Tally Notes_ Basic Accounting

11/29/13

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Saturday, Satu rday, 18 June Jun e 2011

Basic Accounting Accounting Basic concept of accounting

Earn O Accounting: It is an art of recording, classifying and summarizing in significant manner and in terms of money, transactions and events Accounting: which are of financial character an d interpreting interpreting the results thereof. thereof. Business transaction: A transaction: A business transaction is “The m ovement of m oney and money’s worth form one person to another”. Or exchang e of values between two parties is also known as “Business Transaction”. Purchase:

A purchase means g oods purchased purchased by a busines businessman sman from supp suppliers liers..

Sales:

Sales is goods sold sold by a busines businessman sman to his customers.

Purchase Return or Rejection in or Outward I nvoice:

Purchase return means the return of the full or a part of goods purchased

by the businessman to his suppliers. suppliers. Sales Return or Rejection out or Inward Invoice:

Get Rs.99, Earn RS. 1

Search

Tally N ► 2013 2013 (1 (1 ► 2012 2012 (1 (1

Sales return means the return of the full or a part of the goods sold by the

customer to the businessman.

▼ 2011 2011 (2 (2 ► July ▼ June

Assets: Ass ets: Assets Assets are the things and properties properties posse possessed ssed by by a busines businessman sman not for resale but for the use in the business. business. Liabilities:

All the amounts pay able by a busines businesss concern to outsiders outsiders are called liabilities. liabilities.

Capital:

Capital is the am ount invested for starting a busines businesss by a pers person. on.

Debtors:

Debtor is the person who owes amounts to the businessman.

Creditor:

Creditor is the person to whom amounts are owed by the businessman.

Debit:

The receiving aspect of a transaction is called debit debit or Dr.

Credit:

Basic

The giving aspect of a transaction is called credit or Cr.

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Tall y Notes: Basic Accounting

Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from his business for his personal, private and domestic purpose. Drawings may be made in the form cash, goods and assets of the business. Receipts:

It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received voucher.

Account: service.

Account is a summa rized record of all the transactions relating to every pers person, on, every thing or property and every type of

Ledger:

The book of final entry where accounts lie.

Journal entries:

A daily record of transaction.

Trail Balance: It is a statement of all the ledger account balances prepared at the end of particular period to verify the accuracy of the entries made in books of accou nts. Profit: Excess of credit side over debit side. Profit and loss account: Balance Sheet:

It is prepared to ascertain actual profit or loss of the business.

To ascertain the f inancial position of the business. It is a statement of a ssets and liabilities liabilities.. Types of accounts

Personal account:

Personal Perso nal accounts are the accounts of persons, persons, firms, concerns and institutions institutions which the businessmen businessmen deal.

Principles:

Debit the receiver Credit the giver

Real Account: These are the accounts of of things, materials, assets & prop properties erties.. It has physical existence which can be seen & touch. touch. Ex. Cash, Sale, Purchase, Furniture, Investment etc. Principles:

1 58

Debit wha t comes in Credit wha t goes out

Nominal account: Nominal account is the account of services received (expenses and Losses) Losses) and services services given (income and gain) Ex. Salary, Rent, Wages, Stationery etc. Principles:

Total P

tutorial Ladli sms Acc ountin

Debit all expense/losses

tally video

Credit all income/ gains

Tally 7.2 Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting software. Procedure for cre ating company company in T ally Double click on Tally icon on desktop. Alt+F3 desktop. Alt+F3 Company info-Create info-Create company.

Followe Join t w ith Google

Members (

Accounts Only: To Only: To maintain only the financial accounts of the company. Inventory (stock) management is not involved in it. Account with Inventory:

This is the default option, which allows allows maintaining maintaining both the financial financial account of the company as well

as the inventory of the company. company. Select Company:

We can choo choose se the compan company y which which is already created. created. Shortcut Sho rtcut key - F1 .

Shut Company:

It is used to clos closee the compan company y which which is opened. Shortcut key - Alt+F1. Alt+F1.

Already a me







11/29/13


Enter

To accept information ty ped into a field. To accept a voucher or master. To get a report with further details of an item in a report.

Esc

To remove what has been typed into a field field.. To exit a screen. To indi indicate cate you do not want to accept a voucher or master.

