Groups in Tally Prime

What is Groups in Tally?

Group is the collection of ledgers into different categories based on their nature or function. The grouping of ledgers makes it easier to organize and analyze financial data. In Tally, there are primarily two types of groups:

  • Primary Groups: These are the main classification groups, such as Assets, Liabilities, Income, and Expenses. Primary groups cannot be further subdivided.
  • Secondary Groups: hese are the sub-classifications within the primary groups. Secondary groups are used to provide more detailed categorization of ledgers.

List of Primary Groups

  1. Capital : Represents owner's equity or investment in the business. It includes the initial capital invested by the owner and any additional investments made.
  2. Fixed Assets : Represents long-term assets that are not intended for resale and are used in the regular operations of the business. These assets are expected to be utilized over an extended period, typically more than one accounting period. (eg: buildings, machinery, and vehicles)
  3. Current Assets : Includes short-term assets that are expected to be converted into cash or used up within one operating cycle, typically one year. (eg: cash, accounts receivable, and inventory)
  4. Current Liabilities : Encompasses short-term obligations or debts that the business is expected to settle within one year. It includes accounts payable, short-term loans, and other current liabilities.
  5. Loans (Liabilities) : Encompasses long-term loans and borrowings that the business is obligated to repay over an extended period.
  6. Investments : Represents long-term investments made by the business, such as shares, bonds, or other securities held for strategic or financial purposes.
  7. Direct Expenses : Represents expenses directly associated with the production of goods or services. It includes items like direct labor and direct materials.
  8. Indirect Expenses : Represents expenses not directly tied to the production of goods or services. (eg: include rent, utilities, and administrative expenses)
  9. Direct Income : Direct income refers to revenue that is directly earned from the core business activities or operations of a company. Direct income is associated with the main revenue-generating activities of the business. (eg: For a manufacturing company, the sales of manufactured goods would be considered direct income).
  10. Indirect Income : Indirect income, on the other hand, refers to revenue that is not directly related to the primary business activities but is still earned by the company. It is income that arises from sources other than the main operations of the business. (eg: Interest earned on investments, rent received from subletting a property, or gains from the sale of non-core assets could be considered indirect income).
  11. Purchase Accounts : Records the cost of goods purchased for resale. It includes accounts for the purchase of raw materials and finished goods.
  12. Sales Accounts : Records the revenue generated from the sale of goods or services.
  13. Suspense Accounts : Records the revenue generated from the sale of goods or services.
  14. Misc. Expenses : Miscellaneous Expenses refer to small or irregular expenses that do not belong to a specific category or group. (eg : Petty cash expenses, Small office supplies etc.)
  15. Branch/Divisions : This group is provided to keep the ledger accounts of all companies that are our company's branches, divisions, affiliates, subsidiaries, etc.

List of Secondary Groups

  1. Sundry Creditors : Represents amounts owed to suppliers or vendors for goods or services purchased on credit.
  2. Sundry Debtors : Represents amounts receivable from customers for goods or services sold on credit.
  3. Deposits : Deposit group is a category used to classify different types of deposits made or received by a business. Deposits can include various financial transactions, and having a specific group for deposits helps in organizing and tracking these transactions in the chart of accounts.
  4. Bank Accounts : Includes all bank accounts held by the business, such as savings accounts, current accounts and fixed deposit accounts.
  5. Banks OD Accounts : Bank Overdraft is a financial arrangement where a bank allows an account holder to withdraw more money than is currently available in their account, up to a specified limit. It is a form of short-term borrowing.
  6. Secured Loans : Secured Loans represent long-term liabilities that are backed by collateral or specific assets provided by the borrower. (eg: Mortgages, loans secured by inventory, loans secured by property or equipment)
  7. Unsecured Loans : Unsecured loans are financial obligations that a business has taken on without pledging specific assets as collateral. These loans are typically based on the borrower's creditworthiness and overall financial health.
  8. Stock in Hand : It is not a predefined group. Instead, stock in hand is typically represented as a ledger account under the current assets group or a similar group in the chart of accounts. The stock in hand ledger account is used to track the quantity and value of the inventory or stock that a business currently holds.
  9. Duties & Taxes : It helps in organizing and tracking different types of duties and taxes that a business may be liable to pay or collect.
  10. Reserves & Surplus : This group falls under the broader classification of owner's equity or shareholders equity in the chart of accounts. It represents the accumulated profits and other reserves that are not distributed as dividends.
  11. Provisions : Provisions are created to account for future expenses or losses that are likely to occur, but the exact timing or amount is not known with certainty.
  12. Loan & Advances (Assets) : It is used to classify and track loans and advances given to others by a business.
  13. "Cash in Hand : This group is used to classify ledger accounts related to the physical currency and coins that a business holds. It represents the amount of cash available on the premises, such as in a cash register or a petty cash box.