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The Ledger

A Ledger is the actual account head to which you identify a transaction and . must be used in all Accounting Vouchers. Without a ledger we cannot record any transactions.

Ex: Purchase, payments, sales, Receipts, etc, all these accounts heads are ledger Accounts.

All Ledgers have to be classified into Groups. Classification of Ledgers to the appropriate groups is very important. These Groups and Ledgers are classified to Profit & Loss or Balance Sheet.

The creation and usage of Groups in Tally.ERP 9 has been explained earlier. Now you will learn how Tally.ERP 9 works with Ledgers.
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Pre-defined Ledgers in Tally.ERP 9Go to Top...

There are two pre-defined ledgers available in Tally.ERP 9, they are:

(i)        Cash

This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger.

(ii)       Profit and Loss Account

This Ledger is created under the Group Primary. Previous year’s Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.

You cannot delete this ledger, but you can modify the same.
2.1. Creating a Single LEDGERGo to Top...
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Name

Enter the Name of the account. Tally.ERP 9 does not allow the entry of duplicate names. The uniqueness check is made here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its recognition of a name. Thus, CST, C.S.T. and C. S. T. are all considered as same.

Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data entry.

Alias

Enter an alias name if required. You can access the Ledgers using the original name or the alias name.           

Under

All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is created from the List of Groups. (To create a new Group from this field press [ALT + C]). A wrong classification would affect the treatment of the Ledger account in final statements and during voucher entry.

You can, alter a Ledger account to change its group classification at any time.

Opening Balance

If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance would be applicable in circumstances where the Ledger is an asset or a liability and if it has a balance in the account as on the date of beginning of books in Tally.ERP 9.

Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances for Liabilities. Revenue accounts normally do not have balances. Tally.ERP 9, however, permits you to give balances even for such accounts -
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Use of these features

1.  Advanced entries master: This will allow you to enter the data much faster.

2.  Additional information can be provided against any respective ledger, for example:

Phone number of the party.

3.  Address: This feature is useful at the time of party ledger creation.

4.    Contact details: You can enter the name of the contact person

A- Creating a Purchase / Sales LedgerGo to Top...
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B- Creating a Expenses / Income LedgerGo to Top...
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Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.

Cost Centres are applicable: Tally's concept of Cost Centres  allows an additional dimension to a transaction. .

You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes.

Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account.
C- Creating a Party LedgerGo to Top...
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Maintain Balances Bill-by-Bill: This option is applicable when you want the balances to be maintained Bill by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is displayed as shown
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Date: Since you are giving the break-up of the Opening Balance, the date of the bill would naturally be prior to the accounting period. By default Tally.ERP 9 takes last date of your previous accounting period, e.g., 31 March 2008. Change it, if necessary.

Name: Enter a Name to which you can later refer when adjusting the bill. You can enter the Bill number or Document number.

Due date (or credit days): For the Ledgers under Sundry Debtors and Creditors, give the credit period or the date when the bill is due.

Note: During transaction entry, there would be another concept-that of effective date. If you opt for using effective dates instead of bill dates the due date would be calculated accordingly.

    
Amount: For the amount of the bill due, you can give particulars of all the pending bills one by one
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If the total amount of all your bills covers the Opening Balance, the On Account becomes NIL. You could have Bills totaling beyond the Opening Balance. In the screen shown below, there are two bills 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account.

Default Credit Period:
The Credit period may be given for Sundry Debtors and Sundry Creditors. The number of Credit days or period can be defined in various ways:

  • Days:  If there is no suffix given to the number of credit days, then it is taken as Days. For Ex: If you enter just the number 5, then it is considered as 5 Days.

  • Weeks:  If W is given as suffix to the number of credit period, then it is taken as Weeks. For Ex: If you enter 5 W, then it is taken as 5 Weeks.

  • Months: If M is given as suffix to the number of credit period, then it is taken as Months. For Ex: If you enter 5 M, then it is taken as 5 Months.

