This example covers how to create ledgers and how they affect the profit and loss statement and balance sheet.
Please follow the steps and share your feedback in the comments section once completed
Ledger Name
Group
Debit (₹)
Credit (₹)
Rama Capital Account
Capital Account
5,00,000
Cash in Hand
Cash-in-Hand
1,00,000
SBI A/c
Bank Accounts
2,00,000
Sales
Sales Account
3,00,000
Purchase
Purchase Account
1,50,000
Sundry Debtor – A
Sundry Debtors
50,000
Sundry Creditor – B
Sundry Creditors
75,000
Office Equipment
Fixed Assets
2,20,000
Salary Expenses
Indirect Expenses
1,70,000
Rent Expenses
Indirect Expenses
40,000
Outstanding Expenses
Current Liabilities
30,000
Commission Received
Indirect Incomes
25,000
Step 1:
Create a Company:
Open Tally Prime & Click Create Company
2. Fill in the necessary details like company name, address, etc.,
3) After accepting the company creation screen, you will see the Company Features window. Set the ‘Maintain Inventory’ option to ‘No’ and the ‘Enable Goods and Services Tax (GST)‘ option to ‘No.’ Ensure that these settings match the screen below
4) After accepting the company features screen (Note: To accept any screen, press CTRL + A), you will see the Gateway of Tally.
5) Now create a ledger name called Rama Capital account with opening balance : Rs. 5,00,000
Ledger Name
Group
Debit (₹)
Credit (₹)
Rama Capital Account
Capital Account
5,00,000
Gateway of Tally > Masters > Create > Ledger > Name : Rama Capital Account Under : Capital Account and Opening Balance 5,00,000 Cr> Accept Yes ( Now Press Escape key Twice to see Gateway of Tally)
6) Next
Ledger Name
Group
Debit (₹)
Credit (₹)
Cash in Hand
Cash-in-Hand
1,00,000
Go Gateway of Tally > Masters > Alter > Ledgers > Select : Cash > Press Enter to see the below screen > Now Go to the Opening Balance Field using Enter Key > Give Opening Balance : 1,00,000 Dr > Accept : Yes
7) Now Press Escape again and again to see the Gateway of tally
Create the below ledgers using above steps >
Ledger Name
Group
Debit (₹)
Credit (₹)
SBI A/c
Bank Accounts
2,00,000
Sales
Sales Account
3,00,000
Purchase
Purchase Account
1,50,000
Customer A
Sundry Debtors
50,000
Supplier A
Sundry Creditors
75,000
Office Equipment
Fixed Assets
70,000
Salary Expenses
Indirect Expenses
1,70,000
Rent Expenses
Indirect Expenses
40,000
Outstanding Expenses
Current Liabilities
20,000
Commission Received
Indirect Incomes
25,000
8) After Created the above all ledgers with Opening Balance as per trail balance
go Gateway of Tally > D: Display More Reports > T: Trail Balance >
Press F5 > To See Ledger Wise >
9) Now Goto Gateway of Tally > Masters : Alter > Ledgers > Commission Received > Change the Opening Balance Amount : 80000 Accept > Yes
10) Now Goto Gateway of Tally > Masters : Alter > Ledgers > Cash > Change the Opening Balance Amount : 155000– Accept > Yes
11) go Gateway of Tally > D: Display More Reports > T: Trail Balance >
What is Machine Learning? Machine learning is a type of technology that enables the computer to learn from the data and make a decision or predict without explicitly being programmed for it. Simple words, teaching a computer to learn from examples and experiences.
Why Learn Machine Learning? An Enticing Technology: Machine learning stands at the core of most cool technologies in use today, such as movie recommendations on Netflix and voice assistants like Siri.
Future Jobs: Most of the future jobs will be based on machine learning. So, you can create a career in technology, health, and finance by learning now.
Solving Problems: Machine learning resolves complicated problems by analyzing large data. It will find out the patterns and make decisions much faster and more accurately than human beings.
Innovation: The art of being part of new technologies and improvements in old ones, which really make a difference in the world.
Understanding of Modern Tech: Knowing the inner machinery of machine learning gives insight into how modern technology works and makes a living.
Put simply; this is teaching a computer to learn from data. In this way, it opens many interesting opportunities and innovations that will be realized in the future.
Learning to program offers multiple benefits at personal and professional levels. Some of the reasons it could be worth your while to learn programming include:
Problem Solving: In your overall life, analytical thinking, programmed through programming, will help you tackle problems in a logical and rational way—basically, breaking them down into smaller sub-problems that are easier to handle. This kind of thinking is transferable to many other areas of a person’s life. Creative Problem-Solving: You can come up with creative solutions for complicated problems and find entirely new solutions to multifarious technology, science, or even common problems.
