How to Record Bank Statement Entry in Tally Prime

Published on: 27-10-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Bank transactions are an essential part of business accounting. Every payment, receipt, or transfer that happens through your bank account must be properly recorded in your books. Tally Prime provides an efficient way to handle all types of bank entries, whether you want to record them manually or import your entire bank statement for automatic reconciliation. Here’s a complete guide on how to record and manage bank statement entries in Tally Prime.

1. Understanding Bank Entries in Tally Prime

In Tally Prime, any transaction that affects your bank account — such as deposits, withdrawals, payments to suppliers, receipts from customers, or fund transfers — is called a bank transaction.
These entries are usually made through Payment Vouchers, Receipt Vouchers, or Contra Vouchers, depending on the nature of the transaction.

• Payment Voucher (F5): Used when money goes out of the bank (e.g., paying a vendor or expenses).
• Receipt Voucher (F6): Used when money comes into the bank (e.g., receiving payment from a customer).
• Contra Voucher (F4): Used for fund transfers between bank accounts or between bank and cash.

2. Creating a Bank Ledger

Before recording any entry, you must create a ledger for your bank account.
Follow these steps:

1. Go to Gateway of Tally → Create → Ledger.
2. Enter the bank name (for example, “HDFC Bank – Current Account”).
3. Under Group, select Bank Accounts.
4. Enter your account number, IFSC code, and branch details if you wish to use bank reconciliation later.
5. Save the ledger.

Once this is created, it becomes available for all vouchers involving that bank.

3. Recording Bank Entries Manually

If you prefer manual entry, you can record each transaction one by one.

Example 1: Bank Payment Entry

Suppose you paid ₹25,000 to a supplier through cheque.

1. Go to Gateway of Tally → Accounting Vouchers → F5: Payment.
2. Choose the bank ledger (e.g., HDFC Bank).
3. Enter the date, cheque number, and narration.
4. In the Particulars column, select the supplier’s ledger.
5. Enter the amount ₹25,000.
6. Press Enter and accept the voucher.

This entry will reduce your bank balance and update the supplier’s account.

Example 2: Bank Receipt Entry

If you received ₹30,000 from a customer:

1. Open F6: Receipt Voucher.
2. Choose the same bank ledger.
3. Under particulars, select the customer ledger and enter ₹30,000.
4. Add narration like “Payment received through NEFT”.
5. Save the voucher.

This increases your bank balance and credits the customer account.

Example 3: Bank to Cash or Bank Transfer

If you withdraw ₹10,000 from the bank for office use:

1. Use F4: Contra Voucher.
2. Select your bank account under Account and “Cash” under Particulars.
3. Enter the amount and narration.
4. Save the entry.

This records the transfer without affecting income or expenses.

4. Importing a Bank Statement in Tally Prime

Instead of entering each transaction manually, you can import your actual bank statement:

1. Download your statement from the bank’s portal in .CSV or .Excel format.
2. Go to Banking → Bank Reconciliation → Select Bank Ledger.
3. Choose Import Bank Statement and browse your file.
4. Tally will match entries automatically based on date and amount.
5. You can accept the matched transactions and record any missing ones directly.

This method saves time and ensures your books match your real bank balance.

5. Bank Reconciliation

After recording or importing entries, always reconcile your bank account:

• Open Banking → Bank Reconciliation.
• The screen shows Tally Balance vs Bank Balance.
• Mark transactions with the bank’s clearing date.
• Once all are matched, the difference should be zero — meaning your ledger matches the bank statement.

Regular reconciliation helps detect missing cheques, duplicate entries, or unrecorded bank charges early.

6. Useful Tips

• Always verify the date format and amount before importing statements.
• Enter cheque or reference numbers to simplify reconciliation.
• Use narration fields to describe the purpose of payment or receipt.
• Reconcile your bank every week or month for accurate reports.
• Keep separate ledgers if you have multiple bank accounts.

Conclusion

Recording bank statement entries in Tally Prime is simple once you understand how vouchers and reconciliation work. You can enter transactions manually or import the entire statement for automatic matching. Proper bank accounting ensures your cash flow reports, balance sheet, and profit & loss statements remain accurate.

By updating your bank entries regularly, you maintain clear financial visibility and reduce errors during audits — making Tally Prime a powerful and reliable tool for everyday accounting management.