History of Tally

The Late Shri S. S. Goenka, founder of the company Peutronics Pvt. Ltd. set up Tally's software business in 1986. His able mentoring of his son Bharat resulted in the creation of software that would simplify the process of financial accounting and inventory. Determined to create and develop a simple business accounting software, Bharat spent months in the research and development of path breaking technologies, which would assist him in achieving his goals. His dedication and focus led to the development of a commercial product. It was at this stage that Peutronics Pvt. Ltd.

tally erp 9 & Stages of Tally

tally information

https://www.youtube.com/watch?v=x97M6CRLMws

LEADGER GROUPS IN TALLY

1. Bank Accounts:- This is a sub group under current assets create all bank current accounts under this group Ex. SBI current A/c, Canara Bank A/c etc., In case of sole proprietary concerns also create bank savings accounts under this group.

2. Bank OD Accounts:- This is a sub group under Loans (Liabilities). It has an Alias name called Bank OCC accounts, create all loan A/c borrowed by the company for the purpose of working capital under this group. Ex. SBI OD A/c, AB OCC A/c

3. Branch Divisions:- This is primary group. When we are maintaining accounts of Head Office which has various Branches of Divisions under it, create such branch or division accounts under this group Ex. Vijayawada branch A/c, Hyderabad H.O A/c etc.,

4. Capital Account:- This is a primary group create all types of Capital Accounts in this group irrespective of the legal status of the company i.e whether it may be proprietorship concern or partnership firm or a Ltd co Also create owners personal drawings Accounts under this group.

Ex. Ravi’s Capital A/c (Proprietor)

            Radha Capital A/c (Partner).

5. Cash – in – hand:- This is a subgroup under current assets, there is already one system defined cash a/c under this group. So need not to be create Cash A/c under this group. If necessary the user should create petty cash A/c under this group.

6. Current Assets:- This is Primary group there are six system defined subgroups under this group, they are 1. Stock in hand 2.Deposits. 3. Loans & Advances. 4. Sundry debtors. 5. Cash – in – hand. 6. Bank accounts.

            While creating any current asset A/c the user should checkup whether it can be placed under any of the subgroups. If there is no related subgroup then it can be kept directly under current assets or separate subgroups may be created for such accounts when they are multiple in number.

7. Current Liabilities:- This  is a primary group. There are three system defined subgroups under group. They are 1.Duties & taxes 2. Provisions 3. Sundry Creditors.

            While creating any current liability a/c the user should check – up whether it can be placed under any of the subgroups. If there is no related subgroups then it can be kept directly under current liabilities or a separate subgroup may be created for such A/c under current liabilities when they are multiple in number.

8. Deposits:- This is a subgroup under current assets. Create all deposit accounts under this group Ex. Telephone Deposit A/c, Electricity deposit A/c, Showroom deposit A/c.

9. Direct Expenses:- This is a primary group. Create all expenses accounts that are to be debited to trading account under this group. Ex. Wages A/c, Unloading charges a/c, Carriage inward. Etc.,

1. Direct Incomes:- This is a primary group. Create all income all accounts that are to credited to treading A/c under this group ex. Insurance claim recovery, Sale of Scrap.

To Credit any income A/c to trading A/c the following two conditions should be satisfied.

1. The company should carry on trading activity ie. Purchase and sale of goods.
2. Such income account should be related to the main business activity of the company.

Ex. Sale of empty barrels, sale of scrap, sale of gunny bags, sale of by-products.

2. Duties & Taxes:- This is a sub group under current liabilities create all duties & taxes A/c’s that are collected from customers and payable to various government under this group ex. Sales tax collection / payable A/c Excise duty payable A/c etc.,
3. Fixed Assets:- This is a Primary group. Create all assets accounts that are purchased with an intention to use them in business and not with an intention to resell them at a profit under this group ex. Furniture, land & buildings etc.
4. Indirect Expenses:- This is primary group. Create all expense A/c’s that are to be debited to profit & Loss A/c under this group. Ex. Salaries, Telephone expenses, electricity expenses, interest, depreciation etc.
5. Investments:- This is a primary group. Create all asset A/c’s that satisfy the following two conditions under this group.

