Charts of Accounts in Tally Prime

After Installation and activation of TallyPrime license, a new user needs to create a Company to record your business transactions.

To Create Company in TallyPrime

1. Create>Company or from the  Gateway of Tally> Select Create Company.
2. Enter the Company Name, Mailing Name, and Address.
   While Company Name is for reference in the application, Mailing Namewill be printed in all reports.
3. Select the State (selecting State is mandatory)and Country.
   Based on the country selected, the statutory options and Currency will vary.
4. Enter the Financial year beginning fromand Books beginning from
5. Set security details, if needed.
6. Verify the Base Currency
7. Accept the Company screen.
   Thereafter, a confirmation screen appears with the list of features that you can enable.
8. Set up the features as needed. It can be done later too. The best part is you don’t need to Press F11 key to go to features, you are automatically diverted to features screen, upon company creation.

   

Once you create the Company, you can start recording the transactions directly.

Creating Masters

TallyPrime has various types of masters namely, Accounting Masters, Inventory Masters and Payroll Masters. which gets displayed as per your TallyPrime configurations. We also name it Charts of Accounts.

Charts of Accounts

Charts of Accounts, by default displays the list of predefined  Masters under TallyPrime.  It allows to put the ledger accounts in the under respective group while creating it.

TallyPrime offers  great flexibility in setting up your chart of accounts. All the business reports are based on the classifications of Charts of  Accounts.

 The comprehensive list of accounts is displayed in the existing chart of accounts, listed as groups, in alphabetical order.

Viewing  Charts of accounts

• From Gateway of Tally > Chart of Accounts > select master type you want to see in Chart of Accounts.
  Or, press Alt+G (Go To) > type or select Chart of Accounts > select master type you want to see in Chart of Accounts and press Enter.You can Drill down to a ledger name to alter its details by pressing enter.

   

  

At the highest level, accounts are classified into Capital or Revenue – and more specifically into Assets, Liabilities, Income and Expenditure. Alternatively use the keys Shift+Enter from the group head to reduce the details.

You need ledgers, groups and sub-groups to record business transactions as per your requirements.

Ledger

A ledger is a group of Account. The transactions are first recorded in the journal and then posted in the ledger book. Hence the Ledger is a secondary record. It derives the information from  the Journal. The ledger is considered to be the principal or main book of account.

The posting in ledgers affect assets, liabilities, income or expenses statements. Once a transaction has been recorded TallyPrime generates a Profit & Loss account and a Balance Sheet. It can also generate a other comprehensive financial statements and reports in TallyPrime.

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.

Display Unused Masters

Any unused masters in the list of accounts can be identified and removed in one go.

To list the list of unused masters

• From Gateway of Tally > Chart of Accounts > Ledger > and press Enter.
  else, press Alt+G (Go To) > select Chart of Accounts > Ledger and press Enter.
• You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
• To view the Show Unused, press Ctrl+J (Exception Reports) > type or select Show Unused > and press Enter. Press Esc to view the default report.
  The List of Ledgers (Unused) appears as shown below:

Unused groups, cost categories, cost centres, budgets and scenarios, currencies, units of measure, godowns, and so on can be filtered, similarly.

Creating  Ledger

Ledger can be created from different ways such as Master, Transactions and reporting as per the situation.

Single Ledger Creation

1. Gateway of Tally > Create > type or select Ledger and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger and press Enter.
2. Enter the Name of the ledger account. Duplicate names are not allowed.
3. Enter the alias of the ledger account, if required. You can access the ledgers using the original name or the alias name.
4. Select a group category from the List of Groups.
   Note: To create a new group from this field, press Alt+C.
   You can alter a ledger account to change its group classification at any time. 
5. Enter the Opening Balance. The opening balance is applicable when the ledger is an asset or a liability, and also if it has a balance in the account as on the date of beginning of books.

   

6. Accept the screen. As always, you can press Ctrl+A to save.

Ledger Creation from Transaction or reporting

User can create ledger during Voucher entry from all the voucher types available in TallyPrime.

1. From Voucher Creation/Alteration screen, press Alt+C. from ledger field.
2. Ledger Creation will display and create the ledger and save the screen.

Current Liabilities and Current Assets Ledgers

Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under Current Liabilities and Assets can be classified as Current assets and Fixed assets. To create Fixed Assets ledger:

1. From Gateway of Tally > Create > type or select Ledger and press Enter.
   Or, press Alt+G (Go To) > Create Master > type or select Ledger and press
   The Ledger Creation screen appears as shown below:
2. Name: In this field mention the Ledger name. For example, Furniture and Fixture A/CUnder: In this field select the group under which the ledger to be grouped. For example, Current Liabilities, Current Assets or Fixed Assets.
3. Enable Inventory values are affected option if you maintain accounts with inventory. However, you can use this option for accounts like customs duty, direct expenses related to purchases such as freight inwards and so on.
   • In the Ledger Creation, press F12 (Configure) > set Use Inventory Allocations for Ledgers to Yes.
   • If you do not see this option:
     • Set Show more configurations to Yes.
     • Set Show all configurations to Yes.

4. Accept the screen. As always, you can press Ctrl+A to save.

Creating Tax Ledger

Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like GST, VAT, CENVAT, Excise, Sales and other trade taxes and total liability.

