VASAVI JNANA PEETHA EVENING COLLEGE

Vijayanagar,Bangalore-40
Subject:Computer Accounting With Tally Prime
MODULE 3
INTRODUCTION TO TALLY PRIME AND TRANSACTION TO TALLY

1)who discovered tally prime?

Tally Prime is a software developed by Tally Solutions, an Indian software company. The
company was founded in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

2)What is tally prime? What are the features of Tally Prime?

Tally Prime is a comprehensive business management software designed specifically for
small and medium-sized businesses. It's an all-in-one solution that helps you manage various
aspects of your business, including accounting, inventory, banking, taxation, and more..

3)What are the features of Tally Prime?

Some of the key features of Tally Prime are:
- Accounting and Invoicing: Create professional-looking invoices, manage accounts payable
and receivable, and track your business's financial performance.
- Inventory Management: Manage your stock levels, track inventory movement, and
optimize your inventory processes.
- Banking and Reconciliation: Integrate your bank accounts, reconcile statements, and
manage cash flow.
- Taxation and Compliance: Manage tax calculations, file returns, and ensure compliance
with regulatory requirements.
- Reporting and Analytics: Access a wide range of reports to analyse your business
performance, make informed decisions, and improve your operations.
- Customization and Integration: Customize Tally Prime to suit your business needs, and
integrate it with other applications and services.

4)how to Downloading and installation of tally prime?

Downloading Tally Prime:
 Visit the Tally Website: Go to the official Tally website.
 Click on Download: Click on the "Download" button.
 Select Tally Prime: Select Tally Prime from the list of available products.
 Choose Your Operating System: Choose your operating system (Windows or
macOS).
 Download the Installer: Download the Tally Prime installer.

Installing Tally Prime:

 Run the Installer: Run the downloaded installer.
 Accept the License Agreement: Accept the license agreement.
 Choose the Installation Location: Choose the installation location.
 Select the Components: Select the components you want to install (e.g., Tally Prime,
Tally Server, etc.).
 Install Tally Prime: Install Tally Prime.

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  Activate Tally Prime: Activate Tally Prime using your license key.

5)Explain Company creation in tally prime?

Creating a company in Tally Prime is the first step to start managing your business
transactions. Here's a step-by-step guide:
1. Launch Tally Prime: Open the Tally Prime software on your computer.
2. Select "Create Company": On the home screen, choose the "Create Company"
option. If you already have a company open, press Alt + K (Company) > Create.
3. Enter Company Details:
o Name: Provide the name of your company.
o Mailing Name & Address: Enter the name and address to be printed on
invoices and reports.
o State & Country: Select the appropriate options.
o Contact Details: Add phone numbers, email addresses, and website if needed.
4. Specify Financial Year: Set the financial year from which you want to maintain
accounts.
5. Set Base Currency: Choose the primary currency for transactions.
6. Enable Features: Press F11 to configure features like GST, inventory, payroll, and
more, based on your business needs.
7. Security Settings (Optional): Set up user access controls and passwords for data
security.
8. Save the Company: Press Ctrl + A or click "Accept" to save the company details.

6)Write a note on Getting started with Tally Prime.

Getting started with Tally Prime is a straightforward process. Here's a simple guide to help
you begin:
1. Download and Install: Visit the official Tally Solutions website to download the
installer. Follow the installation steps I mentioned earlier.
2. Create a Company: After installing, launch Tally Prime and set up a new company.
This involves entering your business details, financial year, and enabling relevant
features.
3. Configure Features: Press F11 to enable features like GST, inventory management,
payroll, and others based on your business requirements.
4. Learn Basic Navigation: Explore the intuitive menu and dashboard to get familiar
with functions like accounting, inventory, and reporting.
5. Record Transactions: Start entering daily transactions like sales, purchases, and
payments. You can record entries in vouchers provided by Tally Prime.
6. Generate Reports: Tally Prime offers various financial and inventory reports. Use
them to track the health of your business.
7. Back Up Your Data: Ensure you regularly back up your company data for safety.

