Account 6 Marks Question

primary groups in Tally:

1. Capital: Owner's Capital, Partner's Capital, Equity Share Capital, Preference Share Capital comes under it. It is a primary group.

• Reserve & Surplus: It is the sub group of Capital A/c. It includes General reserve, Capital Reserve etc.

2. Loans: It is used to keep the record of the Loans taken by the Company. It is a primary group which contains following sub groups:

• Bank Overdraft: Bank overdraft and cash credit facility taken from bank are placed under this group.
• Secured Loans: The Loans which are taken against a security like mortgage, pledge etc. are placed under it.
• Unsecured Loans: Apart from Secured Loans rest loans are unsecured which come under this subgroup.

3. Current Liabilities: It is a primary group which has three subgroups:

• Duties & Taxes: The accounts related to duties & taxes you collect or pay through sale and purchase come under it.
• Provisions: All the provisions which are made for the future e.g., Provision for tax, proposed dividend, Bad debts.
• Sundry Creditors: All traders, suppliers which provide goods on credit basis to business.
• Other Current Liabilities: Place all other current liabilities in this group like Outstanding Exp, Provident Fund, Tax Deducted at Source (TDS) etc.

4. Fixed Assets: Immovable properties like patents, Trade Rights, Plant, Goodwill, Building etc.
5. Investment: Investment Ledger account relates to Shares, Bonds, Govt. Securities and investment in other company.

ADVANTAGES OF TALLY:Following are the advantages of Tally software:

1. The reports generated by Tally software are accurate and reliable.
2. It is very simple to use. A person with basic knowledge of accounts can easily operate it.
3. It does not matter that business is big or small. It can be adopted by any kind of business organisation.
4. Various reports can be generated very easily at any point of time.
5. It can store huge volume of transactions. It can manage not only one company but is also able to manage accounts of multiple companies.
6. Its security feature keeps the data confidential. The data is generally password protected and it facilitates data vault and data audit feature to secure the data.

Receipt Voucher: All inflow of money is recorded through receipt voucher. In other words the transactions in which Cash or Bank A/c are Debited come under this voucher. Cash received from debtors or capital A/c, loan and advance taken from another party are recorded in receipt voucher.Payment Voucher: This voucher is used to record all outflow of money. Payment towards any expenses, creditors and advances are to be recorded in Payment Voucher. For payment voucher we use F5 key and press F12 Key for any changes in configuration of Voucher.
Contra Voucher: This voucher is used for transferring fund between Cash and Bank Accounts only. Withdrawal of Cash from bank and deposit of Cash into Bank are the transactions recorded under contra voucher. For contra voucher we use F4 Key.
Journal Voucher: Journal Voucher is used to record Non-Cash transactions. It is an adjusting voucher. Adjustment between the ledgers are recorded under Journal Voucher.
Purchase Voucher: In Purchase Voucher we record all transactions related to Purchase. When a Company buys goods on credit or cash, purchase voucher is used. To pass a Purchase Voucher.
Sales Voucher: Sales Vouchers are used to record Cash sale or Credit sale. In this voucher Party's name & reference no., details are filled by the user. All details of goods to be sold have to be entered by user which helps to keep record of available units. To Pass a sale voucher F8 key is used.

Fill the necessary fields with the information taken from internal and external documents of the Company:

• Company Name: Enter the Name of the Company in this field.
• Company's Mailing Address: Mailing Address of the Company which is printed in all external documents.
• IT Number: Enter the Income Tax number allotted by Income Tax Deptt.
• Accounting Module: If user wants to maintain Financial Accounts only select Accounts only and if he wants to maintain accounts with inventory select other option.
• Financial Year: Specify financial year of the Company and enter beginning date of the financial year.

Other Details: If the user wants to specify other information he can fill in these fields. For example, he can specify the currency symbol that will be used to maintain the books of accounts. The symbol already appears for India and SAARC Companies and the field is left blank for other nations currency.
Saving the Profile: Finally when all Company details are filled save the Company Profile by accepting Yes.

SALIENT FEATURES OF TALLY:
Tally 9 is very popular Accounting software. A person who just knows basics of Accounts can operate Tally Software easily and can generate instant reports which help the management in taking quick decisions. Its latest version 9 makes it very unique as it has various features as follows:

1. In Tally, inventory management is possible. Once the available units are entered in it, updated stock summary after each transaction can be obtained.
2. There is no need of keeping record of salary and wages separately as Payroll feature facilitates the same.
3. Preparation of Tax reports and tax filing work becomes very easy in Tally as Balance Sheet, P & L statement, TDS returns, Excise forms, VAT forms, Service Tax returns etc. can be generated easily in Tally at any point of time.
4. To find out the cost of a particular job is very easy as Tally provides cost centre facility in it.
5. Syncronization of data is another main feature of Tally which facilitates to manage the data over different locations.
6. Various MIS reports can be generated easily and Budget can be maintained in Tally.
7. It also calculates interest on outstanding amount.