Code360 powered by Coding Ninjas X Naukri.com. Code360 powered by Coding Ninjas X Naukri.com
Table of contents
1.
Introduction 
2.
Most Asked Tally Interview Questions and Answers
2.1.
1. What is Tally?
2.2.
2. How do you create a new company in Tally?
2.3.
3. How do you record a journal entry in Tally?
2.4.
4. What is the difference between a voucher and a journal in Tally?
2.5.
5. What is the purpose of the Balance Sheet in Tally?
2.6.
6. How do you create a new group in Tally?
2.7.
7. How do you create a custom report in Tally?
2.8.
8. What is the difference between a payment voucher and a receipt voucher in Tally?
2.9.
9. How do you delete a ledger in Tally?
2.10.
10. What is the purpose of the Profit and Loss statement in Tally?
2.11.
11. How do you adjust the inventory in Tally?
2.12.
12. What is the purpose of the Trial Balance in Tally?
2.13.
13. What is the difference between an invoice and a sales voucher in Tally?
2.14.
14. How do you create payroll in Tally?
2.15.
15. How do you back up data in Tally?
2.16.
16. What is the purpose of the Cost Centre in Tally?
2.17.
17. How do you print a ledger in Tally?
2.18.
18. What types of ledgers can be created in tally?
2.19.
19. Mention what is the shortcuts for Voucher Creation and Alteration Screen in Tally ERP 9?
2.20.
20. How do you create a bank reconciliation statement in Tally?
2.21.
21. What is the purpose of the Sales Register in Tally?
2.22.
22. How do you create a voucher in Tally?
2.23.
23. What is the difference between Tally ERP 9 and Tally Prime?
2.24.
24. How do you create a purchase order in Tally?
2.25.
25. How do you create a journal voucher in Tally?
2.26.
26. Explain the default configuration Tally ERP 9 provides for Balance Sheet.
2.27.
27. How do you create a delivery note in Tally?
2.28.
28. What is the purpose of the Debit Note in the  Tally?
2.29.
29. How do you create a credit note in Tally?
2.30.
30. What features can you use to convert data in encrypted form in Tally ERP9?
3.
Frequently Asked Questions
3.1.
How to prepare for Tally interview?
3.2.
What are the main topics of Tally?
3.3.
What is TDS Tally?
4.
Conclusion
Last Updated: Jun 14, 2024
Medium

Top 30 Tally Interview Questions and Answers (2024)

Author Nilesh Kumar
0 upvote
Master Power BI using Netflix Data
Speaker
Ashwin Goyal
Product @
18 Jun, 2024 @ 01:30 PM

Introduction 

In this blog, we will be discussing Tally interview questions and answer. Tally is an accounting software that is widely used by small and medium-sized businesses across the world. It is a powerful tool that helps manage accounting, inventory, payroll, and more. When preparing for a Tally interview, it is essential to be well-versed in the software and have a good understanding of accounting principles. 

Tally Interview Questions and Answers (2024)

Let's get started with Tally Interview Questions!

Most Asked Tally Interview Questions and Answers

Here, we are going to discuss the most asked Tally Interview Questions and Answers.

1. What is Tally?

Tally is an accounting software used to manage financial transactions and accounting processes. Its key features include inventory management, payroll processing, tax management, financial statements, and data security.

2. How do you create a new company in Tally?

To create a new company in Tally, follow these steps:

  1. Open Tally and select the option to create a new company.
     
  2. Enter the company name, address, and other details.
     
  3. Select the financial year and the base currency for the company.
     
  4. Set up the chart of accounts and enable features such as inventory and payroll.
     
  5. Save the company details and begin using the software.

3. How do you record a journal entry in Tally?

To record a journal entry in Tally, follow these steps:

  1. Go to the gateway of Tally and select Accounting Vouchers.
     
  2. Select the option for Journal Voucher.
     
  3. Enter the date of the transaction and the debit and credit accounts.
     
  4. Enter the amount for each account and provide narration for the transaction.
     
  5. Save the voucher, and the entry will be recorded in Tally.

4. What is the difference between a voucher and a journal in Tally?

A voucher in Tally refers to a document that records a financial transaction. A journal voucher is a type of voucher that records transactions that do not involve cash or bank accounts, such as adjustments for depreciation, accruals, or prepayments. In other words, a journal is a type of voucher, but not all vouchers are journals.

