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1) Explain what is Tally and where it can be used?
Tally is a software for accounts and inventory management, which is used for performing many functions like
- Performing all basic accounting functions
- Estimating job costing
- Storing details and managing inventory items
- Managing payroll
- Filing tax return, managing profit, and loss statement, preparing a balance sheet, VAT forms, trial balance, cash-flow report, etc.
- Maintaining budget scenarios
- Calculating interest on the outstanding amount
- Managing data over different locations and synchronize it
2) Mention what is the difference between Tally ERP 9 and Tally 7.2?
|Tally 7.2||Tally ERP 9|
|It is an integrated solution that provides a function related to accounting, reporting and inventoryThis version includes VAT (Value Added Tax) functionality, Licensing and Tax deduction at sourceIt is widely used because of simplifying VAT, Service Tax and TDS formalitiesIt provides two licensing, Single User Licensing and Multi User Licensing||It is an upgraded version of Tally 7.2, and provides many features like TDS, Payroll management, Excise for dealers, etc.This version includes handling of POS invoicing, Statutory and Taxation, Payroll, Multi-lingual support, etc.It is more popular because of providing advanced inventory management and simplifying accountingIt is available in two edition Tally Silver (Single User Edition) and Tally Gold (Multi-User Edition)|
3) Mention what features are available in Tally ERP 9 for Accounting?
For Accounting Tally ERP 9 offers
- Outstanding Management
- Cost/Profit Centers Management
- Budget/Scenario Management
- Other features like Cheque Printing, etc.
4) Mention what are the functional enhancement or features included into Tally ERP 9?
- E-mailing option: Users can send accounting reports to multiple recipients along with an additional facility like Net-banking and Printing in various format is provided.
- Accounting Voucher: A new type of numbering feature is added to the voucher, it ensures that the voucher are numbered sequentially
- Print Bank Transaction Details: It provides an option to take the print of bank details on formal receipt
- Credit Limits: The Credit Limit control set for a party ledger will not be applied on sales order. A warning or alert message will pop up on the credit limit, and user can still save the voucher
- CST: Even in a simple format the CST form details entered in the invoice will get printed
- Excise for Manufacturers: All details related to buyers and suppliers can be displayed in the voucher also daily stock register can be maintained according to date wise, multi items types and Tariff wise
- Inventory Vouchers: For inventory section, you can now mention the Godown address and also print the name
- Payroll: New TALLY ERP 9, enables processing of salary according to the National Pension Scheme
- Service Tax: Under journal vouchers, the taxable amount, taxable percentage and notification number will be showed in the service tax details. Auto adjustment of service tax payable can be done against service tax input credit and cenvat
- VAT Option: Recording multiple items with different VAT rates is possible by configuring the setting of “Default Accounting Allocations for Selected Item In Invoice.”
- Tax Audit: Form like 3CB, 3CD and 3CA have been updated as per the requirements of CBDT
- XBRL: The document is constrained to only those companies that have the nature of the report set to consolidated
5) Mention what are the two pre-defined ledger available in Tally ERP 9?
In Tally ERP 9, there are two types of pre-defined ledgers
- Cash: Under the group Cash-in-hand this ledger is created, you can enter the opening balance as on the books beginning from.
- Profit and Loss Account: This ledger is created under the group Primary. In this ledger, previous year’s profit or loss is entered as the opening balance of this ledger.
6) Mention what are the types of ledger you can make in Tally ERP 9?
The types of ledger you can make in Tally ERP 9 are
- Creating a sales/purchase ledger
- Creating an Income/Expense ledger
- Creating a party ledger
- Creating bank account
- Creating a tax ledger
- Creating a current liabilities
7) Mention what is the shortcuts for Voucher Creation and Alteration Screen in Tally ERP 9?
For Tally ERP 9, to create any master (ledger, stock item) on the voucher or alteration screen, you have to enter Alt+C.
To alter or configure any master item on a voucher, you have to select specific ledger or stock item on the sales voucher screen and press Ctrl+Enter.
8) Mention what is the shortcut to repeat the narration on a voucher?
To repeat the narration on a voucher, press Ctrl+R.
9) Explain what is group in Tally ERP 9?
Group is a collection of ledgers of the same nature. In the business, expenses like electric bills, telephone bill, conveyance, etc. are commonly included in groups. Ledger based on these expenses are created to be used while accounting vouchers are entered.
10) Mention what are the types of Tally ERP 9 vouchers? Also give the shortcut for creating this vouchers?
