Basic Accounting Entries in Tally ERP 9 – Easy Peasy

Basic Accounting Vouchers in Tally

Basic accounting entries  in Tally require you to understand basic accounting vouchers in Tally.

There are many advanced vouchers in tally but in this post, we are going to look at the most basic accounting vouchers which we use in our day to day use.

Even if you are starting up a new business, then business starting entries in tally include all the below mentioned accounting entries.

Basic Accounting Entries in Tally – Using 4 Vouchers

Once you have created a company in tally, you will see a screen which is called Gateway of Tally from which you will see the option of Accounting Vouchers along inventory vouchers in tally and some other advanced ones as well.

Basic Accounting Entries in Tally ERP 9
Basic Accounting Entries in Tally ERP 9

In Tally there are four basic accounting vouchers namely,

  1. Contra Entry in Tally
  2. Payment Entry in Tally
  3. Receipt Entry in Tally
  4. Journal Entry in Tally

We will have a look at them one by one. I will explain you with the help of examples as well as a videos.

Contra Entry in Tally

When there are just two ledgers involved namely 1) Cash Account and 2) Bank Account an accounting entry which is required to created is Contra Entry.

For example, you want to deposit your old ₹500 and ₹1,000 notes in the bank, the entry required for the above would be a contra entry.

On the other if you want to withdraw new ₹2,000 notes in exchange for the old notes, it would again be a contra entry.

Even if you want to transfer amount from one bank account to another bank account, contra entry or contra voucher is the one that is used in tally.

When you pass a contra voucher in tally, it’s effects are easily seen in balance sheet in tally.

You can even enter the bank details in new version of Tally.ERP 9 like cheque no., number of notes deposited or withdrawn, branch name etc.

Here is an easy tutorial on how you can create contra entries in Tally.

Payment Entry in Tally

It is basically an accounting entry for the payment of anything.

For example, if you want to pay salary to someone working for you, it will be payment entry. You can also do it by using payroll function in tally.

Or if you want to pay for an expense such as maintenance expenses, you have to pass a payment entry using the payment voucher in tally.

You can also use payment voucher in tally to pay your outstanding sundry creditors. Sundry Creditors are created when you pass a normal sales and purchase voucher entry in tally.

Payment voucher is also used to set-off the payment of when you have purchased something along with GST by creating the purchase entry in tally with GST.

You can pay through your bank account or via cash as per you needs.

Receipt Entry in Tally

It is the exact opposite of a payment entry.

It is passed when you receive cash or an amount in your bank account.

For example, if you receive cash for selling things, it will be a receipt entry.

For example, when you receive money by selling your products online, you can easily pass an e-commerce accounting entry in tally which in effect is a receipt entry.

Receipt entry is also used when we do GST transactions in the form of GST accounting entries in tally.

Or you get your salary in your bank account, it will again be a receipt entry.

Learn by watching a video on how to create a receipt entry in Tally.

Journal Entry in Tally

It is an accounting entry which is required to be created when there is no cash or bank account involved.

So, basically it is an entry for transactions such as accounting adjustments or it can be closing entries at the end of the accounting year.

In simple words, whenever there is no cash account or bank account involved, it is a journal entry.

In ancient times, there used to be a journal book specifically for this kind of accounting entries and hence the name journal entry is given.

Journal entry is used while creating all the stock market entries in tally as well. All the contract notes are entered in tally using journal voucher only.

Have a look at this super easy tutorial (trust me it is super easy), and learn to create journal entries in Tally right now.

The respective Tally shortcuts are for the above basic accounting entries are:

  • F4 – Contra Entry
  • F5 – Payment Entry
  • F6 – Receipt Entry
  • F7 – Journal Entry

In simple words, these are called basic accounting entries in Tally.

When you go to Accounting Vouchers from Gateway of Tally, you can pass the above vouchers.

Along with it you can also create some of the advanced vouchers like Debit Note, Reverse Journal, Memorandum and post dated vouchers in tally as well.

The reason I’ve explained these four accounting vouchers in detail is because I want to let the beginners learn Tally in a concrete way so that they can never ever forget them.

After all

Detailing is a key to success.

Knowing each and every thing in detail will let you be an expert at the subject that you are studying whether it is Tally or any other subject.

In the following video, I have already created some of the ledgers which are:

Note – Learn from an easy tutorial on How to Create Ledgers in Tally.

  1. TallySchool – under the group Capital Account
  2. Bank – under the group Bank Accounts
  3. Payment – under the group Indirect Expenses
  4. Cash – that is already created in Tally by default, so you do not have to create it.

Learn what to select for the under option while creating a ledger in tally using the list of ledger accounts in tally.

What you have to do is simply create all the ledgers and then see the video tutorial below.

After that try to make entries as listed in the video without seeing the video by yourself.