7) Write a note on shut a company in tally prime

In Tally Prime, "shutting" a company means closing the company's data temporarily without
deleting it. This is typically done to focus on other company data or exit from the software.
Here's how you can shut a company:
1. Open Tally Prime: Launch the software and ensure the desired company is displayed
on the screen.
2. Shut Company Option:

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 o Press Alt + F1 or navigate to Data > Shut Company in the Gateway of Tally
menu.
o A list of currently open companies will be displayed.
3. Select the Company: Choose the company you want to shut from the list.
4. Confirm Action: Once selected, the company will be temporarily shut, and you can
continue working with other company data.
Shutting a company does not delete or alter its data; it simply closes it temporarily within the
session. The company can be reopened whenever needed.

8)Write a note on select a company in tally prime.

In Tally Prime, selecting a company allows you to access and work on the company's data.
Here's how you can select a company:
1. Open Tally Prime: Launch the software on your computer.
2. Gateway of Tally: On the home screen, go to the "Select Company" option.
3. Choose from the List:
o Tally Prime will display a list of all available companies saved on your
system.
o Use the arrow keys or mouse to select the desired company.
4. Open the Company:
o Once you select the company, it will load, and you can start working on its
data.
o Ensure the correct period is selected if you're dealing with specific
transactions or reports.

9) Write a note on alter company details in tally prime.

In Tally Prime, altering company details allows you to modify previously entered information
about a company, such as its name, address, contact details, or financial year. Here's how you
can alter company details:
1. Open Tally Prime: Launch the software on your system.
2. Go to Alter Company:
o Press Alt + K (Company Menu) > Alter.
o A list of companies available on your system will appear.
3. Select the Company: Choose the company whose details you want to modify.
4. Make the Changes:
o Update the required fields, such as name, address, state, GST details, or
financial year.
o You can also enable or disable features like inventory, payroll, taxation, etc.,
by pressing F11.
5. Save Changes: Once done, press Ctrl + A or click "Accept" to save the changes.

10) Write a note on company features and configurations in tally prime.

Company features and configurations in Tally Prime allow businesses to customize the
software settings to match their specific operational requirements. These settings ensure
seamless functionality, compliance, and efficiency. Here's an overview:
Key Company Features
1. Accounting Features: Manage financial transactions, budgets, and multi-currency
accounting effortlessly.

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 2. Inventory Management: Track stock levels, manage godowns, batch-wise inventory,
and stock valuation.
3. Taxation Features: Enable compliance with GST, VAT, TDS, and other tax
regulations.
4. Payroll Management: Configure employee details, salary structures, and statutory
deductions like PF and ESI.
5. Invoicing Features: Customize invoice formats, track receivables, and manage
billing processes.
Configurations in Tally Prime
1. Voucher Configurations:
o Customize numbering and permissions.
o Define types of vouchers for specific transactions.
2. Tax Configurations:
o Set GST details, tax rates, and HSN codes for items.
o Ensure accurate tax calculations and returns.
3. Security Features:
o Configure user roles and access control.
o Enable password protection for sensitive data.
4. Reporting Configurations:
o Tailor reports to display relevant financial and operational information.
o Adjust formats for export to Excel or PDF.

CHARTS OF ACCOUNTS

11)What is ledger?Explain
A ledger is a crucial component of accounting that acts as a record for maintaining the
financial transactions of a business. It organizes and categorizes transactions under specific
accounts to ensure proper tracking and reporting.
Features of Ledger
Classification of Transactions:
 Ledgers categorize transactions into accounts such as assets, liabilities, income, and
expenses.
Systematic Recording:
 It records every transaction systematically under the appropriate ledger account (e.g.,
"Sales Account," "Cash Account").
Debit and Credit Tracking:
 Each ledger account tracks both debit and credit entries, ensuring that the accounting
equation (Assets = Liabilities + Equity) remains balanced.
Ease of Reconciliation:
 Ledgers make it easy to reconcile accounts, such as matching bank transactions with
bank statements.
Basis for Financial Statements:
 Ledger data is used to prepare critical financial statements like the balance sheet,
profit & loss statement, and cash flow statement.
Flexibility in Grouping:
 In systems like Tally Prime, ledgers can be grouped for better analysis and reporting
(e.g., "Sundry Debtors" under "Current Assets").

