Unitised Tally

8/3/2019 Unitised Tally

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Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for

private circulation only

1

Unit 1. IntroductionTally is an accounting software developed by Peutronics Private Ltd,

Bangalore.(Now Tally Solutions PVT Ltd.) It runs on very low hardware resources. It

had different versions such as 4.4, 5.3, 7.2, 8.2, and 9.3. Originally it was DOS based.

But with Tally version 5.4 onwards, it is Windows based.

Computerised AccountingComputerised accounting simplifies the accounting operations. Once a suitable

programme (accounting package) is installed the work of the accountant is reduced by agreat extent. Normally, the accounting work is reduced to entering the transactions and

creating the necessary accounts. All other works such as posting, balancing, preparation

of Trial Balance, Profit and Loss A/C, Balance Sheet etc will be done automatically by

the computer

Advantages of Computerised Accounting

1. Only voucher entry is required. Other accounting operations are done automatically.2. On entering the transaction, simultaneous posting, balancing etc take place. Even the

final account is get adjusted.

3. The final accounts are generated automatically4. Any time final accounts is possible. (After each entry, a new set of final ccounts can

be made available)

5. Normally annual/monthly budgets can be set.6. Reports are easily available.

7. Alteration is easy.

8. Highly flexible.

9. High level of arithmetical accuracy.

Accounting Softwares

The popular accounting softwares in India are:1. Tally

2. DacEasy

3. Tata EX.NGN

4. Wings5. Peach Tree

Features of Tally

1. No code -: For preparing accounts using Tally, no coding is required

2. Account Books-: All principal books of account such as Cash Book, journal, ledger,sales book, purchase book, debtors register, creditors register, debit note and credit

note registers, etc are maintained.3. Reports-: Tally provides principal accounting reports like trial balance. , profit and

loss statement, balance sheet, cash flow, funds flow, performance accounting and

ratios.4. Budgets-: Budgets facilitates setting of targets or limits.


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5. Cost Centres-: Cost Centres help in knowing results of different departments or Cost

Centres.6. Default Accounts-: Two ledger accounts i.e ; cash and profit and loss accounts are

given in default.

7. Creation of Accounts-: Any number of accounts can be created depending upon the

requirement of the organisation.8. Default Groups-: There is a set of predefined groups. Any number of groups or sub

groups can be created.

9. Closing of Accounts-: The accounts are closed automatically. No posting. Casting,Balancing are required.

10.Multiple Years-: Transactions of different accounting years can be entered

simultaneously.11.Unlimited Companies-: The accounts of many companies can be prepared at a time.

12.Online Nature-: When a voucher is entered the updated balance of the ledger account

and cost centre are displayed immediately.

13.Audit Trail-: Individual vouchers can be reached from any level at any time.

14.Change of Period-: Changes can be made in the accounting period at any time.15.Data Export-: Processed data can be exported to a single integrated SDF /ASCII

compatible data file.16.Any time Final Accounts-: As simultaneous posting is carried out final accounts can

be prepared at any time.

17.Voucher Numbering-: Voucher numbering is very flexible. Different numberingschemes may be given for each type of voucher.

18.Report Options-: For printing reports different options are available such as, choice of

printer, choice of page numbering, choice of printing ( 80 column and 132 column

stationery), undefined headings, varied styles (coverage and choice of format).

Steps involved in Preparing Accounts using Tally

1. Launching TallyInstallation of the software and activating it

2. Creation of Company Separate set of books are used for each firm or businessentity.

3. Creation of Groups and sub-groups Tally classifies the ledger accounts into

various groups and sub-groups.4. Creation of Ledger Accounts As in the case of manual accounting separate

ledger accounts are to be created for each type of transaction.

5. Voucher Entry It is the process of journalising. i.e entering the transactions inthe book of prime entry.

6. Getting Reports Reports include financial statements, group summaries, cashbook, Trial Balance and other such reports.

7. Making Analysis

Tally helps analysis of financial statements with the help ofratios, fund flow statement, cash flow statement etc

8. House KeepingIt is concerned with maintenance of data prepared under Tally.


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Unit 2. Starting TallyWhen Tally is launched, the Gateway of Tally screen appears which contain 5 major

areas, namelyProduct Info

Current status

Tally menuButton BarTally Calculator

Product InfoIt contains:

Copyright noticeVersion and release

System date

User version

User serial number

System timeCurrent StatusIt contains

Current period (to change current period, Click F2 or press Alt+F2)

Current date (to change current date, click F2 or press F2)

Active company

Selected company

Tally MenuIt contains three main menus and 12 sub-menus. It also contains the Quit option

Masters

Transactions and vouchers

Reports

Button BarIt shows several buttons according to the concerned screen.They provide quick and direct access to various options and tasks

They can be invoked:

By mouse

By Function Key

By Hot KeyTally Calculator

To activate the calculator, Press Ctrl+NTo switch to Work Area, Press Ctrl+M

For making calculations, type the arithmetic expression and press EnterTally calculator follows BDMAS rule


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Unit 3 Creation of CompanyThis unit describes how a company is created, altered and deleted.

Company means any entity for which separate books of accounts are maintained.

It can be sole trader firm, partnership firm, company or any such enterprise.

