Basic Accounting Entries in Tally – Explained

Basic Accounting Vouchers in Tally

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

In Tally there are four basic accounting vouchers namely,

Contra Entry

Payment Entry

Receipt Entry

Journal Entry

We will have look at them one by one. I will explain you with the help of examples as well as a video which is at the end of the post.

Contra Entry

When there are just two accounts 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.

You can even enter the bank details in new version of Tally.ERP 9 like cheque no., number of notes deposited or withdrawn, branch name etc.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

It is basically an entry for paying something.

For example, if you want to pay salary to someone working for you, it will be payment entry.

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

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

Receipt Entry

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.

Or you are paid your salary in your bank account for working for someone, it will again be a receipt entry.

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

Journal Entry

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 outstanding payments or receipts, 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.

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

Their respective Tally shortcuts 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, Memos and so on.

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.

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 in detail.

Basic Accounting Vouchers – Explained


At the End

I have tried my best to explain the four basic accounting vouchers to be entered in Tally.

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

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! 🙂

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83 thoughts on “Basic Accounting Entries in Tally – Explained

  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.

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