Banking and Cash Transactions

We press Esc key and then enter key to finally quit from tally.

To duplicate a voucher, select a voucher from the list and press Alt + 2. Tally will create a duplicate of the voucher carrying data from the selected voucher, which can be modified and saved.

When a deposited cheque is dishonoured, the entry must be reversed. Since the original deposit was recorded on the debit side of the cash book, the dishonour is recorded on the credit side.

A bill receivable account records the receipt and maturity of bills. When a discounted bill is dishonored, the bank debits the customer's account, not the bills receivable account, because the bill is already out of the business's possession.

Non-acceptance of a bill means the bill was never formally accepted as a legal instrument, so there is no bill to dishonor in the books of accounts.

A contra entry occurs when a transaction affects both the cash and bank columns of the cash book simultaneously, such as depositing cash into the bank or withdrawing cash from the bank for office use.

An amended cash book is updated only for transactions that have already occurred in the bank pass book but have not yet been recorded in the business's cash book.

A debit balance in a bank pass book means the bank has a claim against the client (an overdraft), which is unfavorable for the client and favorable for the bank.

A deposited cheque not yet collected is a timing difference between the cash book and pass book, which is handled in the Bank Reconciliation Statement, not by amending the cash book.

If the entry was made in the business account and the dishonor was also recorded in the same account, the errors effectively cancel each other out, resulting in no net difference.

Negotiable instruments are written orders or unconditional promises to pay a fixed sum of money on demand or at a certain time. Hence, a fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. 

A demand deposit is an account with a bank or other financial institution that allows the depositor to withdraw his or her funds from the account without warning or with less than seven days notice.

Demand deposits are bank accounts from which funds can be withdrawn at any time without prior notice, such as savings or current accounts.

Credit cards allow transactions without immediate cash or check payment and provide a credit limit for purchases, making both statements correct.

 Bank deposits that can be withdrawn without notice are called Demand Deposits.