Friends, today I will tell you what is income in tally, friends, when a person starts a business, then that person wants that he should profit from business. And when he starts business, we come to know only through income that the person is getting profit in business or loss. So friends today in this post I will tell you what is income, what are the types of income, what is the difference between direct and indirect income, and how do we calculate direct and indirect income in tally.
What is income in tally Accounting
When a person starts a business, then the person always does business with the aim of earning profit. When he receives money through business, we call it income, now this income is also of 2 types, direct income and indirect income. Friends, I will tell you what is direct income and indirect income.
What is direct income in tally Accounting
Direct income: – Such income which we get from the main source of business, we call it direct income, as we have production work, and we produce any item, then when we sell that item and The amount we get in exchange for that, we call it direct income in the language of accounting.
Example of direct income:-
1. School fees (if you have a school, the fees are direct income for you)
2. Goods production (the amount obtained by selling raw malls)
Indirect income: – Friends, such income which we get from sources other than business, we call them indirect income. Like if a person has a production business and has invested in some other place too, and if he has any income from that investment, then we will call it indirect income,
What is indirect income examples
1. interest Rec
2. commission Rec
3. rent Rec
4. discount rec.
Difference between direct income and indirect income
Friends, many times it becomes difficult to explain in tally which income is direct and which income is indirect, and when we enter it in tally, we put it in the wrong group, so that our profit and loss account is wrong. And we do not know the net profit or net loss in the business correctly. Friends, do not worry about this, I will tell you a very simple way by which you will know the difference between direct income and indirect income.
Example of direct income & indirect income in Tally
Indirect income: – Friends, such income which we get not through business but through any other means, we call it indirect income, like – interest received from the bank, if your shop or room is rented, then the rent received from it, If you have got any kind of commission from somewhere, if you have given a loan to someone and you have got interest from him, such income is an example of indirect income.
Direct income:– The income which we get from the main sources of business, we call it direct income. Like if you have a school, then the fees that come in the school are your direct income, apart from this, if any room of the school is given on rent and you get rent from it, then it will not be your direct income, it is indirect income.
How will Income entry in tally Accounting
Friends, it is the rule in tally accounting that if you have any Expenses in business, then those expenses are always debited, and if there is any direct or indirect income from business or other sources, then we always credit the income. Huh. So friends income will always be credit only.
What are Accrued Income & unaccrued income in tally
In Tally, apart from direct income and indirect income, there are 2 more types of income. But this is not income but assets or liability. Such income which has been received by the company or person before giving its service or goods is called unaccrued income. Getting salary in advance is an example of unaccrued income. unaccrued income is a kind of liability for any person, which he has to pay in the coming time. Whereas accrued income is the income that you have earned but not received. Accrued income is the assets that you will get in the coming time. Accrued income is the current assets for the recipient but there will be current liability for the payer.
So friends, I have given you complete information related to income and after reading this blog you should not have any question related to income, and if you have any question then comment me, I will try to answer your question.
Thank you .