PRESENTATION IS PRESENTED TO YOU BY :

NRO0196694 ROLL NO. 91 EVENING BATCH MOHMED JAVED

ACKNOWDGEMENT
TO ALL MY TEACHERS
SUMINDER KAUR MAM JASWANT SIR

1. 2. 3. 4. 5. 6. 7. 8.

Creating a company Voucher entry Ledger books Groups Financial Statements Tally Audit Security Weakness

Basic Accounting Principles

The Revenue Principle The Historical Cost Principle The Matching Principle The Full Disclosure Principle The Verifiable Objective Principle The Dual Aspect Principle Account Debit Credit Personal The receiver The giver Real What comes in What goes out Nominal Expenses & losses Income & profits

TALLY
Tally is a versatile accounting package and is also based on a windowing interface

Installing & starting the package

There are certain hardware requirements like minimum disk space. Operating Systems as MS Windows 95/98/00/XP or latest Vista.

Versions of Tally
4.5: Dos based , accounts only. 5.4: Windows based accounts with inventory. 6.3: 5.4 with online finalization ,auditing & import& export feature. 7.2: 6.3 with VAT TDS & Service Tax. 8.1: 7.2 with FBT & Excise Duty. 9 : 8.1 with payroll system, multi language & extra formatting feature.

SHORT KEYS
TO OBTAIN Calculator Bar To exit calculator Filling details of company KEY Ctrl +N Ctrl +M Alt +F1

Companys information
Single line in button bar Configuration Hot keys

Alt +F3
Alt +E F12 The letter in Red colour.

Creating a company
Selecting company, to select an existing company from the list (F1). Create company is to create a new one (Ctrl+C). Backup is meant to take a back up of the stored data into a backup device. Restore is to extract information from the backup device to the data directory. Quit is to exit from Tally (Ctrl+Q).

INDEX

Screen after selecting Create company

Field
Name Mailing name, address E-Mail address Mandatory Optional

Description
Fill the companys name Mailing name can be different from that of the companys name Email address can be specified for utilizing eservices from tally

Optional

Income / sales tax Optional number Currency symbol Mandatory On basis of country

Field
Maintain (Accounts Mandatory only /Inventory only /Both) Financial year Mandatory Books beginning from Mandatory Tally vault password

Description
Choose as per requirement of the company

Password is required to view companys name Password is required to view companys Input as per requirement

Security control Base currency information

Optional Mandatory

Voucher Entry
Voucher is a document for recording all financial transaction
Specify the name of the Voucher & choose its type. Numbering could be automatic or manual or none. Tally will prompt for a narration entry at the bottom of voucher entry screen if opted for common narration. Tallys overdue/age-wise analysis will consider the effective date only and not the voucher date.

The intension of using classes for payment, receipt and contra voucher is to enable data input in Single entry.
One can specify the prefix and suffix details for the voucher types. INDEX

LEDGER
Name: Specify the name of the ledger here. Under: Specify the group under which the ledger is to be created . Currency of ledger: Maintain foreign currency accounts only if you require its balance in that currency. Maintain bill-wise detail: If you opted to maintain balances on a bill-by-bill basis a sub screen will ask you bill-wise detail. Effective date for reconciliation: To be given for INDEX accounts falling under Bank Accounts Group.

After selecting and clicking Stock items

GROUPS
Capital Nature
LIABLITIES Capital Account Current liabilities Loans ASSETS Fixed assets Current assets Investments Miscellaneous Expenses

Revenue Nature
Sales Account Purchase Account Direct Income Indirect Income Direct Expenses Indirect Expenses

Index

DAY BOOKS
Day book gives the balance for each day for the voucher type selected. Posting of entries is automatically achieved through Tally. One can have a printed version by help of print button in menu bar. There are 2 types of print configuration option is available. Alt+P/ Print button in menu bar facilities printing one account at a time. Multi-accounting printing menu option provides multiple accounts to be printed at a time.

FINANCIAL STATEMENTS
Trial Balance: A consolidation of ledger balances. Display trial balance by Display -> trial balance option. Balance Sheet: It represents assets and liability of the company. One can configure the settings by press F12. Profit & Loss: If you click Net Profit Tally will show the profit & loss statement. There are some function keys provided in the left side of screen. Closing and reopening: Automatically done by Tally by keeping track of the data entered. The balances in the ledger accounts are taken in to create the opening balance for the Index new year.

Trial Balance

Profit & Loss Account

BALANCE SHEET

RATIO ANALYSIS

Cash flow

Group company
Accounts of different companies belonging to same management are required to be consolidated
CREATE: A group
company can be created only for companies already have been loaded. We create group company by pressing Alt+F3.The members of the group company to be selected from popup list.

ALTER: One can

select or deselect members through the Alter Mode. Any change will come to effect only on shutting the group company and reloading it.

TALLY AUDIT
Provides the capability to the auditor to track changes in the accounts following his previous review.
Changes are tracked in transaction & ledger masters. Only material changes are considered, a change in name of the ledger, change in opening balance. User designated as auditor can view audit list and act upon it.

Tally tracks all changes made to vouchers that are more than 30 days old. An additional time is given to rectify the error.
Changes made after the authorized person accepts them are not available in the audit list.
Index

Importing Data
Import of data from one company to another created within Tally is done easily. Its required for the purpose of the importing all masters and vouchers from an existing company to anew company. Tally supports importing data from other programs as excel.

Exporting Data
Tally can export the raw data as well any report. Raw data may be exported for input of another company. Summaries and report can be exported between excel and Tally. A separate button is on the button bar.

Other features of TALLY

Backup Provisions. Easy exit to operating systems. Unencrypted files: Tally encrypts & stores tally data at the data directory. Decryption is possible only through logging on to Tally. Inadequate controls on automatic entries. Inflexibility of documents formats. Inability to add/rename fields.

SECURITY REVIEW
Auditor has access to all information including audit trails. Owner has full access and right to all parts of Tally accept audit trails. Data entry is restricted rights. There is however an option to create other security types based on predefined types.

Index

On selecting the option following menu will come

On click Screen appears

Weaknesses in Accounting Packages

1 Passwords controls
Caution has to be exercised while opting for Tally vault password .If list of companies are worked at the same time setting vault passwords for even some of them can be cumbersome.
Index

Audit Trails

Authorization signature Log of data modification Missing and duplicated serial number. No warning on duplicate entries. Non-provision for freezing entered data.