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Lesson 14 of 48 – Payment Voucher
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💸 Payment Voucher in Tally Prime

A Payment Voucher is used whenever a business pays money through Cash, Bank, Cheque, UPI, NEFT or RTGS. It records all outgoing payments made by the business.

Lesson Objective Learn how to record different types of payments in Tally Prime using Payment Voucher with practical business examples.
1. What is a Payment Voucher?

A Payment Voucher records every transaction where money goes out of the business.

Examples
  • Salary Payment
  • Office Rent
  • Electricity Bill
  • Internet Bill
  • Supplier Payment
  • GST Payment
  • Loan EMI Payment
  • Office Expenses
2. Shortcut Key
Voucher Shortcut
Payment Voucher F5
Gateway of Tally → Voucher Entry → Press F5
3. When is Payment Voucher Used?
Transaction Use Payment?
Paid Salary ✔ Yes
Paid Rent ✔ Yes
Paid Electricity Bill ✔ Yes
Paid Supplier ✔ Yes
Deposited Cash into Bank ❌ No (Contra)
Received Cash ❌ No (Receipt)
Payment Voucher should be used only when money is paid from Cash or Bank.
4. Example – Salary Payment

Paid Salary ₹30,000 in Cash.

Debit Credit
Salary A/c ₹30,000 Cash A/c ₹30,000
Salary is an Expense, so it is Debited. Cash decreases, so it is Credited.
5. Example – Rent Payment

Paid Office Rent ₹15,000 through Bank.

Debit Credit
Rent A/c ₹15,000 SBI Bank ₹15,000
Rent is an Expense (Debit), Bank balance decreases (Credit).
6. Example – Supplier Payment

A Payment Voucher is used when payment is made to a supplier against a purchase bill.

Example: Paid ₹45,000 to ABC Traders through SBI Bank.

Debit Credit
ABC Traders ₹45,000 SBI Bank ₹45,000
The supplier's outstanding balance decreases after payment.
7. Utility & Office Expense Payments

Businesses regularly pay utility bills and office expenses using the Payment Voucher.

Expense Debit Credit
Electricity Bill ₹4,500 Electricity Expense Cash/Bank
Internet Bill ₹2,000 Internet Expense Bank
Office Stationery ₹3,000 Stationery Expense Cash
Office Cleaning ₹1,500 Cleaning Expense Cash
Telephone Bill ₹2,800 Telephone Expense Bank
All expense accounts are Debited because business expenses increase.
8. GST, Loan EMI & Other Payments

Payment Voucher is also used for statutory and financial payments.

Transaction Debit Credit
GST Payment GST Payable Bank
TDS Payment TDS Payable Bank
Loan EMI Loan Account Bank
Insurance Premium Insurance Expense Bank
Professional Tax Professional Tax Bank
Always verify the payment reference number while recording statutory payments.
9. Steps to Enter a Payment Voucher
  1. Open Tally Prime.
  2. Go to Voucher Entry.
  3. Press F5 to select Payment Voucher.
  4. Select Cash or Bank Ledger.
  5. Select the Expense or Party Ledger.
  6. Enter the payment amount.
  7. Choose the payment mode (Cash, Cheque, UPI, NEFT, RTGS, etc.).
  8. Write a clear narration.
  9. Press Ctrl + A to save.
Always compare the voucher with the original bill or payment receipt before saving.
10. Important Fields & Common Mistakes
Important Fields
Field Purpose
Date Payment Date
Voucher Number Unique Reference
Bank/Cash Ledger Payment Source
Expense/Party Ledger Payment Receiver
Amount Paid Amount
Narration Reason for Payment
Common Mistakes
Mistake Correct Practice
Using Receipt Voucher for payment Use Payment Voucher (F5).
Selecting the wrong ledger Verify the ledger before saving.
Entering the wrong amount Match with the invoice or receipt.
Ignoring GST details Verify GST ledgers before saving.
Leaving Narration blank Always write a meaningful narration.
Using Cash instead of Bank ledger Select the actual payment mode used.
A properly entered Payment Voucher keeps the Cash Book, Bank Book and Expense Reports accurate.
11. Real Business Case Studies

Let's understand how Payment Voucher is used in different businesses.

Business Transaction Voucher
Computer Institute Paid Faculty Salary ₹40,000 Payment Voucher
Medical Store Paid Medicine Supplier ₹1,20,000 Payment Voucher
Retail Shop Paid Shop Rent ₹18,000 Payment Voucher
Manufacturing Company Paid Factory Electricity Bill ₹22,000 Payment Voucher
Office Paid Internet Bill ₹2,500 Payment Voucher
Business Paid GST through Bank Payment Voucher
Almost every business records multiple Payment Vouchers every day for expenses and supplier payments.
12. Payment Voucher vs Contra Voucher vs Journal Voucher
Payment Voucher Contra Voucher Journal Voucher
Records money paid. Transfers between Cash & Bank. Records adjustment entries.
Expense or Party Payment. No Income or Expense. No Cash or Bank involved.
Shortcut: F5 Shortcut: F4 Shortcut: F7
Salary, Rent, Supplier Payment. Cash Deposit, Cash Withdrawal. Depreciation, Outstanding Expenses.
Choose the correct voucher type before recording any transaction.
13. Best Practices & Professional Tips
  • Verify bills before making payment.
  • Select the correct expense or party ledger.
  • Choose the correct payment mode (Cash, Cheque, UPI, NEFT, RTGS).
  • Always enter cheque/reference numbers for bank payments.
  • Write a meaningful narration.
  • Verify GST details before saving.
  • Check bank balance before recording payments.
  • Reconcile bank transactions regularly.
  • Keep payment receipts and supporting documents safely.
Professional accountants always verify payment vouchers with invoices, receipts and bank statements before finalizing accounts.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Create a Salary Payment Voucher.
  2. Create a Rent Payment Voucher.
  3. Create a Supplier Payment through Bank.
  4. Create an Electricity Bill Payment.
  5. Create an Internet Bill Payment.
  6. Create a GST Payment Voucher.
  7. Enter narration for every voucher.
  8. Verify the Cash Book and Bank Book.
Interview Questions
  1. What is a Payment Voucher?
  2. Which shortcut key opens Payment Voucher?
  3. When should Payment Voucher be used?
  4. Can salary be recorded through Payment Voucher?
  5. Can GST payment be recorded through Payment Voucher?
  6. What is the difference between Payment and Receipt Voucher?
  7. Difference between Payment and Contra Voucher?
  8. Why is narration important?
  9. What payment modes are available in Tally Prime?
  10. Can supplier payments be entered through Payment Voucher?
  11. Why should bills be verified before payment?
  12. How is cheque payment recorded?
  13. Why is Bank Reconciliation important?
  14. What happens if the wrong ledger is selected?
  15. How do Payment Vouchers affect financial reports?
15. Lesson Summary
  • Learned the purpose of Payment Voucher.
  • Recorded Cash and Bank payments.
  • Learned supplier, salary and utility bill payments.
  • Understood GST and statutory payments.
  • Compared Payment, Contra and Journal Vouchers.
  • Learned professional accounting practices.
  • Completed practical exercises.
  • Prepared for interviews with important questions.
Congratulations! You can now confidently record all business payments using the Payment Voucher (F5) in Tally Prime.

🧠 Quick Quiz

Which shortcut key is used to open the Payment Voucher in Tally Prime?



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