Employment opportunities High Demand: Skilled users are among the most sought after in all industries, including tech, finance and healthcare. Their demand generally results in high-paying jobs. Wide range of fields: Programming introduces you to many opportunities in careers ranging from web development to software engineering and the like, so you get to choose what you are interested in.
Automation and Efficiency Automating Tasks: Programming enables you to do away with tedious and repetitive tasks, unlike most procedures, giving you much time and space to do big and important tasks. Improving Processes: You can automate everything from business operations to personal projects by writing tools and scripts that will do the job fast and efficiently.
Understanding Technology Technological Literacy: Learning the art of programming will allow one to understand how tools and applications which you use every day work, they make you way more enlightened and very capable of making wise, informed decisions on technology. Troubleshooting: It gets easier to troubleshoot and fix problems with software and digital devices.
Innovation and Creativity New Solutions Development: Programming helps to create new software, applications, and systems. That basically means development of new solutions; thus, it contributes positively to technological advancement. Creative Projects: If you want to create a game or develop a mobile app or a website, then the program will give you the necessary tools to help bring your creative vision to life.
Collaboration and Teamwork Working with Others: Programming often involves working with other people on projects, therefore helping you develop teamwork and communication skills. Community and Networking: There is a big community of programmers—a very supportive community—in which one learns networking and collaboration and how to learn from people.
Adaptability and Future-Proofing Evolving Technology: Programming skills help in adapting to new tools and platforms that come along with evolving technology so that the skill remains relevant and valuable. Future Opportunities: Programming enables you to stay ahead in changes in technology and thus be more flexible in the changing work environment.
Personal Fulfillment Sense of Achievement: To build things from the ground up and then code to make them work is a great feel of accomplishment. Continuous Learning: Programming is an area where changes and evolution are in continuation, and through that, learning and enhancement keep going.
Interdisciplinary Applications Cross-disciplinary application: Programming skills might be used in many different fields, such as mathematics, science, engineering, art, and social sciences; hence, it can enhance working on interdisciplinary projects and going through many different fields of interest. 10. Critical Thinking and Logic Structured Thinking: One of the benefits of programming is the development of one’s logical thinking and clear structuring of thought, which is quite useful in many areas of life and study. Decision Making: It enhances one’s power of decision-making by teaching how to look through various approaches and reach the most suitable one for a particular situation.
For a service-oriented organization using Tally Prime, the ledger and group setup will focus on managing revenue from services, handling expenses, and tracking other financial activities specific to service-based operations. Here’s a structured approach for setting up these ledgers and groups:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for clients or customers who owe payment for services rendered.
Sundry Creditors
Ledgers for suppliers or service providers.
Income
Revenues from various services provided.
Expenses
Various expenses including operational and administrative costs.
Fixed Assets
Assets such as office equipment and furniture.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Client A Receivables
Ledger for a specific client who owes payment.
Client B Receivables
Ledger for another client.
Sundry Creditors
Supplier A
Ledger for a specific supplier (e.g., office supplies).
Service Provider A
Ledger for service providers (e.g., IT support, consultancy).
Income
Service Income
Revenue from the services provided (e.g., consulting fees).
Project Income
Revenue from specific projects or contracts.
Other Income
Other sources of income (e.g., interest, miscellaneous revenue).
Expenses
Salaries and Wages
Salaries and wages for employees and contractors.
Rent
Expense for renting office space.
Utilities
Costs for utilities like electricity and water.
Office Supplies
Costs for office supplies and materials.
Travel Expenses
Costs related to travel for business purposes.
Professional Fees
Costs for professional services (e.g., legal, accounting).
Fixed Assets
Office Equipment
Ledger for office equipment (e.g., computers, printers).
Furniture
Ledger for office furniture.
Leasehold Improvements
Ledger for improvements made to leased premises.
Cash
Petty Cash
Small cash transactions and expenses.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup helps service-oriented organizations track their revenue from services, manage expenses related to operations, and maintain accurate records of financial transactions.
2) For retail or supermarkets
For retail or supermarkets using Tally Prime, organizing ledgers and groups in a table format can help manage various aspects of financial transactions and inventory. Here’s a structured view of how you might set up ledgers and groups for a retail or supermarket business:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for customers who owe money for purchased goods.
Sundry Creditors
Ledgers for suppliers/vendors to whom payments are owed.
Stock-in-Hand
Manages inventory or stock.
Sales
Revenue from sales transactions.
