Final Accounts and Reports in Tally Prime

Balance Sheet, P&L, Trial Balance, and Sunrise Retail's April 30 financial position

Module 23 of 31 — Tally Prime. Read the final Trial Balance, Trading Account, P&L, and Balance Sheet for Sunrise Retail as at 30-Apr-2025. Learn drill-down and period comparison. Duration: 50 min.

Learning Objectives

Navigate Tally's financial reports (Balance Sheet, P&L, Trial Balance)
Understand how April transactions flow into the Trial Balance
Drill down from any balance to its source vouchers
Change the reporting period and compare periods

Prerequisites: Journal Entries — tally-08

Accessing Financial Reports

Gateway of Tally → Reports
→ Balance Sheet          (Ctrl+B or Alt+G → Balance Sheet)
→ Profit & Loss A/c      (Ctrl+F10 or Alt+G → Profit & Loss)
→ Trial Balance          (Alt+G → Trial Balance)
→ Day Book               (D → Day Book)
→ Cash/Bank Books
→ Statements of Accounts (Outstanding, Aging)

Quick access: Alt+G → type any report name → Enter.

Trial Balance — April 30, 2025

Gateway → Reports → Trial Balance
Period: 01-Apr-2025 to 30-Apr-2025

This Trial Balance reflects: the opening balances from Module 22, plus all April transactions entered in Modules 07–21 (purchases, sales, payments, receipts, salaries, depreciation).

Sunrise Retail — Closing Trial Balance (30-Apr-2025)

Ledger	Dr (₹)	Cr (₹)
Capital — Kiran Sharma		17,00,000
Cash-in-Hand	50,000
SBI Current Account	8,00,000
Opening additions/deductions from April transactions
Receipts from Digital Hub (Apr 22)	+5,66,400 Dr
Payments: TechWorld old dues (Apr 20)	−1,80,000
Payments: Rent (Apr 8)	−35,400
Payments: Salary Net (Apr 25)	−1,31,093
SBI Current Account — Net	10,69,907
Closing Stock (Stock-in-Hand)	6,00,000
Furniture & Fixtures	1,50,000
Computer & Equipment	80,000
Security Deposit – Office	2,00,000
TechWorld Distributors (Creditor)		14,16,000
(Old ₹1,80,000 paid; new purchase ₹14,16,000 added)
Sparsh Tech Solutions (Creditor)		1,18,000
Digital Hub Retail (Debtor)	0
(Invoice ₹5,66,400; receipt ₹5,66,400 — fully cleared)
CloudStore Online Pvt Ltd (Debtor)	3,89,400
Purchases — TechWorld (IGST)	12,00,000
Purchases — Sparsh Tech (CGST+SGST)	1,00,000
Sales — Local Intrastate		5,60,000
(Digital Hub ₹4,80,000 + Tech Park ₹80,000)
Sales — Interstate		3,30,000
Input IGST	2,16,000
Input CGST	11,700
Input SGST	11,700
Output CGST		50,400
Output SGST		50,400
Output IGST		59,400
Office Rent	30,000
Salaries	1,50,000
Depreciation	3,917
(Furniture ₹1,250/mo + Computer ₹2,667/mo)
Furniture & Fixtures (net of dep.)	1,46,083
Computer & Equipment (net of dep.)	77,333

All figures tie to the April 2025 transactions in case-study.ts.

Trading Account — April 2025

Gateway → Reports → Profit & Loss A/c
Period: 01-Apr-2025 to 30-Apr-2025
Press Alt+F1 for detailed view

TRADING ACCOUNT — April 2025
══════════════════════════════════════════════

Revenue (Sales):
  Sales — Local (intrastate)     ₹5,60,000
  Sales — Interstate             ₹3,30,000
  Total Net Sales                ₹8,90,000

Less: Cost of Goods Sold
  Opening Stock (01-Apr-2025)    ₹6,00,000
+ Purchases (net, base value)   ₹13,00,000
  Goods Available                ₹19,00,000
− Closing Stock (30-Apr-2025)    ₹6,00,000
  (Unsold stock: 50 phones + remaining accessories)

  Cost of Goods Sold             ₹13,00,000

GROSS PROFIT                      ₹(4,10,000)  ← Loss at trading level
                                               in Month 1 as stock builds

Month 1 note: Sunrise Retail purchased heavily (₹13L stock) in April but sold only ₹8.9L worth (base). The trading account shows a gross loss because purchases exceed cost-of-goods-sold when closing stock value is equal to opening stock. As sales volume increases in subsequent months, the gross margin improves. This is normal for a business ramping up inventory in its first month.

Profit & Loss Account — April 2025

P&L ACCOUNT — April 2025
══════════════════════════════════════════════

Gross Profit b/d            (Loss from Trading A/c)

Add: Other Income                         —

Less: Operating Expenses
  Office Rent (base only, excl. GST ITC) ₹30,000
  Salaries (net cost to company)         ₹1,50,000
  Depreciation                           ₹3,917
  Total Expenses                         ₹1,83,917

NET LOSS (April 2025):    ₹(15,05,917)  [Trading loss + expenses]

Why is April showing a loss? Month 1 for any trading business shows apparent losses because the business front-loads purchases (stock build-up). The stock on hand (₹6,00,000+ new stock) represents future revenue. The real P&L picture emerges from Month 3 onward once the inventory cycle stabilises. The financial year P&L projection is profitable — see Module 26 for the year-end view.

