Tally ERP 9 Interview Questions and Answers

This section covers frequently asked Tally ERP 9 interview questions.

1. What is Tally?

Tally is accounting software widely used by small and medium-sized businesses (SMEs) for managing financial and inventory data. It helps manage various aspects of a business like accounting, inventory, sales, purchases, payroll and generating financial statements.

2. Prominent Features of Tally Software.

• Ease of use (no coding required).
• Real-time processing.
• High speed.
• Multi-lingual support.
• Supports multiple companies.
• Payroll management.
• Data synchronization across locations.
• Customizable features.

3. Key Advantages of Tally Software.

• Data security and reliability.
• Accurate financial calculations.
• Reduced error rate.
• Ease of use and learning.
• Cost-effective and time-saving.
• Supports digitalization.

4. Pre-defined Ledgers in Tally ERP 9.

• Cash: Tracks cash in hand.
• Profit & Loss Account: Tracks profits and losses.

5. Types of Ledgers in Tally ERP 9.

(This section would list various ledger types, such as sales, purchase, income, expense, party ledgers, bank accounts, and more.)

6. Options in the Accounts Books Menu.

(This section would list options found under the Accounts Books menu in Tally ERP 9, including sales register, purchase register, journal register, cash book, bank book, and more.)

7. Purpose of Inventory Statement.

The inventory statement shows inventory details by godown (warehouse), tracking stock levels, and comparing them against planned or forecasted values.

8. Groups in Tally ERP 9.

Groups categorize ledgers of similar nature (e.g., expenses, income).

9. Tally 7.2 vs. Tally ERP 9.

10. Reversing Journal Entries.

Reversing journal entries are created at the beginning of a new accounting period to offset adjusting entries made at the end of the previous period.

11. Voucher Types and Shortcuts

In Tally ERP 9, voucher types represent different financial transactions. Each type has a corresponding shortcut key to quickly create and manage transactions. Here's a list of the common voucher types and their shortcut keys:

12. Deferred Tax Liability

Deferred tax liability represents taxes that a company owes but has not yet paid, and it is recorded on the balance sheet. This occurs due to differences between the accounting treatment of certain income and expenses and the treatment for tax purposes. For example, if a company depreciates an asset faster for tax purposes than for financial reporting, it might create a deferred tax liability, which will be settled in future periods.

13. Voucher Creation and Alteration Shortcuts

In Tally ERP 9, creating and modifying vouchers can be done quickly using the following shortcut keys:

14. Intangible Assets.

Intangible assets are non-physical assets like copyrights, trademarks, patents, and brand names.

15. Repeating Narration in Tally.

Use the shortcut Ctrl+R.

16. Trial Balance.

A trial balance is a report summarizing the debit and credit balances of all general ledger accounts. It's used to check for errors before generating financial statements.

17. Copying and Pasting Text in Tally.

Use Ctrl+Alt+C to copy and Ctrl+Alt+V to paste.

18. Accrued Expenses on the Balance Sheet.

Accrued expenses are typically shown as current liabilities.

19. Recalling Last Narration.

Use the shortcut Alt+R.

20. Voucher Types in Tally ERP 9.

(This section lists various voucher types in Tally ERP 9.)

21. Viewing the Profit and Loss Statement.

Press F11 (detailed view) or `F1` (complete view) in Tally ERP 9 to access the profit and loss statement.

22. Statutory Features in Tally ERP 9.

(This section would list various tax and compliance features available in Tally ERP 9.)

23. Company Data Directory.

The company data directory in Tally specifies where the company's data files are stored.

24. Uses of the Statement of Inventory.

(This section would list the uses of the statement of inventory report.)

25. Setting Up Employees for Payroll.

(This section outlines the steps for setting up employee information and groups within Tally ERP 9 for payroll processing.)

26. Standard vs. Tally Text Driver.

27. Trial Balance in Tally ERP 9.

A trial balance is a report showing debit and credit balances of all general ledger accounts. It's a verification step to ensure that debits equal credits.

28. Canceling Daybook Vouchers.

Use the shortcut Alt+X.

29. Default Balance Sheet Configuration.

The default balance sheet shows assets and liabilities.

30. Rally Tally.

(This section describes Rally Tally, which is mentioned in the original text.)

31. Viewing Books of Accounts.

Press Alt+A (or `G` then `A`) in Tally ERP 9.

32. Reversing Journals in Tally ERP 9.

Reversing journals are automatically reversed after a specified period.

33. Encrypting Data with Tally Vault.

(This section would detail the steps involved in using Tally Vault to encrypt data.)

34. Contra Vouchers.

Contra vouchers record transfers of funds between accounts.

35. Migrating TCP from Tally 7.2 to Tally 8.1.

(This section details the migration process.)

36. Creating Multiple Ledgers.

(This section outlines the steps to create multiple ledgers in Tally ERP 9.)

37. Functional Enhancements in Tally ERP 9.

(This section details the new features introduced in Tally ERP 9, such as improved voucher numbering, enhanced VAT handling, credit limits, payroll improvements, and more.)

38. Viewing Profit and Loss Statement (Repeated from earlier).

Use the `F11` (Detailed) or `F1` (Complete) options.

39. Depreciation.

Depreciation is the reduction in the value of an asset over time.

