Groups In Tally Prime – Essential Concepts To Learn

Groups in Tally Prime can help you organize and classify the accounts in proper order. This can boost the scope of your brand value to a greater level. It comprises of collection of various ledgers of the same nature.

One of the best things about Tally Prime is that you can easily create, alter, and change the group. If any group is created under the purview of assets and liabilities forms the part of balancesheet. Now, if you want to know these groups in detail then you must read this article completely.

All the groups will assist you in organizing all the ledger accounts. This will help you to view all the financial statements in perfect order. Any groups that are created under the assets and liabilities forms the part of balancesheet.

What Are The Groups In Tally Prime?

In TallyPrime all the groups are some of the groups present in prime categories that can help you to classify the ledger accounts. All the financial data you can organize systematically. These are all properly structured charts of accounts. However, it is essential for reporting analysis, decision-making, and reporting. Tally Prime comprises 28 Predefined groups out of these there are 15 primary groups and 13 subgroups.

What Are The Predefined Groups In Tally Prime?

Tally Prime has 28 Predefined groups out of which it makes the process of data entry smooth as well as accurate. This is important to organize and classify all the accounts accurately. All these groups are classified into 15 primary groups and 13 subgroups.

1. Loans.
2. Capital Account.
3. Fixed Asset.
4. Current Liabilities.
5. Current Assets.
6. Investments.
7. Sales Accounts.
8. Miscellaneous Expenses.
9. Purchase Accounts.
10. Sales Accounts.
11. Indirect Incomes.
12. Direct Incomes.
13. Indirect Expenses.
14. Direct Expenses.
15. Suspense Accounts.
16. Provision.
17. Sundry Creditor.
18. Sundry Debtor
19. Cash In Hand.
20. Bank Accounts.
21. Duties And Taxes.
22. Stock In Hand.
23. Unsecured Loans.
24. Secured Loans.
25. Provisions.
26. Deposits.
27. Branch Division.
28. Retained Earnings.

What Are The Primary Groups In Tally Prime?

There are 15 primary groups in Tally Prime that you must be well aware off. Some of the core groups that you should be well aware of are as follows:-

1. Capital Account

The Capital account groups in Tally Prime are a predefined primary group that will help you to track all the accounts. All these are related to owners equity as well as funds invested in business. Most commonly all these groups are typically related to all the items that are related to stake in ownership surplus reserves and funds in the organization.

Items That Are Included In Capital Accounts

• Reserves and surplus.
• Capital Funds.

Examples Of Capital Accounts In Tally Prime

• Retained Earnings.
• Shareholders Equity.
• Partners Capital Account.
• Share Capital.
• Properties Capital Account.

2. Loans

The liabilities and loans group in Tally Prime is the primary group that is basically used to manage and record all the accounts. A business that takes the loans is related to this group. All these groups are classified under the column of liability within the balance sheet. These are essential for tracking as well as repayment of the outstanding balances that are all present within the borrowed funds.

Items that are related to Loans

• Unsecured loans.
• Secured Loans.

Examples Of Loans

• Mortgage loan.
• Home Loan.
• Student Loan.
• Car Loan.

3. Current Liabilities

Current liability is another one of the most important predefined groups in Tally Prime that you should know from your end. You must know about this before handling this software. In your business, if there are any short-term liabilities present then this group will help you to identify them. Some of the important items that are present in this section are as follows:-

Items Included In Current Liability Section

• Outstanding expenses.
• Short-term liabilities.
• Sundry creditors.

Examples Of Current Liability Section

• Payroll Taxes.
• Accounts Payable.
• Short-Term Notes.
• Payroll.
• Interest Payable.
• Accrued Expenses.

4. Fixed Assets

Fixed assets are one of the primary groups in TallyPrime. Here all the accounts are related to long-term, intangible, and tangible assets. In most cases, these are all categorized assets that are being purchased for long-term investments present in the business. In some cases, people can resale their fixed assets as well.

