Basic Accounting Entries in Tally

Basic Accounting Entries in Tally

Basic accounting entries require you to understand basic accounting vouchers in Tally. In Tally there are four basic accounting vouchers:

· Contra Entry

· Payment Entry

· Receipt Entry

· Journal Entry

Contra Entry

When there are just two accounts namely 1) Cash Account and 2) Bank Account. An accounting entry which is required to create is Contra Entry. For example, you want to deposit Rs. 500 and Rs. 1,000 notes in the bank, the entry required for the above would be a contra entry. On the other if you want to withdraw Rs. 2,000 notes, it would again be a contra entry. You can even enter the bank details in new version of Tally.ERP 9 like cheque no., number of notes deposited or withdrawn, branch name etc.

Payment Entry

It is basically an entry for paying something. For example, if you want to pay salary to someone working for you, it will be payment entry or if you want to pay for an expense such as maintenance expenses, you have to pass a payment entry. You can pay through your bank account or via cash as per you needs.

Receipt Entry

It is the exact opposite of a payment entry. It is passed when you receive cash or an amount in your bank account. For example, if you receive cash for selling things, it will be a receipt entry or you are paid your salary in your bank account for working for someone; it will again be a receipt entry.

Journal Entry

It is an accounting entry which is required to be created when there is no cash or bank account involved. So, basically it is an entry for transactions such as outstanding payments or receipts, accounting adjustments or it can be closing entries at the end of the accounting year. In simple words, whenever there is no cash account or bank account involved, it is a journal entry. In ancient times, there used to be a journal book specifically for this kind of accounting entries and hence the name journal entry is given. Their respective Tally shortcuts are:

F4 – Contra Entry

F5 – Payment Entry

F6 – Receipt Entry

F7 – Journal Entry

In simple words, these are called basic accounting entries in Tally. When you go to Accounting Vouchers from Gateway of Tally, you can pass the above vouchers. Along with it you can also create some of the advanced vouchers like Debit Note, Reverse Journal, Memos and so on.

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