VOUCHER ENTRY

VOUCHER : A Voucher is a document containing the details of a transaction.

1) CONTRA VOUCHER (F4) This voucher is used to record fund transfers between cash and Bank Books (Ledgers created under Cash in Hand and Bank Account groups) only. e.g. Cash Deposits in to Bank Account Cash withdrawals from Bank Account Fund transfers between two Bank accounts. RULE: Particulars Source of Funds Destination of Funds Debit Amount Credit Amount

Cr Dr Examples: 1) 2) 3) 4) 5)

Cash balance as on 01/04/2006 is Rs.50,00,000/- and BOI balance Rs.12,00,000/Rs. 33,00,000 deposited in to Bank of India Rs. 12,00,000 deposited into State Bank of India Rs. 20,00,000 withdrawn from Bank of India Rs. 10,00,000 transferred from Bank of India to State Bank of India

2) PAYMENT VOUCHER (F5) This Voucher is used to record all payments made through Cash or Bank Account. These payments can be towards expenses, purchases or to Trade Creditors. RULE: Particulars Ledger A/c Paid to Cash /Bank Account Debit Amount Credit Amount

Dr Cr

All payment vouchers must have at least one Credit to a cash or bank account. Examples: 1) 2) 3) 4) 5) 6) Stationary purchased and paid cash Rs. 12,300/Postal Stamps purchased for Rs. 285/Salaries Paid Rs. 18,750/Purchased furniture worth 28,000/- and issued SBI cheque Staff welfare expenses Rs. 2100/Cash drawn by proprietor 5,500/-

3) RECEIPT VOUCHER (F6) This Voucher is used to record all receipts into Cash or Bank Account. RULE: Particulars Ledger A/c received from Cash /Bank Account Debit Amount Credit Amount

Cr Dr

All receipt vouchers must have at least one Debit entry in to a cash or bank account. Examples: 1) 2) 3) 4) Cash collected from Sri Ram Agencies 9800/Cash Sales 18000/Cheque received from Balaji Enterprises 38000/- and deposited into SBI Plant & Machinery sold for 22,000/- and received cheque.

4) JOURNAL VOUCHER (F7) This Voucher is used to pass for any adjustment between two accounts without affecting cash or bank rectification entry or transfer. parties or any other account. Examples: 1) Depreciation charged on furniture Rs. 2800/5) SALES VOUCHER (F8) This Voucher is used for recording the transactions involving sale of goods. Any transaction involving the sale of goods has to be passed through these vouchers. RULE: Particulars Name of the Buyer Sales Account Debit Amount Credit Amount This adjustment can be between two

Dr Cr

Examples: 1) Sale to Rama & co vide credit bill No. 1/1 2) Sale to Devi & co vide Credit Bill No. 1/2 3) Sale to Raju & co vide Credit Bill No. 1/3 6) PURCHASE VOUCHER (F9) This Voucher is used to record all the purchases made. RULE: Particulars Name of the Seller Purchases Account Debit Amount Rs. 56000/Rs. 72000/Rs. 98000/Credit Amount Rs. 28000/Rs. 14000/Rs. 35000/-

Cr Dr

Examples: 1) Purchase from Raasi & co vide invoice No. 3458 2) Purchase from Vijay & Co vide invoice No. 1200 3) Purchase from Anush & co vide Invoice No. 9872 7) CREDIT NOTE VOUCHER (Ctrl + F8)

Credit notes are generally raised when a buyer returns some goods that sold to him (Sales Returns) Particulars Debit Credit

Cr Dr

Name of the Buyer Sales Account

Amount Amount

8) DEBIT NOTE VOUCHER (Ctrl + F9) Debits Notes are generally raised when we returns some goods to the supplier (Purchase Returns) Particulars Name of the Supplier Purchase Account Debit Amount Credit Amount

Dr Cr

To activate Debit and credits Notes set to YES against use Dr / Cr notes in F11: company features Alt + C Alt + D Ctrl + A Ctrl + Q To Create a Ledger during Data Entry To delete an Entry / Ledger / Group / Company (in voucher alteration mode) To accept the current screen unconditionally To Quit the current screen unconditionally