Ctrl+A

To accept a form whereve r you use the key combi combination nation the screen or report will be accepted as it is on this screen.

Ctrl+Q

It quits the screen without making any chang changed ed to it.

Alt+C

To create a maste r at a v ouch oucher er screen. When working working within an amount amount field presses Alt+C to act act as a calculator. calculator.

Alt+D

To delete a v ouch oucher. er. To delete a master.

Ctrl+Enter Ctrl+En ter

To alter a master whil whilee making an entry or viewing report.

F2

Date

Alt+F2

Change period period

Alt+F1

To see detail

F11

Features compan company y

F12 F1 2

Configuration options are applicable to all the companies in a data director directory. y.

Ctrl+N

Calculator scree n.

Ctrl+V

Voucher Vouch er mode (Cr. Dr) Invoice mode (name of item, rate, quantity, and amoun amount) t) Gateway of tally-Accounts info-Group

Bank account

Bank Account

Bank Od account

Branch/division Branch/div ision

Capital account

Cash in hand

Current asset

Current liabi liability lity

Deposit Depo sit

Direct Di rect expenses

Direct Di rect inc income ome

Indirect expense

Indire ct income

Duties and tax

Fixed asset

Invest ment

Loans and advance

Loan (liability)

Miscellaneous Miscell aneous expenses

Provisions

Retained earning

Reserves and surplus

Purchasee account Purchas

Sales account

Secured Secur ed loan

Stock in hand

Sundry debtor’s

Sundry creditors

Suspense

Unsecured accou account nt







11/29/13


These ar e the ex penses which are indirectly indirectly r elated to manufacturing manufacturing of goods. goods. Ex. Salary, rent, stationery, advertisement, printing Depreciation:

Decrease the value of the asset.

Sundry debtors:

The person who is the receiver or customer

Sundry creditors:

The person who gives or suppli supplier. er.

Expenses Outstanding or Unpaid expenses or Expenses due: Expenditure incu incurred rred during during current year but the amount on which is not yet paid. (Added to the expenditure on on the debit side and entered on the liability side.) Income received in advance or Income received but not earned Income received during the current year but not earned or a part of which relates to the next year. (Deducted form the concerned income on the credit side and entered on the liability side)

Prepaid advance or Expenses or Prepaid expenses Expenditure paid during current year but not incurred or a part of which relates to the next year is called expenditure prepaid. (Deducted (Deducted form the con concerned cerned ex penditure on the debit side and entere d on the assets side) Income outstanding or income earned but not received or Income accrued Income outstanding outstanding means income income earned during the current y ear but the amount on which which is not not y et r eceived (added to the concerned income on the credit side and entered on the asset side) Gateway of Tally-Accounts info-ledger-create Led ger

Group

Opening stock

Stock in hand

Purchase

Pur chase account

Purchase r etur n

Pur chase account

Fr ight char ges

Dir ect ex penses

Car r iage inwards or Pur chases

Dir ect ex penses

Car tage and coolie

Dir ect ex penses

Octr oi

Dir ect ex penses

Manufactur ing wages

Dir ect ex penses

Coal, gas, water

Dir ect ex penses

Oil and fuel

D irect expenses

Factory rent, insurance, insurance, electricity, lighti lighting ng and heating Di Direct rect expenses Sales

