Tally unit 4

Dr.T.Sivakami
Assistant Professor
Department of Management Studies
Bon Secours College for Women
Thanjavur
Computer Applications in Business

Manual vs Computerized Accounting
The key difference between Manual and Computerized Accounting lies in the fact that manual
accounting is where all the financial transactions are maintained in a register or in an accounting book
and in computerized accounting all the financial transactions are recorded in accounting software.
Manual accounting is slow on the other hand computerized accounting is comparatively faster.
Calculation error might occur in manual accounting but not in computerized accounting.
Manual Accounting
A manual accounting system is a way of maintaining financial records in the form of a written ledger of
transactions. It does not involve using computers and software.
The transactions are recorded in journals.
Accountants or business owners then roll up the information in the journal manually into a set of
financial statements.
Manual accounting systems have been in existence since ancient scribes started recording information
about tribute and temple inventories as well as taxes.
Computerized Accounting
A computerized accounting system is a software that assists business owners in managing
significant financial transactions, reports, data, and statements more accurately and faster.
The software allows business owners to set up income and expense accounts like salaries, sales income,
material costs, and advertising expenses.
Business owners can customize the software to meet their business needs.
Comparison Table Between Manual and Computerized Accounting (in Tabular Form)
Parameter of
Comparison
Manual Accounting Computerized Accounting
Definition It uses books and physical
registers to record financial
data.
It uses a computer with financial
software to collect financial data
electronically.
Documenting Documenting is attainable via
book of original entry
A customized database is used to
record data content.
Calculation One performs all the
calculations by hand.
The computer system carries out the
calculations after one feeds it with
the data.
Accuracy Prone to mistakes The software confirms transactions
making it unlikely to record a
mistake

Parameter of
Comparison
Manual Accounting Computerized Accounting
Financial
Statements
Accountants develop it at the
end of every fiscal year or
quarter.
It is always ready.
Trial balance It is prepared when required It provides a trial balance every day
Speed Slow Relatively faster
Backup It is hard to backup data You can save entries of transactions
and back them up easily.
What Is Manual Accounting?
Before the introduction of the computerized financial system, accountants executed all accounting
processes by hand using paper-based accounting systems like vouchers, journals, and account books to
store and analyze financial transactions.
Some small organizations and businesses still use this method.
A manual system is more cost-effective because it is not necessary to buy computers and software
or train employees.
A manual system can also be more secure because it is not required to use the internet to transfer data to
the IRS or accountants.
The manual accounting system has no inconvenience since it can work even when there is no electricity,
unlike a computer system setup.
However, human errors such as figure transposition, omitting a transaction, and so forth, can
occur while using the manual accounting system.
In manual accounting, you need a strategy for correcting errors efficiently.
You can use a calculator tape on each page of the general ledger and journal to make sure the totals are
correct.
Manual accounting records transactions in journals and physical records
What is Computerized Accounting?
A computerized accounting system comprises of computer systems and software.
The software is designed to track the company’s accounting transactions, intending to produce
monthly financial reports, tax return information, annual financial statements, and other
financial report configurations that analyze a company’s efficiency, profitability, and operations.
The two primary essentials include:
1. Operating procedure: A proper method of operating the system to store and process the data.
2. Accounting framework: It consists of grouping structure and principles for records maintenance.
Companies with computerized accounting software can customize the software to accommodate
business entities in different areas, multiple currencies, and their branches that sell various products.
The benefits of computerized accounting include minimum mistakes, better efficiency, lower operating
expenses, and better quality work.
Computerized accounting used advanced software to record transactional data
Main Differences Between Manual Accounting And Computerized Accounting
Speed

Computerized accounting systems are much faster than manual accounting systems.
The time required to enter data may almost be the same for both systems.
However, a computerized system helps users when tallying the results.
Computers generate reports quickly, and you can change parameters just by clicking and choosing
options instead of adding whole columns of numbers.
Computerized systems are susceptible to glitches and bugs that can slow you down.
Even though manual systems generate data more slowly, you can easily predict how long it will take to
perform different functions when using a manual system.
Reliability
To access the data in computerized systems, the computer’s hardware should be reliable.
If the system freezes or crashes, accessing the records may be impossible.
You can mitigate this risk by updating your software and maintaining your computers well.
However, you never know when your system can be back up and running.
Manual accounting takes place in ledgers that are always available to view and use.
Nonetheless, it is possible to damage or misplace physical records.
You may photocopy manual records to back up the data, but the procedure of backing up digital files is
much easier.
Simplicity
Business owners or accountants do all the calculations in a manual accounting system.
They add and subtract the transactions manually. However, in computerized accounting, the software
does the calculations automatically.
1. In manual accounting, you identify transactions annually. Computerized accounting systems
identify the transactions automatically.
2. In the manual accounting system, one needs to record the balances of accounts manually in the
ledger; thus, the trial balance is prepared manually. A computerized accounting system produces
the trial balance automatically.
3. In manual accounting, you prepare a trial balance when required, but in computerized
accounting, the trial balance is available upon request.
Features of Tally
The features of Tally are as follows:
o Tally is largely considered the best because it is easy to use, has no codes, robust and powerful,
executes in real-time, operates at high speed, and has full-proof online help.
o Tally is also called multi-lingual tally software because Tally ERP 9 supports multi-languages.
In Tally, accounts can be maintained in one language, and reports can be viewed in other
languages.
o Using the Tally, you can create and maintain the accounts up to 99,999 companies.
o Using the feature of payroll, you can automate the employee records management.
o Tally has the synchronization feature, so the transaction which is maintained in multiple
locations offices can be updated automatically.
o Tally is used to generate consolidated financial statements as per the requirements of the
company.
o Tally can manage single or multiple groups.
o Tally software is used to handle financial and inventory management, invoicing, sales and
purchase management, reporting, and MIS.
o The feature of Tally customization makes the software suitable for distinctive business functions.
Advantages of Tally
The advantages of Tally are as follows:

