F9 : Inv Rep : Allows you to directly invoke Inventory Reports menu without going back to
the Gateway of Tally screen.
F10:Acc Rep : Allows you to directly invoke Accounting Reports menu without going back to
Gateway of Tally screen.
To get the Closing Stock in the balance Sheet and the Profit and Loss Statement, activate
Integrate Accounts & Inventory? Option in F11 : Features.
F12 : Configure : Allows you to configure your Balance Sheet. Fields in the Balance Sheet
Configuration screen are explained as follows :
i. Show Vertical balance Sheet? : All Multi-column reports of the Balance Sheet are
shown in a vertical layout. You can select Y or N as required.
ii. Profit or Loss both as Liability? Select Yes or No.
iii. Show Percentages? : To see the figures in Balance Sheet along with break-up with
respect to Capita A/C.
iv. Show Working Capital Figures? To have working capital in the Balance Sheet of
Current Assets and Current Liabilities.
v. Method of showing Balance Sheet? By default, the Balance Sheet has horizontal
layout with Liabilities on the left side and Assets on the right side. A window, pops-up with
options to change the default settings of the Assets and Liabilities side in the Balance Sheet.
vi. Appearance of Names : A menu pops up with various styles for the display of Name.
vii. Scale Factor for values? For rounding the figures in the Balance Sheet to the nearest
scale factor.
F12: Range : This button is used to display information based on some search condition. You
can combine the search using the operators ‘OR’ and ‘AND’. You get the Range of information
in Report menu, by pressing Alt and F12 keys together or by clicking on this button. Suppose,
you frame a query for displaying Ledgers having Opening Balance as Non-Zero OR Groups
having Total Debit Transactions greater than 50,000. Now, to get a Balance Sheet Satisfying
the above query, proceed as follows:
Step 1: Select the option Ledgers from the Type of Info sub-menu in the Range of
Information in Report menu and press Enter. A sub-menu pops up
Step 2: Select the option Opening Balance from the sub-menu, another sub-menu Range of
Info. Pops-up
Step 3: Select the option as NON-ZERO from the Range of Info. Sub-menu, instantly you
get a Conditional sub-menu
Step 4: Select the Or option in the Condition menu, and press Enter. The Type of Info. Submenu
pops-up.
Step 5: Select the Group option in the Type of Info. Sub-menu. A sub-menu named
Particulars gets displayed on the screen.
Step 6: Select the Total Debit Transaction option in the Particulars pop-up list. Another submenu
Range of Info. Gets displayed.
Step 7: Select the greater than option in the sub-menu.
Step 8: Now type 50000 in the last field.
Step 9: Finally, select End of List option to end the search. You have the Balance Sheet
based on your query.
• F12: Value : You can specify the Vouchers to be used in calculation by selecting this button.
You get the Value to Calculate in Report menu by clicking on this button or by pressing Ctrl
and F12 keys simultaneously.
Now, let us make a Balance Sheet on the following Query.
Calculate balances using Vouchers having date equal to ‘23-04-2001’ OR Billed Quantity greater
than 40,000. To get a Balance Sheet satisfying this Query, proceed as follows:
Step 1: Click on the F12: Value button and select the Date option in the Particulars sub-menu, you
get a screen once you press the Enter key.
Step 2: From the Range of Info. Menu selects the equal to option. You get another sub-menu
displayed on your screen.
Step 3: Type the date 23-04-2001 and press Enter.
A condition sub-menu gets displayed
Step 4: Select the Or option from the condition sub-menu, to combine the search condition. A
particulars sub-menu pops-up.
Step 5: Select the Billed Qty option from the Particulars pop-up list. A range of Info. Sub-menu
gets displayed
Step 6: Select the option greater than from the Range of Info. Sub-menu and type the value as
40,000.
Step 7: Select the End of List option to end the search. You get the desired Balance Sheet
satisfying the your query.
Thursday, October 29, 2009
Tally Function Keys for Vouchers
You can mark Vouchers as Post-dated while entering them. Tally will include the post-dated
vouchers only on the due date. The Post-Dated button on the Button Panel toggles between Post-dated
and Current options. Suppose you pay installments for and item in the last week of every month. You
can set-up the payments in advance, which will be included in the books, by marking them regular on
the due date.
Purchase Order
A Purchase Order can be easily generated by Tally and the same can be directly sent to the Supplier.
