TallyPrime interview questions and answers for freshers
- Go My Class
- Sep 22
- 17 min read
Updated: Oct 4
TallyPrime interview questions and answers for freshers in 2025
Ace Your Job Interview with These Essential Tally Interview Questions!
Prepare with confidence by exploring the most commonly asked Tally interview questions tailored for freshers. Cover key concepts, practical applications, and real-world scenarios to give yourself the edge in securing your dream role.
What is Tally Prime?
Tally Prime is a comprehensive business management software, often called a complete solution for accounting, inventory management, payroll, and GST compliance for small and medium businesses in India. It simplifies business processes by providing insightful reports, streamlining accounting, managing inventory, handling banking, and simplifying tax-related tasks, allowing businesses to focus on growth. Key features include improved search, multitasking, and intuitive data entry to enhance efficiency and decision-making.
Use of Tally Prime
Tally is powerful accounting software that provides a solution to all challenges a business can face. Tally takes care of all tasks essential for enterprise management. Meaningful activities like bank reconciliation, accounts receivable and payable, and record keeping are available in this software.
Tally Prime Interview Questions and Answers
What are the most important features of Tally Prime software?
Tally Prime's key features include an intuitive user interface, a powerful "Go To" search bar for quick access to functions, advanced inventory management, comprehensive business reporting, GST compliance with e-invoicing and e-way bill generation, automated accounting from bank statements, multi-tasking capabilities, and secure remote access. It also offers features like connected banking, invoice personalization, automated bank reconciliation, and robust data security with backup and restore functions
How do you create a new company in TallyPrime?
To create a new company in Tally, follow these steps:
Step 1 :- Open Tally Prime
(Gateway of tally will be appear on the screen)
Step 2 :- Select Company menu or press Alt+K key from the keyboard.
Step 3 :- Select Create option or press C on the keyboard
(Company creation window will be appear on the screen.)
Step 4 :- Fill your company details in the blank fields.
Company Name:- ABC Pvt. Ltd.
Address:- Enter your company address and some contact details.
Financial year beginning from : 1-Apr-25
Books beginning from : 1-Apr-25
Base Currency symbol : ₹, $, etc.
Formal name : INR, Dollar, etc.
Step 5 :- Press Enter and Y or select Yes to accept and save the company.
(Company Created Successful)
Step 6 :- Now Enable the features as per your business needs.
Step 7 :- Press Ctrl+A to save the company features.
(Now you ready to record your financial Data)
How do you record a journal entry in Tally?
To record a journal entry in Tally, follow these steps:
Step 1:- Press F2 for change Date
Step 2 :- Particular:
Debit:- Select the ledger account to be debited and enter the amount.
Credit:- Select the ledger account to be credited and enter the amount.
Step 3 :- Narration: Type Narration to describe your voucher entry and press enter.
Step 4 :- Save the Voucher: Press CTRL+A to save voucher entry.
What is the difference between a voucher and a journal in Tally?
A voucher in Tally refers to a document that records a financial transaction. A journal voucher is a type of voucher that records transactions that do not involve cash or bank accounts, such as adjustments for depreciation, accruals, or prepayments. In other words, a journal is a type of voucher, but not all vouchers are journals.
What is the purpose of the Balance Sheet in Tally?
The Balance Sheet in Tally is a financial statement showing a company's assets, liabilities, and equity at a specific time. Its purpose is to provide a snapshot of the company's financial health and help users understand its financial position.
What is the difference between a payment voucher and a receipt voucher in Tally?
A payment voucher in Tally is used to record payments made to suppliers, vendors, or other parties. In contrast, a receipt voucher records money received from customers, debtors, or other sources. Payment and receipt vouchers are used to record transactions, representing different types.
What is a Ledger in Tally?
In Tally, a ledger is a key accounting component used to record all financial transactions related to a specific account, such as a customer, supplier, income, or expense.
Each ledger represents a unique account and is categorized under predefined groups like Assets, Liabilities, Income, or Expenses.
