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How to create bank ledger/ bank account in Tally.ERP 9

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Bank account is the most important Ledger account of every business organisation.In this Tutorial we will learn How to create a bank ledger in Tally ERP 9.Create a bank account in Tally is as simple or as similar as normal ledger creation. Cash accumulated with cashier through selling of goods or service is deposited into bank account is the practice of every business. In order to record such deposit we need a ledger called bank ledger to record all bank transactions.

Before creating a bank ledger it is essential to know the types of bank accounts already grouped in Tally ERP 9.

What is Bank OCC account?

Bank OCC account meaning Bank Open Cash Credit.It is loan account offered by banking institutions against security like stock or Raw materials ,Finished Goods and Receivable Like Debtors and collateral like Land,Building,Plant & Machinery etc. A limit will be fixed for drawing based on the security given by an assessment done by officials. The limit will be fixed as a certain percentage of the value of security.For providing such service bank will charges interest as a return for the service provided. Bank OCC Account balances minus always or credit balance – Liability in Businesses Books of account.

What is Bank OD account?

Bank OD account is a current account with bank. When a customer draw over and above his available balance it  becomes over draft account. Not all current account is over draft account.but all over draft account is a current account. To over draw from your current account you must get prior approval from bank based on some eligibility criteria like credibility of business.Total turn over of business and collateral that banks demands. Bank charges interest on the amount overdrawn and on daily running balances. OD account may have Debit balance when customer deposit more cash than over drawn. Usually Over draft account holds a credit balance in the books of accounts of a business.

What is Bank account?

This is a deposit account where we deposit money and withdraw when needed. This can be a current account,saving account or a Fixed Deposit account.Normally business uses Current Account for regular deposit and withdrawal.

These are the three types of Bank Account Group Found in Tally.ERP9.

How to create a bank account in Tally.ERP 9

Let’s create Three bank account under all three group.

Example for Bank Ledger Creation in Tally

ABC Ltd Holds Three Bank Account In Three different banks.

  • State bank of India – Current  Account – Account balance as on 1-april 2016 is 100000.00 debit
  • Corporation Bank  – Bank OCC Account – Account balance as on 1st april is – 2500000.00 minus balance – credit balance
  • Bank of Baroda – Bank OD Account – Account Balance as on 1st april is 275000.00

Create all three bank accounts in Tally.

To create bank account in Tally go to

Gateway of Tally > Accounts Info > Ledger > Create

Or you can access this screen using hot keys.Press A + L + C consecutively. That is From the gateway of tally press A from your key board then L then C. The Ledger creation screen look like this image.

Ledger creation screen

Now Lets Create the current account bank Ledger/account in Tally ERP9

In our example State bank of India is the Current Account.In the Ledger creation enter the details as explained below.

  • Name: Enter the name of Bank here. For easy access of account number you can enter its account Number at the end of the name like State bank of India A/c No – 300205145121 or SBI A/c No : 300205145121. This can be done only if you wish to do so.
  • alias: Alias is the second name of the ledger, you can give some code number, account number or some other name. You can view ledger report by using this name also.
  • Under : This is the group we have discussed earlier like OCC ,OD Account. You can select this from the list. Type Bank Account here as this is a current account.

Select the bank account group from the list

Effective Date of reconciliation: If you are starting of a financial year then enter the April 1st of that Financial year. For example : April 1 st 2016. Some times this may change as if you are opening a bank account in the middle of the Financial year  say , June 3rd 2016.

Set/Alter Bank Details: Yes, You will get a bank details screen enter details as follows.

Select Your Bank :State Bank Of India,You will get a list of all banks.Select from the list.

In general Configuration There are two options

  1. Set Cheque Books: No
  2. Set Cheque Printing Configuration: No

Keep both the option No for Now,We will discuss about this option in coming tutorials.

  • A/c No: 300205145121
  • A/c Holder Name : ABC Ltd.
  • Branch Name: Kuthuparamba
  • BSR Code: 0002228
  • IFS Code: SBIN0002228Bank details screen

Press Enter Key to accept and save this screen, you will return back to the ledger creation screen again.

  • Under Mailing Details Enter the address of the bank branch
  • Country: India
  • State: Select the state from the list.Example Kerala
  • Set/alter service tax details: No. Enter only any service is providing/ receiving from bank.
  • Opening Balance : 100000 Dr Debit balance

Current account bank ledger creation

Create Bank OCC Ledger Account in Tally ERP 9

Bank OCC Ledger creation is similar to current account, only you need to take care the following.

  • Under : Bank OCC A/c
  • Opening Blance: Since OCC account ,the balance stands negetive. Company is owes to bank. So enter credit balance 2500000 Cr as shown in the below image.

Rest of all are similar to the current account creation explained above, I am not repeating those options again here.

Bank OCC Ledger creation screen

Note: Since Bank OCC & Bank OD Is loan account, only Bank OD A/c is displayed in field ‘Under’ even if you selected bank OD A/c.

Creating Bank OD Ledger In Tally ERP 9

Bank OD account creation in tally have the same process of creating Bank OCC Ledger. Just giving the image, choose Bank OD A/c in the Under field. Enter opening balance as credit balance.

Bank od ledger creation in tally erp 9

Save the screen.Hope the tutorials help.Please comment for any doubt clarifications.

Comments (1)

  • Question : Purchased Mini Truck ( fixed asset) from Tata Motors and 100 % of the amount is financied by Axis bank ( Our Bank A/C is in HDFC bank )

    Will the following come under the below mentioned accounting groups, correct me if i’m wrong

    Mini Truck – Fixed Asset
    HDFC BANK – Bank A/c
    Axis Bank Loan A/c – Loans ( Liability )
    Tata Motors – Sundry Creditors

    Journal Entry

    Mini Truck A/C
    To Tata Motors A/C Credit Purchase of a Fixed Asset so Journal Voucher

    Tata Motors A/c
    To Axis Bank Loan A/c

    Is it possible to split this one into

    HDFC BANK A/C
    TO AXIS BANK LOAN A/C Receipt Voucher

    Tata Motors A/C
    to HDFC BANK A/C Payment Voucher

    Reply

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