Create company option is available in the company info menu

Press Alt+F3 or Click on F3 in the button bar

Select Create Company option

Enter the following information

1. Name: Name is mandatory. The field accepts 51 characters. However, the

display width of the field is 20 characters.

2. Mailing Name: This is the name that will be printed on the externalreports.This field is optional.

3. Mailing address: This address will be printed on the external reports. The

address field is also optional.

4. Income Tax No: This is the Income Tax No. of the firm. Income tax no. isoptional

5. Local Sales Tax No: This the state sales tax No. (VAT). LST is also optional

6. Interstate Sales Tax No: This is for interstate transactions. IST No is alsooptional

7. Currency Symbol: It is the symbol of the currency in which the company

maintains its accounts.8. Maintain: There are three options, namely, Account only, Accounts with

inventory, Inventory only.

a. Accounts only: This option is suitable for firms which do not maintain

inventory. If closing stock is to be shown, it should be entered through thealteration mode.

b. Accounts with inventory: This option is suitable for firms which maintain

inventory. If this option is maintained, Inventory balance will be adjustedautomatically. (For this purpose, the units transacted also should be

entered during voucher entry).

c. Inventory only. This option is suitable for firms which do not want tomaintain full financial accounts, but only inventory only.

9. Financial Year from: Indicates the beginning of the financial year. Usually it

is 1st

April. But any date may be given.

10.Book Beginning from:It indicates the date from which transactions are

entered. Unless otherwise specified this is same as the date of starting thefinancial year

11.Use Security control: It is requird for protecting the data with the help of

passwords. It is a mandatory field. If it is responded yes we have to give thename of the administrator, password and Tally audit features.

12.Base currency symbol: Same as currency symbol

13.Formal name: Formal name of the currency14.Number of Decimal points: Number of decimal places required. Usually it is

two


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15.Show amounts in millions: For displaying the amounts in millions

16.Is symbol suffixed to amounts?: This is for displaying the amount togetherwith currency symbol.

17.Put a space between amount and symbol: To put a blank space between

currency symbol and amount.

Accept the creation and modificationsFor saving the screen use Ctrl+A

Selection of a Company

The Select mode will be active only if a company is created already. For selection,highlight Select in the Company info menu and press Enter. Then a list of

companies appears. Either type the name or select from the list by highlighting and

pressing Enter

Alteration of Company

Alteration means change in any information given in the company creation screen.

To alter, select F3 from thebutton bar or press Alt+F3. the select Alter option fromthe menu. If more than one company is created, select the required company from the

list of companies. Then make necessary corrections and save the alterations usingCtrl+A.

Shut Down CompanyShut a company means unloading a selected company from the RAM. For shutting

down an active company, go to company info menu using F3. Shutting down will not

delete the company.

Deletion of CompanyDeletion means completely removing a company along with all its contents

permanently. A deleted company cannot be revived back. The Delete process

consists of :

Select the company and note the code number of the company to be deleted.

Quit Tally and open My computer in the Desktop

Open Drive C and open the folder Tally

Open the folder Data

Select the company to be deleted.

Press Delete key and say yes to confirmation is sought.When the company is blank, i.e before creating any ledger account and entering any

vouchers, the company can be deleted by pressing Alt+D in the Company alter mode.

Activity 1. Create a company in your own name


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Unit 4 Account GroupsOrganisation of Accounts - Groups

In Tally, ledger accounts are organised in-groups. Account groups are thefoundation for the preparation of final accounts. All ledger accounts must belong to

anyone account group. Tally automatically creates a set of predefined account groups

called Reserve Groups for each company while creating the company itself. Theseaccount groups consist of main group and subgroups. Any group or subgroup also can becreated at any time. Tally automatically creates 15 primary groups and 13 subgroups.

These 28 groups are called reserved groups.

For the purpose of convenience these account groups can be classified into two

namely, (1) balance sheet items and (2) profit and loss items. The balance sheet items

may be further divided into (a) liabilities and (b) assets. The profit and loss items may be

further divided into (a) revenue accounts and (b) expenditure accounts.

List of Account Groups

I. Balance Sheet items

(A)Liabilities1. Capital ( or equity)

a) Reserves and Surplus ( or Retained Earnings). It is a subgroup of capital

account.

2. Loans ( or Liabilities).a) Bank OCC accountsubgroup of loan account.

b) Secured Loans- subgroup of loan account

c) Unsecured Loans- subgroup of loan account3. Current Liabilities

a) Duties and Taxessubgroup of current liabilities( only amount collectedand to be paid to Government)

b) Provisions- subgroup of current liabilitiesc) Sundry Creditors ( or Account Payables)subgroup of current liabilities.

(B)Assets1. Fixed Assets (or Immoveable property)

2. Investments -Investments in shares, debentures, bonds govt. securities etc.

3. Current AssetsIt consists of six sub groups

a. bank accountIt is a sub group of Current Assts. t includes all bankaccounts except bank overdraft and cash credit.

b. Stock in handSeparate sub groups may be created for raw material,work in progress, finished goods etc. Capital work in progress is to beshown under Fixed Assets only.

c. DepositsIt is a sub group of Current Assets.

d. Loans and Advances - It is a sub group of Current Assets.

e. Sundry DebtorsIt represents amounts due from customers. It is a subgroup of Current Assets.

f. Cash in hand - - Sub group of Current Assets.


