Tally Question No.1 Create a new company

Question : Write the steps to create a new company in Tally and also explain the all reliable fields in company creation window.
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Answer: Every business has no. of financial transactions, as a human being we could not remember all of them. To overcome this problem we used to record all business transactions in books. As technology is developing we are using computers in every area.

Tally is an application package which is used to record and analyze all business transactions in computer. To work with this package we need Windows operating System in our computer.

To record transactions in Tally, first we need to create Companies for whose transactions to be entered. Suppose as a consultant if want to maintain number of companies data, we need to create separate companies.

To create a company we have to follow the steps giving hereunder:

1.     By Double clicking the Tally Icon on desktop, it opens the Tally screen.

2.     The gateway of Tally Screen divides into four areas

Ø Title area : Shows version No. Date, Time etc.,

Ø The main area : List of selected Companies etc.,

Ø Calculator Area : To done mathematical calculations

Ø Button bar : Displays Commands to be used

3.     The names of the companies already created will displays on the main area’s left part. In the right part of the main area there is a menu called Company Info.

4.     Click on Create Company. It will display a dialog box.

5.     We have to fill the required fields

6.     After entering all the information it will display ‘Accept Yes or No?’ dialog box.

7.     Click on Yes Button to save all the information and it will creates the company

The Following are the various details required to create a company.

1.     Directory: Company’s data will be saved in a directory, for this it is required to give the path of the Data directory. Path is the location of the directory. By default Tally creates its data directory at C:\Tally\data. We can the change the default path by pressing backspace key and enter a new path. Internally Tally Names its directories like 001, 002.

2.     Name: Here we have to give the name of the company for whose books are to be opened. For Eg. XYZ Company Ltd.,

3.     Mailing Name and Address: Here we can enter the mailing address of the company. It can be entered in multiple lines also.

4.     E-mail Address: This is optional, if we want we can enter it.

5.     Local Sales Tax Number: Here we have to enter the Sales tax number allotted to the company by the state Govt.( if available)

6.     Inter state Tax Number: Type the number if available which was allotted by Central Govt..

7.     Income tax Number: Type the number allotted by the Central Govt to the company if it available.

8.     Currencey Symbol: Type the base currency symbol like Rs. $ etc. In India it will be Rs.

9.     Maintain: We can maintain two types of Accounts

o    Accounts Only: To maintain Accounts Transactions only

o    Accounts-cum-Inventory: To maintain the Inventory transaction as well as Accounts transactions.

10.   Financial Year from: Type the Financial Year of the country for Eg: 2005-06

11.   Books beginning from: Tally assumes that this period will be the same as Financial Year , if we want we can change it. Suppose company books begins from July 2006, then the date will be 01-07-2006.

12.   Tally Valut Password: To avoid unauthorized persons to operate/enter and view our company transactions we can maintain data in encrypted form(Unrecognizable form). By typing the password authorized persons only can view and record/enter the information. As administrator we have give the Password for it.

13.   Use Security Control: We can define and maintain security control layers by classifying the Supervisor rights and normal user rights. Type Yes to maintain Security control , other wise Type No.

14.Basic Currency Info: In this area we have to enter currency formal name, Decimal Points etc., information