CHAPTER-1

INTRODUCTION
OR
ABOUT THE TOPIC

INTRODUCTION TO TALLY
Tally is a very popular financial accounting package. It is developed by
Peutonics India Pvt. Ltd. in 1995. It allows the user to create a company,
creation accounts, make voucher entries and print reports financial accounting
software is used to store and maintain daily business transaction lie purchases,
sales, receipts, payments, purchased return, sales return, deposits and
withdrawals etc.

In computerized accounting there are a lot of packages available in the market.

Some examples :

Munim ji
Win CA
Busy
Accounts Leader
Tally
But tally is most popular software.
The version of tally are
Tally 4.5
Tally 5.0
Tally 5.4
Tally 6.3
Tally 7.2
Tally 9.0

GOLDEN RULES OF ACCOUNTS

Personal Accounts (Bank's/Person's Name)

Debit the Receiver

Credit the Giver
Real Accounts- (Cash, Goods, Assets)
Debit what comes in
Credit what goes out
Fictitious or Nominal Accounts (Salary, Discount, Rent if paid then Dr.
Discount, Commission- if received then cr.)
Debit all expenses and losses
Credit all Income/gains

FEATURES OF TALLY
A- Accounting Features
Accounting without CODES lets you define unlimited levels of
classification, with regular names (no more inconvenient account codes), so that
you can manage the most complex ledgers with ease.
Job Costing Unified Ledgers integrates your general, sales and
purchase ledgers into a single ledger, organised in groups, for easy management.
Complete Bookkeeping enables you to record all types of transactions
including receipts, payments, income and expenses, sales and purchases, debit
notes, credit notes, adjustment journals, memorandum journals and reversing
journals.
Comprehensive Accounting lets you instantly obtain your balance
sheets, profit & loss statements, cash and funds flows, trial balances, and others.
Multi-currency Accounting offers you flexibility of multiple
currencies in the same transaction and allows viewing of all reports in one or
more currency. Tally meets the fundamental criteria set out for EMU handling.
Receivables and Payables enables you to: Dynamically allocate
payments against invoices with reference to due dates.
Payment Performance of Debtors helps you identify troublesome
debtors and persistent late payers, thereby helping you take the right decision.
Ratio Analysis offers you a birds eye view of your company, through a
single sheet performance analysis, based on a range of key performance ratios.

B-Inventory Features
Multi-location Stock Control helps you manage simple singlelocation, or complex multi-location stocks, with unlimited classification systems
for your items, and your own units of measure.
Multiple-location Warehouse Management helps you track stock
movement; allowing you to decide which warehouse to ship from depending on
stock position.
Flexible Units of Measure helps you track stock, irrespective of the
units of measure. For example, when you buy in tons and sell in kilograms or
buy in crates and sell as pieces.
Comprehensive

recording

of

stock

movement

lets

you

comprehensively record all sorts of inventory transactions, using the inventory

voucher forms.
Varieties of Management Reports gives you party-wise details of
goods bought and sold and help you identify customer buying patterns, through
movement analysis.
Stock Ageing identifies stocks based on age, thus helping you to
dispose off old stocks quickly.
Batch-related Stock Reports helps you exercise stock control at the
level of batches, by generating reports such as batch-wise reports and expiry
date based details.
Multiple Price Levels - allows you to pre-define item rates for specific
categories of customers, enabling faster and error-free invoicing and data entry.

C-General Features
Payroll lets you automate the management of your employee records
including visa and employment contract management.
Job Costing enables you to generate profitability statements for each
project executed, including financial and material resource apportionments,
wherever applicable. .
POS Invoicing allows faster data entry and printing on 40 column
continuous stationery. It also provides barcode support.
Flexible Financial Periods allows you to break away from inflexible
accounting years and perform all accounting functions in Tally for time-periods
that suit your convenience.
Unlimited Companies allows you to create and maintain up to 99,999
companies, concurrently.
Data Synchronisation helps you synchronise and update data across
multiple locations.
Consolidation of Companies - enables grouping of companies and
provides consolidated reports.
Unlimited levels of classification facilitates ledger classification and
re-classification as required.
Advanced MIS helps you compare information in order to understand
and analyze performance levels for various periods or divisions.
Drill Down Facility helps you drill down or instantly update from any
report starting from the Balance Sheet down to Vouchers, or vice versa.

CHAPTER-2
OBJECTIVE
&
SCOPE OF THE STUDY

scope OF TALLY
Tally is an accounting software which is widely accepted in India and
around 17 countries. The maker is located in Banglore namely Tally Solutions
India Pvt. Ltd.
Manual accounting is the base and traditional method to record the
financial transactions. but as the economy grows as well as financial world, the
traditional method gets through the backdoor.
Tally provides the platform to record the financial transaction with so
much ease. Tally is so designed that it is understandable to any kind of people
irrespective of the field that they have. as the growing need and competitive
world, tally also improvises its versions keeping the base same by doing tally
course, you can keep your first step towards the financial world.
Most of the companies uses to record the transactions in tally software. so
we can say that the demand of tally professional is also growing. by merely
taking two or three months training, we can start earning of Rs. 2500 or Rs.
3000 as an account assistant. the undergraduate students can also opt training
and start their job. although the remuneration is meagre but it will help in
building the bundle of experience and after completion of graduation we will
get the handsome salary from the companies.
Tally is the means to achieve the end, the end is to become the financial
professional.
so take the first step towards the finance profession by getting the
knowledge of tally.

OBJECTIVES & IMPORTANCE OF TALLY

Easy Maintenance: First and the most important advantage that you can
have by using this software is that you will be able to maintain (you even
dont need our maintenance service!) it easily.
Complete Answer: The second advantage that you can have by
using Tally.
Modules: You can easily keep a check and maintain the record of your
purchase and sale to any specific customer.
Internet Support: The biggest advantage you will have is that you can
use the internet option too.
Reliable, Quick and User Friendly: One thing that will attract you a lot
about Tally.ERP is that it is very much user friendly, quick and reliable to
perform its task.
Various Language Supports: One thing that attract the international
companies to choose Tally is its multi language support.
Object Oriented Database: Tally is having a fully operational object
leaning database.
Unique

Features: There

are

certain

special

features

that Tally.ERP possess, which none of its competitors has..

Safety Choices: One thing that every business owner would want is to
make sure that his data will be secured and no one can get access of his
data.
Visual Analysis and LAN set-up: You can also step up your accounting
software using LAN connection.
9

CHAPTER-3
BRIEF PROFILE
OF
THE FIRM AND THE
SUPERVISOR

10

PROFILE OF FIRM
Navdeep Maheshwari & Associates, Chartered Accountants, is the fastest
growing accountancy firm having conglomerate of all levels of intelligence,
knowledge, dedication and professionalism. Our company is one of the leading
Accounting & Auditing Firm having its head office at Delhi, India. Established
in the year 1981 by Navdeep Maheshwari & Associates, Founder and the seniormost Partner, its intent has always been to provide superior services and excel in
everything it does. The Founder with his magnificent experience, illustrious
skills, level-headed approach and allegiance has been able to make NM a great
success by making it grow in its clientele and its operations around the globe.
Having standing of more than 30 years and vast experience in Accounting,
Auditing, Finance, Taxation, Investments and other related fields its endeavor
has always been to do the best and to be the best.
In todays scenario with competition at its hype, our company has been
able to outskirt all major challenges in the profession and has always been
known for its commitment in the industry. We have always been a vanguard in
our field and have kept ourselves updated with current Laws and upcoming
opportunities and forth most the changing technology. We stand for quality,
prompt and timely delivery of our professional services. Our style of working
has always been appreciated by our clients as we prefer to be clear and
transparent in all working and efforts. We aim at preserving our goodwill and
delivering the quality. Our team comprises of young, energetic, innovative,
forward-looking and progressive professionals.

