Fintech Tally Interview Questions and Answers

1. How would you briefly define Tally?

A tally is accounting software used by professionals for tax, billing, inventory, and compliance. It was developed by Tally Solutions, an Indian company with its headquarters in Bangalore.

2. What falls under Intangible Assets?

  • Trade Marks
  • Domain names
  • Patents
  • Brand Names/ Goodwill
  • Copyright

3. What are the predefined ledgers available in Tally?

There are two predefined ledgers available in Tally software and are as follows:

Cash: Cash-in-hand ledger is created in this predefined ledger group. The opening balance can be entered as on the books beginning from.

Profit and Loss Account: This ledger is created under the primary group, and the previous year’s profit or loss can be entered as the opening balance of this ledger.

4. What are some statutory features available in Tally?

Following is the list of statutory features available in Tally:
  • Value Added Tax
  • Goods and Service Tax
  • Service Tax
  • Exercise Tax
  • The Tax collected/deducted at the source
  • Payroll Statutory

5. Define Trial Balance in Accounting?

An accounting report that records the credits in each of an organization’s global ledger accounts is known as a trial balance. It’s done at the end of journal entry posting to make sure there aren’t any bugs

6. What does the statement of Inventory be used for?

The Statement of Inventory is used to visualize inventory reports based on Godown. Keeping track of item data in accordance with the Inventory. In addition, to inquire about stock and review budgets, estimates, and plans, statistics, and so on.

7. What does ERP stand for?

ERP stands for enterprise resource planning. Tally can also be defined as an enterprise resource planning software.

8. What is a group in Tally

A group in Tally is a collection of ledgers of the same kind.
Tally has 28 groups by default, 15 of which are called primary groups, while the rest are subgroups.

9. What is a contra voucher and what is the Tally shortcut for it?

A contra voucher is one that details the transfer of funds from a bank account to a cash account and/or vice versa.
The shortcut for it is F4.

10. Do you know the shortcuts for voucher creation and alteration screen?

Yes, the shortcut for creating a voucher is Alt + C and for altering any master item on a voucher, it is Ctrl + Enter.

11. Explain the types of vouchers in Tally along with their shortcuts

The Vouchers that can be created in Tally ERP9 are;

  • Memo Voucher, this voucher records the unknown expense that can later be deleted or converted to an actual sale voucher. The shortcut is Ctrl+F10.
  • Debit Note Voucher, keeps the records of damaged goods that are returned to suppliers. The shortcut is Cntrl+F9
  • Reversing Journals, this journal gets reversed automatically post the date of the issue. F10 is the shortcut.
  • A Credit Note voucher is created when customers return products that were not correctly dispensed. The shortcut key is Cntrl+F8.
  • Purchase vouchers, items recorded that are purchased for running a business for example raw materials. The shortcut is F9.
  • Contra Voucher is created in case of transfer of funds from a bank account to the cash account or vice versa, or to a different bank account of different banks. The shortcut is F4.
  • Sales/Invoice Voucher records the sales made and creates sales invoices. The shortcut is F8.
  • Journal Voucher, maintains the expenses of organizations running expenditures. The shortcut is F7.
  • Receipt Voucher describes transactions related to payment received. The shortcut key is F6.
  • Payment Voucher describes the historical payments on each account for example rental, salaries, etc. The shortcut is F5.

12. What Are Financial Statements? Name The Major Financial Statements?

The Financial statements are the reports that result from the process of accounting which allow the interested parties to evaluate the profitability and the solvency of the business. The major financial statements are:

  • Profit and Loss Account
  • Balance sheet
  • Cash Flow statement.

13. Tell Us What You Know About Accounts Receivables and Payables?

Accounts Receivable, normally abbreviated as A/R, is the money that is currently owed to a company by its customers. The reason why the customers owe money is that the product has been delivered but has not been paid for yet. Where a company will be forced to take a write-off for bad accounts receivable if it has given credit to someone who cannot or will not pay. This is why you will see something called allowance for bad debt in parentheses beside the accounts receivable number.

Accounts Payable is the money that the company currently owes to its suppliers, its partners and its employees. Basically, these are the basic costs of doing business that a company, for whatever reason, has not paid off yet. One company’s accounts payable is another company’s accounts receivable, which is why both terms are similarly structured. A company has the power to push out some of its accounts payable, which often produces a short-term increase in earnings and current assets.

14. What Is Depreciation? List Few Methods of Providing Depreciation?

It is common knowledge that when an asset is used over a period of time, it looses its value. This loss in value is called depreciation. Pickles defines it as “the permanent and continuing diminution in the quality, quantity or value of an asset” Depreciation is the continuous shrinkage of book value of an asset.