Sales account

Salary

I ndir ect ex penses

Postage and telegrams


T elephone char ges


Rent paid


Rates and tax es


I nsurance


Audit fees

Indirect expenses

I nter est on bank loan


I

I di

l

id







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Adver tisement

Indirect expenses

Bad debts


Repair r enewals


Mot or ex penses


Depr eciat ion on assets


I nter est on inv est ment r eceiv ed

I ndir ect income

I nter est on deposit r eceiv ed

I ndir ect income

I nter est on loans receiv ed

I ndir ect income

Commission r eceiv ed

I ndir ect income

Discount r eceiv ed

I ndir ect income

Rent r eceiv ed

I ndir ect income

Div idend r eceiv ed

I ndir ect income

Bad debts recov er ed

I ndir ect income

Pr ofit by sale of assets

I ndir ect income

Sundr y income

I ndir ect income

Loan fr om other s

Loan Liabilit ies

Bank loan

Loan Liabilities

Bank ov er dr aft

Bank OD

Bills pay able

Cur r ent Liabilities

Sundr y cr edit or s

Sundry cr editor s

Mor tgage loans

Secured loans

Ex pense out st anding


I ncome r eceiv ed in adv ance


Other liabilities


Capital

Capital account

Dr awings

Capital account

Cash in hand

Cash in hand

Cash at bank

Bank account

Fix ed deposit at bank

Deposit

I nv estments

I nv est ments

Bills r eceiv able

Cur r ent asset

Sundr y debtor s

Sundry debt or s

Closing stock

Stock in hand

Stock of stat ioner y

Cur r ent asset

Loose tools

Fix ed asset

Fix t ur es and fittings

Fix ed asset

Furnit ur e

Fix ed asset

Mot or v ehicles

Fix ed asset

Plant and machiner y

Fix ed asset

Land and building

Fix ed asset

Leasehold proper ty

Fix ed asset

Patents

Fix ed asset

G oodwill

Fix ed asset

Pr epaid ex penses

Cur r ent asset

I ncome outstanding

Cur r ent assset

Trading account: account: Buying and selling of goods. Dr.

Receiving aspect

Giving aspect

Cr.







11/29/13


T o Factor y r ent, fuel power

xxx

To Gro Gross ss pro profi fitt (tra (tran nsf sfer er to pr pro ofi fitt and and lo loss ac acccoun unt) t)

xxx

To Profit and loss account: Actual account: Actual profit and loss of the business Indi In dir rec ectt exp expe ens nses es or pay paym ment nts s Amoun untt

Indi In dir rect inc inco ome or or re rece ceip ipts ts Amoun untt

To

Salar y

x xx

By

Gr oss pr ofit Gr

xxx

To

Postage and T elegr am

x xx

By

I nter est on inv estment r eceiv ed

xxx

To

T elephone char ges

x xx

By

I nter est on deposit r eceiv ed

xxx

To

Rent paid

x xx

By

I nter est on loans r eceiv ed

xxx

To

Rat e and tax es

x xx

By

Discount receiv ed

xxx

To

I nsur ance paid

x xx

By

Discount receiv ed

xxx

To

I nter est on bank loan

x xx

By

Rent r eceiv ed

xxx

To

Bank char ges

x xx

By

Bad debts r eceiv ed

xxx

To

Pr inting and stationer y

x xx

By

Net loss

xxx

To

Discount allowed

x xx

To

A dv dv er er ti tise me ment

To

Carri Ca rriag agee ou outwa tward rd (s (sal ales) es)

To

Dep eprec recia iati tion on on as asset setss

To

Gen Ge ner era al ex expe pen nse sess

To

T ra rav eling

To

Bad debts

To

Net pr pr ofit

Balance sheet: Actual sheet: Actual financial position Liabilities

Amount

A s se t s

Bank loan

xxx

Cash in hand

x xx

Bank ov er dr aft

xxx

Cash at bank

x xx

Bills pay able

xxx

Fix ed deposit at bank

x xx

Sundr y cr editors

xxx

I nv est ments

x xx

Ex penses outstanding

xxx

Bills receiv able

x xx

Capit al

xxx

Sundry debt or s

x xx

(- )dr awings

xxx

Closing stock

x xx

Net pr ofit

xxx

Stock of stationer y

x xx

Fur nitur e

x xx

Plant machiner y

x xx

Land and building

x xx

Motor v ehicles

x xx

Prepaid ex penses

x xx

I nc ncome outstanding

x xx xx

Alt+F3 Company Creation Gateway of tally-Accounting tally-Accounting voucher F4

Contra: Con tra:

Records funds transfer between cash and bank accou accounts. nts. Deposit into bank or Opened bank account Cr. Cash Dr. Bank Withdraw form bank

Amount

Cr. Bank Dr. Cash









11/29/13


Cr. Sales F9

Purchase:

Records all purchase. Cr. Cash/party (incas (incasee of credit-party ) Dr. Purchase

