Tally Prime Interview and Practice Questions with Answers for Freshers

What basic Tally Prime interview questions are asked?

Basic Tally Prime interview questions for freshers check whether you know what the software is and how a company is set up in it. Expect to be asked what TallyPrime is and how it differs from Tally.ERP 9, what the Gateway of Tally shows, how to create a company, and what F11 (Company Features) and F12 (Configurations) do. Interviewers also ask about Go To (Alt+G), TallyVault, Edit Log, TSS and Educational mode.

These show whether you have used the current release rather than an old tutorial. Keep each answer to two or three sentences: say what the feature is, where it sits and when you would use it. Add one detail from practice where you can, such as the dates Educational mode accepts. The ten questions below are the ones usually asked first, before the interview moves on to ledgers, vouchers and GST.

1. What is TallyPrime?

TallyPrime is business management software from Tally Solutions for accounting, inventory, GST and TDS compliance, banking and payroll. It runs on Windows and is widely used by small and medium businesses in India. The current release is 7.2, published on 12 October 2026.

2. What is the difference between Tally.ERP 9 and TallyPrime?

TallyPrime replaced Tally.ERP 9 in 2020. The accounting logic is the same. TallyPrime adds Go To (Alt+G) navigation from any screen, right-side buttons and changed shortcut keys. It also has newer features such as connected GST filing, a Dashboard and connected banking.

3. What is the Gateway of Tally?

It’s the main screen after you open a company. It lists Masters (Create, Alter, Chart of Accounts), Transactions (Vouchers, Day Book) and Utilities (Banking). It also lists reports such as the Balance Sheet, Profit & Loss A/c and Stock Summary.

4. How do you create a company in TallyPrime?

Press Alt+K (Company) > Create, or choose Create Company if none exists. Enter the name, address, state, financial year and books beginning date, then press Ctrl+A to save. TallyPrime then opens the Company Features screen.

5. What is the difference between F11 and F12?

F11 opens Company Features, which switch capabilities on or off for the company, such as inventory, GST, TDS or payroll. F12 opens Configurations for the current screen or report, which change how that screen behaves or displays.

6. What does Alt+G do?

Alt+G opens Go To. You type the name of any report, voucher or master and press Enter to open it from almost anywhere. Ctrl+G (Switch To) moves to a different report in the flow of work.

7. What is TallyVault?

TallyVault is a password that encrypts a company’s data. Without the password, the company can’t be opened, and TallyHelp warns that a lost TallyVault password cannot be retrieved.

8. What is Edit Log in TallyPrime?

Edit Log records every creation, alteration and deletion of vouchers and masters, with the date and time (and the user, when security control is enabled). It’s optional in TallyPrime and always on in the separate TallyPrime Edit Log product, which suits companies that must keep an audit trail.

9. What is TSS?

Tally Software Services is an annual subscription, free for the first year with a purchased licence. It provides upgrades and online services such as e-invoice and e-way bill generation, direct GST filing and data synchronisation.

10. What is Educational mode?

It’s TallyPrime running without a licence. All features except connected services work and it’s free with no time limit, but vouchers can be dated only on the 1st, 2nd and 31st of a month. Students use it to practise.

Groups and ledgers

11. How many predefined groups are there in TallyPrime?

There are 28 predefined groups: 15 primary groups and 13 sub-groups. Of the primary groups, 9 appear in the Balance Sheet (capital in nature) and 6 in the Profit and Loss Account (revenue in nature).

12. Which ledgers are predefined in TallyPrime?

Two: Cash (under Cash-in-Hand) and Profit & Loss A/c (a primary ledger). They can’t be deleted, though you can rename them.

13. Can you delete a predefined group?

No. Only user-created groups can be deleted. TallyHelp also recommends not altering predefined groups, because it can cause classification and reporting problems.

14. Under which group do you create a customer ledger?

Sundry Debtors. Suppliers go under Sundry Creditors. TallyHelp specifically warns against creating customer accounts under Sales Accounts, which is only for sales ledgers.

