Hi, this is Prasant from B.lor. Mostly, I use SAP for accounting. Once, I worked with a logistics company where I used Tally. We had one activity - Petty cash management. When we draw money from the bank, we prepare a voucher against the cash drawn and pass an entry in Tally:
Petty cash a/c .........dr To Bank a/c....Credit
Then, the fund starts to show in the Petty cash account where we pass all expenses entries against that fund. For example, Stationery Purchased:
Stationery a/c...............dr, To, Petty cash a/c
Note: You have to pass the entry as per the available fund in Petty cash. If there is a shortage of 10 rupees in your petty cash fund and you paid it from your pocket considering that when the fund comes, you will take that money. However, you cannot pass that entry in Tally as it will show a negative balance which you will be answerable for before the Auditor. So, take care of these issues.
Some provision entries need to be made at month-end. For instance, the Electricity bill comes on the 5th of every month, but you have to show that expense in the current month. Therefore, you need to make a provision entry, and when you receive the bill, then you reverse that entry and pass the correct entry.
You might need to pass an employee reimbursement entry, e.g., Employee A submits a Mobile bill of 1000 Rs. For that, you need to pass an entry:
Telephone Exp a/c.............Dr, To, Particular Emp A a/c....
When you get approval for this and pay such a bill:
Emp A a/c...........Dr, To, Bank / Petty Cash A/c...
Accounting Process in Tally
This is all about the Accounting Process in Tally. If your question is about what Tally software is, it is a complete management tool for Accounting, Inventory, and Payroll.
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