Examples of Common Ledgers in Tally:
Sales Ledger – Records all sales-related transactions.
Purchase Ledger – Records all purchase-related transactions.
Cash Ledger – Tracks all cash inflows and outflows.
Ledgers are essential for accurate financial reporting and are used in vouchers to post entries in Tally.
How do you delete a ledger in TallyPrime?
To delete a ledger in Tally, follow these steps:
Step 1 :- Select Alter option under masters from Gateway of tally or press A key on the keyboard.
Step 2 :- Select Ledger option under Accounting masters.
(List of ledgers will be appear on the screen)
Step 3 :- Select Ledger from list of ledgers which you want to delete.
Step 4 :- Press Alt + D and Press Enter to Delete ledger.
(Make sure that the voucher entry is first deleted from the ledger you want to delete)
Note: You can only delete a ledger in Tally if it has no transactions or outstanding balances.
What is the purpose of the Profit and Loss statement in Tally?
The Profit and Loss (P&L) statement in Tally is a financial statement that shows the company's revenues, expenses, and net income over a specific period. Its purpose is to provide insights into the company's profitability and financial performance.
What is the purpose of the Trial Balance in Tally?
The Trial Balance in Tally is a report that shows the total debit and credit balances for all ledger accounts in the company. Its purpose is to help users verify the accuracy of their accounting records by checking that the total debits equal the total credits. If the totals do not match, it indicates that there are errors in the accounting records that need to be corrected.
What is the difference between an invoice and a sales voucher in Tally?
The difference between an invoice and a sales voucher in Tally are:
Parameter | Invoice | Sales Voucher |
Definition | A commercial document issued by a seller to a buyer, indicating the products or services, their quantity, and price. | A voucher that records the sale of goods or services and contains details of the transaction. |
Use | Used for billing customers for goods or services sold | Used for recording sales transactions in Tally |
Type of Voucher | A special type of sales voucher that contains additional fields such as invoice number, customer details, and tax information | A regular sales voucher |
Details captured | The product or service details, quantities, prices, taxes, and other charges | The product or service details, quantity, price, and ledger accounts involved in the transaction |
Generation | Generated after the goods or services have been delivered or rendered | Generated at the time of the sales transaction |
Purpose | Serves as proof of the transaction and helps in tracking accounts receivables | Helps in maintaining an accurate record of sales transactions and updating the financial statements |
How do you back up data in Tally?
Step-by-step Guide
Open TallyPrime: and navigate to the Gateway of Tally.
Press Alt+Y (the shortcut for Data) or click on Data in the top menu.
From the menu that appears, select Backup.
The Backup Companies screen will open.
Specify the Backup Destination Path: This is the location where your backup file will be saved. You can either type in the path or use the "select from drive" option to browse for a folder.
Select the Company/Companies: In the right-hand pane, choose the company or companies for which you want to create a backup. You can select multiple companies from the same or different folders.
Press Enter to select all the companies you wish to back up.
Accept: the screen to complete the backup process. TallyPrime will then create a backup file (in RAR format) in the destination folder you specified.
What is the purpose of the Cost Centre in Tally?
The Cost Centre in Tally is a feature that allows users to allocate expenses and revenues to different departments or projects within a company. Its purpose is to help users understand the profitability and costs associated with other parts of the business and make better decisions based on this information.
What are the different types of vouchers created in Tally Prime? Include the shortcuts to generate these vouchers.
