HomeAccounting voucher

Compound voucher entry & narration for each entry in tally

Before knowing this you should know what are a simple journal entry and a compound journal entry.

What is a simple journal entry: An entry in a journal which contains only one debit item and one credit item is called a simple journal entry.

For example:

 Particulars                                                                            Amount                               Amount

CASH  A/C ……………………………….Dr                            15000.00

To X’S CAPITAL ……………………………..                                                            15000.00

(Capital brought BY X)

What is a compound journal entry?

More than one debit and one credit is necessary in a transaction, such entry is called compound journal entry.

For example:

Journalize the following transactions

  1. Salary paid Rs 1000.00
  2. Freight paid  Rs 2300.00
  3. Conveyance paid  Rs 1200.00

If the above entries are journalized as usual, simple journal entry the journal will be

Particulars                                                                                                 Amount                     Amount

Salary ………………………………………………………….Dr                        1000.00

To, cash…………………………………………                                                                             1000.00

(Salary Paid)

Freight ………………………………………………………..Dr                         2300.00

To, cash…………………………………………                                                                               2300.00

(Freight paid)

Conveyance ………………………………………………..Dr                            1200.00

To, cash…………………………………………                                                                                 2300.00

(Conveyance paid)

Make the example to compound journal entry

In the three journals, the credit entries are same, I.e., cash account, To make a compound journal Total all credit amount and put a single credit  and debit should be the same  keeping  three debit ledger unchanged( salary, freight, conveyance)

 

The compound journal entry is as below.

Particulars                                                                                                 Amount                     Amount

Salary ………………………………………………………….Dr                     1000.00

Freight ………………………………………………………..Dr                      2300.00

Conveyance ………………………………………………..Dr                       1200.00

To, cash…………………………………………                                                                                   5500

(Salary, freight, conveyance paid)

Instead making separate entries for each transaction, the common factor in the transactions are clubbed and made a single entry.

How to enter compound entry in tally

Journalise the following transactions

  1. Salary paid Rs 1000.00
  2. Freight paid  Rs 2300.00
  3. Conveyance paid  Rs 1200.00

Go to

Gateway of tally>>Accounting vouchers

Access payment voucher if you are landed in a different voucher by Pressing F5 key or Payment button

Select cash in Account at top of the voucher

cash-credit-entry-in-payment-voucher

Under particulars select the first ledger salary and enter the amount Rs 1000.00

salary entry

Now press enter to move on to the next line where you can select next ledger, (freight )then amount( 2300) again press enter  select conveyance ledger , then amount (Rs 1200).

Now press enter and type narration in the narration field. The final screen will be as below

final screen

Now save the screen by pressing enter or use Ctrl+A

Narration for each entry

In the above example we have entered a common narration for all three vouchers, but tally provide a handy feature of entering narration for each voucher if needed.

To do this, you must edit voucher type, in the above example, payment is the voucher type

Go to

Accounts info>>Voucher type>>Alter>>

Select payment from the list

Press enter, now you are in voucher type alteration screen

Under General Tab find narration for each entry and set this Yes

voucher-type-alteration

Now press enter or use Ctrl+A and save the screen

The settings of narration for each entry are ready. Try to enter the voucher again; you can see an additional field of narration while entering data.

narration-for-each-entry-in-tally

W have created a video tutorial on how to activate narration for each entry, you can subscribe our tally video tutorial here

Comments (1)

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »
Close
error: Content is protected !!