Create trial balance

Return to the Gateway of Tally and shut Indus Enterprises and select National Traders.
Given below is the Trial Balance of National Traders extracted from the Books of Accounts at
the close of business on March 31, 2009.

The Chart of Accounts to be prepared is based on the above Trial Balance of National Traders. This is to assist you in understanding the classification of ledgers. To help you, each account has been marked as :

• P - Pre-defined Tally.ERP 9 Group (no action)
• L - Ledger account required
• NG - New Group required
• NPG - New Primary Group required

Chart of Accounts of National Traders
1. Capital Accounts as appearing in the Balance Sheet:

 2. Revenue Accounts appearing in the Profit & Loss Account

Tally.ERP 9 Walk-through to Create Group Names for National Traders.
Check the following:

1. Check whether the Current Date is April 1, 2009. To change the Current Date, click F2: Date on the button bar. Note that Tally.ERP 9 increments the date assuming that you want to change to the next day. You can accept it or change it. Type 1-4-2009 and press Enter to accept.
2.  Press Esc, if you do not have the Gateway of Tally menu displayed.Let us now get familiar with Tally.ERP 9's Display functions.

Displaying groups in Single Group and Multiple Group in the chart of accounts
Go to the Gateway of Tally > Accounts Info. > Groups > Display (Single Group) > Select
Bank Accounts.

You can now use the Page Up and Page Down keys to view different groups.

Let us now view the List of Groups in the Multiple Display Mode.
Go to the Gateway of Tally > Accounts Info. > Groups > Display (Multiple Groups) > Select
All Items

Adding groups to the chart of accounts

• Depreciation under Primary Group 
• Buildings and Office Equipment under Fixed Assets

We can access all the configuration options for the Masters from the Gateway of Tally > F12: Configure > Accts / Inventory Info.
Go to the Gateway of Tally > Accounts Info. > Groups > Create (Single Group).
Click on F12: Configure button and set Yes to:

• Allow ALIASES along with Names
• Allow Language ALIASES along with Names.
• Allow ADVANCED entries in Masters.

Accept the configuration screen and Tally.ERP 9 displays the Group Creation Screen in which you
will notice additional information like:
1. Alias – This is a simple mechanism of identifying an account by another name.
2. Group behaves like a Sub-Ledger – The group behaves like a Control Account for the ledgers
it contains when set to Yes. Only the group balance will be displayed, not the individual
ledger balances. It is useful for groups such as Sundry Debtors and Sundry Creditors (which
are pre-set to Yes) where there can be numerous ledger items.
3. Nett Debit/Credit Balances for Reporting – By setting this to Yes, amounts will be displayed
as a net figure instead of separate debit and credit balances in reports.
Create Group
1. Name: Depreciation
2. (alias): Type Deprn and press Enter. This allows you to refer to the group by either name. You will notice that there is a field to enter a second alias if required. If you enter a name here, another alias field will be displayed, and so on. Tally uses the main name on all displays and reports, but this multiple alias facility is extremely useful for data entry.
3. Under: Select Primary from the list of Groups
4. Nature of Group: Select Expenses
5. Does it affect Gross Profits?: No
Since these are Expenses (and the same is true for Income) which affect the Profit & Loss A/c, Tally.ERP 9 needs to know if the group affects the gross profit. This field will not appear if you are adding a group to an existing group.
6. Group behaves like a Sub-Ledger: No
7. Nett Debit/Credit Balances for Reporting: No.
8. Used for Calculation (eg. Taxes, Discounts): No
9. Method to Allocate when used in Purchase Invoice: Not Applicable

The Group Creation Screen appears as shown below :

10. Press Y or Enter to accept the screen.

Altering Groups
Once created, groups can be altered by selecting the Alter option for single or multiple groups. The procedure is the same as used earlier to display groups, except that, here the data can be altered.

Deleting Groups
You can delete a group via the Group Alteration (Single Mode) screen by pressing Alt+D. However, you cannot delete Tally.ERP 9’s pre-defined groups, or groups with sub-groups or groups containing ledgers. The lowest level must be deleted first.

Tally.ERP 9 walkthrough to create National Traders ledgers with opening balances.

Go to the Gateway of Tally > Accounts Info. > Ledgers > Create.
Adding Single Ledgers
1. Name: Mutual Trust Loan
2. Alias: Skip this field
3. Under: Secured Loans
4. Inventory values are affected ?: No
5. Opening Balance (on 1-April-2009): 50000 Cr

6. Press Y or Enter to accept the screen.

Adding Multiple Ledgers

• Under Group: Sundry Debtor
• Name of Ledger: Data Link Technologies
• Opening Balance: 26000 Dr
• Name of Ledger: Spectrum Computers
• Opening Balance: 12400 Dr
• Name of Ledger: Supreme Computers
• Opening Balance: 13500 Dr
• Press Y or Enter to accept the screen.

Altering and Displaying Ledgers
The procedures for altering and displaying ledgers are similar to those of groups. Now try this out on National Traders by altering the Tally.ERP 9 pre-defined ledger for Cash to Petty Cash and entering the opening balance:

• Select Alter from the Single Ledger option.
• Select Cash from the List of Ledgers.
• Change the Name from Cash to Petty Cash.
• Enter the Opening Balance of 500 Dr.
• Press Y or Enter to accept the screen.

If you use Display in Single Ledger now, you will see that the List of Ledgers shows Petty Cash
instead of Cash.

Deleting Ledgers
You can delete a ledger, by pressing Alt+D in the Ledger Alteration screen.
You will not be able to delete a ledger, once the financial transactions (vouchers) have been entered (excluding the Opening Balance). If there is a need to delete a ledger with any financial transactions the lowest level must be deleted first by pressing Alt+D.

Create other Ledgers given in the Trial Balance

1.  Remember, you have already input the ledger details for the two Sundry Debtors, the Mutual Trust Loan and Petty Cash.
2. Work from the Trial Balance, referring to the Chart of Accounts for the group to select, and create the ledgers using the single or multiple options, depending on the number of ledgers you create.
3. For the ledgers under Sales Accounts and Purchase Accounts, set Inventory values are affected? to No. Reset it to Yes when you start Inventory Vouchers.
4. Please enter on the ledger names as per the Trial Balance.
5. Sundry Creditors should be set up using the multiple options in the same way as the Sundry Debtors, except that the opening balances will be credits.
6. Watch the debits and credits on the two accumulated depreciation ledgers as, Tally.ERP 9 assumes it to be a debit balance (Dr). You need to change this to Cr.
7. Create a ledger for Bank Interest even though its balance is zero.

Verify the Ledgers and Opening Balances
In practical situations, that is all you have, the Chart of Accounts and the Trial Balance. You need to match the Trial Balance ledger accounts with the Chart of Accounts. You might put the opening balance figures in the chart of accounts itself. Tally.ERP 9 needs to know the Group under which each account falls at the time you are creating the ledger account.

To ease your walk-through, the following Multi Ledger Alteration screen is taken from Tally.ERP 9 after entering the data. You can use them to verify your ledger accounts:
Go to the Gateway of Tally > Accounts Info. > Ledgers > Multiple Alteration > Select All
Items

•  Press Y or Enter to accept the screen