Accounting Packages

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Accounting Software
It is a system that carries out mechanical
operations in accounting process.
It does not have any accounting
knowledge.


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Accounting for Software
Income Expenditure
Liability
Asset
Debit Credit
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Types of Accounts
Personal


Real


Nominal
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Personal Accounts
Accounts representing persons or group
of persons.

5
Real Accounts
Accounts related with real things
in this world.
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Nominal Accounts
Accounts related with unreal things in
the world.

All Expenses and Incomes
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Accounting Theme
Credit Debit

Income
(Nominal)

Expenses
(Nominal)


Liability
(Personal)

Asset
(Personal or Real)
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Rules of Accounting
Type of
Account
Debit Credit
Personal The Receiver The Giver
Real What Comes In What goes out
Nominal All Expenses &
Losses
All Incomes &
Gains
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Basic Question
What do you mean by
Debit ?

Any Guess ?

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Basic Question
What do you mean by Debit ?

Left Hand Side of a Ledger Account

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Flow of Accounting
Understanding the Transaction
Voucher Entry

Posting
Balancing
Trial Balance
P & L Account

Balance Sheet
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Structure of Accounting
Ledger Accounts
Income
Credit Debit
Liability Asset Expenditure
Balance Sheet
P & L Account
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Ledger Grouping
Income Groups



Liability Group
Expenditure Groups



Asset Group
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Profit & Loss Account Group
Income :
Direct Income
Indirect Income
Sales Accounts

Expenditure :
Direct Expenses
Indirect Expenses
Purchase Accounts

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Balance Sheet Group
Liabilities :
Capital
Bank OCC/Bank OD
Current Liabilities
Duties & Taxes
Loans (Liability)
Provisions
Reserves & Surplus
Retained Earnings
Secured Loans
Sundry Creditors
Suspense
Unsecured Loans


Assets :
Bank Accounts
Cash in Hand
Current Assets
Deposit (Assets)
Fixed Assets
Investments
Loans & Advances
(Asset)
Misc. Expenses (Asset)
Sundry Debtors


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Accounting Software
It is a system that carries out mechanical
operations in accounting process.
It does not have any accounting
knowledge.


17
What is buying a software ?
We actually never buy a software
Demo copy of all software is available free
We buy license to use the software
18
Legal/Demo/Pirated Software
Legal software - Full functional software
without any restrictions.
Demo Software - Used for demo purpose
with all major features but with a very few
restrictions.
Pirated software - Cracked software,
nearly full functional, but illegal.
19
Demo / Educational Version
This is a full functional software except a
very few restrictions.
This can be very well used for learning
purpose.

20
Software License
License to use is to bought at the time of
buying a software.
This includes a unique Serial No. and a
key for that particular serial number.

21
Software Versions
Version are used to differentiate same
software according to stages of
development.
This is a totally new software with some
major changes.
E.g. Tally 4.5, 5.4, 6.3, 7.2, 8.1, 9, ERP9




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Software Release
Releases are like editions of a book.
Software of same version with a new
release will be having minor changes.
Changes / updations are made in every
software on continuous basis.
Updations may be related to rectification of
mistakes, addition of new features, statutory
changes, etc.

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Types of Licenses
Single User
Multi User
In case of Tally, there is no limit on
number of users.
In some cases, licensing may be
according to the number of user, i.e.
for every five users, or per user, etc.

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Comparison of softwares prices
Software Single User
Rs.
Multiuser
Rs.
Busy

11,880 29,770
(Unlimited Users)
Miracle 13,500 27,000
(Unlimited Users)
Focus 33,000 2,500 per user
Tally 13,500 40,500
(Unlimited Users)
Wings 15,000 25,000 (five user)
Rs. 10,000/five
users
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Why to learn Tally only ?
Tally is king of accounting packages in India.
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Tally Versions
Tally 4
Tally 4.5
Tally 5
Tally 5.4
Tally 6.3
Tally 7.2
Tally 8.1
Tally 9
Tally.ERP 9
Basic Accounting
Basic Accounting
Window Based
Inventory
Hardware Lock
VAT, Service Tax, TDS
Multilanguage, FBT, Excise
International Taxation, Payroll
Excise for Manufacturers,
Remote Login






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Operating Systems
Upto Tally 4.5, it was using DOS.
From Tally 5 onwards, all versions are
windows based.
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DOS & Windows
Feature DOS Windows
Speed More Less
Printing Cost Less More
Reliability More Less
User Friendliness Less More
Presentation Poor Excellent
Facilities Less More
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Leaders in Generalised Accounting Softwares
Tally (Tally India Pvt. Ltd., Bangalore)
Busy (Busy Infotech Pvt. Ltd., New Delhi)
Wings (Wings Infonet Ltd., Hyderabad)
Focus (Softline Software Services Pvt. Ltd.,
Hyderabad)

30
Company
Company in Tally means any accounting
unit.
It includes Limited Company, Partnership
Firm, Trust, Society, College, School,
Proprietorship, etc.
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What is Accounting Data ?
Masters
Vouchers
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Masters
Heads that are to be set only once.
This is the standing data.
Not expected to change frequently
Forms integral part of accounting data.

33
Vouchers
This is a place where transactions
are recorded.
This will contain links to masters.
This may include other information
like date, narration, quantitative
details, reference, etc.
34
How data is stored ?
In masters, independently
In vouchers along with link to
masters

35
Types of Masters
Accounting Masters
Inventory Masters
Payroll Masters
Statutory Masters

36
Basic Menu Style
Masters
Transactions
Reports
Configurations/Settings
37
Masters
Creation
Alteration Group, Name, Contact
Details,
Deletion

38
Vouchers
Used only for entering transactions in
software.


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Reports
For viewing information
For alteration of transactions
For printing
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Voucher Types in Tally
F4 : Contra
F5 : Payment
F6 : Receipt
F7 : Journal
F8 : Sales
F9 : Purchases


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F4 : Contra
Cash deposited in bank
Cash withdrawn from bank
Cash to cash transfer
Bank to bank transfer

42
F5 : Payment
All types of payments are entered
through this voucher type. (Cash and
Bank)
Credit item of a payment voucher shall
be either Cash or Bank Account only.
There can be two modes, Single Entry
Mode or Double Entry Mode.
Voucher can be with Dr. and Cr. or with
To and By as prefixes.

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F6 : Receipt
There can be only two types of receipts.
Cash Receipt and Bank Receipt.
Both these receipts has to be entered
here.
Debit item of Receipt Voucher will always
be either Bank or Cash
There can be two modes, Single Entry
Mode or Double Entry Mode.
Voucher can be with Dr. and Cr. or with
To and By as prefixes


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F7 : Journal
This voucher is used for non cash
transactions.
E.g. Depreciation, provisions, trasnfer
entries, purchase of fixed assets on credit.
Journal voucher should not be used for
credit sales or credit purchases.


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F8 : Sales
This is used for cash sales as well as
credit sales.
There can be two modes, As Invoice or
As Voucher.
Partys A/c Name means ledger to be
Debited, write Cash in case of Cash Sales

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F9 : Purchases
This voucher type is used for both types
of purchases, Credit as well as Cash
There can be two modes, As Invoice or
As Voucher.
Partys A/c Name means ledger to be
credited, Write Cash in case of Cash
Purchases.

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Reports in Tally
Balance Sheet
Profit & Loss Account
Ratio Analysis
Display

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Display
Trial Balance
Day Book
Accounts Books
Statements of Accounts
Inventory Books
Statement of Inventory
Cash Flow
List of Accounts
Exception Reports


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