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Audit Trail:
 Maintains an accurate history of all financial transactions, essential for audits.
Opening and Closing Balances:
 Ledgers include details of opening balances carried forward from the previous period
and closing balances for the current period.

12)Write a note on ledger creation in tally prime.

Creating a ledger in Tally Prime is essential for recording and managing business
transactions. Here's a guide on how to create a ledger:
Steps to Create a Ledger
1. Open Tally Prime:
o Launch the software and select your company.
2. Access Ledger Creation:
o Go to Gateway of Tally > Create > Ledger, or press Alt + C while in a
voucher entry screen to create a ledger.
3. Enter Ledger Details:
o Name: Assign a name to the ledger (e.g., "Cash Account" or "Sales").
o Under Group: Select the appropriate group for the ledger (e.g., "Bank
Accounts," "Indirect Expenses," "Sales Accounts").
o GST Details (if applicable): Configure GST settings if the ledger involves
taxable transactions.
o Opening Balance: Enter the opening balance if the ledger carries forward a
balance from the previous period.
4. Enable Additional Features:
o Depending on the ledger type, you can enable options like cost center tracking,
inventory integration, or interest calculations.
5. Save the Ledger:
o Press Ctrl + A or click "Accept" to save the ledger.

13) Write a note on group creation in tally prime.

Group creation in Tally Prime is an essential feature that allows users to organize and
categorize ledgers systematically. Groups help in classifying transactions and generating
meaningful reports. Here's how to create a group in Tally Prime:
Steps to Create a Group in Tally Prime
1. Open Tally Prime:
o Launch the software and select the company where you want to create the
group.
2. Access Group Creation:
o Go to Gateway of Tally > Create > Group, or press Alt + C while in the
Ledger Creation or Alteration screen to create a group on the fly.
3. Enter Group Details:
o Name of the Group: Provide a name that defines the purpose of the group
(e.g., "Marketing Expenses" or "Fixed Assets").
o Under: Specify the parent group under which this group will fall. For
example:
 Marketing Expenses may fall under "Indirect Expenses."
 Fixed Assets may fall under "Assets."

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 o Nature of Group: Decide whether the group is "Primary" or a sub-group
under an existing one.
4. Enable Settings:
o Configure specific features such as calculations (e.g., percentages, taxes) if
required for this group.
5. Save the Group:
o Press Ctrl + A or click "Accept" to save the group.

14) Write a note on deletion of ledgers and group in tally prime.

Deleting ledgers and groups in Tally Prime is a straightforward process, but it requires
attention to ensure no linked transactions are affected. Here's a guide:
Steps to Delete Ledgers
1. Open Tally Prime: Launch the software and select the company containing the
ledger to be deleted.
2. Access Ledger Alteration:
o Navigate to Gateway of Tally > Alter > Ledger or press Alt + D.
o A list of ledgers will be displayed.
3. Select the Ledger: Choose the ledger you want to delete.
4. Delete Ledger:
o Press Alt + D within the ledger alteration screen to delete it.
o Confirm the deletion when prompted.
o Note: Ensure that the ledger has no pending transactions linked to it;
otherwise, Tally will not allow deletion.
Steps to Delete Groups
1. Access Group Alteration:
o Go to Gateway of Tally > Alter > Group or press Alt + D.
o Select the group you want to delete from the list.
2. Delete Group:
o Press Alt + D within the group alteration screen.
o Confirm the deletion.
o Note: Ensure there are no ledgers or sub-groups under the group before
deletion.

15) Write a note on creating inventory masters in tally prime.