By repeating this, you’ll be able grasp and remember the entries. You will know the four basic vouchers of tally in detail.

Basic Accounting Entries in Tally – Explained

At the End

I have tried my best to explain the four basic accounting vouchers to be entered in Tally. This is how you should actually use tally.

After watching this video I am pretty sure that you do not have to go to any other place to learn Tally.

You can also learn more about tally using the tally notes including GST that I have recently published.

Still, if you find anything that needs to be done in the video, you can simply comment below and I will be more than happy to solve your problem.

One last question: What according to you are the basic vouchers in Tally that every beginner should know in order to run and operate Tally with ease?

Now, I am sure you can easily create Basic Accounting Vouchers or accounting entries in Tally.

Comment your answer below and share your knowledge because knowledge increases when shared! 🙂

P.S. – Do you know what is tally in reality?

119 thoughts on “Basic Accounting Entries in Tally ERP 9 – Easy Peasy

  1. Rajarajeswari says:

    In the above video, while explaining contra voucher, transaction from bank to cash is termed as deposit. . But how? From bank to cash is withdrawal of cash because, in case of withdrawal only money is taken from bank as cash. Please explain.

  2. john says:

    regarding the theory provided which precede the video, the basic vouchers are contra, receipt, payment, and journal. am yet to watch the video but let me first congratulate you for your awesome initiate to share what you have acquired with the world. i will form my own opinion after watching the clip regarding the basic vouchers and certain i will drink in the same cup of yours because you are now my master. thank you .

    • Rishit Shah says:

      Thank you John for such a high honor and congratulating me.
      I will be very happy to hear your opinion, so please do let me know your opinion.

  3. Robert johnson says:

    thank you dear for these educational videos. they were very helpful to me to begin tally with lots of information. keep it up.

  4. gurvinder says:

    Dear, Thank you for sharing knowledge. Following your videos, I have created ledgers. I am unable to make a CONTRA or PAYMENT entry as I am required to fill ACCOUNT. I need to know what is to be filled here.

    • Rishit Shah says:

      Hi, Gurvinder!

      You need to make different ledgers for expenses, incomes and so on.
      Then you will see the options regarding accounts which you will need to fill.

  5. nikhil says:

    nothing explained in this tutorial is working for me,I am not able to enter a voucher,because there are differences in version of software you and I use

  6. saba says:

    hello sir thoda sa advance videos bhi de so that ki hme or detail me smj aa sake q ki ye i know ki basic hai but basic se b thoda or difficulty level badhaye ap thanku

  7. Vinay Saklecha says:

    Actually i m learning tally.. but my family business is pawn brokering .. so we have pledge a/c on b/s.. so i want to know about the under of pledge a/c

    • Rishit Shah says:

      Hi, Vinay!

      Your family business is a kind of unique.

      Pledge can be either be under debtor or creditor on the basis of position of the account at the end of the accounting year.

  8. Madhu says:

    hi rishit

    i want to ask that if any payment is made in advance and the bill is made in the next month, then i have shown in receit that payment is received on account, can you pls tell me what will be the entry in the next month to clear the bill?

  9. vijay kumar says:

    sir if we are selling goods for cash then why it will be receipt entry i think it would be a cash sale entry plz define

  10. KHUSHBOO says:

    IN TUTORIAL 4 OF CREATING CONTRA VOUCHER I AM UNABLE TO CREATE AS ITS SHOWN WHEN YOU SELECT F4 ALREADY CREATED LEDGERS ARE SHOWN OF BANK AND CASH BUT IN MY CASE THESE ARE NOT SHOWING KINDLY HELP HOW TO PROCEED

  11. sherilshibilyrahman says:

    Sir , how to prepare and record journal entries in tally . Please explain the steps and procedure .

  12. Ramya.m says:

    How do we treat petty cash in vouchers and under which group petty cash comes .
    pleas give some examples for petty cash items
    Do we need to create voucher type for petty cash and why do we use voucher type in tally ERP9 what does it mean ?

    • Rishit Shah says:

      Hi, Ramya!

      Petty Cash can be treated as a cash account and therefore it can be created under Cash Accounts.

      You do not need to create a voucher type for petty cash.

      Voucher Types are basically a form of accounting entry which is required to separated in Tally for reporting.
      For example, contra is a voucher type and used for contra entries only. Similarly, purchase is a voucher type and used for purchase entries.

  13. Sivagurunathan says:

    I have watched all the courses video and i need to understand one thing you r creating receipt voucher also sales voucher , you r creating purchase & payment voucher.

    Difference b/w them is confusing?
    Need to clarify??

    • Rishit Shah says:

      Hi, Sivagurunathan!

      Sales voucher is for sales you do but in accounting sales simply mean sales and not the receipt of money for that sale and therefore I am trying to explain how the entire process works.

      Same is with the purchase. You have to make payment after purchasing something but accounting entries for them are separate unless you are selling or purchasing in cash.

