Tally Objective Questions and Answers in English – Hello student! In this post we have brought Tally MCQ Question in English for you. In this paper you will get 30 Multiple Choice Questions which you can prepare from here.
Tally Objective Questions and Answers in English
1) We can show Bill wise details of Debtors and Creditors by activating
A) Maintain Bill by bill
B) Maintain Bill wise Details
C) Maintain References
D) None of these
Answer : B
Description : Maintain Bill Wise Details is a function that helps to track the details of a voucher entry i.e. Credit Sales or Credit Purchases so important information about that particular voucher or bill is available. It also help to mark payment against particular invoice or bill. To activate this feature in tally:
Gateway of Tally > Press – F11: Accounting Features > Set ‘Yes’ to ‘Maintain Bill wise Details
2) How many inbuilt Accounts group are in tally by default
A) 29
B) 31
C) 25
D) 34
Answer : D
Description : There are 34 Predefined groups are there in Tally ERP 9. Some of them are Bank Accounts, Current Asset, Secured Loan, Indirect Expense etc. Apart from these pre-defined Groups tally allow us to create under these main groups.
3) Suspense Account Group is defined under
A) Income
B) Expenditure
C) Liabilities
D) Assets
Answer : C
Description : In tally Suspense Account Group is defined under Liabilities. A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded. Once the accounting staff investigates and clarifies the purpose of this type of transaction, it shifts the transaction out of the suspense account and into the correct account(s). An entry into a suspense account may be a debit or a credit.
4) Manufacturing Journal creates based on
A) Journal
B) Receipt Note
C) Stock Journal
D) Purchase Quotation
Answer : C
Description : Manufacturing Journal is used to make dispatch of multiple components to manufacture a single product. For Example, A Pen is made by following things: Refill, Nib, Upper Cover, Lower Cover & Cap. To create a manufacturing journal in tally
Gateway of Tally > Inventory Vouchers > F7 : Stk Jrnl.
5) To create Manufacturing Journal which option must be activated
A) Use Common Narration
B) Narrations for each entry
C) Prefilled with Zero
D) Use as manufacturing Journal
Answer : D
Description : Gateway of Tally > Inventory Info. > Voucher Types > Create.
Set this option Use a Manufacturing Journal to Yes. Once this option is set to Yes, it will allow to record Manufacturing Journal.
6) Single Entry mode is applicable for
A) Receipt Voucher
B) Contra Voucher
C) Payment Voucher
D) All of these
Answer : D
Description : Tally gives a handy option of entering vouchers in single entry mode and double entry mode. These options are available for Contra, Receipt and payment vouchers.
7) Reversing journal is a
A) Conventional Voucher
B) Unconventional Voucher
C) Both (a) and (b)
D) None of these
Answer : B
Description : Reversing Journals (Non-Accounting/Unconventional Voucher) are special journals that are automatically reversed after a specified date. They exist only till the specified date and are effective only when they are included in reports like the Balance Sheet.
Gateway of Tally > Display > Exception Reports > Reversing Journals
8) To hide the name of the Company you need to define
A) Security Control
B) Tally Audit
C) Create at least one User
D) Tally Vault Password
Answer : D
Description : Tally Vault is like a lock which is not going to show company into the list of companies, due to which your company details will not be accessible by anyone and secrecy and privacy can be maintained with the help of that feature. When company will be selected from ‘select company’ menu, symbol like this will be shown. Thus, not showing any of the details of the company to others.
So Tally Vault is a kind of security feature built in Tally. An advanced level security feature in Tally ERP to keep up confidentiality of information by encrypting the data. Tally Vault uses a password with an advanced algorithm to validate a new user without any prior understanding of the password and the form of data is not located on the device.
9) Goods returning to a Creditor after challan but before bill we need to pass
A) Debit Note
B) Receipt Note
C) Rejection Out
D) Rejection In
Answer : C
Description : Rejection Out/Purchase Returns (Alt + F6) Voucher is used to record goods returned back that were rejected by the company.
10) Branch / Division is a group defined under
A) Liabilities
B) Assets
C) Income
D) Expenditure
Answer : A
Description : Branch / Division is a group defined under Liabilities
11) How many types of Measurement Units we can create in Tally
A) 2
B) 3
C) 5
D) Unlimited
Answer : A
Description : The quantity of stock item is measured in units. You have to create units for stock items because stock items are purchased or sold on the basic quantity
Tally provides two type of units, which are follows:
Simple : Refers to units, such as pieces, numbers, kilograms, and grams
Compound : Refer number of quantities that makes a units, such as 1000 grams makes a 1 kilogram In this section, you learn how to create a simple and compound units, display a units, and alter a unit.
12) To activate Job Costing which options require to be activated
A) Maintain Cost Centre
B) Use Cost Centre for Job Costing
C) Both A and B
D) None of these
Answer : C
Description : Job costing is a form of specific order costing, which applies to a job undertaken according to customer requirements and specifications. Tally.ERP 9 enables the tracking of cost and revenue information like material, labour, and overhead for a specific job down to the smallest detail. With a view to ascertaining the actual costs incurred for each job, each job is assigned a job number or a job name.
Enable job costing
i) Go to Gateway of Tally > F11: Company Features ( F1: Accounting features ).
ii) Set the option ‘Maintain cost centres?’ to Yes .
iii) ‘Use cost centre for job costing?’ to Yes
iv) Press Crl+A to save.
13) In Tally, there are __ predefined ledgers.
A) One
B) Two
C) Three
D) Four
Answer : B
Description : There are two pre-defined ledgers available in Tally.ERP 9, they are:
Cash – This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger.