Data reliability and security: In Tally, the entered data is reliable and secure. There is no scope of
entering the data, after being entered into the software.
Payroll management: Several calculations that need to be made while disbursing salary to employees.
Tally is used to maintain the financial record of the company that includes net deduction, net payment,
bonuses, and taxes.
Management in the banking sector: Banks use Tally to manage various user accounts, and also
calculate interests on deposits. Tally support ensures ease in the calculation and makes banking
simpler. Tally Support can make the calculation easy and banking simpler.
Regulation of data across geographical locations: Tally software is used to manage the data of an
organization globally. Tally can bring together all branches of the company and makes the common
calculation for it at large. So no matter which location a company's employee has access, it will be
uniform throughout.
Ease of maintaining a budget: Tally is used to maintain the budget. Tally is used to help the
companies to work and manage expenses by keeping in mind the total budget which is being allotted.
Simple tax returns filing: Tax GST is used to ensure that the company complies with all GST norms.
Tax GST takes care of service tax returns, excise tax, VAT filing, TDS return, and profit and loss
statement for all small businesses.
Audit tool for compliance: It acts as an audit tool. It is used to carry out regular audits of companies. It
does a thorough compliance check towards the financial year beginning and ensures that all the
monetary transactions are smoothly being carried out.
Remote Access of Data: In Tally, employees can access the financial data using the unique User ID and
password. The logging and access of data can be done by sitting at the comforts of one's office or house.
Quick Access to Documents: Tally can save all invoices, receipts, bills, vouchers in its archive folder.
Using the Tally, we can quickly access any of the previously stored documents. We can immediately
retrieve all the billing related files.
Screen Components in Tally
When we start the Tally ERP 9 application, the welcome home screen of Tally will display on the screen
during the Tally software loading on the computer system as follows:
After Tally software loading, the startup screen of Tally ERP 9 displays on the screen as follows:

The following components are contained by the home screen of Tally ERP 9:
1. Title Bar
2. Horizontal Button Bar
3. Close Button
4. Gateway of Tally
5. Buttons Toolbar
6. Calculator area
7. Info Panel
8. Data and Time

Tally Screen Components
Title Bar: This is used to display the Tally software that we are using.
Horizontal Button Bar: It helps to choose Keyboard settings, support centre, Language, Control centre,
and Help.
Close Button: Click on this close button or use ctrl+m to close the Tally window.
Task Bar: It is used to display the task of Tally ERP 9.
Gateway of Tally: It is used to display the menu, screen, reports.
Info Panel: Information panel is used to display the license details, configuration details, and tally
version.
Calculation Area: It is used for calculation functions.
Buttons Tool Bar: It is used to display the buttons that enable for immediate interaction with Tally. It
can display only the buttons that are applicable to the current task.
Date and Time: It is used to display the current date and time.

How to create Group in Tally
Maintain the following Sundry Debtors Ledgers Accounts in Tally.ERP 9
 Main Groups: South India Debtors Group and North India Debtors Group under Sundry
Debtors
 Sub-Groups: Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India
Debtors
 ABC limited & Tech solutions grouped under North India Debtors.
Step 1: Go to Gateway of Tally and click on accounts Info
Step 2: Under Accounts info, choose the option Groups.

Step 3: Under Single Group menu, choose the option create to create single group in Tally ERP 9
Step 4: On Group creation screen, update the following details.
 Name: Enter the name of group and press enter to continue

 Under: Choose the group name from list of groups as Sundry debtors (You can move to group
name pressing upper or lower key).
After entering the required details, press enter or Ctrl+A / A:Accept to save the details.
Note: After creation of new group in Tally, created group displays under the list of groups.
Also create other groups using above procedure
 South-India-debtors under Sundry Debtors
 Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India Debtors
 ABC limited and Tech Solutions under Bangalore Debtors.

Tally.ERP 9 allows to create any number of groups under all default groups. Here we have created two
groups under Sundry Debtors i.e. South India Debtors and North India Debtors. And three sub-groups
(Bangalore debtors, Vijayawada debtors and Hyderabad Debtors) created under South India Debtors.
How to Display a Group in Tally
After groups are created in Tally ERP 9, you can display all the created groups with details. However in
display mode, users are not allowed to edit/ alter the data.
Step 1: Path: Gateway of Tally > Accounts Info > Groups.
Step 2: Click on the option display under single group to displays groups in Tally.
Step 3: Under list of groups names, choose the required group name and click on that particular group to
display on the screen.

