Which ledger is created by Tally automatically as soon as we create a new company A. Cash B. Profit & Loss A/c C. Capital A/c D. A and B both

The correct answer is: D. A and B both

Tally creates two ledgers automatically when you create a new company: Cash and Profit & Loss A/c.

• Cash ledger is used to record all cash transactions, such as receipts and payments.
• Profit & Loss A/c ledger is used to record all income and expenses, and to calculate the company’s profit or loss for the period.

Capital A/c is not created automatically by Tally. It is a user-defined ledger that is used to record the owner’s capital in the company.