3 Chart of Accounts: Groups & Ledgers

This chapter explains the structure of the Chart of Accounts in Tally Prime, and gives step-by-step procedures to create Primary Groups, Sub-Groups, and Ledgers (single and bulk).

3.1 Overview — Concepts

  • Group of Accounts: A way to classify ledgers. Groups can be Primary (root) groups or Sub-groups.
  • Primary Group: e.g., Capital Account, Current Assets, Current Liabilities, Direct Expenses.
  • Sub-Group: Group under a primary group, e.g., Sundry Creditors under Current Liabilities.
  • Ledger: Individual account (e.g., Cash, Bank of India, Rent Expense) that belongs to a group.

3.2 Typical Group hierarchy (example)

Level Example
Primary Group Current Assets
Sub-Group Bank Accounts
Ledger Bank of India - Current A/c

3.2.1 Creating a Primary Group (Step-by-step)

  1. Open Tally Prime and go to Gateway of Tally.
  2. Select Accounts Info. → Groups → Create.
  3. In Name, type the group name, e.g., Bank Accounts.
  4. In Under, choose the parent group (for a primary top-level choose a suitable primary group, e.g., Current Assets).
  5. If required, set Maintain balances bill-by-bill or other group-specific features.
  6. Press Ctrl + A to accept and save.

Example

  • Name: Bank Accounts
  • Under: Current Assets
  • Accept → Group saved.

3.2.2 Creating a Sub-Group

Follow the same steps as Primary Group creation, but choose a different Under value.

Example

  • Name: Cash at Branch
  • Under: Bank Accounts (the sub-group’s parent)
  • Accept → Sub-group saved.

3.2.3 Creating a Single Ledger (Step-by-step)

  1. Gateway of Tally → Accounts Info. → Ledgers → Create.
  2. In Name, enter ledger name (e.g., Cash in Hand - Chennai).
  3. Under → choose the appropriate Group (e.g., Cash-in-Hand or Bank Accounts).
  4. Enter Opening Balance if required (e.g., Dr 10,000).
  5. Provide other fields as needed:
    • Inventory values are affected: Yes/No
    • Mailing details (address, GSTIN) — if required for statutory ledgers
  6. Press Ctrl + A to save.

Example

  • Name: Cash in Hand - Chennai
  • Under: Cash-in-Hand (Primary Group: Current Assets)
  • Opening Balance: Dr 12,000
  • Save.

3.3 Alteration (Modify) of Groups and Ledgers

3.3.1 To Alter a Group

  1. Gateway of Tally → Accounts Info. → ’Groups → Alter`
  2. Choose the group to alter.
  3. Modify fields (Name / Under / other options).
  4. Press Ctrl + A to save.

3.3.2 To Alter a Ledger

  1. Gateway of Tally → Accounts Info. → ’Ledgers → Alter`
  2. Select the ledger.
  3. Change details (e.g., Group or Opening Balance).
  4. Press Ctrl + A to save.

Note: Changing a ledger’s parent group affects reports. Always back up before major changes.

3.4 Deletion of Ledgers and Groups

⚠️ Warning: Deleting accounts with transactions can cause data issues. Use Alter → Set to Inactive where possible, or take a backup first.

3.4.1 To Delete a Ledger

  1. Gateway of Tally → Accounts Info. → ’Ledgers → Alter`
  2. Select the ledger.
  3. If allowed, press Alt + D (or choose Delete) and confirm.
  4. If transactions exist, Tally will block deletion.

3.4.2 To Delete a Group

  1. Gateway of Tally → Accounts Info. → ’Groups → Alter`
  2. Select the group.
  3. Press Alt + D to delete.
  4. Ensure all ledgers or child groups inside it are deleted or reassigned first.

3.5 Examples: Typical Ledgers and Groups

3.5.1 Example Chart for a Small Business

  • Current Assets
    • Cash-in-Hand
      • Cash in Hand - Chennai (Ledger)
      • Petty Cash (Ledger)
    • Bank Accounts
      • Bank of India - Current (Ledger)
  • Current Liabilities
    • Sundry Creditors (Ledger)
  • Indirect Expenses
    • Rent Expense (Ledger)
    • Travel Expense (Ledger)
  • Sales Accounts
    • Sales (Ledger)