This document provides an overview of accounting concepts and the Tally ERP-9 accounting software. It defines key accounting terms like transactions, accounts, assets, liabilities, capital, and discusses account types. It also summarizes the accounting cycle including recording transactions, classifying accounts, summarizing results, and preparing financial statements. Finally, it outlines the basic features and shortcuts of Tally ERP-9 for creating companies, accounting vouchers, ledgers and setting the accounting period.

1. TALLY ERP -9
BUSINESS – Business is an innovative
human activity directed to exchange
Of wealth by buying & selling of
Goods & Services in order to earn
profit.
Types of Business – (According to
Ownership )
1. SOLE PROPEITORSHIP
2. PARTNERSHIP
3. JOINT-STOCK COMPANY
ACCOUNT -
 Summary of Transaction
 Account is a Statement where
Business transaction are recorded

2. TRANSACTION –
 Each & every activity of business
which can be expressed in terms
of money is call Transaction.
Types of Account –
1. PERSONAL ACCOUNT
2. REAL ACCOUNT
3. NOMINAL ACCOUNT
1.PERSONAL ACCOUNT-
Account related to a Natural Person
& Artificial Person /Organization is
known as Personal account .
Ex- RAM A/C , HARI A/C , SBI A/C ,
GMU A/C
A. NATURAL PERSON –

3. RAM A/C , SHYAM A/C & OTHER
NATURAL PERSON
B. ARTIFICIAL/ORGANIZATIONAL
PERSON
DOEACC A/C , SBI BANK A/C , GMU
A/C , OTHER ARIFICIAL PERSON
REPRESENTATIVE PERSON
PERSONAL ACCOUNT –
Representative person is a natural
person which is appointed to
represent to an organization
artificial person , it takes
responsibilities & bear all the risk
of the organization .
2. REAL ACCOUNT –

4. Account related to PROPERTY or
ASSETS of business are known as
Real account.
EX- Machinery A/c , Land A/c,
Building A/c , Cash A/c , Furniture
A/c , Purchase A/c
3. NOMINAL ACCOUNT –
Account related to Expenses or
Losses & Incomes or Gain are known
as Nominal Account.
1. Expenses & Losses –
 Salary Account
 Wages Account
 Tax Payable Account
 Telephone Bill Account
 Rent Paid Account
 Postage & Stamps Account
 Drawing Account

5.  Stationery Account
2. Incomes & Gain
 Rent received
 Commission received
 Interest received
PETTY CASH –
The Particular amount of money
which transfer from main cash to
as petty cash in advance to meet
daily expenses or un-important
expenses of the business.
ACCOUNTING –
Accounting is an art of Recording ,
Classifying, Summarising,
Annalysis of Results of Operation
to Balance at the end .
 Recording – JOURNAL

6.  Classifying – LEDGER
 Summarising – TRIAL BALANCE
 Annalysis –
 Results of Operation – PROFIT
& LOSS ACCOUNT
 Balance at the end – BALANCE
SHEET
TALLY – TOTAL ACCOUNTING
LEADING LIST YEAR
 It is an accounting application
software which is used for
accounting .
ACCOUNING CONCEPTS :

7. Accounting concepts are certain
assumption on which accounting
are based on .
1. ACCOUNTING ENTITY/ BUSINESS
ENTITY :
Business & proprietor are two
different person . Accounting is
maintain for the business not for
the proprietor .
2. GOING CONCERN CONCEPT :
Business will be going on future
with out any interruption.
3. ACCONTING PERIOD CONCEPT :
Business will be maintain for a
specified period like : 365 days, 6
months, 1months.

8. 4. MONEY MEASUREMENT
CONCEPT:
Transaction which are measure
with money , only those are able
to be recorded in account.
5. ACCURAL CONCEPT :
Anything which is purchased or
sold in credit in the business ,
those are recorded in account as
credit transaction .
6. REVENUE REALIASATION
CONCEPT :
Business is confirm to receive the
money , the transaction is not
recorded in account till, money
has not been realized by the
business.

9. 7. MATCHING CONCEPT :
Revenue will be matched with the
cost.
DOUBLE ENTRY SYSTEM :
DEBIT – DR (RECEIVED)
CREDIT – CR (PAID)
GOLDEN RULE OF ACCOUNTING :
Invent by LUCASS PACCIOLI
(GERMAN) in 1494
World first ACCOUNTING BOOK –
DE-COMPUTIS-ET-SCRIPTURES
1. PERSONAL ACCOUNT :
DR – The Receiver
CR – The Giver
EX- Ram pays Hari R.S 10000

