tally prime theory presentation look here

about tally theory version

1. What is Tally
Tally is Financial Accounting Package. Financial
Accounting software is used to store and maintain
daily business transaction like purchase, sales,
receipts, payment, purchase return, sales return,
deposits, withdrawals etc.

2. Definition of Accounting.
Accounting is defined as “the art of
recording, classifying and summarizing
in terms of money transactions and
events of financial character and
interpreting the result thereof”

3. Journal
•The basic book of accounting is
called Journal. Journal means Day
book, Diary or log book. Trader
records his total daily transactions in
it. The process of recording the
transaction into journal is called
Journalizing.

4. Ledger
Ledger is the most important book of
accounting. It contains summarized,
classified description of all the
business transactions. It is divided into
various parts and each part is termed
as account.

5. Debit (Dr.) and Credit (Cr.)
Account is divided into two parts. Left-
hand side is known as debit side and
right hand side is known as credit side.
Debit means to make an entry in the
left hand side of an account. Credit
means to make an entry in the Right
hand side of an account

6. Classification of Accounts
Account
Personal Impersonal
Real Nominal

7. * Personal Account
Accounts recording transaction
relating to individuals or firms or
company are known as personal
accounts

8. * Real Account
•Accounts recording transaction relating to
tangible things (which can be touched,
purchases and sold) such as goods, cash,
Building, Machinery etc.
•Whereas Accounts recording transaction
relating to intangible things (which do not
have touched or physical shape) like
goodwill.

9. * Nominal Accounts.
The account recording transaction
relating to the losses, gain,
expenses, and income-Rent,
Salary, Wages, commission,
interest etc are classified as
nominal accounts.

10. * Rules of Debit and Credit
•Personal Accounts Debit the receiver
Credit the giver
•Real Account Debit what comes in
Credit what goes out.
•Nominal Account Debit expenses and
losses
Credit incomes and gains.

11. Method of Accounting system
There are two methods of Accounting System
1)Single Entry System
2)Double Entry System.

12. Single Entry Systemis purely based on cash
transactions are taken into account and credit
transactions are eliminated.
In Double Entry System, both cash and
credit transactions are entered. All
commercial organizations follow this
method. Tally follow Double Entry System
of Accounting

13. GST
GoodsandServicesTax(GST)isanindirecttaxapplicable
throughoutIndiawhichreplacedmultiplecascadingtaxes
leviedbythecentralandstategovernments.Itwasintroduced
asTheConstitution(OneHundredandFirstAmendment)Act
2017
TheGSTisgovernedbyaGSTCouncilanditsChairmanis
theFinanceMinisterofIndia.UnderGST,goodsandservices
aretaxedatthefollowingrates,0%,5%,12%,18%,28%.
TheGoodsandServicesTax(GST),waslaunchedonthe
midnightof30June2017bythePrimeMinisterof
IndiaNarendraModi.Thelaunchwasmarkedbyahistoric
midnight(June30-July1,2017)sessionofboththehousesof
parliamentconvenedattheCentralHalloftheParliament.

14. AsingleGSTreplacedseveralexistingtaxes
andlevieswhichinclude:centralexcise
duty,servicestax,additionalcustoms
duty,surcharges,state-levelvalueadded
taxandOctroi
Taxes subsumed

15. GST Levy
GSTisleviedonalltransactionssuchassale,
transfer,purchase,barter,lease,orimportof
goodsand/orservices.IndiaadoptedadualGST
model,meaningthattaxationisadministeredby
boththeUnionandStateGovernments.
Transactionsmadewithinasinglestatewillbe
leviedwithCentralGST(CGST)bytheCentral
GovernmentandStateGST(SGST)bythe
governmentofthatstate.Forinter-state
transactionsandimportedgoodsorservices,an
IntegratedGST(IGST)isleviedbytheCentral
Government

16. Dr. Amt Cr. Amt
Purchase A/C
Less P. Return
Direct Expenses
Carriage Inward
Unloading charges
Wages
Coolie Charges
Fuel
Freight
Sales A/C
Less S. Return
Direct Income
Professional Service
Charge
Service Charges
Trading A/C

17. Profit and Loss Account
Dr.
Amt
Cr.
Amt
Indirect Expenses
Salary
Rent
Advertisement
Traveling Expenses
Maintenance & Cleaning Exp.
Electricity Exp.
Telephone Expenses.
Printing And Stationary
Postage and Stamps
Depreciation
Commission
Interest on loan
Indirect Income
Interest on Deposits
Rent
Commission
Dividend
Receive
Packing and Forwarding chrg
Distribution Charges

18. Balance Sheet
Liabilities Amt Assets Amt
Capital A/C
Partner Capital
Share Capital
Proprietors Capital
Less Drawings
Reserve and Surplus
Loans
Bank OD(OCC) A/C
Bill Discounting
Secured Loan
Unsecured Loan
Current Liabilities
Duties And Taxes
Provision for bad debts
Prov. Depre., Dividend
Sundry Creditors
( Supplier's Name)
Fixed Assets
Plant
Machinery
Building
Furniture
Immovable Properties
Accumulated Depreciation
Trade Right
Investment
Shares, Bonds, Debenture
Current Assets
Deposits,Stockin hand (closing stock)
Loan and Advance
-Salary advance, Loan to empl.
Sundry Debtors
(Customer's Name)
Cash in hand
Bank A/C
Branch/Division
Misc. Expenses

19. Amar started business with Rs.10,000
Amar is personal A/c and he is giver to business. Business has
receiver cash, As per rules, Debit-what comes in and credit the
giver
By Cash A/C ----------------Dr. 10000
To Amar’s Capital A/c ---Cr. 10000
Personal Accounts  Debit the receiver
Credit the giver
Real Account  Debit what comes in
Credit what goes out.
Ledger:-Amar’s Capital A/c and Cash A/c

