🪑 TALLY PRIME LEDGER SETUP FOR FURNITURE BUSINESS
Let’s structure everything step-by-step 👇
⚙️ Step 1: Understand Tally’s Basic Structure
In Tally Prime, every ledger must be placed under a group, and those groups fall under:
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Assets
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Liabilities
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Income
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Expenses
🏦 1. Assets
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Cash | Cash-in-Hand | Default cash account |
| [Your Bank Name] (e.g. SBI Bank) | Bank Accounts | One ledger per bank |
| Stock-in-Hand (Furniture) | Stock-in-Hand | Used to record your inventory (chairs, tables, etc.) |
| Furniture & Fixtures | Fixed Assets | For furniture used in your own office |
| Tools & Equipment | Fixed Assets | For saws, drills, etc. used in making furniture |
| Vehicles | Fixed Assets | If used for delivery |
| Advance to Supplier | Current Assets | Advance payments for purchases |
| Accounts Receivable (Customer Name) | Sundry Debtors | Customers who buy on credit |
| Security Deposit / Rent Deposit | Loans & Advances (Asset) | Shop deposit, electricity deposit, etc. |
⚖️ 2. Liabilities
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Capital Account (Owner’s Name) | Capital Account | Owner’s investment |
| Drawings Account | Capital Account | Owner’s withdrawals |
| Loan from Bank / Person | Loans (Liability) | Any borrowed funds |
| Accounts Payable (Supplier Name) | Sundry Creditors | Vendors or suppliers |
| Outstanding Expenses | Current Liabilities | Unpaid bills at month-end |
| GST Payable | Duties & Taxes | GST liability (if registered) |
💰 3. Income Ledgers (Sales)
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Sales – Furniture (GST 18%) | Sales Accounts | Main sales ledger for furniture |
| Sales – Custom Orders | Sales Accounts | For made-to-order furniture |
| Sales Return | Sales Accounts | For returned furniture |
| Service Income – Furniture Repair / Polishing | Sales Accounts | If you offer repair/polishing |
| Other Income | Indirect Income | Any miscellaneous income |
💸 4. Purchase Ledgers
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Purchase – Raw Materials (GST 18%) | Purchase Accounts | For timber, plywood, hardware, etc. |
| Purchase – Ready Furniture (GST 18%) | Purchase Accounts | If you resell finished furniture |
| Purchase Return | Purchase Accounts | For returned materials or goods |
| Freight / Transport Charges | Direct Expenses | Delivery charges for materials |
| Custom Order Materials | Direct Expenses | For special client orders |
🏭 5. Direct Expenses (Related to Production or Goods)
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Carpenter Wages / Labour Charges | Direct Expenses | Labour cost for furniture making |
| Polishing & Finishing Expenses | Direct Expenses | For varnish, polish, finishing |
| Packing Material Expense | Direct Expenses | For packing furniture |
| Delivery & Loading Charges | Direct Expenses | Transportation and loading expenses |
| Factory Rent / Workshop Rent | Direct Expenses | Rent for manufacturing space |
| Electricity (Workshop) | Direct Expenses | Power for tools/machines |
🧾 6. Indirect Expenses (Day-to-Day Operations)
| Ledger Name | Under Group | Purpose / Notes |
|---|---|---|
| Office Rent | Indirect Expenses | Shop or office rent |
| Salary / Staff Wages | Indirect Expenses | Admin staff salary |
| Telephone / Internet Expense | Indirect Expenses | Communication cost |
| Advertising & Promotion | Indirect Expenses | Marketing, brochures, etc. |
| Printing & Stationery | Indirect Expenses | Bills, receipts, etc. |
| Repair & Maintenance (Office) | Indirect Expenses | Repairs of office or showroom |
| Bank Charges | Indirect Expenses | Bank service fees |
| Electricity Charges (Office) | Indirect Expenses | Office electricity |
| Travelling & Conveyance | Indirect Expenses | Travel for delivery or meetings |
| Depreciation | Indirect Expenses | On fixed assets |
| Miscellaneous Expenses | Indirect Expenses | Small, unclassified costs |
🧮 7. GST Setup (If Registered)
| Ledger Name | Under Group | Type of Duty/Tax |
|---|---|---|
| Output CGST | Duties & Taxes | GST on sales |
| Output SGST | Duties & Taxes | GST on local sales |
| Output IGST | Duties & Taxes | GST on interstate sales |
| Input CGST | Duties & Taxes | GST on local purchases |
| Input SGST | Duties & Taxes | GST on local purchases |
| Input IGST | Duties & Taxes | GST on interstate purchases |
📦 8. Stock Items (for Inventory Management)
Go to Inventory Info → Stock Items → Create
You can maintain stock for each item, e.g.:
| Stock Item | Unit | Category / Group |
|---|---|---|
| Wooden Chair | Nos. | Finished Goods |
| Dining Table | Nos. | Finished Goods |
| Sofa Set | Nos. | Finished Goods |
| Office Desk | Nos. | Finished Goods |
| Plywood Sheet | Sq. Ft. | Raw Materials |
| Varnish / Paint | Litre | Raw Materials |
| Screws / Hinges | Pkt | Raw Materials |
🧩 9. Optional Custom Groups
You can create subgroups for better reporting:
| Group Name | Under Group | Use For |
|---|---|---|
| Workshop Expenses | Direct Expenses | All production-related costs |
| Office Expenses | Indirect Expenses | Administrative expenses |
| Marketing Expenses | Indirect Expenses | Promotions, ads, etc. |
| Fixed Assets – Furniture Manufacturing | Fixed Assets | All workshop tools & machinery |
📊 10. Reports You’ll Get
Once this setup is done, Tally will automatically generate:
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Balance Sheet
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Profit & Loss Account
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Stock Summary
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GST Reports (if enabled)
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Debtors/Creditors Outstanding
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Expense Analysis
✅ Setup Tips
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Gateway of Tally → Accounts Info → Ledgers → Create
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Set Inventory Values Are Affected? =
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Yes → for Sales and Purchase ledgers
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No → for expense/income ledgers
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Enter GST details in ledgers if registered.
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Create Stock Items with proper unit (Nos., Sq.Ft., etc.)
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Use Godowns if you have multiple warehouses or showrooms.
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