Basic accounting entriesĀ 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 AccountĀ an accounting entry which is required to created is Contra Entry.
For example, you want to deposit your oldĀ ā¹500 andĀ ā¹1,000 notes in the bank, the entry required for the above would be a contra entry.
On the other if you want to withdraw newĀ ā¹2,000 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You can even enter the bank details in new version of Tally.ERP 9 like cheque no., number of notes deposited or withdrawn, branch name etc.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 getĀ 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 createĀ some of the advanced vouchers like Debit Note, Reverse Journal, Memorandum and post dated vouchers in tally as well.
The reason I’ve explainedĀ 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.
- TallySchool – under the groupĀ Capital Account
- Bank – under the groupĀ Bank Accounts
- Payment – under the groupĀ 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 vouchersĀ 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! š
P.S. – Do you know what is tally in reality?
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.
Dear Rajarajeswari, I am explaining entries as if I am writing in my books so there will be withdrawal of cash from the books and deposit of the same in the bank.
Thanks for watching the video. š
Sir
Namaskaar my name prabhat saxena I m sn accountant maintain cash book ledger but I m required maintain account on tally
Hi, Prabhat!
You can start learning Tally by going through Tally Course Online.
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 .
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.
thank you dear for these educational videos. they were very helpful to me to begin tally with lots of information. keep it up.
Thank you very much Robert Johnson for your appreciation. š
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.
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.
hai i am varghese i would like to learn about tally i do not know anything at all pls help me how to learn tally step by step in simple manner
Start with the Free Tally Course Online on TallySchool
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
Hi, Nikhil!
Which version of Tally are you using?
I can help you to understand it better.
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
Hi, Saba!
Advance videos ke liye aap Tally DVD Course purchase kar sakte hai!
very simple & useful explination sir. thanku
Thank you Shruti for your nice words! š
good publicity
Well, Shubham!
Thank you very much. š
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
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.
nice explanation in simply…i have a lot of interest about tally…
Thank you Srivani for your nice words.
It really motivates me to do more like this. š
I WANT LEARN TALLY PLZ HELP ME
Hi, Vikram!
Start by Free Tally Course Online.
i have hospital.. own by me and my wife.. partner. our personal ledger comes under what?
Hi, Motisinh!
Personal ledger comes under capital account or withdrawals.
nice sir , but still i have some difficulty.
Hi, Prajakta!
Will you please explain your difficulty?
sir , can i create a company in tally just for learning purpose? just tell me please
Hi, Sunny!
Yes, you can create it.
hello sar
Hello, Sohel!
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?
all the confusion clears away by watching and reading these kind of articles thanks a lot sir
You welcome Vijay Kumar!
Thank you for your good words. š
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
Hi, Vijay!
It can be cash as well as receipt entry.
It is totally your choice.
Brother, I want learn Tally for my business of commission agents. Please post suitable videos for me.
Hi, Himanshu!
I will post the business related videos here.
It will definitely help you.
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
For that you have to create ledger for a bank account.
You can learn how to create ledgers here –
by mistake if we have reached to contra 3 entry the how we can see entryies we have done before that
Hi, Khushboo!
You can see all the entries you have passed by pressing D>A>L from Gateway of Tally.
Then select the ledger for which you want to see the entries.
F0R PAYMENT VOUCHER HAVE YOU CREATED SEPERATE LEDGER IN NAME OF TALLY SCHOOL
For making payment, you need to create a ledger of the person you want to pay.
How to import share market Contract notes from excel or Pdf. format directly to tally.
Hi, Shrey!
You have to buy add-on for that because that facility is currently not available in Tally.
Sir , how to prepare and record journal entries in tally . Please explain the steps and procedure .
Hi, Sheril (I hope you don’t mind using your name like this)
I have created a whole post and a video.
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 ?
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.
Thanks Sir
You welcome Prasad! š
Very much useful information and explanation especially a beginner like.
Thanks and regards
Ramesh
You welcome Ramesh!
