Tally Basic Entry: Step-by-Step Guide with Examples

Table of Contents

Introduction

Most beginners do not struggle with TallyPrime because the software is too complicated. The confusion usually starts one step earlier: they are not sure what kind of transaction they are dealing with.

A customer has paid ₹20,000. Should you enter a Receipt or Sales voucher? Cash has been deposited into the bank. Is that a Payment entry or Contra entry?

A supplier has been paid for goods purchased last week. Should you record another Purchase voucher?

These are basic accounting questions, but they directly affect how you work in TallyPrime.

A Tally basic entry is simply the recording of a business transaction under the correct accounts and through the appropriate voucher. TallyPrime provides separate vouchers for common transactions such as payments, receipts, purchases and sales. It also allows masters such as ledgers to be created while you are entering transactions, so you do not necessarily have to prepare every ledger in advance.

This guide focuses on the entries a beginner is most likely to use in everyday bookkeeping. Instead of treating voucher shortcuts as something to memorise, we will look at what each entry actually means.

Once that part is clear, TallyPrime becomes much easier to use.

What are basic accounting entries?

An accounting entry records a financial event in the books of a business. Suppose a shop pays ₹8,000 as monthly rent from its bank account. Two things happen at the same time:

rent expense increases;
the bank balance decreases.

The accounting entry is:

Rent A/c Dr ₹8,000
Bank A/c Cr ₹8,000

Now take a credit sale.

The business sells goods worth ₹25,000 to Raj Enterprises. The customer does not pay immediately.

The entry is:

Raj Enterprises A/c Dr ₹25,000
Sales A/c Cr ₹25,000

The sale has already happened, so Sales is credited. Raj Enterprises is debited because the customer now owes the business ₹25,000.

This two-sided effect is the basis of double-entry accounting.

A simple way to understand debit and credit

Debit does not always mean money coming in, and credit does not always mean money going out. That shortcut causes problems very quickly.

The treatment depends on the type of account.

Account type	When it increases	When it decreases
Asset	Debit	Credit
Expense	Debit	Credit
Liability	Credit	Debit
Capital	Credit	Debit
Income	Credit	Debit

You can see the pattern more easily through actual transactions.

If office stationery is purchased for cash:

Stationery Expense A/c Dr
Cash A/c Cr

If money is received from a customer:

Bank A/c Dr
Customer A/c Cr

If goods are purchased on credit:

Purchase A/c Dr
Supplier A/c Cr

For a beginner, working through real transactions is more useful than trying to memorise accounting rules in isolation.

Types of basic entries in TallyPrime

TallyPrime has different voucher types because different transactions need to be recorded differently.

The main accounting vouchers used in routine work are Contra, Payment, Receipt, Journal, Sales and Purchase. Current TallyPrime shortcuts use F4 to F9 for these vouchers. Credit Note and Debit Note are opened with Alt+F6 and Alt+F5 respectively.

Voucher	Shortcut	Used mainly for
Contra	F4	Cash and bank transfers
Payment	F5	Money paid
Receipt	F6	Money received
Journal	F7	Accounting adjustments
Sales	F8	Sales transactions
Purchase	F9	Purchase transactions
Credit Note	Alt+F6	Sales returns or adjustments
Debit Note	Alt+F5	Purchase returns or adjustments

Contra voucher

A Contra voucher is normally used when money moves between the business’s own cash and bank accounts. Examples include depositing cash into a bank, withdrawing money from a bank for office use, or transferring funds between two business bank accounts.

Suppose ₹30,000 is deposited from Cash into HDFC Bank.

HDFC Bank A/c Dr ₹30,000
Cash A/c Cr ₹30,000

The money has not been spent. It has only moved from one asset account to another.

Payment voucher

A Payment voucher records money paid by the business. This could be rent, salary, electricity expense, a supplier payment or another outgoing amount.

If ₹12,000 is paid to a supplier through bank:

Supplier A/c Dr ₹12,000
Bank A/c Cr ₹12,000

The supplier balance decreases because part of the outstanding amount has been paid.

Receipt voucher

A Receipt voucher is used when money is received.

Suppose a customer pays ₹18,000 through the bank.

Bank A/c Dr ₹18,000
Customer A/c Cr ₹18,000

The bank balance goes up. The customer’s outstanding balance goes down.

