TALLY OBSERVATION ALGORITHM

1.EX NO.1 CREATION OF COMPANY IN TALLY PRIME

Aim:
To create a new company in Tally Prime for accounting purposes.

Algorithm:

• Step 1: Open Tally Prime.

• Step 2: Go to Gateway of Tally → Create Company.

• Step 3: Enter the Company Name.

• Step 4: Enter the Mailing Address.

• Step 5: Set the State and PIN Code.

• Step 6: Enter the Financial Year From and Books Beginning From.

• Step 7: Set the Currency Symbol and Language.

• Step 8: Set Security Control by enabling the option Use Tally Vault for password
protection.

• Step 9: Press Ctrl + A to save the company.

Result:
A new company is created successfully in Tally Prime.
EX NO .2 GROUP & LEDGER CREATION (ACCOUNTING MASTERS)

Aim:
To create accounting groups and ledgers in Tally Prime.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Accounts Info → Groups
→ Create.

• Step 2: Choose whether to create a Single or Multiple group.

• Step 3: Enter the Group Name and select the Under Group field (e.g., Liabilities,
Assets, etc.).

• Step 4: Press Ctrl + A to save the group.

• Step 5: To create a ledger, go to Gateway of Tally → Accounts Info → Ledgers →

• Step 6: Enter the Ledger Name and assign it to the correct group.

• Step 7: Set Opening Balance (if applicable).

• Step 8: Press Ctrl + A to save the ledger.

Result:
Groups and ledgers are created successfully, organizing accounting data.
EX NO 3. STOCK GROUP & ITEM CREATION (INVENTORY MASTERS)

Aim:
To create stock groups and items for inventory management.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Inventory Info → Stock
Groups → Create.

• Step 2: Enter the Stock Group Name (e.g., Raw Materials, Finished Goods).

• Step 3: Choose whether the group is Primary or under another group.

• Step 4: Press Ctrl + A to save the group.

• Step 5: To create a stock item, go to Gateway of Tally → Inventory Info → Stock

• Step 6: Enter the Stock Item Name and assign it to the appropriate stock group.

• Step 7: Set the Unit of Measure (e.g., kg, pcs).

• Step 8: Press Ctrl + A to save the stock item.

Result:
Stock groups and stock items are created successfully, making inventory management
efficient.
EX NO 4. CREATION OF ACCOUNTING VOUCHERS (TRANSACTIONS)

Aim:
To create accounting vouchers for various financial transactions.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Vouchers → Accounting

• Step 2: Select the type of voucher (e.g., Payment, Receipt, Contra).

• Step 3: Enter the Date of the transaction.

• Step 4: Select the Ledger Accounts involved in the transaction.

• Step 5: Enter the Amount and Debit or Credit the ledger appropriately.

• Step 6: Add Narration (optional).

• Step 7: Press Ctrl + A to save the voucher.

Result:
Accounting vouchers are created successfully and ready for use in financial reporting.
EX NO 5. CREATION OF ACCOUNTING VOUCHERS (TRANSACTIONS)

Aim:
To create accounting vouchers for various financial transactions.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Vouchers → Accounting

• Step 2: Select the type of voucher (e.g., Journal, Sales, Purchase).

• Step 3: Enter the Date of the transaction.

• Step 4: Select the Ledger Accounts involved in the transaction.

• Step 5: Enter the Amount and Debit or Credit the ledger appropriately.

• Step 6: Add Narration (optional).

• Step 7: Press Ctrl + A to save the voucher.

Result:
Accounting vouchers are created successfully and ready for use in financial reporting.
EX NO 6. PURCHASE AND SALES ENTRIES

Aim:
To record purchase and sales transactions in Tally Prime.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Vouchers → Purchase for
purchase transactions and Sales for sales transactions.

• Step 2: Enter the Party Name (supplier or customer).

• Step 3: Select the Stock Items and Quantity.

• Step 4: Enter the Rate and Amount for each item.

• Step 5: Apply GST if applicable.

• Step 6: Press Ctrl + A to save the entry.

Result:
Purchase and sales entries are successfully recorded, with accurate financial information and
taxes.
EX NO.7. RECEIVABLE AND PAYABLE MANAGEMENT

Aim:
To manage accounts receivable and payable in Tally Prime.

Algorithm:

• Step 1: Open Tally Prime and go to Gateway of Tally → Display → Outstanding.

• Step 2: View the outstanding amounts from debtors (receivables) and creditors
(payables).

• Step 3: Select Aging Analysis to view the due amounts.

• Step 4: Follow up with customers or suppliers for pending payments.

• Step 5: Record payments or receipts as needed.

• Step 6: Press Ctrl + A to save any new transactions.

Result:
Receivables and payables are tracked effectively, ensuring smooth cash flow.