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THE INSTITUTE OF CHARTERED

ACCOUTANTSINFORMATION TECHNOLOGY TRAINING

PROJECT ON TALLY

SUBMITTED TO MR. OMPRAKASH YADAV

SUBMITTED BYSANDHYA SINGH REG. NO- CRO489661BATCH NO.-160

ACKNOWLEDGMENTCompleting a task is never a one man effort. It is often the result f

invaluable contribution of number of individuals in a direct or an indirect manner that helps in a flying success.

I take this opportunity to express my deep sense of gratitude and whole hearted thanks to my Guide Mr. OMPRAKASH for his

valuable guidance and encouragement through the work.

Finally, I wish to express my sincere thanks to my parents, who never complained me about stealing their time.

INDEXAbout TALLYVersion and features of tally Creating A CompanyStock GroupStock ItemLedgersTrial BalanceBooks of account ReportsCash Flow Statement

Fund flow statementBank Reconciliation Statement

Shortcut Keys

INTRODUCTIONTALLY• The undisputed king of all financial accounting packages

available in India. • Capable of handling all kind of transaction.• For Its use- neither need to learn new accounting methods

nor should change existing style of handling accounts.• The information can be fed as well retrieved at random and

all human errors can be corrected.  • A post transaction system - follows the traditional methods

of accounting, that is, the payment is first made on the basis of existing accounting methods (i.e., against a voucher or a cash bill) and that information is fed into the Tally.

• Covers a wide area - can be used by the owner, financial controller, accountant, manager or an auditor

• Is both accurate and convenient to use even if you are not well versed with the accounting, you can still use and at the same time become known to accounting methods

VERSIONS OF TALLY• 4.5 : DOS based, Accounts only.

• 5.4 : Window based accounts with inventory.• 6.3 : 5.4 with online finalization,

auditing and import & export feature.• 7.2 : 6.3 with VAT, TDS and service tax.• 8.1 : 7.2 with FBT and excise duty.• 9.0 : 8.1 with Payroll system, multi

language and extra formatting feature.• ERP 9: Access Remote Server Login

Other Features of Tally• Excellent Backup Provisions

• Easy exit to operating system• Unencrypted files: owner freely carry the data

in his person• Based on solid accounting theories and

practices• Mode of data exchange through extensible

markup language (XML) • An exhaustive list of fields

How to start TALLY• Create Company

• Master Creation : ledgers and vouchers creation

• Transaction : entry of voucher• Reports : auto created by tally• Import : data import from excel to tally

TALLY SCREENTiltle Bar

Button bar

Menu bar

Working Area

DIAGRAMMATICAL PRESENTATION OF TALLY

Transaction Voucher Journal EntryRecording Classifying

P & L Account Balance Sheet

Trial Balance Ledger Accounts

Posting

Consolidating

Report Generation

ConfigurationBefore creating a company you can use (F12) key to configure Country

specific details:- Gateway of Tally —> F12: Configure —> General

Make the necessary selections and accept them. The prime differences are the use of terms like VAT in Europe and Sales Tax in Asia and America.

CREATING A NEW COMPANY

• Company Information Menu

• The right half of the Gateway of Tally area displays the company info. Menu

• This menu has following three options:· Select Company· Create Company· QuitCreating a New CompanyIn order to create a new company for accounting following screen will appear : 

Fields• Name• Mailing name,

address• Email address• Income tax number,

sales tax number local/interstate)

• Currency symbol• Maintain (accounts

only/inventory only/both)

• Financial year • Books beginning

from• Tally vault password• Security control• Base currency

information• Accept/reject

SELECT COMPANY(i) Go to Gateway of tally > press Alt+ F3 > Company Info. > Select Company

SHUT A COMPANY

“Shut a company” means to unload it. It does not mean that you have deleted it. Simply select it again to load and work on it again. For Shutting the Company use the Shut button from the button bar or press [ALT + F1].

ALTERING A COMPANY(i) Go to Gateway of tally > press Alt+ F3 > Company Info. > Alter company

(ii) Select the required company for any kind of alteration

(iii) After modification , press Enter to accept.

Setting up account heads• you have to setup an

accounting chart for the company.Creating Master Accounts You can create master for both accounts and inventory by providing information regarding both accounts and inventory. We will start from creating account masters.

• Account Information In order to work on the master of accounts of a company, first activate the desired company then Gateway of Tally menu appear on the screen

• Select option “Account Info” Then following menu will appear :

Press F11 and select yes for the required options

GROUPS• Group

During manual accounting the accounts (ledger) are grouped upon preparation of Trial Balance to prepare Profit & Loss account and Balance Sheet which reflect the final accounts of the company. In tally the concept remains analogous. Following screen will appears when you select Group option.

