Tally — Part 1 MCQs with Explanations

Tally Solutions Pvt. Ltd., is an Indian multinational company that provides enterprise resource planning software. It is headquartered in Bangalore, Karnataka India. Tally Solutions, then known as Peutronics, was co-founded in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

The Balance Sheet and Income statement of companies across the Globe are usually prepared for a period of 1 year. However, the date from which this period starts varies from country to country. In India, this 1 year period starts from 1 st April and ends on 31 st March.

After installation, the application opens to the screen shown Company Info

In Tally , the "Alter" option is used to make changes to an already created company. To alter a company in Tally, follow these steps: 1. Open Tally and go to the Gateway of Tally . 2. Select "Company Info" from the menu. 3. Choose the "Alter" option. 4. A list of existing companies will appear. Select the company that needs modification. 5. Make the necessary changes and press Ctrl + A to save. This feature allows users to update company details like name, address, financial year, and security settings.

Company info menu. (If you are in Gateway of Tally Press Alt+F3 to get that menu), Select Create Company option in the menu and press enter key, company creation screen will be appeared.

At the Gateway of Tally, press ALT+F3 or click F3:Cmp Info > Select the option Split Company Data > Select the option Select Company > Select the Company whose data is to be split. Tally recommends the split-off date based on the data existing. It is recommended that the Split Point is set as the beginning of the latest financial year though Tally permits any date as the split point.

Go to company info Menu ( Use Alt + F3 from gateway of Tally ). Select Backup menu, The backup processing screen will appear. Select the source of data, normally this will be selected automatically no need to change. Change the destination if required ,This needs to be changed in most cases if you want data backup in a removable disk (pendrive or CD) . Select the companies from the list ,choose End of list. Accept and save the screen, the data will be backed up in destination folder you have mentioned.

Go to Gateway of Tally > F3 : Cmp Info > Restore to view the Restore Companies screen. Destination - The folder path where your company data is to be restored. Do not restore backup data in the folder where your company data exists, since it may overwrite the existing data. Source - The folder path where the backup file is stored. You can restore data stored locally on your computer, on any external storage device, or on a storage space on the network. Select the required companies from the List of Companies . Select All items to restore data of all companies. Press Ctrl+A to restore the data backup.

In the Company Info. menu choose Select Company option. Then you will see the List of Companies, which are created using the Create Company option under the Company Info. menu. From the list choose any one of the companies.

If you already opened the multi-companies and working on them and want to close any of them or two then there is two ways to close them. Go to company info by pressing ALT+F3 There you will see the option Shut company , click on it You will see all companies list. Select the company which you want to close one by one. Selected company will close after you have selected.

From the Company Info. menu choose Select Company option to move from one company to another when more than one companies are open.

New ledgers, groups and voucher types in Tally is created from Masters Go to Gateway of Tally > (under Masters) Account info.

New ledgers, groups and voucher types in Tally is created from Account info submenu. Go to Gateway of Tally > (under Masters) Account info.

For voucher entry in Tally Accounting Vouchers submenu is used. Go to Gateway of Tally > (under Transactions) Accounting Vouchers

Salary Account is generally indirect expense because it cannot be conveniently allocated to a particular product.

Tally.ERP 9 provides a list of Groups called pre-defined groups. There are twenty eight pre-defined groups in Tally.ERP 9. These groups are a part of the chart of accounts for most organizations. For example, Sales Accounts is a pre-defined group. All sales ledgers can be classified under this group.

Out of the twenty eight pre-defined groups, fifteen are primary groups and thirteen are sub-groups . The user can create any number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub Group.

Out of the twenty eight pre-defined groups, fifteen are primary groups and thirteen are sub-groups . The user can create any number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub Group.

List of accounts is used to view list of Primary and Secondary groups in Tally. It displays the existing chart of accounts , listed as groups , in alphabetical order. To view list of accounts: Go to Gateway of Tally > Display > List of Accounts

There are two pre-defined (or automatically created) ledgers available in Tally.ERP 9, they are: Cash - This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger. Profit and Loss Account - This Ledger is created under the Group Primary. Previous year’s Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side. You cannot delete this ledger, but you can modify the same.

You can edit a ledger in the following way. Accounts info > Ledger > Alter A List of ledgers will display, select the one you want to modify.

There are 18 different pre-defined voucher types pertaining to accounting, inventory and payroll. When the payroll feature is enabled, the number of pre-defined voucher types is 20 .

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Bank / Cash account to another Bank / Cash account, Cash Deposit / Withdrawals into/from Bank. Contra voucher type is used in tally to transfer amount from one bank to another. Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra from the Button Bar or press F4 .

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Bank / Cash account to another Bank / Cash account, Cash Deposit / Withdrawals into/from Bank. Contra voucher type is used in tally to withdraw amount from bank. Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra from the Button Bar or press F4 .

Payment voucher is used to paid any type of expenses either direct or indirect expenses by cash/cheque/dd to any party. This voucher is also used to pay bill amount against credit purchases. Gateway of tally > Accounting Voucher > Payment (F5)

Receipt voucher is used to record all receipts into Bank or Cash Accounts. Such receipt from debtors, any direct or indirect income, refund of loans or advances given earlier, sale of fixed assets, cash sale etc. Gateway of tally > Accounting Voucher > Receipt (F6)

Receipt voucher is used to record all receipts into Bank or Cash Accounts. Such receipt from debtors, any direct or indirect income, refund of loans or advances given earlier, sale of fixed assets, cash sale etc. Gateway of tally > Accounting Voucher > Receipt (F6)

To account a fixed asset purchase in tally, normally we use journal voucher in earlier versions of tally. But now you can use purchase voucher to enter purchase of fixed assets in latest versions of tally ERP9. To activate fixed asset purchase in purchase voucher, Gateway of Tally > F12 Configure > Voucher Entry Allow expense/fixed assets in purchase vouchers : Yes

Generally as per option given we use Journal Voucher record purchase return, sales return, depreciation, bad debts etc.in Tally. But Debit Note voucher (Ctrl+F9) can be used to enter purchase return and Credit Note voucher (Ctrl+F8) can be used to enter sales return in latest versions of tally ERP9.

The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity(Capital) .

F11 features of company are further divided into different categories 1. Accounting Features 2. Inventory Features 3. Statutory and Taxation 4. Tally Software Services (TSS) Features 5. Add-on Features

These product in India generally sold in Kilogram (Kgs) , so Kgs unit should be created for stock items like grain, pulse, sugar, oil, ghee etc. It can vary country to country.

Gateway of Tally > Display > Trial Balance

Gateway of Tally > Reports > Profit & Loss A/C

By default, Item Invoice Mode (Alt+I) is on in Purchase and Sales voucher

Gateway of Tally > Display > Account Books > Purchase Register

Stock Categories offers an alternative classification of Stock Items. Like stock Groups, classification is done based on similarity in behaviour. The advantage of Categorizing items is that you can classify the stock items (based on functionality) together – across different stock groups which enables you to obtain reports on alternatives or substitutes for a stock item. It is not Mandatory. For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features > Set Yes for Maintain stock categories .

Trial balance is a list of ledger accounts balances, showing debit balances and credit balances, separately on a certain date. Trial balance is only a statement not an account. Every transaction has equal debit and credit aspects so that the trial balance possesses equal debit and credit balances. Preparing trial balances monthly will help you to fix errors as soon as it happens.

Gateway of Tally > Display > Account Books

Gateway of Tally > Display > Inventory Books