WORKSHOP ON

Department of Management Studies

8
th
&9
th
January 2014
By
Dr.K.Senthil & Mr.R. Rajasekar
Definition of Accounting
The individual record of Person, Firm,
Asset, abilities, Expenses or Income is
called as Account.
Book Keeping means maintaining the
record of business transaction in a
systematic manner.

Transaction
An exchange of money or moneys worth
between two parties is called a transaction.
Type of Transaction
1. Cash Transaction
2. Credit Transaction

Objective Of Book Keeping
To know the profit or loss of business during a
particular period.
To know the capital invested in the business on any
particular day.
To know the total assets and liabilities of the business
on a particular date.
To know the total debtors and creditors of the
business.
To find out the total incomes and total expenditure of
the business.


Basic Accounting & Tally
Business Entity Concept-Business is different from
Business Owner
Going Concern Concept-Business continues over a
period of time
Matching Concept-Classification of transactions into
income ,expense etc and matching them
Money Measurement All transactions in terms of
money.
Historical concept- Cost or market price whichever is
less

Type of Accounts
1. Real Account Building, Furniture, Cash and etc.,
2. Personal Account Suppliers, Customers and etc.,
3. Nominal Account Sales, Salary, Cost of Goods sold
and etc.,

Accounting - Manual
Journal Book Manual
It is a book of accounts where the transactions
are recorded for the first time
Ledger Book -Manual
Ledger contains accounts of several persons,
assets, expenses, incomes, profits, etc. A
ledger is a book of accounts where the
transactions are transferred from the journal
book

Trail Balance -Manual
The list or the statement of balances of ledger
accounts on a particular date is known as Trial
Balance.
Trial Balance of xyz company as on 1
st
April,2002

Trading & Profit & Loss Account
It is an account which shows the net Profit /
Net Loss of a business for certain period
Trading & Profit & Loss A/C
For the year ended 31
st
March 2003

Balance Sheet - Manual
The Balance Sheet is a statement showing the
financial position of the business as on a
particular day.

Inventory
Available stock at Factory site.
Types of Inventory :-
* Raw Inventory
* Processing Inventory
* Finished Inventory


Procedure of Inventory Control
Sales
Sales Order Delivery Note Rejection In
Sales Invoice Sales Voucher Receipt
Voucher
Purchase
Purchase Order Receipt Note Rejection
Out Purchase Invoice Purchase Voucher
Payment Voucher
Simplicity
Simplicity is the power of Tally.Erp 9 it is
simple, easy to setup and use. It also allows
easy Keyboard operations. It requires basic
knowledge of Accounts and English to use it.
Speed
Tally.ERP 9 provides the capability to
generate instant and accurate reports, which
assists the management to take timely and
correct decisions for the overall productivity
and growth of the company.
Power
Tally.ERP 9 allows the user to maintain
multiple companies and with unlimited levels
of classification & grouping capabilities. It also
allows drill down facility from report level to
transaction level
Flexibility
Tally.ERP 9 provides flexiblity to generate
instant reports for any given period
(month/year) or at any point of time besides
providing the facility to toggle between
Accounting & Inventory reports of the same
company or between companies
Multi-lingual capability
Tally. ERP 9 offers you the exclusive
capability of maintaining your accounts in any
national language, viewing them in another
language and printing them in yet another
language
Immediate posting & updating of books of
accounts as soon as the transactions are
entered, thereby facilitating instant
statements & Reports. It also facilities real-
time multi-user environment.
Complete Book Keeping
Tally.ERP 9 maintains all books of accounts
starting from record of vouchers to ledgers
etc. You can use different types of vouchers
like payment, receipt, sales, purchases,
receipt notes, delivery notes and adjustment
entry vouchers like journals, debit & credit
notes. Tally.ERP 9 inherits the principle of
double entry system of book keeping and
thus reduces possibilities of errors during
voucher entry.
Tally Features
Ledgers & Groups
All Financial entries are made using ledger
account heads. Ledgers that have transactions
of the same nature are classified under one
group
Tally Provide a set of 28 Pre-defined
groups
15 - Primary Groups, 13- Sub Groups
Among 15 Primary Groups 9 are appeared in
Balance sheet, which are capital in nature. 6
groups appear in the Profit and Loss Account
which are revenue in nature
Flexible Chart of Accounts
Books & Register
Tally.ERP 9 provides you capability to
generate various books and registers for any
specific period viz., month, date, and year
and as on date. In Tally.ERP 9, once voucher
entry is made, the transactions are
automatically & immediately in the Day Book
and other Books of Accounts without any
additional effort.
Tally.ERP 9 allows you to maintain and generate
all primary books of accounts and registers like
Cash Book Bank Book Purchase
Register Sales Register Journal Register
Debit Note Register Credit Note Register
General Ledger
Tally.ERP 9 provides you the capability to
generate various financial statements and
Management Information system reports,
thereby facilitating better management, effective
control and well-informed decisions. Following
are the some of salient features, which makes
Tally.ERP 9 best for basic financial
management.
Financial Management
Fund Flows
Receivables Turnover (Payment performance of
debtors)
Branch Accounting
Flexible Period Accounting
Budgeting and Control
Cost centers / Profit centers with multiple Cost
Categories
Ratio Analysis
Scenario Management
Tally.ERP 9 provides you the capability to generate
numerous advanced and critical Management
Information system reports and analytical tools, thereby
facilitating better management, effective control and well-
informed decisions. Following are the some of salient
features, which makes Tally.ERP 9 best for advanced
financial management.
Multiple companies
Multi-Currency
Multiple Financial year
Multi-columnar reporting
Memo Vouchers
Post dated Vouchers
User defined Vouchers Sales and
Purchase extracts Cash Flows Daily
Balance & Transaction Values Interest
calculations Percentage Based Reporting
Sales and Purchase extracts
Cash Flows
Daily Balance & Transaction Values
Interest calculations
Percentage Based Reporting
Tally.ERP 9 provides you the capability to record
inventory transactions without changing the way you
do your business. It provides numerous predefined
Inventory vouchers to suit your business
requirements and flexibility to create unlimited stock
items, use simple to complex conversion units and
generate invoices with the required information and
dimensions. Following are the some of salient
features, which makes Tally.ERP 9 best for basic
inventory man-agement.
Inventory Management
Flexible units of Measure
Flexible Invoicing
Unlimited Grouping & Categorization of Stock
items
Voucher Classes to expedite voucher Entry