In Tally Prime, Inventory Masters refer to the setup of items, stock categories, units of
measurement, and other inventory-related details that help you manage the stock and
inventory of your business. This feature allows you to efficiently track your stock, sales, and
purchases.
Types of Inventory Masters:
There are several types of inventory masters that you can create in Tally Prime, including:
1. Stock Items: These are the actual products or goods you deal with (e.g., books,
stationery, raw materials, finished goods).
2. Stock Categories: Used to classify and group similar stock items (e.g., Electronic
Goods, Furniture, etc.).
3. Units of Measurement: Defines the unit of measurement for a stock item (e.g.,
pieces, kilograms, liters).
4. Godowns: Locations where the inventory is stored (e.g., Warehouse 1, Store 2, etc.).

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Steps to Create Inventory Masters in Tally Prime:
1. Open Tally Prime:
o Launch Tally Prime and go to the Gateway of Tally.
2. Activate Inventory Features (if not already enabled):
o To create inventory masters, you need to ensure that inventory features are
enabled for your company.
o Go to Gateway of Tally > F11: Features > Inventory Features.
o Ensure that Inventory Management is set to Yes.
o If it's not enabled, press Yes to enable it, and press Enter to save.
3. Create Stock Item:
o From the Gateway of Tally, navigate to Inventory Info..
o Select Stock Items and then Create.
o You’ll be prompted to enter the details for the new stock item:
 Name of the Item: Enter the name of the stock item (e.g., Laptop, Pen,
etc.).
 Under: Select the appropriate group under which the item should be
categorized (e.g., Direct Expenses, Sales Accounts, etc.).
 Units of Measurement: Choose the unit of measurement for the item
(e.g., Pieces, Kilograms, Liters).
 Rate of the Item: You can enter the default rate for the stock item,
though this can be changed when recording transactions.
 GST Classification: If your business is GST-compliant, select the
appropriate GST rate for the item.
 Inventory Value Method: Select the method of inventory valuation
(e.g., FIFO, Weighted Average, etc.).
4. Create Stock Category:
o Go to Inventory Info. > Stock Categories > Create.
o Enter the name of the category (e.g., Electronic Goods, Raw Materials, etc.).
o This is useful for grouping similar items together for better inventory
management and reporting.
5. Create Units of Measurement:
o Go to Inventory Info. > Units of Measure > Create.
o Define the unit for your stock item, such as Piece, Kg, Liter, etc.
o This ensures consistency when recording transactions related to your
inventory.
6. Create Godowns:
o Go to Inventory Info. > Godowns > Create.
o Create godowns to specify locations where your inventory is stored (e.g.,
Warehouse 1, Retail Store, etc.).
o This helps track stock in multiple locations and allows you to record stock
movement accurately.

16)What are the Advantages of Creating Inventory Masters?

Streamlined Inventory Tracking: By creating inventory masters, you can easily track and
manage stock levels, sales, and purchases.
Accurate Stock Valuation: With inventory masters set up, Tally Prime automatically
calculates the value of your stock and tracks stock movements based on the valuation method
selected (e.g., FIFO, Weighted Average).

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GST Compliance: Inventory masters help ensure that GST is applied correctly to items
during transactions, making your business GST-compliant.
Efficient Reporting: With organized inventory masters, you can generate detailed reports for
stock movement, sales, and purchases, helping you monitor and control inventory efficiently.
Simplified Transactions: When inventory masters are created, you can easily record
transactions related to stock items without needing to enter repetitive details.

INTRODUCTION TO VOUCHERS IN TALLY PRIME

17)What is voucher?Explain.
In TallyPrime, a voucher is a document used to record financial transactions, serving as the
input for daily transactions and enabling the automatic generation of accounting, inventory,
and payroll reports based on the voucher type.

18)Explain different types of vouchers?

