So far, we have learned about basic of accountancy, creating a company in Tally, posting, vat, excise etc voucher entry and now we will go ahead and will discuss how to prepare a balance sheet in Tally because preparing a balance sheet in accountancy is the final destination for Accounting personnel.
First of all, we will look this matter from the view of manual accounting system
The process of Manual accounting is :
1. Preparing Vouchers/Bills etc.
2. Preparing Cashbook, Journals, Purchase and Sales Register and Bank book
3. Preparing Ledgers by posting items to personal ledger account from the item no. 2 as above
4. Preparing a Trial Balance
5. Preparing Trading and profit & Loss Account
6. Preparing Balance Sheet
Now, Vouchers, Bills ,cheques are the base of accounting system they forms a transaction which are recorded in a day book,cash book,bank register,buy/sales register
then each transaction has been posted to the related ledger account.
then on a particular date, Dr. and credit balance of each ledger transferred to Trial balance, including closing cash on and bank balance on that date.
by following this process, the unit prepares A trial balance
Thus, A trial balance sheet shows the summary of sales,purchase,assets and liability, expenses and income during that period.
Now from the trial balance sheet all items relating to revenue expenses,revenue incomes, sales, purchase etc are transferred to trading and profit and loss account.
Also stock on that date is to be valued and effected into the profit and loss account.
now if any provision for interest, taxes have to be made then the same are effected into Profit and loss account.
The result will be the Net profit and loss account.that will be transferred to Capital Account
Now items representing capital assets, cash/bank balance, capital and sundry debtors and sundry creditors in the trial balance are transferred to the Balance sheet
also stock to be shown in the balance sheet.
Now your balance sheet is ready.
In Any computerization Accounting system, preparation of balance sheet is relatively very different then as stated above.
In computerisation accounting software, all you need to create ledger accounts under proper grouping and t hen start entering vouchers only.
You don’t need to prepare any register
No need of posting to any ledgers
No need to prepare a Trial balance sheet
No need to prepare a Balance sheet
Because once you post a voucher in a proper way, all the above reports the system will prepare automatically without any error or calculation.
In tally, you need to specify closing stock as on the given date to prepare a balance sheet which I have shown in my earlier posting.
Please also read how to put closing stock in tally
Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site
I HAVE GETTING MESSAGE “Tally connect licence about to expired !”. I want to know that how many days are required to updated the licence. How much time to Update licecce in within time. Please suggest me immediately. Presently we are running two diffrent release tally (1) Tally 9.3 beta (2) Tally.erp 9 so i would like to inform you for your current situation.
Dear Rupesh,
I have sent you personal message and an invitation to Gtalk.
We will speak over the issue there
Dear Sir
What is yur id…Actually i wanna some disus.. abt
tally 9.0..pls help me abt..
thnx
SAMEER
mkr2005 at gmail
We have noticed that we can’t tally stock in tally software. Opening + Inward – Consumption = Closing stock. We have check all parameter but can’t get solution. Then i reset all coniguration. Difference is display in consumption.
Dear Rupesh,
Have you posted Consumption and Inward Entries through Inventory vouchers ? If possible please send me screen shot of 2-3 entries
Dear Sir,
Our company incorporated on 20.10.2009, all expenses including fixed assets are purchased before incorporation.
how can i prepare Balance Sheet, how I show before incorporation exps. to Balance Sheet.
Kindly give your suggestion, its urgent.
Thanks & Regards,
Priti
Dear Priti,
Expenses prior to incorporation are generally treated as normal expenses however as on date of incorporation they are transferred to pre operative expenses (under misc. expenses) which comes under balance sheet.
In case of further clarification, please do not hesitate to contact me
login for more discussion in tally and accountancy.
thanks
Thanks for your reply.
I need some more help, if you have any gmail id. then we can chat online.
Thanks & Regards,
Priti
mkr2005 gtalk/gmail id
Dear Sir,
I have made entries in tally 7.2. Being the first year, I have entered the opening balances of the balance sheet items in tally, and thereafter did all the entries. Now, while seeing the balance sheet in tally, I am finding a difference of Rs 1,200 in the B/S (assets being on higher side). I have thoroughly rechecked the opening balances and all other possibile reasons which i could have thought of but unsucessful to resolve the problem. Please help. Even, I tried to rewrite the company using the function Ctrl+Alt+R, but it gives an error message Internal Error – Memory Control Violation.
