Tally(Manual) & Accounts

Manual Accounting

Tally Erp 9

Tally Erp 9- A tally is financial software that is used for creating & managing a/c (Accounts) details.

ERP means- Enterprises Resource Planning.

Other financial software-- BUSY, DATAMAN, MARK… 

                           Accounts

An a/c is a financial statement of transition between two parties. Ex. Bank A/c

Types of A/c--

Personal A/c-- Those A/c which relate to any person, firm, organization are known as personal A/c. Ex. Ssbtechcomputer a/c, rakesh a/c, LIC a/c, Bank a/c

Real A/c-- Those A/c which relate to any goods are known as real a/c. Ex-Cash a/c, Furniture a/c, Land a/c, Machine a/c, etc.

Nominal A/c-- Those A/c which relates to any profit & loss, income, etc. Ex- Wages a/c, salary a/c, interest a/c, discount a/c. 

Double Entry System--Each Transaction has two sides. The first is DR( Debit) &  other is CR( Credit). This entry system is known as Double-entry system.

Personal A/c

Those A/c which relate to any person, firm, organization are known as personal A/c. Ex. Ssbtechcomputer a/c, rakesh a/c, LIC a/c, Bank a/c.

Entries Rule— Debit the Receiver—  DR

                          Credit the Giver       --  CR 

                          पाने वाला                  --  DR

                          देने वाला                    --  CR

Note*-- In Personal a/c, we always had a transition of money. 

JOURNAL ENTRIES of Personal A/c

EXERCISE-1

1) Cash received from Mahesh 300

Cash A/c DR 300

Mahesh A/c CR 300

2) Cash paid to Akash 500

Akash A/c DR 500

Cash A/c CR 500

3) Cash deposited into bank 1000

Bank A/c DR  1000

Cash A/c CR  1000

4) Cash received from Abhay 25000

Cash A/c DR 25000

Abhay A/c CR 25000

5) Cash paid to Saijal by cheque 40000

Bank A/c DR 40000

Saijal  A/c CR         40000

6) Cheque paid to Ssbtechcomputer 25000

Ssbtechcomputer A/c  DR 25000

Bank             A/c         CR 25000

7) Cheque received from Abhay 5000

Abhay A/c DR 5000

Bank A/c CR         5000

8) Cash paid to Solus Computer Centre 500

Solus Computer Centre A/c DR 500

Cash A/c                              CR 500

9) Cash paid to LIC 25000

LIC  A/c DR 25000

Cash A/c CR         25000

10) Ram paid by Card 250000

Bank A/c DR 250000

Ram A/c  CR         250000

Real A/c

Those A/c which relate to any goods are known as real a/c. Ex-Cash a/c, Furniture a/c, Land a/c, Machine a/c, etc.

Entries Rule— What comes in—  DR

                          What goes out   --  CR 

                          जब कोई वस्तु या संपति आए तो —  DR

                           जब कोई वस्तु या संपति जाए तो --  CR 

Purchase/ Sale Payment Mode -- 

1) Credit-- उधार
2) Cash --  Pay on delivery 
3) Cheque, UPI, Card -- Bank            

JOURNAL ENTRIES of Real A/c

EXERCISE-2

ON CREDIT(उधार)

1) Ram purchased a Laptop on credit 78000

Laptop   A/c DR 78000

Ram      A/c  CR         78000

2) Ajay sold  a Laptop on credit 80000

Ajay  A/c      DR 80000

Laptop  A/c  CR         80000

3) Ajay purchased a jeep on credit 400000

Jeep   A/c DR 400000

Ajay  A/c  CR         400000

4) Goods purchased on credit from Vivek 8000

Purchased   A/c DR 8000

Vivek        A/c  CR         8000

5) Goods sold on credit to Abhimanyu 8000

Abhimanyu   A/c DR 8000

Sale A/c               CR 8000

Note*-- If we don't know the product name then entry will be marked as purchase or sale a/c.

Note*-- Sale A/c always in CR & Purchase A/c always in DR.

