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Dealing with contra entry in tally is very easy. you may use F4 or press contra from the voucher entry screen. Read more about debit and credit rules for better understanding of debit and credit accounting heads

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Cash A/c to another (e.g. main cash to petty cash )or one Cash A/c to another Bank A/c i.e., is a transaction indicating transfer of funds from.

  • Cash account to Cash account
  • Cash account to Bank account
  • Bank account to Cash account
  • Bank account to Bank account

For contra transactions or for any other transactions if you don’t know which account should be debited and which account should credited then you should read basic rules of accounting entries and basics of accounting.

To view the Contra Voucher Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

  1. Select F4: Contra from the Button Bar or press F4

There is 3 way to deal with contra entry voucher, you can choose whatever you think Fit. Though I prefer the 3rd mentioned method as USE PAYMENT/RECEIPT VOUCHER AS CONTRA AND single entry method.

Creating Contra Entry in Single Entry Mode

In tally.erp 9, single entry method is very easy and useful and I am using it for the last 2 years as it is fast and saves a lot of time as well as there is less chance of mistake while posting of accounting entries

The Contra Voucher can be passed using Single entry mode or Double Entry mode.  To toggle between Single Entry and Double Entry mode, we need to change the setting Use Single Entry mode for Pymt/Rcpt/Contra to Yes/No in F12 configuration.

You should refer voucher entry configuration in tally for more understanding on the subject

To view Contra Voucher creation screen in Single Entry mode:

Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra

For example, to transfer funds from Cash Account to Bank Account:

  1. Debit the Bank Account
  2. Credit the Cash Account

Why you should use single entry Mode :

  • Faster data entry.
  • When there is a Single Debit and Multiple Credits in the entry

Creating Contra Entry in Double Entry Mode

The Contra entry can be passed using Double Entry mode where we have the option to select multiple Debits and multiple Credits. To select multiple Debit and Credit ledgers in the Double entry mode, set Use Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.

Use Payment / Receipt Voucher as Contra

The Contra Voucher is used to indicate transfer of funds from

  • Bank account to Cash account
  • Bank account to Bank account
  • Cash account to Bank account.
  • Cash account to Cash account.

When you are passing a Payment voucher, you do not get the Cash and Bank Ledgers for selection in the list of Ledger Accounts on the Debit side and when you are passing a Receipt voucher, you do not get the Cash and Bank Ledgers for selection on the credit side.This will help you to avoid posting a wrong account by mistake.

However, for users who wish to use the Payment and Receipt vouchers for this nature of transaction, Tally.ERP 9 has the flexibility of defining Payment and Receipt behavior as per Contra voucher.

Go to Gateway of Tally > Accounting Vouchers

  1. Select F5: Payment from the Button Bar or press F5.
  2. Set the option Use Payment as Contra to Yes in F12: Configuration screen.

Now, you can use payment or receipt voucher instead of contra voucher. it is more easy to use and I always pass my bank /cash transactions of contra nature through this way only

44 thoughts on “Contra entry in tally how to deal?

  1. S. Sachdeva says:

    Dear Sir/Madam,
    Kindly tell me how can I pass the entry of a cancelled bill in tally erp 9
    Thanks & Regards
    Sachdeva

    1. Dear S.Sachdeva,
      Just pass an entry as a normal bill then go to this entry in alteration mode and press Alt+X
      now your voucher will be cancelled

  2. Rupesh Shah says:

    WE are using tally multiusers, sometime i face to problem of title of printing. After worked of sales invoice then i create proforma invoice and print the same title of proforma is printed as a Invoice. Both voucher type is create seperate. AT time of creation proforma we confirgure F12, then it will be printed ok. How to resolve the problem ?

    1. Dear Rupesh,
      Go to Main menu of Tally press F12 there you will find printing option. just set it properly. If still you find problem, then please revert to me

  3. Rupesh Shah says:

    Kindly tell me, How can we do readonly tallycfg.tsf file in tally.erp 9 series 1.61 ?
    we are using windows server 2008. I have try to readonly but it is not save. I have also try to read only file of excel in same folder, it is save perfectly. I have a problem is when i set configuration (F12), it is frequntly chages. so i face lotof troblle. Kindly give some solution.

