Basically group and ledger are both helpful to make simple category of our assets , liabilities , income and expenditures into current and fixed asset , direct and indirect expenses and loss and income . But there are many difference you can find if you use tally 9 for your practical purpose .
Before we know these difference we should understand its aim first
Aim of Understanding of this question
- After understanding of this question , you will proper classify your all transactions
- After understanding of this question , you will show correct profit or loss in profit and loss account and financial position in balance sheet .
Main Differences between Group and ledger in tally 9
- Tally provides us 23 automatic groups for ledger creation . But tally provides only 2 ledger account in tally software and its names are cash are profit and loss account .
- Group is head category or it is base of ledger creation . We can simply take an example from you day to day field . Suppose you have taken commerce subject and it can also divide into management theory , accounts , business maths and economics . So , Main group is commerce and and all other are called ledger accounts but under this commerce group . Same will apply in accounting in tally , We can create several groups under single ledger .
- We generally neither create extra groups nor change them which is provided by tally software but we must create different ledger according to the need of recording of different vouchers in tally 9
- If we have changed group from one category to another , all ledger will automatically change by this . So be serious for making any change in group .
- Group is most helpful to make final account according the the nature of organisation , but ledger creation is not helpful for any redesigning of final account in tally 9. Let me explain more about it . In the previous article , I need insurance company account not in sundry debtor account but in sundry insurance account so , I made sundry insurance account in group for making redesigning my final account .
"In last I will suggest you that both have their own qualities in tally 9 and you will decide which group or ledger you need or not . Tally provides you alter button for any change . For changing , you should click this and you can made all changes after accept changes . "
- Ledger Creation in Tally 7.2
- Comparison of Tally 9 and Tally 7.2
- Difference among depreciation, fluctuation and obsolescence