How to create a ledger in Tally

 

Introduction

It is very much easy to create a ledger in Tally. There are total 2 major ways to create a ledger in Tally. One way is to create a Single Ledger and another way is to create it with Multiple Ledgers. When you need to create 1 or 2 ledgers, you can create it with the help of Single Ledger option. On the other hand, when you need to create more ledgers such as 100 ledgers or more ledgers, you can create it easily with the help of an option called Multiple Ledgers. Let us look at both the methods – 1. Single Ledger Method and 2. Multiple Ledger Method

Single Ledger Method

From Gateway of Tally, go to Accounts Info


Then go to Ledgers


Now, under Single Ledger, select the option Create


You will see a simple Ledger Creation window in which you will have to enter certain details about the ledger


Name – The first option is the Name of the ledger. Enter the name of the ledger, for example, Furniture A/c or Building A/c or any person’s name 

Under – Every ledger requires a group to operate in. For example, Furniture A/c and Building A/c will be under Fixed Assets group as they are both Fixed Assets. You have to select a group that is required as per your ledger

Inventory values are affected – If you have a ledger which requires inventory or in simple words, stock to be maintained, set this option to Yes. For example, you are selling sim cards, your ledger will be Sim Cards. There must be a quantity to sell i.e. stock or inventory and so you must set Yes to Inventory Values are affected.

Mailing Details – You have to fill in the mailing details like Name, Address, Country and Bank Details for the ledger. It is for the ledgers such as debtors and creditors which require these kind of details. Ledgers such as Furniture or Building do not require these details because they are not humans and therefore they do not have any mailing details.

Tax Registration Details – Similar to mailing details, these details are also of people and not for ledgers like furniture, building etc. Tax registration details include PAN which is required on any tax related documents.

Opening Balance – This is the opening balance of the ledger if any. Any balance of the ledger which is being carried forward from the previous year will have to be entered as the opening balance. This was the last step which was required to create a ledger under Single Ledger Method.

You can simply press ALC consecutively and create a single ledger.

That is the shortcut for creating single ledgers in Tally.

·         From Gateway of Tally, go to Accounts Info.

·         Go to Ledgers.

·         Now, select Create under Single Ledger.

·         Create a ledger by your name and it will be under Capital Account


Now, we will alter the opening balance of Cash Account, since Cash Account is by default 

created in Tally. So to alter it, you need to come one step back to ledgers menu in the above 

process.

·         Instead of Create under Single Ledger, select Alter.

·         Select Cash from the List of Ledgers.

·         Go down to the Opening Balance section and put the amount to ₹2,00,000.


Now, go the Balance Sheet from the Gateway of Tally and see how it looks. Look the 

capital account on the left hand side of the Balance Sheet which is with my name. On the 

right hand side which is called the Asset side, there is cash. The detail will show if you 

click detailed button on the right hand side:


After click on Detailed button, the window will be shown as under:


·         Left Hand Side = Liabilities Side = Capital = ₹2,00,000

·      Right Hand Side = Assets Side = Cash = ₹2,00,000

You brought in cash in the form of capital and hence cash and capital are both increased by ₹ 2, 00,000. This is the most basic form of balance sheet. It is just an example. Now, in real life a person has certain assets and liabilities as well. For example, generally a person has some assets like a vehicle and a house, some investments like LIC, mutual funds and stock market and some amount in bank account also (especially after demonetization). The above was just the assets side. There will be certain liabilities as well. It can be a housing loan, any kind of payment remaining unpaid like – house rent, amount payable to stock broker and so on.

Multiple Ledger Method

Like single ledger, it is extremely easy to create multiple ledgers in Tally. The process is almost same as single ledger method. Only one step is different. Major advantage of this method is that you can create many ledgers in a very short amount of time. The reason we use multiple ledger creation is because if there are 100 ledgers which we need to create fast then this option will be faster than single ledger creation option.

From the above method, when you go to Ledgers, you will have the option of Multiple Ledgers. Under that, you have to select Create


You will see a Multi Ledger Creation screen like in the image below


There are not many options as there were in Single Ledger Method.

Under Group – This option is similar to the Under option under Single Ledger Method. But under this method, it works a bit differently. If you select the group on the top as shown in the picture above then you will not have to select the group every time you create a ledger. This works well if you want to create ledgers under only one group.

Creating Ledgers under only One Group

For example, you want to create ledgers under Fixed Assets such as Table and Building, it will be as shown in the picture below


As you can see, I have selected Fixed Assets as the group for the option Under Group. Therefore, when I enter the ledger name, Tally will automatically select the group as Fixed Assets and I only have to enter the amount for opening balance.


You can also see the video regarding 'How to create a ledger in Tally'


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