You may have realized that accounting packages usually have almost the same functionalities.
A simple such functionality is the setup of accounts. Usually, for Tally, we usually have two major types of classes, i.e. GROUPS and LEDGERS.
Groups – are usually the larger class in the two. For example, a group called FIXED ASSETS is usually a group that contains all the ledgers that relate to fixed assets.
A point to note here is that you cannot post an entry into a group.
Ledgers -these are usually classes that hold the transactions that you record in Tally. Usually, when creating ledgers, you have to select the group under which the ledger is going to be classified.
An example of a ledger is Motor Vehicle which is a fixed asset.
Now we are going to look at how to create ledgers in Tally. Once you open Tally, go to the top right corner of Tally, and click on the select company. Select your company file.
- Once you select your company file, this opens the GATEWAY OF TALLY. (This is the quick access menu to Tally)
- Look for the Accounts Info option, or simply click on letter A in your keyboard (Shortcut)
- This will take you to the Accounts Info menu. Select either Groups or Ledgers depending on what you want to create.
- This opens two options, Single Group / Ledger and Multiple Groups/Ledgers.
- Under each option, there are three options: Create, Display and Alter.
- If you want to create a single Group/Ledger, then select the Create under Single or if you want to create Multiple Groups/Ledgers, then select Create under the multiple sections.
- Once you click on Create, this will open the section where you fill in your details as follows:
Under Groups, you have the following sections:
- Name – this is the name of the Group
- Under – this is the class under which the group will be classified e.g. Receivables are going to be under the Current assets option.
The other options are yes/no selections. Select either yes or no depending on your company requirements.
Under ledger creation, the following sections are supposed to be filled:
- Name – this is the name of the ledger account
- Under – this is the group under which the ledger is going to be under – e.g. Customer A under Receivables
- The other sections are optional, you can either fill them or not depending on your requirements.
This is the simple process of ledger/ group creation in Tally.