Now the ledger (Bangalore Debtors) display on the screen as
Click on Q: Quit to close the screen.
How to Alter Group in Tally ERP 9

After groups are created in Tally.ERP 9 application, the details can be alter as per the requirements. To
modify/ alter group in tally, refer below steps:
Step 1: Goto Gateway of Tally -> Accounts Info –> Groups.
Step 2: Under single group, click on alter option.
Step 3: You can search the group from the given search field and click on that group name to modify the
details.

Step 4: On Group Alteration screen, update the required details and click A: Accept to save the details.
Now learn how to create ledgers for ABC li
How to Create Company in Tally – Setting up of Company in Tally ERP 9
In this Tally ERP 9 tutorial, you will learn how to create company in Tally step by step simple methods.
The first step to get started in Tally ERP 9 is to create a company. The creation of company in Tally
involves basic information about company, books and currency details.
How to create company in Tally ERP 9
Step 1: After login to Tally, double click on the option create company under company information. To
create company in Tally, follow the following navigation path Gateway of Tally > Company Info >
Create company

Step 2: The
company creation window displays on the screen as show below image
Note: Use the enter key or Tab key or Arrow key or Mouse to navigation between the fields in Tally.

Step 3: On company creation screen, update the following details
1. Directory: It is a path where the company date will be stored on system. By default, the tally
directory will updated as C:UsersPublicTally.ERP9Data and you can change the path as per
your requirements.
2. Name: Update the name of company that identifies in Tally ERP 9.
Primary Mailing Details
1. Mailing Name:The mailing name of company will be automatically updated as per the given
name of company, however the mailing name can be changed as per the requirements.
2. Address: Update the complete address details of company
3. Statutory Compliance for: Choose the country name as India from the given list of countries.
4. State: Choose the state from the given list of states.
5. Pin Code: Update the Pin Code of company, where it is located.
Contact Details
1. Telephone No: Update Company landline/ Telephone number
2. E-Mail: Update the company e-mail id
3. Mobile No: Mobile number for contacting
4. Fax no: Update the Fax number
5. Website: Update the official website address of company
Books and Financial Year Details
1. Financial Year From: Update the financial year starting date, all Indian companies financial
year start from 1st April and ends on 31st March. Tally considers the 12 months from the date
given for financial year. The financial year will be automatically displayed on Tally system, if
FY starts in middle of year, you can specify the exact date from here.
2. Books Beginning from: Specify the books beginning date.
Security Control
1. Tally Vault Password: By enabling Tally vault password, the company data is secured in an
encrypted form. The data is not accessible without the password, if you lost the password that
will be not recovered.
2. Use Security Control: Enabling securing control helps only authorized users are allowed to
enter/edit/delete the vouchers on Tally.
Base Currency Information
1. Base Currency Symbol:
2. Formal Name: INR (India Rupees
3. Suffix Symbol to Amount: No
4. Add spaces between the amount and symbol: Yes
5. Show amount in Millions: Yes
6. Number of decimal Places: 2
7. Word representing amount after decimal: Paisa
8. No of decimal places for amount in words: 2

After updating all the required details of company, choose Yes to save the entered details in Tally.
How to Alter/ Delete / Shut Company in Tally
In this Tally ERP 9 tutorials, you will learn how to alter company, delate company and shut company in
Tally software.
How to Alter Company in Tally
After creation of company in tally, the given company information can be alter/ modify/ change as per
requirements.
Step 1: To Alter company in Tally: Gateway of Tally >> Press Alt+F3 > Alter

Step 2: Under list of companies, choose the company name (Tutorial Kart) and click on name of
company to alter.
Step 3: On company alteration screen, add and modify the required details and use Ctrl+ A options to
save the details. Here we have added contact details of phone number.

How to delete company in Tally ERP 9
If you delate company in Tally, it removes the complete information of company from Hard drive, all
the files and directories that are associated with company will be deleted permanently and it can not be
reversed.
To delete company in Tally ERP 9: Gateway of Tally > Alt+F3 > Alter > Alt+D.
Step 1: After using Alt+F3 keys, the company information screen displays on the screen. Here the delete
option will be not available. Click on alter option.

Now selection company and click Alt+D and click on YES option to delete the company in Tally ERP
9.

How to shut company in Tally ERP 9
Shut a company in tally does not mean that delete a company, it means close. After you work with
company, press Alt+F1 if you choose more than one company or choose Quit button to close the present
company.

