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FINALCIAL STATEMENTS IN TALLY
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Financial Statements

 Financial Statements summarizes individual transactions to show totals, ratios,

and statistics required by users to analyze a company’s financial data.

 Broadly, Financial Statements include the following four major statements

● Balance Sheet

● Profit & Loss A/c

● Trial Balance

● Receipts & Payment A/c

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View the Balance Sheet

 A balance sheet is a financial statement that reports a

company's financial position.
 This report shows the balance between the assets and
liabilities of a firm.
 The balance sheet follows the fundamental accounting
equation:
Assets = Liabilities + Owner's Equity.

1. Go to Gateway of Tally > Display > Balance Sheet .

2. Press F12 to configure the Balance Sheet .
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3. Press Ctrl+A to accept.
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Profit & Loss Account

 The Profit & Loss A/c is a periodic statement, which

shows the net result of business operations for a
specified period.
 All the expenses incurred and incomes earned during
the reporting period are recorded here

1. Go to Gateway of Tally > Display > Profit & Loss A/c

2. Click F1 : Detailed to view the Profit & Loss Account in
detailed format.
3. 3. Press F2: Period to change the period as
required. 02/11/2022
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Trial Balance

 A trial balance is a summary of all ledger balances, and helps in checking whether the transactions are correct
and balanced.
 If journal entries are error-free and posted correctly to the general ledger, the total of all debit balances should
be equal the total of all credit balances.

View Trial Balance

1. Go to Gateway of Tally > Display > Trial Balance . 

Press F12 to configure the Trial Balance , as required.

Note: As per accounting principles, the Trial Balance does not display the closing stock.

3. Press Ctrl+A to accept. 02/11/2022

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Trial Balance

 While providing the opening balance in ledgers, equivalent contrary balance will appear
as Difference in opening balances in order to tally the assets and liabilities, or debit and
credit balances.

 The entry passed for the difference will affect the closing balance, but the Trial Balance will still
display the difference in the amount.

 To balance the difference in the opening balance, you need to adjust it with the opening balance
of another ledger.
 For example , if the Difference in opening balances is Rs. 5000/- on the debit side, adjust
this with Rs 5000/- of credit in the opening balance of another ledger.
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Receipts & Payment A/c

 It is a consolidated summary of cash book, prepared for the required period.

 It starts with opening balance of cash and bank, and ends with closing balance
of cash and bank.

 It does not take into account outstanding receivables and payables.

 It may be of capital or revenue nature, and relating to the current, previous or

subsequent year, so long as they are actually received or paid.

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View Receipts and Payments Report

1. Go to Gateway of Tally > Display > Receipts and Payments .

The Receipts & Payments account is generated and updated right from the date of opening of
books until the date of last entry.

2. Press F2: Period to change the period as required.

3. Select the required group and press Enter to go to Receipts and Payments Summary reports,
and further drill down to go to Ledger Monthly Summary , ledger vouchers, and finally to the
voucher alteration mode.

 The Receipts & Payments account is displayed according to the configuration of settings in

the F12: Configure . 02/11/2022
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Banking

 The Banking feature maintenance of records and processes that are fundamental to effective

recording of accounting transactions for timely payments.

 This feature enables business owners to perform a host of bank-related activities, including

payments to parties, bank reconciliation, and cheque management.

 Using this feature enhances and simplifies the banking experience significantly by saving time,

reducing errors, improving productivity, and scaling up traceability.

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e-Payments

 You can use its e-payments capability to make timely payments to your parties, manage cheques,
reconcile bank statements, and others.
 This feature is a unique capability that syncs your bank master, party master and voucher entry
into a common platform sending the payment transaction to the bank. With e-payments, you can
 Easily record transactions using the electronic mode of fund transfer, including e-Fund Transfer, e-
Cheque, and e-Demand Draft/PO.
 You can send completed payment transactions to the bank, with accurate bank details, either
during voucher creation or from an intuitive e-Payments report under Banking.
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Bank Reconciliation

 The bank reconciliation feature simplifies the complexity of managing

mismatches between your accounts. You can

 Perform seamless reconciliation of the bank and company's account statements.

 Configure bank reconciliation statements in different ways to ease the

reconciliation process and correct mismatches in your accounts.

 Print bank reconciliation statements anytime you need.

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Cheque Management

o Maintain multiple cheque books and enable auto-increment of cheque numbers during voucher
entry. This feature helps reduce manual errors and increase the speed of data entry.

o Manage cheques through their life-cycle - from issue to reconciliation - with the help of the
cheque register.

o View the status of all cheques and use quick search for instant validation of the cheques.

o Print all the cheques for one or more banks all from a single screen.

o Update cheque details as and when you need and print multiple cheques with the click of a
button.

o Print all cheques for one or more banks, all from a single screen for cheque printing. 02/11/2022
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View, Search, Track Your Cheque
Details: Cheque Management

Go to Gateway of Tally > Banking > Cheque Register to view the Cheque Register report.

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Bank Reconciliation

Bank reconciliation is a process that explains the difference between the bank balance shown in
an organization's bank statement, as supplied by the bank, and the corresponding amount
shown in the organization's own [accounting] records at a particular point of time.

● Auto Bank Reconciliation

● Manual Bank Reconciliation

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View Bank Reconciliation Report

The Auto Bank Reconciliation option helps to view bank statements, import bank statements, and
reconcile transactions.

1. Go to Gateway of Tally > Banking > Bank Reconciliation

2. Select the bank. The Bank Reconciliation screen appears.

♦ Valid TSS and internet connectivity are required for performing auto reconciliation.
♦ The facility to import and view bank statements will be available only for banks enabled with auto
reconciliation feature in bank ledger.

