0 GOLDEN RULES OF BOOK-KEEPING

1. PERSONAL ACCOUNT (Accounts related to Persons) (Bank a/c, sundry debtors a/c, sundry creditors a/c, co-operative society) Debit the receiver Credit the giver 2. REAL A/C (Accounts related to tangible and visible things) (Fixed assets [furniture, plant & machinery, land & building], cash, investment, sales, purchase) Debit what comes in Credit what goes out 3. NOMINAL A/C (Accounts related to intangible and invisible things) (Indirect expense, direct expense, indirect income, direct income, capital, drawings, duties & taxes [ST, IT, VAT, TDS]) Debit all expenses/losses Credit all incomes/gains

VOUCHERS ----A voucher is a basic recording document. Day to- day transactions are entered in tally through vouchers. It is a key to all business information 1. Contra (F4) Deposits, withdrawals, transfers (Cash to bank, bank to cash, bank to bank) 2. Payment (F5) Paid salary, paid wages, payment made to sundry creditors 3. Receipt (F6) Received interest, received commission, amount reeived from sundry Debtors 4. Journal (F7) Purchase /sale of "fixed assets" on credit, depreciation, baddebts, goods lost in flood, fire, free samples 5. Sales (F8)

Sale of "only goods" on cash or credit basis 6. Purchase (F9) Purchase of "only goods on cash or credit basis FINAL ACCOUNTS 1. TRADING ACCOUNT 2. PROFIT AND LOSS ACCOUNT 3. BALANCE SHEET TRADING ACCOUNT
PARTICULARS To opening balance (goods) (1-4-2000) To purchases (goods) xxx xx Les s: purc hase retu rn To Direct Expenses Carriage inward Wages Electricity Freight Octroi To Gross Profit xxx xxx xxx xxx xxx AMOUNT xxxx xxx PARTICULARS By Sales (goods) xxx Less: sales return xx By closing stock (31-3-2001) AMOUNT xxx xxxx

By goods distributed as free samples By goods lost by fire/ theft / flood

xxx xxx

xxx xxxx xxxxx

By Gross Loss

xxxx xxxxx

PROFIT AND LOSS ACCOUNT

PARTICULARS To Gross loss To Indirect Expenses Rent, rates & taxes Salaries Printing & stationery Postage & telegram Cash discount allowed To Duties & Taxes VAT (Value Added Tax) AMOUNT xxxx xxx xxx xxx xxx xxx xxx PARTICULARS By Gross profit By Indirect Incomes Commission received Rent received Interest received Dividend on shares Cash discount received AMOUNT xxxx xxx xxx xxx xxx xxx

TDS (Tax Deducted at Source) To Net Profit

xxx xxxx xxxxx

By Net Loss

xxxx xxxxx

BALANCE SHEET
LIABILITIES Capital xxx add: net profit xxx less: drawings xxx Secured Loans Bank overdraft Unsecured Loans loans from family, friends Current Liabilities Sundry Creditors AMOUNT xxxx Xxx Xxx Xxx ASSETS Fixed Assets Vehicles Furniture Machinery Land & Building Investment shares ,bonds fixed deposit Current Assets cash (petty cash, cash in hand) bank (SBI, BOB) sundry debtors Misc.income AMOUNT xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxxxx

xxxxx

DISCOUNTS There are 2 types of Discounts 1. Trade Discount It is not shown in the books of accounts. 2. Cash Discount It is shown in the books of accounts. a. Discount allowed (indirect expense) ---------sales b. Discount received (indirect income) ---------purchases

VAT
1. The standard rate of VAT is 12.5%

2. List of Goods Taxed at 1% - Bullion, Articles of Gold, Silver and Precious Metals including Jewellery made from gold, silver and precious metals, Precious Stones and Semi-Precious Stones 3. fList of Goods Taxes at 4% - Basic necessity, industrial and agricultural goods, drugs & medicine. 4. Exempted from VAT

- Petrol , liquor

Product info Button bar Calculator Work area

Creation of company Directory F1: select company F1 : Shut company F2: Period F3: company info F3: company Create group companies Alter Split company/ data Backup Restore Alt + D Alt+2 Voucher class Journals Voucher

The top part displays information about software version and release , current date , time etc. Consist of numerous buttons to provide quick access too different options. Activated buttons are darkened while inactive buttons are grayed Ctrl n is used to activate calculator and perform arithmetic calculations by entering numbers, brackets , operators Area where you perform major tasks. It is split into 2 parts left part shows current period , current date , lists of selected companys Right part shows gateway of tally menu , displays primary choices depending on activation of options . Press Create company from Company info ( F3 i.e Atl + F3) While creating company the information to be entered as The default data drive & path is displayed. to alter the data directory press backspace or up arrow key. To select the company from the list of the companies stored at the location last selected. Used to deselect a selected a company To change current period. To get company information To choose another company as active company from the list of selected companies To create group company to get consolidated amounts of several companies. it is active when multiple companies are selected. To alter company information To split data of a company into 2 financial period To backup the company data To restore backup data of a company DELETE VOUCHER , COMPANY Duplicate voucher Is a predefined table that helps to automate transaction entries, expedite voucher entry, minimize errors. Is a book in which business transactions are entered in chronical order a record of a single business transaction is called a JOURNAL ENTRY Is a document containing the details of a financial transaction.

Trading account Profit and loss a/c Balance sheet Use security control.

Is prepared to arrive at the gross profit earned by the organization over a specified period. Gives the net profit earned by the company after considering all other incomes and expenses incurred over a period. Is a statement that summarizes assets and liabilities of a business . Tally has a set of range of security controls , which can define the authority of various users to access the information and to enter/ alter/ delete the vouchers Is used to configure settings for various applications available in tally. Is used to modify various features of a company. The company features are specified for current company only and thus each company may have different features activated. Record individual transaction details you have entered. Statement shows the closing balances of the accounts of a selected group for a specified period up to the current date. Report displays all the journal voucher that have been passed. Is a list of all transaction for a particular day. Displays the existing chart of accounts, lists of groups, in alphabetical order. Is the minimum level of a stock item that would necessitate reordering of that item. Reorder level are fixed based on the production plan to ensure that there is sufficient stock of service customer orders without allowing over stocking Reports are inventory report which displays details o stock flow vis a vis customers and suppliers On physical counting of stock , you may mismatch with book stock/ to make physical & book stock figuresin sync. , Is a financial statement which reveals how the business has been financed and how resources were used between the opening and closing balance sheet date. Concentrates on transactions that have direct impact on cash. It

F12: configure F11: features

Account book FERGroup summary

Journal register Day book List of accounts

Reorder level

Movement analysis Physical stock voucher Fund flow statement Cash fund flow

Group company Split company data Voucher class Bill of materials

deals with the inflow and outflow of cash between 2 balance sheet. Can be created only for companies that have already been loaded. To activate group company feature, a minimum of 2 companies have to be loaded. To split data of a company into financial period. Helps to automate transactions entries, expedite voucher entry carrying specified option & values and minimize errors. Is a list of components to manufacture / assemble another product