Tally Prime offers various types of vouchers to record different types of transactions
effectively.
Accounting Vouchers
1. Payment Voucher (F5): Used to record payments made.
2. Receipt Voucher (F6): Used for recording receipts of money.
3. Contra Voucher (F4): Used for transactions between cash and bank accounts (e.g.,
cash deposit, withdrawal).
4. Journal Voucher (F7): For adjustments, provisions, or non-cash transactions.
5. Sales Voucher (F8): Used to record sales transactions.
6. Purchase Voucher (F9): Records purchase transactions.
7. Debit Note Voucher: For purchase returns or adjustments.
8. Credit Note Voucher: For sales returns or adjustments.
Inventory Vouchers
1. Delivery Note: Used for outward stock movement.
2. Receipt Note: Used for inward stock movement.
3. Stock Journal: To record transfer of stock between locations or manufacturing
processes.
4. Physical Stock Voucher: For physical stock verification and adjustments.
Payroll Vouchers
1. Attendance Voucher: Records employee attendance details.
2. Payroll Voucher: Used for processing salary, deductions, and other employee
payments.
Manufacturing Vouchers
1. Bill of Materials (BOM): For manufacturing operations and inventory tracking.
These vouchers cater to varied business needs, making Tally Prime a comprehensive solution
for accounting, inventory, and payroll management.

19) Explain components of voucher entry screen in tally prime?

In Tally Prime, the Voucher Entry screen is a crucial component for recording
transactions.

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components of voucher entry screen
1. Voucher Type
- Displays the type of voucher being created (e.g., Sales, Purchase, Receipt, etc.)
2. Voucher Number
- Automatically generated by Tally Prime, or can be manually entered
- Unique identifier for each voucher
3. Date
- Date of the transaction
- Can be changed to a different date if required
4. Particulars
- Section where you enter the details of the transaction
- Includes fields for:
- Ledger account (e.g., Sales, Purchase, etc.)
- Debit/Credit amount
- Narration (optional)
5. Ledger Account
- Field to select the relevant ledger account for the transaction
- Can be selected from the list of existing ledger accounts or created anew
6. Debit/Credit Amount
- Field to enter the amount of the transaction
- Automatically updates the debit or credit side of the ledger account
7. Narration
- Optional field to enter a brief description of the transaction
- Helps in identifying the purpose of the transaction
8. Additional Details
- Section to enter additional details, such as:
- Bill-wise details (for sales/purchase transactions)
- Inventory details (for inventory-related transactions)
- Tax details (for tax-related transactions)
9. Buttons and Options
- Various buttons and options to:
- Save the voucher
- Cancel the voucher
- Print the voucher
- Export the voucher to Excel or other formats

20)Write a note on Accounting voucher.

Accounting Voucher in Tally Prime
In Tally Prime, an accounting voucher is a digital document that records a financial
transaction. It is a crucial component of the accounting process, providing a permanent record
of each transaction.

Types of Accounting Vouchers in Tally Prime

1. Sales Voucher (F8): Records sales transactions, including sales invoices and credit notes.
2. Purchase Voucher (F9): Records purchase transactions, including purchase invoices and
debit notes.
3. Receipt Voucher (F6): Records receipts, including cash and bank receipts.
4. Payment Voucher (F5): Records payments, including cash and bank payments.

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5. Contra Voucher (F4): Records transactions that affect both cash and bank accounts, such
as cash deposits or withdrawals.
6. Journal Voucher (F7): Records adjustments, corrections, or other transactions that affect
the financial statements.

Creating an Accounting Voucher in Tally Prime

1. Gateway of Tally: Press Alt + F3 or click on the Gateway of Tally button.
2. Accounting Voucher: Select the type of accounting voucher you want to create (e.g.,
Sales, Purchase, etc.).
3. Voucher Date: Enter the date of the transaction.
4. Particulars: Enter the details of the transaction, including the ledger account, debit/credit
amount, and narration.
5. Save: Press Enter to save the voucher.

21) Write a note on basic vouchers.

Payment Voucher (F5): Used to record payments made.
Receipt Voucher (F6): Used for recording receipts of money.
Contra Voucher (F4): Used for transactions between cash and bank accounts (e.g., cash
deposit, withdrawal).
Journal Voucher (F7): For adjustments, provisions, or non-cash transactions.
Sales Voucher (F8): Used to record sales transactions.
Purchase Voucher (F9): Records purchase transactions.
Debit Note Voucher: For purchase returns or adjustments.
Credit Note Voucher: For sales returns or adjustments.

