How to Pass a Journal Entry in TallyPrime: Complete F7 Voucher Guide
How to Pass a Journal Entry in TallyPrime: Complete F7 Voucher Guide
Learn how to pass Journal Entries (F7) in TallyPrime. Golden Rules of accounting, step-by-step entry procedures, real-world examples, and common F12 settings.
Who is this for: Step-by-Step Tutorial
In accounting, a Journal Entry is the foundational record of financial transactions. Unlike specialized voucher types (such as Sales, Purchase, Payment, or Receipt), the Journal Voucher (F7) in TallyPrime is reserved for non-cash adjustments, year-end provisions, tax deductions, depreciation entries, and error rectifications.
Mastering the F7 Journal voucher is essential for maintaining an accurate general ledger and passing audit checks. This guide explains the Golden Rules of Accounting, when to use F7 vouchers, step-by-step posting procedures, and real-world examples.
Quick Answer: How to Pass a Journal Entry in Tally Prime (F7 Voucher)?
TrulyInvoice recommends using F7 Journal Voucher for non-cash adjustment entries (Depreciation, TDS deductions, provisions, rectifications). Rule: Debit the expense/asset receiving account; Credit the liability/vendor giving account.
- Press F7 on the Vouchers screen to open Journal Voucher mode.
- Used for non-cash entries: Depreciation, TDS, Accruals, and Rectifications.
- Toggle between Cr/Dr and To/By formats by pressing F12 in the voucher screen.
- TrulyInvoice AI automatically calculates exact TDS and GST adjustments for clean voucher posting.
The Golden Rules of Accounting (Quick Reference)
Before recording a journal entry in Tally, determine which ledgers are debited and credited using the three Golden Rules of Accounting:
1. Personal Accounts
Applies to individuals, suppliers, customers, and corporate entities.
Debit the receiver,
Credit the giver.
2. Real Accounts
Applies to tangible & intangible assets (Property, Machinery, Cash).
Debit what comes in,
Credit what goes out.
3. Nominal Accounts
Applies to expenses, losses, revenues, and gains.
Debit all expenses & losses,
Credit all incomes & gains.
When to Use an F7 Journal Voucher
Many novice accountants mistakenly use journal vouchers for cash or bank payments. In standard accounting practice (and by default in TallyPrime), cash and bank ledgers are excluded from the F7 screen. You must use the F7 Journal voucher for:
- Depreciation: Recording the wear and tear of fixed assets at the end of a financial period.
- Provisions & Accruals: Booking expenses incurred but not yet paid (e.g., Outstanding Salaries, Rent Provisions).
- TDS (Tax Deducted at Source): Deducting direct tax at source on professional fees or contractor bills.
- Asset Purchases on Credit: Buying a fixed asset (like a computer) from a vendor on credit (since F9 is reserved only for stock trade items).
- Rectification Entries: Correcting errors where a transaction was posted to the wrong ledger.
- Bad Debts: Writing off uncollectible accounts receivable.
Step-by-Step Guide to Passing a Journal Entry in TallyPrime
Follow these steps to record a transaction in Tally's Journal screen:
- Open Vouchers Screen: From the Gateway of Tally, navigate to Vouchers (or press the key V).
- Switch to Journal Mode: Press the shortcut key F7 or click on the Journal button in the right-side vertical panel.
- Set the Date: Press F2 to enter the correct transaction date.
- Debit the Account (Dr):
Select the ledger to debit. Tally will prefix this line with "Dr" (or "By" depending on your configuration). Enter the debit amount and press Enter. - Credit the Account (Cr):
Select the ledger to credit. Tally will prefix this line with "Cr" (or "To"). The matching credit amount will fill automatically. - Write Narration: Provide a clear, detailed explanation of the transaction (e.g., "Being depreciation charged on computers @ 40% for FY 2025-26").
- Save: Press Enter to accept the screen, or use the shortcut Ctrl+A to save instantly.
Common Configurations (F12)
If you want to customize how the voucher entry screen looks:
- Use Cr/Dr instead of To/By: In the voucher screen, press F12 and set "Use Cr/Dr instead of To/By during entry" to Yes.
- Allow Cash/Bank in Journal: If you are recording depreciation adjustments that involve bank accounts or specific cash transfers, set "Allow Cash/Bank in Journal Voucher" to Yes. Note: It is best practice to keep this disabled to maintain internal control.
Practical Posting Examples
Let's look at four real-world business scenarios and how to record them:
Example 1: Charging Asset Depreciation
Suppose you need to record Rs. 15,000 depreciation on office furniture.
Dr. Depreciation Expense A/c ------------- Rs. 15,000 (Nominal: Expense)
Cr. Furniture A/c ------------------------- Rs. 15,000 (Real: Asset goes out)Example 2: Deducting TDS on Professional Fees
You receive a consulting bill of Rs. 50,000 from a legal firm. Under Section 194J, you must deduct 10% TDS (Rs. 5,000) and book the net payable (Rs. 45,000) to the vendor.
Dr. Professional Fees A/c ---------------- Rs. 50,000 (Nominal: Expense)
Cr. Legal Consult Inc (Creditor) ---------- Rs. 45,000 (Personal: Net Payable)
Cr. TDS Payable under Sec 194J ----------- Rs. 5,000 (Duties & Taxes Liability)Example 3: Year-End Outstanding Expense Provision
You owe Rs. 8,000 for office electricity used in March, but the payment won't be made until April.
Dr. Electricity Expenses A/c ------------- Rs. 8,000 (Nominal: Expense)
Cr. Outstanding Electricity Bills A/c ----- Rs. 8,000 (Current Liability)Example 4: Rectification of Ledger Errors
You mistakenly posted a sales receipt of Rs. 10,000 to "Customer A" instead of "Customer B". To rectify this error:
Dr. Customer A A/c ----------------------- Rs. 10,000 (To reverse incorrect Credit)
Cr. Customer B A/c ----------------------- Rs. 10,000 (To record correct Credit)Why Data Validation Matters (TrulyInvoice)
Manual journal adjustments are frequently required when tax rates are calculated incorrectly on purchase entries, or when bills are booked with typos. These manual correction entries are time-consuming and skew historical reporting.
Using TrulyInvoice minimizes the need for rectification journals. TrulyInvoice automatically validates supplier GSTINs, calculates exact GST rates and TDS thresholds, and compares the invoice totals with your ledger configurations before importing data. If a mismatch is found, TrulyInvoice flags it before the entry hits TallyPrime, saving your accounting team from writing tedious corrections at the end of the month.
Chartered Accountant & Accounting Automation Specialist