Journal entries in Tally are the most widely used accounting entries after payment and receipt entries.
Journal entries are used when there is NO involvement of cash or bank account in an accounting entry. Otherwise it would be payment or receipt entry.
Generally, journal entries are created for closing books of accounts at the end of the year or for adjusting entries.
Journal entries are an important ingredient of accounting in general as well as in Tally.
You can imagine any entry that does NOT include the following accounts and it will be a journal entry.
- Cash Account
- Bank Account
For example, if we take an entry of depreciation. As it is a non-cash entry and it does not involve bank, sales and purchase account as well, it will be journal entry.
In this post, I will explain you 4 major journal entries which are used in day to day transactions. They are:
- Depreciation entry
- Accrued Income entry
- Entry for Purchase on Credit
- Entry for Sales on Credit
So, read the whole post to know everything about the journal entry and I am sure that at the end of this post you will surely know everything about journal entries in Tally.
How to create Journal Entries in Tally
For creating journal entries in Tally, you have to select Journal Voucher from the available vouchers in Tally.
From Gateway of Tally, you have to select Accounting Vouchers.
Then from the green right hand sidebar, select Journal or press F7 for going into the journal voucher in Tally as shown in the picture.
Now, we will create different journal entries in Tally as I have discussed above in the post one by one.
I am sure you are going to enjoy it.
Journal Entry for Depreciation in Tally
Before we create journal entry for depreciation, we need to know the accounting entry for it.
Let’s take an example of an asset called Furniture. We already have Furniture worth Rs.10,000 and we want to apply depreciation of Rs.1,000.
The accounting entry will be:
Depreciation Account Debit by Rs.1,000 and Furniture Account Credit by Rs.1,000.
If you don’t know how to create ledger for furniture or depreciation, you can go through this post in which I have explained in detail on how you can create ledgers in Tally.
The entry for depreciation as I have shown in the above example will be as shown in the picture below.

As you can see in the top left corner, it is journal entry. The value of furniture has been decreased from Rs.10,000 to Rs.9,000 because depreciation has been charged on the furniture.
Now, let’s look at the second journal entry in Tally which is about accrued income.
Journal Entry for Accrued Income in Tally
Accrued income simply means that you are eligible for the income but it is not received by you. Let me explain it you by giving an example which we will further use in the journal entry.
For example, I have interest income from a person named Amit of Rs.1,000 but I have not received it till now. Therefore it will be an accrued income for me.
Journal entry for the above transaction will be as under:
Amit’s Account Debit by Rs.1,000 and Accrued Interest Income will be Credit by Rs.1,000.
Please note that Amit can be my debtor or a person to whom I have given a loan and Accrued Interest Income will be my income.
Journal entry in Tally for the above transaction will be as shown in the picture below.

This is how the journal entry for accrued interest in Tally is done. If you want to create a journal entry for accrued expenses in Tally, exact opposite of the above entry will be done.
Entry for accrued expense will be Accrued Expenses Debit and Amit’s Account will be Credit. Easy, isn’t it?
Let’s move on to the next journal entry of Purchase on Credit.
Journal Entry for Purchase on Credit in Tally
When we purchase something on credit, you can even create a Purchase Voucher in Tally. But for this example, we will create a journal entry.
Did you guessed the journal entry for credit purchase? It’s easy.
For example, if I purchased from Amit on credit goods worth Rs.5,000. The journal entry will for this transaction will be as under.
Purchase Account Debit by Rs.5,000 and Amit’s Account Credit by Rs.5,000.
Please note that in this case, Amit will be my creditor as I am purchasing from him on credit.
Journal entry in Tally for the above transaction will be as shown in the picture below.

This is a simple purchase entry. If you have purchased different items and want to include it in the entry, that is also possible.
But for the sake of simplicity, I have not included it in the entry.
Now, let’s move on to the last journal entry which is Sales on Credit.
Journal Entry for Sales on Credit in Tally
As I said while creating journal entry for purchase, it can also be created in Purchase Voucher. Similarly Sales entry can also created with the help of a Sales Voucher.
But for this post, I will be creating a simple journal entry for sales in Tally. Let’s take the example as usual.
For example, I sold some goods worth Rs.6,000 to Amit. Guessed the journal entry?
