TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE
TALLYMANTRA STUDY SERIES
TOP 100 TALLYPRIME INTERVIEW QUESTIONS Clear answers, accounting examples, GST essentials and real workplace scenarios
2026 EDITION | BEGINNER TO INTERMEDIATE Seven focused sections • 100 questions with model answers For accounting students, junior accountants, job seekers and TallyPrime users
Independent educational resource This guide is for interview preparation. It is not a substitute for checking applicable GST law, your organisation’s accounting policy or the product help for your installed release.
How to use this guide Read each question out loud, give your own answer, then compare it with the model response. For practical questions, open a demo company and recreate the entry. If a scenario involves tax, permissions or period-end changes, describe the verification and approval steps as well as the entry itself. For additional accounting learning resources, visit TallyMantra.
Contents 01 Accounting Foundations • 15 questions 02 Company Setup And Masters • 15 questions 03 Vouchers And Daily Transactions • 15 questions 04 Gst And Statutory Workflows • 15 questions 05 Banking, Inventory And Reporting • 15 questions 06 Data Control, Security And Newer Features • 15 questions 07 Practical And Scenario-Based Interview Questions • 10 questions
Answering well in interviews • Start with the purpose: explain what the feature or document is for. • Give one simple example with a ledger, voucher or report. • Mention controls: reconciliation, source documents, approval and review. • Do not guess legal thresholds or features; say you will verify the current rule or release.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE
01 Accounting Foundations Interview questions and concise model answers 01. What is TallyPrime? TallyPrime is business-management software used to record transactions and manage accounting, inventory, taxation, banking and financial reports. In an interview, explain the business task you have personally performed rather than just listing modules.
02. What is the difference between accounting and bookkeeping? Bookkeeping records day-to-day financial transactions. Accounting builds on those records to classify, analyse, reconcile and report financial performance and position.
03. What is a ledger? A ledger is an account for a particular party, asset, liability, income or expense. For example, Office Rent tracks rent expense and ABC Traders tracks the customer or supplier balance.
04. What is a group in TallyPrime? A group classifies ledgers for reporting. Placing Bank of India under Bank Accounts helps TallyPrime show that balance in the correct category of the Balance Sheet.
05. What are debit and credit? They are the two sides of double-entry accounting. Typically, assets and expenses increase with debits, while liabilities, capital and income increase with credits; the effect depends on the account type.
06. What is the accounting equation? Assets = Liabilities + Equity. Every correctly recorded transaction preserves this relationship, even when multiple accounts are affected.
07. What is a journal entry? A journal entry records the debit and credit effects of a transaction. Example: office rent paid by bank - debit Rent Expense and credit Bank.
08. What is a trial balance? A trial balance lists ledger balances and checks whether total debits equal total credits. Agreement does not prove that every transaction is correctly classified or complete.
09. What is a Balance Sheet? It reports assets, liabilities and equity at a particular date. It helps assess liquidity, borrowing and the financial position of a business.
10. What is a Profit & Loss statement? It summarises income and expenses over a period and shows profit or loss. Revenue less relevant expenses gives the period's result, subject to accounting adjustments.
11. What is the difference between capital and drawings? Capital is the owner's investment in the business. Drawings are amounts or goods withdrawn by the proprietor for personal use; they are not normal business expenses.
12. What is the difference between a debtor and a creditor? A debtor generally owes money to the business, while a creditor is generally owed money by the business. In TallyPrime, these are commonly organised under Sundry Debtors and Sundry Creditors.
13. What is an outstanding expense? An expense incurred but not yet paid, such as unpaid March salary. At period-end it is normally recorded as an expense and a liability.
14. What is a prepaid expense? An amount paid for a future period, such as an annual insurance premium. The unexpired portion is typically treated as an asset until consumed.
15. What is depreciation? Depreciation allocates the cost of a depreciable asset over its useful life. A basic entry debits Depreciation Expense and credits Accumulated Depreciation or the asset account, according to policy.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 16. How do you create a company in TallyPrime? Open Create Company, enter business details, choose the financial year and books-beginning date, set applicable security or currency details and save. Confirm statutory information before recording live entries.
17. What is the financial year versus books-beginning date? Financial year sets the reporting period; books-beginning date is when accounting entries begin in the company data. The two dates may differ when migrating accounts partway through a year.
18. What is a ledger master? It is the saved definition of an account, including name, group and relevant tax or bill-wise settings. Transactions use these masters consistently.
19. Why is correct ledger grouping important? Grouping controls how amounts appear in financial statements and reports. A wrongly grouped loan or expense can distort presentation even when the voucher balances.
20. What are opening balances? They are balances brought forward when books begin or are migrated. Verify these against the signed closing trial balance of the preceding system or year.
