How to Create a Ledger in Tally – In less than 5 Minutes

How to create a ledger in Tally

Today, I am going talk (actually write 🙂 ) about how to create a ledger in Tally.

It is very much easy to create a ledger in Tally.

For a fact, it takes less than a 60 seconds to create a single ledger in Tally.

There are total 2 major ways to create a ledger in Tally.

One way is to create a Single Ledger and another way is to create it with Multiple Ledgers.

When you need to create 1 or 2 ledgers, you can create it with the help of Single Ledger option.

On the other hand, when you need to create more ledgers such as 100 ledgers or more ledgers, you can create it easily with help of an option called Multiple Ledgers.

Let us look at both the methods – 1. Single Ledger Method and 2. Multiple Ledger Method one by one step by step.

Single Ledger Method

From Gateway of Tally, go to Accounts Info.

Gateway-of-TallyThen go to Ledgers.


Now, under Single Ledger, select the option Create.


Now you will see a simple Ledger Creation window in which you will have to enter certain details about the ledger.

It looks like in the picture below.


Name – The first option is the Name of the ledger. Enter the name of the ledger, for example, Furniture A/c or Building A/c.

 Under – Every ledger requires a group to operate in. For example, Furniture A/c and Building A/c will be under Fixed Assets group as they are both Fixed Assets.

You have to select a group that is required as per your ledger.

Inventory values are affected – If you have a ledger which requires inventory or in simple words, stock to be maintained, set this option to Yes.

For example, you are selling sim cards, your ledger will be Sim Cards.

There must be a quantity to sell i.e. stock or inventory and so you must set Yes to Inventory Values are affected.

Mailing Details – You have to fill in the mailing details like Name, Address, Country and Bank Details for the ledger.

It is for the ledgers such as debtors and creditors which require these kind of details.

Ledgers such as Furniture or Building do not require these details because they are not humans and therefore they do not have any mailing details.

Tax Registration Details – Similar to mailing details, these details are also of people and not for ledgers like furniture, building etc.

Tax registration details include PAN which is required on any tax related documents.

Opening Balance – This is the opening balance of the ledger if any.

Any balance of the ledger which is being carried forward from the previous year will have to be entered as the opening balance.

This was the last step which was required to create a ledger under Single Ledger Method.

It will not take more than a minute

In this video you will two main methods of creating ledgers in Tally.

You can simply press ALC consecutively and create a single ledger. That is the shortcut for creating single ledgers in Tally.

If you didn’t knew the shortcut, I have made Unknown Tally Shortcuts book and that too for free.

Multiple Ledger Method

Like single ledger, it is extremely easy to create multiple ledgers in Tally.

The process is almost same as single ledger method. Only one step is different.

Major advantage of this method is that you can create many ledgers in a very short amount of time.

It takes only 10 seconds to create a ledger with the help of Multiple Ledger method in Tally.

Let us look at this method step by step.

From the above method, when you go to Ledgers, you will have the option of Multiple Ledgers.

Under that, you have to select Create.


Now, you will see a Multi Ledger Creation screen like in the image below.


There are not many options as there were in Single Ledger Method.

Let’s look at it one by one.

Under Group – This option is similar to the Under option under Single Ledger Method.

But under this method, it works a bit differently.

If you select the group on the top as shown in the picture above, then you will not have to select the group every time you create a ledger.

This works well if you want to create ledgers under only one group.

Creating Ledgers under only One Group

For example, you want to create ledgers under Fixed Assets such as Furniture and Building it will be as shown in the picture below.


As you can see, I have selected Fixed Assets as the group for the option Under Group.

Therefore when I enter the ledger name Tally will automatically select the group as Fixed Assets  and I only have to enter the amount for opening balance.

If you do not have any opening balance, you can leave it blank.

On the other hand, if you want to create ledgers but they are under different groups, you can do that also.

Creating Ledgers under Different Groups

If you want to create ledgers in Tally but they are under different groups, you can do it easily.

For the option – Under Group, you have to select All Items.


You can see in the picture above that along with the previous two ledgers of Furniture and Building, I have created two more ledgers named Salary and Investments.

Salary is an expense and therefore it is grouped under Direct Expenses.

A particular thing to note here is that there is no opening balance for the ledger of Salary and so I have left it blank.

I have also created another ledger called Investments which is under the group called Investments because it is an investment.

It also has an opening balance.

These were two different ways of creating ledgers under Multiple Ledger Method.

After you are complete with entering all the ledgers in this method, you can just press Enter twice and all your ledgers will be created instantly in Tally.

