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written by | August 30, 2022

How to Use Tally Ledger Groups List and Accounting Groups

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The ledgers that comprise a group are the same. Account groups are used to demonstrate the structure of ledger accounts and to create and display appropriate compliance reports. Users can make legally valid and helpful reports in this manner. Bills are classified as capital or revenue at the highest level, then as assets, liabilities, income, and expenses. Users in Tally have access to 28 pre-defined Tally ledger group lists. In ERP, nine are sub-groups, while 15 are primary groups. Users can create groups that can be subcategorized endlessly to form a virtual accounting tree. The lowest level would be the Ledger Account. All voucher entries are handled using ledgers.

Did you know? 

Ledgers use a T format, with debit on the left and credit on the right. Each side has four columns: date, particulars, reference number, and amount. However, columns for reference numbers are no longer included in the new forms.

What is a Ledger? 

A ledger is the primary account head used in all accounting entries to identify your transactions. Ledger accounts include acquisitions, trades, sales, receipts, and other bills. Without a ledger, users cannot register any transactions. All ledgers must be classified and sorted into groups. 

Also read: Learn How to Enable GST in Tally for your Company - Process

What are the Advantages of a Ledger?

  • Quick Details About a Specific Account: 

A ledger account allows you to see all of the information regarding a specific account, such as sales, expenditures, equipment, and so on, at a glance. For example, if there are numerous dealings with a borrower, the ledger account might provide the net balance owed by the borrower.

  • Control over Business Transactions: 

A complete study of account balances may be done using the retrieved ledger balances, which aids in maintaining control over corporate operations.

  • Trial Balance can be Prepared: 

With the amounts of ledger accounts, a trial balance may be constructed to examine the mathematical accuracy of journal and ledger entries.

  • Helps to Prepare Financial Statements: 

Financial statements may be created using the extracted ledger balances to determine net profit or loss and financial status.

Which is the Best Method to Create Ledger in TallyERP 9?

Users may build ledgers using either the single ledger approach or the multi-ledger strategy, depending on their needs. There is only one significant distinction: users receive more information when creating ledgers using the Single Ledger Method than the Multiple Ledger Method. Since the Multi Ledger Approach does not include alternatives like 

  • Values of Inventories 
  • Mailing Information 
  • Tax Registration Information

Groups in Tally ERP 9

A group is an arrangement of ledgers having similar characteristics. Account groups are utilised to describe and illustrate the hierarchy of ledger accounts to develop and show correct reports. In Tally ERP 9, users may use groups to create information that is pertinent and consistent with the law.

Tally Ledger Group List

Here is the list of groups in Tally:

Primary Group List in Tally:

Tally's primary groups are those with a top-level structure. These 15 Tally ledger group lists contain nine Balance Sheet items and six Profit and Loss Statement items. 

  1. Branch/Division
  2. Capital Accounts
  3. Loans
  4. Suspense Account
  5. Current Liabilities
  6. Current Assets
  7. Fixed Assets
  8. Investments
  9. Sales Account
  10. Indirect Expenses
  11. Indirect Income
  12. Miscellaneous Expenses
  13. Purchase Accounts
  14. Direct Income
  15. Direct Expenses

Also read: How to Download and Install Tally Prime : Step by Step Guide

Sub Groups List in Tally:

  1. Sundry Creditors
  2. Stock in Hand
  3. Duties & Taxes
  4. Unsecured Loans
  5. Reserves & Surplus
  6. Secured Loans
  7. Deposits
  8. Banks OD Accounts
  9. Provisions
  10. Sundry Debtors
  11. Bank Accounts
  12. Cash in Hand
  13. Loan & Advances (Assets)

General Information of Ledger Groups:

A Tally ledger group list can contain any number of ledgers. It is feasible to streamline the duties involved in the numerous General Ledger Accounting procedures and activities. Users, for example, can post to many ledgers simultaneously. Further, each instantly establishes a ledger group with the same name and is used for single Ledgers. Only the ledger groups users want to process simultaneously must be defined in a function that utilises processing for multiple Ledgers. All Ledgers are handled automatically if no ledger group is entered. As a result, users are not needed to create a ledger group for every Ledger. Keep in mind that extension ledgers cannot be included within ledger groups.