EXERCISE 1
1. Prasad commenced business with a cash of Rs. 30000 2. Cash sales Rs 4000 3. Bought machinery Rs.15000 4. Sold goods to Raj Kumar Rs.10000 5. Purchased goods from Ramana Rs.8000 6. Sold goods to Gupta Rs.5000 7. Paid for stationary Rs.1000 8. Carriage expenses Rs.500 9. Bought furniture for proprietors residence and paid cash Rs.7000 10. Sold goods to Krishna for cash Rs.3000 11. Received discount Rs.800 12. Paid for wages Rs.1200 13. Sales Rs.15000 14. Deposited cash with SBI Rs.10000 15. Received cash from Mahesh Rs.1500

16. Received interest on loan from Viswanath Rs.600

Ledger Group --------------------------------------------------------------------------------------------1. Prasads capital Capital Accounts 2. Cash Cash-in-hand 3. Sales sales Accounts 4. Machinery Fixed Assets 5. Rajkumar Sundry Debtors 6. Purchases Purchase Accounts 7. Ramana Sundry Creditors 8. Gupta Sundry Debtors 9. Stationary Indirect Expenses 10. Carriage inwards Direct Expenses 11. Drawings Capital Accounts (or) Loans and advances(Asset) 12. Discount received Indirect Income 13. Wages Direct Expenses 14. SBI Bank Accounts 15. Mahesh Sundry Debtors 16. Interest on loan Indirect Income

SOLUTION: Create a company 1. Receipt Voucher 2. Receipt Voucher / Sales Voucher 3. Payment Voucher 4. Sales Voucher 5. Purchase Voucher 6. Sales Voucher 7. Payment 8. Payment 9. Payment 10. Receipt 11. Receipt 12. Payment 13. Sales 14. Contra Voucher 15. Receipt Voucher 16. Receipt Voucher - Prasad Enterprises Cr. Prasad Capital Dr. Cash Cr. Sales Account Dr. Cash Dr. Furniture Cr. Cash Dr. Rajkumar Cr. Sales Accounts Cr. Ramana Dr. Purchases Dr. Gupta Cr. Sales Dr. Stationary Cr. Cash (Capita Accounts Group) (Sales Accounts Group) (Fixed Assets) (Sundry Debtors) (Sundry Creditors) (Purchase Accounts) (Sundry Debtors) (Indirect Expenses)

Dr. Carriage Expenses (Indirect Expenses) Cr. Cash Dr. Drawings Cr. Cash Dr. Cash Cr. Sales Cr. Discount received Dr. Cash Dr. Wages Cr. Cash Dr. Cash Cr. Sales Cr. Cash Dr. SBI Cr. Mahesh Dr. Cash Cr. Interest on Loan Dr. Cash (Bank Accounts) (Sundry Debtors) (Indirect Income) (Indirect Income) (Direct Expenses) (Capital/Loans & Advances)

EXERCISE 1. 2. 3. 4. 5. 6. 7. 8. 9. Pradeep commenced business with a cash of Rs.50000/Deposited with Indian Bank Rs. 10000/Sold goods to Kiran Rs. 20000/Sold goods for cash Rs. 5000/Purchases Rs. 2000/Bought goods from Jeevan Rs. 4000/Returned goods by Kiran Rs. 1000/Paid Telephone bill Rs. 500/Bought furniture and paid by cheque Rs. 12000/-

10. Goods returned to Jeevan Rs.300/11. Paid for advertisement Rs. 1500/12. Commission received Rs. 450/13. Goods sold to Tirumala for cash Rs.5000/14. Interest received from Nagesh Rs. 200/15. Cash received from Lal Rs.2000/16. Received from Kiran Rs. 4000/17. purchased goods from Ramu for cash Rs. 1200/18. Rs. 3650/- paid to Jeevan in full settlement of Rs.3700.00 (Discount received Rs. 50/-) 19. Received cash from Kiran Rs. 14600/- in full settlement of Rs. 15000/- (Discount allowed Rs. 400/-)