Profit and Loss Account – This Ledger is created under the Group Primary. Previous year’s Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.
You cannot delete this ledger, but you can modify the same.
14) We can see list of Memorandum Vouchers from
A) Cash/Bank Books
B) Exception Reports
C) Accounts Books
D) Trial Balance
Answer : B
Description : Memorandum voucher is a special voucher which are used to record transactions temporarily in tally. It is a Non-Accounting voucher whose entries do not affect accounts. The entries in this voucher are not posted into ledgers, instead are stored in a separate Memo Register.
To view all the memorandum vouchers, go to
Gateway of Tally > Display > Exception Reports > Memorandum Vouchers
15) We can see Working Capital figure changing
A) Voucher configuration
B) Profit & Loss configuration
C) Balance Sheet configuration
D) Ledger configuration
Answer : C
Description : Gateway of Tally > Balance Sheet > press F12: Configuration and set ‘Show Working
Capital figures’ to ‘Yes’ > press Alt+F1
Working capital is the difference between current assets and current liabilities.
16) We can get the report of Interest from
A) Account Books
B) Cash and Fund flow
C) Inventory Books
D) Statements of Accounts
Answer : D
Description : Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger.
17) To see reports of Job Work Analysis
A) Display > Statements of Accounts > Job Work Analysis
B) Display > Job Work In Reports > Job Work Analysis
C) Display > Statements of Accounts> Cost Centre > Job Work Analysis
D) None of these
Answer : B
Description : Gateway of Tally > Display > Job Work In Reports > Job Work Analysis
18) To create Scenario which option requires to be activated
A) Use Rev Journal ; Optional voucher in F12
B) Use Optional voucher in F11
C) Use Reversing voucher in F11
D) Use Rev journal ; Optional voucher in F11
Answer : D
Description : Gateway of Tally > F11: Features: F2: Accounting Features > Set Use Rev. Journals & Optional Vouchers? to Yes.
19) Optional Voucher is one type of
A) Conventional Voucher
B) Unconventional Voucher
C) Both A and B
D) None of these
Answer : B
Description : The Non Accounting/Unconventional Vouchers are the special vouchers that are used to record provisional or non-accounting transactions. Unconventional vouchers are mainly used to exclude unnecessary entries or provisional entries from the books of accounts and make them available for what if (future reports, projections, forecasts etc.) reports required at any given time.
20) List of Optional Voucher we can get from
A) Cash Bank Books
B) Exceptional Reports
C) Accounts Books
D) Balance Sheet
Answer : B
Description : Gateway of Tally > Display > Exception Reports > Optional Vouchers
21) Transfer of materials from one godown to another godown, use
A) Manufacturing Journal
B) Stock Journal
C) Purchase Journal
D) Both A & B
Answer : B
Description : A stock journal is used to transfer materials or stock from one location to another location. Stocks could even simply be shown as consumed or even only produced and without both consumption and production.
Gateway of Tally > Voucher Entry > ALT+F7 or Click on Stock Journal
22) Recording of actual stock as physically verified or counted is done through
A) Journal
B) Stock Journal
C) Physical Stock
D) Sales
Answer : C
Description : Physical Stock Voucher is used for recording the actual stock which is verified or counted. It could happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds a discrepancy between actual stock and computer stock figure.
23) Budget represents __________
A) Estimation
B) Forecasting
C) Assumption
D) All of these
Answer : D
Description : Budget is a plan quantified in monetary terms prepared and approved prior to a defined period of time, usually showing planned income to be generated and/or expenditure to be incurred during that period and the capital to be employed to attain a given objective.
24) Find out which is not a Default Ledger in Tally
A) Cash in Hand
B) Capital Account
C) Profit & Loss
D) None of these
Answer : B
Description : There are two pre-defined ledgers available in Tally, they are:
Cash – This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger.
Profit and Loss Account – This Ledger is created under the Group Primary. Previous year’s Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.
You cannot delete this ledger, but you can modify the same.
25) The Profit & Loss statement can be displayed in ___________ format(s).
A) Horizontal
B) Vertical
C) A or B
D) None of the above
Answer : C
Description : 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. The Profit & Loss A/c is in horizontal form, by default. It can be view in vertical format by enabling the option Show Vertical Profit & Loss? by clicking F12 : Configure
26) We can create multiple users in Tally activating
A) Tally Audit
B) Use Security Control
C) Both (a) and (b)
D) None of these
Answer : B
Description : We can create multiple users in Tally by activating ‘Use Security Control’.
27) ‘Allow components list details (Bill of Materials)’ option is activated for
A) Ledgers
B) Cost Category
C) Stock Items
D) Budgets
Answer : C
Description : Gateway of Tally > F12: Configure > select Accts/Inventory Info. and Set Enable component list details (Bill of Materials)? to Yes.
28) Retained Earnings is an alias of
A) Indirect Income
B) Reserve and Surplus
C) Capital Account
D) Investments
Answer : B
Description : Retained Earnings (RE) are the portion of a business’s profits that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business. It is also called Reserve and Surplus.
29) We can use Stock Journal for
A) Production and Consumption
B) Inter Godown transfer for stock
C) Both (a) and (b)
D) None of these
Answer : C
Description : A stock journal is used to transfer materials or stock from one location to another location. Stocks could even simply be shown as consumed or even only produced and without both consumption and production.
Gateway of Tally > Voucher Entry > ALT+F7 or Click on Stock Journal
30) Discount Column is available in
A) Sales Invoice
B) Purchase Invoice
C) Both (a) and (b)
D) None of these
Answer : C
Description : Discount Column is available in both Sales Invoice and Purchase Invoice.