Groups in Tally
What are groups in Tally
Group is a collection of ledgers of the same natures. Tally software automatically create 28 groups
which are used in the chart of account. Out of 28 predefined groups in tally, 15 groups are primary
groups and 13 groups are Sub-groups. The different types of groups are
1. Primary Groups
2. Sub Groups
Example of Group
Primary Groups: Primary Group in Tally is main group, Groups are structured as hierarchical
organization. At the top of hierarchy are primary groups. Among 15 primary groups, 9 groups are
balance sheets items and 6 groups are profit and loss a/c items.
List of Primary Groups in Tally
1. Branch/ Divisions 6. Indirect Income 11. Current Assets
2. Capital Accounts
7. Suspense
Account 12. Direct Incomes
3. Sales Accounts
8. Current
Liabilities 13. Fixed Assets
4. Loans
(Liabilities)
9. Misc. Expenses
(Asset_ 14. Direct Expenses
5. Indirect Expenses
10. Purchase
Accounts 15. Investments
Sub Groups: Sub groups are part of primary group, sub groups can be divided into 13 groups.
List of Sub groups in Tally
1. Sundry Creditors 6. Duties & Taxes 11. Bank Accounts
2. Secured Loans 7. Deposits (Assets)
12. Reserves &
Surplus
3. Stock in Hand
8. Bank OD
Accounts
13. Loan &
Advances (Assets)
4. Provisions 9. Unsecured Loans

5. Cash in Hand 10. Sundry Debtors
Tally ERP 9 follows the single ledger concept of accounting and this leads to direct contrast to
subsidiary ledger accounting. So all financial entries are performed using ledgers or account heads. You
can group all ledgers and financial statements can be drawn according to requirements of company.
Important tutorials related to groups
1. How to create a group
2. How to create single group
3. How to primary group
4. How to delete group
5. How to create multiple groups
How to Create Group in Tally and How to Alter & Display
In this Tally Tutorial, we shall learn how to create group in Tally ERP 9 and how to alter and display
created groups.
If you are creating groups in Tally for the first time, it is recommended to enable
 Provide advanced information in masters
 Allow advanced entries in masters
Path: Gate way of Tally –> F12: Configure –> Accts / Inventory Info –> Accounts
How to create Group in Tally
Maintain the following Sundry Debtors Ledgers Accounts in Tally.ERP 9
 Main Groups: South India Debtors Group and North India Debtors Group under Sundry
Debtors
 Sub-Groups: Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India
Debtors
 ABC limited & Tech solutions grouped under North India Debtors.
Step 1: Go to Gateway of Tally and click on accounts Info

Step 2: Under Accounts info, choose the option Groups.
Step 3: Under Single Group menu, choose the option create to create single group in Tally ERP 9

Step 4: On Group creation screen, update the following details.
 Name: Enter the name of group and press enter to continue
 Under: Choose the group name from list of groups as Sundry debtors (You can move to group
name pressing upper or lower key).
After entering the required details, press enter or Ctrl+A / A:Accept to save the details.
Note: After creation of new group in Tally, created group displays under the list of groups.
Also create other groups using above procedure
 South-India-debtors under Sundry Debtors
 Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India Debtors
 ABC limited and Tech Solutions under Bangalore Debtors.

Now the ledger (Bangalore Debtors) display on the screen as
Click on Q: Quit to close the screen.

How to Alter Group in Tally ERP 9
After groups are created in Tally.ERP 9 application, the details can be alter as per the requirements. To
modify/ alter group in tally, refer below steps:
Step 1: Goto Gateway of Tally -> Accounts Info –> Groups.
Step 2: Under single group, click on alter option.
Step 3: You can search the group from the given search field and click on that group name to modify the
details.

Step 4: On Group Alteration screen, update the required details and click A: Accept to save the details.
How to Create Single Ledger in Tally
Create Single Ledger in Tally.ERP 9
In this Tally tutorial, we shall learn how to create single ledger in Tally step by step.
Note: In this lesson, we are going to create ledger Axis Bank Account under Bank Account.
The date that required for ledger depends upon the features opted by us. If the settings of accounting
features (F11) of company were “NO” for all options, than the ledger screen provides with minimal
information.
Tally.ERP 9 automatically creates two ledger accounts i.e. Cash in Hand and Profit & Loss Account.
We can create the ledger accounts as per requirements of an organization. We can not create another
profit & loss account in tally, and we can create any number of cash accounts with different names
(Petty Cash).
How to create ledger account in Tally ERP 9
Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Create
Step 1: From Gateway of Tally Screen, click on accounts info

Step 2: In the next screen, choose “Ledger”
Step 3: In the next ledger screen, choose the option create under single ledger

Step 4: On ledger creation screen, update the following details
 Name: Enter the name of ledger account, and the name should be unique.
 Under: Choose the group name from list of group, that pertains to ledger account.

After maintaining all the required details, choose Yes option under Accept to save the configured details
in Tally.ERP 9.
How to display single ledger in Tally
After creation of single ledger account in Tally, you view the details of ledger by choosing the option
display. Refer below steps how to display single ledger
Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Display

Choose the ledger account from list of ledgers
Now the complete details of ledger account display in the screen as shown below image.
How to Alter Single ledger in Tally

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Alter
On select ledger screen, choose the ledger account from the list of ledgers
Now modify/ alter the required details for ledger account and click on A:Accept to save the changed
details in Tally ERP 9.