Purchases
Costs related to buying inventory.
Indirect Expenses
Expenses not directly tied to goods sold (e.g., rent, utilities).
Direct Expenses
Expenses directly related to the purchase of inventory (e.g., freight).
Fixed Assets
Assets used in the business such as machinery and furniture.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Customer A
Individual customer ledger.
Customer B
Another customer ledger.
Sundry Creditors
Supplier A
Ledger for a specific supplier.
Supplier B
Ledger for another supplier.
Stock-in-Hand
Groceries
Ledger for groceries stock.
Electronics
Ledger for electronic goods stock.
Sales
Cash Sales
Revenue from cash sales.
Credit Sales
Revenue from sales on credit.
Purchases
Inventory Purchase
Cost of purchasing inventory.
Freight Charges
Costs related to transporting goods.
Indirect Expenses
Rent
Expense for renting store premises.
Utilities
Expenses for utilities like electricity and water.
Office Supplies
Costs for office-related supplies.
Direct Expenses
Purchase Freight
Freight charges directly related to purchasing goods.
Packaging Costs
Costs for packaging materials.
Fixed Assets
Store Equipment
Ledger for equipment like cash registers, shelves, etc.
Furniture
Ledger for store furniture.
Cash
Petty Cash
Small cash transactions and expenses.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup will help you track sales, purchases, inventory, expenses, and bank transactions efficiently, making it easier to manage and report on the financial aspects of a retail or supermarket business.
3) For Manufacturing companies
For manufacturing companies using Tally Prime, the ledger and group setup will focus on tracking production costs, inventory, and other operational expenses. Here’s how you might organize these ledgers and groups in a table format:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for customers who owe money for goods sold.
Sundry Creditors
Ledgers for suppliers/vendors from whom materials are purchased.
Stock-in-Hand
Manages inventory of raw materials, work-in-progress, and finished goods.
Sales
Revenue from sales of finished products.
Purchases
Costs related to buying raw materials and other inputs.
Direct Expenses
Expenses directly related to production (e.g., direct labor, raw materials).
Indirect Expenses
Expenses not directly tied to production (e.g., rent, utilities).
Fixed Assets
Assets used in manufacturing such as machinery and equipment.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Customer A
Individual customer ledger.
Customer B
Another customer ledger.
Sundry Creditors
Supplier A
Ledger for a specific supplier.
Supplier B
Ledger for another supplier.
Stock-in-Hand
Raw Materials
Ledger for raw materials used in production.
Work-in-Progress
Ledger for partially completed products.
Finished Goods
Ledger for finished products ready for sale.
Sales
Domestic Sales
Revenue from sales within the country.
Export Sales
Revenue from sales to other countries.
Purchases
Raw Material Purchases
Cost of purchasing raw materials.
Packing Material Purchases
Cost of packing materials.
Direct Expenses
Direct Labor
Wages and salaries directly tied to production.
Production Supplies
Costs for supplies used directly in manufacturing.
Indirect Expenses
Rent
Expense for renting factory or office space.
Utilities
Costs for utilities such as electricity, water, etc.
Administrative Expenses
Costs related to administrative functions.
Fixed Assets
Machinery
Ledger for machinery used in production.
Equipment
Ledger for production equipment.
Cash
Petty Cash
Small cash transactions and expenses.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup helps track the various aspects of manufacturing operations, including inventory management, production costs, sales, and financial transactions, making it easier to manage and analyze financial data.
4) For schools and Collages
For schools using Tally Prime, the ledger and group setup will focus on managing finances related to tuition fees, salaries, utilities, and other school-related expenses. Here’s how you might organize these ledgers and groups in a table format:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for students or parents who owe tuition fees.
Sundry Creditors
Ledgers for vendors or suppliers providing services or materials.
Income
Revenue from sources like tuition fees and donations.
Expenses
Various expenses incurred by the school.
Fixed Assets
Assets such as buildings, furniture, and equipment.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Student Fees Receivable
Ledger for tracking tuition fees owed by students.
Parent Fees Receivable
Ledger for fees receivable from parents.
Sundry Creditors
Supplier A
Ledger for a specific supplier (e.g., stationery supplier).
Service Provider A
Ledger for service providers (e.g., cleaning services).
Income
Tuition Fees
Revenue from student tuition fees.
Donations
Income from donations and grants.
Miscellaneous Income
Other sources of income (e.g., event fees).
Expenses
Salaries and Wages
Salaries and wages for teachers and staff.
Utilities
Expenses for electricity, water, and other utilities.
Stationery and Supplies
Costs for educational supplies and stationery.