Please solve it asap.
Thanks & Regards, Ateesh
Dear ateesh,
If there is a difference in opening balance, then you do not need to re write the company. it is not software error but 100% mistake in writing opening balance.
What is the FY for which you have are preparing your books of account ? then compare the opening balance in tally you have entered with the closing balance as per your balance sheet of the last FY.
In case problem still not solved, you may contact me on yahoo messenger at oz0021 or Gtalk at mkr2005
best regards
Hi sir
1-Explain the complete details about how to create Trail Balance,Trading , Profit & Loss a/c and Balance sheet
2-How should i transfer the previous year profit to the next year,
what is the procedure.
3-pls explain in details regarding Rectification on Errors
Saleem,
In tally, you dont need to prepare trial balance etc. just go to display. P & L and balance sheet are there on the main menu of the tally software. you do not need to create the same
for transfer from PY to New year, select F2 from the main menu of tally software and select period of the new year and its all done.
for rectificaiton of entry, you have to recall the original voucher in edit mode and make changes after that save it
pls explain how to final balancesheet ,basic formet
Jinal,
For basic format, you may search Google.
However, I believe Balance sheet is not a matter of format. One can do it only by working under guidance of some experienced person.
hello sir
i am join the accountant of private company
i am fresher now only completed b.com how to prepare a basic ledger and voucher entery who name posted the office expenses and machiery and how to prepare the auditing statement please help me
Hi,
I’m in trouble using tally erp 9. can u please help me to solve it.? Our company is A construction company, i will entry all the expenses, and all the cheque we issued. My problem is How can I set up the Chart of accounts or a ledger? If i will make cheque payment i will name it to the person or subcontractor for Debit entry or i will put entry instead? thanks a lot.
chris
Dear Sir,
I am working as a Finance executive in manufacturing business firm.But I am facing a lot of problems to prepare financial statement.So I decided to buy software based accounts system.So please know me how can Tally help me . As I am fresher so I have some problem to prepare trial balance, income statement , and balance sheet . So can Tally make me easy to learn and prepare financial statement? I will be very gratefull as you reply promptly .
Monvar,
I had just sent you a personal mail on your yahoo ID on the subject matter. Alternatively you may contact me at mkr2005 at gmail.com
Please inform us how to make provisional balancesheet in tally erp 9
Hi Sir,
I am working in the private firm and wants to prepare Balance Sheet, but I am Not able to increase the profit. Is there any way to increase the profit. Somebody told me that by increasing ratio we can increase the profit. and also let me know know how to calculate TDS.
Namita,
You can play with profit by increasing/decreasing value of your stock. Increase value of stock and your profit will increase. Decrease some expenses and profit will increase. But do this to a reasonable level only to avoid income tax office far away. Be sure Income Tax people also reading this blog.kidding….
Now, about TDS entries, please read my post under tds category. be sure it requires latest version of tally.erp 9 release 1.52 or higher.
Hello sir,
I am working to electrical company(transformer). here how to preparing the daily expenses are note in to the tally book… please help me…… how to prepare the daily expenses….plz tell me sir………
Yogalakshmi,
Use F5 payment voucher and start entering voucher.
Hello,
I have completed MBA in finance i want to learn tally but i dont have such type of knoledge about accontancy and i want make my future as a finance manager what can do.
I want to use more then one unit. in some commodity like cotton bale, should maintain both nos and kgs. i think the alternate unit did not work as i expect. if each bale have same weight. you can use alternate unit (eg : 1 bag=100 kgs).
but some commodity like cotton bale, each bale carries different weight
for eg :41 bags = 3807 kg, tally take as one bag is 92kg. now i entry a stock journal voucher 322 kg consumes. tally shows as no of bags is 3, but by physical stock 322 kgs is 4 bags.
so mult units could solve this solution.
is there solve any way to solve this problem? customization is the solution.
if ther is a solution. could you please guide as step by step..
