Journal Voucher (F7)

1. Core Concept

Journal Voucher (F7): An adjustment voucher used for non-cash and non-bank transactions. It records entries that do not directly involve receiving or paying liquid cash/bank funds at the moment of entry.

Common Use Cases:

  • Credit purchases of Fixed Assets (e.g., buying furniture or machinery on credit).
  • Adjustment entries (e.g., depreciation, outstanding expenses, prepaid expenses, accrued income).
  • Rectification of accounting errors.
  • Opening balances and year-end closing entries.
Golden Rule of Accounting:
Debit (Dr) → Receiver / What comes in / Expenses & Losses
Credit (Cr) → Giver / What goes out / Incomes & Gains

2. Ledgers Required to be Created First

Before passing the Journal entries, create these ledgers under their appropriate primary groups:

Ledger Name Group (Under) Type / Purpose
Furniture A/c Fixed Assets Asset purchased
Computer System A/c Fixed Assets Asset purchased
Office Equipment A/c Fixed Assets Asset purchased
Modern Traders Sundry Creditors Vendor for fixed assets
Tech Solutions Sundry Creditors Vendor for office equipment
Depreciation A/c Indirect Expenses Non-cash expense
Salary A/c Indirect Expenses Regular expense
Outstanding Salary A/c Current Liabilities Provision for unpaid salary
Rent A/c Indirect Expenses Regular expense
Outstanding Rent A/c Current Liabilities Provision for unpaid rent
Prepaid Insurance A/c Loans & Advances (Asset) / Current Assets Asset paid in advance
Insurance Expense A/c Indirect Expenses Regular expense
Bad Debts A/c Indirect Expenses Irrecoverable customer debt

3. How to Record Journal Vouchers in TallyPrime

  1. Go to Gateway of Tally → Vouchers → Press F7 (Journal).
  2. Press Ctrl + H to select Double Entry mode (By/To or Dr/Cr).
  3. First Line: Select the Debit (Dr) ledger and enter the amount.
  4. Second Line: Select the Credit (Cr) ledger and enter the corresponding amount.
  5. Enter a clear Narration describing the adjustment.
  6. Press Ctrl + A to save.

4. Complete Practice Set (10 Entries)

Record Journal Entries (F7)

Entry No. Date Particulars (Debit / Credit) Debit Amt (₹) Credit Amt (₹) Narration
1 1-4 Dr: Furniture A/c
Cr: Modern Traders		 45,000
—		 —
45,000		 Being furniture purchased on credit from Modern Traders
2 1-4 Dr: Computer System A/c
Cr: Tech Solutions		 65,000
—		 —
65,000		 Being computer system purchased on credit
3 2-4 Dr: Salary A/c
Cr: Outstanding Salary A/c		 25,000
—		 —
25,000		 Being unpaid salary provided for the month
4 2-4 Dr: Rent A/c
Cr: Outstanding Rent A/c		 12,000
—		 —
12,000		 Being office rent due but unpaid
5 1-5 Dr: Prepaid Insurance A/c
Cr: Insurance Expense A/c		 8,000
—		 —
8,000		 Being insurance paid in advance adjusted
6 2-5 Dr: Depreciation A/c
Cr: Furniture A/c		 4,500
—		 —
4,500		 Being depreciation charged on furniture @ 10%
7 2-6 Dr: Depreciation A/c
Cr: Computer System A/c		 6,500
—		 —
6,500		 Being depreciation charged on computer systems
8 1-7 Dr: Bad Debts A/c
Cr: Deepak Creation		 5,000
—		 —
5,000		 Being unrecoverable balance written off as bad debt
9 1-8 Dr: Office Equipment A/c
Cr: Modern Traders		 30,000
—		 —
30,000		 Being office equipment purchased on credit
10 2-8 Dr: Modern Traders
Cr: Discount Received A/c		 1,500
—		 —
1,500		 Being discount allowed by supplier on account settlement

5. Checking, Deleting & Modifying Journal Vouchers

To View Statistics & Journal Count:

  • Navigation Path:
    Gateway of Tally → Display More Reports → Statements of Accounts → Statistics → Select Journal
    (Shortcut: Press Alt + G → Type Statistics → Drill down into Journal)

To Check / Delete / Modify Journal Entries:

  • Navigation Path:
    Gateway of Tally → Display More Reports → Account Books → Journal Register
    (Shortcut: Press Alt + G → Type Journal Register)
  • Action: Select the month → Press Enter on the voucher to view or edit details. Press Alt + D inside the voucher to delete it.