Tally Notes

Unit 1. Introduction
Tally 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 Accounting Computerised accounting simplifies the accounting operations. Once a suitable programme (accounting package) is installed the work of the accountant is reduced by a great 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 automatically 4. 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. Wings 5. 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. Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes

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 numbering schemes 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 Tally Installation of the software and activating it 2. Creation of Company Separate set of books are used for each firm or business entity. 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 in the book of prime entry. 6. Getting Reports Reports include financial statements, group summaries, cash book, Trial Balance and other such reports. 7. Making Analysis Tally helps analysis of financial statements with the help of ratios, fund flow statement, cash flow statement etc 8. House Keeping It is concerned with maintenance of data prepared under Tally.

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Tally Notes

Unit 2. Starting Tally

When Tally is launched, the Gateway of Tally screen appears which contain 5 major areas, namely Product Info Current status Tally menu Button Bar Tally Calculator

Product Info
It contains: Copyright notice Version and release System date User version User serial number System time

Current Status
It 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 Menu
It contains three main menus and 12 sub-menus. It also contains the Quit option Masters Transactions and vouchers Reports

Button Bar
It 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 Key Tally Calculator

To activate the calculator, Press Ctrl+N To switch to Work Area, Press Ctrl+M For making calculations, type the arithmetic expression and press Enter Tally calculator follows BDMAS rule

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Tally Notes

Unit 3 Creation of Company

This 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 external reports.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. is optional 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 also optional 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 the alteration mode. b. Accounts with inventory: This option is suitable for firms which maintain inventory. If this option is maintained, Inventory balance will be adjusted automatically. (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 to maintain 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 the financial 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 the name of the administrator, password and Tally audit features. 12. Base currency symbol: Same as currency symbol 13. Formal name: Formal name of the currency 14. Number of Decimal points: Number of decimal places required. Usually it is two Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes 15. Show amounts in millions: For displaying the amounts in millions 16. Is symbol suffixed to amounts?: This is for displaying the amount together with currency symbol. 17. Put a space between amount and symbol: To put a blank space between currency symbol and amount. Accept the creation and modifications For 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 the button bar or press Alt+F3. the select Alter option from the 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 using Ctrl+A. Shut Down Company Shut 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 Company Deletion 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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Tally Notes

Unit 4 Account Groups

Organisation of Accounts - Groups In Tally, ledger accounts are organised in-groups. Account groups are the foundation 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. These account groups consist of main group and subgroups. Any group or subgroup also can be created 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) Liabilities 1. Capital ( or equity) a) Reserves and Surplus ( or Retained Earnings). It is a subgroup of capital account. 2. Loans ( or Liabilities). a) Bank OCC account subgroup of loan account. b) Secured Loans- subgroup of loan account c) Unsecured Loans- subgroup of loan account 3. Current Liabilities a) Duties and Taxes subgroup of current liabilities( only amount collected and to be paid to Government) b) Provisions- subgroup of current liabilities c) Sundry Creditors ( or Account Payables) subgroup of current liabilities. (B) Assets 1. Fixed Assets (or Immoveable property) 2. Investments -Investments in shares, debentures, bonds govt. securities etc. 3. Current Assets It consists of six sub groups a. bank account It is a sub group of Current Assts. t includes all bank accounts except bank overdraft and cash credit. b. Stock in hand Separate sub groups may be created for raw material, work in progress, finished goods etc. Capital work in progress is to be shown under Fixed Assets only. c. Deposits It is a sub group of Current Assets. d. Loans and Advances - It is a sub group of Current Assets. e. Sundry Debtors It represents amounts due from customers. It is a sub group of Current Assets. f. Cash in hand - - Sub group of Current Assets. Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes 4. 5. Branch and Divisions It is an optional group, which may be used for convenience by multi-branch/division companies. Miscellaneous Expenses Unwritten off portion of preliminary expenses,deferred revenue expenditure etc.

