BASIC FUNCTIONS OF TALLY 7.

2
TALLY 7.2 Accounting has total 15 Groups & 13 Sub-Groups as below:
GROUPS 1 2 CAPITAL a) Capital Account b) Reserve & Surplus Current Assets a) Bank Account b) Cash-in-hand c) Deposits (Asset) d) Loans & Advances (Asset) i) Loan to Staff ii) Loan to Mr. X,Y,Z iii) Share Application (Advances) e) Stock in hand f) Sundry Debtor (Customer) Current Liabilities a) Duties & Taxes (ST, VAT, Excise etc.) b) Provisions (Income Tax, Depreciation, Insurance, Rent , Salary etc.) c) Sundry Creditors (Party) Fixed Assets (AC, Computer, House, Furniture, Car, Cell Phone etc.) Investments (Shares, FD, Bonds, MF etc.) Loans (Liability) a) Bank Occ A/c b) Secured Loans (against securities: car, home etc.) c) Unsecured Loans (To X,Y,Z without securities) Direct Income a) Consulting revenue, Professional fees etc. Indirect Income a) Discounts, commissions, interest etc. Direct Expenses a) Wages to labourers, carriage inward etc. Indirect Expenses a) Salary, conveyance, stationery, telephone, electricity, etc. Sales Account Purchase Account Misc. Expenses (Asset) Suspense Account Profit & Loss A/c

4 5 6

7 8 9 10 11 12 13 14 15

VOUCHERS
There are two types of Vouchers: a) Accounting Voucher & (b) Inventory Voucher All transactions are entered thru vouchers. A transaction is supported by a Document, e.g. suppliers bill, copy of sales bill, counter foil, record slip, entry of cheque book, pay-in slip, pay register etc. Following Vouchers are used to record non-cash transactions (normally entered in Journal) a) Sales Voucher b) Purchase Voucher c) Debit Note d) Credit Note Following Vouchers are used to record Cash & Bank transactions. a) Receipt (F6) b) Payment (F5) c) Contra (F4)

Contra Voucher (F4)

Cr Dr Source of funds Destination of funds

Payment Voucher (F5)

Dr Cr Ledger A/c paid to Cash or Bank A/c

Receipt Voucher (F6)

Cr Dr

Ledger A/c received from Cash or Bank A/c

Journal Voucher (F7)

This is an Adjustment Voucher, normally used for adjustment between ledger accounts. Provision for Liabilities, Income receivables, depreciation etc. (without affecting Cash or Bank account). Dr Cr Ledger A/c paid to Ledger A/c paid from

Sales Voucher (F8)

Any sales transaction (whether for goods or services) are entered in Sales Voucher. You receive payment immediately by cash or cheque. Instead of making one Sales voucher debiting the party and another Receipt voucher crediting the party, you can create a composite Sales Voucher. Instead of Party Ledger, you can select Cash or Bank account. Dr Cr Name of Buyer Sales A/c

You can also enter Sales Voucher involving several Billing Terms:

Dr Cr Cr Cr Cr

Name of Buyer Sales A/c Duty / tax Packing Charges Discount

Purchase Voucher (F9)

Cr Dr Name of Seller Purchase A/c

Credit Note
A Credit Note is generally issued when a buyer returns some goods that you sold him (sales return) or if you grant him credit due to rate difference or discount/rebate or due to some reason now you like to square off a debit balance. Cr Dr Party A/c (Customer) Sales Returns (Sales)

The first entry must be a Credit involving any Debtor/Creditor, Cash/Bank and second should be a debit to a ledger placed under Sales, Duties & Taxes and other revenue group.

Debit Note
A Debit Note is entered when you make purchase return or when youve short-billed a customer or your supplier have granted credit to you on account of rate difference, discount etc. Dr Cr Party A/c (Seller) Purch. Return (Purchase)

Cost Centres in F11

Inventory values are affected: For company maintaining account with Inventory, ledgers like Sales, Purchase etc. that affect Inventory value select Yes. For other ledgers e.g. Customs Duty, excise, Sales Tax or Direct Expense, which are included in Invoice are to be set to Yes.

