How to do Ledger Posting in Tally Prime: Explained with examples

Introduction

Ledger posting is a critical accounting process in Tally Prime that helps record all business transactions under appropriate account heads. Whether it's a cash sale, a credit purchase, a bank transaction, or a salary payment—everything is routed through ledgers. Tally Prime simplifies ledger posting with automation and an intuitive interface, making accounting both efficient and accurate.

This guide will walk you through every aspect of ledger posting in Tally Prime, supported by real-life examples, step-by-step procedures, and tips to avoid common mistakes.

What is Ledger Posting?

Ledger posting is the process of transferring business transaction details from source documents or vouchers into specific ledger accounts. In accounting, ledgers serve as the backbone of financial recording.

Example:

If you pay ₹10,000 for rent, you post this under the Rent A/c (debit) and Cash/Bank A/c (credit).

Importance of Ledger Posting in Accounting

Maintains Financial Records: Accurately reflects each transaction.
Supports Financial Reporting: Used to generate trial balance, P&L, and balance sheet.
Ensures Legal Compliance: Mandatory for tax and audit purposes.
Enables Decision Making: Management uses ledger data for budgeting and planning.

Features of Ledger Posting in Tally Prime

Automatic debit/credit posting via vouchers.
User-defined ledger groups.
GST-ready ledger management.
Easy tracking and drill-down.
Supports cost centers and budgets.

Pre-requisites for Ledger Posting

Before posting ledger entries in Tally Prime, ensure:
Company is created.
Chart of accounts (groups/ledgers) is set up.
GST/Bank details (if applicable) are configured.
Inventory and payroll (if needed) are activated.

How to Create a Ledger in Tally Prime

Steps:

Go to Gateway of Tally > Create > Ledger.

Enter the name (e.g., Rent A/c).

Select appropriate group (e.g., Indirect Expenses).

Provide details (GST, Bank info, etc.).

Press Ctrl + A to save.

Types of Ledgers in Tally Prime

Revenue Accounts

Sales
Purchases
Income
Expenses

Asset Accounts

Bank
Cash
Debtors
Fixed Assets
Liability Accounts
Creditors
Loans

Outstanding Liabilities

Capital Accounts
Partners' Capital
Reserves
Statutory Accounts
GST Payable
TDS Payable

Steps to Post Entries to Ledgers

Ledger posting happens when a voucher entry is recorded.

Example: Cash Purchase

Debit: Purchase A/c

Credit: Cash A/c

Ledger Posting through Voucher Entry

Common Voucher Types:
Payment Voucher – for payments
Receipt Voucher – for receiving money
Journal Voucher – for adjustments
Sales Voucher – for sales entries
Purchase Voucher – for purchase entries

Step-by-Step for Payment Voucher:

Gateway of Tally > Accounting Vouchers > F5 (Payment)

Debit: Rent A/c ₹10,000

Credit: Bank A/c

Save with Ctrl + A

Tally automatically posts the transaction to both ledgers

Read: What are the Voucher Types in Tally Prime?

Examples of Ledger Posting

Example 1: Salary Paid by Bank

Debit: Salary A/c ₹25,000

Credit: Bank A/c ₹25,000

Example 2: Goods Sold on Credit

Debit: ABC Traders A/c ₹50,000

Credit: Sales A/c ₹50,000

Example 3: Rent Received in Cash

Debit: Cash A/c ₹8,000

Credit: Rent Income A/c ₹8,000

Viewing and Verifying Ledger Entries

Steps:

Go to Gateway of Tally > Display > Account Books > Ledger.

Select ledger (e.g., Rent A/c).

View transactions by date.

Use Alt + F1 for detailed view.

Ledger Reports and Analysis

Tally Prime allows you to generate:
Ledger-wise summary
Outstanding reports
Ledger vouchers report
GST reconciliation reports
Monthly or yearly analysis
Use Alt + F5 to toggle between monthly and yearly view.

Editing and Deleting Ledger Entries

To Edit:

Go to Display > Daybook

Select entry > Press Enter

Modify > Save

To Delete:

Open voucher > Press Alt + D

Common Errors and How to Fix Them

Error	Solution
Ledger Not Found	Create the missing ledger
Wrong Group	Alter ledger and change group
GST Mismatch	Check ledger configuration
Unbalanced Entries	Ensure Dr = Cr

Using Ledger Groups Effectively

Ledger groups help in organizing accounts. Tally provides default groups, but you can create custom ones too.

Examples:

Create “Office Expenses” group under Indirect Expenses.

Move Travel, Internet, Rent into this group.

This helps in segmented financial reports.

Ledger Posting in GST Transactions

When GST is enabled:
Sales/Purchase ledgers must have GST configuration.
Taxes like CGST, SGST, IGST are posted to respective ledgers.

Example:

Sale of ₹10,000 with 18% GST:

Debit: ABC Customer A/c ₹11,800

Credit: Sales A/c ₹10,000

Credit: CGST A/c ₹900

Credit: SGST A/c ₹900

Read: Price Level and Price List in Tally Prime

Ledger Posting in Bank Reconciliation

Use the Bank Reconciliation Tool to match ledger entries with bank statements.

Steps:

Gateway of Tally > Banking > Bank Reconciliation

Select bank ledger

Match transaction dates with bank statement

Multi-Currency Ledger Posting

Tally Prime supports multi-currency accounts.

Steps:

Enable multi-currency in features.
Assign foreign currency to ledger.
Enter exchange rate while posting.

Example: Receipt of $1,000 at ₹75 = ₹75,000 in ledger.

Ledger Posting in Payroll Accounting

Activate payroll and create salary ledgers:
Basic Salary
HRA
PF Payable
Post entries during salary payments:

Debit: Salary A/c

Credit: Bank A/c

Credit: PF Payable A/c

Security and User Rights in Ledger Posting

Restrict ledger access via Tally User Roles.

Steps:

Gateway > Alt + F3 > Security Control

Define roles (e.g., Junior Accountant)

Limit voucher types or ledgers editable

Importing and Exporting Ledger Data

Use Import/Export option to move data across companies or versions.
Export from one company (in XML)

Integration with Other Modules

Ledger data integrates with:
Inventory for COGS tracking
Payroll for salary expenses
Banking for auto-reconciliation
GST module for returns

Automation and Recurring Entries

Set up memorandums or Recurring Vouchers for fixed expenses.

Example: Monthly Rent

Create a voucher template.

Tally prompts each month for posting.

Ledger Posting in Multi-Company Mode

Tally allows switching companies without restarting.
Post ledgers in each company individually.
Avoid confusion by naming companies distinctly.

Tips for Efficient Ledger Management

Use meaningful ledger names.
Avoid duplicating ledger heads.
Group ledgers logically.
Review ledger reports monthly.
Back up data regularly.

Final Words and Best Practices

Ledger posting is the heart of financial accounting in Tally Prime. Done right, it ensures financial transparency, compliance, and insightful reporting. Always review entries, maintain clarity in ledger grouping, and train your staff to follow consistent practices.

With practice and attention to detail, mastering ledger posting in Tally Prime becomes second nature, enabling accurate records and smooth audits.

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