Items Present In Fixed Assets Section

• Machinery.
• Vehicles.
• Building.

Examples Of Fixed Assets

• Furniture and fixtures.
• Land and building.
• Vehicles.
• Plant & Machinery
• Equipment & Computers.

5. Investments

All the investment category is used to manage all the financial investments that are made by the business. This helps to record all the primary groups. These include making investments in bonds, shares, mutual funds, fixed deposits, and other types of financial instruments.

Items Present In The Investments Section

• Mutual funds.
• Bonds.
• Shares.

Examples Of Investments

• Bonds.
• Shares.
• Mutual Funds.
• Fixed Deposits.
• Other Investments.

6. Current Assets

All the current assets group present in Tally Prime is one of the primary groups that are useful to classify all the short-term assets. Most of the time, all these are expected to be converted into cash. For maintaining the business operating cycle these can be utilized. These assets help you to maintain the day to day operation of the business. You must not make your selection and choices incorrectly.

Items Present In The Current Asset Section

• Accounts Receivable.
• Cash and Cash Equivalent.
• Prepaid Expenses.
• Inventories.

Examples Of Current Assets

• Sundry debtors.
• Cash & Bank Balance.
• Prepaid Expenses.
• Short-Term Investments.
• Accrued Income.
• Loans and Advances.
• Other Current assets.

7. Miscellaneous Expenses

Miscellaneous expenses in Tally Prime refer to those expenses that are minor and these are not attributable to any kind of specific activities. All these are known as deferred revenue expenditures. All these expenditures are recorded under the group of miscellaneous expenses. It helps to maintain greater operational costs to a greater extent.

Items Included In Miscellaneous Expenses

• This referred to some deferred revenue expenditures.

Examples Of Miscellaneous Expenses

• Provisions.
• Duties and taxes.
• Miscellaneous Expenses.

8. Sales Accounts

All the sales account groups are comprised of the primary groups that are used to manage and record all the incomes that you can generate from the sales of any services and goods. This forms an integral part of the entire profit and loss account. It helps to categorize all revenue from sales and reporting analysis.

Items recorded in Sales accounts:-

• Helps to record sales and income of goods.

Examples Of Sales Accounts:-

• Interstate sales.
• Local Sales.
• Export Sales.
• Taxable and Non Taxable sales.
• Retail and wholesale sales.

9. Purchase Accounts

All the purchase account group in Tally Prime forms part of the primary group. This group forms the part of Profit and loss account. All the expense section forms part of the direct costs that are associated with the process of procurement.

Items Recorded In Purchase Accounts

• This maintains the purchase of Goods and services.

Examples Of Purchase Accounts:-

• Interstate purchase.
• Local Purchase.
• Exempt Purchase.
• Import Purchase.
• Raw Material Purchase.

10. Direct Incomes

All the direct incomes are attributable to all the manufacturing as well as production. This can include all the raw materials and wages. All these expenses are attributable to the complete manufacturing process. Here, the procurement of the goods is essential. However, these will help the goods to bring this thing at a saleable good rate.

Items Included In Direct Income

• Interest Of Income.
• Commission.
• Rent Received.

Examples Of Direct Income

• Sales Register.
• Profit and Loss Account.
• GST Reports.

11. Indirect Incomes

Indirect incomes are those types of income that are not directly related to your business but for sure help your business to grow. In most of the cases, it forms a secondary source of income.

Items Included In Indirect Income

• Commission
• Interest Income

Examples Of Indirect Income

• Sales Register.
• GST Reports.
• Profit & Loss Account.

12. Indirect Expenses

Indirect expenses are those unrelated to producing any goods or services. This is necessary for the overall support as well as the functioning of the business. These expenses are essential for running a business. All of these are not directly tied to any procurement or manufacturing process.

Items Included In Indirect Expenses

• Salaries.
• Rent.
• Advertisement

Examples Of Indirect Expenses

• Selling and distribution expenses.
• Administrative Expense.
• Depreciation.
• Financial Expenses.
• Rent & Rates.

