COMPUTERISED ACCOUNTING SYSTEM

LEARNING OUTCOME

• Importance of Computerized Accounting

• Maintaining accounts in Tally
• Preparing financial statements and reports in Tally
COMPUTERISED ACCOUNTING SYSTEM
 Accounting information system that processes the financial transactions and
events as per GAAP.
 Big financial transactions, data, reports and statements are managed.

ASPECTS
 Accounting Principles - concepts
 User Defined framework - maintenance
 Operating Environment – storage & processing of data
 Working of accounting system – Hardware & Software
COMPONENTS
 Accounting Framework
Set of principles, coding and grouping structure.

 Operating Procedure
Blended suitable with the operating environment.

BASIC REQUIREMENTS
 Front-End Interface: interactive link between user and database

 Back-End Interface: data storage system

 Data Processing : sequence of actions

 Reporting System : constitute the report

COMPARISON BETWEEN MANUAL AND COMPUTERISED
ACCOUNTING
 Identifying
 Recording
 Classification
 Summarising
 Adjusting Entries
 Financial Statements
 Closing the Books
ADVANTAGES OF COMPUTERIZED ACOUNTING

 Speed  Legibility
 Accuracy  Efficiency
 Reliability  Quality reports
 Up- to-date Information  MIS Reports
 Real time User Interface  Storage and Restricted
 Automated Document Production  Motivation and Employees
 Scalability Interest
LIMITATIONS OF COMPUTERISED ACCOUNTING

 Cost of Training

 Staff Opposition\Disruption

 System Failure

 Inability to check Unanticipated Errors

 Breaches of Security

 Ill-effects on Health
ACCOUNTING SOFTWARE
 Popular software in India – Tally & Ex

 Globally – Sage, Wings2000, Best Books, Cash Manager, Ace Pays etc.,

ACCOUNTING PACKAGES
 Ready-to-use

 Customised

 Tailored
 TALLY ERP 9

 Developed by Tally Solutions Pvt. Ltd.,

 Earlier versions – 3.0,4.5 – DOS based

 Window Based – 5.4,6.3,7.2,8.1,9

 Latest – Tally ERP 9

Accounting program to track and manage accounts related to the business.

DOWNLOADING AND INSTALLATION

https://tallysolutions.com/download/
GATEWAY TO TALLY
 ACCOUNTING PROCESS IN TALLY

STEP 1
• Company Creation

STEP II
• Group Formation

STEP III
• Ledger Creation

STEP IV
• Voucher Creation
STEP 1 – CREATION OF COMPANY
 FUNCTION KEYS USED

• F1 – Select a company from the list of companies

• Shift + F1 – Shut a company
•Ctrl + M – Access the Gateway of Tally
• Ctrl + N – Access the calculator /ODBC Server frame
•Esc – Quit from Tally (by Pressing Y for Yes)
Alt + F1 – Select the company from the list of companies
• Alt + F3 – Alter company information
 STEP II – GROUP FORMATION

•` A set of accounts which has common characteristics – Accounting Group

• Reserved groups/ pre-defined groups by Tally

• Allows to modify their names and creates sub-groups

 Pre – Defined Groups
[28]

Primary Groups Sub – Groups

[15] [13]
Reserves & Surplus

Balance Sheet (Retained Earnings)

Profit & Loss
[9] [6] Bank OD Accounts

Capital Account (Bank OCC Accounts)

Sales Account Secured Loans
Loans (liability)
Unsecured Loans
Current Liabilities Purchase Account
Duties and Taxes
Fixed Assets
Direct Income Provisions
Investments Sundry Creditors
Current Assets Indirect Income Bank Accounts
Suspense Account Cash-in-hand
Miscellaneous Direct Expenses
Deposits
Expenses Loans & Advances
Indirect Expenses
Branch / Divisions Stock- in- hand
Sundry Debtors
Gateway of Tally > Accounts Info > Groups > Display (Single Groups)
Gateway of Tally > Accounts Info > Groups > Display (Multiple Groups)
 STEP III – LEDGER CREATION
Tally ERP 9 has pre- defined ledgers

 Cash Account

 Profit & Loss Account

Gateway of tally > Accounts Info. > Ledgers > Display
EXAMPLE 2

Create the following ledger Accounts

Group Capital Fixed Assets Purchase Sales Sundry Sundry Indirect Indirect
Account Account Debtors Creditors Expenses Incomes

Ledger X Capital Furniture Purchase Sales Rahul Samsung Rent Rent

Account Account Account Received
Machinery Ravi Sony Salaries Interest
Received
Building Reeta LG Commission
Sunil Received
 CREATING INVENTORY MASTERS
STEPS

 Creating Stock Group

Creating Unit of Measures

Creating Stock Items

Stock Group Stock Item

LED Sony LED
LG LED
Samsung LED
Washing Machine Samsung washing machine
LG washing machine
IFB washing machine
(i) Step 1 – Creating stock group

LED
Stock Groups
Washing Machine

Gateway of Tally > Inventory > info.> Stock Group> Create (single stock group)
Step 2 – Creating Unit of Measures

Unit of Measure is Number(Nos.)