How to Create Ledgers in Tally (Multiple Ledgers)
Create ledgers in Tally
In this Tally tutorials, we shall learn how to create ledgers (multiple ledgers) in Tally.ERP 9.
After creation of groups, you can create ledgers under groups in Tally.
Step 1: Goto Gateway of Tally and Choose Accounts Info.

Step 2: Under account info, choose the option Ledgers
Step 3: Click on create under multiple ledgers option to create multi ledgers in Tally

Step 4: On multi ledger creation screen, enter the following details
Under Group: Choose the Bangalore Debtors under the list of groups, however you can search group
by entering the group name in the given under group text field.
Step 5: Under Group: Bangalore Debtors screen, update the following details.
1. Name of Ledgers: Enter the name of ledger that you like to create in Tally

2. Under: The under group field will be automatically filled by Tally as Bangalore Debtors ( As we
are creating ledgers under Bangalore Debtors).
3. After entering the details, press enter to continue. You will get messages as Accept: Yes or No,
choose Yes to accept the updated details in Tally.ERP 9.
Successfully we have created multiple ledgers in Tally ERP 9.
How to display Multiple Ledgers in Tally.ERP 9
After ledgers are created in Tally application, we can check multiple ledger by choosing the display
option.
Path : Gateway of Tally –> Accounts Info –> Ledgers –> Multiple Ledgers (Display).
On select group screen, choose the group name “Bangalore Debtors” from the list of groups.

Now the multi ledger screen displays as shown below.
Note: In this display mode, users are not allowed to modify any changes. For this user are required to
choose the alter option.
How to change/ alter multi ledgers in Tally ERP 9
The path for alter multiple ledger is same as create and display. Through this alter mode, you can
change the details as per the requirements.
Path: Gateway of Tally –> Accounts Info –> Ledgers –> Multiple Ledgers –> Choose Alter

From the list of the groups, choose the required group name for alteration.
On multi ledger alteration screen, you can update the following details
 Add or delete the ledgers
 Opening Balance – Dr/Cr

Press enter and Accept the details to save in Tally.
❮ PreviousNext ❯
Introduction to Voucher Entry in Tally.ERP 9
A voucher is a document that contains details of a financial transaction and is required for recording
the same into the books of accounts. For every transaction, you can use the appropriate Tally voucher
to enter the details into the ledgers and update the financial position of the company.
Accounting vouchers in Tally.ERP 9
Sales Voucher in Tally
The Sales Voucher is most widely used by the users of Tally.ERP9, it is a type of accounting voucher.
Depending on the nature of your business, it can be created in the Invoice mode or Voucher mode. In
the Invoice mode, you can print and provide a copy of the invoice to your customers. The Voucher
mode can be used when you want to basically record transactions for statutory purpose only, and when
you don’t necessarily have the need to print and share the information with your customer. Tally.ERP 9
gives you the flexibility to address different needs.
Purchase Voucher in Tally
The Purchase Voucher too can be recorded either in the Voucher or Invoice mode based on the nature of
business operations. It comes under accounting vouchers in Tally.ERP 9.

Suppose you change your mind and decide to change the mode when entering details of a purchase
transaction? What if you have entered all the details and decide to change the mode in the last second?
TallyERP 9 helps you to convert a voucher into an invoice, or vice versa, without expecting you to re-
enter the details. It auto adjusts to your preference. Just use the Toggle button.
You can add more details by enabling options. Press F12 to do so.
Payment Voucher in Tally
The Payment Voucher in Tally.ERP 9 lets you provide all types of details when creating it. While
making payment to a party you can provide details such as the instrument number, and even print the
cheque. As soon as you pass a Payment Voucher, you can print the corresponding cheque. To see the list
of cheques which need to be printed, go to Banking and click on Cheque Printing.
Tally.ERP 9 supports over 500 banks from both India and abroad. After making the payment, you can
generate a Payment Advice in Tally.ERP 9 and share it with your supplier as it will update him with the
details of all your payments.
Receipt Voucher in Tally
When you create a Receipt Voucher, Tally.ERP 9 prompts you to take a look at all the pending invoices
for which payments are yet to be received. As and when your customer makes a payment, you can
record details such as against which invoice the payment is made; whether you received the payment by
cash, cheque or via NEFT/RTGS; and what the instrument numbers are. You can even email this
information to your customer. This way, you will never lose track of the payments.
Contra Voucher
Contra Vouchers are generally used by businesses to withdraw cash from banks or to deposit cash in
banks. With Tally.ERP 9 you can also generate a cash deposit slip. Tally.ERP 9 also provides the
denomination of notes to let you track and take a print of the same at the time of depositing money.
Journal Voucher
The Journal Voucher is used by businesses for multiple purposes, based on their business types. Some
accountants use them for purchases and sales as well. Both accounting and inventory Journal Vouchers
are available in Tally.ERP 9. The Inventory Journal Vouchers can be used to adjust inventory or for
movement of inventory from one godown to another.
1.Payment Voucher
The voucher entry menus options are available under Transactions in the Gateway of Tally .
The Payroll and Order Vouchers are available as separate options which can be enabled based on
the requirements.
The Payroll Vouchers can be enabled from F1: Accounting Features , whereas the Order
Vouchers can be activated from F2: Inventory Features .
Payment voucher is used to record all bank and cash payments. For example, a company settles a
creditor's bill by cheque.
● Go to Gateway of Tally > Accounting Vouchers > F5: Payment .
Payment voucher can be passed using Single Entry or Double Entry mode by configuring the
setting Use Single Entry mode for Pymt/Rcpt/Contra in F12: Configure .
For example : The company settles expenses of Conveyance, Staff Welfare, Postage and Stationery
through Cash in one voucher. This entry can be passed in single entry mode where you will be
crediting the Cash Ledger only once and the entry appears as shown below:

