Contra entry is a special entry used to record the fund movement within the organization. So far we have completed creating editing and deleting voucher from tally. And today we are starting data entry in each type of voucher.

When we enter contra entry there is no effect in our business result (Profit or loss) as the assets are moving inside the organization. For example

  • Cash Deposited to SBI A/c No # 651    Rs 100000.00

This means that cash is moving from cashier to bank account. So the fund is still in our hand

  • Cash Withdrawn from SBI  A/c No# 651 Rs 25000.00

Cash is flowing from bank to business, so the fund is still in cashier’s hand

  • Amount transferred to SBI A/c No # 651  to  AXIS Bank a/c # 451   Rs 25000.00 and IOB A/c # 851 Rs 25000.00

Here fund is moving from one bank account to another bank account, there is no change in the financial position of the company.

  • Cash transferred from cash account to Petty cash account Rs 15000.00

This is also cash moving from main cashier to petty cashier

These four transactions are the possible contra entry in accounting. So let’s enter these four vouchers in to Contra voucher

Contra entry can be entered in both Single entry mode and double entry mode. I will be covering both single and double entry in this post.

Contra entry in single entry mode

From the gateway of tally

Go to

Accounting vouchers> F4: Contra (Press F4 button to access contra voucher)

To Access contra voucher Click on F4 or contra button

Enable single entry mode voucher screen, if the current voucher is not in single entry mode,

To do this press F12 from contra screen, and locate” use single entry mode for Pymt/Rct/Contra” option to Yes

Know more about single entry voucher in tally here

Now, take the first entry

  1. Cash Deposited to SBI A/c No # 651    Rs 100000.00

The journal for this transaction is

SBI A/c No # 651…………………..Dr                                                100000.00

To, Cash…………………….. …………Cr                                               100000.00

(Being cash deposited in to sbi )

Here bank balance increases and cash balance decreases.

In tally contra voucher screen, debit should be entered at the top after Account. Here SBI A/c No # 651.

Note: In contra voucher; single entry mode, debit should be always at the top of the voucher just after Account:  see below image

debit at the top in contra

Enter credit aspects under particulars; here it is cash, then amount and narration, finally save the screen. The final screen will be as follows.

Now the Second entry

  • Cash Withdrawn from SBI  A/c No# 651 Rs 25000.00

Here cash flows from bank to cashier, so the cash in hand increases and bank balance decreases

The journal entry is

Cash a/c ……………………………………………Dr                   25000.00

To, SBI  A/c No# 651………………Cr                                               25000.00

(Being cash withdrawn from sbi)

In this transaction Cash is the debit aspects as the cash increases (debit what comes in) and SBI A/c No # 651 is the credit aspect as bank balance decreases (credit what goes out)

After data entry, the voucher will look like this

cash withdrawn contra entry

Double entry mode in contra voucher

Now the third entry, bank to bank transfer, moving of funds from one bank to another bank within the organization

  • Amount transferred from SBI A/c No # 651  to  AXIS Bank a/c # 456   Rs 25000.00 & IOB A/C # 851 Rs  25000.00

Here the debit aspect is Axis bank & IOB   as the balance increases, and the Sbi a/c balance decreases, hence credit.

The journal for the transaction is

AXIS Bank a/c # 451……………………………………..………….Dr                50000.00

IOB A/c # 851                  ………………………………………….Cr                     25000.00

To SBI A/c # 651          ………………………..………Cr                                               50000.00

Here you want to enter, two debits in a single voucher, but in single entry mode we can enter only one debit in “Account

one debit in contra entry single entry

So we are changing our mode to double entry, where we can enter multiple debit and credit. To switch over double entry mode, press F12 from contra screen, and locate use single entry mode for Pymt/Rct/Contra option to No

To know more about toggling between single entry voucher and double entry voucher go here.

Now enter the debit and credit, in double entry voucher mode, see the voucher after entering it.

bank to bank transfer contra voucher

The last entry,

  • Cash transferred from cash account to Petty cash account Rs 15000.00

Cash moving from main cashier to petty cashier, Petty cash increases and main cash balance decreases

So the journal will be,

Petty cash ………………………………………..Dr                                      15000.00

To,      Cash ………………………………………….Cr                                                    15000.00

See the contra voucher screen for the same below

cah accounto cash account contra

Here is the video tutorials for how to enter contra voucher

Hope I have covered almost everything related contra voucher entry, anything missedout let me know through our comment section