Journal voucher entry in tally with examples

Knowing Tally

Passing a journal entry in Tally ERP 9 is a completely different notion that we have come across in our classrooms. A journal entry made in Tally ERP 9 has various different aspects that needs to be paid attention to what we never think of when just using Tally. Frankly speaking journal entries in Tally is not passed with a motive of recording all the transactions whether (monetary) including money transactions. Any transaction recorded in Tally making use of Tally vouchers very rarely include any sort of bank transactions. Nevertheless if this functionality ever is needed by the user, it can be simply be activated using the F12 button. So in this blog of voucher entry series we all will take a look at how a journal entry with voucher could be passed which involves a number of bank transactions which can only be entered with the help of a journal voucher in tally.

A quick guide – Knowing how to enter the journal voucher in Tally

For those who have a good understanding of Tally and are looking for a handout for better explanation of passing a journal entry in Tally with Voucher. But for the rookies it is mandatory to go through the previous blogs for better understanding of the basics of Tally and basic concepts that revolve in and around Tally.

1. First of all one needs to get to the gateway of Tally.
2. Reach out to the accounting voucher tally entries.
3. Press the F7 journal button or click on voucher entry which is located at the right side of the screen.

4. Then press the F7 key which is the shortcut for journal voucher entry.
5. Make changes in the date by hitting the F2 as the shortcut key or simply click on the date button which is the top right of the screen.

6. Right elbow the particulars and beside the by/Debtor enter the ledger to be debited and or the amount of the transaction. One can no doubt enter multiple debit entries if and whenever needed.
7. After the debit aspect is entered rather select to/Cr and choose the ledger which is to be credited and the amount on the very next field.
8. Later in the narration field one needs to enter the different type of transaction details and press enter to save the journal voucher.

Comprehensive analysis of usage and entry in Tally

When it comes to manual accounting a journal is nothing more than a book wherein each and every transaction is recorded at the very first instance. In accounting each and every transaction are captured in journal book and later on passed into the ledger

However in Tally ERP 9 using the voucher is completely different from what it is Tally. It appears to be voucher like for Payment-F5, Receipt-F6, Sales-F8 is the example which can be taken into consideration for exceptional transaction which cannot be observed making use of sales, counter-sales, payments or sales vouchers. A handful examples can be seen below.

Expense Journal Entry: A user can continue to use and pass a journal entry to book a credit on the purchase on various kinds of expenses. Whenever a purchase is made on the consumable items such as stationery, expenses for the staff welfare and numerous bills that may be generated on a firm wherein one could use the journal voucher for taking care of such expenses.

Fine Tuning entries using journal voucher

The application of fine tuning entry to get precise financial result of a firm. For example

1. Pending Expenses: – Pending expenses are the ones which are due but not yet paid. Normally the telephone bills of Jan 14 will be paid on Feb 14. However the expenses should be recorded in the Jan long just to get a precise financial report of profit obtained in April month. To get this done we make use of a journal entries in tally at the end of January with the help or by putting a “telephone expenses and crediting it to the ledger of expense payable. A handful of the other outstanding expenses are electricity bill payable and interest’s payable and so on.
2. Adjusted expenses: – Better known as the prepaid expenses or the expenses which are already paid in advance. For example the already paid premium for insurance is 5000 on 1st May 2016 for an entire year. These expenses are paid in advance or can say for an entire financial year. The expense would be like an expense for FY 2016-17 (for 11 months) Therefore the current FY premium will be calculated as 5000/12*11 = 4583 and for the Financial year 2017-18 5000/12/10=417. Therefore the amount 417 RS is a prepaid expenses or an Insurance premium which is prepaid.
3. Accrued Income: – The accrued income is an income which can be explained as an income which is earned but never received. It is observed as an asset for the company. For example on March 2016, XYZ Ltd deposited Rs 500000 in any bank’s fixed deposit with an annual interest rate of 8.5 per year. Hence on 31 March 2016 the firm will already be acquiring an interest income which will be 500000*8.5/12×1 month = Rs 3542. That is for sure that this income will be captured as income for 31st March 2016 by making a record as a journal entry
4. Unearned Income: – The unearned income is an income which was received but was never earned. In simpler words it is the consideration or cash received well in advance but not really earned. For example an interior designing company received a total amount of Rs 5000/- as advance for a specific room designed for a celebrity. However the services promised were not delivered till the date of receipt. In any such scenario in the first place the cash account is credited and liability credit account which falls under the unearned revenue account, and on completion and delivery of the liability of the account debited and the revenue account being credited making use of a journal entry.

Entries for journal transfers- The journal transfer entries can be explained as the ones that are used to pass an entry to acknowledge the funds of one bank account to another bank account or to some other department. A very simple example to understand in a better way is that ABC Ltd has two accounts in the book of accounts as “ABC Ltd (Debtor)” possess a debit balance of Rs 1000 and “XYZ Ltd (Creditor)” has a credit balance of 1000. So to transfer the funds from XYZ Ltd (Debtor)” to ABC Ltd (Creditor) and thereby creating an entry for ABC Ltd as a Debtor.