The Order position can be seen in the Stock Summary. The Purchase Order Book lists all the
Purchase Orders placed and the Sales Order Book lists all the Sales Orders received.
Balance Sheet
It is a statement of Assets and Liabilities. You can view the Balance Sheet by pressing the alphabet B
on the Gateway of Tally screen:
Gateway of TallyBalance Sheet
Configuring Balance Sheet
You can even change the configuration of the Balance Sheet by using the buttons on the Button
Panel. The buttons are discussed below:
F1:Detailed : To have the Closing Balance of the Sub-Groups or Leders under each Primary
Group. This gives you the break-up of the Grouped figures in the Balance Sheet. This button
toggles between F1:Detailed and F1:Condensed.
F7:Valuation : To change the Valuation method for Closing Stock. This button will be enabled
only if you have activated the option Integrate Accounts & Inventory? In F11: Features menu.
New Column : It allows you to add new columns to the Balance Sheet of the active
Company. You can get the Balance Sheet of another active Company or the same Company
for different periods in this new column.
• Alter Column : To alter the details (Period, Stock Valuation Method, etc.),place the cursor in
the column to be altered and press the Alt and A keys together or click on this button.
• Del Column : To delete the columns added to the Balance Sheet, just place the cursor in the
column to be deleted and press the Alt and D keys together or click on this button.
• Auto Column : This button allows you to add multiple columns to the Balance Sheet. The
New Column button allows you to add only one column at a time, but this button allows you
to add as many columns as you wish in one go. When you click on this button, a sub-menu of
Column details pops-up prompting you to specify the required details.
The various options given in the Column Details sub-menu are described as follows:
i. Company : This option is very helpful for comparative analysis of all the active
companies. It gives you their Balance Sheet’s in different columns.
ii. Daily : To get the Balance Sheet on a daily basis.
iii. Half Yearly : To get the Balance Sheet on a half yearly basis.
iv. Month-wise : To get the Balance Sheet for every month.
v. Quarterly : To get the Balance Sheet quarterly.
vi. Weekly : To get the Balance Sheet weekly.
vii. Yearly : To get the Balance Sheet yearly.
vouchers only on the due date. The Post-Dated button on the Button Panel toggles between Post-dated
and Current options. Suppose you pay installments for and item in the last week of every month. You
can set-up the payments in advance, which will be included in the books, by marking them regular on
the due date.
Purchase Order
A Purchase Order can be easily generated by Tally and the same can be directly sent to the Supplier.
The Order position can be seen in the Stock Summary. The Purchase Order Book lists all the
Purchase Orders placed and the Sales Order Book lists all the Sales Orders received.
Balance Sheet
It is a statement of Assets and Liabilities. You can view the Balance Sheet by pressing the alphabet B
on the Gateway of Tally screen:
Gateway of TallyBalance Sheet
Configuring Balance Sheet
You can even change the configuration of the Balance Sheet by using the buttons on the Button
Panel. The buttons are discussed below:
F1:Detailed : To have the Closing Balance of the Sub-Groups or Leders under each Primary
Group. This gives you the break-up of the Grouped figures in the Balance Sheet. This button
toggles between F1:Detailed and F1:Condensed.
F7:Valuation : To change the Valuation method for Closing Stock. This button will be enabled
only if you have activated the option Integrate Accounts & Inventory? In F11: Features menu.
New Column : It allows you to add new columns to the Balance Sheet of the active
Company. You can get the Balance Sheet of another active Company or the same Company
for different periods in this new column.
• Alter Column : To alter the details (Period, Stock Valuation Method, etc.),place the cursor in
the column to be altered and press the Alt and A keys together or click on this button.
• Del Column : To delete the columns added to the Balance Sheet, just place the cursor in the
column to be deleted and press the Alt and D keys together or click on this button.
• Auto Column : This button allows you to add multiple columns to the Balance Sheet. The
New Column button allows you to add only one column at a time, but this button allows you
to add as many columns as you wish in one go. When you click on this button, a sub-menu of
Column details pops-up prompting you to specify the required details.
The various options given in the Column Details sub-menu are described as follows:
i. Company : This option is very helpful for comparative analysis of all the active
companies. It gives you their Balance Sheet’s in different columns.
ii. Daily : To get the Balance Sheet on a daily basis.
iii. Half Yearly : To get the Balance Sheet on a half yearly basis.
iv. Month-wise : To get the Balance Sheet for every month.
v. Quarterly : To get the Balance Sheet quarterly.
vi. Weekly : To get the Balance Sheet weekly.
vii. Yearly : To get the Balance Sheet yearly.
