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How to enter bank Vouchers & transactions in Tally ERP9

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This post is for beginners who asks us how to enter basic transactions in tally. We get lot of queries regarding banking transactions in Tally. We are putting all questions and answers together in this post, with Examples and explanations.

How to enter Cash deposit in Bank in Tally.ERP9.

Example

01-04-2016 ABC Ltd Deposited cash into Axis bank Rs 100000

Depositing cash into bank account is a usual practise,the cash generated through sales process usually deposit into bank . This is called a contra entry because this transaction do not create any result in business,Cash deposit is an internal moving of cash from cash-in-hand to cash at bank. There is no result like profit or loss by doing this transaction.

Journal entry for cash deposit into bank

Bank Account…………………Dr                       100000                  ( Asset increases – Nominal Account rules)

To     Cash                                                             100000         ( Asset decreases- Nominal account rules)

To enter this transactions in to Tally, there is a voucher type called contra voucher, to access contra voucher,(Generally Journal voucher do not use to enter cash deposit and cash withdrawal in Tally ERP9, Many are confused about which voucher type to be used in bank deposit and withdrawal.)

Go to Gateway of Tally>Accounting Voucher>F4 Contra voucher

  • In the Contra Voucher, enter date by pressing F2 ,
  • In ‘Account’ Field’:  Select the bank in which money is deposited :Axis bank , Tip : The account in which the value is increasing should be slected at top of voucher in single entry mode.
  • Select ‘ Cash’ in particulars field Tip : The decreasing account should be selected under particulars.

Contra voucher for depositing cash into bank

Press enter ,fill the bank allocation screen as follows.

  • Received from : Cashier
  • Transaction type : Cash
  • Amount: Automatically selected.
  • Denomination: 1000 x 100
  • Branch: Mumbai

Bank allocation

enter narration: Being cash deposited in axis bank account, Here is the final voucher screen.

Bank deposit entry in tally erp9Bank deposit voucher in double entry mode

You can also enter this contra voucher using double entry mode by Pressing F12 from voucher entry screen and Set No for option Use single entry mode for pymt/rcpt/contra.

Use single entry mode for pymt/rcpt/contra.

bank deposit voucher in double entry mode

Cash Withdrawals in from Bank transactions in Tally ERP 9

Example:

02-04-2016 ABC Ltd Withdrawn cash from Axis bank Rs 50000 vide cheque No 215416

When cash is withdrawn from bank to business, effectively there is no change in business result, this is also a cash movement transaction from bank to business.

The journal entry for cash withdrawal is

Cash A/c ……………………….Dr              50000                          ( Apply rule real account asset increases)

To Axis bank                                                     50000  ( Apply rule real account asset decreases)

Cash Withdrawal entry in Tally ERP9

Cash withdrawal is also a contra entry, hence entered in contra voucher

Go to Gateway of Tally> Accounting Voucher> F4 Contra

Fill the voucher as follows

  • Account : Cash
  • Particulars : Axis bank
  • Amount : 50000

In bank allocation screen.

  • Favouring name :Self
  • Transaction type:  Cheque
  • Instrument No: 215416
  • Instrument date : Enter date on cheque, it may differ from transaction date.

Enter narration: Being cash withdrawn by Mr.vipin

Being cash withdrawn from bank

Voucher entry for cheque Issued or Given to a supplier( Bank payment voucher) in Tally.ERP9.

Example:

02-04-2016 ABC Ltd Issues cheque No: 214565 of ICICI Bank  of Rs 5000 to supplier  A

When cheque is issued to a supplier, We enter the transactions immediately in Tally. When cheque is issued to supplier or a person The bank balance & Liability decreases.

Journal Entry for Cheque issued to supplier

Supplier A…………………….Dr              5000                          ( Apply personal account rule debit the receiver)

To ICICI Bank                                            5000       ( Apply Real account rule Credit what goes out)

Enter Cheque issue transaction in Tally ERP9

Cheque issue transaction is entered in Payment voucher type in tally.

Go to Gateway of Tally>Accounting Voucher> Payment

You can also use a separate voucher type for entering bank payments only

Enter the details in bank payment voucher as follows.

  • Account: ICICI Bank
  • Particulars : Supplier A
  • Amount: 5000

In bank allocation screen

  • Favouring name : Supplier A
  • Transaction Type: Cheque
  • Amount: 5000
  • Inst No: 214565
  • Inst Date: Can be any date on the cheque , need not be same as transaction date.
  • Cross Using: A/c Payee if cheque is crossed.

