Top 30 Accountant Interview Questions & Answers for Tally ERP 9 Users – 2025

As an accountant proficient in Tally ERP 9, your expertise will play a crucial role in managing financial records, generating reports, and ensuring the accuracy of accounting functions. Here’s a list of the most common interview questions and answers for accountants with experience in Tally ERP 9.

General Questions

• 1. What is Tally ERP 9, and how does it benefit accounting?
  Tally ERP 9 is an integrated business management software that handles accounting, inventory management, and payroll. It provides a user-friendly platform for generating financial reports, managing GST, and automating routine accounting tasks.
• 2. Can you explain the key features of Tally ERP 9?
  Some key features of Tally ERP 9 include accounting management, inventory management, tax management, payroll management, and the ability to generate financial reports like balance sheets and profit & loss statements.
• 3. What is the difference between Tally ERP 9 and Tally Prime?
  Tally Prime is an advanced version with a more intuitive interface, improved features, and enhanced speed. It offers better user experience, advanced reporting, and integration with third-party apps compared to Tally ERP 9.
• 4. How do you manage GST in Tally ERP 9?
  In Tally ERP 9, GST is managed by configuring the GST details in the company’s settings. You can generate GST-compliant invoices, track tax liabilities, and file returns through Tally's GST module.
• 5. How would you create a new company in Tally ERP 9?
  To create a new company in Tally ERP 9, you go to the 'Gateway of Tally' screen, select 'Create Company,' and then enter company details like name, address, and financial year. Once done, the company is ready for accounting.

Accounting Functions

• 6. How do you handle multiple ledgers in Tally ERP 9?
  In Tally ERP 9, multiple ledgers can be created under various groups. Each ledger represents different accounts, and transactions can be recorded against these ledgers to ensure accurate financial reporting.
• 7. What is the process to generate a Profit & Loss statement in Tally ERP 9?
  To generate a Profit & Loss statement, navigate to the 'Display' menu, select 'Profit & Loss A/c,' and choose the period for which the statement is required. Tally will automatically calculate the income and expenses.
• 8. How do you reconcile bank statements in Tally ERP 9?
  Bank reconciliation in Tally ERP 9 is done by matching the transactions recorded in the software with the bank statement. You can use the 'Bank Reconciliation' feature in Tally to ensure the records align.
• 9. Can you explain the concept of vouchers in Tally ERP 9?
  Vouchers in Tally ERP 9 are records of transactions. There are various types of vouchers, including payment, receipt, journal, sales, purchase, and contra. They are used to record all business transactions.
• 10. How do you create a journal entry in Tally ERP 9?
  To create a journal entry, go to the 'Voucher Entry' screen, select 'Journal Voucher,' and then enter the debit and credit details. The system will automatically generate the accounting entry.

Inventory and Tax Management

• 11. How do you manage inventory in Tally ERP 9?
  Tally ERP 9 allows you to create stock items and categorize them into different groups. You can track stock levels, record stock movements, and generate reports like stock summary and stock age analysis.
• 12. What is the process for managing VAT in Tally ERP 9?
  In Tally ERP 9, you can enable VAT in the company settings. The system will automatically calculate VAT on sales and purchases. You can also generate VAT reports for filing returns.
• 13. How do you handle Purchase and Sales transactions in Tally ERP 9?
  Purchase and sales transactions are recorded using the respective vouchers (Purchase/Sales Voucher). You can enter the supplier/customer details, item details, and the tax applicable to generate the transaction.
• 14. How do you maintain GST details for different states in Tally ERP 9?
  In Tally ERP 9, you can set up GST for each state by enabling GST in the company settings. Then, for each transaction, you select the appropriate GST rates for the corresponding state.
• 15. How do you manage excise duty in Tally ERP 9?
  Excise duties can be tracked in Tally ERP 9 by configuring excise tax rates in the item master. Tally will then apply the appropriate excise duties on sales and purchases and generate necessary reports.

Advanced Tally ERP 9 Usage

• 16. How do you create and manage budgets in Tally ERP 9?
  In Tally ERP 9, budgets can be created by selecting 'Budgets' under the 'Accounts Info' menu. You can set up budgets for various periods and track actual vs. budgeted performance.
• 17. Can you explain the process of cost center management in Tally ERP 9?
  Cost centers in Tally ERP 9 help track expenses and income across different departments or projects. You can create cost centers and allocate transactions to them for detailed cost analysis.
• 18. What is the purpose of Tally’s 'Day Book'?
  The 'Day Book' in Tally ERP 9 records all transactions in chronological order. It provides a detailed view of all vouchers entered and can be filtered by voucher type, date, or other parameters.
• 19. How do you manage payroll in Tally ERP 9?
  Tally ERP 9 has a payroll module that allows you to manage employee details, calculate salaries, deduct taxes, and generate payslips. It also helps in statutory compliance like PF and ESI.
• 20. How do you handle TDS (Tax Deducted at Source) in Tally ERP 9?
  Tally ERP 9 has a built-in TDS module that allows you to manage TDS deductions for various transactions. You can generate TDS reports and track payments to ensure timely filing of returns.

Reporting & Data Management

• 21. How do you generate a balance sheet in Tally ERP 9?
  To generate a balance sheet, go to 'Display' and select 'Balance Sheet.' Tally ERP 9 will automatically calculate the assets, liabilities, and equity based on the recorded transactions.
• 22. How do you export reports from Tally ERP 9?
  Tally allows you to export reports in various formats such as Excel, PDF, or HTML. You can select the desired report and choose the 'Export' option to save it in your preferred format.
• 23. How do you take backup and restore data in Tally ERP 9?
  You can back up your Tally data by going to the 'Backup' option under 'Tally.' To restore, you select 'Restore' and choose the backup file to restore your data to its previous state.
• 24. How do you ensure data integrity in Tally ERP 9?
  Data integrity in Tally ERP 9 is ensured by using strong password protection, enabling data encryption, and performing regular backups to prevent data loss and unauthorized access.
• 25. How do you handle depreciation in Tally ERP 9?
  Depreciation can be handled in Tally ERP 9 by configuring asset accounts and entering depreciation entries through the journal vouchers. Tally also generates depreciation reports for financial analysis.

Behavioral & Situational Questions

• 26. How would you handle a situation where you discover discrepancies in the financial records?
  I would investigate the discrepancies by reviewing the transactions and identifying the source of errors. After rectifying them, I would ensure that the system is updated to prevent future discrepancies.
• 27. How do you prioritize tasks during the month-end closing process?
  I prioritize reconciling accounts, ensuring accurate entries are posted, and generating reports like balance sheets and profit & loss statements before focusing on other tasks like tax filing and compliance.
• 28. Have you ever worked with audit teams? How did you manage the process?
  Yes, I have worked with auditors to ensure that all financial records are in order. I provided necessary documentation, reconciled discrepancies, and ensured all transactions were transparent and accurate.
• 29. How do you keep up-to-date with changes in taxation laws and financial regulations?
  I subscribe to tax-related newsletters, attend webinars, and regularly read updates from regulatory bodies like GST Council to ensure compliance with current laws and best practices.
• 30. Why do you think attention to detail is critical in accounting?
  Attention to detail ensures accuracy in financial records, reduces errors, and enhances the reliability of financial reports. Small mistakes can lead to major discrepancies, so being thorough is vital in accounting.