Groups In Tally Prime – A Detailed Guide for Students

Groups in Tally Prime are there in such a way that it can organize and classify the accounts in such a way that reporting and analysis become easier. Groups are the collection of various ledgers of the same nature.

One of the best things about Tally Prime is that you can create, alter, or change the group. Any groups created under the purview of the assets and liabilities form a part of the balance sheet. Now, if you know the groups in detail then you must read this complete article.

Groups help you to organize all the ledger accounts to view all the financial statements in proper order. Any groups that are created under the assets, as well as liabilities, form part of the balance sheet.

What Are The Groups In Tally Prime?

In Tally, Prime groups are some of the prime categories that are used to classify the ledger accounts. This helps to organize all the financial data systematically. It can help you to create a properly structured chart of accounts. Additionally, it is essential for analysis, reporting, and decision-making. Tally offers 28 predefined groups out of which 15 primary groups and 13 subgroups.

What Are The Pre-defined Groups In Tally Prime?

Tally Prime comes with 28 predefined groups to make the process of data entry smooth and accurate. It is important to classify and organize the accounts effectively. These groups are broadly defined into 13 subgroups and 15 primary groups.

1. Capital Account
2. Loans ( Liabilities)
3. Current Liabilities
4. Fixed Assets.
5. Investments
6. Current Assets.
7. Miscellaneous Expenses
8. Sales Accounts.
9. Purchase Accounts.
10. Direct Incomes.
11. Indirect Incomes.
12. Direct Expenses
13. Indirect Expenses
14. Provisions
15. Suspense Accounts.
16. Sundry Debtors
17. Sundry Creditors.
18. Bank Accounts.
19. Cash in hand.
20. Stock In Hand.
21.  21  Duties & Taxes.

22. Secured Loans.
23. Unsecured Loans.
24.  Reserve and Surplus.
25. Deposits.
26. Provisions
27. Retained Earnings.
28. Branch Division

What Are The Primary Groups In Tally Prime?

There are 15 Primary groups in Tally Prime. If you want to know more about it then you must read the complete article.

1. Capital Account

The capital account group in Tally Prime is one of the predefined primary groups that is there to manage and track all the accounts. These are related to owners’ equity and funds invested in the business. All these groups typically include all the items that reflect the stake in ownership surplus funds and reserves of the organization. Groups in Tally Prime form an essential part of accounting.

Items That Are Included In Capital Account:- 

• Capital funds.
• Reserves and Surplus.

Examples Of  Capital Account In Tally Prime 

• Shareholders equity
• Retained Earnings.
• Share capital.
• Partners Capital Account.
• Properties Capital account.

2. Loans

The loans and liabilities group in Tally Prime is one of the primary groups that is used to record and manage all the accounts.  They are related to loans taken by the business. All these groups are classified under the liability column in the balance sheet. This is essential for tracking and repayment and outstanding balances that are present in borrowed funds.

Items Included In Loan Account 

• Secured loans.
• Unsecured Loans.

Examples of Loan Account 

• Car loan.
• Student loan.
• Home Loan.
• Mortgage Loan.

3. Current Liabilities

Current liability is another predefined group in Tally Prime that you must know before handling this software. It is one of the primary groups that helps businesses identify their short-term liabilities or obligations that they need to settle. Certain items are included in the current liability section.

Items included in current liability Account 

• Sundry creditors.
• Short-term liabilities.
• Outstanding expenses.

Examples of Current Liability

• Accounts payable.
• Payroll taxes.
• Payroll.
• Short-term notes payable.
• Accrued expenses.
• Interest payable.
• Income taxes.
• Rental fees.
• Utilities.
• Dividends payable.
• Unearned revenue.

4. Fixed Assets

Fixed asset groups in Tally Prime are one of the primary groups in Tally Prime. Here accounts are related to long-term, tangible, and intangible assets. These are categorized assets that are purchased for long-term investments in the business. In most cases, they are meant for something other than resale.

Items included in Fixed Assets 

• Building.
• Machinery.
• Vehicles.

Examples of Fixed Assets 

• Land and building.
• Furniture & Fixture.
• Plant and machinery.
• Vehicles.
• Computers and Equipment.

5. Investments

The investment category is used to manage the financial investment made by the business. It helps to record all the primary groups. It includes making investments in mutual funds, bonds, shares, fixed deposits, and other types of financial instruments.

Items included in Investments  

• Shares.
• Bonds.
• Mutual funds.

Examples of Investments 

• Shares.
• Bonds.
• Fixed Deposits.
• Mutual Funds.
• Other Investments.

