Ledger In Tally: Create, Delete, Alter & Ledger List

A ledger in tally can be compared to a journal that maintains track of all financial transactions related to a certain account. The ledger is similar to a financial journal that allows the user to keep track of all money inputs and outflows, just as a diary allows the user to keep track of all their activities and experiences, chronologically and consistently. 

In accounting, the notion of a ledger extends back to ancient times, when merchants used to record their transactions in a tangible ledger book. Ledgers were digitized with the introduction of computers and software, and accounting software such as Tally was developed to make bookkeeping more efficient and accurate. In this blog, we will learn about ledger in Tally, tally ledger list, and how to create, and delete ledger in Tally.

Introduction

Millions of people all over the world prefer Tally as their business management software. Ledgers in Tally are a crucial tool for organizations to successfully manage their money, keep accurate records, and make educated financial choices.

You can handle all important parts of your business, such as accounting, sales and purchases, inventory, manufacturing, taxation, payroll, MIS reporting, and more, with the amazing capabilities that Tally offers.

Developing abilities in Tally ledger management is critical for persons who wish to pursue a career in accounting and finance or who want to properly manage their business’s finances. With the aid of the Tally courses available and one can build on their skills and effortlessly grab lucrative career opportunities.

What is Ledger in Tally?

A ledger in Tally is a record that maintains financial transactions. A ledger’s goal is to keep a thorough record of all financial transactions associated with a particular account, such as a bank account, a customer or vendor account, a sales or purchase account, or any other account.

Tally ledgers are associated with a group, which defines the type of account. A Tally allows users to create, modify, and remove ledgers according to their needs.

Sales, purchases, receipts, and other such items are instances of ledger accounts. They give crucial information for constructing balance sheets, profit and loss (P/L) statements, and more. They also assist in creating a trial balance worksheet for account correctness. Once you have created the ledger, you can use it to record financial transactions related to the account. You can also modify or delete the ledger as per your requirements from the list of ledgers in Tally.

Tally Ledger List

Numerous kinds of ledgers can be generated. Let’s understand the different ledgers in the tally ledger list:

1. Purchase/Sales Tally Ledger

Sales invoices, debit notes, and other source documents, such as credit sales, are kept in the sales ledger. Purchase transactions are recorded in the purchase ledger. Both of these ledgers are necessary for buying, selling, or creating goods. They are utilized in the profit and loss (P/L) account and are under the category of revenue accounts.

2. Income and Expense Ledger

The income ledger includes all the ledger accounts that keep track of the money made or owed concerning goods and services within a fiscal year. An expenditure ledger can be made to record expenses. The sets of direct income, indirect income, direct expense, and indirect expense can be applied to these ledgers. Therefore, if necessary, these records can be included in the assessable value of excise.

3. Party Ledger

In the party ledger transactions involving supplies, receipts, payments, and other things are recorded. Customers, distributors, and retailers are just a few examples of the parties. The account name, closing balance, credited/debited amount, and other information are all included in the party ledger.

4. Tax Ledger

The tax ledger is categorized into customs and tax groups and contains various tax accounts such as sales, VAT, excise tax including business tax, and joint and several liabilities. GST also falls under this ledger type in Tally.

Also Read: Tally Shortcut Keys

5. Bank Account

Information on the bank that is connected to your business and used for payment sending or receiving is contained in Bank Ledger. Bank name, Account no., IFSC code, and address are all included in this data.

6. Current Liabilities and Assets

The current assets/fixed assets ledger contains the total amount that the company has to pay in the future in the form of money or goods.

Stand out in your interview by learning from Tally interview questions and answers.

Ledger Creation in Tally

Ledger creation in tally is a straightforward process. Tally has two predefined ledgers that are automatically created for you. These are the profit and loss account and the cash in hand account. Tally does not allow you to create separate profit and loss accounts. Additionally, you can create other cash accounts and other general ledger accounts depending on your business needs. 

1. Single Ledger Creation

For creating a single Tally ledger, users must follow the following steps:

Path: Gateway of Tally → Accounts Info → Ledgers → Single Ledger → Create

• Step 1: First, visit the “Gateway of Tally”.
• Step 2: Under “Gateway of Tally”, select “Accounts Info”.
• Step 3: Next, choose “Ledgers” under Accounts Info
• Step 4: In the “Single Ledger” sub-option, choose “Create”.
• Step 5: The “Ledger Creation” screen will be displayed. Enter the name of your general ledger. Names must not be duplicated and must be unique. You can also enter an alias for the account if you prefer. Both names and aliases can be used to access the ledger.
• Step 6: Choose the group name or category in “List of Groups” according to the type of ledger account you want to create. Enter the required details.
• Step 7: Finally, select the “Yes” option under “Accept” for saving the configured details.

2. Multiple Ledger

If you wish to save time, you can make several ledgers at once.

Path: Gateway of Tally → Accounts Info → Ledgers → Multiple Ledger → Create

The ‘Inventory values are affected’ field is automatically set to ‘Yes’ for Sales and Purchase Accounts and ‘No’ for all other accounts in multiple modes. For Revenue accounts, the ‘Cost Centres are applicable’ field’s default setting is Yes. The setting for the remaining accounts is “No.” The steps below can be used to generate many ledgers:

• Step 1: First, navigate to the Gateway of Tally and click Accounts Details.
• Step 2: Select the Ledgers option under the Accounts Info option.
• Step 3: You can also select multiple ledgers and then click Create.
• Step 4: A screen labeled “Multi Ledger Creation” displays. Choose All Items or the necessary group to create the ledger. Choose the group for each ledger in the “Under” column if you pick All Items. With the aid of the group name, you can search for a group in the group text box.
• Step 5: Enter the desired information in the “Name of the Ledgers” field.
• Step 6: After that, enter the “Opening Balance” value. You must supply bill information to keep bill-by-bill balances. Enter the opening balance’s debit or credit in the “Dr/Cr” column.
• Step 7: Finally, save the “Multi Ledger Creation” screen.

How to Delete Ledger in Tally

If the ledger has no vouchers in Tally, follow the following steps:

Path: Gateway of Tally ledger → Accounts Info. → Ledgers → Alter → Press Alt + D. 

To ledger deletes in tally if it has been established with vouchers attached, first delete the vouchers.

If there are multiple Tally ledgers you can select unused ledgers and delete the same. Follow the steps below

Path: Gateway of Tally → Display → List of Accounts → F5: Show Unused → Press Alt+D → Press Enter

How to Alter Single Tally Ledger

Path: Gateway of Tally → Accounts Info → Ledgers → Single Ledger → Choose Alter

• Step 1: Use the following path to alter the single Tally Ledger
• Step 2: Under the List of Ledgers, choose the ledger account option.
• Step 3: In Tally, now modify/ alter the required details for the ledger account. To save the changed details, select “Yes” under “Accept”.

Conclusion 

A Tally ledger is a necessary tool for organizations to keep accurate financial records, manage transactions, and produce financial reports. It is an essential part of the accounting process, and learning ledger management in Tally can provide enhanced financial accuracy, efficient record-keeping, better financial analysis, and career chances. Tally’s usage of ledgers guarantees that financial transactions are documented correctly, allowing firms to make educated financial choices. In today’s competitive corporate world.

FAQs