How to prepare a Balance Sheet in Tally ?

So far, we have learn t about basic of accountancy, creating a company in tally, posting, vat, excise etc voucher entry and now we will go ahead and will discuss how to prepare a balance sheet in Tally because preparing a balance sheet in accountancy is the final destination for Accounting personnel.

First of all, we will look this matter from the view of manual accounting system
The process of Manual accounting is :

1. Preparing Vouchers/Bills etc.
2. Preparing Cashbook, Journals, Purchase and Sales Register and Bank book
3. Preparing Ledgers by posting items to personal ledger account from the item no. 2 as above
4. Preparing a Trial Balance
5. Preparing Trading and profit & Loss Account
6. Preparing Balance Sheet

Now, Vouchers, Bills ,cheques  are the base of accounting system they forms a transactions which are recorded in day book,cash book,bank register,buy/sales register then each transaction has been posted to related ledger account. Then on a particular date, Dr. and credit balance of each ledger transferred to Trial balance, including closing cash on and bank balance on that date. By following this process, the unit prepares a Trial balance. Thus, A trial balance sheet shows summary of sales,purchase,assets and liability, expenses and income during that period. Now from the trial balance sheet all items relating to revenue expenses,revenue incomes, sales, purchase etc are transferred to trading and profit and loss account. Also stock on that date is to be valued and effected into the profit and loss account.
now if any provision for interest, taxes have to be made then the same are effected into Profit and loss account. The result will be the Net profit and loss account.that will be transferred to Capital Account. Now items representing capital assets, cash/bank balance, capital and sundry debtors and sundry creditors in the trial balance are transferred to the Balance sheet also stock to be shown in the balance sheet. Now your balance sheet is ready.

In Any computerization Accounting system, preparation of balance sheet is relatively very different then as stated above. In computerisation accounting software, all you need to create ledger accounts under proper grouping and t hen start entering vouchers only.

1. You don’t need to prepare any register 
2. No need of posting to any ledgers
3. No need to prepare a Trial balance sheet
4. No need to prepare a Balance sheet
5. Because once you post a voucher in  a proper way, all the above reports the system will prepare automatically without any error or calculation.

In tally, you need to specify closing stock as on the given date to prepare a balance sheetwhich I have shown in my earlier posting. Please also  read how to put closing stock in tally