Tally

Tally: It is an accounting software.

Account: To record day to day transactions in a proper manner.

Transaction : Buying and selling of goods and services 

Invented : Peutronic Pvt. Ltd.------ in banglore.

Versions : 4.5, 5.4, 6.3, 7.2, 8.1, 9.0, erp9.

Types of Account:

1. Personal Account

2. Real Account

3. Nominal Account

1. Personal Account : Personal Account include the account of individual person, group of persons and artificial person.

Ex. Nirmal account, V&J Company, XYZ Pvt. Ltd. etc.

2. Real Account : Real Account include the account of all assets and properties of the business.

Ex. Land and Building, Machine, Furniture etc.

3. Nominal Account : Nominal Account include the account of all expenses/losses and incomes/gains occurs in the business.

Ex. Salary account, commission received etc.

Golden Rules of Accounts:

1. Personal Account : Debit the receiver and credit the Giver.

2. Real Account : Debit what comes in and credit what goes out.

3. Nominal Account : Debit all expenses or losses and Credit all income/ gains

a.  TRANSACTIONS

b. Journal

c. Ledger

d. Trial Balance

e. Balance Sheet

   

DEFINITION

1. Capital : Amount or assets which a businessman invest in his business from his personal use is known as capital.

2. Drawing : Amount or assets which a businessman withdraw in his business from his personal use is known as Drawings.

3. Creditors : The personal from whom the amount is payable is known as creditors. Creditors is a liability of the business.

4. Debtors : The persons from whom the amount is receivable is known as Debtors.

Debtors is a asset for the business.

5. Direct Expenses : Expenses which is directly related to the production is known as Direct Expenses. It is also known as factory Expenses.

6.  Indirect Expenses : Expenses which is indirectly related to the product is known as Indirect Expenses. It is also known as office expenses.

7.  Direct Income : Income which is directly related to the product is known as Direct Income.

Ex. Sales

8. Indirect Income : Income which is indirectly related to the product is known as Indirect Income.

Ex. Commission received, Discount received.