9 Bank Reconciliation
Bank reconciliation matches company’s bank ledger entries with the bank’s statement.
The result is a Reconciliation Statement showing:
- Items cleared (matched in both Tally and Bank)
- Outstanding items (not yet cleared)
- Bank balance per books vs bank balance per bank statement
- Reconciling items: cheques in transit, unpresented cheques, bank charges, direct credits
9.1 Prerequisites
- Company selected and correct financial year opened
- Bank ledger(s) created (e.g., HDFC Bank - Current)
- Vouchers and bank transactions entered in Tally (payments, receipts, contra, charges)
- Bank statement received (Excel/CSV/PDF) for the period
- (Optional) If importing, prepare CSV: Date, Description, Debit, Credit, Reference
9.2 Entering Bank Data in Tally
9.2.1 Manual Entry
- Record all bank transactions using vouchers:
- Payments: Payment Voucher (select bank ledger)
- Receipts: Receipt Voucher (bank ledger as Dr)
- Contra: For cash-bank transfers
- Bank Charges/Interest: Payment voucher (bank ledger credited, expense/interest debited)
Example Entries - 03-07-2025 — Cheque to Supplier XYZ — ₹15,000 (Payment voucher: Credit HDFC, Debit Creditors) - 10-07-2025 — Customer RTGS receipt — ₹20,000 (Receipt voucher: Debit HDFC, Credit Debtors) - 31-07-2025 — Bank charges ₹200 (Payment: Credit HDFC, Debit Bank Charges)
💡 Tip: Record cheque numbers and reference for easy matching.
9.3 Open the Bank Reconciliation Screen
- Path:
Gateway of Tally → Display → Statements → Bank Reconciliation - or
Gateway → Accounting Vouchers → Bank Reconciliation - Choose the Bank Ledger (e.g., HDFC Bank - Current)
- Set period with
F2(e.g., 01-07-2025 to 31-07-2025) - Screen displays: bank statement lines (if imported), book entries, ability to mark “Reconciled”
9.4 Matching / Marking Reconciled Entries
9.4.1 Manual Reconciliation
- Match each bank statement line with the Tally voucher (amount, date, cheque/UTR/reference)
- Select both, mark as reconciled (key/button varies; Space/R/Match/Enter)
- Confirm reconciliation date (often bank statement date)
- Repeat for all cleared items
Example - Bank shows RTGS ₹20,000, 10-07-2025, UTR123; Tally shows same receipt on same date. Mark both as reconciled.
9.5 Review Reconciled & Unreconciled Lists
- Filter to see:
- Reconciled Entries: matched, with reconciliation date
- Unreconciled (Book): vouchers entered, not yet cleared in bank
- Unreconciled (Bank): bank statement entries not recorded in Tally
How to view:
Within the Reconciliation screen, use F12/View to switch between lists.
Example Output - Reconciled: Receipt ₹20,000 (10-07-2025), Payment ₹15,000 (03-07-2025) - Unreconciled: Cheque payment ₹5,000 (27-07-2025, not yet cleared) - Bank charges not in Tally: Bank charges ₹200 (31-07-2025)
9.6 Creating/Reversing Vouchers for Bank Adjustments
- Bank charges/interest/direct credits: create vouchers in Tally (Payment for charges, Receipt for credits), then mark as reconciled
- Dishonour/bank debit errors: create reversal/adjusment vouchers
Example - Bank debits ₹300 service charge (31-07-2025): Payment voucher — Debit Bank Charges ₹300, Credit HDFC ₹300
9.7 Generate Reconciled Statement / Reconciliation Report
9.7.1 Summary Statement
Shows: - Balance as per Bank Statement (closing) - Add: Deposits in transit - Less: Unpresented cheques - Adjusted bank balance (should match books) - Balance as per Tally books
Sample Bank Reconciliation Statement Format
| Description | Amount (₹) |
|---|---|
| Balance as per Bank Statement (closing) | XXX |
| Add: Deposits in transit | YYY |
| Less: Unpresented Cheques | ZZZ |
| Adjusted Bank Balance | XXX + YYY - ZZZ |
| Balance as per Books (Bank Ledger Closing) | AAA |
If adjusted bank balance = book balance → reconciliation complete.
9.8 Saving & Locking Reconciliation (Audit Trail)
- Save session; Tally records reconciliation date
- Some versions allow locking or audit notes—add narration for reconciling items
9.9 Practical Example: Full Walkthrough
Scenario - Book closing balance (HDFC) 31-07-2025: ₹50,000 - Bank statement closing: ₹42,500
Bank statement items not in Tally - Bank charges ₹200 - Interest credited ₹700 - Customer cheque ₹7,000 cleared
Tally book items not in statement - Cheque to supplier ₹5,000 (not yet presented) - Cheque to staff ₹500 (not yet presented)
Steps - Open reconciliation for HDFC, set period - Match & reconcile receipts, charges, interest - Leave cheques as unreconciled - Generate statement:
| Description | Amount (₹) |
|---|---|
| Bank statement | ₹42,500 |
| Less unpresented | ₹5,500 |
| Adjusted bank balance | ₹37,000 |
| Book balance | ₹37,000 |
Export reconciliation report as PDF for audit.