How to make Contra voucher entry in Tally ERP 9
Contra Entries: This voucher is used to record the entries of transfer of money from the bank to cash or cash to a bank account.
With the help of contra voucher, you can make an entry which is related to cash and bank both. Like Cash deposited into your bank account, Cash withdrawals from your bank account either from Cheque / DD / ATM or any other media and also you can make entry to transfer amount from one bank account to another bank account using this voucher.
To make contra entries in tally you have to make Bank ledger in tally
Steps In Tally for Contra entry
which will we made in the following the way
- Go to gateway of tally
- Now to accounting info
- now go to the ledger
- go to create
- Under Name type name of the bank: SBI Bank
- Inventory value is affected No
- save the ledger
Note: Cash ledger is created by a tally by default, therefore, there is no need to create cash ledger.We can make an alteration in cash ledger but cannot delete it otherwise the company will be deleted.
Now go to gateway
- Go to accounting voucher
- Press F4 key for contra entry
Suppose the journal entry is Deposited Rs 50,000 into the bank.
As here contra entry is made in F4 key, therefore, all the bank deposits and bank withdrawal are made into contra entry.
all entries of the bank to cash and cash to the bank will be made in contra
here credit Cash A/c by 50,000
and similarly, debit bank account by 50,000
Example of contra entry
Cash transfer to petty cash account Rs 10,000
Under such condition
- New ledger is created Petty cash Account Under (cash)
- now pass the following entry in tally
- go to the gateway of Tally > Accounting voucher > press F4
- Dr petty cash A/c with Rs 10,000
- Cr. Cash A/c with Rs 10,000
Sometimes in business when cash is taken out for small expenses during the day
A journal entry needs to be passed
- Withdrawal a sum of Rs 2000 for petty cash
- Now Petty cash is amount used for daily therefore ledger with the name Petty cash is prepared under Cash in hand
Contra Voucher entry in Single entry mode:
Contra Voucher entry will be passed through using Single entry mode or Double Entry mode. To toggle between Single Entry and Double Entry mode, we need to change the setting in the F12 configuration:
Use Single Entry mode for Pymt/Rcpt/Contra to Yes/No in F12 configuration.
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
Contra entry is made for following payment of receipts such as:
- Bank Account to Cash account:
It means when money is withdrawn from the bank for office use that can be through cheque or ATM or through bank withdrawal form.
- Bank account to Bank account
It means when we have two bank account such as ICICI bank account and HDFC Bank account and when we transfer funds from one bank account to another under such system we make contra entry in tally.
- Cash account to Bank account
It means when cash is deposited into bank received from any business source.
- Cash account to Cash account.
such contra entry will be made when we have to use cash for petty cash account or money given to junior accountant for daily expenses under such condition a separate account is made under petty cash under cash group in a tally.
See also: petty cash book in tally