II Profit and Loss Account Items. 1. Sales Multiple sales accounts may be opened. 2. Purchases Multiple purchase accounts may be opened. 3. Income Direct income and indirect income. 4. Expenditure It is divided into direct expenditure and indirect expenditure. Difference between Reserved Groups and User Created Groups 1. 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 Groups

All 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 groups or 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 Alter Budgets 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 Display Select Group under Account info menu. Then select Display and press Enter. (short cut AGD).

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Tally Notes

To Alter Select Groups under Account info menu and select Alter and the press Enter. (short cut AGP). 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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Tally Notes

Unit 5 Ledger Accounts

Creation 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 other accounts 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 the necessary 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 Display Alter Budgets Quit Fig.4 Ledger 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 Account Salary under Indirect Expenses Wages under Direct Expenses Customer under Sundry Debtors Supplier under Sundry Creditors SBT under Bank Account Furniture under Furniture Account

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Tally Notes

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Unit 6 - 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 entering transactions in the vouchers, the vouchers should be in the appropriate mode and there should be relevant accounts also. Account Vouchers Voucher Modes (i) F4 Contra . It is for transactions between cash and bank. (ii) F5 Payment 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 and journal 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) F8 Sales voucher. It is for entering all credit sales. (vi) F9 Purchase voucher. It is for entering all credit purchases. (vii) F10 Memo vouchers. It is purely non- accounting voucher. It can be converted into 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, stock etc. 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 Vouchers Vouchers 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 the current date to New Date by pressing f2. After alteration either press Enter or press Ctrl and A

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Tally Notes

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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 Vouchers To 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 modifications include 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 Item Simple 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 create and 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 to Inventory 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 info menu, 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 Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes 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 +F6 Rejections Out 2. Ctrl+F6 Rejections in

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3. ALT+F7 Stock Journal It is used to create stock transfer voucher from one godown to another or to production 4. ALT+F8 Goods Out Journal It is used to create Delivery Note, 5. ALT+F9 Goods in Voucher It is used to create Receipt Note. This option is available maintain inventory only mode 6. ALT+F10 Phys. Stock It 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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Tally Notes

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Unit 6- Final Accounts

Balance Sheet In Tally, the Balance Sheet is in the Gateway of Tally menu. It provides ready figures of the 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 press Enter. Then the Balance sheet appears in the horizontal form. This B/S will be in the Condensed 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, change amount 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 Gateway of 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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Tally Notes

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Unit 7- Financial Analysis

In Tally, there is the inbuilt facility for getting various financial ratios, cash-flow statement, and fund-flow statement. (a) Ratio Analysis Select 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 Flow The 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 C and 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 Flow The 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 the Display 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 are available on selecting the month concerned. Even the vouchers can be accessed in this way.

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Tally Notes

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Unit 8 - Tally

Features and Configuration

Features 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 numeric symbols, 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.

Features
The Features screen has three parts, namely., the Top part, the Middle Part and the Bottom part. a. Top Part The Top part contains following information 1. Integrates accounts and inventory 2. Allow multi-currency 3. Allow zero values 4. Maintain budgets 5. Allow purchase order processing 6. Allow sales order processing 7. Invoicing 8. Enter purchase in Invoice format 9. Separate discount columns for invoice b. Middle Part The Middle part contains 2 sections namely accounting features and inventory features Accounting Features 1. 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 centres Set 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 accounts entries 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 Reverse Journals. 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 is required set the option to Yes. 5. Activate Interest Calculation Set this option to Yes to calculate interest for ledger accounts.

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Tally Notes 6.

