Ledger Creation in Tally

Ledger Accounts Creation

Once you have created all the Accounts Groups, you are now ready to make entry for Ledger Accounts. To do, first arrange the Ledger Accounts and note down which ledger account is to be placed under which Group. Previous year’s Final Accounts may also be of help. There are two Reserved Ledger Accounts, Cash and Profit & Loss a/c. that are created by Tally 9 when you create a Company which you can not delete nor you can move them under any other Group.

Single Ledger Creation
Ledger Creation
Name: Type the new Ledger’s name here. Duplicate in name is not permitted.

Alias: Alternate names for you ledgers. This is optional.

Under: Select the Group under which this Ledger Account falls. You will get a pop-up window from which you can select the appropriate Group. To create a new Group press ALT+C which will bring Group Creation Screen. When you have created the Group, cursor will return to this place accepting newly created Group as default.

Opening Balance: Enter the opening Balance as on the date of Books Beginning From. Normally the Opening Balance of Revenue Accounts will be Zero unless you start from middle of the Financial Year. If your books begin at mid-year i.e., dates fro Financial year from and Books beginning from are different, enter closing balance of previous date as opening balance here for all capital and Revenue accounts.

Cr/Dr: If opening Balance figure is not zero, specify whether the amount is Debit or Credit.

Mailing & Related Details

If you have set Yes o ‘Allow Addresses for Ledger Accounts’ under F12: Configure, you can enter Mailing & related details for Ledger accounts under Sundry Debtors, Sundry Creditors, Branch/Divisions, Loan, Loan & Advances groups.

If you have set Yes at the ‘Use Contact Details for Ledger Accounts’ Under F12: configure, you get additional prompts to input Contact Person, Telephone, Fax Numbers etc.

Advanced information

If you have set Yes to Allow Advanced Entries in masters under F12: Configure, you get a screen with options configured by you.

Maintain balances bill-by-bill?

If you have set Yes in F11: Features to Maintain bill-wise details, then this option appears

  • While creating any ledger placed under Sundry Debtors or Creditors Group, you may specify yes to keep bill-wise details for the ledger
  • Similarly, you can specify Yes to other ledger accounts also, if you had specified Yes to For Non –Trading A/c also in Accounting Features under F11: Features

Specify No, when you do not need to maintain bill-wise details of outstanding balance but like to get ledger balances only. The input becomes simpler and you do not have to enter the bill-wise details of the Opening Balance as described below.

If you have specified Opening Balance and have opted for bill-wise details, then you may specify bill-wise details of Opening Balance in the popup box where in first field you enter date of Bill, next enter Bill Reference, Credit Days/Due Date in next field, amount of Bill outstanding and Debit or Credit in the last field. You may however, leave the full or part of the opening balance amount as On Account.

Cost Centres Applicable?

You get this option if you had set yes to Maintain Cost Centres in the Accounting Features under F11: Features. You may selectively specify Yes (or No) to the respective ledgers where you want to allocate the amount to Cost Centres/Cost Categories.

Inventory Values are Affected?

Specify Yes to ledgers like Sales / Purchase which affect Inventory. If any duty of Direct Expenses affects your inventory, you may set to Yes for such ledgers.

Percentage of Calculation

If you have set Allow Invoicing in the Accounting Features under F11: Features and if the Ledger is placed under Duties & Taxes Group or any other Group for which you responded to yes to the Query Used fro Calculation? Then you may specify the rate of Tax (%). On specifying rate, you have to select the Method of Calculation from the list of Types of Duties.

  • Additional Duty
  • On Total Sales
  • Surcharge on Tax
  • Tax based on Item Rate

Additional Duty

Under F11: Features, if you disable Excise Rules, Additional Duty and Surcharge on Tax functions similarly. If enabled, Additional Duty is added to the Tax based on Item Rate in the Invoice to reflect the Total Duty Payable.

On Total Sales

As the term suggests, this type of Duty will be calculated on the Total value of individual items ignoring the rate of Duty specified for each item in Stock Item Master.

Note: If you have responded yes to the question Calculate Tax on Current sub-total? In the Invoice/orders settings under F12: Configure, then the calculation will be on current sub-total and if set to No, it will calculate on Total value of Inventory Only.

Surcharge on Tax

A surcharge is treated as a percentage of the duty levied and is computed on immediately preceding entry. The Tally software presumes that the preceding line in the Invoice is the Duty on which surcharge is to be computed. This is suitable for taxes or duties like of Additional Excise Duty that is computed on the Tax (or Duty) amount.

Tax Based on Item Rate

If rate of Tax or Duty is directly associated with items which again differs from item to item, this type of Duty will be most suitable.

While creating Stock items, you get a field to specify Rate of Duty, where you may specify rate of Duty applicable for the Item.

When you select this Type of Duty for the Ledger, while preparing Invoice the rate of duty specified in each item will be picked up and computed. If more than one rate of Duty is applicable in single Invoice amount for similar rate of duty will be clubbed.

During Invoice Entry, the Tally software will automatically compute the Tax/Duty at the specified rate as per specified method which can however be modified.

Activate Interest Calculation?

This prompt appears if you responded Yes to the question Activate Interest Calculations? At F11: Features for the Company. If your response is Yes to that question, you will get another question: Use Advanced Parameters? Giving Yes will activate Advanced Mode and No will restrict to Normal Mode.

Here is the complete tutorial on Tally 9 Interest Calculation

Effective Date for Reconciliation:

When you create any Ledger under Bank Accounts (or Bank OCC) Group, this prompt appears displaying books beginning date as default. Enter here the date from which you want to reconcile the Bank Accounts.

Specifying Closing Stock Value

In Case of creating new ledger Accounts under stock-in-hand, you can enter only Opening Balance. You should enter figures of closing stock through Alteration mode which allows you to specify date and closing balance for that date.

Note: Date wise closing Balance is available only in Ledger Alter menu only. Once you create the stock ledger. Go to alter select the ledger and give closing stock values.

If you maintain non-integrated accounts, Balance Sheet as on this date will reflect the closing balance that you specify here. However if you maintain integrated accounts, you can not enter closing stock value through this option.

Credit Limit

For Ledger created under Sundry Creditors, Sundry Debtors and Branch / Divisions you get additional option ‘Set credit Limit:’ you can specify the credit limit amount for such ledegers.

Default credit period (in days) will be asked for these ledgers if you have given yes to Maintain balances bill-by-bill?


In this option you can change the contents of any existing ledger.

Note: To enter opening balance in an of the built-in ledger Accounts (Cash A/c, Profit & Loss A/c) select the Ledger in Alter mode and type opening balance.

To Delete a Ledger, first select the ledger from the pop-up in Alter mode, then press ALT+D keys, a confirmation box will appear. To confirm, press Y, the item will be deleted. However, if any voucher has been placed under the ledger, it can not be deleted as long as any Voucher is associated with the ledger. If you still want to delete the Ledger, list the vouchers which are associated with the Ledger through and option in Display mode, alter the voucher or delete the voucher. When there is no voucher contain the ledger to be deleted, you will be permitted to delete the Ledger. This Deletion concept applies to all masters.


Geetha said...

How enter Opening balance of Bank a/c for reconciliation

Learn Tally online said...

Thank you for advice about tally

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