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In this session ,You will learn how to create ledger in Tally ERP9. Before doing that we must know;
What is a ledger?
Transactions in the journal book summarised and transferred to a book called Ledger. or Transactions of similar nature brought together chronologically in a place is called Ledger. The summary or balances of Ledger is used to prepare Financial statement like profit and loss account & balance sheet.
The following are some types of Ledgers
- Asset Ledgers : – Furniture Account, Machinery Account , Vehicle Account ,are the examples of Fixed Asset Ledger, Sundry Debtors, Cash in Hand, Stock in hand, Prepaid expenses are some of the examples of Current Asset.
- Liabilities Ledgers : Long term bank loan Account ,Debenture Account are the examples of Non current liabilities Account. Sundry creditors, Short term loans Account, Advance Account, Bank OD Account, Tax Payable Account, Insurance Payable Account are the examples of Current Liabilities Account.
- Expense Ledgers : Communication Expense Account, Printing &Stationery Account, Postage and courier account, Salary Account are the examples of Expense Ledgers.
- Revenue Ledgers : Sales Account, Rent account , Consultation Fess Account are the examples of operating revenue ledgers. Bank Interest received account is one of the examples of non operating revenue.
How to Create Ledger in Tally ERP9
Now lets move on to Tally ERP9. Tally gives you dual options to create ledger, one is single mode of ledger creation and the other one is multiple mode ledger creation. Single ledger creation means, create single ledger from the ledger creation screen at time. Where as multiple mode means, you can create more than one or many ledgers at a time. Single mode is less faster but more advantage than multiple mode. You can activate all available options in single mode , but Multiple mode is faster but less advantage than single mode.
Tally ERP9 has two pre-defined ledgers , 1) cash 2) Profit & Loss Account.
All ledgers have to be classified in to Group based on its nature.
Lets Create the following Ledgers.
Mr.Anils Capital – Under Capital Account.
Sales – Under Sales Account.
Printing & Stationery Account – under Expense
To create Ledgers, Go to
Gateway of Tally >Ledgers>Create
Here is the Graphical representation of Menu Navigation.
Instead of selecting a menu and pressing enter, We can Use Hot keys ‘A-L-C‘ for navigation to Ledger creation.
The Ledger creation screen may varies depending on the options activated under F11 Features & F12 Cofiguration.
Inside the Ledger Creation You will have the following options.
Name: Here you should types the name of Ledger.
Alias: Alias is the alternative name for the ledger, You can use both the names for accessing a ledger. You can skip this field, This is not a mandatory field.
Under:Select the groups in which the ledger falls under.Here based on the nature of ledger you should select the group in which the ledger falls under. For example for Printing & Stationery fall under the group is indirect expense, Sales Account falls under Sales Account Group , Wages Account to employees under group Direct expense etc.
Inventory Values are affected ?:If set Yes you need link inventory with accounts.
Under mailing details, enter name and address,Country, state,Pincode & Provide Bank details if you are creating a person’s or companies account.
Opening Balance: Enter Opening balance if any for the ledger. This will occurs only if you are migrating from other accounting system to Tally ERP 9. like manual accounting to tally or migrating from other accounting software to Tally ERP 9.
Create Capital account in tally example
Name : Anil’s Capital
Under : Capital Account, Basically capital is liabilities to the business, but tally erp 9 sub categorised liabilities to capital account group.
Enter Mailing details like Addess,Country,state,Pincode as shown in below figure.
Provide Bank Details : You can provide the bank details if required, This option is useful when you are creating Party Ledgers like Sundry Debtors Ledger, Sundry creditors Ledger etc.
Tax Registration Details :
PAN/IT NO:Enter PAN Number If required, This is specifically useful for Party ledgers like Debtors/creditors Account.
Set/alter GST details :This is also useful for party ledger.
Enter the opening balance if any : If you are moving from manual account or from other accounting soft wares to tally software opening balance may exists.
See the below screen shot of ledger creating
At the top right corner you will find a box ,Total opening balances. This box will help you when you are entering previous year balance sheet in a new company for next financial year, Your debit and credit must be tallied as per your balance sheet. When you completed creating all ledgers with opening balance, Any difference in opening balance is telling you something is wrong .Some times the amount typed may wrong or you may have missed out to create a ledger in balance sheet etc.
F12 Configure in ledger creation
You can add some advanced options in tally erp 9, By pressing F12 from ledger creation screen. If you need anything more in ledger creation screen activate those by typing Yes in the appropriate box.
Example 2 Sales Ledger Creation.
Lets create another ledger account called sales account for entering sales transactions, Let’s Name it Sales Account
Name : Sales
Under : Sales Account
Inventory Values affected : Normally this is YES , Because when you sell a product it will affect the stock or inventory of a company, If you do don’t want to affect inventory or stock register, Provide NO here.
Is GST Applicable : This option will visible only if you activated GST for GST compliance under F11: Features > F3: Statutory Features. Give Yes if required else NO
Set/alter GST details : Activate only if you want to define GST rate only at ledger level. You will learn more about this at GST Section
Type of Supply : Two options are available, Goods and services , select the one your business is dealing with.
In sales ledger creation,the cursor skips Mailing details,
Provide Bank details : No ,This is not important here.
Enter the opening balance if any. See the final screen shot of sales ledger creation.
Hit Enter after you entered all options and save the screen.
Lets take one more example for learning ledger creation in tally erp 9.
How to create expense Ledger in tally erp 9 ?
Each type of ledger creation screen is different in tally erp 9, This time we can create Printing and stationery Ledger in tally. Printing and stationery Ledger Is an indirect expense to the Company Lets check how an indirect expense ledger is produced with tally.
Name : Printing & Stationey
Under : Indirect Expense
Inventory Values affected : You can set this YES if you want this ledger is affected to your stock values. For example if you want to keep the stock of stationery items you purchased. Each time when you enter a payment voucher with this ledger tally will show the inventory allocation screen. But in 99 % of cases this option set to NO.
Opening balance : enter the balance if any
The image will give you a clear picture about ledger creation of expenses.
Hope you got a clear idea about how to create ledger in tally erp 9