Ram,
At the moment customization is the only solution to this problem. If you need customise from us, then please do let me know, I will be glad to quote for the best.
and if you do not wish for customisation, then you may raise your query officially in our favor. The method I have already informed at the support forum and I will discuss the matter with Tally’s R & D team so that they will incorporate the same in their upcoming release.
I am learning 7.2 version Now in AP 12.5% Tax on Lubicants. this was increased to 14.5%.
In 7.2 version it is not poosible to change 12.5% To 14.5%.
Revant,
It is not possible to do so. You have to upgrade your software to tally.erp 9
dear sir,
frist time Introduce tally in our compony how to entry opening stock value and closing stock value. please help.
how shall i put net loss from previous year balance sheet
Opening stocks does dot shown into my Balance sheet, instead comes as difference in opening nalance, how can i include opening stocks into balance sheet??
Gibson,
perhaps you have missed to read it in the chapter opening-and-closing-stock-in-tally
Also, please check your tally data opening balance and compare it with your last year financial.
If problem persistent, then do let me know I will resolve the same
I want to learn the tally soft ware and I looked for some institutions which can give training on tally but I could find none as tally is not mostly used in Ethiopia what can I do as a fresh learner????
Kinfe,
I can help you in learning tally.
Just fill out the contact us form.
leave serial number as blank if you don’t have it and I will revert back to you
Good information, One more thing, I add in this content is that with the help of tally, we can also valuate our balance sheet if we use different valuation method of inventory, we can compare the effect of FIFO and LIFO on balance sheet both side of balance sheet figures will be changed by tally and 10 other valuation mathods can also be used.
Agreed Vinodji but very few people browse so many features of tally.
90% of them just waste their time in searching some vedio or online tutiion thinking that they can learn tally within a day!
We are using tally ERP9 and we are tally customers since dos versions. Recently we are facing problem in tally. We were using our branch with one tally client and server at HO. While syncing some error came in and after that it started showing Opening balance difference in Balnce sheet. Value is Rs.54000/- FY opening 2007 and with out spilitting data we are using till now. Now since transactions are so high we want to split the company data. But opening balance diffrence is showing i the opening books itself. How do we solve this. Pls Help Us.
Dear Shrinivasa Rao,
Please mention your Tally.erp 9 Serial number and with specific details.
Without knowing your Tally serial number, I can’t help
sir
my name is rajsekr
my total exp 6.7year, i have minimum knowledge of tally
i am very interest to learn prepare the accounts books in tally
plz advise me how to prepare & maintaine the books in tally
regds
rajsekr
i want some popular website to learn tally
please give me free surfing and tutorial website
Hello Veerendra,
Search Google, Bing and Yahoo. Its free surfing
There will be lot of free tutorial site u may find.
i am pallavi i just start my job journey but if any expenses like nasta .how can passes entries in tally
Pallavi,
You need to post your query mentioning your Tally Serial number if you want our help
I HAVE GETTING MESSAGE “Negative Cash Balance”.During Creating Leadger While working on Bank Intrest Calculation with Tally 7.2 Gold I want to know that How can I solve this issue Plzzz Tell me the way 2 solve this Problem Besids It I Wish to buy a new Tally 7.2 Software also Tell me That which way will be suitable for me
Online or Direct Buy from a shop with a CD Pack Coz My Friend tell me that if I bought It Online then I can’t Get Its CD Pack to Redownload it again when I Get format My Note book PC
please Tell me the Easy way to get it
Thank You
Hello Shiraj,
Negative cash balance comes when you have paid more than the cash balance in your hand. go to your Cash ledger than press F6 than get the daily balance it will show you the date on which you have negative cash balance.
just pass some receipt cash entry on that date and it will be solved.
Regarding purchase of new software, No one is Selling Tally 7.2 as this product is being discontinued by the Tally Solutions and so if somebody sells you from second market, you won’t be able to get any support or the full features of the latest software e.g. Tally.erp 9 Gold.
