Double Entry System

Tally Prime follows the double-entry accounting system, which means that every financial transaction is recorded in two accounts - a debit account and a credit account. The total amount of debits must always equal the total amount of credits in a transaction, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.

In Tally Prime, you can record financial transactions using vouchers, which are the primary documents used for accounting. There are different types of vouchers in Tally Prime, including sales vouchers, purchase vouchers, payment vouchers, receipt vouchers, journal vouchers, and more. Each voucher has a specific purpose and records the relevant financial transactions.

When recording a financial transaction in Tally Prime, you need to select the appropriate voucher type and enter the relevant details, such as the account names, amounts, and narration. You can also select the relevant tax rates, discounts, and other applicable details, depending on the nature of the transaction.

Tally Prime also offers several features to help you manage your accounts efficiently, such as automatic ledger creation, account grouping, bank reconciliation, and more. These features can help you save time and reduce errors, ensuring accurate and up-to-date financial records.

Overall, Tally Prime's double-entry accounting system ensures that your financial records are accurate, complete, and balanced, providing you with the necessary insights and information to make informed business decisions.