Completing 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 TALLY

Version and features of tally

Creating A Company

Stock Group

Stock Item

Ledgers

Trial Balance

Books of account Reports

Cash Flow Statement

Fund flow statement

Bank Reconciliation Statement

Shortcut Keys

TALLY• 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

• 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

• Create Company

• Master Creation : ledgers and voucherscreation

• Transaction : entry of voucher

• Reports : auto created by tally

• Import : data import from excel to tally

Tiltle BarButton bar

Menu bar

Working Area

Transaction Voucher Journal EntryRecording Classifying

P & L Account Balance Sheet

Trial Balance Ledger Accounts

Posting

Consolidating

Report Generation

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.

• 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

· Quit

Creating a New Company

In 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

(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].

(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.

• you have to setup an accounting chart for the company.Creating Master AccountsYou can create master for both accounts and inventory by providing information regarding both accounts and inventory. We will start from creating account masters.

• Account InformationIn 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

• 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.

Single group

option is useful

when you wish

to work on one

group at a time

Multiple group option : The sub group willautomatically 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 singlegroup option.

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

Stock ItemStock 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 TypesThis 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 MeasureThis option is used to specify the various units of measure you use to specify the quantities of stock items.

LEDGERS

• Means you can create,

display, alter single and

multiple account groups.

¨ Ledger

The next option after

group in Account info

menu is Ledger

• In this menu you can

create, display and alter

single and multiple ledger

accounts.

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.

Contra Voucher Payments Voucher Receipt Voucher Journal Voucher

Sales Voucher Purchase Voucher Physical Stock Journal Stock Journal

Voucher Types

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.

• 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.

•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 Accounts

REPORTS

• Profit & loss statement

• Balance sheet

• Cash flow statement

• Fund flow statement

• Ratio analysis

•From profit and loss account we can know the profit and loss during

the year

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 and fund flow statement help management in the decision

making process.

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 KEYS

F1 Select Company Alt+F10 Physical Stock

Alt+F1 Shut Company F11 Features

F2 Date (To Change) F12 Configure

Settings

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