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 TallyVoucher 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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.
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 TallyVoucher 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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 TallyVoucher EntryClick 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.
Groups in Tally
Groups
In the modern way of accounting, all financial entries are performed using Leders or account heads.
Tally follows the ‘Single Ledger’ concept of accounting. It is advisable to Group / Classify ledger
information based on their functions. Groups are helpful in classifying and identifying account heads
based on their nature. Grouping helps in presenting summarized information. Regrouping of accounts
is also permitted by Tally. The single ledger concept eliminates the need for sub ledgers and
corresponding control accounts in General Ledger. Traditionally, grouping of accounts is a postaccounting
activity, but it leads to delayed reports that are not available at hand when required. At the
highest level of grouping, accounts are classified into Assets, Liabilities, Income and Expenses.
Groups by Default (Pre-defined Groups) : Tally provides you with a number of pre-defined
Groups to save you from unnecessary burden of creating frequently used Groups. In these Groups,
some are Primary and some are Subgroups. Subgroup is a part of the main group.
Alias names for the Groups are shown inside a square bracket.
Detailed Description of Pre-Defined Groups
Alias names for the Groups are shown inside a square bracket.
Detailed Description of Pre-Defined Groups
1) Capital Assets It holds Capital and Reserves of the company. For example, Proprietor’s or
Owner’s Capital Account, Partners Capital Account, Share Capital.
a) Reserves and Surplus [Retained Earnings] : Related to Reserves. Retained Earnings is the
alias name for Reserves and Surplus, e.g. Capital Reserve, General Reserve, Reserve for
Depreciation.
2) Current Assets : It consists of 6 subgroups. If all the assets of the company could not be
allocated in any of these subgroups then the primary group ‘Current Assets’ can accommodate it.
a) Bank Accounts : It holds Current Savings, Short-Term Deposits, etc.
b) Cash-in-Hand : This holds Ledger Account for Cash. More than one Cash Account can be
opened if needed, e.g. Petty Cash A/c.
c) Deposits (Asset) : It holds deposits like Fixed Deposits, Rental Deposits, Security Deposits,
etc. that is the deposits made by the Company (not received).
d) Loans & Advances (Assets) : It is for holding loans given by the company which are nontrading
in nature, e.g. Salary Advance, Advance for Purchase of Fixed Assets, etc.
e) Stock-in-Hand : It holds Opening and Closing Stock. It is a special Group. The balances
depend on the type of Inventory Management option selected while creating a company, e.g.
Raw Materials A/c, Work-in-Progress, Finished Goods, etc.
i) Integrated Accounts-cum-Inventory : Transactions in Inventory records are permitted
and the corresponding changes are reflected in the Balance Sheet as Closing Stock. You
just can not alter the Closing Stock balance directly.
ii) Non-integrated Accounts-cum-Inventory : No transaction permitted. It holds only the
Opening and Closing balances. The authorized users can directly alter closing balances as
no Vouchers can be passed for these accounts.
f) Sundry Debtors : It holds the accounts of the debtors, who owe money to the business.
3) Current Liabilities : It holds the Outstanding Liabilities, Statutory Liabilities and some other
minor liabilities. Liabilities such as PF, TDS, ESI also fall under this Group.
a) Duties and Taxes : it holds the accounts of trade duties, Excise, Local Sales Tax, Central
Sales Tax.
b) Provisions : This acts as a reserve like Provision for Depreciation, Provision for Taxation,
etc.
c) Sundry Creditors : It holds the account of the trade Creditors of the Company.
[One should not open the Supplier Account under Purchase Account Group, as Purchase A/c is a
Revenue A/c.]
4) Fixed Assets : It is a convenient place for holding the Fixed Assets of the company.
5) Investments : It holds the accounts of overall investments, like Bonds, Shares, Govt., Securities,
Long-Term Bank Deposits, etc.
6) Loans (Liability) : It keeps an account of the Loans taken by the Company.
a) Bank OD Accounts [Bank OCC Accounts] : Bank OCC is the alias name for Bank OD
Accounts. It holds Over Draft Account like Hypothecation Accounts, Bill Discounting
Account, etc. of the Bank.
b) Secured Loans : It holds the accounts of the loans taken by the company from Banks and
other Financial Bodies by mortgaging its Fixed Assets. It is a secured loan so it has to be
returned from the fixed asset of the company even if the company fails.
c) Unsecured Loans : This is an unconditional loan obtained from Partners / Directors or
outside parties.
