Top 25 Tally Interview Questions You Should Know In 2023

June 3, 2023 Arka Roy Chowdhury Knowledge, Skill Development, Tally

Most business enterprises use Tally, a software application, for accounting purposes. This user-friendly software application is used to record financial transactions and also acts as a tool to manage inventory, prepare payroll, and integrate all major business operations like purchase, sales, manufacturing, inventory, etc. Pursue a comprehensive tally course if you want to supervise accounts separately. If you want to successfully maintain an account, you will find this advanced software helpful as it will assist you with the management of salary and payroll method, analysis of cost center for MIS, cost category, and job work, and also all other functions available in Tally. If you are a person who has or is going to take up a tally course, you should be cognizant of the following important tally interview questions. But before going that much further, we will learn about some of the top advantages that Tally has to offer, its disadvantages, and the role it plays.

Significance of Tally

As we mentioned earlier, with the help of Tally, business organizations can record all their financial transactions and journal entries, which is necessary for generating different business reports needed over time. Financial reports like cost center inspections, balance sheets, profit and loss accounts, and stock reports, are required by management for making appropriate business decisions to make the most out of the profitability of the company.

Immediate reports are assessed by the business manager while deciding about the future of a company. With the inception of Tally, now, big organizations, despite having branches or locations can easily view those financial reports and the performance of all their branches and locations. Moreover, they can now understand the prerequisites of each branch, the movement of goods, and GST liabilities.

Since it is the most popular and cost-effective software throughout India, many nations all across the world utilize it, including the United Kingdom, Dubai, Malaysia, and many European and Asian countries.

It is very well-liked by many business owners because of its simplicity and skilled labor. There are multiple institutes across India and worldwide that provide training for Tally and that too at various levels, therefore it is possible to learn Tally software from anywhere. These training facilities exist all around the world and teach Tally Accounting Software.

For small business owners, this accounting software is reasonably priced. Within India in addition to the international offices are places where you can buy the License from any dealer. Professionals such as working chartered accountants and tax attorneys also gain from this software because it is extensively used by many of their clients, thereby making it simpler for them to utilize the audit features offered by Tally.

Advantages of Tally

Ensures Accuracy and Assurance of Information

If you make changes in external data, it will have no effect on the information that is kept in the tally. The complex binary coding ensures the integrity of the stored data. The advanced tally training initially appears daunting, but once completed, the set codes are quite helpful. Because the entered data is automatically saved even when the system closes due to a power failure, Advanced Tally guarantees the accuracy of the information.

Banking Becomes Simple

During the course, you will learn about the newly added feature, which is called banking. This feature lets you create deposit slips, reconcile banks, maintain cheque registers, and print cheques.

Effortless Taxation and Billing

With the help of tally, the whole process of billing and taxation becomes effortless. Besides tax calculation, it also manages the taxes inclusion in service tax, VAT, income tax, customs, etc.

Management of Inventory with Ease

Tally helps to classify the inventories based on their stock items, groups, tariffs, and units. When you work in the manufacturing industry, this function makes the overall method of maintaining inventory successfully seamless. Since Tally ERP is a business software application that is specially designed for small, and medium-sized enterprises, and, also for large enterprises, they will find it easier to use and can be learned easily. Small business owners can easily handle stocks and payroll for employees, calculate TDS, generate invoices, and also calculate GST liabilities.

Now we will explore some of the demerits of Tally.

Not at All a User-friendly Software Application

Most people say that Tally is user friendly and easy to use, but in reality, it is not at all user friendly and easy-to-use software application. Everyone does not possess the desired knowledge of accounting to utilise Tally. Thus, it fails to lead the customers in a simple way on how to utilise it when they do not have adequate knowledge of accountancy.

The Same Transaction Cannot Be Opened from Multiple Screens

You cannot open the same transaction from two computers at the same time. Thus, it consumes too much time, compared to other accounting software applications that let you work on multiple ledgers at the same time. With Tally you can work only on one ledge, making it difficult to view other things parallelly.

The Upgrades Are Not Useful

Tally has undergone some little improvement despite the release of new versions. The difference between Tally 4.5 and Tally 9 ERP is barely visible. One of the biggest disadvantages of this accounting software application is that if you have an older version of Tally, you cannot upgrade it with new features included in the latest versions. Due to the developers’ lack of interest in maintaining the out-dated version of Tally that continues to be in use, you are limited to using one type of tally. However, it is a positive start because they have now given us the opportunity to jump from 7.2 to 9.

Now it is time to discuss the best tally interview questions that are being asked by recruiters. Irrespective of whether you are a fresher or an experienced professional and are going to appear for an interview for a job post under Tally, here are the top 30 Tally interview questions along with answers.

Professional Courses from IIM SKILLS

Top 25 Important Tally Interview Questions

Q1. Why is Tally considered an essential tool in accountancy?

Tally simplifies daily financial transactions and is especially relevant in case of compliance also. It has many built-in features that are useful for accounting like payroll process, interest calculation, service tax, payroll compliances, cheque management inventory handling, etc. This is the first most asked tally interview question.

