FUNDAMENTALS OF

TALLY ERP 9
Prepared by
Krishnakumar

WHAT IS ACCOUNTING

Accounting is a process of

Identifying
Recording
Summarizing
Reporting

Economic information for decision

making for finalizing the financial
statement.

Accounting helpful for

Suppliers
Customers
Employees
Banks
Suppliers of equipment`s, buildings
and other assets
Owners

TYPES OF ACCOUNTING

Real account

Personal account

Nominal account

TYPES OF ACCOUNTING

Real accounts

1. It is relating to properties and assets

owned by the business concern.

2. It include tangible and intangible

accounts.

3. Land, building, goodwill, purchases,

cash.

TYPES OF ACCOUNTING

Personal account

1. It is relating to a person

2. Suppliers, lenders, customers

TYPES OF ACCOUNTING

Nominal account

1. it is related to income and

expenses

2. salary, dividend, sales,

GOLDEN RULES

REAL ACCOUNT

1. DEBIT WHAT COMES IN

2. CREDIT WHAT GOES OUT

GOLDEN RULES

PERSONAL ACCOUNT

1. DEBIT THE RECEIVER

2. CREDIT THE GIVER

GOLDEN RULES

NOMINAL ACCOUNTS
1. DEBIT ALL EXPENSES &

LOSSES
2. CREDIT ALL INCOMES &

GAINS

ILLUSTRATION
1. Albert starts business with Rs. 50,000.
2. He opens a SBI saving bank account and deposits Rs. 20,000.
3. Bought furniture for Rs. 5,000, machinery for Rs. 10,000.
4. Purchased goods for Rs. 14,000.
5. Sold goods for Rs.8, 000.
6. Purchased goods from Malhotra & Company for Rs. 11,000.
7. Paid telephone rent for the year by Cheque Rs. 500
8. Bought one typewriter for Rs. 2,100 from Universal Typewriter Co. on
credit.
9. Sold goods to Keshav Ram for Rs. 12,000.
10.

Sold goods to Rajesh Kumar for Rs. 2000 cash

11. Amount withdrawn from bank for personal use Rs. 1,500.

12. Received cash from Keshav Ram Rs. 11,900 and discount
allowed Rs. 100.
13. Paid into bank Rs. 5,800.
14. Bought goods worth Rs. 2,100 from Ramesh and supplied
them to Suresh at Rs. 3,000.

15. Suresh returned goods worth Rs. 100, which in turn were sent
to Ramesh.

16. Issued a cheque for Rs. 1,000 in favour of landlord for rent for
April.
17. Paid salaries to staff Rs. 1,500.
18. Received from travelling salesman Rs. 2000 for goods sold by
him, travelling expenses Rs. 100.
Pass Journal entries

EXPLANATION
1.

Albert starts business with Rs. 50,000.

Albert

cash

Person

Tangible

Personal a\c

Real a\c

2.

He open a SBI saving bank account and deposits

Rs. 20000.
SBI Bank

Cash

Organization

Tangible

Personal

Real a\c

3. Bought furniture for Rs. 5,000, machinery for Rs. 10,000.

Furniture &
Machinary
Tangible
aspect/Asset

4.

5.

Cash
Tangible
Real a\c

Real a\c
Purchased goods for Rs. 14,000.
Goods/Stock a/c

Cash

Tangible
aspect/Asset

Tangible

Real a\c
Sold goods for Rs. 8,000.

Real a\c

Goods/Stock a/c

Cash

Tangible
aspect/Asset

Tangible
Real a\c

6.

Purchased goods from Malhotra & Company for Rs. 11,000.

Goods/Stock a/c

Malhotra &
co

Tangible
aspect/Asset

Organization

Real a\c

Personal a\c

Telephone Rent a/c

Bank a\c

Expenditure

Organization

Nominal a\c

Personal a\c

7.Paid telephone rent for the year by Cheque Rs. 500

8.

Bought one typewriter for Rs. 2,100 from Universal Typewriter

Co. on credit.
Typewriter a/c
Universal
Typewriter Co
Tangible
aspect/Asset
Organization
Real a\c

Personal a\c

9.

Sold goods to Keshav Ram for Rs. 12,000.

Goods/Stock a/c
Tangible
aspect/Asset

10.

11.

Keshav Ram
a\c
Organization

Real a\c
Personal a\c
Sold goods to Rajesh Kumar for Rs. 2000 cash
Goods/Stock a/c

Cash

Tangible
aspect/Asset

Tangible
Real a\c

Realwithdrawn
a\c
Amount
from bank for personal use Rs. 1,500.
Drawings

Bank

Tangible
aspect/Asset

Organization

Real a\c

personal a\c

WHAT IS TALLY

Managing single and multiple groups is very important feature of

tally.

Tally is an application software.

It down not require writing any special program for calculating.

Tally stores all information about each account in detail.

It is very secured against data tempering.

It reduces the work.

In manual process, after entering daily transaction user has to create

trading account, trial balance, profit & loss account, ledger, balance
sheet. But in Tally, user just enters daily entry and get balance sheet.

General features of Tally

It maintain all the primary books of accounts,

like cash book and bank book.

Tally maintain all registers like purchase

registers, sales registers and journal registers.

It maintain all statement of accounts like

balance sheet, profit and loss and trial balance,
cash flow, fund flow statement and stock
statement.

General features of Tally

A tally can maintain outstanding report

It may provide complete bill-wise information

of amounts receivable as well as amount
payable either party-wise or group-wise.

It provides the facility of bank reconciliation.

It can provide a report for a particular data or

reports for any range of dates.

COMPANY CREATION
ACCOUNTS
INVENTORY
VOUCHER CREATION
TRIAL BALANCE P & L ACCOUNTS
A/C
BALANCE SHEET
TDS
SERVICE TAX
VAT

Getting Started with Tally

Getting Started with Tally

To create the
company you would
click at Create
Company option

A new window
will appear
with various
items on the
screen.

COMPANY CREATION

COMPANY CREATION
Type the name of the
company you want to
create

COMPANY CREATION
You can type
some other
mailing name of
the company.

COMPANY CREATION
Type mailing
address of the
company.

COMPANY CREATION
In Tally accounts
can be maintained
in a two different
ways:.

COMPANY CREATION

COMPANY CREATION

COMPANY CREATION

This option provides

security control to
your company
accounts

COMPANY CREATION

After filling all the required information press enter. A new window
will appear asking for confirmation.

For acceptance press Y.

COMPANY CREATION
After filling all the required information
press enter. A new window will appear
asking for confirmation.

For acceptance press Y.

COMPANY CREATION