Tally .7.

2 Syllabus

1) Objectives of Tally
2) Features of Tally
3) Tally Screen Components
4) Creation , Select & Alteration of a Company
5) Predefined group of accounts in tally
6) Creation, Display & Alteration of a Single Ledger
7) Creation, Display & Alteration of a Multiple Ledgers
8) Creation, Display & Alteration of Single Stock Item
9) Creation, Display & Alteration of Multiple Stock Item
10) Creation, Display & Alteration of a Single Stock Group
11) Creation, Display & Alteration of a Multiple Stock Group
12) Creation, Display & Alteration of a Godown
13) Creation, Display & Alteration of Unit of Measure
14) Entering the Voucher (transactions)
Purchase, Sales, Contra, Payment, Receipt
15) Creation of Purchase Order
16) Creation of Sales Order
17) Creation of Debit Note
18) Creation of Credit Note.

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 Tally Notes

OBJECTIVES OF TALLY

Describe the Basic features of Tally

Identify the key components of Tally
Start and Exit Tally

Features of Tally

1 ) One of the Leading packages : The first version of Tally was released in 1988
and through continuous development, it is now recognized as one of the leading
accounting Packages across the globe

2) No accounting Codes : Many computerized accounting packages require numeric

codes for maintains the accounts. Tally pioneered ‘ no accounting Codes ‘ concept
and tally users have the freedom to allocate meaningful names to their data
throughout the system.

3) Complete Business Solution : Tally provides a comprehensive solution to the

accounting needs of Business. The package comprises financial accounting and book
keeping, inventory accounting and numerous tools for extracting , interpreting and
presenting the data.

4) Integrated / Non integrated Accounting and Inventory

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With tally, the user is able to choose which parts of the system to use – accounting,
inventory, or both and if both are used ,whether the accounting and inventory are to
be integrated or not.

Tally Screen Components

Title Bar : Displays the version number, system date and time and the Tally
Serial Number
Gateway of Tally Used for Calculator Functions
Calculator Displays the Buttons that provide quick interaction .
Buttons Toolbar Displays the buttons that provide a quick interaction with Tally.
Creating Company :
The Company can be created with the Option F3: Comp. Info on the Button bar or
By pressing Alt+F3.
This opens the Menu of Company Information
Option Create Company has to be selected from the available Option.
Create company will take you to the option Create company
Select company
Select Company option is used to select the company which you have created.
Alter company
Alter company is the option which helps you to alter the company information which
you have created

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Name : The Name of the company
Mailing Name : This repeats the name we can also alter the name
Address : This Gives Address of the company for correspondence
State : Mentions the state
Code : Gives the pin code
Vat : As per the requirement
Local Sales tax number : The sales Tax Number
Interstate Sales tax : It gives the interstate Sales Tax Number
Income Tax Number : It gives the Income Tax Number
Currency Symbol : It provides currency of the country
Maintain : Two Options are available 1) Accounts Only 2) Accounts
with Inventory
Financial year : The financial year of the accounts. (1 st April to 31st
March)
Books Beginning from : Date from which the business has been started if the
business is new one.
Tally vault Password : Tally vault Password is given at the end of financial Year
Use Security Control : It Provides the Security to the Company which you have
created.
Select company
Select Company option is used to select the company which you have created.
Alter company
Alter Company is the option which helps you to alter the company information which
you have created
Shut Company
Shut company will do shut the company which you are not required for entering the
transaction

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Predefined Group of Tally (The Group of Accounts which is already been defined
by Tally)
There are 28 predefined groups of accounts. Of these 15 are Primary in nature & 13
are Sub Groups.
1) Capital Account
Reserves & Surplus
2) Current Assets
Bank Accounts
Cash In hand
Deposits (Asset)
Loans & Advances (Asset)
Stock In hand
Sundry Debtors
3) Current Liabilities
Duties & Taxes
Provisions
Sundry Creditors
4) Fixed Assets
5) Investments
6) Loans (Liability)
Bank OD A/c (Bank OCC A/c)
Secured Loans
Unsecured Loans
7) Suspense A/c
8) Misc. Expenses (Asset)
9) Branch/ Divisions
10) Sales Account

