What is Journal and Ledgers ?

Journal and Ledgers 

A Journals is book in which business transactions are entered in chronological order. A record of a single business transaction is called a Journal Entry. Every journal Entry is supported by a voucher, evidencing the related transaction. 
A Voucher is a document containing the details of a financial transaction. Examples include sales invoice purchase invoice, Payslip, Rent receipt and so on.

A Journal, several entries are recorded, each of which are unrelated to the other. To know the total effect of all the transactions affecting a particular asset, liability, expense or income . A ledger is the book in which all the accounts  are maintained. A chart of accounts is a list of all account titles used by organisation.

What is Posting ?

  Posting is the process by which information about transaction is transferred or moved, to an account. 

What is Accounting Period ?

A Regular period of time , such as a quarter or a year, for which a financial statement is generated is called an accounting period. 

What is Trial Balance ?

A Trial Balance is a list of the balances of all ledger account. It is prepared after  

1. Making all the adjustment entries in journal.
2. Posting the journal entries to the ledger 
3. Balancing the ledger account.

It is sum of balance of all real, personal and nominal accounts of the organisation. A detailed trial balance has columns for,

• Account name
• Debit balance
• Credit balance

What is Financial Statement ?

A Financial statement is a report prepared from the accounting records of a company to find the financial of a business for a specific period.

For Repoting convenience the profit and loss account in divided into ,

1. Trading Account
2. Profit and Loss Account

  The profit and loss statement can be further classified into two levels.

• Gross Profit: Gross Profit is arrived at, after considering the core activity of  the company it is expressed as 

Gross Profit= Net Sales - Cost of Sales 

• Net Profit :  Net  Profit is arrived at after considering  the administrative and other costs incurred for the period. it is expressed as.

Net Profit = (Gross Profit + Other) - (Selling And Administrative Expenses + Depreciation + Interest + Taxes + Other Expenses)

Trading Account

Accounts that increase the profit are shown on one side while accounts that decrease the profit, ie., losses and expenses are shown on the other side. The statement so prepared is known as “Income Statement”. An Income Statement has two parts namely, Trading Account - It reveals gross profit or gross loss .

Basic accounting

Basic Accounting

What is Accounting ?

Accounting is the systematic recording, reporting, and analysis of financial transactions of a business. 
The in charge of accounting is know as an accountant and this individual is typically required to follow a set of rules and regulations such as the Generally accept accounting Principle.
Accounting allow a company to analyze the financial performance of the Business and look at statics such as net profit.

Rules of Accounting

Personal Account

Personal account relates to persons with whom a business keeps dealings. A person called be a natural person or a legal person. if a person receives any things from the business he is called receiver and his account is to debited in book of business.

The Golden Rule for Personal Account is ,

Debit(Dr.) is the Receiver

Credit(Cr.) is the Giver.

Real Account

Real Account relates to property which may either come into the business or go from business. If any property or goods come into the business account of that property or goods is to be debited in the books of the business. If any property or goods goes out from the business account of that property or goods is to be credited in the books of business.
The Golden Rule for Real Account
Debit What come in
Credit what goes out

Nominal Account

Nominal Account is an account that relates to business Expenses, Loss, Income and Gains. 

If Business incurs expenses to manage and run business account of that expense is to be debited in the book of Business when a business earns in come by rendering services or hiring business assets, an account of that income is to credited in the books of business. 

The Golden Rule for Nominal Account

Debit All Expenses or Loss 

Credit All Income Gains or Profit

Introduction & History of tally

  Tally Introduction 

Tally is complete business solution .Tally provides a comprehensive solution to the acciounting and inventaary needs of a business. The package comprises financial accountings, book-keeping and inventory accountin. It is devaloped by "Mr.Bharat Goenka". Tally solustion PVT was stared in early 1980 .  

Tally History

Tally version

Tally Version 3.0,4 and4.5

Tally 3.0 to Tally 4.5 version Tally Accounting Package was only used to run in Microsoft DOS (Disk Operating System) and it was unable to run in windows O.S . The fist version of Tally not a user friendaly.

Tally Version 5

Tally 5 version introduced its operatings in windows OS . It become user friendly and very easy to operate with Graphical user Interface of the software . There was no any enhancement in the Business operation only supported the basic accounting as earlier version did.  

Tally Version 5.4

Inventry maintenace has been introduced with this version. Recording the stock Quantity and generating the stock reports with developrd.

Tally version 6.3 

Locking the software with single computer wase introduced with this version .By Hadware Lock Facility duplication of the software usage was eradicated.

Tally Version 7.2

Tally 7.2 version onwards the tally software was able to handle the statutory operations by recording the VAT(value Added Tax), Service Tax, T.D.S(Tax Deducted Source) like transactions and able to generate the statutory. 

Tally version 8.1

Earlier Tally was only able to work in English language but now onword it supported multi-lingual anad support FBT,and Excise operation. 

Tally version 9 

International Taxation and pay roll has been introduced.

Tally version ERP.9 

Excise for manufatures and Remote Login(Tally.Net) Features launched  and Finally Tally . .ERP9 version launched with seriesA in the year 2009 with which Mr. Bharat Goneka goal has been achived From Tally.ERP9 version onwords The improvements in the software called as Releases.
it is simple to install and use the software and you can download it for free of cost from the Tally Solution Downlod center.