Company Creation, Alteration & Deletion

Concept

In Tally Prime, a Company is like a digital folder for your entire business. All your accounting data, inventory, ledgers, vouchers, and reports are stored under one company. You can create multiple companies in one Tally installation.

This is the foundation step after installation.

Use Case & Real Life Practice

  • Use Case: Starting digital accounting for a new or existing business.
  • Real Life Examples:
    • A student opens a small stationery shop and creates a company named “Student Stationery”.
    • A CA maintains accounts for multiple clients by creating separate companies for each.
    • A family business creates one company for the main shop and another for a new branch.

Step-by-Step Guidance (Verbal Instructions)

A. Company Creation

  1. Open Tally Prime.
  2. At the Gateway of Tally screen, press Alt + F3 (or click Company Info).
  3. Select Create Company.
  4. Fill in the following details carefully:
    • Name: Full name of your business (e.g., “Learning Traders”)
    • Mailing Name: Short name (e.g., “LT Traders”)
    • Address: Complete address of the business
    • Country: India
    • State: Select your state
    • PIN Code: 6-digit pin code
    • Financial Year From: Usually 01-04-2025 (1st April)
    • Books Beginning From: Same as Financial Year or later date
    • Maintain: Select Accounts with Inventory
  5. Review all details and press Y or click Accept to create the company.

B. Alter (Modify) Company

  1. Press Alt + F3 → Select Alter.
  2. Select the company you want to modify.
  3. Make necessary changes (address, name, financial year, etc.).
  4. Accept the changes.

C. Delete Company

  1. Press Alt + F3 → Select Delete.
  2. Select the company you want to delete.
  3. Tally will ask for confirmation → Type Yes to delete.

⚠️ Warning: Deletion is permanent. Always take a backup before deleting.

Example

  • Company Name: “ABC Kirana Store”
  • Mailing Name: “ABC Kirana”
  • Address: Shop No. 5, Main Market, Pune
  • Financial Year: 01-04-2025
  • Maintain: Accounts with Inventory

After creation, the company opens automatically and you see the Gateway of Tally.

Practice Set for Students

Task 1: Create a new company with the following details:

  • Name: My Practice Company
  • Mailing Name: MPC
  • Address: Your city address
  • Financial Year From: 01-04-2025
  • Maintain: Accounts with Inventory

Task 2: Alter the company and change the PIN Code and Phone Number.

Task 3: Create one more company named “Test Company” for practice.

Task 4 (Important): Open both companies one by one and observe the difference.

Connection to Next Topic

Once your Company is created successfully, the next step is to create Ledgers (Accounts like Cash, Sales, Bank, etc.). Ledgers are the building blocks used in every voucher. Without proper ledgers, you cannot record any transactions.