EXERCISE-3

ON CASH

1) Ram purchased a Laptop on cash 78000

Laptop   A/c DR 78000

Cash      A/c  CR         78000

2) Ajay sold  a Laptop on cash 80000

Cash A/c      DR 80000

Laptop  A/c  CR         80000

3) Ajay purchased a jeep on cash 400000

Jeep   A/c DR 400000

Cash  A/c  CR         400000

4) Goods purchased on cash from Vivek 8000

Purchased   A/c DR 8000

Cash      A/c  CR         8000

5) Goods sold on cash to Abhimanyu 8000

Cash  A/c DR 8000

Sale A/c    CR 8000

EXERCISE-4

ON CHEQUE

1) Ram purchased a Laptop on cheque 78000

Laptop   A/c DR 78000

Bank     A/c  CR         78000

2) Ajay sold  a Laptop on cheque 80000

Bank  A/c      DR 80000

Laptop  A/c  CR         80000

3) Ajay purchased a jeep on cheque 400000

Jeep   A/c DR 400000

Bank  A/c  CR         400000

4) Goods purchased on a cheque from Vivek 8000

Purchased   A/c DR 8000

Bank      A/c  CR         8000

5) Goods sold on the cheque to Abhimanyu 8000

Bank  A/c DR 8000

Sale A/c    CR 8000

                                                       JOURNAL ENTRIES of Stock Item In Real Ac

1. Goods purchase from ram ji collection 10 pcs. trousers @ 3000, 20 pcs. shirts @ 1200 

Cash                      CR    30000 + 24000 =54000      

Purchase return     DR                               54000

2. 10 pcs. of CPU @ 10000, 10 pcs. of Monitor @ 4000 & 10 pcs. of Keyboard @ 400 purchased from Cash from ssbtechcomputer kanpur.

Purchased Ac DR  144000

Cash Ac         CR   144000

3. 8 pcs. of Keyboard @ 450 rs. sold on credit to Raj Grp.

Purchased Ac DR  3600

Raj Grp   Ac   CR  3600

                                                                          Return Entries

1. 5 pcs. of Keyboard returned from Raj Grp.

Sales Return Ac DR  2250

Raj Grp Ac         CR  2250

2.3 pcs. of Monitor returned to ssbtechcomputer.

Purchased Return Ac CR 12000

Ssbtechcomputer Ac  DR 12000

 

3 Goods purchase from ram ji collection 10 pcs. trousers @ 3000, 20 pcs. shirts @ 1200 

Cash                      CR    30000 + 24000 =54000      

Purchase return     DR                               54000

4 Goods return to Ram ji collection 5 pcs. 

Purchase return     CR      15000

Ram ji collection  DR      15000

Note*-- Purchase Return CR, Sale Return DR

Nominal A/c

Those A/c relate to any profit & loss, income, etc. Ex- Wages a/c, salary a/c, interest a/c, discount a/c, Donation A/c, Frieght A/c, Charity A/c, Rent A/c Etc . 

Entries Rule— All Losses OR Expenses —  DR

                          All Gains OR Income       --  CR 

                          हानि or व्यय                      —  DR

                          लाभ or आय                       --  CR 

Rule 2-- In Nominal a/c, we can't make a/c with the name of any person, firm & organization. We will always make a/c of Payment modes such as Cash or Bank.

JOURNAL ENTRIES of Nominal A/c

EXERCISE-5

1) Salary  received from Mahesh 12000

Salary A/c DR 12000

Cash A/c CR 12000

2) Salary  paid to Mahesh by cheque 20000

Salary A/c DR 20000

Bank  A/c CR    20000

3) Rent paid by Cash 2000

Rent A/c DR 2000

Cash A/c CR 2000

4) Insurance  received from Maharaj by cash12000

Insurance A/c CR 12000

Cash A/c         DR 12000

5) Commission  received from Mahesh by cheque 12000

Bank A/c           DR        12000

Commission A/c CR 12000

Loss By Theft Ac

If your goods or Money got stolen then these entries will be count in Loss by Theft Ac. Loss by theft Ac is a type of Nominal Ac. It will be always in DR.

1. 5000 rs got stolen from office.

Loss by theft Ac DR  5000

Cash Ac             CR  5000

2. Goods worth rs. of 8500 stolen by some one.

Loss by theft Ac DR 8500

Purchased Ac CR    8500 ( Lack o f Goods)

3. Goods worth rs of 9000 & cash 9000 stolen.

Loss by theft Ac DR  18000

Purchased Ac   CR   18000

Cash Ac            CR   18000

Loss By Fire Ac

If your goods or Money burnt by fire then these entries will be count in Loss by Fire Ac. Loss by Fire Ac is a type of Nominal Ac. It will be always in DR.

1. 5000 rs burnt by fire by mistake.

Loss by fire Ac  DR  5000

Cash Ac             CR  5000

2. Goods worth rs. of 8500 got fired.

Loss by fire Ac DR 8500

Purchased Ac CR    8500 ( Lack o f Goods)

3. Goods worth rs of 9000 & cash 9000 burnt  by mistake.

Loss by fire Ac DR  18000

Purchased Ac   CR   18000

Cash Ac            CR   18000

4.Goods worth rs of 11000 burnt by fire & that time goods worth rs, of 9000 stolen by public.

