Chart Of Accounts In Tally Prime: A Definitive Guide For Beginners

The chart of accounts in Tally Prime matters a lot as it offers a comprehensive guide for all beginners. All these accounts are classified under several categories based on their nature and purpose.

In most cases, groups are classified under the category of ledger accounts. This is why your brand development needs to boost your brand value to a greater level. Tally Prime has 28 predefined groups, 15 primary groups, and 13 subgroups.

Now, how to use the Chart of accounts matters a lot if you are a beginner in Tally Prime. So, let’s get through the details one after another about the concept.

What Are The Chart Of Accounts In Tally Prime?

The chart of accounts is an organized list of all the accounts that are used by the business in order to record all the financial transactions properly. All these accounts are classified under different categories. These are based on nature and purpose.

1. Groups

Groups are the classifications under which all the ledger accounts are categorized. All the Tally Prime are categorized as 28 predefined groups and 15 primary groups as well as it is also further subdivided into 13 subgroups.

The chart of accounts in Tally Prime matters a lot. It comprises several categories. Some of the essential factors that you should know here are as follows:-

Some of the common groups includes the following:-

• Assets:- Current assets, investments, and fixed assets
• Liabilities:- Current liabilities and secured loans
• Income:- Indirect Income and direct income
• Expenses:- Indirect expenses, and direct expenses

2. Ledgers

In most of the cases, ledgers are the actual accounts where all the transactions are kept in place. Every ledger belongs to some specific group like the bank account group, sales group, sales account group, and sales account.

Some common examples of ledger accounts are as follows:-

• Bank account
• Cash account
• Sales account
• Capital account
• Purchase account

3. Vouchers

Vouchers represent all the Tally types. This can help you in meeting your requirements with absolute ease. Some of the essential reasons that you should consider here are as follows:-

• Payment Voucher
• Receipt Voucher
• Purchase Voucher
• Sales Voucher

4. Stock Items & Stock Groups

All the individual items that your business trades or manufactures are known as stock items. All the categories are grouped and classified under several groups. These are some of the crucial facts that can assist you in meeting your needs with complete clarity.

Stock items can be classified in different ways as this can boost the scope of your brand value to a greater level.

5. Cost Centers & Categories

Cost centers and Cost categories can be used for advanced tracking and allocation of all the incomes as well as expenses for different projects, segments, and departments. All these factors are essential for maintaining the cost centers and cost categories.

6. Currencies

If your business deals with multiple currencies then tally allows you to manage and define them. You must get through the details of it while reaching your needs easily. As these can assist you in meeting your needs.

7. Budgets

To monitor the financial performance you can create all the budgets as well as groups on ledgers. It can help you to monitor all the financial performance. These can boost the scope of your brand value to a greater level.

What Are The Default Primary Groups In Tally Prime?

There are several default primary groups in Tally Prime that you should be well aware of. Some of the key solutions that you must know from your end are as follows:-

• Current asset
• Capital account
• Direct expenses
• Current Liabilities
• Indirect Expenses
• Direct Income

Benefits Of Chart Of Accounts In Tally Prime

There are several benefits of a chart of accounts in Tally Prime that you should be well aware of. Some of the key factors that you must be well aware of are as follows:-

1. Enhanced Reporting

If all your business uses the chart of accounts accurately then it can easily generate all the informative financial reports. All you can do is you can use these reports to generate all the valuable insights to enhance your business performance.

2. Improved Financial Accuracy

A well-maintained chart of accounts in accounting reduces all the errors by recording all the transactions. As by categorizing all the expenses and incomes properly. It is one of the crucial aspects of the chart of accounts in Tally Prime.

3. Streamlined Tax Preparation

If your business has maintained a chart of accounts in the accounting process then this will be helpful during the tax filing process. This is one of the crucial aspects of Tally Prime that you must be well aware of.

If your business has maintained the simplified charts of accounts in the process of accounting then it will be helpful during tax filing. As it saves lots of time for gathering records and for reducing errors.

4. Simplified Forecasting & Budgeting

COA helps in analyzing expenses and income trends that can be utilized for informed decision-making and for foreseeing future financial projections. This is one of the crucial aspects of simplified forecasting and budgeting.

It is one of the essential aspects of budgeting and forecasting that you must be well aware of. A chart of accounts in Tally Prime can offer you the opportunity to develop your financial planning in perfect order.

5. Stronger Financial Management

Having clear insights into the chart of accounts in Tally Prime allows you to make data-driven decision making. This helps in the proper allocation of resources and cost control. All these will help you improve the financial health of your business.

Proper maintenance of strong financial management can help your organization to grow at a faster rate. This can boost the scope of your brand value to a greater level. Try to develop a better solution that can boost the scope of your financial management.

How To View Financial Accounts In Tally Prime?

There are several ways to view financial accounts in Tally Prime. Some of the key processes that you should know here are as follows:-

You can explore the chart of accounts in Tally Prime. For any kind of Master such as stock items, ledgers, stock groups, and others are essential for your business development.

1. Press Alt + G > Type Select after that go to Chart of Accounts > then Gateway of Tally prime > after that Chart of Accounts > then Ledgers and press Enter. In most of the cases, accounts are classified into capital and revenue. Assets and liabilities are classified into Income and expenditure
2. Press the F2 key to change all the periods. If it is necessary to change
3. You need to press F12 to view the Name only, Alias only, Name Alias, and Alias Name if required
4. The next step is to press F10( Other Master). You need to select the master for which you want to witness the report. After that, you need to Press Enter
5. Press F5 in order to get the ledger View

Alternatively, you need to press Ctrl+H > Ledger View and press Enter.

This will help you to get the information of the accounting groups for respective ledgers. Type of GST registration, State name, UIN/GSTIN, and opening balance.

1. After that, you need to press F5 to Switch back all the default views

How To Validate Changes And Deletion In Masters?

In Tally Prime Edit Log and Tally Prime release 2.1 and it later on it releases when the edit Log is enabled. Your auditor can view the altered and all deleted masters in all the chart of accounts. If you want to edit the Log Log in Tally Prime, then you have to refer to create the comp;any section in set up of Company topic.

1. Open the Chart Accounts
2. Press ALT+G type select the chart accounts and press Enter. Gateway of Tally > Chart Accounts > Ledgers and Press Enter.
3. Type or select Ledger and press Enter.
4. Press Ctrl+ B (Basis Of Values)

The Basis Of Values sub-screen appears.

By default, all the report is configured for All Ledgers (Altered or Non-Altered)

1. You need to configure a chart of accounts in order to view altered ledgers
2. Select the show report option after that you need to press enter
3. Press Enter on Altered Ledgers. This will include all the ledgers in Tally Prime with all the edit Logs enabled
4. You must enter to set it as No If you do not want to view all the deleted ledgers
5. Press CTRL +A

The list of altered ledgers appears shown below.

Similarly, you can easily view the chart of accounts for deleted and altered stock items and groups.

How To Create/ Alter Masters In Single Screen?

You may have a list of ledgers or stock items that are created in a company. Chart of accounts offers you the facility so that you can create multiple masters on a single screen. There by easing the data entry process thus saving a great deal of time. This will also offer you the complete flexibility to create the Master. Thus different types are based on groups.

So, let’s explore the steps that you need to follow here from your counterpart.

Quickly Set Up The Opening Balance sheet

There are certain steps you need to follow to set up the opening Balance sheet in Tally Prime. Some of these steps are as follows:-

• The first step is that you need to press Alt +G > Chart Of accounts> Ledgers> After that you need to press Enter. There is an alternative way also present that you need to follow Gateway Of Tally > Chart Of Accounts > Ledgers > click on Enter.
• You should Press Alt + H > Multi Create > click on Enter.
• In the Ledger Creator screen, you need to show off some ledger details

Under The Group You need to press Backspace to alter the parent group if you require.

• You can also click on Alt + H to alter the group
• Name the ledger in order to alter the Ledger Name
• Select the groups from that ledger from the list of groups
• Enter The opening Balance
• You need to provide all other details on the ledger you have created. Press Ctrl +I
• If you are creating the bank ledger under the category more details then you need to select the bank account details or bank configurations
• If you create the party Ledger you can select the mailing details or the contact details
• Once you have provided all the details for all the ledgers as you do often then go for the contact details
• After you have provided all the details Press Ctrl + A to save the entry

Ways To Set Up Opening Stock Summary Quickly

There are some simple steps you can follow to set up an opening stock summary quickly. Additionally, you should take care of the facts that can make things work perfectly well in your favor.

• ALT +G Then you have to go to Type Chart Of Accounts > select Stock Items > click on Enter

Gateway Of Tally > go to Chart Of Accounts > then Stock Items > after that click on Enter.

• Click on Alt+H > Choose Multi Create.

• You can choose the Stock Group under the Group Section
• Click On All Items > An Existing Group > Create
• Enter The Name Of Items, Rate, Opening quantity, units, and Amount
• Accept all Multi Stock Item Creation Screen
• The last step is to press the key Ctrl+A to save

Alter Multiple Masters

In the chart of Accounts, you should press Alt +H and Multi Alter + Press Enter.

Select The Bank Ledger Press Ctrl +I then click on Bank Account Details+ Alter the required Details.

• In the chart of Accounts, you must press Alt + H > Multi-Alter > Press Enter
• Select The Bank Ledger + Press Ctrl+I > Bank Account details > Alter The required Details
• Ctrl + Enter you can press for doing the ledger alteration

Final Take Away

Hence, these are some of the common charts of accounts in Tally Prime that you must know from your end. If you want to build your career in the accounting domain then you cannot ignore these mentioned processes.

You can share your views and opinions in our comment box as it can make things work for you in all possible manners. This can boost the chances of your accounting standards in Tally Prime. These can be some of the most crucial aspects of Tally Prime that you should be aware of.

• Author
• Recent Posts

ICA Edu Skills Team

Working with businesses in diverse industries. I'm passionate about helping others understand and manage their finances effectively. This blog is where I share practical tips, insightful guides, and the latest updates on accounting, taxation, GST, TallyPrime, and advanced Excel. Feel free to ask questions, leave comments.

Latest posts by ICA Edu Skills Team (see all)

• Custom Number Formatting In Excel: Learn Amazing Tricks To Employ - December 27, 2024
• 70 Most Common Power BI Interview Questions and Answers - December 20, 2024
• Chart Of Accounts In Tally Prime: A Definitive Guide For Beginners - December 13, 2024