Difference in Opening Balances in Tally - Easily Remove with Simple Steps
Summary
TLDRThe video script discusses the common issue of discrepancies in the opening balance of a balance sheet. The researcher explains that these differences arise from an imbalance in the sheet, often due to incorrect entries in the opening balance sheet. The video provides a step-by-step guide on how to identify and correct these errors, emphasizing the importance of accurate accounting practices. It also touches on the basics of accounting, such as ensuring that the asset and liability sides of the balance sheet always match, and offers advice on handling opening stock in tallying systems.
Takeaways
- 📜 The video discusses the concept of opening balance and differences that may arise in the balance sheet, which can be confusing for those not familiar with accounting.
- 🔍 To understand the differences in the balance sheet, one must examine the opening balance and the entries made therein, as discrepancies often stem from incorrect entries.
- 🧐 The difference in the balance sheet usually indicates an imbalance, either on the liability side or the asset side, suggesting that not all balances were entered correctly.
- 📊 The opening balance sheet can be viewed in accounting software like Tally by selecting the period at the start of the financial year, which shows the balance for just that day.
- 🤔 A common mistake is entering incorrect opening balances for accounts, which leads to differences in the balance sheet. It's important to verify each ledger account to ensure accuracy.
- 💻 The video provides an example of altering the opening balance of a capital account and how it affects the overall balance, illustrating how changes in ledgers can create differences.
- 📝 It is emphasized that the balance sheet must always balance, with the total of the debit (asset) side matching the credit (liability) side for the financial records to be considered accurate.
- 🛠️ To resolve differences in the balance sheet, one should review and correct the entries in each account, ensuring that they reflect the true financial position.
- 📈 The video also addresses the common error of entering closing stock in Tally when only opening stock should be entered for the balance sheet to be correctly calculated.
- 🎓 Understanding basic accounting principles is fundamental to using accounting software effectively, as the software is merely a digital format for accounting practices.
- 👍 The video encourages viewers to subscribe to the Tally School channel for more educational content and offers to answer any questions or suggestions posted in the comments section.
Q & A
What is the main topic discussed in the video?
-The main topic discussed in the video is the opening balance and the differences that may arise in the balance sheet, and how to address these differences.
Why do people often have differences in their balance sheets?
-People often have differences in their balance sheets because there may be an imbalance, or the balance sheet has not been entered correctly, leading to discrepancies on either the liability or asset side.
How can one view the opening balance sheet in Tally?
-To view the opening balance sheet in Tally, you need to go to 'Period' and select the first day of the financial year, which will show the balance sheet for that exact day, representing the opening balances.
What is a common mistake people make while entering the opening balance in Tally?
-A common mistake people make is entering the closing stock instead of the opening stock. In Tally, only the opening stock needs to be entered, as the software automatically calculates the closing stock from the remaining unsold items.
What should the balance sheet always reflect?
-The balance sheet should always reflect a balance, with the total of the liability side (credit) matching the total of the asset side (debit). If there is a difference, it indicates an error in the entries.
How can one correct the differences in the opening balances?
-To correct differences in the opening balances, one should go through each ledger account, check the amounts, and alter them if necessary to match the intended values. This involves identifying any incorrectly entered amounts and making the appropriate corrections.
What is the importance of understanding basic accounting concepts when using Tally?
-Understanding basic accounting concepts is crucial when using Tally because it is essentially accounting in a digital format. Knowing these concepts helps in correctly entering data and avoiding discrepancies in the balance sheet.
How does the speaker demonstrate the creation of a balanced sheet?
-The speaker demonstrates the creation of a balanced sheet by explaining that for every investment made (e.g., cash or fixed assets like computers), the capital account (liability side) should be increased accordingly, and the asset side should reflect the corresponding assets.
What should one do if they still encounter differences in the balance sheet after correcting the ledgers?
-If differences still persist after correcting the ledgers, one should thoroughly check if all capital accounts have been entered correctly, as遗漏资本账户 is a common cause of such discrepancies.
What is the speaker's advice for viewers who want to learn Tally effectively?
-The speaker advises viewers to have a good understanding of basic accounting principles, as this knowledge will greatly facilitate the learning process of Tally, which is essentially a digital format of accounting.
How does the speaker engage with the audience for feedback and suggestions?
-The speaker encourages the audience to subscribe to the Tally School channel, ask questions, make suggestions, and even express gratitude in the comments section, promising to respond to each and every one of them.
Outlines
📋 Understanding Opening Balance Differences in Balance Sheets
This paragraph discusses the common issue of differences in opening balances on balance sheets. The speaker, a researcher from Terry School, explains that these differences arise due to imbalances or incorrect entries in the balance sheet. They clarify that while those familiar with accounting might understand the concept, newcomers may find it challenging. The speaker uses their own balance sheet as an example, showing how it is correctly entered and balanced, and then demonstrates how altering the opening balance of a capital account can create a difference. They emphasize the importance of correctly entering each ledger to ensure the balance sheet remains balanced, with the liability and asset sides matching.