Maintenance Costs
Expenses for maintaining school facilities.
Fixed Assets
Building
Ledger for school buildings and property.
Furniture and Fixtures
Ledger for classroom and office furniture.
Educational Equipment
Ledger for equipment like computers, projectors, etc.
Cash
Petty Cash
Small cash transactions and expenses.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup helps schools manage their financial transactions efficiently, including tracking income from tuition fees, managing expenses related to operations, and handling bank and cash transactions.
5) For government organizations
For government organizations using Tally Prime, the ledger and group setup will focus on managing public funds, tracking expenditures, handling revenues, and maintaining transparency. Here’s a structured approach for setting up these ledgers and groups:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for receivables from other government entities or departments.
Sundry Creditors
Ledgers for payments owed to suppliers and contractors.
Income
Revenues from various sources such as grants, taxes, and fees.
Expenditure
Various expenditures including operational and project costs.
Fixed Assets
Assets like buildings, equipment, and infrastructure.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Receivables from Department A
Amounts receivable from other government departments.
Receivables from External Agencies
Amounts receivable from external entities or agencies.
Sundry Creditors
Supplier A
Ledger for a specific supplier or contractor.
Service Provider A
Ledger for service providers (e.g., maintenance services).
Income
Grants and Subsidies
Revenue from grants and subsidies provided by higher authorities.
Tax Revenues
Revenues from various taxes (e.g., property tax, sales tax).
Fees and Charges
Income from fees for services provided (e.g., registration fees).
Costs related to specific government projects or initiatives.
Maintenance Costs
Expenses for maintaining government properties and equipment.
Fixed Assets
Buildings
Ledger for government buildings and infrastructure.
Office Equipment
Ledger for office equipment and furniture.
Vehicles
Ledger for government vehicles.
Cash
Petty Cash
Small cash transactions and expenditures.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup ensures that government organizations can effectively manage their finances, track revenue and expenditures, and maintain transparency and accountability in their financial reporting.
6) For municipalities, corporations, or town panchayats
For municipalities, corporations, or town panchayats using Tally Prime, the ledger and group setup will help manage public funds, track expenditures, and handle various local government functions. Here’s how you might organize these ledgers and groups:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for amounts receivable from residents and businesses (e.g., property tax arrears).
Sundry Creditors
Ledgers for payments owed to suppliers, contractors, and service providers.
Income
Revenues from various sources such as taxes, fees, and grants.
Expenditure
Various expenditures including operational costs and project expenses.
Fixed Assets
Assets like buildings, equipment, and infrastructure.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Property Tax Receivables
Amounts receivable from property owners for taxes.
Water Charges Receivable
Amounts receivable from residents for water charges.
Municipal Fees Receivable
Amounts receivable from various municipal services.
Sundry Creditors
Supplier A
Ledger for a specific supplier (e.g., for materials or services).
Contractor A
Ledger for contractors providing construction or maintenance services.
Service Provider A
Ledger for service providers (e.g., waste management, street cleaning).
Income
Property Tax Income
Revenue from property taxes.
Water Revenue
Revenue from water charges.
Service Fees
Income from various municipal services (e.g., permits, licenses).
Grants and Subsidies
Income from grants and subsidies received from higher authorities.
Costs for maintaining public infrastructure and facilities.
Project Expenses
Expenses for specific municipal projects (e.g., road construction).
Fixed Assets
Buildings
Ledger for municipal buildings and facilities.
Street Lighting
Ledger for street lighting infrastructure.
Public Equipment
Ledger for equipment used for public services (e.g., vehicles).
Cash
Petty Cash
Small cash transactions and expenditures.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup will help municipalities, corporations, or town panchayats manage their financial activities efficiently, track income and expenditures, and maintain effective control over public funds and assets.
7) For trading companies
For trading companies using Tally Prime, the ledger and group setup will focus on managing inventory, sales, purchases, and related financial transactions. Here’s how you might organize these ledgers and groups:
1. Groups
Group Name
Description
Sundry Debtors
Ledgers for customers who owe money for goods sold.
Sundry Creditors
Ledgers for suppliers from whom inventory is purchased.
Stock-in-Hand
Manages inventory of goods for resale.
Sales
Revenue from sales transactions.
Purchases
Costs related to buying inventory.
Direct Expenses
Expenses directly tied to the procurement and sale of goods.
Indirect Expenses
Expenses not directly tied to the sale of goods (e.g., rent, utilities).
Fixed Assets
Assets such as buildings, furniture, and equipment.
Cash
Cash transactions and balances.
Bank
Transactions related to bank accounts.
