Definition of purchase in Tally Accounting
What are purchases in tally Accounting? Purchase in tally means, Such items are bought by the businessman which can be sold again by the businessman. When the raw material is bought by the businessman and after that it is sold then it is part of the operating activity of the businessman. The reason for this is that raw materials are bought and sold daily in the business.
The true meaning of purchase in tally Accounting is that if a businessman’s business is of furniture, but if any fixed asset is purchased by him in the business, then it will not be called a goods activity. This is a type of fixed asset that has been purchased for the need of the business. In simple words, if the business of a businessman is of furniture and if he brings in the business by buying furniture, then it will be called a purchase.
Understanding purchase in tally accounting
Often in the word purchase the meaning is taken to buy all kinds of items but this is not the correct definition of purchase. To understand the purchase, let me give you an example of purchase. If a business is started by a businessman, then he will have to invest in the business first. The businessman will have to buy all the necessary things in the business which are necessary to run the business. For this, the businessman will have to make many Types of Investments like land, computer, bike, car, office, machinery, furniture etc. If the business of the businessman is to make furniture, then all these assets will not be called purchase. All these fixed and current assets have been purchased for the need of the business in the businesses. In the businessman, if furniture is bought or sold by the businessman, then it comes in the activity of the goods.
Types of Purchase in Tally Accounting
When a business is started by a businessman, he has to buy many types of goods and services. There are two ways to purchase goods or services in any business. cash purchase and credit purchase. The definition of cash purchase and credit purchase is given below.
1. Cash purchase: – This is called cash purchase. When an item is purchased by the businessman and if the payment is made in cash, then that payment is called cash purchase. When companies buy something from someone only once or from outside, then this type of purchase is called cash purchase. The definition of cash purchase in simple words is that when an item is purchased by a person in cash, it is called cash purchase.
2. Credit purchase: – If an item is purchased by the businessman on credit, then this purchase is called credit purchase. Many people make credit purchases. They buy goods from the same place, due to which there is a good relationship between the buyer and the seller, they get the goods on credit. In credit purchase, the payment for the goods is made within 15 days or even longer. can. It depends on the buyer and seller.
How to Enter Purchase Entry in Tally Accounting
When any item is purchased by the businessman whether it is cash purchase or credit purchase in tally, the entry of purchase is made by the accountant in tally. To enter cash purchase in Tally, the purchase is entered by pressing the F9 shortcut key in Tally. But the accountant has to pay attention to whether the purchase has been made in cash or in credit.
When credit purchases are entered in tally, the accountant has to make The Ledger of the party from whom we have purchased the item on credit. And while creating a person’s ledger, he has to be put in the sundry creditor group. And if the item has been purchased in cash, then you can also enter it in the payment voucher or you can also enter the cash purchase in the purchase.
But if an item is purchased by the businessman on which GST (Goods and Service Tax ) is levied, then you will have to create a GST ledger and according to its GST rate, you will have to enter the purchase entry tally. If an item is levied 18% GST and if that item is purchased from your state itself, then in this case both 9% CGST and 9% SGST will be taxed. And if the item has been purchased from other state then it will attract 18% IGST in that case.