Summary of Post
Ledger creation is the preliminary steps to start with Tally ERP 9 just after creating company. 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 “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.
Quick Guide on Creating Ledgers
Those Who are in Hurry, Please use below quick guide to creating Ledger.
- Go to Gateway of Tally>Account Info>Ledger>Create
- Enter Name of The Ledger
- Enter alias ( additional name ,code or nick name) if any .This field is not mandatory.
- Select the appropriate group in “Under” Filed.
- Inventory Values are affected : If you want the ledger affected in inventory select Yes else No
- Provide Mailing Details if you are creating party ledgers like Sundry Debtors, Sundry Creditors
- Provide Bank Details if it is a party ledger.
- Enter Tax registration details PAN/IT No etc.
- Press Enter and accept the screen, A new ledger will have created in Tally database.
Further Reading :
Now lets have a detailed study on creating ledgers.
Tally create a company with two pre-defined ledger
- Cash Account – Grouped under cash-in hand
- Profit & Loss Account -Grouped under Primary ,Here you cannot change the group of profit and loss account.
How to create ledger in tally
Go to Gateway of Tally> Accounts info>Ledger>Create
Ledger creation screen will look like this.
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. If you tried to create a ledger already existing with same name ,tally will warn you “Duplicate”.
Ledger creation Advanced
There are some advanced settings in ledger creation screen. To activate some advanced options click on F12 Configure button from ledger creation screen, Ledger configuration screen will appear. By default two options are already activated.
Rest of the options you can activate manually by typing YES in the box provided on the right hand side. If you activate all the options, the ledger creation screen will look like this image.
Ledger creation example
Let’s create another ledger of bank loan account.For example ICICI Bank A/c 100005456. This bank loan account can be created as follows.
Name: ICICI Bank A/c 100005456
Alias: 5456 (code number)
Under : Secured Loans
Example 2: Create a sales ledger naming Local sale
Here is the screen shot of sale ledger creation screen.
View created accounts/ledger
Viewing of ledger accounts is, just have an overlook on created ledger information. This is an extra function of Tally ERP 9 Under Ledger option. Nothing to do with this option.But you should know what is this option is.That’s all.
Go to Gateway of Tally>Account info>Ledger>Display
Select the ledger account to see. Ledger display screen will be in front. You cannot modify anything from this screen. Here is the view of ‘Depreciation Ledger ‘ I have created earlier.
Edit or alter an account.
There certain situations we need to modify existing ledger created.For example changing of name, Or you might be chosen wrong group in under field. or mis-typed address, phone numbers, PAN Numbers etc. In such case you will have to modify existing details.To do modifications /Editing of ledger go to;
Gateway of Tally>Accounts info>Ledger>Alter
Ledger alteration screen will appear, press enter key to move forward and Backspace to move backward through the screen.
Make necessary changes and save the screen.
Delete a ledger in tally
Let’s learn how an account can be deleted. Tally does not permit to delete an account with transactions. That is if you have entered any voucher using the ledger, that ledger cannot be deleted. If you want to delete a ledger with transactions, You need to remove or delete those transactions.
To delete an account go to the following screen
Gateway of Tally>Account info>Ledgers>Alter
Select the account to be deleted. For example we want to delete the ledger’ICICI Bank A/c 100005456′ that we have created in above example.
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. Hope you got a clear idea about creating ledger, Display ledger, Edit ledger and Delete Ledger in Tally ERP 9. Please do share and like this post if you like.