Module 2: Introduction to Tally Prime

2.1 What is TallyPrime?

Concept:
TallyPrime is an accounting and business management software that automates everything your students learned in Module 1. Instead of writing journals manually, they press a few keys. Instead of calculating trial balance, Tally shows it instantly.

Think of TallyPrime as a digital CA office that:

• Records every transaction (Journal → computerized)

• Maintains all ledgers automatically

• Generates financial reports instantly

• Handles GST calculations and filing 

Why this matters for students:

“In the real world, no one writes journals on paper. Companies use Tally. If you know accounting principles + Tally, you are job-ready.”

2.2 Features of TallyPrime

Concept: Features are the “superpowers” of Tally that make accounting faster and error-free.

Key Features with Examples:

Student Takeaway: “Tally doesn’t just record transactions—it handles tax, tracks stock, and protects data.”

2.3 Installation

Concept: Installation is putting TallyPrime software on your computer so you can open and use it.

Step-by-Step:

Pre-requisites (check before starting):

• Windows 8, 10, or 11

• Minimum 4GB RAM (8GB recommended)

• Internet connection for activation

Installation Steps: 

Step 1: Download
→ Go to tallysolutions.com
→ Click "Download"
→ Save setup file in Downloads folder

Step 2: Install
→ Double-click setup.exe file
→ Choose "Install New"
→ Follow on-screen prompts
→ Click "Install"

Step 3: Launch
→ Click "Start TallyPrime" after installation completes

Step 4: Activate License
→ Click "Activate New License"
→ Enter Serial Number and Activation Key (provided with purchase)
→ Enter Unlock Key received on email
→ Press Enter

Student Practice: Install TallyPrime on their computers (or use lab computers where pre-installed).

2.4 Company Creation

Concept: A “Company” in Tally is like a separate digital file cabinet for one business’s books. If you run three businesses, you create three companies.

Important Dates to Understand:

Step-by-Step Company Creation: 

Step 1: Open TallyPrime
→ Double-click Tally icon on desktop

Step 2: Go to Company Create Screen
→ Press Alt+K (Company)
→ Select "Create"

Step 3: Enter Basic Details
┌────────────────────────────────────────────┐
│ Field              │ What to Enter          │
├────────────────────────────────────────────┤
│ Name               │ Ramesh Electronics     │
│ Mailing Name       │ Ramesh Electronics     │
│ Address            │ 123, Gandhi Road, Mumbai│
│ Country            │ India                  │
│ State              │ Maharashtra            │
│ Pin Code           │ 400001                 │
│ Mobile No          │ 9876543210             │
│ Email              │ ramesh@electronics.com │
└────────────────────────────────────────────┘

Step 4: Set Financial Year
→ Financial Year begins from: 1-Apr-2025
→ Books Beginning from: 1-Apr-2025

Step 5: Base Currency (auto-filled as Indian Rupee ₹)

Step 6: Press Ctrl+A to Save

Practical Project Example: Create a company named “Sharma Traders” with address “45, Market Street, Delhi” starting 1-Apr-2025.

2.5 Select Company / Shut Company

Concept:

• Select Company = Open a company to work on it

• Shut Company = Close the current company (but data remains safe)

Step-by-Step:

To Select a Company:

Gateway of Tally → Select Company (or press Alt+K → Select)
→ Choose "Ramesh Electronics" from list
→ Press Enter
→ Now you see Gateway of Tally with company name on top

To Shut a Company:

Gateway of Tally → Shut Company (or press Alt+K → Shut)
→ Confirm "Yes"
→ You return to Company list screen

Student Practice: Select the company you created, then shut it, then select it again.

2.6 Alter Company

Concept: “Alter” means modify or change company details after creation. For example: phone number changed, address shifted, or financial year correction.

What you can change:

• Name, address, contact details

• Financial year dates (only if no transactions entered)

• Base currency

• Security settings 

Step-by-Step:

Step 1: Gateway of Tally → Alt+K (Company) → Alter
Step 2: Select "Ramesh Electronics" from list
Step 3: Change any field (e.g., Mobile number to 9988776655)
Step 4: Press Ctrl+A to save

Important Note: Once you start entering transactions, you CANNOT change:

• Financial year beginning date

• Books beginning date

Student Practice: Alter your company to change email address to “contact@sharmatraders.com”.

2.7 Backup & Restore

Concept:

• Backup = Make a copy of your data (like saving a file to USB drive or cloud)

• Restore = Bring back data from a backup (if original gets deleted/corrupted)

Think of it like:

“Backup is your insurance policy. You never need it until disaster strikes. Then it’s priceless.”