1. Such asset a/c can be resold in the market at any point of time.
2. Such asset A/c should generate income by way of interest or dividends Ex. Equity shares, NSC Bonds etc.

6. Loans and Advances (Asset):- This is a subgroup under current asset create all loans & Advances accounts that are given by the company to staff members or outsiders under this group Ex. Loan to accountant loan to salesman etc.,
7. Loans (Liabilities):- This is a Primary group. There are three system defined subgroups under this group they are 1.Bank O.D a/c 2. Secured loans 3.Unsecured Loan accounts directly under this group.
8. Miscellaneous Expenses (asset):- This is a primary group. Create all expense accounts that are not written off to P&L A/c the same year in which they are incurred under this group. Such expenditure is written –off proportionally over a number of years Ex. Preliminary expenses lump sum amount paid for obtaining copy right or technical know how.
9. Provisions:- This is a subgroup under current liabilities. Create all provision accounts set aside from profits to meet any unpaid expenditure of the current year of unforeseen losses of future years under this group. Ex. Provision for sales tax. Provision for bad debts etc.
10. Purchase Account:- This is a primary group, Create at least one purchase A/c under this group to record the purchase transactions. If necessary the user create following types of purchase accounts.

1. Cash purchases with in state.
2. Credit purchases with in state.
3. Cash purchases out side state.
4. Credit purchases out side state.

Also create purchase returns A/c under this group. When the user company maintains accounts and inventory records in tally then while recording the purchase voucher the system automatically displays. Inventory allocations screen (Inventory voucher), where the user should enter the following details.

1. Name of the item purchased 2. Quantity 3. Godown Address 4. Rate 5. Amount the system will take these values and updates the stock records.

11. Reserves and Surplus:- This is a subgroup under capital account. It has an alias name called retained earnings, create all reserve a/c’s set aside from profits for future development of business under this group ex. General reserve specific like Generator reserve A/c etc.
12. Sales Accounts:- This is a primary group, create at least one sales account under this group to record the sales transactions. If necessary the user may create the following types of sales accounts.

1. Cash sales with in state.
2. Credit Sales with in state.
3. Credit Sales out side State.

Also create sales returns A/c under this group, inventory allocations screen is linked with this group, where the user should enter all the stock details.

13. Secured Loans:- This is a subgroup under loans (liability) Create all loan A/c’s borrowed by the company against primary or collateral or both types of securities under this group. Ex. Term loan from SBI. Term loan from SFC, truck loan from apple finance corp.
14. Stock in hand:- This is a subgroup under current assets, when the user company maintains both accounts and inventory then there is no need to create stock A/c under this group. The system automatically displays opening, closing stock values basing on the stock details entered while recording purchase and sales transactions in the trading A/c and balance sheet.

In case the user company maintains only accounts and it has physical  stock in the business then a stock A/c should be created under this group and the opening and closing stock values and on 1^st April and 31^st March should be given by the user.

15. Sundry Creditors:- This is a subgroup under current liabilities create all supplier A/c’s of the company under this group. These accounts are also called vendor accounts or accounts payable accounts.
16. Sundry Debtors:- This is a subgroup under current assets create all customers A/c’s of the company under this group. These accounts are also called Accounts receivable accounts.
17. Suspense Account:- This is a primary group. Create all accounts where the actual amount involved in the transaction or the particular ledger A/c involved are not known temporarily under this group. Ex. Traveling Advance A/c  interest suspense A/c.
18. Unsecured Loans:- This is a subgroup under loan (liabilities). Create all loan A/c’s borrowed by the company without any security under this group. Ex. Loan from a friend or father etc.