    1. Rupesh,
      Pl. raise your query through support center in favor of I Vision Info Tech from your tally software.

  4. hi! im using tally erp 9 in my office. Why does the payment vouchers show in the outstanding receivables? For example i created a payment to my supplier as advance payment. No bill yet from them so i set it as advance. Then when i want to view the oustanding receivables this payment that I made is also showing… how is that? i want to view only those outstanding receivables from my custmers and not the advance payment that I made for my suppliers. pls help.. pls email me… thanks a lot…

    1. Amy,
      When you make an advance payment, then it must be shown in the supplier’s accounts. How can you expect that some particular transaction get disappear from the ledger ? Accounting is not something like a miracle. it will show you what you have entered. you have to use filter. further it will show you as advance. you have to filter out the advance payment and thereby you can view the outstanding only.

      1. Jaymin Desai says:

        Dear Mahendra,

        Amy’s Query is genuine query. But your answer is not satisfactory. Pl. try to understand question of Amy’s. He/she wrote about Advance Payment to Party i.e. Supplier. ( Creditors ) if he/she go to see Total Payable Amount then if Payable Amount without Advance Payment to xyz party is Rs. 10,00,000 and Amy’ Done entry of Rs. 50,000 as advance to xyz party ( Creditor/ Supplier ) now after done entry of above advance he/she go to see Total Payable Report then system should show Net Amount of Payable Rs. 9,50,000. I think it is due to Sub Ledger Control Account Concept not in Tally.Erp 9.

        Jaymin Desai.
        Mob. +91-98xxxxxxxx. Email : xxxxxxx at yahoo.com

        1. Dear Jaymin
          I am repeatedly requesting people to post their query either their software serial number..However you guys never respect our policy and terms of usage.how can you expect satisfaction from us? Regarding Amy’s query.instead of seeking software’s cabability one has to look about practical solutions.A new group can be created as advances from Suppliers under current liabilities to show such amount separate from routine business transaction.

  5. Pawan yadav says:

    how can i make my tally data readonly at the time of backup cos i have to send my data for audit and i dont want some one change my data

  6. chirag joshi says:

    sir,
    i want to printing cheque of
    central bank of india
    i tried but icant config. it
    pls. help me to set confg. cheque

    Regards
    chirag joshi

  7. Narendra Chaudhary says:

    Kindly tell me any one that I have two company A and B, Now I want to some entreis of Book “A” to transfer in Book of “B” Company. how can i make this.
    please reply me at narendra2323@rediffmail.com or just call at 09310947557 (Delhi)

    Other Example-: supose I have a Company “NARENDRA LTD.” in tally 7.2version, Stareted period for 01.04.2010 to 30.9.2010 .

    now i want create a new company(7.2 version) “CHAUDHARY LTD” i want all enteries of Narendra Ltd. transfer to Chaudhary ltd. how can i do.
    it’s more urgent request so kindly mail or call to me.

    Thanks & Regard’s

    Narendra Chaudhary
    09310947557 (DELHI)

  8. sir,
    I have a doubt in posting that the company’s directors deposited (cash) a sum of Rs. 50000/- in bank for official use and after a few days they drawn the amount by spilting the amount in 1/2 and distributed among themselves. so then I posted the first entry as contra i.e bank A/c—-Dr, to cash –Cr. and then second entry as a cash—dr, to bank a/c Now tell me sir how could i post the entry because the cash has given by directors and taken by them.
    Is the entry is correct or wrong.

  9. Will you pls tell how to post contra entry for cash received deposited in bank

  10. how to pass entry of cash and petty cash in tally 9 erp if cash withdrnwal from bank and use ing for cash and petty cash payment.(how to deal with cash entry and petty cash entry)

  11. pls help me how to make petty cash payment entry in tally erp9 how 2 maintain in register.

  12. Please reply me through my mail how to deal with a single culom contra.
    Now money issued to me for petty cash how do i enter it. I use tally 9
    Also when i make a posting in the petty cash and the happens to be a mistake, how do i delete those entry for accuracy. thanks

  13. how can i maintain fixed deposits FDR & and in which group they come under how is the entry of making FDR and Closing of FDR after mature period please help me

  14. Dear Sir,
    How to pass a entry for Bank OD account in Tally?

  15. How to pass a cancelled cheque entry in Tally ERP9

    1. Anooja,
      Your query is really very strange. In an accounting software or even in Accounts, All transactions which have a monetory value can be recorded. I don’t understand the purpose of entering a cancelled cheque in Accounts . Can you explain me exactly what you are looking for ?

