Tally Prime Notes - Financial Accounting Software PDF

 Introduction to Tally Prime: A financial accounting software used by small to medium-sized businesses for managing accounts and inventory efficiently. It includes features for journal entries, purchases, sales, income, expenses, creditors, debtors, liabilities, and assets....

 Introduction to Tally Prime: A financial accounting software used by small to medium-sized businesses for managing accounts and inventory efficiently. It includes features for journal entries, purchases, sales, income, expenses, creditors, debtors, liabilities, and assets.  What is meant by Accounts? In business, all transactions are recorded in accounts such as purchases, sales, assets, and liabilities.  Classification of Accounts: o Personal Account: Related to individuals or organizations (e.g., Mahesh, Rohit, Bank). o Real Account: Related to physical items or assets (e.g., Cash, Computer, Machinery). o Nominal Account: Related to income, expenses, gains, and losses (e.g., Interest, Wages, Purchases, Sales). Golden Rules of Accounting: 1. Personal Account: o The Receiver: Debit o The Giver: Credit 2. Real Account: o What comes in: Debit o What goes out: Credit 3. Nominal Account: o Expenses and Losses: Debit o Income and Gains: Credit Introduction to Business Organizations:  Service Organizations: Provide services without physical transactions.  Trading Organizations: Buy and sell goods for profit.  Manufacturing Organizations: Convert raw materials into finished goods. Ledgers, Groups, and Voucher:  Ledgers: Individual accounts maintained for each type of transaction.  Groups: Categories under which ledgers are classified in Tally Prime.  Voucher: Documents where transactions are recorded in Tally Prime. Pre-defined Groups in Tally: 1. Primary Groups: o Capital Account, Loans Liabilities, Current Liabilities, Fixed Assets, Investment, Current Assets, Miscellaneous Expenses (Assets), Suspense Account, Branch Division, Sales Account, Purchase Account, Direct Income, Direct Expenses, Indirect Income, Indirect Expenses. 2. Secondary Groups: o Reserve & Surplus (Capital Account), Bank Over Draft (Loans Liabilities), Secured Loans (Loans Liabilities), Unsecured Loans (Loans Liabilities), Duties & Tax (Current Liabilities), Provision (Current Liabilities), Sundry  In Tally Prime, vouchers are used to record various financial transactions. Here are the different types of vouchers and their functions: 1) Contra Voucher: Used for cash or bank-related transfer entries. For example, transferring cash to a bank account or vice versa. 2) Payment Voucher: Used when making any kind of payment, whether in cash or by cheque. 3) Receipt Voucher: Used when receiving money, either in cash or through a cheque. 4) Journal Voucher: Used for a variety of entries that don't fit into other categories, such as adjustments, provisions, or transfers between accounts. 5) Purchase Voucher: Used when recording purchases of goods or services. 6) Sales Voucher: Used when recording the sale of goods or services. 7) Debit Note Voucher: Used for recording purchase returns or when goods are returned to the supplier. 8) Credit Note Voucher: Used for recording sales returns or when goods are returned by the customer. 9) Stock Journal Voucher: Used for transferring goods from one godown to another or for any stock-related adjustments. 10) Memorandum Voucher: Used for making temporary entries that might need to be recorded in the future. 11) Purchase Order Voucher: Used for recording the details of an order placed for purchasing goods. 12) Sales Order Voucher: Used for recording the details of an order received for selling goods. 13) Delivery Note Voucher: Used when goods are delivered to a customer following a sales order. 14) Reversing Journal Voucher: Used for entries that need to be reversed on a specific date. 15) Receipt Note Voucher: Used when goods are received from a supplier following a purchase order. 16) Physical Stock Voucher: Used for reconciling the physical stock with the stock records in Tally. 17) Payroll Voucher: Used for recording payroll transactions. 18) Attendance Voucher: Used for recording employee attendance related to payroll processing. In Tally Prime, groups are used to categorize accounts to simplify the accounting process. These are broadly divided into two types: Primary Groups are the broad categories under which all accounts are classified. The primary groups are: 1) Capital Account: For capital investments and owner's equity. 2) Loans Liabilities: For loans and other liabilities. 3) Current Liabilities: For short-term liabilities. 4) Fixed Assets: For long-term assets. 5) Investments: For investments in shares, bonds, etc. 6) Current Assets: For assets that are expected to be converted into cash within a year. 7) Miscellaneous Expenses (Assets): For other assets and expenses. 8) Suspense Account: For entries that are not yet classified. 9) Branch Division: For different branches of the business. 10) Sales Account: For income from sales. 11) Purchase Account: For expenses related to purchases. 12) Direct Income: For income directly related to business operations. 13) Direct Expenses: For expenses directly related to business operations. 14) Indirect Income: For income not directly related to business operations. 15) Indirect Expenses: For expenses not directly related to business operations. Secondary Groups are more specific categories within the primary groups, providing further classification. Examples include: 1) Reserve & Surplus (under Capital Account): For retained earnings and reserves. 2) Bank Over Draft (under Loans Liabilities): For overdrafts from banks. 3) Secured Loans (under Loans Liabilities): For loans secured by assets. 4) Unsecured Loans (under Loans Liabilities): For loans not secured by assets. 5) Duties & Taxes (under Current Liabilities): For various duties and taxes payable. 6) Provision (under Current Liabilities): For provisions for expenses and liabilities. 7) Sundry Creditors (under Current Liabilities): For amounts owed to creditors. 8) Sundry Debtors (under Current Assets): For amounts receivable from debtors. 9) Deposit Assets (under Current Assets): For deposits made by the business. 10) Loans & Advances Assets (under Current Assets): For loans and advances given. 11) Cash in Hand (under Current Assets): For cash held physically. 12) Stock in Hand (under Current Assets): For inventory stock. 13) Bank Account (under Current Assets): For bank accounts.