Bank Statement

Author: Sanskriti

A crucial component of business accounting is bank transactions. All payments, receipts, and transfers made through your bank account must be accurately documented in your books. Whether you wish to import your complete bank statement for automatic reconciliation or record them manually, Tally Prime offers an effective approach to handle all kinds of bank entries. This is a comprehensive guide to managing and recording bank statement entries in Tally Prime.

1. Understanding Bank Entries in Tally Prime

Any transaction that has an impact on your bank account, including deposits, withdrawals, payments to suppliers, customer receipts, and fund transfers, is referred to as a bank transaction in Tally Prime.
Depending on the type of transaction, these entries are typically made using Payment Vouchers, Receipt Vouchers, or Contra Vouchers.

  • When money leaves the bank, such as when paying a vendor or covering expenditures, a payment voucher (F5) is used.
  • When money enters the bank, such as when a customer pays, the Receipt Voucher (F6) is used.
  • Contra Voucher (F4): Used to move money between bank accounts or between cash and a bank.

2. Creating a Bank Ledger

Before recording any entry, you must create a ledger for your bank account.
Follow these steps:

  • Navigate to Tally Gateway → Create → Ledger.
  • Type in the name of the bank (such as "HDFC Bank – Current Account").
  • Choose Bank Accounts under Group.
  • If you want to use bank reconciliation later, provide your account number, IFSC code, and branch information.
  • The ledger should be saved.

3. Recording Bank Entries Manually

If you prefer manual entry, you can record each transaction one by one.

Example 1: Bank Payment Entry

Navigate to Accounting Vouchers > Gateway of Tally → F5: Payment.
Select the bank ledger (HDFC Bank, for example).
Add the narration, check number, and date.
Choose the supplier's ledger in the Particulars column.
Put in ₹29,000.
To accept the voucher, press Enter.

Example 2: Bank Receipt Entry

F6: Receipt Voucher should be opened.
Select the same bank ledger.
Choose the customer ledger under details and input ₹40,000.
Include a description such as "Payment received through NEFT."
Keep the coupon.

Example 3: Bank to Cash or Bank Transfer

If you withdraw ₹20,000 from the bank for office use:

F4: Contra Voucher should be used.
Choose "Cash" under Particulars and your bank account under Account.
Enter the narration and the amount.
The entry should be saved.

4. Importing a Bank Statement in Tally Prime

  • Download your statement in Excel or CSV format from the bank's website.
  • Navigate to Banking > Bank Reconciliation → Bank Ledger.
  • Examine your file after selecting Import Bank Statement.
  • Tally will automatically match entries according to the quantity and date.
  • You can directly record any transactions that are missing and accept the matched ones.

5. Bank Reconciliation

  • Bank reconciliation via open banking.
  • Tally Balance against Bank Balance is displayed on the screen.
  • Put the bank's clearing date on transactions.
  • The difference should be 0 once everything is matched, indicating that your ledger and the bank statement match.
« Previous