Journal entry in Tally.ERP 9 is one of the simplest things which one can do without much efforts if the person knows a little bit of basic accountancy.
Typically a journal entry refers to a financial transactions where one account is being debited and another account is being credited. Which account needs to be debit and which account needs to be credited is a matter of Accounting principles.
In Tally.ERP 9 Every financial transaction have its own voucher type.
A financial transactions which is not a sales, not a purchase, not a payment , not a receipt is being posted through a Journal Entry
The short command in Tally.ERP 9 to post Journal Entry is F7.
Accounting people easily confused about how to do Journal Entry in Tally.ERP 9. The confusion related to journal entries is high due to lack of basic accounting knowledge and people are unsure about the classification of journal entries as there is no hard rules and journal entries very much depends on the nature of transaction itself and the business activities being carried out.
Most common and easiest transaction recording in tally.erp 9 is the accounting journal entry. I will teach you how to account Journal entry in Tally.ERP 9.
What is Journal Entry
The Wikipedia, defines journal entries as logging of transactions into accounting journal items. Typically journal entries consists double entry, one ledger will be debited and another ledger will be credited for the same amount. Some common examples of journal entries are bad debts provision, taxation provision, other monetary or not monetary expenses etc.
Why you should learn accounting Journal entry
Learning accounting Journal entry is very important for finalisation of accounting. Without understanding Journal entries, accounting data of a company will lead a mis leading and false picture of economic affairs of the company. You can impress your bosses and other companies by mastering the skill of journal entries. if there is a fire occured in your organization you are assigned to pass the damage in the books of accounts then how you will do to record ?
similarly your company has given valuable gifts to your customer then how you will record such transactions if you are not aware of accounting journal entries?
Journal entry in Tally.ERP 9 How to do?
Tally.ERP 9 have special voucher types to record specific vouchers:
01 Payment voucher to account payment made by cash/cheque (F5)
02 Receipts Voucher to account all receipts in cash/cheque (F6)
03 Journal Voucher for transaction which does not involve cash/bank)(F7) which includes debit and credit note
04 Sales Voucher for Credit Sales (F8)
05 Purchase Vouchers for Credit Purchases (F9)
So, here we will see how the entries are made in Tally through journal ?
Suppose an enterprise bought stationery items of worth of Rs. 4500 from M/s. XYZ stationery mart on credit basis.
Then go to voucher entry, press F7 select the date of invoice
Then Dr. Stationery & Printing Expenses account for Rs. 4500
and Credit XYZ Stationery Mart for Rs.4500
In narration please mention the items purchased in brief, e.g. bill no. short description of item etc.
and press enter
you have completed the journal entry.
In the above example if the above purchases was done on cash/bank payment then the same entry to be done through payment voucher(F5)
In other words all vouchers which does not include cash/bank payments or receipts and sales-purchase have to be accounted through the journal vouchers.
the easiest part of journal entry in Tally.ERP 9, is that once you are familiar of a debit and a credit ledger head, you don’t need to worry more.