Charts of Accounts in Tally Prime

Updated April 2026

If you are learning Tally Prime, understanding Charts of Accounts is the first and most important step. Without this, you cannot properly record transactions or generate reports like Profit & Loss and Balance Sheet.

In this guide, you will learn:

What is Charts of Accounts
How to create ledgers in Tally
Practical examples
Common mistakes
Career scope after learning Tally

👉 This guide is specially designed for beginners + job seekers in India

What is Charts of Accounts in Tally Prime?

Charts of Accounts is a complete list of all accounts (ledgers and groups) used in a business.

👉 In simple words:
It is a structured system that organizes all financial transactions.

It includes:

Ledgers
Groups
Sub-groups

👉 All reports in Tally depend on this structure.

Types of Accounts in Tally Prime

In Tally, accounts are classified into four main categories:

Type	Meaning	Example
Assets	What business owns	Cash, Furniture
Liabilities	What business owes	Loan, Creditors
Income	Earnings	Sales, Commission
Expenses	Spending	Rent, Salary

👉 This classification is the backbone of accounting.

How to Create Company in Tally Prime (Step-by-Step)

Before creating accounts, you must create a company.

Steps:

Go to Gateway of Tally
Click on Create Company
Enter:
- Company Name
- Address
- State (mandatory)
- Financial Year
Verify currency
Press Ctrl + A to save

👉 After this, you can start recording transactions.

What is Ledger in Tally Prime?

A ledger is where all transactions related to an account are recorded in an organized way.

👉 Example:

Cash A/c
Salary A/c
Rent A/c

👉 In simple terms:
Ledger = Final record of transactions

How to Create Ledger in Tally Prime

Method 1: Direct Creation

Gateway of Tally → Create → Ledger
Enter:
- Ledger Name (e.g., Rent A/c)
- Group (e.g., Indirect Expenses)
Enter opening balance (if any)
Press Ctrl + A

Method 2: During Voucher Entry (Practical Method)

While entering voucher
Press Alt + C
Create ledger instantly

👉 This is commonly used in real office work.

Types of Ledgers in Tally Prime

🔹 Asset Ledgers

Cash
Bank
Furniture

🔹 Liability Ledgers

Loan
Creditors

🔹 Expense Ledgers

Rent
Salary
Electricity

🔹 Income Ledgers

Commission
Interest

🔹 Tax Ledgers (GST)

CGST
SGST
IGST

👉 Tax ledgers are created under Duties & Taxes

Practical Examples of Ledger Creation (Very Important)

Ledger Name	Group
Rent A/c	Indirect Expenses
Salary A/c	Indirect Expenses
Furniture	Fixed Assets
CGST	Duties & Taxes

Predefined Ledgers

All ledgers have to be classified into groups. These groups and ledgers are classified into profit and loss or balance sheet.

There are two pre-defined ledgers in TallyPrime:

Cash ledger	Profit and loss account
Cash Ledger	Profit and Loss Ledger
The cash ledger is grouped under cash-in-hand.	The profit and loss account ledger is grouped under primary.
You can enter the opening balance as on the day the books begin.	The previous year’s profit or loss is entered as opening balance of the ledger. The balance entered is the opening profit/loss.
This ledger can be altered and deleted.	This ledger can’t be deleted but it can be modified.

👉 These examples are frequently asked in interviews.

Charts of Accounts Example (Real Business)

Let’s understand with a small shop example:

Business: Mobile Shop

Ledgers:

Cash A/c → Asset
Purchase A/c → Expense
Sales A/c → Income
Rent A/c → Expense
GST → Tax

👉 This structure helps generate:

Profit & Loss
Balance Sheet

Important Tally Shortcut Keys

Shortcut	Use
Alt + C	Create Ledger
Alt + G	Go To
Ctrl + A	Save
F11	Features

👉 Knowing shortcuts improves efficiency in jobs.

Tally Interview Questions

What is Ledger in Tally?

Ledger is the record where all transactions of an account are stored.

What is Charts of Accounts?

It is the list of all accounts used in a business.

Why is grouping important?

It helps in generating correct financial reports.

Common Mistakes Beginners Make

Selecting wrong group
Incorrect GST setup
Duplicate ledger creation
Ignoring accounting rules

👉 Avoid these mistakes to become job-ready faster.

Why Charts of Accounts is Important?

It helps in:

Accurate accounting
GST compliance
Financial reporting
Business decisions

👉 Without proper setup, reports will be wrong.

Career Scope After Learning Tally Prime

After learning Tally with GST, you can apply for:

Accountant
Billing Executive
GST Executive
Office Assistant

Salary in India (2026)

Experience	Salary
Fresher	₹10,000 – ₹18,000
1–3 Years	₹18,000 – ₹35,000
3+ Years	₹35,000 – ₹60,000

👉 Practical knowledge = faster growth

Want to Learn Tally Practically?

If you want a job-oriented Tally course, practical training is very important.

We provide:

Tally Prime + GST training
Real business examples
Practical assignments
Placement support

📞 Call Now: 9882027366
💬 WhatsApp for Demo Class

👉 Start your career with the right skills.

Final Thoughts

Charts of Accounts is the backbone of Tally Prime accounting. If your basics are strong, you can easily learn advanced topics and get a job in accounting.

👉 Focus on:

Practice
Real examples
Understanding groups

That is the key to success.

Frequently Asked Questions (FAQs)

Is Charts of Accounts important in Tally?

Yes, it is the foundation of accounting.

Can I get job after Tally course?

Yes, especially with practical training.

Is Tally easy to learn?

Yes, with proper guidance and practice.

What is the use of ledger?

It records all transactions related to an account.

TallyPrime installation setup files can be downloaded from the Tally Solutions website.

Charts of Accounts is very basic topic in Tally Prime. Most of the basic ledgers has been discussed in brief. Please like and share the topic.

What are 3 Basic Types of Accounts in Accounting?

1 Personal Accounts – Accounts related to Person, Company, Trust, Temple etc. Ram, Tata Ltd. etc.
2 Real Account – Accounts related to Assests, Properties or possesions. It can be Both Tangible or intangible. e.g Furniture, Cash Etc.
3 Nominal Account -Accounts related to Income, Expenses, Losses or Gains. e.g – Rent, electricity Bill, Commission Received/Paid.

What are 3 Golden Rules in Accounting ?

1 Accounting Rule for Personal Account
Debit the Receiver, Credit the Giver.
2 Accounting Rule for Real Account
Debit what comes in , Credit what goes out.
3 Accounting Rule for Nominal Account
Debit All Expenses and Losses, Credit All Incomes and Gains

Charts of Accounts in Tally Prime (Complete Guide with Examples – 2026)