Bank Reconciliation in Tally
It is unlikely that a company’s bank balance as per its books and the bank balance as per the bank statement will be identical. Since there are many payments and deposits in transit at all times, as well as bank service fees and penalties, that the company has not yet recorded. In this article we cover the basics of bank reconciliation and bank reconciliation in tally.
A bank reconciliation is the process of matching the balances of the bank account in the books of the entity with the actual bank statement.
Bank Reconciliation process –
The goal of this process is to find the differences between the two, and to correct or make changes to the records as appropriate. Other than matching of balances, bank reconciliations have many other uses. Bank reconciliations also help in identification of errors.
What are the reasons for differences between the two records?
The most common reasons of differences are –
- Cheques deposited but not collected by bank
- Cheques issued to parties still not submitted to bank and not debited in our account
- Bank fees and charges
This article relates to bank reconciliation in Tally ERP. Recommended reading – bank reconciliations. Our earlier article highlights the general bank reconciliation process.
How to start the bank reconciliation process?
For bank reconciliation in Tally, we need both the ledgers. The bank ledger in the companies book and the bank statement from bank.
To reconcile bank go to Gateway of Tally > Banking > Bank Reconciliation
- Select the bank from the list, the screen appearing in front of you is bank reconciliation
- Inside bank ledger, on the right there is a button reconcile. Click on reconcile.
- In the screen you will find a column ‘Bank date’. Here, enter the date in which the particular transactions appeared in bank statement.
- Add the bank date for all the transactions appearing on the screen.
- Press Enter Key to save the screen.
Now select the bank again from Gateway of Tally > Banking > Bank Reconciliation
You will get a reconciled statement. This how we do a bank reconciliation in tally.
How to make changes in Bank reconciliation?
We can make changes in bank reconciliation if required, to do this go to
Gateway of Tally > Banking > Bank Reconciliation
- Select the bank
- Now press F12 Configure
- Tick yes in the ‘Show reconciled transaction also’. Press enter and save.
- We’ll see a list of reconciled entries as well now. Editing of transactions is possible from this screen.
How to view or print bank Reconciliation statement report –
Press F5 to view the Bank Reconciliation Statement -> Press Alt + P -> configure the options and press enter.
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