Restore means return to its original, usable and functional condition. Tally.ERP 9 allows you to restore data from one storage media to another.
The user must ensure the following points before restoring the data backup:
1.Do not restore old or irrelevant data.
2.Do not restore data from a damaged media.
3.Do not restore data in the same folder as the existing data, since it may overwrite the existing data.
To restore the back-up taken on another media, execute the following steps:
Go to Gateway of Tally > Press F3: Company Info
1.Select Restore.
2.In the Restore Companies on Disk screen provide the following paths:
3.Destination – is the folder where the backup data is restored.
4.Source – is the folder which contains the backup data files, it can be a folder on the same device on another device connected to the computer.
Note: The source and the destination paths displayed in this screen are those which were last used.
5.Select the name of the company from List of Companies to restore the data. The user can select one or more companies from the List of Companies to restore the data.
6.Accept to continue restoring the data.
7. The Restore Companies screen displays the status of data being restored.
Data on the computer is vulnerable to different types of threats and any data lost cannot be recovered. Hence, there is a need to store data at a different location by taking a backup.
It is advisable to take data backup at frequent intervals as per the policies laid down by the organization and also ensure that the data backup is secured logically and physically.
Back up of data can be carried out by executing the following steps:
Go to Gateway of Tally > Press F3: Company Info or Press Alt+F3
1.Select Backup
2.In the Backup Companies on Disk screen, by default the cursor is at Name of Company, press Backspace to change the Source or the Destination.
3.Source – it is the source folder that contains data for which backup has to be taken, by default it is the Data folder of Tally.ERP 9
4.Destination – it is a folder or an external device (pen drive/Portable Hard Disk etc.,) connected to the same or another computer where the data backup has to be stored.
3.Select the companies whose backup has to be taken from the List of Companies. To stop selecting the companies, select End of List.
The first step to get started in Tally.ERP 9, is to Create a Company. The initial screen appears as shown:
The Gateway of Tally screen is separated into six sections, namely Horizontal Button Bar, Main Area (Ctrl+M), Bottom Pane, Calculator Area (Ctrl+N), Task Bar and Button Bar.
The elements of the Gateway of Tally screen are explained below:
TITLE AREA
Title Area contains the Tally Copyright and Tally website link. You can access the Tally website directly from the Tally screen. You must have access to the Internet and Internet Explorer Web browser installed on your computer.
Tally logo is displayed at the centre of the Title Area.
The Product type (Tally Gold, Tally Silver, Tally Bronze or Educational) and Tally Serial Number appears on the upper-right corner. The software serial number is usually a unique number.
HORIZONTAL BUTTON BAR
The Buttons, Print (Alt+P), Export (Alt+E), E-mail (Alt+M), Upload (Alt+O), Language (Ctrl+L), Keyboard (Ctrl+K) and Help (Alt+H) can be seen in the Horizontal Button Bar.
BOTTOM PANE
The Bottom Pane contains the Version number, Release details (every time a new release of Tally is made, it is identified with a different release name like Release 3.14) and the Current Date (the date configured in the computer). The name of the day, date, month and year is displayed in DD, MM and YYYY format on the right-hand side.
System time (the time configured in the computer) appears on the lower-right corner in Hour: Seconds: Minutes (HH/MM/SS) format.
The Path appears in the lower left corner in the Bottom pane.
CLOSE BUTTON
The Close Button in the upper right corner functions similar to the use of ‘Esc’ in Tally. It brings you to back to the Gateway of Tally from any screen.
MINIMIZE BUTTON
The Minimize button performs the standard Windows Operating System’s function (Windows 95 onwards), allowing you to minimize Tally and work on other applications. To restore Tally, click on the Tally icon on the taskbar.
MAIN AREA (GATEWAY OF TALLY)
The Main Area is separated into two:
1.Left-hand side area
2.Right-hand side area
The left-hand side provides information on Current Period, Current Date and List of Selected Companies (Name of the company and the date when last entry has been made).
