Illustration:- In the books of M/s XYZ Limited you have been asked to see the Profit & Loss Account for Financial Year 2011-12. How shall you check the same?

Solution:

We shall check the Profit and Loss Account of M/s XYZ Limited as under:-

  • Open Tally program.
  • Select your Company. In our case, we shall select M/s XYZ Limited.
  • Select ‘Display’ under gateway of tally.
  • Select ‘Profit & Loss Account’. After you select ‘Profit & Loss Account’ then the screen shall appear as under:-

Note: In above Profit and Loss Account, Trading Account and Profit & Loss Account are not shown separately. To see gross profit and net profit separately, you have to do following job:-

  • You can see an icon on gateway of tally i.e. ‘Configuration’. Select the same or pres F-12. After you select ‘configuration’, you will see the following screen:-

Now, Select the commands as follow:-

Show Vertical Profit & Loss Account If you want to see P&L in vertical form then write ‘yes’. In our case we want to see only in horizontal form. So you select ‘No’. You can see the profit and loss account in vertical form also after selecting ‘Yes’ under this column.
Show Percentage Select ’No’.
Show with Gross Profit Select ‘Yes’ because we want to see trading account separately.
Appearance of Name Select ‘Names only’
Scale Factor for Values Select ‘Default’
  • Now your screen shall appear as under:-

  • After you press enter on last command then format of your profit and loss account will change in to parts i.e. it will show trading account and profit & loss account in two parts. Now, you can see gross profit and net profit separately. This screen will appear as under:-

  •  If you see the Profit & Loss Account in above format, you will find that all the ledger accounts are shown in groups. For example – direct expenses, indirect expenses etc. Now’ you want to see the profit and loss account in more detailed manner then you just select ‘Detailed’ on screen. Now, your screen shall appear as under:-

  • Above format is much clearer than previous one.
  • You can see the profit and loss account relating to any period. For this,  just Select ‘Period’
  • Now, try to see so many commands yourself. Screen shall tell you the answers of your all questions in respect of trial balance. Do more and more practice.

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