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Blog- Account Tally Course and its Importance

What is Account Tally Course and what is its Importance?


Prelude

Taxation

What is a journal?

A journal is the book of accounts where financial transactions are recorded from the source documents. As and when the transactions take place they are recorded on an actual basis.

What is journalising?

Journalising refers to the process of recording financial transactions also known as journal entries in the books of accounts. It is based on the Double Entry system of accounting. This system of bookkeeping or accounting has dual effects on every transaction that takes place. This stands for the fact that the Debit amount must be the same as the Credit amount for every transaction.

What is a Journal Voucher in Tally?

Every voucher needs a piece of documentary evidence like a Journal Voucher. In Tally ERP 9, Journal Voucher is used to record financial transactions other than cash and bank. A Journal Voucher records the transactions related to depreciation, provisions, purchase, and sale of fixed assets on credit, write-off balances, and adjustment entries. These vouchers can be traced in any accounting system. During an Audit, auditors generally use journal vouchers as part of the audit procedures. The nature of these transactions is routine.

The Importance of Journal Vouchers in Tally

Journal vouchers are extremely important in Tally owing to the manifold purposes that they serve. The following points would explain the benefits of Journal Vouchers –

To record non-cash transactions in the books of accounts

Transactions that do not involve a cash payment refer to non-cash transactions. Therefore we would count under this depreciation, profit or loss on fixed assets, provision for discount expenses, asset write-downs, and deferred income taxes.

Tax Return

To rectify any business transaction that was wrongly recorded in the books of accounts

There might be situations when transactions are wrongly recorded in the books of accounts. This may include incorrect input of debit or credit of accounts. Journal vouchers help in a reversal of the first entry using a journal entry in Tally ERP 9.

To record the transactions not recorded by other accounting vouchers in Tally ERP 9

All accounting vouchers record transactions of a specific type or nature. These activities are described as follows –

Types of Journal Vouchers

Depreciation voucher– this voucher records the depreciation expense on fixed assets for the year. Generally, we use a payment voucher to record an expense but here we use a Depreciation voucher as it is a non-cash expense.

Prepaid voucher– pre-paid voucher records all the pre-paid expenses that are paid during a year.

Fixed assets voucher– these vouchers refer to the payment of fixed assets during a year. Fixed assets purchased by cash are recorded as payment vouchers.

Adjustment vouchers– these vouchers record all the closing entries in a year. The chief purpose of these vouchers is to communicate an accurate and fair view of the finances of the company.

Transfer voucher– this involves the shifting of balances from one to another account. The transfer of materials from one warehouse to another can also be recorded.

Rectification voucher– the rectification entries of the Tally are recorded by these vouchers. The wrong entries made are corrected by these vouchers.

Provision voucher– this voucher refers to the booking of the provision of expenses on an estimation basis. Provisions are made for future contingent liability. To prepare for future liability, you can book your losses in advance.

Accrual voucher– this voucher holds the actual expenses or income. 'Actual' refers to the transactions that have occurred but were not paid or received during an accounting year.

The blog very briefly and simplistically mentions the important aspects of journal entry and its importance in Tally ERP 9. If you would be interested to learn about the course in detail you might want to check out the vocational courses offered by GTIA. This institution boasts of highly experienced faculty and training-centric courses that equip the students with both practical and theoretical knowledge to start their careers right after the course gets over. If you are looking forward to learn Tally online you should definitely check the website of GTIA for more detail.