The right-hand side displays the Company Information menu such as Select a Company, Create a Company, Backup a Company or Restore a Company and so on.
HOT KEYS
Hot keys are capitalized and are red in colour on all the menu screens. Using the Hot Keys in the Company Info Screen will take you to that particular screen or display the sub - menus within that Option.
CALCULATOR AREA
Press [Ctrl + N] to activate the calculator. Calculator Area is used for calculator functions. Any type of independent calculation can also be done using the calculator.
BUTTON BAR
The buttons are designed to make the work easier and faster and vary from one screen to another based on the screen functionality. They appear on the right hand side of the Tally screen and the inactive buttons are greyed out. You can either click these buttons or press the shortcut keys to access the relevant screen.
The following are some of the buttons and their functions:
Help (Alt+H) – To access Tally's online context-sensitive help
F1: Select Cmp – To select the company from the List of Companies and access data from other data directories on the local system or through the network. You can also access the Directory field by pressing [Backspace].
F12: Configure – To access the configuration settings to manage the information entered in Tally.
Buttons where a character or function key is underlined indicates that you have to press underlined character or the function key along with [ALT] key.
Buttons where a character or function key is double underlined indicates, you have to press the character or the function key along with [CTRL] key.
·F1: Press the shortcut function key [F1] to select a company
·F1: Press [ALT+F1] to shut a company
·F8: Press [CTRL+F8] to select the Credit Note voucher
·Ctrl+M: Press Ctrl+M to access the Gateway of Tally.
·Ctrl+N: Press Ctrl+N to access the Calculator/ODBC Server frame
Gateway of Tally is the screen that appears on selecting a company. The Gateway of Tally menu differs based on the type of company selected. An Accounts Only Company has a different Gateway of Tally menu from that of an Accounts-with-Inventory Company.
In this session we will explain some common terms and touch upon the basic concepts of Accounting as that may help you to understand the later chapters better. When you talk about Accounting, it will be helpful if you know about Debit and Credits, Assets and Liabilities, Expenses and Incomes, so that you are able to prepare and maintain accounts systematically and correctly.
WHAT IS ACCOUNTING
Accounting is the language of business. American Institute of Certified Public Accounts have defined ‘Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in pat at least, of a financial character and interpreting their result thereof’’.
·Accounting involves
·Recording
·Classifying
·Summarizing
·Interpreting financial transactions
·Analyzing Information
NEED FOR ACCOUNTING
In a business organization, innumerable monetary transaction takes place. Accounting keeps a systematic record of such transactions and summarizes them through entries in various accounts. A clear picture of functioning of the business emerges from ‘Accounting. Accounting revels what the Business own and owes, Profit or Loss.
FUNCTIONS OF ACCOUNTING
Accounting has two distinct but allied functions, Historical and Managerial.
The Historical function is related to recording classifying and summarizing the transactions. The reporting is done at standard periodical interval as per convention and statute (like P/L Statement, Balance Sheet etc)
The managerial function relates to comparing, analyzing, and appraising the performance. For the purpose of compilation, all monetary events are recognized as Transactions and classified into various Account heads. The related account heads are then summarized into significant groups so that interpretation becomes possible. Utility of accounting information is greatly increased when it is computed in systematic manner and financial statements are prepared at periodical intervals.
METHODS OF ACCOUNTING
The two methods of accounting system that is in vogue:
·Single Entry System
·Double Entry System
SINGLE ENTRY SYSTEM
This system is based purely on cash accounting, i.e., accounted for when money is received or paid. Only cash transactions are taken into account and all credit transactions and accruals are omitted. Normally, only government accounting is done on this basis and commercial organization does not follow this system.
Ex: A building is constructed by a Contractor, final measurement taken and Bill prepared on 10th Feb 2000; the bill is paid on 20th Apr 2000.
In a single entry system, the transaction is recorded only on 20th April 2000 and the accounts of Financial Year 1999-00 (April’99-March, 2000) will have no effect for the transaction.
