I have posted earlier screenshots showing how to create a company,however the screen shots were uploaded on rapid share  server.At that time, downloading files from Rapid Share was free service which now becomes  a paid service hence only a premium rapid share can download it.

The aim of this blog is to provide free services as far as it is possible hence I am re posting the same here with some updating and the screen shots are directly available within the article itself.

If you are beginner in tally, then first of all, you need to download latest version of tally.erp 9 educational copy which is available at Download Section of this site.

After downloading the software, start your tally and you will find the following screen. Note that if there isn’t any company created yet, then the Select option will be disabled automatically and you will be prompted to create a company or login as remote user.

Now hit Create company button and you will find below screen

just start typing details of the company for which you wanted to prepare books of accounts in tally

Type legal name of company and its mailing address. Remember you can put address at any time latter by selecting Alter company menu.however it is advisable to fill up as much details as available. There is no limitation in number of lines for address.

If you are creating a private. ltd company, then you need to type the registered office address here and not the factory or manufacturing unit address.

Note : You may alter name and address at any time latter on you wish so.

After address, select your county. if your business is geographically located in India, then select India. Now suppose you are living in India and you wanted to write books of account of a company which is situated in Dubai, then select the country as Dubai.

After selecting country, select the state which is applicable to your business for vat purpose.

If your office is situated in Mumbai from where you have to prepare books of account,and your business unit is in Delhi,then you have to select your state as Delhi and not Maharashtra.

The point to keep in mind is that first determine which state vat act is applicable to your company and accordingly you have to select that State otherwise, you will not be able to comply with Vat and CST act applicable to your state and also you will not be able to generate any true vat reports

Now you have to select method of accounts i.e. Accounts only or Accounts with inventory

The first option is for professional type of services, business such as doctors, lawyers, advocate etc  who do not need to keep records of inventory. if you are into trading or manufacturing activities, then you must select Accounts with Inventory.

If you select accounts only then you will not be able to keep record of inventory.

Further, you have to select period of accounting year.

Accounting year is a period for which books of accounts are being managed.

Before you go further, you must be familiar with calendar year and financial year.

Calendar year is the year starting from 1st January of any year and ends on 31st December of the same year.

so you can assume that 2009 is a calendar year.

Financial year is a year which starts on 1st April of a calendar year and ends on 31st March of the subsequent calendar year.

here is 2009-10 is  a financial year.

In India normally Accounting year is the financial year starting from 1st April of a calendar year and ending on 31st March of next calendar year. As per Income Tax, every assesses must keep books of account as per Financial Year.

The maximum period of accounting may be for 18 months, however that is used only by Pvt and Ltd company only to comply with the provisions of the companies act in case of newly formed company.

So  any case the financial year from should be the 1st April of the calendar year for which you want to start books of account regardless to the fact when the business was started.

The second selection is starting date of books of account. This is the date of starting your books of account. but be careful while selecting this date.

If you were maintaining your books of account on manual and from 1st April, 2009, you have decided to write books in tally then your financial year as well as books beginning will start from 1st April, 2009.

for running business you can not choose any other date then the 1st April of the calendar year.

so, books begin date must be 1st April of the financial year for all business except those which start during the middle of a financial year.

Let’s say your business starts on 1st July, 2009, then the Financial year will be 1st April, 2009 and books begin from will be 1st July, 2009

Now, accept the screen by pressing Ctrl +A

the you will see this screen creating company and importing statutory master

and its all done, you can now start work on your newly created company which will appear like this

Best of luck.

Popularity: 50% [?]