Create Single Group

Single group option is useful when you wish to work on one group at a time

Multiple group optionMultiple group option : The sub group will

automatically adopt the features of their parent group including those specified in advanced mode. if there is any changes for an individual group to have to select single group option.

• Based on common feature, all your stock items can be classified into stock groups.

Stock Item Stock items are the actual items in stock. This is lowest level of information about your inventory. Each item that is required to be accounted for, need to be created. You can then account for the issues and receipts of each item.

Voucher Types This option allows you to create additional voucher types or alter the existing ones. The procedure is exactly identical to the voucher type functions that we discussed in ‘Account Info.’ Menu.

Units of Measure This option is used to specify the various units of measure you use to specify the quantities of stock items.

STOCK ITEM

LEDGERS• Means you can create,

display, alter single and multiple account groups.¨ LedgerThe next option after group in Account info menu is Ledger

• In this menu you can create, display and alter single and multiple ledger accounts.

Ledger display

Various Heads

All accounts from the last year’s balance sheet can be created under the respective head’s and their opening balances can be entered.

Sundry Creditors A/c

A Creditor named B can be created under the head sundry creditors.

Sundry Debtors A/c

Similarly, C-a debtor’s account can be created under the head Sundry Debtor.

TALLY VOUCHERS• A voucher is a primary

document for recording all financial transactions.

• Recording and analyzing are easy for different types of transactions.

C on tra V ou ch er P aym en ts V ou c h er R ec e ip t V ou ch er Jou rn a l V ou ch er

S a les V ou c h er P u rch ase V ou ch er P h ys ica l S tock J ou rn a l S tock Jou rn a l

V ou ch er Typ es

TYPES OF VOUCHERS

Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. A voucher entry is a primary document for recording all financial transactions. Recording and analysis are easy for different types of transactions because tally provides 16 different predefined voucher formats.

BY USING KEY F12 I.E. CONFIGURATION SETTING ONE CAN CUSTOMIZE THE VOUCHER

ENTRY

• Voucher Entry in tally is the most visited area by the user and is key to all business information.

• A voucher (also called a journal) is a document containing the details of transaction.

• For every transaction, you enter a voucher in Tally.

• The voucher entry option at the Gateway of Tally enables you to make your day-to-day entries.

• On the left hand side of the screen a menu will display, from which you can change type of voucher.

Party's A/c Name

• Order No

Give the supplier's name. Type in the same manner as voucher entry and select from list of Ledger Accounts. Use [alt]+[C] to create a new account.

The voucher number can be treated as your Purchase Order number. You may configure the voucher type through Acct. Info—>Voucher Types to set prefixes and suffixes for Purchase Orders. This particular Order No. field is an additional field to record order number if different from the voucher number.

Name of the item

• Due On

Give the name of the stock item for which the order is to be placed. Once the name is given the Item Allocations sub-screen pops-up that needs to be filled in.

The due date for delivery of the item. This will enable monitoring of outstanding deliveries. The order can be split for delivery on different dates.

Display menu view

Day book

•It gives the balances for the each day for the voucher type has been selected.

Trial balance view

Trial balance is a consolidation of ledger balances.

Tally - Books of AccountsREPORTS

• Profit & loss statement• Balance sheet• Cash flow statement• Fund flow statement• Ratio analysis

Profit and Loss A/c View

•From profit and loss account we can know the profit and loss duringthe year

BALANCE SHEET

Stock summary view

RATIO ANALYSIS VIEW

Ratio analysis is useful for management in the decision making process. We can even analyze different outstanding of parties using receivable turnover ratio etc.

CASH FLOW STATEMENT

Cash and fund flow statement help management in the decision making process.

FUNDS FLOW STATEMENT

BANK RECONCILIATION STATEMENT

• This statement is prepared to avoid the difference between Pass Book and Bank Book.

Short cut for Bank Reconciliation

Statement

PRINTING MENU

SHORTCUT KEYSF1 Select Company Alt+F10 Physical StockAlt+F1 Shut Company F11 Features

F2 Date (To Change) F12 ConfigureSettings

Alt+F2 Period (To change) Alt+F1 Detail

F3 Company F9 Inventory Reports

Alt+F3 Company Info F10 Accounting Reports

F4 Contra F6 For Display of B/P and B/R Report

F5 Payment F8 Other Reports

F6 Receipt Alt+F12 Range

F7 Journal Alt+F5 Quarrel

F8 Sales Alt+F10 Physical Stock

F9 Purchase

F10 Memos

THANK YOU