Purchase voucher

Purchase vouchers record purchases made by the business.

If goods worth ₹40,000 are bought on credit from XYZ Traders:

Purchase A/c Dr ₹40,000
XYZ Traders A/c Cr ₹40,000

If the same goods are purchased for cash, Cash replaces the supplier account on the credit side.

Sales voucher

Sales vouchers record sales of goods or services.

For a credit sale of ₹35,000:

Customer A/c Dr ₹35,000
Sales A/c Cr ₹35,000

For a cash sale:

Cash A/c Dr
Sales A/c Cr

Journal voucher

Journal vouchers are mainly useful for adjustments where a dedicated sales, purchase, payment or receipt voucher is not the natural choice.

Depreciation is a common example.

If ₹5,000 depreciation is recorded on furniture, the entry may be:

Depreciation A/c Dr ₹5,000
Furniture/Accumulated Depreciation A/c Cr ₹5,000

The exact credit account depends on the accounting method being followed.

Basic ledger setup required before entries

A voucher cannot be meaningful unless the correct ledgers are used. A ledger represents an account in TallyPrime. That account might be a customer, supplier, bank, expense, income account or asset.

For example:

SBI Bank is a ledger;
Office Rent is a ledger;
Mohan Traders is a ledger;
Sales is a ledger.

TallyPrime allows masters to be created in advance or while transactions are being entered.

Common ledgers and their groups

Ledger	Common group
Customer	Sundry Debtors
Supplier	Sundry Creditors
Bank account	Bank Accounts
Cash	Cash-in-Hand
Sales	Sales Accounts
Purchase	Purchase Accounts
Rent	Indirect Expenses
Salary	Indirect Expenses
Furniture	Fixed Assets
Owner’s Capital	Capital Account

The group matters because TallyPrime uses ledger classification while preparing reports. A customer placed under the wrong group may not appear correctly in receivables.

A supplier should normally be created under Sundry Creditors if the business needs to track the amount payable to that supplier. An expense such as office rent usually belongs under an expense group, not under an asset or party group.

Creating a ledger while entering a voucher

If a ledger is missing during voucher entry, TallyPrime supports creating a master from the voucher screen using Alt+C in applicable fields.

That is useful when a new customer or supplier needs to be added immediately. Still, check the existing list first.

Duplicate ledgers are easy to create accidentally. “XYZ Traders”, “A.B.C. Traders” and “XYZ Trader” may end up representing the same supplier in three different accounts. Cleaning that up later is much harder than checking the name at the time of entry.

Step-by-step process for entering a basic voucher

The details vary by voucher, but the basic flow remains fairly consistent.

Open TallyPrime and select the company.
Open the Vouchers screen.
Choose the required voucher.
Check the transaction date.
Select the relevant party, bank, cash or expense ledger.
Enter the amount or stock details.
Add invoice or bill information where needed.
Enter narration if it helps explain the transaction.
Review the accounts and amount.
Save the voucher.

TallyPrime also allows users to open a voucher from Go To and choose the required voucher type from there. The step that deserves the most attention is voucher selection.

If the transaction itself is misunderstood, the rest of the entry may look technically correct while still posting to the wrong accounts.

How to enter a Contra voucher

Assume the business deposits ₹25,000 cash into Axis Bank.

The accounting entry is:

Axis Bank A/c Dr ₹25,000
Cash A/c Cr ₹25,000

To record it:

Open Vouchers.
Press F4.
Select the relevant bank and cash ledgers.
Enter ₹25,000.
Add bank details if required.
Enter a short narration such as “Cash deposited into Axis Bank”.
Save the voucher.

Now reverse the situation.

The business withdraws ₹6,000 from Axis Bank for petty cash.

The entry is:

Cash A/c Dr ₹6,000
Axis Bank A/c Cr ₹6,000

Nothing has been purchased. No expense has been incurred merely because cash was withdrawn.

That is why a bank withdrawal for office cash should not be confused with an expense payment.

How to enter a Payment voucher

Suppose the business pays office rent of ₹15,000 through SBI Bank.