Balance Sheet

To view a group in detail (e.g. Current Assets), press Shift + Enter. It will open Sub-groups cash-in-hand, bank account, sundry debtors etc. To alter Group or Ledge in Balance Sheet, press Ctrl + Enter ALT + R ALT + S : To remove unwanted lines from the report : To restore lines

Examples of various Journal Entries

Write-off Expenses (on 31st Mar)
Dr Cr Bad Debt S.Kumar.com

Depreciation Entry (on 31st March)

Dr Cr Cr Cr Cr Depreciation Expenses Computer Furniture Motor Vehicle Cell Phone

Full Depreciation is allowed if asset is used for more than 180 days, otherwise 50%

Adjustment Entry (on 31st Mar)

Transfer balance of Withdrawals to Capital A/c Dr Cr Jitendra Gajjar Capiral A/c Withdrawal A/c

Provision Entry (on 31st Mar)

Dr Cr Dr Cr Dr Cr Salary Expenses Salary Expense Payable Income Tax (2007-08) Income Tax Payable Rent Expenses Rent Expense Payable

Dr Cr

VAT Adjustment A/c VAT Payable

Closing Entry (on 31st Mar)

When all other entries are made as explained earlier, Balance Sheet is completed by carrying out following Closing Entry. Transfer of P&L A/c to Capital A/c Dr Cr P&L A/c Jitendra Gajjar Capital A/c

Transfer stock-in-hand to Closing Stock Dr Cr Closing Stock (Current Assets) Share Purchase A/c

EXPORTING DATA
Suppose you want to create another account with similar Ledgers as an existing account, there is no need to create all the ledgers in new account. Instead, you can export all the data (ledgers etc.) as mentioned below. If you want to transfer data from JVG to DJG In Gateway of Tally, select Display > Enter Select List of Accounts > Enter Click on Export

Select Ledgers and Enter Now Shut JVG Open DJG In Gateway of Tally, Select Import MastErs Youll see following screen in which enter file name as JVG and Enter

All the ledgers will be transferred to DJG

SHARE APPLICATION (IPO)

While applying for an IPO, create a ledger called Share Application under Current Assets. Use Payment Voucher F5. Cr Dr Kotak Bank SB-3054 Share Application

After the allotment of shares, transfer them to Shares Portfolio (Investment). Use Journal Voucher F7. Dr Cr Shares Portfolio Share Application

SHARES PURCHASED FOR TRADING

Create following Groups, Ledgers etc. Accounts Info > Ledgers > Create > Share Purchase A/c (under Purchase A/c) Accounts Info > Ledgers > Create > Share Sales A/c (under Sales A/c) Create Ledger Angel Capital & Debt Market Ltd (under Sundry Creditors) Create Ledger Angle Broking Ltd (under Current Assets) Create Ledgers STT (Trading), Service Tax (Trading) etc. under Direct Exp. Select Inventory Info > Units of Measure > Create > nos Inventory Info > Stock Groups > Shares (under Primary) Inventory Info > Stock Items > Create > Unitech Ltd (or other scrip)

VIEW STOCK LIST

Display > Inv. Books > Group Summary > Shares > View STOCK Summary F11: Company operations alteration screen to set/modify features. F12: Brings ACCTS/INV config. Screen to config. Options. Bill-wise details: available only for sundry Creditors / Debtors.

PRINTING
If you want to print P&L A/c of JVG-HUF account, follow the steps below. Gateway of Tally > Profit & Loss Account > ALT + F1 (for detailed view) Click F12: Configure and choose the display option If you wish to have P&L horizontal, it will appear as below

 Click on Print on side menu and following screen appears.

If you want to change any parameters, press Backspace key To change Paper Type to A4, click on Select Printer

Press Enter and you will see next screen

 Select Paper size A4 > OK

 Now youll see the following screen

To view it clearly before printing, press ALT + Z (zoom)

After viewing, press Esc key to go back to above printing mode

PC Shut Down: ALT + F4 > Enter

OR Press Window key, then u, u