Tally Prime is a widely used accounting software that streamlines the process of managing business finances. One of the key features of Tally Prime is its ability to record a variety of financial transactions through different types of vouchers.
What is a Journal Voucher in Tally Prime?
Journal vouchers are used to adjust the debit and credit amounts without involving any actual movement of money between bank accounts or cash registers. These entries are generally used to make adjustments or corrections in accounting records.
Since journal vouchers are used to record accounting transactions that don’t involve cash inflow or outflow, they are often referred to as adjustment entries.
For example, a business might need to record depreciation, bad debts, provisions, or other year-end adjustments, and these would be done using journal vouchers. In essence, journal vouchers help you keep your accounting records accurate without requiring physical transactions like cash deposits or withdrawals
How to Record a Journal Voucher in Tally Prime?
Recording a journal voucher in Tally Prime is a straightforward process. Follow these steps to create a journal voucher:
- Launch Tally Prime: Open Tally Prime on your computer.
- Go to Voucher Entry: On the main menu, select Vouchers and choose the option for Journal Voucher (shortcut key: Ctrl + F7).
- Enter the Date: Specify the date for the transaction.
- Select the Accounts: In the voucher, select the debit and credit accounts that are involved in the transaction.
- For example, if you’re recording depreciation, you might debit the Depreciation Expense account and credit the Accumulated Depreciation account.
- Enter the Amount: Enter the amount of the transaction in the debit and credit fields.
- Provide Details: You can also provide narration for the transaction to clarify its nature.
- Save the Voucher: Once you’ve entered the details, press Enter and save the voucher.
Example of a Journal Voucher Entry
Let’s say your business needs to record a depreciation of ₹10,000 on machinery. Here’s how you would do it:
- Date: 31st March 2025
- Debit: Depreciation Expense Account ₹10,000
- Credit: Accumulated Depreciation Account ₹10,000
- Narration: Depreciation on machinery for the month of March 2025.
By entering this in the journal voucher, you are adjusting the financial records for the depreciation of the machinery without involving any cash transaction.
By understanding how to create and use journal vouchers, businesses can ensure their accounting systems remain accurate, organized, and in line with accounting standards.