Contra Voucher in Double-Entry Mode in TallyPrime: 4 Easy Steps

In TallyPrime, recording contra vouchers for internal transfers between your accounts is most accurate and informative when using double-entry mode.

This method ensures a complete picture of the transaction by reflecting both the source and destination of the funds.

Here’s a detailed explanation of recording contra vouchers in double-entry mode with an example:

1. Recording a Contra Voucher in Double-Entry Mode in TallyPrime:

1. Go To Vouchers:

Launch TallyPrime and navigate to the “Vouchers” menu.

You can use two methods to access the voucher creation screen:

  • Press Alt+G (Go To) and choose “Create Voucher” or type “Vcr” and press Enter.
  • Alternatively, use the shortcut key F4 to directly create a contra voucher.

2. Verify Double-Entry Mode:

While creating the voucher, ensure the voucher type is set to “Contra” (F4).

Double-check that TallyPrime is in double-entry mode by looking for the “Use Single Entry Mode for Payment/Receipt/Contra” setting in F12: Configure.

This setting should be set to “No” for double-entry mode.

3. Enter Transfer Details:

Fill in the following details:

  • Date: The date of the internal transfer.
  • Particulars: A brief description of the transfer, for example, “Transfer from Savings to Current Account.”
  • Double-Entry Focus: Since you’re using double-entry, you need to record both sides of the transaction:
    • Debit: Select the account from which you’re transferring the funds (e.g., Savings Account). This account will be debited as the funds are leaving.
    • Credit: Select the account where you’re transferring the funds to (e.g., Current Account). This account will be credited as the funds are received.
  • Amount: Enter the amount of money being transferred.
  • Narration (Optional): Add a more detailed explanation of the transfer if needed.

4. Save and Verify:

Once you’ve entered the details, press Ctrl+A to save the contra voucher.

Double-check the information for accuracy before saving.

    2. Example: Transferring Funds (Double-Entry Mode):

    Let’s revisit the previous example of transferring ₹10,000 from your Savings Account (Bank A/c 1) to your Current Account (Bank A/c 2) within your business, but this time using double-entry mode:

    • Date: The current date
    • Particulars: Transfer from Savings to Current Account
    • Debit: Bank A/c 1 (Savings Account)
    • Credit: Bank A/c 2 (Current Account)
    • Amount: ₹10,000

    3. Benefits of Double-Entry Mode:

    1. Accuracy:

    Double-entry ensures a complete and accurate record of your financial transactions, reflecting both the decrease in the source account and the increase in the destination account.

    2. Error Detection:

    Double-entry helps identify errors more easily. If your debits and credits don’t balance, it indicates a potential mistake in your entries.

    3. Financial Clarity:

    This mode provides a clear picture of your overall financial position by tracking all movements of funds within your business.

    4. In Conclusion

    Recording contra vouchers in TallyPrime’s double-entry mode is the recommended approach for accurate and informative accounting.

    It ensures a balanced and comprehensive record of your internal transfers, laying the foundation for better financial analysis and decision-making.

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