by Journal is a memorandum book to record transactions date wise. On a particular date, what are total purchases, total sales, debtors, creditors, incomes, expenses may not be known as journal. And to get information about the above, the entries passed in the journal are classified on the basis of their nature in another book which is known as ledger.
An account represents a detailed record of changes that have occurred in a particular asset, liability, expense, loss, gain or capital during the accounting period. All these separate accounts are kept in a loose-leaf binder, and the entire group of accounts is called a ledger.
Utility of a Ledger
- The ledger is a master record of all the accounts of a business unit
- It is a principal book of double entry system of accounting which provides all important information
- Separate accounts are maintained based on their nature, so all information relating to transactions may be obtained through ledgers, such as to whom what is payable, from whom what is receivable, what is the position of assets and liabilities of the business
- Ledger helps us preparing the trial balance to ensure the arithmetical accuracy of the account
- Moreover, ledger assists us in preparing trading, profit and loss account and Balance sheet
Creating Ledger in Tally.ERP 9
| How many ways to create? | There is a total of 2 major ways to create a ledger in Tally.
Explanation: When we need to create 1 or 2 ledgers, we can create it with the help of the Single Ledger option. On the other hand, when we need to create more ledgers, we can create it easily with the help of an option called Multiple Ledgers. |
| Method 1: Single Ledger Creation in Tally | Step 1: From Gateway of Tally, go to Accounts Info
Step 2: Go to Ledger Step 3: Under single ledger, Select the option Create Step 4: Fill the particulars in the Ledger Creation screen displayed: Name: The first box is the Name of the ledger. Enter the name of the ledger, for example, Furniture A/c; Party ledger account (sales)
[Rule: The rule is very simple we just have to select the group that is required as per the nature of the ledger.]
PAN/IT No. : ________ Registration Type : ________ GSTIN/UIN. : ________ Set/Alter GST details : ________ [Note: Similar to mailing details, these details are also of people and not for ledgers like furniture, building etc.]
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| Method 2: Multiple Ledger Creation in Tally | The process is almost the same as the single ledger method. Only one step is different.
Step 1: From Gateway of Tally, go to Accounts Info. Step 2: Go to Ledger Step 3: Under Multiple ledgers, Select the option Create Step 4: Fill the particulars in the Ledger Creation Screen:
Under Group: This option is similar to the Under option under the Single Ledger Method. For example, Furniture A/c, Electrical and Fittings will be under Fixed Assets group, Investment in shares, Investment in Fixed deposit account under Investment group etc., This works well if we create ledgers under only one group. This type of ledger creation is also not useful for creating Sundry debtors ledger and sundry creditors ledger as we have to also fill up GST details of individual creditors and debtors while creating ledger account for them. |