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4. Branch and DivisionsIt is an optional group, which may be used for convenience

by multi-branch/division companies.5. Miscellaneous ExpensesUnwritten off portion of preliminary expenses,deferred

revenue expenditure etc.

II Profit and Loss Account Items.1.SalesMultiple sales accounts may be opened.

2.PurchasesMultiple purchase accounts may be opened.

3.IncomeDirect income and indirect income.4.ExpenditureIt is divided into direct expenditure and indirect expenditure.

Difference between Reserved Groups and User Created Groups1. Reserved groups are created automatically by the system, whereas user created

groups are created by the administrator

2. Reserved groups cannot be deleted, whereas user created groups can be deleted

3. In the case of reserved groups, only alteration of name is permitted, whereas

complete alteration is possible in the case of user created groups.

Creation of Account GroupsAll Ledger Accounts should belong to some Account Groups. The grouping

determines whether a particular Ledger Account goes to Profit and Loss Account or

Balance Sheet. In Tally a list of predefined Account Groups is given. Additional groupsor sub-groups may be created at any level.

Accounts Groups also come under Account info menu. In the Account info menu

select Groups. It gives four options, namely create, display, alter, and budgets.

Groups

Create

Display

AlterBudgets

Fig. 5. Accounts Group menu

To Create New Groups

Select Create and press Enter (short cut A G C ). Then a proforma appears with a

list of existing Account Groups. In the proforma, enter the necessary information. After

creation, press Esc to quit.

To DisplaySelect Group under Account info menu. Then select Display and press Enter.

(short cutAGD).


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To Alter

Select Groups under Account info menu and select Alter and the press Enter.(short cutAGP).

To Delete

To delete a group press Alt and D. Then press Y when dialogue box appears.

Activity 2. Create a group Furniture under Fixed Assets


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Unit5 Ledger AccountsCreation of Ledger Accounts may be considered as the core step. Two accounts,

namely, Cash Account and Profit and Loss Account are given in default. All otheraccounts are to be created. For creating a Ledger Account, go to Account info menu. In

Account info menu go to Ledger Account menu (short cut ALC). For creating

Accounts, highlight Create and press Enter. Then a proforma appears. Enter thenecessary information such as name, alias if any, method of maintaining, balance,opening balance if any, etc. If the opening balance is not zero, specify Debit(D) or Credit

(C). After the creation of necessary Accounts, press Esc to quit.

Ledger Account

Create

DisplayAlter

Budgets

Quit

Fig.4Ledger Account menu

To display - Highlight Display; and press Enter. (Short cut ALD)

To Alter - Highlight Alter and press Enter. (Short cut ALD)

To Delete - Press AltD

Activity 3.Create the following ledger accounts under appropriate group

Capital under Capital Account

Purchases under Purchases Account

Sales under Sales AccountSalary under Indirect Expenses

Wages under Direct ExpensesCustomer under Sundry Debtors

Supplier under Sundry Creditors

SBT under Bank AccountFurniture under Furniture Account


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Unit6 - Voucher Entry

The voucher is the primary document of any transaction and voucher entry is the

fundamental activity in the operation of Tally. The Voucher entry is in the Gateway

of Tally menu. In the Gateway of Tally menu select Voucher entry. Then a proforma

voucher appears. Enter the necessary information in the proforma. For enteringtransactions in the vouchers, the vouchers should be in the appropriate mode and

there should be relevant accounts also.

Account Vouchers

Voucher Modes

(i) F4Contra . It is for transactions between cash and bank.

(ii)F5Payment voucher. It is for all payments though cash and bank.

(iii)F6 - Receipt voucher. It is for all receipts of cash and bank.(iv)F7 - journal voucher. It is an adjustment voucher. It is used for adjusting amounts

between two or more ledger accounts. It includes Debit note, Credit note andjournal proper. Debit note is used for recording purchase returns. Credit note is

used for recording sales returns. Journal proper is used for recording transactions

between accounts.

(v)F8Sales voucher. It is for entering all credit sales.

(vi)F9Purchase voucher. It is for entering all credit purchases.

(vii)F10Memo vouchers. It is purely non- accounting voucher. It can be convertedinto a regular voucher by modifying Controls.

(viii) Reverse journal Activate Reverse Journal under Controls and press

F10Reverse Journal is used when interim final accounts are prepared. When

final accounts are prepared some closing entries are made for depreciation, stocketc. If final accounts are prepared interim, these closing entries are to be reversed

on the next day. However, in Tally, this can be done with the help of Reverse

Entries. If Reverse Journal is used it will have effect for the particular day only.So there is no need for reversal. It will not affect the final accounts prepared on

any other day

Alteration of VouchersVouchers can be altered either while entering the vouchers or during display.

While entering, press Pg Up to alter any previous voucher of the same date. Pressing of

Pg Dn will bring the next voucher. To alter vouchers of any other date change thecurrent date to New Date by pressing f2. After alteration either press Enter or press

Ctrl and A


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Vouchers can be altered on Display mode also. Under this method vouchers can

be accessed from B/S, P/L, Ratio Analysis, and all options of Display.