Loss by fire Ac   DR 11000

Loss by theft Ac DR  9000

Purchased Ac     CR  20000 

Important Terms relate to Tally--

Capital (पूंजी)--  Capital is a part of wealth that is used for further production. It contains three-part--

1. Fixed Capital

2. Floating Capital

3.  Working Capital

1.Fixed Capital-- Fixed capital is invested in the fixed or long-run assets. Ex- Machine, Place, etc.

2.Floating Capital-- Floating capital is the amount of funding needed by a business to pay for its immediate operational needs. 

3.Working Capital--Working capital, also known as networking capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills), and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.

Working Capital = Fixed Capital - Floating Capital

Capital A/c--  When a person starts a business then he makes an investment in that business. He invested money in Cash, Furniture, Machinery, Buildings, Land, etc. These things are ASSETS and submission of all assets is known as CAPITAL. 

Capital a/c is a type of personal a/c. It will always be in CR.

1. Vivek started a business with cash 100000

Cash Ac DR    100000

Capital Ac CR 100000  OR Vivek's Capital

1. Vivek & Abhishek started a business with  100000 & 50000 rs cash.

Cash Ac DR                         100000

 Vivek's Capital  Ac     CR   100000

Abhishek's Capital Ac CR   100000

3. Vivek started a business with cash 100000,  Furniture 200000, Machinery 300000, Land 500000.

Cash A/c           -----    DR 100000

Furniture A/c    -----    DR 200000

Machinery A/c -----    DR 300000

Land A/c          -----    DR 500000

Capital A/c      ------   CR 1100000

4. Akash started a business with cash 10000,  Furniture 20000, Machinery 30000, Land 50000 & Bank Loan 20000, Bills payable 2000.

Cash A/c           -----    DR 10000

Furniture A/c    -----    DR 20000

Machinery A/c -----    DR 30000

Land A/c          -----    DR 50000

Bank Loan Ac ------   CR 20000

Bill Payable Ac -----  CR 2000

Capital A/c      ------   CR 88000

Explanation---  Assets - Libilties =  Captial

Liability-- A liability is something a person or company owes, usually a sum of money. ... Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.

Drawing A/c--  A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. When owner take some money or goods for personal/ Domestic/ Private Use then these entries will be count in Drawing Ac. 

Drawing Ac is a type of Personal Ac. It will be always in DR.

1. Cash withdrawal for personal use. 5800 rs.

Drawing Ac DR   5800

Cash Ac       CR   5800

2. Ravi withdrawal 9000 rs for private use.

Drawing OR Ravi's Drawing Ac DR  9000

Cash Ac                                       CR   9000

3. Goods worth rs of 6500 taken for domestic use.

Drawing Ac DR   6500

Purchased Ac CR 6500 (Because of Lack of Goods)

4. Goods worth rs. of 5200 & Cash 4800 taken for personal use.

Drawing Ac    DR   10000

Purchased Ac CR    5200

Cash Ac         CR     4800

Asset-- An asset is anything of value or a resource of value that can be converted into cash.

Note*-- We never make any deal of our Fixed Asset.

Stock-- The goods available for sale is known as stock.

Voucher--  Vouchers are written entries of our transactions. 

Entry--  An Entry is a systemic record of transactions in the record book.

Discount--  For Increasing the sales seller gives a rebate to the buyer that is known as a discount. If this discount is less than the Printed Rate then this discount will call TRADE DISCOUNT.

Some Special Entries----

1. 10 pcs. of saree @ 1000 purchased from raj ratan saree on Credit, 10 pcs. of saree @ 1200 from Shree geeta gorkhpur on cash, 10 pcs. of saree @ 1500 from Shri Lagan on chq.

Purchased Ac DR  27000 

Raj Ratan Ac CR   10000

Cash Ac         CR  12000

Bank Ac        CR   15000

2.Rent @ 2500, Electric Bill @ 5000 paid.

Rent Paid Ac             DR  2500

Electric Bill Paid Ac DR  5000

Cash Ac                     CR  7500

3.50 pcs of Shirts @ 800 & 50 pcs of Trousers @ 1800 purchased on chq & 500 rs discount received.

Purchased Ac               DR  130000

Bank Ac                       DR   129500

Discount Received Ac CR   500

Things you have to know in Manual Accounting-

1. Ledger

2. Trail Balance

3. Trading

4. Profit & Loss

5. Balance Sheet

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