Groups in TallyPrime

In any business, it is important to categorise similar ledgers based on their nature, type, or usage
under an accounting head. In TallyPrime, such accounting heads are known as Groups. You can
create, alter, and delete Groups in TallyPrime along with copying Groups from one company to
another. Furthermore, in TallyPrime you can view the created Groups with all the transactions in
multiple reports.

In TallyPrime, there are 28 predefined groups, of which 15 are Primary and 13 are Subgroups.
Along with the predefined groups, you can create new Groups to accommodate your business
needs.

Primary Under Subgroups Under

Branch/Divisions Balance Sheet Bank Accounts Current Assets

Capital Account Balance Sheet Bank OD A/c Loans (Liability)

Current Assets Balance Sheet Cash-in-hand Current Assets

Current Liabilities Balance Sheet Deposits (Asset) Current Assets

Direct Expenses Profit & Loss A/c Duties & Taxes Current Liabilities

Direct Incomes Profit & Loss A/c Loans & Advances (Asset) Current Assets

Fixed Assets Balance Sheet Provisions Current Liabilities

Indirect Expenses Profit & Loss A/c Reserves & Surplus Capital Account

Indirect Incomes Profit & Loss A/c Secured Loans Loans (Liability)

Investments Balance Sheet Stock-in-hand Current Assets

Loans (Liability) Balance Sheet Sundry Creditors Current Liabilities

Misc. Expenses (ASSET) Balance Sheet Sundry Debtors Current Assets

Purchase Accounts Profit & Loss A/c Unsecured Loans Loans (Liability)

Sales Accounts Profit & Loss A/c

Suspense A/c Balance Sheet

Capital Account
A Capital Account is a group under which the Owner’s capital, Partner’s capital, and
similar ledger accounts are created to record the amount contributed by the owner or partner
to start the business. In the case of companies, this account is shown as shareholder’s equity.
It also records the retained earnings.

For example Share Capital, Partner's Capital, retained earnings.

Branch/Divisions
This maintains ledger accounts for all your company’s branches, divisions, affiliates,
sister concerns, subsidiaries, and so on.

Current Assets
Current assets are those assets which are to be converted into cash with a period of
one year or during the normal operating cycle of the business

Current Liabilities
Current Liabilities are obligations that must be paid as soon as they become due. The
Current Liabilities are paid by liquidating the Current Assets. Hence, it is important to keep a
check on the liability and ensure that the business has sufficient money to pay the liability as
and when it becomes due. Accounts like Outstanding Liabilities, Statutory Liabilities, and
other minor liabilities can be created directly under this group.

Direct Expenses [Expenses Direct]

These are Manufacturing or direct trading expenses. These accounts determine the
Gross Profit of the company. This is a Group for all direct expenses like Wages, Freight,
Coolie, Import Duty, etc
Direct Income [Income Direct]
In the case of professional or servicing companies, which do not have sales income
but have income and professional fees and services, you can place the ledger accounts under
Direct Income.

Indirect Income [Income Indirect]

Incomes such as Interest received, Discount received, Commission earned shall be
classified under this Group.

Indirect Expenses [Expenses Indirect]

All Office, Administration, Selling Expenses and Financial Expenses should be
classified under this head. In other words, those expenses which are not considered for
computation of Gross Profit should be placed in this group.

Investments
This is a convenient head to view all the company's total investments. Investment
accounts such as Investment is Shares, Bonds, Government Securities, Long-term Bank
deposit accounts, etc., shall be classified under this group

Loans (Liability)
This is a convenient head to view all the bank transaction. Company have the Secured
money transferring method for loans. All long term loans taken by the company will come
under this Group. For example, debentures Loans from financial institution

Suspense Account
This account is opened when trail balance does not match and some discrepancy
Balance Sheet. It is a Balance Sheet item and shown either in asset or balance sheet side
Miscellaneous Expenses (Asset)
The first item under this head is Preliminary Expense which is also known as
formation expenses. Expenses associated with the issue of shares and debentures can also be
classified under this head. The other items that can come under this head are Share and
Debenture Discount, Deferred Revenue Expenses like expenditure on Advertisement,
Research & Development (R&D) etc. These are normally written off against profits over a
period of time. Until it is fully written off, the amount not written off appears under this head.

Fixed Asset
Fixed Assets record the assets that are purchased for the purpose of office or the
Organisation use but not sale.

Purchase Account
You can classify your purchase accounts based on Tax slabs or type of sales.
For example,
 Interstate purchase
 Intrastate purchase
 Credit Invoice purchase
 Cash Invoice purchase

Note: Do not create customer (Creditor) accounts under this group.

Sales Account
You can classify your sales accounts based on Tax slabs or type of sales. For example,
 Interstate Sales
 Intrastate Sales
 Credit Invoice Sales
 Cash Invoice Sales

Note: Do not create customer (Debtor) accounts under this group.

Bank Account
Current account, savings account, short term deposit accounts and so on.

Bank OD Account
Bank OCC is the alias name for Bank OD Accounts. It holds Over Draft Account like,
Bill Discounting Account, etc. of the Bank

Cash-in-Hand
In TallyPrime, Cash A/c is a predefined ledger created under this group. You can
open more than one cash account, if needed.

Deposit Asset
Deposits contain Fixed Deposits, Security Deposits, or any deposit made by the
company (not received by the company, which is a liability) that the company will get back
after its maturity or at the end of the service.

Duties & Taxes

Duties and Taxes contain all tax accounts like CGST, SGST, IGST, TDS, Income
Tax, so on

Loans & Advances

This records all loans given by the company and advances of a non-trading nature
(example: advance against salaries) or even for purchase of Fixed Assets. We do not
recommend you to open Advances to Suppliers’ account under this Group.

Provisions
Accounts like Provision for Taxation, Provision for Depreciation and so on are
recorded under Provisions.
Reserve & Surplus
Reserves are the amount set aside by the owner to use in the future for buying fixed
assets, company expansion, legal requirements, or any investment. The funds are kept aside
so that the cash or bank is not used for any of these expenses. On the other hand, a Surplus is
an excess of income after all expenses are met. This Group contains ledgers like Capital
Reserve, General Reserve, Reserve for Depreciation, and so on.

Secured Loan
Term loans or other long/medium term loans obtained against the security of some
asset do not verify the existence of the security. Typical accounts are Debentures, Term Loans,
and so on

Stock-in-Hand
It includes opening and closing stock the balancing depends upon type of inventory
management

Sundry Creditors
For trade creditors, refer to The party who are supplying goods to us or the party to
whom we owe money.

Sundry Debtors
For customer accounts refer to Party means to whom we are selling.

Unsecured Loans
Loans obtained without any security. Example: Loans from Directors/partners or
outside parties.