The names of all the Ledgers that we created in M3_T1_Caselet are

given below along with the Groups that they will appear under in Tally.

S.No. Ledgers Groups they will appear under

1 HDFC Bank A/C Bank Accounts

Reason: They involve all the ledgers representing

money deposited in banks under various accounts like,
Current account, Savings account, Short term deposit
accounts and so on.

2 Richa Verma’s Capital A/C Capital Account

Reason: As defined earlier, Capital represents the

amount invested by the owner(s) of the business. All
Capital accounts will be placed under this group.

3 Rent A/C Indirect Expenses

Reason: Rent is an indirect expense because it’s not

directly related to any production activity here.

4 Security Deposit A/C Deposits (Asset)

Reason: Since it is a deposit given to the landlord which

will be refunded back once we vacate the premises. So,
this will appear under deposits.

5 Furniture A/C Fixed Assets

Reason: Fixed assets also called non-curent assets.

The assets that are to be used for longer than 12
months or assets other than current assets are known
as Fixed assets.

6 Air Conditioner A/C Fixed Assets

Reason: Fixed assets also called non-curent assets.

The assets that are to be used for longer than 12
months or assets other than current assets are known
as Fixed assets.

7 Computer A/C Fixed Assets

Reason: Fixed assets also called non-curent assets.

The assets that are to be used for longer than 12
 months or assets other than current assets are known
as Fixed assets.

8 Softonics Ltd.’s A/C Current Liabilities

Reason: You can observe that we have classified

Softonics Ltd.’s A/C under Current Liabilities while Hari’s
A/C is placed under Sundry Creditors. This is because it
is recommended that only those vendors from whom we
purchase goods shall be placed under Sundry Creditors
and from whom we purchase assets shall be directly
under Current Liabilities.

9 Cash A/C Cash-in-Hand, Ledger has been already created by

Tally.

Reason: Tally.ERP 9 automatically creates a ledger

named Cash A/C in this group. You can open more than
one cash account if required, for example: Petty Cash
(cash used for small expenses).

10 Purchase A/C Purchase Accounts

Reason: This represents all the procurements of goods

by the organization for production or reselling purposes.
This will include both cash purchases as well as credit
purchases.

11 Hari’s A/C Sundry Creditors

Reason: Amount payable or amount that has to be paid

to suppliers from whom goods are purchased or whose
services are utilized. For each party, a separate ledger
shall be created under this sub-group.

12 Swati’s Boutique’s A/C Sundry Creditors

Reason: Amount payable or amount that has to be paid

to suppliers from whom goods are purchased or whose
services are utilized. For each party, a separate ledger
shall be created under this sub-group.

13 Cartage A/C Direct Expenses

 Reason: Cartage is a direct expense as it is incurred
directly in relation to purchases and production activity.

14 Electricity Bill A/C Indirect Expenses

Reason: Electricity bill is an indirect expense because

it’s not directly related to any production activity here.

15 Water Bill A/C Indirect Expenses

Reason: Water bill is an indirect expense because it’s

not directly related to any production activity here.

16 Sales A/C Sales Accounts

Reason: All sales related accounts will be placed under

this group.

17 Suresh’s A/C Sundry Debtor

Reason: It includes ledgers of all Parties to whom

goods/services were supplied on credit and the payment
for them yet to be received. For this reason, it is also
referred to as Accounts Receivable.

18 Discount Received A/C Indirect Incomes

Reason: Salary is an indirect income because it’s not

directly related to any sales activity here. Depending on
the company policy, some people consider Discount
Received as a Direct Income as well.

19 Salary A/C Indirect Expenses

Reason: Salary is an indirect expense because it’s not

directly related to any production activity here.

20 12% Govt. Bonds A/C Investments

Reason: Investments are long term assets representing

your investment accounts like Investment in Shares,
Bonds, Govt. securities, long term Bank deposit
accounts etc.

21 Fees A/C Direct Incomes

 Reason: It’s a main source of income for business and
related to primary business of the organisation.

22 WiFi Charges A/C Indirect expense

Reason: WiFi charges is an indirect expense because

it’s not directly related to any production activity here.