In Tally, "groups" refer to categories or classifications used to organize and group ledger accounts based on their nature or characteristics.
| Primary Groups | Sub Groups |
|---|---|
| Capital Account | Reserves and Surplus |
| Current Assets | Bank Accounts |
| Current Liabilities | Cash-in hand |
| Fixed Assets | Deposits |
| Investment | Loans & Advances |
| Loans (Liability) | Stock-in-hand |
| Suspense account | Sundry Debtors |
| Branches and Divisions | Duties and Taxes |
| Sales | Provisions |
| Purchases | Sundry Creditors |
| Direct Incomes [Income (Direct)] | Bank OD Accounts |
| Indirect Incomes [Income (Indirect)] | Secured Loans |
| Direct Expenses [Expenses (Direct)] | Unsecured Loans |
| Indirect Expenses [Expense (Indirect)] | |
| Miscellaneous Expenses (asset) | |
This group consists of Capital and Reserves and Surplus of the Company.
Current assets are those assets which are to be converted into cash with a period of one year or during the normal operating cycle of the business.
Current Liabilities are payable within a year or during the operating cycle of the business, whichever is longer, out of the existing current asset or by creation of other current liabilities come under this category.
It refers to those assets which are held by way of investment and not for the purpose of resale. They are of a permanent nature.
This is a convenient head to view all the company's total investments.
This is a convenient head to view all the bank transaction .Company have the Secured money transferring method for loans. All long-term loans taken by the company will come under this Group. For example, debentures Loans from financial institution.
Theoretically speaking, this group should not exist. However, in modern accounting, many large corporations use a Suspense Ledger to track money paid or recovered, the nature of which was not yet known then.
This is a group of sheer convenience. If a company has many branches, then the company can make use of this group. If you wish to maintain books of the branches / divisions on your computer, you must open a separate company.
Selling of goods in the normal course of business is termed as Sales. If the sale is for immediate cash payment, it is cash sales. If payment for Sales is deferred, it becomes Credit Sales.
Buying of goods for the purpose of resale is termed as purchases. If cash is immediately paid for the purchases, then it becomes cash purchases. If payment is deferred, it is credit purchases. Purchase Returns will also come under this group.
In the case of professional or servicing companies, which do not have sales income but have income and professional fees and services, you can place the ledger accounts under Direct Income.
Indirect income typically includes earnings from activities that are not the primary focus of the business but contribute to its overall financial health. Here are some examples of income items that might be classified under the "Income (Indirect)" group in Tally.
Direct expenses are incurred as result of specific production activities or projects. The "Expenses (Direct)" group in Tally is designed to group together and categorize these types of direct expenses.
Indirect expenses are overall functioning of the business, administration, and other general activities. The "Expense (Indirect)" group in Tally is designed to group and organize these types of indirect expenses.
The first item under this head is Preliminary Expense which is also known as formation expenses. Expenses associated with the issue of shares and debentures can also be classified under this head. The other items that can come under this head are Share and Debenture Discount, Deferred Revenue Expenses like expenditure on Advertisement, Research & Development (R&D) etc.
Reserves and Surplus funds are retained within the company for various purposes, such as future expansion, contingencies, or investment. The "Reserves and Surplus" group in Tally is designed to categorize and track these types of financial items.
The "Bank Accounts" group is specifically used to organize different bank accounts maintained by a business for its financial operations. These accounts can include checking accounts, savings accounts, fixed deposit accounts, and any other type of account held with financial institutions
The "Cash-in Hand" group is specifically used to represent the actual currency notes and coins that a business keeps on hand for immediate transactions and expenses. This could include petty cash used for small day-to-day expenses, cash registers at retail locations, or any other cash that is readily available for use within the organization.
"Deposits" refer to amounts of money that a business or individual places into an account with a financial institution for safekeeping, future use, or as collateral. These deposits can include security deposits, advance payments, or other similar types of funds that are held by a third party, often a bank.
The "Loans & Advances" group is specifically used to represent loans and advances that a business has provided to others or received from external parties. These transactions involve the lending or borrowing of funds for various purposes and categorizing them under this group helps in tracking and managing these financial arrangements.
The "Stock-in-hand" group is finished goods that are ready for sale, raw materials used for production, and any other items that are part of the company's inventory.
Sundry Debtors" refers to the customers who owe money to the business because they have purchased goods or services on credit. In other words, these are individuals or entities that have a debt obligation to pay the business for the products or services they have received.
The "Sundry Creditors" group is a classification within the chart of accounts used to manage and track amounts that a business owes to its suppliers or vendors. This group helps you maintain accurate records of your accounts payable and effectively manage your supplier transactions.
A provision is an amount that a business sets aside to cover potential future expenses or liabilities that are anticipated but not yet realized. The "Provisions" group in Tally is designed to classify these provisions for accurate accounting and reporting.
The "Duties and Taxes" group is specifically used to represent the different taxes and duties that a business must account for, collect, and remit to government authorities. These could include sales taxes, excise duties, value-added taxes (VAT), customs duties, and more.
"Bank OD" stands for "Bank Overdraft," which is a financial arrangement between a bank and its customer. An overdraft allows an account holder to withdraw more money from their account than they currently have available, up to a pre-approved limit. In other words, it's a form of short-term borrowing from the bank.
Secured loans are the collateral can be an asset that the lender can claim if the borrower fails to repay the loan. The "Secured Loans" group in Tally is used to represent these loans and their associated liabilities.
The secured loans, unsecured loans are granted based on the borrower's creditworthiness and financial standing without the need for specific collateral. The "Unsecured Loans" group in Tally is used to represent these loans and the associated liabilities.
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