5. What is the purpose of the Balance Sheet in Tally?

The Balance Sheet in Tally is a financial statement showing a company's assets, liabilities, and equity at a specific time. Its purpose is to provide a snapshot of the company's financial health and help users understand its financial position.

Also read, project manager interview questions

6. How do you create a new group in Tally?

To create a new group in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Masters.
     
  2. Select the option to create a new group.
     
  3. Enter the group's name and select the group's category.
     
  4. Set up the sub-groups and ledger accounts for the group.
     
  5. Save the group, and it will be available for use in Tally.

7. How do you create a custom report in Tally?

To create a custom report in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Display.
     
  2. Select the option to create a new report.
     
  3. Choose the type of report and customize the settings, such as the period and the accounts to be included.
     
  4. Save the report, and it will be available in Tally.

8. What is the difference between a payment voucher and a receipt voucher in Tally?

A payment voucher in Tally is used to record payments made to suppliers, vendors, or other parties. In contrast, a receipt voucher records money received from customers, debtors, or other sources. Payment and receipt vouchers are used to record transactions, representing different types.

9. How do you delete a ledger in Tally?

To delete a ledger in Tally, follow these steps:

  1. Go to the Gateway of Tally and select the option for Masters.
     
  2. Select the option to display the list of ledgers.
     
  3. Choose the ledger you want to delete and press the Alt+D key combination.
     
  4. Confirm the deletion by typing Y, and the ledger will be deleted.
     

Note: You can only delete a ledger in Tally if it has no transactions or outstanding balances.

10. What is the purpose of the Profit and Loss statement in Tally?

The Profit and Loss (P&L) statement in Tally is a financial statement that shows the company's revenues, expenses, and net income over a specific period. Its purpose is to provide insights into the company's profitability and financial performance.

11. How do you adjust the inventory in Tally?

To adjust the inventory in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Inventory Vouchers.
     
  2. Choose the option to create a stock journal voucher.
     
  3. Enter the date and the stock item you want to adjust the inventory.
     
  4. Select the adjustment type, such as increase or decrease, and the quantity of the item.
     
  5. Save the voucher, and the inventory adjustment will be reflected in the Tally.

12. What is the purpose of the Trial Balance in Tally?

The Trial Balance in Tally is a report that shows the total debit and credit balances for all ledger accounts in the company. Its purpose is to help users verify the accuracy of their accounting records by checking that the total debits equal the total credits. If the totals do not match, it indicates that there are errors in the accounting records that need to be corrected.

13. What is the difference between an invoice and a sales voucher in Tally?

The difference between an invoice and a sales voucher in Tally are:

ParameterInvoiceSales Voucher
DefinitionA commercial document issued by a seller to a buyer, indicating the products or services, their quantity, and price.A voucher that records the sale of goods or services and contains details of the transaction.
UseUsed for billing customers for goods or services soldUsed for recording sales transactions in Tally
Type of VoucherA special type of sales voucher that contains additional fields such as invoice number, customer details, and tax informationA regular sales voucher
Details capturedThe product or service details, quantities, prices, taxes, and other chargesThe product or service details, quantity, price, and ledger accounts involved in the transaction
GenerationGenerated after the goods or services have been delivered or renderedGenerated at the time of the sales transaction
PurposeServes as proof of the transaction and helps in tracking accounts receivablesHelps in maintaining an accurate record of sales transactions and updating the financial statements

14. How do you create payroll in Tally?

To create payroll in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Payroll Info.
     
  2. Select the option to create a new employee record and enter their details, such as their name, address, and salary information.
     
  3. Set up payroll groups, categories, and attendance types.
     
  4. Generate a payroll report to view the salaries and taxes for each employee.

15. How do you back up data in Tally?

To back up data in Tally, follow these steps:

  1. Go to the Gateway of Tally and select F3: Cmp Info.
     
  2. Select the option to create a backup.
     
  3. Choose the location and the name of the backup file and confirm the backup.
     
  4. Save the backup file to an external drive or cloud storage.

16. What is the purpose of the Cost Centre in Tally?

The Cost Centre in Tally is a feature that allows users to allocate expenses and revenues to different departments or projects within a company. Its purpose is to help users understand the profitability and costs associated with other parts of the business and make better decisions based on this information.

17. How do you print a ledger in Tally?

To print a ledger in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Display.
     
  2. Select the option for a ledger and choose the ledger you want to print.
     
  3. Click on the Print button and select the print settings, such as the printer and page orientation.
     
  4. Confirm the print command, and the ledger will be printed.

18. What types of ledgers can be created in tally?

In Tally, different types of ledgers can be created based on the nature of the transactions they represent. Here are some types of ledgers that can be created in Tally:

  1. Sales Ledger
    This ledger is used to record all sales transactions. It represents the money the business receives from its customers for goods or services sold.
     