15. Where do GST ledgers go?

Under Duties & Taxes, with the type of duty set to GST and the tax type set to Central Tax, State Tax or Integrated Tax.

16. What is the Bank OD A/c group used for?

It’s for bank overdraft or cash credit accounts, such as a hypothecation or OCC account. It sits under Loans (Liability), while ordinary current and savings accounts go under Bank Accounts.

17. What is the Suspense A/c group for?

It holds amounts whose purpose isn’t clear yet, such as an advance whose use will be known later. Once the purpose is known, you transfer the amount to the correct ledger.

18. Where would you put rent paid and interest received?

Rent paid goes under Indirect Expenses. Interest received goes under Indirect Incomes, because neither relates to buying or making the goods you sell.

Vouchers and entries

19. What are the main voucher types and their keys?

Contra (F4), Payment (F5), Receipt (F6), Journal (F7), Sales (F8), Purchase (F9), Debit Note (Alt+F5) and Credit Note (Alt+F6). Inventory vouchers include Stock Journal (Alt+F7), Delivery Note (Alt+F8) and Receipt Note (Alt+F9).

20. When do you use a Contra voucher?

For transfers between cash and bank, or between two bank accounts. Examples: depositing cash into the bank, withdrawing cash for the office, or moving money from one bank account to another.

21. When do you use a Journal voucher?

For adjustments that don’t involve cash or bank, such as depreciation, outstanding expenses, provisions, or correcting a wrong ledger. For example, salary due but unpaid is Dr Salary, Cr Salary Payable.

22. What is the difference between a debit note and a credit note?

In TallyPrime, a Debit Note voucher is typically used for purchase returns or a reduction in a supplier’s bill, so the supplier’s account is debited. A Credit Note voucher is used for sales returns or a price reduction given to a customer, so the customer’s account is credited.

23. What is the difference between an optional voucher and a memorandum voucher?

An optional voucher (Ctrl+L) is a normal voucher marked as not yet final; it doesn’t affect the books until you make it regular. A memorandum voucher is a separate type for entries whose purpose is uncertain, such as a cash advance. It can later be converted into the actual voucher.

24. What is a post-dated voucher?

A voucher recorded now for a future date, marked with Ctrl+T. It affects the books only when that date arrives. Post-dated cheques are the common use.

25. What is the difference between cancelling and deleting a voucher?

Alt+X cancels a voucher: it stays in the books as cancelled, so the voucher number stays in sequence. Alt+D deletes it completely. Cancelling is preferred for invoices, because gaps in invoice numbering raise questions in audits.

26. What is bill-wise entry?

Bill-wise entry tracks each invoice separately for a party, so payments can be matched against specific bills (New Ref, Agst Ref, Advance, On Account). It’s enabled in F11 and makes the receivables and payables reports accurate.

27. What is a voucher class?

A voucher class pre-sets ledger selections and rules for a voucher type, so repeated entries are faster and less error-prone. For example, a sales class can default the sales ledger and GST ledgers.

28. How do you change the date of a voucher?

Press F2 in the voucher to change its date. Alt+F2 changes the period in reports or the company’s current period.

29. How do you record a sale on credit with GST?

Open a Sales voucher (F8), select the customer ledger, the sales ledger and the stock item with quantity and rate. TallyPrime calculates GST from the rate saved in the item or ledger. Save with Ctrl+A.

30. What would you check if the Trial Balance doesn’t tally?

Usually a difference in opening balances, because TallyPrime’s double entry won’t save an unbalanced voucher. Check opening balances in ledgers, review exceptions (Ctrl+J), and drill down into the difference line to find the source.

GST in TallyPrime

31. How do you enable GST in TallyPrime?

Press F11 (Company Features) and set Enable Goods and Services Tax (GST) to Yes. Then fill in the GST details: state, registration type, GSTIN and applicable-from date.

