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Tally PRIME Profit & Loss Account

Profit & Loss Account shows the heads of all Nominal Accounts (Income & Expenses) and the net Profit / Loss, for the specified period (F-1A), the result of performance of the enterprise.

Stock Ledger Account in Tally PRIME

Profit & Loss Account includes Opening Stock Value (at Debit Side) and Closing Stock value (at Credit Side). These figures are carried from the Stock Ledger Account created under Stock-in-Hand Group.

Ledger Account creation and Opening Balance entry in Ledger Accounts has been explained earlier. Select GoT>Create>Ledger  to create Stock Ledger Account (F-1A). At Under field, select Stock-in-Hand Group. Enter Opening Stock value at Opening Balance of the Ledger Account (F-2B).

Closing Stock Value Entry in Tally PRIME

At the year end, do not create any Journal Voucher for Closing Stock (as done in Traditional Accounts), but enter the Closing Stock Value at Stock-in-Hand Ledger Account.

So, closing Stock is entered off the accounts and used on the fly during creation of P L Statement and Balance Sheet, and its value may be altered any moment any number of times, without creation or modification of any voucher.

F-2A: Closing Stock Value entry in Stock Ledger Account

Entry of Closing Stock Value in Tally PRIME

Select GoT>Alter>Ledger and select Stock Ledger Account to get Leger Alteration screen (F-2A). Below the Opening Balance figures, enter Closing Stock Value for respective Date.

This way, you may enter several Dates and corresponding Stock Values for the respective Dates. This helps you to prepare PL Statement for any period and Balance Sheet for any Date.

Closing Stock Entry – Hindi Video

Closing Stock Entry – Video in English

Profit & Loss Statement in Tally PRIME

The Profit & Loss Statement contains 2 parts, showing details of Expenses & Income Accounts, divided by a vertical line.

  • Expenses Side (or Debit Side) :The Left Part shows the top level Expenses Groups (Direct & Indirect Expenses). The figures represent the total of Net Amount of all Ledger Accounts under the respective Group.
  • Incomes Side (or Credit Side): The Right Part contains the top level Income Groups (Direct & Indirect Incomes). The figures represent the total of Net Amount of all Ledger Accounts under the respective Group.

Net Profit / Loss : The Net Profit / Loss is computed as difference between Total of Income figures (Direct Income  & Indirect Income) and the Total of Expenses figures (Direct Expense &  Indirect Income).

  • If the Total of Income figures is greater than Total of Expense figures, the difference is computed as Net Profit and is shown at left side of the Profit & Loss Statement
  • If the Total of Expense figures is greater than Total of Income figures, the difference is computed as Net Loss and is shown at right side of the Profit & Loss Statement.

Profit & Loss Statement Display in Tally PRIME

Having entered the Closing Stock Value, you may display/ print Profit & Loss Statement.

Select GoT > Profit & Loss Account (F-3A).

F-3A : P L Statement selection from Gateway of Tally Menu

Go To > Profit & Loss Account (F-3B) to get Profit & Loss Statement for the specified period (F-4B).

F-3B : P L Statement selection from Gateway of Tally Menu

F-4A: P L Statement Display

P L Statement Display – Video in English

P L Statement Configuration set up in Tally PRIME

Click F12:Configure button and set the Configuration options to set up the contents of Profit & Loss Statement .

F-4B: P L Statement Configuration

P L Statement Configuration set up – Hindi Video

P L Statement Printing– Hindi Video

Profit & Loss Statement Printing

At Profit & Loss Statement Display (F-2A), click P:Print to get the Profit & Loss Statement  printing screen.

F-5A : P L Statement Printing

Click C:Configure to set the Printing options. Click I:Preview to preview the Report before Printing. Click P:Print to print the P  L Statement on printer (F-5B), similar to P  L Statement Display (F-4B).

F-5B : P L Statement

P L Statement Print – Video in Hindi

P L Statement Print – Video in English

P L Account Appropriation – Hindi Video

P L Account Appropriation – Video in English

P L Statement – Key Points

  • सही  P L Statement पाने  के  लिए  Closing Stock Value और बाकी  adjustments Journal Entries पहले  कर  ले. Closing Stock की  entry Stock Ledger Account में  करे , Journal Voucher में  नहीं. Multiple Date के  Stock value entry कर  कोई  भी  Period के  Profit Loss Account Display / Print कर  सकते  है.
  • Closing Stock Value का Figure Trial Balance में  नहीं  दिखेगा  (लेकिन  Trial Balance में Opening Stock value, Stock Ledger के  Opening Balance column में  दिखेगा)

Profit and Loss Statement in Tally ERP9 – PDF