The Tally interview Questions can be said to be a turning point in someone’s career in the field of accounting and finance. Many businesses today need the right software, like Tally Prime. A Tally Prime bookkeeper can help guide their financial activities.
Employers have a strong need for skilled professionals. This has led to a focus on the most common Tally prime interview questions and answers for 2025. You gain a competitive advantage in job interviews by understanding things this way.
In this article, we will talk about the key interview questions and their answers. We will cover them from easy to more advanced levels in Tally Prime.
Basic Tally Interview Questions and Answers
1. What is Tally Prime?
- Tally Prime is an easy-to-use financial management system designed for small and medium businesses
- It helps with accounting, inventory, payroll, and taxes
- The perfect tool for businesses to maintain their financials and produce reports
- It is a solution that reduces the stress of your business tasks and simplifies them
2. What is the main difference between Tally Prime and Tally ERP 9?
| Feature | Tally Prime | Tally ERP 9 |
| User Interface | Modern and easy to use | Traditional and a bit complex |
| Speed | Faster and smoother | Good, but not as fast |
| Navigation | Simple and easy to navigate | Can be more complicated |
| Features | Better reporting and management | Basic features |
| Focus | User-friendly and efficient | All-in-one business tool |
| Updates | Regular improvements | Less frequent updates |
3. What is ‘Gateway of Tally’?
Answer: The ‘Gateway of Tally’ is the main screen where users can access all the major functions such as creating companies, managing ledgers, and generating reports.
4. How do you create a company in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to the ‘Gateway of Tally’.
Step 2: Select ‘Create Company’.
Step 3: Enter the required company details, such as company name, address, and financial year.
Step 4: Click ‘Save’ to complete the company creation process.
5. What is a ledger in Tally Prime?
Answer: A ledger in Tally Prime is a record that keeps track of all transactions related to a specific account. For example, if you make a sale or purchase, the details are recorded in a Sales Ledger or Purchase Ledger.
- Purpose: It helps you organize financial information for each account (like cash, bank, or expenses).
- Types: Examples include ledgers for sales, purchases, bank accounts, etc.
- Why it’s important: Ledgers help you see a summary of all transactions for an account, making it easier to check your financial status.
Think of a ledger as a detailed notebook where you note down every transaction related to a particular account.
6. How do you create a ledger in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Accounts Info’ > ‘Ledgers’ > ‘Create’.
Step 2: Enter the required ledger details, including the ledger name, group, and the category it belongs to.
Step 3: Click ‘Save’ to finalize the ledger entry.
7. What is a voucher in Tally Prime?
Answer: Vouchers in Tally Prime reflect every kind of financial transfer such as sales, purchases, or payments. It is through vouchers that accurate transactions are input for all business activities.
8. How do you create a voucher in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to the ‘Gateway of Tally’.
Step 2: Press Alt + V to create a voucher.
Step 3: Select the appropriate voucher type (Sales, Purchase, Payment, etc.).
Step 4: Enter the required details and save the voucher.
9. What is a Day Book in Tally Prime?
Answer: The Day Book is an account that records all the transactions that occur during a day according to the date, thus providing a clear picture of the day’s business activities.
10. How do you view the Day Book in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Display’ > ‘Day Book’.
Step 2: View the transactions for the desired date range.
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Intermediate Tally Interview Questions and Answers
11. What is the Trial Balance in Tally Prime?
Answer: The trial balance T.b. is an accounting report that includes the balances of all accounts to make sure that total credits and total debts are equal.
12. How can you generate the Trial Balance report in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Display’ > ‘Trial Balance’.
Step 2: Select the desired date range and view the report.
13. What is the Profit and Loss Account in Tally Prime?
Answer: It takes all the revenues and expenses of the business which are then further calculated by which the net profit or loss of the business can be assessed.
14. How can you generate the Profit and Loss Account in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Display’ > ‘Profit & Loss A/c’.
Step 2: View the summarized report of income and expenses.
15. What is a Balance Sheet in Tally Prime?
Answer: The Balance Sheet is a snapshot of the company’s financial condition, and this list includes assets, liabilities, and stockholders’ equity.
16. How do you generate the Balance Sheet in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Display’ > ‘Balance Sheet’.
Step 2: View the company’s financial status.
