Top 100 Tally Interview Questions and Answers

If you’re preparing for an accounting or finance job interview, chances are you’ll face questions on Tally – India’s most popular accounting software. Here’s a curated list of the top 100 Tally interview questions with answers, from basics to advanced, including practical scenarios.

---

🔹 Basic Tally Interview Questions

These cover fundamental concepts every candidate should know:

• What is Tally and who developed it?

• Difference between Tally ERP 9 and TallyPrime.

• Shortcut keys for creating company, ledgers, and vouchers.

• Types of vouchers (Payment, Receipt, Contra, Journal, Sales, Purchase).

• Use of Groups, Ledgers, Gateway of Tally, Trial Balance.

• Security features like TallyVault.

---

🔹 Intermediate Tally Interview Questions

Here, interviewers check your working knowledge:

• Accounts Only vs Accounts with Inventory.

• Cost Centers, Bill-wise entries, Multi-currency feature.

• GST, TDS, TCS configuration in Tally.

• Difference between Capital & Revenue Expenditure.

• Payroll setup and statutory compliance.

• Day Book, Stock Summary, Balance Sheet shortcuts.

• Budgets, Interest Calculation, and Scenario Management.

---

🔹 Advanced Tally Interview Questions

For experienced candidates, focus shifts to:

• Audit features and Remote Access.

• ODBC connectivity with Excel.

• Memorandum & Optional Vouchers.

• Job Costing, Job Work, and Batch-wise details.

• Bank Reconciliation, Post-Dated Cheques.

• Cash Flow vs Fund Flow reports.

• Ratio Analysis & MIS reports.

• E-Way Bill and e-Invoicing.

---

🔹 Practical & Scenario-based Questions

Employers also test real-world accounting entries in Tally, like:

• Recording GST adjustments and ITC set-offs.

• Passing entries for bank loans, fixed assets, depreciation.

• Sales return, purchase return, bad debts, outstanding expenses.

• Owner’s capital, drawings, prepaid expenses, investments.

• Export sales, reverse charge mechanism (RCM).

• Payroll slips and advance payments.

• Splitting company data, backup & restore, enabling multi-user.

---

✅ Why These Questions Matter?

Interviewers expect you to not only know theory but also be able to pass journal entries and navigate in Tally. Practice with:

• Shortcut Keys (F4 – Contra, F5 – Payment, F6 – Receipt, F7 – Journal, F8 – Sales, F9 – Purchase).

• Reports (Balance Sheet, Trial Balance, Stock Summary, Cash Flow).

• Compliance (GST, TDS, Payroll).

---

🎯 Final Note

Mastering these 100 Tally interview questions and answers will boost your confidence for any accounting, finance, or auditing job. Focus on both theory + hands-on practice to stand out.

Top 100 Tally Interview Questions with Answers

🟢 Section 1: Basic Tally Interview Questions

1. What is Tally?
   ➝ Tally is an accounting software used for recording day-to-day business transactions, managing accounts, inventory, taxation, payroll, and compliance.

2. Which company developed Tally?
   ➝ Tally was developed by Tally Solutions Pvt Ltd, Bangalore.

3. What does ERP stand for in Tally?
   ➝ ERP = Enterprise Resource Planning.

4. What is the latest version of Tally?
   ➝ TallyPrime (latest release updates regularly).

5. What are the main features of Tally?
   ➝ Accounting, Inventory Management, GST compliance, TDS, TCS, Payroll, Banking, and Remote Access.

6. What is the default company name in Tally?
   ➝ “TallyVault” or “Gateway of Tally” appears before creating a company.

7. What is the shortcut key to create a company in Tally?
   ➝ Alt + F3 → Create Company.

8. Can Tally be used without accounting knowledge?
   ➝ Yes, Tally is user-friendly and designed to be used by non-technical users as well.

9. What is the shortcut key to shut a company in Tally?
   ➝ Alt + F1.

10. What is Tally Vault?
    ➝ It is a security feature in Tally to encrypt company data with a password.

11. What are ledgers in Tally?
    ➝ Ledgers are accounts where transactions are recorded under appropriate heads (e.g., Sales, Purchases, Cash, Bank).

12. What are Groups in Tally?
    ➝ Groups classify ledgers for reporting purposes (e.g., Assets, Liabilities, Income, Expenses).

