Basic Entries in Tally Prime – Complete Beginner Guide With Examples (2025)

Published on: 28-11-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Tally Prime is one of India’s most widely used accounting software solutions. For beginners, the first step is mastering basic accounting entries such as payments, receipts, sales, purchases, contra, journal adjustments, and ledger creation. These entries form the foundation of all financial reporting in Tally, including Balance Sheet, Profit & Loss, Stock Summary, Cash Book, and GST reports.

Whether you are a student, accountant, business owner, or someone learning Tally for the first time, this article gives you a complete guide to basic entries in Tally, their purpose, and step-by-step posting.

What Are Basic Accounting Entries in Tally?

Basic entries in Tally are the most commonly used voucher entries that record everyday business transactions like:

• Cash received
• Cash paid
• Bank deposits
• Sales
• Purchases
• Journal adjustments
• Contra entries
• Expense payments
• Customer receipts

Each transaction is stored through a voucher, and Tally automatically updates ledgers and financial reports.

Types of Basic Entries in Tally Prime

Below are the essential entries every beginner should know.

 1. Contra Entry (F4)

Purpose:
Record transactions between Cash & Bank, or Bank to Bank.

Examples:

• Cash deposited into bank
• Cash withdrawn from bank
• Transfer from one bank account to another

Example Entry:
Deposit cash into bank

Bank A/c     Dr  

     To Cash A/c

2. Payment Entry (F5)

Purpose:
Record money paid through cash or bank.

Used for:

• Salary
• Rent
• Office expenses
• Supplier payment
• Utility bills

Example Entry:
Paid office rent

Rent A/c     Dr  

     To Cash/Bank A/c

3. Receipt Entry (F6)

Purpose:
Record money received from customers or other sources.

Used for:

• Customer payments
• Cash sales
• Interest income
• Refunds received

Example Entry:
Received from customer Raj

Cash/Bank A/c     Dr  

     To Raj A/c

4. Journal Entry (F7)

Purpose:
Record adjustment entries not involving cash or bank.

Used for:

• Depreciation
• Outstanding expenses
• Accrued income
• Adjustment between ledgers

Example Entry:
Record depreciation

Depreciation A/c     Dr  

     To Machinery A/c

5. Sales Entry (F8)

Purpose:
Record sale of goods/services.

Used for:

• Cash sales
• Credit sales
• GST sales
• POS billing

Example Entry:
Sales to customer on credit

Customer A/c     Dr  

     To Sales A/c

Tally auto-calculates GST if ledgers are configured.

6. Purchase Entry (F9)

Purpose:
Record purchase of goods/services.

Used for:

• Cash purchases
• Credit purchases
• GST purchases

Example Entry:
Purchase from supplier

Purchase A/c     Dr  

     To Supplier A/c

 7. Debit Note (Ctrl + F9)

Purpose:
Used when goods returned to supplier or purchase value reduced.

Example:

Supplier A/c     Dr  

     To Purchase Return A/c

8. Credit Note (Ctrl + F8)

Purpose:
Used when customers return goods or sale value reduced.

Example:

Sales Return A/c     Dr  

     To Customer A/c

9. Stock Journal (Ctrl + F7)

Purpose:
Record stock transfers and manufacturing adjustments.

Used for:

• Raw material to finished goods
• Damaged stock
• Production entries

Example:
Move raw material to finished goods

Finished Goods    Dr  

     To Raw Material A/c

 Step-By-Step: How to Enter Basic Vouchers in Tally Prime

Step 1: Open Gateway of Tally

Select your company.

Step 2: Go to Accounting Vouchers

Every voucher type is available here.

Step 3: Press Shortcut Keys

• F4 → Contra
• F5 → Payment
• F6 → Receipt
• F7 → Journal
• F8 → Sales
• F9 → Purchase

Step 4: Select Ledger Names

Choose the ledger for debit/credit.

Step 5: Enter Amount & Narration

Add narration for clarity.

Step 6: Save Entry

Press Ctrl + A to save.

Basic Ledger Setup Required Before Entries

Before posting entries, create these ledgers:

Assets

• Bank
• Cash in hand
• Debtors
• Fixed Assets

Liabilities

• Creditors
• Loans
• Outstanding expenses

Income

• Sales
• Commission
• Interest received

Expenses

• Rent
• Salary
• Petrol expenses

Good ledger setup ensures error-free entries.

Why Basic Entries Matter in Tally Prime

✔ Foundation of all financial reports

Every voucher updates trial balance, P&L, and balance sheet.

✔ Ensures GST accuracy

Correct sales/purchase entries ensure correct tax reports.

✔ Helps in auditing

Journal entries show all adjustments clearly.

✔ Enables cash/bank control

Payment/receipt entries show real financial position.

✔ Smooth business operations

Billing, purchase, expenses — everything depends on proper entries.

Conclusion

Basic accounting entries in Tally Prime are the backbone of day-to-day business operations. Once you master contra, payment, receipt, sales, purchase, journal, debit note, and credit note entries, you can handle almost 70% of daily accounting work with confidence.

Whether you are learning Tally for the first time or training staff, understanding these entries ensures:

• Accurate financial accounting
• Smooth GST compliance
• Error-free cash/bank management
• Professional reporting

Tally becomes simple and powerful when basic entries are done correctly.

FAQs

Q1. What is the simplest entry in Tally?

Receipt and payment entries — used daily.

Q2. Do I need GST entries separately?

No, GST applies automatically if your ledgers are configured.

Q3. Which voucher is used for adjustments?

Journal Voucher (F7).

Q4. What is the shortcut for sales entry?

F8 → Sales.

Q5. Can a beginner learn Tally entries easily?

Yes, basic entries can be learned within a few days of practice.

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