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Bank reconciliation in Tally ERP9 – Manual reconciliation

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For making effective financial decisions, business should know their exact fund positions.To know fund position, knowing bank position is very important. While analyzing bank position, the finance manager should check bank reconciliation statement,apart from bank ledger & passbook. There might be differences with bank statement and the bank ledger kept at company. Bank reconciliation in Tally ERP9 allows you to find out the differences and helps to agree both the accounts.

Recommend reading :How to prepare bank reconciliation

You have to find out the reasons of difference and make both account tallied. For making a better financial planning one should know  the following

  • Cheques which are deposited still to be collected by bank.
  • cheques which are issued to parties still to be submitted to bank and debited our account.

How to reconcile a bank statement in tally?

For bank reconciliation in Tally ERP9, we need both the ledgers. That is bank ledger in companies book and bank statement from bank. Take a printout or a soft copy in your computer.

Let’s consider the following example

We are reconciling bank on 31-07-2015

BANK STATEMENT IN COMPANIES BOOKS OF ACCOUNT        01-07-2015 to 31-07-2015

Bank ledger in company's book

BANK STATEMENT OF COMPANY  01-07-2015 to 31-07-2015.

Bank statement of company

Now we have the tool for Bank Reconciliation in Tally ERP9. Let’s do this step by step.

If you are more like to watch rather than reading then we have a video, check it out.

Step1 :  analyse the bank statement with bank ledger

The first step is to cross check both the ledgers.Ledger with company and statement of bank.

The debit side of bank statement should be checked with the credit side of bank ledger in company’s book.

And credit side of bank statement with the debit side of the bank ledger in companies books .

On analysing the both the side we can find the following omissions

Entry found in pass book but not in bank ledger

  1. Intercity charges Rs 50
  2. ATM or sms charges Rs 15

Entry found in bank ledger but not in bank statement

  1. Payment to Fame advertising Rs 9000
  2. Cheques received from ITC Ltd Rs 15000

Step2: Enter the transactions which are in pass book but not is bank ledger of company.

bank-charges-entry

bank interest entry

Step3: Bank Reconciliation in Tally ERP9

To reconcile bank go to

Gateway of Tally>Banking>Bank Reconciliation

Select the bank from the list, the screen appearing in front of you is bank reconciliation

Or we have another option to access bank reconciliation

Gateway of Tally>Account Book>Ledger

Select the bank ledger you want to reconcile.Inside bank ledger, on the right there is a button reconcile.Click on reconcile.

Reconcile button

Choose any one of the above options to choose bank reconcilation screen. The reconciliation screen looks like below image.

Bank reconciliation screen

In the screen you will find a column ‘Bank date’.In that column enter the date in which the particular transactions appeared in bank statement as shown below.

bank reconciled with bank date

Press Enter Key to save the screen.

Now select the bank again from

Gateway of Tally>Banking>Bank Reconciliation

You will get a reconciled statement as in below image

This how BANK RECONCILIATION IN TALLY ERP9 Looks like.b

Bank reconciliation in Tally ERP9

Check the balances

Bank balance as per Company book: 69830

Amount not reflected in banks are:

Debit 15000.00 (Cheque deposited for collection of ITC Ltd)

Credit: 9000 (check issued to fame advertising).

Balance as per Bank: 63830.00

From balance of company book, showing the reason for difference we arrived balance of bank book. On checking this statement a finance manager can understand that a 6000 more fund will be available soon.That is 15000 -9000 = 6000 and he can plan accordingly.

How to make changes in Bank reconciliation?

We can make changes in bank reconciliation if required, to do this go to

Gateway of Tally>Banking>Bank Reconciliation

Select the bank

Now press F12 Configure

In the configuration screen, enable ‘Show reconciled transaction also’ by giving Yes in the box.

Bank reconciliation configuration in tally ERP9

Press enter and save.You will get a screen with all vouchers including reconciled voucher, make necessary changes and save again.

Edit bank reconciliation in Tally ERP9

Hope you got an idea how to do bank reconciliation in Tally ERP9. If you like our post consider subscribing our blog for regular updates. also checkout our YouTube channel.

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