ACCOUNTING REPORTS IN TALLY

ACCOUNTING REPORTS IN TALLY

You can get reports of accounting by the following steps:-

Gateway of Tally

 1.   Balance Sheet

     2. Profit & Loss A/c

      3. Display – Trial Balance

     4. Display - Day book

     5.   Display – Account books - Ledgers

      6. Display – Statements of Accounts – Outstanding

      7. Display – Cash / Funds Flow

     8.  Display – List of Accounts

PURCHASE VOUCHER IN TALLY

PURCHASE VOUCHER (press F9)

Purchase is an voucher, normally used for credit transactions like purchase of goods from party (Creditors) on credit.

Particulars	Debit	Credit
Cr. Creditors Dr. Furniture & Fixtures Dr. Motor Car Dr. Machinery	(Amount)               (Amount)               (Amount)	(Amount)

 

Entry Rules: In a purchase voucher, only the transactions are on credit. The goods are purchased on credit from creditors. (No cash transactions are available in this voucher).

SALES VOUCHER IN TALLY

SALES VOUCHER (press F8)

Sales is an voucher, normally used for credit transactions like sales of goods to party (Debtors) on credit.

Particulars	Debit	Credit
Cr. Machinery Cr. Furniture & Fixtures Cr. Motor Car Dr. Debtors	(Amount)	(Amount)                    (Amount)                    (Amount)

Entry Rules: In a sales voucher, only the transactions are                 on credit. The goods are sold on credit to debtors. 

           (No cash transactions are available in this voucher).

JOURNAL VOUCHER IN TALLY

JOURNAL VOUCHER (press F7)

Journal is an adjustment voucher, normally used for non cash transactions like adjustment between ledger accounts.

Particulars	Debit	Credit
Dr. Depreciation Cr. Machinery Cr. Furniture & Fixtures Cr. Motor Car	(Amount)	(Amount)                  (Amount)                  (Amount)

Entry Rules: In a journal voucher, only non cash bank accounts (Ledger accounts other than Cash, Bank or Bank OCC) may be Debit. Later accounts may be either Debit or Credit. 

RECEIPT VOUCHER IN TALLY

RECEIPT VOUCHER (press F6)

All inflow of money (in cash or through bank) is recorded through receipt voucher. Such receipts may be towards any income, from debtors, Loans/Advances taken or Refund of Loans/Advances given earlier etc.

Particulars	Debit	Credit
Cr. Ledger A/c received from      Dr. Cash/Bank A/c	(Amount)	(Amount)

Entry Rules: The first entry is always credit (other than cash/ Bank/Bank OCC) and second entry on-wards you may specify debit/credit. Ledger A/c placed under the cash in hand, Bank A/c’s or Bank OCC group must be credited.

PAYMENT VOUCHER IN TALLY

PAYMENT VOUCHER (press F5)

All payments (by cash or through bank) are recorded in payment voucher. Such payments may be towards purchase, expenses, Acquisition of fixed assets, Dues to creditor, Loans/advances given by you or repayment of loans/advances taken by you earlier etc

Particulars	Debit	Credit
Dr. Ledger A/c paid to      Cr. Cash/Bank A/c	(Amount)	(Amount)

Entry Rules: The first entry is always debit (other than cash/ Bank/Bank OCC and second entry onwards you may specify debit/credit. Ledger A/c placed under the cash in hand, Bank A/cs or Bank OCC group must be credited.

CONTRA VOUCHER IN TALLY

CONTRA VOUCHER

Contra voucher is used for fund transfer between cash & bank accounts (ledger placed under groups; Cash in hand, Bank Accounts & Bank OCC) only. 

Following transactions should be entered in Contra voucher:- 

·      Cash deposited into bank: Cash outflow, equal inflow at Bank Account.

·      Cash withdrawn from bank: Outflow from bank account, equal cash inflow.

·      Cheque of one bank deposited to another bank: Outflow from one bank account equal inflow to another bank account.

·      Cash given to / received back from petty cash: Outflow from one cash account, equal inflow to another cash account.

VOUCHER RULES

The entries in Contra Voucher follow the rule shown below:

Particulars	Debit	Credit
Cr  Source of Funds Dr Destination of funds	(Amount)	(Amount)

Entry Rules: The 1^st entry is always credit. From 2^nd  entry on-wards you may Debit or Credit a ledger Cash, Bank Accounts and Bank OCC Group only.