Cheque issue or bank payment voucher in tally erp9

Press Enter and save.

Entry for cheque deposited in bank received from a customer or  bank receipt entry.

Example:

 CUSTOMER E has given SBI cheque No: 984715 dtd 31-05-2016 of Rs 8000 towards his settlement,Our company ABC Ltd deposit the same in Axis bank Ltd 

When We receive a cheque from customer, We deposit the cheque into our bank for collection on the date of cheque. If you received a post date cheque it is advised  to enter the receipt on the date of deposit for a better credit management.

Journal Entry When a cheque is received from customer

 

Axis Bank A/c …………………….Dr                       8000                   ( Apply real account rule,Asset increases)

To Customer E     …………………………….Cr             8000         (Apply personal account  Credit the giver)

How to enter Bank receipt voucher or cheque deposit entry in Tally ERP 9

In Tally When a cheque is deposited in our bank, The Voucher type to be used is Receipt Voucher.

Go to Gateway of Tally> Accounting Voucher> F6 Receipt

Enter details as follows

  • Account : Axis Bank
  • Particulars: CUSTOMER E

In bank allocation screen

  • Received from : CUSTOMER E
  • Transaction type: Cheque/DD

Bank allocation screen

The Cheque Deposit entry screen look like below

Bank receipt voucher

Bank to bank transfer entry

Example:

ABC LTD has three bank account ,AXIS Bank, State bank of India & ICICI Bank,

  • On 31-05-2016 Want to transfer 100000 from Axis bank to State bank of India via Cheque No 124566 &
  • 50000 from ICICI Bank to Axis Bank through NEFT

Since these transactions are just movement of fund from one bank account, there is no business result. hence  falls under contra entry.

Journal Entry

State bank of India ……………….Dr                 100000.00                     ( Apply real account, asset increases)

To Axis bank……………………………Cr                       100000.00  ( Apply real account, asset decreases)

(Being amount transferred from axis bank to state bank of India via Cheque No 124566)

Axis bank …………………………..Dr                   50000.00                     ( Apply real account, asset increases)

To ICICI Bank………………………….Cr                          50000.00 ( Apply real account, asset decreases)

(Being amount transferred from Axis bank to ICICI Bank through NEFT)

Bank to bank transfer transaction voucher  in Tally.ERP 9

Go to Gateway of Tally> Accounting Voucher> F4 Contra

Enter details as follows

  • Account : State Bank of India
  • Particulars: Axis bank

In bank allocation screen

  • Favoring : ABC Ltd
  • Transaction type: Cheque
  • Inst No: 124566

Bank allocation screen of Bank to bank transfer through cheque

Screen shot of bank to bank transfer through cheque  voucher in tally

Bank to bank transfer through cheque

Bank to bank transfer through NEFT/RTGS

Go to Gateway of Tally> Accounting Voucher> F4 Contra

Enter details as follows

  • Account : Axis Bank
  • Particulars: ICICI Bank

In bank allocation screen

  • Favoring : ABC Ltd
  • Transaction type: Inter bank transfer
  • A/c No : Enter Account No of ICICI Bank
  • Inst No: 124566
  • IFSC : ICIC0000021
  • Bank :Axis bank
  • Transfer Mode : NEFT

Bank allocation for inter bank transfer for neft rtgs

Bank transfer voucher from icici to axis bank,

Bank entry when customer Directly deposited cash/cheque/Rtgs/NEFT in bank account

Example:

Customer B directly deposited 5000 cash into axis bank account 

When customer deposit cash into our bank account, Bank balance increases,and customer balance reduces, this is a bank receipt entry.

Journal Entry

Axis bank a/c………………Dr        5000

To     Customer B      ……………..              5000

How to enter customer deposited cash in bank account in Tally

Go to

Gateway of Tally> Accounting Voucher> F6 Receipt

Account : Axis bank

Particulars : Customer A

Enter bank allocation details in accordance with nature of transactions and the final voucher for customer deposit cash into our bank account.

customer-directly-deposited-in-bank-account

How to Enter Fixed Deposit In Tally ERP9

ABC Ltd created a Fixed deposit of 100000 in HDFC Bank by issuing a cheque of State bank of India Cheque no 789456   

When you create a fixed account in a bank, you have to open a separate account in Tally, In our case We are creating an account HDFC-FD in Tally under Group Deposits ( Asset).This is also a fund movement, but for a long term, and will have some affect on business,When deposit become mature, Some interest will be given and that can be treated as an income /profit. Hence this is a bank payment entry.