Let me give you a hint. It will be exactly opposite of the journal entry for purchase on credit which you just read above.
Okay, let me tell you. It will as under.
Amit’s Account will be Debit by Rs.6,000 and Sales will be Credit by Rs.6,000.
In this case, Amit will be my debtor as I am selling goods to him.
Now let’s look at the actual journal entry in Tally. Journal entry in Tally for the above transaction will be as shown in the picture below.

Again this is a simple sales entry and obviously you can include stock items, taxes or other expenses if you want.
I have for the sake of simplicity not included here.
These were the major journal entries in Tally you can create easily. Of course, there will be many more journal entries, but these were the major ones.
If you learn all four of them, you are good to go for your daily accounting transactions in a normal business.
At the end…
Journal entries are an inevitable part of accounting.
Just like water is an important resource for the survival of human beings, journal entries are that much important for accounting.
If you can remember, the first time when we learn accounting in school in 11th standard (at least, I learned it in 11th), first kind of entry we are taught is a journal entry.
And there is a reason for that. Because they are important. They are the foundation of double entry system of accounting.
If you have any difficulty or suggestion, please comment down below and I’ll address each of them.
found your simplified way of explaining very useful
I am afraid that i too become fan of tally and you aswell
Hi, ESR Sai!
I am happy that you liked the way of explaining.
I will create more posts and videos like this.
Thanx bro .. I’ve learnd so much frm here
It helpd me alot
You welcome, Aadesh!
I am glad that it helped you.
Rishith!Really simple to digest.liked it.
Expecting more typical like transactions with taxes(VAT/CST),Freight.
I want to learn fast as joining in an office.
Myself CMA fianlist.
Thank you
Hi, Surender!
I am glad that you understood it easily. 🙂
For taxation part and other advanced levels, you have to buy DVD.
http://www.tallyschool.com/course
Thank you so much Sir for your simple examples….
Plz give us examples for VAT entries and also plz post few difficult entries to learn more….
Hi, Ranjeetha!
Thank you so much for your appreciation.
For taxation part, you have to purchase the Tally DVD Course.
And yes, I will post some difficult examples as well. 🙂
Hi Rishit Shah!
I have been looking for this answer since long. Today I came across your posting on journal entry. I have grasped the knowledge of Journal entry today. Thanks to you. You are genius.
Thank you so much Jangi Lal Sharma for your good words.
I am no genius.
In fact, I am just like you.
I have just shared my knowledge. 🙂
Hi..
I want other types of JV entries, like Transport bill entry,
Machine Repair or service, CA Auditing bill
Pl expalin me at the earliest
Hi, Minakshi!
The entries that I have explained covers all the entries that you have said.
You just have to know a little bit of basic accounting to pass the entries.
By the way, the entries you have written are NOT journal entries.
Hi,
let’s say I purchase a pen for personal use and not for resale from a random store in cash
pen price: 10 rs
vat: 1.7 rs
total paid by me 11.7 rs
how do i enter this in tally 9
Pen A/c Dr. 10
VAT A/c Dr. 1.7
To Cash A/c Cr. 11.7
Hope this helps Safeer!
it is not pen a/c
but debit Printing & stationery a/c
If it is for personal USE Debit Current or Capital A/c or Loan A/c
Rishit, hope you will correct the mistake
Hi, Mr Sathar!
I considered Pen as an Asset and not an Expense.
That’s the reason why I debited Pen A/c.
Anyways, your view is also correct! 🙂
Hello Rishit SHAH
If i receive professional services than what entry we make .
secondly if i give professional services than what entry me make in which vouucher.
Thank you very much
Hi, Ashish!
When you receive professional services you will pass payment entry and when you give professional services, you will make sales entry as now it will be sales for you.
this was awesome plz teach me how to use tally in any company
Hi, Shreya!
You can actually use Tally in any company.
You just need the software. 🙂
Thank you , rishit shah
You welcome, Gunwant! 🙂
Sir,
I want to know some things, such as,
1) when i purchased the goods, vat, c.s.t, service tax, c/excise. etc. may be charges with the taxable amt. similarly, when i sales the goods those are same charged with the taxable amt. what is the journal entries ?
