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Lesson 13 of 48 – Contra Voucher
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🏦 Contra Voucher in Tally Prime

A Contra Voucher is used when both Debit and Credit accounts belong to Cash or Bank. It records the transfer of money between Cash and Bank accounts or between two Bank accounts.

Lesson Objective Learn the purpose, shortcut key, accounting entries and practical use of Contra Voucher in Tally Prime.
1. What is a Contra Voucher?

A Contra Voucher records transactions where money moves between Cash and Bank accounts without affecting income or expenses.

Examples:
  • Cash deposited into Bank
  • Cash withdrawn from Bank
  • Transfer from SBI Bank to HDFC Bank
  • ATM Cash Withdrawal
2. Shortcut Key
Voucher Shortcut Key
Contra Voucher F4
Open Gateway of Tally → Vouchers → Press F4 to open Contra Voucher.
3. When is Contra Voucher Used?
Transaction Use Contra?
Cash deposited into Bank ✔ Yes
Cash withdrawn from Bank ✔ Yes
Transfer between Bank Accounts ✔ Yes
Paid Salary ❌ No
Received Fees ❌ No
Purchased Goods ❌ No
Contra Voucher should only be used when both accounts are Cash and/or Bank accounts.
4. Example – Cash Deposited into Bank

Cash ₹20,000 is deposited into SBI Bank.

Debit Credit
SBI Bank ₹20,000 Cash ₹20,000
Cash decreases and Bank balance increases.
5. Example – Cash Withdrawn from Bank

Cash ₹10,000 is withdrawn from SBI Bank for office use.

Debit Credit
Cash ₹10,000 SBI Bank ₹10,000
Bank balance decreases while Cash balance increases.
6. Example – Bank to Bank Transfer

Sometimes money is transferred from one bank account to another. Such transactions are also recorded using a Contra Voucher.

Example: ₹50,000 transferred from SBI Bank to HDFC Bank.

Debit Credit
HDFC Bank ₹50,000 SBI Bank ₹50,000
Since both accounts are Bank Accounts, Contra Voucher (F4) is used.
7. Practical Banking Examples
Transaction Debit Credit
Cash deposited into Bank ₹15,000 Bank Cash
Cash withdrawn from Bank ₹8,000 Cash Bank
ATM Cash Withdrawal ₹5,000 Cash Bank
Transfer SBI → PNB ₹40,000 PNB Bank SBI Bank
Transfer HDFC → ICICI ₹25,000 ICICI Bank HDFC Bank
All the above transactions use the Contra Voucher because only Cash and Bank accounts are involved.
8. Steps to Enter a Contra Voucher
  1. Open Tally Prime.
  2. Go to Voucher Entry.
  3. Press F4 to select Contra Voucher.
  4. Select the Debit Account (Cash or Bank).
  5. Select the Credit Account (Cash or Bank).
  6. Enter the Amount.
  7. Add Narration (optional but recommended).
  8. Press Ctrl + A to save.
Always verify the voucher date and amount before saving.
9. Important Fields in Contra Voucher
Field Description
Date Date of the transaction
Voucher Type Contra (F4)
Debit Account Cash or Bank receiving money
Credit Account Cash or Bank giving money
Amount Transaction Amount
Narration Purpose of the transaction
Writing a clear narration helps identify the transaction later during auditing.
10. Common Mistakes While Using Contra Voucher
Common Mistake Correct Practice
Using Contra for Salary Payment Use Payment Voucher (F5).
Using Contra for Sales Use Sales Voucher (F8).
Selecting the wrong Bank Ledger Verify the account before saving.
Incorrect Debit/Credit Remember: Receiver → Debit, Giver → Credit.
Not writing Narration Add a meaningful narration.
Saving with wrong Date Always check the accounting date.
Contra Voucher should never be used for Income, Expense, Purchase or Sales transactions.
11. Real Business Case Study

Let's understand how different businesses use Contra Voucher in their daily accounting.

Business Transaction Voucher
Retail Shop Deposited ₹50,000 into SBI Bank Contra
Medical Store Withdrew ₹10,000 for Daily Expenses Contra
Computer Institute Transferred ₹30,000 from SBI to HDFC Bank Contra
Manufacturing Company Deposited Daily Cash Collection into Bank Contra
Wholesale Business ATM Cash Withdrawal ₹20,000 Contra
Contra Voucher is commonly used at the end of the business day when cash collections are deposited into the bank.
12. Contra Voucher vs Payment Voucher
Contra Voucher Payment Voucher
Used only for Cash & Bank transactions. Used for all types of payments.
No Income or Expense involved. Usually records expenses or payments.
Cash ↔ Bank Cash/Bank → Expense or Party
Shortcut: F4 Shortcut: F5
Example:
  • Cash deposited into Bank → Contra Voucher
  • Paid Office Rent → Payment Voucher
13. Best Practices & Professional Tips
  • Use Contra Voucher only for Cash and Bank transactions.
  • Verify bank ledger before saving.
  • Write a meaningful narration.
  • Check the voucher date carefully.
  • Match the transaction with the bank statement.
  • Perform Bank Reconciliation regularly.
  • Keep supporting documents like deposit slips and ATM receipts.
  • Review Contra entries before finalizing accounts.
Professional accountants verify every Contra Voucher during monthly bank reconciliation.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Create a Contra Voucher for Cash deposited into SBI Bank.
  2. Create a Contra Voucher for Cash withdrawn from SBI Bank.
  3. Transfer ₹25,000 from SBI Bank to HDFC Bank.
  4. Add narration for each voucher.
  5. Verify the Cash Book and Bank Book after posting the entries.
Interview Questions
  1. What is a Contra Voucher?
  2. Which shortcut key opens Contra Voucher?
  3. When should Contra Voucher be used?
  4. Can Salary be entered through Contra Voucher?
  5. Can Purchase be entered through Contra Voucher?
  6. Can Bank-to-Bank transfer be recorded in Contra Voucher?
  7. What is the difference between Contra and Payment Voucher?
  8. Why is narration important?
  9. Which accounts are affected in Contra Voucher?
  10. Why is Bank Reconciliation necessary?
15. Lesson Summary
  • Learned the purpose of Contra Voucher.
  • Understood when Contra Voucher should be used.
  • Recorded Cash to Bank transactions.
  • Recorded Bank to Cash transactions.
  • Recorded Bank to Bank transfers.
  • Learned important voucher fields.
  • Studied common mistakes and professional tips.
  • Completed practical exercises.
Congratulations! You can now confidently record all Cash and Bank transfer transactions using the Contra Voucher in Tally Prime.

🧠 Quick Quiz

Which voucher should be used to transfer money from Cash to SBI Bank?



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