7) Suspense Account :As the name implies, it is created when there is some discrepancy in the
Balance Sheet. It is a Balance Sheet item, e.g. Travelling Advance whose details will be known
only after the submission of TA bill.
8) Miscellaneous Expenses (Asset) : This is mainly for legal disclosure requirements, like
Schedule VI of Indian Companies Act. It is rarely used.
9) Branch / Divisions : It holds the accounts of all the Sister Concerns, Branches, Divisions,
Affiliation, etc. of the existing company.
10) Sales Account : It holds the different Sales Accounts. The Sales Account can be categorized as
Types of Sale (Domestic Sales, Export Sales) and the Tax slabs. To have an idea of net sales after
return, one can even open an account Sales Return under the Group Domestic Sales. [don’t open
Customers account under the Group Sales Account.]
11) Purchase Account : It holds the accounts related to purchase.
12) Direct Income [Income Direct] : It holds the account of the direct income like income due to
sales of goods. A Professional Service Company may like to open an account as Professional Fees
instead of Sales Account, under this Group.
13) Indirect Income [Income Indirect] : It holds the accounts of non-sale indirect income, like
income from Rent Received, Commissions Received, Interest Received, etc.
14) Direct Expenses [Expenses Direct] : It holds the direct trading expenses of the factory, like
Wages paid to Labours, Transportation, Electricity Bill.
15) Indirect Expenses [Expenses Indirect] : Expenses incurred in the administrative building, like
Salary paid to Staff, Maintenance of Vehicle, etc.
Tally automatically opens the Profit & Loss Account which is a reserved primary account. You may
use this account to pass adjustment entries through journal vouchers, e.g. transfer of profit or loss to
Capital or Reserve account.
In the modern way of accounting, all financial entries are performed using Leders or account heads.
Tally follows the ‘Single Ledger’ concept of accounting. It is advisable to Group / Classify ledger
information based on their functions. Groups are helpful in classifying and identifying account heads
based on their nature. Grouping helps in presenting summarized information. Regrouping of accounts
is also permitted by Tally. The single ledger concept eliminates the need for sub ledgers and
corresponding control accounts in General Ledger. Traditionally, grouping of accounts is a postaccounting
activity, but it leads to delayed reports that are not available at hand when required. At the
highest level of grouping, accounts are classified into Assets, Liabilities, Income and Expenses.
Groups by Default (Pre-defined Groups) : Tally provides you with a number of pre-defined
Groups to save you from unnecessary burden of creating frequently used Groups. In these Groups,
some are Primary and some are Subgroups. Subgroup is a part of the main group.
Predefined Groups
Predefined Groups
Alias names for the Groups are shown inside a square bracket.
Detailed Description of Pre-Defined Groups
| Capital in Nature | Revenue in Nature |
| 1. Capital Account | 1 Sales Account |
| i. Reserves and Surplus [Retained Earnings] | 2 Purchase Account |
a. Bank Accounts | |
b. Cash-in hand | |
c. Deposits (Asset) | |
d. Loans & Advances (Assets) | |
e. Stock-in-hand | |
f. Sundry Debtors | |
3 Current Liabilities | 3 Income Direct |
a. Duties and Taxes | |
b. Provisions | |
c. Sundry Creditors | |
4 Fixed Assets | 4 Indirect Income[ Income Indirect] |
5 Investments | 5 Direct Expenses[ Expenses Direct] |
6 Loans (Liability) | 6 Indirect Expenses [Expenses Indirect] |
a. Bank OD Accounts [Bank OCC Accounts] | |
b. Secured Loans | |
c. Unsecured Loans | |
7 Suspense Account | |
8 Miscellaneous Expenses (Asset) | |
9 Branch / Divisions |
Detailed Description of Pre-Defined Groups
1) Capital Assets It holds Capital and Reserves of the company. For example, Proprietor’s or
Owner’s Capital Account, Partners Capital Account, Share Capital.
a) Reserves and Surplus [Retained Earnings] : Related to Reserves. Retained Earnings is the
alias name for Reserves and Surplus, e.g. Capital Reserve, General Reserve, Reserve for
Depreciation.
