Journal Entries

Journal entries are the basic recordings of business transactions in accounting. They are used to record the financial transactions of a company in chronological order. The journal entries consist of two or more accounts and are recorded in the general journal. Each entry consists of a debit and a credit. Debit and credit represent the increase or decrease in the balance of an account. The sum of all debits must be equal to the sum of all credits in a transaction.

Here is an example of a journal entry:

Date: January 1, 2023

Description: Purchased merchandise on credit from ABC Inc.

Account debited: Merchandise inventory (Asset account)

Account credited: Accounts payable (Liability account)

Amount: $10,000


Ledger Creation

To create a ledger in an accounting software like Tally, follow these steps:

  1. Open Tally software and go to the Gateway of Tally.
  2. Click on “Accounts Info” from the menu options.
  3. Select “Ledgers” from the sub-menu options.
  4. Click on “Create” under the “Single Ledger” option.
  5. Enter the name of the ledger you want to create.
  6. Select the appropriate group to which the ledger belongs to, from the list of groups displayed.
  7. Enter other required information, such as the address, phone number, email ID, PAN number, and GSTIN, if applicable.
  8. Save the ledger by pressing “Enter” or by clicking on the “Yes” option.

Voucher Entries

To make voucher entries in accounting software such as Tally, follow these steps:

  1. Open the software and create a new voucher entry screen.

  2. Select the type of voucher you want to create, such as cash or bank.

  3. Enter the details of the transaction, such as the date, the party name, the amount, and the account head.

  4. Verify the information and ensure that it is accurate.

  5. Save the voucher entry.

  6. Repeat the process for all other transactions.

Features & Shortcuts of Tally Prime

Tally Prime is a popular accounting software used by businesses and accounting professionals. Some of the features and shortcuts of Tally Prime are:

1. Multi-lingual support

2. Flexible and customizable

3. Remote access

4. Automatic bank reconciliation

5. Shortcut keys

6. Inventory management

7. GST compliance

8. Data security

9. Tally.NET

10. Drill-down reports