Two ways to backup: 

Step-by-Step Manual Backup:

Step 1: Gateway of Tally → Alt+Y (Data) → Backup
Step 2: Select "Ramesh Electronics" (or current company)
Step 3: Destination Path: Select folder (e.g., D:\Backup or USB drive)
Step 4: Press Enter to confirm
Step 5: Tally shows "Backup completed successfully"

Step-by-Step Restore: 

Step 1: Gateway of Tally → Alt+Y (Data) → Backup & Restore → Restore
Step 2: Select source (Local Drive or TallyDrive)
Step 3: Navigate to backup file location
Step 4: Select company to restore
Step 5: Press Ctrl+A to start restore

Student Practice:

1. Take a manual backup of your company to a USB drive or D: drive

2. Verify backup file exists

3. (Optional) Try restoring to a different name (e.g., “Sharma Traders – Restored”)

2.8 Security Control / Password

Concept: Security Control lets you decide WHO can do WHAT in the company. Not everyone should have full access.

Three Levels of Security:

Step-by-Step to Enable Security Control: 

Step 1: While CREATING company (or Alter company later)
Step 2: Set "Use Security Control?" → Yes
Step 3: Enter Administrator Name: "Admin"
Step 4: Enter Administrator Password: (type twice)
Step 5: Confirm

Now Tally asks for password every time company is opened.

Creating Different User Roles:

Gateway of Tally → Alt+K (Company) → Security Control → Users → Create

Example Users:
┌─────────────────────────────────────────────┐
│ User Name │ Password │ Access Rights        │
├─────────────────────────────────────────────┤
│ Admin     │ admin123 │ Full access          │
│ DataEntry │ entry123 │ Only voucher entry   │
│ Viewer    │ view123  │ Only reports (no entry)│
│ Billing   │ bill123  │ Only sales invoice   │
└─────────────────────────────────────────────┘

Student Practice:

1. Enable security control on your company

2. Create a user “DataEntry” with password “pass123”

3. Log in as DataEntry and verify you cannot alter company settings

⚠️ WARNING: Forgetting TallyVault password makes company data permanently inaccessible . Write passwords in a safe place!

2.9 Company Split (Advanced)

Concept: As data grows over years, Tally becomes slow. Company Split divides data by financial year into separate companies, keeping old data accessible but not slowing down current work. 

When to split: After closing a financial year (e.g., on 1-Apr-2026, split off 2025-26 data)

Step-by-Step: 

⚠️ STEP 0 (MOST IMPORTANT): Take FULL BACKUP before splitting!

Step 1: Gateway of Tally → Alt+Y (Data) → Split Company Data
Step 2: Select company to split (e.g., "Ramesh Electronics")
Step 3: Enter Split Date: 31-Mar-2026
      (Data before this date goes to OLD company)
      (Data from this date onward goes to NEW company)

Step 4: Confirm → Tally creates two companies:
      - "Ramesh Electronics - Old" (upto 31-Mar-2026)
      - "Ramesh Electronics" (from 1-Apr-2026 onwards)

Step 5: Verify both companies open and show correct balances

Student Practice (Demonstration Only):

• Teacher demonstrates split using a sample company

• Students should NOT split their main practice company yet

• Explain concept, let them practice on a dummy company

Practical Project: Create a Sample Company

This is the culminating task for Module 2.

Project Instructions:

Part 1: Company Creation
Create a company with the following details:

┌──────────────────────────────────────────────────┐
│ Field                    │ Value                 │
├──────────────────────────────────────────────────┤
│ Name                     │ Sunrise Stationery    │
│ Mailing Name             │ Sunrise Stationery    │
│ Address                  │ Shop No. 12, Plaza Market, Pune │
│ Country                  │ India                 │
│ State                    │ Maharashtra           │
│ Pin Code                 │ 411001                │
│ Mobile No                │ 9822012345            │
│ Email                    │ contact@sunrise.in    │
│ Financial Year begins    │ 1-Apr-2025            │
│ Books beginning from     │ 1-Apr-2025            │
│ Base Currency            │ Indian Rupee (₹)      │
└──────────────────────────────────────────────────┘

Part 2: Security Setup

1. Enable Security Control

2. Set Administrator name: “Owner”

3. Create two additional users:

   • User “Clerk” (only voucher entry access)

   • User “Viewer” (only report viewing)

Part 3: Backup

1. Take a manual backup to D:\TallyBackup\

2. Name the backup file “Sunrise_Stationery_Backup_01”

Part 4: Verification

1. Shut the company

2. Select it again (confirm you can open)

3. Log in as “Clerk” and verify restricted access

Part 5: Documentation
Students write a 1-page report containing:

• Steps they followed

• Screenshots (or written notes) of each stage

• Any errors faced and how they resolved them

Quick Reference Cheat Sheet for Students

Common Student Errors & Solutions