basic concepts of accounting and tally

1. PRESENTATION BASED ON

2. INTRODUCTION TO ACCOUNTING
 Accounting – Information Process
 Accounting Equations
 Classification of Accounts & their Rules
 GAAP (Generally Accepted Accounting Principles)
 Concepts of Tally

3. DEFINITION OF ACCOUNTING
Accounting is the art of recording,
classifying and summarising in a
significant manner and in terms of money
transaction and events which are at least
of financial character, and interpreting
result thereof.

4. Financial Accounting
Cost Accounting
Management Accounting

5. CLASSIFICATION OF ACCOUNTS
(TRADITIONAL CLASSIFICATION)
PERSONAL
ACCOUNT
NATURAL
REPRESENTATIVE
PERSONALA/C
IMPERSONAL
ACCOUNT
REAL
NOMINAL PERSONAL
A/C

6. Accounting Equations
Assets = Liabilities + Owner’s Equity

7. RULES OF TRADITIONAL CLASSIFICATION
Types of Account Rules for Debit Rules for Credit
For Personal A/c Debit the receiver. Credit the giver.
For Real A/c Debit what comes in. Credit what goes out.
For Nominal A/c Debit all expenses
and losses.
Credit all gains and
incomes.

8. MODERN CLASSIFICATION OF ACCOUNTS
Assets
Account
Liabilities
Account
Capital
Account
Revenue
Account
Expense
Account

9. RULES OF MODERN CLASSIFICATION
Types of Account Accounts to be Debited Accounts to be
Credited
Assets A/c Increase Decrease
Liabilities A/c Decrease Increase
Capital A/c Decrease Increase
Revenue A/c Decrease Increase
Expense A/c Increase Decrease

10. MEANING OF GAAP
GAAP(Generally Accepted Accounting Principle) may be
defined as those rules of action which are derived from
expression and practice. And they proved useful they
become accepted as principles of accounting.
P1: Accounting Entity/ Separate Legal Entity/
Business Entity
P2: Money Measurement Principle
P3: Going Concern Concepts
P4: Dual Principle/ Dual Aspect Principle
P5: Revenue Recognition Principle

11. P1: Accounting Entities/
Separate legal entity/ Business
Entity
According to this principle, a
business is treated as separate
legal entity i.e distinct from its
owners and the accounting
entities.
P2: Money measurement
Principle
According to this principle, only
those transactions which are
capable of being expressed in
terms of money.
P3: Going Concern Concept
P4: Duality Principle/ Dual
Aspect Principle
According to this principle, an
enterprise is normally viewed
as a Going Concern Concept i.e
continuing in operation for a
foreseable future.
According to this concept, it is
based on double entry book-
keeping which means that
accounting system is set up in
such a way that a record is
made of the two aspect of each
transaction.

12. According to this principle, all revenue and costs are
recognised as they are earned an incurred and not
when money is received or paid. This principle is also
known as Accrual Principle.
P5. Revenue Recognition Principle

13. Tally ERP 9 is an accounting software to manage business
program that allows business managers to handle all of their
business transaction from a centralized application from any
location. ERP stands for Enterprise Resource Planning.
What is Tally ERP 9 ?

14. How to create a company ?

15. How to set Masters in Tally?

16. How to set vouchers in Tally?

17. SHORTCUT KEYS BASIC VOUCHERS
o Alt+F1: To close the previous
company.
o Ctrl + A: To directly save.
o Alt+ C : To create the ledger
Account.
o Alt+ A: To add voucher entry
while your analyzing account.
o Alt+ F3: To go to company
info from Gateway of Tally.
o F2: To change date.
o Esc: Backward.
o Enter: Forward.
 Contra Voucher: F4 (cash
transfer)
 Payment Voucher: f5
(outflow cash)
 Receipt Voucher: F6 (inflow
of cash)
 Journal Voucher: F7 (Credit
transaction)

18. EVERY ENDING
IS REALLY JUST
A NEW BEGINNING..