Ledger Group --------------------------------------------------------------------------------------------------Pradeeps capital Capital Accounts Cash Cash-in-hand Indian Bank Bank accounts Kiran Sundry Debtors Sales Sales Accounts Purchases Purchase Accounts Jeevan Sundry Creditors Sales Returns Sales Accounts Telephone Charges Indirect Expenses Furniture Fixed Assets Purchase Returns Purchase Accounts Advertisement Expenses Indirect Expenses Recd. Commission Indirect Income Recd. Interest Indirect Income Lal Sundry Debtors Recd. Discount Indirect Income Discount allowed Indirect Expenses Entry
Pradeep commenced business with a cash of Rs.50000/Deposited with Indian Bank Rs. 10000/-

Tally Entry Receipt Voucher Cr. Pradeeps Capital Dr. Cash Contra voucher Cr. Cash Dr. Indian bank

Sold goods to Kiran Rs. 20000/-

Sold goods for cash Rs. 5000/-

Sales Voucher Dr. Kiran Cr. Sales Receipt Voucher (or) Sales Voucher Dr. Cash Cr. Sales Payment Voucher or Purchases Voucher Cr. Cash Dr. Purchases A/c Purchase Voucher Cr. Jeevan Dr. Purchases Journal Voucher Dr.Sales Cr. Kiran Payment Voucher Cr. Cash Dr. Telephone Bill Payment Voucher Dr. Furniture Cr. Indian Bank Journal Voucher Dr. Jeevan Cr. Purchases Payment Voucher Dr. Advt. Expenses Cr. Cash A/c Receipt Voucher Cr. Recd. Commission Dr. Cash Sales Voucher Cr. Sales Dr. Cash Receipt Voucher Cr. Recd. Interest Dr. Cash Receipt Voucher Cr. Lal Dr. Cash Receipt Voucher Cr. Kiran Dr. Cash Purchase Voucher / Payment

Purchases Rs. 2000/-

Bought goods from Jeevan Rs. 4000/-

Returned goods by Kiran Rs. 1000/-

Paid Telephone bill Rs. 500/-

Bought furniture and paid by cheque Rs. 12000/-

Goods returned to Jeevan Rs.300/-

Paid for advertisement Rs. 1500/-

Commission received Rs. 450/-

Goods sold to Tirumala for cash Rs.5000/-

Interest received from Nagesh Rs. 200/-

Cash received from Lal Rs.2000/-

Received from Kiran Rs. 4000/-

purchased goods from Ramu for cash Rs. 1200/-

Rs. 3650/- paid to Jeevan in full settlement of Rs.3700.00 (Discount received Rs. 50/-)

Cr. Cash Dr. Purchases Payment Voucher Dr. Jeevan Cr. Cash Cr. Recd. Discount Receipt Voucher Cr. Kiran A/c Dr. Cash A/c Dr. Discount allowed

Received cash from Kiran Rs. 14600/- in full settlement of Rs. 15000/- (Discount allowed Rs. 400/-)

EXERCISE
1. 2. 3. 4. 5. 6. 7. 8. 9. Manohar commenced business Purchased Goods from Ravi Sold goods to Gopi Cash purchases Paid for salaries Sold for cash Bought furniture paid by cheque Bought goods from Sobhan Cash paid to Ravi 100000 10000 20000 20000 5000 15000 2000 10000 9800 19500 10000 700 800 1700 4000 500 1000 Discount received 200 Discount allowed 500

10. Received cash from Gopi, 11. Deposited with Bank 12. Paid for advertisement by cheque 13. Stationary expenses 14. Sold old furniture 15. Paid cash to Sobhan 16. Received Interest through cheque 17. Proprietors personal use

Ledger Group -------------------------------------------------------------------------------------Manohars capital Capital Accounts Cash Cash-in-hand Purchases purchase accounts Ravi sundry Creditors Sales sales accounts Gopi sundry Debtors Salaries indirect expenses Furniture fixed assets IDBI bank accounts Sobhan sundry creditors Recd. Discount indirect income Discount allowed indirect expenses Advt.expenses indirect expenses Stationary expenses indirect expenses Recd. Interest indirect income Drawings capital (or) loans & advances (Asset)

Entry
Manohar commenced business 100000

Tally Entry Receipt Voucher Cr. Manohar Capital Dr. Cash Purchase voucher Cr. Ravi Dr. Purchases Sales Voucher

