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How to create Ledger in tally erp 9 ?

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In tally erp 9 how to create  ledger is a simple task.Before learn to do this we should know some basics.Let’s go there.

What is the concept of ledger ?

In Manual accounting a  ledger is a page in  General ledger book with a set of raws and columns. The ledger records the classified and summarized financial information. That is similar nature transactions are recorded in debit and credit columns.Then balanced for the purpose of reporting.

What is ledger in computerized accounting?

In computerized accounting also, the process is same. But no manual effort is required for the posting and balancing. The only human action required is recording the transaction in to software database.For this separate forms are provided for each kind of transactions . The debit and credit aspects are posted into relevant ledger automatically in tally erp 9. For this automation we need create a ledger .This is the similar action; writing on the top of the page as ledger name. For example : Purchase A/c .

Classification of ledger based on it’s Nature

Normally in book keeping the ledgers are classified based on it’s nature. Based on accounting Principles; Types of accounts are  Real ( Related  to Asset), Nominal ( Related to income & expense ), Personal accounts (Related to Persons & Institutions).

  • Asset Ledger
    • Fixed Asset
    • Current Asset
  • Liabilities Ledger
    • Current Liabilities
    • Current Asset
  • Income Ledger
  • Expense Ledger
  • Personal Ledger.

These are the basic types of accounts that we had learned from the text books.

Tally erp 9 Types of Ledgers  or Ledger under Groups

Based on the above classification tally has created several default groups of ledger for easy classification and summarizing. They are

Sub Groups Main Group
  • Branch / Divisions
  • Capital Account
  • Reserves & Surplus
Liabilities -Under Capital A/c
  • Current Assets
  • Bank Accounts
Current Asset
  • Cash-in-Hand
Current Asset
  • Deposits (Asset)
Current Asset
  • Loans & Advances (Asset)
Current Asset
  • Stock-in-Hand
Current Asset
  • Sundry Debtors
Current Asset
  • Current Liabilities
  • Duties & Taxes
Current Liabilities
  • Provisions
Current Liabilities
  • Sundry Creditors
Current Liabilities
  • Direct Expenses
  • Direct Incomes
  • Fixed Assets
  • Indirect Expenses
  • Indirect Incomes
  • Investments
  • Loans (Liability)
  • Bank OD A/c
Liabilities -Under Loans ( Liability)
  • Secured Loans
Liabilities-Under Loans ( Liability)
  • Unsecured Loans
Liabilities-Under Loans ( Liability)
  • Misc. Expenses (ASSET)
  • Purchase Accounts
  • Sales Accounts
  • Suspense A/c


Based on the above classification we are creating ledgers. These classification popularly known as groups in tally erp 9.

Now let’s move into tally software for creating ledger.

Creating ledger- an important concept.

Ledger creation is a simple process in this software. The main thing that you should know is which ledger Falls under which group. You should thorough with these stuffs. When a transactions happens in a business; an able accountant can analyse the transaction and find out the two aspect or dual concept of transaction.

For Example :  Purchase goods From Ram Ltd for Rs 50000.00

  1. This is a credit transaction, that is no cash or cheque is paid to ram ltd. So cash /bank ledger ignored.
  2. The remaining two aspects are Purchase & Ram Ltd.
  3. Purchase is the expense to the company & Ram ltd is the liability to the company.A Sundry creditor is the one to whom we owe money. So ram ltd is the sundry creditor.

Just look at above list.

  • Purchase falls under Purchase  Sub Group.
  • Ram Ltd falls under Sundry Creditors Sub Group.

How to create Ledger In tally erp 9 ?

In the gateway of tally Menu under masters you will find the following.

Accounts Info>Ledgers>Create

The ledger creation screen will appear. enter the following.

Name : Here the name of ledger, Purchase

Alias : It is the second name for the ledger ,a kind of nick name or if you use coding system you can enter your code here.

Under : Select the sub group we had mentioned above. Here purchase.

Inventory values are affected : Yes. If you are doing business of trading goods. and want to maintain stock you should use tally accounts with inventory. Then this is applicable.

Type of ledger : If you are not creating a discount / round off ledger , this can be selected not applicable.

Is GST Applicable : Applicable ( If you are not a registered dealer select Not applicable ).

Set GST Details : This is not necessary here. If you wish to set gst rate at ledger level you can select yes. And here you can set gst rate & hsn codes. But you can select gst rate at stock item level for multiple gst rate goods are handling. For those businesses handling single gst rate goods  can be set at company level. This can be done  while activating gst at F11 features.

Type of supply : Goods for trading company service for service rendering company.

For purchase ledger other details are not important.

Finally opening balance if any. if you are migrating to tally in the middle of a FY there might be opening balances. A fresh Financial year cannot be opening balance in Purchase ledger.

create ledger screenshot

Hit Enter Key to accept and save or Use shortcut key Ctrl +A.

Now let’s create The sundry creditors ledger .

Upon selecting Sundry creditors under group, the options in the screen have changed.

Maintain balance bill by bill : If you wish the balance bill by bill, then select yes, You can create an outstanding report showing balances bill by bill.

Enter the address, this important for a  sundry creditor.

Provide bank details : This is also important for a sundry creditor as we need to make payment to them. If you entered this in the ledger , you don’t need to seek the details at the time of payment.

This is the bank details form.

Enter all the required field.

Bank details form

Save the screen. Enter the tax registration details.

Create ledger of sundry creditors

Save and accept the screen to create Ram Ltd.

Creating Multiple ledgers in tally erp 9 ?

Tally provides flexibility to its users, so that the work can be made easy and quick. Apart from single ledger creation tally erp 9 provides you multiple ledger creation from a single form.

Example : A Company have 300 clients regularly buying goods and making payment periodically. In such a case creating every client ( Sundry debtor ) in single mode is difficult. in such case the multiple mode is a handy feature. Lets, check this.

Gateway of tally >Accounts Info> Ledger  > CReate – under multiple ledgers

  • Select The Under group as Sundry debtors.
  • Name of ledger : Enter name of each client in consecutive lines.
  • Enter opening balance if any
  • The bill-wise break up screen will appear, enter the bill details of opening balance.

Billwise break up of opening balance

  • Come to next line enter another client name , enter all clients name.

Multiple ledger creation screen

Finally save the screen by pressing Crtl+ A or by hitting Enter Key.

You have created all ledgers required under Sundry Debtors.

If you need to create multiple ledger s under different group, Select all items under Under group. Now you can change each ledger under group.

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