COMPUTERISED ACCOUNTING SYSTEM
LEARNING OUTCOME
• Importance of Computerized Accounting
• Maintaining accounts in Tally
• Preparing financial statements and reports in Tally
COMPUTERISED ACCOUNTING SYSTEM
Accounting information system that processes the financial transactions and
events as per GAAP.
Big financial transactions, data, reports and statements are managed.
ASPECTS
Accounting Principles - concepts
User Defined framework - maintenance
Operating Environment – storage & processing of data
Working of accounting system – Hardware & Software
COMPONENTS
Accounting Framework
Set of principles, coding and grouping structure.
Operating Procedure
Blended suitable with the operating environment.
BASIC REQUIREMENTS
Front-End Interface: interactive link between user and database
Back-End Interface: data storage system
Data Processing : sequence of actions
Reporting System : constitute the report
COMPARISON BETWEEN MANUAL AND COMPUTERISED
ACCOUNTING
Identifying
Recording
Classification
Summarising
Adjusting Entries
Financial Statements
Closing the Books
ADVANTAGES OF COMPUTERIZED ACOUNTING
Speed Legibility
Accuracy Efficiency
Reliability Quality reports
Up- to-date Information MIS Reports
Real time User Interface Storage and Restricted
Automated Document Production Motivation and Employees
Scalability Interest
LIMITATIONS OF COMPUTERISED ACCOUNTING
Cost of Training
Staff Opposition\Disruption
System Failure
Inability to check Unanticipated Errors
Breaches of Security
Ill-effects on Health
ACCOUNTING SOFTWARE
Popular software in India – Tally & Ex
Globally – Sage, Wings2000, Best Books, Cash Manager, Ace Pays etc.,
ACCOUNTING PACKAGES
Ready-to-use
Customised
Tailored
TALLY ERP 9
Developed by Tally Solutions Pvt. Ltd.,
Earlier versions – 3.0,4.5 – DOS based
Window Based – 5.4,6.3,7.2,8.1,9
Latest – Tally ERP 9
Accounting program to track and manage accounts related to the business.
DOWNLOADING AND INSTALLATION
https://tallysolutions.com/download/
GATEWAY TO TALLY
ACCOUNTING PROCESS IN TALLY
STEP 1
• Company Creation
STEP II
• Group Formation
STEP III
• Ledger Creation
STEP IV
• Voucher Creation
STEP 1 – CREATION OF COMPANY
FUNCTION KEYS USED
• F1 – Select a company from the list of companies
• Shift + F1 – Shut a company
•Ctrl + M – Access the Gateway of Tally
• Ctrl + N – Access the calculator /ODBC Server frame
•Esc – Quit from Tally (by Pressing Y for Yes)
Alt + F1 – Select the company from the list of companies
• Alt + F3 – Alter company information
STEP II – GROUP FORMATION
•` A set of accounts which has common characteristics – Accounting Group
• Reserved groups/ pre-defined groups by Tally
• Allows to modify their names and creates sub-groups
Pre – Defined Groups
[28]
Primary Groups Sub – Groups
[15] [13]
Reserves & Surplus
Balance Sheet (Retained Earnings)
Profit & Loss
[9] [6] Bank OD Accounts
Capital Account (Bank OCC Accounts)
Sales Account Secured Loans
Loans (liability)
Unsecured Loans
Current Liabilities Purchase Account
Duties and Taxes
Fixed Assets
Direct Income Provisions
Investments Sundry Creditors
Current Assets Indirect Income Bank Accounts
Suspense Account Cash-in-hand
Miscellaneous Direct Expenses
Deposits
Expenses Loans & Advances
Indirect Expenses
Branch / Divisions Stock- in- hand
Sundry Debtors
Gateway of Tally > Accounts Info > Groups > Display (Single Groups)
Gateway of Tally > Accounts Info > Groups > Display (Multiple Groups)
STEP III – LEDGER CREATION
Tally ERP 9 has pre- defined ledgers
Cash Account
Profit & Loss Account
Gateway of tally > Accounts Info. > Ledgers > Display
EXAMPLE 2
Create the following ledger Accounts
Group Capital Fixed Assets Purchase Sales Sundry Sundry Indirect Indirect
Account Account Debtors Creditors Expenses Incomes
Ledger X Capital Furniture Purchase Sales Rahul Samsung Rent Rent
Account Account Account Received
Machinery Ravi Sony Salaries Interest
Received
Building Reeta LG Commission
Sunil Received
CREATING INVENTORY MASTERS
STEPS
Creating Stock Group
Creating Unit of Measures
Creating Stock Items
Stock Group Stock Item
LED Sony LED
LG LED
Samsung LED
Washing Machine Samsung washing machine
LG washing machine
IFB washing machine
(i) Step 1 – Creating stock group
LED
Stock Groups
Washing Machine
Gateway of Tally > Inventory > info.> Stock Group> Create (single stock group)
Step 2 – Creating Unit of Measures
Unit of Measure is Number(Nos.)
