Learning Tally in easy steps(Part I)t
Before we begin,
we need to know the Basic Accounting Concepts,prior to start working with TALLY. This would definitely help in easier understanding of TALLY and several ACCOUNTING FUNDAAS...
What is Accounting?
Accounting can be defined as a process to maintain routine transactions in any field systematically. Maintenance helps us in following ways:
1. Future Prediction : i.e. one can judge how its business is going on and what measures can be taken out for the progress and betterment of it.
2. Error and Fraud Tracing: Systematic and Regular maintenance helps us to find out INVALID or ILLEGAL transactions or any kind of FRAUDS.
What are Account and Accounts?
Account is the individual entity which takes part in your business transactions. Account is also known as LEDGER and खाता in Hindi
Accounts or Accounting books are actually a collection of Account (Ledger) which are of same working Nature, as per Accounting Rules. Accounts are referred to as खाता बही in Hindi
You must have encountered with a term TRANSACTION several times while going through text written above.Now we need to understand, what actually transaction is?
What is Transaction?
Transaction can be defined as occurrence of business event. It is a process in which there are atleast two participant entities among which one is GIVER and other is TAKER. Transaction is also referred to as लेन देन
GIVER, is the one which is reducing with some amount . Thus, giver is always credited
TAKER, is the one which is increasing with the same amount with which GIVER is reducing. Thus, TAKER always gets debited.We shall now discuss Debit and Credit.
What is DEBIT and CREDIT?
Debit and Credit are the two base terms in a Accounting System. Technically,
DEBIT is "What Comes In"
and,
CREDIT is "What Goes Out"
Practically, it can be said that Ledger/Account whose value is reducing because of any transaction,will always be CREDITED i.e. 'CR' (standard notation for Credit)
Also, Ledger whose value is increasing because of transaction, will be debited i.e. 'DR' ( standard notation for Debit)
Next>> Accounting Life Cycle... Tomorrow
we need to know the Basic Accounting Concepts,prior to start working with TALLY. This would definitely help in easier understanding of TALLY and several ACCOUNTING FUNDAAS...
What is Accounting?
Accounting can be defined as a process to maintain routine transactions in any field systematically. Maintenance helps us in following ways:
1. Future Prediction : i.e. one can judge how its business is going on and what measures can be taken out for the progress and betterment of it.
2. Error and Fraud Tracing: Systematic and Regular maintenance helps us to find out INVALID or ILLEGAL transactions or any kind of FRAUDS.
What are Account and Accounts?
Account is the individual entity which takes part in your business transactions. Account is also known as LEDGER and खाता in Hindi
Accounts or Accounting books are actually a collection of Account (Ledger) which are of same working Nature, as per Accounting Rules. Accounts are referred to as खाता बही in Hindi
You must have encountered with a term TRANSACTION several times while going through text written above.Now we need to understand, what actually transaction is?
What is Transaction?
Transaction can be defined as occurrence of business event. It is a process in which there are atleast two participant entities among which one is GIVER and other is TAKER. Transaction is also referred to as लेन देन
GIVER, is the one which is reducing with some amount . Thus, giver is always credited
TAKER, is the one which is increasing with the same amount with which GIVER is reducing. Thus, TAKER always gets debited.We shall now discuss Debit and Credit.
What is DEBIT and CREDIT?
Debit and Credit are the two base terms in a Accounting System. Technically,
DEBIT is "What Comes In"
and,
CREDIT is "What Goes Out"
Practically, it can be said that Ledger/Account whose value is reducing because of any transaction,will always be CREDITED i.e. 'CR' (standard notation for Credit)
Also, Ledger whose value is increasing because of transaction, will be debited i.e. 'DR' ( standard notation for Debit)
Next>> Accounting Life Cycle... Tomorrow
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