Inventory Management


Separate Actual and Billed Quantities
Gross Profits and Consumption Report
Use Stock Item Names and / or Part
Numbers
POS Invoicing
Advance Inventory Management
you do your business. It provides predefined
Inventory vouchers to suit your business
requirements besides allowing you to create
user defined voucher types and flexibility to
track your inventory at any point/stage/process
and numerous other features.


Advance Inventory Management
Following are the some of salient features,
which makes Tally.ERP 9 best for advanced
inventory management.
Stock Query
Multiple Warehouses / Locations:
Sub-Godowns
Stock transfers to Godowns
Multiple Stock Valuation

Advance Inventory Management

Bill of Materials
Tracking Additional Cost of Manufacturing
Job Costing
Multiple Stock Valuation
Batch-wise / Lot-wise & Expiry Date Handling
Sales and Purchase Order Processing
Advance Inventory Management
Tracking Inventory
Rejection In and Rejection Out
Additional Costs Incurred on Purchase
Unlimited Stock Item Classification
Stock Ageing Analysis
Batch Related Stock Ageing
Price List with Multi Price levels
Advance Inventory Management
Batch-wise / Lot-wise & Expiry Date Handling
Sales and Purchase Order Processing
Tracking Inventory
Rejection In and Rejection Out
Additional Costs Incurred on Purchase
Unlimited Stock Item Classification
Advance Inventory Management
Tracking Inventory
Rejection In and Rejection Out
Additional Costs Incurred on Purchase
Unlimited Stock Item Classification
Stock Ageing Analysis
Batch Related Stock Ageing
Price List with Multi Price levels
Button Bar

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To create the
company you would
click at Create
Company option
A new window
will appear
with various
items on the
screen.
Type the
name of the
company you
want to
create
You can type
some other
mailing name of
the company.
Type mailing
address of the
company.
In Tally accounts
can be maintained
in a two different
ways:.
This option
provides security
control to your
company accounts
Company Creation

This option permits
you to load any
company, which was
created earlier, from
the list of companies
listed.

It allows you to exit,
from the companies
not in use, from the
dialog box
It allows you to
change the
information of an
existing company
filled at the time of
creation of the
company
To change the
password, given
earlier at the time
of creating the
company
Split the companies to
form two companies
out of the existing
one; after the data
specify by the user.
This option allows
the user to take a
backup either on
local hard disk or on
any external media..
This option allows
the user return to
original, usable and
functional condition.
Restore data from
one storage to
another
Purchase Voucher -Shortcut Key (F9)
Purchase Voucher
Description Records all Credit & Cash purchases
Voucher Entry Account Amount Amount
Suppliers ledger account
( Sundry Creditors )
Credit
Purchases ( Purchase A/C)
Sales Tax on purchases
Debit

