Here are 100 Tally interview questions and answers, covering fundamentals, accounting, vouchers, inventory, GST, payroll, reporting, data management, and practical troubleshooting.
Tally Fundamentals
1. What is Tally?
Tally is a popular enterprise resource planning (ERP) and accounting software used for recording day‑to‑day business transactions, inventory management, payroll, and generating financial statements. The latest version is TallyPrime.
2. Who developed Tally?
Tally Solutions Pvt. Ltd., founded by Shyam Sunder Goenka and later led by Bharat Goenka.
3. What are the key features of Tally?
Accounting, inventory management, voucher entry, multi‑currency support, GST compliance, payroll, banking, cost centres, ratio analysis, and data synchronisation.
4. What is the difference between Tally.ERP 9 and TallyPrime?
TallyPrime has a more intuitive interface, simplified navigation, enhanced search (Go To), easier multi‑tasking, better data synchronisation, and improved reporting compared to Tally.ERP 9.
5. What is a Company in Tally?
A company is a separate accounting entity with its own chart of accounts, transactions, and reports. You create a company to manage a single legal business.
6. How do you create a new company in Tally?
From Gateway of Tally → Create Company → enter name, primary mailing details, country, currency, financial year from and to, security (password), and activate required features (maintain accounts, inventory, GST).
7. What is the Gateway of Tally?
The main menu screen where all functions are accessible. TallyPrime simplifies this to a home screen with “Go To” search.
8. What are the pre‑defined groups in Tally?
Tally comes with 28 pre‑defined groups (e.g., Sundry Debtors, Sundry Creditors, Sales Accounts, Purchase Accounts, Direct/Indirect Incomes/Expenses, Fixed Assets, etc.).
9. What is a Ledger in Tally?
A ledger is an individual account (e.g., Sales, Rent, Cash, Debtor) that falls under a group. It is the basic unit where transactions are recorded and summarised.
10. What is the purpose of a Cost Centre?
Cost centres track expenses and incomes by department, project, or location, enabling profitability analysis separately from the overall financial accounts.
11. How do you activate cost centres in Tally?
Press F11 (Company Features) → Accounting Features → Maintain Cost Centres → Yes. Then create cost centres under Accounts Info.
12. What is the use of F11 and F12 in Tally?
F11 opens Company Features (enable/disable functionality). F12 opens Configuration (customise current screen’s appearance and behaviour, e.g., show/hide columns in reports).
13. What are the different user security levels in Tally?
Tally allows owner‑level (Data Owner) to set security controls: user/password, role‑based security (e.g., operator can only enter vouchers, manager can view reports), and even TDL‑based custom access.
14. What is the function of the “Go To” search in TallyPrime?
It allows instant navigation to any screen, report, ledger, or voucher by typing its name, eliminating the need to browse menus.
15. Can Tally handle multi‑currency transactions?
Yes. You can create currencies under Accounts Info, set forex rates, and apply them to ledgers. Tally displays balances in both base and foreign currencies.
Accounting & Ledger (Practical)
16. What is an accounting group?
A group organises ledgers into categories of similar nature (e.g., all expense ledgers under Indirect Expenses). Pre‑defined groups exist; you can create custom groups.
17. How do you create a ledger?
Gateway → Accounts Info → Ledgers → Create. Enter name, select under which group, opening balance (if any), and configure tax/currency details.
18. What are the three types of vouchers in Tally?
Accounting vouchers, inventory vouchers, and order vouchers (purchase/sales orders). In practice, we often refer to the main voucher types like Payment, Receipt, Sales, Purchase, Journal, etc.
19. How do you enter a sales transaction in Tally?
Gateway → Accounting Vouchers → F8 (Sales). Select party ledger, sales ledger, item details, quantity, rate, and GST. The voucher automatically updates stock and accounting.
20. What is the difference between sales and sales order in Tally?
Sales voucher records an actual sale that affects accounts and stock. Sales order is an intent to sell that does not affect financial or stock records until converted into a sales voucher.
21. How do you record a payment to a supplier?
Payment voucher (F5). Select supplier ledger, enter amount, bank/cash ledger, and optionally adjust against purchase invoices.
22. What is a contra voucher (F4)?
Used for fund transfers between bank and cash (e.g., cash deposit into bank, cash withdrawal).