2) Current Assets : It consists of 6 subgroups. If all the assets of the company could not be
allocated in any of these subgroups then the primary group ‘Current Assets’ can accommodate it.
a) Bank Accounts : It holds Current Savings, Short-Term Deposits, etc.
b) Cash-in-Hand : This holds Ledger Account for Cash. More than one Cash Account can be
opened if needed, e.g. Petty Cash A/c.
c) Deposits (Asset) : It holds deposits like Fixed Deposits, Rental Deposits, Security Deposits,
etc. that is the deposits made by the Company (not received).
d) Loans & Advances (Assets) : It is for holding loans given by the company which are nontrading
in nature, e.g. Salary Advance, Advance for Purchase of Fixed Assets, etc.
e) Stock-in-Hand : It holds Opening and Closing Stock. It is a special Group. The balances
depend on the type of Inventory Management option selected while creating a company, e.g.
Raw Materials A/c, Work-in-Progress, Finished Goods, etc.
i) Integrated Accounts-cum-Inventory : Transactions in Inventory records are permitted
and the corresponding changes are reflected in the Balance Sheet as Closing Stock. You
just can not alter the Closing Stock balance directly.
ii) Non-integrated Accounts-cum-Inventory : No transaction permitted. It holds only the
Opening and Closing balances. The authorized users can directly alter closing balances as
no Vouchers can be passed for these accounts.
f) Sundry Debtors : It holds the accounts of the debtors, who owe money to the business.
3) Current Liabilities : It holds the Outstanding Liabilities, Statutory Liabilities and some other
minor liabilities. Liabilities such as PF, TDS, ESI also fall under this Group.
a) Duties and Taxes : it holds the accounts of trade duties, Excise, Local Sales Tax, Central
Sales Tax.
b) Provisions : This acts as a reserve like Provision for Depreciation, Provision for Taxation,
etc.
c) Sundry Creditors : It holds the account of the trade Creditors of the Company.
[One should not open the Supplier Account under Purchase Account Group, as Purchase A/c is a
Revenue A/c.]
4) Fixed Assets : It is a convenient place for holding the Fixed Assets of the company.
5) Investments : It holds the accounts of overall investments, like Bonds, Shares, Govt., Securities,
Long-Term Bank Deposits, etc.
6) Loans (Liability) : It keeps an account of the Loans taken by the Company.
a) Bank OD Accounts [Bank OCC Accounts] : Bank OCC is the alias name for Bank OD
Accounts. It holds Over Draft Account like Hypothecation Accounts, Bill Discounting
Account, etc. of the Bank.
b) Secured Loans : It holds the accounts of the loans taken by the company from Banks and
other Financial Bodies by mortgaging its Fixed Assets. It is a secured loan so it has to be
returned from the fixed asset of the company even if the company fails.
c) Unsecured Loans : This is an unconditional loan obtained from Partners / Directors or
outside parties.
7) Suspense Account :As the name implies, it is created when there is some discrepancy in the
Balance Sheet. It is a Balance Sheet item, e.g. Travelling Advance whose details will be known
only after the submission of TA bill.
8) Miscellaneous Expenses (Asset) : This is mainly for legal disclosure requirements, like
Schedule VI of Indian Companies Act. It is rarely used.
9) Branch / Divisions : It holds the accounts of all the Sister Concerns, Branches, Divisions,
Affiliation, etc. of the existing company.
10) Sales Account : It holds the different Sales Accounts. The Sales Account can be categorized as
Types of Sale (Domestic Sales, Export Sales) and the Tax slabs. To have an idea of net sales after
return, one can even open an account Sales Return under the Group Domestic Sales. [don’t open
Customers account under the Group Sales Account.]
11) Purchase Account : It holds the accounts related to purchase.
12) Direct Income [Income Direct] : It holds the account of the direct income like income due to
sales of goods. A Professional Service Company may like to open an account as Professional Fees
instead of Sales Account, under this Group.
13) Indirect Income [Income Indirect] : It holds the accounts of non-sale indirect income, like
income from Rent Received, Commissions Received, Interest Received, etc.
14) Direct Expenses [Expenses Direct] : It holds the direct trading expenses of the factory, like
Wages paid to Labours, Transportation, Electricity Bill.
15) Indirect Expenses [Expenses Indirect] : Expenses incurred in the administrative building, like
Salary paid to Staff, Maintenance of Vehicle, etc.