Debit
Payment Voucher - Shortcut Key
(F5)
Payment Voucher
Description Records all bank and cash payments
Voucher Entry Account Amount Amount
ledger account
( Sundry Creditors)
Debit
Bank or cash account, Credit
Sales Voucher - Shortcut Key (F8)
Sales Voucher
Description Records all credit & Cash sales
Voucher
Entry
Account
Amount Amount
Buyers ledger account
( Sundry Debtors )
Debit
Sales ( Sales Accounts)
Sales Tax
Credit
Credit
Receipt Voucher - Shortcut Key (F6)
Receipt Voucher
Description
Records all receipts into bank or cash accounts
Voucher
Entry
Account Amount Amount
Ledger account receiving,
(Indirect Incomes)
Credit
Bank or Cash account Debit
Contra Voucher - Shortcut Key (F4)
Contra Voucher
Description Records funds transfer between cash and bank
accounts
Voucher Entry Account Amount Amount
E.g. Bank-Bank Account
(Bank Accounts)
Credit
E.g. Petty Cash
(Cash-in-hand)
Debit
Journal Voucher - Shortcut Key
(F7)
Journal Voucher
Description
Records all adjustments between ledger accounts
Voucher
Entry
Account Amount Amount
E.g. Advertising
( Indirect Expenses )
Debit
E.g. Office Costs
( Indirect Expenses )
Credit
Click on
Groups
Accounts Info
Pre define Ledgers in Tally ERp9

Click on
Ledgers

Click on
Rejctions In
Delivery Note
Rejections Out
Receipt Note
Physical Stock
Stock Journal
Inventory Vouchers
Delivery Note
Description Records Delivery stock
Details
recorded
Ref., ledger a/c, suppliers name & Address,
order details, name of stock item, stock
Godown, Qty, Rate, Amount.
Delivery Note
Shortcut Key (Alt+F8)
Rejections In
Shortcut Key (Ctrl+F6)
Rejections In (Sales Returns)
Description Records rejected stock details received from
customers
Details
recorded
Ref., ledger a/c, suppliers name & Address,
order details, name of stock item, stock
Godown, Qty, Rate, Amount.
Receipt Note :-
Shortcut Key (Alt+F9)
Rejections Out :-
Shortcut Key (Alt+F6)
Rejections Out (Purchase Returns)
Description Records rejected stock details
returned to suppliers
Details
recorded
Ref., ledger a/c, suppliers name &
Address, order details, name of stock
item, stock Godown, Qty, Rate,
Amount.
Stock Journal :-
Shortcut Key(Alt+F7)
Stock Journal Voucher
Description Essentially records the transfer of stock from
one Godown to another
Details
recorded
Names of from and to Godowns, name of
stock item, Qty, Rate, Amount, Narration
Debit Note Voucher
Credit Note Voucher
Reversing Journals
Memo Voucher
Optional Voucher
Post-dated Voucher
Accounting
vouchers
Debit Note Voucher :-
Shortcut Key (Ctrl + F9)
Debit Note Voucher
Description Records Debit note entry for purchase returns or
overcharging by a supplier
Voucher
Entry
Account Amount Amount
Suppliers a/c

Debit
Purchases Returns Credit
Credit Note Voucher :-
Shortcut Key ( Ctrl+F8)
Credit Note Voucher
Description Records Credit note entry for sales returns or
customer overcharging
Voucher Entry Account Amount Amount
Sales Returns Debit
Customer A/c Credit
Reversing Journal Voucher :-
Shortcut Key (F10)
Reversing Journal Voucher
Description
Records the voucher entries in a Reversing Journal
Register, without affecting the ledger accounts and
financial statements
Voucher
Entry
Account Amount Amount
ledger account Debit
ledger account Credit
Reversing Journals are used for the purpose of
Scenario Management reporting. Detailed
explanation is available on in Volume Two.
This is a non-accounting voucher and the entries made using
it will not affect your accounts. That is, Tally does not post
these entries to ledgers but stores them in a separate Memo
Register.
Memo Voucher
Description Records the voucher entries in a Memo Register,
without affecting the ledger accounts and
financial statements
Voucher Entry Account Amount Amount
ledger account Debit
ledger account Credit
Memo Voucher :-
Shortcut Key(F10)
Optional Voucher :-
This is another non-accounting voucher. However, it
differs from the Memo voucher in two respects :
Firstly, it is not a voucher type, all other voucher types can be marked
Optional during voucher entry.
Secondly, you have the option to bring this voucher into your accounts
Temporarily and see its effect on financial reports.
Optional Voucher
Description Records the voucher entries temporarily, to help
visualise the effect on reports, without
affectiong the ledger
Voucher Entry Account Amount Amount
ledger account Debit
ledger account Credit
Sales Order
Purchase Order
Inventory Voucher
Sales Order :-
Shortcut Key(Alt+F4)
Sales Order
Description Records Placing an order of new stock to
Customers
Details
recorded
Ref., ledger a/c, suppliers name & Address,
order details, name of stock item, stock
Godown, Qty, Rate, Amount.
Purchase Order :-
Shortcut Key (Alt+F4)
Purchase Order
Description Records Placing an order of new stock to
suppliers
Details
recorded
Ref., ledger a/c, suppliers name & Address,
order details, name of stock item, stock
Godown, Qty, Rate, Amount.
Click on











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