Journalize the following transactions 1. Commenced business with cash Rs.10, 000. 2. Deposit into bank Rs. 15,000 3. Bought office furniture Rs.3,000 4. Soled goods for cash Rs.2,500 5. Purchased goods form form Mr X on credit Rs.2,000 6. Soled goods to Mr Y on credit Rs.3,000 7. Received cash form Mr. Y on account account Rs.2,000 8. Paid cash to Mr X Rs. 1,000 9. Received commission Rs. 50 10. Received interest on bank deposit Rs. 100 11 . Paid into bank Rs. 1,000 12. Paid for advertisement Rs.500 13. Purchased goods for cash Rs. 800 14. Sold goods for cash Rs. 1,500 15. Paid salary Rs. 500 Gateway of tally-Account info-Ledger-Create Gateway of tally – Accounting voucher Sl.No

Key

Voucher

Ledger Cr . Capital

1

F6

Receipt

Gr oup Capit al account

Dr. Cash

Cash in hand

Cr . Cash 2

F4

Contr a

Cash in hand

Dr. Bank

Bank account

Dr. Office 3

F5

Pay ment

Fixed asset

furniture Cr . Cash

Cash in hand

Dr. Cash

Cash in

Type of account

Pr in inciples

Amount

Per sonal

Giv er

1 0,000

Real

Comes in

1 0,000

Real

G oes out

1 5 ,000

Real

Comes in

1 5 ,000

Real

Comes in

3,000

Real

G oes out

3,000







11/29/13


9

F6

income

Receipt Dr. cash

Nominal

income

50

Real

Comes in

50

Cash in hand

10

F6

Receipt

Cr. Interest on

Indirect

bank deposit deposit

income

Dr. Bank

Bank

Nominal

account Cr . Cash 11

F4

Contr a

Cash in hand

Dr. Bank

Bank account

12

F5

Pay ment

Dr.

Indirect

Advert isement

expenses

Cr . Cash

Cash in

Cr . Cash 13

14

F9

F8

Pur chase

Sales

Cash in hand

Dr. purchase

Purchase

Cr cash

account

Dr. cash

Cash in hand

Cr . Sales

Sales account

Dr. salary 15

F5

Pay ment

I ndir ect expense

Cr . Cash

Cash in

To view-

1 00

Real

G oes out

1 ,000

Real

Comes in

1 ,000

Debit all expenses G oes out

5 00

Real

G oes out

800

Real

Comes in

800

Real

Comes in

1 ,5 00

Real

G oes out

1 ,5 00

Real

Debit all expenses G oes out

Alt+F3 Company Company cr eation eation-Maintain-Accoun -Maintain-Accounts ts with inventory Gateway of Tally-Inventory information-Unit of measure Gateway of tally –Inventory information-Godown Gateway of tally-Inventory information-Stock group Gateway of tally – Inventory information-Stock item

(for ledger)

(Accounting (Accoun ting Vouch Voucher) er)

Inventory information

500

Real

Gateway of tally-Accounts info info-Le -Le dger-Multiple ledger Alter- All items

Gateway of tally-Displ tally-Displayay- Day book-Alt+F1 (to see detail)

100

Comes in

Nominal

hand

income

Real

Nominal

hand

Credit all

500 5 00







11/29/13


200

Moov @ Rs. 20.50

100

D’Clod @ Rs. 12.25

200

Adhensive tape roll @ Rs. 15.25

100

Band Aid box box @ Rs. 252

200

Boric Acid powder @ Rs.14

7. On 15-4-06 Sold to Akbar 500

Cadbury @ Rs. 6

200

5 Star @ Rs.5.25

50

Kit Kat @ Rs. 6

8. On 16-4-06 Paid to Cadbury company Rs. 9. On 18-4-06 Received from Pankaj 10. On 20-4-06 Paid to Paras Rs. 11. On 25-4-06 Received from Akbar Rs. 12. On 26- 4-06 Pur chase from Well Cloth Cloth

T-Shirts

Lee-25Pc-Rs.200 Nike-30Pc-Rs.300

Formal Shirts Pan America-35Pc- 400 Peter Engl England-30Pc-45 and-30Pc-45 0 Jeans Pants

Tiger- 20Pc-5 00 Ruff and Tuff- 30Pc-35 0

Cotton Pants Arrow- 40Pc-200

Ex-Calibar-20Pc-250

13. Paid Postage Rs. 500 by cheque 14. Received commi commission ssion Rs. 15,000 15. Paid wages Rs. 2,500

Procedure for Inventory Problem Gateway of Tally-Inventory Info-Unit of Measure-CreateSymbol-

Nos.