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Import Bank Statement

The bank statement can be imported for bank reconciliation. Depending on the bank that is selected, the supported
formats will appear, for example, Excel, MT940 and .CSV.

1. Go to Gateway of Tally > Bank Reconciliation .

2. Select the required bank.

3. Click B : Bank Statement from the Bank Reconciliation screen.

The Select File screen displays the Directory which is specified as the Location of new bank statement

files in F12: Configuration > Banking Configuration .

4. Select the required file format in File Type field. Based on the format selected the bank statements are displayed
under List of Files .

5. Select the file to be viewed.

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6. Click I: With View . The Bank Statement
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7. Press Esc if you do not intend to import the bank statement.

8. Click I : Import to import the bank statement.

The bank statement which is already imported can be selected again for import, if the option Show
Imported Bank Statement is set to Yes under F12: Configure . The files will be listed in
alphabetical order with details of file type and import status.

9. The import progress bar is displayed followed by the Success message with count of Total
Entries in Bank Statement , Reconciled transactions and Additional Bank Entries . 

Ensure that the bank statements which is being imported is not edited or altered. If any changes are
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made, the error message Not a valid format will be displayed while importing the statement.
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10. Press any key.

11. After importing the bank statement, the bank dates
are filled in the Bank Date column automatically in
the Bank Reconciliation screen.
12. Click F12: Configure from the Bank
Reconciliation screen. Set Show Difference in Bank
Balance and Show all Unreconciled Transactions
Till Date to Yes .
13. Accept the Configuration screen.

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Cost Categories & Cost Centre

 Cost categories are useful for organisations that require allocation of revenue and non-revenue items to parallel sets of
cost centres. Cost categories facilitate third-dimensional reporting of expenditure and revenue. For example, region-wise
or geography-wise, Grade-wise, Department-wise, cost categories.
 You can use cost categories you can allocate, in parallel, a transaction to more than one set of cost centres. For
example, Cost Centres such as Marketing, Finance and Manufacturing can now belong to a category - Departments.
 The Salesmen A, B, and C can be Cost Centres under a Category - Executives.
 You can specify a Cost Category to allow allocation of only revenue items or items of both revenue and capital (Non-
Revenue) nature.
 By allocating expenses to parallel Cost Centres under different categories, you are simply assigning the amounts to
them; the amount does not increase. Tally.ERP 9 performs an automatic reconciliation on real-time basis, saving you
the effort of reconciling Ledgers and Cost Centres.
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 Note: Transactions are not allocated to Cost Categories but to Cost Centres only.
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Cost Categories & Cost Centre

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Enable Cost Category

Cost categories are useful for organisations that require allocation of

revenue and non-revenue items to parallel sets of cost centres. Enable
cost categories in F11 features to create and use cost categories.
1. From Gateway of Tally > Click F11: Features > Accounting
Features .
2. Enable the option Maintain Cost Centres?
3. Enable the option Maintain more than one payroll or cost
category?
4. Press Ctrl+A to save the Company Operations Alteration screen.
Cost Categories are now enabled for the company.
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Cost Centres
A cost centre is any unit of an organisation to which transactions (generally, revenue) can be allocated. When
only costs or expenses are allocated to these units, they are referred to as Cost Centres. When profits are also
allocated to these units, they become Profit Centres. You can now obtain a Profit and Loss account of each such
Profit Centre.

Transactions are allocated to cost centres. This enables accounting all transactions for that particular cost centre.
You can view the cost centre break up of each transaction as well as the details of transactions for each Cost
Centre.

Some examples of Cost Centres are:

● Departments of an organisation - Finance, Manufacturing, Marketing, and so on.

● Products of a company.

● Individuals such as Salesman A, Salesman B. 02/11/2022

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Cost Centres
You can classify cost centres, just as you classify Group/Ledger accounts. You can have Primary Cost Centres
and several levels of Cost Centres under each Primary Cost Centre.

Consider the following example.

● Primary Cost Centres - Finance, Manufacturing, Marketing.

● Under Marketing, classify the company's sales executives (Salesman A, Salesman B, Salesman C) as Cost
Centres. This will help you track a sales executive's performance, in terms of cost and revenue generated.

Allocate expenditure incurred on sales by the salesmen, as well as the sales generated by them, directly to their
Cost Centres. The allocation is done at the time of voucher entry. This prevents allocation errors at the end of
the period.

By allocating expenses and sales transactions to the salesmen, you are setting up a valuable information system
that tracks the performance of your salesmen. 02/11/2022
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Backup/Restore

1. Go to Gateway of Tally > F3 : Cmp Info > Backup to view the Backup Companies on Disk screen.

2. Source - The folder path where your company data is stored. By default, the folder path of your existing
company data is displayed here.
3. Destination - The folder path where the data backup has to be stored. You can store the backup locally on
your computer, on any external storage device, or on a storage space on the network.
4. Select the required company from the List of Companies . Select All items to back up data of all the
companies.
5. Press Ctrl+A to initiate the backup process.
The backup file is stored in the destination folder as TBK900_10000.001 . Data backup taken using versions
prior to Release 6.0 used to store the data in TBK900.001 format.
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Restore Backup
1. Go to Gateway of Tally > F3 : Cmp Info > Restore to view the Restore
Companies screen.

2. Destination - The folder path where your company data is to be restored. Do not restore
backup data in the folder where your company data exists, since it may overwrite the existing
data.

3. Source - The folder path where the backup file is stored. You can restore data stored locally
on your computer, on any external storage device, or on a storage space on the network.

4. Select the required companies from the List of Companies . Select All items to restore
data of all companies.
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5. Press Ctrl+A to restore the data backup.