2) when i am paid any kind of tax at first i show the payable of tax, and then paid the tax, what is the journal entries? and in the time of salary at first i show the payable then i paid why ? and what is the journal entries ? similarly, at the time of other cash exp.i show only paid not payable why? and what is the journal entries ? Pls. send the answar at my user ID which is mention below.
Thanking you,
Sudip Kr. Nandy
Su
Hi, Sudip!
For taxation purposes you have to buy the DVD Course.
Here is the link – http://www.tallyschool.com/tallyschool-tally-courses/
Sir,
I confuse that in which under i have to put depreciation in tally? like capital under capital account ,then depreciation under?
Plz reply and remove my problem
thanking u sir
Regard
Gulshan Kumar
Hi, Gulshan Kumar!
Depreciation will go under the head Indirect Expenses.
Now a days im doing a job and all my work comes under tally. So, ur posts and blogs helps me to my work .
Thanks buddy, Keep updating us.
Hi, Dev!
Thank you for your kind and good words.
I will be updating you all! 🙂
Pleasure is all mine sir,
sir ,it would give me more knowledge about entries if you please put some real bank statements. Coz im facing little bit of problem while bank entries.
Hi bro .. can u tell how to differentiate direct and indirect expense and income?
Hi, Rajesh!
It is a good question.
I will create a post on this. Thanks for asking.
When i give an advance(Cash) to an employee for incurring certain expenses then i shall enter that transaction as Payment. But if later he returns me some amount out of what i gave him and gives rest expense details, then the cash i received back from him now will be in receipt or journal? Please explain this entire situation with entries too that i will do in tally and in which voucher type.
Hi, Vaani!
For this type of situation, I have created another post.
Have a look at it – http://www.tallyschool.com/memorandum-and-post-dated-vouchers-in-tally/
Hi bro, I learnt alot from your posts. keep posting & helping us like this.
Hi, Shubham!
Thank you for your good words. 🙂
sir please send mi pertol exp.entry in the taken of journal entry
Hi, Poonam!
The expenditure entry is same as any other expenditure.
Have a look at the journal entry or payment entry on TallySchool.
Is purchase voucher can be done instead of journal entries?
is it right or wrong!
Hi, Mohammed!
You can definitely do purchase voucher instead of journal entries.
It is not at all wrong. Just another way of passing entries.
Dear Rishit,
I liked the way you’ve explained the concept with screen shot.
But, if you would have included the tax concept into it, then would seems to be much better.
Thanks and Regards,
Kartik Salecha
Hi, Kartik!
I have explained whole of the taxation concept on the DVD Course.
So it is not on TallySchool.
My question is that if i purchased one too more items than tracking no is used in serial or not.
Hi, Bishal!
There is a voucher number which you can enter while passing the entry for the vouchers and then you can track them.
hai brother .. I’ve learnd so much frm here
It helpd me alot
Thank you so much Jenish! I am happy bro!
i really happy for this kind knowledge…
I am glad that you felt happiness by reading this. 🙂
i want to learn tally from basically pls teach me one by one entry in tally
Hi, Swamy!
Start from the Free Tally Course Online in which I have explained everything step by step. You’ll really find it awesome.
Y we should maintain a journal entry in a office
Hi, Preethi!
You cannot maintain a journal entry in office.
It is called a journal account and it is necessary because some accounting entries in Tally requires journal entries to be created.
Sir , sales return and purchase return kis voucher me jayegi
Hi, Chetram!
Sales Return – Credit note voucher
Purchase Return – Debit note voucher
Link – https://www.tallyschool.com/create-debit-and-credit-note-in-tally/
I need to adjust an amount without making payment to a party. The amount should decrease from the party’s ledger So, which Option should I do
Hi, Shafeeque!
You can adjust it by creating a journal entry but you have to show it like you have taken a loan from that person.
The entry will be:
Party a/c dr
To Loan to party a/c
Dear brother sales on credit is it journal ledger or sales ledger? Plz clarify
Hi, Sameer!
You can use both Journal and Sales ledger for making sales on credit entry.
But, I recommend you use sales ledger for better clarity.
Hii , This is Divya
AM a engineering student. i have learnt more things for you
Thank you
You welcome, Divya!