I use the simple shortcut ALR for creating multiple ledgers in Tally. Or you can also use the following steps:


Again, you can download Tally Shortcut PDF for free.

At the End

It is totally up to you if you want to create single ledgers or multiple ledgers because that totally depends on your requirements.

One important thing I want to highlight here is that you get more details while creating ledgers under Single Ledger Method as compared to Multiple Ledger Method.

You might have noticed that in Multiple Ledger Method, there are no options such as:

  • Inventory values are affected
  • Mailing Details
  • Tax Registration Details

For this you have to edit the ledger individually while passing the accounting entries or you can go to each ledger and edit them.

In short, choose the method wisely to save your time and money.

You can go ahead and watch the video to get the full understanding.

How to create a ledger in Tally

Do you know any other way to create a ledger in Tally? If yes, please share your knowledge in comments below.

If you have any problems in creating ledgers, let me know by simple commenting below. 🙂

107 thoughts on “How to Create a Ledger in Tally – In less than 5 Minutes

    • Rishit Shah says:

      Hi, Batul!
      I checked the video. It is working fine.
      Maybe you should watch videos on a bit high speed internet.

      • gayathri says:

        hi Rishit shah
        how to do car insurance renewal entry (igst 18%) in tally or under which head comes it (direct or indirect expenses)

        • Rishit Shah says:

          Hi, Gayathri!

          It can come under both direct or indirect expenses depending upon the business.

          If car insurance is directly related to sales in your business, it will be direct expenses. For example, in car rental business, it is directly related.

          On the other hand, if it is not directly related to your business, it will be under indirect expenses.

      • Nalugonvu Paskazia says:

        Hi Rishit Shah,
        Please can all your videos be in English because not all of us understand that other language in some videos.
        Although thanks for the good work.

        • Rishit Shah says:

          Hi, Nalugonvu Paskazia!

          That other language is Hindi. I have created many videos in English as well.
          But, still if you don’t understnad Hindi, you can mute the video and understand what I am doing step by step by just seeing the video.

          Also, I have written the articles in English. Videos and articles are the same.

    • Rishit Shah says:

      Hi, Anas!

      What kind of bill are you talking about? Because I have only mentioned ledgers in this video.

      Can you please explain a bit?

  1. SIRAJ ANSARI says:

    hy rishit , im not creating a ledger in ledger a/c, after creating party ledger is not showing the party name in ledger in tally, in having another way to creating party a/c in party ledger.plz

  2. Raviraj b. Tikole says:

    Please tell me the below ledger is in which under like salary is under direct expenses
    1) Fuel
    2) Electricity bill
    3) Telephone charges
    4) Personal expen.
    5) Rent
    6) Maintenance of machinary
    7) Purchase of materials

  3. mohsin khan says:

    i dont understand about stock a/c
    my jurnal entry is
    stock a/c dr. 10000
    to capital a/c 10000
    and stock a/c is goes in stock in hand group
    sir voucher entry kis trah hogi plz help me

  4. Dipak Ghadei says:

    Hello sir, after downloading free tally download my computer show company info but don’t show account info then how can I create a ledger. Please help me.

  5. rahul says:

    hii rahul
    i already created many kind of ledger in the tally but when i tried to make a journal entry then there is no any kinds of ledger can you help me what i do now

  6. manjula km says:

    Hi Rishit i`Manjula km i`m watch and tired u send that videos and thats working and the create shortcut for create single ledger that also work thank u CA Rishit.
    i`m big fan of ca.

  7. waseem says:

    Hi Rishit,
    I am waseem i Don’t about tax invoice plz tell something in detail about tax invoice how can create a tax invoice bill in tally.

  8. Mohan says:

    Hello Rishit
    Iam 63 and run a shop with perishable products I have used the expiry date feature instead of warning of approaching expiry tally removes the stock from the stock register it is one of the poorest designed SW for its price but i would like to correct myself if you can teach me how to use such features also it shows all the products as one tree but when stock is to be entered under a particular category and sub category and sub category kindly also let me know if tally can take care of GST
    good luck with your effort

    • Rishit Shah says:

      Hi, Mohan!

      Currently there is not feature in Tally for warning about the expiry date.
      It removes it from the list, so you do not accidentally sell the goods which are expired.

      You can classify the stocks as per the groups and category in Tally.

      GST is currently not available in Tally, but I have written this post which might help you.

  9. Ramesh says:

    while creating a ledger i cannot the see the coloumn of mailing address and other things on right side .what kind of settings i have to do

    • Rishit Shah says:

      Hi, Ramesh!
      That can be possible if you are creating a ledger for non-personal accounts.

