HOW TO CREATE A COMPANY IN TALLY?

Today we will see that how to create a company in "TALLY"?

To create a company profile in Tally, click create company at company info menu to get company creation screen as above:-

Company creation screen is divided into two sections.

1.Company particulars :- In top part, referred as company                particulars, you enter general information about the company.

2.Company Base Currency Particulars :-At lower part you enter    details of Base currency in which accounts of the company would    be maintained.

The screens display various fields which have to be filled with relevant information.

Name:- Type name for your company.

Mailing name & address:- Type full address of your company.

Statutory Compliance for:- Type state name. 

State:- Type state name.

Pin Code:- Type pin code (postal index number)

Telephone no:- Type telephone number.

E-mail:- Type Email address.

Currency Symbol:- Type currency symbol (i.e. Rs).

Maintain:- Tally displays two options: 

1) Accounts only

2) Accounts with inventory

Accounts only:- financial A/cs of the company only.

Accounts with inventory:- Both financial A/cs & inventory of the company.

Financial year from:- Type the financial year for the company. Tally consider 12 months from the date you give here as financial year for e.g. if you give 1st April 2014, your F.Y. will be April to March. In this case,ending with 31st March 2015.

Books beginning from:- Type actual date on which the business started and the A/cs actually being. This date should not be later date than the starting date of financial year.

Tally vault password:-  Type a password if you wish to maintain the company data.

Use security  control:- Type your name as an administrator and give a password.

Remember:- While working with Tally, you can press (Esc) to exit from any screen before the change you have made take effect.

RULES OF ACCOUNTS

Today we will see the rules of accounts:-

1.PERSONAL ACCOUNT:-

   It includes related to the natural & artificial persons. So the rule is

   Dr. The receiver

   Cr. The giver

2. REAL ACCOUNT:-

    It includes related to things, So the rule is

    Dr. What comes in.

    Cr. What goes out.

3. NOMINAL ACCOUNT:-

    It includes all profits & losses of the business

    Dr. All Expenses & losses.

    Cr. All incomes & gains.

    With the help of these three rules of accounts we can mainatain

a proper accounts in business.

 

TYPES OF ACCOUNTS

 The debit & credit is decided on the basis of some rules of double entry system. The rules can be explained as follows:-

TYPES OF ACCOUNTS

In double entry system the concerned accounts are classified in three types:-

1. Personal Accounts

2. Real Accounts

3. Nominal Accounts

1. PERSONAL ACCOUNTS:-

       In this type accounts of all people's i.e. artificial & natural persons are considered. Artificial i.e. Persons created by law. 

e.g. Bank, companies, Co-operative societies, Trusts, etc.

      Natural persons living persons means a human being. 

i.e. Mr.Joshi, Mrs.Kulkarni etc.

2. REAL ACCOUNTS:-

       In this type account of business properties, assets are considered. 

e.g. Cash A/c, Furniture A/c, Building A/c, Goods A/c etc.

3. NOMINAL ACCOUNTS:-

      In this type accounts of expenses and incomes of the business are considered.

e.g. Salary A/c, Rent A/c, Interest A/c, Commission A/c etc.

       

TRANSACTIONS LEDGERS

TRANSACTIONS LEDGERS

DEBTORS:-

        A debtor is a person who owes money to the business. A person from whom the amount is due, to the business.

JOURNAL:-

       It is day books transactions are recorded as soon as they are entered.

LEDGER:-

       In ledger different A/c's for each party assets is maintained for e.g. Purchase A/c, Sales A/c.

CREDITORS:-

        A creditor is a person to whom money is owed. A person to whom amount is to be paid from business.

DOUBLE ENTRY SYSTEM:-

     The system used for recording transactions is known as Double Entry System. According to this system every business transactions affects on minimum two accounts of the business. On the basis of this assumption, at the time of accounting every business is recorded under two different accounts.

ENTRY:-

    Writing of the transactions in the books of accounts is called as entry.

DEBIT/CREDIT:-

    While accounting i.e. recording the transactions, the expenses and incomes are recorded in two different parts or sides of the account. Each account has two different sides. The left side indicates 'Debit' and the right side indicates 'Credit'.
e.g. each cash receipts and cash payments of the business are recorded in 'Cash Account'. Cash receipts of the business are recorded on the left side of the cash a/c, whereas Cash payments are recorded on the right side of the cash a/c.
    If any transaction is recorded on the left side of the cash account it is termed as 'the account is debited', whereas if any transaction is recorded on the right side of the cash account it is termed as 'the account is credited'.  

