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1 TALLYSTEP 1: CREATE company

On gateway of tally press Alt + F3. You got company information menu select

create company option. You get one form. Fill the form and at last accept.

If you maintain inventory in business put business

type as Accounts with Inventory. If you dont maintain inventory put business type

as Accounts only.

Inventory means Commodities or Articles purchased by the trader for the purpose

of resale. If any thing purchased by trader and resale then that is inventory.

Inventory purchased by trader for the purpose of resale.

Asset

purchased

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by trader for

the purpose

of use.

Ex:- For

electronics

shop

inventory is

T.V.s,

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steplaizers

and

electronics

goods but

the

Furniture

and Fixtures

are Assets.

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STEP2:

LEDGER

CREATION

Business

Transactions

: It refers

to any

transactions

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, dealing or

even, which

involves

transfer of

money or

moneys

worth

between two

parties.

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Events like

purchase

and sale of

goods,

receipts and

payments of

cash etc.,

are

examples of

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business

transactions

.

For

journalizing

a

transaction,

i.e., for

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passing an

entry in the

Journal the

following

steps

required to

be taken.

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(i) First as

certain the

two / three

accounts

involved in

the

transaction. Seethe nature of the accounts involved.

Figure 1

Gateway of tally

Accounts Info.

Ledger

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Single creation

Create

You get ledger creation form. Write the name of Ledger in name column and

decide the group concerned to Ledger. There are predefined groups in the tally.

Ledger Name GroupPurchase Account Purchase Account

Purchase Return A/c Purchase Account

Carriage In Words(Carriage on Purchase)

Direct Expense

Duty and Clearing Charges Direct Expense

Direct, Productive or Manufacturing

WagesDirect Expense

Factory Rent & insurance Direct Expense

Motive Power Direct Expense

Coal, Gas, Water Direct Expense

Factory Lighting` Direct Expense

Factory Expense Direct Expense

Manine insurance Direct Expense

Dock Expense Direct Expense

Sales Account Sales Account

Sales Return Account Sales Account

Administrative ExpenseOffice Salaries Indirect Expenses

Office Rent, Rates, Taxes Indirect Expenses

Office Lighting Indirect Expenses

Office Insurance Indirect Expenses

Printing & Stationary Indirect Expenses

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Postage and Telegram Indirect Expenses

Legal Expenses Indirect Expenses

Audit Fees Indirect Expenses

General Expenses Indirect Expenses

Repairs & Renewals Indirect Expenses

Bank Charges and Commission Indirect Expenses

Telephone Charges Indirect Expenses

Staff Expenses Indirect Expenses

Selling and distribution expenses Indirect Expenses

Godown Rent and Insurance Indirect Expenses

Packing Expense Indirect Expenses

Advertising Indirect Expenses

Bad Debits Indirect ExpensesTraveling Expenses Indirect Expenses

Discount allowed Indirect Expenses

Brokerage Indirect Expenses

Free Samples Indirect Expenses

Carriage Outwards

(Carriage on Sale)Indirect Expenses

Delivery expenses Indirect Expenses

Packing Expenses Indirect Expenses

Subscription Indirect Expenses

Travelers Salary Indirect Expenses

Financial Expenses

Discount Allowed Indirect Expenses

Interest on Capital Indirect Expenses

Interest on loan Indirect Expenses

Maintance & Depreciation

Repairs to buildings Indirect Expenses

Repairs to Furniture Indirect Expenses

Repairs to Machinery Indirect Expenses

Depreciation Account Indirect ExpensesProvisions

Provisions for Resure for Doubtful debts Indirect Expenses

Provisions for Discount on Debits Indirect Expenses

Any Administrative or Provisions Indirect Expenses

Income

Discount Received Indirect Income

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Commission Received Indirect Income

Interest Received Indirect Income

Rent Received Indirect Income

Dividends Received Indirect Income

Income from Investments Indirect Income

Discount on Creditors Indirect Income

Bad Debts Recovered Indirect Income

Appreciation Account Indirect Income

Profit on Sale of Assets Indirect Income

Sundry income or recurring Indirect Income

Land & Buildings Fixed Assets

Machinery Fixed Assets

Furniture & Fixture Fixed AssetsSundry Debtors Sundry Debtors

Bill Receivable Current Asset

Good Will, Patents, Trade mark Intangible Assets (Fixed Asset)

Security Deposit (Given) Deposit (Assets),(Current Asset)

Deposit Received Current Liabilities

Loan given Current Liabilities

Loan Taken Loans & advances (Current Asset)

Advance Salary Loans & Advances (Current Asset)

Telephone Deposit Deposit (Asset)

Accrued Interest Current Asset

Capital Account Capital Account

Sales Tax & excise duty Duties and Taxes

Any expense payable Current Liability

Drawings Capital Account

Income Received in Advance Current Liability

INVENTORY INFORMATION:

Inventory or Goods: It refers to Commodities, articles or things in which a trader

deals. Goods refer to Commodities or things intended for resale. Unsold goods

lying in a business concern on any given date are called Stock.

Inventory are the goods which are purchased by the trader for the purpose of resale.

Gateway of Tally

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Inventory information

Step 1 Stock group

Name : Finished goods

Under : Primary

Accept

Inventory info

Step 2 Units of measure

Symbol: Nos.

Formal Name: Numbers

Accept

Inventory info

Step 3 Inventory name: Washing Machine

Under Group : Finished goods

Units :Nos.

Accept

Given opening balance if any.

Voucher Entry

F2 Date: To give the date of voucher

F4 Contra: This voucher is used for below transactions

1. Deposited cash in Bank

By bank a/c Dr.

To Cash a/c

2. Withdraw cash from bank for office use

By Cash a/c Dr.

To Bank a/c

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3. Opening Bank account in SBH

By SBH a/c Dr.

To Cash a/c

F5 Payment: This voucher is used to give payment

1. Paid Direct Expenses or Indirect Exp.

2. Paid to Sundry creditor

3. Given loans & advances to somebody,

When cash is getting amount from business this voucher is used. Cash account

should be credited and opposite a/c should be debited purchase or fixed assets on

cash basis also considered.

F6 Receipt: This voucher is used to take receipts.

1. Received Direct and indirect income

2. Received from sundry debtors.

3. Taken loan / advances from somebody.

When cash is getting into business this voucher is used cash account should be

debited and opposite account should be credited. Selling of fixed assets on cash

also considered.

F8 Sales: This voucher is used to sale only inventories.

Whether the inventory sale on credit or cash basis. Assets on cash / credit should

not be taken in this voucher. If Inventory sale on cash basis then cash account

should be Debited or else on credit party account / Sundry Debtor account should

be debited. In this voucher sales account always credited.

1. Inventory sale on cash basis

By cash a/c Dr.

To Sales a/c

2. Inventory sale on credit basis

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By Party name a/c Dr.

To Sales a/c

F9 Purchase: This voucher is used to purchase only Inventories whether on Cash

basis / Credit basis. If inventory purchase on cash basis then Cash account should

be credited or else party account / Sundry creditor account should be credited. In

this voucher purchase account always Debited. Fixed assets purchased on cash /

credit basis should not be taken in this voucher.

1. Purchase inventory on cash basis

By Purchase a/c Dr.

To cash a/c

2. Purchase inventory on credit basis

By Purchase a/c Dr.

To Party a/c or Creditor a/c

F7 Journal: In this voucher below transactions are taken

1. Opening Entries

2. Closing Entries

3. Rectification Entries

4. Adjustment Entries

5. Asset purchased on credit.

6. Cancellation Entries

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INVENTORY INFORMATION:

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