T A L LY P R I M E

Tally Prime is complete business management software for small and medium business. Tally
Prime helps you manage accounting, inventory, banking, taxation, banking, payroll and much
more to get rid of complexities, and in turn, focus on business growth.

This platform is the new-age business management software from the house of Tally which is
sure to delight you. Simplicity, speed, flexibility, and reliability are a trademark of Tally
products and with Tally Prime you will experience them at a whole new level.

Tally Solutions is a Bangalore-based company that was co-founded by Mr. Shyam Sunder
Goenka and Mr. Bharat Goenka in the year 1986.

Versions of Tally

Tally 4.5: The first version, released in 1990.

Tally 5.4: Released in 1996, introduced a graphical user interface.
Tally 6.3: Released in 2001, a Windows-based version.
Tally 7.2: Released in 2005.
Tally 8.1: Released with a new data structure.
Tally 9: Released in 2006.
Tally ERP 9: The current and most widely used version, released in 2009.
TallyPrime 1.0
TallyPrime 1.1
TallyPrime 2.0
TallyPrime 2.1
TallyPrime 3.0
TallyPrime 4.0
TallyPrime 4.1
TallyPrime 5.0

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Tally software has two types of classifications based on the number of users:
single user and multi-user

Single user
The Silver edition is a single-user license that allows only one user to access the license at a
time.

Multi-user
The Gold edition is a multi-user license that allows multiple users to access the license at the
same time. Tally Prime Server can be used along with Tally Prime to manage the concurrent
usage of company data.

Company Creation

The first time we started Tally would require creating a company. Creating a company simply
means giving basic information about the company.

Step to Create a Company in Tally

Gateway of Tally -F3 Company - Create Company or Company Menu (Alt+K) - Create
Press F12 (Configure)
Provide Contact Details: Yes
Use Tally Vault Password to encrypt company Data: Yes
Use User Access Control: Yes
Provide Additional Base Currency Details: Yes

Enter here the Company name, address, state, financial year, books beginning date, security
control, currency details etc.

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Tally Vault Password
It is used for hiding the company name from the list of created companies. If we use the Tally Vault,
instead of company name few asterisks (*****) would be shown in the list of companies. A company
must be identified by the company number on shut company.

Security Control
Security is one of the major concerns for computer systems. Password Protection is a common method
of computer security. An authorized person (administrator)assigns a secret word (called password)
which then becomes necessary to perform the specified computer operation. Any person, who does not
know password, cannot get to open company.
After Company Creation then open company Features window, if we want make changes activate the
features otherwise Press Esc (Escape) button.

To get more features activate this option Show more Features: Yes
Show all Features: Yes

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Then activate the features that we want

Company Menu (Alt+K)

Create
To create a new company.

Alter
To modify a company

Change F3
If we opened many companies, from the list select a company.

Select Alt+F3
To open a company

Shut Ctrl+F3
To Close opened Company

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Delete Company

Company Menu - Alter - Enter - Select Company Name- Enter- Press Alt+D
There is a confirmation message came Press Enter, again another message came Press Enter

Ledger creation
In a manual bookkeeping system, a book containing each page of the account can be placed on each
page of the ledger. It is very important for voucher entries. When we create a company in Tally by
default, two ledger accounts are created.
• Profit and Loss (Primary)
• Cash (Cash-In-Hand)

Step to Create ledger in Tally

Single Ledger Creation

Gateway of Tally - Create - Ledger

Name: Type Ledger name a/c

Alias: I f we want to give some other names type it or just enter.

Under: The list of groups will be displayed at the right side of the screen, select the group and enter.

Opening Balance: Type opening amount

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Name of account Under (Group) Name of account Under (Group)
Capital Capital account Service Direct Income
Drawing Capital account Commission received Indirect Income
Purchase Purchase account Interest received Indirect Income
Purchase return Purchase account Discount received Indirect Income
Sales Sales account Rent received Indirect Income
Sales return Sales account Appreciation Indirect Income
Bank Bank account Land Fixed asset
Bank overdraft Bank o/d Furniture Fixed asset
Cash (page up) Cash in hand Computer Fixed asset
Profit & loss a/c (page up) Primary Machinery Fixed asset
Sundry creditors Sundry creditors Building Fixed asset
Sundry debtors Sundry debtors Vehicles Fixed asset
All taxes Duties & taxes Business premises Current asset
Salary Indirect expense Bills receivable Current asset
Bonus Indirect expense Pre-paid expenses Current asset
TA Indirect expense Accrued income Current asset
Commission paid Indirect expense Loan Loan (liability)
Rent paid Indirect expense Bills payable Current liability
Advertisement charge Indirect expense Outstanding expenses Current liability
Bank charge Indirect expense Unearned income Current liability
Discount allowed Indirect expense Tax payable Current liability
Interest on loan Indirect expense Short term loan Current liability
Food and accommodation Indirect expense Investment Investment
General expense Indirect expense Petty cash Cash in hand
Sundry expense Indirect expense Interest on drawing Indirect income
Printing & stationary Indirect expense Royalty received Indirect income
Loss on goods Indirect expense Loan to person Loans and
advance
Legal charge Indirect expense Wage Direct expense
Interest on capital Indirect expense Carriage inward Direct expense
Electricity charge Indirect expense Loading & unloading Direct expense
Phone bill Indirect expense Freight charge Direct expense
Trade expense Indirect expense Customs duty Direct expense
Traveling expense Indirect expense Import duty Direct expense
Conveyance charge Indirect expense Manufacturing expenses Direct expense
Carriage outward Indirect expense Factory rent Direct expense
Depreciation Indirect expense Factory electricity charge Direct expense
Bad debt Indirect expense Factory lighting charge Direct expense
Loss on asset Indirect expense Packing charge Direct expense
Postage charge Indirect expense Provident Fund Current liability