6. Current Assets  

The current assets group in Tally Prime is one of the primary groups that are used to classify all the short-term assets. Most of the time, it is expected to be converted into cash. It can be utilized for maintaining the business operating cycle. These assets are crucial for maintaining day to day operation of the business.

Items Included In Current Assets Group   

• Cash and cash equivalents.
• Accounts receivable.
• Inventories.
• Prepaid expenses.

Examples Of Current Assets Group 

• Cash and bank balance.
• Sundry debtors.
• Short-term investments.
• Prepaid expenses.
• Loans and advances.
• Accrued income.
• Other current assets.

7. Miscellaneous Expenses

Miscellaneous expenses in Tally Prime refer to those expenses that are minor and these are not attributable to any specific activities. These are referred to as deferred revenue expenditures. All these expenses are recorded under the group miscellaneous expenses. This helps to maintain the regular operational cost to a greater extent.

Items Included In Miscellaneous Expenses 

• It refers to deferred revenue expenditures.

Examples Of Miscellaneous Expenses 

• Duties and taxes.
• Provisions.
• Miscellaneous Expenses.

8. Sales Accounts

The sales account group comprises all primary groups that are used to record or manage all the incomes generated from sales of goods and services. It forms an integral part of the entire profit and loss account. This helps in categorizing all the revenue from sales and reporting analysis.

Items Included In Sales Accounts 

• Helps to record the income and sales of goods.

Examples of Sales Accounts  

• Local sales.
• Interstate sales.
• Taxable & Non Taxable sales.
• Export Sales.
• Wholesale and retail sales.

9. Purchase Accounts

The purchase account group in the Tally prime forms the primary group that is used to record as well as manage all the expenditures that are incurred for purchasing goods and services. This group forms part of the profit and loss account. The expense section forms direct costs that are associated with procurement.

Items Included In Purchase Account 

• It records the purchase of goods and services.

Examples Of Purchase Account 

• Local purchase.
• Interstate purchase.
• Import Purchase.
• Exempt Purchase.
• Raw Material Purchase.

10. Direct Incomes

Direct expenses are attributable to all the manufacturing or production. It can include all the raw materials and wages. All these expenses are directly attributable to the manufacturing process where the procurement of goods are essential. This will help you to bring the goods at a saleable or finished rate.

Items Included In Direct Income 

• Rent received.
• Commission.
• Interest Income.

Examples Of Direct Income 

• Profit & Loss Account.
• Sales Register
• GST Reports

11. Indirect Incomes

Indirect incomes are those types of income that are not directly related to your business but can help your business grow. These form the secondary sources of income but still, it contributes to overall earnings.

Items included in Indirect Income 

• Interest income.
• Commission.

Examples Of Indirect Income 

• Profit and loss account.
• GST Report.
• Sales register.

12. Indirect Expenses

Indirect expenses are those expenses that are not directly related to the production of any goods and services. It is necessary for the overall support and functioning of the business. All these expenses are essential for running a business. These are not directly tied to manufacturing or any procurement process.

Items Included In Indirect Expenses 

• Rent.
• Salaries.
• Advertisements.

Examples of Indirect expenses 

• Administrative Expenses.
• Selling and distribution expenses.
• Financial expenses.
• Depreciation.
• Rent and rates

13. Direct Expenses

Direct expenses are those expenses that are directly related to the production of goods and services that are related and relatable to the saleable state. All these expenses are directly attributable to manufacturing and procurement of goods.

Items included in Direct expenses include the following:- 

• Raw materials.
• Wages.

Examples Of Direct Expenses 

• Raw material cost.
• Wages.
• Factory Overhead.
• Freight Inward.
• Custom Duties.
• Packing Expenses.
• Power and fuel.
• Royalty and production.

14. Provisions

Tally Prime Provisions are used to record all the expenses and liabilities that are incurred but not yet invoiced. In most of the cases, provisions are created for future reference. Anticipated such as taxes, salaries, and utilities. Expenses need to be accounted for in it as well.

Items Included in Provisions    

• Provisions for depreciation.
• Liabilities for losses.

Examples Of Provisions 

• Provision for income tax.
• Another example is the provision for bad debt.
• Provision for expenses.
• Another example is the provision for depreciation.

15. Suspense Accounts

The suspense account group in Tally Prime is significant for temporarily recording all the transactions where the correct ledger account is uncertain. You need to determine things as it serves as a placeholder for an unclear and unidentified transaction. Thus you need clarification and reconciliation.

Items included In Suspense Accounts 

• Unidentified receipts.
• Unclassified Payments.
• Unreconciled bank entries.
• Accounting errors.
• Pending clarifications

Examples of Suspense account 

• Unidentified bank transactions.
• Unmatched payments and receipts.
• Opening Balances.
• Error rectification.

