Learn TallyWhy this matters
Every ledger you create in Tally must be placed under a group, and the group decides where the ledger appears in the Profit and Loss Account and the Balance Sheet. A ledger under the wrong group does not stop Tally from working; it quietly puts a figure in the wrong statement. Rent under Fixed Assets inflates the assets and the profit together. Carriage inward under Indirect Expenses gives a wrong gross profit. These mistakes are easy to make in the first weeks and tedious to find later, so it is worth half an hour to make the choice automatic.
How to think about each ledger
- A person or firm you trade with: a customer is a Sundry Debtor; a supplier is a Sundry Creditor.
- Something owned: for long use, Fixed Assets; cash, bank, stock, deposits and advances are under Current Assets, each in its own sub-group.
- Something owed: to the owner, Capital Account; a loan, Secured or Unsecured Loans; taxes, Duties & Taxes; unpaid expenses, Current Liabilities.
- An expense: connected with buying or producing the goods, Direct Expenses; everything else, Indirect Expenses.
- An income: sales under Sales Accounts; other trading income, Direct Incomes; interest, commission and discounts, Indirect Incomes.
Ledgers that trip people up
- Drawings goes under Capital Account, because it reduces the owner's capital. It is not an expense.
- Bank overdraft goes under Bank OD A/c, a liability, not under Bank Accounts.
- Fixed deposit goes under Deposits (Asset), not Investments or Bank Accounts, in the usual placing.
- Carriage inward is a direct expense; carriage outward is indirect.
- Prepaid expenses and advances given are assets, under Loans & Advances (Asset).
- Outstanding expenses are liabilities, under Current Liabilities.
- GST ledgers go under Duties & Taxes, never under expenses.
The full table of ledgers and groups is in the lesson on groups and ledgers. Aim for twenty correct in a row before moving on to creating ledgers.
Questions learners ask
How many ledgers are in the quiz?
The quiz draws from 67 common ledgers, each with its correct group among the 28 predefined groups.
Is my score saved?
No. The score lasts only while the page is open.
What if my office puts a ledger under a different group?
Some ledgers can reasonably sit under more than one group, and offices differ. The quiz uses the usual textbook placing; follow your accountant at work.
Lessons
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.