Shortcut to Generate the voucher | Type of voucher | Description of the voucher |
F4 | Contra Voucher | These vouchers indicate the transfer of funds from a bank account to a cash account or vice versa, or between different bank accounts |
F5 | Payment Voucher | These vouchers display the history of payments like salary, rental, etc. |
F6 | Receipt Voucher | These vouchers are related to the payment received |
F7 | Journal Voucher | These vouchers maintain the expenses to manage the organization running costs |
F8 | Sales/Invoice Voucher | This voucher generates the sales invoice |
Ctrl+F8 | Credit Note Voucher | These vouchers are generated when a customer returns the purchased goods |
F9 | Purchase Voucher | These vouchers are generated for purchasing items to run the business |
Ctrl+F9 | Debit Note Voucher | These vouchers are generated when a purchased item/goods are returned to the supplier due to damaged goods |
F10 | Reversing Journals | These entries get automatically reversed after the date of issue |
Ctrl+F10 | Memo Voucher | These are temporary vouchers to indicate unknown expenses, and these can be converted into actual sales vouchers or can be deleted |
How do you create a new group in Tally?
Step 1 :- Open Tally Prime (Ignore 1 st step if already open Tally Prime)
(Gateway of tally will be appear on the screen)
Step 2 :- Select Create option under masters from Gateway of tally or press C key on the keyboard.
Step 3 :- Select Group option under Accounting masters.
Step 4 :- Now type group name and select under Group or group type.
Step 5 :- Then Activate some features related to group according to your work and use.
Step 6 :- Now Press Ctrl + A to save group.
(You have Successfully created a group in Tally Prime)
How do you print a ledger in Tally prime?
Go to the Gateway of Tally.
Select Display More Reports (or press Alt+G for Go To).
Choose Account Books > Ledger.
Select the specific ledger you want to print from the list of ledgers.
Access the Print Screen:
Once the ledger voucher screen appears, press Alt+P (the print command).
Configure Print Settings:
The Print Report screen will appear, allowing you to configure various options:
Period: Adjust the date range for which you want to print the ledger.
Voucher Type: Select the type of voucher (e.g., Sales, Purchases) to print for that ledger.
Other configurations: Make any necessary changes to other settings as needed.
Print or Preview:
To preview the ledger before printing, press I.
To print the ledger, press P.
What is the purpose of the Sales Register in Tally?
The Sales Register in Tally is a detailed report that records all sales transactions made by a business within a specific time period. Its primary purpose is to provide a clear and organized view of the company’s sales activities, helping users analyze revenue trends, monitor customer behaviour, and assess overall sales performance.
What is the purpose of the Debit Note in the Tally?
A Debit Note in Tally is used to record situations where goods are returned to a supplier or when there is a need to reduce the amount payable on an existing purchase invoice. It serves as an official document to adjust the supplier’s account for returned goods or to correct errors such as overcharging in the original invoice.
The primary purpose of a Debit Note is to ensure accurate accounting records, reflect the correct payable amount, and maintain transparency in purchase transactions. It helps both the buyer and the supplier reconcile their accounts effectively.
What is the Purpose of the Credit Note in Tally?
A Credit Note in Tally is used when a customer returns goods to the seller or when there is a need to reduce the amount receivable due to an error in the original sales invoice. It serves as an official record to adjust the customer's account by reducing the receivable amount.
What is the Purpose of a Journal Entry in Tally?
Journal entries in Tally are used to record financial transactions that do not involve cash or bank accounts, such as adjustments, depreciation, provisions, and other accounting regulations.
What is Inventory Management in Tally?
Inventory management in Tally involves tracking and managing the movement of goods, including purchases, sales, stock transfers, adjustments, and valuations. Tally provides robust features to monitor stock levels, manage batches, expiry dates, and define units of measurement.
It helps businesses maintain accurate inventory records, avoid stock shortages or overstocking, and streamline overall inventory operations for better decision-making and control.
What is a Stock Item in Tally?
A stock item in Tally represents the individual product or goods that a company buys, sells, or maintains in inventory. It is used to track inventory movement and manage stock levels accurately.
What is a Trial Balance?
A trial balance is a financial report that displays the closing balances of all ledger accounts at a specific point in time. It is used to verify that total debits equal total credits, helping to identify any errors in the accounting records.
What are the Different Accounting Groups in Tally?
