Tally Lesson 2 Accounting masters

Tally lesson 2

Accounting Masters 

What is group in tally? & how to create Groups in tally?

Group is a collection of ledgers of the same natures. Tally software automatically create 28 groups which are used in the chart of account. Out of 28 predefined groups in tally, 15 groups are primary groups and 13 groups are Sub-groups. The different types of groups are

1.     Primary Groups

2.     Sub Groups

Example of Group

Primary Groups: Primary Group in Tally is main group, Groups are structured as hierarchical organization. At the top of hierarchy are primary groups. Among 15 primary groups, 9 groups are balance sheets items and 6 groups are profit and loss a/c items.

List of Primary Groups in Tally

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

Sub Groups: Sub groups are part of primary group, sub groups can be divided into 13 groups.

List of Sub groups in Tally

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

Tally ERP 9 follows the single ledger concept of accounting and this leads to direct contrast to subsidiary ledger accounting. So all financial entries are performed using ledgers or account heads. You can group all ledgers and financial statements can be drawn according to requirements of company.

What is ledger in tally? How to create ledger in tally?

How to create ledger account in Tally ERP 9

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Create

Step 1: From Gateway of Tally Screen, click on accounts info

Step 2: In the next screen, choose “Ledger”

Step 3: In the next ledger screen, choose the option create under single ledger

Step 4: On ledger creation screen, update the following details

§  Name: Enter the name of ledger account, and the name should be unique.

§  Under: Choose the group name from list of group, that pertains to ledger account.

After maintaining all the required details, choose Yes option under Accept to save the configured details in Tally.ERP 9.

How to display single ledger in Tally

After creation of single ledger account in Tally, you view the details of ledger by choosing the option display. Refer below steps how to display single ledger

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Display

Choose the ledger account from list of ledgers

Now the complete details of ledger account display in the screen as shown below image.

How to Alter Single ledger in Tally

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Alter

On select ledger screen, choose the ledger account from the list of ledgers

Now modify/ alter the required details for ledger account and click on A:Accept to save the changed details in Tally ERP 9.

Create multiple ledger

Multiple ledger can be created at a time only for one type of group

Step 1: Goto Gateway of Tally and Choose Accounts Info.

Step 2: Under account info, choose the option Ledgers

Step 3: Click on create under multiple ledgers option to create multi ledgers in Tally

Step 4: On multi ledger creation screen, enter the following details

Under Group: Choose the Group under the list of groups however you can search group by entering the group name in the given under group text field.

Step 5: Under Group: update the following details.

1.     Name of Ledgers: Enter the name of ledger that you like to create in Tally

2.     Under: The under group field will be automatically filled by Tally as Bangalore Debtors ( As we are creating ledgers under Bangalore Debtors).

3.     After entering the details, press enter to continue. You will get messages as Accept: Yes or No, choose Yes to accept the updated details in Tally. ERP 9.

Successfully we have created multiple ledgers in Tally ERP 9.

How to display Multiple Ledgers in Tally. ERP 9

After ledgers are created in Tally application, we can check multiple ledger by choosing the display option.

Path : Gateway of Tally –> Accounts Info –> Ledgers –> Multiple Ledgers (Display).

On select group screen, choose the group name “Bangalore Debtors” from the list of groups.

Now the multi ledger screen displays as shown below.

Note: In this display mode, users are not allowed to modify any changes. For this user are required to choose the alter option.

How to change/ alter multi ledgers in Tally ERP 9

The path for alter multiple ledger is same as create and display. Through this alter mode, you can change the details as per the requirements.

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Multiple Ledgers –> Choose Alter

From the list of the groups, choose the required group name for alteration.

On multi ledger alteration screen, you can update the following details

§  Add or delete the ledgers

§  Opening Balance – Dr/Cr

Press enter and Accept the details to save in Tally.

How to create enable ,alter cost center?

Enable Cost Centre in Tally

Before creation of cost centre in tally, make the following configuration settings to enable cost centre in Tally.ERP 9. By enabling cost centres in accounting features helps you to create cost centres under account info.

Step 1: Go to Gateway of Tally > F11: Features > click on F1 Accounts Features

Step 2: In the next screen, enable the option for Maintain Cost Centres as “Yes”

Click A:Accept to save the changed details in Tally.ERP 9.

How to create cost centre in Tally

Path: Gateway of Tally –> Accounts Info –> Cost Centres.

Step 1: Go to Gateway of Tally and click on Accounts Info.

Step 2: Now click on the option “Cost Centres”

Step 3: In the next screen, under single cost centre option click on the option create.

Note: If you want to create multiple cost centres in Tally, choose the option create under multiple cost centres.

Step 4: On cost centre creation screen, update the following details

§  Category: Tally automatically create primary cost centre where all the cost centres are to be assigned. Primary cost centre is a default cost centre until we create new one. Choose the category as Primary Cost Centre.

§  Name: Enter the name of cost centre.

§  Alias: You can can call the cost centre with other name, for e.g. Head Office, Branch, etc.

§  Under: Update the parent cost centre for this cost centre from the list of cost centres.

After entering the required details for cost centre creation, choose A:Accept to save the details.

How to display Single Cost Centre in Tally

Path: Gateway of Tally –> Accounts Info –> Cost Centres –> Single Cost Centre -> Display

On select the cost centre screen, choose the cost centre  from the list of cost centres.

Now the cost centre displays on screen with details.

On display mode, users are not allowed to modify the details of cost centre. Only Alter mode enables to change cost centre details.

How to Alter Single Cost Centre in Tally.ERP 9

Path: Gateway of Tally –> Accounts Info –> Cost Centres –> Single Cost Centre -> Alter

On select cost centre screen, choose the cost centre from the list of cost centres to edit the details.

On cost centre alteration screen, edit the details and choose A:Accept to save the updated details in Tally.ERP 9 application.

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