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.
In Tally there are four basic accounting vouchers namely,
- Contra Entry in Tally
- Payment Entry in Tally
- Receipt Entry in Tally
- 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You can even enter the bank details in new version of Tally.ERP 9 like cheque no., number of notes deposited or withdrawn, branch name etc.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.
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.
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.
- TallySchool – under the group Capital Account
- Bank – under the group Bank Accounts
- Payment – under the group Indirect Expenses
- 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?