The entry is:

Office Rent A/c Dr ₹15,000
SBI Bank A/c Cr ₹15,000

To record it:

Press F5 to open Payment.
Select SBI Bank.
Select Office Rent.
Enter ₹15,000.
Add narration.
Review the entry.
Save.

Payment vouchers are also used when settling supplier balances.

Suppose goods worth ₹30,000 were purchased from Ajay Traders last week and the Purchase voucher was already recorded.

Today, the business pays ₹20,000 to Ajay Traders.

The correct payment entry is:

Ajay Traders A/c Dr ₹20,000
Bank A/c Cr ₹20,000

There is no second Purchase entry.

The purchase was recorded when the goods were bought. Today’s transaction only records the settlement of part of the supplier balance. This distinction matters because duplicate purchase entries inflate both purchases and payables.

How to enter a Receipt voucher

Suppose Neha Enterprises owes the business ₹40,000 and pays ₹15,000 by bank transfer.

The entry is:

Bank A/c Dr ₹15,000
Neha Enterprises A/c Cr ₹15,000

To record it:

Press F6 for Receipt.
Select the bank receiving the money.
Select Neha Enterprises.
Enter ₹15,000.
Match the amount against the correct bill if bill-wise tracking is enabled.
Add narration.
Save.

The ₹15,000 is not another sale.

The Sales voucher should already have recorded the original sale. This Receipt entry simply shows that the customer has now paid part of the amount due. If the customer originally owed ₹40,000, the outstanding balance becomes ₹25,000 after this payment.

How to enter a Purchase voucher

Suppose a business purchases stock worth ₹50,000 on credit from City Distributors.

The entry is:

Purchase A/c Dr ₹50,000
City Distributors A/c Cr ₹50,000

To enter the transaction:

Press F9.
Select City Distributors.
Enter the supplier invoice details where required.
Choose the purchase ledger.
Add stock items if inventory is maintained.
Enter quantity and rate.
Add applicable tax details.
Check the total.
Save.

If the purchase is made for cash instead:

Purchase A/c Dr ₹50,000
Cash A/c Cr ₹50,000

The purchase itself has not changed. Only the payment method has.

For inventory-based purchases, TallyPrime supports modes in which quantity, rate and stock-item information can be recorded. Sales and purchase workflows can also be changed between suitable voucher modes where required.

How to enter a Sales voucher

Suppose goods worth ₹28,000 are sold on credit to Aryan Stores.

The entry is:

Aryan Stores A/c Dr ₹28,000
Sales A/c Cr ₹28,000

To record the sale:

Press F8.
Select Aryan Stores.
Choose the correct sales ledger.
Add stock items if required.
Enter quantity and rate.
Add tax details where applicable.
Check the invoice value.
Save.

TallyPrime’s sales workflow uses F8 for Sales and allows party ledgers or masters to be created from the transaction screen where needed.

If the customer pays immediately, the customer ledger may be replaced by Cash or the relevant payment account, depending on how the transaction is being recorded.

The important question is simple: has the customer paid now, or does the customer still owe the business? That determines whether an outstanding balance should remain.

How to enter a Journal voucher

Journal vouchers make more sense when the entry is an accounting adjustment rather than a routine business receipt or payment.

Suppose salary of ₹20,000 relates to the current month but has not yet been paid. A simplified outstanding expense entry may be:

Salary A/c Dr ₹20,000
Outstanding Salary A/c Cr ₹20,000

This recognises the expense in the correct period even though the payment will happen later. Journal entries require more care because the user is deciding the debit and credit treatment directly.

Use Journal when the accounting situation calls for it. Do not choose it merely because it allows direct debit-credit entry.

Common basic Tally entries at a glance

The following examples cover transactions beginners encounter frequently.

Transaction	Debit	Credit	Voucher
Cash deposited into bank	Bank	Cash	Contra
Cash withdrawn from bank	Cash	Bank	Contra
Rent paid	Rent	Cash/Bank	Payment
Supplier paid	Supplier	Cash/Bank	Payment
Customer payment received	Cash/Bank	Customer	Receipt
Goods purchased for cash	Purchase	Cash	Purchase
Goods purchased on credit	Purchase	Supplier	Purchase
Goods sold for cash	Cash	Sales	Sales
Goods sold on credit	Customer	Sales	Sales

Use this as a reference, not as a substitute for understanding the transaction. Two transactions can involve the same amount and still require different vouchers.