Note: Similarly the transactions can be recorded in single-entry mode even in Receipt and Contra
vouchers.
Payment in Voucher entry mode
When you have multiple debits and credits in an entry, double entry mode is the suggested way of
passing the entry.
2.Recording a Receipt Entry
Any money received from debtors against sales Invoices or on Account and for all transactions
where money is received are accounted or entered into Tally.ERP 9 using the Receipt Voucher.
● Go to Gateway of Tally > Accounting Vouchers.

● Select F6: Receipt from the button bar or press F6.
For example, if your company receives money from a customer for an earlier transaction say sales,
and the same is passed through a Receipt Voucher:
● Credit the customer account and debit the Cash account, if you receive cash or
● Debit the Bank account where you need to deposit the money, if you receive Cheques.
The entry in double-entry mode is displayed as shown:
Note : If you want to set a default account for all your receipt vouchers, you can create a voucher type
with the option Enable default accounting allocation? set to Yes , and record your receipts. In
this case, the receipt vouchers appear in the single entry mode.
Special Keys for Voucher Narration Field
● ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of
the voucher type.
● CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.
Receipt Entry Using Bank
1. Go to Gateway of Tally > Accounting Vouchers > F6: Receipt.
2. In F12: Configure set the option Use Single Entry mode for Pymt/Rcpt/Contra to Yes. The
Bank Allocations screen appears as shown below:

3. In the ReceivedFrom field, the party name as defined in the ledger master appears by default .
This can be changed as the convenience of the user.
4. Select Inter Bank Transfer as the Transaction Type .
5. Specify the Inst.No , Bank , Branch and the Transfer Mode .
Note: the option Transfer Mode will appear only if the option Show Transfer Mode is set
to Yes in F11: Accounting Features > Edit banking features
The completed Bank Allocations screen appears as shown below:
Other Transaction Types
1. Go to Gateway of Tally > F11: Features > Set/ Alter Transaction Types to Yes .

2. You can set the option to Yes for any transaction type. The bank allocation screen after selecting
the various transaction types appears as shown below:
Note: When recording a receipt voucher using bank for two parties, in the bank allocation screen, the
default of both the parties will be captured on setting the option Set ledger-wise bank
allocations in voucher creation to Yes .
3.Create Purchase Vouchers
While recording a purchase transaction, if you want to allocate cost centers, then record the
transaction in voucher mode else enter the transaction in item invoice mode.
1. Go to Gateway of Tally > Accounting Vouchers .
2. In the Voucher Creation screen select F9: Purchase .

3. Select As Invoice .
4. Enter the current date and reference.
5. Select the Party to be credited from the List of Ledger Accounts in Party’s A/c name .
6. Select the required Purchase Ledger from the List of Ledger Accounts .
7. Select an item from the Stock Items List of Items. On selecting the Item, an Item Allocations
sub screen for the selected Item is displayed as shown.
8. Select the Godown and specify the quantity to be allocated under the Quantity field.
9. Enter the Quantity and Rate , and the amount is automatically displayed in the Amount field.
10. Select another Godown and follow the similar procedure for Item allocation.
11. Enter Narration if required and accept to save
Note: The value of purchases entered will be displayed in the column Inwards of the Job Work
Analysis report.
The completed Accounting Voucher screen appears as shown below:

12. Enter Narration , if required.
13. Press Enter to save the transaction.
Sales Voucher in Tally ERP9
It is a type of accounting voucher in Tally, you can record all transactions related to sales
(Local and interstate sales) either in invoice mode or voucher mode, based on the nature
of the transaction and you can print the invoice and provide the invoice copy to the your
customer by using the sales accounting voucher (F8) in Tally.ERP9.
Creating of Sales Ledgers for GST in Tally.ERP9
Create sales ledgers percentage wise like, sales@18%, sales@5%, sales@12%,
sales@28%, interstate sales@18%, exempt sales and nil rated sales for the easy
understanding purpose.
Ledgers Creation in Tally ERP9
Path: Gateway of Tally -> Accounting Info -> Ledgers-> Create

Ledger Name: Sales@18%
Under: Sales Accounts
Is GST Applicable: Applicable
Set/alter GST details: Yes, once enable this feature then the below screen will appear
Press Enter to save the screen

Nature of transaction: Sales Taxable
Taxability: Taxable
Tax Rate: Enter GST tax rate example, 18%
Press enter
Ledger Name: Rajesh & Co