Q2. Mention the difference between Tally 9 and 7.2?

Tally 7.2 is an accounting software application that provides solutions for inventory, accounting, and reporting. Tally ERP 9 is only an upgraded version of the previous software application version – Tally 7.2. It has extra features like excise, payroll handling, TDS, etc. Tally 7.2 can be utilized for the simplification of TDS, services tax, and VAT, whereas Tally ERP 9 is famous for the progression of simpler accounting and inventory control. This is the second most asked tally interview question.

Q3. Tell me the key functions that are available in Tally ERP 9?

The core functions available in Tally 9 are

Printing cheques, accountancy without codes, consistent multi-lingual function, a control centre that lets you centrally manage and configure a site to an account, and invoicing. This is the third most asked tally interview question.

Q4. Does Tally ERP 9 even include any pre-defined ledgers?

Yes, Tally ERP 9 does indeed have two pre-defined ledgers: –

Cash – which is available under the option of cash-in-hand, thus a cash ledger gets created.

Profit and loss account – This is automatically created under the ledger which is primary. In this type of ledger, the opening balance input is entered as the last year’s profit and loss. This is the fourth most asked tally interview question.

Q5. Describe the forms of ledgers that you can create in Tally ERP 9?

You can create six forms of ledgers in Tally ERP 9, and they are as follows:

Party ledger, income and expenditure ledger, ledger for the purpose of bank account, tax ledger, ledger for the purpose of current liabilities, sales and purchase ledger. This is the fifth most asked tally interview question.

Q6. How many groups are there in Tally ERP 9?

There are 28 in-built groups of which 15 are primary groups and the remaining are subgroups. The groups can be termed as a collective unit of ledgers that fall under a similar category. For instance, fixed costs in a company like rent, salary, insurance, etc. are grouped together. These expenses can serve as the basis for a ledger that will be used to record accounting vouchers. This is the sixth most asked tally interview question.

Q7. What are the most important features included in Tally ERP 9?

Here are the most important features included in Tally ERP 9

TDS – The TDS feature has already been significantly enhanced with new features are added inside the Advanced Tally version. Now, the TDS can also be deducted, and a liability can be recorded within a single voucher. Another choice is to periodically create TDS Liability. The very same ledger can also be created in Tally ERP 9 for payments both related to and not related to TDS.

Payroll – The salaries within the advanced Tally ERP 9 version are distributed in accordance with the NPS (National Pension Scheme).

Central Excise – Along with Excise for manufacturers, the excise of traders function is available in the Advanced Tally version. The Tally ERP 9 is now capable of managing payment to valuation techniques, central excise, numerous excise duties, and numerous ECC numbers for one single company. This is the seventh most asked tally interview question.

Q8. What information does Tally ERP 9 protect just after a company is created?

Tally ERP 9 directory tracks the route to the folder wherein the data is to be saved. This is the eighth most asked tally interview question.

Q9. How can a person find the books of accounts inside Tally ERP 9?

Within the advanced Tally, you must press D at the entry of the accounting software application Tally ERP 9 to see the display menu. Pressing A will bring up the display menu thus you can access the accounts books menu. This is the ninth most asked tally interview question.

Q10. What possibilities are available in Tally ERP 9’s accounts books menu?

Tally ERP 9 has seven options within the account’s books menu, and they are: –

Ledger
Group Summary
Journal-Register
Bank Books
Cash Books
Bank Books
Purchase Register

This is the 10th most asked tally interview question.

Q11. How will use the statement of inventory within Tally ERP 9?

Inventory reports are generated by Tally ERP 9 depending upon the transactions inputted which are loaded to the specified registers, books, and ledgers.

This statement of inventory is utilized to track the information related to inventory, recording even the minute details of items recorded within the inventory, keeping an eye on the budget fluctuations against the forecasts, statistics, carrying out the stocks, etc. This is the 11th most asked tally interview question.

Q12. What is the shortcut key for alteration screen and voucher making in Tally ERP 9?

Advanced Tally has an option, which allows you to create a master that is stock and ledger, on the voucher using the shortcut Alt + C. But if make any changes in the master item on a voucher, you have to select a specified ledger on the sales voucher and press Control (Ctrl) + Enter. This is the 12th most asked tally interview question.

Q13. What are the different forms of vouchers within Tally ERP 9 together with their shortcuts?

In Tally ERP 9, you can create the following vouchers:

Purchase vouchers – This voucher keeps records of items that are bought for running businesses, for instance – raw materials. The shortcut key is F9.

Credit note voucher – Whenever customers return products or items or goods that were improperly dispensed, a credit note voucher gets created. The shortcut key is Ctrl + F8.

Contra voucher – Whenever funds are being transferred from a cash account to a bank account or vice versa or to various bank accounts of separate banks, a contra voucher gets created. The shortcut key is F4.

Memo voucher – The unknown expenses that can, later on, be turned in or deleted to a real sale voucher is recorded here. The shortcut key is Ctrl + F10.

