What is Ledger?
A Ledger is the actual account head to which you identify a transaction and must be used in all Accounting Vouchers. Without a ledger we cannot record any transactions.
Ex: Purchase, payments, sales, Receipts, etc., all these accounts heads are ledger Accounts.
All Ledgers have to be classified into Groups. Classification of Ledgers to the appropriate groups is very important. These Groups and Ledgers are classified to Profit & Loss or Balance Sheet. The creation and usage of Groups in Tally. ERP 9 has been explained earlier.
There are two pre-defined ledgers available in Tally, they are:
- Cash
- Profit and loss
- How to create leader?
Gateway of tally —–> Create —–> Ledger
- How to modify/Alter ledger?
Gateway of tally —–> Alter—–> Ledger —–> Select ledger want to modify or delete
After Selecting Particular Ledger Press Alt + D to delete .
What is Group in tally?
Group are collection of ledgers of the same nature. Tally software automatically creates 28 groups that are used in the account chart. Out of 28 predefined groups in tally, primary groups are 15, and the sub-groups are 13. The different types of groups are as follows:
- Primary Group
- Sub Group
Primary Groups
This group is the main group. Primary groups are at the top of the hierarchy. Among 15 groups, 6 groups are profit and loss a/c items, and 9 groups are balance sheets items.
List of Primary Group in Tally
| 1.Branch/Division | 6. Current Assets | 11. Indirect Income |
| 2. Capital Accounts | 7. Fixed Assets | 12. Misc. Expenses |
| 3. Loans | 8. Investments | 13. Purchase Accounts |
| 4. Suspense Account | 9. Sales Accounts | 14. Direct Income |
| 5. Current Liabilities | 10. Indirect Expenses | 15. Direct Expenses |
Sub Groups
This group is part of the primary group. It can be divided into 13 groups.
List of Sub Group in Tally
| 1. Sundry Creditors | 6. Secured Loans | 11. Bank Accounts |
| 2. Stock in Hand | 7. Deposits | 12. Cash in Hand |
| 3. Duties & Taxes | 8. Banks OD Accounts | 13. Loan & Advances (Assets) |
| 4. Unsecured Loans | 9. Provisions | |
| 5. Reserves & Surplus | 10. Sundry Debtors |
Do the Following entry of Ledgers with opening balance as follow
| PARTICULARS | GROUP | DEBIT RS. | CREDIT RS. |
| State Bank of India | Bank Account | 270,000.00 | |
| Shri Krishna A/c | Capital Account | 390,000.00 | |
| Sunil Capital | Capital Account | 250,000.00 | |
| Cash | Cash in Hand | 125,000.00 | |
| Petty Cash | Cash in Hand | 8,300.00 | |
| Fix Deposit With BOI | Deposit (Assets) | 75,000.00 | |
| Furniture & Fixture | Fixed Assets | 45,000.00 | |
| Office Premises | Fixed Assets | 290,000.00 | |
| Profit & Loss | Primary | 48,500.00 | |
| Term Loan (Bank of India) | Secured Loan | 100,000.00 | |
| Stock in Hand | Stock in Hand | 71,718.00 | |
| Samarth Stationary | Sundry Creditors | 12,826.00 | |
| Nirmala Corporation | Sundry Creditors | 15,400.00 | |
| Alfa Pvt Ltd. | Sundry Creditors | 14,120.00 | |
| Vilas Enterprises | Sundry Creditors | 23,067.00 | |
| Geeta Industries | Sundry Debtors | 22,350.00 | |
| Rajas Stationery | Sundry Debtors | 8,750.00 | |
| Gala Stationery Shop | Sundry Debtors | 8,870.00 | |
| Bhavik stores | Sundry Debtors | 34,550.00 | |
| Rupali Enterprises | Sundry Debtors | 14,375.00 | |
| Loan from Amit and co | Unsecured Loans | 120,000.00 | |
| TOTAL | 973,913.00 | 973,913.00 |
Display Reports
Display Trial Balance
- Gateway of Tally (G.O.T.) —–> Display —–> Trial Balance
Display Balance Sheet
- Gateway of Tally (G.O.T.) —–> Balance Sheet
Assignments: –
Create a new company, name it as your name practice and do the following entry of ledger as given below. Show the trial balance and balance sheet report.
