TALLY PRIME NOTES(CREATING AND MANAGING LEDGER

ACCOUNTS)

CREATING AND MANAGING LEDGER ACCOUNTS

Create, Alter, and Delete Ledgers

A ledger is a date-wise record of all the transactions related to a particular account such
as cash, sales, purchase and so on. Learn about the predefined ledgers in TallyPrime,
and along with that learn to create ledgers for different contexts. After you create the
ledgers, you can alter or delete them. You can track the altered or deleted ledgers.
Finally, you can learn to view the report showing the transactions of your ledgers.
In TallyPrime, there are two predefined ledgers, Cash & Profit and Loss accounts. Apart
from the predefined ledgers, you can create as many ledgers as required for your
business. You can create the ledgers before recording the transactions. In case you
come across a new expense head or a new debtor or creditor while recording the
transaction, then you can also create the ledger while you are recording them. Apart
from creating a ledger, you can also alter or delete them as per the need.

Predefined Ledgers in TallyPrime

In TallyPrime, there are two predefined ledgers, Cash & Profit and Loss accounts. You
can record all the cash-related transactions using the Cash account and the Profit and
Loss account reflects the previous year’s profit or loss as the opening balance of the
ledger.

Cash Ledger Cash Ledger

The Cash Ledger is grouped under the

Cash-in-Hand group.
The Profit and Loss account ledger is
grouped under the Primary group.

You can enter the opening balance as on The profit or loss from the previous year is
the books beginning day. carried forward as the opening balance of
 the ledger. It is shown in the balance
sheet under liabilities.

This ledger can be altered and deleted. This ledger cannot be deleted but it can
be altered

Create Ledgers in TallyPrime

You can create ledgers in different contexts such as from an account master,
transaction, or report as per your preference. If you are aware of the ledgers to be
created before recording the transaction, then you can create them in the account
master. Similarly, you can create the ledgers while recording the transaction, if you
come across any expense or party ledger which was not created earlier. You can create
ledgers with basic details and later you can add the details as and when it is available.
Ledgers are created under specific groups depending on your business process. For
example, you can create a Bank ledger under Bank Account, a Sales ledger under
Sales Account, or a Tax ledger under Duties and Taxes. Similarly, you can create a
Party ledger under Sundry Creditor or Sundry Debtor depending on your sales and
purchase needs.
In this section

● Create a Ledger
● Create a Ledger from Transactions or Reports
● Create a Ledger under Primary groups
● Create a Tax Ledger

Create a Ledger
Once the company is created, you can create ledgers to account for the expenses,
incomes, assets and liabilities of your business. In TallyPrime, you can create ledgers
one at a time or create ledgers in one go.

Step-1 Press Alt+G (Go To) > Create Master > type or select Ledger and press Enter.
Alternatively, Gateway of Tally > Create > type or select Ledger and press Enter.
Step-2 Name: Enter the name of the ledger account you want to create.
You cannot create two ledger accounts with the same name.
Step-3 Alias: Enter the alias of the ledger account, if required. You can access the
ledgers using the original name or the alias name.
Alias is the alternate name for the ledger accounts. You can create Alias at the time of
creation or also can modify the respective ledger later. While selecting the ledger, you
can choose the Alias name and the same ledger account gets selected.
Step-4 Under: Enter the group from the List of Groups under which the ledger is
created.
All the ledgers must be grouped correctly to record the transaction under the proper
heads. For example: If you are creating a ledger for Office Expenses, then you need to
create the ledger under the Indirect Expenses group.
Step-6 Note: To create a new group from this field, press Alt+C. You can alter a ledger
account to change its group classification at any time.
Fill in the other necessary details such as Mailing Details, Banking Details and Tax
Registration Details.
Step-7 Opening Balance: Enter the carry forward balance from the previous year as
the opening balance.
Opening Balance is applicable when the ledger is an asset or a liability, and also if it has
a closing balance in the account at the end of the period.
Single-ledger-creation
Step-8 As always, press Ctrl+A to save.