Gateway of Tally>Accounting Info>Ledger >Create 

Journal Entry

HDFC -FD …………………Dr                   100000                     ( asset increases)

To State bank of India                                  100000    (asset decreases)

Fixed Deposit Voucher Entry In Tally ERP 9

Go to Gateway of Tally >Accounting Voucher > F5 Payment

Account : State bank of India

Particulars:  HDFC -FD

Enter bank allocation screen

HDFC Bank FD account

Tally Voucher for  DD Purchase

Example

  • DD Taken for Electricity Board Application Rs 1000 + 25 DD commission through cash
  • DD Taken for issuing  DSIIDC For Lease Premium 1000000 + DD Commission 2500  through a cheque if Axis bank 1025000

DD Taken through cash

In the first cash, there is no relation to bank account hence no bank related entry to be passed in tally instead a payment voucher by debiting

Rates&Taxes…………………Dr  1000

Bank charges………………..Dr      25

To Cash         ……………                    1025

Create a payment voucher as usual for this transaction

DD Taken through cheque

In the second case, the DD Is taken by issuing a cheque hence the entry should be as follows.

Lease Rent …………………..Dr       1000000

Bank charges………………..Dr             2500

To Axis bank …………….                          1025000

DD Taken through cheque

How to enter bank transaction?Cash Withdrawn for Personal use

Example

Cash Drawn 10000 by Mr Saju, Managing Director  for Personal use from Axis bank 

When cash is withdrawn for personal use , it should be accounted in Directors loan account in case of Company and Capital Account in case of partnership or sole proprietorship.

Procedure When cash is withdrawn for director’s personal use

Journal Entry: 

You have to pass two entry for this.

Go to Gateway of Tally> Accounting Voucher> F4 Contra

Cash A/c ……………Dr        10000

To Axis bank……….                  10000

( being cash withdrawn for director saju personal use)

Go to Gateway of Tally> Accounting Voucher> F5 Payment

Saju’s Loan A/c …………Dr 10000

To Cash        ……..                    10000

You might ask why cannot, do it with a single entry by debiting loan account and crediting bank account? There is no issue doing that, but exact route of cash flow is first method.

Procedure When cash is withdrawn through cheque for director’s personal use

In this case we can do this with a single entry.

Journal Entry

Saju Loan A/c……………….Dr   10000

To Axis bank                                   10000

In this method there is no cash flow in business, fund is moving directly to director bank account.

 

Go to Gateway of Tally> Accounting Voucher> F5  Payment

Cash withdrawn for personal use

Hope these transactions example help beginners,, apart from above I have some questions which can be answered in few words.

bank account is a real accounts or personal accounts?

As far a business is concerned bank account is a real account, and we are placing bank account in balance sheet under Asset.Hence bank account is a real account. But you can treat it as personal account only for the purpose of journalising for simplifying journalising.

How to do  bank charges entry in tally?

You can Do it by debiting BANK CHARGES

Crediting BANK ACCOUNT

Gateway of Tally> Accounting Voucher >F5 Payment

Account : Bank account ( Axis bank )

Particulars : Bank Charges

Enter amount & narrations and save .

Hope i have covered usual bank transactions and its implementation in tally, If you have any specific transactions related to youe business, please ask through our comment form, we will answer as soon as possible.

Comments (4)

  • how to do bank interest entrys in tally in relation to Bank OD & TL(term loan)

    Reply
    • In payment voucher, Make a bank entry debiting bank charges and crediting bank od a/c. In same way you can enter term loan by debiting bank interest and crediting term loan a/c.

      Reply
  • Dear,

    How will check ON account entry in tally?

    Can you please tell me

    Reply
  • Dear all
    what is journal entris for tax audit?
    and how many entries will be pass in tally with under head describe?

    1. audit fees Rs. 4000/-
    2. TDS cut Rs. 400/-
    3. actual cheque received from audit (3600=4000-400)
    4. after that cheque deposited into Bank Rs. 3600/-

    Reply

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