How to Display the Income & Expense A/c Instead of Profit & Loss for Non-Commercial Entities in TallyPrime

How to Display Income & Expense A/c Instead of Profit & Loss for Non-Commercial Entities in TallyPrime

 

Description

Non-commercial entities such as trusts, associations, societies, and clubs do not operate with a profit motive. Instead of a Profit & Loss Account, these organizations prepare an Income & Expense A/c to reflect their financial performance.

TallyPrime provides a configuration option that allows you to display the Income & Expenditure Account in place of the Profit & Loss Account. This article explains how to enable this setting using a simple configuration in the ledger master.

How to Display the Income & Expense

Steps to Configure Income & Expenditure Account in TallyPrime

Follow the steps below to configure TallyPrime to use the Income & Expenditure Account:

Go to Gateway of Tally
Open TallyPrime and navigate to the Gateway of Tally screen.

Alter the Ledger Master
From Gateway of Tally, go to:
Masters → Alter → Ledger

Select the Profit & Loss Ledger
From the list of ledgers, select Profit & Loss A/c.

Enable Income & Expenditure Account
In the ledger configuration screen, set:
Use Income & Expenditure A/c? → Yes

 

Enable Income & Expense ac in ledger

Save the Ledger
Press Ctrl + A to save the changes.

 

Result

Once the configuration is enabled, TallyPrime will display the Income & Expenditure Account instead of the Profit & Loss Account, making the financial statements suitable for non-commercial and non-profit entities.

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