Create a Ledger from Transaction

While recording a voucher, you may come across certain expense or income heads or
any other ledger which is not created earlier. Instead of going back to Gateway of Tally
to create the ledgers, you can create those during voucher creation from all the voucher
types available in TallyPrime. From the transaction, you can create ledgers for all the
masters. Depending on the screen on which you are pressing Alt+C, TallyPrime
understands which is the master you want to create and therefore it opens a
corresponding creation screen.
● From the Voucher Creation/Alteration screen, press Alt+C in the field where you
want to create the ledger.
● The Ledger Creation (Secondary) screen appears.
● Create the ledger.
Create a Ledger under Primary groups
Ledgers can be created under the 28 predefined groups but you may not want to create
the ledgers under these 28 predefined groups. In such cases, the ledgers can be
created under Groups created under the Primary group. While creating the group under
Primary Group, you need to select the Nature of Group between Liabilities, Assets,
Expenses and Income. As per your selection, your group and the ledgers mapped
under that group get classified between Balance Sheet items and Profit & Loss account
items.

Below is the procedure for creating a ledger under the group created for expenses.

● In the Ledger Creation screen, in the field Under, select the group from the List of
Groups created already or create a group under Primary group.
Select Create from the List of Groups, to create a new Group.

● In the Group Creation (Secondary) screen, create the group under Primary and
select the Nature of Group as Expenses.
 ● Press Ctrl+A to save the Group Creation (Secondary) screen.
● Fill in the other necessary details and press Ctrl+A to save the ledger.
Similarly, you can create ledgers under groups created for Liabilities, Assets and
Income.
Creation of Tax Ledger
Tax Ledgers in TallyPrime should be created under the Duties & Taxes group which
contains all tax accounts like GST, VAT, CENVAT, Excise, Sales, and other trade taxes
and total liability.
1.In the Ledger Creation screen, specify Duties & Taxes group in the field Under.
2.Enter other details as below.
a.Type of Duty/Tax: Select based on statutory compliance applicable to your
Company. For Indian statutory, Others is displayed by default.
b. Percentage of Calculation: Select the rate of tax e.g. 5%, 10%, 12.5%, as
applicable.
Once you select Percentage of Calculation, the Method of Calculation field appears.
c.Method of Calculation: Select the tax calculation method from the Type of Duty list.
i.Additional Duty: If there is another tax ledger and you want to calculate tax on that
tax value then you need to select this option.
ii.On Total Sales: This method is used to calculate tax on the total item value in the
invoice.
iii.Surcharge on Tax: It is similar to Additional Duty, the difference is it is used for the
purpose of Income Tax.
iv.Tax based on Item Rate: This method is used to calculate tax based on the Item
rates specified on the items.
d.Rounding Method: Select the Rounding Method to round off the tax values.
For example:
For duty value 123.33 and rounding Limit is 1. In this case:
● Downward rounding shows as 123.
● Normal rounding shows as 123.
● Upward rounding shows as 124.
For Duty value 125.55 and rounding Limit is 1. In this case:
● Downward rounding shows as 125.
● Normal rounding shows as 126.
● Upward rounding shows as 126.

3.Fill in the other necessary details and press Ctrl+A to save the ledger.
Alter and Delete Ledgers
After you create the ledgers as per your requirement, you can alter the details of such
ledgers. You can even alter the group under which the ledger was created. Apart from
altering the ledger, you can also delete ledgers which are not required. You can alter or
delete ledgers one at a time or in one go. You can alter or delete the ledgers and other
masters from the Chart of Accounts as well. Using a Chart of Accounts, you can alter
multiple masters in one go and delete masters from a single screen.

In this section
● Alter the ledger
● Delete the ledger
● View Edit Log for ledgers
Alter the ledger
After you create the ledgers, you may want to update certain details. For
instance, you may update GSTIN/UIN or the Mailing Details, based on the
information you receive from your customer or vendor. In TallyPrime, you can
alter the details in the ledgers and use them as needed. You can alter the ledger
one at a time or you can also alter multiple ledgers from the Multi Alter screen in
the Chart of Accounts. However, you cannot alter all fields of ledgers through the
Multi Alter screen

Step-1 Press Alt+G (Go To) > Alter Master > type or select Ledger and press
Enter.
Alternatively, Gateway of Tally > Alter > type or select Ledger and press Enter.
The Ledger Alteration screen appears.
Step-2 Alter the details, as required, and save the ledger.
You can alter any information provided in the ledger master with the exception of
the closing balance under the group Stock-in-Hand.

Delete the ledger

You can also delete ledgers from your Company Data if you are no longer using
the ledgers or you have accidentally created any ledgers. You can delete ledgers
one at a time or delete multiple ledgers from the Chart of Accounts. To know
more, Click here.
However, there are certain situations where deleting a ledger has the following
dependencies.

