Introduction of Ledgers

The Book, which contains the various Accounts, is known as Ledger. Since the basic
information pertaining to the financial position of a business emerges from these
Accounts, the Ledger is also called the Principal Book.

HOW TO CREATE LEDGERS IN TALLY

1. Open an already existing company.
2. Click on “Account info.”

3. Click on “Ledgers”

4. Now select “Create” option.

Note: In every company, two ledgers

are already existed.
1. Cash a/c
2. Profit & loss a/c
 Common Ledgers With Group
Ledger name Group name
Advertisement Expenses Indirect Expenses
Advertisement Payable Current Liabilities
Audit Fees Indirect Expenses
Bad Debts Indirect Expenses
Bad Debts Received Indirect Incomes
Bank Bank Account
Bank Charges Indirect Expenses
Bank Commission Indirect Expenses
Bank Loan Loans & Liabilities
Bank Overdraft Bank OD
Bills Payable Current Liabilities
Bills Receivable Current Assets
Bonds Current Assets
Capital Capital Account
Car Expenses Indirect Expenses
Car Repair Indirect Expenses
Carriage Direct Expenses
Carriage on Sales Indirect Expenses
Cash Cash in Hand
Cash at Bank Bank Account
Closing Stock Stock in Hand
Coal & Fuel Direct Expenses
Coal, Gas & Water of Factory Direct Expenses
Commission (Cr.) / Commission Indirect Incomes
Received
Commission (Dr.) Indirect Expenses
Computer Fixed Assets
Consignment Stock Current Assets
Creditors Sundry Creditors
Debtors Sundry Debtors
Depreciation Indirect Expenses
Discount (Cr.) / Discount Received Indirect Incomes
Discount (Dr) / Discount Allowed Indirect Expenses
Donation Indirect Expenses
Drawing Capital Account
Electricity Expenses Indirect Expenses
Expenses on Purchases Direct Expenses
Expenses on Sales Indirect Expenses
Export Duty Indirect Expenses
Factory Fixed Assets
Factory Expenses (Lighting, Power Direct Expenses
etc.)
Factory Incomes Direct Incomes
Fitting Charges Received Indirect Income
Freight Direct Expenses
Freight Inward Direct Expenses
Freight on Purchase (Freight Inward) Direct Expenses
Freight on Sale (Freight Outward) Indirect Expenses
Freight Outward Indirect Expenses
Fuel & Power of Factory Direct Expenses
Furniture & Fitting Fixed Assets
Furniture & Fixture Fixed Assets
Gas and Water Direct Expenses
Godown Rent Indirect Expenses
Goodwill Fixed Assets
Horse & Carts Fixed Assets
House Rent Capital Account
Import Duty Direct Expenses
Income From Repair Indirect Incomes
Income on Assets Indirect Incomes
Income on Investments Indirect Incomes
Income Tax Capital Account
Input VAT 4%, 12.5% Duties & Taxes
Insurance Indirect Expenses
Insurance Claim Indirect Incomes
Insurance Company Sundry Debtors
Interest (Dr.) Indirect Expenses
Interest on Capital Indirect Expenses
Interest on Drawing Indirect Incomes
Interest on Loan Indirect Expenses
Interest Received (Cr.) Indirect Incomes
Invest in Govt. Bond Investment
Investment Investment
Labour Charges Indirect Expenses
Land & Building Fixed Assets
Lease Hold Building Fixed Assets
Legal Expenses Indirect Expenses
LIC Premium (Dr) Capital Account
LIC Refund (Cr) Capital Account
Life Insurance Capital Account
Loan on Mortgage, Loans Loans & Liabilities
Loose Tools Fixed Assets
Loss By Damage Indirect Expenses
Loss by Fire Indirect Expenses
Loss in Transit Indirect Expenses
Loss on Assets Indirect Expenses
Loss on Joint Venture Indirect Expenses
Machine & Tools Fixed Assets
Machine Repair Indirect Expenses
Manager’s Commission Indirect Expenses
Manufacturing Expenses Direct Expenses
Master Plus Investment
Miscellaneous Expenses Indirect Expenses
Miscellaneous Income Indirect Incomes
Motor Cycle Fixed Assets
Motor Cycle Repair Indirect Expenses
Mutual Fund Investment
Office Expenses Indirect Expenses
Opening Stock Stock in Hand
Output VAT 4%, 12.5% Duties & Taxes
Outstanding Expenses Current Liabilities
Plant & Machine Fixed Assets
Postage & Telegram Indirect Expenses
Power & Fuel Direct Expenses
Prepaid Expenses Current Assets
Printing & Advertisement Indirect Expenses
Printing & Stationery Indirect Expenses
Production Wages Direct Expenses
Profit on Consignment Indirect Incomes
Provision for Bad Debts Indirect Expenses
Provision for Discount on Creditors Indirect Incomes
Provision for Discount on Debtors Indirect Expenses
Provision for Office Expenses Current Liabilities
Purchase Purchase Account
Purchase Return Purchase Account
Rates & Taxes Indirect Expenses
Refrigerator Fixed Assets
Rent Indirect Expenses
Rent on Purchase Direct Expenses
Rent Payable Current Liabilities
Rent Received Indirect Incomes
Repair & Renovation Indirect Expenses
Repairing Charges Received Indirect Incomes
Return Inward Sales Account
Return Outward Purchase Account
Salary Indirect Expenses
Salary & Wages Indirect Expenses
Salary Payable Current Liabilities
Sales Sales Account
Sales Return Sales Account
Shares / Bonds Investments
Stamp & Postage Indirect Expenses
Stationery Indirect Expenses
Stock of Material Current Assets
Sundry Creditors Sundry Creditors
Sundry Debtors Sundry Debtors
Telephone Expenses Indirect Expenses
Trade Expenses Indirect Expenses
Train Freight & Rent Direct Expenses
Travelling Expenses Indirect Expenses
VAT Payable Current Liabilities
Wages Direct Expenses