Gateway of Tally > Inventory Info. >Unit of Measures > Create
Step 3 – Creating Stock Items
Gateway of Tally > Inventory Info. >Stock items > Create (single stock item)
To create other stock items
STEP IV - VOUCHER ENTRY
Double Entry System of Accounting
Accounts Debit Credit
Personal The Receiver The Giver
Real What comes in What goes out
Nominal All expenses & losses All income & gains
LIST OF VOUCHERS
Contra Voucher (F4) – Records all transactions of cash and bank accounts
Used to transfer of funds from cash account to bank account, from bank account to cash account or from one
bank to another bank.
Payment Voucher (F5) – all transactions involving payments
payment to creditors, expenses such as salary, electricity bill, stationary etc.,
Receipt Voucher (F6) – records all cash or bank receipts
Receipts such as cash received from debtors, income received, interest received, rent received etc.,
Journal Voucher (F7) – An adjustment voucher (no physical movements of funds)
Depreciation on fixed assets
Sales Voucher (F8) – all sales cash/credit
Purchase Voucher (F9) – Purchase of goods cash/credit
EXAMPLE 3
Create a company and enter the following vouchers
Continues……………
Solution:
STEP 1 : Creation of Company
Gateway of Tally > Company Info > Create Company
STEP 2 : Group Formation (pre- defined groups – cash account and P/L account)
STEP 3 : Ledger Creation
Groups Capital Bank Fixed Purchase Sales Sundry Sundry Current Indirect
Accounts Assets Debtors Creditors Liability Expenses
Ledger Rakesh HDFC AC Purchase Sales MM Majestic Akriti Rent
Gupta Account Account Enterprise Company Furniture
Furniture Intex HCL Office
Solutions Refreshment
Computer Salaries
Electricity
Gateway of Tally > Accounts Info. > Ledger > create (single ledger)
CREATION OF INVENTORY MASTERS
Gateway of Tally > Inventory Info > Unit of Measure > Create
Creation of Stock Item
Gateway of Tally > Inventory Info > Stock Item> Create
STEP 4 : Voucher Creation
Transaction Date Particulars Debit Credit Voucher Type Function
Key
1 April 1 Cash a/c Dr. 10,00,000 Receipt F6
Voucher
To Rakesh Gupta capital 10,00,000
(Being the business of computer
accessories started in the name of
Desha enterprise)
2 April 5 HDFC bank a/c Dr. 5,00,000 Contra Voucher F4
To Cash 5,00,000
(Being opened account in HDFC
bank)
3 April 15 AC a/c Dr. 20,000 Payment F5
Voucher
To Cash a/c 20,000
(Being purchased AC for office
by cash)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
4 April 18 Furniture a/c Dr. 50,000 Journal F7
Voucher
To Akriti Furniture 50,000
(Being furniture purchased on
credit)
5 April 20 Computer a/c Dr. 15,000 Journal F7
Voucher
To HCL 15,000
(Being computer purchased on
credit)
6 April 20 Rent a/c Dr. 20,000 Payment F5
Voucher
To HDFC 20,000
(Being rent paid by cheque)
7 April 20 Office Refreshment a/c Dr. Payment F5
Voucher
To Cash a/c 240 240
(Being paid in cash)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
8 April 25 Purchase a/c Dr. 11,500 Purchase F9
Voucher
To Majestic Company 11,500
(Being computer accessories
purchased on credit)
9 April 26 Purchase a/c Dr 4,350 Purchase F9
Voucher
To Intex Solutions 4,350
(Being items purchased on credit)
10 April 26 Cash a/c Dr. 5,000 Contra Voucher F4
To HDFC a/c 5,000
(Being cash withdrawn from
bank)
11 April 27 MM Enterprise a/c Dr. 15,500 Sales Voucher F8
To Sales 15,500
(Being sold on credit)
Transaction Date Particulars Debit Credit Voucher Type Function
Key
12 April 28 Amba Solutions a/c Dr. 1,400 Sales Voucher F8
To sales 1,400
(Being sold on cash)
13 April 29 HDFC Dr. 40,000 Contra Voucher F4
To Cash a/c 40,000
(Being cash deposited in bank)
14 April 30 Salaries a/c Dr. 30,000 Payment F5
Voucher
To HDFC 30,000
(Being salary paid by cheque)
15 April 30 Electricity Bill a/c Dr. 5,000 Payment F5
Voucher
To Cash a/c 5,000
(Being electricity bill paid by
cash)
TRANSACTION 1
TRANSACTION 2
TRANSACTION 3
TRANSACTION 4
TRANSACTION 5
TRANSACTION 6
TRANSACTION 7
TRANSACTION 8
TRANSACTION 9
TRANSACTION 10
TRANSACTION 11
TRANSACTION 12
Cash Discount
Gateway of Tally > Accounting Voucher > Inventory Features (F11>F2)
F11 >F2
TRANSACTION 13
TRANSACTION 14
TRANSACTION 15
TO GENERATE REPORTS
Gateway of Tally > Display > Trial Balance
> Day book
>Statement of Accounts
Gateway of Tally> Balance Sheet
> Profit & Loss Account
>Stock Summary
> Ratio Analysis
TRIAL BALANCE
DAY BOOK
Profit & Loss Account
STOCK SUMMARY
Ratio Analysis
BALANCE SHEET