32. How does TallyPrime decide between CGST plus SGST and IGST?

From the place of supply compared with the company’s state. A supply within the same state attracts CGST plus SGST; a supply to another state attracts IGST. That’s why the state on each party ledger must be correct.

33. What is the difference between GSTR-1 and GSTR-3B?

According to the GST portal, GSTR-1 is the statement of outward supplies with invoice-level details of sales. GSTR-3B is a summary return in which the taxpayer declares the tax liability for the period and pays it. TallyPrime prepares both from your vouchers.

34. Can TallyPrime file GST returns directly?

Yes, since Release 5.0. With an active TSS subscription and GST portal login, you can upload and file GSTR-1 and GSTR-3B from inside TallyPrime.

35. What is IMS in TallyPrime?

IMS (Invoice Management System) lets you accept, reject or keep pending the invoices your suppliers upload on the GST portal. Your choice affects the input tax credit you can claim. TallyPrime supports IMS fully from Release 6.1.

36. What is reverse charge?

Under reverse charge, the buyer pays the GST instead of the supplier, for notified goods and services or specified cases. In TallyPrime you mark the transaction as reverse charge so the liability is calculated on your side.

37. Does TallyPrime generate e-invoices and e-way bills?

Yes. With TSS, TallyPrime generates e-invoices (IRN and QR code) and e-way bills online from the sales voucher, singly or in bulk. It can also export data for offline generation.

38. Where do you enter the HSN code?

In the stock item (or stock group, or ledger for services) under GST details. Online HSN/SAC validation has existed since Release 2.0; Release 7.1 extended it to masters and reports such as GSTR-1 and the HSN/SAC Summary.

Inventory

39. What is the difference between a stock group and a stock category?

A stock group classifies items by type, such as notebooks or pens. A stock category is a second, parallel classification, such as brand or size, so you can view reports either way.

40. What is a godown?

A godown is a storage location, such as a warehouse, shop or rack. Stock can be tracked and transferred between godowns.

41. Which stock valuation methods does TallyPrime support?

Eight: Average Cost (the default), FIFO, FIFO Perpetual, Last Purchase Cost, LIFO Annual, LIFO Perpetual, Standard Cost and Monthly Average Cost.

42. What is a Bill of Materials?

A BOM lists the components and quantities needed to make one unit of a finished item. A manufacturing journal uses it to consume components and add finished goods to stock.

43. What does Integrate Accounts with Inventory do?

When set to Yes in F11, closing stock in the Balance Sheet comes automatically from inventory records. When No, closing stock must be entered manually in the stock ledger.

44. What are batches used for?

Batches track stock by lot, with manufacturing and expiry dates. Pharma and FMCG businesses use them to sell older stock first and track expiry.

Payroll, banking and reports

45. How do you activate payroll?

Press F11 (Company Features) and set Maintain Payroll to Yes. Then create employee groups, employees, pay heads and salary details before recording payroll vouchers (Ctrl+F4).

46. What is bank reconciliation in TallyPrime?

It matches the company’s bank ledger with the bank statement, so uncleared cheques and bank charges are identified. From Release 6.0, TallyPrime automatically reconciles exact matches from imported or connected bank statements and suggests potential matches.

47. What is a cost centre?

A cost centre is a unit to which income or expenses are allocated, such as a department, branch or project. Cost categories group cost centres into parallel classifications.

48. What is the Day Book?

The Day Book lists all vouchers recorded for a date or period. Open it with Alt+G > Day Book or from the Gateway of Tally.

49. How do you take a backup of company data?

Press Alt+Y (Data) and choose Backup (Release 6.2 and earlier) or Backup & Restore (Release 7.0 onwards). Release 7.0 also added scheduled automatic backups to a local drive or TallyDrive.

50. How do you export a report to Excel?

Open the report and press Ctrl+E to export the current screen, choosing Excel as the format. Alt+E opens the full export menu.

Quick-fire shortcut questions

Interviewers often fire a few shortcut questions to test hands-on familiarity. These are the ones that come up, with answers from Tally’s official table.

