5 Statement of Accounts

This chapter explains various statement of accounts in Tally Prime.

5.1 Balance Sheet

5.1.1 How to View the Balance Sheet?

  • Open Tally Prime.
  • From Gateway of Tally, go to:
    Reports → Balance Sheet
  • Tally displays:
    • Sources of Funds (Capital, Loans, Liabilities)
    • Application of Funds (Fixed Assets, Current Assets, Investments)

5.1.2 Adjust Period

  • Press F2: Period → Set desired dates (e.g., 01-04-2024 to 31-03-2025).

5.1.3 Example

If the company has:

Account Amount (₹)
Capital 5,00,000
Cash in Hand 60,000
Stock-in-Hand 2,50,000
Sundry Creditors 1,20,000

The Balance Sheet will show:

Category Amount (₹)
Capital & Liabilities 6,20,000
Assets 6,20,000

5.2 Profit & Loss Account (P&L)

5.2.1 View P&L Statement

  • Go to: Gateway of Tally → Profit & Loss A/c
  • P&L shows:
    • Indirect Expenses / Direct Expenses
    • Sales
    • Indirect Income

5.2.2 Example

Entries done:

Entry Amount (₹)
Sales 2,50,000
Purchase 1,50,000
Rent Expense 30,000

P&L will show:

Result Amount (₹)
Gross Profit 1,00,000
Net Profit 70,000

5.3 Trial Balance

5.3.1 How to View

  • Go to Gateway of Tally → Display More Reports → Trial Balance.
  • Displays all ledger balances.
  • Debit = Credit for accuracy.

5.3.2 Example

Ledger Dr (₹) Cr (₹)
Cash 60,000 —
Sales — 2,50,000
Capital — 5,00,000

Total Dr = Total Cr → balanced.

5.4 Sales Register

5.4.1 Steps

  • Go to Display More Reports → Account Books → Sales Register.
  • Select the period using F2.
  • Tally shows all Sales vouchers month-wise.

5.4.2 Example

A sale of ₹10,000 to customer ABC on 05-05-2025 will appear under May.

5.5 Purchase Register

5.5.1 Steps

  • Go to Display More Reports → Account Books → Purchase Register.
  • Choose the date range.
  • Shows all purchase vouchers.

5.5.2 Example

Purchase from XYZ Suppliers amount ₹15,000 recorded on 10-05-2025 will appear in May.

5.6 Cash Book

5.6.1 Steps

  • Go to Display More Reports → Cash/Bank Books → Cash Book.
  • Select the Cash ledger (e.g., Cash-in-Hand).

5.6.2 Example

Cash transactions:
- Receipt: ₹5,000
- Payment: ₹2,500

Cash Book shows:

Description Amount (₹)
Opening 25,000
Closing 27,500

5.7 Bank Book

5.7.1 Steps

  • Go to Display More Reports → Cash/Bank Books → Bank Book.
  • Select bank ledger (e.g., HDFC Bank).

5.7.2 Example

Transactions:

Description Amount (₹)
Cheque Deposit 50,000
Bank Charges 250

Closing balance updates accordingly.

5.8 Ledger Statement

5.8.1 Steps

  • Go to Gateway of Tally → Display More Reports → Account Books → Ledger.
  • Choose any ledger (example: Rent Expense).

5.8.2 Example

Rent Ledger:

Date Debit (₹)
01-05-2025 10,000
01-06-2025 10,000

Closing balance = ₹20,000 (Dr).

5.9 Sales vs Purchase Register Example Summary

Statement What It Shows Shortcut Path
Sales Register All sales invoices Display → Account Books
Purchase Register All purchase vouchers Display → Account Books
Cash Book Cash receipts/payments Cash/Bank Books
Bank Book Bank receipts/payments Cash/Bank Books

5.10 Common Buttons & Shortcuts

Action Shortcut
Change Period F2
Export Report Alt + E
Print Report Ctrl + P
Configure Report F12
Detailed/Condensed View Alt + F1

5.11 Practical Example — Complete Flow

5.11.1 Transactions Entered

Transaction Amount (₹)
Sales 20,000
Purchase 12,000
Cash Received 20,000
Rent Expense 5,000
Bank Withdrawal 10,000

5.11.2 Result in Reports

  • Sales Register → Shows ₹20,000
  • Purchase Register → Shows ₹12,000
  • Cash Book → Opening +₹20,000 minus withdrawals
  • Bank Book → Opening minus ₹10,000
  • P&L Account → Net Profit = Sales − Purchase − Rent
  • Balance Sheet → Asset/Liability updated

5.12 Summary

  • Balance Sheet → Financial position
  • P&L Account → Profitability
  • Trial Balance → Accuracy check
  • Sales/Purchase Register → Transaction details
  • Cash/Bank Book → Day-to-day cash/bank activities
  • Ledgers → Individual account performance

5.13 Illustration

Name of the Account Debit (Rs.) Credit (Rs.)
Drawings 45,000
Goodwill 90,000
Buildings 60,000
Machinery 40,000
Bills Receivable 6,000
Opening Stock 40,000
Purchase 51,000
Wages 26,000
Carriage Outward 500
Carriage Inward 1,000
Salary 35,000
Rent 3,000
Discount 1,100
Repairs 2,300
Bank 25,000
Cash 1,600
Debtors 45,000
Bad Debts 1,200
Sales Return 2,000
Furniture 6,000
Advertisement 3,500
General Expenses 400
Capital 1,60,000
Bills Payable 35,000
Creditors 70,000
Purchase Return 2,600
Sales 2,18,000
Total 4,85,600 4,85,600

Adjustments

  1. Closing stock: Rs. 35,000
  2. Provide depreciation @10% on:
    • Machinery
    • Furniture
  3. Outstanding wages: Rs. 1,500
  4. Prepaid advertisement: Rs. 500
  5. Create 5% provision for doubtful debts on debtors