For what Purpose a Journal Voucher is Used in Tally
This voucher is used for all adjustment or due entries in tally software, or in other words entry which is not made by other accounting vouchers are made by this voucher.For Example: Credit purchases of fixed asset from creditor Rs. 50,000/-
Dr. Fixed Assets 50,000
Dr. CGST 4.500
Dr. SGST. 4,500
Cr. Creditor 59,000
For adjusting entries using journal voucher: The use of adjusting entry is to get accurate financial result of a company.
For example: We use Journal vouchers in Tally for different scenarios listed below :
For journalising Outstanding Expenses | · Outstanding expenses are expenses which are due but not paid. · Usually Rent bill/Electricity bill, newspaper subscription fee, salary for the month of March is paid on April of the new accounting year but as per going concern principle, expense should be recorded in March itself so as to get an accurate financial report or profit of a complete financial year. · In this scenario, we use a journal entry at the end of the march by debiting “rent expense” and crediting “expense payable ledger”. |
To record prepaid expense | Pre- paid expenses are expenses paid in advance, the expense of which is said to accrue over the months or e Periods or even more than one financial year in many cases. |
To recognize accrued income | Accrued income is an income earned but not received. It is a current asset for the company. This has to be recorded as income for the financial year to which it pertains by passing a journal entry. |
Accrued Income | Accrued income is an income received but not earned, which means cash
or consideration received in advance but not actually earned. For example a digital marketing company receives money Rs.15,000 as advance for a particular project. But service was not provided till the date of receipt. In such case initially we debit cash account for the sum received and credit liability account like Accrued income account and on completion and delivery we debit the liability account and credit the revenue account using a journal entry. |
For Transfer entries | Transfer entries are used to transfer funds from one account to another. For Example: 01-05-2018 ABC Ltd has two accounts in the books of accounts as “ABC Ltd (Debtor)” hold a debit balance of Rs 1000 and “ABC Ltd (Creditor)” hold a credit balance of Rs. 1000. To transfer funds from “ABC Ltd (Creditor)” to ABC Ltd (Debtor) and to close both accounts, we need to pass a journal entry by debiting ABC Ltd (Creditor) and crediting ABC Ltd (Debtor). |
For correcting wrong entries passed in the books of accounts | There may be situations where accounts are wrongly credited or
debited, In such case to correct those entries we reverse the first
entry to transfer from wrong account to the correct account using a
journal entry in Tally. |
Steps to Enter a Journal Entry in Tally
Journal entries in Tally are bye- passed through journal vouchers. The shortest route for accessing journal voucher in accounting voucher menu is F7.To enter a journal entry in Tally. ERP 9 follow these simple steps:
Step 1 | From the gateway of Tally.ERP 9, Go to Accounting Voucher, Gateway of Tally > Accounting Voucher. |
Step 2 | Now hit F7 shortcut key for journal voucher entry or click on F - 7 Journal button on the right side of the screen. |
Step 3 | Change the date by pressing shortcut key F2 or click on date button at the top right. |
Step 4 | Under the particulars column after By/Dr enter the ledger to be debited and amount of the transaction. The users can enter multiple debit aspects (ledger to be debited) one by one if needed. |
Step 5 | After entering Debit aspect, select To/Cr and select the ledger to be credited and amount in the next field. |
Step 6 | Now in the narration field, enter the details of transactions and hit enter to save the journal voucher. |
Example: Purchase of Drinking water from Himalaya Springs on credit for Rs 1000.00.
In
such case we will make a journal entry for making provision. By
debiting STAFF WELFARE EXPENSE OR DRINKING WATER EXPENSE and crediting
Party ledger.
Date | Particulars | Debit | Credit |
---|---|---|---|
01-06-2016 | Staff Welfare Expense........Dr | 1000 | |
To, Himalaya Spring | 1000 | ||
Being Drinking water purchased from himalaya springs on credit bill no 12 |
Make
sure that you have created Staff welfare expense under Indirect expense
and Himalaya springs Under sundry creditors ledger. Lets enter this
expense in Tally journal Voucher.
Outstanding expense Journal Entry in Tally ERP9
For booking outstanding expense in tally erp9, consider the following example.
Telephone bill from BSNL for the month of May 2016 is 2500.00,Bill received on 10th of June 2016.
Date | Particulars | Debit | Credit |
---|---|---|---|
31-05-2016 | Telephone Expense.........Dr | 2500 | |
Telephone Expense Payable A/c | 2500 | ||
Being telephone Expense for the period of 01-05-2016 to 31-05-2016 payable to BSNL |
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Press Enter and accept the screen.
Prepaid Expense Journal entry voucher in tally
As earlier explained lets consider the following example for the pre-paid expense.
Insurance
premium paid 5000 to New India Assurance Co Ltd, on May 1st 2016 for 1
year. The expense is spread over more than one Financial year.That is
The expense is shared in FY 2016-17 ( May 2016 to March 2017 is 11
months) hence current FY premium is calculated as 5000/12*11 = 4583.00
and for FY 2017-18 1 Month = 5000/12*10 = 417. So Rs 417 is a pre-paid
expense or Insurance premium pre-paid.
Date | Particulars | Debit | Credit |
---|---|---|---|
01-05-2016 | Insurance Premium......................Dr | 4583.00 | |
Pre-paid Insurance premium ....Dr | 417.00 | ||
To; New India Assurance Co Ltd | 5000 | ||
Being insurance premium paid for one year split for current year premium and coming year pre -paid premium and accounted |
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After passing this journal entry you can make payment entry using F5 Payment voucher in tally erp9.
Accrued Income Journal Entry in Tally ERP9.
Let’s take an example of accrued income
ABC
Ltd deposited Rs 500000 in bank as Fixed deposit @ 8.5% /year. On 31
st march 2016 company will have earned one month interest 500000 x
8.5%/12 x 1month =3542. This has to be recorded as income in march 31st
2016 even if the total interest will be received only after completion
of tenure one year.
Date | Particulars | Debit | Credit |
---|---|---|---|
31-05-2016 | Accrued Interest..............Dr | 3542.00 | |
To; Interest on deposit | 3542.00 | ||
Interest earned from Fixed deposit in SBI from 1st May to 31 st may 2016 accounted |
Examples of Unearned Income Journal entry
Leo
International is renting a portion of their building for a monthly rent
of 20000, On 1st April 2016 They received a cheque of 80000 as rent
advance till july 31st. Make the receipt entry and adjust the income in
monthly p& l account
When amount received pass a receipt entry by debiting Bank a/c and crediting Unearned income.
Journal Book | ||||
Date | Particulars | LF | Debit | Credit |
1/4/2016 | ||||
State Bank Of India————Dr | 80000 | |||
To; Unearned Rent | 80000 | |||
(being 4 months rent advance received) |
The journal entry for the same is
Journal Book | ||||
Date | Particulars……………………….……..Dr | LF | Debit | Credit |
30/4/2016 | ||||
Un earned Rent————–Dr | 20000 | |||
To; Rent received a/c | 20000 | |||
(being unearned rent transferred to april moth rent received account) |

