How to do Bank Reconciliation in Tally – Part 2


First of all I would like to recommend Bank Reconciliation in Tally – Part 1, if you have not read it yet!

If you are a frequent visitor of TallySchool you must have noticed that every post on this blog contains a video tutorial.

I like to explain by demonstrating along with writing because people tend to understand more by listening or seeing along with reading for people who are avid readers.

That is the reason, when I created an ebook of Unknown Tally Shortcuts, together with it I made a special video showing how fast the shortcuts work.

Today I am talking about Automatic Bank Reconciliation in Tally.ERP 9.

Tally will automatically reconcile the bank statement once you enter the path to the excel file of your bank statement.

It will show you all the entries in your bank statement and will ask you whether you want to import it or not.

After you press Yes for importing the statement, you will have all the entries in Tally with every detail you need for bank reconciliation.

Confirm the dates and the transactions and press Yes to reconcile it.

Tally will reconcile the transactions and will show you the remaining transactions that need to be reconciled.

This was the process of automatic bank reconciliation in Tally.

You will agree with me that BRS is a very tedious yet important part of accounting and if there are a bulk of bank statements for the whole year, just looking at it will make you feel asleep. 😯

Why I am not producing a video tutorial on Automatic Bank Reconciliation in Tally.ERP 9?

Because I cannot.

I know how to do automatic bank reconciliation in Tally.ERP 9 but I cannot make a video showing it because I am using the educational version of Tally.ERP 9 which does not permit me to do so.

Let me explain you in a simple manner.

For enabling Automatic Bank Reconciliation in Tally.ERP 9 you have to add your specific bank for which you want to reconcile.

And here comes the crux.

You can add bank only if you have a licensed version of Tally.ERP 9 which costs Rs.18,000 for a single user and 3 times of that for multiple user.

I am an articled assistant and you can imagine if you too are an articled assistant or a Chartered Accountant that how much months stipend would go in if I want to purchase even a single user Tally. 🙂

So I have written the article!

Eventually, I thought of writing the article. What I did is I collected some pictures from the web and wrote a detailed article on Bank Reconciliation (Manual and Automatic) on SimpleTaxIndia.

I have written manual as well as automatic and you can refer them both if you want.

You will easily learn from the article (as it is very detailed) on SimpleTaxIndia about the method of Automatic Bank Reconciliation. Still if you have questions, you know what to do.

Comment below (as more people would learn from your thoughts).

Leaving the rest up to you. Bye bye!

18 thoughts on “How to do Bank Reconciliation in Tally – Part 2

    • Rishit Shah says:

      Thank you very much for appreciating tutorials, Mohd. Yousuf! 🙂
      Keep watching the tutorials!

      And, don’t call me Sir! 🙂

  1. Gayatri says:

    Hey Rishit
    Good work on the site. *thumbs up*
    Am trying to download my bank statement of about 500kb into tally but tally.exe is clossing down. What do I do?

    • Rishit Shah says:

      Hi, Gayatri!

      Is your Tally licensed?
      If yes, you can contact the person from whom you purchased. He will help you out.

      Normally, it does not close down.
      If the software is cracked version this might happen.

      Thanks for the appreciation. 🙂

  2. Mayank Singla says:

    Firstly I thank you for answering people’s doubts within reasonable time of posting comments which is not done by all online teachers.
    In 11th class we take either the bank balance as per business books or as per bank statement as starting figure and then add or deduct certain figures to it.
    But in Tally I am getting confused as we are not following above procedure! Why ?
    What is the exact meaning of “Amounts not reflected in bank” and “Balance as per Bank” . These 2 sentences appear at the bottom of screen when we do reconciliation .

    • Rishit Shah says:

      Hi, Mayank!

      The process in tally for bank reconciliation is same as in school. Just some fuctions added and names changed.

      The business books are your accounts in tally.

      Balance as per Bank means the balance as per the bank statement if you have imported the bank statement in tally.
      Amounts not reflected in bank means the amount for which you have done entries in tally but are not reflected in the bank accounts.

  3. Mayank Singla says:

    What is the exact meaning of “Amounts not reflected in bank” and “Balance as per Bank” . These 2 sentences appear at the bottom of screen when we do reconciliation .

    • Rishit Shah says:

      Amounts not reflected in bank means the amount that are not reflected in your bank statment but are in tally. This can happen when you import bank statement in tally.

      Balance as per bank means balance as per the bank statment.

      • mayank singla says:

        Is it right to conclude that “In Tally, we always start with balance in company’s books and target reaching balance as per bank statement unlike 11th class where we can take starting figure as either “company books” or “bank statement” ?

      • mayank singla says:

        I am posting this comment again as my comment posted on 19 aug 2019 at 4 p.m. did not appear on this page after I clicked on “Post comment” option.
        Can we conclude that in 11th class we have 2 options for selecting starting figure for BRS i.e. Balance as per “company books” or Balance as per “bank statement” but in Tally, we always start with balance as per company books ?

        • Rishit Shah says:

          Hi, Mayank!

          I reply to every comment at the interval of few days so it can take some time to appear on the website.
          But, I have replied to your comment.

          Let me know if you have any other questions.

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