LEDGER CREATION IN TALLY

CREATION OF LEDGER

a.                 Open Tally Program and create a company.

b.                Then Go To Accounting Info.

c.                 Go to Ledger & Press enter.

d.              Two types of ledger will be displayed i.e. Single Ledger & Multiple Ledgers.

        In single Ledger, a user can create a single ledger a/c at a single bit of time, but in Multiple Ledger   a user can create multiple ledger a/c at a single bit of time.

e.        In both Ledger a/c, 3 Common options will be displayed i.e. Create, Display & Alter.

f.                  Choose any one of the ledger type and go to create and then press enter.

g.                 A box will appear in which you have to add different ledger a/cs with their under groups. Some of the Ledger with their under groups as mentioned below:-

Ledger	Group
Opening stock	Stock in hand
Purchase	Purchase account
Freight charges	Direct expenses
Carriage inwards or purchase returns	Direct expenses
Cartage and coolie	Direct expenses
Octroi Duty	Direct expenses
Manufacturing wages	Direct expenses
Coal, gas, water	Direct expenses

Oil and fuel	Direct expenses
Factory rent, insurance, electricity, lighting and heating	Direct expenses
Sales	Sales account
Salary	Indirect expenses
Postage and telegrams	Indirect expenses
Telephone charges	Indirect expenses
Rent paid	Indirect expenses
Rates and taxes	Indirect expenses
Insurance	Indirect expenses
Audit fees	Indirect expenses
ReceivedInterest on bank loan	Indirect expenses
Interest on loans paid	Indirect expenses
Discount allowed	Indirect expenses
Carriage outwards or sales returns	Indirect expenses
Traveling expenses	Indirect expenses
Advertisement	Indirect expenses
Bad debts	Indirect expenses
Commission received	Indirect income
Discount received	Indirect income
Rent received	Indirect income
Bad debts recovered	Indirect income
Profit by sale of assets	Indirect income
Sundry income	Indirect income
Sundry creditors	Sundry creditors
Mortgage loans	Secured loans
Capital	Capital account
Drawings	Capital account
Cash	Cash in hand
Cash at bank	Bank account
Fixed deposit at bank	Deposit
Sundry debtors	Sundry debtors
Closing stock	Stock in hand
Furniture	Fixed asset
Motor vehicles	Fixed asset
Plant and machinery	Fixed asset
Land and building	Fixed asset

Different Ledger Groups:-

     1.     Stock In Hand: - In this Groups, the Opening stock & Closing Stock are being recorded.

2.     Purchase A/c- In this a/c all cash& credit purchases are recorded. Ex- Purchased goods on cash for Rs.5000/-.

3.     Sales A/c- In this a/c all cash & credit sales are recorded. Ex- Sold goods on cash for Rs.5000/-

4.     Direct Expenses: - The expenses which are incurred or paid while manufacturing of goods are called Direct Expenses. 

In simple terms, direct expenses are incurred to give the shape of a product in the womb of the factory. Ex- Wages, Power, Carriage Inward, Loading & Unloading Charges, etc.

5.     Indirect Expenses: - The expenses which are incurred to bringing the product to final customer are called Indirect Expenses. Generally these expenses are incurred regularly to maintain the product life. Ex- Salary, Advertisement, office Expenses, etc.

6.     Direct Income: - The income which are earned directly by the way of business activities.

7.     Indirect Income: -This type of Income is not related with any of the business transactions. Ex- House Rent received, Commission Received, Interest Received, Sale of Old Newspapers, etc.

8.     Fixed Assets- The assets which are purchase for earning revenue & gains in the business transactions are called fixed assets. In simple terms, Assets acquired relatively for a long period to carry out the business are known as Fixed Assets. Ex- Machinery, Land & Building, etc.

9.     Current Assets: - The assets which value continuously changes during an accounting year are known as Current Assets. Current assets are those assets which are held essentially for  a short period and are meant for converting into cash. Ex- Bank Balance, Stock Balance, Cash,etc.

10. Fixed Liabilities: - Those liabilities which are paid after the accounting year are known as Fixed Liabilities. Ex: - Long term Loan.

11. Current Liabilities: - Those liabilities which are to be paid within an accounting period are known as Current Liabilities. Ex- Short Term Loan, Advance Payment, etc.

12. Sundry Creditors: - Sundry creditor is a person or businessman who sells the goods on credit. Ex- Ram Sold goods on Credit to Shyam. Here, Ram is the creditor.

13. Sundry Debtors: - Sundry Debtor is the person who purchases goods on credit. Ex- In the above example, Shyam is the debtor for Ram.

14. Bank A/C:- All the bank transactions are recorded under this Group like withdraw from bank, deposited in bank, etc.

15. Capital A/C:-Any amount invested by the proprietor in the business is the Capital and is added under the capital A/c. It includes the Capital & Drawings of the business.

COMPANY INFO. & CREATION OF COMPANY

    After u open a Tally Program , 1st you have to go to COMPANY INFO , either to Create a New Company or To select a Company. In this article u will get to know about different  basics tools found in Company info and how to create a company.

                                        COMPANY INFO.

By using ALT+F3, Company info can be opened at any moment.This Menu consists of following options (Hotkeys Shown in Bold Letter):-

SL. NO.	ACTION	MEANING
1	Select Company	To select a created company
2	SHut Company	To unload a selected company
3	Create Company	To create a new Company
4	Create Group Company	This option becomes active when more than one company is selected
5	Alter	To alter information of existing company
6	Change Tally Vault	To alter Tally Vault password for a company
7	SPlit Company Data	To split the company data into financial period
8	Backup	A copy of the data should be kept in other media like Floppy or CD or Tally Locker
9	Restore	To getting back the earlier data in the working Disk
10	Quit	To exit the Tally Software

      The above diagram clearly mentions all the different tools and panels found in a Tally Program.

CREATION OF COMPANY IN TALLY

 a)           Open Tally Program

b)           Go to Company Info. / Press Alt +F3.

c)           Then go to Create Company.

d)        A form will appear which is to be filled up with the information    regarding the company like Name, Address, D.O.C. [Date of Commencement], Currency Information,etc.

e)     There is an option named "Maintain"  in the form and it contains 2 different methods.  

      1. Accounts Only- Choose this option if ur company doesn't deals with any kind of inventory (Stock). If ur company is a Chartered Account Firm , then u may use this method.

     2. Accounts With Inventory - Choose this method if ur company deals with inventory (Stock).If u have a business firm which deals with the stock then u must use this method. If u are a student then u must use this method , as in this method u can maintain both Accounts & inventory ( Stock) details. 

f)     After inputting the information about the company press “ENTER”key to accept the company details & Information.

g) You can also set a Tally Vault Password for your company. Using Tally Vault password will make ur company name converted into asterisk (*) . 

For Ex :- If ur company name is Sandhya Pvt. Ltd. and u use Tally Vault Password feature then ur company name will be converted into "************". 

It is done to hide Company Name. 

I will suggest you not to use this feature as if u have more than one company in a single Tally Program then u will be facing difficulties in finding a specific company. 

h) If u want to skip the step "(g.)" , then u must use security control feature.