There i no problem in buying online or offline. Actually there is nothing in the CD box. because in CD box you will get an outdated version of the software and so, I never used a CD box. one should always use the latest updated software else the purpose of using an accounting software will go vain. It takes hardly 10 minutes to download a software and even if you get a CD box, you will need to download the latest updated software only from the Tally’s site.
I hope it will clear your doubts.
You can check the price of Tally.erp 9 Single and multi user at http://www.tallynine.com/buy and can also buy it online.
Instead of buying a new software I would recommend you to upgrade your Current Software 7.2 to Tally.erp 9. you will need to pay less
hello sir
I ve started using tally in office recently.
Its an NGO so only expenses and income
but when after making all entries , i see there is excess exp over income in P&L statement, But balances in cash book and tally are the same
What could be the reason? reply
what is the journal entry when insurance premium paid for pur. of new vehicle
sir ,
i prepared 2010-11 company entries made in tally by company split option by last year closing balance . but i made one mistake i didnt saw fixed assets in last year they didnt made entry of purchase fixed asset ,so i didnt get fixed asset balance in this year. but it was in auditors balancesheet book . that company start last year only . however i made alter in this year it comes difference amounts comes last year balance sheet . what can i do sir
We have Tally Version ERP 9 Release 1.61. 1. Is there an option here to transfer closing balnace of one year into another as opening balance if these are maintained as two different companies in two files? Is yes, how does one do it? If no, how else should one carry forward the clsoing balance of one year as opening balance of another year?
Dear sir how to manage day book opening balance & clossing balance
Shameer,
I am little unsure about your requirement. There is no such thing requires to manage daybook opening and closing balance!
Please help me in preparing the schedule forming the part of Balance Sheet
Rachna,
Sch. VI Balance sheet is currently not available in Tally. It is available only for practicing CAs with Auditor’s Edition.
We hope that with launch of Series B, it will be available for all of us. Even we are looking for the same
what will be the opening bank entry for current account during the set up?
how does deposit slip work in tally….the entry for that.?
the reconciliation of bank accounts
the keys
Sir,
I use here tally 7.2 version i want to shift last year closing stock balance in new Next Financial Year But i create a new company in Tally9 So please help me How to Set Opening Balance in Tally 9 Example last year Cl. stock Balance 1000000.00 All FY Year Closing Balance sift by me But Closing Balance Show Difference Please Advice…Yash
My company is starting PF in middle of the accounting year so i need the accounting heads details related to account opening for PF entries in tally. I am using tally 7.2, so please tel me the accounting heads and entries to be passed as its first time i am handling PF.
Thanks & Regards
Smita
how to prepare a balancesheet in excel form from tally…??? let me know the easy method of doing it..??? and wat about the balances or heads wich are appearing in assets instead of liability..eg.. loan n liability under assets n cash or bank in liability…???? please sir sort out my problem….
sir this is viji basically i am a language teacher. recently i learnt tally erp9 . i would like to work as part time tally tutor where can i find such jobs in chennai
Dear sir how to manage day book opening balance & clossing balance .
regards,
amala.
what is “difference in opening balance” in trial balance? and how to remove it from TB or what is the use of it
dear sir,
please help me that in profit & loss how to put the op bal. in tally 9.0 or its dr bal or cr bal im working in company doing work in tally .
If we purchase a car of Rs: 8700/- and we sold it Rs: 8600/-. but my says to me adjusted as a profit. how should be adjusted profit in cash book. he said to me i want to see loss in cash book in profit / loss a/c. I have requested to you show me how to pass this entry.
Hi..
i’m using tally 7.2. There is a problem that in my balance sheet the Current Assets shown in liabilities side so how can i move it Assets Side.. Please help me.
Hello
Akansha same problem with me.
What can i do ?
i am also using Tally 7.2..
When if you have ans. so please tell me?
Dear sir,
I am joining in b.com first year . I have a problem . How to prepair balance sheet . With any question just to understand how to prepair balace sheet .