ACCOUNTS INVENTORY CREATION

ACCOUNTS WITH INVENTORY

STEP 1- To create stock group

Gateway of Tally

Inventory Info

Stock Group

Create

STEP 2- To create stock category (press F11)

MAINTAIN STOCK CATEGORIES -YES

STOCK CATEGORIES

CREATE (NAME OF PRODUCT)

 STEP 3- To create Units of Measures

UNITS OF MEASURES

UNITS

CREATE

STEP 4- To create Stock Items

STOCK ITEMS (FINAL PRODUCTS)

CREATE

STEP 5- To create Godowns

Press f11-maintain multiple godowns – yes

Gateway of tally

Inventory info

Godown

INVENTORY MASTERS IN TALLY

INVENTORY MASTERS

In newly created company the inventory info menu comprise of four types of masters namely.

1.  Stock Group

2.  Stock Items

3.  Voucher types

4.  Units of Measure

However in order to maintain i) Stock Category ii) Storage Locations or Godowns Activate two features in F11

1.  Maintain stock categories.

2.  Maintain multiple godowns.

Stock Items:-

          Stock items refer to goods in which you deal that is goods that you manufacture or trade (sale and purchase) stock items are important inventory.

Stock Group:-

          Similar to group in accounting masters these providing for the purchase of classification of stock items.

Stock Categories:-

          This feature is required to be activated in F11 like stock group; classification is done on some similar behavior.

Location / Godowns:-

          A place where stock items are stored is referred for as godowns you can specify where the stock items are kept e.g. warehouse shelf or rack etc. Stock report for each godown by activating “maintain multiple godown” in F11 feature.

Units of Measure:-

         While studying inventory, unit of measure is an unavoidable issue. Because, any stock item has to be measured in some specific units for e.g. liquids will be measured in liters, solid will be measured in kg or items or nos or pieces and so on. We have to create a specific unit of measure for whatever type of goods that we stock in our company. We can create two types of units in Tally. Simple & Compound Example of Simple unit is will be kg, pieces etc & examples of Compound units will be ‘1 dozen of 12 pieces, 1 quintal of 100 kg and so on’.  

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INVENTORY IN TALLY

INVENTORY IN TALLY

Meaning: - 

Inventory means the stock of raw materials, finished goods in our business. In Tally, along with accounting information, we can also keep information on how much goods were received by us, at what prices and how much goods were dispatched, at what prices and such other information.

Inventory accounting with Tally: - 

Inventory accounting includes recording stock details the purchase of stock the sale of stock movement between storage locations or godowns and providing information on stock availability with tally it is possible to integrate the inventory & accounting system so that financial statement reflects the closing stock value the inventory system.

FEATURES SETUP IN TALLY

ACCOUNTING FEATURES SETUP

In accounting we have to setup the as requirement the setup will be as follows:-

Click F11 than there will be three types of setup types

·      Accounting features: In this window the features are for only accounting purpose, if your department is related to only accounting or financial section you must use accounting features.

·      Inventory features: In this window the features are related to accounting with inventory, if you are a manufacturer of any type of goods or your business is related to goods you must use inventory features.

·      Statutory features: In this window the features are related to each & every taxation purposes, if your business is related by taxation or if you pay any type of tax to government than you must use statutory taxation feature.

With the help of these features we can maintain our accounts properly in Tally.

ACCOUNTS VOUCHER & TYPES

ACCOUNTS VOUCHER

Accounts voucher is the primary document in which the complete details of accounting transaction are recorded like:

·      Payment of salary to employees.

·      Withdrawal of cash from Bank Account.

You make an accounts voucher when you receive or pay money. But there are many instances of non cash business transaction that requires a voucher entry, like:

·      Credit sale

·      Provision of depreciation for fixed assets

·      Appropriation of profit to Partner’s Capital Accounts.

TALLY ACCOUNTS VOUCHER TYPES

As per classic accounting principle, all accounting transactions may be entered in journal voucher. In fact, in old days, people used only one day book called Journal to record all transactions, cash or non-cash but for sake of convenience, various types of vouchers have evolved, according to nature of transactions.

The following are the basic voucher types, considered essential by all kinds of business, irrespective of its nature, size or book keeping methods:-

·      Contra: To record transfer of funds between Cash & Bank Accounts.

·      Receipt: To record receipts of money by cash, cheque, bank transfers, etc.

·      Payment: To record payments of money by cash, cheque, bank transfers, etc.

·      Journal: To record all non cash transactions (all accounting transactions not involving any cash or bank ledger).

·      Sales: To record transactions of sales of goods on credit.

·      Purchase: To record transactions of purchase of goods on credit.

