Some of Basic Steps for writing books of accounts in Tally accounting software can be find as below mentioned. First of All if you have not...
Some of Basic Steps for writing books of accounts in Tally accounting software can be find as below mentioned.
First of All if you have not installed the Tally then please install Tally. It may be old version or new Tally ERP Version.
- Open Tally and Create A company by click on Create Company Button.
- Type your company/Business name, define Accounting year from which account should be start, Enter Address, mobile/telephone number and Email Address.
- 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
- Enable Goods & Service Tax = Yes,
- Set/alter GST Details
- 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.
- Before Entering any of the Voucher entry you have to confirmed if any books is existing or Enter Balance Sheet details as given in Balance sheet via Creating 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)
- 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 Output Ledger will be used for Sales Entries.)
- If you are managing books of accounts with inventory then create stock item via Inventory Info >>Stock Item >> Create.
- Also for inventory you have to create unit of measurement.
- GST Registered person should allocate hsn and gst rate wise details in Stock item and it will be better if the grouped the stock item.
You have to understand what voucher type should be used for any entry.
Voucher Types are
- Receipt : for Received any amount.
- Payment : If any payment Made
- Journal : If there is no cash or bank ledger involved.
- Contra : Transaction between cash and bank like cash deposited or cash withdrawal or transfer from one bank to another bank of business.
- Sales : Sales proceeds entry
- Purchase : Purchase Entries.
- Debit Note : for purchase return
- Credit Note : for Sales Return
Accounting EntriesSome 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 above part come to accounting entries.
Remember the golden rule of accounting whatever comes in 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 party then
Party A/c DR Rs 5,000
Cash A/c CR Rs 5,000
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 Sales Voucher
Sales entry can also be done via journal voucher if given on credit but in view of tracking Sales voucher option is best as it gives you to track and will be easier to get sales report at the end of period. Party account will be created under Sundry Debtors.
For Example : 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)
Party A/c Dr. 5000
To Sales A/c Cr. 4237.29
To CGST Output Cr. 381.34
To SGST Output Cr. 381.34
Narration : Being Item sold to Party Rs 5000/-
Purchase Entry in Tally
When we purchase some item from 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 Party account cash account will be credited. Party account will be created under Sundry Creditors.
For Example : we have purchased Some Item from part worth rs 10000/- excluding GST. GST rate on purchase is 18%.
Purchase A/c Dr. 10000
CGST Input Dr. 900
SGST Input Dr. 900
To Party A/c Cr. 11800
Narration : Being item purchased from party.
When we received Amount in Cash or in bank we use Receipt Voucher its shortcut is F6.
Cash or bank receipt entry can also be done in Journal Voucher if we enable cash entry in journal under F11 (account option)
for example : we have sold Rs 5000/- product and now recevied from party.
Entry would be
Cash A/c Dr. 5000.00
Party A/c Cr. 5000.00
Narration : Amount Received from Party
For booking any payment entry we uses Payment Voucher which can be accessed via F5 Shortcut.
We have paid Rs 10000 to Party Purchase A/c so entry would be
Party A/c Dr. 10000.00
Cash/Bank Cr. 10000.00
Narration : Bill amount paid to Purchase party.
Journal Voucher is used from entries which are non cash or bank, in simple words when no cash or bank is involved we will use Journal Voucher.
For Example We have Received Rs 800 as Discount from Purchase Party then entry would be :
Purchase Party A/c Dr. 800.00
Discount Received Cr. 800.00
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
Depreciation A/c Dr. 1000.00
Furniture A/c Cr. 1000.00
Narration : Depreciation Charged @ 10% on furniture.