Gateway of Tally – Accounts info-ledger-create

Ledger Group
Opening stock Stock in hand
Purchase Purchase account
Purchase return Purchase account
Fright charges Direct expenses
Carriage inwards or Purchases Direct expenses
Cartage and coolie Direct expenses
Octroi Direct expenses
Manufacturing wages Direct expenses
Coal, gas, water Direct expenses
Oil and fuel Direct expenses
Factory rent, insurance, electricity, lighting and heating Direct expenses
Sales Sales account
Salary Indirect expenses
Postage and telegrams Indirect expenses
Telephone charges Indirect expenses
Rent paid Indirect expenses
Rates and taxes Indirect expenses
Insurance Indirect expenses
Audit fees Indirect expenses
Interest on bank loan Indirect expenses
Interest on loans paid Indirect expenses
Bank charges Indirect expenses
Legal charges Indirect expenses
Printing and stationery Indirect expenses
General expenses Indirect expenses
Sundry expenses Indirect expenses
Discount allowed Indirect expenses
Carriage outwards or sales Indirect expenses
Traveling expenses Indirect expenses
Advertisement Indirect expenses
Bad debts Indirect expenses
Repair renewals Indirect expenses
Motor expenses Indirect expenses
Depreciation on assets Indirect expenses
Interest on investment received Indirect income
Interest on deposits received Indirect income
Interest on loans received Indirect income
Commission received Indirect income
Discount received Indirect income
Rent received Indirect income
Dividend received Indirect income
Bad debts recovered Indirect income
Profit by sale of assets Indirect income
Sundry income Indirect income
Loan from others Loan Liabilities
Bank loan Loan Liabilities
Bank overdraft Bank OD
Bills payable Current Liabilities
Sundry creditors Sundry creditors
Mortgage loans Secured loans
Expense outstanding Current Liabilities
Income received in advance Current Liabilities
Other liabilities Current Liabilities
Capital Capital account
Drawings Capital account
Cash in hand Cash in hand
Cash at bank Bank account
Fixed deposit at bank Deposit
Investments Investments
Bills receivable Current asset
Sundry debtors Sundry debtors
Closing stock Stock in hand
Stock of stationery Current asset
Loose tools Fixed asset
Fixtures and fittings Fixed asset
Furniture Fixed asset
Motor vehicles Fixed asset
Plant and machinery Fixed asset
Land and building Fixed asset
Leasehold property Fixed asset
Patents Fixed asset
Goodwill Fixed asset
Prepaid expenses Current asset
Income outstanding Current asset

Trading account: Buying and selling of goods.

Dr. Receiving aspect Giving aspect Cr.
Direct expenses Amount Direct Income Amount
To Opening stock xxx By Sales xxx
To Purchases xxx By (-)Sales return xxx
To (-)purchase return xxx By Closing stock xxx
To Freight charges xxx
To Cartage and coolie xxx
To Lorry hire xxx
To Manufacturing expenses xxx
To Wages xxx
To Factory rent, fuel power xxx
To Gross profit (transfer to profit and loss account) xxx


To Profit and loss account: Actual profit and loss of the business
Indirect expenses or payments Amount Indirect income or receipts Amount
To Salary xxx By Gross profit xxx
To Postage and Telegram xxx By Interest on investment received xxx
To Telephone charges xxx By Interest on deposits received xxx
To Rent paid xxx By Interest on loans received xxx
To Rate and taxes xxx By Discount received xxx
To Insurance paid xxx By Discount received xxx
To Interest on bank loan xxx By Rent received xxx
To Bank charges xxx By Bad debts received xxx
To Printing and stationery xxx By Net loss xxx
To Discount allowed xxx
To Advertisement
To Carriage outward (sales)
To Depreciation on assets
To General expenses
To Traveling
To Bad debts
To Net profit


Balance sheet: Actual financial position
Liabilities Amount Assets Amount
Bank loan xxx Cash in hand xxx
Bank overdraft xxx Cash at bank xxx
Bills payable xxx Fixed deposit at bank xxx
Sundry creditors xxx Investments xxx
Expenses outstanding xxx Bills receivable xxx
Capital xxx Sundry debtors xxx
(-)drawings xxx Closing stock xxx
Net profit xxx Stock of stationery xxx
Furniture xxx
Plant machinery xxx
Land and building xxx
Motor vehicles xxx
Prepaid expenses xxx
Income outstanding xxx


