This post is for beginners who ask us how we can put a basic transaction in a tally. We get a lot of questions about banking in Tally. We are putting all questions and answers together in this post, with Examples and explanations.
How to enter Cash deposit in Bank in Tally.ERP9
How to enter Cash deposit in Bank in Tally.ERP9.Example 01-04-2020 ABC Ltd Deposited cash into Axis bank Rs 100000 Depositing cash into a bank account is a usual practice, the cash generated through the sales process usually deposit into the bank. This is called a contra entry because this transaction doesn’t create any end in business, a Cash deposit is an indoor moving of money from cash-in-hand to cash at the bank. There is no result like profit or loss by doing this transaction.Journal entry for a cash deposit, into bank Account…………………Dr 100000 ( Asset increases – Nominal Account rules)To Cash 100000 (Asset decreases- Nomination account rules) To include this transaction in Tally, there is a type of voucher called contra voucher, to get a contra voucher, (The Journal voucher does not usually use cash deposits and withdrawals in Tally ERP9, Many are confused as to what type of voucher will be used for bank deposits and withdrawals.)
Go to Gateway of Tally> Accounting voucher> F4 Opposition vouchers the Contra Voucher, enter the date by pressing F2, In ‘Account’ Field’: Select the bank in which money is deposited: Axis bank, Tip: The account in which the value is increasing should be selected at the top of voucher in single entry mode.Select ‘ Cash’ in particulars field Tip: The decreasing account should be selected under particulars. Press enter, fill the bank allocation screen as follows.Received from: CashierTransaction type : CashAmount: Automatically selected.Denomination: 1000 x 100 Branch: Mumbaienter narration: Being cash deposited in the axis bank account, Here is the final voucher screen. Bank deposit voucher in the double-entry mode you can also enter this contra voucher using double-entry mode by Pressing F12 from voucher entry screen and Set No for option Use single entry mode for payment/rcpt/contra.Cash Withdrawals in from Bank transactions in Tally ERP 9
Example:02-04-2020 ABC Ltd Withdrawn cash from Axis bank Rs 50000 vide cheque No 215416When cash is transferred from the bank to the business, effectively there is no change in the results of the business, this is also a cash flow from the bank to the business. Submission of a cash register is Cash A/c ……………………….Dr 50000 ( Apply rule real account asset increases)To Axis bank 50000 ( Apply rule real account asset decreases)Cash Withdrawal entry in Tally ERP9, Cash withdrawal is also a contra entry, hence entered in contra voucher to Gateway of Tally> Accounting Voucher> F4 ContraFill the voucher as followsAccount : Cash: Cash Particulars: Axis bank: Axis bank Amount: 50000 In bank allocation screen.Favoring name :Self: Self Transaction type : Cheque: Cheque Instrument No : 215416: 215416 Instrument date: Enter the date on the cheque, it may differ from the transaction date.Enter narration: Being cash withdrawn by Mr.VIP voucher entry for cheque Issued or Given to a supplier( Bank payment voucher) in Tally.ERP9.
Example:02-04-2020 ABC Ltd Issues cheque No: 214565 of ICICI Bank of Rs 5000 to supplier AWhen a cheque is issued to a supplier, We enter the transactions immediately in Tally. When a cheque is issued to the supplier or a person The bank balance & Liability decrease.
Journal Entry for Cheque issued to supplier A…………………….Dr 5000 ( Apply personal account rule debit the receiver)To ICICI Bank 5000 ( Apply for Real account rule Credit what goes out)Enter Cheque issue transaction in Tally ERP9 Cheque issue transaction is entered in Payment voucher type in tally.Go to Gateway of Tally>Accounting Voucher> payment you can also use a separate voucher type for entering bank payments only enter the details in the bank payment voucher as follows.Account: ICICI Bank: ICICI Bank Particulars: Supplier A: Supplier A Amount: 5000 In bank allocation screenFavouring name: Supplier A: Supplier A Transaction Type: Cheque Amount: 5000 Inst No : 214565: 214565 Inst Date: Can be any date on the cheque, need not be same as the transaction date.: Can be any date on the cheque, need not be same as the transaction date. Cross Using: A/c Payee if the cheque is crossed. Press Enter and save. Entry for cheque deposited in bank received from a customer or bank receipt entry.Example: CUSTOMER E has given SBI cheque No: 984715 dtd 31-05-2020 of Rs 8000 towards his settlement, Our company ABC Ltd deposit the same in Axis bank LtdWhen We receive a cheque from the customer, We deposit the cheque log in to our bank for collection on check day. If you received a post-date cheque it is advised to enter the receipt on the date of deposit for better credit management.Journal Entry When a cheque is received from customerAxis Bank A/c …………………….Dr 8000 ( Apply real account rule, Asset increases)To Customer E …………………………….Cr 8000 (Apply for personal account Credit the giver)
How to enter Bank receipt voucher or cheque deposit entry in Tally ERP 9
How to enter Bank receipt voucher or cheque deposit entry in Tally ERP 9In Tally When a cheque is deposited in our bank, The Voucher type to be used is Receipt Voucher. Go to Gateway of Tally> Accounting Voucher> F6 ReceiptEnter details as followsAccount: Axis BankAxis Bank Particulars: CUSTOMER EIn bank allocation screen received from CUSTOMER E: CUSTOMER E Transaction type: Cheque/DDThe Cheque Deposit entry screen look like belowBank to bank transfer entry example: On 31-05-2020 Want to transfer 100000 from Axis bank to State bank of India via Cheque No 124566 &50000 from ICICI Bank to Axis Bank through NEFT ABC LTD has three bank account, AXIS Bank, State bank of India & ICICI Bank, Since these transactions, are just movement of fund from one bank account, there is no business result. hence falls under contra entry.Journal EntryState bank of India ……………….Dr 100000.00 ( Apply real account, asset increases)To Axis bank……………………………Cr 100000.00 ( Apply real account, asset decreases)(Being amount transferred from axis bank to state bank of India via Cheque No 124566)Axis bank …………………………..Dr 50000.00 ( Apply real account, asset increases)To ICICI Bank…………………………. Cr 50000.00 ( Apply real account, asset decreases)(Being amount transferred from Axis bank to ICICI Bank through NEFT)Bank to bank transfer transaction voucher in Tally.ERP 9,