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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 Categories To keep different categories of stock 2. Maintain Batch-wise Details This is to keep details of each batch of stock 3. Maintain Multiple Godowns To maintain more than one godown 4. Use Tracking Numbers it is used when goods are moved without accounting transactions 5. 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 Part The 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, accounts masters and inventory masters. 4. Voucher entry It 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 all types of all types of Vouchers, Invoices, Orders etc and also to customise Reminder letters for payment of outstanding Bills and for confirmation statements. Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes

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Unit 9 - Tally Display

The Display menu is in the Gateway of Tally menu. The Display 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 Register Purchase Register Journal Register Journal Register Debit Note Credit Note

Statement of Accounts
Cost Centre Break Up, Ledger, Group, Cost Centre, Outstanding Receivables, Payables, Ledger, Group, Variance Ledger, Group, Cost Centre, High/low balances, Payment limits Statistics Ref Pending Sales, Purchases Cash and Fund Flow Cash Flow, Fund Flow Compare Accounts Daily Balance
Ledger closing balance, Ledger transactions, Group closing balance, Group transactions, Cost transactions

Day Books Memo and Reverse Journals Memo register, Reversing journal List of Accounts Ledger Accounts, Groups, Cost Centres

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Tally Notes

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Unit 10 - Tally Security

Tally provided two types of security , namely 1. Tally Password 2. Tally Audit and Tally Vault. 1. Tally password Password protection is a common method of computer security. In Tally when the company is created an option is prompted to select Use Security Control When it is responded Yes an option for entering password and name of the administrator 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 a blank 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 enter the details fro name of user, password, and security level. 2. Tally Audit This 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 of company. A separate password may be given for Tally Audit and the items for which the security control is applicable also may be given. Tally Vault Tally 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 it at Repeat New Password field. 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.

3.

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Tally Notes

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Unit 11- Tally printing

Tally has two options to print reports namely 1. Printing while viewing a report and 2. Multi Account Printing 1. Printing while viewing report In 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. The common printing options are: a) Auto Column Column details b) Titling To change title of reports c) Page. No To change page number d) Pre printed /plain paper To select appropriate stationery e) Quick format / Neat Format Quick 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 Colour To change colour g) Copies Number of copies h) Printer type Name of the printer. 2. Multi-Account Printing The 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 the following:(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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Tally Notes

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Unit 12- Export of Data

Export 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 of several 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 ASCII delimited 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 Format In 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 Printing Menu. ODBC Connectivity Export 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 to other 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 appropriate formats.

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

Tally Notes

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Unit 13- Tally Reports

Tally provides for three main types of reports, namely Accounting reports, Inventory Reports and MIS Reports. 1. Accounting Reports Accounting reports include Final accounts like Balance Sheet, Profit and loss Account and Trial balance; Account Books like Cash Book; Group summaries like ales Register, Purchases Register, Debit Note Register, Credit Note Register,; 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 move around 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 options available 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 left side 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 exchange transactions, 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 the details 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 of a 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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Tally Notes

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2.

Cost Centres give details of transactions in each account and its closing balance. These reports enable us to analyse the income or expense of each cost centre. Outstandings show all the reports pertaining to outstanding bills. It consists of outstandings of receivables, payables, ledger balances, groupwise balances, interest calculations etc. Statistics show all vital information regarding type of vouchers and type of accounts. 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 particular period. 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. MIS Reports MIS Reports include Ratio Analysis, Fund Flow Statement, Cash Flow Statement, and Exception Reports. a. Ratio Analysis In Ratio Analysis each variable in the financial statements is expressed in relation to other variable or variables. b. Fund Flow Statement It shows the source and application of funds. It also shows the movement of working capital. c. Cash Flow Statement It shows the movement of cash ie, the source and application of cash. d. Exception Reports Exception reports include:1. Negative Stock Stock credit balance 2. Negative Ledger Ledger account shows opposite balance 3. Overdue Receivables Outstanding Receivables 4. Overdue Payables Outstanding Payables 5. Memorandum Vouchers This 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 optional vouchers

3.

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Tally Notes

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Unit 14 - Tally House Keeping

The main elements of House Keeping are back up, restore and rewriting 1. Back Up The 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 is called 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 Accept the Screen. 2. Restore If the original data stored in the hard disk gets damaged or deleted, we can copy back 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. The list 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 settings of the option are altered, books need rewriting for correct retrieval. For Rewriting, Press Ctrl+Alt+R. This brings a screen to select the company we wish to rewrite. Accept the screen.