      Such as Indirect Expenses. There is no need for an address in that.
      Otherwise under Sundry Debtors, it will appear.

      And still the problem remains, update the Tally.

    • Rishit Shah says:

      Hi, Vikas!

      Inventory Values are affected is used where there is stocks of anything.
      So if it is a purchase ledger, sales ledger or Share Market, this option is set to Yes.

  10. pragati burade says:

    Hi Ritish sir,
    I am a new learner and i want more example of ledger entries with their heads so where i can find that ? Do you provide such material as well.

    • Rishit Shah says:


      Generally, accounts are prepared for 1 year. After the year is complete, current accounts are closed because they are current like expenses, profits, losses and so on.

      When they are closed, their balance is called closing balance.

      Some accounts are not closed but are carried forward such as buildings, computers and so on which we use for a long time. Those account balances when carried forward to next year are called opening balances.

  11. jabar singh says:

    What is the journal enrty for.
    Brought plant and machineries for for the business for Rs125000 and advance of rupees 10000 in cash is paid to Mr ramjilal.

  12. jayanthi raghavan says:

    very useful. but i dont know to find out gate of tally. can you please help me. since i am using tally for the first time. thanks

  13. Nupur says:

    Very well explained. You have really made it easy to understand. I was thinking of joining classes for learning tally. But after going through all ur videos it wont be required. Thanks a lot.

  14. Preethi says:

    Hai , I have few doubts in which ledger comes under which group?? Can I get a clear view on it ?? Or can u help me where I can get those clarification??

    • Rishit Shah says:

      Hi, Preethi!

      What you are asking is a basic accounting question.
      If you know basic accounting, you will select group under which the ledger will come.

      Sales will come under Sales Accounts, Purchase will be under Purchase Accounts and so on.

      Can you say the name of the ledger for which you are confused and I can solve your doubts.

  15. Rajkumar says:

    Hello Sir,
    I hope you are doing well? I joined your tally course and get regular mails. I am having doubt in Dr/Cr in ledger creation. Please explain it.

    • Rishit Shah says:

      Hi, Rachel!

      For that you have to go to Banking from Gateway of Tally.
      Then, you have to select Bank Reconciliation and you will see the column to enter the Reconciliation Date i.e. Bank Date and another column for books which is called Instrument Date in Tally.

  16. Mandeep says:

    when i am creating multiple ledger of sundry debtors then ap bill wise detail memnu is opened but when i simply try to press enter then its not going next. please help me. now i am unable to create new ledger

    • Rishit Shah says:

      Hi, Mandeep!

      When you are creating ledgers in Tally, by default bill wise details are set to No.
      If you set it Yes, just press Enter and move ahead.
      It will work like that in Tally.

      Please send me a screen shot of where exactly you are facing the problem and I will help you.

  17. Sneha P says:

    When I create single ledger , there is a field appears “Type of Ledger?” after selecting “Inventory values are affected?” showing 2 options – Invoice Rounding & Not applicable. Can you explain elaborately what these options & field mean?

    • Rishit Shah says:

      Hi, Sneha!

      Firstly, good observation for noticing the function in tally.
      Invoice Rounding is used for rounding off the numbers in an invoice. You have to create a specific ledger for that.

      So, for example, if your invoice total is ₹100.25, it will round off to ₹100.
      We select Not Applicable in all the ledgers except when you create a specific ledger for invoice rounding.

  18. Raj Shukla says:

    hi Rishit, congratulations for such initiative for the learners like me.
    suppose i invest 5 lakhs in a company for a plot with an option if i dont take any possession i will be given 8 lakhs after 2 years… after 2 years i get 8 lakhs.
    how will be the entry? i mean what ledger and what group.. please tell.

    • Rishit Shah says:

      Hi, Raj!

      First, you invest in a company. For that the entry will be:

      Investment in plot a/c dr (under investment) ₹5,00,000
      To Bank or Cash a/c ₹5,00,000

      When you get ₹8,00,000 instead of plot, it is your short term capital gain as per the Income Tax Act, 1961.
      Forget about the plot because you did not get it.

      The entry will be:

      Bank or Cash a/c dr ₹8,00,000
      To Investment in a plot a/c ₹5,00,000
      To Short Term Capital Gain a/c (under Direct Incomes) ₹3,00,000

    • Rishit Shah says:

      Hi, Anu!

      You have to pass a journal entry when there is not cash or bank account involved.
      For example, for closing the accounts, for transfering the balance from one account to another and so on.

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