Deletion of VouchersTo delete any voucher, open the voucher in any mode and Press Alt+D

Account with Inventory Mode

When the accounts are to be prepared under the Accounts with Inventory mode, the

company is to be created Maintain Account with Inventory option. Further, the

inventory details are to be configured.

Necessary modifications are to be made Inventory Features also. These modificationsinclude Confirming Integrate Account with Inventory and Maintain Stock

Categories. Other items are optional.

Inventory configuration

The basic inventory masters consists of Simple Unit of Measure, Stock Group and Stock

ItemSimple Unit of Measure.

Unit of Measure indicates the unit in which the inventory is measured such as Kg, No.Pcs, Packets etc. For creating Unit of Measure, go to Inventory Info menu, select createand enter the particulars relating to UoM Type, UoM symbol, UoM name, and UoM

decimals.

Stock Group

Stock Group means items of stock which have some common features like brand, quality,specification etc. Grouping of stock items help to get group specific reports. Fro creating

Stock Group, go toInventory menu, select Stock Group, and select Creat. Then enter the

particulars such as Stock Group name, Parent stock group, and stock group quantity

Stock Item.

Stock item means individual items of stock. For creating Stock Item, go to Inventory infomenu, select Stock Items and select Create at single stock item and enter the particulars

such as Stock Item name, Stock Item alias, Parent Stock group, and Stock Item UoM.

Also enter details of opening stock such as opening stock quantity, opening stock rate,and opening stock value.

Steps involved for preparing accounts with inventory

1. Create the company in Maintain Account with Inventory option.

2. Press F11 and go to Features

3. Confirm Integrate Account with Inventory

4. Confirm Maintain Stock Categories

5. Create Unit of Measure under Inventory Info

6. Create stock group under Inventory Info


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7. Crate Stock Item under Inventory Info.

8. Press F12 and go to Configuration

9. Confirm Allow advance entries in Inventory Masters

Inventory Vouchers

The Inventory Vouchers are:-

1. ALT +F6Rejections Out

2. Ctrl+F6Rejections in

3. ALT+F7Stock JournalIt is used to create stock transfer voucher from one

godown to another or to production

4. ALT+F8Goods Out JournalIt is used to create Delivery Note,

5. ALT+F9Goods in VoucherIt is used to create Receipt Note. This option is

available maintain inventory only mode

6. ALT+F10Phys. StockIt is used to create actual physical stock voucher

Delivery Note and Receipt Note Vouchers are activated by turning on Tracking Numbers

in the Company Features F11.

So press F11 company Features, tab down to Use Tracking Numbers and set that to

Yes. Once Tracking Numbers are activated, Tally prompts for Use Rejection Notes


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Unit 6- Final AccountsBalance SheetIn Tally, the Balance Sheet is in the Gateway of Tally menu. It provides ready figures ofthe summarised Balance Sheet and Profit and Loss Account. From here it is possible to

move in any direction to any part of the system.

To get Balance sheet, highlight Balance sheet in the Gateway of Tally menu and pressEnter. Then the Balance sheet appears in the horizontal form. This B/S will be in theCondensed form. In order to get detailed B/S press Alt+F1.

To get vertical B/S, the B/S is to be configured. For this go to Configure (Press F12) and

make necessary adjustments for vertical presentation, showing percentages, changeamount style etc.

In order to get further details, position the cursor on any group item or ledger a/c and

press Enter.

Profit and Loss Account

The P/L Account can be accessed through Gatewayof Tally menu. To get Balance sheet,highlight Profit and Loss Account in the Gateway of Tally menu and press Enter.

Then the Profit and Loss Account appears in the horizontal form. This P/L A/c will be in

the condensed form. In order to get detailed P/L, press Alt+F1.

In order to get further details on any item, press the cursor on the required item and press

Enter.


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Unit 7- Financial AnalysisIn Tally, there is the inbuilt facility for getting various financial ratios, cash-flow

statement, and fund-flow statement.

(a)Ratio AnalysisSelect Ratio Analysis in the Gateway of Tally menu and press Enter. Then a

screen appears with two major headings, namely Principal Groups and Principal Ratios.

Principal Groups include, Working Capital, Cash in hand, Bank OCC, Sundry

Debtors, Sundry Credit6orsa, Sales, Purchase, Closing Stock and Net Profit.Principal Ratios include, Current Ratio, Quick Ratio, Debt-Equity Ratio, Gross Profit

Ratio, Net Profit Ratio, Operating Ratio, Receivables Turnover Ratio, Working Capital

Turnover Ratio, Return On Investment, and Return On Working Capital.

From the Ratio Screen, P/L Account, Balance sheet, Cash flow, Fund flow etc., can

be accessed by pressing the relevant buttons on the screen.

(b)Cash FlowThe Cash Flow Statement shows the inflow and out flow of cash. Cash Flow can be

accessed through Display in Gateway Of Tally..

In the Display mode, select Cash & Fund Flow and press Enter. Or press Cand then select Cash Flow and press Enter. Then month wise inflow and outflow of

cash appears Details of each month are available on selecting the month concerned. Even

the vouchers can be accessed in this way.