11

APPROACHABILITY & INFRASTRUCTURE

Approach
Our office is located in centre of Amroha connecting all major business
hubs in Amroha. Our preferred location has always been appreciated by our
clients.
We have wide office space with fully computerized environment,
spacious cabins and well furnished space for staff to work efficiently in a
peaceful environment.
Infrastructure
Our office is equipped with Computers, Laptops, high speed data and
internet connectivity cables, separate dedicated server for preserving clients
data, meeting room, CCTV cameras, projector machine and various other
devices to ensure confidentiality of data of our clients.

PROFILE OF SUPERVISOR
Navdeep Maheshwari is proprietor at Navdeep Maheshwari & Associates
in Amroha. He is very good C.A. having a lot of experience and knowledge.
Current- Navdeep and Associates
Education - Maharshi Dayanand University.
Background
EXPERIENCE
Feb 1998- Present (16 years)
Having a wide experience of Audit and specialized in Audit of
Educational Institutional other than bank audit and allied work.
12

CHAPTER-4
PRESENT WORK

13

FIRST SCREEN :Tally ERP Icon

Please double Click on Tally ERP9 Icon or select and press enter on Tally ERP9
Icon to start the Tally ERP Program.

14

SELECT COMPANY:Main Screen

Enter on Select or Press S to open the desired company.

15

CHOOSE COMPANY

Choose the Relevant company from the list and press enter.

16

GATEWAY OF TALLY :-

At this screen, it can be seen as to which company is open, period of operation,

current date and the date of last entry.

17

ALTER COMPANY/ CREATE NEW COMPANY :-

After pressing Alt-F3, the company info screen is displayed, in which options
for Altering company master data, backup etc are seen (Alter).

18

1. Started business by cash 1,00,000

2. Paid to HDFC Bank, 20,000
3. Purchased furniture from Ram 10,000
4. Paid to Ram 10,000
5. Purchased computer by cash 10,000
6. Purchased stationary by cash 100
7. Paid to wages 100
8. Goods Purchased from Rahul 10,000
9. Goods Purchased to Rahul 2000
10.Paid to Rahul 8000
11.Goods Purchased from Babu 10,000
12. Paid to Babu 9800 Discount Income 200
13. Goods sold to Ravi 15,000
14.Goods Returned by Ravi 5000
15.Cash received from Ravi 9500 Discount exp. 5000
16. Paid to salary 1000. office rent, 200, wags 100
17.Withdraw cash for personal use 1000
18.Withdraw cash for domestic use 2000
19.Withdraw goods for personal use 1000
20.Cash Withdraw from PNB Bank 2000
21.Paid to charity 100
22.Cash received for Interest 1000
23.Cash paid for computer repair 300
24.Paid to interest 500
25.Loan received from HDFC Bank 50,000

19

S.N.
1
2
3

4
5

7
8
9
10
11
12

Particulars

L.F.

Cash A/c
To Capital A/c
(Being Started Business by cash)
HDFC Bank A/c
To Cash A/c
(Being paid to HDFC Bank)
Furniture A/c
To Ram A/c
(Being Purchased Furniture from
Ram)
Ram A/c
To Cash A/c
(Being Paid to Ram)
Computer A/c
To cash A/c
(Being Purchased Computer by
cash)
Stationary A/c
To Cash A/c
(Being Purchased Stationary by
cash)
Wages A/c
To cash
(Being paid to wages)
Purchased A/c
To Rahul A/c
(Being Goods Purchase from Rahul)
Rahul A/c
To Purchased
(Being goods returned to Rahul)
Rahul A/c
To Cash A/c
(Being paid to Rahul)
Purchased A/c
To Babu A/c
(Being goods purchased from Babu)
Babu A/c
To Cash A/c
To Discount
20