13. What is Gateway of Tally?
    ➝ It is the main screen/dashboard from where all Tally features can be accessed.

14. What is the difference between Single Ledger Creation and Multiple Ledger Creation?
    ➝ Single Ledger: One ledger at a time.
    ➝ Multiple Ledgers: More than one ledger created in one screen.

15. What is the shortcut to create a ledger in Tally?
    ➝ Alt + C.

16. What are Vouchers in Tally?
    ➝ Vouchers are documents that record financial transactions.

17. What is the shortcut to display the list of vouchers in Tally?
    ➝ Alt + F8 (for Sales), F9 (for Purchase), F5 (for Payment), etc.

18. Name the different types of vouchers in Tally.
    ➝ Contra, Payment, Receipt, Journal, Sales, Purchase, Credit Note, Debit Note, etc.

19. What is the shortcut to create a Sales Voucher in Tally?
    ➝ F8.

20. What is the shortcut to create a Purchase Voucher in Tally?
    ➝ F9.

---

🟡 Section 2: Intermediate Tally Interview Questions

1. What is a Trial Balance in Tally?
   ➝ A statement showing debit and credit balances of all ledgers.

2. How do you create a new company in Tally?
   ➝ Alt + F3 → Create Company → Fill details.

3. What is the difference between Tally 9 ERP and TallyPrime?
   ➝ TallyPrime is the updated version with simplified navigation, improved GST features, and better reporting.

4. What is the use of Cost Centers in Tally?
   ➝ To track income/expenses by departments, projects, or units.

5. What is the shortcut for Balance Sheet in Tally?
   ➝ Alt + F1 (in Reports → Balance Sheet).

6. What is the difference between Accounts Only and Accounts with Inventory in Tally?
   ➝ Accounts Only: For accounting transactions only.
   ➝ Accounts with Inventory: For businesses dealing with stock/inventory.

7. What is a Contra Voucher?
   ➝ Used to record transactions between cash and bank accounts.

8. What is the shortcut key for Contra Voucher?
   ➝ F4.

9. How can you view the Stock Summary in Tally?
   ➝ Gateway of Tally → Reports → Stock Summary.

10. What is TDS in Tally?
    ➝ Tax Deducted at Source, managed under Taxation features.

11. What is TCS in Tally?
    ➝ Tax Collected at Source, also managed in Tally.

12. What is the difference between Capital and Revenue Expenditure?
    ➝ Capital: Long-term investments (e.g., machinery).
    ➝ Revenue: Day-to-day expenses (e.g., rent, salaries).

13. How do you enable GST in Tally?
    ➝ F11 → Enable Goods & Service Tax (GST).

14. What are GST-related vouchers in Tally?
    ➝ Sales, Purchases, Debit Notes, Credit Notes.

15. What is the difference between Statutory & Payroll Features in Tally?
    ➝ Statutory: For taxes (GST, TDS, TCS).
    ➝ Payroll: For employee salary and compliance (PF, ESI).

16. What is the shortcut key for Day Book in Tally?
    ➝ Alt + F5.

17. What is the shortcut key for Ledger Creation?
    ➝ Alt + C.

18. What is Multi-Currency in Tally?
    ➝ Feature to handle transactions in foreign currencies.

19. What is Bill-wise entry in Tally?
    ➝ Helps track bills receivable and payable for parties.

20. What is the difference between Simple Unit and Compound Unit in Tally?
    ➝ Simple: One unit (e.g., kg, pcs).
    ➝ Compound: Combination (e.g., 1 Dozen = 12 pcs).

---

🔴 Section 3: Advanced Tally Interview Questions

1. What is Audit Feature in Tally?
   ➝ Allows auditors to check and validate transactions.

2. What is Remote Access in Tally?
   ➝ Accessing Tally data from anywhere via Tally.NET.

3. What is Tally ODBC?
   ➝ Open Database Connectivity to export Tally data into other software like Excel.

4. What is the difference between Alter and Delete in Tally?
   ➝ Alter: Modify details.
   ➝ Delete: Remove completely.

5. How do you activate Payroll in Tally?
   ➝ F11 → Enable Payroll Features.

6. What is the difference between a Debit Note and a Credit Note?
   ➝ Debit Note: Issued for purchase return.
   ➝ Credit Note: Issued for sales return.

7. What is Job Costing in Tally?
   ➝ Used to track income/expenses for specific jobs or projects.

8. What is Job Work in Tally?
   ➝ Records outsourced work and materials sent/received.

9. What is the use of Batch-wise details in Tally?
   ➝ Tracks stock items batch-wise (useful for medicines, food items).