(c)Fund FlowThe Fund Flow statement shows the source and application of Fund. The term fund

indicates the net working capital. ie., the difference between current assets and current

liabilities.

Like the Cash Flow statement, The Fund Flow statement also can be accessed in theDisplay mode in the Gateway of Tally. In the Display mode, select Cash & Fund

Flow and press Enter. Or press C and then select Fund Flow and press Enter.

Then month wise inflow and outflow of Fund appears Details of each month areavailable on selecting the month concerned. Even the vouchers can be accessed in this

way.


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Unit 8 - Tally Features and ConfigurationFeatures provide some additional options for the treatment of accounting and

inventory details. They are company specific in the sense that they are applicable only to

the company we are currently working with. Features is accessed by pressing F11 in

the Gateway of Tally mode.

Configure provides some additional options such as how to configure numericsymbols, voucher entry, account and inventory information etc. These options are Global

in the sense that, they are applicable to all the companies. Configure is accessed by

pressing F12 in the Gate Way of Tally.

FeaturesThe Features screen has three parts, namely., the Top part, the Middle Part and the

Bottom part.

a. Top PartThe Top part contains following information

1. Integrates accounts and inventory2. Allow multi-currency

3. Allow zero values4. Maintain budgets

5. Allow purchase order processing6. Allow sales order processing

7. Invoicing

8. Enter purchase in Invoice format9. Separate discount columns for invoice

b. Middle PartThe Middle part contains 2 sections namely accounting features and inventory features

Accounting Features1. Maintain bill-wise details If this option is set to Yes , it will show a window

for bill-wise allocation during voucher entry. It is necessary for tracking

outstanding balances.2. Maintain cost centresSet this option to Yes for allocation of cost to different

cost centres during voucher entry

3. Use of Reverse Journal Reverse journals are temporary journal entries made

for facilitating mid-term final accounts. While preparing mid-term final accountsentries for outstanding liabilities, provisions, prepaid expenses, depreciation,

accrued interest etc are to be made. These entries are of temporary nature and

are to be reversed on the next day. In tally these temporary journal entries will

be reversed automatically on the next day. Such journals are called ReverseJournals. I this option is required, set it Yes.

4. Use of Debit Note/ Credit Note Debit Notes are used purchase returns are

made and credit Notes are used when Saes returns are made. If this facility isrequired set the option to Yes.

5. Activate Interest Calculation Set this option to Yes to calculate interest for

ledger accounts.


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6. Use advanced Parameters It is concerned with the calculation of interest for

multiple rates, choice for balances, period, fraction and rounding off.

Inventory Features

1. Maintain Stock CategoriesTo keep different categories of stock

2.

Maintain Batch-wise DetailsThis is to keep details of each batch of stock3. Maintain Multiple GodownsTo maintain more than one godown

4. Use Tracking Numbers it is used when goods are moved without accounting

transactions5. Use Rejection Notes This is to maintain separate records for rejected items.

Rejection-In is for goods returned by customers and Rejection-Out is for goods

returned to suppliers.6. Use different Actual and Bill Quantity It is used when the billing quantity is

different from actual quantity moved out because of free schemes, discounts etc.

7. Track Additional cost of Purchase It is used to incorporate additional cost of

purchase such as sales tax, excise duty, freight, carriage etc., to track effective

purchase cost.c. Bottom PartThe Bottom Part contains one query:- Set or modify Other Company features

The default answer is No. If you want to change the default features of another company

set the option to Yes.

Configure (F12)Configure options are used for making global changes. The F12 button is context

sensitive in the sense that we get different options at different levels. These options are

software specific in the sense that they affect all companies maintained in the same data

directory and setting. Configuration for one company will affect other companies also..The important configuration options in the Gate Way of Tally screen are as follows:

1. General It deals with country details, Style of Names, Style of Dates,

Configuration of numbers (like thousand separator, numbers in millions, use of

currency symbol), and graphs in monthly reports.2. Numeric Symbols it deals with symbols for positive numbers, symbols for

negative numbers, and symbols for credit amounts

3. Accounts and inventory Info It deals with master configuration, accountsmasters and inventory masters.

4. Voucher entryIt deals with options available for making accounting vouchers

and inventory vouchers. Accounting vouchers include, Show cost centre details,Show bi-wise details, Show edger current balances, Use Dr/Cr instead of To and

By, Warn on negative cash balance etc. Inventory voucher options include,

Show godown-wise details, Use reference number in stock journal, Warn on

negative stock balance etc.5. Invoice / Orders Entry It deals with configuration of invoices, Exporters

options, and other options

6. Printing This menu consists of diverse options to configure printing of alltypes of all types of Vouchers, Invoices, Orders etc and also to customise

Reminder letters for payment of outstanding Bills and for confirmation

statements.


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Unit 9 - Tally DisplayTheDisplay menu is in the Gateway of Tally menu. TheDisplay menu consists of

nine primary options which again consist several multi-level options. Details of the

Display menu are as follows.