Bcos I am non commerce student
hi
i want to take a print out of trial balance but in that there is sundry creditors and sundry debtor no cash and bank a/c is there but its not in detail what i want entire details in one page instead of going in cash & bank a/c and sundry creditor and sundry debtors. can you please help me.
thanking you
Dear Sir
Plz give more information about tally accounting
Thanking You
Pradeep kumar
Dear sir,
i am working as an accountant in a company in Dubai.i just prepared last 6 month financial statements using tally erp9.I am confused about the correctness of above statement. How can i assure all the transactions are posted and the closing balance of all the accounts are real.Is there any technique measure the correctness of financial statements on a particular date,,,, please assist me on the same
iam accountant job at one firm,please tell me how to maintain stock in tally
please send data file that file copy in tally data and do practice, it is that your goodness to send data file for practice
Thanking you,
Regards
Praveen
I AM WORKING SOFTWARE COMPANY, I AM USING SOFTWARE PACKAGES IN MY COMPANY, IS NO TALLY THE TRIAL BALANCE , WHAT PROBLEM ? SIR!
hello sir,
i am preparing account for 10-11. i am completed all the entry in tally 7.2. but when even i put up previous year balance for opening then it will be show in balance sheet in diff. in opening balance. so how can correct this problem
Hello Sir,
In tally the daily balancing method is available in Cash Book. But as per our system we are using daily balancing method in the day book also. How to get the daily balancing method in day book. In the Tally Day book the optional vouchers are shown. We are using the proforma invoice as optional voucher. how to hide the optional vouchers from day book. The day book balancing should to be available at the time of printing only.
Hello sir
I am gayatri rajput and working in logistics company.
I am worried about my Tally 7.2.
Question:
sir how to correct balance sheet if current asstes show on liabilities side?
sir
i was making a balance sheet but i have no idea that in current labilities why duties & taxes come in minus
& why awd margin value come in minus as it is a discount comes from company
sir
i was making a balance sheet but i have no idea that in current labilities why duties & taxes come in minus
& why awd margin value come in minus as it is a discount comes from company
Thank u very much. Plz gve me more knowledge about different features of tally erp9.
Please tell me sir, where so the vat in b/s and in which side. please tell me tds tax
rules.
my company is manufacturing co. and all the provisions are applicable to it. i want to know how to pass entries relating to exicise and service tax will u please provide guidance regarding it.
How, I will learn tally?
i want to get more and more knowleadge about tally
Dear Sir
mujhe aapki help chayiye thi hamari ek company me sale invoice inventory se hoti hai aur wahi invoice dusre company me me karni hai as vouche type plz help me
we r having business in Singapore. now m doing all accounting works from India. i have entered all the vouchers in Tally erp 9. how to get balancesheet printout from tally erp 9. kindly suggest.
sir plz help me mujhe starting to up to finalisation steps chayiye plz sir help me kese adjustment hota hai Plz
Sir I have noticed that we have done banking more than sales in tally. How can I over come this since the cash is on credit side but has to be on the debit side since its a current asset
Hello Ruasiyant,
Without having access to your data, we can’t guide you properly
Dear Sir,
I am facing a problem in Tally. In bank ledger after brs shows the balance of Rs.84275 which is tallied with bank statement but in the brs screen the balance shows Rs.284275. I can’t resolve the problem after numerous checking. The debit & credit side in the ledger shows perfect value but in the brs screen it differs. Please help me.
Regards,
Somnath Sharma
Dear sir , how to bring an opening stock value in p&l of tally erp9
How Can entry in purchase or sales entry with dr. cr. wise.
For example xco. purchase goods from yco. rs.15750/- pri. value 15000/-
4% tax 600/-
1% tax 150/-
——–
15750/- tell to us with
how can create tax A/c 4% & 1% & which group under which scetion dr. & credit . Principal value Rs.15000/- which section debit or credit
Purchase A/C Dr 15000
4% Tax A/C Dr 600
1% Tax A/c Dr 150
To Xco. A/c
dear sir,
I am not account student,that”s I do not know about account so how can I improve my account khnoledge
You will not learn it by some magic
If you seriously want to learn, Start reading articles
Do a lot of practice.
visit http://www.help.tallysolutions.com
read articles at http://www.tallynine.com
Both above having many free articles
You won’t need a paid software to do practice. Just download the free software and start doing practice