Tally Prime is an accounting and business management software used to maintain financial records, inventory management, taxation, payroll, banking, and business reports. It helps organizations automate accounting processes and generate accurate financial statements.

The main accounting groups in Tally Prime are:

Primary Groups:

• Capital Account
• Current Assets
• Current Liabilities
• Fixed Assets
• Investments
• Loans (Liability)
• Sales Account
• Purchase Account
• Direct Expenses
• Indirect Expenses
• Direct Income
• Indirect Income

These groups help classify ledger accounts properly.

A ledger is an account created to record all transactions related to a particular account.

Examples:

• Cash Account
• Bank Account
• Sales Account
• Purchase Account
• Customer Account
• Supplier Account

Every transaction in Tally Prime is recorded through ledgers.

GST (Goods and Services Tax) is an indirect tax system in India. Tally Prime allows businesses to record GST transactions, calculate tax automatically, and generate GST reports.

GST features in Tally Prime include:

• GST setup
• CGST, SGST, IGST calculation
• GST invoices
• GSTR reports
• Tax summaries

Steps to create a company:

1. Open Tally Prime
2. Select Create Company
3. Enter company details:
   • Company name
   • Address
   • Financial year
   • Books beginning date
   • GST details (if applicable)
4. Save the company

After creation, we can create ledgers and record transactions.

Debit (Dr):

• Increases assets and expenses
• Decreases liabilities and income

Examples:

• Purchase of furniture
• Payment of salary

Credit (Cr):

• Increases liabilities and income
• Decreases assets

Examples:

• Sales income
• Loan received