Tally Software has replaced the conventional book ledger system since it provides cost-effective, and efficient solutions to record day-to-day transactions. Tally is utilised in several financial fields such as auditors, banks, chartered accountants, small and medium-sized enterprises. It also helps maintain the cash flow statement ensuring reminders for debt collection, thus helping in saving in payment of interest. It assists in identifying receivable payment defaulters and doubtful debtors at an early stage.
Tally is an effective and integrated business accounting software that operates in multiple languages in the most powerful manner working parallelly with other business functions. Tally creates invoices with single and multiple items in different currencies. Tally ERP 9 provides pre-configured banking features required to account for payment transactions. It also provides cheque printing options in the banking menu, enabling you to print and re-print the cheques from a single screen. It also enables you to update the cheque details and keep the accounting of the pending cheques to be printed by different banks. In this article, let's go into the details of how to write cheque for self.
Did you know?
The Self-cheque withdrawal limit in the State Bank of India is ₹1 lakh.
What is self-cheque?
A self-cheque is a cheque drawn in your name, where the drawer and payee is the same person. The word "self" is written in the space created for the drawee's name on the cheques issued by the bank in respect of your account present with the same bank. The cash can be withdrawn only from the drawer's bank account.
A self-cheque is utilised when you want to withdraw cash from the bank account. One should be careful while creating a self-cheque, as losing such a cheque can lead to financial losses if it reaches the wrong hands. Such a person can easily withdraw the cash without verifying their identity at the cash counter in your bank's branch. Hence, it should be used wisely.
Difference between Self-cheque and other types of cheques
The other types of cheques are written to make payments to creditors, suppliers, and other business service providers. Usually, cash can't be withdrawn through these cheques. However, the self cheque is issued in the drawer's name to withdraw the cash from his/her account. The other cheques, such as account payee cheques, post-dated cheques, cancelled cheques, crossed cheques, and many others, are directed towards paying outside parties.
How to Print a Self Cheque in Tally?
A Self Cheque is a cheque created by the drawer to themselves. Self cheque withdrawal is presented for collecting cash at the banks on which it is created.
How to fill a self cheque
1: For printing a self cheque in Tally, the settings of the cheque printing needs to be updated.
2: Enter Self as the name of favouring party in the Bank Allocation screen for passing a contra entry.
3. Open the Gateway of Tally > Accounting Vouchers
4. Click F4 on the keyboard to pass the contra entry.
5. Credit the bank account under which self cheque is created.
6. Fill the amount in the credit column
7. To go to the Bank Allocations, click on enter on the entry created.
8. Select self as the Favouring name.
9. Click Ctrl-A to accept and then return to the Accounting Voucher Creation screen.
10. Debit the cash A/c with the amount for which self withdrawal cheque is created.
11. Click Enter to return to the cheque printing screen.
12. You will be able to view the self cheque sample.
13. Click Enter to get self cheque withdrawal done successfully.
The above steps are the last steps that need to be followed for successfully printing the self cheque. But before these steps, following configuration should be undertaken in Tally, enabling the printing of self cheque.
Also Read: All About Creating A Company In Tally.ERP 9
Printing cheques in the Tally
Tally provides quick solutions to routine aspects related to the business. One of them is printing cheques required to withdraw and make payment to creditors before their due date to avoid the implication of payment of interest. Let's understand the procedure of printing cheques in the Tally, which is divided into three parts:
- Accessing Cheque Printing
- Printing Cheques or Generating printing reports
- Configuration of information of cheques printed and to be printed
1. Accessing the option of cheque printing
- Select the Gateway of Tally>Banking>Cheque Printing: You can access the list of banks that appear on the select Bank screen.
- You can select All the banks or a particular bank account from the list of banks.
- Press Enter, where you will see a page displaying the different details of the pending cheques such as instrument number, favouring name, date, amount and their printing status.
- You can check all the cheques by pressing F6 to display the cheques on your screen.
- The bank which has not been configured for cheque printing settings will not be reflected in the cheque printing screen.
- Thus, it is essential to configure the bank for cheque printing through ledger alteration.
2. Printing of Cheques or Generating printing reports
The Cheque Printing screen can be altered for presentation by selecting the following options:
- You can choose the required row from the list to open the voucher in alteration mode.
- You can also change the period by clicking F2.
- F4 allows to change and select that bank from the list available.
- The cheque details can be edited through F7, which allows altering the Instrument No., Favouring Bank, and date of the Instrument.
- The cheque printing screen can be filtered through F12 that changes range based on Bank Date, Favouring Name, Date, Amount, Instrument Number, Ledgers, Narrations, Transaction type, Remarks, etc.