23. What is a journal voucher (F7)?
Used for non‑cash/non‑bank transactions like depreciation, provision entries, adjustment entries, and credit purchases/sales when cash/bank is not involved.
24. How do you pass a credit purchase entry?
Purchase voucher (F9) with the supplier ledger, purchase account, items, and GST. No bank/cash involved. If it’s a bill, it creates an outstanding in creditors.
25. What is a reversing journal?
A journal voucher that automatically reverses on a specified date (e.g., provision entries). Tally allows setting “Is Reversing? Yes” in journal vouchers.
Vouchers & Data Entry
26. What is a voucher mode?
The data entry screen for recording transactions. Each voucher type (payment, receipt, sales, etc.) has its own automated numbering and configuration.
27. How do you create a custom voucher type?
Accounts Info → Voucher Types → Create. Define name, default numbering, default printing layout, and optional narration.
28. What is “Auto Fill” in vouchers?
Feature (Alt + A) that retrieves the last entered values for the selected fields, saving time during data entry.
29. How do you delete a voucher?
Press Alt+D while viewing the voucher. If security permits, it’s deleted. You can also set “Allow Deletion” in company features.
30. What is the difference between “Delete” and “Cancel” a voucher?
Cancel removes the effect of a voucher but keeps it in the system with a “cancelled” status for audit trail. Delete permanently removes it (if allowed).
31. How do you use a single entry mode and double entry mode?
In single entry mode, you enter debit or credit once and the opposite is inferred. In double entry mode, you manually enter both debit and credit. Most vouchers use single entry.
32. What is the significance of the “Narration” field?
It provides a description for each transaction entry, aiding in audit and reference.
33. How can you attach a document or image to a voucher?
In TallyPrime, you can use the “Attachments” feature (some versions require TDL). For ERP 9, use Ctrl+O to attach files if enabled.
34. What is “Zero‑valued entries”?
A configuration (F12) that allows vouchers with nil amounts, useful for recording purely non‑financial transactions.
35. How do you print a voucher?
In the voucher screen, press Alt+P to print. You can also configure printing format.
36. What is “Multi‑Account Printing”?
Ability to print multiple ledgers or groups of accounts together instead of one by one.
37. How do you set voucher numbering to be manual or automatic?
Under Voucher Type creation/alteration, set “Method of Voucher Numbering” to Automatic or Manual.
38. How can you import vouchers from Excel into Tally?
Using Tally’s Data Import feature (TDL or Tally XML). TallyPrime also supports importing masters and transactions via Excel/CSV using in‑built utilities.
39. What is a post‑dated voucher?
A voucher dated later than the current date. Tally allows entry of future‑dated vouchers for planning.
40. How do you enter a multi‑currency purchase?
Create a foreign supplier ledger with the appropriate currency. In purchase voucher, select the foreign currency; Tally calculates the base currency amount based on the exchange rate.
Inventory & Stock Management
41. How do you enable inventory in Tally?
F11 → Accounting Features → Maintain Inventory → Yes.
42. What are stock groups and stock categories?
Stock groups classify items based on nature (e.g., Raw Material, Finished Goods). Stock categories classify items across groups for parallel reporting (e.g., Brand, Size).
43. What is a stock item?
An individual product or material tracked in inventory, with units of measure, rates, and GST details.
44. What is the difference between a stock item and a stock group?
Stock group is a container; stock item is the specific product. E.g., Group: Beverages; Item: Cola 500ml.
45. What are units of measure in Tally?
You can create simple units (Nos, Kg) and compound units (box of 10 pcs). Necessary for tracking quantity‑based transactions.
46. How do you record opening stock?
When creating a stock item, enter the opening balance (quantity and rate). Or use a stock journal voucher.
47. What is a Godown in Tally?
A storage location (warehouse). Tally allows multiple godowns to track stock location‑wise.
48. How do you activate multi‑godowns?
F11 → Inventory Features → Maintain Multiple Godowns → Yes.
49. What is a stock journal?
Voucher type (Alt+F7 in inventory mode) used for transfer of stock between godowns, or for recording manufacturing consumption/production without accounts.
50. What is the difference between stock journal and manufacturing journal?
Stock journal manually transfers stock. Manufacturing journal (using bill of material) records consumption of raw materials and production of finished goods simultaneously.
