times, you may not understand the

details in a Voucher. You can enter a Memo Voucher under such conditions, which

can be amended after receiving the details.

c. Items given on approval : Memo Vouchers can be entered for items, which are

approved. This Voucher may be amended into a proper Sales Voucher depending upon

the outcome.

d. Reminder service: Memo Vouchers may be entered for future transactions, such as

Dates of Insurance Premiums, Tax due, Installment Payments, Post-Dated cheques.

Tally may be set to remind you a date before the due date of these transactions.