Basic Rules of Accounting entries

Posted on October 31, 2008 by Mahendra • 69 Comments

we have already seen basic principles of accounts and groups in tally . Understanding basic rules of accountancy is a necessary process and one should take trouble to go through the basic rules of accounting before starting professional course like tally. Otherwise latter on the user will be confused and will start seeking guidance here and there. one more post on how to start writing books of account will also help you to understand basic rules of accounting entries.

1)Individual Accounts
2)Goods/Assets Accounts and
3)Profit/Loss or Income/Expenses Accounts

In my last post, we have seen the classification of accounts under the above mentioned 3 broad categories.

This classification is very necessary to understand the rules of ‘Debit or Credit’ for any transaction.
here are the rules
A) Individual Accounts
In every individual accounts, there is two possibilities.
One is gainer and another is loss er OR
One is giving and another is receiving
the THUMB RULE IS THAT

Credit the person who is giving and debit the person who is receiving.
Suppose, you have given cash rs. 1000 to Mr. X, then in your books of account you have to ”
Debit Mr. X Rs. 1000
Similarly In the books of account of Mr.X he will credit your account by Rs. 1000
For your kind information, the entry is not yet complete as we have seen only one rule yet.
B) Goods/Assets Account

This rule is very simple.
” Debit what ever comes in
Credit whatever goes out ”

look to the above example cash is going out so, cash will be credited.

So, let’s complete the above entry
Debit Mr. X Rs. 1000.00
Credit Cash Rs. 1000.00
Similarly in the books of account Mr. X will pass entry as follows

Debit cash Rs. 1000.00 (because cash comes to him)

Credit your account with your name

Similarly ABC and Company issues a cheque of Rs. 15000 drawn on bank of Baroda to Mr. bimal kumar then entries in the books of account of M/s. ABC & Co. will be as follows:

Debit Bimal Kumar Rs. 15000.00
Credit Bank of Baroda Rs. 15000.00

Sorry, Friends my time is over we will see more next time
Best Regards,
Mahendra

Mahendra (192 Posts)

Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

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Kanchan Kothari

Want to know how to use Tally 7.2,basic Steps to be Remember in Tally 7.2.
Please Help me as soon as possible.

Mahendra

Kanchan,

Tally 7.2 is a dead product! only CA's community might be using it because they don't like latest technology nor they want to update their knowledge.

jareen

Hello sir,

I am taking in charge of a office at present. I don know anything regarding how to maintain all the accounts in tally. I finished my MBA last year. I know only basic to operate tally. please help me to learn how to maintain assets, income expenditure and all basic for administration.

S. Jeyachandran

i am pursuing MBA i have no idea about accounts so please sent any books are materials about the accounting basics principles rules
with thanks
S. Jeyachandran

indra ghimire

Dear Sir,
I am Working in my office we have accounts package, but I don't no any thing about this, So please kindly give me hints how to create ledger, and sales books and bank accounts and bills entry, because I am not having such position to go classes so please help me and send some basics & examples to my mail ID

Bheema

Hi,

I want to learn accounting packeges so what are the basics.

Pls let me know.

Pls mail me.

Rgds,
Bheema.

purabi

Sir

please help me, how i export the trial balance in excel sheet? in details please

ayesha

Sir ,

thanx for providing such vast information on Tally as i am new to this
i want to know the complete detail regarding receiving patments, making payments, tds salary , proffessional,contract-non contracts,servicetax receiveable etc

RAMYASHRI

Hi Sir,

As i'm working in credit card department and knew the basic rules of accounts and there are lot manny to learn. can u suggest me on that. Ad i want to atten the interview. Kindly guide me....

With Regards,
Ramyashri.S.

Jennis Richard

Dear Sir,

I am an accounts assistant in Bahrain concern. I hereby thank you for your service on Accounting doubts. It is very helpful for me to improvise myself by some of the useful questions and answers.Really you have more patience to answer those irritating questions. Hats-off to you.
Thanks
Jeny

Hello Jenis Richard,
Glad to meet you and thanks for your loving feedback. Do let me know if ever you have any problem in Accounts or Tally.erp 9

Appu

Dear Mahendra,

Glad to meet u, as i m working in Dubai as accountant i need your help to creat bank Reconciliation statement in Tally please contact with my email id and please give me your email id....Thank You...hope u will help me....

Appu,
I help people only when they Do post their query in a detailed manner and with their Tally serial number.
Else The query does not attended.

pankaj

i have lost adminsister user name and password of tally 7.2
how can i get data of that company in

vaishali kawal

Please Send me vat, cst, service tax, interest, notes for working in tally 9.

Viashali,
Please search Google, you will find a lot of valuable information

prathap reddy

please tell me about point of sales

Ifrah Khan

Good Evening sir,i want to learn Tally .ERP 9,because i am working as Account Assistant there i need it,Please help me and give me some tips over it.will be thankful to you..