How to Choose the Correct Voucher

Choosing the right voucher becomes much easier when you focus on the nature of the transaction instead of trying to memorise every possible entry. Start by asking one simple question: what actually happened in the business?

If cash is being deposited into a bank, withdrawn from a bank, or transferred between your own bank accounts, a Contra Voucher is generally the right choice. If the business is making a payment, such as paying rent, electricity charges, salary or a supplier, use a Payment Voucher.

If money is being received from a customer or another source, use a Receipt Voucher. For goods or services purchased by the business, use a Purchase Voucher. For goods or services sold, use a Sales Voucher.

A Journal Voucher is more suitable for accounting adjustments such as depreciation, outstanding expenses or other entries that do not fit naturally into the regular payment, receipt, purchase or sales flow.

Returns and related adjustments are usually handled through Credit Notes or Debit Notes, depending on whether the transaction relates to a sale or a purchase.

A practical way to remember this is:

Money moves between your own cash and bank accounts → Contra
Money goes out → Payment
Money comes in → Receipt
You buy something → Purchase
You sell something → Sales
You make an accounting adjustment → Journal

Once you understand the purpose of each voucher, selecting the correct one becomes much more straightforward.

Cash entry and credit entry are not the same

A cash sale and a credit sale both increase sales, but they do not affect the same account on the debit side.

For a ₹10,000 cash sale:

Cash A/c Dr ₹10,000
Sales A/c Cr ₹10,000

For a ₹10,000 credit sale:

Customer A/c Dr ₹10,000
Sales A/c Cr ₹10,000

The Sales account is the same in both cases. The difference is where the money is. In the cash sale, the business has already received it. In the credit sale, the customer still owes it. The same logic applies to purchases. A cash purchase reduces cash immediately. A credit purchase creates an amount payable to a supplier. Understanding that difference will prevent many mistakes in customer and supplier balances.

Why basic entries matter in TallyPrime

Every financial report is built from the entries already recorded. If the entries are wrong, the reports will also be wrong. Suppose a customer receipt is entered as a new sale. Revenue becomes overstated.

Suppose a supplier payment is entered as another purchase. Purchases and liabilities can both become misleading. Suppose Office Rent is grouped incorrectly. It may appear in the wrong place in the accounts.

Correct basic entries help keep bank balances, customer dues, supplier dues, expenses and revenue dependable. They also make it easier to review the business later instead of trying to reconstruct what happened from bank statements and invoices.

How to check whether an entry is correct

Do not judge an entry only by whether TallyPrime allows you to save it.

Check the result.

Review the Day Book

The Day Book contains daily transaction records and can be viewed for selected periods and transaction types.

Look at the date, voucher type, party and amount.

If the wrong voucher appears there, investigate the entry before moving on.

Open the ledger

TallyPrime’s Ledger Vouchers report shows transactions belonging to a selected ledger.

If you received ₹10,000 from a customer, the customer’s balance should reduce.

The cash or bank balance should increase.

That simple check often catches mistakes immediately.

Check the Trial Balance

The Trial Balance summarises ledger balances and helps verify debit and credit totals.

A Trial Balance that agrees mathematically does not prove that every ledger was chosen correctly, but unusual balances can point you towards entries that need review.

Common mistakes while making basic entries

One of the most common mistakes is confusing payment with purchase. Buying goods and paying the supplier may happen on different days. They are two different events.

Another mistake is treating customer receipts as sales. The sale should be recorded once. The later receipt records collection of the outstanding amount.

Wrong ledger grouping also causes problems. A customer under Sundry Creditors or a supplier under Sundry Debtors can make outstanding reports difficult to interpret.

Duplicate ledgers are another regular issue. A small change in spelling can split one party’s transactions across several accounts.

Dates deserve attention too. An entry posted to the wrong month can affect period-wise reports even if the amount is correct.

Finally, do not use Journal as a default option simply because it appears flexible. Routine transactions are usually easier to understand later when they are recorded through their proper voucher types.