DOUBLE ENTRY SYSTEM
In this system, both cash and credit transactions are recognized. All commercial organizations follow this system. A cost incurred is duly accounted irrespective of whether it is paid or not during the accounting period. Additionally, all transactions shall have dual aspects and Debits and Credits must be equal. For all practical purposes, Double Entry System is the accepted method of accounting.
Ex: In the above case, Building Account will be debited and Contractor account will be credited in the books for FY ’99-00, to reflect the transaction when the cost incurred (i.e., on 10.02.2000). Again in FY 2000-01 on 20-04-00, the transaction will recorded reflecting payment to the Contractor.
USERS OF ACCOUNTING INFORMATION
People who have direct or indirect interest in the organization like owners (proprietor, partners or shareholders), intending investors, Creditors, Employees, Financial Institutions, Banks, Lenders, Management and Financial analysts, Government agencies, are eager to know its financial status. Since the same information is shared by different classes of users, standardized by different classes of users standardized Accounting concepts and principles were evolved to ensure that accounting information serves needs of various users.
To add creditability to the results, the financial statements are required to be verified and attested by professional Accountants who perform the tasks of Auditing and express their opinion on the financial statements.
BOOKS OF ACCOUNTS: MANUAL SYSTEM
Before we start looking into a computerized Accounting system, it would be prudent to have a look at the Manual Accounting practice being followed by generations as computerized Accounting is based on Manual Accounting.
The books of accounts maintained by a business may be conveniently classified as follows:
CASH BOOK
The term Cash is used in broader term, it includes Cash and Bank. Cash Book records all receipts of and payments in Cash & though Bank instruments.
(Ex: Cheque, Draft, Pay order etc)
Deposits into bank accounts maintained by the business, withdrawals from such accounts are also recorded in the Cash Book.
A Cashbook, which is used to record both cash and bank transactions, is referred to as a Two-column Cashbook.
JOURNAL BOOK
All non-cash transactions are recorded in Journal. The journal is used as the book of all transactions, which cannot be recorded in the Cash Book. For practical convenience, much Business organization maintains a number of Subsidiary Books for Journal, such as
·Purchase Book – is used to record Purchase transactions in Credit.
·Purchases Return Book (Debit Note Register) - is used to record Purchases return transactions
·Sales Book – records all Credit Sales transactions.
·Sales Returns Book (Credit Note Register) – records all Sales Returns.
·Journal Proper – records all such non-cash transactions that can not be entered in Purchase, Sales, Purchase Return or Sales Return books.
GENERAL LEDGER
Ledger is a device for classifying all information recorded in the Cash Book & Journal, according to account heads (called Ledger Accounts). Each Ledger Account has two sides, namely Debit and Credit side, Account heads debited in the primary books are posted in the debit side of the Ledger and account heads credited in primary books are posted in the credit side of the Ledger. Ledger reveals all transactions related to individual accounts and difference between debit and credit side is the closing balance for the Ledger as on that date.
The recording of transactions in the Books of Accounts and classifying into Ledger may be represented through following diagram.
CLASSIFICATION OF ACCOUNTS
The accounts maintained in the General Ledger of any organization may be broadly classified as under:
TYPES OF ACCOUNTS
Personal Accounts
Accounts related to an Individual, Body Corporate or Institution, which are recognized as a person.
The dual aspect concept requires that when a transaction occurs, both the Debit and Credit elements should be recorded in the books of accounts. To ensure a standardized method of recording of transactions, the rules for Debit and Credit of accounts were evolved. The GOLDEN RULES goes with the classification of accounts and may be stated as under:
Personal Accounts
Debit: The Receiver
Credit: The Giver
Real Accounts
Debit: What Comes in
Credit: What Goes out
Nominal Accounts
Debit: All Expenses and Losses
Credit: All Incomes and Gains
Debit is expressed with a sign Dr and Credit is shown as Cr.
