KADG - PRO : T2 EXP1(Purchase) Journal Entry in TallyPrime with Final Accounts

Practical Accounting Project on Proprietorship Trading Business [PRO : T2 EXP1(Purchase)]

In this Practical Accounting Project, We are learning Journal Entry in all type of Digital Accounting Software, but as the Time constrain and Indian Scenario, we have taken the example of TallyPrime entry with screenshot and references here.

So, anyone can do the same transactions, as refer in this page with TallyPrime, which is also similar or little bit different in screen look only, if you choose any other Accounting Software like Zoho books, QuickBooks, BUSY, Vyapar , Marg etc and many others. 

The Transaction Process, that are given step by step is almost same and perfect for Digital Accounting ecosystem.

Digital Books of Account using TallyPrime 

KA DIGITAL WORLD (KADG)

Transaction No.PRO: 2(T2), Expense Voucher No.1(EXP1), Stat Adjustment Journal No.1 Entry in TallyPrime

Learning Objective from this Post :

• Journal Entry for Carriage Inward Expenses on credit.

• RCM(Reverse Charge Mechanism) Entry in TallyPrime
  

• Purchase Voucher Entry for Carriage Inward Expenses on Credit using TallyPrime
  

Business Details with Address

Trade Name : KA DIGITAL WORLD

Tax Year 2026-27

Address : Bhubaneswar, Khurda, Odisha, India, PIN - 751001

Constitution/Style of Business : Proprietorship

Nature of Business : Retail and Wholesale Trading of Computer, parts and accessories.

GSTIN - 21XXXXXXXXXXXXX

  Transaction No. PRO: 2   

Date : 01/04/2026

Invoice No.578 subject to RCM(Reverse Charge Mechanism) received from Pawan Roadways, Cuttack for ₹28,036/- towards transportation charges against Taj Computer, Mumbai Invoice No.074.

Journal Entry :

GST Payable under RCM is 5% on ₹28,036/-    = ₹1,401.80

CGST = ₹700.90, SGST = ₹700.90    

Steps to record this transaction in Tallyprime

Press 'F11'

Select 'Yes' on 'Set/Alter Company GST Rate and Other Details'

Select 'Yes' on 'Applicable for Reverse Charge'

Alter Ledger Account 'Carriage & Freight' under group 'Direct Expenses'

Set 'GST Rate : 5%'

Select 'Yes' on 'Applicable for Reverse Charge'

Create Ledger Account 'Pawan Roadways, Cuttack, Odisha' under group Sundry Creditors with valid GSTIN and PAN.

Select 'Yes' on 'Set/Alter additional GST details'.

Select 'Yes' on 'Is the party a transporter'

Enter party GSTIN as Transporter ID.

Create a sub voucher type 'Expense' under primary voucher type 'Purchase'

Press 'F9' to enter expense voucher under purchase voucher.

Select voucher type 'Expense'

Press 'Ctrl+H' or click on 'Change Mode'.

Select 'Accounting Invoice'

Record the voucher details with amount for ₹28,036/-

Check GST payable under RCM in GSTR 3B report.

Press 'D' or click on 'Display More Reports'

Press 'O' or click on 'Statutory Reports' 

Press 'G' or click on 'GST Reports'

Press '3' or click on 'GSTR-3B' to view GSTR 3B

Select and press 'Enter' on 'Other Reports' to view Reverse Charge Supplies. 

 

Now voucher entry and report check is complete. But the GST payable amount under RCM is not shown in Liability Ledger under group 'Duties and Taxes'.

So you have to pass a Stat Adjustment journal entry for transfer the RCM payable amount to output GST and Input GST Ledgers.

Press 'F7' on voucher entry screen to enter journal voucher.

Press 'Alt+J' or click on 'J:Stat Adjustment'.

Select type of duty/tax : GST

Select Nature of Adjustment 'Increase in Tax Liability & Input Tax Credit'

Select additional nature of adjustment 'Purchase under Reverse charge from Registered Dealer'

Record the voucher as shown in the image below.

GST amount payable under RCM is not allowed to pay through ITC by GST portal.

One must have to pay it only through Cash Ledger instead of having eligible ITC balance.