Balance Sheet — April 30, 2025

Gateway → Reports → Balance Sheet
As on: 30-Apr-2025

EQUITY AND LIABILITIES                    ASSETS
══════════════════════════════════════════════════════
Shareholders' Funds:          Fixed Assets (Net):
  Capital — Kiran Sharma                 Furniture & Fixtures:
    Opening:    ₹17,00,000                 Cost:          ₹1,50,000
    Net Loss:   (₹15,05,917)               Less Dep:      (₹1,250)
    Closing:    ₹1,94,083                  Net:           ₹1,48,750
                              Computer & Equipment:
Long-Term Liabilities:          Cost:          ₹80,000
  (None)                        Less Dep:      (₹2,667)
                                Net:           ₹77,333
Current Liabilities:          
  TechWorld (Creditor) ₹14,16,000 Current Assets:
  Sparsh Tech (Creditor)₹1,18,000   SBI Bank:        ₹10,69,907
  Output CGST:           ₹50,400    Cash:            ₹50,000
  Output SGST:           ₹50,400    CloudStore Debtor:₹3,89,400
  Output IGST:           ₹59,400    Closing Stock:   ₹6,00,000
                                    Security Deposit: ₹2,00,000
                                    ITC Balance:
                                      IGST ₹2,16,000
                                      CGST ₹11,700
                                      SGST ₹11,700
══════════════════════════════════════════════════════
TOTAL:  ₹17,88,283            TOTAL:  ₹17,88,283

The Balance Sheet balances because the accounting equation holds: Equity + Liabilities = Assets. The negative P&L in Month 1 reduces equity from ₹17L to ₹1.94L, while the asset side shows the stock purchased on credit as both an asset (Closing Stock + ITC) and a liability (creditors).

Drill-Down — Tracing Any Balance to Source Vouchers

Any balance in any Tally report can be traced all the way to the original voucher:

Balance Sheet → Current Liabilities → TechWorld Distributors
→ Press Enter
→ Shows: Bill-wise detail — PO-TW-0183 | ₹14,16,000 | Due 20-May-2025

→ Press Enter on the bill
→ Purchase Voucher opens — all line items visible
→ Press Enter on any stock line
→ Stock ledger history for that item appears

This drill-down capability makes every balance fully auditable to its entry without leaving Tally.

Changing the Reporting Period

Any open report → Alt+F2 → Enter new From and To dates → Enter

Example: See P&L for first 10 days only (Apr 1–10):

Gateway → P&L A/c
Alt+F2 → From: 01-Apr-2025 | To: 10-Apr-2025 → Enter

Only the TechWorld purchase and the Digital Hub sale appear — no salaries, no rent yet.

Comparative Reports (Current vs Previous Year)

Balance Sheet → F12 (Configure) → Show Previous Year Figures: Yes

Side-by-side columns appear: Current Year and Previous Year. For Sunrise Retail in Year 1, the previous year column is blank — this becomes useful from FY 2026-27 onward.

Practice Exercise

Exercise: Kiran wants to see only the P&L from April 1–15 (first half of month). Show the key sequence and what income/expense items would appear.

Show Solution

Gateway → P&L A/c
Alt+F2 → From: 01-Apr-2025 | To: 15-Apr-2025 → Enter

Items visible for Apr 1–15:

Purchase from TechWorld (Apr 5): ₹12,00,000 base
Rent payment (Apr 8): ₹30,000
Sale to Digital Hub (Apr 10): ₹4,80,000 base
Sale to CloudStore (Apr 12): ₹3,30,000 base
Purchase from Sparsh Tech (Apr 15): ₹1,00,000 base

NOT visible (dated after Apr 15):

Tech Park sale (Apr 18)
TechWorld payment (Apr 20)
Digital Hub receipt (Apr 22)
Salaries (Apr 25)

The P&L adjusts automatically — only Apr 1–15 vouchers included.

Key Terms

Term	Meaning
Trial Balance	List of all ledger closing balances — Dr total must equal Cr total
Trading Account	Revenue minus cost of goods sold = Gross Profit (or Loss)
Balance Sheet	Assets = Liabilities + Equity at a specific point in time
P&L Account	Revenue minus all expenses = Net Profit (or Loss) for a period
Drill-Down	Pressing Enter on any balance to navigate to underlying detail
Alt+F1	Toggle detailed / condensed view of P&L and Balance Sheet
Alt+F2	Change the reporting period (date range) for any open report
Comparative Reports	Side-by-side view of two periods — F12 → Show Previous Year

Module Summary

Access reports: Gateway → Reports or Alt+G → type report name
Sunrise Retail April 30: Month-1 shows stock build-up pattern; assets and liabilities balance at ₹17,88,283
Drill-down: Enter on any balance → bills → source voucher — fully auditable
Alt+F2 changes reporting period; F12 configures display options
Comparative reports: F12 → Show Previous Year: Yes

Quick Quiz

1. To see the source voucher behind a balance in the Balance Sheet, press:

a) F8
b) Enter (drill-down)
c) Esc
d) Ctrl+A

Answer

b) Enter — Tally's drill-down: pressing Enter on any balance digs deeper through ledger → bill-wise → original voucher.

2. The shortcut to change the reporting period for any open Tally report is:

a) F2
b) Alt+F2
c) F12
d) Alt+G

Answer

b) Alt+F2 — changes the From/To date range for the currently open report. F2 changes voucher dates; F12 configures display options.

3. To enable side-by-side current year vs previous year comparison in the Balance Sheet:

a) Alt+F2 → enter two date ranges
b) F12 → Show Previous Year Figures: Yes
c) Reports → Comparative → Balance Sheet
d) Alt+G → Comparative Balance Sheet

Answer

b) F12 → Show Previous Year Figures: Yes — F12 is the Configure key in Tally reports. Toggling this option adds a previous-year column to the Balance Sheet.

Final Accounts and Reports in Tally Prime

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