Summary of Post
Ledger creation is the preliminary steps to start with Tally ERP 9. Before creating a ledger you should know what is a ledger according to accounting concepts a group of account is called a ledger. Where as an account is a device used to record the effect of transactions on the assets,liabilities and capital of an enterprise. In accounting concepts a book with many account is called a ledger.
In Tally perspective an account itself is called ledger. In Tally ERP 9 Account = Ledger. As per their help documentation says as “A ledger is the actual account head to identify your transactions and are used in all accounting vouchers. For example, purchase, payments, sales, receipts, and others accounts heads are ledger accounts”.
For reporting purpose a ledger is grouped according to its nature. This will help you to know the summary of a specific types of ledger. For example
Tea expense grouped under Indirect expense. Purchase expense grouped under purchase account which is a sub group of direct expense. This will help you to understand the total of Indirect expenses as well as individual ledger total.
Here is the examples of grouping of ledger compared with actual accounting groups.
|Ledger||Group in Tally ERP 9||Group as per accounitng|
|Tea expense||Indirect Expense||Indirect expense|
|Purchase A/c||Purchase Account||Direct expense|
|ICICI Bank Loan||Secured Loan||Liabilities|
|Furniture||Fixed Asset||Fixed Asset|
|Customer A||Sundry Debtors||Debtor|
|Commission Received||Indirect Income||Income Indirect|
In the above example you can find the purchase account is grouped under a new group called Purchase Account in Tally. But in Reporting ( profit and loss account) this will show as direct expense in Trading Account. Which means the purchase group is the sub group of Direct expense.
Read more about types of account.
Tally create a company with two pre-defined ledger
- Cash Account – Grouped under cash-in hand
- Profit & Loss Account -Grouped under Primary
How to create ledger in tally
Go to Gateway of Tally> Accounts info>Ledger>Create
Ledger creation screen will displayed.
The options in ledger creation screen will vary in accordance with the features selected in F11 features and F12 Configuration screen.
Let’s fill the required details
Name: Name of the ledger account for example ‘Local conveyance’
Alias: This is an alternative name; you can enter an alternative name or code number for this ledger account. For Example (IE001)
Under: The group in which the ledger accounts comes under. This is selected in accordance with the nature of account, whether it is an income, expense, asset, liability account. Here this Local conveyance comes under “Indirect expense”.
Opening balance: – Enter the opening balance at the time of entering accounts in tally, leave blank if there is no opening balance.
Now save the screen you are successfully created a ledger.
Tally will not allow you to create multiple accounts in the same name and no need for creating separate account for clients dealing with buy and sell; purchase and sales can enter into same account.
View created accounts
Select the ledger account to see. Ledger display screen will be in front. You cannot modify anything from this screen
Edit or alter an account.
To do modifications of ledger go to
Ledger alteration screen will appear
Make necessary changes and save the screen.
Delete an account
Let’s learn how an account can be deleted. Tally does not permit to delete an account with transactions.
To delete an account go to the following screen
Select the account to be deleted.
Now press delete button from bottom bar or Use key board shot cut Alt+D. A confirmation will be asked.
Confirm by pressing enter, or Y button from key board.
More about tally accounts will follow this lesson. Stay update with our daily news letter