Unit 4: Final accounts & reports in Tally
Workshop on Computerised Accounting notes · PTU syllabus (BCOMSEC 401-18)
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Unit summary
Once vouchers are entered, Tally produces final accounts and reports instantly. This unit covers implementing final accounts, displaying accounting reports — trial balance, day book, books and registers, cash book, bank book, balance sheet and profit and loss account — and principal ratios.
After this unit you can
- Explain how Tally implements final accounts
- Display and interpret the trial balance, day book and books of account
- View the balance sheet and profit and loss account with drill-down
- Use Tally's ratio analysis report
PTU syllabus topics
- Implementing final accounts
- accounting reports display
- trial balance
- books and registers
- cash book
- bank book
- balance sheet
- profit and loss account
- principal ratios
- 1Enter vouchers
- 2Trial balance
Check totals
- 3Day book and ledgers
Review entries
- 4Profit and loss account
- 5Balance sheet and ratios
Topic 1
Implementing final accounts in Tally
- Tally builds final accounts automatically from ledgers grouped under the primary groups:
- 1Vouchers posted to ledgers
- 2Ledgers summarised by groups
- 3Trading items
Sales, Purchases, Direct Expenses/Incomes, Opening and closing stock
- 4Profit and loss items
Indirect Expenses and Incomes
- 5Balance sheet
Capital, Loans, Current Liabilities, Fixed Assets, Investments, Current Assets
- Closing stock: computed from inventory (if integrated) or entered in the Stock-in-hand ledger.
- Adjustment entries (outstanding expenses, prepaid, depreciation, provisions) are made through journal vouchers (F7) before viewing final accounts.
- Closing the year: change period (Alt + F2); Tally carries forward balances automatically — no separate closing entries needed.
Topic 2
Accounting reports
| Report | Path (Gateway of Tally ERP 9) | Shows |
|---|---|---|
| Trial Balance | Display → Trial Balance | Closing balances of all groups/ledgers |
| Day Book | Display → Day Book | All vouchers of a day/period |
| Account Books | Display → Account Books | Cash/Bank books, ledgers, group summaries, sales and purchase registers, journal register |
| Cash Book | Account Books → Cash/Bank Books → Cash | Cash receipts and payments with balance |
| Bank Book | Account Books → Cash/Bank Books → bank ledger | Bank transactions; bank reconciliation |
| Statements of Accounts | Display → Statements of Accounts | Outstandings (receivables/payables), interest, cost centres |
| Stock Summary | Gateway → Stock Summary | Quantity and value of stock |
- Drill-down: press Enter on any figure to see underlying groups, ledgers and vouchers.
- Alt + F1 shows detailed view; F2 changes period; Alt + C adds a new column for comparison.
- Bank reconciliation: in the bank book, Alt + R (reconcile) and enter bank dates.
Topic 3
Balance sheet and profit and loss account
- Profit & Loss A/c: Gateway → Profit & Loss A/c — shows gross profit (trading part) and net profit.
- Balance Sheet: Gateway → Balance Sheet — liabilities and assets in the horizontal format; net profit transferred to the Profit & Loss A/c ledger under liabilities.
- Configure (F12) to show percentages, vertical format, or working capital figures.
Example
If the balance sheet shows a "Difference in opening balances", the opening debit and credit balances entered while creating ledgers are not equal — correct the opening balances before finalising.
Topic 4
Principal ratios in Tally
Ratio Analysis (Gateway → Ratio Analysis) shows principal groups and principal ratios instantly.
Current ratio
Current assets ÷ Current liabilities
Quick ratio
(Current assets − Stock) ÷ Current liabilities
Debt/Equity ratio
Loans (liability) ÷ (Capital + Net profit)
Gross profit %
Gross profit ÷ Sales × 100
Net profit %
Net profit ÷ Sales × 100
Operating cost %
Operating cost ÷ Sales × 100
Receivable turnover in days
Closing debtors ÷ Credit sales × days in period
Return on investment %
Net profit ÷ (Capital + Net profit) × 100
Return on working capital %
Net profit ÷ Working capital × 100
Inventory turnover
Sales ÷ Average stock
- Principal groups listed alongside: working capital, cash-in-hand, bank accounts, sundry debtors and creditors, sales, purchases, stock-in-hand, net profit.
Exam tip
In a practical exam, show the examiner the drill-down from ratio → group → ledger → voucher; it proves you understand how reports are built.
Key terms
- Day Book
- Report of all vouchers entered for a day or period
- Drill-down
- Opening detailed data behind a summary figure
- Bank reconciliation
- Matching bank book entries with bank statement dates
- Ratio Analysis
- Tally report of principal groups and ratios
- Stock Summary
- Report of quantity and value of all stock items
Quick revision
- Final accounts are automatic from grouped ledgers; adjustments via journal vouchers.
- Reports: trial balance, day book, account books, cash/bank book, statements of accounts.
- Drill-down with Enter; F2 to change period; Alt + C for columns.
- Balance sheet and P&L from Gateway; fix "difference in opening balances".
- Ratio Analysis: current, quick, debt-equity, GP%, NP%, ROI, inventory turnover.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.How are final accounts prepared in Tally?
- Q2.What is a Day Book?
- Q3.How do you view the cash book in Tally?
- Q4.What is drill-down?
- Q5.How is bank reconciliation done in Tally?
- Q6.Name four ratios displayed by Tally.
Long-answer questions
- Q1.Explain how final accounts are implemented in Tally ERP 9.
- Q2.Explain the accounting reports available in Tally.
- Q3.Explain the procedure to view and configure the balance sheet and profit and loss account.
- Q4.Explain ratio analysis in Tally with its principal ratios.
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