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 11) Purchases Account
12) Direct Income ( Income Direct)
13) Indirect Income (Income Indirect)
14) Direct Expenses ( Expenses Direct)
15) Indirect Expenses ( Expenses Indirect)
Ledger : Ledger is the Accounting Head required for Passing the Journal Entry
e.g. Purchases, Sales, ICICI Bank, Ramlal, Shamlal, Etc.
Group : Group is a Collection of Ledgers of same nature of transaction
e.g. Sundry Creditors, Sundry Debtors, Current Assets, Current
Liabilities, etc.
How to Create, Display, Alter Single Ledgers in Tally
We normally come to the menu Gateway of Tally which comes after selecting
the company which you have created by selecting the company.
Gateway of Tally Accounts Info Single Ledger Create
After choosing this process we have to create the ledger for
E.g. ICICI Bank, Ramlal, Shamlal, Purchases, Sales.
Name: ICICI bank
Alias: Short Name or Code (Not to be used)
Group: Bank Accounts
Opening Balance: if any / (Rs. 50000/-)
Display
Display option is used to see the Legers which You have Created..
Gateway of Tally Accounts Info Single Ledger Display
Alter
Alter option is used to do the changes in the Ledgers which you have created
Gateway of Tally Accounts Info Single Ledger Alter

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Multiple Ledgers in Tally
This is applicable for the preparation of the Multiple Ledgers of the Same Group
e.g. Sundry Creditors Such as Sony Company, Onida TV, Philips TV etc.
Gateway of Tally Accounts Info Multiple Ledger Create
Under Group : Bank
1) Name of the ledger : ICICI Bank , Group- Bank Accounts , Op. Balance –
Rs.2000/-
2) Name of the ledger : HDFC Bank , Group- Bank Accounts , Op. Balance –
Rs.12000/-
3) Name of the ledger : ABN Amro Bank , Group- Bank Accounts , Op. Balance
– Rs. 22000/-
Display option displays the list of ledgers, which you have created.
Gateway of Tally Accounts Info Multiple Ledger Create
Alter option is used to Display the Multiple Ledger
How to do the Accounting Entries with the help of Accounting Vouchers
These options are used to enter the Accounting transactions
1) F4 : Contra Voucher
2) F5 : Payment Voucher
3) F6 : Receipt Voucher
4) F7 : Journal Voucher
5) F8 : Sales Voucher
6) Ctrl+F8 : Credit Note Voucher
7) F9 : Purchase Voucher
8) Ctrl+F9 : Debit Note Voucher
These Accounting Voucher are used to enter the accounting transaction as per the
nature of Transaction

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The receipt in terms of Cash or Bank to the business is normally shown in Receipt
Voucher
The payment in through Cash or Bank is normally shown in Payment Voucher
The Material/Goods Purchases on Credit is shown normally in Purchase Voucher
The Material sold on credit to the customer is normally shown in the Sales Voucher
The Contra entry is normally used for depositing & Withdrawing the money from
Bank for the business.
The goods returned or rejected by us can be shown by raising a Debit Note on the
Creditor.
The goods returned by the Customer is to be shown by raising a Credit Note on the
customer.
Sundry Creditors: The Name of the party from whom we Purchase the material on
credit or to whom we owe the money
Sundry Debtors: The name of the party to whom we sold the material on credit or
from whom we are going to receive the money.
We have learnt About Double Entry System. The tally by default shows the
Single Entry System at the time of entering the accounting transactions (passing
Journal Entries). To convert it into Double Entry system we have to select the option
by pressing F11. In that we have to change the option 1) Choose Singe Entry Mode
we have to Say ‘No’ instead of ‘Yes’ 2) Use Debit Credit instead of To & By :
‘Yes’ instead of ‘No’
Purchase & Sales Transactions
Transactions related to Purchases & Sales on credit can be shown in two ways
1)As Invoice : This is the format in which accounting treatment (Debit & Credit ) is
not given for transactions it comes in Bill format or Invoice format in which, name of
the item, Qty, Rate, amount is shown. It is as good as the Bill or Invoice given to the
customer.

