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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)
To create a ledger in an accounting software like Tally, follow these steps:
To make voucher entries in accounting software such as Tally, follow these steps:
Open the software and create a new voucher entry screen.
Select the type of voucher you want to create, such as cash or bank.
Enter the details of the transaction, such as the date, the party name, the amount, and the account head.
Verify the information and ensure that it is accurate.
Save the voucher entry.
Repeat the process for all other transactions.
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
10. Drill-down reports