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.

GROUPS & LEDGERS

Following are the ledger accounts & their groups :-

LEDGERS                                                      GROUPS

CAPITAL A/C                                                                                   CAPITAL A/C                            

DONATION A/C                                                                              CAPITAL A/C                                                                                 

INSURANCE A/C                                                                            CAPITAL A/C                                                                                                                  

INCOME TAX A/C                                                                          CAPITAL A/C                                                                                                              

BANK A/C                                                                                        BANK A/C                                                                                                            

BANK SAVING A/C                                                                        BANK A/C                                                                                                  

BANK OCC A/C                                                                               BANK O/D A/C

DENA BANK CURRENT A/C                                                        BANK A/C

BANK LOAN A/C                                                                            SECURED LOAN A/C                                                                                                           

 SALES A/C                                                                                      SALES A/C                                                                                                    

SALES RETURN A/C                                                                      SALES A/C                                                                                                             

PURCHASE A/C                                                                              PURCHASE A/C   

PURCHASE RETURN A/C                                                            PURCHASE A/C      

OPENING STOCK A/C                                                                  STOCK IN HAND A/C 

                                                                                                         

LAND & BUILDING A/C                                                              FIXED ASSETS A/C                                                                                                            

FURNITURE A/C                                                                           FIXED ASSETS A/C                                                                                                                   

MACHINERY A/C                                                                         FIXED ASSETS A/C                                                                                                         

COMPUTER A/C                                                                           FIXED ASSETS A/C 

VEHICLEA/C                                                                                 FIXED ASSETS A/C                                                                            

OCTROI A/C                                                                                  EXPENSES DIRECT A/C                                                                                                   

TRANSPORT A/C                                                                         EXPENSES DIRECT A/C                                                                                     

WAGES & HAMALI A/C                                                             EXPENSES DIRECT A/C                                                                                

CARRIAGE A/C                                                                            EXPENSES DIRECT A/C                                                                                           

LEGAL FEES A/C                                                                         EXPENSES INDIRECT A/C                                                                                                             

DEPRECIATION A/C                                                                   EXPENSES INDIRECT A/C                                                                                  

ELECTRICITY BILL A/C                                                            EXPENSES INDIRECT A/C                                                                          

TELEPHONE BILL A/C                                                               EXPENSES INDIRECT A/C                                                                             

OFFICE EXPENSES A/C                                                              EXPENSES INDIRECT A/C                                                                            

LOSS BY FIRE A/C                                                                       EXPENSES INDIRECT A/C                                                                            

RENT A/C                                                                                      EXPENSES INDIRECT A/C                                                                                         

ALL TAXES A/C                                                                           DUTIES & TAXES A/C                                                                                               

PRINTING & STATIONERY                                                      EXPENSES INDIRECT AC                                                               

TRAVELLING EXPS                                                                    EXPENSES INDIRECT A/C                                                                                  

DISCOUNT PAID A/C                                                                  EXPENSES INDIRECT A/C                                                                          

COMMISSION PAID A/C                                                           EXPENSES INDIRECT A/C                                                                   

INTEREST PAID A/C                                                                   EXPENSES INDIRECT A/C                                                                                     

COMPUTER REPAIRING A/C                                                   EXPENSES INDIRECT A/C 

VEHICLE REPAIRING A/C                                                        EXPENSES INDIRECT A/C                                                                                              

SHOP EXPENSES A/C                                                                  EXPENSES INDIRECT A/C                                                                                                             

VEHICLE INSURANCE A/C                                                       EXPENSES INDIRECT A/C

ADVERTISEMENT A/C                                                              EXPENSES INDIRECT A/C

INTEREST RECEIVED A/C                                                        INCOME INDIRECT A/C                                                                                                              

COMMISSION RECEIVED                                                        INCOME INDIRECT A/C                                                                                                                

DISCOUNT RECEIVED A/C                                                       INCOME INDIRECT A/C

GOLD ORNAMENTS                                                                  INVESTMENT A/C                                                                                  

SHARES OF BANK & CO. A/C                                                   INVESTMENT A/C

DEBENTURES A/C                                                                      SECURED LOAN A/C

PREPAID EXPS A/C                                                                     LOAN & ADVANCESA/C  

DEPOSITS TO LANDLORD A/C                                               DEPOSITS (ASSETS) A/C

SALES TAX RECEIVED A/C                                                      DUTIES &TAXES A/C

PACKING CHARGES RECEIVED A/C                                     DUTIES A/C                                 

LOSS IN SALE OF CAPITAL GOODS                                       CAPITAL A/C                                

OUTSTANDING EXPS A/C                                                          CURRENT LIABILITIES 

OUTSTANDING INCOME TAX                                                  CURRENT LIABILITIES                             

TEA EXPS A/C                                                                                MISCELLANEOUS EXPS A/C                                                                             

PROVISION FOR TAXES A/C                                                      PROVISION A/C                                          

BRANCH OFFICE A/C                                                                   BRANCH & DIVISION A/C

DRAWING/ WITHDRAWN A/C                                                    CAPITAL A/C

MR.SUDESH A/C (GIVER)                                                             SUNDRY CREDITORS A/C                                              

MR.SUNIL A/C (RECEIVER)                                                         SUNDRY DEBTORS A/C                              

                                                                                                                                                                                                                                                                                    

             

     

                                                                                                                  

                                                                                                                                                                                         

                                                                                                      

                                                                                                                                                                                      

                                                                             

ACCOUNT GROUPS & LEDGERS

ACCOUNT GROUPS & LEDGERS

LEDGER ACCOUNTS: Ledger accounts represent the assorted, 

summarized and balanced transactions of similar nature. For example, the ledger account conveyance represent the set of transactions related to conveyance represents the set of transactions related to conveyance expenses and their summarized net figure. All accounting transactions are linked to Ledger Accounts.  

ACCOUNT GROUPS: Account groups are just a convenient method of organizing the large population of Ledger Accounts into a tree structured hierarchical view for better understanding and interpretation.

              In Tally, you may organize accounts ledgers & groups in hierarchical way. There is no limit on depth of nesting, number of group/subgroups and number of ledger accounts that can be placed under a group/subgroup.  

RESERVED ACCOUNT GROUPS: As soon as you create a company, 

Tally auto creates 28 predefined Account groups called reserved 

account groups. Having specific properties and behavior in the 

system (these groups cannot be deleted) to maintain consistency 

and integrity of the accounting system representing assets, 

liabilities, income & expenditure. Of these 28 Reserved account 

groups, 15 are top level primary groups (the rest 13 are subgroups 

of one of these 15 primary groups). 

HOW TO CREATE LEDGERS ?

Today we will see that how to create "LEDGERS" ?
      After creating a company the "Gateway of Tally" window will open as below than in Account Info -  Ledgers you can create, alter or delete ledgers.