5. The Entries for Correction (Correctional Entries):- No matter how well you try to keep the book of accounts in a way that every single entry or double entry passed ever was a perfect one. There always may turn up a scenario wherein the accounts may be inappropriately debited or credited by the account executives or the finance department. Therefore to overcome such problems one needs to be very much aware that there are ways to get over with it. So in order to reverse the initial entries passed wrongly and replace it with the precise or more correct entries one should also take care of the numerous single entries and to get it transferred from the wrong to the correct account.
6. Sale and purchase of fixed asset on an account:- Whenever using tally one could make use of the journal vouchers which may be given the first preference to pass on the sale of purchase of fixed asset on account which will be carried on a credit basis. We have witnessed a number of tally voucher types in order to record the purchase of fixed asset. An account while using Tally can consider making use of Tally voucher so to record the journal entry for purchase of fixed asset even the purchase bill accounting GST.
7. Depreciation of Asset: – Depreciation can be explained as the footfall for any asset’s total evaluation and on the other hand the value of asset continues to fall due to the wear and tear with the time and obsolesce etc. With every passing year the value of any asset is observed with an expense of the firm’s depreciation effect on an asset in the net profit and loss of the organization.

And now without any further due let us learn how to pass a journals in Tally, these journals are passed with the help of journal vouchers for the shortcut key in order to access the journal voucher for accounting voucher menu by pressing F7.

1. First of all reach out to the journal voucher
2. Later to that get to the gateway of Tally which will lead you to the accounting vouchers.
3. And then press the F7 or one can click the on the journal button which is their present on the right hand side of the screen.
4. Now let us assume this one example for every item for the desired entry acknowledged above.

The journal entry for passing a booking expenditure

For passing a journal entry for expenses which are paid through the cash transactions a user could consider using a Payment voucher. But what about passing an entry about the expense for the purchase on credit.

For example let us assume the procurement of drinking water from Aquafina springs on the credit of Rs 1000.00.

In such a scenario an accountant will make a journal entry for a provision record. So by debiting the STAFF WELLFARE expense or expense for drinking water and passing an entry in the credit of Party ledger.

One needs to make sure that you have also created Staff welfare expense which falls under the indirect expense and Aquafina springs coming under the sundry creditor’s ledger. So entering the expense in Tally journal voucher can be passed with the below instructions

Get to the Gateway Tally

And after that reach out to the accounting voucher by pressing F7 journal.

Adjusting the Journal entry in Tally ERP 9

The journal entries passed and adjusted in Tally is done at the end of a financial year in majority of the cases while getting ready for the last or final accounts a handful of the firms which follows monthly adjustment of all the transactions for getting g the precise monthly financial report.

Outstanding expense Journal entry in Tally ERP 9

For passing an outstanding the expense in Tally ERP 9, prefer the following example

The telephone bill generated by BSNL for the consecutive month of May 2016 is 2500 and the bill was received on the June 10th of 2016.

Read:- Tally erp 9 shortcut keys list

So in order to get the perfect profit of May one needs to enter the expense of May 31st and for better understanding of this particular journal entry for telephone expense passed as the journal entry on 31st May 2016.

And now it is time for feeding the debit entry right after proving the details on the screen and credit right after as depicted in the image below

Now press enter and approve the screen.

The prepaid expense and the journal entry voucher in Tally

As it was explained earlier the assumption of the below mentioned example for the paid in advance expenses.

As for now we have recorded the receipt as nothing more than a liability in any business. By the end of 2016 April 30 the line of business will be able to pull out one month rent as well. In order to book the April month rent as an income one will need to transfer the 20000 from the unearned rent to the rent received section just to pull up the extract for precise profit from the P&L account.

However this entry could be passed only with the help of journal voucher of Tally ERP 9. Let’s get this done

The amount of 20000 transferred will be falling in the unearned rent account from the rent received account. The remaining balance of the unearned income will jump to 60000/- Likewise the entry will be the same for every 31st of alternating months and 30 for the other remaining months. The entire amount gets pushed to the rent received account as the unearned income of account will become nothing more than a zero.

Depreciation Journal entry in tally

The journal entry for the above mentioned is as follows

And here is what the depreciation journal entry screen in Tally ERP 9. As the journal entry for sale and purchase of fixed asset on account in Tally.

Hit the enter key and save the screen and data entered and that will be it.

Correctional journal entries for better understanding. Let’s get to another example of rectifying an entry.

Read: – How to delete a company in Tally?

It is supposed to be the credit which should be computer solutions in place of system solutions to rectify one can follow the below mentioned 2 methods

Method 1

Trying to reverse the incorrect entry and try to rectify the same making use of correct entries.

The reverse entry for the journal is

The impact of the above journal is the cancellation of the very first entry which later will be a fresh correct entry in the journal.

Method 2

One just needs to make a single journal entry in order to transfer the remaining balance from a system solution to the computer solution

1. The adjustment journal for statutory expenses and for GST including other tax compliances.
2. In tally however there is an exceptional alternative in the journal voucher which is also called Stat Adjustments.
3. One could surely make use of the Stat Adjustment button or making use of the shortcut key of the purpose Alt + J.
4. So inhere the offset input for tax credit against the tax liability or one can surely boost the tax liability or the input for tax credits in any scenarios such as reverse charges, purchase from unregistered dealers, and import of goods wherein there is no involvement of the tax in the purchase bills.

1. Get to the gateway of the Tally

2. Next is selecting Accounting vouchers

3. Later to that F7 and selecting journal

4. Press J which leads to Stat Adjustment

So just by making use of the adjustment which falls in the tax compliance one will get to know more about in the GST section.

Then, making use of the dr/cr in place of to/by

So in the journal voucher entry screen one can see To/By to indicate the credit and debit aspects. A handful of the tally users will get confused with this for sure. Therefore the ones who wish to make use of the Dr/Cr in place of To/By there is an alternative available for them. Therefore Dr inhere is Debit and Cr means Credit, to get going with this one needs to simply.

Press F12 and setup the button which is located at the bottom right of the screen and one will get a standard configuration for journal.

Then look out for the Cr/Dr in place of To/By while activating it with the help of key Y or “Yes” option appearing on the screen.