Purchased Goods from Ravi

10000

Sold goods to Gopi 20000

Cash purchases 20000

Paid for salaries 5000

Dr. Gopi Cr. Sales Payment / Purchases Dr. Purchases Cr. Cash Payment Voucher Dr. Salaries Cr. Cash Sales / Receipt Voucher Dr. Cash Cr. Sales Payment voucher Dr. Furniture Cr. SBI Purchase Voucher Cr. Sobhan Dr. Purchases Payment Voucher Dr. Ravi Cr. Cash Cr. Recd. Discount Receipt voucher Cr. Gopi Dr. Cash Dr. Discount allowed Contra voucher Cr. Cash Dr. SBI Payment Voucher Dr. Advertisemet Cr. SBI Payment Voucher Dr. Stationary Cr. Cash Receipt Voucher Cr. Furniture Dr. Cash Payment voucher Dr. Sobhan Cr. Cash Receipt voucher Cr. Received interest Dr. SBI Payment Voucher Dr. Drawings Cr. Cash

Sold for cash 15000

Bought furniture paid by cheque 2000

Bought goods from Sobhan 10000

Cash paid to Ravi 9800; Discount received

200

Received cash from Gopi 19500; Discount allowed 500

Deposited with SBI 10000

Paid for advertisement by cheque 700

Stationary expenses 800

Sold old furniture 1700

Paid cash to Sobhan 4000

Received Interest through cheque 500

Proprietors personal use 1000

EXERCISE
1. Uday Kumar Started Indra Communications by bringing Rs. 150000 in cash Journal Entry Tally Entry Uday Kumars capital A/c Dr Uday Kumar capital under Capital A/c To Cash A/c Receipt Voucher Cr. Uday Kumar Capital Dr. Cash 2. Mr. Kumar borrowed a loan of Rs. 50000 from Vivek for his business Journal Entry Vivek Loan A/c Dr To Cash Tally Entry Vivek Loan A/c under Loans (Liability ) Group Receipt Voucher Cr. Viveks Loan A/c Dr. Cash A/c

3. Mr. Kumar opened a bank account with Syndicate Bank, Banglore for the firm by depositing cash of Rs.100000 Journal Entry Syndicate Bank A/c Dr To Cash A/c Tally Entry Syndicate Bank A/c under Bank Accounts Contra Voucher Cr. Cash Dr. Syndicate Bank

4. Indra communications rented an office space for Rs.3000 per month on April 2005. A security deposit of Rs. 25000 was paid by cheque. Journal Entry Security Deposit (Office) Dr To Syndicate Bank Tally Entry Security Deposit (Office) under Deposits Payment Dr. Security Deposit (Office) Cr. Syndicate Bank He also

5. Mr. Kumar hired Ranjith as Manager-Operations on a monthly salary of Rs.6000. hired Sirisha as Asst. Manager Marketing on a monthly salary of Rs.4000. Journal Entry No Entry required 6. Cheques were issued for purchase of the following fixed assets. 1. Office equipment for Rs.6000 2. Electrical fittings for Rs. 4000 3. A Cellular phone for office usage for Rs.5000 Journal Entry Office Equipment A/c Dr Electrical Fitting A/c Dr Cellular Phone A/c Dr To Syndicate Bank A/c Tally Entry

Tally Entry Office Equipment A/c Electrical Fitting A/c Cellular Phone A/c under Fixed Assets A/c Payment Voucher Dr. Office Equipment A/c Dr. Electrical Fitting A/c Dr. Cellular Phone A/c Cr. Syndicate Bank A/c

7. Stationary consumables worth Rs.8000 were purchased by cash Journal Entry Stationary A/c Dr To Cash A/c Tally Entry Stationary A/c under Indirect Expenses Payment Dr. Stationary Cr. Cash

8. The firm purchased a computer for Rs.25000 from Apex computers on credit Journal Entry Computer A/c Dr To Apex Computers A/c Tally Entry Computer under Fixed Assets Apex Computers under Sundry Creditors Journal Voucher Dr. Computer Cr. Apex Computers