  16. Hello Mahendraji,
    I had wanted to ask the question asked by ANOOJA above.
    Suppose I enter a cheque , when writing or printing the cheque I made a mistake and want to cancel it. Of course i can simply delete the vouncer , make a new entry and write a new cheque. But while reconciling or at the end of the year I find that one cheque is missing in a seried. I may not remember then about why i cancelled it . Is there a way in tally that i can keep track of this .

    1. Hello Doctor Saheb,

      Sorry was busy here and answer to your question requires a detailed analysis so couldn’t respond in time. Well, Now I got what Anuja, meant to ask. Anyway, an accounting software is used only to record transactions which have a monetary values but now days through customization we can achieve almost any of our requirements. Presently Tally does not allow a facility to maintain cancelled cheques list. Yet we can do it either by customisation or by a different way. e.g. entering zero valued items. A new voucher class in payment section can be created for this specific purpose we can enter the cancelled cheques with zero value. i have never tried but will test it if it works out or not and will let you know.

  17. Dear Sir/Madam,
    How to pass a cancelled cheque entry in Tally ERP9

  18. hw to entry neft and which voucher we have to use?

  19. Dear Sir,

    I have a Query in Tally…. We have transferred an amount of 3 lacs from ICICI bank to AXIS Bank, now ICICI Bank shows 3 lac 28 Rupees debited from my account ( 3lac + 28 bank charges) , and AXIS shows 3 lacs credited in our account.where can i show this 28 rs diference pls let me know, how can i make an entry in tally….
    Thanks in advance.

  20. prince jain says:

    i m using tally 7.2 , i was made to contra entry but it not to show cash account & any bank account so plese help me

  21. Hello sir,
    I want to know that how to pass petty cash entry?

  22. R.vigneshwaran says:

    i have one doubt in the head account.i want change the head account to another head account.exampl:i have entered

    office expenses A/c DR XXX
    cash unit-4 A/c CR XXX

    now i change this cash unit-4 to cash A/c for 2000 thousand entries.please advise how change this entry in one step.kindly send the answer to my mail id

  23. hello sir
    How do delete the unwanted ledger entries in tally

    1. Dear Deiva

      Go to Display then select Day book and track your newly created voucher ,,journal entry
      after you select this Press ALT + D to delete then select Y to delete conformation

  24. you'r genioues i wanna b yr st please !!!!!!! says:

    u’r d best tutor on the web i like it 2 mch keep on going u will be the best of the best.

  25. dear sir,
    In tally Which Is Entry Done by journal entry Paid to Salary Advance, Debited Is Md To Staff by Cash , But we have to show the cash With Ledger How can

  26. nitish gundewad says:

    iam not able to entry cancled cash memo , so how can i

  27. MOHAMED ISMAIL says:

    Dear Sir,

    I would like to request you to clarify my doubt regarding Petty Cash handling In tally. My Question Is I gave Cash Advance to my employees then how do i want to create a Ledger & Voucher Entry and that must be deduct from the Petty Cash Account only.

    I am anticipating for your generous and favorable help in this matter.

    Yours Lovingly

    Mohamed Ismail.

  28. Dear sir ,

    please suggest me how do I make petty cash Entry in tally erp 9

    I first made petty cash leger and i passed contra entry of 10000 so it goes to my credit side but while making payment entry it Again goes to credit side .

  29. Chandrika says:

    Dear sir,

    Please clarify my doubt regarding i am handling 2 companies accounts. the 2 companies have the bank account in the same bank. how can i pass the entry in tally, if the amount transfer from one account into another account in the same bank.

    Please help me out.

    thanks & regards,
    chandrika

    1. Akther Parveeen says:

      let me the entries in Taklly

    2. Akther Parveeen says:

      let me the entries in Tally

  30. Sandeep Agrahari says:

    Sir,

    Please help how to pass reimburse entry in tally…………….

    I had paid cash to one of my employee for travelling allowance.

    Thanks Sandeep Agrahari

  31. Dear Sir,
    Kindly tell me about that, we made contra entry for Bank to Bank but problem is that when we make RTGS Bank to Bank then there is charges also debited from account, so can we made single contra entry bank to bank with bank charges, in yes then how ? If not then we can make payment entry with bank charges to “payment as contra” but this is not Payment.

    Kindly Help me.

  32. I am little more confused about this contra entry , if i be on entering my balance is not coming correctly,

    and please tell how to use this contra entry and a lot of confusions is tere in dr and cr

  33. Sir,
    Please Help how to pass contra entry, if the one company having two different current account i.e, Syndicate Bank & Hindustan Bank. Please tell me if I transfer the cash from syndicate to hindustan Bank, what will be my entry?

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