Creating A Ledger In Tally

Ledger:

Introduction: Tally maintains details of all ledgers that are defined by the user. You can define your chart of accounts i.e. - maintain groups, ledger etc. Ledger reports can be used for secrutiny of accounts. Most accounting system across the globe follow the concept of separate Personal and Nominal Accounts. Tally follows the concept of single ledger systems, which includes both Personal and Nominal accounts.

A Ledger is the actual account head to which you identify a transaction. In Tally, you pass all accounting vouchers using Ledgers. However, all Ledger have to be classified into Groups. Hence a  through understanding of account classification is important for working with Ledgers. The creation and usage of Groups in Tally has been explained earlier. Now you will learn how Tally works with Ledgers.

Go to Gateway of Tally-> Accounts Info-> Ledgers

Creating A Ledger: Ledger can be created in single and multiple modes. In multiple mode you can create multiple ledgers at a time.

Creating A Single Ledger: The creation of Ledger depends on the features you opt for in the F11: Features of your company and F12: Configure. It is advisable to set F11: Features and Configure the F12: Configure screen before creating any Ledgers. You may configure or set your Ledgers to enable or disable advanced mode.

Tally automatically creates two Ledger accounts namely, Cash (Under cash-in-hand) and Profit and Loss Account ( Direct primary Account). You need to create all other accounts heads. There are no restrictions in Ledger creation except that you cannot create another Profit & Loss A/c. Any number of Cash Accounts may be created in any other name Like Petty Cash.

Creating a Ledger Account with minimal information:

Go to Gateway of Tally-> Accounts Info.-> Ledgers-> Create ( under single Ledger)

1. Name: Enter the name of the account. You can provide the full name of the account. Tally fits it all in. Press Enter to move to the next field. Tally does not allow entry of duplicate names. The uniqueness check is made here itself.

Note that punctuation and other non-relevant information are ignored by Tally in its recognition of a name. Thus, CST, C.S.T and C.S.T are all considered as same.

Tally converts the first letter of all relevant words to upper case, which helps you; speed up data entry. You need not bother about changing the case every time is a different word.

2. Alias: Enter an alias name if required. You can access the Ledgers using the original name or the alias name.

Under: All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is created from the List of Groups. To create a new Group from this field press [ALT+C]

A Group is not important by itself, but because it controls the usage of Ledger accounts. A wrong classification would affect the treatment of the Ledger account in final statements and during voucher entry.

You can, alter a Ledger account to change its group classification at any time.

3. Opening Balance: If yours is an existing company whose books you are entering into Tally, Opening Balance would be applicable in circumstances such as when the Ledger is an asset or a liability and if it has a balance in the account as on the date of beginning of books in Tally.

Tally recognises normal accounting principles of debit balances for Assets and Credit balances for Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have balances. Tally, however, permits you to give balances even for such accounts - You may be transferring your books on to Tally in the middle of the year and may not have closed them in your earlier system. Hence, you may specify whether the balance is Debit or Credit. Simply D or C also would suffice.

Note: use CTRL+A at the field following which the information is other fields do not need to be changed.

4. Maintain Balances Bill-by-Bill: Set this option to Yes, if you wish to give a Bill-by-Bill break-up of the Ledger balance for Sundry Debtors and Sundry Creditors group including the opening balance. You may allot any number of bills. The option here would also determine the ability to track transactions according to Bill references. The Bill-by-Bill concept in transactions would be discussed in detail in the Vouchers chapter. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and pressing Enter, the Bill-wise-Breakup screen of the Ledger created is displayed.

A Brief explanation on each of  the fields in the Bill-wise breakup screen follows:

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