21. How do you correct a ledger in the wrong group? Open the ledger in Alter mode, change the group and review affected reports. Check tax settings and past vouchers before making large corrections.
22. What are stock items? Stock items represent goods tracked in inventory. Their masters can include unit of measurement, group, GST classification and other applicable details.
23. What are units of measurement? Units define how quantities are recorded, such as Nos, Kg or Ltr. Consistent units are essential to reliable stock quantities and rates.
24. What are stock groups and stock categories? Stock groups organise products hierarchically for reporting; stock categories allow another way to classify items across groups. Use only structures that suit the business reporting requirement.
25. What is a godown or location? It identifies where inventory is stored, such as Main Warehouse or Retail Shop. Location-wise stock tracking helps with transfers and physical checks.
26. How do you enable a required feature? Use the relevant company feature or configuration screens and apply the required setting. Exact menu labels vary by product release, so confirm the installed version.
27. What is bill-wise accounting? Bill-wise tracking connects receipts and payments to particular invoices, advances or outstanding references. It makes ageing and payment follow-up more reliable.
28. What is a cost centre? A cost centre allows expenses or income to be allocated to a department, branch, project or team for management reporting.
29. What is a price list? A price list stores rates for products or classes of customers where configured. It supports consistent pricing but must be reviewed as prices change.
30. What should you verify before using a newly created company? Check company name, state, financial year, opening balances, GST details, ledger groups, user access, voucher numbering and the first sample transaction/report.
03 Vouchers And Daily Transactions Interview questions and concise model answers 31. What is a voucher in TallyPrime? A voucher is the form used to record a business transaction, such as a sale, payment or journal adjustment. Correct voucher type and supporting documents are both important.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 32. Which voucher is used for a cash sale? Generally a Sales voucher, recording the sale and its cash settlement as appropriate. The exact entry mode depends on the configured sales workflow.
33. Which voucher is used to purchase goods on credit? A Purchase voucher, with the supplier as a creditor and applicable purchase, inventory and tax details. Match it to the supplier invoice.
34. When is a Payment voucher used? For money paid out, such as rent paid through bank or settlement of a supplier bill. Reconcile the payment reference with the bank statement.
35. When is a Receipt voucher used? For money received, such as collecting a customer outstanding invoice. Allocate the amount to the correct bill reference where bill-wise tracking is enabled.
36. What is a Contra voucher? It records transfers between cash and bank accounts or between bank accounts, such as cash deposited into a bank, without treating it as income or expense.
37. When is a Journal voucher used? For non-cash adjustments such as depreciation, provisions or reclassifications, depending on company process. Avoid using it to bypass proper sales/purchase documentation.
38. What is a Credit Note? Typically it records a reduction in a customer's receivable, for example for a sales return or agreed sales adjustment. Tax treatment depends on the underlying transaction.
39. What is a Debit Note? Typically it records a purchase return or supplier adjustment from the buyer's perspective. Verify documentary and GST implications.
40. What is a sales return? Goods returned by a customer after a sale. Record the return with the relevant inventory and tax effects, usually through a credit note or configured return process.
41. What is a purchase return? Goods returned to a supplier after a purchase. Record the return and update the supplier balance and stock as applicable.
42. What is a memorandum voucher? A provisional voucher that does not affect regular books until converted or appropriately recorded. It can be useful for tentative transactions.
43. What is a reversing journal? An adjustment designed to reverse on a specified later date, often used for period-specific accounting. Confirm the company's reporting and reversal policy.
44. How do you prevent duplicate voucher numbers? Choose an appropriate numbering method and control the entry process. Review duplicates, especially after imports or multiuser activity, before finalising returns.
45. How would you rectify a wrongly posted customer receipt? Find the receipt, inspect its source and bill allocation, correct the party or references under authorised controls, and recheck customer outstanding and bank reconciliation.
04 Gst And Statutory Workflows Interview questions and concise model answers 46. What is GST in simple terms? Goods and Services Tax is an indirect tax on taxable supplies in India. The tax type, place of supply, eligibility and rate depend on applicable law and transaction facts.
47. What is GSTIN? A GST Identification Number is the registration identifier assigned to a registered taxpayer. Validate the counterparty's GST details as part of invoice controls.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 48. When are CGST and SGST generally used? For an intra-state taxable supply, CGST and the applicable State GST are generally charged. Confirm the place-of-supply rules and exceptions.
49. When is IGST generally used? For an inter-state taxable supply, Integrated GST is generally charged. Certain special cases require specific treatment under GST law.
50. What is HSN/SAC? HSN classifies goods and SAC classifies services for GST reporting. The required level of detail depends on current rules and turnover thresholds.
51. What is input tax credit (ITC)? ITC is credit of eligible GST paid on business inputs or input services, subject to statutory conditions. A purchase entry alone does not establish eligibility.