Dr. (Amt.)
1,00,000

Cr. (Amt.)
1,00,000

20,000
20,000
10,000
10,000

10,000
10,000
10,000
10,000

100
100

100
100
10,000
10,000
2000
2000
8000
8000
10,000
10,000
10,000
9800
200

13
14
15

16

17

18

19

20
21
22
23

(Being paid to Babu)

Ravi A/c
To Sale A/c
(Being Goods Sold to Ravi)
Sale A/c
To Ravi A/c
(Being Goods Returned by Ravi)
Cash A/c
Discount A/c
To Ravi
(Being cash received from Ravi)
Salary A/c
Office rent A/c
Wages A/c
To Cash A/c
(Being paid to salary, office rent and
wages)
Drawing A/c
To Cash
(Being withdraw cash for personal
use)
Drawing A/c
To cash A/c
(Being withdraw cash for domestic
use)
Drawing A/c
To Purchases A/c
(Being goods withdraw for personal
use)
Cash A/c
To PNB
(Being cash withdraw from PNB)
Charity A/c
To Cash A/c
(Being cash paid for charity)
Cash A/c
To Interest A/c
(Being cash received for interest)
Computer Repair A/c
To Cash A/c
21

15,000
15,000
5000
5000
9500
500
10,000
1000
2000
100
3100

1000
1000

2000
2000

1,000
1,000

2000
2000
100
100
1000
1000
300
300

(Being cash paid for computer

24
25

Repair)
Interest Paid A/c
To Cash A/c
(Being cash paid for interest)
Cash A/c
To Loan from HDFC
(Being loan received from HDFC)

22

500
500
50,000
50,0000

SHORTCUT KEYS IN TALLY

Windows
F1
F2
F3
F4

Functionality
To select a company
To change the menu period
To select the company
To select the Contra voucher

Availability
At all masters menu screen
To change the menu period
To change the menu period
At Accounting / Inventory
Voucher creation and alteration

F5

F6

F7

F8

To select the Payment

screen
At Accounting / Inventory

voucher

Voucher creation and alteration

To select the Receipt

screen
At Accounting / Inventory

voucher

Voucher creation and alteration

To select the Journal

screen
At Accounting / Inventory

voucher

Voucher creation and alteration

To select the Sales voucher

screen
At Accounting / Inventory
Voucher creation and alteration

(CTRL+F8) To select the Credit Note

F9

(CTRL +
F9)
F10

screen
At Accounting / Inventory

voucher

Voucher creation and alteration

To select the Purchase

screen
At Accounting / Inventory

voucher

Voucher creation and alteration

To select the Debit Note

screen
At Accounting / Inventory

voucher

Voucher creation

To select the Reversing

and alteration screen

At Accounting / Inventory

Journal voucher

Voucher creation and alteration

screen
23

F11

To select the Functions and

At almost all screens in TALLY

F12

Features screen
To select the Configure

At almost all screens in TALLY

ALT + 2

screen
To Duplicate a voucher

At List of Vouchers creates a

voucher similar to the one where
you positioned the cursor and

ALT + A

used this key combination

At List of Vouchers adds a

To Add a voucher

voucher after the one where you

positioned the cursor and used
ALT + C

ALT + D

To create a master at a

this key combination

At voucher entry and alteration

voucher screen (if it has not

screens, at a field where you have

been already assigned a

to select a master from a list. If

different function, as in

the necessary account has not

reports like Balance Sheet,

been created already, use this key

where it adds a new column

combination to create the master

to the report)

without quitting from the voucher

screen.
To delete a voucher & Master At Voucher and Master (Single)
alteration screens. Masters can be
deleted subject to conditions, as

ALT + C

To create a master at a

explained in the manual.

At voucher entry and alteration

voucher screen

screens, at a field where you have

to select a master from a list. If
the necessary account has not
been created already, use this key
combination to create the master
without quitting from the voucher
24

ALT + E

screen.
To export the report in ASCII, At all reports screens in TALLY

ALT + I

SDF, HTML OR XML format

To insert a voucher
At List of Vouchers inserts a
voucher before the one where you
positioned the cursor and used

ALT + R
ALT + S

To remove a line in a report

To bring back a line you

this key combination.

