Tally practice exercise: one month of accounts

22 transactions of Shanti Traders for April, to be entered in a fresh practice company. Then compare your trial balance with ours. The answers for each voucher are below, closed until you open them.

Rates here are assumed. The examples use GST at 18% (CGST 9% + SGST 9%, or IGST 18%) only to show the entries. Actual rates depend on the goods or service and change by notification. For rates and return rules see the official sites gst.gov.in and cbic-gst.gov.in, or ask your accountant.

Set-up

1. Create a company called Shanti Traders in your own state, with the financial year from 1 April, and inventory and GST switched on.
2. Create the ledgers listed in the trial balance below, each under the group shown. Mohan Paper Mart and City Book Depot are in your state; Delhi Pen House and Jaipur Stationers are in other states.
3. Create two stock items: A4 Paper (unit Ream) and Ball Pen (unit Box), with GST at the assumed 18%.
4. Set up GST with separate input and output tax ledgers.

The transactions

For each, decide the voucher type first, then enter it. Do not open the answers until you have tried.

What you should get

Trial balance as at 30 April

This table is calculated by our build program from the answer vouchers, so it is exactly what those entries produce. The three Output tax ledgers have no balance after the set-off and so do not appear.

Key figures

• Cash in hand: ₹1,17,900. Bank balance: ₹3,08,254.
• Receivable: City Book Depot ₹8,940; Jaipur Stationers ₹35,400.
• Payable: Mohan Paper Mart ₹13,100; Delhi Pen House ₹47,200.
• Input tax credit carried forward: CGST ₹360, SGST ₹360, IGST ₹1,800.
• Closing stock: 70 reams of paper at ₹250 and 20 boxes of pens at ₹400 = ₹25,500.
• Net sales: ₹73,000. Net purchases: ₹85,000.
• Gross profit: sales 73,000 + closing stock 25,500 − purchases 85,000 − carriage inward 1,500 = ₹12,000.
• Net result: gross profit 12,000 + interest 850 − indirect expenses 24,636 = a net loss of ₹11,786 for the month.

In Tally, check these in the Trial Balance, Stock Summary, Profit & Loss A/c and Balance Sheet. Stock Summary should show the closing quantities above; Tally values them at average cost, which here equals the purchase rates.

Answers, voucher by voucher

Each answer shows the voucher type and the debit and credit lines. Open one only after entering that transaction yourself.

If your figures differ

1. Find the first ledger whose balance differs from the table.
2. Open it in Tally (Alt+G, Ledger Vouchers).
3. Compare each entry with the answers that involve that ledger.
4. Correct the voucher from the ledger by pressing Enter on it.
5. Return to the Trial Balance and move to the next difference.

The usual causes are a wrong date, a reversed contra, a tax line left out of a return, a supplier payment entered as a purchase, or an interstate party set up in your own state. The lesson on common errors lists the signs of each.

Going further with the same data

• Do the bank reconciliation: assume the cheque of 24 April for ₹40,000 has not been presented by 30 April. The bank statement balance should then be ₹3,48,254.
• Open the Outstandings reports and check that the receipt and the payment are tagged against the right bills.
• Take a backup, restore it to a new folder, and confirm the trial balance is the same.
• Enter May: invent ten transactions of your own, work out the trial balance on paper first, and see whether Tally agrees with you.

Questions learners ask

Lessons

An independent learning site. Tally and TallyPrime are trademarks of Tally Solutions Private Limited. This site is not connected with, approved by or paid by Tally Solutions, and uses none of its logos, screens or course material. Keys and menu paths were checked against Tally's own help site on 12 November 2026; the software changes with each release, so if your screen differs, follow Tally's help (press Ctrl+F1). Tax treatment in the examples is for learning only: ask your accountant.