1) What is Tally, and where is it used?
Tally is an accounting and inventory management software package mainly used to record day to day business data of an organization. It is complete enterprise software for small and medium enterprises. The latest version of Tally is Tally ERP 9, which also has several latest subversions released from time to time.
Tally software can perform all basic accounting functions of an organization. This software can be integrated with other business applications like Inventory, Finance, Sales, Payroll, Purchasing, etc. Tally software is used to perform the following tasks:
It can be used to store all the business transactions of each account in detail.
It is the best choice for small-scale enterprises, carries out efficient business transactions, provides accuracy, and saves a lot of time.
It can also manage payroll and estimate job costing.
It is used to store details and manage inventory items, file a tax return, manage profit and loss statements, prepare a balance sheet, VAT forms, trial balance, cash-flow report, etc.
Tally can manage the data over different locations and synchronize it.
2) What are the most prominent features of Tally software?
Most prominent features of Tally software are:
Tally is considered the best software because it is easy to use, has no codes, robust and powerful, executes in real-time, operates at high speed, and has full-proof online help for any organization.
Tally is multi-lingual software that supports several languages of the world. In Tally, you can also maintain accounts in one language and view reports in other languages.
Using the one licensed version of Tally software, you can create and maintain accounts for upto 99,999 companies.
Using the feature of payroll, you can automate employee records management.
Tally has the synchronization feature, so the transaction maintained in multiple locations offices can be updated automatically.
Tally is used for generating consolidated financial statements as per the company’s requirements.
We can use Tally software to handle financial and inventory management, invoicing, sales and purchase management, reporting, MIS etc.
The feature of Tally customization makes the software suitable for distinctive business functions
3) What are the key advantages of Tally Software?
Key Advantages of Tally Software)
Tally software provides data reliability and security. In Tally, the entered data is reliable and secure.
Several company calculations and financial records that include net deduction, net payment, bonuses, and taxes that need to be made while disbursing salary to employees can be maintained using Tally.
Tally reduces the chances of error to a great extent
Tally is self-explanatory and easy to learn. You can learn it at home or at designated institutes.
Tally is cost-effective and time-saving. It also ensures accuracy in business management. Manual calculations are time-consuming; that’s why all organizations use Tally.
Tally enables the digitalization of bills and signatures, thus staying up-to-date with the latest technology.
Using the Tally software, even a small shop owner can manage his store, keep records of customer bills, and manage financial transactions efficiently.
4) What are the two pre-defined ledgers available in Tally ERP 9 software?
Following are the two pre-defined ledgers available in Tally ERP 9 software:
Cash: In this pre-defined ledger group, a cash-in-hand ledger is created. We can enter the opening balance as on the books beginning from.
Profit and Loss Account: This pre-defined ledger is created under the group Primary. In this ledger, we enter the previous year’s profit or loss as the opening balance of this ledger.
5) What are the types of the ledger we can create in Tally ERP9?
We can create the following types of ledgers in Tally ERP9:
We can create a sales/purchase ledger.
We can create an Income/Expense ledger.
We can create a party ledger.
We can create a tax ledger.
We can create a bank account.
We can create current liabilities.
6) What are the options available in the Accounts books menu in Tally ERP9 software?
The following options are included in the Accounts books menu in Tally ERP9 software:
Sales Register
Purchase Register
Journal-Register
Cash Book
Bank Book
Ledger
Group Summary
7) What is the main purpose of a statement of inventory in Tally?
The main purpose of a statement of inventory in Tally is to view the inventory information based on godowns. It tracks details of items in inventory, carries stock, and checks budget variations according to the forecasts, plans, statistics, etc. It is also used to display, modify and print reports like Tally accounting.
8) What is a group in Tally ERP 9 software?
In Tally ERP 9 software, a group can be defined as a compilation of ledgers of the exact nature. For example, expenses like telephone bills, electric bills, conveyance, etc., are usually included in groups. Ledger of these expenses is shaped to be used while accounting vouchers are entered.
9) What are the key differences between Tally 7.2 and Tally ERP 9?
Tally 7.2 and Tally ERP 9 are both software products from Tally Solutions Pvt. Ltd. Tally 7.2 is an Integrated Enterprise Solution that provides capabilities related to accounting, inventory and reporting, while Tally ERP 9 is an upgraded version of Tally 7.2 that contains some extended functionalities and provides many features like Excise for Dealers, Payroll, TDS, etc. Following is the list of key differences between Tally 7.2 and Tally ERP 9:
Tally 7.2
Tally ERP 9
Tally 7.2 is integrated software that provides accounting, reporting, and inventory management solutions.
Tally ERP 9 is an upgraded latest version of the Tally 7.2 software. It provides extensive features like TDS, Payroll management, Excise for dealers, etc.
The Tally 7.2 version software includes VAT (Value Added Tax) functionality, Licensing and Tax deduction at source.
It is the latest upgraded version, which includes handling POS invoicing, Statutory and Taxation, Payroll, MultilingualMultilingual support, etc.
It is less popular than Tally ERP 9. It is most widely used because of simplifying VAT, Service Tax and TDS formalities.
It is more popular than Tally 7.2 because it provides advanced inventory management and simplifies accounting.
In Tally 7.2, there are two types of licensing, Single User Licensing and Multi-User Licensing.
It is also available in two editions Tally Silver (which is Single User Edition) and Tally Gold (which is Multi-User Edition).
Tally 7.2 is an older version of Tally, so it has less functionality than Tally ERP 9.
Tally ERP 9 contains extended functionalities in comparison to Tally 7.2.