What Are The Sub Groups In Tally Prime?

There are in total 13 sub-groups of Tally Prime that you must be well aware of. Additionally, you cannot make your selection and choices on the incorrect end. Without proper effective placements of the sub-groups, you cannot segregate the accounts.

1. Bank Accounts

This group in Tally Prime is used to maintain the accounts that you need to maintain with the bank like savings account, current account, and overdraft account. It is one of the most essential Tally prime groups that you must know from your end. It is one of the essential groups in Tally Prime.

Example:- SBI current account, HDFC Bank.

2. Cash In Hand

It is used to classify all cash-related which includes petty cash or main cash. This is one of the main groups in Tally Prime that you must be well aware of. Additionally, this can make your recording of the cash transactions easier for you.

Example:- Petty Cash, and Cash account.

3. Deposits

It is used to classify the deposits made by any business such as the fixed deposits and security deposits. This is one of the crucial groups in the balance sheet that you must be well aware off. Some of the crucial facts that you must be mindful of are mentioned here.

Example;- Fixed Deposit, and rent deposit.

4. Loans & Advances

It is used to classify all the loans and advances given to customers, entities, and other employees. However, you need to get through the details of the loans and advances to make things work perfectly well in your favor.

Example:- Advance to Vendor, Employee loan

5. Stock In Hand

These groups in Tally Prime will help you to classify the value of inventory and stock in business. Additionally, you must know the category of this reserve and maintenance to meet your requirements with ease.

Example:- Finished goods, and raw materials.

6. Duties And Taxes

Duties and taxes are used to classify the tax liabilities that are payable to the government. It can take the form of GST, TDS, and VAT. This is one of the crucial groups in Tally Prime to take care of.

Examples:- TDS Payable, and GST Payable.

7. Provision

It is used to classify provisions made for future liabilities and provisions. Additionally, you must make proper records of the provisions. These are some of the key factors that you must take care of while making groups in Tally Prime.

Examples:- Provision for taxation, and provision for gratuity.

8. Sundry Creditor

This is used to classify the accounts payable. All the amounts owed to suppliers. Additionally, this can boost the scope of your creditors in meeting your needs with ease. You must go through the examples to get the correct idea into it.

Examples:- Vendor A and Vendor B

9. Secured Loans

This is used to classify loans that are obtained with the help of security and with the use of collateral. It is also one of the important groups in Tally Prime that you must look forward to from your end.

Examples:- Car loan, Loan against property.

10. Unsecured Loans

It is used to obtain loans without using any security. This is one of the crucial factors that you should be well aware of. Application of the right process will help you to meet your requirements with ease.

Example:- Loan from Directors, and Personal Loan.

11. Investments

This is used to classify the investments made by the business in shares, mutual funds, bonds, etc. Additionally, it will help you to record all the transactions in the groups in Tally Prime. So, you need to follow this record-keeping process.

Example: Fixed deposit investments, equity shares.

12. Sundry Debtors

Sundry Debtors are one of the crucial groups in Tally Prime that you should be well aware of. You must be well aware of these Tally Prime groups to meet your requirements with complete ease.

Example: Customer X and Customer Y

13. Reserves & Surplus

The main purpose of Reserve and surplus is to classify all the retained earnings that are available with the business. Additionally, this can boost the scope of your brand value to a greater level.

Example:- Profit and loss account, and General reserve.

How To Delete A Group In Tally Prime?

To delete a group in Tally Prime, follow these steps carefully. Note that a group can only be deleted if there are no ledgers or subgroups under it and if it hasn’t been used in any transactions.

Steps To Delete A Group In Tally Prime:

1. Open the Group Master:
   • From the Gateway of Tally, go to Gateway of Tally > Accounts Info > Groups > Alter
2. Select the Group:
   • Choose the group you want to delete from the list.
   • Use the search option to find the group quickly if the list is long.
3. Check the Group Details:
   • Ensure the group has no subgroups or ledgers under it.
   • If there are any ledgers, transfer them to another group or delete them.
4. Delete the Group:
   • Once the group is selected, press Alt+D (shortcut for delete) or click on the Delete option at the bottom.
   • A confirmation message will appear: “Are you sure you want to delete this group?”
   • Select Yes to confirm.
5. Verify Deletion:
   • Go back to the list of groups to ensure that the group has been successfully deleted.

Final Take Away

Hence, these are some of the crucial steps that you must be well aware of while meeting your requirements with ease. Groups in Tally Prime will help you to specify your essential requirements for bookkeeping.

You can share your views and comments in our comment box. This will help us to know your take on this matter. Here, proper planning matters a lot. Try to keep things in perfect parity within a shorter time frame.