Tally Erp 9 Interview Questions

Here are Tally Erp 9 interview questions and answers for fresher as well experienced candidates to get their dream job.

1. Explain what is Tally and where can it be used?

Tally is an accounting and inventory management software, which is used to perform various functions such as

Perform all basic accounting functions
Estimate job costs
Store and manage inventory details
Manage payroll
File taxes, manage income statements, prepare balance sheet reports, VAT forms, trial balances, cash flow statements, etc.
Maintain budget scenarios
Calculate interest on outstanding amounts
Manage data across different sites and synchronize them

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2) Mention what is the difference between Tally ERP 9 and Tally 7.2?

Tally 7.2	Tally ERP 9
This is an integrated solution that provides functionality related to accounting, reporting and inventory This edition includes VAT (value added tax), licensing and tax deduction It is widely used due to its simplification of VAT, service tax and TDS procedures. It offers two licenses, single user license and multi-user license	This is the advanced version of Tally 7.2 and provides many features like TDS, Payroll Management, Dealer Tax, etc. This version includes POS payment management, legal and tax obligations, payroll, multilingual support, etc. It is more popular as it provides advanced inventory management and simplifies accounting. It is available in two versions Tally Silver (single user version) and Tally Gold (multi user version).

3) Mention the features that are available in Tally ERP 9 for Accounting?

For Accounting Tally ERP 9 provides the following features:

Outstanding Management
Cost/Profit Centers Management
Invoicing
Budget/Scenario Management
Other features like Cheque Printing, etc.

4) Mention what are the functional enhancement or features included into Tally ERP 9?

Email Options: User can send accounting reports to multiple recipients. Additional features like online banking and printing in different formats are also available.
Accounting Vouchers: A new type of numbering feature is added to the voucher, it ensures that the voucher is numbered sequentially.
Print Bank Transaction Details: It provides facility to print bank details on the official receipt.
Credit Limit: Controls that the credit limit defined for the side ledger will not be applied to the purchase order. A warning or alert message will be displayed regarding the credit limit and the user can still save the voucher
CST: Even in simple format, the CST form details entered in the invoice will be printed
Manufacturer’s Excise Duty: All details related to the buyer and supplier can be shown on the voucher; Daily inventory register can also be maintained based on date, multiple item types and rates
Inventory Voucher: For inventory section, you can now mention the store address and also print the name
Payroll: New TALLY ERP 9, allows processing of salaries under National Pension Scheme
Service Tax: As per journal voucher, taxable amount, taxable percentage and notice number will be provided in service tax details. Automatic adjustment of service tax payable can be done for service tax credit and cenvat.
VAT option : Multiple items can be recorded with different VAT rates by configuring the setting “Default accounting allocation for selected item in invoice”.
Tax Audit: Forms like 3CB, 3CD and 3CA have been updated as per CBDT requirement

5) What are the two pre-defined ledger available in Tally ERP 9?

In Tally ERP 9 there are two types of predefined ledgers:

Cash: In the Cash in Hand group this ledger is created, you can enter the opening balance as shown in the books.
Profit and Loss Account: This ledger is created in the Primary group. In this ledger, the profit or loss of the previous year is recorded as the opening balance of this ledger.

6) What are the types of ledger you can make in Tally ERP 9?

These are the types of ledger you can make in Tally ERP 9 are:

Creating a sales/purchase ledger
Creating an Income/Expense ledger
Creating a party ledger
Creating bank account
Creating a tax ledger
Creating a current liabilities

7) What is the shortcuts for Voucher Creation and Alteration Screen in Tally ERP 9?

For Tally ERP 9, to create any master (ledger, stock item) on the voucher or alteration screen, you have to press Alt+C.

To alter or configure any master item on a voucher, you have to select specific ledger or stock item on the sales voucher screen and press Ctrl+Enter.

8) What is the shortcut to repeat the narration on a voucher?

Press Ctrl+R to repeat the narration on a voucher.

9) What is group in Tally ERP 9?

A group is a collection of accounting records of the same nature. In the business world, expenses such as electricity bills, telephone bills, transportation bills, etc. are very costly and are often included in groups. Accounting records based on these expenses are created for use when entering accounting documents.

10) What are the types of Tally ERP 9 vouchers? Also give the shortcut for creating this vouchers?