For last few months, I am selecting topic to post on this blog is from the search term my reader use to find the item they requires. Today, I will let you know how to prepare balance sheet in Tally.As frequently I am finding this term at my Lijit.com Search Box

First of all, we will look this matter from the view of manual accounting system
The process of Manual accounting is :

1. Preparing Vouchers/Bills etc.
2. Preparing Cashbook, Journals, Purchase and Sales Register and Bank book
3. Preparing Ledgers by posting items to individual ledger account from the item no. 2 as above
4. Preparing a Trial Balance
5. Preparing Trading and profit & Loss Account
6. Preparing Balance Sheet

Now, Vouchers, Bills ,cheques  are the base of accounting system they forms a transactions which are recorded in day book,cash book,bank register,purchase/sales register
then each transaction has been posted to related ledger account.
then on a particular date, Dr. and credit balance of each ledger trasferred to Trial balance, including closing cash on and bank balance on that date.
by following this process, the unit prepars A trial balance
Thus, A trial balance sheet shows summary of sales,purchase,assets and liabilty, expenses and income during that period.
Now from the trial balance sheet all items relating to revenue expenses,revenue incomes, sales, purchase etc are transferred to trading and profit and loss account.
Also stock on that date is to be valued and effected into the profit and loss account.
now if any provision for interest, taxes have to be made then the same are effected into Profit and loss account.
The result will be the Net profit and loss account.that will be transferred to Capital Account
Now items representing capital assets, cash/bank balance, capital and sundry debtors and sundry creditors in the trial balance are transferred to the Balance sheet
also stock to be shown in the balance sheet.
Now your balance sheet is ready.

In Any computerization Accounting system, preparation of balance sheet is relatively very different then as stated above.

In computerisation Acccounting software, all you need to create ledger accounts under proper grouping and t hen start entering vouchers only.

You don’t need to prepare any register
No need of posting to any ledgers
No need to prepare a Trial balance sheet
No need to prepare a Balance sheet
Because once you post a voucher in  a proper way, all the above reports the system will prepare automatically without any error or calculation.

In tally, you need to specify closing stock as on the given date to prepare a balance sheet which I have shown in my earlier posting.
Please read how to put closing stock in tally

Accounting for Non-Accountants, 2E: The Fast and Easy Way to Learn the Basics

Popularity: 30% [?]

Recently, I have asked tally support for guidance relating to forex transaction as I was not able to get the desired result.

In response to above, Tally team sent me the screen shots of entire manual for recording forex transaction. Though my problem was bit different. However For general tally user this manual is very important and those who are not familiar with forex transactions in tally, they can now learn and can enter transaction properly.

reader can view and download the entire manual at the following link :

http://www.scribd.com/doc/24696647/Multi-Currency-in-Tally

Further following reading is also suggested for a better understanding and in depth reading :

http://www.tallynine.com/2009/05/multi-currency-in-tally-how-to-do.html

Popularity: 10% [?]

valuation of stock and accounting of stock in the books of accounts is very important and if you want to prepare a balance sheet, then without accounting opening/closing stock you can’t prepare a balance sheet.

How to enter opening in closing stock in Tally ? It is a very simple process in tally. you just need to put value of the opening stock and closing stock on a given date.

Here is a detailed guide for entering stock in tally. it is very simple.
Go to ledger creation account screen from the main menu of tally and create a new ledger namely finished Goods under the group stock in hand. my previous article about how to create a new ledger in tally will help you in this regard.

and save the screen

now alter that ledger account and press enter you will see opening stock and date just put the amount of opening stock if you don’t have any opening stock as on date then just press ENTER
now you will be prompted to enter closing stock

here you may select the date on which you wanted to put stock say as on 30th June or 30th September or any other

type the date and enter the value of stock there and save the screen its all Done.

Go to the profit and loss account and you will find opening and closing stock there. Closing stock will also be reflected in the balance sheet on the given date.

Popularity: 22% [?]

Have you ever try to create a New Company ? If not then let’s try to create a new company on Tally.

I have created a screen shot on entire process on how to create a company in Tally (it is same in any version except some minor changes)

Just down load the entire file from the link and try to create a company on your own and let me know if you face any difficulty.

http://rapidshare.com/files/225467689/how_to_create_company.doc

Popularity: 23% [?]