Tally Prime
In this part, we examine practical transaction recording covering Cash, Credit, Bank payments, and Nominal accounts (Income & Expense).
Transactions to Journalise
- Purchase goods from Ram on Credit — ₹15,000
- Purchase goods from Ram in cash — ₹10,000
- Cash paid to Ram — ₹5,000
- Cheque Paid to Ram — ₹10,000
- Sold goods to Shyam Credit — ₹20,000
- Sold goods to Shyam in Cash — ₹15,000
- Cash Received from Shyam — ₹8,000
- Cheque Received from Shyam — ₹12,000
- Salary Paid in Cash — ₹15,000
- Rent Received Through Cheque — ₹10,000
Golden Rules of Accounting Recap
| Type of Account | Debit (Dr.) | Credit (Cr.) |
|---|---|---|
| Personal Account | The Receiver | The Giver |
| Real Account | What Comes In | What Goes Out |
| Nominal Account | Expenses and Losses | Income and Gains |
Step-by-Step Journal Entries
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Purchase A/c -------------------- Dr. To Ram A/c -------------------- Cr. |
15,000 | 15,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Purchase A/c -------------------- Dr. To Cash A/c -------------------- Cr. |
10,000 | 10,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Ram A/c ------------------------- Dr. To Cash A/c -------------------- Cr. |
5,000 | 5,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Ram A/c ------------------------- Dr. To Bank A/c -------------------- Cr. |
10,000 | 10,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Shyam A/c ----------------------- Dr. To Sales A/c ------------------- Cr. |
20,000 | 20,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Cash A/c ------------------------ Dr. To Sales A/c ------------------- Cr. |
15,000 | 15,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Cash A/c ------------------------ Dr. To Shyam A/c ------------------- Cr. |
8,000 | 8,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Bank A/c ------------------------ Dr. To Shyam A/c ------------------- Cr. |
12,000 | 12,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Salary A/c ---------------------- Dr. To Cash A/c -------------------- Cr. |
15,000 | 15,000 |
| Date | Particulars | L/F | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
|
Bank A/c ------------------------ Dr. To Rent A/c -------------------- Cr. |
10,000 | 10,000 |
Conclusion: Practicing both sides of cash and credit ensures you choose the right voucher type (Payment, Receipt, Sales, or Purchase) in Tally Prime.
Frequently Asked Questions
Why is Ram A/c debited when cash or cheque is paid to him?
Ram is a Personal Account. Under the Golden Rule, we Debit the Receiver. Since Ram is receiving the payment, his account is debited.
Why do we debit Salary A/c instead of the employee's name?
Salary is an expense for the business and falls under Nominal Account (Debit all expenses and losses). The expense account is debited rather than individual employees.
What voucher types are used in Tally Prime for these entries?
Purchases on credit go to the Purchase Voucher (F9), sales on credit to the Sales Voucher (F8), cash/cheque payments to the Payment Voucher (F5), and money received to the Receipt Voucher (F6).