| NAME | UNDER GROUP | Dr. | Cr. |
| Kotak Mahindra Bank | Bank ac | 100,000.00 | |
| Sonal Enterprises | Capital ac | 120,000.00 | |
| Cash | Cash in Hand | 300,000.00 | |
| Petty Cash | Cash in Hand | 500,000.00 | |
| Fix Deposit with HDFC | Deposit (Assets) | 85,000.00 | |
| Land & Building | Fixed Assets | 135,000.00 | |
| Office Premises | Fixed Assets | 300,000.00 | |
| Profit & Loss | Primary | 660,000.00 | |
| Term Loan (Bank of Baroda) | Secured Loan | 1,042,821.00 | |
| Stock in hand | Stock in Hand | 44,500.00 | |
| Aman Stationery | Sundry Creditors | 120,000.00 | |
| Minakshi Corporation | Sundry Creditors | 28,000.00 | |
| Shilpa Pvt Ltd. | Sundry Creditors | 65,000.00 | |
| Patil Enterprises | Sundry Creditors | 20,000.00 | |
| Aakash Industries | Sundry Debtors | 45,200.00 | |
| Priti Stationery | Sundry Debtors | 250,000.00 | |
| Shivani Stationery Shop | Sundry Debtors | 360,000.00 | |
| Rahul Stores | Sundry Debtors | 78,521.00 | |
| Shyam Enterprises | Sundry Debtors | 45,600.00 | |
| Loan from Ram and Co | Unsecured Loans | 68,000.00 | |
| Shraddha Capital | Capital ac | 120,000.00 | |
| TOTAL | 2,243,821.00 | 2,243,821.00 |
Group and Description:-
| No | Group Name | Account |
| 1 | Indirect Expenses (Office exp) | |
| Salary, rent paid, Printing & Stationery, Depreciation, Postage, Telephone bill, traveling exp, Conveyances, Advertisement exp, Interest paid On Loan Taken & Capital, Packing Charges, Fees Paid, Commission Paid, Discount Paid, Bad Debtors, Insurance Paid, Entertainment (exp.), Income tax, Foreign Currency Loss, Electricity bill, Interest paid | ||
| 2 | Sundry Creditors | Purchase Persons- name (Business given some many to Persons), Advance paid (for product Purchase) |
| 3 | Sundry Debtors | Sale Persons name (Business Receive some many From Persons), Advance Receive (for product Sale) |
| 4 | Loan (Liabilities) | For the ac of loans taken |
| 5 | Secured Loans | For the ac of Medium / Long Term Loans (bank) |
| 6 | Unsecured Loans | For the ac of Short-term Loans or the Loans taken from others which have no security Bank Loan, Finance company |
| 7 | Bank account | For Saving/Currents A/c’s in Bank (Not for such A/c’s of Bank from whom we have taken a loan). |
| 8 | Cash-In-Hand | For Cash, Main Cash (Full Amount), Petty Cash (Part of the Main Cash), Cash (Form customer) |
| 9 | Capital Account | For the Owner of the company & Related Transaction Withdraw / Drawing (Personal use) Bring Capital, Share Issue. |
| 10 | Indirect Income (Extra Income) | Interest Received, Rent Received, Commission Received, Discount Received Foreign currency profit |
| 11 | Direct Income | Income, which affect gross profit e.g., Professional fees have no effect on tracing companies’ industries but they affect service industry so they cannot make sales a/c. they have to make Profession Fees Received Exp. Advocate, Doctor, consultant, Architecture, Accountant |
| 12 | Fixed Assets (Company or Office use Product) | Machine, Furniture, Land, Building, Plant, Goodwill |
| 13 | Duties & Taxes (For Nominal unpaid duties like Municipal Taxes. Stamps duties) | TDS: Tax Deduct Source (On Profession) Service tax: (On Service Provide Companies) Search Charges: Tax on Tax, Other taxes |
| 15 | Purchase Account | Purchase, Purchase Return |
| 16 | Sales Account | Sales, Sales Return |
| 17 | Current Assets | Bill Receivable, Closing Stock, Prepaid Insurance, prepaid exp. Advance Paid (Not for Product), stationery consumable |
| 18 | Current Liability | Bill Payable, Advanced Receive (Not for Product) |
| 19 | Loan &Advanced Assets | Loan for Employee, Expenses in Advanced |
| 20 | Provisions | Like Payable, Vat Payable, Expenses Payable (for Year End) |
| 21 | Suspense Account | For Temporary Use |
| 22 | Stock in Hand | For Closing Stock |
| 23 | Deposits (Assets) | For fixed deposits in Banks, rent deposit, Telephone deposit |
| 24 | Bank 0cc A/c | (Bank overdraft & Cash-credit) Account on Bank Overdrafts |
| 25 | Bank OD | Accounts of Subsidiary Overdrafts only (Bank Overdraft) |
| 26 | Branch/Divisions | Accounts of Subsidiary firms of our business if any. |
| 27 | Investment | Generally used for the a/c of Investment other than in bank e.g., investment in shares bonds, another person. |
| 28 | Misc Expenses (Assets) [Miscellaneous expenses] | For the capitalized preliminary or preoperative expenses of Company this group should not be taken to normal or office expenses because Misc. expenses are only for the register of the Company. So, this expense is not for the particular year but for whole life expenses of the business. That is why Misc. expenses are called Assets. |
| 29 | Reserves & surplus | Like Capital Reserves, General Share |
| 30 | Retained Earnings | Like Retained Earnings |
| 31 | Expenses (Direct) | It is equal to Direct expenses |
| 32 | Expenses (Indirect) | It is equal to Indirect expenses. |
| 33 | Income (direct) | It is equal to Direct Income. |
| 34 | Income (Indirect) | It is equal to Indirect Income. |