51. What is a Bill of Material (BOM)?
A list of components and quantities required to manufacture a finished good. Tally uses BOM to auto‑consume raw materials when producing finished goods.
52. How do you record a manufacturing process in Tally?
Use the manufacturing journal (Gateway → Inventory Vouchers → Alt+F7 (Stock Journal) and set “Manufacturing” type to Yes) or via a recipe with BOM.
53. What valuation methods are available in Tally for inventory?
FIFO, LIFO, Weighted Average, Standard Cost. Tally also supports batch‑wise and expiry‑date tracking.
54. How do you track batches or expiry dates?
In stock item creation, enable “Maintain in Batches”. Then in transactions, enter batch number and expiry. Tally generates batch reports.
55. What is the purpose of “Actual and Billed Quantity”?
Used when goods are received but invoice is pending, or vice versa. Tracks the difference between physical stock and financial records.
GST (Goods and Services Tax)
56. How do you enable GST in Tally?
F11 Features → Statutory & Taxation → Enable Goods and Services Tax (GST) → Yes. Then set up company GSTIN, tax details.
57. What ledger groups are used for GST?
Tally automatically creates GST tax ledgers under Duties & Taxes when you activate GST. Common: SGST, CGST, IGST, Cess.
58. What is the difference between a composite dealer and regular dealer in Tally?
Regular dealer can claim input tax credit (ITC) and must file detailed returns. Composite dealer pays a fixed rate and cannot claim ITC. In Tally, the GST registration type is set in tax details.
59. How do you record a sales invoice with GST?
In Sales voucher, select party with a valid GSTIN, select sales ledger with appropriate GST rate, Tally auto‑calculates CGST+SGST or IGST based on party’s location (intra‑state vs inter‑state).
60. What is HSN code?
Harmonised System of Nomenclature code for classifying goods; required in GST invoices. In Tally, you can set HSN in the stock item master.
61. How do you set up HSN/SAC in Tally?
Go to Accounts Info → Inventory Info → Stock Items → Create/Alter → specify HSN code field. Tally prompts HSN in transaction based on that.
62. What are the main GST reports in Tally?
GSTR‑1 (sales), GSTR‑2 (purchases), GSTR‑3B (summary), GSTR‑9 (annual), and e‑Invoice reports. Tally also provides reconciliation tools.
63. How do you generate e‑Invoice directly from Tally?
With TallyPrime, you can generate IRN (Invoice Reference Number) by configuring the e‑Invoice portal credentials. Press Ctrl+O on a sales voucher to generate e‑Invoice.
64. How does Tally handle reverse charge mechanism (RCM) under GST?
You create a purchase ledger with “Is Reverse Charge Applicable? Yes”. Then in purchase voucher, Tally calculates tax and it becomes liability of the buyer.
65. What is the time of supply in GST, and how does it affect voucher entry?
It determines when tax liability arises. Tally reports are based on voucher date; for advance receipts, you can book liability using an advance receipt voucher with tax.
66. How do you account for TDS on GST? (Applicable for certain government contracts)
Create TDS deduction ledgers and use TDS section in voucher. Tally prime includes GST TDS feature.
67. How do you correct a GST return error?
If already filed, file an amendment through the respective return. In Tally, adjust by passing correction entries, then regenerate return for next period.
68. What is the GST “Tax Liability” report?
Shows liability on outward supplies, input credit available, and net tax payable. You can compare with GSTR‑3B.
69. How do you reconcile GSTR‑2A with purchase register?
Tally provides a reconciliation report under GST reports; you can import GSTR‑2A data and match with purchase vouchers.
70. How do you print a GST invoice?
In Sales voucher, press Alt+P to print. Customise invoice format with GSTIN, HSN, and IRN (if generated).
Payroll
71. How do you enable payroll in Tally?
F11 → Accounting Features → Maintain Payroll → Yes.
72. What are the key payroll masters?
Employee (individual), Employee Group, Pay Heads (earnings/deductions like Basic, HRA, PF, ESI), Salary Details, and Attendance/Production Types.
73. What is a pay head?
A component of salary that computes a value. Examples: Basic Pay (earning), Professional Tax (deduction). You define calculation types.
74. What are the common statutory deductions in Tally payroll?
PF (Employee & Employer), ESI, Professional Tax, Income Tax (TDS), and other state‑specific levies.
