Learn TallyLesson 16 of 20
Bank reconciliation in TallyPrime
Your bank ledger and the bank's statement tell the same story with a few days' difference. Reconciliation finds exactly which entries make up the gap.
Why the balances differ
You enter a cheque on the day you issue it; the bank pays it when it is presented. You enter a deposit when you bank it; the bank credits it after clearing. The bank debits charges and credits interest that you learn of only from the statement. So on any date the balance in your Canara Bank ledger differs from the bank's own figure. The accounting behind this is explained on our neighbour site's bank reconciliation statement page.
What reconciliation means in Tally
Against each bank entry in your books, you record the bank date: the date on which the bank actually passed it, taken from the statement. Entries with a bank date are reconciled. Entries without one are the outstanding items, and Tally shows the balance as per your books, the amounts not yet reflected in the bank, and the resulting balance as per bank.
Steps (manual)
- Have the bank statement for the period in front of you.
- Open the reconciliation: Alt+G (Go To) and type "Bank Reconciliation", or Gateway of Tally > Banking > Bank Reconciliation. Choose the bank ledger.
- Press F2 or Alt+F2 to set the period.
- For each line in the list, find the same amount in the statement and type the statement's date in the Bank Date column. Leave it blank if the item is not in the statement.
- Press Ctrl+A to save.
- Look at the foot of the screen: "Balance as per company books", "Amounts not reflected in bank" and "Balance as per bank". The last figure must equal the closing balance on the bank statement.
If it does not agree
- An entry is in the statement but not in your books: bank charges, interest, a direct credit from a customer, a standing instruction, a dishonoured cheque. Record it (see below) and reconcile it.
- An entry is in your books but wrong in amount. Correct the voucher.
- An entry was recorded under Cash or under another bank. Correct the ledger.
- The opening difference: if the account existed before you started in Tally, the cheques outstanding on the opening date must be entered as the opening reconciliation.
Entries from the statement
Bank charges ₹236 debited by the bank: a Payment voucher.
| Ledger | Debit (₹) | Credit (₹) | |
|---|---|---|---|
| Dr | Bank Charges | 236 | |
| Cr | Canara Bank | 236 |
Interest ₹850 credited: a Receipt voucher, Dr Canara Bank, Cr Interest Received.
A customer paid ₹25,000 directly into the account: a Receipt, Dr Canara Bank, Cr the customer.
A deposited cheque of ₹12,000 was returned unpaid:
| Ledger | Debit (₹) | Credit (₹) | |
|---|---|---|---|
| Dr | City Book Depot | 12,000 | |
| Cr | Canara Bank | 12,000 |
Importing a bank statement
TallyPrime can import a statement file downloaded from the bank, and recent releases can also fetch statements for supported banks through its connected banking features. Tally then matches statement lines with book entries by amount, date and instrument number, proposes matches for your approval, and can create vouchers for lines that have no entry yet. This saves a great deal of time on busy accounts. The formats and banks supported are listed in Tally's own help; set it up with the accountant.
A worked illustration
On 30 April the Canara Bank ledger shows a debit balance of ₹1,85,000. Two cheques issued, ₹15,000 and ₹8,000, have not been presented. A cheque of ₹20,000 deposited on 29 April is not yet credited.
| Particulars | ₹ |
|---|---|
| Balance as per company books | 1,85,000 |
| Add: cheques issued, not yet presented (15,000 + 8,000) | 23,000 |
| Less: cheque deposited, not yet credited | 20,000 |
| Balance as per bank | 1,88,000 |
If the statement shows ₹1,88,000, the account is reconciled. The three items will get their bank dates in May.
How often
Monthly at least; weekly for a busy account. A reconciliation left for six months takes days and hides errors, and sometimes fraud, for all that time. Old unpresented cheques need attention too: a cheque is valid only for a limited period from its date, after which the payment should be reversed in the books and reissued if still due.
Printing
With the reconciliation on screen, Ctrl+P prints the bank reconciliation statement, listing the unreconciled items. Auditors ask for this for the last day of the year for every bank account.
Common mistakes
- Typing the voucher date as the bank date without looking at the statement, which defeats the purpose.
- Reconciling by total and not line by line.
- Not recording bank charges and interest month after month.
- Ignoring very old outstanding items.
Questions learners ask
How do I do bank reconciliation in TallyPrime?
Open Bank Reconciliation for the bank ledger, enter the bank date from the statement against each entry, and save. The balance as per bank shown at the foot should equal the statement balance.
What is the bank date in Tally?
The date on which the bank actually cleared the transaction, as shown in the bank statement.
Can Tally import a bank statement?
Yes. TallyPrime can import statement files and match them with your entries; see Tally's own help for the supported formats and banks.
All lessons
An independent learning site. Tally and TallyPrime are trademarks of Tally Solutions Private Limited. This site is not connected with, approved by or paid by Tally Solutions, and uses none of its logos, screens or course material. Keys and menu paths were checked against Tally's own help site on 12 November 2026; the software changes with each release, so if your screen differs, follow Tally's help (press Ctrl+F1). Tax treatment in the examples is for learning only: ask your accountant.