9. Mr. Kumar entered into a contract with Sunshine agencies providing professional consultancy services for Rs.35000. He received an advance of Rs.15000 by cheque Journal Entry Tally Entry Create a group Advance from customers under Current Liabilities Create a ledger Advance consulting revenue under Advance from customers group Receipt Voucher Cr. Advance Consulting revenue Dr. Syndicate Bank 10. Deposited cash of Rs. 25000 into bank Journal Entry Syndicate Bank A/c Dr To Cash Tally Entry Contra Voucher Cr. Cash Dr. Syndicate bank

11. Mr. Kumar withdrew Rs.75000 cash for his personal use. Journal Entry Withdrawals A/c Dr To Cash Tally Entry Withdrawals A/c under Capital Account Payment Voucher Dr. Withdrawals Cr. Cash

12. A cheque of Rs. 3000 was paid towards office rent for the month of April 2005 Journal Entry Rent A/c Dr To Cash Tally Entry Rent A/c under Indirect Expenses Payment Voucher Dr. Rent A/c Cr. Syndicate Bank

13. Paid Rs. 1200 in cash towards electricity charges for April 2005 Journal Entry Electricity Charges A/c Dr To Cash Tally Entry Ele. Charges under Indirect Expenses Payment Voucher Dr. Electricity Charges Cr. Cash

14. Paid salaries by cheque for the month of April 2005 Journal Entry Salaries A/c Dr To Syndicate Bank Tally Entry Salaries A/c under indirect Expenses Payment Voucher Dr. Salaries A/c Cr. Syndicate Bank

15. Received consulting charges of Rs.28000 by cheque from a client for an advt. campaign run by the firm. Journal Entry Tally Entry Consulting Revenue Under Direct Income Receipt Voucher Cr. Consulting Revenue Dr. Syndicate Bank

16. Paid Rs. 600 in cash towards conveyance expenses Journal Entry Tally Entry Conveyance under Indirect Expenses Payment Voucher Dr. Conveyance Cr. Cash

17. Received a cheque of Rs. 25000 for designing the brochures for a promotional campaign of Vijay Entertainment services. Journal Entry Tally Entry Receipt Voucher Cr. Consulting Revenue Dr. Syndicate Bank

18. Purchased furniture and fittings worth Rs.50000 by cheque for the office. Journal Entry Tally Entry Furniture under fixed Assets Payment Voucher Dr. Furniture Cr. Syndicate bank 19. Mr. Kumar withdrew Rs. 6000 cash for personal use. Journal Entry Tally Entry Payment Voucher Dr. Withdrawals Cr. Cash

20. Paid Rs. 500 in cash towards miscellaneous expenses Journal Entry Tally Entry Miscellaneous expenses under indirect expenses Payment Voucher Dr. Miscellaneous expenses Cr. Cash

21. Paid Rs. 3000 by cheque towards office rent for May 2005 Journal Entry Tally Entry Payment Voucher Dr. Rent A/c Cr. Syndicate Bank

22. Paid salaries by cheque for May 2005 Journal Entry Tally Entry Payment Voucher Dr. Salaries A/c Cr. Syndicate Bank

23. Received Rs.35000 by cheque from Auto Graphics for services provided by the firm. Journal Entry Tally Entry Receipt Voucher Cr. Consulting Revenue Dr. Syndicate Bank

24. Paid Rs.1450 by cash for mobile phone bill charges for two months (May and June) Journal Entry Tally Entry Cell Phone Charges under Indirect Expenses Payment Voucher Dr. Cell phone Charges Cr. Cash

25. Raised an invoice of Rs.35000 for services rendered by the firm to sunshine agencies and received Rs. 20000 after adjusting Rs.15000 which was received as advance on 15-04-2008. Journal Entry Tally Entry Receipt Voucher Cr. Consulting Revenue Dr. Cash Dr. Advance Consulting Revenue

26. Paid conveyance bills for Rs. 850 in cash to Ranjith Journal Entry Tally Entry Payment Voucher Dr. Conveyance Cr. Cash

27. Paid Rs.1450 in cash towards electricity charges for May 2008 Journal Entry Tally Entry Payment Voucher Dr. Electricity Charges Cr. Cash