Few methods of depreciation are

  • Straight line Method
  • Reducing Balance Method
  • Machine hour method

15. Full form of FIFO and LIFO. Explain?

FIFO- First in First Out
LIFO- Last in First Out

16. What Is the Accrual Basis of Accounting?

Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement that better measures the profitability of a company during a specific time period.

17. How to view profit and loss statements in Tally?

Click on F1: Detailed to view the profit and loss statement and it will pull out the information based upon the default primary group. 

18. What is Reverse Charge Mechanism (RCM)? Does it Apply only to Services?

Reverse Charge Mechanism is a mechanism under GST, wherein the usual cycle of tax payment is reversed.
No, reverse charge mechanism is applied to both, supply of services and goods.

19. What is MIS?

MIS report can be described as a system that provides important information for the management of your company.

20. What is BoM?

A bill of materials or product structure is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product.

21. Short keys for Export & Mail in Tally

ALT+M- Mail
ALT+E- Export

22. Define Golden Rules of Accounting

Debit What Comes in, Credit What goes Out – Real Account
Debit the Receiver, Credit the Giver – Personal Account
Debit all Expenses or Losses, Credit all Incomes or Gains- Nominal Account

23. What is Meant by Input GST?

GST on purchase is called Input GST.

24. What is Payable GST?

The difference between the Output GST and Input GST is the GST payable.

25. What is the Limit for Registration in GST?

The limit for registration in GST is Rs. 20 Lacs. In case the turnover is more than 20 lacs or likely to go beyond 20 lacs, then compulsory registration in GST is applicable.

26. In a Business Process, Who Pays the Final Tax?

The GST is an indirect tax wherein the tax keeps passed on till the last stage where the customer bears the tax. The change under the GST is that with multiple taxes levied in each stage the final cost to the customer will be eventually lower as double charging is eliminated from the system.

27. What Are the Effects of Purchasing Goods from Unregistered Dealers?

The person who receives goods or services will get ITC(Input Tax Credit ). In fact, the receivers of goods or services who are registered under any composition schemes are liable to pay tax under reverse charge.

28. What Is the Minimum Amount for GST?

With GST in action, all businesses with a turnover of over Rs. 40 lakhs* (Rs 10 lakhs for the NE and hill states) are needed to register as a normal taxable person. This process of registering is called GST registration. For many businesses, this registration is compulsory.

29. What Are the Types of GST?

There are 4 types of GST in India:
SGST (State Goods and Services Tax)
CGST (Central Goods and Services Tax)
IGST (Integrated Goods and Services Tax)
UGST (Union Territory Goods and Services Tax)

30. What Do You Mean by Output GST?

GST on sales is called Output GST which is also referred to as GST Liability.

31. In which states does GST not apply?

Except for Jammu and Kashmir, GST is appropriate in all states.

32. Define the GST’s Slabs?

There are currently 5 rate components for the GST: 3%, 5%, 12%, 18%, and 28%. This is distinct from the manner that some products are absolved and zero-evaluated.

33. Who is the head of GST?

Finance Minister (Nirmala Sitaraman)

34. What is the GST number?

 Organizations should enroll for the Goods and Services Tax (GST) and get an exceptional 15-digit Goods and Services Tax Identification Number (GSTIN). The Tax Identification Number (TIN) that businesses received from state tax authorities in order to register with the VAT system has been replaced by this.

35. How is a GST number assigned?

A 15-digit identification number makes up the GST Registration number. In view of the candidate’s PAN and express, the citizen was doled out a number. The State Code is addressed by the initial two digits of a GST enrollment number. The candidate’s PAN is addressed by the following 10 numbers.

36. What is Form 16?

A bill of materials or product structure is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product.

37. What is a TDS certificate?

Form 16, Form 16A, Form 16 B and Form 16 C are all TDS certificates. TDS certificates have to be issued by a person deducting TDS to the assessee from whose income TDS was deducted while making payment


Certificate of


Due date

Form 16

TDS on salary payment


31st May

Form 16 A

TDS on non-salary payments


15 days from due date of filing return

Form 16 B

TDS on sale of property

Every transaction

15 days from due date of filing return

Form 16 C

TDS on rent

Every transaction

15 days from due date of filing return

38. How to deposit TDS?

Tax Deducted at Source has to be deposited using Challan ITNS-281 on the government portal. Read our article for a step-by-step guide for depositing TDS payment online.

39. What is TAN?

TAN stands for Tax Deduction Account Number. TAN number is required to be obtained by all persons who are responsible for deducting or collecting of tax. It is a 10-digit alpha numeric number allotted by the Income Tax Department.

40. When TDS to be deducted and when it’s to be deposited?

TDS to be deducted either at the time of credit to the deductee account or at the time of payment whichever is earlier.
TDS to be deposited on or before 7th of the following month.
Example: TDS deducted in April, to be deposited by 7th May