Types of Tally ERP 9 vouchers include
- Contra Voucher->( F4 ) : It indicates the transfer of funds from bank account to the cash account or cash account to bank account, or one bank to another bank account
- Payment Voucher->( F5) : It describes payment histories like payment of salary or office rental
- Receipt Voucher->(F6) : This voucher describes any transaction that involves the receipt like payment made to the bank
- Journal Voucher->(F7) : It includes the expenses to maintain the business or company running like expenses made after marketing
- Sales/Invoice Voucher->(F8) :This voucher describes the sales made, it displays the sale invoice
- Credit Note Voucher->(Cntrl+F8): Entry in this voucher is made in when customer returns some items due to incorrectly dispensed
- Purchase Voucher->(F9) : Entry in this voucher is made when any item is purchase for running the business
- Debit Note Voucher->(Cntrl+F9) : Entry in this voucher is made when goods are sent back to the suppliers due to damage or goods expired
- Reversing Journals->F10 : It is special journal entry that is automatically reversed after the date of the journal
- Memo Voucher->Cntrl+F10: Entry in this voucher is made to display the unknown expense at that moment of time and can be converted to actual sale voucher, or it can also be deleted.
11) Mention what is the short cut to retrieve the last line which is removed in Tally ERP 9?
To recover the last line which is removed, short cut used is Ctrl+U.
12) Mention when you create a company in Tally ERP 9, what information does directory stores?
Directory in Tally ERP 9 specifies the path where the company data will be stored.
13) Mention what is the short cut to recall the last narration saved for the first ledger in the voucher?
The short cut to recall the last narration stored for the first ledger in the voucher is Alt+R.
14) Explain how to set up an employee in Tally ERP 9 for their payroll?
To process employees’ salaries, Tally ERP 9 give facility to create the required groups and classify into different categories like—Employee category, Employee groups and Employees.
- Employee group creation:
- Under employee group creation screen-> Select Primary Cost Category as the Category
- Name the employee’s group as “Sales”
- Select the group as “Primary”and then click on accept to finish with employee group creation
- Employee Master:
- Under employee master you can include all the details about the employees like Statutory details, Pass-port & Visa Details, Contract details etc.
15) Explain what trial balance is and how you check trial balance in Tally ERP9?
Trial Balance is basically a summary of all the ledger balances and checks whether the figures are correct and balanced. It is a way to confirm that the journal entries are correctly posted to the general ledger. In trial balance, the total of all debts balances should be equal the total of all the credit balances.
16) Explain what is the default configuration Tally ERP 9 provides for Balance Sheet?
Balance Sheet in Tally ERP 9 will display two columns with Liabilities and Assets. The balance sheet displays the closing balances of all the primary groups or capital accounts and the net profit for the period.
17) Mention how you can view the Books of Accounts in Tally ERP 9?
To view the Books of Accounts
- You have to press D at the gateway of Tally ERP 9 to bring up the Display menu
- At the display menu, press A to bring up the Accounts Books menu
18) Mention what are the options available in Account Books Menu in Tally ERP 9?
Account Books Menu include
- Bank Book (s)
- Cash Book (s)
- Group Summary
- Sales Register
- Purchase Register
- Journal Register
19) What does the statement of Inventory be used for?
Statement of inventory is used to view the reports on Inventory based on Godowns. Tracking details of items according to the inventory. Also, to query on stock and check out the budgets forecasts and plans, statistics, etc.
20) Explain in Tally ERP 9, how you can view profit and loss statement?
To view the profit and loss statement, click F1: Detailed and it will display the information based on the default primary groups. With every transaction/voucher that is entered is updated instantly.
21) Explain how you can generate schedule VI profit & loss account using auditors edition of Tally ERP 9?
Using auditor’s edition of Tally ERP 9, the schedule-VI balance sheet can be generated. For that
- Go to the gateway of Tally ->Audit & Compliance->Financial Statements->Profit & Loss account
- Press Ctrl+3 to load the previous year’s company to generate the Schedule VI profit & loss account with two year’s data
22)Mention what are the requirements to connect Tally ERP 9 remotely?
Remote connectivity for Tally ERP 9 is very useful feature, to connect remotely you have
|At the Customer end||At the remote location|
|Valid internet connectionA licensed version of Tally ERP 9 with a Tally.NET subscriptionCreate and authorize remote users for a company that has to be operated remotelyFor remote access load & connect the company to Tally.NET for remote access||Valid internet connectionA licensed version of Tally ERP 9A valid password and User ID to access the software|
23) Mention what is the short cut to select the credit note voucher in Tally ERP 9?
Press on F8 (cntrl+F8), it enables you to select the credit note voucher in Tally ERP 9.
24) What is the shortcut to duplicate a voucher and to add a voucher in Tally ERP 9?
- To duplicate a voucher: use short cut keys Alt+2
- To add a voucher: use short cut keys Alt+A.
25) What is the short cut to cancel a day book or list of vouchers in Tally ERP 9?
In Tally ERP 9, short cut to cancel a day book or list of vouchers is ALT+X.
