Go to Gateway of Tally > Accounts Info. > Ledgers
You can create either Single or Multiple Ledgers.
Importance of Grouping and Accounting Classifications
1. Placing individual party accounts under Sales or Purchase Accounts groups:
Accounts of parties with whom your company has trade relationship must be opened under one of the following groups (or sub-groups under them) only:
Sales and Purchase account groups are meant for revenue accounts and would be reflected in the Profit & Loss Account. If you open party accounts under these groups, you will find it difficult to pass sales or purchase voucher transactions. For example, in a sales voucher transaction entry, you must debit an account which is a sundry debtor, branch/division or even a sundry creditor (why a creditor? - it will be explained soon). Moreover, other facilities like bill-wise allocation and tracking will not be available unless the accounts belong to one of these groups.
2. Opening two accounts of the same party
For convenience Tally.ERP 9 has separately classified debtors, creditors and branch/divisions. There is no operational distinction except for the purpose of keeping the accounts of a particular group together during displays and analysis. You can pass both sales and purchase entries for a party account placed under Sundry Debtors.
We recommend that you use the classification depending on the most natural group for the party. For example, parties from whom you buy more frequently then you sell to can be placed under Sundry Creditors, as that would be the natural place for you to look for his account.
Tally.ERP 9 does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account.
Note: You need not open two accounts of the same party - one under Sundry Debtors and another under Sundry Creditors.
Remember, Tally.ERP 9 restricts you from opening two identical ledger accounts. Of course, you may decide to circumvent by marking one account as A & Co - S/Dr and another A & Co - S/Cr. Doing this would allow you to have two accounts of the same party under two groups, but you would lose the advantage of analyzing his net position at one instance. We recommend that you maintain a single account to obtain best results.
3. Placing expenditure items under a Liabilities group, e.g., the expenditure item 'Rates & Taxes' under the group 'Duties and Taxes'.
The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other statutory expenses should be placed under Indirect Expenses.