75. How do you set up PF calculation?
Create pay heads for PF contribution with appropriate calculation (e.g., 12% of Basic). Link them to employee groups. Tally auto‑calculates.
76. How do you record attendance?
Use Attendance/Production types. Daily attendance can be entered via Attendance Voucher (Alt+F7, if enabled). Tally calculates salary based on those records.
77. How do you generate a payslip?
Payroll → Payroll Reports → Pay Slips. You can print for individual or multiple employees.
78. What is an “Employer’s contribution” and how is it different from deduction?
Employer contributions are company’s cost (e.g., employer PF), while deductions are taken from employee’s gross pay. Both are configured as pay heads.
79. How do you handle a loan to an employee through payroll?
Set up a deduction pay head as “Loan Repayment” linked to a loan ledger. Process as a recurring deduction.
80. How do you generate Form 16 or PF returns from Tally?
Tally has built‑in reports for Form 16, PF, ESI challans. Under Payroll reports, you find statutory forms that can be exported.
Reports & Data Analysis
81. What is the Balance Sheet in Tally?
A financial statement showing Assets, Liabilities, and Equity as on a particular date. Tally generates it automatically based on ledgers grouped appropriately.
82. What is the Profit & Loss (P&L) statement?
A summary of incomes and expenses over a period, showing net profit or loss. Tally produces it from grouped ledgers.
83. What is a Trial Balance?
A list of all ledger balances with totals of debit and credit; used to verify arithmetical accuracy before final accounts.
84. How do you view a ledger report?
Go to Display → Account Books → Ledger. Enter ledger name. Shows all transactions and running balance.
85. What is cash flow statement?
A report showing inflows and outflows of cash under operating, investing, and financing activities. Tally generates it if cash/bank ledgers are correctly grouped.
86. What is ratio analysis in Tally?
A set of performance indicators like Current Ratio, Debt‑Equity Ratio, Gross Profit %, etc., generated automatically under Ratio Analysis report.
87. How do you view stock summary?
Inventory Reports → Stock Summary. Shows stock items/groups with quantity, rate, and value.
88. What is “Day Book” in Tally?
A register listing all vouchers in chronological order. Useful for auditing and daily reference.
89. How do you compare this year’s sales with last year’s?
Use columnar reports (Alt+C) in sales register, select “This Year” and “Last Year” columns.
90. How do you export a report to Excel or PDF?
In the report screen, press E (Export) or use Print (Alt+P) and select PDF. In TallyPrime, direct export to Excel/PDF is available in many reports.
Data Management & Security
91. How do you take a backup of company data?
Gateway → Backup → select company, destination path. Tally creates a compressed data file. For automated backups, use TallyPrime’s scheduled backup feature.
92. How do you restore a backup?
Gateway → Restore → browse and select backup file. Overwrite or save as new company.
93. What is Tally Vault?
A password encryption feature that locks company data using a code, making it unreadable without the password, even in file explorer.
94. How do you split company data?
Gateway → Split Company Data → select from/to financial year. Creates a new company with data from that period, and the current company retains the remaining.
95. How do you sync data between branch and head office?
TallyPrime has a built‑in “Tally.NET” synchronisation. Configure sync settings, and data merges automatically over internet.
Troubleshooting & Practical Scenarios
96. During data entry, you receive “Account not found” – what could be wrong?
The ledger name you entered does not exist. Use Alt+C in that field to create it immediately, or check spelling.
97. How do you correct a wrong entry made 3 months ago?
Pass a reversing journal or an adjusted entry with appropriate date and narration. If audit period is closed, consult with accountant; Tally allows back‑dated entries with security.
98. What if Tally shows “Error in printing – unable to load printer settings”?
Check default printer in Windows. In Tally, press Alt+P → Configure → select printer. Install Tally‑compatible printer drivers.
99. How do you handle a situation where the company data file is corrupted?
Restore from the latest backup. If minor corruption, Tally may attempt auto‑repair; otherwise, use a clean backup. Always maintain regular backups.
100. After entering a voucher, the closing stock value is incorrect. What should you check?
Verify stock item creation (base units, alternate units, rates), voucher dates, and whether the transactions used correct GODOWNS and batch tracking. Check Inventory Reports → Stock Query for anomalies. Also, ensure no duplicate data entry.