Thank you so much for your good words. š
thx but yesterday i didn’t receive the 5 and 6 tally video
Sorry and sent an email with the link to all the lessons!
I donāt find pdf for tally shortcuts please provide link for that
The PDF can be downloaded from here – https://www.tallyschool.com/tally-shortcut-keys/
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??
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.
Today’s first time I am looking into and felt possible to learn as I am basically B.Com but little time gap.Thank you.
I am glad Meena that I am able make someone do the impossible. š
it is really helping me thanks a lot
You welcome, Abhilasha!
hi,
so nice . we can easily understand about tally . thank u so much sir. good job .
Thank you Savitha for your kind words! š
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
You go it all correct Rinzin!
You surely will become good at Tally and Accounting. š
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.
Hi, B P Vasantha!
You can start with Free Tally Course Online and then move ahead with the Tally GST Course.
.
hi
sir
iam unable to see closing balance would you plz help me.
thanxs
Hi, Sameer!
If you have sold all the stock or the balance of the ledger is zero and that’s why you are not seeing the closing balance.
Sir koi practical exercise nhi milenga ka kya practice krne kelie
Hi, Sumita!
Practical Excercises milegi par wo Advanced Course me hai.
Really superb explanation with examples. keep it up
Thank you so much Jambukesh! š
nice
Thank you Susmita!
Sir,
In basic voucher entry, you have made a payment , can you explain the ledgers involved in that entry,
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.
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.
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.
HI SIR,
PLEASE HELP ME OUT OF THIS I CAN NOT OPEN TALLY IT SHOW ME YOU CAN NOT LOGGED IN AS A REMOTE USER.
Hi, Anita!
You do not have to log in as a remote user. You just have select educational mode and create a new company by selecting the Create Company option.
HI SIR,
THANK U FOR REPLY SIR, BUT I M SELECTING EDUCATIONAL MODE ONLY AND AFTER THE REINSTALL
ITS SHOWING SAME
Hi, Anita!
Please send me the screen shot of your problem and I will see into it.
its really helpful, good job
Thank you Irsath! š
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.
Hi, Shreeja!
There are practice lessons, but for that you have to enroll for the Tally Expert Course.
The reason for that is so that I can keep track of your progress and it is a bit time consuming for me as the problems are practical.
Here is the link – https://www.tallyschool.com/become-a-tally-expert
I have started new businness. capital amount bought from Jewel loan. What entries come for that in tally .Pl reply
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.
sir please tell me how to gst adjustment entry for advance payment ?
Hi, Deepesh!
It is included in the Tally Expert Course which is available here – https://www.tallyschool.com/tally-expert/
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
Hi, Manish!
Sorry for the delay in replying.
I have replied to all your 3 questions.
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?
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.
Your notes on tally is very effective.
Thanks and Regards
BIPLAB SANYAL
Thank you very much Biplab Sanyal for your good words. š
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?
Yes, Brandon!
You are right.
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?
Hi, Radhika!
You have to disable single entry mode in tally.
Go to Configuration > Voucher Entry > Single Entry Mode option – select this to NO.
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?
Hi, Hariprasadji!
The process you have described is correct. Great!
i am not getting the virsion you are showing
Hi, Pruthvi!
Basic accounting entries are same in every version of tally from the first to the latest.
For basic accounting entries, you just need to know which voucher to select for which accounting entry in tally.
To download the latest version go on the link below.
Download Tally For Free with GST + Installation ā 2019
Sir … Will I be able to work part time after I complete this certificate course in tally from Tallyschool???
Hi, Prathibha!
Yes, you will be able to work parttime but I am not guaranteeing it.
You will learn tally to work part time for a job but I am not giving you a guarantee that you will get a job.
Hi, btw great initiative.
Actually i am using tally 2019 version which is completely different from your version and could not understand the video.
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.
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.
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.
Thanks for the lesson I wish to ask if u have daily cash sales of irregular customerĀ how do we record it… is it through receipt voucher…. but also when you sale an item does automatically be deducted from the stock
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.