How to Use Groups in Tally

Introduction

Tally follows the modern way of managing accounts called 'Single Ledger' concept of accounting. This is in direct contrast to Subsidiary Ledger Accounting. All financial entries are made using ledgers or account heads. Ledger accounts are created to identify transactions.

The single ledger concept avoids the need for sub-ledgers and corresponding control accounts in General Ledger. Tally allows you to group ledger information to generate meaningful reports that are compliant with laws. Groups in Tally classify and identify account heads according to their nature. This helps in presenting summarized information.

Classification of Account Heads

Usually, grouping of accounts is done only when reports are needed. This may result in delay in preparing the reports. Tally allows you set up chart of accounts.
You can group the ledger accounts while creating them. This will enable your reports and statements to reflect the desired classification at any point. In Tally, you can also re-group the ledgers (with some minimal restrictions) if re-classification is necessary. Re-grouping becomes necessary whenever there is a change in the nature of information. However, re-grouping can be done only by users who have authorised rights.

At the highest level of grouping, accounts are classified into capital or revenue — specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set of reserved groups and allows you to modify their names or create sub-groups.

Sub-Groups

A Sub-Group behaves exactly like a group and is created under a group.

Concept of Sub-Groups

Groups have a hierarchical structure. The main group of accounts that determine the entire accounting and their presentation are the asset, liability, income or the expenditure. These main groups ascertain whether a ledger affects Profit & Loss Account as a revenue item or if it affects the Balance Sheet.
The Reserved Primary Groups and subgroups are:

Primary Groups of Capital Nature

1. Capital Account
a) Reserves and Surplus [Retained Earnings]
2. Current Assets
a) Bank Accounts
b) Cash-in hand
c) Deposits (Asset)
d) Loans & Advances (Asset)
e) Stock-in-hand
f) Sundry Debtors
3. Current Liabilities
a) Duties and Taxes
b) Provisions
c) Sundry Creditors
d) Fixed Assets
4. Investments
5. Loans (Liability)
• Bank OD Accounts [Bank OCC Accounts]
a) Secured Loans
b) Unsecured Loans
6. Suspense Account
7. Miscellaneous Expenses (Asset)
8. Branch/Divisions
9. Sales Account
10. Purchase Account
11. Direct Income [Income Direct]
12. Indirect Income [Income Indirect]
13. Direct Expenses [Expenses Direct]
14. Indirect Expenses [Expenses Indirect]

Example Group Creation (single) :

Gateway of Tally - Accounts Info –Group (Enter)

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Create a Group :

Name : Commission

Under : Indirect Exp

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Accept the screen and

Press Esc
Now Create Ledger (single)
Gateway of Tally - Accounts Info –Ledger (Enter)

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Create Legers Like Bellow :


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Press Ecs Goto Gateway of Tally and Select Voucher Enrty :

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Voucher Entry

Voucher Entry :
Note: Create All required Ledgers ( Refer Ledger Creation )
Problem example :
1) 01.04.2008 Cash deposit on bank 5000
2) 01.04.2008 Office Stationery Exp 50
3) 01.04.2008 goods purchased 500
4) 01.04.2008 sale 800
Step 1 for Voucher Entries:
Gateway of Tally –> Accounting Vouchers (Press Enter)

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And Press F4 Contra for Bank Depostion
Bank A/c Dr 5000
To Cash A/c 5000 (Being Amount cash deposition ) And accept screen Y



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Press F5 to Select Payment for Office Stationery Exp :

Office Stationery A/c Dr 50
To Cash A/c 50 (Being Amount Stationery purchase )
And accept screen Y


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Press F9 to Select Purchase a/c:
Purchase A/c Dr 500
To Cash A/c 500 (Being Amount Stationery purchase )
And accept screen Y

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Press F8 to Select Sales Voucher
Cash A/c Dr 800
To Sales A/c 800 (Being Amount cash sales )
And accept screen Y

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