📊 Balancing Act: Ensuring Accurate Ledger Entries
In this paragraph, the speaker delves deeper into the mechanics of balancing a balance sheet. They explain that the debit (asset side) and credit (liability side) must always match for the balance sheet to be accurate. The speaker provides a simple scenario where the capital account and a fixed asset, like a computer, must have the same balances to achieve balance. They also discuss common mistakes, such as incorrectly entering closing stock in tally, and advise on the correct procedures for handling stock and capital accounts. The speaker suggests that differences in balance sheets often stem from oversights in entering capital accounts or other ledgers. They encourage viewers to check each account thoroughly to identify and correct any discrepancies.
🎓 Learning Tally and Basic Accounting Principles
The speaker concludes the video by emphasizing the importance of understanding basic accounting principles to effectively learn and use Tally. They suggest that a strong foundation in accounting makes learning Tally much easier, as Tally is essentially accounting in a digital format. The speaker invites viewers to subscribe to the Terry School channel for more content and encourages them to ask questions or provide feedback in the comments section. They express gratitude for the viewers' engagement and promise to respond to all comments, whether they are suggestions, questions, or expressions of thanks.
Mindmap
Keywords
💡Opening Balance
💡Balance Sheet
💡Differences in Balance Sheet
💡Accounting
💡Ledger
💡Stock Items
💡Tally
💡Capital Account
💡Correcting Entries
💡Financial Year
💡Asset Side
Highlights
The video discusses the concept of opening balance and differences that may arise in the balance sheet.
Many people face issues with differences in their balance sheets and seek advice on how to resolve them.
The difference in the balance sheet usually indicates an imbalance, either on the liability side or the asset side.
The presenter shares their own experience of confusion when they began learning accounting and using tally.
The video provides a practical demonstration of how to check and correct the opening balance sheet in tally.
Altering the opening balance of an account, such as the capital account, can create a difference in the balance sheet.
The presenter illustrates how changing the opening balance of a ledger account affects the overall balance sheet.
It is important to ensure that the balances entered in tally are correct to avoid discrepancies in the balance sheet.
The video emphasizes the importance of the balance sheet always balancing, with the liability and asset sides matching.
Common mistakes include entering the wrong amount in a ledger or not entering the capital account correctly.
The presenter explains that closing stock does not need to be entered in tally when creating a balance sheet; only opening stock is required.
The video provides advice on how to correct the accounts and remove differences from the balance sheet.
The presenter shares a basic accounting scenario where the capital account and a fixed asset must balance each other out.
The video concludes by emphasizing that understanding basic accounting concepts is crucial for using tally effectively.
The presenter invites viewers to subscribe to their channel and engage with the content through comments and suggestions.
Transcripts
[Music]
hi guys i am researcher from terry
school and in this video we are going to
talk about the opening balance
difference that you get in the balance
sheet so many of the people get
differences in their balance sheet and
many of the people have asked me that
how to remove that large amount of
difference I have told them that that is
the difference in the balance sheet so
check your balance sheet the opening
balance sheet and you will find the
difference but this statement is a
little bit advanced this statement can
be understood by the people who know
accounting or who are into accounting
field but for the people who are new to
accounting or who have not enough
experience of accounting they cannot
understand so that's why I have created
this video nothing wrong in that
I was also in confusion at the beginning
when I started learning tally 5 years
ago
so why the balance remains or why there
is a difference in the opening balance
in balance sheet so let me show you my
balance sheet right now I am locked into
my company tally school and I'm going to
I'm going into the balance sheet you can
see there is no difference that's
because I have entered the balance sheet
in a correct way and then I am using the
balance in the correct way so why there
is no difference and why the difference
arises the difference basically arises
when there it is imbalance in the
balance sheet or we can call that you
have not entered the balance sheet
correctly so let me just open the
opening balance sheet this is actually
the opening balance sheet you can see as
at first April two thousand ninety if
you want to see the opening balance
sheet in your tally then you have to go
to period and then select one for 2019
and again select one for 2019 so what
tally will do is show you the balance
sheet for the period from 1 4 9
- 1 419 that exactly one day and that's
the opening day of the new financial
year so that is the opening balance
sheet when I enter that I will see the
opening balance sheet it is exactly the
same as we saw before because it was
already the opening balance sheet and
now the difference comes because there
is an imbalance in the balance sheet
either on the liability side or on the
asset side so either on this side or on
this side you have not entered a correct
balance while entering the opening
balance sheet so let me just show you
how the difference arises what I will do
is I will change the opening balance of
my capital account so if I go into
capital account I have tally school
capital account created and the capital
account by the name of my company which
is exactly the tally school.com name
also
so tally school if I go in there you can
see opening balances 5 lakh credit what
I will do is I will change the opening
balance to 2 lakh and then there will be
the difference so let me go back and if
I press ctrl the center from here I will
go into ledger alteration in Delhi for
Perry school ledger alteration if I come
here okay if I come here I will see
filer opening balance I will do it two
lakhs and they will see the difference
so now I have changed the opening
balance of capital to two lakh rupees
and you can see the difference in
opening balances 3 lakhs so that is how
the difference comes this is just one
