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Lesson 11 of 48 – Ledgers in Tally Prime
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📒 Ledgers in Tally Prime

A Ledger is the most important accounting master in Tally Prime. Every financial transaction is recorded through ledgers. Without creating ledgers, voucher entry cannot be performed.

Lesson Objective: Understand what a Ledger is, why it is required, and learn how to create and manage ledger accounts correctly.
1. What is a Ledger?

A Ledger is an individual accounting account that records all transactions related to a particular person, asset, liability, income or expense.

Examples
  • Cash
  • SBI Bank
  • Ram
  • Salary
  • Electricity Expense
  • Furniture
  • Sales
  • Purchase
2. Why are Ledgers Important?
Purpose Benefit
Record Transactions Maintain complete history
Voucher Entry Required for every voucher
Reports Balance Sheet & Profit & Loss
Account Balance Know outstanding balances
GST Reporting Correct tax calculation
3. Types of Ledgers
Ledger Type Examples
Asset Ledger Cash, Bank, Furniture
Liability Ledger Loan, Creditors
Income Ledger Sales, Commission Received
Expense Ledger Salary, Rent, Electricity
Customer Ledger Ram, Mohan
Supplier Ledger ABC Traders
4. How to Create a Ledger
  1. Open Tally Prime.
  2. Go to Create.
  3. Select Ledger.
  4. Enter Ledger Name.
  5. Select the appropriate Group.
  6. Enter Opening Balance (if any).
  7. Press Ctrl + A to save.
Shortcut: Gateway of Tally → Create → Ledger
5. Examples of Ledger & Group
Ledger Group
Cash Cash-in-Hand
SBI Bank Bank Accounts
Ram Sundry Debtors
Shyam Traders Sundry Creditors
Furniture Fixed Assets
Salary Indirect Expenses
Sales Sales Accounts
Purchase Purchase Accounts
Choosing the correct Group is very important because all financial reports are generated based on ledger grouping.
6. Important Fields While Creating a Ledger

When creating a ledger in Tally Prime, you need to fill in several important fields correctly.

Field Description
Ledger Name Name of the Account
Under Select the appropriate Group
Opening Balance Opening Amount (if available)
Mailing Name Name printed on reports
Address Customer/Supplier Address
GST Registration Applicable for GST Parties
Credit Period Payment Due Days
PAN Number Permanent Account Number
Not every field is compulsory. Fill only those fields that are applicable to your business.
7. Opening Balance

Opening Balance is the balance of an account at the beginning of the accounting period.

Ledger Opening Balance
Cash ₹50,000 Dr.
SBI Bank ₹1,20,000 Dr.
Ram (Customer) ₹15,000 Dr.
ABC Traders ₹22,000 Cr.
Assets and Expenses generally have Debit Opening Balances, while Liabilities, Capital and Income generally have Credit Opening Balances.
8. Altering & Deleting a Ledger
Alter a Ledger
  1. Gateway of Tally
  2. Create / Alter
  3. Select Ledger
  4. Choose the Ledger
  5. Modify the required details
  6. Press Ctrl + A
Delete a Ledger
  1. Open the Ledger
  2. Press Alt + D
  3. Confirm Deletion
A ledger cannot be deleted if it has already been used in voucher entries.
9. Practical Ledger Creation Examples
Ledger Group Opening Balance
Cash Cash-in-Hand ₹50,000 Dr.
Punjab National Bank Bank Accounts ₹2,00,000 Dr.
Ram Kumar Sundry Debtors ₹18,000 Dr.
Shyam Suppliers Sundry Creditors ₹35,000 Cr.
Salary Expense Indirect Expenses Nil
Furniture Fixed Assets ₹70,000 Dr.
Sales Sales Accounts Nil
Purchase Purchase Accounts Nil
These are the most commonly created ledgers in almost every business.
10. Common Mistakes While Creating Ledgers
Mistake Correct Practice
Selecting the wrong Group. Choose the correct parent group.
Entering incorrect Opening Balance. Verify balances before saving.
Creating duplicate ledgers. Search before creating a new ledger.
Ignoring GST Details. Enter GST information where applicable.
Incorrect Debit/Credit Opening Balance. Check the account nature carefully.
Using unclear ledger names. Use meaningful and unique names.
A properly created ledger saves time during voucher entry and ensures accurate financial reports.
11. Ledger Hierarchy with Business Examples

Every ledger must be created under the correct group. The following examples show how ledgers are organized in different businesses.

Business Ledger Group
Computer Institute Student Fees Indirect Income
Computer Institute Teacher Salary Indirect Expenses
Medical Store Medicine Purchase Purchase Accounts
Medical Store Medicine Sales Sales Accounts
Retail Shop Electricity Expense Indirect Expenses
Retail Shop Furniture Fixed Assets
Retail Shop Cash Cash-in-Hand
Retail Shop HDFC Bank Bank Accounts
Correct ledger grouping ensures accurate Balance Sheet, Profit & Loss Account and GST Reports.
12. Real Business Case Study
Example – Soopro Pathshala
Ledger Group
Course Fee Indirect Income
Salary Indirect Expenses
Rent Indirect Expenses
Electricity Expense Indirect Expenses
Computer Equipment Fixed Assets
Cash Cash-in-Hand
State Bank of India Bank Accounts
Student Receivable Sundry Debtors
This structure is suitable for schools, coaching institutes and training centres using Tally Prime.
13. Best Practices for Ledger Management
  • Create each ledger only once.
  • Select the correct parent group.
  • Use meaningful ledger names.
  • Verify Opening Balances before saving.
  • Enter GST details wherever required.
  • Update customer and supplier information regularly.
  • Avoid unnecessary ledger creation.
  • Take regular backups before making bulk changes.
  • Review unused ledgers periodically.
Well-maintained ledgers make voucher entry faster and financial reports more accurate.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Create Cash Ledger.
  2. Create SBI Bank Ledger.
  3. Create Ram under Sundry Debtors.
  4. Create ABC Traders under Sundry Creditors.
  5. Create Salary Ledger.
  6. Create Furniture Ledger.
  7. Enter Opening Balances.
  8. Verify all ledgers in the Ledger List.
Interview Questions
  1. What is a Ledger?
  2. Why is a Ledger important?
  3. Can a Ledger exist without a Group?
  4. What is Opening Balance?
  5. Which shortcut is used to save a Ledger?
  6. Can a Ledger be altered later?
  7. Can a Ledger be deleted after voucher entry?
  8. Why should the correct Group be selected?
  9. What information can be stored in a Ledger?
  10. Difference between Group and Ledger?
15. Lesson Summary
  • Learned the meaning of Ledgers.
  • Understood why Ledgers are important.
  • Created different types of Ledgers.
  • Selected appropriate Groups.
  • Entered Opening Balances.
  • Learned to alter and delete Ledgers.
  • Studied practical business examples.
  • Learned common mistakes and best practices.
Congratulations! You can now create and manage Ledgers confidently in Tally Prime. The next lesson will teach you how to record transactions using different Voucher Types.

🧠 Quick Quiz

Under which Group should the SBI Bank ledger be created?



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