● You cannot delete a ledger that is already used in a voucher. Therefore,

you need to first delete all the vouchers related to the ledger and then
delete that ledger.
● You cannot delete a ledger that is referenced in any voucher class,
configurations, or other masters. You need to remove the references of
the
ledger from all such cases, before deleting that ledger.

View Edit Log for Ledgers

You may be making changes in the ledgers as per your requirement. Edit
Log tracks all such changes made by you. You can view the details of
 changes made in the selected version of the ledger as compared to its
previous version which TallyPrime highlights in red text. Similarly, you can
drill down to any version and view the comparison between it and its
previous version. If you drill down on a deleted Ledger from the Chart of
Accounts, then the Edit Log report opens.

If you want to enable Edit Log in TallyPrime, then refer to the Create a
Company section in the Setup Your Company topic.

You can view the altered or deleted ledgers from the Chart of Accounts,
refer to Validate Changes and Deletion of Masters.

Step-1 Open the required Ledger.

Press Alt+G (Go To) > type or select Chart of Accounts and press Enter >
select Ledger and press Enter.
The Ledger Alteration screen appears.
Step-2 Press Alt+Q (Edit Log).
Alternatively, press Ctrl+O (Related Reports) > Edit Log and press Enter.
The Edit Log report displays the Version, Activity, Username, and Date &
Time.

Ledger Vouchers Report

You can view a ledger account with the corresponding voucher details and view this
report in browser too. TallyPrime provides you with the option to configure your ledger
vouchers report by using the Basis of Value. You can view Debit or Credit entries,
include post-dated vouchers, or include Opening Balance. TallyPrime also allows you to
change the view of your report, you can view it in the columnar, daily breakup, or
monthly summary and save the preferred view.
Step-1.Open the Ledger Vouchers report and select the period.
a.Press Alt+G (Go To) > type or select Ledger Vouchers and press Enter.
Alternatively, Gateway of Tally > Display More Reports > Accounts Books > Ledger and
press Enter.
Select the required Ledger.
b.Press F2 to change the period as required.
A sample Ledger Vouchers report appears as shown below.

Step-2 Press Ctrl+B (Basis of Value) to view the report with either Debit or Credit
Values, including post-dated vouchers or the opening balance.
You can also view Altered and Unaltered vouchers.

Cumulative balances or running balances for Ledger Voucher report

You can configure your Ledger Voucher report to show the cumulative or running
balances.

Step-1 In the Ledger Vouchers screen, press F12 (Configure) > set the option
Show Running Balance to Yes to see the running balances for the Ledger
Voucher report
Step-2 Press Enter to save the changes.
A sample Ledger Vouchers report with a running balance column appears as shown
below.

You can also access Ledger Vouchers reports by drilling down from different
statements, such as Group Summary and Monthly Summary.

View Contact Details for Ledger Accounts

From the Ledger Vouchers report, it is possible to view the contact details of the ledgers
in TallyPrime for reference. You can view the contact details for other ledgers as well
and configure in the ledger creation or alteration screen the option for providing the
mailing details
Step-1 Press Alt+G (Go To) > type or select Ledger Vouchers and press Enter.
Alternatively, Gateway of Tally > Display More Reports > Accounts Books > Ledger and
press Enter and select the ledger for which you want to see the contact details.
Step-2 Select the required Ledger from the Select Item screen appears.
Step-3 Press Alt+S (Contact).
The Ledger Contact Details screen appears.

You can see the Mailing details and the account details on the screen.

View, Print, and Export Opening Balances of all the Ledgers

You can view the opening balances of all the ledgers on a single screen, and share the
same by printing, exporting or emailing them.

Step-1 Press Alt+G (Go To) > type or select Chart of Accounts > Ledger > and press
Enter.
Alternatively, Gateway of Tally > Chart of Accounts > Ledger > and press Enter.

Step-2 Press Alt+H (Multi-Masters) > select Multi Alter > and press Enter.
Step-3 Select All Items from the List of Groups. In the Multi Ledger Alteration screen,
you can view the Opening Balance of all the ledgers which are Balance Sheet Items.
From the Chart of Accounts, you can view the opening balances of each ledger in one
single screen.

Additionally, you can print, export or email the opening balances of all ledgers from Trial
Balance with the necessary configurations. To know more, Click here.