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:

  1. Cash
  2. 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:

  1. Primary Group
  2. 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/Division6. Current Assets11. Indirect Income
2. Capital Accounts7. Fixed Assets12. Misc. Expenses
3. Loans8. Investments13. Purchase Accounts
4. Suspense Account9. Sales Accounts14. Direct Income
5. Current Liabilities10. Indirect Expenses15. 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 Creditors6. Secured Loans11. Bank Accounts
2. Stock in Hand7. Deposits12. Cash in Hand
3. Duties & Taxes8. Banks OD Accounts13. Loan & Advances (Assets)
4. Unsecured Loans9. Provisions
5. Reserves & Surplus10. Sundry Debtors

Do the Following entry of Ledgers with opening balance as follow

State Bank of IndiaBank Account      270,000.00 
Shri Krishna A/cCapital Account       390,000.00
Sunil CapitalCapital Account       250,000.00
CashCash in Hand      125,000.00 
Petty CashCash in Hand           8,300.00 
Fix Deposit With BOIDeposit (Assets)         75,000.00 
Furniture & FixtureFixed Assets         45,000.00 
Office PremisesFixed Assets      290,000.00 
Profit & LossPrimary          48,500.00
Term Loan (Bank of India)Secured Loan       100,000.00
Stock in HandStock in Hand         71,718.00 
Samarth StationarySundry Creditors          12,826.00
Nirmala CorporationSundry Creditors          15,400.00
Alfa Pvt Ltd.Sundry Creditors          14,120.00
Vilas EnterprisesSundry Creditors          23,067.00
Geeta IndustriesSundry Debtors         22,350.00 
Rajas StationerySundry Debtors           8,750.00 
Gala Stationery ShopSundry Debtors           8,870.00 
Bhavik storesSundry Debtors         34,550.00 
Rupali EnterprisesSundry Debtors         14,375.00 
Loan from Amit and coUnsecured 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.

Kotak Mahindra BankBank a\\c      100,000.00 
Sonal EnterprisesCapital a\\c       120,000.00
CashCash in Hand      300,000.00 
Petty CashCash in Hand      500,000.00 
Fix Deposit with HDFCDeposit (Assets)         85,000.00 
Land & BuildingFixed Assets      135,000.00 
Office PremisesFixed Assets      300,000.00 
Profit & LossPrimary       660,000.00
Term Loan (Bank of Baroda)Secured Loan    1,042,821.00
Stock in handStock in Hand         44,500.00 
Aman StationerySundry Creditors       120,000.00
Minakshi CorporationSundry Creditors          28,000.00
Shilpa Pvt Ltd.Sundry Creditors          65,000.00
Patil EnterprisesSundry Creditors          20,000.00
Aakash IndustriesSundry Debtors         45,200.00 
Priti StationerySundry Debtors      250,000.00 
Shivani Stationery ShopSundry Debtors      360,000.00 
Rahul StoresSundry Debtors         78,521.00 
Shyam EnterprisesSundry Debtors         45,600.00 
Loan from Ram and CoUnsecured Loans          68,000.00
Shraddha CapitalCapital a\\c       120,000.00
TOTAL   2,243,821.00   2,243,821.00

Group and Description:-

NoGroup NameAccount
1Indirect 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
2Sundry CreditorsPurchase Persons- name (Business given some many to Persons), Advance paid (for product Purchase)
3Sundry DebtorsSale Persons name (Business Receive some many From Persons), Advance Receive (for product Sale)
4Loan (Liabilities)For the a\\c of loans taken
5Secured LoansFor the a\\c of Medium / Long Term Loans (bank)
6Unsecured LoansFor the a\\c of Short-term Loans or the Loans taken from others which have no security Bank Loan, Finance company
7Bank accountFor Saving/Currents A/c’s in Bank (Not for such A/c’s of Bank from whom we have taken a loan).
8Cash-In-HandFor Cash, Main Cash (Full Amount), Petty Cash (Part of the Main Cash), Cash (Form customer)
9Capital AccountFor the Owner of the company & Related Transaction Withdraw / Drawing (Personal use)  Bring Capital, Share Issue.
10Indirect Income (Extra Income)Interest Received, Rent Received, Commission Received, Discount Received Foreign currency profit
11Direct IncomeIncome, 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   
12Fixed Assets (Company or Office use Product)Machine, Furniture, Land, Building, Plant, Goodwill
13Duties & 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
15Purchase AccountPurchase, Purchase Return
16Sales AccountSales, Sales Return
17Current AssetsBill Receivable, Closing Stock, Prepaid Insurance, prepaid exp. Advance Paid (Not for Product), stationery consumable
18Current LiabilityBill Payable, Advanced Receive (Not for Product)
19Loan &Advanced AssetsLoan for Employee, Expenses in Advanced 
20Provisions Like Payable, Vat Payable, Expenses Payable (for Year End)
21Suspense AccountFor Temporary Use
22Stock in HandFor Closing Stock
23Deposits (Assets)For fixed deposits in Banks, rent deposit, Telephone deposit
24Bank 0cc A/c(Bank overdraft & Cash-credit) Account on Bank Overdrafts
25Bank ODAccounts of Subsidiary Overdrafts only (Bank Overdraft)
26Branch/DivisionsAccounts of Subsidiary firms of our business if any.
27InvestmentGenerally used for the a/c of Investment other than in bank e.g., investment in shares bonds, another person.
28Misc 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.
29Reserves & surplusLike Capital Reserves, General Share
30Retained EarningsLike Retained Earnings
31Expenses (Direct)It is equal to Direct expenses
32Expenses (Indirect)It is equal to Indirect expenses.
33Income (direct)It is equal to Direct Income.
34Income (Indirect)It is equal to Indirect Income.