Trial Balance

Account Books

Cash Book

Bank Accounts

Ledger

Group Summary

Sales RegisterPurchase Register

Journal RegisterJournal RegisterDebit Note

Credit Note

Statement of Accounts

Cost Centre

Break Up, Ledger, Group, Cost Centre,

OutstandingReceivables, Payables, Ledger, Group,

VarianceLedger, Group, Cost Centre, High/low balances, Payment limits

StatisticsRef Pending

Sales, Purchases

Cash and Fund FlowCash Flow, Fund Flow

Compare Accounts

Daily BalanceLedger closing balance, Ledger transactions, Group closing balance, Group transactions, Cost transactions

Day BooksMemo and Reverse Journals

Memo register, Reversing journal

List of AccountsLedger Accounts, Groups, Cost Centres


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Unit 10 - Tally SecurityTally provided two types of security , namely 1. Tally Password 2. Tally Audit and

Tally Vault.

1. Tally passwordPassword protection is a common method of computer security. In Tally when

the company is created an option is prompted to select Use Security ControlWhen it is responded Yes an option for entering password and name of theadministrator appear. Enter the password and the name of the administrator.

Levels of Security

By default, Tally provides for two levels of security, namely 1. Owner and 2.

Data entry. To create a new Security Level, press Down Arrow key to crate ablank line and enter the new Security Level name.The theSecurity Level

definition screen is obtained. The necessary details are entered on the screen

Owner is provided with full access right to every part of the software

(except Tally Audit for which right is restricted to administrator and Auditor).Data entry is based on owner but has restricted access right. Additional

levels of security also can be created through the Company Information menu.Users and Passwords

If different users work on the same software, separate passwords can be

assigned to each user. This is done through security control menu. At Security

Control menu select Users & passwords to get User creation screen and enterthe details fro name of user, password, and security level.

2. Tally AuditThis is a technique available to the administrator or auditor to track if any

unauthorised changes have taken place in the data after the previous review.

This option will be active if it is responded Yes to the question Use Tally

Audit Features in the company particulars on creation or alteration ofcompany. A separate password may be given for Tally Audit and the items for

which the security control is applicable also may be given.

3. Tally VaultTally Vault is used to keep Tally Data in encrypted form for complete secrecy. It

uses the encryption decryption technique. This means only the encrypted data is

stored in the disk and the data is decrypted in the memory only during reporting.So it ensures that under no circumstances the original information is available in

any form. If the password is lost, it will not be possible to recover the data

normally.

For Tally Vaulting a new company, enter the Tally Vault Password and repeat itatRepeat New Passwordfield.

For Tally Vaulting an existing company select Tally Vault at Company

Info menu. Then select the company to be Tally Vaulted. At New password field,enter Tally Vault Password and repeat it for confirmation.


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Unit 11- Tally printingTally has two options to print reports namely 1. Printing while viewing a report

and 2. Multi Account Printing

1. Printing while viewing reportIn any display screen the left most button in the button bar is Print. On selecting

this button (or on pressing Alt+P) the print configuration screen will appear. Thecommon printing options are:a) Auto ColumnColumn details

b) TitlingTo change title of reports

c) Page. NoTo change page number

d) Pre printed /plain paperTo select appropriate stationerye) Quick format / Neat FormatQuick format means printing without any

printing features like bold, italics, ec and print in the draft form. Neat format

provides for all the special printing features.

f) With ColourTo change colourg) CopiesNumber of copies

h) Printer typeName of the printer.

2. Multi-Account PrintingThe Multi- Account printing menu is available in the Gateway of Tally. This

menu is meant for printing multi account reports. It is used for printing thefollowing:-

(a) Account books like cash book, bank book, ledger, sales register, purchase

register etc.(b) Outstanding statements like receivables, payables etc

(c) Inventory books like stock item, groups, stock transfer, physical stock

register etc

(d) Day book(e) Multi-voucher printing


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Unit 12- Export of DataExport of data means copying the data into another software. Tay uses three formats for

export of data, namely1. SDF , 2. ASCII, 3. Flexible Format for Masters and Vouchers

1. SDF (System Data Format)

In this format each line in the file consists of a record. A record may consists ofseveral fields. The sequence and width of these fields are pre-determined which is

known as the structure.

2. ASCII (American Standard Code for Information Interchange.)

ASCII means American Standard Code for Information Interchange. In ASCIIdelimited format each flied may have variable width but the sequence of fields are

fixed. Each field is enclosed in quotes and separated from the next field with a

coma. Since field widths are restricted to actual data, normally the sizes are

smaller as compared to SDF Format.

3. Flexible FormatIn addition to the standard formats of SDF and ASCII, Tally has its own flexible

format for Masters and Vouchers Data.

Export Options

AS in the case of printing, there are two options for export of data in Tally,namely 1. Export while viewing the report and 2. Export from Multi-Account

PrintingMenu.

ODBC ConnectivityExport of Tally data will not give online data. For getting Tally data in other formats

online ODBC is used. ODBC stands for Open Data base Connectivity. It is a standard

programming language interface used to connect to data source. On installing Tally

ODBC driver, we get connected to Tally Data through the ODBC driverand then plug toother ODBC complaint software like MS-Word, MS Excel, Oracle, FoxPro, MS SQL,

Visual Basic and DB2. Accordingly Tally data can be availed online in other appropriateformats.