52. What is GSTR-1? It is a statement of outward supplies filed by applicable registered taxpayers. Compare invoice-level data, credit/debit notes and amendments before submission.
53. What is GSTR-3B? It is a summary return for declaring tax liabilities and relevant credits/payment information. Reconcile the figures before filing; a report in TallyPrime is not the same as a filed return.
54. What is GSTR-2B? A system-generated inward-supply statement used as an input for ITC review. Compare it with purchase books and investigate mismatches or ineligible credits.
55. What is an e-invoice? For taxpayers and transactions within applicable rules, an e-invoice involves reporting prescribed invoice details to the Invoice Registration Portal and obtaining an IRN. Applicability thresholds can change.
56. What is an e-Way Bill? An electronic document used for movement of goods in cases prescribed by law. Applicability depends on consignment value and other rules/exemptions.
57. How do you handle a GST mismatch? Identify the source invoice, compare GSTIN, date, taxable value, rate and place of supply, correct the underlying books if needed, and follow the appropriate amendment or reconciliation process.
58. What is reverse charge mechanism (RCM)? Under RCM, liability to pay GST shifts to the recipient for specified supplies or scenarios. Check the law before creating related liability and ITC entries.
59. What is the difference between zero-rated and exempt supplies? Zero-rated supplies include specified export/SEZ supplies with distinct refund/credit treatment; exempt supplies are not charged GST and have different ITC consequences. They are not interchangeable.
60. How would you check GST readiness before filing? Reconcile outward supplies, notes and tax ledgers; review purchase ITC against relevant portal data; resolve exceptions; confirm period, GSTIN and liabilities; and retain supporting working papers.
05 Banking, Inventory And Reporting Interview questions and concise model answers 61. What is bank reconciliation? Matching entries in the cash/bank ledger with the bank statement and explaining timing differences or mistakes. A reconciled balance is more reliable than an unchecked ledger.
62. What causes reconciliation differences? Unpresented cheques, deposits in transit, bank charges, interest, duplicate entries, wrong dates or omitted transactions. Investigate rather than force a balancing entry.
63. How do you record bank charges? Post the bank charge to the relevant expense ledger and credit the bank ledger, with tax treatment considered where supported by documents.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 64. What is a cash book? It summarises cash receipts and payments. A negative cash balance usually indicates an entry, dating or classification issue that needs review.
65. What is an ageing analysis? It shows outstanding receivables or payables by age brackets. It helps prioritise customer collections and supplier payment planning.
66. What is a stock summary? A report showing stock quantities, values and movement according to configured inventory methods. Compare it with physical counts and purchase/sales documents.
67. What is a stock journal? A voucher used for inventory adjustments or transfers, including some production or consumption workflows. Use proper supporting records and valuation controls.
68. What is reorder level? A threshold used to indicate when stock should be replenished. Set it based on lead times, sales pattern and safety stock needs.
69. What is a physical stock voucher? A record of counted stock used to adjust books for verified differences. Any variance should be approved and investigated before posting.
70. What is gross profit? Sales less cost of goods sold, using the business's chosen valuation and accounting policies. It differs from net profit because overheads and other costs remain.
71. What is MIS reporting? Management Information System reports turn transaction data into useful measures such as sales, collections, stock, margins and branch performance.
72. Why compare monthly P&L results? Monthly comparison helps spot unexpected cost growth, revenue changes or classification errors. Consider seasonality and one-off items before drawing conclusions.
73. What is a cash flow statement? It explains cash inflows and outflows, commonly across operating, investing and financing activities. Profit does not necessarily equal cash generated.
74. What is a receivables report? It shows customers who owe money, bill-level dues and ageing where configured. Review overdue balances and disputed invoices before collection action.
75. How would you investigate negative stock? Identify item, location and period; check entry chronology, units, sales before purchases, transfers and missing opening balances; correct the source entries with approval.
06 Data Control, Security And Newer Features Interview questions and concise model answers 76. Why are backups necessary? Backups protect company books against corruption, device failure and accidental loss. Maintain tested copies at appropriate intervals and control access to them.
77. What is the difference between backup and restore? Backup creates a recoverable copy of data; restore brings that copy back into use. Test a restore on a separate environment before relying on a backup policy.
78. How do you manage user permissions? Create named users or roles with only the access needed for their job, and periodically review privileges. Restrict alteration, deletion and sensitive reports as required.
79. What is an audit trail or Edit Log? It provides a record of changes to relevant records, helping reviewers investigate who changed what and when. Specific behaviour depends on product/edition and configuration.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 80. Why should you avoid sharing administrator passwords? Shared credentials remove accountability and increase the risk of unauthorised changes. Use individual access and strong authentication practices wherever supported.
