Ledger Creation Examples in Tally ERP 9

In accounting, a ledger is a principal book or record where all financial transactions of a business are recorded. It is essentially a collection of accounts, each representing a specific aspect of the business’s financial activities. Ledgers serve as the foundation for preparing financial statements and analyzing the financial health of a business.

Components of a Ledger:

1. Account Name: Each ledger account has a unique name that represents the type of transaction it records. For example, “Cash Account,” “Accounts Receivable,” “Sales,” etc.
2. Date: The date of the transaction is recorded in the ledger to track when the transaction occurred.
3. Description: A brief description of the transaction is included to provide context and clarity.
4. Debit and Credit Columns: The ledger typically has separate columns for debit and credit entries. Debits represent amounts added to the account, while credits represent amounts deducted from the account.

Creating a Ledger in Tally ERP 9:

Here’s a detailed explanation of how to create a ledger in Tally ERP 9:

1. Launch Tally ERP 9: Open the Tally ERP 9 software on your computer.
2. Select “Accounting Vouchers”: From the gateway of Tally, navigate to “Accounting Vouchers” by pressing F2 or by selecting it from the menu.
3. Choose “Ledger”: In the “Accounting Vouchers” screen, select the option for creating a new ledger. This is typically done by pressing Alt + C or selecting “Create” from the menu.
4. Enter Ledger Details:

• Name: Enter the name of the ledger. For example, if you’re creating a ledger for cash transactions, you might name it “Cash Account.”
• Under: Specify the group under which the ledger will be categorized. Groups help organize similar types of accounts together. For example, a cash account might be categorized under the “Cash-in-Hand” group.
• Address: Optionally, you can enter the address associated with the ledger.
• GST Details: If applicable, enter GST-related details such as GSTIN, State, etc.
• Opening Balance: If you’re creating the ledger at the beginning of a financial period and there’s an opening balance, you can enter it here.
• Save: After entering all the necessary details, save the ledger by pressing Ctrl + A or selecting “Yes” when prompted to save.

Examples of Creating Ledgers:

Example 1: Cash Account:

• Name: Cash Account
• Under: Cash-in-Hand
• Opening Balance: ₹1000

Example 2: Sales Account:

• Name: Sales Account
• Under: Direct Income
• Opening Balance: ₹0 (Sales accounts typically start with zero balance)

Example 3: Accounts Receivable:

• Name: Accounts Receivable
• Under: Sundry Debtors
• Opening Balance: ₹5000

Example 4: Accounts Payable:

• Name: Accounts Payable
• Under: Sundry Creditors
• Opening Balance: ₹2000

Example 5: Bank Account:

• Name: Bank Account
• Under: Bank Accounts
• Opening Balance: ₹5000

Example 6: Rent Expense:

• Name: Rent Expense
• Under: Indirect Expenses
• Opening Balance: ₹0

Example 7: Salary Payable:

• Name: Salary Payable
• Under: Current Liabilities
• Opening Balance: ₹0

Example 8: Purchase Account:

• Name: Purchase Account
• Under: Direct Expenses
• Opening Balance: ₹0

Example 9: Office Equipment:

• Name: Office Equipment
• Under: Fixed Assets
• Opening Balance: ₹50000

Example 10: Loan Payable:

• Name: Loan Payable
• Under: Loans (Long-term Liabilities)
• Opening Balance: ₹100000

Example 11: Advertising Expenses:

• Name: Advertising Expenses
• Under: Indirect Expenses
• Opening Balance: ₹0

Example 12: Equity Capital:

• Name: Equity Capital
• Under: Capital Account
• Opening Balance: ₹0

These examples cover various aspects of a business’s financial transactions, including accounts for cash, sales, accounts receivable, accounts payable, bank balances, expenses, assets, liabilities, and equity. Properly setting up and maintaining ledgers in Tally ERP 9 ensures accurate financial record-keeping and reporting.