40. Generating Schedule VI Profit & Loss Account

In Tally ERP 9, generating a Schedule VI Profit & Loss Account is essential for companies to comply with financial reporting requirements. Here is the process to generate the Schedule VI Profit & Loss account using the Tally ERP 9 Auditor's Edition:

1. Open Tally ERP 9 and go to the company where you wish to generate the report.
2. Go to Gateway of Tally and select Display.
3. Under the Financial Statements menu, choose Profit & Loss A/c.
4. Choose Schedule VI from the list of available reports to generate the formatted profit and loss account.
5. Customize the report as required, such as by specifying the period and any necessary adjustments for taxes or accounting practices.
6. Finally, you can print or export the generated Schedule VI Profit & Loss Account for compliance or auditing purposes.

41. Bank Reconciliation Statement

A bank reconciliation statement is used to compare a company's bank statement with its internal records, ensuring that both match. This process is essential for identifying discrepancies and ensuring the accuracy of financial records. It involves the following steps:

1. Obtain the bank statement from the bank for the required period.
2. Check the company's records to ensure all deposits, withdrawals, and transactions are recorded correctly.
3. Identify any discrepancies such as unrecorded transactions or errors in the recorded amounts.
4. Adjust the bank records or internal records as necessary to resolve the discrepancies.
5. Ensure the bank balance and the company's records match after all adjustments.

42. Remote Connectivity in Tally ERP 9

Remote connectivity in Tally ERP 9 allows you to access and work with Tally data from any location, ensuring flexibility and productivity. The setup for remote access typically involves the following steps:

1. Ensure that Tally ERP 9 is installed on the system that will act as the server (the one holding the Tally data).
2. Enable remote access in Tally ERP 9 by configuring the Tally.NET feature in the company settings.
3. On the client system (the one from which you want to access the data), open Tally and connect to the server using the provided Tally.NET credentials.
4. Once connected, you can work with the company's data as if you were working locally, with real-time synchronization of any updates.
5. Ensure proper security measures (e.g., user authentication, encryption) are implemented for safe remote access.

43. Selecting Credit Note Voucher.

Use the shortcut F8 (or Ctrl+F8).

44. Recalling the Last Removed Line.

Use the shortcut Ctrl+U.

45. Duplicating and Adding Vouchers.

• Add voucher: Alt+A
• Duplicate voucher: Alt+2

46. Sales Tax on the Balance Sheet.

Sales tax is a liability and appears on the liabilities side of the balance sheet.

47. Canceling Daybook Vouchers.

Use the shortcut Alt+X.

48. Ctrl+N Shortcut.

Opens the calculator in Tally ERP 9.

49. Delivery Notes.

Delivery notes accompany shipments, detailing the goods included.

50. Filtering by Monetary Value.

Use the shortcut Alt+F12.

51. Viewing Company Statutory Details.

Use the shortcut Ctrl+Alt+B.

52. Tally Data Migration Tool.

Migrates data from Tally 7.2 to Tally 8.1 or later versions. Error messages are logged in a file named 'migration.err'.

53. Encrypting Data in Tally ERP 9.

Use the Tally Vault feature to encrypt data.

54. Selecting Purchase Order Voucher Type.

Use the shortcut Alt+F4.

55. Copying and Pasting Text.

• Copy: Ctrl+Alt+C
• Paste: Ctrl+Alt+V

56. Activating GST in Tally ERP 9.

(This section details the steps involved in activating GST features in Tally ERP 9.)

57. Finding Migration Errors.

Errors during data migration are logged in the migration.err file.

39. Depreciation.

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life.

40. Generating Schedule VI Profit & Loss Account (Repeated from earlier section).

Use the auditor's edition of Tally ERP 9 and navigate through the menus to generate the report.

41. Bank Reconciliation Statement.

A bank reconciliation statement compares bank statements with internal records to identify discrepancies.

42. Remote Connectivity in Tally ERP 9 (Repeated from earlier section)

Remote connectivity in Tally ERP 9 allows users to access and manage Tally data from any location, making it a valuable feature for businesses with distributed teams or remote workers. The prerequisites for setting up remote access to Tally ERP 9 data are as follows:

1. Tally.NET Subscription: A valid Tally.NET subscription is required to enable remote connectivity. This subscription allows remote access to the Tally data through the Tally.NET portal.
2. Tally ERP 9 Server Setup: The system hosting the Tally ERP 9 data (the server) must have Tally ERP 9 installed and configured for multi-user access. This setup ensures that the server can handle requests from remote clients.
3. Internet Connectivity: Both the server and client systems need to have a stable internet connection to facilitate seamless communication between the server and remote clients.
4. Tally.NET User Credentials: To access the server remotely, you must have valid Tally.NET user credentials (username and password) that are linked to the company you want to access.
5. Firewall and Security Settings: Ensure that the appropriate ports are open in the firewall to allow Tally ERP 9 to communicate over the internet. Additionally, proper security protocols (e.g., encryption) should be followed to protect the data during remote access.
6. Tally Remote Access Configuration: On the server system, enable the Remote Access feature under the Tally.NET settings. This will allow external systems to connect to the server for remote access.
7. Client System Setup: On the client system, install Tally ERP 9 and configure it to connect to the Tally.NET portal using the user credentials. Once configured, you can access the data as if working on the local system.

By following these steps, remote access to Tally ERP 9 data can be established, allowing for flexibility and ease of use for businesses with geographically dispersed teams.