Under: Sundry Debtors
Maintain balances bill-by-bill: Yes
Registration type: Regular
GSTIN/UIN: Enter customer GSTIN number
Press enter

How to Record GST Sales Transactions in Tally ERP9
Path: Gateway of Tally -> Accounting vouchers -> F8 Sales
Example: Sale of 4 Dell computers to Rajesh & Co each @55,000 with GST@18%
(CGST@9% and SGST@9%)
Invoice Reference no:432
Date: Enter invoice date (02.08.2017)
Select the sale ledger
Select the name of item
Select the CGST and SGST tax ledgers
During the sales voucher click on Tax Analysis to view the tax details
Click on F1 detailed

Journal Voucher in Tally ERP9
You will not record all kind of transactions by using the journal voucher, in this voucher
you can record adjustment entries, provisional entries and tax adjustment entries except
cash and bank transactions.
However, by activating the below option you can able to post cash or bank transactions
in Tally erp9 by using the journal voucher.

Along with Journal voucher type, Tally has provided different voucher types like payment
voucher (F5), receipt voucher (F6), sales voucher (F8), purchase voucher (F9) and contra
voucher (F4).
You can post many accounting entries by using journal voucher in Tally erp9.
The following transactions are examples for journal voucher.
Outstanding expenses entries
Telephone expenses a/c Dr 600
To Telephone exp payable a/c 600
Stationary expenses a/c Dr 500
To Vendor 500

Prepaid expenses entry
Insurance a/c Dr 6000
Prepaid insurance a/c Dr 6000
To Vendor a/c 12000
Insurance premium paid for the period of July 2017 to June 2018 so, you have to split for
current year portion. Example insurance paid for 12 months is Rs.12000 and portion of the
current year is Rs.6000.
Accrued income entry
Accrued Rent a/c 6000
To Rent a/c 6000
Purchase of fixed asset on credit entry
Furniture a/c Dr 10000
To Vendor a/c 10000
Depreciation entry
Depreciation a/c Dr 8000
To Furniture a/c 5000
To Plant & Machinery a/c 3000
Tax provision entry
Provision for income tax Dr 7000
To TDS 5000
To Advance tax 2000

Salary provision entry
Salaries a/c Dr 12000
Salaries payable a/c 12000
How to record entries in journal voucher in Tally ERP9
Path: Gateway of Tally -> Accounting vouchers -> Journal F7
Example for journal entry
Depreciation A/c Dr 12000
To Furniture 12000

Introduction to Contra Voucher
As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between
one Cash A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction indicating transfer
of funds from:
● Cash account to Cash account
● Cash account to Bank account
● Bank account to Cash account
● Bank account to Bank account
To view the Contra Voucher Entry Screen,
● Go to Gateway of Tally > Accounting Vouchers
● Select F4: Contra from the Button Bar or press F4
Recording Contra Entry in Single Entry Mode
The Contra Voucher can be recorded using Single entry mode or Double Entry mode . To toggle
between Single Entry and Double Entry mode, we need to change the setting Use Single Entry
mode for Pymt/Rcpt/Contra to Yes/No in F12: Configure .
Refer to F12: Configuration in Tally.ERP 9 for more details.
To view Contra Voucher creation screen in Single Entry mode,
1. Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra
2. For example, to transfer funds from Cash Account to Bank Account:
● Debit the Bank Account.
● Credit the Cash Account.
The entry will be displayed as shown:
3. In the Bank Allocation screen, users can select the mode of transaction from the List of
Transaction Type as shown:

4. When Cash is selected as a Transaction Type , you can specify the cash denominations for the
transaction in the voucher entry screen, if the option Show Cash Denomination Details set
to Yes in F12: Configuration (By default, this option is enabled)

5. During Bank Allocation, a new screen – Cash Denominations will appear for Cash Transaction
Type.
The cash denominations entered here will be captured in the Cash Denomination details while
printing a Cash Deposit Slip for this transaction.
Note: Cash denomination of 2000 is supported from Release 5.4.8.
The Difference field will give the difference between the total and the sum of amounts specified for
the Denominations.
Advantages of Single Entry Mode
● Faster data entry.
● When there is a Single Debit and Multiple Credits in the entry.
Recording Contra Entry in Double Entry Mode
The Contra voucher can be recorded using Double Entry mode where we have the option to select
multiple Debits and multiple Credits. To select multiple Debit and Credit ledgers in the Double entry
mode, set Use Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.
Refer to F12: Configuration in Tally.ERP 9 for more details.
To enter in Double Entry Mode,
● Go to Gateway of Tally > Accounting Vouchers.
● Select F4: Contra from the Button Bar or press F4 .
If you record the same entry (passed in single entry mode) in Double Entry Mode, it will be
displayed as shown:

Similar to the Contra entry in Single Entry Mode,
In the Bank Allocation screen, users can select the mode of transaction from the List of Transaction
Type as shown:
By default, Cheque/DD will be selected.
When Cash is selected as the Transaction Type, a new screen – Cash Denominations.