22)Write a note on credit note and debit note in tally prime.

Credit Note
 Purpose: A credit note is issued when goods are returned by a customer, or when
there is an overcharge that needs to be refunded. It reduces the liability of the
customer.
 How to Record in Tally Prime:
1. Go to Gateway of Tally > Accounting Vouchers > Credit Note (Shortcut
Key: Ctrl+F8).
2. Select the customer ledger under "Party Name".
3. Choose the corresponding sales ledger.
4. Enter details like the item name, quantity, and amount.
5. Provide a narration for the adjustment.
6. Save the entry.
Debit Note
 Purpose: A debit note is issued when goods are returned to the supplier, or when
there is an undercharge that needs to be accounted for. It reduces the liability to the
supplier.
 How to Record in Tally Prime:
1. Navigate to Gateway of Tally > Accounting Vouchers > Debit Note
(Shortcut Key: Ctrl+F9).
2. Select the supplier ledger under "Party Name".
3. Choose the relevant purchase ledger.
4. Enter item details such as quantity and amount.

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 5. Add a narration explaining the reason for the debit note.
6. Save the entry.

23)Explain Double & single mode voucher Entry Inventory voucher in tally prime?
In Tally Prime, you can record inventory vouchers using two distinct modes: Single-entry
mode and Double-entry mode. These modes allow users to input data according to their
preference and complexity of the transactions.
1. Single-Entry Mode:-
 Description: In this mode, transactions are entered in a simplified, single-entry
format. Only one side of the transaction (e.g., either debit or credit) is visible at a
time, making it easier for beginners or those dealing with straightforward entries.
 Usage: Best suited for businesses handling simple inventory transactions, such as
stock inwards or outwards.
 Example:
o Recording a Delivery Note for goods sent to a customer.
o Recording a Receipt Note for stock received.

2. Double-Entry Mode:-
 Description: This mode displays both debit and credit sides of a transaction in the
voucher entry screen. It allows for comprehensive and detailed entry, making it
suitable for more complex transactions.
 Usage: Ideal for businesses that require intricate inventory accounting, such as
adjustments, inter-location transfers, or manufacturing entries.
 Example:
o Recording a Stock Journal for transferring stock from one location to
another.
o Adjusting inventory with a Physical Stock Voucher to reconcile system stock
with physical stock.

24) Explain basic vouchers like stock transfer,manufacturing,physical stock voucher?

The basic inventory vouchers in Tally Prime like Stock Transfer, Manufacturing, and
Physical Stock Voucher:
1. Stock Transfer Voucher:-
 Purpose: Used for transferring stock items between different locations or warehouses
within the same business.
 Key Features:
o Tracks movement of goods between locations.
o Maintains inventory accuracy for each location.
 How to Record:
1. Go to Gateway of Tally > Inventory Vouchers > Stock Journal.
2. In the voucher entry screen:
 Specify the Source Location and Destination Location.
 Enter the stock item details, including quantity and rate.
3. Save the entry to update stock balances.
2. Manufacturing Voucher:-
 Purpose: Records the process of converting raw materials into finished goods.
 Key Features:
o Tracks raw material consumption.

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 o Updates finished goods inventory.
o Supports Bill of Materials (BOM) to automate calculations.
 How to Record:
1. Enable the Manufacturing Journal in F11: Features > Inventory Features.
2. Create a Bill of Materials (BOM) for the finished goods.
3. Go to Gateway of Tally > Inventory Vouchers > Stock Journal and select
Manufacturing Journal.
4. Enter:
 Details of raw materials consumed.
 Quantity of finished goods produced.
5. Save the entry to reflect updates in inventory.
3. Physical Stock Voucher:-
 Purpose: Used to reconcile system stock with the actual physical stock after
verification.
 Key Features:
o Corrects discrepancies between system and actual stock.
o Updates stock quantities based on physical counts.
 How to Record:
1. Go to Gateway of Tally > Inventory Vouchers > Physical Stock.
2. In the voucher entry screen:
 Select the stock items.
 Enter the actual physical stock count for each item.
3. Save the entry to adjust inventory balances automatically.