At all reports screens in TALLY
At all reports screens in TALLY

ALT + X

removed using ALT + R

To cancel a voucher in Day

At all voucher screens in TALLY

CTRL + A

Book/List of Vouchers
To accept a form wherever

At almost all screens in TALLY,

you use this key combination, except where a specific detail has
that screen or report gets

to be given before accepting.

accepted as it is.

25

SELECT F4 KEY FOR CONTRA ENTRY

Contra Entry
Amount withdraw from the Bank
Cash A/c
To Bank A/c
Amount Deposited in to Bank
Bank A/c
To Cash A/c
Transfer from PNB to HDFC A/c
HDFC A/c
To PNB A/c

26

Dr.
Dr.

Dr.

ACCOUNTS WITH INVENTORY

If we want item wise details at the time of purchase or sales entries we
use accounts with inventory option at the time of co-creation.
If we want to change in procreated company than we can select Alt option
from company info screen gateway of tally & than change maintain option
accounts only two accounts with inventory.
Item DetailsFor providing the item details first we can creates units or items.
Units of measurement
Select inventory info at gateway of tally window

Select units of measure

Select create option

Provide units name under symbol option
Item CreationNow we can create list of item which are belong to our business as-Sugar,
rice, metals as pipes, wires LTR as milk, mustered oil.
For item detail select inventory info at gateway of tally stock items
option.

Create
27


Provide name and units
Purchase of inventory items
Name of Items

Quantity

Rate per

Sugar

57kg

35.00kg

Rice

150kg

73.00kg

Pipes

1500mtr

17.00mtr

Wires

780 mtr

12.00mtr

Milk

60 ltr

42.00ltr

Mustered Oil

60 ltr

78.00 ltr

Name of Items

Quantity

Rate per

Milk

10ltr

44.00ltr

Mustered Oil

15ltr

85.00ltr

Pipes

120mtr

20.00mtr

Rice

25kg

80.00kg

Sugar

25kg

38.00kg

Wires

80mtr

15.00mtr

Sales of Inventory Items

28

Configure
F12 configure is used to configure settings for various applications
available in Tally. Before starting work on the company. It is available to
configure it by pressing F12 configure button configuration settings affect all
companies maintained in the some data directory and setting configuration for
one company will affect other companies in that data directory.
Master Configuration
Master configuration is used to set the details that should appear in the
account masters. This is available in the accounts and inventory masters screens
through the F12 Configure button and can be modified as per requirement.
Voucher Configuration
This is used to configure features while making vouchers entry go to
gateway of tally > F 12 configure > voucher entry.
F11 Features
F11 features is used to modify the various features of a company. This
button is available is most applications of tally. The company features are
specific to the current company only and this each company may have different
features activated.

29

CHAPTER-5
RESULTS
&
DISCUSSION

30

RESULTS
Tally is a accounting software which made over work very easy. Through
the work done on tally we have seen that every coin has two sides i.e. pros and
cons. Therefore tally also have advantage and disadvantage which are explain
belowAdvantages of Tally ERP 9 Software
Tally ERP 9 Software is a complete accounting solution with inventory
and payroll management features. It has everything you need to maintain your
business from tip to toes. Although it is a desktop based software; you can also
have a quick look on any particular accounts, add your purchases or handle
financial management online from anywhere in the globe. Even if you have a
group of company with hundreds of offices or retail stores you can easily gather,
synchronize and evaluate data from multiple locations with only one Tally ERP
9 software. Millions of companies have been using the software for reliability
and safety; now its your turn to choose or not.
Who are the users of Tally ERP 9 software?
More than 2 corers of users uses Tally accounting software around the
world. In addition, 70% of companies using accounting software use Tally in
Bangladesh.
Why it is so popular?
The main reason behind its popularity is that it is very user friendly.
Anyone can maintain his company accounts with this software and find out
necessary information with a few clicks.