In Tally, accounting groups are used to classify ledger accounts for accurate reporting and financial analysis. The main accounting groups include:
Assets
Liabilities
Income
Expenses
Capital
What is the Difference Between a Debit Note and a Credit Note in Tally?
A Debit Note is issued by the buyer to indicate a return of goods or an increase in the amount receivable from the seller due to purchase returns or overbilling.
A Credit Note is issued by the seller to acknowledge a reduction in the amount receivable from the buyer, usually due to sales returns, discounts, or billing errors.
What is a Bank Reconciliation Statement (BRS)?
A Bank Reconciliation Statement (BRS) is a report that compares the bank balance shown in a company’s accounting records with the balance shown in the bank statement. It helps identify and reconcile any differences due to outstanding cheques, deposits in transit, or bank charges.
How Do You Handle GST in Tally?
Tally enables businesses to configure GST details like GSTIN, tax rates, and registration information. It also allows users to prepare and generate various GST reports, including GSTR-1, GSTR-2A, GSTR-2B, and GSTR-3B, simplifying compliance and filing.
What is the Use of the Alter Option in Tally?
The Alter option in Tally lets you modify or update details of existing ledgers, vouchers, and other data entries, enabling corrections and adjustments to be made after initial entry.
What is a Group in Tally?
A group in Tally is a way to classify and organize ledgers. Groups categorize similar types of accounts—such as assets, liabilities, expenses, and income—to streamline accounting processes and simplify financial reporting.
How Do You Set Up GST Rates in Tally?
To set up GST rates in Tally:
Navigate to Gateway of Tally
Press F11: Features
Select Statutory & Taxation
Enable GST
Configure GST rates for sales and purchases as per your business requirements
What is the Difference Between Cash and Bank Accounts in Tally?
A Cash account manages all physical cash transactions like cash sales, payments, and expenses.
A Bank account handles transactions related to bank accounts, including deposits, withdrawals, and bank payments.
What is Tally Vault and Its Use?
Tally Vault is a security feature in Tally that protects sensitive business data by encrypting it. It restricts unauthorized access, ensuring that only users with the correct password can view or modify confidential information.
What is a Ledger in Tally?
A Ledger in Tally is an account used to record and classify all financial transactions related to a particular head, such as expenses, income, assets, or liabilities. It stores detailed information about each account’s transactions.
What is the Day Book in Tally?
The Day Book in Tally is a report that displays all transactions recorded on a specific day. It includes details of various vouchers such as payments, receipts, sales, and purchases, providing a chronological summary of daily financial activities.
How Do You Use Tally for Financial Analysis?
Tally offers essential financial reports such as Profit & Loss Statements, Balance Sheets, and Cash Flow Statements. These reports help businesses analyze their financial performance and make informed decisions.
What are Reversal Journal Entries in Tally?
A Reversal Journal Entry in Tally is used to cancel or reverse a previously recorded journal entry. It is commonly used to correct errors or undo adjustments made in earlier accounting periods.
What are intangible assets? Give examples.
Intangible assets are non-physical assets that a company owns, which do not have a physical presence and cannot be touched or seen. They represent valuable rights, privileges, or competitive advantages, often contributing significantly to a company’s worth. Unlike tangible assets, intangible assets are not usually recorded at their market value on the balance sheet unless acquired through a transaction.
Examples of intangible assets include:
Domain names: Unique web addresses owned by a company.
Trademarks: Symbols, logos, or phrases legally registered to identify a company’s products or services.
Patents: Exclusive rights granted to inventors to manufacture or sell an invention for a certain period.
Copyright: Legal rights protecting original creative works like music, books, or software.
Brand names: Recognizable names that represent a company’s products or services and add to its market value.
Difference between Accounting Vouchers and Inventory Vouchers in Tally
Accounting Vouchers: These are used to record financial transactions such as payments, receipts, and journal entries. They primarily update the accounting ledgers and directly impact the financial statements of the business.
Inventory Vouchers: These are used to record the movement of goods, such as purchases, sales, stock transfers, and manufacturing. Inventory vouchers update both the accounts and the inventory records.