EFFECTS OF DEBIT & CREDIT
CLASSIFICATION
DEBIT
CREDIT
NORMAL BALANCE
Assets
Increase
Decrease
Debit
Liabilities
Decrease
Increase
Credit
Capital
Decrease
Increase
Credit
Expenses
Increase
Decrease
Debit
Income
Decrease
Increase
Credit
FINANCIAL STATEMENTS
TRIAL BALANCE
As explained, all monetary events are classified into various Account Heads that are periodically summarized. This periodical summary is known as Trial Balance. In Double Entry System, for every transaction, Debit aspect always equal to Credit aspect, so in Trial Balance also, Debit and Credit totals are balanced. Trial Balance checks the accuracy of the books of accounts. In other words, Trial Balance is the closing balance of all Accounts for a specific date.
FINAL ACCOUNTS STATEMENTS
From trial balance, the following financial statements are made for interpreting Financial Transactions.
Profit & Loss (or Income and Expenditure Statement) for a specific period consisting of Nominal Accounts to reflect the Profit or Loss for the period. Trading Organizations normally split it into two components, namely Trading Account, Profit & Loss Account.
LIABILITIES
ASSETS
Particulars
Amount
Particulars
Amount
Capital
Fixed Assets
Loans Taken
Current Assets
Current Liabilities
Total
Total
Trading Account shows Gross Profit (or Gross Loss) earned by trading activities (for computation of Gross Profit, Sales and Closing Stock is considered as Income, Opening Stock, Purchases and Direct Expenses are treated as Expenses. Excess income over expenditure is the Gross Profit). Profit & Loss Account reveals Net Profit Income; Net Profit is computed by deducting all Indirect Expenses there from).
Balance Sheet (or Statement of Affairs) as on the last date of the period consisting of Real and Personal Accounts revealing what the organizations owns and what it owes on the specific date.
At the ends of financial period, Journal entry is passed to transfer closing balance of all nominal accounts to Profit & Loss Account and closing balance of all nominal accounts becomes zero.
Dr.
Income Accounts (equal to the credit balance
Cr.
Profit & Loss Accounts
Dr.
Profit & Loss Account
Cr.
Expenses Account (equal to the debit balance)
MANUAL vs. COMPUTERIZED ACCOUNTING
MANUAL ACCOUNTING
In manual system, you first create ledgers; carry forward previous year’s closing balance as Opening Balance for the current year. Record cash transaction in Cash Book and non-cash transactions in Journal (or subsidiary books as explained earlier), then amounts from Cash Book and Journal are posted into respective ledgers.
Whenever you need to know balance of any ledger, you are required to total amounts in both Debit and Credit columns of the ledger and compute the difference to derive the closing balance for the Ledger as on that date. To prepare Final Accounts (Profit & Loss Account, Balance Sheet) for any period, you have to compute closing balance of ledgers for the period and then prepare a Trail Balance. You pass Journal entries to transfer balances of Nominal account to Profit & Loss Account, carry over Real & Personal ledger balances to Balance Sheet.
Next year, when you create New Year books, again you create all the ledgers afresh and enter opening balance (a sheer repetition and monotonous job).
COMPUTERIZED ACCOUNTING
When you opt for Computerized Accounting first time, you have to create all the Ledgers and enter opening balance (in subsequent years you need not to create the Ledgers and enter opening balances, it would be done on it’s own by the computer carrying over balances of Real and Personal accounts) and place them under proper Group at this stage. Thereafter, you enter all transactions in Vouchers (different types of Vouchers to record diverse nature of transactions). That’s all you have to do and everything else (like posting to Ledger, preparation of Trial Balance, Final Accounts etc.) is done by the computer.
Practical experience shows that it is almost impossible to find software that can meet all the requirements, yet is simple to use. The software should make a balance to address most of the common requirements, to be useful for practical purpose.
In light these characteristics and requirements of a good Integrated Accounting System, we now discuss TALLY, a versatile Integrated Accounting System.