example if you change opening balance of
any of the Ledger's that you get that
you see here or that you see in your
tally in the balance sheet
say for example computer if I go in
there opening balance is eight thousand
so let me go in there and change the
opening balance of computer
okay let me put in here 10,000 extra in
opening balance and then change now you
can see 10,000 extra difference is
coming up in the opening balances so
what happens is when there is a
difference in the opening balance when
you see something like this you have not
entered the entire balance sheet
correctly in tally what I will recommend
is you check each and every ledger or
you check each and every account here
and see the balance is exactly what you
want the final thing in accounting is
that the balance sheet always balances
that is this balance sheet the liability
side and the asset side both should be
same otherwise there will be a
difference as we saw so for example if
you just have a capital account and you
just have a fixed asset on this side
let's say we have capital account on the
left hand side just a little and right
hand side we just have computer so both
the capital account of tally school and
computer should have same balances so if
I bought a computer of twenty thousand
the capital accounts should be twenty
thousand also that's when the balance
sheet balances we cannot see that here
because there are so many accounts here
but that is the basic sin scenario or
that is a basic knowledge while creating
a balance sheet the debit that is the
asset side and the liability side that
is the credit should always match and
should always balance equally that is
why the name is also called the balance
sheet so how to remove that differences
it's very easy check each and every
account that is reflected here and check
the amount and you will find that you
have by mistake entered some other
amount in some other account or entered
wrong amount in any of the ledger the
most common mistake people do is enter
closing stock you do not have to enter
closing stock in tally while creating
balance sheet in tally you just have to
enter the opening stock and that will be
counted as losing stock because whatever
you are not whatever you have not sold
till the date is automatically becomes
the closing stock so while you enter the
closing stock in tally for the first
time you do not have to enter the
closing stock actually if you want to
maintain the stock create stock items
and then add opening balances in them I
will link down in the description the
process of creating stock items in tally
with GST and if you just want to enter
the stock without maintaining
maintaining it then create a ledger for
opening stock and then enter it in tally
it will be under current assets so
that's where the difference arises for
most of the people but if still there is
a difference then chances are you may
not have entered a capital account
because what we do is we enter the cash
that is the amount that we introduce in
a business or bank account but we forgot
or we forget to enter the capital
account and that's where the difference
arises so these can be the reasons the
difference in your balance sheets
opening balance arises there can be
other reasons as well and we have to
check each and every individual balance
sheet to know where the differences I
have explained the reasons where
generally most of the people would do
the mistake because I have gone through
them so I know so how it works so what
you have to do to remove the balances
you have to just correct the accounts by
altering them so what I will do is I
will alter this ledger and this ledger
that we have changed so I will go into
tally school ctrl + Enter
I will come to opening balance and
identify lakhs
we have changed it now the opening
balance difference is only ten thousand
so we have covered the difference of
three lakhs and now we will change the
ledger of computer control plus enter
and if I come here I will just delete it
because there was nothing here so I will
keep it zero and press ENTER now the
difference is gone so now the balance
sheet is valid now the left hand side
liability side and the right hand side
asset side is valid it doesn't matter
what the total amount is it will tell
you if you have entered all the Ledger's
in a correct way if you want to just
start by balancing the baron see you can
start ledger by ledger so in business or
whatever you do it comes from your
capital so on the left hand side what
you do is get a P paper and a pen or a
notebook and on the left hand side of
the page write capital on the right hand
side write your fixed assets or your
investments or whatever you have
introduced in the business or from that
money so for example if you are starting
a computer business on the left hand
side let's say you invested fifty
thousand so fifty thousand will be in
the capital and the right hand side it
can be computer it can be cash you are
not purchased computer here so on the
right hand side right for example let's
say you have introduced cash you have
just started the business so on the left
hand side it will be capital on the
right hand side it will be cash now you
have bought 20,000 rupees computer from
that cash so cash will get reduced and
computer will get increased so on the
right hand side although you got the
computer but the total fifty thousand
will remain as it is so that's how the
balance sheet actually works and that's
how tele also work with the balance
sheet so we have to know that so this is
just a basic accounting problem that
many of the people have this is not
something related to tally in any way
except that you have entered the ledgers
wrongly otherwise it's just basic
accounting concept that you have to know
if you want to learn an evil I say this
to many people that I meet that to learn
tele well no basic accounting if you
know advanced accounting that's very
good but if you know basic accounting
you can learn value in a much more easy
way because fairly for accounting it is
nothing but accounting in a digital
format so that's for this video if you
like this video subscribe to Kali school
channel we are going we are growing at a
very phenomenal pace we are adding many
many subscribers daily so that's a good
point
and if you have any suggestion any
question comment down below and the I
reply to each and every suggestion or
question if you want to say thanks then
also comment down below I will reply to
that as well by giving a heart so thank
you for watching this video and I will
see you in the next video
[Music]
[Music]
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