Tally is an enterprise resource planning accounting software used mainly in small and medium enterprises to record the day-to-day business data of a company. The advantage of this software is it can easily integrate with other business applications like sales, payroll finance, etc. It is an important software for several jobs. Here are some commonly asked Tally interview questions.
What Is Tally?
Tally is a popular accounting software used in many countries, including India. Tally is a digital accounting format, and the entries are maintained similarly to the manual book of accounts. ERP 9 (release 6.6) is the latest release version, which will be replaced by the new version TallyPrime.
Use of Tally
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 Interview Questions and Answers
1. What are the most important features of Tally software?
- Tally is multilingual. You can maintain accounts in one language and view reports in other preferred languages.
- You can use the payroll feature to automate employee records management.
- Transactions maintained in multiple locations can be updated automatically.
- One licensed version of the Tally software can create and maintain 99,999 company accounts.
2. What are the available features in Tally ERP 9 for Accounting?
Tally ERP 9 provides the following benefits:
- To enable a better financial management
- Budget supervision
- Management of cost and profit center for better ledger management
- Additional features like printing of cash vouchers, cheques, etc
- Invoicing of all dealers
3. What are the types of ledgers that can be created in Tally ERP 9?
The type of ledgers that you can create in Tally ERP 9 is as follows:
- Generating tax ledger
- Generating current liabilities
- Generating bank account
- Generating party ledger
- Generating sales/purchasing ledger
- Generating Income/Expense ledger
4. What are the different types of vouchers created in Tally ERP 9? 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 |
5. What are the options available in the Account books menu in Tally ERP9?
- Purchase Register
- Sale Register
- Journal Register
- Bank Book
- Cash Book
- Group Summary
- Ledger
6. What falls under Intangible Assets?
- Trade Marks
- Domain names
- Patents
- Brand names
- Copyright, etc
7. What are the predefined ledgers available in Tally ERP 9 software?
There are two predefined ledgers available in Tally ERP software and are as follows:
- Cash: Cash-in-hand ledger is created in this predefined ledger group. The opening balance can be entered as on the books beginning from.
- Profit and Loss Account: This ledger is created under the primary group, and the previous year's profit or loss can be entered as the opening balance of this ledger.
8. What are some statutory features available in Tally ERP?
Following is the list of statutory features available in Tally ERP:
- Value Added Tax
- Goods and Service Tax
- Service Tax
- Exercise Tax
- The Tax collected/deducted at the source
- Payroll Statutory
9. What is the functional enhancement in Tally ERP 9 software?
- Following are the primary functional element enhancement available in Tally ERP 9:
- VAT: Tally ERP 9 provides an option to record items with diverse VAT rates by adjusting the "Default Accounting Allocations for Selected Item in Invoice" setting.
- Accounting voucher: The enhanced feature in Tally ERP 9 allows the vouchers to be numbered successively.
- Payroll: This new feature facilitates setting up the salary according to the National pension scheme.
- Credit limits: This is set to control the position of the party ledger that is non-functional on the sales order. This credit limit notifies via a pop-up on the credit limit; if required, you can still save the voucher.
- CST: It provides the user facility to the CST form details entered in the invoice to get printed.
- Inventory vouchers: It allows printing the godown address for the inventory section.
- Emailing option: Tally ERP 9 provides an opportunity to send out accounting reports to several recipients and a chance for net banking and printing in different formats.
10. How to set up an employee in Tally ERP 9 for their payroll?
Tally ERP 9 provides the ability to create required groups and categorize them into employee categories, employee groups, and employees.
-
Employee Group Creation:
- Select Primary Cost Category under the employee group formation screen.
- Rename the employee's group as "Sales."
- Make this group "Primary" and click on admit to create the employee group formation.
-
Employee Master:
All the required details can be recorded like passport, statutory information, contract details, etc.
11. How can data be encrypted in Tally ERP 9?
You can use the Tally Vault function to encrypt data in Tally ERP 9. Tally Vault can be accessed at the gateway of Tally and key in F3, then select the company to encrypt the data. You can access this encrypted data only with a valid password.
12. How to create multiple ledgers in Tally ERP 9?
- Open Accounts info on the Tally gateway and select Ledgers, locate and select multiple ledgers and click on create.
- Once created, enter the details under the group and update the information of the name of the ledger on the multiple ledger creation tabs.
- Click Enter and accept yes to create multiple ledgers.
How to Prepare for Tally Interviews?
To prepare for the Tally interview questions, you will have to prepare your selling point and reason why you want this job. Please research the organization you will be interviewed for, as this will help you anticipate the interviewer's reservations and concerns. Be prepared for all the standard question exchanges and practice these before the interview. The impression will have to be registered in the first few minutes of the interview and close on a positive note.
Tips for Tally Interview
These tips will help you prepare better to face tally interview questions.
-
Master the Tally Software
You should be well versed with the software, and as an accounting professional, this is what is expected from the candidate attending the interview.
-
Remember All the Shortcuts
Revise all the keyboard shortcuts and their functions. The interviewer is expected to test your knowledge by asking about shortcuts.
-
Demonstrate Your Experience From Past Work
Whether you have an experience in the past using Tally for actual business or attending a practical session during training, please use some examples from work experience while speaking in the interview.
-
Understand the Business
Remember to research the company and its nature of business, as this will help you estimate the focus of the interview.
-
Confidence and Professional
It is always an advantage to be available for the interview on time. Remember to dress up in formal attire. You should exude confidence and intelligence. Handling accounts is crucial, and the interview should make you confident and calm. Demonstrate your expertise and experience in handling the software in the interview to win the interviewer over.
Conclusion
Prepare for these tally interview questions before your next interview and share your interview experience with us in comments. If you want to become a project manager, sign-up for our PGP in Project Management. Attend live online interactive classes, masterclasses from UMass Amherst, Harvard Business Publishing case studies, and capstone projects. Enroll Now!