81. What is data migration? Moving masters, balances and transactions from an old system or version to a new setup. Compare counts, opening balances, trial balances and sample vouchers after migration.
82. What checks should follow a data import? Check record counts, duplicates, master mapping, dates, voucher numbers, tax codes, trial balance totals and exception reports before approving imported data.
83. What is SmartFind in TallyPrime 7.0? SmartFind is a search capability intended to help locate information across relevant masters and transactions more quickly. It was highlighted in TallyPrime Release 7.0.
84. What is scheduled Auto Backup in TallyPrime 7.0? Release 7.0 introduced scheduled backup options to local storage or TallyDrive, subject to product configuration and eligibility. Still maintain a documented recovery process.
85. What is JSON data exchange in TallyPrime 7.0? Release 7.0 added JSON import/export support for relevant data-exchange workflows. Validate mappings and transactions before adopting automated integrations.
86. What is connected banking? A supported integration workflow that connects certain banking activities with TallyPrime. Availability and features vary by bank, release and setup.
87. How do you identify a suspicious accounting change? Review supporting documents, voucher history/audit records where available, user access and report movements; escalate exceptions rather than silently changing records.
88. What is the correct response to a corrupted company data file? Stop posting into questionable data, preserve copies and logs, follow official recovery steps or support channels, and restore only from validated backups where necessary.
89. What should an accountant document after correcting an error? Record the issue, source evidence, adjustment or voucher reference, reviewer approval and effect on reports or returns. This creates a clear audit trail.
90. Why is version awareness important in an interview? Menu locations, supported features and statutory workflows change between releases. State which TallyPrime release you know and verify release-specific steps before asserting them.
07 Practical And Scenario-Based Interview Questions Interview questions and concise model answers 91. A customer pays Rs 20,000 against an old invoice. What do you do? Verify bank receipt and customer identity, record a Receipt voucher against the correct customer ledger, allocate it to the outstanding invoice and check the remaining bill balance.
92. Rent of Rs 12,000 is paid from the bank. What is the entry? Debit Rent Expense Rs 12,000 and credit Bank Rs 12,000, subject to any separately applicable taxes or deductions based on facts.
93. Goods worth Rs 50,000 are purchased on credit. What is the basic entry? Debit Purchases or relevant Inventory Rs 50,000 and credit Supplier Rs 50,000, excluding additional tax details for this simplified example.
94. A supplier invoice appears twice. What do you check? Compare invoice number, supplier GSTIN, date, amount and supporting document, confirm whether a duplicate voucher exists, reverse or correct the duplicate with approval and reassess GST/stock impact.
95. A customer balance is unexpectedly negative. How do you investigate? Inspect receipts, advances, credit notes, bill allocations and opening balances; determine whether it is a genuine advance or a posting error before changing the ledger.
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TALLYPRIME • CAREER & ACCOUNTING STUDY GUIDE 96. Bank statement shows a fee not in books. What is the process? Verify the statement entry, obtain supporting bank advice, post the charge to the right expense ledger and reconcile the transaction without adjusting unrelated balances.
97. Physical stock is 94 units but books show 100. What do you do? Recount and verify cut-off documents, investigate the six-unit shortage, obtain approval for adjustment and post a physical stock correction using the applicable valuation policy.
98. A GST invoice has the wrong GSTIN. How do you respond? Check the original document and portal status, determine whether the invoice can be corrected or needs a statutory amendment, update records with approval and retain the change trail.
99. The trial balance agrees but profit looks too high. What might be wrong? Look for omitted expenses, incorrect income recognition, stock valuation issues, capitalised costs that should be expensed and entries posted into wrong groups. A balanced trial balance can contain errors.
100. An employee requests deletion of an old voucher. What should you do? Ask for the business reason, check supporting evidence and period/filing status, obtain required approval and prefer a documented correction or reversal consistent with policy over untracked deletion.
Quick revision: 10 things to demonstrate □ Accurate ledger and voucher selection □ Ability to match entries with source documents □ Debits, credits and financial statement impact □ GST invoice checks and reconciliation discipline □ Sales and purchase returns □ Bank reconciliation and bill-wise allocation □ Inventory movement and physical stock variance □ Period-end adjustments and review □ User permissions, backup and audit controls □ Comfort explaining the version you actually use
One-minute interview answer framework Define the concept → give one relevant business example → explain the entry or workflow → describe the validation step. This structure is often more persuasive than repeating memorised menu paths.
About this resource Prepared as an independent educational study aid for learners and accounting professionals. Product terms are used for identification; this is not an official Tally Solutions publication.
Editorial reference Feature and workflow descriptions were checked against Tally Solutions product-help material, including TallyPrime releasewise features, Release 7.0 notes, voucher types and GST reporting guidance. Verify current statutory requirements and software behaviour when using this guide in practice.
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