Business Growth App for Tally Users
An account statement, also known as a bank statement, is a condensed form of financial activities over a certain time period on a person's or business's bank account with an institution.
Such accounts have been continuously printed on one or more pieces of paper and then mailed directly to the account owner or retained at the institution's local branch for collection. However, there has been a significant shift toward electronic statements and some financial institutions now allow direct transfer into commercial banks accounting software systems such as tally ERP 9.
Recording these entries in tally based on account books, supporting vouchers in books of accounts has also been made easier through tally ERP 9. Entering the bank entries in tally ERP 9 as bank statements is the first step for creating entries. Therefore, the role of tally ERP 9 can be identified to be vital for every business since it can help in making routine statements easily.
Tally is used to register bank entries in tally ERP 9. ERP 9 is an abbreviation for Enterprise Resource.
The procedure for recording bank entries in Tally is given below.
Step 1: Create a ledger under bank accounts and save it.
Step 2: Go to the accounting vouchers menu, then choose which type of voucher you want to transmit through the bank account. To pass a bank entry in Tally, one can use one of three voucher types.
Cheque Printing: Go to the Gateway of Tally> Banking> Cheque Printing to reach the Cheque Printing screen.
The Select Bank screen appears, offering a list of banks where you have to choose accordingly: Enter after selecting 'All' or a specific Bank account for banking in tally. The selected bank's Cheque Printing screen is now shown.
(Note: By default, this screen displays a list of outstanding cheques for the month of the current date.)
To view all of the cheques, press:
Bank Reconciliation: Follow these instructions to access the Cheque Printing screen:
Deposit Slip: The Cash Receipt option in the Banks menu allows the user to generate the deposit slip for payments received via cheque/demand draft that must be deposited into the bank.
Voucher Type for Selection
Cash Deposit Bank entry in Tally.ERP 9
Cash generated through sales proceeds is usually deposited into the bank.
It's called a contra entry because this transaction does not create any result in business, and it's just an internal moving of cash from cash in hand to cash at the bank.
Contra Voucher Shortcut Key Press - F4
Bank A/c (Dr)
To Cash (Cr)
Contra Entry is used to withdraw money from a bank or deposit money into a bank. You can also print Deposit Slips to deposit cash at a bank using Contra input.
To make a contra entry in tally ERP 9, go to Tally's Gateway> Accounting Vouchers> Contra F4.
Tally Knowledge deposits ₹ 50000/- in a bank with the dimensions shown below.
Then, for contra, create an accounting voucher and click F4. So, there is now ₹ 50000/- rupees in cash which can be done using Dr Cash. Due to the deposit of cash in the bank, this tally entry will lower cash and boost your bank balance.
Cheque Payment entry in tally is used to make payments for expenses, parties, banks, financial payments, among others. Payment vouchers can also be used to withdraw cash from banks, similar to a contra entry. The default system does not allow you to enter cash ledgers in payment vouchers. To use this feature, press F-12 and check the box next to the feature to Use payment /receipt as contra Voucher.
Party A purchased some stock from Party B for Rs. 50000, and Party A will utilise the payment voucher for clearing Party B's account. So Party B has Rs.50000 in the bank. Include Party A’s Cheque number for the tally. Party A can also make payments to any party on a bill-by-bill basis.
Similarly, if you want to withdraw cash from a Payment voucher, you can do so at Dr Cash or Cr. Bank.
Also Read: How to Use GST in Tally ERP 9?
Receipt Entry is used to receive payment from third party accounts, bank interest, NEFT Credit, among others. Receipt vouchers can also be used to deposit cash in a bank; however, they do not print deposit slips like Contra Entry. In the receipt voucher, you can also select multiple transaction types. For example, if a Party directly transfers the amount in your bank via NEFT or Online transfer, you can enter the details as per Bank Transaction Nature.
ATM, Cash, Card, Cheque, ECS, E-Fund Transfer, Electronic Cheque, Electronic DD/PO, and Others are options available on the Bank Allocation screen. You must select the transaction type from the drop-down menu as per your needs.
To change the default display for the above report, click F-12: Configure or press F-12.
Show Narrations as well: Set this option to Yes to display the Client's Narration entered during the Voucher input.
Show Received from:
Assume we now have an HDFC Bank Account with specific transactions that must be reconciled.
You will be able to reconcile banks in the future quickly and will have no problems with Bank Reconciliation in Tally.
Tally ERP 9 allows you to create the following types of ledgers:
Also Read: Tax Deducted At Source For Business
The article describes the different procedures for bank entries in tally. To summarise it, create a ledger under bank accounts and save it. After this, go to the accounting vouchers menu and then pick the type of voucher you want to pass through the bank account. If you want to pass a payment voucher, for example, press F-5. Then you can choose the bank account ledger from which to pay the amount to a certain party. Deduct from the party and credit from the bank ledger and keep the voucher.
1. Can I change or correct the existing cheque forms in Tally ERP 9's bank ledger?
Tally ERP 9 does not allow you to change the existing cheque formats. You can, however, use the current formats to create a new cheque with the needed dimensions.
Send a cancelled cheque to Tally Solutions if you wish a different format to be included. After receiving the cancelled cheque, the check format will be properly adjusted in Tally.ERP 9. You can also manually configure the required cheque printing configuration.
2. What items are displayed in the Transactions with Incomplete Information category?
If you entered payment transactions using a bank ledger and a party ledger but did not include the relevant bank details, these transactions are presented in the Transactions with Incomplete Information category. Account number and IFSC code are required. You can drill down to this category, fill in the blanks for the transactions, and then move them to the Ready for sending to bank category.
3. Is a Tally NET ID required to enable e-payments?
To enable e-payments, you do not need to configure Tally NET ID. Suppose you have a DBS bank account and want to submit transactions to the bank through Tally.ERP 9, you must log in to your company using your Tally NET ID, which is registered with the bank.
4. Can I alter the party's bank details while creating the voucher?
Yes, you can update the party's bank details while creating the voucher. You can, for example, modify the IFSC code.
5. Is an internet service required to configure cheques in the bank ledger?
Yes, configuring cheques in Tally requires an online connection, ERP 9, in order to obtain the most up to the date list of banks and the matching cheque forms accordingly.
6. Describe the shortcuts for the Voucher Creation and Alteration Screen in Tally ERP 9 entry.
To create any master (ledger) on the voucher or alteration screen in Tally ERP 9, use Alt C.
Business Growth App for Tally Users