The correct answer is: C. Both A and B
A budget is a financial plan for a specific period of time. It helps you to track your income and expenses, and to make sure that you are not spending more money than you earn.
In Tally, you can budget for both nett transactions and closing balances.
A nett transaction is a transaction that results in a change in your account balance. For example, if you buy something for cash, this would be a nett transaction.
A closing balance is the amount of money that you have in your account at the end of a period. For example, if you have $100 in your account at the beginning of the month, and you spend $50 during the month, your closing balance at the end of the month would be $50.
You can budget for both nett transactions and closing balances in Tally. To do this, go to the “Budget” menu and select “New Budget”. Then, select the type of budget that you want to create (nett transactions or closing balances) and enter the relevant information.
Once you have created your budget, you can track your progress against it by going to the “Budget” menu and selecting “View Budget”.
Here is a brief explanation of each option:
- A. Nett Transactions
A nett transaction is a transaction that results in a change in your account balance. For example, if you buy something for cash, this would be a nett transaction.
To budget for nett transactions, you need to enter the amount of money that you expect to spend or earn for each transaction. You can also enter the date of the transaction and the category of the transaction.
- B. Closing Balance
A closing balance is the amount of money that you have in your account at the end of a period. For example, if you have $100 in your account at the beginning of the month, and you spend $50 during the month, your closing balance at the end of the month would be $50.
To budget for closing balances, you need to enter the amount of money that you expect to have in your account at the end of each period. You can also enter the date of the period and the category of the period.
- C. Both A and B
You can budget for both nett transactions and closing balances in Tally. To do this, go to the “Budget” menu and select “New Budget”. Then, select the type of budget that you want to create (nett transactions or closing balances) and enter the relevant information.
Once you have created your budget, you can track your progress against it by going to the “Budget” menu and selecting “View Budget”.