Important terms related to Tally- Short notes on Tally

Important terms related to Tally- Short note on Tally

Short note on some important Definition and Features of Tally

In this Post I am going to give you some quick knowledge about Tally. This post covers Some important definition or terms related to tally with some useful shortcut. Let me begin with the definition of Tally.

What is Tally?-A short definition.

It is an accounting software package for maintaining computerized accounts of different business organization. In general Concept, Tally means to compare, that means we can compare he income and expenditure of business organization from where, we can find out the Profit or Loss of the business organization.

Some important points related to Tally:

In this part I will discuss about following terms briefly.

• Accounts
• Types of Accounts
• Features of Accounts
• Transactions
• Some Terms related with Accounts
• Role of Debit or Credit

What Is Accounts?

Accounting is the art of Recording, Classifying, measuring, presenting in a significant manner and in terms of money transactions and events which are of financial character and interpreting results thereof. It is a language of business, which involves identifying, classifying, measuring, presenting economic information about a business organization in such a way that the user of information can form opinion about the business, judge its performance and take certain decision. For these reason certain norms and system of accounting has been developed and preferred.

Types of Accounts – What are the types of Accounts?

Accounts can be classified into these types-

• Personal Accounts
• Real Accounts
• Nominal Accounts

What are Personal Accounts?

Personal Accounts are the those accounts which are related with party, person, organizations, institutions, corporation etc. like customer, supplier, banks etc.

What are Real Accounts?

Real Accounts are the those accounts which are related with assets. For example – cash, buildings, plants, machinery, furniture etc.

What are Nominal Accounts?

Nominal Accounts are the those accounts which are related with income and expenditure. For example – Salary, Interest, Commission, Discounts, Bills paid etc.

Features of Accounts:

Some important features of Accounts are-

👉A report or description of an events or expenditures.

👉A record or statement of financial expenditure and receipt related to particular period or purpose.

👉An arrangement by which a body holds fund on behalf of a client or supplies goods or services to them on credit.

What is Transaction?

It means transfer the money worth from one party to another.

Elements of Transaction:

• Two Parties
• Specific Amount
• Specific date
• Mode of payment (cash/cheque/credit)

Some Terms related with Accounts-Tally Basics:

• Debit: It is what you (business/company) received.
• Debtor: It is that person who owes (use) money in the business.
• Credit: It is what you (business/company) give.
• Creditor: It is that person to whom business owes (use) money.
• Liability: It is some of money which is used by the business from the outside.
• Capital: it is the part of liability, which is used by the owner to start and future expenses of the business.
• Assets: These are things of value own by the business. 

Rule of Debit or Credit – Tally Basics

When a transaction occurs, it will effected both of the debit and credit elements. The golden rules of Debit and Credit elements are-

Personal Account:

Dr. – The receiver

Cr. – The giver

Real Accounts:

Dr. – What come in

Cr. – What goes out

Nominal Accounts:

Dr. – All expenses & losses

Cr. – All incomes & gains 

What is Journal Accounts? – Definition to know before working on Tally.

Debiting and crediting each and every individual accounts for every transaction. It set every time consuming. This is over ground that debit corresponding credit and sometimes credit corresponding debit in a subsidiary book of accounts which is known as Journal book and Journal Accounts. Journal Accounts are posted through voucher entry.

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