Tally automatically opens the Profit & Loss Account which is a reserved primary account. You may
use this account to pass adjustment entries through journal vouchers, e.g. transfer of profit or loss to
Capital or Reserve account.
INTRODUCTION TO TALLY
Opening Screen of Tally
The opening screen of Tally is shown in Figure below. It contains the following components:
1. The top bar of the screen contains the product message and version, system date and time.
2. The middle bar of the screen is basically divided into two sections:
a) Left Hand Side: This portion contains the following information:
• Current company: It gives the information of the Companies that are already loaded or
selected.
• Current period: It is the Financial Year of the currently loaded company.
• List of selected companies: Displays all the active Companies. The currently selected
company will be in bold letters
• Date of last entry Displays last voucher entry date.
Right hand side displays the pop-up menu, from where the instructions to Tally are given.
Button Panel: the buttons on the panel help you perform various functions. These buttons can be
selected simply by clicking on them. The functions of these buttons are discussed later.
Direct Command: Press Ctrl and N keys simultaneously or click on this area to activate it. Even if
the mouse does not work, you can type commands in plain English in this area and execute them.
Note on the Buttons on the Button Panel
The underlined and non-underlined buttons work differently. You will have to press Alt key and the
corresponding Function key simultaneously if an option is underlined. You can even invoke a button
just by placing the mouse-pointer on it and clicking the left mouse-button.
Accounts Configuration
Features and Configuration
We notice the buttons F11 & F12 in almost every screen, which permits to activate / de-activate
options.
Tally controls operational Features through F11: Features button and allows to configure settings
through F12: Configure button.
F11: Features button appear almost in every screen upon selecting a company. You get same option
irrespective of screen where you launch it. Features settings are Company specific. You can activate
an option for one company and de-activate the same for another company. F12 : Configure is contextsensitive.
You get different options on launching this button at different screens. Configuration option
relevant to the specific screen would appear. The settings you make through
F12:Configure is global (and not company specific), change made becomes effective for all the
companies you work with Tally.
Note :Some features like multi-currency and multi-locations, once enabled and used, cannot be
modified. the two features. Cost centers and Bill-wise details – must be activated in features screen to
be available for ledger accounts. Feature changes (F11:Features)affect only the current company but
configuration changes (F12: Configure) affect all the open companies.
Opening Screen of Tally
The opening screen of Tally is shown in Figure below. It contains the following components:
1. The top bar of the screen contains the product message and version, system date and time.
2. The middle bar of the screen is basically divided into two sections:
a) Left Hand Side: This portion contains the following information:
• Current company: It gives the information of the Companies that are already loaded or
selected.
• Current period: It is the Financial Year of the currently loaded company.
• List of selected companies: Displays all the active Companies. The currently selected
company will be in bold letters
• Date of last entry Displays last voucher entry date.
Right hand side displays the pop-up menu, from where the instructions to Tally are given.
Button Panel: the buttons on the panel help you perform various functions. These buttons can be
selected simply by clicking on them. The functions of these buttons are discussed later.
Direct Command: Press Ctrl and N keys simultaneously or click on this area to activate it. Even if
the mouse does not work, you can type commands in plain English in this area and execute them.
Note on the Buttons on the Button Panel
The underlined and non-underlined buttons work differently. You will have to press Alt key and the
corresponding Function key simultaneously if an option is underlined. You can even invoke a button
just by placing the mouse-pointer on it and clicking the left mouse-button.
Accounts Configuration
Features and Configuration
We notice the buttons F11 & F12 in almost every screen, which permits to activate / de-activate
options.
Tally controls operational Features through F11: Features button and allows to configure settings
through F12: Configure button.
F11: Features button appear almost in every screen upon selecting a company. You get same option
irrespective of screen where you launch it. Features settings are Company specific. You can activate
an option for one company and de-activate the same for another company. F12 : Configure is contextsensitive.
You get different options on launching this button at different screens. Configuration option
relevant to the specific screen would appear. The settings you make through
F12:Configure is global (and not company specific), change made becomes effective for all the
companies you work with Tally.
Note :Some features like multi-currency and multi-locations, once enabled and used, cannot be
modified. the two features. Cost centers and Bill-wise details – must be activated in features screen to
be available for ledger accounts. Feature changes (F11:Features)affect only the current company but
configuration changes (F12: Configure) affect all the open companies.
Why Tally is Popular?
