Tally Question No. 2

Question : Explain the following group with an example

1.     Capital Account

2.     Current Assets

3.     Indirect Expenses

4.     Direct Expenses

5.     Bank account

6.     Bank OCC account

7.     Fixed Assets

8.     Current liabilities

Answer:
In manual accounting grouping is need to be done after figures of transaction (Vouchers) have been posted to the ledger accounts and balance drawn (Trial Balance).
In Tally by default it creates 15 groups; they are called as Reserved Groups (some are divided into sub groups)

Capital Account

This group holds the Capital and Reserves of the company. The following ledgers that may be opened under this group are
Share Capital A/c [When the firm is Company]
Partners' Capital A/c [When the firm is Partner-ship firm,
Proprietor's Capital A/c [When the firm is proprietary ship based]
Reserves and Surplus A/c [also called as Retained Earnings]
Capital Reserve A/c, General Reserve A/c, Reserve for Depreciation A/c, etc.

Current Assets

This Group holds the current assets ledgers other than Bank Accounts, Cash in Hand
For Eg: Loan & Advances (assets)
Deposits (Assets)
Stock-in-hand

Indirect Expenses

This group holds all the Administrative, selling & distribution Expenses Accounts. These expenses are generally shows in Debit side of Profit & Loss account.
For Eg. Depreciation A/c,
Rent, Rate & taxes A/c ,
Insurance charges A/c,
Printing & stationery A/c,
Repairs & Maintenance (Admn) A/c,
Traveling and conveyance A/c.
Salaries Payable A/c

Direct Expenses

This group holds all the Trade A/c Expenses; it determines the gross profit / gross loss of the company
For Eg: Wages A/c,
Factory Light A/c,
Frieght & Octroi A/c,
Carriage inwards A/c,

Bank account

This group holds Bank related Accounts
Bank Current Accounts for Eg: State bank of India [CA-1095]
Bank Savings Accounts, for Eg: HDFC bank [SB-2555]
Short term deposits A/c etc

Bank OCC account

This group holds the Bank Overdraft Account

Fixed Assets

This group holds ledgers of fixed asset like
Land & Building A/c,
Furniture & Fixtures A/c,
immovable properties,
patents ,
trade rights,
Current liabilities

This group contains the flowing sub-groups
Duties taxes
Sales Tax,
Central Sales Tax,
Exise Duty,
Marketing Fee,
Purchase Tax
Provisions
Provision for Income Tax
Provision for Bad Debts
Sundry Creditors
All trade creditors of the company
For Eg: Raj & Raj Co.,
ABC Company Ltd

Current Liabilities holds the following Ledgers:
All liabilities accounts which are not fallen in above 3 groups can be placed here Like Statutory Liabilities
For Eg;
T.D.S payable A/c.
E.S.I Employer’s Contrib Payable A/c
P.F Employer’s Contrib Payable A/c