3. Configuration of information of cheques printed and to be printed
Through F12, the configuration can be done regarding the details you want to view on the cheque printing screen. Some of those details are given as follows:
- Obtaining confirmation before printing each cheque
- Showing payment favouring party name
- Inclusion of printed cheques in the list appearing on the cheque
- You can select a sorting method as per your preference.
After the configuration, the printing process can be initiated, which is described as follows which is further divided into various steps:
A. Selection Of Printer
- Click on "S" on the keyboard for selecting the printer.
- Select the printer from the list of connected printers in the network on which you are willing to print the self cheque.
B. Orientation Alteration
- To open the cheque printing orientation screen, click on "N" on your keyboard.
- After selecting the cheque printing orientation as per requirement, select the orientation to Front/Rear and let the orientation be vertical in the field Print From.
C. Overall Configuration Adjustment
- Configuration can be carried out through F12.
- Fill in the dimensions as per your requirement.
- You can adjust the distance between the top and bottom edge to modify the dimension.
- You can also customise the printing date on the cheque as per your preference.
- Click on Enter after altering the dimensions and other configurations as per your preference
D. Printing the cheques
- After completing the configuration, select the cheque printing screen and bank account.
- Click on the "P" to the Print to see the cheque printing screen.
- Click on Enter to print the cheque to self.
How to enable the cheque printing in Tally?
- The Cheque Printing option can be enabled from the Company Operations Alterations Screen, accessed by clicking F11.
- This option will appear under the Banking Features present under the Accounting Features Screen of the Company.
- You can enable the cheque printing option by changing the status to "Yes."
Providing the cheque details in the Bank ledger
- Select the Bank account for which cheque details are to be provided.
- Select the Bank Name from the list of Banks. To access the list, internet connectivity is required.
- Provide the IFSC code.
- Provide the Branch.
- Enabling the Set cheque books field to provide the cheque range in the Tally.
- Provide the starting cheque number and ending cheque number to help the system calculate the number of cheques in the cheque book.
- You can also provide the chequebook name.
- Click Enter to freeze the settings.
Selection of Cheque Format
- Here, you can set the cheque dimensions as per your requirement
- Click on Ctrl-A to freeze the cheque dimensions, which will further direct you to the Sample Cheque Printing screen
- Click Enter to get the preview.
- Click on Esc to get back to the ledger master.
- To accept, click Enter.
How to write a cheque for self?
Cheques can be issued against current or savings accounts, which are drawn on the bankers to make the payment on their behalf without cash transition taking place. It is an unconditional order and therefore needs to be issued very carefully. Let's understand the steps that need to be followed to write a cheque precisely:
- In the top right corner of the cheque where the boxes are created, fill the date you want to make the withdrawal.
- Write "Yourself" or "Cash" in the space provided for "Pay to the order of". This space is provided for the payee.
- Feed the amount of cash you want to withdraw from the bank account.
- Give your signature at the bottom of yo ur self cheque.
Types of cheques that can be printed in the Tally
1. Open Cheque
The open cheque is like a loose-leaf that gives authority to the cheque bearer to get the payment at the bank or in their account directly. They can also transfer this cheque to their creditors. While transferring the cheque, the issuer should give their signature on both sides, i.e., the front and backside of the cheque.
2. Account Payee Cheque
A bearer cheque with the words "account payee" marked on the top left side of the cheque is termed an account payee cheque. These words are written between the two parallel lines that are crossed twice.
3. Post-dated cheque
The cheque which has a future date mentioned on it is called a post-dated cheque. It is issued to meet the financial liability on a future date. The payer's bank processes the payment on the date mentioned on the cheque.
4. Crossed cheque
Two sloping parallel lines drawn on the top left corner of the cheque gives the cheque the status of the crossed cheque. This cheque doesn't allow the payment of cash at the counter. Thus, the amount is paid in the bank account of the drawee only. The account payee cheque and crossed cheque are considered safe modes of transfer of payment through the bank compared to the bearer cheque.
5. Banker's Cheque
A banker’s cheque can be defined as a pay order drawn on the bank’s own funds within a local area. It is signed by a cashier and guaranteed by the bank. After debiting the specified amount from the customer's account, the cheque specifying the same amount is issued by the bank itself. Although Tally software doesn't have any role in issuing this kind of cheque, but the accounting-wise the recording of such direct payment is essential. Banker's cheques are non-negotiable instruments as the banks can't dishonour these cheques.
Also Read: How to Create A Ledger in Tally.ERP 9?
Tally has introduced several changes in recent times to simplify the accounting of business activities. The Cheque Printing feature allows companies to track the number of cheques issued and the amount paid. It also helps to locate any missing cheques in the cheque book that are not recorded in the software. Early detection will save the organisation from legal liabilities, which can turn into headaches in the future. Therefore, we hope you understand how to print a self-cheque in Tally and the different types of cheques.