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Unit 13- Tally ReportsTally provides for three main types of reports, namely Accounting reports,

Inventory Reports and MIS Reports.

1. Accounting ReportsAccounting reports include Final accounts like Balance Sheet, Profit and loss

Account and Trial balance; Account Books like Cash Book; Group summarieslike ales Register, Purchases Register, Debit Note Register, Credit NoteRegister,; Statement of Accounts like Cost Centre, Out Standings and Statistics.

a. Balance Sheet (Location:- Gateway)

Normally, the Balance Sheet is given in the horizontal form displaying

closing balances for primary groups of assets and liabilities. To movearound the Balance Sheet, arrow keys can be used. For viewing more

details the various buttons on the screen can be used.

b. P/L Account (Location:- Gateway)

The P/L Account is also given in the Horizontal form. The optionsavailable to the B?S are also available to the P/L Account.

c. Trial Balance (Location: Display)The default Trial Balance displays the list of all primary groups on the leftside and their closing debit and credit balances on the right side. For

getting more details the various buttons on the screen can be used.

d. Cash Book (Location:- Display/Account Books)Selection of this option brings up the group summary (level 2) of cash in

hand, bank accounts, and bank Occ group displaying all the cash accounts

and bank accounts.In order to view the next level (level 3) details, position the cursor on the

ledger account and press enter. This wi bring up the monthly summary of

accounts. This option also gives additional facilities like showing

periodicity of use and showing graph.To view the vouchers of one month, position the cursor on the month and

press enter. The list of vouchers (level 4) for that month comes up on the

screen. At this level different options such as daily break up, columnar

format, bill-wise details, cost centre details, narrations, foreign exchangetransactions, sorting method etc are available.

e. Ledgers (Location:- Display/ Account Books/Ledger)

On selection of this option a list of ledgers appear. In order to see thedetails of a particular ledger, place the cursor on the required ledger a/c

and press enter.

f. Group Summary (Location: Display/ account Books)

On selection of this option a list of groups appear. In order to see details ofa particular group, place the cursor on the required group and press enter.

Major account groups include sales register, purchase register, debit note

register, credit note register, journal register etc.g. Statement of Accounts (Location : Display)

The Statement of Accounts include reports relating to cost centres,

outstanding and Statistics.


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Cost Centres give details of transactions in each account and its closing

balance. These reports enable us to analyse the income or expense of eachcost centre.

Outstandings show all the reports pertaining to outstanding bills. It

consists of outstandings of receivables, payables, ledger balances, group-

wise balances, interest calculations etc.Statistics show all vital information regarding type of vouchers and type of

accounts.

2. Inventory Reports.Inventory reports include Stock Summary and Inventory Books

a. Stock Summary (Location:- Gateway)

It displays the details of each item or group of stock for a particularperiod. The Stock Summary is equivalent to Trial Balance for Financial

Accounts. Like Trial balance, The Stock Summary displays closing

balances of with details of quantity, rate and value for the stock groups or

items.

b.

Inventory Books (Location:- Display)Inventory books are equivalent to Account books. The options available

include stock item, group summary, movement analysis, stock transfer,Physical stock register, sales order book, purchase orders book etc.

3. MIS ReportsMIS Reports include Ratio Analysis, Fund Flow Statement, Cash Flow

Statement, and Exception Reports.

a. Ratio AnalysisIn Ratio Analysis each variable in the financial statements is expressed inrelation to other variable or variables.

b. Fund Flow StatementIt shows the source and application of funds. It also shows the movement

of working capital.

c. Cash Flow StatementIt shows the movement of cash ie, the source and application of cash.

d. Exception ReportsException reports include:-

1. Negative StockStock credit balance

2. Negative LedgerLedger account shows opposite balance3. Overdue ReceivablesOutstanding Receivables

4. Overdue PayablesOutstanding Payables

5. Memorandum VouchersThis option brings monthwise summary of

memorandum vouchers.6. Reversing Journals This option brings monthwise summary of

reversing journals.

7. Optional Vouchers It brings out a report of different optionalvouchers


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Unit 14 - Tally House Keeping

The main elements of House Keeping are back up, restore and rewriting

1. Back UpThe data are first entered on the hard disk. Normally a copy of the data is stored

on a Floppy or CD. The process of keeping a copy of the data in another place iscalled Back Up.

For Back Up, press F4at any menu which brings back up screen. By default, the

cursor moves to name of the company field. Select the company we wish to

Back Up. After selection of one company, the list of companies will show other

companies and End of List. When the selection is completed Accept the screen.

By default, the last selected Destination, Drive and Path will be displayed. To

change the destination Press back space. After selecting the Destination Acceptthe Screen.

2. RestoreIf the original data stored in the hard disk gets damaged or deleted, we can copyback the data kept in other places. The process of getting back the earlier data is

known as restoration of data.

For Restore, press F4 at any menu which brings the Restore Screen. Then specify

the source from where we wish to restore, and insert the Disk if necessary. Thelist of companies whose data are available at the specified source will be

displayed on the right. Now select the company and Accept the screen.

3. Rewriting.When the data gets damaged due to power failure or some other errors or settingsof the option are altered, books need rewriting for correct retrieval.

For Rewriting, Press Ctrl+Alt+R. This brings a screen to select the company wewish to rewrite. Accept the screen.


