Transfer of Funds Within Your Accounts in TallyPrime: 4 Easy Steps

In TallyPrime, transferring funds between your own accounts is a simple process using Contra Vouchers.

Here’s a detailed explanation with an example:

1. Understanding Contra Vouchers:

1. Purpose:

Contra vouchers are used to record internal transfers of funds between accounts owned by the same business.

This doesn’t involve any external parties like suppliers or customers.

Common examples include transfers between bank accounts, cash accounts, or clearing accounts.

2. Concept:

Since the money stays within the business, a contra voucher records the movement by debiting (increasing) one account and crediting (decreasing) another account with the same amount.

This ensures the total balance of your business remains unchanged, only the location of the funds within your accounts shifts.

2. Recording a Transfer Using Contra Voucher:

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. Select Voucher Type:

In the voucher creation screen, ensure the voucher type is set to “Contra” (F4). This tells TallyPrime you’re recording an internal transfer.

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 Account to Current Account.”
• Debit and Credit Accounts:
  • 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 all the details, press Ctrl+A to save the contra voucher. Double-check the information for accuracy before saving.

3. Example: Transferring Funds Between Bank Accounts

Let’s say you want to transfer ₹10,000 from your Savings Account (Bank A/c 1) to your Current Account (Bank A/c 2) within your business.

Here’s the contra voucher entry:

• 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

4. Benefits of Using Contra Vouchers in TallyPrime:

1. Accurate Records:

Contra vouchers maintain accurate internal transfer records within your accounting system.

2. Balance Maintained:

They ensure the total balance of your business remains unchanged, reflecting only the movement of funds between accounts.

3. Improved Tracking:

Contra vouchers help track the flow of funds within your business, aiding in financial analysis and decision-making.

5. Additional Tips while Using Contra Vouchers in TallyPrime:

1. Maintain Clear Descriptions:

Use descriptive “Particulars” to identify the purpose of the transfer for future reference.

2. Reconciliation:

Contra vouchers can be helpful when reconciling your bank statements, as they track internal transfers that might impact your account balances.

In conclusion, recording transfers of funds within your accounts in TallyPrime using contra vouchers is a straightforward and efficient process.

By following these steps and understanding the concept, you can maintain accurate internal transfer records and ensure the smooth flow of funds within your business.