Tally ERP 9

Q What is Tally and How to Install Tally ERP 9

Tally is an accounting package or software which is mainly used for vouchers, fnancial statements, and
taxation in many industries, and has specialised packages for retail businesses
You can install Tally.ERP 9 using one of the following methods
Method 1
Double click the install.exe icon on the CD.
Method 2
Click START from Windows.
Select RUN.
TYPE <CD drive>:\INSTALL.
Press ENTER.
Follow the instructions displayed on your screen to proceed with the installation of Tally.ERP 9.
The Tally.ERP 9 Setup Wizard screen is displayed as shown.
Click Next to continue with the installation
The Tally.ERP 9 Setup screen appears
In the Programs section check select Tally.ERP 9.
In the Tally.ERP 9 Setup section, you can accept the default directories as shown or click on the
buttons provided next to the respective text boxes to change the path of Application Directory,
Data Directory, Confguration Directory, Language Directory and License Directory.
Application Directory - The program fles reside in this directory.
Data Directory by default Tally.ERP 9 data is stored in C:\Tally.ERP 9\Data. During the
installation process, the wizard detects and retains the data path of previously installed version of
Tally.ERP 9.
Confguration Directory by default the confguration fles reside in the application directory.
Language Directory by default the Language fles with the extension .dct are stored in the
application directory.
In the License Details section, by default Use Local License File is selected.
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Tally ERP 9
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License Directory - by default the license fle resides in the license directory.
By default, India/SAARC appears in the Country Selection. Select Others if you are not residing
in India or any of the SAARC countries.
Click Install.
The Setup Status screen is displayed as shown.
In the Installer screen click Finish to complete Tally.ERP 9 Setup.
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Q How to create a Company in Tally ERP
In Tally, company means an organisation whose accounts are to be maintained on computer.
For that user have to declare list of accounts used in that company and then start enter daily
transactions.
Creating company means enter detail information about the company.
By default, Tally software shows opening screen with gateway of Tally, function button and
calculator.
Then click on function button F3 (Alt + F3) on the button panel to display Company Info Menu.
This show following menu:

This menu is used for selecting company or for creating a new company
To create a new company, select create company options by clicking this option or by pressing C.
Then the screen display various felds to fll up information like name of company with alias,
address, currency, fnancial year, income tax number and sales tax number etc. as shown below
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At the end, it asked whether accept the data or not. If user selects Yes option then the company is
created and it can be loaded from company Info menu.
Q. What is group in Tally? Enlist the groups.
(i) In tally, all accounts entries can be grouped or subgrouped according to the need of users.
(ii) Group means the type of the account. Functions of each group are fxed.
(iii) Tally provides facility to user to create own group. Also it provides 28 predefned groups. Out of
these 28 groups, 15 are primary groups and 13 are subgroups.
(iv) Following is list of groups that afects the Balance Sheet:
(a) Capital Account
Reserves and Surplus
(b) Current Assets
Bank Accounts
Cash-in-hand
Deposits (Assets)
Loan and Advances (assets)
Stock-in-hand
Sundry Debtors
(c) Current Liabilities:
Duties and Taxes
Provisions
Sundry Creditors
(d) Fixed Assets
(e) Investment
(f) Loans (Liability)
Bank OD Accounts
Secured Loans
Unsecured Loans
(g) Suspense Account
(h) Branch/Divisions
(i) Miscellaneous Expenses
Following group afect Manufacturing, Trading and Proft and Loss Accounts:
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(j) Purchase Account
(k) Sales Account
(l) Direct Income
(m) Indirect Income
(n) Direct Expenses
(o) Indirect Expenses
Q. How to create single and multiple groups?
(i) Group is the type of account. Group decides how transactions take place in accounting.
(ii) Tally, provides 28 predefned group. But if user wants to create any other group then use create
group option.
(iii) These new group is a subgroup of an existing group.
(iv) If user wants to create a new subgroup under diferent groups then follow the following steps:
(a) From Gateway of Tally, select Account Info.
(b) Then select Group option, as user wants to create group.
(c) If user wants to create single group at a time then select Create option from Single group.
(d) Now tally shows data entry screen for group as follows: Groreation
(e) Name: Enter the name of a group that user want to create.
(f) Under: Select the existing primary group name.
(v) If user wants to create subgroups under more than one parent group or under one parent group
then user must select Create option from Multiple groups.
(vi) Then multiple group creation screen will appear.
(a) To create subgroup under one parent group, select that group in the option Under Group.
(b) To create subgroups under more than one parent group, select all items in the option
Under Group.
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Q. Why Tally provides two options like single ledger and multiple ledgers? How to create single and
multiple ledgers?
(i) Ledger is a book that is used to store detail of each account. It is actual account heads to which
transaction is identifed.
(ii) When user creates a company, at that time very frst user creates diferent ledgers.
(iii) When user wants to create single ledger account of diferent group then user must select single
ledger option.
(iv) But if user wants to create diferent accounts of same group then user must select Multiple
Ledger option.
For creating ledger user follows following steps:
(i) From Gateway of Tally, select Account Info.
(ii) Then select ledger option as user wants to create ledger.
(iii) If user wants to create single ledger means each account of diferent groups then select Create
option of Single ledger.
(iv) Now Tally shows data entry screen for ledger. Now enter name of Ledger account to be created
and alias of account, opening balance and group and that account.
(v) If user wants to create diferent accounts of the same group then user must select Create option of
Multiple ledgers.
(vi) In this option, frst Tally ask to enter name of the group. Then enter the list of all accounts of that
group with the opening balance,. For example- Stationery A/c, Salary A/c, Travelling A/c all falls
under group Indirect Expenses.
(vii) If user want to create various ledger accounts under various groups then select All item in the
under group feld.
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Q. What is voucher? Explain the steps to create, Display & Alter Vouchers?
(i) Voucher is a data entry screen for an account in which user enter daily transactions on which the
accounts are build up.
(ii) All debit and credit record is maintained using the voucher entry.
(iii) Voucher is a basic entry screen in Tally after ledger.
(iv) Tally provides several predefned vouchers with diferent formats and for diferent uses.
(v) To create voucher following steps are used:
(a) Open Tally
(b) First create all required ledgers of that company.
(c) Then select Voucher Entry option from Gateway of Tally.
(vi) In voucher, user enters name of account and debited or credited amount.
(vii) Vouchers is created as per the type of the transaction.
Creating Vouchers :
Gateway of tally Accounts info Voucher Types Create
The Voucher Type Creation screen is divided into three sections depending on various settings:
General
Printing
Voucher Class
Displaying Vouchers :
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Gateway of tally Accounts info Voucher Types Display
Altering Vouchers -
Gateway of Tally Accounts info Voucher Types Alter
Q Explain Stock Group in Tally ERP 9
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the
classifcation of Stock Items.
You can group Stock Items under diferent Stock Groups to refect their classifcation based on some
common features such as brand name, product type, quality, etc.
Grouping enables you to locate Stock Items easily and report their details in statements.
Go to Gateway of Tally > Inventory Info. > Stock Groups
Q Explain How to Create Stock Group
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group)
A brief description on each of the felds in the Stock Group Creation screen follows:
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Name
Enter the name of the Stock Group to be created. For example, Grade One.
Alias
Enter additional name apart from primary name [if required]. You can create any number of additional
names.
Under
Specify whether it is a primary group or a sub-group of another group, by selecting from the list.
Press Alt+C to create a parent group, if you do not have it in the list.
Can quantities of items be ADDED?
This feld pertains to information on measuring the units of the Stock Items that you would categorise
under the Stock Group.
The Stock Items categorised under the group should have similar units for them to be added up. You
cannot add quantities in Kgs to quantities in Pcs.
Q Explain How to Create Multiple Stock Groups.
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)

Select the parent group under which you want the new groups to be created from the List of Groups.
A brief description on each feld in the Multi Stock Group Creation screen is given below:
Name of Stock Group
Enter the name of the Stock Group.
Under
If you select any group other than All Items in the Under Group feld, then this column is flled in
automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

If you select All Items in the Under Group feld, the cursor does not skip this feld and allows you to enter
the parent group for each one of them.
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Items are Addable? (Y/N)
You can select whether units of the Stock Items under Stock Group are to be added or not.
Q. Explain Bank Reconciliation in Tally ERP 9
Reconciling the Companys Bank Account with the help of Bankers Statement is regular task of
accounting. Tally has the facility for Bank Reconciliation through which you can perform the task rather
than doing manual reconciliation.
Step 1: Select the Bank Account for which you want to do the task from
Go to Gateway of Tally Display Account Book Cash / Bank Book
Step2 : Select the transaction for particular month for which the reconciliation has to be done.
Step 3: Press F5 for reconciliation which will appear as below
Step 4: Enter the Cleareance date for the cheques.
Q. How to access reports in Tally ERP 9.
TO access reports in tally
Go to Gateway of Tally Display
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To view Proft & Loss Account Report
Go to Gateway of Tally Display Statutory Reports MCA Reports Proft & Loss A/C
To view Balance Sheet
Go to Gateway of Tally Display Statutory Reports MCA Reports Balance Sheet
To view Trail Balance
Go to Gateway of Tally Display Trial Balance
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To view Stock Report
Go to Gateway of Tally Stock Summary
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