Contra Entry in Tally Prime (F4): Bank & Cash SOP [2026]

In accounting, a Contra Entry records transactions that involve internal cash and bank account movements without altering the overall financial position of the company. In TallyPrime, these internal liquidity transfers are logged using the Contra Voucher (F4).

Whether you are depositing cash into a bank account, withdrawing cash for office expenses, or transferring funds between two company bank accounts, knowing how to record Contra entries correctly ensures your Cash-in-Hand and Bank registers remain balanced.

The Core Accounting Rule for Contra Entries

Contra entries strictly follow the Golden Rule of Personal and Real Accounts:
"Debit the receiving account; Credit the giving account."

Depending on the direction of your internal fund transfer, here is how you determine your debits and credits:

• Cash Deposited into Bank: The Bank is receiving the money, and Cash is leaving the company.
  Debit: Bank Account | Credit: Cash Account
• Cash Withdrawn from Bank: Cash is coming back into the company, and the Bank is giving the money.
  Debit: Cash Account | Credit: Bank Account
• Inter-Bank Fund Transfer: The receiving bank account is debited, and the source bank account is credited.
  Debit: Target Bank Account | Credit: Source Bank Account

Understanding Entry Modes: Single vs. Double Entry

TallyPrime allows you to record Contra vouchers in two distinct formats. You can toggle between them by pressing Ctrl+H (Change Mode):

Step-by-Step Scenarios

Scenario 1: Depositing Cash into Bank

1. Press F4 from Vouchers screen.
2. Credit (Cr) Cash A/c and enter the deposit amount (e.g. Rs. 50,000).
3. Debit (Dr) your company bank account (e.g. HDFC Current Account).
4. In the Bank Allocations screen, specify currency denomination details (e.g., 500 × 100).
5. Press Ctrl+A to save.

Scenario 2: Withdrawing Cash from Bank

1. Press F4 from Vouchers screen.
2. Credit (Cr) your bank ledger (e.g. SBI Bank Account).
3. In the Bank Allocations sub-screen, enter the cheque number or ATM withdrawal ref.
4. Debit (Dr) Cash A/c.
5. Press Ctrl+A to save.

Scenario 3: Inter-Bank Account Transfer

To transfer funds between two of your business bank accounts (e.g., transferring Rs. 1,00,000 from SBI to HDFC Bank):

1. In the F4 Contra screen, Credit (Cr) the source bank (e.g., SBI Current Account) with 100000.
2. Select the transaction mode (e.g., e-Fund Transfer / NEFT) and input the reference ID.
3. Debit (Dr) the receiving bank (e.g., HDFC Current Account).
4. Verify the dates and reference numbers, write a narration, and save.

Petty Cash Management

Many businesses maintain a petty cash ledger to handle minor daily expenses (like tea, courier fees, and cleaning supplies). Setting up a separate ledger under the Cash-in-Hand group allows you to segregate these funds from your primary cash drawer. Replenishing this petty cash ledger from your main bank account is also recorded as a Contra entry (Debit: Petty Cash, Credit: Bank).

Reconciliation & Statement Imports with TrulyInvoice

While recording Contra vouchers is straightforward, reconciling them against your bank statements is often a bottleneck. When reconciling monthly bank statements from institutions like SBI, HDFC, or ICICI Bank, accountants have to manually search for corresponding cheques, match dates, compare deposit amounts, and identify duplicate entries.

Using TrulyInvoice's dedicated bank statement to Tally automation, simply upload your bank statement PDFs:

• TrulyInvoice extracts all cash deposit, withdrawal, and inter-bank transfer transactions.
• It automatically cross-references the transaction descriptions and amounts to identify potential Contra vouchers.
• It generates corresponding F4 vouchers inside TallyPrime with pre-matched dates, cheque reference numbers, and transaction IDs.
• In addition, businesses processing incoming supplier bills can use our purchase invoice entry automation to post verified GST purchase vouchers into Tally in 15 seconds.