Reversing Journals – This journal is reversed automatically after the issuance date. The shortcut key is F10.

Debit note voucher – this voucher tracks the records of damaged or defective goods returned to suppliers. The shortcut key for that is Ctrl + F9.

Sales or invoice voucher – This voucher records the volume of sales and helps in creating sales invoices. The shortcut key is F8.

Journal voucher – With the help of this voucher, you can maintain the expenses of companies operating expenditures. The shortcut key is F7.

Receipt voucher – This voucher explains the transactions that are linked to the payment received. The shortcut key is F6.

Payment voucher – This voucher explains the earlier payments on every account for instance salaries, rent, etc. The shortcut key is F5.

This is the 13th most commonly asked tally interview question.

Q14. Can you check a company’s statutory details within Tally ERP 9?

Yes definitely, you can check a company’s statutory details within Tally ERP 9 using a shortcut key Ctrl + Alt + B from any screen. This is the 14th most asked tally interview question.

Q15. Can you transform data into an encrypted kind in the advanced Tally ERP 9 version?

Yes, you can use Tally vault to transform data into an encrypted kind. However, in order to utilize this function, you need to enter the gateway of the accounting software application Tally and press the F3 button which will then allow you to choose the company for that you need encrypted data. If you would like to decrypt the data, only systems with a valid password will be able to do so. This is the 15th most asked tally interview question.

Recommended

Q16. What is the shortcut key for repeating the narration on the voucher within Tally ERP 9?

The shortcut for that is – Ctrl + R. This is the 16th most asked tally interview question.

Q17. What is a trial balance and how to check a trial balance in the advanced Tally ERP version?

A snapshot of the ledger balances is a trial balance. It maintains a watch on the numbers to ensure that they have been correctly posted and balanced, and it can be viewed as a check to ensure that the journal entries have been correctly submitted to the general ledger. Verify that the sum of all debts and the sum of all credit balances are equivalent in order to confirm a trial balance.

Q18. How to filter the monetary value information from the majority of the report screens in Tally ERP 9?

Press the shortcut key Alt + F12 to filter the information that is based on monetary value.

Q19. What is the formula for acid test ratio in the context of accountancy?

The formula for acid test ratio in the context of accountancy is CA (Current Assets) – Inventory/ CL (Current Liabilities)

Q20. Describe the process to install an employee for the payroll in Tally ERP 9?

Tally ERP 9 allows you the option for creating groups that are to be classified into categories like ABC employee group, employees, employee group, etc. To create an employee group, you need to choose the ‘Primary cost category’ and select the name of the employee’s group as ‘Sales, choose the group as ‘Primary’, and click on the accept option to finalize the employee group making. In the case of employee master, under this button option, you have to include all the information linked to an employee like joining date, ID details, contact details, etc.

Q21. How can you check P/L (profit as well as loss) statements in Tally ERP 9?

By clicking or pressing on F1: Detailed to check the P/L statement and it will bring out the desired information depending on the default primary group.

Q22. What is the shortcut key for retrieving the previous line that is removed within Tally ERP 9?

If you want to get back the previous line removed within Tally ERP 9 you have to press Ctrl + U.

Q23. Describe the method to produce schedule six P/L accounts using auditor’s edition within Tally ERP 9?

If you want to generate a schedule six balance sheet with the help of auditor’s edition within Tally ERP 9, enter the gateway of the accounting software application Tally ERP 9 and move towards audit and compliance followed by financial statements, and click on P/L account, and the previous year’s company must be loaded using the shortcut key Ctrl + 3 and generate the schedule six P/L account using data of two years.

Q24. What is the shortcut key for adding and duplicating a voucher in Tally ERP 9?

For adding a voucher, you have to press Alt + A, and, for duplicating, press Alt + 2.

Q25. What shortcut key will I press for selecting the voucher form for a buying order?

For selecting the buy order voucher form in Tally ERP 9, we have to press Alt + F4 at the accounting and inventory voucher creating and altercating screens.

Recommended Reads

Frequently Asked Questions

Q1. Are these questions specially curated for Tally students and professionals who want to get lucrative job options?

Yes, the questions have been arranged only after careful deliberation.

Q2. Which is the question that recruiters ask the most?

See, there is no particular question that hirers ask the most, but all these questions are commonly asked by them.

Q3. Is it necessary to learn accountancy before appearing for an interview round?

Yes, of course, it is advised that you mug up all the necessary accounting terms and abbreviations before you appear for any tally interview round. This article covers most questions asked by employers all around the world.

Concluding thoughts on Tally Interview Questions

We believe the aforementioned answers to the Expert Tally Interview questions will assist you in successfully passing the interview. Additionally, if you are new to Tally and want to enhance your skills as well as job roles, you can enrol in advanced Tally training, which will teach all the subjects and features offered in Tally ERP 9.

Author: Arka Roy Chowdhury

Arka Roy Chowdhury has done his post-graduate diploma course from Asian College of Journalism. Previously, he has worked at a few publications. Currently, he is an intern at IIM skills. Arka is an avid reader of sports and entertainment news.