Ledger Creation in Tally Prime
Creating all Sunrise Retail ledgers — customers, suppliers, GST, bank, expenses
Prerequisites: Module 4 — Groups in Tally Prime
Learning Objectives
- Create all types of ledgers in Tally Prime
- Understand every mandatory field for each ledger type
- Set up GST details for supplier and customer ledgers
- Configure bank ledger with IFSC and account number
- Create all Sunrise Retail ledgers needed for April 2025 transactions
What Is a Ledger?
A ledger is the smallest accounting unit in Tally — the actual account where transactions are posted. Every debit and every credit in Tally goes to a ledger.
Before entering any transaction, you must create ledgers for:
- Every customer (Sundry Debtors)
- Every supplier (Sundry Creditors)
- Every bank account (Bank Accounts)
- Every expense type (Indirect Expenses)
- GST accounts (Duties and Taxes)
Ledger Types and Their Fields
Type 1 — Sundry Debtor (Customer Ledger)
| Field | What to Enter |
|---|---|
| Name | Customer's full legal name |
| Under | Sundry Debtors |
| Maintain Balances Bill-by-Bill | Yes — essential for outstanding tracking |
| Default Credit Period | e.g., 30 days |
| Check for Credit Days | Yes |
| Inventory Values Affected | No (for customers) |
| Provide Mailing Details | Yes |
| Address, State, Country, PIN | Customer's delivery address |
| Set/Alter GST Details | Yes (if customer is registered) |
| GSTIN/UIN | Customer's GSTIN |
| Registration Type | Regular / Composition / Consumer |
Type 2 — Sundry Creditor (Supplier Ledger)
Same as Sundry Debtor but under Sundry Creditors group.
| Additional Field | What to Enter |
|---|---|
| PAN/IT No. | Supplier PAN (for TDS if applicable) |
| Bank Details | Supplier's bank account for NEFT payments |
Type 3 — Bank Account Ledger
| Field | What to Enter |
|---|---|
| Name | Bank name and branch (e.g., "SBI Madhapur Current A/c") |
| Under | Bank Accounts |
| Account Holder Name | Sunrise Retail Pvt Ltd |
| Account Number | 38291047823 |
| IFSC Code | SBIN0020229 |
| Bank Name | State Bank of India |
| Branch | Madhapur |
| Effective Date for Reconciliation | 01-Apr-2025 |
Type 4 — GST Tax Ledger
| Field | What to Enter |
|---|---|
| Name | e.g., "Output CGST" |
| Under | Duties and Taxes |
| Type of Duty/Tax | GST |
| Tax Type | Central Tax (CGST) / State Tax (SGST) / Integrated Tax (IGST) |
| Percentage of Calculation | Leave blank — auto from stock item / voucher |
Type 5 — Expense / Income Ledger
| Field | What to Enter |
|---|---|
| Name | e.g., "Office Rent" |
| Under | Indirect Expenses |
| Inventory Values Affected | No (for pure expense ledgers) |
| Set/Alter GST Details | Yes (if GST applicable on this expense) |
Sunrise Retail — Creating All Required Ledgers
Sneha creates all ledgers before entering April transactions
Ledger 1 — TechWorld Distributors (Supplier)
ASCII Screen: Ledger Creation — TechWorld Distributors
Ledger 2 — Digital Hub Retail Pvt Ltd (Customer — Intrastate)
Ledger 3 — CloudStore Online Pvt Ltd (Customer — Interstate)
Ledger 4 — SBI Madhapur Current A/c (Bank)
Ledger 5 — Petty Cash
Ledger 6 — Output CGST
Ledger 7 — Output SGST
Ledger 8 — Output IGST
Ledger 9 — Input IGST
Ledger 10 — Office Rent (Expense with GST)
Ledger 11 — Sales — Local Telangana
Ledger 12 — Sales — Interstate
Ledger 13 — Mobile Phone Purchases
Ledger 14 — Kumar Properties (Landlord)
Creating Ledgers in Multi (Bulk) Mode
For faster creation of multiple similar ledgers:
| Name | Under | Opening Balance | Dr/Cr |
|---|---|---|---|
| Digital Hub Retail | Sundry Debtors | 0 | Dr |
| CloudStore Online | Sundry Debtors | 0 | Dr |
| TechWorld Distributors | Sundry Creditors | 0 | Cr |
After entering all names and groups, press Ctrl+A to save all at once.
