If you are preparing for an accounting or finance job interview, especially one involving Tally, being well-prepared can make all the difference. Tally interview questions are often technical, but with the right preparation, you can answer confidently and leave a strong impression.
In this guide, we will cover the most commonly asked questions about Tally, their best answers, and important tips to help you succeed.
Let’s dive into the top Tally interview questions and answers you need to know!
What is Tally in short answer?
Tally is one of the most popular accounting software used for recording, tracking, and managing financial transactions. It simplifies bookkeeping, inventory management, taxation, payroll, and other accounting tasks for businesses of all sizes.
What are the questions asked in Tally?
Some common Tally interview questions include:
- What is Tally and its main features?
- What are the basic entries in Tally?
- How do you create a company in Tally?
- What is a ledger in Tally?
- Explain the process of voucher entry.
- What is TDS and how is it handled in Tally?
- What is the difference between a group and a ledger?
- How do you generate GST reports in Tally?
- How can you handle payroll management using Tally?
- What is the use of the Cost Center in Tally?
These questions test your practical knowledge of the software and your understanding of accounting fundamentals.
What are the basic entries in Tally?
The basic entries in Tally include:
- Sales Entry (Recording sales transactions)
- Purchase Entry (Recording purchase transactions)
- Receipt Entry (Recording received payments)
- Payment Entry (Recording paid expenses)
- Journal Entry (Recording non-cash transactions)
- Contra Entry (Bank transfers, deposits, or withdrawals)
Each type of entry is managed using specific voucher types in Tally, ensuring accurate financial reporting.
Top Tally Interview Questions with Sample Answers
1. What are the features of Tally ERP 9 / Tally Prime?
Tally offers features like:
- Financial Accounting and Management
- Inventory Management
- Payroll Management
- GST compliance
- TDS and TCS processing
- Multi-currency support
- Budgeting and Forecasting
- Remote access to reports
2. What is a ledger in Tally?
A ledger is the primary accounting record in Tally where all monetary transactions are recorded. Ledgers are grouped under predefined groups like Sales, Purchase, Sundry Debtors, Sundry Creditors, etc.
3. How do you create a company in Tally?
- Open Tally.
- Select “Create Company.”
- Enter company details like name, address, currency, and fiscal year.
- Save and start recording transactions.
4. Explain the difference between a group and a ledger in Tally.
- Group: A collection of ledgers of similar nature (e.g., all bank accounts under Bank Accounts group).
- Ledger: A single account where transactions are posted (e.g., SBI Bank account ledger).
5. What is a voucher in Tally?
A voucher is a document used to record business transactions in Tally. Some types include:
- Payment Voucher
- Receipt Voucher
- Sales Voucher
- Purchase Voucher
- Journal Voucher
- Contra Voucher
6. What is TDS and how is it handled in Tally?
TDS (Tax Deducted at Source) is deducted while making certain payments. Tally allows easy configuration of TDS rates, deduction entries, and generation of TDS returns and certificates.
7. What is a Cost Center in Tally?
A Cost Center in Tally is used to track income and expenses related to a particular department, project, or location separately. It helps in detailed profitability analysis.
8. How do you generate GST reports in Tally?
- Enable GST in Company Features.
- Record GST-compliant transactions.
- Use the GST Reports section to view GSTR-1, GSTR-2A, and GSTR-3B summaries.
- Export reports in formats accepted by the GST portal.
9. How can you handle payroll management in Tally?
Tally’s payroll feature allows:
- Setting up employee profiles
- Configuring salary structures
- Calculating salaries
- Deducting statutory deductions like PF, ESI
- Generating payslips and payroll reports
Tips to Crack Tally Interviews
- Know Practical Shortcuts: Practice Tally keyboard shortcuts to show your efficiency.
- Understand GST and TDS Concepts: Since Tally is heavily used for tax management, a strong understanding of taxation is crucial.
- Highlight Real-Life Use: Share examples where you improved or managed financial records using Tally.
- Stay Updated: Be aware of the latest versions like Tally Prime and new tax compliances.
Final Thoughts on Tally Interview Questions
Preparing for Tally interview questions is essential if you want to stand out in the competitive field of accounting. By mastering both basic and advanced functionalities of Tally, you can confidently tackle any question the interviewer throws at you.
Always remember to align your answers with real-world examples and practical experience. With preparation and confidence, you’ll be ready to impress your next employer!