Go to Gateway of Tally> Accounting Voucher> F4
Go to Gateway of Tally> Accounting Voucher> F4 ContraEnter details as followsAccount: State Bank of India Particulars: Axis banking bank allocation screenFavoring: ABC Ltd: ABC Ltd Transaction type: ChequeCheque Inst No: 124566Screen shot of bank to bank transfer through cheque voucher in tally Bank to bank transfer through NEFT/RTGSGo to Gateway of Tally> Accounting Voucher> F4 ContraEnter details as followsAccount : Axis BankAxis Bank Particulars: ICICI BankIn bank allocation screenFavoring : ABC Ltd: ABC Ltd Transaction type: Interbank transferInter bank transfer A/c No : Enter Account No of ICICI Bank: Enter Account No of ICICI Bank Inst No : 124566 IFSC:ICIC0000021 Bank: Axis bank: Axis bank Transfer Mode: NEFTBank entry when customer Directly deposited cash/cheque/Rtgs/NEFT in bank account Example: Customer B directly deposited 5000 cash into an axis bank account when customer deposit cash into our bank account, Bank balance increases, and customer balance reduces, this is a bank receipt entry.Journal EntryAxis bank a/c………………Dr 5000To Customer B …………….. 5000How to enter customer deposited cash in a bank account in TallyGo to Gateway of Tally> Accounting Voucher> F6 ReceiptAccount: Axis bank particulars: Customer AEnter bank allocation details in accordance with nature of transactions and the final voucher for customer deposit cash into our bank account.How to Enter Fixed Deposit In Tally ERP9ABC Ltd created a Fixed deposit of 100000 in HDFC Bank by issuing a cheque of State bank of India Cheque no 789456When you create a fixed account in a bank, you have to open a separate account in Tally, In our case, We are creating an account HDFC-FD in Tally under Group Deposits ( Asset). This is also a fund movement, but for the long, the term, and will have some effect on business, When deposits become mature, Some interest will be given and that can be treated as an income /profit. Hence this is a bank payment entry.
Gateway of Tally>Accounting Info>Ledger >CreateJournal EntryHDFC -FD …………………Dr 100000 ( asset increases)To State bank of India 100000 (asset decreases)Fixed Deposit Voucher Entry In Tally ERP 9 ,
Go to Gateway of Tally >Accounting Voucher > F5 PaymentAccount: State bank of IndiaParticulars: HDFC -FDEnter bank allocation screenTally Voucher for DD PurchaseExampleDD Taken for Electricity Board Application Rs 1000 + 25 DD commission through cashDD Taken for issuing DSIIDC For Lease Premium 1000000 + DD Commission 2500 through a cheque if Axis bank 1025000DD Taken through cashIn the first cash, there is no relation to bank account hence no bank related entry to be passed in tally instead a payment voucher by debitingRates&Taxes…………………Dr 1000Bank charges……………….. Dr 25To Cash …………… 1025Create a payment voucher as was common for this transaction DD Taken through cheque within the second case, the DD Is taken by issuing a cheque hence the entry should be as follows. Lease Rent …………………..Dr 1000000Bank charges………………..Dr 2500To Axis bank ……………. 1025000How to enter a bank transaction?
Cash Withdrawn for Personal useExampleCash Drawn 10000 by Mr. Saju, Managing Director for Personal use from Axis bank When cash is withdrawn for personal use, it should be accounted in Director's loan account in case of Company and Capital Account in case of a partnership or sole proprietorship.Procedure When cash is withdrawn for the director’s personal use Journal Entry: You have to pass two entries for this.
Go to Gateway of Tally> Accounting Voucher> F4 ContraCash A/c ……………Dr 10000To Axis bank………. 10000( being cash withdrawn for director saju personal use)Go to Gateway of Tally> Accounting Voucher> F5 PaymentSaju’s Loan A/c …………Dr 10000To Cash …….. 10000You might ask why cannot do by inserting one by withdrawing a loan account and entering a bank account? There is no issue doing that, but the exact route of cash flow is the first method. Procedure When cash is withdrawn through cheque for the director’s personal use In this case we can do this with a single entry. Journal EntrySaju Loan A/c……………….Dr 10000To Axis bank 10000In this method there is no cash flow in the business, the fund is moving directly to the director's bank account. Go to Gateway of Tally> Accounting Voucher> F5 PaymentHope these transactions examples help beginners,, apart from the above I have some questions which can be answered in few words. the bank account is a real account or personal accounts? As far a business is concerned bank account is a real account and we are placing a bank account on the balance sheet under Asset. Hence bank account is a real account. But you can treat it as a personal account only for the purpose of journalizing for simplifying journalizing. How to do bank charges entry in tally? You can Do it by debiting BANK CHARGESCrediting BANK ACCOUNTGateway of Tally> Accounting Voucher >F5 payment account: Bank account ( Axis bank )Particulars: Bank ChargesEnter amount & narrations and save. Hope I have covered usual bank transactions and their implementation in tally, If you have any specific transactions related to your business, please ask through our comment form, we will answer as soon as possible
