Introduction
A Ledger is the actual account head to which you identify a transaction. In Tally, you pass all accounting vouchers using Ledgers. However, all Ledgers have to be classified into Groups. Hence a thorough understanding of account classification is important for working with Ledgers. The creation and usage of Groups in Tally has been explained earlier. Now you will learn how Tally works with Ledgers.
Go to Gateway of Tally > Accounts Info. > Ledgers
Managing Groups in multiple companies
Copy masters from one company to another
Master information is the same for most group companies and it is certainly beneficial to maintain same group structure and ledgers. This becomes necessary if you have a parent company with subsidiaries or branches. This ensures uniformity of reports in all companies and proper consolidation of accounts. To avoid the tedious task of re-creating masters in other companies, Tally enables you to copy the groups created in one company to another.
The companies must be selected to allow switching of companies.
Displaying and Altering Group
You can display and alter the Groups in Single mode or Multiple mode.
Displaying a Single Group
Go to Gateway of Tally > Accounts Info. > Group > Display (under Single Group)
Select the name of the Group from the List of Items. You cannot make any changes in Display mode.
Altering a Single Group
Go to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)
Select the Group that you wish to alter from the List of Groups. Make the necessary changes and click Yes to save the changes.
Creating Multiple Groups
In multiple group creation, the sub-groups will automatically inherit the characteristics of their parent groups.
Go to Gateway of Tally > Accounts Info. > Groups > Create (under Multiple Groups)
Select the parent group under which you want the new groups to be created from the List of Groups. The group selected is displayed in the Under Group field.
Name of Group
Enter the name of the Group.
Creating a Group
Go to Gateway of Tally > Accounts Info. >
Groups > Create (under Single Group)
The Group Creation screen displays
Name of Group
Enter the name of the Group to be created. For example, Administrative Expenses.
A Discussion on Each of the Reserved Groups
1.
Capital Account
This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share Capital, Partners' Capital A/c, Proprietor's Capital Account and so on.
Reserves and Surplus [Retained Earnings]
This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so on.
2.
Current Assets
Common and Possible Errors in Grouping and Account Classification
Debtor/Creditor classification
Placing individual party accounts under Sales or Purchase Accounts groups
Accounts of parties with whom your company is trading should be opened under any of the following groups (or sub-groups under them):
-
Sundry Debtors
-
Sundry Creditors
-
Branch/Divisions
Main Functions in Masters Menu
Accounts Information contains the masters. Each master has create, alter and display functions.
Single Group option is useful when you wish to work on one Group at a time. Multiple Group option is very useful when you are working on many sub-groups at a time and saves a lot of time. Once a sub-group is created, it behaves exactly like a Group.
Create
The Create option is used to create new masters. Any modification to the masters can be done only through Alter mode.
Configuring F12: Configure and Setting F11: Features
F12: Configure and F11: Features > Accounting Features help you to organize the information and the level of details as per requirement. You can modify/alter the settings in F12: Configure and F11: Features at any point of time.
F12: Configure
To set F12: Configure for Accounts and Inventory Masters
Go to Gateway of Tally > F12: Configure > Accts/Inv Info.
Introduction
Accounts Info menu lists the masters through which you can provide Tally the details of your company’s accounts.
Go to Gateway of Tally > Accounts Info.