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

Tally Notes Tally Model Problem ABC Ltd is dealer in home appliances. Its business transactions for the period 200809are 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 02/04/2008 01/05/2008 Opened a current A/c with SBT and deposited Rs.5,00,000 Took a loan from Dhanalakshmi Bank Rs.15,00,000

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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 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 Purchased Office Furniture for cash Rs.15,000/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 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 Mr.Gupta returned the following goods, with invoice No.111 2 Igo 21 CTV, ONIDA 1 Igo CD Player ONIDA 1 FCOOL 165 Ltr.ONIDA Fridge Mr.Gupta settled his account by paying the whole amount due. Deposited Rs.1,00,000/- in to SBT

02/05/2008

01/06/2008 02/06/2008

01/07/2008

01/08/2008

02/08/2008 01/09/2008

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

Tally Notes 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 Purchased following goods from Western Traders, Bill No. 514 10 Igo 21 CTV ONIDA @Rs.10,000/- per TV Dhanalakshmi Bank charged interest Rs.3000/- on loan Paid Rs.50,000/- to Dhanalakshmi Bank Paid salaries by cheque (SBT) Rs.40,000/Paid Travelling Expenses Rs.2,500/Purchased the following from Western Traders Bill.No.4015, discount Rs.2000 3 FCOOL 165 Ltr.ONIDA Fridge @ Rs.15,000/- per Fridge 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) Charged Depreciation on the following Building-10%, Furniture-8%, and Motor Van-20%.

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01/11/2008

01/12/2008 02/12/2008 01/01/2009

01/02/2009

01/03/2009

31/03/2009

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 Maintain Accounts 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 in inventory masters. 4. Create necessary accounts under appropriate groups 5. Create stock groups ONIDA under primary and Samsung under primary (Inventory info Stock Group Create) 6. Create Stock Categories Television, Music System, and Fridge under Primary (Inventory info Stock Category Create) 7. Create Unit of Measure: Symbol Nos and Formal Name- Number 8. (Inventory info Unit of Measure Create) Prepared by Dr.Tomy Mathew, Department of Commerce, CMS College, Kottayam, for private circulation only

Tally Notes 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 Igo 21 CTV Dig21 Flat CTV Igo CD Player Digi DVD Player 165 Ltr FCOOL 195 Ltr EMIST Group ONIDA Samsung ONIDA Samsung ONIDA Samsung Category Television Television Music System Music System Fridge Fridge

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10. Make the voucher entries 11. See P/L Account and Balance Sheet (in Gateway of Tally)

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

Tally Notes

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Tally Questions
I. Short Questions ( 2 Marks) 1 How a company is created? 2 How an account is created? 3 How a group is created? 4 What do you mean by Reserve Groups in Tally? 5 What is current period? How it is changed? 6 How a company is deleted? 7 How an account is deleted? 8 How an account is altered? 9 How a company is altered? 10 What are reverse journals? 11 Why Reverse Journals are used? 12 How a voucher entry is deleted/altered? 13 How Dr/Cr is changed to To/By? 14 What do you mean by Features in Tally? 15 What do you mean by Configure in Tally? 16 Define Invoicing 17 What do you mean by maintain bill-wise details? 18 What is the difference between against reference and on account? 19 What do you mean by Tally Vaulting? 20 What is the ODBC facility in Tally? II. Short Essays (5 / 10 Marks) 1 Explain briefly the security features of Tally. 2 What are the major types of vouchers in Tally/ 3 How closing stock is recorded in Tally in the Account only mode 4 What are the major features of Tally? 5 What are the advantages of Computerised accounting? 6 Explain briefly the major Accounting Packages. 7 Explain briefly the steps for preparing accounts using Tally. 8 What are the options available in Tally Features 9 What are the options available in Tally Configure 10 How export of data is done in Tally? 11 Briefly explain the Tally Reports. 12 Explain Back Up, Restore and Rewriting facilities in Tally. 13 How Inventory is recorded in Tally? 14 What are the security facilities available in Tally? III. Essay Type (10 Marks) Procedure for preparing accounts under Tally

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