Types of Tally ERP 9 vouchers are the following:

Contrast Voucher->(F4): It represents the transfer of money from bank account to cash account or from cash account to bank account or from bank to another bank account
Payment Voucher->( F5 ): It describes the payment history like payment of salary or office rent
Receipt Voucher->( F6 ): This document describes any transaction related to receipt like payment to bank
Journal Voucher->( F7 ): It includes the expenses to maintain the business or company like expenses made after marketing
Sales Voucher/Invoice->( F8 ): This document describes the sales made, it shows the sales invoice
Debit Voucher->( Ctrl+F8 ) : This entry is made when a customer returns some items due to an error
Purchase Voucher->(F9): This entry is made when an item is purchased for running a business
Debit Voucher->(Ctrl+F9): This entry is made when goods are returned to a supplier due to damage or expiry
Cancellation Journal->F10: This is a special journal entry that is automatically reversed after the journal entry date
Voucher Memo->Ctrl+F10: This entry is made to show the unknown cost at that time and can be converted into an actual sales voucher or can also be deleted.

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11) What is the short cut to retrieve the last line which is removed in Tally ERP 9?

Short cut Ctrl+U is used, to retrieve the last line which is removed,

12) When you create a company in Tally ERP 9, what information does directory stores?

Directory in Tally ERP 9 specifies the path where the company data will be stored.

13) What is the short cut to recall the last narration saved for the first ledger in the voucher?

Alt+R is the short cut to recall the last narration stored for the first ledger in the voucher.

14) Explain how to set up an employee in Tally ERP 9 for their payroll?

To process employee salaries, Tally ERP 9 provides the facility to create the required groups and categorize them into different categories like employee category, employee group and employee.

1. Create employee group:

In the employee group creation screen -> Select primary expense item as the category
Name the employee group as “Sales”
Select the group as “Primary”, then click on Accept to complete the creation of the employee group

2. Employee data table:

In the employee data table, you can include all the employee related details such as statutory details, passport and visa details, contract details, etc.

15) Explain what trial balance is and how you check trial balance in Tally ERP9?

A trial balance is essentially a summary of all the balances in the ledger and a check to see if the figures are correct and balanced. It is a way to confirm that journal entries are recorded correctly in the ledger. In a trial balance, the sum of the debit balances should equal the sum of the credit balances.

16) Explain what is the default configuration Tally ERP 9 provides for Balance Sheet?

The Balance Sheet in Tally ERP 9 will show two columns with liabilities and assets. The Balance Sheet shows the ending balance of all major capital groups or accounts and the net profit for the period.

17) How can you view the Books of Accounts in Tally ERP 9?

To view the Books of Accounts

Press D at the gateway of Tally ERP 9 to bring up the Display menu.
At the display menu, press A to bring up the Accounts Books menu.

18) What are the options available in Account Books Menu in Tally ERP 9?

Account Books Menu have the following options:

Bank Book (s)
Cash Book (s)
Ledger
Group Summary
Sales Register
Purchase Register
Journal Register

19) What does the statement of Inventory be used for?

Inventory Status is used to view inventory reports based on warehouse. Track item details based on inventory. Also, to query stocks and check forecasts as well as budget plans, statistics, etc.

20) How you can view profit and loss statement in Tally ERP 9?

To view the profit and loss statement, click F1: Detailed and it will show the information based on the default primary groups. With every transaction/voucher that is entered is updated instantly.

21) How you can generate schedule VI profit & loss account using auditors edition of Tally ERP 9?

Using Tally ERP 9 Auditor Edition, Annexure VI Balance Sheet can be created. For this

Go to Gateway of Audit ->Audit & Compliance->Financial Statements->Profit and Loss Account
Press Ctrl+3 to load previous year’s business to create Annexure VI Profit and Loss Account with data from two years.

22)Mention what are the requirements to connect Tally ERP 9 remotely?

Remote connectivity for Tally ERP 9 is very useful feature, to connect remotely you have

At the Customer end	At the remote location
Valid Internet connection Licensed version of Tally ERP 9 with Tally.NET subscription Create and authorize remote users for a business to be operated remotely For remote access, download and Connect your business to Tally .NET for remote access	Valid internet connection A licensed version of Tally ERP 9 A valid password and User ID to access the software

23) What is the short cut to select the credit note voucher in Tally ERP 9?

Press on F8 (cntrl+F8), it allows you to select the credit note voucher in Tally ERP 9.

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24) What is the shortcut to duplicate a voucher and to add a voucher in Tally ERP 9?

To duplicate a voucher: use short cut keys Alt+2
To add a voucher: use short cut keys Alt+A.

25) What is the short cut to cancel a day book or list of vouchers in Tally ERP 9?

In Tally ERP 9, short cut to cancel a day book or list of vouchers is ALT+X.

26) What is the short cut to filter the information based on the monetary value all most from all report screens in Tally ERP 9?

To filter the information based on the monetary value in Tally ERP 9, you can use the short cut Alt+F12.

27) Explain what features you can use to convert data in encrypted form in Tally ERP9?

To convert data into encrypted form in Tally ERP 9, you can use the Tally Vault feature. To use Tally Vault, go to Tally Gateway and press F3. There you can choose the company you want to encrypt your data with. Only people with a valid password can view this encrypted data.