Use of Stock Categories in Tally
Stock Categories in Tally are used to group similar types of stock items for better organization and management. They help businesses classify their inventory into meaningful segments, making it easier to track, analyze, and report stock data.
Use of Price Levels in Tally
Price Levels in Tally allow businesses to set multiple price points for the same stock item. This feature is useful when you want to offer different selling prices to various customer groups or under different conditions.
With Price Levels, you can:
Define multiple price lists for a single stock item (e.g., retail price, wholesale price, special discount price).
Sell the same product at different prices to different customers or regions.
Automatically apply the appropriate price during billing based on the selected price level.
Manage pricing strategies efficiently without creating multiple stock items.
Difference Between a Group and a Ledger in Tally
Group: A group in Tally is a collection or category of ledgers that share similar characteristics. Groups help organize accounts into logical segments. For example, all asset accounts are grouped under the "Assets" group, while all liability accounts fall under the "Liabilities" group.
Ledger: A ledger is an individual account that records all financial transactions related to a specific item or entity. For instance, the "Cash" ledger tracks all cash receipts and payments.
Process of Creating and Maintaining Inventory in Tally
1. Create Stock Groups: Start by creating stock groups to categorize your inventory items. Stock groups help organize your products based on types, brands, or any other criteria that suit your business. For example, you can have separate groups for Electronics, Furniture, or Clothing.
2. Create Stock Items: Next, create individual stock items that represent the products you sell. While creating a stock item, you need to enter details such as the item name, description, unit of measurement (like pieces, kilograms, liters), and the opening balance (initial stock quantity).
3. Record Inventory Transactions: Maintain your inventory by recording transactions such as purchases, sales, and stock adjustments. When you enter these transactions, Tally automatically updates the stock levels to reflect the current inventory.
4. Generate Inventory Reports: Use Tally’s reporting features to analyze your inventory. You can generate reports like stock summaries, stock valuation, and age-wise analysis to monitor stock movement, valuation, and the age of inventory. These insights help in making informed decisions related to purchasing, sales, and stock management.
Different Types of Taxes That Can Be Configured in Tally
Tally allows you to configure various types of taxes to manage your business compliance and accounting effectively. Some common types of taxes you can set up in Tally include:
Goods and Services Tax (GST): A comprehensive indirect tax applicable in many countries, including India. Tally supports GST with modules for CGST, SGST, IGST, and UTGST for seamless tax calculation and filing.
Value Added Tax (VAT): A tax on the value added to goods and services at each stage of production or distribution. Tally allows VAT configuration for states or regions where it is applicable.
Service Tax: A tax levied on services provided. Though replaced by GST in some regions, Tally still supports service tax for historical data and specific business needs.
Excise Duty: A tax on the manufacture of goods within a country. Tally can handle excise duty for manufacturing businesses as per legal requirements.
Customs Duty: Tax imposed on imports and exports of goods. Tally can be configured to account for customs duty charges.
Professional Tax: A state-level tax on professions, trades, and employment. Tally enables you to maintain professional tax records for payroll purposes.
TDS (Tax Deducted at Source): Tally supports TDS deductions on payments like salaries, contractor bills, and rent, ensuring compliance with tax regulations.
How to Manage Payroll in Tally
Tally provides a comprehensive payroll management system to help you handle employee salary processing, statutory compliances, and payroll reporting efficiently. Here’s how you can manage payroll in Tally:
Enable Payroll Feature: First, activate the payroll feature in Tally by going to F11: Features > Payroll & Attendance and enabling payroll.
Create Employee Masters: Set up individual employee records by creating employee masters. Include details like employee name, contact information, department, designation, salary structure, and statutory information (e.g., PF, ESI).
Define Payroll Components: Define salary components such as basic pay, allowances, deductions (like tax or provident fund), and bonuses. You can configure these components as per your company’s payroll policy.
