MODULE - VI

Computer in

17
Accounting

Notes
INTRODUCTION TO TALLY

As we discussed earlier how we maintain the accounts in Double Entry System. But
all of us know that if there is some difference in the Trial Balance than we have to
consume so much time and energy to find out that reason of difference. Tally is the
solution of all those problems. In Tally as we enter the transaction, that transaction is
duly posted in ledger and also enters in the trial balance. That transaction is duly
recorded in Trading & Profit and Loss A/c and Balance Sheet also. If we want to
see the Trial Balance or Balance Sheet after some transactions than we have to click
only some keys. So we can say that Tally solve our so many problems.
Tally is a financial accounting software package designed by Tally Solutions mainly
for small and medium businesses and shops. Tally Software is used by over 2 million
users, in 90 countries. Tally ERP 9.0 is the latest version to date. Tally is a complete
business accounting and inventory management software that provides various facilities
like Govt. supported formats, multilingual operations, online functions and processing
for small and medium business.

OBJECTIVES
After studying this lesson you will be able to :
• state the meaning of Tally;
• features of Tally;
• important steps for starting Tally;
• getting started with Tally;
• important steps to open Tally;
• how to create a company;
• what is company Info;
• short-cut Keys.
17.1 MEANING OF TALLY
Tally is accounting software that is designed to integrate and automate all your business
transactions. Every business has various processes which can range from simple to
complex. As your business grows, acquires new customers, and enters new markets,
you need to maintain highly accurate and up-to-date accounting and inventory records.

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Accounting software, such as tally helps you to simplify, integrate, and streamline all Accounting
your business transactions in an easy and cost-effective manner. Tally ERP 9 is the
latest version of Tally, which comes in various enhancements to make handling and
processing of business transactions even easier and quicker. It can handle the accounts
of more than one company simultaneously. It is very simple to use and allows you to
enter data in various formats. In addition, you can view information of any period, Notes
compare data across companies and financial periods, maintain account details and
generate reports.
17.2 FEATURES OF TALLY
Main features of Tally are as under:-
i) It maintains all the primary books of accounts, like Cash Book and
Bank Book.
ii) Tally maintains all registers like Purchase Register, Sales Register and
Journal Registers.
iii) Tally maintains all statement of accounts like Balance Sheet, Profit
and Loss A/c and Trial Balance, Cash Flow(In cash flow statement we
see the flow of cash i.e. the inflow and outflow of the cash) Stock
Statement(In stock statement we maintain the proper record of all
inventory) and Ratio Analysis.
iv) A Tally can maintain ‘Outstation Reports’.
v) It may provide complete bill-wise information of amounts receivable
as well as payable either party-wise or group-wise.
vi) It can provide a report for a particular date or reports for any range of
dates.
vii) It provides the facility of Bank Reconciliation.

INTEXT QUESTIONS 17.1

State the following sentences True or False:
i. Tally is an accounting hardware.
ii. We can also maintain the record of inventory in Tally.
iii. There is no provision of ‘outstation Report’ in Tally.
iv. Tally provides the facility of Bank Reconciliation.
v. Tally maintains all the primary books of accounts.
vi. Tally provides a report for a particular date.

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Accounting 17.3 GETTING STARTED WITH TALLY
First of all we have to install a Tally.ERP 9 by default in which program files required
to run Tally are saved. The user can specify the location of the data directory to save
these files and install the program file on any drive. It does not take more than a
minute to install Tally.ERP 9 on the local hard disk and uses up only about 40 MB of
Notes
space.
Following is the list of basic hardware requirements to run Tally.ERP 9 on a computer
system:-
Hardware Requirement Configuration
Processer Intel Pentium IV or Higher
Memory 256 MB RAM or more
Free Hard Disk Space 40 MB minimum (excluding the data)
Monitor Resolution Recommended 1024*768 pixels or higher
In order to install Tally.ERP 9 on a computer, you must have sufficient user-
rights so that you can make necessary changes during the installation process.
Also, ensure that the operating system you employ supports Tally.ERP 9 FOR
MULTILINGUAL support.
17.4 IMPORTANT STEPS TO OPEN A TALLY
Perform the following steps to open Tally.ERP.9:
i) Click the Start button on the taskbar. A Start menu appears.
ii) Move the mouse-pointer over the All Programs option in the start menu.
iii) Move the mouse-pointer over the Tally.ERP 9 folder and click it.
iv) Move the mouse-pointer over the Tally.ERP 9 option and click it.
The Tally.ERP 9 window opens on your screen.
17.5 CREATE COMPANY
After installing Tally, the first task you need to carry out is to create a company.
In Tally, the first term company signifies an entity for which an independent
set of accounts is maintained. It may be a company, a partnership firm, an
industry, or even a branch office for which a set of accounts is maintained.
So, let’s now learn to create a company in Tally.
On the home page of Tally screen ‘Create Company’ option is available under the
title ‘Company Info’.

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Accounting

Notes

When you click at ‘Create Company’ option, a following window will appear with
various items on the screen.

Some important ones are discussed below:-

Name : Type the name of the company you want to create.
Mailing Name : The mailing name by default is the same as the name mentioned
above. You can type some other mailing name of the company.
Address : Type mailing address of the company. There is no limit on the number of
lines used.

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Accounting Maintain : In Tally, accounts can be maintained in a two different ways:-
• Accounts Only
• Accounts with inventory.
In Accounts you can maintain Accounts only; there is no record of inventory. In
second option we record all Accounts with all inventories.
Notes
Use Security Control : This option provides security control to your company
accounts by offering a comprehensive password based access control
After filing all the required information press enter. A new window will appear asking
for confirmation.
Accept?
‘YES’/ NO
After press OK or ENTER KEY your Company will be created.
17.7 COMPANY INFO
Once you get your company created, the heading ‘Company Info’ has a content of
some new options. These options are as follows:-
• Select Company : This option permits you to load any company, which
was created earlier, from the list of companies listed.
• Shut Company : It allows you to exit, from the companies not in use, from
the dialog box.
• Create Company : (same as done above under same heading).
• Alter : It allows you to change the information of an existing company, filled
at the time of creation of company.
• Change Tally Vault : To change the password, given earlier at the time of
creating the company.
• Split Company Data : Split the companies to form two companies out of
the existing one; after the data specified by the user. In this process the
closing balance of the first company will become the opening balance of the
second company.
• Backup/Restore : This option allows the user to take a backup either on
local hard disk or on any external media. The backup of one or more
companies can be taken under a single directory.
17.8 SHORT-CUT KEYS
In Tally there are so many short-cut keys. By using those keys we can save our time.
Uses of some keys are as follows:-
F1 : For Select and Shut Companies
F2 : For Date and Period

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F3 : For Company and Company Info Accounting
F 11 : Features
F 12 : Configure
After creating a company in Tally, we can start the work in our company by IST
prepare the accounts. Thereafter you have to classify the nature of account. You
have to create all accounts either they are personal or impersonal. In Tally we have Notes
to pass only voucher entry. The Trial Balance, Trading and P&L a/c and Balance
Sheet will be automatically done. We can see the Trial Balance and Balance Sheet
whenever required.

INTEXT QUESTIONS 17.2

Multiple Choice Questions
i. If we want to change the company profile than what command
a) Alter command b) Edit command
c) Change command d) Create Company
ii. For go on Features which short cut key will you use
a) F 1 b) F 12 c)F 11 d)F 3
iii. Which short cut key we will use for configure?
a) F 3 b) F 1 c) F 11 d) F 12
iv. What short cut key we would use for Select and Shut Company?
a) F 1 b) F 2 c) F 3 d) F 12
v. What short cut key we would use for Date and Period?
a) F 1 b) F 2 c) F 3 d) F 11

WHAT YOU HAVE LEARNT

• Tally is a financial accounting software package designed by Tally Solutions
mainly for small and medium businesses and shops. Tally Software is used
by over 2 million users, in 90 countries.
• Tally maintains all statement of accounts like Balance Sheet, Profit and Loss A/
c and Trial Balance, Cash Flow, Stock Statement and Ratio Analysis.
• It can provide a report for a particular date or reports for any range of
dates. First of all we have to install a Tally.ERP 9 by default in which
program files required to run Tally are saved. The user can specify the
location of the data directory to save these files and install the program
file on any drive. After installing Tally, the first task you need to carry
out is to create a company. In Tally, the first term company signifies an
entity for which an independent set of accounts is maintained.

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Accounting • Uses of some important keys are as follows: - F 1, F 2, F 3, F 11 and F 12.

TERMINAL EXERCISE
1. Define Tally.
Notes 2. What do you mean by Tally ERP 9?
3. Write any four features of Tally.
4. What are the basic hardware requirements configuration of Tally ERP 9?
5. Explain in detail as how the company is created in Tally.

ANSWER TO INTEXT QUESTIONS

17.1 (i) False (ii) True (iii) False (iv) True (v) True (vi) True
17.2 (i) b (ii) c (iii) d (iv) a (v) b
ACTIVITY FOR YOU
• Using a tally software create a company and pass 10 entries from previous
chapters of your learning matereial and try to have practice on it to get
perfection.

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