Representative Ledger of a Ledger Group: 

When the Tally ledger list group is defined, one of the assigned ledgers must be chosen as the representative Ledger for each ledger group. To identify the posting period during posting and to confirm that the posting period is open, the system commonly employs the standard Ledger. The posting is then made using the correct fiscal year variant for each Ledger to the assigned ledgers of the ledger group. All other allocated Ledgers receive postings when the representative Ledger's posting periods are open, even if they have closed. Alternatively, Users can instruct the system to post transactions using the non-representative ledgers' posting times. See G/L Account Posting for more details.

Criteria for Representative Ledger 

  • The leading Ledger must be chosen as the representative Ledger if the ledger group has a leading ledger.
  • Users must choose one of the assigned ledgers to serve as the representative Ledger if the ledger group does not already have a leading ledger. The system uses the fiscal year variant of the company code during posting to verify that the choice was made correctly:
  • Any ledger can be chosen as the representative if every Ledger in the Group has a fiscal year variant that differs from the business code.
  • Users must identify a ledger as the representative Ledger if it has the same fiscal year variant as the company code as part of the ledger group.

Current Assets in Tally:

Current Assets: Assets that do not fall under the Cash-in-Hand or Bank Accounts subgroups are listed as Current Assets. Various types of current assets are following

  • Tally ERP 9 creates the Cash A/c for this Group automatically. Users can create different cash accounts if necessary.
  • A Cash-in-Hand account or a Bank Accounts/Bank OCC Account group account is printed separately and is not included in the Ledger.
  • Deposits (assets) comprise fixed deposits, security deposits, and other deposits the firm makes.
  • Loans Asset keeps all loans, non-trading advances, and even advances for acquiring fixed assets. Tally does not recommend that Users create an account for advances to suppliers in this Group. 
  • Stock-in-Hand items comprise finished goods, work-in-progress items, and raw materials. How the balance is handled depends on whether users select the Integrated Account-cum-Inventory option when forming the firm. See the Company Creation section of the established Users Company subject for further details.

Investments:

Sort User’s investment accounts into long-term bank deposit accounts, long-term bonds, government securities, etc. Users can see the overall investments the company has made with the help of this.

Loans (Liability): Loans that a business has taken out are usually long-term.

  •  Tally ERP 9 allows users to select from various bank accounts.
  • OCC Bank Account is utilised to maintain track of the company's bank overdraft funds, including Bill Discounted Accounts and Hypothecation Accounts.
  • A Bank OCC A/c group account isn't included in Ledger and is prepared in the Cash Book manner as a separate Cash Book.
  • Loans secured by an asset, such as term loans, may not consistently demonstrate that the security is absolute. 
  • Credit lines are available with no collateral.

Also read: How to Use TallyERP.9 to Create Tax Classification

Conclusion 

Tally uses groupings or headers to assist it in determining the kind of ledger. It has an impact on the income side, is a cost, or is an item that will bring advantages or returns to the firm, such as assets, or it generates an obligation for the business that must be resolved using the company's current assets.

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FAQs

Q: How do Users define an account group?

Ans:

The account group is a compilation of accounts based on parameters that influence the production of master records. The account group determines the number interval from which the account number is chosen when a G/L account is created.

Q: How many accounting groups are there in Tally?

Ans:

Accounts are categorised at the highest level as Capital or Revenue - and more explicitly as Assets, Liabilities, Income, and Expenditure. Tally. ERP 9 comes with 28 pre-defined Groups. There are 15 Primary Groups and 13 Sub-Groups among these.

Q: What use do groups provide in Tally?

Ans:

The ledgers that comprise a group are all of the same kind. Account groups are used to demonstrate the hierarchy of ledger accounts to create and display appropriate compliance reports. Users can provide legally exact and valuable information in this manner.

Q: What is Ledger in Tally?

Ans:

A ledger is an accounting book or Group of books where account transactions are noted. Each account has a beginning or carry-forward balance, as well as the final or closing balance, and would record each payment as either a debit or credit in distinct columns.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.