Set Attendance and Leave Records: Maintain attendance and leave details for employees, which can affect salary calculations.
Process Payroll: Record payroll vouchers for each pay period. Tally will calculate the net salary based on the defined components, attendance, and deductions.
Generate Payroll Reports: Use Tally’s payroll reports to view payslips, salary statements, attendance summaries, and statutory compliance reports such as PF, ESI, and TDS.
Compliance and Payment: Manage statutory deductions and payments directly from Tally, ensuring timely compliance with government regulations.
Golden Rules of Accounting
The Golden Rules of Accounting form the foundation of the double-entry accounting system, which Tally follows for recording transactions. These rules guide how to debit and credit different types of accounts:
Personal Account:Debit the Receiver, Credit the Giver.This rule applies to accounts related to individuals, firms, companies, or entities. When someone receives value, debit their account; when someone gives value, credit their account.
Real Account:Debit What Comes In, Credit What Goes Out.This rule applies to tangible assets like cash, machinery, and stock. When an asset comes into the business, debit it; when it goes out, credit it.
Nominal Account:Debit all Expenses and Losses, Credit all Incomes and Gains.This rule applies to income, expenses, gains, and losses. Expenses and losses are debited, while incomes and gains are credited.
What are the Two Pre-Defined Ledgers in Tally?
Tally comes with two default ledgers:
Cash Ledger:Automatically created under the "Cash-in-Hand" group, this ledger is used to record all cash transactions within the business.
Profit & Loss Account:This primary ledger is used to calculate and report the company’s net profit or loss by summarizing income and expenses.
How to enable GST in TallyPrime?
Open the company and press F11 > Enable Goods and Services Tax (GST) > Yes, and then enable the option Set/Alter Company GST Rate and Other Details.
What is the Purpose of a "Zero Value" Transaction in Tally?
A Zero Value transaction in Tally is used when the actual quantity of goods moved differs from the billed quantity, often with no monetary value recorded. This is commonly applied for free samples, promotional offers, or goods given without charging an invoice. It helps track inventory movement accurately without affecting sales revenue.
What is the shortcut key to Recall the Last Narration in Tally
The shortcut to recall the last narration is Alt + R.
What is the shortcut key to Cancel a Daybook of Vouchers in Tally
The shortcut to cancel a daybook of vouchers is Alt + X.
What is the shortcut to Repeat the Narration on a Voucher in Tally
To repeat the narration on any voucher, press Ctrl + R.
What is GST in Tally?
GST (Goods and Services Tax) in Tally is an indirect tax system that is integrated within the software to help businesses comply with GST regulations. Tally allows you to configure and manage GST by enabling tax calculation on sales and purchases, generating GST-compliant invoices, and preparing returns such as GSTR-1, GSTR-2, and GSTR-3B.
With GST in Tally, you can:
Automatically calculate CGST, SGST, IGST, and UTGST based on transaction details.
Maintain detailed records of taxable supplies, input tax credits, and tax liabilities.
Generate GST reports and returns for filing with tax authorities.
Simplify tax compliance and audit processes.
Tips to Crack Your Tally Interview
To ace your Tally interview, keep these tips in mind:
Master the Software: Have a strong understanding of Tally and its core features. Consider taking an online course or practicing regularly to sharpen both your basic and advanced skills. A solid grasp of Tally concepts will boost your confidence and help you answer questions effectively.
Learn Keyboard Shortcuts: Tally interviews often test your knowledge of shortcuts to speed up operations. Make sure you know the commonly used keyboard shortcuts inside out—they can save you time and impress your interviewer.
Be Confident: Practice answering potential questions before the interview. Confidence in your responses shows your preparedness and professionalism.
Research the Company: Learn about the organization you’re interviewing with. Understanding their business helps you tailor your answers to show how your Tally skills align with their needs.
Prepare Work Samples: Showcase your expertise by preparing a portfolio of work samples. Projects from online courses or certifications can demonstrate your practical experience and strengthen your credibility.
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