  14. Rinzin lhendup says:

    there are 4 accounting vouchers
    1.contra entry…when there is involement of two account cash account and bank account we should choose contra voucher
    2.payment voucher..when we pass entry for someone working with me i should pay him payment entry i choose
    3.receipt voucher…lets say when we receive things we made receive voucher it is just a oppisite to payment voucher
    4.journal voucher…we create journal entry when there is no involement of cash and bank account .its is just oppisite to contra entry

  15. B P Vasantha says:

    As accounts done manually is not accepted i just want to know fully the tally, i have manually done the accounts in the college where i was working. there also auditors would ask for making the enteries in tally i was doing it now since i am not in touch i want to completely learn.

  16. N Srinivas says:

    Sir,
    In basic voucher entry, you have made a payment , can you explain the ledgers involved in that entry,

    • Rishit Shah says:

      Hi, N Srinivas!

      First one is a payment ledger which is your direct or indirect expense.
      Second one is Bank ledger which is used to make the payment since in the example, I have made the payment from the bank.

  17. anita says:

    HI SIR,
    PLEASE HELP ME TO OPEN TALLY STEP BY STEP B’COZ I DONT UNDERSTAND HOW TO OPEN IT SHOW ME YOU ARE NOT LOGGED IN AS A REMOTE USER.

    • Rishit Shah says:

      Hi, Anita!

      After installing Tally, you should select Educational Mode and it will open up. Then you have to create a company for the first time because there will be no company created as this is a fresh install in Tally.

  18. shreeja says:

    so Rishit these vouchers are the main part of the tally ryt. so have u put any practise sums so that we can practise through tally. or have you put any extra details? and how many days it will take to complete this course?and obviously thank you very much. todays session was quit helpfull. waiting for tommorow’s session.

    • Rishit Shah says:

      Hi, Dayanandan!

      Here is the entry for that opening your business through jewellery loan.

      Bank A/c Dr
      To Jewellery Loan A/c

      It is true that you brought capital into the business but as you brought it through the bank loan, it will show as jewellery loan a/c.

  19. Manish Shori says:

    Sir,
    Few days back I sent you the mail regarding some quarries in my mind. I did not receive that mail. Pls reply me.
    Thanks a lot

  20. Pallavi Jadhav says:

    I am on the educational version of Tally, and when I try to create entry for vouchers, the created ledgers are not displaying. What am I doing wrong?

    • Rishit Shah says:

      Hi, Pallavi!

      Different kind of ledgers are used for different purposes.
      If you create a sales ledger, it will not show up in contra voucher.
      This is how tally works.

      So, for a certain voucher, there are specified ledgers that will show up. You have to create ledgers keeping that in mind.

  21. Brandon says:

    Hi, why is it in other resources, there are 6 types of accounting vouchers or entries? These are; 1. Purchase 2. Sales 3. Receipt 4. Payment 5. Contra and 6. Journal? Is that correct type?

  22. Radhika Patankar says:

    Sir,
    I am trying to practice the accounting entries but the screen is not showing Dr. and Cr. option. Whatever i insert, the amount of all the accounts just keeps on adding up. What do i do?

  23. Hariprasad R S says:

    Hi Rishit,

    Thank you for the details… As I am not having accounting background there are some conceptual issues I am facing. Is it possible to clarify following?

    Suppose we have ‘n’ employees. what I understand is we need to create ledger for each , ledger for their expense, salary etc. and when we settle their expense we need to post payment voucher and journal . By ‘xxxxx” debit amount
    To bank a/c credit … right?

    • Rishit Shah says:

      Hi, Saloni!

      Even in 2019, basic accounting entries are done the same way as the older version.
      Maybe the user interface has changed a bit, but the way it works is still the same.

      Still, if you have any issues, you can email or comment on the blog.

  24. A K gupta says:

    How to cancel the vouchers.please advise.
    One more thing.please advise the tally educational version has one limitation I.e.it will not record entries on all dates.Are these dates fixed or randomly based selected.Is there any expiry of this version.

    • Rishit Shah says:

      Hi, A K Gupta!

      Go into the voucher that you want to cancle and press ALT + X to the cancel the voucher in tally.

      In Tally educational version, generally the first and last dates of the month are available for entry. Rest of all the dates are blocked for passing the entries.

  25. Amiry says:

    Thanks for the lesson I wish to ask if u have daily cash sales of irregular customer  how do we record it… is it through receipt voucher…. but also when you sale an item does automatically be deducted from the stock

    • Rishit Shah says:

      Hi, Amiry!

      You can use POS Sales Voucher for that.
      You can create a POS Sales Voucher in Accounts Info > Voucher Types > Create and then under Sales.

      Select the option of POS sales as YES.

      Now, you can use this in Sales Voucher and you can record it like point of sale transaction as you want.

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