Unit 8 Tally

UNIT 8: ACCOUNTING PACKAGE (Tally.ERP 9)

1

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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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

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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 damaged.

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Demo / Educational Version This is a full functional software except a very few restrictions. This can be very well used for learning purpose.

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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.

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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.8100 Hrs Information Technology Training Board of Studies, ICAI

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 software's pricesSoftware Single User Rs. 11,880 Multiuser Rs. 29,770 (Unlimited Users) 27,000 (Unlimited Users) 2,500 per user 40,500 (Unlimited Users) 25,000 (five user) Rs. 10,000/five users10100 Hrs Information Technology Training Board of Studies, ICAI

Busy

Miracle Focus Tally Wings

13,500 33,000 13,500 15,000

Classification of Features Compatibility Features Operational Features Accounting Features Technical Features MIS & Control Features

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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.

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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.

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How data is stored ? In masters, independently In vouchers along with link to masters

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Types of Masters Accounting Masters Inventory Masters Payroll Masters Statutory Masters

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Basic Menu Style Masters Transactions Reports Configurations/Settings

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Masters Creation Alteration Group, Name, Contact Details, Deletion

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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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Accounting for Software

Credit

Debit

Income

Expenditure

Liability

Asset

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Types of Accounts Personal

Real

Nominal

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Personal Accounts

Accounts representing persons or group of persons

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Real Accounts

Accounts related with real things in this world.

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Nominal AccountsAll Income and Expenses Accounts

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Rules of AccountingType of Account Debit Credit

PersonalReal Nominal

The Receiver

The Giver

What Comes In What goes out All Expenses & All Incomes & Losses Gains26 Board of Studies, ICAI

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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 AccountingUnderstanding the Transaction

Voucher EntryPosting Balancing Trial Balance P & L Account100 Hrs Information Technology Training

Balance Sheet29 Board of Studies, ICAI

Structure of AccountingLedger Accounts

Credit

Debit

Liability

Income

Expenditure

Asset

P & L AccountBalance Sheet100 Hrs Information Technology Training

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Ledger Grouping Income Groups Expenditure Groups

Liability Group

Asset Group

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Profit & Loss Account Group Income : Expenditure : Direct Income Direct Expenses Indirect Income Indirect Expenses Sales Accounts 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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Why to learn Tally only ?Tally is like Amitabh Bachchan

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Tally & Amitabh Bachchan Most popular Most user friendly Most versatile Most reliable Most punctual 100% Indian

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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

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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 & WindowsFeature Speed Printing Cost Reliability User Friendliness Presentation Facilities DOS More More More Less Poor Less Windows Less Less Less More Excellent More

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Software Giants in India TCS Infosys Wipro Satyam

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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) Miracle (R.K. Softwares, Rajkot)

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Company Company in Tally means any accounting unit. It includes Limited Company, Partnership Firm, Trust, Society, College, School, Proprietorship, etc.

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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

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F5 : Payment All types of payments are entered through this voucher type. (Cash and Bank) Debit 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