What Is Purchase, Sales, Discount In tally

Purchase, Sales, Assets, Discount, Drwaing complete information in Tally

Tally Basic Notes – Introduction of Accounting At present, the field of business has become very wide. The complexity of financial transactions has also increased in the changing environment of the global economy and business, as a result, it has become necessary for a business organization to keep accounts for the regulation of financial transactions.

It is very difficult and impossible to remember every transaction, that is why bookkeeping has emerged, Lucas Pacioli is called the father of bookkeeping.

In India, the work of setting accounting standards and training of accountants is being done by the Institute of Chartered Accountants of India and Institute of Costs and Works Accountants of India.

Meaning and Definition of Book – Keeping – Tally Basic Notes

Meaning and definitions of bookkeeping

Bookkeeping is also called bookkeeping, it means writing the transactions in books. There are many types of monetary transactions in business which need to be systematically accounted for in the books.

Bookkeeping or bookkeeping is the art of recording all the financial transactions of the business regularly, methodically, accurately and clearly. Bookkeeping is done on the day the transaction takes place. Definitions: – According to Carter – “Bookkeeping is the art and science of properly accounting all those business transactions, as a result of which the value of money is transferred. J. R. According to Batleyboy – “Bookkeeping is the art of recording business transactions under proper headings.

Meaning and Definition of Accounting

The function of bookkeeping is only to write financial transactions according to the rules in the books of account, whereas accounting presents the financial results by categorizing and summarizing them. In order to know the economic result of the business, it is necessary to collect, classify, summarize and analyze the transactions written in the bookkeeping, then only a businessman can conclude the result of his business. This work is completed by accounting.

Objective of Accounting – Objectives of Accounting – Tally Basic Notes

Accounting, as we know that all business transactions are duly accounted for in the books. Information about all the financial transactions related to business and undertaking is obtained through accounting. Its main objectives are as follows –

1- Knowledge of Capital:-
2- Knowledge of buying and selling:-
3- Knowledge of Debtors and Creditors:-
4- Information about the financial position of the business
5- Knowledge of profit and loss

Definition of Accounting – Tally Basic Notes

Accounting: – is the process by which the financial transactions have to be identified by making an entry, summing up and preparing the report, by which the financial position of the business can be known, is called accounting.

Business :-

Legal work done for the purpose of earning profit is called business. Business is a broad term under which business, production work, buying and selling of goods or services, banks, insurance, transport companies come under it.

Types of Business

1.Manufacturing (Production)
2.Trading
3.Servicing
Trade:-
Buying and selling of goods for the purpose of earning profit is called business.

Profession (profession or profession):-

Any work or means done to earn income, which requires prior training, is called a profession, such as the work of a doctor, teacher, lawyer, etc. comes under profession.

Proprietor (Proprietor or Proprietor):- Tally Basic Notes

Capital

The amount invested by the owner of the business in the form of money, cash or other assets to start the business is called capital. Capital is invested in the business for the purpose of making profit, that part of the profit which has not been withdrawn from the business,

Capital:- Assets – Liabilities.

Drawing –
The goods or cash that are withdrawn by the owner of the business for the personal use of the business, it is called withdrawal or personal expenditure. Withdrawals reduce the amount of capital.

Transaction (deal or transaction):– Tally Basic Notes

The mutual exchange of money, goods or services (magbindham) between two parties is called a transaction. The economic activities such as buying and selling of goods, dealing with payment, etc. are called business deals or transactions.

Types of Transaction

1. Cash Transaction
2. Credit Transaction
3. Bill Transaction

Goods- Tally Basic Notes

Goods are the things that are bought, sold or traded. Goods may include raw materials, semi-finished materials or finished goods obtained for the manufacture of goods.

Purchase (Purchase)-

When goods are purchased by the merchant for sale, it is called purchase. These purchases can be in the form of raw materials or finished goods. The purchase of properties is not included in the purchase, as they are not for resale.

Purchase Return-

The goods which are returned due to any reason out of the purchased goods, it is called purchase return or return outward.

Sales (Sales)-

When the goods purchased are sold for the purpose of making profit, it is called sale. Selling cash goods is called cash sales and selling goods on credit is called credit sales.

Sales Return –

If any of the goods sold is returned by the customer for any reason, it is called return of sales or internal return. When there is a sales return in the telly, it is entered in the journal voucher or debit note.

Stock (Stock or Stock)-

The goods which are left unsold after a certain period of time are called closing stock. At the beginning of the new trading year, this stock is called the opening stock.

Assets – Tally Basic Notes

All such permanent and temporary things of business which are necessary for running the business and which are owned by the businessman, are called assets. Such as – machinery, land building and all the equipment used for personal use of business, furniture, printer, computer etc.

Types of Assets

1- Fixed Assets (Fixed Assets) –
Machinery, land building and all the equipment used for personal use of business, furniture, printer, computer etc.
2- Current Assets (Movable Property) –
cash cash. bank cash etc.

