How to enter Journal Entries in Tally ?

We need to know about the Ancillary Rules of Debit and Credit to enter transactions in the journal (debit credit mode) in Tally. The Transaction can be standard or advanced, but Ancillary Rules give you a perfect and right solution. Entering transactions in Tally is very easy. But you require you to learn about Ancillary rules.

What is the Journal Entry Format?

By _________________________ A/c – Dr XXXXX
To________________________________ A/c – Cr XXXXX
(Narration:______________________)

  • In the JOURNAL ENTRY format, we usually write By at Debit Side and To at Credit Side. But it’s not mandatory
  • Dr in debit side means Debit The Receiver and its not debtor
  • Cr in credit side says, Credit the Receiver and its not Creditor
  • The debit amount and the credit amount must be equal in a journal entry
  • Narration is its giving information about Journal Entry Format.

What are the settings to enter transactions in Journal Mode in Tally?

  • For the Vouchers Payment, Receipt, and Contra:
    Press F12 > Configuration >
    • Use Single Entry mode for Payment/receipt/Contra vouchers? Yes
      (This feature turns the payment, receipt and contra vouchers into double-entry mode)

      Use Cr / Dr. Instead of To / By during entry: Yes/No
      (If this feature is activated, Dr displays at the debit side, and Cr will display at Credit side)
      (If this feature is deactivated, then By will be Show at Debit Side and To will be posted at credit side)
      (This is General option and works for any voucher)
  • For Purchase and Sales Vouchers:
  • CTRL + V is the key to switch between voucher mode and Invoice Mode. So, Use this key for voucher mode.
  • Purchase Voucher in voucher mode by default starts with Credit.
  • Sales Voucher in voucher mode by default starts with Debit.
  • Generally, Ledgers related to Expenses and Fixed Assets not allows in Purchase Voucher. If you needed, then press F12 configuration >
    Allow Expenses / Fixed Assets in Purchase Vouchers? YES
  • And Sales Voucher doesn’t allow the user to record Income Related Transactions. If you needed, then press F12 > Configuration >
    Allow Income Accounts in Sales Vouchers – YES
  • For Journal Voucher:
    Journal Voucher (F7) has only one mode, which is Double entry mode.
    Generally, We don’t record cash transactions in Journal voucher. But there is a feature in F12 to record transactions in journal mode if needed…
    Press F12 > Configuration >
    Allow Cash Accounts in Journal Vouchers? Yes
  • For Debit Note and Credit Note Vouchers :
    Transactions of Purchase Returns records in Debit Note Voucher, and Transactions of Sales Returns records in Credit Note Voucher.
    Press CTRL + V for voucher mode in the debit note and credit note voucher.
  • Memorandum Voucher: (Ctrl + F10):
    memorandum voucher has only one mode that is Double entry mode.
    This is a non-accounting voucher, and it’s not valid at any accounting books.
    If we are not sure about a particular transaction, then you can record the operations in this memorandum voucher.
    No settings needed for this voucher.

Which vouchers in Tally not supports for double entry mode?

  • Inventory vouchers in Tally doesn’t support for Double Entry mode. Because Inventory Vouchers Involves in stock related transactions, not for Account related transactions. So, inventory vouchers not supports for double entry mode.
  • List of Inventory Vouchers that not supports for Double entry mode:
    Stock Journal (ALT+F7)
    Purchase Order (Alt + F4)
    Sales Order (Alt + F5)
    Receipt Note (Alt + F9)
    Delivery Note ((Alt + F8)
    Rejections In (Ctrl + F6)
    Rejections Out (Alt + F6)
    Job work in (Alt + W)
    Job Work Out (Alt + J)
    Material In (Ctrl + W)
    Material Out (Ctrl + J)
    Physical Stock (Alt + F10)
    Stock Query (Alt + S)
  • Payroll vouchers also not supports for double entry. Because Payroll vouchers involves in employee related transactions.

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