Groups in Tally Prime

1. What are Groups in Tally?

In Tally Prime, Groups are used to classify ledgers into different categories so that transactions can be properly recorded and reports (like Balance Sheet, Profit & Loss A/c, Trial Balance) can be automatically prepared.

👉 Think of groups as folders, and ledgers as files inside those folders.
Each ledger must belong to a group.

2. Why are Groups Important?

• They help in systematic classification of accounts.

• They are linked to financial statements (Balance Sheet or Profit & Loss Account).

• They allow Tally to automatically generate reports without extra effort.

3. Types of Groups in Tally

Tally provides 28 predefined groups:

• 15 Primary Groups

• 13 Sub-groups

👉 You can also create custom groups, but generally, students use the standard ones.

4. Broad Classification of Groups

All groups fall under two major categories:

(A) Balance Sheet Groups

1. Assets

   • Fixed Assets

   • Current Assets

   • Investments

   • Loans & Advances (Assets)

   • Cash-in-Hand

   • Bank Accounts

2. Liabilities

   • Capital Account

   • Reserves & Surplus

   • Loans (Liabilities)

   • Sundry Creditors

   • Duties & Taxes

   • Provisions

(B) Profit & Loss Account Groups

1. Direct Incomes (e.g., Sales Account)

2. Direct Expenses (e.g., Purchases, Wages, Freight)

3. Indirect Incomes (e.g., Commission Received, Discount Received)

4. Indirect Expenses (e.g., Rent, Salary, Telephone Expenses)