Liabilities (Liabilities or Liabilities)–

Liability of business is called liabilities. There are some essential amounts in business, which are liable to be paid by the business such as capital, bills payable, creditors, bank overdrafts etc.

Revenue:-

Revenue refers to the amount received regularly from the sale of goods or services. The amount received from day to day activities of business such as rent, interest, commission, discount, dividend etc. is also called revenue.

Expenses:- Tally Basic Notes

The cost incurred for producing or obtaining goods, goods and services in business. called expenditure. Payment for receipt of goods and services comes under expenditure. Wages, freight, railway carriage and the salary paid on the distribution and sale of goods, rent, advertisement, expenditure, insurance etc. are also included in the expenditure. In short, the cost of increasing the revenue is called expenditure.

Types of Expenses

1- Direct Expenses –
Payment for receipt of goods and services – wages, freight, railway carriage and payment on distribution and sale of goods
2- Indirect Expenses –
Increase in revenue, salary, rent, advertisement, expenditure, insurance etc. Expenditure:- Expenditure is the amount which is paid for increasing the profit earning capacity of the business. The payment made for the acquisition or acquisition of assets in the business is called expenses.

Gain (Profit):-

It is a type of monetary receipt, which is obtained as a result of business, for example, if goods worth Rs 1,00,000 are sold for Rs 1,50,000, then the gain of Rs 50,000 will be called profit. Basic Accounting Terms

Cost:-

The sum of all the direct and indirect expenses incurred for the production or use of raw materials, services and loans, production or making it useful for the business and its activities is called the cost of the commodity. Goods include raw materials or assets.

Discount (Deduction, Discount or Discount):’- Tally Basic Notes

The discount given by the merchant to his customers is called discount, discount or discount. It is also called a gift. There are two types of discounts –

1- Trade Discount :-
The discount (discount) that the seller makes to his customers while buying the goods in its face value i.e. list price, is called trading discount, it is given for the purpose of increasing the sales of the goods. It is not accounted for in the books
2- Cash Discount :-
The discount which is given on payment of cash amount or value by check in a fixed or stipulated period is called cash discount, it is recorded in the books of account.

Debtor (debtor or debtor):-

A person who borrows goods or services from a firm or institution is called a debtor or debtor of the business. Debtors are called ‘Miscellaneous Debtors’ or Sundry Debtors.

Creditor (creditor or creditor):- Tally Basic Notes

The person, firm or institution from whom goods or services are borrowed is called creditor or creditor.

For example, bought 2 printers from Lakhan Shyam for Rs 20000.

In the above example, Lakhan is buying two printers from Shyam, so here Shyam will be the miscellaneous creditor / creditor for Lakhan.

Receivable (Receivable):-

Such amount related to business which is to be received is called receivable. In the case of sale of goods on credit in business, the buyer is called a debtor, from whom the amount is to be received.

Payable –

There are some such amounts in the business which have to be paid by the businessman in future, they are called payable. Those from whom the goods are purchased on credit by the business are called creditors of the business.

Entry:-

Writing a transaction in the books of account is called an entry.

Turn Over –

The sum of cash and credit sales in a fixed is called total sales or turn over. Sales Cash + Sales Credit = Turn Over.

Insolvent / Bankrupt :-

A person who is unable to repay his loan is called insolvent. The liability of such a person is more than the value of his property. In such a situation, he cannot repay his loan in full. To partially repay the loan, he has to take refuge in the court. The court declares him bankrupt and allows him to partly repay the loan, thereby freeing him from his debt.

Bad Debts / Loans:-

The amount which cannot be recovered due to the inability of the debtor or becoming insolvent is called bad debt or unrecoverable debt to the creditor.

Debit and Credit :-

Every account has two sides. The left side is called debit or subtraction and the right side is called credit margin or integration. Accounting in the left side of an account is called debit account which is traditionally abbreviated by Dr. In this way, the accounting on the right side of the account is called deposit account which is traditionally known as Cr. writes. It may be mentioned that in the Indian bookkeeping system, debits are on the right side and deposits on the left.

Commission / Commission or Turnover:-

The remuneration which is given to the representative or agent in consideration of representing or cooperating in business work is called commission.

Firm :-

In the general sense, firm means that organization which establishes partnership and performs business or business functions, but in the broader sense, each business unit can be addressed by the name of the firm.

Account / Leger / Account :- Tally Basic Notes

Ledger or Account is a table in which the Soda is classified according to their nature and is written sequentially under a heading at one place, in simple words, the list is made by sorting the accounts related to any person, property and income and expenditure etc. It is called Account / Leger / Account.

The abbreviation of the word Account is A/c in English. This abbreviated form is often used in the accounts and each account is divided into two sides. The left side is called Debit and the right side is called Credit.

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