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2) As voucher : In this format we do not enter the transaction as invoice but we
directly give the treatment of accounts i.e. we give the debit & credit for the
transaction. The invoice format is also converted in the
Stock Item
Stock item refers to goods in which you deal – that is goods that you manufacture or
you trade (sell or purchase)
To Create a Stock Item the ‘Unit of Measure’ is to be created first.
Unit of Measure
This is to create Stock item of the company this will help you to create unit of
measure.
‘Unit of measure’ is to be created for measuring the stock.
E.g. Milk – Liter. Gold- Grams, Rice – Kilograms.. Computer- Nos. Etc.
Gateway of Tally Inventory Info Unit of Measure Create
Type: Simple /compound.
Symbol: Nos. (According to the requirement /name of product)
Formal Name: Numbers
Number of Decimal places: 0(You have to enter only decimals in case where
decimals are required for a product or goods. e.g. Petrol, Milk, rice etc.)
After creating ‘Unit of Measure’ we can create A Stock Item
Gateway of Tally Inventory Info. Stock Item Create
e.g.
Name: Computer
Under: (Group is to be entered, if any (e.g. Compaq, IBM))
Category: If any
Units: Nos. (Units of measure according to the name of the product)
Opening balance: if any (balanced Quantity of Stock)
Rate: (Rate of the product per unit )

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Display
Display option is used to see the stock items, which you have created.
Gateway of Tally Inventory Info. Stock item Display
Alter
Alter option is used to do the changes in the Stock Items which you have created
Gateway of Tally Inventory Info Stock item Alter
Stock Group :
These are similar to stock groups. These are provided to for the purpose of
classification of stock items. Classification done on the base of Common Behaviors.
Grouping helps to easy identification & reporting of stock items e.g. Items of a
Particular Brand.
Creation of Stock Group
Gateway of Tally Inventory Info Stock Group Create
e.g.
Name: Onida (Name of the Group)
Under: Television (Name of the group, if any. Otherwise not applicable)
Can quantities be added: (NO in case of Main Group other YES)
Display
Display option is used to see the stock groups which you have created.
Gateway of Tally Inventory Info. Stock Group Display
Alter
Alter option is used to do the changes in the Stock Group which you have created
Gateway of Tally Inventory Info Stock Group Alter
Stock Categories
Stock categories offer the parallel classification of stock items.
e.g. Milk – Cow & Buffalos, Petrol – Speed & Simple, TV- Color & black & white
etc.

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Creation of Stock Categories
Gateway of Tally Inventory Info Stock Category Create
e.g.
Name: Co lour (Category which is to be created)
Group: (If any, otherwise Not Applicable)
Display
Display option is used to see the stock Category which you have created.
Gateway of Tally Inventory Info. Stock Category Display
Alter
Alter option is used to do the changes in the Stock Category which you have created
Gateway of Tally Inventory Info Stock Group Alter
Creation of Godowns :
Godowns: It is place where the goods can be Stored at different Places of the same
business.
To Create Godown we have to first of all activate the option go downs by pressing
F12.
In the options F11 we can see the option Inventory Features in Which the option
Maintain Multiple Godowns : No we have to say Yes
Gateway of Tally Inventory Info. Single Godown Create
E.g.
Name : Banglore ( The name of the godwon is to be written )
Group : Primary ( Iif the Sub group is there then main group is to accepted
otherwise primary is to accepted)
Display
Display option is used to see the Stock Godown which you have created .
Gateway of Tally Inventory Info. Stock Category Display

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Alter
Alter option is used to do the changes in the Stock Godown which you have created.
Stock Transfer :
When the stcok is transfer from one godown to another godown stock transfer takes
place .
Stock transfer can be done with the help of inventory vouchers from gateway of
Tally.
Purchase Order : Purchase Order is placed to the Creditor when the comparative
study of the quotations of different suppliers is done and finally the suitable
purchase order is placed to the Creditor.
This Purchase order can be Created by Pressing F11 before entering it from
Inventory Voucher .
In F11 The option ‘Allow Purchase Order Processing’ will come we have to ‘Yes’
instead of ‘No’.
And then the Purchase order is to created from Inventory Voucher. The Same
procedure is applicable for Sales Order Processing .

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 VAT
Input VAT : The Tax on purchase of material is Your Input VAT.
Output VAT : The tax on sales of Material is Output VAT.
1) Press F11 and Choose the option Statutory and Taxation
Enable Value added Tax : Yes
Set Alter VAT details : Yes
Accept the screen
Enter the details VAT TIN no. in the option Tax information
Create a Ledger account : Sales @4%
Under Group : Sales account
Used In VAT Returns : Yes
VAT/ TAX CLASS : Sales @ 4%
Accept the Ledger Account .

Create a Ledger account : Purchases @4%

Under Group : Purchases account
Used In VAT Returns : Yes
VAT/ TAX CLASS : Purchase @ 4%
Accept the Ledger Account .

Create Ledger account : Input VAT @ 4%

Under Group : Duties & Taxes
Type of Duty : VAT
VAT/Tax Class : Input Vat @ 4%
Percantage of Calculation : 4%
Method of Calculation : on VAT ratio

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Create Ledger account : Output VAT @ 4%
Under Group : Duties & Taxes
Type of Duty : VAT
VAT/Tax Class : Output Vat @ 4%
Percantage of Calculation : 4%
Method of Calculation : on VAT ratio

Create Leger A/c : Wilson Enterprises & LFG perfumes as Sundry creditors
Trimurti Traders & Balaji suppliers as sundry Debtors
Create Stock Item : Dairy milk , perfume

Create Purchase Voucher : Press F9

Party A/c Name : Wilson Enterprise
Purchase Ledger : Purchase @ 4%
VAT/ TAX Class : Purchases @ 4%
Name of the Item : Dairy milk
Qty : 4 Rate : 100
Input Vat @ 4%
and accept the Purchase Voucher Screen.

Create Sales Voucher : Press F8

Party A/c Name : Trimurti Traders
Salese Ledger : Sales @ 4%
VAT/ TAX Class : sales @ 4%
Name of the Item : Dairy milk
Qty : 3 Rate : 130

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Output Vat @ 4%
and accept the Sales Voucher Screen
( Same Applicable for LFG ( creditor) & Balaji traders ( Customer) )

Go to Gate way of tally Display Statutory repots Vat reports Vat

Computation and VAT return

TDS
F11 and Choose the option Statutory and Taxation

Enable Tax deducted At Source : Yes

Set Alter TDS details : Yes
Accept the screen

Enter the Tax Assessment Number : 12345

Income tax ward : Abcd
Deduct Type : Others Etc .
Accept the Screen . Save the Changes Y

Create a Ledger account : TDS ledger

Under Group : Duties & Taxes
Type of Duty Tax : TDS
Nature of payment : e.g. Payment to Contractors.
Ignore TDS exemption limit : Yes
Accept the screen

Create a Ledger account : Neelam Advertising

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Under Group : Sundry Creditors
Is TDS applicable : Yes
Deduct Type : Company – Resident
Is Lower / No deduction applicable : No
Ignore surcharge Exemption : Yes
Accept the screen

Create a Ledger account : Advertising Exps.

Under Group : Indirect Exps.s
Accept the screen
Voucher Entry
Journal : Advt A/c Dr. 60,0000
Neelam Advertising 60000
( Bill wise details :New Ref. 1 TDS ledger Amount Tds Rate 1% )
Save the Voucher

Button Bar : Click on Tds deduction

Neelam Adverting A/c Dr 680
( TDS details : Tds Ledger : Tds Ledger Tds Applicable Bills 1)
To TDS Ledger A/c 680
Accept the Entry

Go to Gate way of tally Display Statement of accounts

TDs Outstanding TDs payable Entry
TDS ledger A/c Dr. 680
To cash 680

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