FINANCIAL ACCOUNTING AND TALLY.doc

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FINANCIAL ACCOUNTING AND TALLY 7.2 THEORY THEORY Tally: Tall y:  Application software which usually comes in the form of a Application software which usually comes in the form of a   package program dealing with all the activities of a specific  package program dealing with all the activities of a specific  appl ic at ion working indust ry such as fi na nc ia l accounti ng i. e. appl ication working indust ry such as fi nancial accounti ng i.e.  usually used for the purpose of maintaining the records of all kinds usually used for the purpose of maintaining the records of all kinds  of financial transactions. of financial transactions. ACCOUNTANCY:  The science and method of recording all kinds of financial transactions and dealing with the result of such transactions is known as accountancy. TRANSACTI ON: When the financial position of any person or institution undergoes change due to the exchange of goods or services then the total change is called transaction. FEATURES OF TRANSACTION: 1. There must be two part ies i nvolv ed. 2. ue to the exchan ge of go ods or services. !. "oo ds must hav e va lue . #. $hang e in fi nanc ial co ndit ion occ urs. TYPES OF TRANSACTION 1. $as h transa ct ion. 2. $re dit tra nsa cti on. !. %on cash tran sact ion.& 'g. (ad debt) depre ciat ion etc.* ASSETS  Assets are those items from which we get benefit in the future. There are two types of assets namely) 1. Ta ngible asse ts 2. +nt angibl e a ssets. 1

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