Ledgers and Groups in Tally - Part 1

Ledgers and Groups in Tally - Part I

In manual accounting, accounts (ledgers) are grouped upon preparation of Trial Balance to prepare Final Accounts, namely Profit & Loss Accounts and Balance Sheet, so you don’t get Final Accounts until Trial Balance is prepared. In Tally 9, at the time of creation of Ledger Accounts, you place it under appropriate Account Groups provide you the ability to classify your accounts to get all the statements instantly and properly classified. You can re-group later to suit your requirements.

Tally provides tremendous ability to organize Accounts Ledgers and Groups in a versatile way without any limit on depth of nesting, number of Group and Sub Groups and number of Ledger Accounts that can be achieved with Tally.

Account Groups

By default Tally creates a set of pre-defined Account Groups called Reserved Groups. You can not delete / alter these Groups except the name.

Some of the Reserved Groups are Primary Groups while some are sub-groups to the primary groups. These Groups determine whether the Ledger is a revenue item (effecting Profit & Loss A/C and will appear in the Income or Expenditure side) or capital item (will appear in the Balance Sheet’s Assets or liabilities side). These Reserved Groups are normally sufficient for most of the organizations. However users are free to create any number of Groups and nest up to any level or can also create Primary Group, as required.

Reserved Groups that goes into Balance Sheet:

Liabilities side:
  • Capital Account
  • Reserves & Surplus (Retained Earnings)
  • Loans (Liabilities)
  • Bank OD Accounts (Bank OCC Accounts)
  • Secured Loans
  • Unsecured Loans
  • Current Liabilities
  • Duties & Taxes
  • Provisions
  • Sundry Creditors

Assets side

  • Fixed Assets
  • Investments
  • Current Assets
  • Bank Accounts
  • Cash-in-hand
  • Deposits (Asset)
  • Loans & Advances (Asset)
  • Stock-in-hand
  • Sundry Debtors
  • Branch/Divisions
  • Miscellaneous Expenses (Asset)
  • Suspense Account

Reserved Groups that goes into Profit & Loss Account

Income side
  • Sales Account
  • Direct Income (Income Direct)
  • Indirect Income (Income Indirect)

Expenses side
  • Purchase Account
  • Direct Expenses (Expenses Direct)
  • Indirect Expenses (Expenses Indirect)


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