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Tally Model Problem

ABC Ltd is dealer in home appliances. Its business transactions for the period 2008-09are given below.

Opening balances as on 01/04/2008 are as follows:

Building Rs.2,00,000, Furniture Rs.80,000, Cash in hand Rs.10,00,000, Motor Van

Rs.3,00,000, capital Rs.15,80,000

Business transactions during the year are as follows:

01/04/2008 Opened a current A/c with SBT and deposited Rs.5,00,000

02/04/2008 Took a loan from Dhanalakshmi Bank Rs.15,00,000

01/05/2008 Purchased the following from Western Traders Pvt.Ltd with bill No.110:

20 Igo 21 CTVs ONIDA @ Rs.10,000 per T.V

25 Igo CD Players ONIDA @ Rs.5000 per Music System

10 Fcool, 165 Ltr ONIDA @ Rs.15,000 per Fridge

02/05/2008 Purchased the following from Northern Home Appliances Ltd. Bill

No.410

20 Digi 21 Flat CTV Samsung @ Rs.15,000 per TV

40Digi. DVD Players Samsung @ Rs.12,000 per Music System

10 EMIST 195 Ltr Samsung @ Rs.16,000 per Fridge

01/06/2008 Purchased Office Furniture for cash Rs.15,000/-

02/06/2008 Sold the following to Mr. Gupta with invoice No.111

5 Igo 21 CTVs ONIDA @ Rs.14,000 per TV

5 Igo CD Players ONIDA @ Rs.7000 per Music System

3 Fcool, 165 Ltr ONIDA @ Rs.18,000 per Fridge

01/07/2008 Sold the following goods to Mr.Oberoi with invoice No.112

5 Igo 21 CTV ONIDA @Rs.14,000/- per TV

8 Digi 21Flat TV Samsung @ Rs.16,000/- per TV

5 EMIST 195 Ltr Samsung Rs.20,000/- per Fridge

20 DVD Players Samsung @Rs.14,000/- per Music system

01/08/2008 Mr.Gupta returned the following goods, with invoice No.111

2 Igo 21 CTV, ONIDA1 Igo CD Player ONIDA

1 FCOOL 165 Ltr.ONIDA Fridge

02/08/2008 Mr.Gupta settled his account by paying the whole amount due.

01/09/2008 Deposited Rs.1,00,000/- in to SBT


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01/10/2008 Sold the following goods to Mr.Gupta

10 Digi DVD Players Samsung @Rs.14,000/- per Music System

3 EMIST 195 Ltr. Samsung Fridge @ Rs.20,000/- per Fridge

01/11/2008 Purchased following goods from Western Traders, Bill No. 514

10 Igo 21 CTV ONIDA @Rs.10,000/- per TV

01/12/2008 Dhanalakshmi Bank charged interest Rs.3000/- on loan

02/12/2008 Paid Rs.50,000/- to Dhanalakshmi Bank

01/01/2009 Paid salaries by cheque (SBT) Rs.40,000/-Paid Travelling Expenses Rs.2,500/-

01/02/2009 Purchased the following from Western Traders Bill.No.4015, discount

Rs.2000

3 FCOOL 165 Ltr.ONIDA Fridge @ Rs.15,000/- per Fridge

01/03/2009 Sold the following to Mr.Gupta Invoice No.114

5 Digi 21 Flat CTV Samsung @Rs.14,000/- per TV

10 Digi DVD Player Samsung @Rs.14,000/- per Music System

2 EMIST 195 Ltr. Fridge Samsung @Rs.20,000/- per Fridge.(Charged Rs.1950/- towards packing and forwarding charges)

31/03/2009 Charged Depreciation on the following

Building-10%, Furniture-8%, and Motor Van-20%.

Prepare necessary ledger accounts, stock groups, Unit of Measurements, Stock Items,

make voucher entries, and display P/L A/c and B/S

Solution

1. Create new company in your own name (e.g ABC Stock) with MaintainAccounts with Inventory and Financial year from 1-4-2008

2. Change company features(F11), select yes to integrate accounts with inventory,

maintain bill-wise details, and use debit/credit notes

3. Change the configuration (F12) and select yes to Allow advance entries ininventory masters.

4. Create necessary accounts under appropriate groups

5. Create stock groups ONIDA under primary and Samsung under primary(Inventory infoStock Group Create)

6. Create Stock Categories Television, Music System, and Fridge under Primary

(Inventory info Stock Category Create)

7. Create Unit of Measure: SymbolNos and Formal Name- Number

8. (Inventory infoUnit of Measure Create)


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9. Create the following Stock Items under the name of Group and Category given

against each of their name. Also select valuation method FIFO and market

valuation method Standard

Stock Item Group Category

Igo 21 CTV

Dig21 Flat CTV

Igo CD Player

Digi DVD Player

165 Ltr FCOOL

195 Ltr EMIST

ONIDA

Samsung

ONIDA

Samsung

ONIDA

Samsung

Television

Television

Music System

Music System

Fridge

Fridge

10.Make the voucher entries

11.See P/L Account and Balance Sheet (in Gateway of Tally)


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Documents

Transcript of Unitised Tally