17. What is GST, and how is it handled in Tally Prime?
Answer: GST (Goods and Services Tax) is an indirect tax, which means that it is a consumption-based tax. Without SMS Tally Prime would not be able to do invoices, returns, and reports, which are compliant with GST.
18. How do you enable GST in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘F11: Features’ > ‘Statutory & Taxation’.
Step 2: Set ‘Enable GST’ to Yes.
Step 3: Enter your GST details.
19. What is a Stock Group in Tally Prime?
Answer: A Stock Group is a tool in the Tally program that is used to catalog similar items to allow businesses to easily control and monitor them.
20. How do you create a Stock Group in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Inventory Info’ > ‘Stock Groups’ > ‘Create’.
Step 2: Enter the required stock group details (name, under category).
Step 3: Click ‘Save’.
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Advanced Tally Interview Questions and Answers
21. What is a Stock Item in Tally Prime?
Answer: The stock item is a particular product or good used by a manufacturer and if it is sold to a customer an invoice is created, the stock is updated and the delivery in IOU is confirmed if applicable. This product could be for example raw materials or it could be finished goods.
22. How do you create a Stock Item in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Inventory Info’ > ‘Stock Items’ > ‘Create’.
Step 2: Enter the item details such as name, unit, and group.
Step 3: Click ‘Save’.
23. What is the Cost Center in Tally Prime?
Answer: The cost center is a unit of the company where you can track individually all the costs incurred in a department or location. This unit is unique and is used to track and monitor expenses separately.
24. How do you create a Cost Center in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Accounts Info’ > ‘Cost Centers’ > ‘Create’.
Step 2: Enter the Cost Center details (name, type, etc.).
Step 3: Click ‘Save’.
25. What is Payroll in Tally Prime?
Answer: The Payroll module in Tally Prime keeps all the data available about the employees and assists in calculating their working hours, payments, etc. An employer can set up these plans and allow employees to self-onboard.
26. How do you enable Payroll in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘F11: Features’ > ‘Payroll’.
Step 2: Enable Payroll and configure settings, such as salary structures.
27. How do you create an Inventory Voucher in Tally Prime?
Step-by-Step Instructions:
Step 1: Press Alt + V to create a voucher.
Step 2: Select the ‘Inventory Voucher’ type.
Step 3: Choose the relevant stock items, quantities, and values.
Step 4: Click ‘Save’ to finalize the voucher.
28. What is the Contra Voucher in Tally Prime?
Answer: Contra Voucher is utilized to record both cash and bank-related transactions such as transfer of funds between bank accounts and cash withdrawals.
29. What is the Reversing Journal in Tally Prime?
Answer: The Reversing Journal is a feature that automatically creates a reversal entry for a specific transaction to adjust it for accruals and other similar entries.
30. How do you manage multiple companies in Tally Prime?
Step-by-Step Instructions:
Step 1: From the ‘Gateway of Tally’, select ‘Select Company’.
Step 2: Choose the company you wish to manage or create a new company.
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31. How do you record an invoice in Tally Prime?
Step-by-Step Instructions:
Step 1: Select ‘Sales Voucher’ or ‘Purchase Voucher’.
Step 2: Enter the customer/supplier name, stock items, and amounts.
Step 3: Click ‘Save’ to finalize the invoice.
32. What is Tally.NET and its usage in Tally Prime?
Answer: Tally .NET provides services to its customers through the cloud, which allows companies to access the software remotely, back it up, and synchronize the data users have. It also helps with secure data exchange.
33. What is a Bank Reconciliation Statement (BRS) in Tally Prime?
Answer: Bank Reconciliation Statement (BRS) is a tool that helps to match your company’s bank book with the bank statement and identify discrepancies.
34. How do you create an Audit Trail in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Display’ > ‘Audit & Compliance’.
Step 2: Enable Audit Trail for detailed tracking of data changes.
35. How do you back up company data in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Company Info’ > ‘Backup’.
Step 2: Choose the destination for the backup file and proceed.
36. How do you restore data in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Company Info’ > ‘Restore’.
Step 2: Select the backup file to restore.
37. What is the Multi-Currency feature in Tally Prime?
Answer: Tally Prime is capable of processing multiple-currency transactions which are very useful for businesses to deal with foreign transactions and at the same time to make currency conversions.
38. How do you use the Split Company Data feature in Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Company Info’ > ‘Split Company Data’.
Step 2: Select the company and the period for splitting the data.