1. From Gateway of Tally > Create > select Ledger and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger and press
   The Ledger Creation screen appears as shown below:
2. Name: In this field mention the Ledger name say CGST for Central Tax
3. Under: In this field select the group under Duties & Taxes
4. The option Type of Duty/Tax is based on statutory compliance of the company. For Indian statutory, by default, Others is displayed. Depending on features in F11 (Company Features Alteration), more options can be included in the Type of Duty/Tax.
5. Enable Inventory values affected option if you maintain accounts with inventory. However, you can use this option for accounts like Customs Duty, direct expenses related to purchases such as Freight Inwards and so on.
6. Select the Percentage of Calculation the rate of tax e.g. 5%, 10%, 12.5% etc. You can use an automatic discount calculation facility by specifying a negative percentage in this field. The Duties and Taxes Group does automatic tax calculation.
7. On entering a percentage, a new field Method of Calculation is displayed. From the Method of Calculation, select appropriate options to calculate the Tax/Duty.
8. Accept the screen. As always, you can press Ctrl+A to save.

Rounding Method

This is used to round off the duty value. By default rounding method is set blank. Once you select rounding method, rounding limit option is displayed.

For example:

For duty value 123.33 and rounding Limit is 1,

• Downward rounding will show as 123.
• Normal rounding will show as 123.
• Upward rounding will show as 124.

For Duty value 125.55 and rounding Limit is 1,

• Downward rounding will show as 125.
• Normal rounding will show as 126.
• Upward rounding will show as 126.

Note: Always use Upward rounding.

Creating Expenses and Income Ledgers

You can select the income or expenses account group to create ledgers.

1. From Gateway of Tally > Create > select Ledger and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger and press
2. Enter the name of the ledger in the Name field say Rent A/c.
3. Select Indirect Expenses from the List of Groups in the Under

Note: Select Indirect Income from the List of Groups if you want to create an income ledger.

4. Set the option Inventory values are affected? to No

You can also enable cost centre options in expenses or income ledger.

1. Enable Cost centres are applicable to Yes, if the transactions have to be allocated to a particular cost centre
2. In the Ledger Creation, press F12 (Configure) > set Apply Cost Centres for Ledgers to Yes.
   If you do not see this option, ensure that Enable Cost Centres is set to Yes in F11 for your company.
3. Accept the screen. As always, you can press Ctrl+A to save.

Alter and Delete Ledgers

You can alter any information of the ledger master with the except for the closing balance under the group stock-in-hand.

Display/alter a ledger

• Gateway of Tally > Alter > type or select Ledger and press Enter.
  Alternatively, press Alt+G (Go To) > Alter Master > type or select Ledger and press Enter.

Modification of account ledgers is possible for single ledgers as well as multiple ledgers. However for multiple ledgers, all the fields are not available for alteration.

Delete a ledger

1. Gateway of Tally > Alter > type or select Ledger and press Enter.
   Alternatively, press Alt+G (Go To) > Alter Master > type or select Ledger and press Enter.
2. Select the ledger from the List of Ledgers.
3. Press Alt+D.

Note: You can delete the ledger if no vouchers have been created under it. If you want to delete a ledger for which vouchers have been created, you have to first delete all the vouchers from that ledger and then delete the ledger account.

View Contact Details for Ledger Accounts

From the Ledger Vouchers report, it is possible to view the contact details of the ledger for reference. This is useful for bank ledgers. When more than one account number exists in the same bank, quick reference of the account details is possible.

1. Gateway of Tally > Display More Reports > Accounts Books > Ledger and press Enter. > select the ledger for which you want to see the contact details
   Alternatively, press Alt+G (Go To) > type or select Ledger Vouchers and press Enter.
2. Select the required Ledger from Select Item screen appears.
3. Press Alt+S: Contact. The Ledger Contact Details screen appears as shown below:Mailing details and the account details are displayed in this screen.

Ledger Vouchers Report

1. Gateway of Tally > Display More Reports > Accounts Books > Ledger and press Enter.
   Alternatively, press Alt+G (Go To) > type or select Ledger Vouchers and press Enter.
2. Select the required Ledger.
3. Press F2 to change the period as required. The Ledger Vouchers report appears as shown below:
4. Press F8 (Columnar) to view details of vouchers in separate columns.
5. For purchase, payments, journals, debit notes and credit notes, you can view the voucher reference number and date.View, Print, Export Opening Balances of all the Ledgers

View Opening Balances of all Ledgers in a Single Screen

1. Gateway of Tally > Chart of Accounts > Ledger > and press Enter.
   Alternatively, press Alt+G (Go To) > type or select Chart of Accounts > Ledger > and press Enter.
2. Press Alt+H (Multi-Masters) > select Multi Alter > and press Enter.
3. Select All Items from the List of Groups.

To Print Opening Balances of all Ledgers from a Single Screen

1. From Gateway of Tally > Display More Reports > Trial Balance.
   Alternatively, press Alt+G (Go To) > type or select Trial Balance > and press Enter.
2. Press F5 (Ledger-wise) and press Crlt+P to print.
3. Press C: Configure to set options for printing
4. Enable the option Show Opening Balances by pressing Enter on it.
5. Disable the options Show transactions and Show Closing Balances by pressing Enter on it
6. Enable the option Show Accounts with Zero balance by pressing Enter on it.
7. Press Ctrl+A to accept the configuration screen
8. Press I:Preview to see the preview before print. Preview can be seen as shown below:
9. Once confirm with preview press Print to print the report.

Export Opening Balance of all Ledgers from a Single Screen

1. Gateway of Tally > Display More Reports > Trial Balance
   Alternatively, press Alt+G (Go To) > type or select Trial Balance > and press Enter.
2. Press F5 (Ledger-wise) and press Alt+E.
3. Press C: Configure to set Export Configuration.
4. Enable the option Show Opening Balances by pressing Enter on it.
5. Disable the options Show transactions and Show Closing Balances by pressing Enter on it
6. Enable the option Show Accounts with Zero balance by pressing Enter on it.
7. Select file format as Excel (Spreadsheet) and other details as required under Export Settings.
8. Press Ctrl+A to accept the configuration screen
9. Pres E: Send to export.

 

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.

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