Welcome to TALLY, a friendly business accounting software. Tally is a popular software because of
its following user-friendly features:
1. It is user-friendly and can be used, even by a novice, in the field of computers and Accounting,
thus giving you full control over every aspect of your business accounting.
2. You don’t have to wait for days on end to have a quick look at the financial status of your
Business/Firm. Tally provides you instant results.
3. You don’t have to memorise Codes for your accounts, Debtors and Creditors. Leave this to
Tally.
4. it is flexible and can be customized to suit your daily work schedules and needs, like
customizing Vouchers, Final Reports etc.
5. It is highly secured against data tampering. Different labels of security designed with different
authorities for data access and usage.
6. It has interactive online Help to bail you out from any confusion.
Requirements for installing TALLY as 6.3
• Hardware Requirements: The following minimum configuration is required by TALLY for
efficient response:
• Processor: IBM PC compatible computers with CPU’s of the Intel family 80586 or better.
• RAM or Main Memory: 32 MB suggested for Windows 98 and 64 MB for windows 2000 as
minimum.
• Disk Storage: At least 10 MB of free hard disk storage space. Tally programs require less than 3
Mb. Approximately 1 MB of space is required for every 1000 transaction.
• Installation Drive: CD ROM drive.
• Operating System Software: Tally works on all major PC operating platforms, viz. Microsoft
Windows 95 and above. In fact, the Tally pack contains the versions for Windows 95/98/ME and
Windows NT/2000 Operating Systems. Tally is able to auto-detect the operating system platform.
In a network environment, your data could reside on any file server including Windows 98/ME,
NT/2000, Netware, Unix and Linux servers.
The network protocol supported is primarily TCP/IP. Other protocols could be used with TCP/IP
running on top.
its following user-friendly features:
1. It is user-friendly and can be used, even by a novice, in the field of computers and Accounting,
thus giving you full control over every aspect of your business accounting.
2. You don’t have to wait for days on end to have a quick look at the financial status of your
Business/Firm. Tally provides you instant results.
3. You don’t have to memorise Codes for your accounts, Debtors and Creditors. Leave this to
Tally.
4. it is flexible and can be customized to suit your daily work schedules and needs, like
customizing Vouchers, Final Reports etc.
5. It is highly secured against data tampering. Different labels of security designed with different
authorities for data access and usage.
6. It has interactive online Help to bail you out from any confusion.
Requirements for installing TALLY as 6.3
• Hardware Requirements: The following minimum configuration is required by TALLY for
efficient response:
• Processor: IBM PC compatible computers with CPU’s of the Intel family 80586 or better.
• RAM or Main Memory: 32 MB suggested for Windows 98 and 64 MB for windows 2000 as
minimum.
• Disk Storage: At least 10 MB of free hard disk storage space. Tally programs require less than 3
Mb. Approximately 1 MB of space is required for every 1000 transaction.
• Installation Drive: CD ROM drive.
• Operating System Software: Tally works on all major PC operating platforms, viz. Microsoft
Windows 95 and above. In fact, the Tally pack contains the versions for Windows 95/98/ME and
Windows NT/2000 Operating Systems. Tally is able to auto-detect the operating system platform.
In a network environment, your data could reside on any file server including Windows 98/ME,
NT/2000, Netware, Unix and Linux servers.
The network protocol supported is primarily TCP/IP. Other protocols could be used with TCP/IP
running on top.
Manual Book-keeping Vs Computerized Accounting
Manual Book-Keeping
In manual Book-Keeping, you first create ledgers; carry forward previous year’s closing balance as
Opening Balance for the current year. Record cash transaction in Cash Book and non-cash
transactions in Journal (or subsidiary books), then amounts from Cash Book and Journal are posted
into respective ledgers.
Whenever, you need to know balance of any ledger, you are required to total amounts in both Debit
and Credit columns of the ledger and compute the difference to derive the closing balance for the
Ledger as on that date. To prepare Final Accounts (Profit & Loss A/c, Balance Sheet) for any period,
you have to compute closing balance of ledgers for the period and then prepare a Trial Balance. From
Trial Balance, you post Nominal accounts to Profit & Loss A/c, Real & Personal ledgers to Balance
Sheet.
Next year, when you create New Year books, again you create all the ledgers afresh and enter
opening balance (a sheer repetition and monotonous job.)