10. What is Reorder Level in Tally?
    ➝ Stock level at which new purchase order should be placed.

11. What is the difference between Cash Flow and Fund Flow in Tally?
    ➝ Cash Flow: Movement of cash in/out.
    ➝ Fund Flow: Movement of working capital.

12. What are Memorandum Vouchers?
    ➝ Temporary vouchers not affecting accounts until converted.

13. What is the shortcut for Memorandum Voucher?
    ➝ F10.

14. What are Optional Vouchers in Tally?
    ➝ Provisional vouchers that can be later converted into actual vouchers.

15. What is Reverse Charge Mechanism (RCM) in Tally GST?
    ➝ Tax liability shifts from seller to buyer.

16. What is the difference between Item Invoice and Accounting Invoice?
    ➝ Item Invoice: Includes stock/inventory.
    ➝ Accounting Invoice: Only services/accounts.

17. What is Cost Category in Tally?
    ➝ Allows classification of cost centers into categories.

18. What is the use of Interest Calculation in Tally?
    ➝ Calculates interest on overdue balances.

19. What are Budgets in Tally?
    ➝ Used to set financial limits and compare actual vs budget.

20. What is Scenario Management in Tally?
    ➝ Used for forecasting by including/excluding certain vouchers.

21. What are Post-Dated Cheques in Tally?
    ➝ Cheques dated for future recorded via PDC vouchers.

22. What is the use of Bank Reconciliation in Tally?
    ➝ Matches company books with bank statements.

23. What is the shortcut for Bank Reconciliation?
    ➝ Display → Account Books → Bank Accounts → Reconciliation.

24. What are Statutory Reports in Tally?
    ➝ Reports related to GST, TDS, PF, ESI, etc.

25. How to enable e-Payments in Tally?
    ➝ Enable via F11 features → Banking.

26. What is the difference between Stock Journal and Journal Voucher?
    ➝ Stock Journal: Transfer of stock.
    ➝ Journal Voucher: Adjustments between accounts.

27. What is Gross Profit and Net Profit in Tally?
    ➝ Gross Profit = Sales – COGS.
    ➝ Net Profit = Gross Profit – Expenses.

28. What are MIS Reports in Tally?
    ➝ Management Information System reports like Cash Flow, Ratio Analysis.

29. What is Ratio Analysis in Tally?
    ➝ Tool to analyze financial performance via ratios.

30. What are Tally Add-ons?
    ➝ Third-party customizations/plugins.

71. How to pass GST adjustment entry in Tally?

👉 Sometimes Input GST and Output GST need adjustment.
Entry:

• Output GST A/c Dr

• To Input GST A/c

Steps in Tally:

1. Gateway of Tally → Accounting Vouchers → F7 (Journal).

2. Debit: Output GST.

3. Credit: Input GST.

4. Narration: “Adjustment of GST Liability”.

---

72. How to transfer stock between branches in Tally?

👉 Use Stock Journal Voucher.
Entry:

• Branch A Stock A/c Cr

• Branch B Stock A/c Dr

Steps:

1. Gateway of Tally → Inventory Vouchers → F7 (Stock Journal).

2. Enter source godown & destination godown.

3. Save.

---

73. How to generate e-Invoice in Tally?

1. Enable e-Invoice: F11 → GST → Set “Yes” for e-Invoicing.

2. Create Sales Voucher (F8).

3. Enter GST details → Save.

4. Upload JSON to GST portal.

---

74. How to create a Payroll Slip in Tally?

1. Enable Payroll: F11 → Payroll Features → Yes.

2. Create Employee Masters → Salary Details.

3. Go to Gateway of Tally → Display → Payroll Reports → Pay Slip.

---

75. How to pass entry for bank loan in Tally?

Entry:

• Bank A/c Dr

• To Loan A/c

Steps:

1. Gateway of Tally → Accounting Vouchers → F7 (Journal).

2. Debit Bank A/c, Credit Loan A/c.

---

76. How to record advance payments in Tally?

Entry:

• Advance to Supplier A/c Dr

• To Bank A/c

Steps:

1. F5 (Payment Voucher).

2. Debit Advance Account, Credit Bank.

---

77. How to pass entry for Fixed Assets in Tally?

Entry:

• Fixed Asset A/c Dr

• To Bank/Cash A/c

Steps:

1. F5 (Payment Voucher).

2. Debit Asset Ledger, Credit Bank/Cash.

---

78. How to generate GSTR-1 report in Tally?

1. Gateway of Tally → Display → Statutory Reports → GST → GSTR-1.

2. Filter for the period.

3. Export in Excel/JSON.

---

79. How to adjust GST ITC in Tally?

Entry:

• CGST Payable A/c Dr

• SGST Payable A/c Dr

• IGST Payable A/c Dr

• To Input GST A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Payable accounts, Credit Input GST.