Ifrah Khan,
just read about premium membership and join if you want to learn tally. If interested then do let me know.

nikita

hello, sir am learning basic tally but this is very different from my education i want to know that how can i want know about tally and what types of basic need in tally i want to work in tally can you help me to understand the tally courses thanks

Sameera

Dear Sir,
I am using tally erp 9 and i have a problem with manufacturing entries. We have manufactruing section but we do not miantain stock in tally now. I need to know how in enter row material , manufactuirng , Final product , and cost of Final product . ect..
Please hope you will reply me soon

saranya

dear sir,

I am working as an accountant . i want to learn tally also. Please help.

madhuri

hi,
i i am working in accounting field & using tally ERP. i learn new about this package.new shortcuts in tally,& knowlege about in tally to accouting entries. how to enter all the transaction can u please send me the tips and instruction.i am working in tally but not expert in tally so can u help me to how bacome a expert in tally

& can u send vareious information my mail id

Madhuri
All information are available on the site www.tallynine.com.
You have to spent time to find the related things. I do not serve ready mad food. If you face any problem relating to Accountancy or tally, then you should take trouble to give it a voice on the support forum
Please do not consider Accountancy and Tally as easy as learning Abcdefg...

i am working in tally package & i have good knowledge in tally. but i want to details knowlade in tally. to related report or entries. beacuse not use all funtion or keys in tally. i know accountancy & tally not easy like abcd

Madhuri
There is around 4-6 articles on TDS on this site. Have you tired to read them or just posting your queries..... first do read it and if you face any problem just let me know exact what problem you are facing.
But I do never provide any materials to any body nor I have any such materials. I post articles based user specific query they post on the site or from my own experience. If you need specific guidance,then you may contact me on Gmail/Gtalk ID at any time.

jampana prasadarao

your help line is excellent.Please inform me various functions of F1 to F12 in tally accounting system. Please also inform me how to write day book and transfer those entries to ledger accounts/individual accounts.

Thanks, Jampana,
I will write about Functions Keys in future

sushant

How can i generate report of last year pending bills in tally ERP 9.0

prakash

i issued a pdc(of next month) to our supplier & vice versa how i may post both entries for the same ?
i have purchased two items of one is 12.5% vat & anather one is of 5%, supplier gives a single invoice for the same, how i may post it?

Prakash,
One query at one time please. In single comment, post multiple query confuse me a lot.
Further to above, I love to solve query at support forum

glenn

dear sir, i have a problem with bank reco in tally. in the last year all the pending reco entries were not carried fwd to the next year as i CREATED a new company and did not SPLIT the company...i then manually entered last years closing balance as opening balance in the new company. Now my bank reco is not tallying. The difference is the amounts which were pending in last years reco. Kindly help. I will be most highly obliged

Glen,
In your newly created company in the bank ledger master alteration mode, you can specify the date from which you want to reconcile.
Just put related date there.If you still face further problem, then please post your query on support forum of contact me on Gtalk at mkr2005

my bank reco problem is still not resolved inspite of putting the effective date of reconciliation..reason being the the pending reco entries were not carried forward...and the opening balances of the bank were manually fed into the new computer...kindly help...thanks

Raghavendra

Dear Sir,
I am requesting to you that please suggest me that how can i learn the tally, but one big problem for me that i don't know any thing in tally because I am a student of science belong from rural areas and now I want to learn tally and I also want to make future in this field

Raghvendra,
You can learn tally by spending your time and by making lot of efforts. Spend as much time as you can to learn your self. then Go through various examples.Trial and error is the method to learn something. If you face any problem or confusion you need to give a VOICE to your problem and I am always here to solve it.

The another way is to learn tally by spending money. you can join and enroll for any tally academy near to you.
Choice is yours.

Shahid

I have completed B.com in 2008, but i am working in accounts field. i am working in IT Software ( Online Marketing)company as a computer operator (Email Marketing). but my confidenc is very low with these work. i want to learn a professional course but i am on two way that what?? Auto CAD or Tally ??
Please advise me Please Please tell me right way

Shahid,
I am not a suitable person to guide on such matter. I don't play with people's career this way!

Rma

Dear sir,
I am wated to learn tally9.0 . so, please help me.
Thanks

Dear RMa,
You can definately learn tally.erp 9 for this purpose, you don't need to buy tally software. educational version is enough to learn the tally.
First of all, please donwload the educational version from www.tallysolutions.com then create a company.
You may refer my articles for further reference on how to learn tally

Reena

Thnak you very much for your online support.

Pleasure!

mohammad asif

sir can i get ur email so ican directly contact u

ALI

Mr. Mahendra

Thanks to provide this website it is very helpful to me .If you dont mind can i get your phone no. or email id. If i get any problem in the future then i will keep in touch with you. Its amazing website to learn each & everything in the accounts feild.once again thanks
Ali

Hi Sir
I would like to know how to post advance entries in tally like rent advance , salary advance, one more thing if i get PDC cheques from Client then what will be entry & in which voucher it will be effect.

An early response is highly appreciate
Regards
Ali

Hafeez

Please send ur contact no number i m chennai i will solve ur problems

I m accountant in chennai

Best Regards

sunil kumar pandit

sir, we are using the tally software but i dont know how to enter all the transaction can u please send me the tips and instruction to do it nicely.i have some knowledge in tally.