Methods of Accounting

Single Entry System

The Single entry system is an incomplete method of book-keeping. Under the system the cash book and personal ledgers only maintained.
The Double entry accounting is a system of recording transactions in a manner that maintains the equality of the accounting equation. This accounting technique records each transaction as a debit and a credit, where every debit has a corresponding credit and vice versa.

Double Entry System

Accounting Software's
There are many accounting software's

available in Indian Market.

Introduction to Tally
Tally Solutions Pvt. Ltd. (formerly Peutronics Pvt. Ltd.)

commenced operations in 1986. Tally Solutions Pvt Ltd is a Bangalore-based financial accounting software company that currently sells into more than 100 countries beyond its native India, including the United Kingdom, Bangladesh and the Middle East.
Tally's software is mainly used for vouchers, financial

statements, and taxation in many industries, and has specialised packages for retail businesses. More advanced capabilities are found in its ERP package.
Tally Software is developed with a core proprietary engine with

a SDK Wrapper. Most of Tally's Interaction Forms and Reports are developed using Tally Definition Language TDL. Customization of Tally Application can be done using this TDL SDK.

Features of Tally
A leading accounting package: The first version of

Tally was released in 1988 and, through continuous development, is now recognised as one of the leading accounting packages across the world, with over a quarter million customers. Tallys market share is more than 90%.
No accounting codes Complete business solution Integrated/ Non-integrated accounting and

inventory Flexible and easy to use Speed

Tally Editions

Groups
Groups are collection of Ledgers of the

same nature. Account Groups are maintained to determine the hierarchy of Ledger Accounts which is helpful in determining and presenting meaningful and compliant reports.

Groups

There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary Groups and 13 are Sub-Groups.
15 Primary Groups Branch / Divisions Capital Account Current Assets Current Liabilities Direct Expenses Direct Incomes Fixed Assets Indirect Expenses Indirect Incomes 13 Sub Groups Bank Accounts Bank OD A/c Cash-in-hand Deposits (Asset) Duties & Taxes Loans & Advances (Asset) Provisions Reserves & Surplus Secured Loans

Investments
Loans (Liability) Misc. Expenses (ASSET) Purchase Accounts Sales Accounts Suspense A/c

Stock-in-hand
Sundry Creditors Sundry Debtors Unsecured Loans

Pre-defined Ledgers
There are two pre-defined ledgers available

in Tally.ERP 9, they are: CASH

This Ledger is created under the Group Cashin-hand. This Ledger is created under the Group Primary.

Profit & Loss Account

Accounting Vouchers

By default in Tally.ERP 9, there are 18 different pre-defined Voucher types.

Contra Payment Receipt Journal Sales Credit Note Purchases Debit Note Sales Order Purchase Order Delivery Note Stock Journal

Payment Voucher
The payment voucher is for all payments you

make through cash or Bank. These payments can be towards expenses, purchases, to trade creditors, etc.
Particulars Dr Name of Supplier Debit Amount Credit

Cr Cash or Bank A/c

Amount

Receipt Voucher
The receipt voucher in Tally is for all receipts

into the Cash/Bank account. The voucher is similar to the payment voucher except that you debit cash or bank A/cs and credit the ledger from which you receive.
Particulars Cr Name of Customer Dr Cash or Bank A/c Amount Debit Credit Amount

Contra Voucher
The contra voucher is for Fund transfers

between cash and Bank accounts only. Cash A/c to Bank A/c Bank A/c to Cash A/c One Bank A/c to Another Bank A/c

Particulars Dr Cash or Bank A/c Cr Cash or Bank A/c

Debit
Amount

Credit

Amount

Purchase Voucher
Purchase invoice is a bill issued by the

supplier for the purchases made by the

Particulars Dr Name of the Supplier Cr Purchase A/c

Debit Amount

Credit

Amount

Sales Voucher
Particulars Cr Name of the Customer Dr Sales A/c Amount Debit Credit Amount

Journal Voucher
Particulars Cr Name of the Customer Dr Sales A/c Amount Debit Credit Amount