TRANSACTIONS LEDGERS

Let us learn again some ledgers used for transactions 

LIABILITIES:-
The amount payable to other parties from the business e.g.amount payable to creditors, Bank loan, payable interest etc.

CAPITAL:-
Investments made by the owner into business. The investments can be in terms of cash, goods, assets, etc.

NOTE:- In accountancy, capital means the amount or loan given by the businessman to the business. So the capital is treated as a kind of liability (the amount payable) of the business.

DRAWING:-
Total amount of goods, cash or any other assets withdrawn by the proprietor from the business for his personal use are called Drawing.

DISCOUNT:-
1. Trade Discount:-
               Trade discount does not appear in books of A/c. for e.g.purchase of worth Rs.600/- @ Rs.400/- thus trade discount of Rs.200/- is provided.

2. Cash Discount:-
             Cash discount appears in the books of A/c. 
for e.g.  Received from Raj Rs.1000/- less 2% cash discount. Thus cash of Rs.20/- provided.

TRANSACTION LEDGER INFO

GOODS:-
       The term goods means articles,commodities, things that are regularly sold and purchased in the business.The business and its profit or loss mainly depends upon the sale and purchase of goods, e.g.For fruit seller, different fruits are goods, whereas for milk seller milk is the goods.
       According to milkman, if milk sold & purchased it called as the goods sold and purchased. But if milkman purchase a bicycle for distribution of the milk; the bicycle will not be termed as 'goods' of the business.He deals regularly with milk and not the bicycles.
ASSETS:-
They are valuable & realizable (which can be sold & used to raise funds for business) properties of the business.Everything owned by the business and that can be converted in funds is an assets of the business. e.g.in the above case of milkman, the bicycle will be asset of his business.

NOTE:- {There is difference between 'Goods & Assets' though both of them are sold. Goods are sold regularly whereas assets are sold rarely.}

TRANSACTIONS

We have studied that Accounting means systematic recording of business transactions. So an 'Account' is termed as 'The systematic record of every item related to business.'

• Business Transactions                                                                                                                Every business is a combine effect of different transactions i.e. Business transactions goods  purchased, goods sold, received cash, paid cash, etc. So business transactions means any transaction  which is directly related with the business and which affects the profit or loss of the business.       e.g.goods purchased, salary paid etc.
• Cash Transactions                                                                                 A transaction in which goods, assets or services are purchased or sold against immediate cash, is called "Cash Transaction".
• Credit Transaction                                                                              A transaction in which goods and services are purchased   or sold on credit. i.e. certain value of the goods and service is     payable or receivable in future is called as credit transactions.

WHAT IS ACCOUNTING ?

         

   WHAT IS ACCOUNTING ?

               When we start any business, we expect some "PROFIT" from it, A businessman is always interested in earning more and profit. He keeps the record of each and every business activity, dealing in the books of accounts. These daily activities, dealings, events in the business is called as 'Day to Day Business transactions' in professional language.
          This process of day to day recording of business transactions is called "ACCOUNTING". 
          So accounting can be termed as. 'Recording the day to day business transactions.

WHY ACCOUNTING IS NECESSARY FOR EVERY BUSINESS ?
         We can get the following advantages of 'Accounting' .
1.Accounting gives us information about Profit or Loss of the            business for a particular period. Generally profit or Loss is        calculated for the month or for the year for a day or for a week.
2.Accounting informs us about overall financial position of the            business such as :-
   a) The amount payable to other parties.
   b) The amount due from other parties for business.
   c) Information about capital of the business.
   d) Information about assets of the business.
3.Accounting informs us not only the amount of profit or loss but        also the reasons behind it.
   Thus Accounting is helpful for the business.So every businessman always keeps the systematic records of day to day business transactions.

WHAT IS TALLY?

In each & every business field we have to maintain the daily transactions of business,to do daily transactions of our business we need a day to day account books after all each & every person will do work or business to earn money &  where is the money there will be accounting.

Tally is the simple way to maintain our day to day business
transactions, it makes our work easier and also helpful to
manage our business, Tally ERP is an advanced step to
maintain our business accounts of each field.