Accounting Education (Introduction of Tally)

Introduction of Tally 7.2

     Tally is popularly known as an accounting software for small and medium businesses. It does all the functions of accounting that a particularly mid sized business. Although it has many more core features that a business requires but its hold in accounting is truly commendable. Therefore it is known more for accounting rather than any other of its features. Tally is versatile and massive software package. It is used by various types of trade and industry. Tally Software business was set up in 1986 by late S.S. Goenka, who was the founder .  Tally is user friendly software used to solve all the complicated accounting structure. Bharat Goenkar is the original architect and programmer of the Tally Accounting systems and also developer of the “No-Code” concepts of accounting entities. Tally is a globally recognized name with 2 million users in over 90 countries experiencing the “Power of Simplicity”. This value is reflected in innovative, uncomplicated and customer-centric approach. Tally recognizes its own format in ASCII (American Standard Code for Information Interchange) from which data can be imported into Tally. To export your database file application to tally, you have to export data in tally acceptable format in ASCII, HTML, SDF, XML. The milestone statement of the Tally division is “Continuously doing the right thing.

TALLY USER CLASSIFICATION:- 

Tally 7.2 provides you with two specific classification Licensing. They are 

• Tally Silver for Single –User 

• Tally Gold for Multi-User

TALLY SILVER FOR SINGLE-USER

 The single-user Licensing allows the consumption of Tally on only one computer with an option of activating it online or offline. However, you can use the same Tally license on another computer, by granting the license activated on the first and reactivating it on the other. If you are an Offline user, you can take a request file to a computer, which has Internet connectivity and activate your copy of Tally easily

TALLY GOLD FOR MULTI-USER 

The multi-user Licensing feature facilitates the use of Tally on any number of computers connected to a local area network (LAN) with a provision of activating the license online or offline. However, the method of activation is no different from the one followed in Single User licensing system. After the successful installation of multi-user license on the License server, you can have Tally start when Windows starts and run as a service in the background. The License clients may install and use Tally later on.

Reconciliation of Bank accounts

Tally provides the user a facility to reconcile bank accounts with his bank passbook statement and hence providing the user with information regarding transactions, which haven't been cleared as yet by the bank. For bank reconciliation follow the procedure: Firstly, while creating “Bank Account” Ledger, specify ‘Effective date of reconciliation' (i.e the date from which the user wants to reconcile his bank accounts). Then, Select Display à Account Books à Bank Book à Select the particular ‘Bank’ a Select month à Press F5 (Reconcile). Now enter the date, on which a particular transaction has been cleared. Tally now provides information of balances as per company Books as well as Bank pass book/statement.

Zero Valued Entries in Vouchers 

To use zero values in vouchers, activate the feature in F11:Company Features.

There is usually no point in having a voucher that is totally without value.

However, in some situations, zero values are required, for example,

1. One of the entries may not have a value but yet needs to be shown in the records. Example: Zero-rated VAT or Exempt from Tax Account. You are permitted to make such an entry. The Exempt Ledger account can be viewed for all Exempt Sales.
2. Zero valued vouchers are possible for sales and purchase vouchers as these permit invoicing for free samples. A whole voucher could be of zero value in only sales and purchase vouchers but this is not possible in receipt, payment vouchers and journal vouchers. 

How Can Operate the Tally (For the example Tally 7.2 ) 

1- First of all u must create company in Tally, How will create:-

Gateway of tally & select create company & fill all information of company like company name, address, pin code, and Financial years, 


What is the Financial Year & Assessment Years:-

Financial Years means in the income tax language. The name is intuitive. What this indicates is the year for which your financial information gets reported to the government. Not just individuals, any assessee will have to report income for a financial year.In India, the financial year starts from April 1st and ends on March 31st of year next 

Assessment Years and Financial Years :-

Dates	Financial Year	Assessment Year
1 April 2013 to 31 March 2014	2013-14	2014-15
1 April 2014 to 31 March 2015	2014-15	2015-16
1 April 2015 to 31 March 2016	2015-16	2016-17

                                                  

1. Select Create Company 

• After filling all information of company details must exit from company Creation, save by Enter or direct Ctrl+A.

(Direct save & Exit by Key Ctrl+A)

(Direct save & Exit by Enter Key)

2- How will make entry in tally:-

Suppose Ram (Employee of ABCD Pvt. Ltd ) purchased 40 rim papers Worth Rs.5000/- by Cash & Pay to M/s XYZ Pvt. Ltd (Supplier Raw Materiel to ABCD Pvt. Ltd.) Rs.25,000/- by Cheque.


Ledger Creation:-

Tally maintains details of all ledgers that are defined by the user. You can define your chart of accounts that is maintain groups, ledger etc. Ledger reports can be used for scrutiny of accounts. Most accounting systems across the globe follow the concept of separate Personal and Nominal accounts. Tally follows the concept of single ledger systems, which includes both Personal and Nominal accounts

• Gateway of Tally-->Account Info.-->Ledgers--> Create (Single Ledgers).
• Use Multiple Ledger for creating more ledger under with signal group.

           1- Name Box : Enter the Name of Ledgers -  Alias is used for shorts Name.
           2- Select the group under which the ledger will be created.
           3- Enter the Opening Balance

Voucher Information :-

• Gateway of tally --> Accounting Voucher than Enter (Also we can open direct from Gateway of tally and Press V Key (V for Van)).

The shortcut keys (for Voucher Entry Mode) available in Tally are listed in the below:

• F4          Contra Voucher
• F5          Payment Voucher
• F6          Receipt Voucher
• F7          Journal Voucher
• F8          Sale Invoice
• F9          Purchase Invoice

Makes the Entry:-
      Pay to M/s XYZ Pvt. Ltd (Supplier Raw Materiel to ABCD Pvt. Ltd.) Rs.25,000/- by Cheque.

                                              M/s XYZ Pvt. Ltd                    25,000/-                         Dr.
                                              PNB Bank                                    25000/-                     Cr.

     Ram (Employee of ABCD Pvt. Ltd ) purchased 40 rim papers Worth Rs.5000/- by Cash
  
                                             Printing & Stationery (Rim Papers)    5000/-                          Dr.
                                             Cash                                                                 5000/-               Cr.

       

Buttons in a Typical Voucher Entry screen

F2:                        Chg Date. Use this button to change the date of the voucher.

F3:                        Chg Cmp. This would allow you to switch to another loaded company and enter a                                        voucher in it. Therefore, you can, almost simultaneously enter vouchers for more than one company.

Accounting Vouchers

F4:                          Contra Voucher

F5:                          Payment Voucher

F6:                          Receipt Voucher

F7:                           Journal. This is split into Journal, Debit Notes and Credit Notes

F8:                          Sales

F9:                          Purchase

F10:                        Memos

F7:                          Stock Journal

F10:                        Phys.Stock. This allows recording of physical stock in hand as distinct from computed                                   stock figures.

Other Buttons

As Invoice.              Available only in the sales voucher screen.

Post Dated.             To mark the current voucher post dated.

Optional.                 To mark the current voucher optional. Toggles with Regular

F11:                        Features

F12:                        Configure