10. DR – Hari A/c 10000
CR- Ram A/c 10000
2. REAL ACCOUNT :
DR – What Comes in
CR- What Goes out
EX – Purchase a Computer of
R.S 30000 by paying Cash
DR- COMPUTER A/c 30000
CR- CASH A/c 30000
Sold old Furniture of R.s 20000
through Cash
DR – Cash A/c 20000
CR- Furniture A/c 20000
3. NOMINAL ACCOUNT :
DR – Expenses or Losses
CR – Income or Gains
EX – Received Commission of
R.S 1500 by Cash

11. DR- Cash A/c 1500
CR- Received Commission A/c
1500
Paid Rent of R.S 7000
through cheque of SBI
DR- Rent A/c 7000
CR- SBI Bank A/c 7000
ACCONTING TERMIOLOGY :
1. ASSETS : Anything which will
enable the firm to get back cash
or benefit .
A. Current Assets : (use with in 1
year)
 Cash in hand
 Cash at Bank

12.  Sundry Debtor
 Bills- Receivable
 Accrued Income ( due ut not
yet paid )
 Stocks
B. Fixed Assets : (use more than
one year )
 Land
 Vehicles
 Machinery
 Furniture
 Computer
2. LIABILITY :
The Amount which is liable to
pay Outsiders .

13. A. Current Liability : (payable with
in a Year)
 Sundry Creditors
 Bills –Payable
 Bank – Overdraft
 Short – Term Loans
 Outstanding Expenses ( due
but not yet paid )
B. Long – Term Liability : (payable
more than one year )
 Mortgage Loans
 Other Loans
3. CAPITAL :
Anything which is invested by
the Proprietor in its Business is
known as CAPITAL.

14. 4. DRAWING :
Anything which is withdrawn by
the proprietor from its business
for PERSONAL USE is known as
Drawing.
5. Sundry Creditors :
Creditors are the Person or
Organization to whom Business
is liable to Pay .
6. Sundry Debtors :
Debtors may be a Person or
Organization whom business has
right to receive something .
7. Direct Expenses :

15. Expenses are Direct related to
before production of the product
.
8. In- Direct Expenses :
Expenses are related to after
production of the product .
BUSINESS :
A. PRODUCTION :
Gross Profit/Loss, Net
Profit/Loss (Direct expenses &
In direct Expenses )
B. TRADING :
Net Profit/Loss
9. STOCK :

16. Finished Goods of the
organization .
Closing stock will be opening stock
in next accounting period.
TALLY SHORT CUT KEYS :
Alt+F3 – To display “COMPANY
INFO “ Screen
Alt+F2 – To set/change Accounting
Period
F2 – To change the Date
F4 – Contra Voucher
F5 – Payment Voucher

17. F6 – Receipt Voucher
F7 – Journal Voucher
F8 – Sale Bill Voucher
F9 – Purchase Bill Voucher
Esc – Cancel the Action
Alt+c – Ledger Creation
 Backspace – Come to back /
change
TALLY – ERP(9.0)
 How to OPEN

18. a. Double click on TALLY
ICON which may be located
in desktop screen .
b. When it opens a welcome
screen showing you TALLY
POWER OF SIMPLICITY .
c. In this Software first you
have to create a company ,
creation will be available in
COMPANY INFO SCREEN .(
Alt + F3 )
d. Every recording & posting
will be done in GATE WAY
TALLY SCREEN .
ACCOUNTING VOUCHER :
1. CONTRA VOUCHER ( F4) :

19. In this voucher we record
transactions related to cash
deposit & withdraw from bank .
2. PAYMENT VOUCHER (F5) :
Payment voucher is a voucher
where cash & cheque Payments
are recorded . In this voucher
Cash& Bank a/c are always shown
in credit side .
3. RECEIPT VOUCHER (F6) :
We record transactions related to
Cash & cheques received by he
Business . In this voucher Cah &
Bank a/c are always shown in
Debit side .
4. JOURNAL VOUCHER (F7) :
All type of Non-Cash transactions
are recorded in journal voucher .
ACCONTING PERIOD (Alt + F2) :

20. Before to start record of
transactions we need to set or
change Accounting Period or
Financial Year . You have to
change the date daily by using F2 .
LEDGER :
CASH & PROFIT LOSS A/C Ledger
are previously available .
1. DIRECT PROCESS to CREATE
LEDGER :
GOT – ACCOUNT INFO – LEDGER –
CREATE
DISPLAY
ALTER
2. SHORT CUT PROCESS ( Alt + c) :
We also create Ledger by direct
use of (Alt + c ) key .

21. Undergroup :
BANK a/c , Capital a/c , Purchase
a/c , SALES a/c under group same
as account name .
COST CENTRE & COST CATEGORY :
ACTIVATE :
GOT-F11-COMPANY FEATURE -
ACCOUNTING FEATURE
STATUTORY FEATURE
MAINTAIN COST CENTRE
(YES)
MAINTAIN COST CATEGORY
(YES)