13. Direct Expenses

All the direct expenses are those expenses that are directly related to the production of your goods and services. However, these are related to the saleable and relatable states. In most cases, these expenses are directly attributable to the procurement and manufacturing of goods.

Items That Are Included In Direct Expenses

• Wages.
• Raw Materials.

Examples Of Direct Expenses

• Wages.
• Raw Materials cost.
• Freight Inward.
• Factory Overhead.
• Packing Expenses.
• Custom Duties.
• Royalty & Production.
• Power & Fuel

14. Suspense Accounts

In Tally Prime, a Suspense Account is used to temporarily hold transactions when there is uncertainty regarding their classification. It allows businesses to record transactions even when they lack complete details, ensuring that accounts remain balanced.

Items Included in Suspense Account

• Unclassified Payments.
• Unidentified Receipts.
• Accounting Errors.
• Unreconciled Bank Entries.
• Pending clarifications.

Examples Of Suspense Account

• Unmatched receipts and payments.
• Unidentified bank transaction.
• Error rectification.
• Opening balances.

15. Provisions

Tally Prime Provisions are used to record all the liabilities and expenses that are incurred but not yet invoiced. In most of the cases, provisions are created for your future reference. It is anticipated as utilities, salaries, and taxes. Expenses need to be accounted for in it as well.

Items Included In Provisions

• Liabilities for losses.
• Provisions For depreciation.

Examples Of Provisions

• Provisions for bad debt.
• Provisions for income tax.
• Another is the provision for expenses.
• Provisions for depreciation.

What Are The Subgroups In Tally Prime?

There are 13 subgroups present in TallyPrime. In this article, you will get to know the details of these subgroups. So, let’s explore it one after another to have a clear insight into it. You cannot segregate the accounts.

1. Bank Accounts

In Tally Prime, a Bank Account is categorized under the Bank Accounts Group to manage transactions related to banks, such as deposits, withdrawals, and bank reconciliations. It will help you to maintain accounts like savings accounts, overdraft accounts, and current accounts. This is one of the important Subgroups in Tally Prime. Among different groups in Tally Prime, it is one of the essential groups.

Example:- HDFC Bank, SBI Current Account.

2. Cash In Hand

It is used to classify all the cash-related issues like main cash or petty cash. This is one of the main and important groups in Tally Prime. However, it can make the process of cash transactions easier for you.

Example:- Cash Account and Petty Cash.

3. Deposits

This is used to classify all the deposits that are made by the business such as security deposits, and fixed deposits. It is one of the essential groups in Tally Prime that you need to be well aware of. Additionally, you need to be mindful of these crucial facts.

Example: Rent Deposit, and Fixed deposit.

4. Loans & Advances

All the loans and advances that the entities, customers, and employees have to pay are reflected in this group. However, you should be well aware of the solutions that can make things work perfectly well for you.

Example:- Employee loan, and advance to Vendor.

5. Stock In Hand

All these groups in Tally Prime will assist you in classifying the value of stock and inventory in business. You need to be well aware of reserve and maintenance while using Stock in hand.

Example: Raw Materials, and finished goods.

6. Duties & Taxes

All the duties and taxes are used to classify the tax liabilities that are payable to your government. This can take the form of GST, TDS, and VAT. Additionally, it is one of the crucial groups in Tally Prime.

Example:- GST Payable and TDS Payable.

7. Provisions

It is made to classify all the provisions that are used for future provisions and liabilities. However, you should make proper records of the transactions. This is one of the key factors that you should take care of while developing the groups in Tally Prime.

Example:- Provision for gratuity, and Provision for taxation.

8. Sundry Creditors

In most of the cases, it is used to classify the accounts payable. All the amounts are owed to the suppliers. Additionally, this can boost the chances of your creditors to meet their requirements with complete ease.

Examples: Vendor X and Vendor Y

9. Secured Loans

These are all used to classify the loans that can be obtained with the help of security to use the collaterals. However, this is one of the essential as well as important groups in Tally Prime that you can look forward to from your end.

