How to Create Multiple Ledgers in Tally Prime (With Examples)

Tally Prime is one of the most widely used accounting software applications in India and around the world. It simplifies financial tasks like accounting, inventory management, payroll, and taxation. One of the foundational aspects of accounting in Tally is the creation and management of ledgers. Ledgers are individual accounts that record transactions related to a specific item such as Cash, Sales, Purchases, Rent, or Capital.

This article will walk you through the process of creating multiple ledgers in Tally Prime in a detailed and structured way, covering all key points, steps, tips, and examples to help you master the concept.

Introduction to Ledgers in Tally Prime

In Tally Prime, a ledger is an account head used to identify and record financial transactions. Every financial entry is posted under appropriate ledger accounts. Without ledgers, you cannot pass a voucher entry.

For example:

If you're recording a sale, it will require ledgers like Sales, Customer, and GST.

For payment, ledgers like Cash, Bank, or Expense ledgers are used.

Importance of Creating Multiple Ledgers

Creating multiple ledgers in Tally Prime offers several benefits:

Saves time when setting up your accounts

Ensures better classification and grouping

Helps in maintaining clean and accurate records

Reduces the chances of manual errors

Simplifies voucher entry and reporting

Types of Ledgers

Here are the common types of ledgers used in Tally:

Type	Examples
Asset Ledgers	Cash, Bank, Furniture, Debtors
Liability Ledgers	Creditors, Loans, Outstanding
Income Ledgers	Sales, Commission Received
Expense Ledgers	Rent, Salaries, Electricity
Capital Ledgers	Capital Account, Drawings
Purchase/Sales Ledgers	Purchase GST, Sales IGST
Tax Ledgers	CGST, SGST, IGST

Methods of Ledger Creation in Tally Prime

Tally Prime offers three ways to create ledgers:

Single Ledger Creation – For individual ledger creation.

Multiple Ledger Creation – For creating many ledgers at once.

Automatic Ledger Creation – Some ledgers are created automatically during voucher entry.

This article focuses primarily on Multiple Ledger Creation.

Pre-requisites to Creating Multiple Ledgers

Before creating multiple ledgers:

You must have a company created and opened in Tally Prime.

Relevant groups should be understood. Every ledger must be assigned to a group.

Know the ledger name, group, opening balance (if any).

Step-by-Step Guide: Creating Ledgers One by One

Let’s briefly look at how to create a single ledger:

Step 1: Gateway of Tally > Create > Ledger

Step 2: Enter Ledger Name, Group, Opening Balance

Step 3: Accept the screen (Press Ctrl + A)

Step-by-Step Guide: Creating Multiple Ledgers at Once

Here is the full process for creating multiple ledgers:

Step 1: Go to Gateway of Tally

From the main screen of Tally Prime, select:

Gateway of Tally > Create > Multi Masters > Ledger > Multiple Ledgers

Step 2: Choose “Under Group” or “All Items”

Tally asks:

Under Group: Select if all ledgers belong to one group (e.g., all in “Sundry Debtors”)

All Items: Select if ledgers belong to different groups (e.g., Debtors, Expenses, Assets)

For example, select All Items if you're creating:

Ram Traders – under Sundry Debtors

Rent Paid – under Indirect Expenses

Axis Bank – under Bank Accounts

Step 3: Enter Ledger Details

Now enter the following details for each ledger:

Name of Ledger

Group

Opening Balance (optional)

Tally shows a spreadsheet-like interface. Fill the table row by row.

Example:

Name	Under Group	Opening Balance
Ram Traders	Sundry Debtors	10,000 Dr
Rent Paid	Indirect Expenses	0
Axis Bank	Bank Accounts	50,000 Dr
Electricity	Indirect Expenses	0
Ganesh Suppliers	Sundry Creditors	15,000 Cr

Step 4: Accept the Screen

Once all entries are made, press Ctrl + A to save.

Examples of Multiple Ledgers

Here are a few sets of ledgers often created in bulk.

Example 1: Debtors and Creditors

Ledger Name	Group	Opening Balance
Ram Agencies	Sundry Debtors	25,000 Dr
Sunil Traders	Sundry Debtors	15,000 Dr
XYZ Suppliers	Sundry Creditors	20,000 Cr
ABC Traders	Sundry Creditors	30,000 Cr

Example 2: Expense Ledgers

Ledger Name	Group	Opening Balance
Rent	Indirect Expenses	0
Electricity Bill	Indirect Expenses	0
Stationery	Indirect Expenses	0
Fuel Charges	Indirect Expenses	0

Example 3: Bank and Cash

Ledger Name	Group	Opening Balance
Axis Bank	Bank Accounts	50,000 Dr
ICICI Bank	Bank Accounts	20,000 Dr
Cash	Cash-in-Hand	10,000 Dr

Read: How to do Ledger Posting in Tally Prime?

Altering and Deleting Ledgers

To alter a ledger:

Gateway of Tally > Alter > Ledger > Select Ledger > Modify > Save

To delete a ledger:

Open the ledger using Alter

Press Alt + D

Confirm deletion

Note: A ledger cannot be deleted if it has voucher entries.

Tips and Best Practices

Always assign correct groups – Misgrouped ledgers cause incorrect reporting.

Use meaningful names – E.g., "Office Rent" is better than just "Rent".

Maintain opening balances for Bank, Debtors, and Creditors.

Double-check the Cr/Dr side while entering balances.

Use "All Items" when ledgers belong to different groups.

Regularly review ledgers through Display > List of Accounts.

Common Errors and Troubleshooting

Problem	Solution
Ledger not appearing in voucher entry	Check if it's created under correct group
Can't delete a ledger	Remove or reverse its voucher entries first
Dr/Cr confusion in balance	Assets/Debtors are Dr, Liabilities are Cr
Wrong ledger group	Alter and correct group under Alter > Ledger

FAQ

Q1. Can I import multiple ledgers from Excel into Tally?

Yes, using Tally’s XML format or with the help of third-party TDLs or Tally connectors, you can import ledgers from Excel.

Q2. Can I create GST ledgers in bulk?

Yes, you can create ledgers like CGST, SGST, IGST under Duties & Taxes group while using the multiple ledger creation feature.

Q3. Can I create ledgers for inventory items?

Inventory items need Stock Item creation, not ledgers. However, sales/purchase ledgers related to those items can be created here.

Conclusion

Creating multiple ledgers in Tally Prime is a powerful feature that boosts productivity and helps you quickly set up your accounting structure. Whether you’re managing a small business or a large enterprise, understanding how to properly create, manage, and review ledgers is critical for accurate financial reporting.

In this guide, we covered: