Understanding concept of Grouping of Ledger in Tally.ERP 9
Sometimes back, I have ten about basic groups in tally. Grouping of ledger is very important for finalisation of accounting reports. If you want to learn tally, then you must understand basic of accountancy and creating of ledger.
A balance sheet is nothing but a summary of various ledger balances on a given date which is grouped properly to give an easy understanding of the financial position of the origination.
Here is a rough idea about which ledger should be grouped under an appropriate category.
Below in BOLD is the name of group account and it displays which ledger should belong to it.
Capital Account: Consist of Owner/partner/share holders account
Loans Account: They are classified into secured and unsecured loan account.
Secured Loans are those which are secured against the mortgages of Assets/FDRs/investment etc. and a loan which is not secured is Grouped under unsecured loan account
Current Liability: It consist of sundry creditors (From whom a business unit purchase Goods/materials or avail services on credit), Advances received from Debtors and other kind of liability
Provisions: The approximate amount of expenses that needs to be provided on a Given date is grouped under this account
Fixed Assets: It consist all assets like land, plant, machinery, equipments, vehicle, furniture etc.
Investment: FDRS, investment in share of other company, bond etc.
Deposit: Deposit with Telephone Department, Electricity board, bank or any Kind of deposits are grouped under this head
Sundry Debtors: It consists of advances made to Sundry creditors, goods sold to Customers on credit etc.
Loans and advances: Other kind of recoverable in cash or kind such advances/loans given To staff, money recoverable from sundry creditors, advance tax paid etc.
The list is not exhaustive and it consist only some main group of balance sheet.
After creating a new company in tally, you may view the in built default basic groups in Tally.ERP 9 by the following way
Go to main menu
you will see the list of groups in Tally.erp 9