Ledger account is a summary statement of all the transactions relating to a person, asset, liability, expense or income. the transactions recorded in the journal, the ledger account is prepared. It is a book which contains all sets of accounts, namely, personal, real and nominal accounts. Account balance can be determined from the ledger. It contains a classified and permanent record of all the transactions of a business.
Example: Office expenses, Purchase, Machinery, Ravi, bank loan etc..
Note: Cash, profit/loss are default ledgers in tally.
The group is a collection of ledgers of the same natures.
| Group Name | Example Ledger |
|---|---|
| Capital Accounts | Share capital, Joes capital |
| Loan Liabilities | Bank loan, loan received from any party |
| Current Liabilities | Payables, outstanding amounts |
| Current Assets | Receivables, Prepaid amounts |
| Fixed Assets | Machinery, Factory, Land & buildings |
| Investments | Investing on shares, any investment names |
| Sales Accounts | Credit sales, sales returns |
| Purchase Accounts | Credit purchase, purchase returns |
| Suspense Account | Suspense ledger |
| Direct Expenses | Wages, Import duty, all purchase & manufacturing expenses |
| Indirect Expenses | Office expenses, selling expenses & financial expenses |
| Misc.Expenses | Development expenses, advertisement expenses, |
| Direct Income | Income earned from the sale of goods and services |
| Indirect Income | Earned by way of Non-business activities (Interest received, discounts) |
| Branch / Division | This maintains ledger accounts of all your company's branches, divisions, affiliates, sister concerns, subsidiaries and so on. |
| Group Name | Example Ledger |
|---|---|
| Sundry Creditors | Purchase party name or supplier name |
| Sundry Debtors | Sales party name or customer name |
| Provision | Provision for doubtful debts, Provision for tax |
| Cash in hand | Liquid cash in company |
| Duties & Taxes | Service tax, CGST, IGST,SGST |
| Deposit(asset) | Fixed deposits |
| Bank Accounts | Indian bank, SBI bank (any bank name) |
| Loans & Advance (Assets) | Salary advance, loans to partner |
| Bank OD & OCC Account | Bank OD, bank OCC |
| Secured Loans | Car loan, Home loan |
| Unsecured Loans | Credit cards, student loan |
| Stock in hand | Opening stock, closing stock |
| Reserves & Surplus | General Reserves , Capital Reserves (Funds set aside to pay future obligations ) |
| Ledger Name | Group Name |
|---|---|
| Any bank name | Bank Account |
| Cash at bank | |
| Ex: Indian bank. ICICI bank | |
| Bank O/D | Bank O/D (Over Draft) |
| Bank OCC | Bank OCC (On Cash Credit or Over Cash credit) |
| Any branch name | Branch/Divisions |
| Ex: Branch fund, Branch stock | |
| Any capital name | Capital A/c |
| Ex: Reliance capital, Ravi capital Drawings (Dr) | |
| Cash or cash in hand (Default) | Cash-in-hand |
| Bill receivable | Current assets |
| Prepaid Expenses | |
| Accrued interest | |
| Petty cash | |
| Subsidiaries | |
| Accounts receivable | |
| Live in stock | |
| Sports equipment | |
| Works-in-progress | |
| Raw materials | |
| Security deposit (Dr) | |
| Bills payable | Current liabilities |
| Arrears | |
| Unpaid expenses | |
| Condign liability | |
| Bonus payable | |
| Royalty payable | |
| Outstanding expenses | |
| Salary due | |
| Commission received in advance | |
| Security deposit (Cr) | |
| Accounts payable | |
| Provident fund | |
| Proposed dividend | |
| Any deposit name | Deposit (Assets |
| Ex: Bank deposit, Fixed deposit | |
| Wages | Direct Expenses |
| Fright charges | |
| Factory rent | |
| Inward charges | |
| Carriage inward charges | |
| Import duty | |
| Gas & fuel & power | |
| Royalty on production | |
| Factory lighting | |
| Any factory Expenses | |
| It is not possible | Direct income |
| Sales tax | Duties & Taxes |
| Service tax | |
| Surcharges on tax | |
| Excise duty | |
| TDS | |
| TCS | |
| VAT | |
| FBT | |
| CST | |
| Plant & machinery | Plant |
| Land & building | |
| Typewriter | |
| Motor van & car & bike | |
| Furniture & fittings | |
| Computer | |
| Electric fan | |
| Loose tools | |
| Free hold property | |
| Lease hold property | |
| Good will | |
| Factory | |
| Plant | |
| Office expense | Indirect expense |
| Salaries | |
| Bank charges | |
| Rent , rates | |
| Printing & stationery | |
| Postage & telegram | |
| Telephone charges | |
| Legal charges | |
| Audit fee | |
| Insurance | |
| General expenses | |
| Interest on capital | |
| Interest on loan | |
| Discount allowed | |
| Discount on bill | |
| Advertisement charges | |
| Traveling expenses | |
| Commission | |
| Bad Debit | |
| Bad and doubtful debts | |
| Discount on debtors | |
| Fright outward | |
| Godown rent | |
| Carriage outward | |
| Agent commission | |
| Export expenses | |
| Depreciation | |
| Repair chares | |
| Maintenance charges | |
| Trade expense | |
| Interest received | Indirect income |
| Dividend received | |
| Discount received | |
| Commission received | |
| Rent received | |
| Income on investment | |
| Interest on debentures | |
| Miscellaneous revenue | |
| Interest on | |
| debentures | |
| Miscellaneous | |
| revenue Interest on | |
| Drawing Sundry | |
| income | |
| Bad debit recovered | |
| Appreciations | |
| Investing on shares | Investment |
| Investment | |
| Capital of partnership firm | |
| Any investment name | |
| Loan issued to customers | Loans and advance (Assets) |
| Employees, Advance paid | |
| Bank loan | Loan (liability) or Secured loan |
| loan (liability) | |
| loan received from any party’s | |
| secured loan, debentures | |
| Preliminary Expenses | Misc. Expenses (Assets) |
| Misc. Expenses | |
| Development exp | |
| Any Provision name | Provisions |
| Provision for Bad debit | |
| Provision for Depreciation | |
| Provision for Tax | |
| Cash purchase | Purchase Account |
| Credit purchase | |
| Purchase return (Cr) | |
| Reserve fund | Reserves & surplus |
| Reserves | |
| Reserves & surplus | |
| Reserve for bad debit | |
| Cash sales | Sales Account |
| Credit sales | |
| Sales return (Dr) | |
| Purchase party name | Sundry creditor |
| Suppliers name | |
| Sales party name (OR) Customer name | Sundry Debtors |
| Suspense A/c | Suspense A/c |
| Bank loan (un secured loan) | Unsecured loan |
| Stock in hand, Opening stock | Stock in Hand |
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