Worked Example — Altering a Ledger
Sneha realizes she entered the wrong GSTIN for Digital Hub (typed 36AAADH4321E1ZP instead of 36AAADH4321E1ZQ — wrong last character).
Tally updates all future transactions. Historical vouchers retain the old GSTIN — correct those individually if needed.
Practice Exercise
Exercise 1: Create a ledger for a new customer: "Prism Computers Pvt Ltd" in Hyderabad, GSTIN 36AAAPP9876C1ZK, credit period 15 days. List all the fields you fill.
Show Solution
Since they're in Telangana (same state as Sunrise Retail), sales to them → CGST + SGST.
Exercise 2: Sneha needs to merge two duplicate ledgers: "Digital Hub" and "Digital Hub Retail Pvt Ltd" (both created by mistake for the same party). How does she fix this in Tally?
Show Solution
Tally does not have a direct "merge ledger" feature. The solution:
Alternative: Alter the wrong ledger and rename it to exactly match the correct one — Tally prompts to merge.
A Kondapur CA firm took over the books of a phone reseller from their previous accountant. While doing year-end clean-up, the audit assistant found 11 different customer ledgers — "Digital Hub", "Digital Hub Pvt Ltd", "Digital Hub Retail", "DigitalHub", "Digital-Hub Retail Pvt Ltd", "Digital Hub Hyderabad", and five more variants. All were the same customer — typed slightly differently every time a new voucher was entered, with no central master list. Outstanding "from Digital Hub" was scattered across 11 ledgers, totalling ₹14 lakh. Collection follow-up had been impossible because each ledger showed only a partial picture. The client was furious that nobody had flagged this in monthly closing reports. The CA firm spent two weeks merging the ledgers manually and lost the client at the next renewal. Lesson: when typing a party name in a voucher, always use Tally's auto-suggest dropdown. Never let two near-identical ledgers exist.
Key Terms
| Term | Meaning |
|---|---|
| Ledger | The final accounting unit — actual account where transactions post |
| Bill-by-Bill | Tracking each invoice separately within a ledger — needed for outstanding management |
| Duties and Taxes | Group for all tax ledgers — CGST, SGST, IGST, TDS |
| Mailing Name | Short name printed on invoices — can differ from legal name |
| Credit Period | Default payment terms — Tally alerts overdue bills |
| Alter Ledger | Masters → Ledgers → Alter — change any ledger field |
| Delete Ledger | Alt+D from within ledger alteration — only if no transactions posted |
| Opening Balance | Balance brought forward on books beginning date |
Checklist — you're ready to proceed when you can:
- Create a customer ledger (TechWorld Distributors) with GSTIN, state, and bill-wise details
- Create a supplier ledger (Digital Hub Retail, CloudStore Online) with correct state for IGST/CGST determination
- Create the bank ledger (SBI Madhapur) with IFSC and account number
- Create all 4 GST ledgers: Output CGST, Output SGST, Output IGST, Input IGST
- Create "Office Rent" expense ledger with SAC 997212 and 18% GST
- Alter a ledger to correct a wrong GSTIN using
Masters → Ledgers → Alter
TechWorld Distributors is Sunrise Retail's supplier. Under which group should their ledger be?
The IGST paid on TechWorld's purchase should go to which ledger?
'Maintain balances bill-by-bill' is most critical for which ledger type?
Sneha creates a 'Salaries' ledger. The correct group for it is:
Next up → Module 6: Contra Entries — cash deposits, bank withdrawals, and petty cash using F4.