Today, we are going to understand trial balance in Tally ERP 9.
We will also see trial balance difference in tally, trial balance format, configuration in trial balance and much more.
Basically, we are going to learn everything related to trial balance in tally and I will teach you with 100% clarity.
What you will learn in this post
- How to check or Display Trial Balance in Tally
- Configuration Steps in Tally for Trial Balance
- How to Manage Trial Balance in Tally
- Trial Balance in Tally ERP 9 in Hindi
- What is Trial Balance Difference in Tally
- How Export Trial Balance from Tally in PDF & Excel formats
Check or Display Trial Balance in Tally ERP 9 – in 2 Steps
Checking trial balance or displaying trial balance in tally is very simple. You just need to follow 2 simple steps.
- From Gateway of Tally, go to Display
- Then select Trial Balance.
You will see a trial balance. You can see it in the picture below.
Trial Balance has all closing balances and therefore it looks a lot like a balance sheet but it is not actually a balance sheet.
Apart from the balance sheet data, trial balance also includes the balances of Profit and Loss account from tally.
Now, let’s see some of the configuration options for trial balance in tally.
Configuration Steps in Tally for Trial Balance
Configuration steps are used to see the trial balance in a customized way with the options available in tally.
In simple words, you can see trial balance with the help of some options according to your way.
In the above picture, you can see the configuration steps for trial balance in tally.
Let’s look at each of the options step by step.
Show Opening Balances
If you enable this option, you can see the opening balances as well with the regular closing balances in trial balance.
This is how it will look like in tally when opening balances are enabled for trial balance in tally.
You can see the column of opening balances and closing balances side by side.
Now, let us look at the next option.
Show Transactions without Nett Transactions
If you enable this option, you can see the debit and credit totals of all the transactions that happened during the year or the selected period.
You can see it in the picture below.
Can you spot the difference?
There is a complete trail.
On the left hand side, there is opening balance. Then, there are debit and credit balances of the transactions that happened during the year.
And, lastly, there is a closing balance.
So, it is like complete accounting balances present in front of you.
In cash account, there is a credit of ₹3,80,000 which tells us that this much amount of cash has been spent during the year for business purposes.
Similarly, you can just look at the balances and know what is the status of a particular account or ledger in tally and take swift business decisions.
Show Closing Balances
The option of showing closing balances in trial balance in tally is already enabled by default because that is what the actual trial balance is.
In the image below, you can see the closing balances of all the accounts.
All the closing trial balances are transferred from the previous year to the new year, except the profit and loss balances in tally.
Let us look at the next option which is about percentages.
When you enable this option, you will see the percentage of all the balances as against the total amount.
Look at the picture below to see what it is.
With the help of the percentages, we can easily see which account has the maximum impact on the trial balance.
And on the basis of that, we can take appropriate measures in our business.
For example, debit balance of Fixed Assets in the above picture are only 0.31% which is a good thing as very low capital is locked in for the business.
But, it can also count as red flag since, in any business, at least 5-10% of the capital is invested in fixed assets.
So, on the basis of the above percentage, we can further investigate to see what the matter is.
These were the major configuration options that are available in a trial balance in tally.
Now, let us look at some of the minor configuration options in tally.
Minor Configuration Options for Trial Balance in Tally
First one is the appearance of names in which you can select Name Only or with Alias.
Second option is scale factor for values which basically means whether you want to see the amounts in crores, lakhs, millions etc.
Third option is to show base currency symbol. This is used if you want to see ₹ in front of every amount in the trial balance.
I usually turn it off because there are too many amounts and I know I am dealing in Rupees. However, if you are dealing in foreign currency or multi-currency in tally as well, this option might be useful to you.
Next is sorting method. This option can be used to sort the accounts on the basis of alphabetical order (from A to Z) or on the basis of amounts (increasing or decreasing).
Last option is about expanding all the levels in detailed format. If this option is set to Yes, you can see all the accounts in a detailed format.
It will look something like in the picture below.
In the above image, look at all the accounts or ledgers. You will see everything expanded in a detailed way.
Now, we will look at how to manage trial balance in tally.
How to Manage Trial Balance in Tally ERP 9
Trial balance like any other report in tally, is prepared automatically.
But, still you can manage it with certain options using which you can see the information in trial balance in different ways.
We will look at different options one by one.
First option is ledger wise or you can press F5 which is a tally shortcut for the same option.
As soon as you press F5, you will see that the trial balance will change into a completely different format.
You can see it in the picture below.