This
transfer 20000 from unearned rent account to rent received account. The
balance of unearned income become 60000. In the same manner every month
end till july 31st pass the same entry.the whole amount got transferred
to rent received account and unearned income account will become zero.
Depreciation Journal entry in tally
Lets enter a depreciation journal entry at first. For example
Furniture
worth rs 15000 depreciated and accounted @ 10% & Plant and
Machinery valued Rs 250000 depreciated @ 15% at the end of the FY
31-03-2016
Date | Particulars | Debit | Credit |
---|---|---|---|
31-03-2016 | Depreciation.......Dr | 39000.00 | |
To Furniture | 1500.00 | ||
To; Plant & Machinery | 37500.00 | ||
Being amount of depreciation charged on particular assets |

Journal entry for Purchase and sale of fixed Asset on account in tally.
Computer purchased from Computer solutions for Rs 25000.00
Date | Particulars | Debit | Credit |
---|---|---|---|
01-04-2013 | Computer & Peripherals ----- Dr | 25000.00 | |
To; Computer Solutions | 25000.00 | ||
being computer purchased from computer solutions as per bill cs 15225 |
Press enter key and save the screen .that is it.
Correction journal entries (Further understanding on journal voucher)
Let’s do another example of correcting an entry
A computer purchased from computer solutions wrongly entered in “system solutions” account as per bill no 1523 for Rs 25000.00
Date | Particulars | Debit | Credit |
---|---|---|---|
01-04-2013 | Computer & Peripherals ——— Dr | 25000.00 | |
To System Solutions——— | 25000.00 | ||
(Being computer purchased as per bill no 1523) |
Method 1
Reverse the wrong entry and make correct entries
The reverse journal entry is
Date | Particulars | Debit | Credit |
---|---|---|---|
01-04-2013 | System Solutions ————— Dr | 25000.00 | |
To; Computer & Peripherals | 25000 | ||
(to cancel the jv no 1 as the it was a wrong entry) |
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Date | Particulars | Debit | Credit |
---|---|---|---|
01-04-2013 | Computer & Peripherals ----- Dr | 25000.00 | |
To; Computer Solutions | 25000.00 | ||
being computer purchased from computer solutions as per bill cs 15225 |
Just make a single journal entry to transfer balance from system solutions to computer solutions
Date | Particulars | Debit | Credit |
---|---|---|---|
01-04-2013 | System solutions————-Dr | 25000.00 | |
To; Computer Solutions | 25000.00 | ||
(Being computer purchased from computer solutions wrongly entered in system solution account transferred to computer solutions account as per bill no 1523) |
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How to enter transfer journal entries in tally
Example:
on 01-05-2016 XYZ Ltd has two accounts in your books of accounts
as “XYZ Ltd ( Debtor)” hold a debit balance of Rs 1000 and “XYZ Ltd (
Creditor)” hold a credit balance of Rs 1000. You need to transfer of rs
1000 in debtor account to creditor account and close both the account.
Date | Particulars | Debit | Credit |
---|---|---|---|
01-05-2016 | XYZ Ltd ( Creditor) ........Dr | 1000.00 | |
To; XYZ Ltd ( Debtor) | 1000.00 | ||
Being amount transferred from XYZ Debtor accounts which was receivable to XYZ Creditor account which was payable and closed both the account. |

Statutory Adjustment Journal voucher for GST and other tax compliance.
In tally there is a special option in the journal voucher called Stat Adjustments,You can use this option by clicking on the Stat Adjustment button or use shortcut key Alt+J. Here you can offset input tax credit against the tax liability. or you can increase the tax liability or input tax credits in cases like reverse charges, import of goods, purchase from unregistered dealers where there is no tax found in the purchase invoices.Go to Gateway of Tally > Accounting Vouchers > F7: Journal
Click J : Stat Adjustment .
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By using which you can make adjustments in the tax compliance. You will learn more about this in GST Section.
Use Dr/Cr Instead of To/By
In the journal voucher entry screen you can see To/By to indicate Debit and credit aspects.Some tally users are getting confused with this. Those who want to use Dr/Cr instead of this there is an option. Here Dr is Debit and Cr is Credit, to activate thisClick F12 configure button at the bottom right, You will get a journal standard configuration.
Find the option Use Cr/Dr instead of To/By during entry activate by typing Yes
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Save the screen now you will see Dr/Cr in the screen
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dO YOUR sELF
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