  2. Purchase Ledger
    This ledger is used to record all purchase transactions. It represents the amount of money that the business pays to its suppliers for goods or services purchased.
     
  3. Cash Ledger
    This ledger is used to recording all cash transactions. It represents the amount of money that the business receives or pays in cash.
     
  4. Bank Ledger 
    This ledger is used to recording all transactions related to bank accounts. It represents the amount of money that the business receives or pays through bank accounts.
     
  5. Expense Ledger 
    This ledger is used to recording all expenses incurred by the business. It represents the amount of money that the business spends on various expenses, such as rent, salaries, electricity bills, etc.
     
  6. Income Ledger
    This ledger is used to record all income earned by the business. It represents the amount of money the business receives from various sources, such as sales, interest income, etc.
     
  7. Journal Ledger
    This ledger is used to record all transactions that cannot be recorded in any other ledger. It represents transactions such as opening balances, adjustments, and other miscellaneous transactions.

19. Mention what is the shortcuts for Voucher Creation and Alteration Screen in Tally ERP 9?

The following are the keyboard shortcuts for Voucher Creation and Alteration screen in Tally.ERP 9:

Voucher Creation screen:

  1. To create a new voucher: Ctrl + F2
     
  2. To display the list of voucher types: Ctrl + F3
     
  3. To change the voucher date: F2
     
  4. To add a new ledger account: Alt + C
     
  5. To delete a voucher: Alt + D
     
  6. To duplicate a voucher: Alt + 2
     
  7. To add narration to a voucher: Ctrl + N
     

Voucher Alteration screen:

  1. To alter a voucher: Ctrl + F4
     
  2. To view the original voucher: Alt + 2
     
  3. To delete a voucher: Alt + D
     
  4. To change the voucher date: F2
     
  5. To add a new ledger account: Alt + C
     
  6. To add narration to a voucher: Ctrl + N
     

Note: These shortcuts are based on the default keyboard settings in Tally.ERP 9 and may vary depending on any customizations made by the user.

20. How do you create a bank reconciliation statement in Tally?

To create a bank reconciliation statement in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Banking.
     
  2. Choose the bank account for which you want to reconcile.
     
  3. Select the option for bank reconciliation and enter the bank statement details, such as the opening balance and transactions.
     
  4. Match the transactions with the entries in Tally and reconcile the bank statement.
     

Also see, Power Electronics Interview Questions

21. What is the purpose of the Sales Register in Tally?

The Sales Register in Tally is a report that shows the details of all sales transactions for a specific period. Its purpose is to provide insights into the company's sales performance and help users track sales trends, customer behavior, and revenue.

22. How do you create a voucher in Tally?

To create a voucher in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Accounting Vouchers.
     
  2. Choose the type of voucher you want to create, such as a payment voucher or receipt voucher.
     
  3. Enter the details of the transaction, such as the party name, amount, and account head.
     
  4. Save the voucher, and it will be recorded in Tally.

23. What is the difference between Tally ERP 9 and Tally Prime?

The differences between Tally ERP 9 and Tally Prime are

ParameterTally.ERP 9TallyPrime
LicensingPerpetual license with one-time paymentSubscription-based model with periodic payments
InterfaceClassic UI with menus and toolbarsModern and intuitive UI with a ribbon-based interface
NavigationRequires multiple clicks to access various featuresSingle-click access to frequently used features
SearchSearch functionality is limited to basic search and filter optionsAdvanced search options with suggestions and contextual search
ReportingBuilt-in reports are limited and require customizationPre-built reports for various industries and roles, with customization options
SecurityLimited user management features with basic access controlAdvanced user management features with role-based access control and data security
IntegrationLimited integration options with other software systemsAdvanced integration options with popular business applications and APIs
PerformanceSupports up to 10 users on a single machine with limited data capacitySupports multiple users on a single machine or in the cloud with increased data capacity

24. How do you create a purchase order in Tally?

To create a purchase order in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Purchase Order.
     
  2. Choose the supplier and enter the details of the products or services being purchased, such as the quantity, rate, and discount.
     
  3. Save the purchase order, and it will be recorded in Tally.

25. How do you create a journal voucher in Tally?

To create a journal voucher in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Accounting Vouchers.
     