Gateway of Tally > Inventory Info. >Unit of Measures > Create

Step 3 – Creating Stock Items

Gateway of Tally > Inventory Info. >Stock items > Create (single stock item)
To create other stock items
 STEP IV - VOUCHER ENTRY

Double Entry System of Accounting

Accounts Debit Credit

Personal The Receiver The Giver

Real What comes in What goes out

Nominal All expenses & losses All income & gains

LIST OF VOUCHERS

 Contra Voucher (F4) – Records all transactions of cash and bank accounts

Used to transfer of funds from cash account to bank account, from bank account to cash account or from one

bank to another bank.

Payment Voucher (F5) – all transactions involving payments

payment to creditors, expenses such as salary, electricity bill, stationary etc.,

 Receipt Voucher (F6) – records all cash or bank receipts

Receipts such as cash received from debtors, income received, interest received, rent received etc.,

 Journal Voucher (F7) – An adjustment voucher (no physical movements of funds)

Depreciation on fixed assets

 Sales Voucher (F8) – all sales cash/credit

 Purchase Voucher (F9) – Purchase of goods cash/credit

EXAMPLE 3

Create a company and enter the following vouchers

Continues……………
Solution:

STEP 1 : Creation of Company

Gateway of Tally > Company Info > Create Company

 STEP 2 : Group Formation (pre- defined groups – cash account and P/L account)

STEP 3 : Ledger Creation

Groups Capital Bank Fixed Purchase Sales Sundry Sundry Current Indirect
Accounts Assets Debtors Creditors Liability Expenses

Ledger Rakesh HDFC AC Purchase Sales MM Majestic Akriti Rent

Gupta Account Account Enterprise Company Furniture

Furniture Intex HCL Office

Solutions Refreshment

Computer Salaries

Electricity
Gateway of Tally > Accounts Info. > Ledger > create (single ledger)
 CREATION OF INVENTORY MASTERS
Gateway of Tally > Inventory Info > Unit of Measure > Create
 Creation of Stock Item

Gateway of Tally > Inventory Info > Stock Item> Create

 STEP 4 : Voucher Creation

Transaction Date Particulars Debit Credit Voucher Type Function

Key
1 April 1 Cash a/c Dr. 10,00,000 Receipt F6
Voucher
To Rakesh Gupta capital 10,00,000
(Being the business of computer
accessories started in the name of
Desha enterprise)
2 April 5 HDFC bank a/c Dr. 5,00,000 Contra Voucher F4

To Cash 5,00,000
(Being opened account in HDFC
bank)
3 April 15 AC a/c Dr. 20,000 Payment F5
Voucher
To Cash a/c 20,000
(Being purchased AC for office
by cash)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
4 April 18 Furniture a/c Dr. 50,000 Journal F7
Voucher
To Akriti Furniture 50,000
(Being furniture purchased on
credit)
5 April 20 Computer a/c Dr. 15,000 Journal F7
Voucher
To HCL 15,000
(Being computer purchased on
credit)
6 April 20 Rent a/c Dr. 20,000 Payment F5
Voucher
To HDFC 20,000
(Being rent paid by cheque)

7 April 20 Office Refreshment a/c Dr. Payment F5

Voucher
To Cash a/c 240 240
(Being paid in cash)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
8 April 25 Purchase a/c Dr. 11,500 Purchase F9
Voucher
To Majestic Company 11,500
(Being computer accessories
purchased on credit)
9 April 26 Purchase a/c Dr 4,350 Purchase F9
Voucher
To Intex Solutions 4,350
(Being items purchased on credit)

10 April 26 Cash a/c Dr. 5,000 Contra Voucher F4

To HDFC a/c 5,000

(Being cash withdrawn from
bank)
11 April 27 MM Enterprise a/c Dr. 15,500 Sales Voucher F8

To Sales 15,500
(Being sold on credit)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
12 April 28 Amba Solutions a/c Dr. 1,400 Sales Voucher F8

To sales 1,400
(Being sold on cash)

13 April 29 HDFC Dr. 40,000 Contra Voucher F4

To Cash a/c 40,000

(Being cash deposited in bank)
14 April 30 Salaries a/c Dr. 30,000 Payment F5
Voucher
To HDFC 30,000
(Being salary paid by cheque)

15 April 30 Electricity Bill a/c Dr. 5,000 Payment F5

Voucher
To Cash a/c 5,000
(Being electricity bill paid by
cash)
TRANSACTION 1
TRANSACTION 2
TRANSACTION 3
TRANSACTION 4
TRANSACTION 5
TRANSACTION 6
TRANSACTION 7
TRANSACTION 8
TRANSACTION 9
TRANSACTION 10
TRANSACTION 11
TRANSACTION 12

Cash Discount
Gateway of Tally > Accounting Voucher > Inventory Features (F11>F2)
F11 >F2
TRANSACTION 13
TRANSACTION 14
TRANSACTION 15
 TO GENERATE REPORTS

Gateway of Tally > Display > Trial Balance

> Day book
>Statement of Accounts

Gateway of Tally> Balance Sheet

> Profit & Loss Account
>Stock Summary
> Ratio Analysis
TRIAL BALANCE
DAY BOOK
Profit & Loss Account
STOCK SUMMARY
Ratio Analysis
BALANCE SHEET