GROUPS CLASSIFICATION

8. MISCELLANEOUS EXPENSES (ASSETS):-This primary group is mean to keep preliminary and pre-operative or any other similar expenses which have been capitalized and only the option that has not been written off.

9. SALES A/C:-It is mean to keep all the purchase transaction of the company.

10. PURCHASE A/C:-It is mean to keep all the purchase transaction of the company.

11.DIRECT INCOMES (INCOME DIRECT) :-In this primary group, ledgers A/c for all the direct income of the company that is income bearing out of sale of goods produced by the company are maintained.

12. INDIRECT INCOME (INCOME INDIRECT):-Under this primary group ledger for indirect income that is income from sources other than produced goods like interest, rent received or dividend received is maintained.

13. DIRECT EXPENSES (EXPENSES DIRECT):-This primary group is mean to keep the ledger on direct exp. Like cost of labors, transaction of goods, utilities like fuel, electricity etc.

14. INDIRECT EXPENSES (EXPENSES INDIRECT):-This primary group is for the ledger on indirect expenses such as advertising maintenance and administrative expenses.

15. BRANCHES/DIVISIONS:-In this primary group all the names of branches divisions & subsidiaries of the company are maintained.   

  

GROUPS CLASSIFICATION

GROUPS & LEDGERS

GROUPS: - Groups are collection of ledger of the same nature. Tally provides lists of 28 pre-defined groups of these 15 are primary group & 13 are groups 9 primary groups appear in the balance sheet they are capital in nature. 6 primary groups appear in the profit & loss account.

1. CAPITAL A/C:- Partner’s capital A/c or Proprietor’s A/c               should be opened in this group. This group has sub group reserve     & surplus.

·         RESERVE & SURPLUS: - This group can accommodate             ledger for reserve generated such as investment allowance &           surplus from earning after disbursement of dividends etc.

2. CURRENT ASSETS: - This primary group and covers all the         assets which are grouped under six   groups.

·         BANK ACCOUNT:-This subgroup covers all the Bank                 Accounts current & saving A/c etc. in all the banks being                 maintained by the company. The bank in which our current &         savings A/c is there is opened under this group.

·         CASH IN HAND: - Cash A/c is opened in under this group it       is already provided it is a pre-defined group.

·         DEPOSITS (ASSETS):- These subgroups are for deposits.              Made by company for e.g. fixed deposits, saving deposits.

·         LOAN & ADVANCE ASSETS: - These subgroups are for the        ledger on all types of loans & advances given by company for          e.g. advances for purchase.

·         STOCK IN HAND: - These subgroups are to keep records of         opening & closing stock for accounting purposes. This data is           for internal accounting and no transaction takes place.

·         SUNDRY DEBTORS :- These subgroups are for keeping the          A/c’s of companies & parties to whom company sold goods on        credit thus for sundry debtor.

   3.CURRENT LIABILITIES: - This is a primary group in which the   liabilities of the company including statutory liabilities are                 maintained for e.g. funds Tax deducted at source (TDS),                   outstanding payment.

·         DUTIES & TAXES: - All the duties & taxes like excise duty,          sales tax both central & state maintained under this head.

·         PROVISIONS: - These subgroups are for keeping track of              various statutory & non-statutory provisions like income tax,            provident fund etc.

·         SUNDRY CREDITORS: - These subgroups are for keeping            the A/c of creditors of the company from whom goods are                purchased on credit. Thus to group sundry creditors.

4. FIXED ASSETS: - This is a primary group to keep track of all         the fixed assets of the company, such as value of machinery,           building & furniture.

5. INVESTMENTS: - investment made by company for e.g.               investment made in govt. bonds, share, debentures.

6. LOAN (liabilities):- This is a primary group and as the name           suggests it is meant to keep ledger on all loans taken by the               company and has three subgroup as below.

·         BANK O/D A/C (BANK OCC A/C):- The bank ledger from          which loan is being taken by this company is opened under this        group.

·         SECURED LOANS: - This subgroup is mean to keep track of        the loans taken by the company securities institution or banks          for e.g. debentures A/c.

·         UNSECURED LOANS: - These subgroups are mean to keep          unsecured loans taken by the company, from any party or                person including directors and partners or a bank for e.g. Bank        O/D.

7. SUSPENSE A/C:- This is a primary group to keep suspense 

   account and is mean to keep track of money paid or received by      the company for which the details of transaction are yet to                finalize.

   Most of advances fall into this category like advance given for          miscellaneous expenditure or travels advances for which details        will be available after the purchase bill.