26) What is the short cut to filter the information based on the monetary value all most from all report screens in Tally ERP 9?
To filter the information based on the monetary value in Tally ERP 9, you can use the short cut Alt+F12.
27) Explain what features you can use to convert data in encrypted form in Tally ERP9?
To convert data in encrypted form in Tally ERP 9, you can use function Tally Vault. To use Tally Vault you to go to the gateway of Tally and press F3 and there you can select the company for which you want to encrypt the data. Only persons having valid password can view those encrypted data.
28) Mention what is the shortcut to select the purchase order voucher type?
To select the purchase order voucher type, at accounting and inventory voucher creation and alteration screens, you can short cut as ALT+F4.
29) How can you copy text from Tally?
You can use the shortcut Ctrl+Alt+C to copy text and shortcut Ctrl+Alt+V to paste text.
30) How can you check company statutory details?
You can use the shortcut Ctrl+Alt+B to check statutory details from any screen.
Here are accounting interview questions for fresher as well as experienced candidates to get their dream job.
1) Why choose accounting as a profession?
Accounting is chosen as a profession because:
- Become a part of an extensive network of professionals.
- Accept or experience a challenging role.
- Explore new opportunities.
- Offers all kinds of career options.
2) What are the skills needed to work as an accountant?
Skills needed to work as an accountant are:
- Excellent at math
- Strong analytical skills
- Structured work style
- Aptitude for technology.
3) Mention some accounting software
The best accounting software are:
- NetSuite ERP
- Zoho Books
- Sage Business Cloud Accounting
- Sage 50cloud
4) Mention the difference between SAP Memory and ABAP Memory
- SAP Memory is a global user-related memory that extends beyond the limit of transaction.
- ABAP Memory is a memory area within each main session and can be accessed by programs using the import-export statement.
5) What is Microsoft Accounting Professional?
Microsoft Accounting Professional is an accounting application that offers reliable and fast processing of accounting transactions. It also helps with financial analysis.
6) What is the abbreviation for the accounting terms debit and credit?
The debit abbreviation is “dr” and credit abbreviation is “cr”.
7) How many types of business transactions are there in accounting?
There are two types of transactions in accounting, i.e., revenue and capital.
8) What is the balance sheet?
It is a statement that states all the liabilities and assets of the company at a certain point.
9) What is TDS?
TDS stands for Tax Deduction at Source. It is introduced to collect text from the company from where the employee income is generated.
10) Where to show TDS in the balance sheet?
TDS is shown on the assets section, right after the head current asset.
11) What is GST?
GST stands for Goods and Service Tax. It’s an indirect tax other than the income tax. It charges on the value of the service or product sold to a customer. The customer/clients pay the GST, and the seller deposits the GST with the government. Some countries have sales, service tax with works more or less the same as GST.
12) What is the key difference between inactive and dormant accounts?
Yes, both are different terms in accounting. Inactive accounts mean that accounts have been closed and will not be used in the future as well. Dormant accounts are those that are not functional today but may be used in the future.
13) What is tally accounting?
It is the software used for accounting in small business and shops for managing routine accounting transactions.
14) How to define departmental accounting?
Departmental accounting is a type of accounting in which a separate account is created for departments. It is managed separately as well, as shown independently in the balance sheet.
15) Define fictitious assets
These are the assets that cannot be shown or touch. Fictitious assets can only be felt, such as goodwill, rights, etc.
16) What is the meaning of a perpetual or periodic inventory system?
In the perpetual inventory system, the accounts are adjusted on a continual basis. In this inventory system, the accounts are changed periodically.
17) What is premises in accounting?
Premises refers to fixed assets that are shown in the balance sheet.
18) What is the abbreviation of VAT?
The abbreviation of VAT is Value Added Tax.
19) How many accounting standards are published by ICAI?
There is a total of 33 accounting standards published by ICAI. The purpose of these standards is to implement the same policies and practices in any country.
20) What is ICAI?
ICAI the abbreviation of the Institute of Chartered Accountants in India.
21) What is the basic accounting equation?
Accounting is all about assets, liabilities, and capital. Therefore, the accounting equation is:
Assets = Liabilities + Owners Equity.
22) Define executive accounting
Executive accounting is a type of accounting that is specifically designed for a business that offers services to users.
23) Define public accounting
Public accounting offers audits and CPAs to review company financial records to ensure accountability. It is for the general public.
24) What is a CPA?
CPA stands for Certified Public Accountant. To become a CPA, one should have to do many other qualifications as well. It is a qualification with a 150-hour requirement. It means that one should complete 150 credit hours at an accredited university.
25) What is a bank reconciliation statement?
A reconciliation statement is prepared when the passbook balance differs from the cash book balance.