  2. Choose the option for a journal voucher.
     
  3. Enter the details of the transaction, such as the debit and credit account heads and the amount.
     
  4. Save the journal voucher, and it will be recorded in Tally.

26. Explain the default configuration Tally ERP 9 provides for Balance Sheet.

Tally.ERP 9 is an accounting software that provides a default configuration for generating a Balance Sheet. The Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. The default configuration in Tally.ERP 9 for generating a Balance Sheet includes the following:

  1. Assets 
    This section of the Balance Sheet includes all the company's assets. These assets are listed in order of liquidity, with the most liquid assets listed first. The default configuration includes categories such as Fixed Assets, Current Assets, and Investments.
     
  2. Liabilities
    This section of the Balance Sheet includes all the company's liabilities. These liabilities are listed in order of maturity, with the liabilities due for payment in the short term listed first. The default configuration includes categories such as Current Liabilities and Long-term Liabilities.
     
  3. Capital and Reserves
    This section of the Balance Sheet includes the equity or capital of the company. The default configuration includes categories such as Share Capital, Reserves and Surplus, and Retained Earnings.

27. How do you create a delivery note in Tally?

To create a delivery note in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Delivery Note.
     
  2. Choose the customer and enter the details of the products or services being delivered, such as the quantity and rate.
     
  3. Save the delivery note, and it will be recorded in Tally.

28. What is the purpose of the Debit Note in the  Tally?

A Debit Note in Tally is used when a supplier sends goods to a customer, and the customer returns some of those goods. The purpose of the Debit Note is to adjust the amount payable to the supplier for the returned goods. It is also used to record a reduction in the invoice amount due to an error in the original invoice.

29. How do you create a credit note in Tally?

To create a credit note in Tally, follow these steps:

  1. Go to the Gateway of Tally and select Credit Note.
     
  2. Choose the customer and enter the details of the products or services for which the credit note is being issued.
     
  3. Enter the amount to be credited and the reason for the credit note.
     
  4. Save the credit note, and it will be recorded in Tally.

30. What features can you use to convert data in encrypted form in Tally ERP9?

Tally ERP9 is a popular accounting software that is used by many businesses to manage their financial data. In Tally ERP9, several features can be used to convert data into encrypted form to ensure that the data is secure and protected from unauthorized access. Here are some of the features that can be used for this purpose:

  1. Company Password
    Tally ERP9 allows users to set a company password, which is required to access company data. This password can encrypt the company data, making it more secure.
     
  2. Tally Vault
    is a feature that allows users to encrypt the data in Tally ERP9. This feature uses a 128-bit Advanced Encryption Standard (AES) algorithm to protect the data. The encryption key is stored in a separate file that is not accessible to anyone except the authorized user.
     
  3. SSL Encryption
    Tally ERP9 also supports SSL encryption, which can encrypt data transmitted over the internet. This feature is particularly useful for businesses that need to access their Tally data from remote locations.
     
  4. Digital Signatures
    Tally ERP9 allows users to digitally sign their data, providing an additional security layer. Digital signatures can be used to verify the authenticity and integrity of the data, ensuring that it has not been tampered with.
Get the tech career you deserve, faster!
Connect with our expert counsellors to understand how to hack your way to success
User rating 4.7/5
1:1 doubt support
95% placement record
Akash Pal
Senior Software Engineer
326% Hike After Job Bootcamp
Himanshu Gusain
Programmer Analyst
32 LPA After Job Bootcamp
After Job
Bootcamp

Frequently Asked Questions

How to prepare for Tally interview?

Prepare for a Tally interview by mastering basic accounting principles, understanding Tally features, and practicing common interview questions on Tally functions. 

What are the main topics of Tally?

Main topics of Tally include accounting fundamentals, voucher entries, GST, inventory management, and financial statements. 

What is TDS Tally?

TDS in Tally refers to Tax Deducted at Source, a feature enabling automatic deduction of taxes from income, ensuring compliance with tax regulations.

Conclusion

This blog has discussed the Tally Interview Questions, divided into easy, medium, and hard levels. We hope the blog has helped you enhance your knowledge about Tally Interview Questions. You can also refer.

To learn more about DSA, competitive coding, and many more knowledgeable topics, please look into the guided paths on Coding Ninjas Studio. Also, you can enroll in our courses and check out the mock test and problems available to you. Please check out our interview experiences and interview bundle for placement preparations.

Happy Coding!

Previous article
Tableau Interview Questions
Next article
VBA Interview Questions
Live masterclass