https://help.tallysolutions.com/docs/te9rel66/Reports/Display_Financial_Statements/display_balance_sheet.htm

Balance Sheet

A balance sheet is a financial statement that reports a company's financial position. This report shows the balance between the assets and liabilities of a firm. The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Owner's Equity. You can view this report in browser .

Note : By default, the Balance Sheet report will be generated as on the date of the last voucher entry. You can change the date to view the report for the required period.

On this page

View Balance Sheet

Configure Balance Sheet

Set Closing Stock Manually in the Balance Sheet

Display Balance Sheet with Different Stock Valuation Methods

Change Display of Group Order in Balance Sheet

View the Balance Sheet

1. Go to Gateway of Tally > Display > Balance Sheet .

2. Press F12 to configure the Balance Sheet .

3. Press Ctrl+A to accept.

While providing the opening balance in ledgers, an equivalent contrary balance will appear as Difference in opening balances in order to match the assets and liabilities, or debit and credit balances. The entry passed for the difference will affect the closing balance, but the Balance Sheet will display the difference in the amount. To balance the difference in the opening balance, you have to adjust it with the opening balance of another ledger.

For example, if the Difference in opening balances is Rs 5000/- on the debit side, you must adjust this with Rs 5000/- credit to the opening balance of another ledger.

Note : When a value in Liabilities or Assets becomes negative, it will appear based on the type of its group balance. Assets with credit balance will appear in Liabilities , and Liabilities with debit balances will appear in Assets .

If you want to view the Balance Sheet as per the statutory requirement, you have to configure the Balance Sheet as per Schedule VI . For more details, click here .

Configure Balance Sheet

System Configuration : You can configure the options in balance sheet for method of showing balance sheet, format, and other additional details. Go to Gateway of Tally > F12: Configuration > General. The System Configuration screen appears as shown below:

Set Use Accounting terminology of to India/SAARC or International under the Country Details .

If you have activated India/SAARC , the Balance Sheet will display Sources of Funds, and Application of Funds . And if you have activated International, the Balance Sheet will display Assets and Liabilities

Show Vertical Balance Sheet : By default, the Balance Sheet screen is displayed in the horizontal form. However, you can configure the Balance Sheet to appear in vertical form, by pressing F12: Configure, and setting the option Show Vertical Balance Sheet to Yes .

The Balance Sheet in vertical form appears as shown below:

Profit or Loss, both as Liability : Set this to No , to move the Profit & Loss Account to the Assets side of the Balance Sheet .

Note: The Profit or Loss, both as Liability option is available in horizontal form.

Show Percentages : Set this option to Yes in the balance sheet configuration screen. Press Alt+F1 to view the detailed Balance Sheet . In Detailed mode, the Balance Sheet appears as shown below:

Each line is expressed as a percentage of the total amount of the Balance Sheet .

Show Working Capital figures : Using this option, you can set Balance Sheet to show working capital values. Working capital is the difference between current assets and current liabilities. Set Show Working Capital figures to Yes , to display current assets less current liabilities.

Select F1 : Detailed from the button bar. The Balance Sheet with working capital figures appears as shown below:

Method of Showing the Balance Sheet : Select the options as Liabilities/Assets or Assets/Liabilities.

Columnar Balance Sheets : Select a different date to compare two balance sheets. Press New Column on the button bar or Alt+C and change the period.

The following is a comparison between Balance Sheet dated 1st July, and 15th July.

Press N ew Column on the button bar or ALT+C and change only the currency to display the Balance Sheet with figures in a different currency.

The following is a comparison of the Balance Sheet dated 15th July, in different currencies:

Show Quarterly Balance Sheet : Press Auto-column on the button bar or use the key Alt+N . Select Quarterly from the list of periods.

The Balance Sheet with column details repeated Quarterly will appear as shown below:

Set Closing Stock Manually in the Balance Sheet

In Tally.ERP 9, the value of closing stock displayed in the Balance Sheet is based on the costing method defined for each stock item in the stock item master. The general principle of accounting is to value the stock at purchase cost or market value, whichever is lower. The value of closing stock can be entered manually.

For example, consider that the market value of stock on 31-12-2008 is Rs.25,000. To show this amount as the closing stock value:

Set the option Integrate accounts and inventory to No in F11: Features (F1:Accounting Features) .

Create a ledger s tock (under Stock-in-Hand).

In Closing Balance of Balance Sheet , specify date as 31/12/08 and value as 40,000 . The Balance Sheet appears as shown below:

When the balances are carried forward to the next year, the opening value of stock will be 25,000, if the option Integrate account and inventory option is set to No in F11: Features (F1:Accounting Features) .

If this option is set to No , the manual entry will not be considered, and the value will be calculated automatically based on inventory values.

Display Balance Sheet with Different Stock Valuation Methods

Tally.ERP 9 provides different valuation methods for different stock items which means you can use different valuation methods like (FIFO, LIFO, Avg Cost, Avg Price, Std. Cost, Std. Price, and others) for the inventories in the Balance Sheet.

The various s tock valuation methods available are:

To view stock valuation under each of these methods, in separate columns in the same Balance Sheet

1. Press Alt+N to display the Auto columns .

2. Select Stock Valuation Methods in Repeat Using field. The columnar report displays values for each of the valuation method used as shown below:

The Balance Sheet displaying all the methods of stock evaluation used appears as shown below:

Change Display of Group Order in Balance Sheet

The order of display of group heads in the Balance Sheet can be changed as per user's requirements. For example, the group Investments has to appear above the Fixed Assets in Balance Sheet .

1. Go to Gateway of Tally > Balance Sheet .

2. Highlight the group, Investments under Assets with the cursor. The Balance Sheet screen appears as shown below:

3. Press Ctrl + Enter to display the Group Alteration screen. The position index of the Investments group is 50 as seen in the image.

4. Click Ctrl+ A to return to Balance Sheet screen.

5. Highlight the group, Fixed Assets under Assets , with the cursor.

6. Click Ctrl + Enter to display the Group Alteration screen and note its position index number.

7. Increase the position index number of Fixed Assets Group and decrease the number in the case of Investments .

Enter the new position index number for Investments as 40 and for Fixed Assets as 50 .