31

Disadvantage
Softwares provide us the easiest way to perform work related tasks in an
easy way. Earlier, the businesses have to spend different time consuming
resources to manage the accounts but now accounting softwares made the job
easier to keep large amount of accounts data. Tally accounting software is
beneficial for the professional accountants but it has some disadvantages.
1. Not user friendly at all, one has know accounting knowledge in order to use
Tally accounting software in Pakistan.
2. There is no major graphical improvement in old version of Tally. The Indian
head office of Tally is continuously launching new version from Tally 4.5
to Tally 9 ERP but the GUI interface is still like old DOS based
accounting software.
3. Journal Voucher can not be amended once created.
4. Batch wise invoicing not possible in Tally accounting software.
5. Re-order level of inventory stock can not be maintained in Tally erp software.
6. Last price inquiries is a complex task in Tally ERP software.
7. Pricing issues like supplying different customer at multiple price list is quite
difficult in Tally accounting software.
8. Cost wise Tally is quite expensive as compare to other alternative accounting
software in Pakistan.
9. We can not open two accounting ledgers for viewing at the same time in Tally
10.

erp software.
Its a Package software not an ERP i.e we have to accept what they are

11.
12.

offering and customization is very limited.

No web based option available in Tally erp software.
If the user password is lost then the data retrieval is very difficult and
time consuming.

32

CHAPTER-6
CONCLUSION
&
FUTURE SCOPE

33

CONCLUSION
From the training we have done in the firm upon the accounting software
'Tally' we have concluded
1. Tally has some advantages and disadvantages
2. From the work done upon tally we have seen that, the problems we have
faced in the past Decate the manual accounting conducted where all the
record keeping of data, processing and report generating conduct
manually. Because of manual working there are chances of so many erros
during the process.
3. To remove the errors in manual accounting we can use tally software to
make over accounting process so easy to store, process and reporting
task.
4. Tally is a software which provided so many positive point over manual
accounting and provide easy way to generate year ending reports and
accounts statements.

34

FEATURE SCOPE
Tally is an accounting software which has a lot of demand in todays time.
It is a complete business accounting software which can we managed will
small and medium size business.
The scope of pursuing tally depends on our interest.
Gone are the days of using pen and pencil for book-keeping to manage
the accounts. Tally is an extraordinary approach to keep the track of
accounts in a company. Tally is an ideal accounting software and it keeps
track of all types of accounting records like ledgers, vouchers, delivery
notes, receipt notes, purchases, sales, credit notes, debit notes and etc.
It is a special software program fit for simple as well complex accounting
challenges. It is one of the best methods as it makes use of double entry
method of accounts that will eradicate all probable errors and glitches.
This software is easy to understand and use.
Over 4 million companies are using accounting software program that
enables financial statements and automatic charts. This course is focused
on understanding and learning of basic accounting terms, accounting
principles, concepts and conventions, double entry system, modes of
accounting and preparation of financial statements.
The course also covers an introduction to various types of business
organizations, accounting on computers, Tally fundaments which includes
learning of Tally features and its functionality.

35

ELIGIBILITY
To be eligible for this program, one must have cleared 10+2 and one
should also have the basic knowledge of computers.
CAREER PROSPECTS
This program opens up various avenues for students. After the completion
of the program, as a fresher you can begin your career as:
Accounts executive
Junior accountant
Data entry operator
Accounts assistant
Tally operator
Accountant trainee

36

REFERENCES
S.N
.
1.
2.
3.

Title
Mastering tally ERP9
Complete Tally

Authors

Edition

Dinesh Maidasani
A.K. Naudani & K.K.

2011
2007

Nandani
Rakesh Sangwan

Ist Edition

Tally 9 (Guided to tally 9)

2007

37