Transfer of One item to another

you can transfer if all items rates are same

but if rates are different then there may be problem regarding true profit

but if rates are same then from closing stock the tally will give u true information regarding profit and closing stock

i little know about maintenance of inventory on tally. so i give my opinion may be i m wrong

No offence but the above mentioned software is no good and really very outdated.Rather u can go for sap and other accounting packages which are much more sensible