Every single balance is turned into each individual ledger.
This is the way, we used to prepare trial balance in school or college, right?
Looking at all the balances in this way gives us a complete look at every ledger and how it affects the accounts in totality.
You can also print the trial balance in this way by pressing ALT + P.
Next, what if you want to see the trial balance monthly and compare it side by side with different trial balances.
That is also possible.
Look at the dates in the picture below which I have drawn a red line.
All the balances in each column are separated month wise and we can easily compare them to see what are the differences in between them and what is the cause of them.
You can notice the words “8 more…” in the top right corner which means there is a comparison of 8 more months.
You can see it if you just press the right arrow key on the keyboard.
Another option to see or manage the trial balance is to have budget inside the trial balance in tally.
There is an option called Budget Variance. You can use by pressing ALT + B or simply clicking on the button.
For using this option, you have to know to create budgets in tally.
Once you press ALT + B, and press Enter you will see the budget along with actuals and budget variances inside the trial balance in tally.
How cool is that? Here is how it looks like.
Once you have the budget set in tally, it will calculate the differences and will display it like in the image above.
For example, budget for the sales was ₹5,00,000 but actually, it was way above the budgeted figures.
It was ₹9,52,985.72 which is 190.60% of ₹5,00,000 which you can see in the above image.
The difference is called budget variance. It can be positive or negative.
These were the ways you can manage trial balance in tally. Now we will look at something very interesting.
Trial Balance in Tally ERP 9 in Hindi
You can also see the trial balance in Hindi or many more languages in Tally. Here is how it looks like.
Did you see the ledger names in Hindi?
I just translated the trial balance from English to Hindi in Tally. How can you do it?
Press ALT + G, while you are in trial balance in tally. You will see the language options in the menu called – List of Languages.
Select the language that you want, in our case, it is Hindi. Then, press Enter.
And, you will see the trial balance converted in Hindi.
Let us move ahead and see one big problem that happens to many people which is the difference in trial balance in tally.
What is Trial Balance Difference in Tally
Look at the image above. There is a difference of ₹3,00,000.
If you are also getting this difference than don’t worry, I am here to solve your problem for now and forever.
Do you remember that earlier in this post, I said trial balance is the combination of the balances of balance sheet and profit and loss account?
Therefore, the difference that arises in the trial balance is also because there will be a difference in either the balance sheet or profit and loss account.
There can be no difference in profit and loss account because such a difference would be then converted either into a profit or loss in tally.
So, we need to check the balance sheet here.
The same difference was in trial balance is there in the balance sheet. I have underlined it in red. Therefore it is safe to say that it is the same difference.
This is the difference in opening balances and so we need to check the opening balance sheet as on 01-04-2019 or the beginning of the year.
After seeing the opening balance sheet, you will have to check the balance sheet – ledger by ledger to find out the difference.
In this case, I had myself reduced the opening balance of capital from the TallySchool’s ledger to explain you the difference in trial balance.
So, I will alter it and increase the opening balance from ₹2,00,000 to ₹5,00,000.
Now, if I see the Balance Sheet as on 31-03-2020 – closing balance sheet, the opening balance difference has gone.
Now, let us check the Trial Balance and if there is any difference in it.
You will see that the difference of ₹3,00,000 has vanished from the Trial Balance as well.
This is how we remove the difference from the trial balance.
An important thing to note here is that any difference in trial balance is not the result of trial balance but it is actually coming from somewhere else.
So, you have to find the source of it and then remove the difference from there. Because of this, the difference from trial balance will be ultimately removed.
Now, we will look at exporting trial balance from tally in different formats including PDF and Excel formats.
How Export Trial Balance from Tally in PDF & Excel formats – 2 Steps
Exporting data from tally including trial balance is very easy. There are just 2 steps.
- From Trial Balance, press ALT + E.
- Select the format in which you want to export the trial balance. It can be in PDF, Excel, JPEG, HTML and XML formats.
This is how it looks like when you have exported the trial balance in PDF format.
The same way you can export the trial balance in Excel format as well. It will look something like this.
I have exported the trial balance with colours from Tally. That’s why you are seeing cream colour of tally even in Excel.
Video – Trial Balance
The video will be uploaded soon.
In this post, I have explained everything that is required to be learnt in trial balance in tally.
Still, tally is like excel. You can mould it in any way you want and therefore there are unlimited possibilities in tally.
So, if you feel that I have missed something about trial balance, please comment down below and I will be happy to help you out.