Tally introdction with tally prime

What is the tally?

  • Tally is the accounting software that is used to manage day-to-day records of businesses.
  • Tally is the product of Tally Solutions Pvt. Ltd
  • it is an Indian multinational company that provides enterprises resource planning (ERP) software.
  • it is based in Bengaluru Karnataka India.
Tally software is available in free and genuine versions.

Free version

The benefit of free tally software is that people can learn tally software freely and if they feel comfortable with this software they can use this software in businesses to manage day-to-day records.
The free version of the tally software makes its very popular among businesses.
Tally software is for both kinds of businesses either businesses provides services or deals with goods.

Terms used in accounting

Accounting

It is a way of recording and summarizing in terms of amount, and transactions.
 

Business transactions

The movement of money from one business to other business or one person to other is called business transaction.
 

Purchase 

Goods purchase by a businessman from the suppliers is called purchase.
 

Sales

Goods sold by a businessman to the customers is called sales.
 

Debtors

A person who will pay to the business.
 

Creditors

A person or business whom the business will pay.
 

Capital 

The money to start a business by the business owner.
 

Drawings

Goods or cash which are taken out by the business owner for personal use of the business is called drawings
 

Assets

All the items which will be used to run the business for short and long term is called assets.
 

Types of assets

  1. Fixed assets
    It is also called permanent assets just like equipment in a business which are used to run business like printer, table, chairs etc.
  2. Current assets
    This assets is movable like cash, bank cash, etc.
 

Liabilities

In the business when business takes cash in credit or goods in credit then business need to repay for that items is called liability of business.
 

Expense

When business is running there is some cost which is occurring time to time like puchasing goods for processing., rent, paid delivery, salary of employee is called expense of business.
 

Types of account

  1. Personal account
  2. Real account
  3. Nominal account
 

Personal account

Accounts of persons, firms and institutions.
 
Principles
	Debit the receiver
Credit the giver
 

Real account

Accounts of things, material, assets and properties and all the items which has physical existence which can be seen and touch. ex: cash, furniture, investments.
Principles
	Debit what comes in
Credit what goes out

Nominal account

Account for the services either received or given to the businesses
Example:
Salary, Rent, Wages, Stationary
Principles:
	Debit all expense/losses
Credit all income/gains
 
 
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