Basic Steps for writing books of accounts in Tally

Basic Steps for writing books of accounts in Tally Some of the Basic Steps for writing books of accounts in Tally accounting software can be found bel

Basic Steps for writing books of accounts in Tally

Some of the Basic Steps for writing books of accounts in Tally accounting software can be found below mentioned.

First of All, if you have not installed the Tally then please install Tally. It may be an old version or a new Tally ERP Version.

1. Open Tally and Create A company by clicking on Create Company Button.
2. Type your company/Business name, define the Accounting year from which the account should be started, and Enter your Address, mobile/telephone number and Email Address.
3. If you have Tally ERP Version and you are a GST Registered person then enable GST via Pressing F11 then F3 or Statutory & Taxation info. and
1. Enable Goods & Service Tax = Yes,
2. Set/alter GST Details
3. Type State, Registration Type Regular or composition then GSTN, GST Registration Date, Then GSTR1 Filing Period is it monthly or Quarterly. E-way Bill applicability.
4. Before Entering any of the Voucher entries you have to confirm if any books is existing or Enter Balance Sheet details as given in the Balance sheet via Creating a New ledger ( New ledger can be created from Accounts Info =>>Ledgers =>> Create (If you want to Create Multiple Ledger then Select CReate under Multiple Ledgers)
5. If you are Gst registered person then you have to create some basic GST accounts like CGST Input, SGST Input, IGST Input, CGST Output, SGST Output & IGST Output under Duties & Taxes >> GST >> Central tax or State tax or Integrated Tax. ( Here Input ledger is used for Purchase and the Output Ledger will be used for Sales Entries.)
6. If you are managing books of accounts with inventory then create stock items via Inventory Info >>Stock Item >> Create.
7. Also for inventory, you have to create a unit of measurement.
8. GST Registered person should allocate HSN and GST rate-wise details in the Stock item and it will be better if they grouped the stock item.

Voucher Types

You have to understand what voucher type should be used for any entry.
Voucher Types are

1. Receipt: Received any amount.
2. Payment: If any payment Made
3. Journal: If there is no cash or bank ledger involved.
4. Contra: Transaction between cash and banks like cash deposited or cash withdrawal or transfer from one bank to another bank of business.
5. Sales: Sales proceeds entry
6. Purchase: Purchase Entries.
7. Debit Note: for purchase return
8. Credit Note: for Sales Return

Accounting Entries

Some of the basic Accounting entries are :

• Sales Entry in Tally with GST
• Purchase Entry in Tally with GST
• Receipt Entry in Tally
• Payment Entry in Tally
• Contra Entry in Tally
• Journal Entry in Tally
• Year-End Closing or Adjustment Entries in Tally

After the above part come accounting entries.
Remember the golden rule of accounting whatever comes into your Business is Debit and Whatever goes out from business is Credit.
For accounting entry, you have to identify which ledger is debited and which should be credited. For Example, if you paid Rs. 5000/- to the party then

Particulars	Dr	Cr
Party A/c	Rs 5,000
Cash A/c		Rs 5,000
Narration: Amount paid to the supplier.

All expenses will be Debited all income will be credited.
All Assets will be Debited and All Liabilities or payables will be credited.

Some of the basic Entries are elaborated below

Sales Entry in Tally

When we Sale something then this entry will be done under the Sales Voucher
Sales entry can also be done via journal voucher if given on credit but because of tracking Sales voucher option is best as it gives you to track and will be easier to get sales reports at the end of the period. Party accounts will be created under Sundry Debtors.

For Example, if You have sold goods worth Rs. 5000/- including GST, GST Rate is 18%.
then entry would be under sales voucher (shortcut if F8 after pressing Accounting Voucher)

Particulars	Dr	Cr
Party A/c	5000
To Sales A/c		4237.29
To CGST Output		381.34
To SGST Output		381.34
Narration: Being Item sold to Party Rs 5000/-

Purchase Entry in Tally

When we purchase some item from the party we will use Purchase Voucher its Shortcut is F9.
The entry can be for cash purchase or credit purchase only difference in both is that in place of the Party account, the cash account will be credited. A Party account will be created under Sundry Creditors.
For Example, we have purchased Some Items from parts worth rs 10000/- excluding GST. The GST rate on purchases is 18%.

Particulars	Dr	Cr
Purchase A/c	10000
CGST Input	900
SGST Input	900
To Party A/c		11800
Narration: Being an item purchased from the party.

Receipt Entry

When we received the Amount in Cash or in the bank we use a Receipt Voucher its shortcut is F6.
Cash or bank receipt entry can also be done in Journal Voucher if we enable cash entry in the journal under F11 (account option)

for example, we have sold Rs 5000/- product and now received from the party.
Entry would be

Particulars	Dr	Cr
Cash A/c	5000
Party A/c		5000
Narration: Amount Received from Party

Payment Entry

For booking any payment entry we use Payment Voucher which can be accessed via F5 Shortcut.

We have paid Rs 10000 to Party Purchase A/c so the entry would be

Particulars	Dr	Cr
Party A/c	10000
Cash/Bank		10000
Narration: Bill amount paid to Purchase party.

Journal Entry

Journal Voucher is used from entries that are non-cash or bank, in simple words when no cash or bank is involved we will use Journal Voucher.

For Example, if We have Received Rs 800 as a Discount from Purchase Party then the entry would be :

Particulars	Dr Amount	Cr. Amount
Purchase Party A/c	800
Discount Received		800
Narration: Discount Received from the supplier.

Year-End Adjustment/Closing Entry

Depreciation Entry is also under Closing entry. Depreciation A/c will be created under indirect expenses.
Depreciation @ 10% on Furniture Value Rs 10000/- Depreciation Amount Rs 1000.00

Particulars	Dr Amount	Cr. Amount
Depreciation A/c	1000
Furniture A/c		1000
Narration: Depreciation Charged @ 10% on furniture.