2. Ledgers
Group
Ledger Name
Description
Sundry Debtors
Customer A
Ledger for a specific customer.
Customer B
Ledger for another customer.
Sundry Creditors
Supplier A
Ledger for a specific supplier.
Supplier B
Ledger for another supplier.
Stock-in-Hand
Inventory – Goods
Ledger for tracking goods available for sale.
Raw Materials
Ledger for raw materials if involved in manufacturing.
Sales
Domestic Sales
Revenue from sales within the country.
Export Sales
Revenue from sales to other countries.
Purchases
Inventory Purchases
Cost of purchasing goods for resale.
Freight Charges
Cost of transporting goods.
Direct Expenses
Purchase Expenses
Costs directly related to purchasing inventory (e.g., freight, handling).
Packaging Costs
Costs for packaging materials.
Indirect Expenses
Rent
Expense for renting office or warehouse space.
Utilities
Costs for utilities such as electricity and water.
Office Supplies
Costs for office-related supplies.
Advertising
Costs for advertising and marketing.
Fixed Assets
Building
Ledger for buildings and real estate.
Furniture and Fixtures
Ledger for office furniture and fixtures.
Equipment
Ledger for machinery and other equipment.
Cash
Petty Cash
Small cash transactions and expenditures.
Bank
Bank Account 1
Ledger for a specific bank account.
Bank Account 2
Ledger for another bank account.
This setup will help trading companies manage their financial transactions effectively, keep track of inventory and sales, and handle both direct and indirect expenses.
Organizations can be classified into various types based on their structure, ownership, and objectives. Here’s an overview of different types of organizations:
Sole Proprietorship Description: Owned and operated by a single individual. Characteristics: Simple to set up, owner has complete control, unlimited liability. Examples: Local small businesses, freelance professionals.
Partnership Description: Owned by two or more individuals who share profits and responsibilities. Characteristics: Shared management, limited liability (in limited partnerships), profits and losses shared as per the partnership agreement. Examples: Law firms, accounting firms, medical practices.
Limited Liability Partnership (LLP) Description: A partnership where some or all partners have limited liabilities. Characteristics: Combines elements of partnerships and corporations, protects individual partners from personal liability. Examples: Professional services firms, startups.
Private Limited Company (Ltd) Description: A privately held company with limited liability. Characteristics: Owned by a small group of investors, shares are not publicly traded, limited liability for shareholders. Examples: Small to medium-sized enterprises, family businesses.
Public Limited Company (PLC) Description: A company whose shares are traded on a stock exchange and are available to the public. Characteristics: Limited liability, can raise capital by issuing shares, regulated by stock exchange laws. Examples: Large corporations like Apple, Microsoft.
Non-Profit Organization (NPO) Description: An organization that operates for charitable, educational, or other socially beneficial purposes rather than for profit. Characteristics: Exempt from income taxes, must reinvest surplus funds into the organization’s mission. Examples: Charities, foundations, educational institutions.
Cooperative Description: An organization owned and operated by its members, who share the profits or benefits. Characteristics: Members have equal voting rights, profits are distributed among members. Examples: Agricultural cooperatives, credit unions, housing cooperatives.
Government Organization Description: Entities created and operated by the government to provide public services. Characteristics: Funded by taxpayer money, not-for-profit, serves public interests. Examples: Public schools, municipal services, government agencies.
State-Owned Enterprise (SOE) Description: A business owned and operated by the government. Characteristics: May operate like a private corporation but is controlled by government policies. Examples: National airlines, utilities companies.
Joint Venture Description: A business arrangement where two or more parties agree to pool their resources for a specific project or purpose. Characteristics: Shared risk and reward, separate legal entity, typically for a limited time. Examples: Collaborative projects between companies, international business collaborations.
Franchise Description: A business model where an individual or group is granted the right to operate a business using the branding and business model of an established company. Characteristics: Franchisee operates independently but under the franchisor’s brand and guidelines. Examples: Fast-food chains like McDonald’s, retail stores like 7-Eleven.
Social Enterprise Description: An organization that applies commercial strategies to maximize improvements in human and environmental well-being. Characteristics: Focuses on social impact rather than profit, often reinvests profits to achieve social goals. Examples: Fair trade companies, businesses addressing social issues.
Mutual Benefit Association Description: An organization formed to provide benefits to its members, such as insurance or financial support. Characteristics: Members contribute to a common fund and receive benefits based on their contributions. Examples: Insurance companies, professional associations. Summary These types of organizations vary widely in their structure, purpose, and operational characteristics, and understanding these differences can help in recognizing their unique roles in the economy and society.