Since Posting, casting, totaling and balancing – all are done manually, this leaves enough room for
errors. At the time of finalization of accounts, it’s a common scenario that Accountants are burning
mid-night oil to tally Trial balance. And even after spending few sleepless nights, if accounts do not
match, they are forced to leave an entry in Final Accounts Difference in Trial Balance having no
explanation.
Computerized Accounting
When you opt for Computerized Accounting first time, you have to create all the ledgers and enter
opening balance (in subsequent years you need not to create the Ledgers again or carry forward
previous year’s closing balance as opening balance since it would be carried forward on it’s own by
the software) and classify at this stage. Thereafter, you enter all transactions in Vouchers (different
types of Vouchers to record diverse nature of transactions). That’s all you have to do and everything
else (like posting to Ledger, preparation of Trial Balance, Final Accounts etc.) is done by the
software.
In computerized accounting, while creating new ledger, you are required to classify it suitably under
relevant accounts Group to tell the software the nature of the Ledger and where it will appear. This is
necessary at this stage as all Reports are prepared on-line the moment you enter transactions
(Vouchers). In case of Manual Book-Keeping, this classification is done at later stage (after
preparation of Trial Balance, Nominal Accounts are transferred to Profit & Loss Account through
Journal Entry, Real & Personal Accounts are posted to Balance Sheet under proper heading i.e.
Groups).
Year-end Entries
In manual book-keeping, you are required to pass Journal entries to transfer closing balance of all
nominal accounts to prepare Profit & Loss Accounts, which you are not required to do in case of
computerized accounting. The software does this job on it’s own. In next year, only closing balance
of Real and Personal accounts are carried and nominal accounts balance is zeroed by the software (for
which you pass Journal entries in manual book-keeping). The advantages are that your accounts are
always open and any modification is instantly reflected.
In manual Book-Keeping, you first create ledgers; carry forward previous year’s closing balance as
Opening Balance for the current year. Record cash transaction in Cash Book and non-cash
transactions in Journal (or subsidiary books), then amounts from Cash Book and Journal are posted
into respective ledgers.
Whenever, you need to know balance of any ledger, you are required to total amounts in both Debit
and Credit columns of the ledger and compute the difference to derive the closing balance for the
Ledger as on that date. To prepare Final Accounts (Profit & Loss A/c, Balance Sheet) for any period,
you have to compute closing balance of ledgers for the period and then prepare a Trial Balance. From
Trial Balance, you post Nominal accounts to Profit & Loss A/c, Real & Personal ledgers to Balance
Sheet.
Next year, when you create New Year books, again you create all the ledgers afresh and enter
opening balance (a sheer repetition and monotonous job.)
Since Posting, casting, totaling and balancing – all are done manually, this leaves enough room for
errors. At the time of finalization of accounts, it’s a common scenario that Accountants are burning
mid-night oil to tally Trial balance. And even after spending few sleepless nights, if accounts do not
match, they are forced to leave an entry in Final Accounts Difference in Trial Balance having no
explanation.
Computerized Accounting
When you opt for Computerized Accounting first time, you have to create all the ledgers and enter
opening balance (in subsequent years you need not to create the Ledgers again or carry forward
previous year’s closing balance as opening balance since it would be carried forward on it’s own by
the software) and classify at this stage. Thereafter, you enter all transactions in Vouchers (different
types of Vouchers to record diverse nature of transactions). That’s all you have to do and everything
else (like posting to Ledger, preparation of Trial Balance, Final Accounts etc.) is done by the
software.
In computerized accounting, while creating new ledger, you are required to classify it suitably under
relevant accounts Group to tell the software the nature of the Ledger and where it will appear. This is
necessary at this stage as all Reports are prepared on-line the moment you enter transactions
(Vouchers). In case of Manual Book-Keeping, this classification is done at later stage (after
preparation of Trial Balance, Nominal Accounts are transferred to Profit & Loss Account through
Journal Entry, Real & Personal Accounts are posted to Balance Sheet under proper heading i.e.
Groups).
Year-end Entries
In manual book-keeping, you are required to pass Journal entries to transfer closing balance of all
nominal accounts to prepare Profit & Loss Accounts, which you are not required to do in case of
computerized accounting. The software does this job on it’s own. In next year, only closing balance
of Real and Personal accounts are carried and nominal accounts balance is zeroed by the software (for
which you pass Journal entries in manual book-keeping). The advantages are that your accounts are
always open and any modification is instantly reflected.
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