Create Expense and income ledger in tally

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 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. We will discuss about indirect and direct expenses later.

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 creating Travelling Expense

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

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.