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Tally

Jayakrishna (Student) (132 Points)

12 December 2015

In tally application, is it required to prepare groups along with ledgers??what is the use of it?

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3 Replies

Karthik Venkatram (Chartered Accountant) (247 Points)
Replied 12 December 2015

Yes it is mandatory to Group Ledgers under seperate catogories.

Otherwise, P& L and B/S will not reflect the right figures.

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Kushal Khator ( CA ) (562 Points)
Replied 12 December 2015

Yes, it is required. Also it helps u to search any ledgers from group heads in quick go instead of searching whole list of ledgers..!! Also it gives a correct picture of your financials..!!

CA Prateek Garg (CA in Practice) (1447 Points)
Replied 14 December 2015

Yes, It is required to created a ledger under different group..

Group is nothing but specifying the nature of ledger you are creating..

Suppose you are to creating 2 ledgers.. 'Rent A/c' and 'Advance Rent A/c'...

Now How would tally know that if you are debiting something to 'Rent A/c' then is to be carried to P&L and if you are debiting something to 'Advance Rent A/c' then it is to be carried to Asset Side of Balance Sheet.

You have to tell the Tally that 'Rent A/c' is an Indirect Expenses and 'Advance Rent A/c' is a Current Asset. This is done by choosing the correct group of a ledger.