The cash denominations entered here will be captured in the Cash Denomination details while
printing a Cash Deposit Slip for this transaction.
Note: Cash denomination of 2000 is supported from Release 5.4.8.
The Difference field will give the difference between the total and the sum of amounts specified for
the Denominations.
Note: If the cash is transferred to more than one bank, then for each bank a separate Cash
Denominations screen will appear.

5.1 Accounting Vouchers
Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform a
different job. The standard Accounting Vouchers are:
 Contra Voucher(F4)
 PaymentVoucher(F5)
 ReceiptVoucher(F6)
 Journal Voucher(F7)
 SalesVoucher/Invoice(F8)
 Purchase Voucher(F9)

.
5.1.1 Contra Voucher(F4)
For example: withdrawing money from the bank for petty cash.
Contra Voucher
Description Records funds transfer between cash and
bank accounts
Voucher Entry Account Amount Amount
State Bank of India
(Bank Accounts)
Credit
Petty Cash
(Cash-in-hand)
Debit
Use a Contra Voucher to record the entry.
Setup :
In Voucherentry mode,press F12: Contra Configurationand setthe followingto Yes:
 Skipthe Date fieldinCreate Mode (faster entry!)
 Use Cr/Dr insteadof To/By duringentry
 Warnon Negative Cash Balance
 ShowLedgerCurrent Balances
 ShowBalancesas on Voucher Date

Go to the Gateway of Tally > Accounting Vouchers > F4: Contra.
Figure 5.1 Contra Voucher
 Press Y or Enter to accept the screen.
5.1.2 Payment Voucher(F5)
For example, a company settles a creditor's bill by cheque.
Payment Voucher
Description Records all bank and cash payments
Ledger account paid
Kaltronic Ltd.
(Sundry Creditors)
Debit

Bank or cash account
State Bank of India
(Bank Account)
Credit
Use a Payment Voucher to record the entry.
Go to the Gatewayof Tally > Accounting Vouchers> F5: Payment.
Figure 5.2 Payment Voucher
Payment in Single Entry Mode
In Voucherentry mode,use F12: Payment Configuration andset Use Single Entry mode for
Pymt/Rcpt/Contra to Yes.
Payment Voucher
Description Records all bank and cash payments

Ledger account paid
Conveyance
Postage
(Indirect Expenses)
Debit
Petty Cash
(Bank Account)
Credit
The entry made in the single entry mode appears as shown below:
Figure 5.3 Payment Voucher with Single Entry Mode
The advantage of a single entry mode is that you can select multiple debits or credits depending
on the type of entry. Similarly the transactions can be recorded in single entry mode even in
Receipt and Contra vouchers.
Warn on Negative Cash Balance
Tally.ERP 9 displays a warning if the cash balance is NIL when Warn on Negative Cash Balance
is set to Yes in the F12: Payment Configuration. For example, a cash ledger account has no

balance. A payment of Rs. 4,500 towards Telephone expenses is to be made. In the process of
making the payment, Tally.ERP 9 displays a warning at the time of accepting the entry.
The entry made appears as shown below:
Figure 5.4 Payment Voucher with Warning on Negative Cash
In addition to the warning, Tally.ERP 9 also displays the negative balance amount in Red.
5.1.3 ReceiptVoucher(F6)
For example, the company receives a bank advice that the interest has been credited to its
deposit account.
Receipt Voucher
Description Records all receipts into bank or cash accounts
Ledger account receiving Bank
Interest
(Indirect Incomes)
Credit

Deposit Account
Debit
Use a Receipt Voucher to record the entry.
Ensure in F12: Payment Configuration, Use Single Entry mode for Pymt/Rcpt/Contra issetto No.
Go to the Gatewayof Tally > Accounting Vouchers> F6: Receipt.The entry
made appearsas shownbelow:
Figure 5.5 Receipt Voucher
5.1.4 Journal Voucher(F7)
For example, the company has entered some expenditure on advertising as general office costs,
rather than recording the transaction in the separate ledger for advertising.
Journal Voucher
Description Records adjustments between ledger accounts

Advertising
(Indirect Expenses)
Debit
Office Costs
(Indirect Expenses)
Credit
Use the Journal Voucher to adjust the two accounts.
Go to the Gatewayof Tally > Accounting Vouchers> F7: Journal.The entry
Figure 5.6 Journal Voucher
5.1.5 Sales Voucher(F8)
For example, a company sells software on credit.
Sales Voucher
Description Records all sales

Buyer’s ledger account
Milton & Co.
(Sundry Debtors)
Debit
Sales Accounts
(Local Sales) Credit
Use a Sales Voucher for making this entry.
Go to the Gatewayof Tally > Accounting Vouchers> F8: Sales.The entry
Figure 5.7 Sales Voucher
5.1.6 Purchase Voucher(F9)
A company buys computer parts on credit.
Purchase Voucher
Description Records all purchases

Supplier’s ledger account
Beltron Ltd
(Sundry Creditor)
Credit
Purchase Accounts
(Local Purchases) Debit
Use a Purchase Voucher to record this entry.
Go to the Gatewayof Tally > Accounting Vouchers> F9: Purchase.The entry
Figure 5.9 Purchase Voucher

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