  • Year: If Y is given as suffix to the number of credit period, then it is taken as Year. For Ex: If you enter 5 Y, then it is taken as 5 Years.

Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc.. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.

Cost Centres are applicable: Tally's concept of Cost Centres  allows an additional dimension to a transaction. .

You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes.

Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account.

Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Mailing Details: is applicable only for party accounts like Sundry Debtors, Creditors and Branch Divisions, Branch/Divisions, Bank & Bank OCC A/c, Loans & Advances Assets, Loans & Advances Liabilities, Secured & Unsecured Loans, etc. These are used in mailing outputs like statement of accounts.

D- Creating Bank AccountGo to Top...
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Effective date for Reconciliation option will appear when a ledger is created under Bank Account group. Give the date of reconciliation on which you would like to reconcile the voucher.

E- Creating a Duty and Taxes LedgerGo to Top...
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The Group Duties and Taxes is used for automatic tax calculation. You need to specify the rate of tax e.g. 5%, 10%, 13.5% etc. You can use an automatic Discount calculation facility by specifying a negative percentage in this field. On entering a percentage, a new field Method of Calculation is displayed.

F -Creating a Current Liabilities / Assets LedgerGo to Top...
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2.2. Creating a Multiple LEDGERGo to Top...
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2.3. Display or Alter a Single Ledger AccountGo to Top...

Information under Display and Alter is the same. Display option does not permit any modification. Alter option permits you to alter the information.

You are allowed to alter any information of the ledger master with the exception of the Closing Balance of a ledger account, if any, other than closing balance of accounts under the group Stock-in-hand.

Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter

Modification of Account Ledgers is possible under Single Ledgers as well as Multiple Ledgers option. However under Multiple Ledgers, all the fields are not available for alteration

2.4. Deleting a Single Ledger AccountGo to Top...

You can delete the ledger if no vouchers have been created under this ledger.

Go to Gateway of Tally > Accounts Info > Ledgers > Alter > Press Alt+D

If you want to delete a Ledger for which Vouchers have been created, then you have to first delete all the Vouchers from that Ledger and then delete the Ledger Account.

(Tally.ERP does not allow deletion of accounts that have transactions. Therefore, should you wish to delete an account, which has transactions, you must first delete all its voucher entries.)
 
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Company Information @ Tally.ERP9
Group & Ledger

Introduction
1. THE GROUP
2. THE LEDGER
3. VOUCHERS TYPES

Advanced Inventory / Stock
Meaning
Order Processing
Re-Order Levels
Tracking Numbers
Batch-wise Details
Additional Cost Details
Bill of Materials (BOM)
Price Lists and Price Levels
Stock Valuation
Zero Valued Entries
Inventory Ageing Report
Actual and Billed Quantities
Advanced Usage of Vouchers
Maintain Bill-wise Details
Cost Center and Cost Category
Interest Calculation
Reversing Journals
Post-Dated Voucher
Memo (Memorandum) Voucher
Optional Voucher
Using Tracking Number
Tally.ERP9 Report
  1. Unit Objectives
  2. Modifying Reports (Options)
  3. Balance Sheet
  4. Profit & Loss Account
  5. Stock Summary
  6. Trial Balance
  7. Day Book
  8. Books of Accounts
  9. Statement of Accounts
  10. Inventory Books
  11. Statutory Reports
  12. List of Accounts ( Chart of Accounts)
  13. Exception Reports
  14. Printing Reports
Tally.ERP9 MIS and Other Reports
Statutory & Taxation
Utilities & Others @ Tally.ERP9
Credit Limits
Knowledge Base @ Tally.ERP9
Stock Items
Stock Groups
Inventory Masters
Inventory Vouchers
Inventory Report Statements
Balance Sheet
Accounting Reports
Accounting Vouchers
Interest Calculation
VAT-Value Added Tax
Service Tax
TDS (Tax Deducted at Source)
 
 
 
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