Page 293 - DMGT104_FINANCIAL_ACCOUNTING

Unit 14: Introduction to Tally

checks at regular levels to ensure complete reliability of data. Tally maintains all Books of Notes
accounts starting from records of vouchers, ledgers etc. Tally handles different types of vouchers
like Payment, receipt, adjustment entries like Journals, Debit notes, Credit notes, Sales, Purchases,
Receipt notes, Delivery notes etc. Tally follows the double entry system of accounting and hence
will eliminate any possible errors.

14.1 About Tally

Tally is complete Accounting system. It handles different types of vouchers, for example,
Payments, Receipts, Journals, Debit Notes, Sales, Purchase, Delivery note and etc. Accounts
Receivables is the amount to be received from Sundry Debtors and Accounts Payable is the
amount payable to Sundry Creditors. Tally provides complete bill wise information of amounts
receivable as well as payable either Party wise or Group wise. Activate ‘Bill Wise’ details by
pressing F11 (Features). Now Create a Party (Ledger A/c) under the group ‘Sundry Debtors’ as
well as one under group ‘Sundry Creditors’, and also activate ‘Maintain balances bill by bill’ for
all the Parties while you are in Ledger creation mode.

Tally allows the user to define account heads as per his requirements. Tally offers 28 predefined
widely used Groups. Of these 28 predefined groups 15 groups are Primary groups and the
remaining 13 are sub groups. Among the 15 predefined groups 9 Groups are Balance Sheet items
and the remaining 6 groups are Profit & Loss items. The user is allowed to alter the arrangement
of any of these 28 Groups. Further the user is allowed to create any number of Groups as per his/
her requirements, which can either be a Primary or a Sub-Group. Tally also allows the user to
have a multiple tree like structure groupings. This flexibility and ease of configuration allows
Tally to be used across industries and geography.
Tally allows users to Drill Down from any report to lower levels of reports till the voucher. For
example, user can view a Balance sheet and then select the required group in the Balance Sheet
and drill down till the vouchers. Any changes then made in the voucher (i.e. if allowed by
current security levels), is reflected real time at all levels.
Tally allows users to select any report for a particular date or for any range of dates. Once you
have selected a Report, press F2 (F2 in case of Day Book) and specify the date range (From and
To). You can also do simultaneous comparison side by side for any two selected periods including
across financial years. All reports from Tally are generated based on the transaction date rather
than the date of actual entry and hence Tally ensures that information is always represented
accurately. This unique approach to bank reconciliation allows review of past date status for
auditing purpose.
Tally provides columnar reports in Sales register, Purchase Register and Journal registers as
well as Ledgers and Cash/Bank Books.

14.1.1 Gateway to Tally Menu

Notes If we select Display > Accounts Books the menu shows the full patch picture.

The menu displays primary choices. Menu options are dependent on activation of options. In
some cases, you may find some options appearing as grayed indicating that option is not active.
The menu is a drill-down, on selecting an option, if a sub-menu exists for the selected option, it
would be displayed. If next level sub-menu exists, it would appear below it – showing the entire
path at top of the menu. By selecting Quit – last option in each menu (by pressing Esc key in
keyboard) you can return to the upper level menu.

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