Journalize the following Transactions using the debit and credit given by the American accounts

  • Question 1
1. Commenced business with cash 10,000
2. Deposited into bank 5,000
3. Purchased goods for cash 3,000
4. Sold goods for cash 2,500
5. Purchased goods from A on credit 4,000
6. Sold goods to B on credit 4,500
7. Withdraw from bank 3,000
8. Paid A on account 2,000
9. Received from B on account 2,500
10. Took loan from C 5,000
11. Gave loan to D 4,000
12. Paid salary 1,000
13. Cash withdraw from the business for personal use 200
14. Rent paid to E 1,000


Ledger Group
Capital Capital Account
Cash Cash in hand
Bank Bank account
Purchase Purchase account
Sales Sales account
A Sundry creditor
B Sundry debtor
C Sundry creditor
D Sundry debtor
Salary Indirect expenses
Drawings Capital account
Rent Indirect expenses
  • Question 2 (Rakesh  and company)
  1. Started business with cash Rs. 2,000, Bank Rs. 20,000.
  2. Issued cheque for goods purchased Rs. 1,000.
  3. Bought goods for cash  Rs.8,000.
  4. Bought furniture from Anil for cash Rs.100.
  5.  Bought goods from harish Rs. 1,500.
  6. Bought goods from chandan on credit Rs. 5,800.
  7. Returned damaged goods to Chandan Rs.800.
  8. Bought goods from Naveen and paid by cheque immediately Rs.400.
  9. Sold goods to Gupta Rs. 1,000.
  10. Received a cheque from Guptha Rs.1,000 for goods sold.
  11.  Paid commission Rs.2,000.
  12. Paid wages by cheque Rs.4,000.
  13. Draw cheque for personal use Rs.4,000.
  14. Draw cash for personal use from bank Rs.3,000.
  15. Receive a cheque from Manju Rs.2,800.
  16. Borrow loan from Anand’s Rs.1,000.
  17. Paid Anand’s Loan with interest Rs.1,000.
Ledger Group
Capital Capital account
Bank Bank account
Purchase Purchase account
Anil Sundry Creditor
Chandan Sundry Creditor
Harish Sundry Creditor
Purchase return Purchase account
Naveen Sundry Creditor
Sales Sales account
Guptha Sundry debtor
Commission Indirect expenses
Wages Direct expenses
Drawings Capital account
Manju Sundry Creditor
Anand Sundry Creditor
  • Question 3 (Haridas and company)

1. Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000.

2. Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000.

3. Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000.

4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000.

5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000.

6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100.

7. Received rent Rs.500, commission Rs.400.

8. Received a cheque from Ganesh Rs.1,000.

Ledger Group
Capital Capital account
Furniture Fixed asset
Machinery Fixed asset
Purchase Purchase account
Anil Sundry Creditor
Sales Sales account
Rajesh Sundry debtor
Arun Sundry creditor
Ramesh Sundry debtor
Salary Indirect expenses
Printing Indirect expenses
Wages Direct expenses
Rent Indirect expenses
Commission Indirect expenses
Ganesh Sundry creditor
Trade discount Indirect expenses
  • Question 4 (Memorandum book)


  1. Commenced business with cash Rs. 10,000.
  2. Purchased goods for cash Rs.3,000.
  3. Opened a bank  account with Rs.2,000.
  4. Purchased stationery Rs.1,00.
  5. Purchased furniture Rs.1,000.
  6. Sold goods to A Rs.2,000.
  7. Purchased goods from B Rs.2,000.
  8. Sold goods for cash Rs.1,000.
  9. Paid for postage Rs.20.
  10. Took loan from C Rs.1,500.
  11. Paid rent Rs.300.
  12. Withdraw from bank Rs.800.
  13.  Received from A on account Rs.500.
  14. Paid commission by cheque Rs.200.
Ledger Group
Capital Capital account
Purchase Purchase account
Bank Bank account
Purchase Purchase account
Stationary Indirect expenses
Furniture Fixed asset
Sales Sales account
A Sundry debtor
B Sundry Creditor
Potage Indirect expenses
C Sundry Creditor
Rent Indirect expenses
Commission Indirect expenses



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