20. Out of the above RS. 2000 are deposited in bank
Bank A/C may be considered as personal A/C hence
receiver is debited. cash goes out therefore credit
By Bank A/c ---------------------------Dr. 2000
To Cash A/c --------------Cr. 2000
Personal Accounts Debit the receiver
Credit the giver
Real Account Debit what comes in
Credit what goes out.
Ledger:-Bank A/c and Cash A/c

21. Purchase office furniture for cash worth Rs1000
By Furniture A/c --------------------Dr. 1000
To Cash A/c --------Cr. 1000
Furniture is tangible goods. In Real A/c-Debit What comes in
Furniture and Credit What goes out Cash
Real Account Debit what comes in
Credit what goes out
Ledger :-Furniture A/c and Cash A/c

22. Purchase of goods for cash Rs. 1500
By Purchase A/c ---------------------------Dr. 1500
To Cash A/c -------Cr. 1500
Goods are Real A/c-Debit means What comes in and
paid cash in exchange-Credit means What goes out.
Real Account Debit what comes in
Credit what goes out.
Ledger :-Purchase A/c and Cash A/c

23. Purchase of goods from Bikash on
credit for Rs2000
Purchase A/c --------------------Dr. 2000
To Bikash A/c-------------Cr. 2000
Purchase A/c be Real A/c and Debit means What comes
in (Purchase of goods) & Bikash be personal A/c and
giver of goods ,
Personal Accounts Debit the receiver
Credit the giver
Real Account  Debit what comes in
Credit what goes out.
Ledger :-Purchase A/c and Bikash A/c

24. Sold of Goods for cash Rs3000
By Cash A/c -------------Dr. 3000
To Sales A/c ---------Cr. 3000
Sold of goods and cash are Real A/c-Credit what goes out.
Received cash in exchange of goods-Debit what comes in
Real Account Debit what comes in
Credit what goes out.
Ledger :-Cash A/c And Sales A/c

25. Sold goods on credit to Chetan for Rs3000
By Chetan A/c --------------Dr. 3000
To Sales A/c ------Cr. 3000
Sold of goods be Real A/c –Credit what goes out . Chetan be
Personal A/c-Debit the receiver
Personal Accounts Debit the receiver
Credit the giver
Real Account Debit what comes in
Credit what goes out.
Ledger :-Chetan A/c and Sales A/c

26. Paid Salary Rs5000
By Salary A/c -----------------Dr. 5000
To Cash A/c -----------Cr. 5000
Salary is an expenses, Nominal A/c, Expenses are debit ,
Cash is a Real A/c , goes out , Credit what goes out
Real Account Debit what comes in
Credit what goes out.
Nominal Account Debit expenses and
losses
Credit incomes and gains.
Ledger :-Salary A/c And Cash A/c

27. Commission received Rs.1000
By Cash A/c -------------------Dr. 1000
To Commission A/c ------Cr. 1000
Commission received means cash received and what comes
in (cash)-Debit. commission received is income. Income is
credit
Real Account Debit what comes in
Credit what goes out.
Nominal Account Debit expenses and
losses
Credit incomes and gains.
Ledger :-Cash A/c and Commission A/c

28. Charged Depreciation on furniture
Rs1000
By Depreciation A/c -----------------Dr 1000
To Furniture A/c -----------------Cr. 1000
Depreciation means decrease the value asset (loss). It is an
nominal A/c and the rule is debit the losses. The value of
asset has decreased hence credit Furniture A/c
Real Account Debit what comes in
Credit what goes out.
Nominal Account Debit expenses and
losses
Credit incomes and gains.
Ledger :-Depreciation A/c and Furniture A/c

29. Types of voucher
•Contra voucher F4
•Payment voucher F5
•Receipt voucher F6
•Journal voucher F7
•Sales voucher F8
•Credit note Ctrl+F8
•Purchase voucher F9
•Debit note Ctrl+F9
•Reversing voucher F10
Accounting Voucher and Inventory voucher
Accounting Voucher

30. Contra Voucher F4
Cash or cheque deposited into bank ,
cash, withdraw from bank, transfer of fund
from one bank to another bank. Here debit
and credit accounts can be only Cash A/c
and Bank A/c

31. Payment Voucher F5
Payment voucher is used to enter all type of payments
By cash or bank. Payment of salary, wages,
commission, rent, all indirect expenses, payment to
sundry creditor and interest on loan except depreciation

32. Receipt voucher F6
Receipt voucher is used to enter all receipts of
cash or bank. Amount received from customers,
capital introduced into the business, loan take,
commission, rent, interest, income received.
Amount received from sale of fixed asset etc.

33. Journal voucher F7
A Journal voucher is an adjustment voucher.
Depreciation on fixed asset, sale of fixed asset on
credit

34. Sales Voucher F8
Sales voucher is meant for sales entries. Sales
made in the regular course of business (not sale of
fixed asset of the office). Generally, business are
made on credit.

35. Credit note ctrl+F8
Credit note is used to enter the transaction related
to sales Return

36. Purchases voucher F9
Purchase voucher is meant for Purchases
entries. Purchases made in the regular course of
business (not Purchases of fixed asset of the
office). Generally, business are made on credit.

37. Debit note ctrl+F9
Debit note is used to enter the transaction
related to Purchase return

38. Inventory vouchers
•Purchase order Alt+F4
•Purchases Quote Ctrl+F4
•Sales order Atl+F5
•Sales Quote ctrl+F5
•Rejection out Alt+F6
•Rejection in Ctrl+F6
•Stock journal Alt+F7
•Delivery note Alt+F8
•Receipt note Alt+F9
•Physical stock voucher Alt+F10