39. What is the Tally Prime API?
Answer: Tally Prime enables businesses to connect and integrate other software or applications through APIs.
40. How can you import data into Tally Prime?
Step-by-Step Instructions:
Step 1: Navigate to ‘Gateway of Tally’ > ‘Import Data’.
Step 2: Select the file type (e.g., XML, Excel) and upload the data.
41. How do you handle Interest Calculations in Tally Prime?
Answer: Plus, you get the advantage of setting up interest calculation rules for overdue payments and receipts in Tally Prime.
42. What is the importance of VAT/GST Reports in Tally Prime?
Answer: VAT/GST reports assist in the business by presenting the tax charges and received invoices and tracking the tax payments to comply with the tax laws.
43. What is Remote Access in Tally Prime?
Answer: Remote Access is a feature that enables users to be able to come to Tally Prime from any place to work, improving work flexibility.
44. How do you enable Remote Access in Tally Prime?
Step-by-Step Instructions:
Step 1: Enable Tally.NET.
Step 2: Configure remote access for secure login.
45. How do you print vouchers and reports in Tally Prime?
Step-by-Step Instructions:
Step 1: Open the voucher or report.
Step 2: Press ‘Ctrl + P’ to print it.
46. What is the use of the ‘Print’ option in Tally Prime?
Answer: The ‘Print’ option helps in the production of numerous hard copies of vouchers, invoices, and financial reports, which are necessary for keeping correct records.
To use the ‘Print’ option:
- Open the voucher or report you want to print.
- Press ‘Ctrl + P’ or select the ‘Print’ option from the menu.
- Choose the printer settings and select the number of copies.
- Confirm and print the document.
47. What is the Audit and Compliance feature in Tally Prime?
Answer: The Audit and Compliance feature in Tally Prime helps ensure the accuracy, transparency, and legal compliance of financial records. It includes:
- Audit Trail: Tracks and records changes to data, showing who made changes and when.
- Vouching: Verifies transactions for authenticity.
- Compliance Reporting: Generates statutory reports like GST and TDS returns.
- Exception Reporting: Identifies discrepancies in transactions.
- User Access Management: Controls who can access or modify sensitive data.
48. How do you calculate depreciation in Tally Prime?
Answer: Tally Prime provides a feature that helps in the computation of depreciation, using the straight-line or written-down value methods.
Step-by-Step Instructions:
Step 1: Go to ‘Gateway of Tally’ > ‘Accounting Vouchers’.
Step 2: Select the ‘Journal Voucher’ type.
Step 3: Enter the depreciation amount for the respective asset.
Step 4: Debit the Depreciation Account and credit the respective Asset Account.
Step 5: Save the entry.
Alternatively, if you’ve set up Automatic Depreciation Calculation:
Step 1: Go to ‘Gateway of Tally’ > ‘F11: Features’ > ‘Accounting Features’.
Step 2: Enable ‘Automatic Depreciation Calculation’ under Depreciation Method.
Step 3: Select the depreciation method (e.g., Straight Line Method (SLM) or Written Down Value (WDV)).
Step 4: Tally Prime will automatically calculate and apply the depreciation during the specified period.
49. What is the ‘Recalculate Stock’ feature in Tally Prime?
Answer: The ‘Recalculate Stock’ feature enables businesses to adjust the cost of stock and update the quantities according to changes that might have occurred.
50. How do you handle user access and security in Tally Prime?
Answer: Tally Prime also permits the creation of multi-layered access rights to ensure that financial transactions are secure and under the control of the administrator.
Step-by-Step Instructions:
Step 1: Go to ‘Gateway of Tally’ > ‘F3: Company Management’ > ‘Security Control’.
Step 2: Enable ‘Security Control’ by selecting ‘Yes’.
Step 3: Select ‘Create User’ to create a new user or modify an existing user.
Step 4: Assign the user a username and password.
Step 5: Set the user’s rights by selecting specific options (e.g., access to specific features, reports, or data entry).
Step 6: To enhance security, you can configure user roles and specify what actions they can perform, such as view, alter, create, or delete data.
Additionally, Tally Prime allows you to:
- Set remote access security for users working from different locations.
- Enable audit trails to track user actions.
- Set backup and restore security by defining access rights for these operations.
