Real Account

Debit: What comes in

Credit: What goes out

Purchased furniture of Rs 5000 in cash

Nominal Account

Debit: Expanses

Credit: Income

Salary paid Rs 25000 in cash

Create company in tally

Double click on tally icon on desktop. Alt+F3 company info- Create Company.

Accounts Only: maintain only the company's financial accounts. Inventory (stock) management is not involved in the process.

Account with inventory: This is the default option, which allows you to keep track of both your company's financial accounts and its inventory.

Select company: We can choose an existing company. shortcut key: f1.

Shut Company: It is used to shut down a newly established business. shortcut key: alt+f1.

Alter: It is used to make changes to the company's creation details such as name, date, and maintenance.

Current asset: it is converted into cash with, in a year. ex. bills receivable

Direct expenses: These are the expenses that are directly related to the manufacture of goods. Wages, factory rent, heating, lighting, etc.

Indirect expenses: These are the expenses that are indirectly related to the manufacture of goods. ex. salary, rent, stationery, advertisement, printing.