Tally 7.2 is mainly simple accounting software.
Tally ERP 9 is a better and more powerful integrated business accounting software with many newly added functionalities.
Newly added features in Tally 7.7 compared to earlier versions are Value Added Tax, and Tax Deducted at Source, Licensing etc.
Newly added features in Tally ERP 9 compared to earlier versions are Payroll, POS Invoicing, Multilingual Support, Statutory and Taxation etc.
10) What do you understand by reversing journal entries?
Reversing journal entries specifies those made at the start of an accounting period to withdraw the adjusting journal entries completed at the end of the earlier accounting period.
11) What types of vouchers can be created in Tally ERP 9? What are the shortcuts for creating these vouchers?
Following are the different types of vouchers that can be created in Tally ERP 9:
Contra Voucher: This voucher is used to point to the transfer of funds from a bank account to the cash account or cash account to a bank account or in a different bank account of another bank. The shortcut key for creating this voucher is F4.
Payment Voucher): This voucher explains the historical payments on each account like payment of salary, rental, etc. The shortcut key for creating this voucher is F5.
Receipt Voucher): This voucher describes the transactions that relate to payments received. The shortcut key for creating this voucher is F6.
Journal Voucher): This voucher is used to cover the expenses to maintain the organization’s running costs. The shortcut key for creating this voucher is F7.
Sales/Invoice Voucher: This voucher describes the sales made. It also displays the sale invoice. The shortcut key for creating this voucher is F8.
Credit Note Voucher: Entry is made in this voucher when a customer returns the products which weren’t correctly dispensed. The shortcut key for creating this voucher is Cntrl+F8.
Purchase Voucher): This voucher is for items purchased for running the business like raw materials, etc. The shortcut key for creating this voucher is F9.
Debit Note Voucher): This voucher is used for keeping records when goods are returned to suppliers due to any damages. The shortcut key for creating this voucher is Cntrl+F9.
Reversing Journals): This voucher is a special entry that gets automatically reversed after the date of the issue. The shortcut key for creating this voucher is F10.
Memo Voucher): This voucher is used to mark the unknown expense at a moment which can be converted to an actual sale voucher or deleted. The shortcut key for creating this voucher is Cntrl+F10.
12) What do you understand by deferred tax liability? Deferred taxation is a part of which equity?
Deferred tax liability is a listing on a company’s balance sheet that records taxes that are owed but are not due to be paid until a specific future date. It is called deferred tax liability because of the difference in timing between when the tax was accrued and when you have to pay it. Deferred taxation is a part of the owner’s equity.
13) What shortcuts are used for voucher creation and alteration screen in Tally ERP9 software?
In Tally ERP9 software, you have to enter Alt+C to create any master (ledger, stock item) on the voucher or alteration screen. If you want to alter or con?gure any master item on a voucher, you must select a speci?c ledger or stock item on the sales voucher screen and press the Ctrl+Enter buttons.
14) Which types of things come under Intangible Assets?
The following types of things come under Intangible Assets:
Copyrights
Trade Marks
Domain Names
Patents
Brand Names etc
15) What shortcut is used to repeat the narration on a voucher?
The shortcut to repeat the narration on a voucher is Ctrl+R.
16) What is trial balance in accounting?
A trial balance is an accounting report that records the credits in each of the universal ledger accounts of an organization. It is done at the end of posting journal entries to ensure that there is not any posting bug.
17) How can you copy text from Tally?
You can use the shortcut (Ctrl+Alt+C) to copy text and the shortcut (Ctrl+Alt+V) to paste the copied text.
18) Where do the accrued expenses appear on the balance sheet?
The accrued expenses are frequently short-term and appear within the “current liabilities section” of the balance sheet.
19) What is the shortcut to recalling the last narration in Tally?
The shortcut to recall the last narration in Tally is (Alt+R).
20) What kinds of vouchers are used in Tally ERP software?
The kinds of vouchers used in Tally ERP software are:
Debit note Voucher
Credit note Voucher
Memo Voucher
Sales Voucher
Payment Voucher
Contra Voucher
Receipt Voucher
Journal Voucher
Reversing Journals etc.
.
21) What are some available statutory features in Tally ERP?
Following is a list of some available statutory features in Tally ERP):
Service Tax
Value Added Tax
Goods and Service Tax
Excise Tax
Payroll Statutory
The tax collected at the source
Tax deducted at source etc.
22) What is the use of a Statement of Inventory?
The Statement of Inventory is used for the following reasons:
To visualize the reports on Inventory according to the Godowns.
To track the details of items according to the Inventory.
To query on stock and check out the budgets estimates and plans, statistics, etc.
23) How can you see the profit and loss statement in Tally ERP9?
To check the profit and loss statement in Tally ERP9, we should press F1): Complete, which will show the data based on the non-payment primary groups with every transaction that has been entered directly
24) What information does the directory store when you create a company in Tally ERP 9?
When we create a company in Tally ERP 9, the directory in Tally ERP 9 specifies the path where the company data is stored.
25) What is the setup process for employees in Tally ERP 9 for their payroll?
Tally ERP 9 provides a great facility to create the required groups and classify them into different categories such as Employee categories, Employee groups, and Employees for smooth processing of employees’ salaries.
How to create an Employee group?
First, go under the employee group creation screen and select Primary Cost Category as the Category.
After that, name the employee’s group “Sales”.
Now, select the group as “Primary” and click on accept to finish with employee group creation.
This is how the employee group is created.
How to create the Employee Master?
First, go to the employee master.
Here, you can incorporate the information about the employees like constitutional details, passport & visa, appointments letters, etc.
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