Pcs

Formal Name-Number

Pieces

Gateway of Tall Tallyy- Inventory I nfo nfo-Stock -Stock Group-Create







11/29/13


Pan America

Formal Shirts

Peter Engl England and

Tiger

Jeans Pants

Ruff and Tuff

Arrow Ex-Calibar

Cotton Pants

Journalize the follo following wing Transactions using using the debit and credit given American accounts accounts 1. Commenc Commenced ed business with cash

10,000

2. Deposited into bank

5,000

3. Purchase d goods for cash

3,000

4. Sold goods for cash

2,500

5. Purchased goo goods ds from A on credit

4,000

6. Sold goods to B on credit

4,500

7. Withd Withdraw raw from bank

3,000

8. Paid A on account 9.

2,000

Receive d from B on account

2,500

10. Took loan from C

5,000

11 . Gave loan to D

4,000

12. Paid salary

1,000

13. Cash withdraw from the business for personal use

200

14. Rent paid to E

1,000

Ledger

G roup

Capital

Capital Account

by the







11/29/13


Rakesh and company 1.

Started business with with cash Rs. 2,000, 2, 000, Bank Rs. 20, 000.

2.

Issued cheque for goods purchased Rs. 1,000.

3.

Bought goods for cash Rs.8,000.

4.

Bought furniture from Anil for cash Rs.100. R s.100.

5.

Bought goods from harish Rs. 1,500.

6.

Bought goods from chandan on credit Rs. 5,800.

7.

Returned damaged goods to Chandan Rs.800.

8.

Bought goods from Naveen and paid by cheque immediately Rs.400.

9. 10.

Sold goods to Guptha Guptha Rs. 1,000. Received a cheque from Guptha Rs.1,000 for goods sold.

11. 12.

Paid commission Rs.2,000. Paid wages by cheque Rs.4,000.

13. 14.

Draw cheque for personal use Rs.4,000. Draw cash for personal use from bank Rs.3,000.

15.

Receive a cheque from Manju Rs.2,800.

16. 17.

Borrow loan from Anands Rs.1,000. Paid Anands Loan with interest interest Rs.1,000.

Ledger

Group

Capital

Capital account

Bank

Bank account

Purchase

Purchase account

Anil

Sundry Creditor Creditor









11/29/13


Haridas and company 1.Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000. 2.Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000. 3.Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000. 4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000. 5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000. 6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100. 7.Received rent Rs.500, c ommi ommission ssion Rs.400. 8. Received a cheque from Ganesh Rs.1,000.

Ledger

Group

Capital

Capital account

Furniture

Fixed asset

Machinery

Fixed asset

Purchase

Purchase account

Anil

Sundry Creditor Creditor

Sales

Sales account

Rajesh

Sundry debtor

Arun

Sundry creditor

Ramesh

Sundry debtor







11/29/13


8. Sold goods for cash Rs.1,000. 9. Paid for postage Rs.20. 10.

Took loan from C Rs.1,500.

11.

Paid rent Rs.300.

12. Withd Withdraw raw from bank Rs.800. 13.

Received from A on account Rs.500.

14.

Paid commission by cheque Rs.200.

Ledger

Group

Capital

Capital account

Purchase

Purchase account

Bank

Bank account

Purchase

Purchase account

Stationary

Indirect expenses

Furniture

Fixed asset

Sales

Sales account

A

Sundry debtor debtor

B

Sundry Creditor

Potage

Indirect expenses

C

Sundry Creditor

Rent

Indirect expenses

Commission

Indirect expenses







11/29/13


11. Paid cash to Rahim

50

12. Returned goods to Ralkamal

200

13. Suresh returned goods

50

14. Paid salary

150

15. Sold goods for cash

500

16. Rao with withdraw draw for his persone personell use

800

17. Paid for station stationery ery

100

18. Paid rent

50

19. Received commission

225

Ledger

Group

Capital

Capital account

Purchase

Purchase account

Postage

Indirect expenses

Rajkamal

Sundry Creditor

Sales

Sales account

Rahim

Sundry Creditor

Suresh

Sundry Debtor

Nayak

Sundry Debtor

Purchase returns

Purchase account

Salary

Indirect expenses

Drawings

Capital account

Tally Notes_ Basic Accounting

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