25)Explain Accounts voucher with inventory transactions?

In Tally Prime, Accounts Vouchers with Inventory Transactions are used to record
transactions that affect both financial accounts and inventory levels.

Types of Accounts Vouchers with Inventory Transactions:

1. Sales Voucher with Inventory: Records sales transactions that affect inventory levels.
2. Purchase Voucher with Inventory: Records purchase transactions that affect inventory
levels.
3. Stock Journal Voucher: Records inventory movements, such as stock transfers or
adjustments.

Creating an Accounts Voucher with Inventory Transaction:

1. Gateway of Tally: Press Alt + F3 or click on the Gateway of Tally button.
2. Accounting Voucher: Select the type of voucher you want to create (e.g., Sales, Purchase,
etc.).
3. Voucher Date: Enter the date of the transaction.
4. Particulars: Select the ledger account and enter the transaction amount.
5. Inventory Details: Select the stock item and enter the quantity.
6. Save: Press Enter to save the voucher.

26)Explain invoice & voucher entry mode in tally prime?

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In Tally Prime, Invoice Entry Mode and Voucher Entry Mode are two approaches to
recording transactions. They cater to different needs and preferences, helping businesses
streamline their accounting and invoicing processes. Here’s a detailed explanation:
1. Voucher Entry Mode
 Description: In this mode, transactions are entered using accounting terminologies
like debit and credit. It focuses on ledger accounts and monetary details rather than
itemized data.
 Key Features:
o Suitable for those comfortable with accounting principles.
o Only ledger accounts and transaction amounts are entered.
o Simplifies recording of purely financial transactions (e.g., journal entries,
adjustments).
 Usage Examples:
o Recording a payment or receipt.
o Recording adjustments in a journal voucher.
 How to Use:
1. Go to Gateway of Tally > Accounting Vouchers.
2. Select the desired voucher type (e.g., Payment, Receipt, Journal).
3. Enter ledger names and amounts in the debit and credit fields.
2. Invoice Entry Mode
 Description: This mode is designed for itemized transaction details and is often used
in sales and purchase transactions. It includes fields for inventory items, quantities,
rates, and tax details.
 Key Features:
o Suitable for businesses dealing in goods or services requiring detailed records.
o Captures both inventory and accounting details in a single entry.
o Includes fields for items, GST or taxes, discounts, etc.
 Usage Examples:
o Recording a sales invoice issued to a customer.
o Recording a purchase invoice received from a supplier.
 How to Use:
1. Go to Gateway of Tally > Accounting Vouchers > Sales (or Purchase).
2. Switch to Invoice Mode using Alt+I.
3. Enter details such as party name, stock items, quantity, rate, and applicable
taxes.
4. Save the entry to update both inventory and accounting records.

27)explain Inventory Linked Accounts Ledger in tally prime.

In Tally Prime, an Inventory Linked Accounts Ledger is a ledger account that is linked to an
inventory item. This allows you to track the financial transactions related to the inventory
item.

Types of Inventory Linked Accounts Ledgers:

1. Stock-in-Hand Ledger: Tracks the value of inventory in stock.
2. Sales Ledger: Tracks sales transactions related to inventory items.
3. Purchase Ledger: Tracks purchase transactions related to inventory items.

Creating an Inventory Linked Accounts Ledger:

Yogesha S N
Asst Prof in CA with Tally
Vasavi Jnana Peetha Evening College Page 13
1. Gateway of Tally: Press Alt + F3 or click on the Gateway of Tally button.
2. Accounting Voucher: Select Ledger voucher type (or F1).
3. Create Ledger: Click on Create to create a new ledger account.
4. Ledger Name: Enter the name of the ledger account.
5. Group: Select the group to which the ledger account belongs (e.g., Current Assets, Current
Liabilities, etc.).
6. Inventory Link: Select the inventory item to which the ledger account is linked.
7. Save: Press Enter to save the ledger account.

Yogesha S N
Asst Prof in CA with Tally
Vasavi Jnana Peetha Evening College Page 14