TS Grewal Accountancy Class 11 Solution Chapter 22 Accounting Software Tally

About this chapter: Tally is a very popular accounting software that is used in India by various small and medium sized businesses. This software has been here for years and helps businesses to maintain financial books and financial statements. It has various other features like the preparation of tax statements and tax returns and GST calculation. It helps to maintain books accurately as per the latest accounting standards. In this chapter, students will be able to learn about various features of tally and its limitations and advantages. There are a lot of theoretical and practical questions given in this chapter too which we have solved below. Students should try to gain practical knowledge of the software tally as it will help them a lot to understand how accounting is done in organizatiuons. Along with understanding of accounting concepts, it is important to understand about the tools and technology which is used by accountants to maintain books of finance and other statements and schedules.

Question .1  What is ‘Group’ in Tally?

Answer  1.

Groups are collection of ledgers of the same nature. Account Groups are maintained to determine the hierarchy of Ledger Accounts which is helpful in determining and presenting meaningful and compliant reports. It is used for preparation of Financial Statements that is Profit and Loss Account and Balance Sheet. The Group behavior is classified into Capital or Revenue and more specifically into Assets, Liabilities, Income and Expenditure. The Groups ascertain whether the same will affect Profit and Loss Account which is revenue in nature or Balance Sheet which is capital in nature.

Question .2   How many types of vouchers are there in Tally?

Answer  2.

There are four types of vouchers in Tally as given below:

(i) Receipt: To record receipts of money by cash, cheque, bank transfers, etc.

(ii) Payment: To record payments of money by cash, cheque, bank transfers, etc.

(iii) Journal: To record all non-cash transactions (all accounting tractions not involving any cash or bank ledger).

(iv) Contra: To record transfer of funds between Cash and bank Accounts.

Question .3  What are the salient features of Tally?

Answer  3.

The salient features of Tally as given below:

(i) Simplicity: Accounting Software’s are easy to setup and simple to use. It also generates easy to understand Financial Report.

(ii) Speed: They are capable of generating instant and accurate reports, which assist the management in taking timely decisions.

(iii) Power: They are capable of maintaining accounts of multiple companies and with unlimited levels of classification and creating grouping capabilities.

(iv) Flexibility: They provide flexibility to generate instant reports for any given period or any point of time besides providing the facility to switch from accounting to inventory reports or to any other report of the same company or any other companies.

(v) Scalability: They normally suit any style of business needs and eliminate the necessity for a business to change its style of operation, in order to adopt to the application.

(vi) Real Time Processing: Accounting transactions are immediately posted and updated in the books of account on the tractions being recorded thereby facilitating instant statements and reports. They also have facilities of real-time multi-user environment.

Question .4   Name any four pre-defined primary groups in Tally?

Answer  4.

The following are four pre-defined primary groups in Tally.

1. Branch Division

2. Capital Account

3. Current Liabilities

4. Current Assets

Question .5   Write the name of pre-defined ledger in Tally?

Answer 5.

The following are the name of pre-defined ledger in tally:-

1. Capital Account

2. Profit and Loss Account