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Common Mistakes in Tally Interviews
| Common Mistakes | Solutions |
|---|---|
| Lack of Hands-on Experience | Practice using Tally to get familiar with its features and functions. |
| Inadequate Knowledge of Accounting Principles | Review core accounting concepts like double-entry, ledgers, trial balances, and GST. |
| Not Being Up-to-Date with Latest Tally Features | Stay updated on the latest Tally version and its new features. |
| Misunderstanding of GST Handling in Tally | Learn how to configure GST, apply tax rates, and generate GST returns in Tally. |
| Overlooking Tally Reports | Practice generating and analyzing key financial reports like P&L and balance sheet. |
| Not Understanding Data Backup/Restore Process | Understand how to back up and restore Tally data properly. |
| Failing to Explain Tally Functions Clearly | Practice explaining Tally’s features and processes in simple terms. |
| Ignoring Soft Skills | Practice generating and analyzing key financial reports like P&L and balance sheets. |
How to Prepare for Tally Interviews?
- Learn Tally Basics: Understand Tally ERP’s features, like accounts, inventory, GST, and payroll.
- Know Accounting Principles: Be familiar with double-entry bookkeeping, trial balance, profit and loss, balance sheet, and GST.
- Understand Tally Functions: Learn how to enter vouchers, manage inventory, reconcile banks, and generate reports.
- Gain Practical Experience: Practice using Tally by entering transactions and generating reports.
- Prepare for Common Questions: Be ready to explain how Tally works and answer questions on GST, vouchers, and bank reconciliation.
- Stay Updated: Know the latest version of Tally and its updates.
- Improve Soft Skills: Showcase problem-solving and communication abilities.
- Practice Mock Interviews: Try mock interviews to build confidence.
Tips to Crack Your Tally Interview
- Master Tally Features: Practice key functions like voucher entries, GST handling, and report generation.
- Understand Accounting Basics: Be clear on double-entry bookkeeping, ledgers, trial balances, and financial statements.
- Stay Updated: Be familiar with the latest version and features of Tally.
- Prepare for GST Questions: Know how Tally manages GST transactions and returns.
- Know Key Reports: Be able to generate and explain P&L, Balance Sheet, and tax reports.
- Practice Real-Life Scenarios: Simulate accounting tasks in Tally for hands-on experience.
- Work on Soft Skills: Communicate clearly and confidently, showing problem-solving ability.
- Understand Backup/Restore: Know how to secure and restore Tally data.
- Show Passion for Learning: Demonstrate eagerness to stay updated and learn new features.
- Prepare for Behavioral Questions: Share examples of teamwork, problem-solving, and handling challenges.
People also ask
1. What is the minimum system Requirement for Tally Prime?
| Component | Requirement |
| Operating System | Windows 11, Windows 10, Windows 8.1, Windows 7 (SP1) |
| Processor | 1 GHz or higher processor |
| RAM | 2 GB minimum (4 GB recommended) |
| Hard Disk | 1 GB free space |
| Display | 800 x 600 pixels (Screen resolution) |
| Network | Internet connection required for updates and online features |
| Additional | Internet connection is required for updates and online features |
2. Can multiple companies use Tally Prime?
Yes, Tally Prime has the feature of multi-company management in a single software instance.
3. Does Tally Prime support payroll Processing?
Yes, Tally Prime contains payroll functionalities depending on the calculations of salary, PF, ESI, and finally, you get payslips.
4. Can we generate e-invoices in Tally Prime?
Yes, Tally Prime organizes e-invoicing and e-way bill creation with the GST Act.
5. How do we migrate data from Tally ERP 9 to Tally Prime?
With the assistance of the Data Migration Tool service which is available on Prime, you can transfer the whole ERP 9 data to Prime in an automatic manner.
6. Is Tally Prime the right choice for Startup companies?
Indeed, the software is simple enough for small and mid-sized businesses. Also, Tally Prime is actively being used by small and medium enterprises (SMEs) due to the price and the simplicity of operations.
Conclusion
If you want to crack a Tally Prime interview in 2025, it’s essential to have a strong grasp of accounting concepts, understand key Tally features, and apply them effectively in real-world scenarios.
Whether you’re a beginner or an experienced professional, preparing with Tally interview questions and answercan give you a competitive edge. By practicing commonly asked questions and answers, you can confidently showcase your expertise and stand out from other candidates.
To stay updated with the latest Tally Prime functionalities, make sure to regularly explore Tally interview questions and keep learning. Don’t miss out on important updates—stay ahead and enhance your career opportunities!