How to prepare a Balance Sheet in Tally ?

So far, we have learn t 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 transactions which are recorded in day book,cash book,bank register,buy/sales register
then each transaction has been posted to 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 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

  • RUPESH SHAH

    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.

    • http://www.tallynine.com Mahendra

      Dear Rupesh,
      I have sent you personal message and an invitation to Gtalk.
      We will speak over the issue there

      • http://www.tallynine.com SAMEER

        Dear Sir
        What is yur id…Actually i wanna some disus.. abt
        tally 9.0..pls help me abt..

        thnx
        SAMEER

        • http://www.tallynine.com Mahendra

          mkr2005 at gmail

  • Rupesh Shah

    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.

    • http://www.tallynine.com Mahendra

      Dear Rupesh,

      Have you posted Consumption and Inward Entries through Inventory vouchers ? If possible please send me screen shot of 2-3 entries

  • Priti

    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

    • http://www.tallynine.com Mahendra

      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

    • http://gmail.com anil

      login for more discussion in tally and accountancy.
      thanks

  • Priti

    Thanks for your reply.

    I need some more help, if you have any gmail id. then we can chat online.

    Thanks & Regards,

    Priti

    • http://www.tallynine.com Mahendra

      mkr2005 gtalk/gmail id

  • ateesh

    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

    • http://www.tallynine.com Mahendra

      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

  • Saleem

    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

    • http://www.tallynine.com Mahendra

      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

    • jinal

      pls explain how to final balancesheet ,basic formet

      • http://www.tallynine.com Mahendra

        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.

        • meenakshi

          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

  • christine

    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

  • Monwar

    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 .

    • http://www.tallynine.com Mahendra

      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

      • Dhruti

        Please inform us how to make provisional balancesheet in tally erp 9

  • Namita

    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.

    • http://www.tallynine.com Mahendra

      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.

  • yogalakshmi

    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………

    • http://www.tallynine.com Mahendra

      Yogalakshmi,
      Use F5 payment voucher and start entering voucher.

  • Pooja

    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.

  • Ram

    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..

    • http://www.tallynine.com Mahendra

      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.

  • Revant

    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%.

    • http://www.tallynine.com Mahendra

      Revant,
      It is not possible to do so. You have to upgrade your software to tally.erp 9

  • http://yahoo.com latheef

    dear sir,

    frist time Introduce tally in our compony how to entry opening stock value and closing stock value. please help.

  • raj

    how shall i put net loss from previous year balance sheet

  • http://www.kanjilalji.com Gibson From – Mbeya Tanzania

    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??

  • kinfe from Ethiopia

    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????

    • http://www.tallynine.com Mahendra

      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

  • http://www.svtuition.org/search/label/tally svtuition

    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.

    • http://www.tallynine.com Mahendra

      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!

  • Srinivasa Rao.Y

    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.

    • http://www.tallynine.com Mahendra

      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

  • rajsekhar

    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

  • veerendra

    i want some popular website to learn tally
    please give me free surfing and tutorial website

    • http://www.tallynine.com Mahendra

      Hello Veerendra,
      Search Google, Bing and Yahoo. Its free surfing
      There will be lot of free tutorial site u may find.

  • PALLAVI

    i am pallavi i just start my job journey but if any expenses like nasta .how can passes entries in tally

    • http://www.tallynine.com Mahendra

      Pallavi,
      You need to post your query mentioning your Tally Serial number if you want our help

  • Shiraj Khan

    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

    • http://www.tallynine.com Mahendra

      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

  • ali

    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

  • swaathi

    what is the journal entry when insurance premium paid for pur. of new vehicle

  • bharat

    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

  • R Geetha

    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?

  • shameer

    Dear sir how to manage day book opening balance & clossing balance

    • http://www.tallynine.com Mahendra

      Shameer,
      I am little unsure about your requirement. There is no such thing requires to manage daybook opening and closing balance!

  • Rachana Manek

    Please help me in preparing the schedule forming the part of Balance Sheet

    • http://www.tallynine.com Mahendra

      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

  • fritz

    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

  • YASH

    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

  • Smita

    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

  • jayshree m

    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….

  • yoga vijaya lakshmi

    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

  • amala

    Dear sir how to manage day book opening balance & clossing balance .

    regards,
    amala.

  • raja

    what is “difference in opening balance” in trial balance? and how to remove it from TB or what is the use of it

  • ANITA

    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 .

  • Syed Omer Farooq

    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.

  • Akansha Chaturvedi

    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.

    • Gayatri nagwanshi

      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?

  • Revanth

    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

  • punit

    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

  • PRADEEPKUMAR

    Dear Sir
    Plz give more information about tally accounting

    Thanking You
    Pradeep kumar

  • akbar

    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

  • mallikarjuan

    iam accountant job at one firm,please tell me how to maintain stock in tally

  • Praveen

    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

  • UMA

    I AM WORKING SOFTWARE COMPANY, I AM USING SOFTWARE PACKAGES IN MY COMPANY, IS NO TALLY THE TRIAL BALANCE , WHAT PROBLEM ? SIR!

  • rahul

    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

  • SK.MAHENDRAN

    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.

  • Gayatri nagwanshi

    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?

  • SHIVAM KALIA

    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

  • http://www.citipropmart.in Arun Kumar

    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

  • Taba Takam

    Thank u very much. Plz gve me more knowledge about different features of tally erp9.

  • AVANISH TIWARI

    Please tell me sir, where so the vat in b/s and in which side. please tell me tds tax
    rules.

  • MAMTA

    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.

  • KAZOL

    How, I will learn tally?

  • NARINDER KUMAR

    i want to get more and more knowleadge about tally

  • kishor

    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

  • prathima

    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.

  • roopali

    sir plz help me mujhe starting to up to finalisation steps chayiye plz sir help me kese adjustment hota hai Plz

  • janani

    Hello Sir,
    how to enter E.B.Charges which was shared by 3 companies in a same complex. on behalf of other 2, we will pay on whole and after sometime they return it back. please help me how to pass the entries in tally erp 9

    • http://www.tallynine.com Mahendra

      Janani,
      You need to pass a jv for the same and debiting other occupants account for proportionate amount

  • janani

    please help for tally

    • http://www.tallynine.com Mahendra

      If you can specify exactly what help you needs, I would be able to help you.

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