When a transaction takes place, there are always two affected, in which one is debited and one account is credited. In Tally Accounting, an account is created for each ledger.Ledger is that part of accounting in which every transaction made in respect of persons, goods and services is kept. By creating a ledger, the exact position of each account is known, which account is credited or debited. When a company or a firm is audited, it is necessary to maintain bookkeeping in accounting.
Account Types (Personal, Real, Nominal,)
1. Personal Account
Those accounts which are related to a particular person are called personal accounts. Person can mean any person, company, firm, institution etc. In simple language, the accounts of all the creditors and debtors are personal accounts. In this way, CAPITAL and DRAWING are also examples of personal account as in these also transactions related to the business owner are done.
2. Real Accounts
Goods and property accounts are called real accounts. These accounts are called real because the items described in them are used as special Assets in business. If needed, the trader can convert his capital into money by selling it. Real accounts are shown as assets in economic papers. Such as machines, buildings, goods, machinery, furniture, cash and banks etc. are real accounts.
3. Nominal Accounts
These accounts are also called unrealized accounts. There are many expense, income and profit or loss accounts in business. For all these separate accounts are maintained, which are called ‘nominal’ accounts. For example, the accounts of salary, wages, commission, interest etc. are nominal accounts.
Account Classification in Tally
|Personal Account||Real Account||Nominal Account|
|Mr. Mahesh||sales/ Sales return||rent|
|Asha Traders||purchase / purchase rerturn||advertisment|
|Anand Electonics||building/ land||repair|
|KGN Traders||moter vehicle||wages|
Tally Accounting Rules
- Personal Accounts
( Debit the Receiver )
( Credit the Giver )
- Real Account
We will debit the assets that are coming into business (what comes in )
Will credit the assets going out of business (what goes out )
- Nominal Account
Debit all expenses and losses
credit all income and Gains
Debit and credit rules in journal entries
Example of Personal Account, Real Account, Nominal Account Entry in Tally
- Two accounts are affected in this entry, a personal account and a real account.
|Mr. Rahul Kumar||7500|
|Cash / Bank||7500|
2. In this entry real account and nominal account are being affected.
3. In this entry both the accounts are being affected by the real account.
Whenever voucher entry is done in tally, they are done according to the rules, whenever any voucher entry is done in tally, then do it keeping in mind the golden rules of tally.