28. Deposited cash of Rs. 10000 into bank Journal Entry Tally Entry Contra Voucher Cr. Cash Dr. Syndicate bank 29. Paid Rs.1250 in cash towards office maintenance chares for two months. Journal Entry Tally Entry Office Maintenance under I E Payment Voucher Dr. Office Maintenance Cr. Cash

30. Paid Rs.100000 by cheque for the purchase of two motor vehicles for office use. Journal Entry Tally Entry Motor Vehicles under Fixed Assets Payment Voucher Dr. Motor Vehicles Cr. Syndicate bank

31. The firm utilized the services of Mr. Suresh for the Sunshine Agencies contract and paid him a cheque of Rs.21000 as consultancy charges. Journal Entry Tally Entry Consultancy Charges under Direct Expenses Payment Voucher Dr. Consultancy Charge Cr. Syndicate Bank

32. Mr. Kumar withdrew Rs. 5000 cash for personal use. Journal Entry Tally Entry Payment Voucher Dr. Withdrawals Cr. Cash

BILL WISE DETAILS

Depending on the requirements, vouchers can be recorded with simple information and additional information. Through the additional information tally allows to reconcile the bill wise outstanding of Debtors and Creditors Note: To activate this feature in Tally set to YES against Maintain Bill wise Details in F11: Features. When making voucher entry to a ledger needing Bill wise details, the following information to be entered. TYPES OF REFERENCE: 1. New Ref 2. Against Ref 3. Advance 4. On Account New Ref Agnst. Ref Advance On Account : : : : This option has to be selected if the transaction is a fresh transaction. it will add this bill to the list of outstanding. This option has to be selected to adjust against any outstanding bill. this reduces the outstanding amount to the extent of the adjusted bill. This option has to be selected any amount paid in advance towards for a future sale or purchase. all transactions for which we do not have any reference. : : : : Sales, Purchases Payment, Receipt Payment, Receipt Payment, Receipt

EXERCISE
Create a company named Lalita Industries and enter the following vouchers: 1) Purchased from Viswaprabha Enterprises Rs.65000/2) Purchased goods from Johnson Laboratories 100000/3) Advance paid to Nataraj syndicate for supply of bearings Rs. 25000/4) Purchase of bearings from Nataraj syndicate Rs. 225000/5) Purchase of Nuts & Bolts from Lakshmi enterprises 75000/6) Cheque received from somanath chatarjee Rs.75000/- for supply of goods as advance 7) Sale of goods to somanath chatarjee 226000/8) Sale of scrap (used car) to Jilani traders 350000/- (Book value of 338131.23) 9) Cheque received from somanath chatarjee 150000/10) Cheque received from jilani traders 230000/11) Cheque issued to Lakshmi Traders 30000/12) Cheque issued to Nataraj Syndicate 225000/13) Cheque issued to Johnson Laboratories 98000/-

14) Cheque issued to Viswaprabha Enterprises 35000/-

Transaction To record all sale of goods To record all purchase of goods To record all return inwards To record all return outwards To record sale / purchase of asset To record bank transactions Cash transaction Sales Cash sales Sold goods Sold goods to Jyothi for cash Sold goods for cash Credit transaction Sold goods to Jyothi Cash transaction purchases Cash purchases Purchased goods Purchased goods from Jyothi for cash Purchased goods for cash Credit transaction Purchased goods from Jyothi

Ledger a/c involved Sales Accounts Purchases A/c Sales returns a/c Purchase returns Asset a/c Ex: Furniture A/c Bank A/c Cash a/c Sales A/c

Jyothi A/c Sales A/c Cash a/c Purchases A/c

Jyothi A/c Purchases A/c

1. 2. 3. 4. 5. 6. 7. 8. 9.

Jyothi started business with cash Rs. 100000 Deposited cash in SBI Rs. 90000 Sold goods to chinna and received cheque Rs. 50000 Purchased machinery and issued cheque Rs. 15000 Paid wages through cheque Rs. 15000 Received cheque from santoshi RS. 25000 Sold old furniture and received cheque Rs. 5000 Purchased goods worth 25000 and issued cheque Sold goods and received cheque Rs. 32000