HomeLedger

|

In previous lesson we have created sales and purchase ledger, here we are learning to create Expense and Income Ledger. Expense and income are in two types. One is called direct and other one is called indirect. Direct income and direct expenses are the part of trading account and Indirect income and expenses are the part of profit and loss account. Before creating ledger in tally let’s understand what is expense & income is.

What is an expense?

Expense are the cost incurred while earning profits from the business.Business spend money for the operation of business, buying goods for production, giving the cost of labor,spending for office administration,accounting costs, freight cost involved in the process of buying and selling of goods.All these are termed as expense.

What is direct expense?

The word direct expense in accounting is a relative term.It is an expense which are directly related to production, sales, and services. That is when you spend money for production  in manufacturing business, for example, purchase of raw material,payment to labor,electricity are direct expense. In a trading business salary paid to a sales man and Telephone bill paid in a consultancy service business are direct expenses.

What is Indirect expense?

Indirect expense are expenses other than direct expense is indirect expense.The examples of indirect expenses are, salary to office staff,Printing and stationery, Rates & taxes etc.

What is an Income?

Income is the money received by a business during the process of selling  its goods or services,  or earning through investment.

What is Direct Income?

Direct incomes are incomes which are earned by business through its business activities.For example income through sales, Income through services provided.

What is Indirect Income ?

Indirect Incomes are Incomes earned through non business activities.Like selling of scrap materials.Sale of carton boxes etc.

Let’s create the following Ledgers.

Ledger Under Group
Travelling Expense Indirect expense
Commission received Indirect Income

Go to Gateway of Tally >> Accounts info>>Ledgers >>Create

The hot key to access the screen is     A-L-C

Now you are in Ledger Creation Screen.We are creating Travelling Expense ledger.Fill in the following Field.

  • Name: Type  Travelling Expense here
  • alias:  here you can type an alternative name, code, numbers etc.
  • under : Type indirect expense, Travelling expense is an indirect expense .
  • Inventory values are affected: This is applicable if company created in Accounts cum inventory.
  • Opening Balance :  enter opening balance of previous period ( Financial year) if any

For better clarity see below image

Press enter and save the screen, now we have created expense ledger.

Create Income Ledger In tally

Creating income ledger is similar to creating expense ledger. Here we are going to create Commission received Ledger which is comes under group indirect income.

To do this Type name Commission received under field “Name “

And select indirect income in field “Under”

Rests of the things are same as expense ledger see the image

income-received

Press enter and save the screen.

Note: The field displayed in the ledger creation screen may vary in accordance with the option enabled in F11 Company feature.

After creating expense & Income ledger, next step is entering payment voucher & receipt voucher.

Comments (2)

  • sir can u pls dicate me some of the LEDGERS and UNDER.
    raw materials LEDGER of a company comes UNDER ?

    Reply
  • pplz let me know, what if am giving a cheque of my customer to my supplier ? how to actually record sundry creditor to sundry debitor trasnaction, if you try to pay using Payment BUTTON, it will show only bank accounts.???

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

shares
error: Content is protected !!

Related pages


tally company creationtally shortcut keysjournal ledger and trial balance examplescheque management softwarejournal entry for bad debtstally 5.4contra entry meaning with examplebills receivable and bills payableincome tax slab 2013-14tally erp 9 free download educational versiondefine disallowexamples of prepaid expenses in accountingcanceled chequewhat is direct expenses and indirect expenses in accountingtds deduction on advance paymentcash payment voucher formattally manual guideaxis bank credit card payment by chequeopening balance definitiondebtors ledger formattally erp 9 tutorialsaccounting ledger book formatsalary payable journal entrysundry meansformat of cheque receiptjournal entry for depreciationaccounting tips and tricks for studentssenior citizen income tax slabtally erp 9.0 free downloaddefinition of summarizing in accountingaccounting adjusting entries tutorialbest tally institute in hyderabadcash voucher meaningwhat is direct and indirect expensessundry debitorsunearned income journal entryform 27eqassessment year 2014 15 tax slabaccounts and ledgersfreight journal entrywhat is tally accounting softwarebrs statement meaningwhat is meant by voucherdebtors account definitioncontra voucher examplestax tcsvouch accountingwhen tds to be deductedhow to learn tally 9.0examples of bank reconciliation problemsdebit and credit rules in accountingpassbook entryhow to remove vat calculationmemorandum of association format in wordtds payment rulesdepreciation depletion and amortizationtally questions and answerspreparing a bank reconciliation statementcar loan accounting entrydirect expenses meaningtally invoiceincome tax slab for ay 2014-15bank reconciliation statement journal entriesincome tax slab rate for fy 2014 15uses of a trial balancevat input and outputhdfc cheque deposit sliptax slab 2014-15manufacturing account format exampletds entriescontra accounts examplesdeductee meaningledgers furniturecorporate identity number cin of companyaged debt analysis