Learn TallyLesson 4 of 20
How to create a ledger in TallyPrime
Before a transaction can be recorded, the accounts it touches must exist. Creating a ledger is a matter of a name, a group and, sometimes, an opening balance.
Steps
- From Gateway of Tally choose Create, then Ledger. Or press Alt+G (Go To), type "create ledger" and press Enter.
- Type the name.
- Choose the group in the Under field. See which ledger under which group.
- Fill in the other fields that appear for that kind of ledger.
- Press Ctrl+A to save. The screen clears for the next ledger.
You can also create a ledger in the middle of entering a voucher: when the ledger you need is not in the list, press Alt+C, create it, and Tally returns you to the voucher. This is called creating a master "on the fly".
What the screen asks
The fields change with the group chosen and the features switched on.
| Kind of ledger | Extra details usually asked |
|---|---|
| Party (Sundry Debtors or Sundry Creditors) | Maintain balances bill-by-bill, default credit period, mailing name, address, state, and GST registration type and GSTIN if GST is on |
| Bank (Bank Accounts) | Account holder's name, account number, IFSC, bank name and branch; cheque book and reconciliation settings |
| Sales or purchase | Whether inventory values are affected; GST applicability and details |
| Tax (Duties & Taxes) | Type of duty or tax (GST) and the tax type: CGST, SGST/UTGST or IGST |
| Expense or income | Whether GST applies; for expenses under Direct or Indirect Expenses, whether inventory is affected |
| Fixed asset | Usually only name and group; GST details if input credit is to be tracked |
Opening balance
At the foot of the ledger screen is Opening Balance. Use it when a business that already exists starts using Tally: enter each ledger's balance as on the books-beginning date, and say whether it is Dr or Cr. Assets and expenses are debit balances; liabilities, capital and incomes are credit balances. A new business has no opening balances.
When all opening balances are entered, total debits should equal total credits. If they do not, Tally shows the difference in the Balance Sheet as "Difference in opening balances", a sign that a balance is missing or on the wrong side.
Examples for the practice company
Create these in Shanti Traders. They are used in the voucher lessons and the practice exercise.
| Ledger name | Under |
|---|---|
| Capital A/c | Capital Account |
| Canara Bank | Bank Accounts |
| Purchase A/c | Purchase Accounts |
| Sales A/c | Sales Accounts |
| Mohan Paper Mart | Sundry Creditors |
| City Book Depot | Sundry Debtors |
| Furniture | Fixed Assets |
| Shop Rent | Indirect Expenses |
| Salaries | Indirect Expenses |
| Carriage Inward | Direct Expenses |
| Electricity Charges | Indirect Expenses |
| Drawings | Capital Account |
| Input CGST, Input SGST, Input IGST | Duties & Taxes |
| Output CGST, Output SGST, Output IGST | Duties & Taxes |
Cash already exists. Many offices keep single ledgers named CGST, SGST and IGST instead of separate input and output ledgers; both ways work. Follow your office's practice.
Naming ledgers well
- Use the party's proper name as on its invoices, and add the town if two parties share a name: "Gupta Traders, Agra".
- One ledger for one thing. Do not create "Salary" and "Salaries" and "Staff Salary".
- For banks with several accounts, add the last digits: "Canara Bank 4521".
- Avoid a ledger called "Miscellaneous" for everything; it hides what money was spent on.
Altering and deleting
- Alter: Gateway of Tally > Alter > Ledger, choose it, change and save. From a report, Ctrl+Enter on a ledger opens it for alteration.
- Delete: open the ledger in alteration and press Alt+D. Tally allows this only if the ledger has no vouchers.
- Wrong group? Alter the ledger and change "Under". All its vouchers move with it, and the reports correct themselves.
Seeing all ledgers
Gateway of Tally > Chart of Accounts > Ledgers lists every ledger with its group. Read down the list once a month; duplicates and wrongly grouped ledgers are easy to spot there.
Many ledgers at once
TallyPrime can import masters from a spreadsheet through Alt+O (Import) > Masters, using the sample file it provides. That is useful when moving hundreds of parties from another system; a beginner should first create a few dozen by hand to understand the fields.
Questions learners ask
How do I create a ledger in TallyPrime?
Gateway of Tally, Create, Ledger. Enter the name, choose the group in "Under", fill any other details and press Ctrl+A.
Can I create a ledger while entering a voucher?
Yes. Press Alt+C in the ledger field to create a new ledger without leaving the voucher.
Why can I not delete a ledger?
Tally will not delete a ledger that has vouchers. Delete or change those vouchers first, or simply stop using the ledger.
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An independent learning site. Tally and TallyPrime are trademarks of Tally Solutions Private Limited. This site is not connected with, approved by or paid by Tally Solutions, and uses none of its logos, screens or course material. Keys and menu paths were checked against Tally's own help site on 12 November 2026; the software changes with each release, so if your screen differs, follow Tally's help (press Ctrl+F1). Tax treatment in the examples is for learning only: ask your accountant.