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.
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
It is a way of recording and summarizing in terms of amount, and transactions.
The movement of money from one business to other business or one person to other is called business transaction.
Goods purchase by a businessman from the suppliers is called purchase.
Goods sold by a businessman to the customers is called sales.
A person who will pay to the business.
A person or business whom the business will pay.
The money to start a business by the business owner.
Goods or cash which are taken out by the business owner for personal use of the business is called drawings
All the items which will be used to run the business for short and long term is called assets.
Types of assets
- 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.
- Current assets
This assets is movable like cash, bank cash, etc.
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.
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
- Personal account
- Real account
- Nominal account
Accounts of persons, firms and institutions.
Debit the receiver
Credit the giver
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.
Debit what comes in
Credit what goes out
Account for the services either received or given to the businesses
Salary, Rent, Wages, Stationary
Debit all expense/losses
Credit all income/gains