Practice basic entries yourself

Consider a small business with these transactions:

The owner introduces ₹1,00,000 cash as capital.
₹35,000 is deposited into ICICI Bank.
Goods worth ₹22,000 are purchased on credit from Metro Traders.
Goods worth ₹9,000 are sold for cash.
Goods worth ₹18,000 are sold on credit to Aman Stores.
Aman Stores pays ₹8,000 through bank.
₹12,000 is paid to Metro Traders.
Office rent of ₹6,000 is paid in cash.

Try to identify the debit, credit and voucher before checking the answers.

Transaction	Debit	Credit	Voucher
Capital introduced	Cash	Capital	Opening/appropriate entry
Cash deposited into bank	ICICI Bank	Cash	Contra
Credit purchase	Purchase	Metro Traders	Purchase
Cash sale	Cash	Sales	Sales
Credit sale	Aman Stores	Sales	Sales
Customer payment	Bank	Aman Stores	Receipt
Supplier payment	Metro Traders	Bank	Payment
Rent paid	Rent	Cash	Payment

If you can explain why each account is debited or credited, you are learning the right part of Tally. The shortcut keys will follow naturally.

Useful TallyPrime Shortcuts for Beginners

You do not need to memorise every TallyPrime shortcut when you are just starting out. It is better to begin with the shortcuts connected to the vouchers you use most often in daily accounting.

Shortcut	Action
F4	Contra
F5	Payment
F6	Receipt
F7	Journal
F8	Sales
F9	Purchase
Alt+F6	Credit Note
Alt+F5	Debit Note
Alt+C	Create a master where supported
Alt+G	Go To

These shortcuts can save time once you are comfortable with the basic voucher flow.

For example, instead of moving through menus every time, you can press F5 to open Payment, F6 for Receipt, or F8 for Sales directly.

That said, shortcut keys are only useful when you already know which voucher the transaction requires.

If you want to learn more keyboard commands beyond these basic entries, you can also check our detailed guide on TallyPrime shortcut keys, where we cover navigation, voucher entry, report viewing and other commonly used shortcuts in one place.

For beginners, the best approach is simple: first understand the transaction, then use the shortcut to enter it faster.

Frequently asked questions

What is a basic entry in Tally?

A basic entry is the recording of an everyday business transaction in TallyPrime through the appropriate ledger accounts and voucher.

Which basic vouchers should a beginner learn first?

Start with Contra, Payment, Receipt, Sales and Purchase. Journal can be learned after you are comfortable with routine transactions.

What is F4 used for in TallyPrime?

F4 opens the Contra voucher. It is commonly used for transfers between the business’s own cash and bank accounts.

What is F5 used for?

F5 opens the Payment voucher in TallyPrime.

What is F6 used for?

F6 opens the Receipt voucher.

What is the difference between Payment and Contra?

Payment is generally used when money is paid to a supplier, expense account or another party.

Contra is generally used when money moves between the business’s own cash and bank accounts.

Which voucher is used for a credit sale?

A credit sale is normally recorded through the Sales voucher using the customer ledger.

Which voucher is used for a credit purchase?

A credit purchase is normally recorded through the Purchase voucher using the supplier ledger.

Can I create a ledger while making an entry?

Yes. TallyPrime supports creating masters during voucher entry, and Alt+C can be used in applicable fields to create a master on the fly.

How do I check an entry after saving it?

Review the Day Book, the affected ledger and the relevant cash or bank balance. You can also inspect the Trial Balance when checking overall ledger balances.

Should every entry be made through Journal?

No. TallyPrime has dedicated vouchers for payments, receipts, sales, purchases and other common transactions. Use Journal where the accounting adjustment itself calls for it.

Conclusion

Learning Tally basic entry becomes much easier once you understand the purpose behind each transaction.

A cash deposit into the bank is not an expense. A customer payment is not a new sale. A supplier payment is not another purchase. Getting these distinctions right helps keep your accounts cleaner and your reports more reliable.

For beginners, it makes sense to first get comfortable with Contra, Payment, Receipt, Purchase and Sales vouchers. Once these become familiar, you can gradually move into Journal entries, GST transactions, inventory management and other advanced areas of TallyPrime.

If you are setting up TallyPrime for your business or need help with configuration, GST setup, data migration, customisation or day-to-day Tally support, TallyMantra can assist with practical Tally services based on your business requirements. This can be especially useful when you want the software configured correctly from the start rather than fixing accounting or setup issues later.