How many types of groups are there in Tally Prime ?

28 pre-defined groups are there in tally prime, when company has been created. Similarly, two ledgers are automatically created. They are
1. Cash
2. Profit and loss account

We will have to avoid these two ledgers and create all other ledgers as per the transactions. However, in this article we will find out which of the 28 pre-defined groups will get the ledgers in which group.

Groups Explanation with Examples

1. Bank Accounts :

Ledger related to bank accounts come into this group. That bank account can be a current account or savings account.
Examples of Bank account ledgers :
Canara Bank, State Bank account and Union bank of india

2. Bank OCC A/c :

Bank OCC A/c means Bank open cash credit . Bank OD A/c means Bank over draft account. If the company provided with loan facility, then the ledgers should be given to this group. Banks gives a loan based on current assets and deposits. And company should have current account in the bank.

Examples for Bank OCC A/c Bank O/D Account :
SBI OCC A/c , Canara Bank O/D account etc.

3. Bank O/D account:

This is alias group of bank occ.

4. Branch / Divisions :

If the organization has branches or divisions in different places, the ledgers should be add into this group.

Example : Kodebinary – Rajam, Kodebinary – VSKP etc.

5. Capital Account :

If the owner of the company invests in the company, the investment amount is called the Capital Account. All the ledgers of related to the capital come into this group. A capital account is a debt to the company. The company borrows the capital amount from owner as it has not raised the investment for itself. The company does business using that capital amount.

Moreover, Drawings come into this group even if the owner withdraws his capital to a full or some amount. And if owner uses the company’s cash for his own uses, they will also have to be given to the Capital Group. These are written as Drawings account ledger.

Examples of ledgers coming into capital group :
Capital account of Tarak, Capital Account of Raaji, Capital account of Riya and Drawings account of Tarak.

6. Cash – in – Hand :

A ledger with cash-in-hand group is created by default. That’s Cash ledger. However, any ledgers with the cash can be given to this group. Let us learn about the ledger petty cash for example. If some amount is separated from the main cash in the company for sundry expenses, the amount is called petty cash. Selection should be done cash-in-hand as a group for petty cash.

Let’s take another example. The cashier one who monitors all the cash expenses in the company. But let’s say stores department and accounts department have allocated some amount for their expenses. Then ledgers come as Cash at Stores department and Cash at Accounts department. They should be given cash – in – hand group as the company has cash.

7. Current – Assets :

All the current assets of the company come into this group. Mobile or computer purchased for company needs can be given to this group. More over, any receivable incomes to the company can be given this group.
Examples of receivable incomes :
Commission receivable, Rent receivable and interest receivable etc.

8. Current Liabilities :

All the current liabilities of the company come into this group. The expenses to be paid are called current liabilities . Examples for expenses payable : Salaries payable, travelling charges payable etc.

9. Deposits (assets) :

Let’s say our company has taken internet connection from Airtel company. Let’s say the company paid a 2,000 rupees in advance in order to take an internet connection. That advance paid by the company is called a security deposit. This is Asset. Such ledgers come into this group. If the company ever wants to remove internet connection, it will recover the advance it has given in the past. That’s why it became an asset. If the company ever fails to pay the internet bill, the airtel company will deduct from the advance it has given in the past.

Examples : Security deposit – internet, Security deposit – phone etc

10. Direct Expenses :

The company’s direct expenses come into this group. There is a big difference between direct expenses and indirect expenses here. Let’s taken an example of this. The wages paid to workers working near the machinery at a factory that produces jute can be paid to the direct expenses group. Because even if the machinery repairs or workers stage a dharna, the entire production will stop. For that, direct expenses like this come into this group. Apart from that, all expenses in the office come into the indirect expenses group.

28 groups in tally prime