What Is a Contra Entry in TallyPrime?
A contra entry records the transfer of money between a business’s own cash and bank accounts or between its own bank accounts. This guide explains when to use a contra voucher, how to record it in TallyPrime, and how to verify the entry with the help of Tally Experts.
Quick Answer: Which Voucher Is Used for Contra Entries?
In TallyPrime, use the Contra voucher (F4) to record eligible internal fund transfers, such as depositing cash into a bank account, withdrawing cash from a bank account, or transferring money between two bank accounts. These transactions move funds between accounts without directly affecting profit or loss. Official Tally Customization Guide.
When Should You Use a Contra Voucher?
Use a contra voucher when money moves between accounts belonging to the same business.
Common examples include:
- Cash deposited into a bank: ₹20,000 transferred from cash to the bank.
- Cash withdrawn from a bank: ₹10,000 transferred from the bank to cash.
- Bank-to-bank transfer: ₹50,000 transferred from one company bank account to another.
A payment to a supplier or an expense payment is not an ordinary contra transaction. Use the appropriate payment voucher for those transactions.
Examples of Contra Entries in TallyPrime
The following examples show how the accounts change when a business transfers funds.
| Transaction | Debit account | Credit account | Amount |
|---|---|---|---|
| Cash deposited into bank | Bank Account | Cash Account | ₹20,000 |
| Cash withdrawn from bank | Cash Account | Bank Account | ₹10,000 |
| Transfer to another bank account | Receiving Bank Account | Sending Bank Account | ₹50,000 |
These are the corresponding accounting entries. The receiving account is debited, and the account from which the money moves is credited.
How to Record a Contra Entry in TallyPrime
Before entering the transaction, keep the transaction date, amount, and relevant bank or cash details ready.
Step 1: Open the Contra Voucher
Open your company in TallyPrime.
Press Alt + G, select Create Voucher, and press F4 (Contra). You can also navigate through Gateway of Tally to Vouchers and select Contra.
Step 2: Set the Transaction Date
Press F2 (Date) if you need to change the voucher date. Enter the date on which the transfer took place.
Step 3: Select the Relevant Accounts
Choose the cash and bank ledgers or the two bank ledgers involved in the transfer.
For example, when depositing ₹20,000 in cash, select the bank account as the receiving account and the cash account as the account from which the money is transferred.
Step 4: Enter the Amount and Transaction Details
Enter ₹20,000 and provide the relevant bank allocation details, such as the transaction mode, where required.
Add a narration such as Cash deposited into bank account to make the entry easier to understand later.
Step 5: Save the Voucher
Review the accounts, amount, date, and transaction details. Accept the voucher using Ctrl + A.
The contra entry is now recorded in the company’s books.
Note: The exact fields displayed may vary depending on your TallyPrime configuration and whether you use single-entry or double-entry mode.
How to Check a Contra Entry After Saving
After saving the voucher, verify that the transaction has been recorded correctly.
- Open Day Book using Alt + G and locate the voucher.
- Check the date, amount, and selected accounts.
- Open the relevant account reports to confirm that the balances reflect the transfer.
- For bank transactions, compare the entry with the bank statement and complete bank reconciliation where applicable.
You can also open the Contra Register to review contra vouchers for a selected period. Refer to the official TallyPrime guide to contra entries and reports.
Contra Entry vs Payment Entry in TallyPrime
The main difference is the purpose of the transaction.
| Feature | Contra Voucher | Payment Voucher |
|---|---|---|
| Purpose | Internal fund transfer | Payment to a party or against an expense or liability |
| Example | Cash deposited into a bank | Office rent paid |
| Shortcut | F4 | F5 |
| Direct impact on profit or loss | No | Depends on the transaction |
Which should you use? Choose Contra for eligible transfers between your own cash and bank accounts. Choose Payment when recording payments to suppliers, employees, landlords, or other parties.
For more details, refer to TallyPrime’s official guide to payment and receipt vouchers.
Frequently Asked Questions
1. What is the shortcut key for contra entry in TallyPrime?
The standard shortcut is F4, which opens the Contra voucher.
2. Is cash deposited into a bank a contra entry?
Yes. Depositing business cash into its own bank account is a common contra transaction.
3. Does a contra entry affect profit or loss?
No, not directly. It transfers funds between accounts without creating income or expenses.
4. Can I record a transfer between two bank accounts using a contra voucher?
Yes. A transfer between two bank accounts belonging to the same business can generally be recorded using a Contra voucher.
5. How can I view contra entries in TallyPrime?
You can view them in Day Book or open the Contra Register to review entries over a selected period.
Simplify Your Accounting with Tally Experts
Recording transactions correctly helps keep your books organized and your cash and bank balances accurate. If your business needs help with TallyPrime configuration, accounting workflows, customization, or integrations, contact Tally Experts to explore a solution suited to your requirements.
