TALLY 9.0 WITH ERP NOTE STEP BY STEP

                            

 TALLY 9.0 WITH ERP NOTE STEP BY STEP

Accounting  is an art of recording, classifying, summarizing and interpreting the results of events present in an organization in monetary and non monetary value.

Recording :- The process of putting information in a specific book is known as recording.

Classifying :- The process of discussing more about the recorded information is known as classifying.

Summarizing :- The process of making a summary statement over classified information is known as summarizing.

Interpreting:- The process of preparing the final statement over all above statements is known as interpreting.

                  The other name of recording is ‘Journal’.

                  The other name of classifying is ‘Ledger’.

                  The other name of summarizing is ‘Trial Balance’.

                  The other name of interpreting is ‘Final Account’.

Account :- Accounts are the summarized statement prepared by every businessman for every individual item present in an organization. Accounts are generally look like a ‘T’ shaped form. It contain 2 different side, left side represents the positive attitude and right side represents the negative attitude.

                                                  Purchase Account.

Table A

Classification of accounts:- Accounts are generally classified into two different category.

1.       Personal Account.

2.       Impersonal Account.

Personal Account:- Those account completely relating to the persons are known as personal account.

                Persons:-Those who have their own identification are known as persons.

                Personal accounts are classified into the following categories.

1.       Natural Person’s personal account.

2.       Artificial Person’s personal account.

3.       Representative Person’s personal account.

Natural person’s personal account:- The account completely relating to the natural persons like human being are known as N.P.P.A.

Artificial person’s personal account:- The account completely relating to the artificial persons like schools, colleges, banks etc.. are known as A.P.P.A.

Representative person’s personal account:- The account represents both natural and artificial person are known as R.P.P.A.

Terminology used in accounting.

1.       Goods.

2.       Assets.

3.       Liability

4.       Capital

5.       Further capital

6.       Drawing

7.       Expenses.

8.       Losses

9.       Income

10.   Gain

11.   Direct expenses

12.   Direct income.

13.   Indirect expenses.

14.   Indirect income.

15.   Purchase

16.   Purchase return

17.   Sales

18.   Sales return.

19.   Fixed asset.

20.   Current asset

21.   Fixed liability

22.   Current liability

23.   Bad debt

24.   Baddebt recover.

25.   Debtor

26.   Creditor

27.   Sundry debtor

28.   Sundry creditor

29.   Depreciation

30.   Proprietor

31.   Outstanding expenses.

32.   Prepaid expenses.

33.   Accrued income.

34.   Income received in advance.

Goods :- The things which are produced or purchased not for use but for the selling purpose are known as goods.

 Assets :- The things which are produced or purchased not for sale but for the use in the business are known as assets.

Liability :- The money or money’s worth payable by business to the outsider are known as liability.

Capital :- The money or money’s worth invested by the owner to start a business are known as capital.

Further capital :- The money or money’s worth invested by the owner in order to develop the business are known as further capital.

Drawings:- The money or money’s worth withdrawn by the owner for his personal use are known as drawings.

Expenses:- The amount which is paid by the business to the outsider for getting any benefit are known as expenses.

Losses :- The amount which is paid by the business to the outsider without getting any benefit are known as losses.

Income :- The amount which is received by incurring some expenditure are known as income.

Gain :- The amount which is received without incurring any expenditure are known as gain.

Profit :- Excess of income over the expenditure are known as profit.

Direct expenses :- The expenses directly engaged in production are known as direct expenses. Or the expenses completely relating to the factory are known as direct expenses.

Direct income :- The income which comes from factory are known as direct income.

Indirect expenses :- The expenses completely relating to the office are known as indirect expenses.

Indirect income:- The income which comes from office are known as indirect income.

Purchase :- The process of collecting goods from the supplier with some consideration is known as purchase.

Purchase return:- The goods return to supplier on inferiority is termed as ‘purchase return’.

Sales :- The process of transferring the goods to the customer with some consideration is known as sales.

Sales return:- The goods return from customer on inferiority is termed as ‘sales return’.

Fixed asset:- The assets which are used for more than one accounting period are known as fixed asset.

Baddebt recover:- The amount which is received previously declared as baddebt is known as baddebt recover.

Debtor :- The credit customer of the business is known as debtor.

Creditor : The person from whom businessman used to purchase certain items is known as creditor

Sundry debtor:- All the credit customers are known as sundry debtor.

Sundry creditor:- The summation of all the creditors are known as sundry creditor.

Depreciation :- The amount which is reduced by the regular use of fixed asset is known as depreciation.

Proprietor:- The real owner of the business is known as proprietor.

Outstanding expenses:- The amount which is due but not yet paid are known as outstanding expenses.

Prepaid expenses:- The amount which is paid in advance but the benefit will get in future period are known as prepaid expenses.

Accrued income:- The income which are earned but not yet received are known as accrued income.

Income received in advance:- The income which is received in advance but not yet earned are known as income received in advance.

Accounting cycle

Accounting cycle is a process of maintain the books of account present in the business. It means the business transaction are recorded in the books of journal and it posted into the books of ledger, then it is transfer to the trial balance, then it is transfer to the final account and finally it is transfer to the balance sheet . this process continues till the business exist in the market.