Examples:- Loan against property, and Car loan.

10. Unsecured Loans

Without using the security you can obtain the loans as unsecured loans. It is one of the essential factors that you must be well aware of. This is one of the crucial aspects of Groups in Tally Prime.

Example: Personal loan, and loans from directors.

11. Sundry Debtors

In Tally Prime, Sundry Debtors refer to individuals or companies that owe money to a business due to credit sales. This group is essential for managing outstanding receivables. However, it falls under the category of current assets. Additionally, you need to track the amount of receivables from the customers.

Examples:- Customer A and Customer B

12. Reserves & Surplus

The main purpose of the reserve and surplus is to make classifications for all your retained earnings. Additionally, this can help you to meet your retained earnings requirements with ease.

Examples:- General Reserve, profit and loss accounts.

13. Investments

Whenever, you make investments in shares, bonds, and mutual funds then proper investment decisions matter the most. It will help you to record all the essential transactions in Tally Prime. This is why it helps you to keep the record-keeping process in perfect order.

Examples:- Equity shares, and fixed deposit investments.

How To Delete A Group In Tally Prime?

To delete a group in Tally Prime you need to follow some of the crucial steps that you should be well aware of. There are no ledgers and subgroups are present under it. These are not used in the process of transaction.

Steps To Delete A Group In Tally Prime

There are some of the crucial steps that you need to follow in order to delete a group in Tally Prime. Some of the key steps are as follows:-

1. Open The Group Master

From the Gateway of Tally Go To Gateway Of Tally > Accounts Info> Groups> Alter

2. Select The Group

• Select all the groups that you want to delete from the list.
• Make use of the search option to find out the groups quickly if the list is too long.

3. Check The Group Details

• Ensure that all the groups have no subgroups or ledger under it.
• If there are any ledgers, then you can transfer them to another group or you can delete them.

4. Delete The Group

• Once the group is chosen then you need to press Alt+D or you can click on the delete option at the bottom.
• You will receive a confirmation message like “Are you sure you want to delete this group?”
• The final step is to select “Yes” to confirm.

5. Verify Deletion

• You need to Go Back to the list of Groups and ensure that the groups have been successfully deleted.

How To Use Groups In Tally Prime?

There are several ways to use groups in Tally Prime. Some of the key groups that you should be well aware of. Some of the key steps that you should follow here are as follows:-

Steps To Use Groups In Tally Prime

1. View Existing Groups

• Go to: Gateway of Tally → Chart of Accounts → Groups
• You can see all default groups provided by Tally.
• Press F12 (Configure) to enable or disable additional details.

2. Create a New Group

1. 1. Open Tally Prime and go to Gateway of Tally.
   • Navigate to Chart of Accounts → Groups → Create (Alt + G → Create → Group).
   1. Enter the Group Name (e.g., “Loans Payable”).
   2. Select the appropriate Parent Group (e.g., “Liabilities”).
   3. Choose Yes/No for Nett Debit/Credit Balance for Reporting.
   4. Press Ctrl + A to save.

   3. Assign A Ledger To A Group

   

2. • While creating or modifying a ledger, select the appropriate group under which the ledger should be categorized.
   • Example:
     • Bank Ledgers → Bank Accounts Group
     • Customer Ledgers → Sundry Debtors Group
     • Supplier Ledgers → Sundry Creditors Group

   4. Modify Or Delete A Group

   

3. • Go to: Chart of Accounts → Groups → Alter/Delete
   • Select the group you want to modify or delete.
   • Make necessary changes and save.

   Final Take Away

   Hence, these are some of the core essential groups in Tally Prime that you must be well aware of. Additionally, this can make things work perfectly well in your favor. However, if you can grasp the concepts of Tally Prime Groups properly then you can receive quality job offers from the industry.

   So, please share your views and comments in our comment box. This will help us to know your take on this matter. Try to keep things in perfect order to meet your goals with complete ease.

• Author
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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.

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