15 thoughts on “Profit & Loss Account in Tally – With Profit Transfer to Capital Entry

    • Rishit Shah says:

      Hi, Shanty!

      Either your asset side is bigger or smaller or your liabilities side is bigger or smaller.
      Please check it and make sure the amount on both the liabilities and asset side is same.

      This way your difference between asset and liabilities will be zero and your balance sheet will be balanced.

  1. Aninda says:

    hello, I can see that there is no “Quick Setup” option in tally latest option. is there any way to activate it??

    • Rishit Shah says:

      Hi, Thomas!

      In Profit and Loss account, the sales figure does not include taxes, other expenses and discounts that you give on sales.
      They are displayed as expenses down in the profit and loss account.

      That’s why sales figure is less than what you see in the voucher.

      Good question!

  2. RAMAIAH NANJUNDA says:

    what is the entry to be passed in tally for tranferring the profit from sister concern to main concer and what is the retrospective entry to be passed in Main conern for the profit received from the sister cocern – My name is R. NANJUNDA –
    email is : nanjunda0105@gmail.com.

    • Rishit Shah says:

      Hi, Ramaiah!

      Accounting entry in tally for transferring profit from sister concern to main concern will done via a receipt voucher in tally.
      Entry will be:

      Bank A/c Dr
      To Sister Concern (under Direct Incomes)

      For profit received from sister concern – retrospective entry in tally will be done using the receipt voucher only.

      Bank A/c Dr
      To Main Concernt (under Direct Incomes)

      I am assuming that when the profit is transferred, actualy money is also transferred to the bank accounts of different concerns.

      If it is just book entry, then we have to pass a journal voucher for that in tally.

      Profit transferred from Sister concern to Main concern:

      Sister Concern A/c Dr (under Capital Account)
      To Profit from Sister Concern A/c (Under Direct Incomes)

      Similarly from Main concern to Sister concern

      Main Concern A/c Dr (under Capital Account)
      To Profit from Sister Concern A/c (under Direct Incomes)

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