---

80. How to record depreciation entry in Tally?

Entry:

• Depreciation A/c Dr

• To Asset A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Depreciation, Credit Asset.

---

81. How to enable E-Way Bill in Tally?

1. F11 → Statutory & Taxation → Enable E-Way Bill → Yes.

2. Enter transaction details in Sales Voucher.

3. Generate JSON for upload.

---

82. How to pass entry for owner’s capital in Tally?

Entry:

• Cash/Bank A/c Dr

• To Capital A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Cash/Bank, Credit Capital.

---

83. How to record Petty Cash expenses in Tally?

Entry:

• Expense A/c Dr

• To Petty Cash A/c

Steps:

1. F5 (Payment Voucher).

2. Debit expense ledger (e.g., Stationery), Credit Petty Cash.

---

84. How to pass entry for Prepaid Expenses in Tally?

Entry:

• Prepaid Expense A/c Dr

• To Bank A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Prepaid Expense, Credit Bank.

---

85. How to pass entry for Outstanding Expenses in Tally?

Entry:

• Expense A/c Dr

• To Outstanding Expense A/c

Steps:

1. F7 (Journal Voucher).

2. Debit expense, Credit outstanding expense.

---

86. How to record Bad Debts in Tally?

Entry:

• Bad Debts A/c Dr

• To Debtor A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Bad Debts, Credit Debtor.

---

87. How to enable Security Control in Tally?

1. Gateway of Tally → Alt + F3 → Security Control → Users and Passwords.

2. Assign user roles.

---

88. How to pass entry for Drawings in Tally?

Entry:

• Drawings A/c Dr

• To Cash/Bank A/c

Steps:

1. F7 (Journal Voucher).

2. Debit Drawings, Credit Bank.

---

89. How to record investment in shares in Tally?

Entry:

• Investment A/c Dr

• To Bank A/c

Steps:

1. F5 (Payment Voucher).

2. Debit Investment ledger, Credit Bank.

---

90. How to pass entry for GST reverse charge in Tally?

Entry:

• Expense A/c Dr

• To Bank A/c

• GST Input A/c Dr

• To GST Payable A/c

Steps:

1. F7 (Journal Voucher).

2. Enter expenses and GST split as per RCM.

---

91. How to record sales return in Tally?

Entry:

• Sales Return A/c Dr

• To Debtor A/c

Steps:

1. F6 (Credit Note).

2. Debit Sales Return, Credit Customer.

---

92. How to record purchase return in Tally?

Entry:

• Creditor A/c Dr

• To Purchase Return A/c

Steps:

1. F9 (Debit Note).

2. Debit Creditor, Credit Purchase Return.

---

93. How to generate a Cash Flow Statement in Tally?

1. Gateway of Tally → Display → Cash/Fund Flow → Cash Flow.

---

94. How to enable Multi-User in Tally?

1. Install Tally in Server & Client mode.

2. Purchase Multi-user license (TallyGold).

---

95. How to split company data in Tally?

1. Gateway of Tally → Alt + F3 → Split Company Data.

2. Enter split date.

---

96. How to back up and restore data in Tally?

Backup: Gateway of Tally → F3 → Backup → Select path.
Restore: Gateway of Tally → F3 → Restore.

---

97. How to use Tally in Multi-Language?

1. Gateway of Tally → F12 → Language Settings.

2. Choose Display & Data Entry language.

---

98. How to integrate Tally with Excel?

1. Enable ODBC: F12 → Advanced Configuration → Enable ODBC = Yes.

2. Use Excel → Data → Get External Data → From ODBC.

---

99. How to pass entry for export sales in Tally?

Entry:

• Debtor A/c Dr

• To Export Sales A/c

Steps:

1. F8 (Sales Voucher).

2. Enter buyer as foreign party, select export sales ledger, enable IGST/Zero-rated GST.

---

100. How to record advance tax payment in Tally?

Entry:

• Advance Tax A/c Dr

• To Bank A/c

Steps:

1. F5 (Payment Voucher).

2. Debit Advance Tax, Credit Bank.