Watch out for answers copied from older lists. Alt+G is Go To (not Day Book), and Ctrl+Alt+T shows TDL details (not the Trial Balance). Our complete TallyPrime shortcut keys list has every key with its Tally.ERP 9 equivalent.

Tally Prime questions for practice with answers: a 10-entry exercise

This practice exercise is the kind of task a practical round uses. Enter it in TallyPrime (Educational mode is enough), then check your figures against the answers below. The company is ABC Traders, Delhi, a regular GST taxpayer; assume the item carries 18% GST so the maths stays simple.

Check your answers

• Bank balance: ₹1,70,870. Cash in hand: ₹2,000.
• Stock of Item A: 25 units (100 bought, 80 sold, 5 returned), worth ₹5,000 at cost.
• Outstanding debtors: Gupta Mart ₹7,080; Verma Stores nil. Creditors: nil.
• GSTR-1: two B2B invoices (one intra-state, one inter-state) and one credit note.
• GST set-off: output tax is CGST 1,485, SGST 1,485 and IGST 1,080; input tax is CGST 1,800 and SGST 1,800. After CGST and SGST are set off, the remaining ₹315 of each goes against IGST, leaving ₹450 IGST payable in cash.

If a figure doesn’t match, open the Day Book (Alt+G, Day Book) and check the voucher type and ledgers of each entry. Interviewers often ask you to find exactly this kind of mistake.

Tally Prime GST questions and answers for practice

1. A Delhi dealer sells to a buyer in Delhi. Which taxes appear on the invoice? CGST and SGST, each at half the rate.
2. The same dealer sells to a buyer in Jaipur. Which tax applies? IGST at the full rate, because the place of supply is in another state.
3. Where do you check whether a supplier’s invoice is in GSTR-2B? In the GSTR-2B reconciliation report in TallyPrime, after downloading or importing the return.
4. A customer returns goods. Which voucher do you use? Credit Note (Alt+F6), with the original invoice reference so the tax is reduced correctly.
5. Your GSTR-1 shows an invoice as “uncertain”. What do you do? Open the exception report, fix the missing detail (usually GSTIN, HSN or state) in the voucher or master, and re-check.

The practical round: five tasks to rehearse

Many employers sit freshers at a computer and ask them to record a few transactions. Practise these until you can finish them in 20 to 30 minutes without help:

1. Create a company with GST enabled and the correct state.
2. Create a customer, a supplier, sales and purchase ledgers, GST ledgers and one stock item.
3. Record a credit purchase, a credit sale within the state, a sale to another state, a receipt against a bill and a bank payment.
4. Show the GSTR-1 for the month and point out the IGST invoice.
5. Open the Trial Balance, Profit & Loss A/c, Balance Sheet and the customer’s outstanding bills.

Our step-by-step TallyPrime practice guide walks through almost exactly this set of entries, with the results you should expect in each report. If you are still learning the basics, start with its six-week plan for beginners.

How to answer Tally interview questions well

A correct answer delivered well beats a longer answer delivered nervously. Keep these points in mind:

• Explain the logic. For any entry, say which account is debited, which is credited, and why.
• Name the release if relevant. Saying “from Release 5.0 you can upload GSTR-1 directly” shows you’re current.
• Admit what you don’t know. Then say how you’d find it, such as Ctrl+F1 for TallyHelp. Guessing wrong costs more.
• Prepare for general accounting questions too. Our accounting interview questions and answers cover the theory side.
• Show it on paper. List Tally skills precisely on your CV; our resume format for accounting freshers shows how.

If you want structured practice before interviews, IPA’s Tally course in Delhi includes hands-on entry work and placement assistance. To see where each question sits in a course, compare it with the Tally syllabus, basic to advanced.

How we teach this at IPA

Freshers are usually asked to do something on screen, not just to answer questions. In IPA’s Tally course the practice is the teaching method. You post entries from realistic bills, see how each one reaches the ledgers and reports, and fix your own errors. That is the habit an interviewer’s practical round looks for.

Frequently asked questions