Cheque Book Management in Tally Prime

1. Concept

Cheque Book Management in Tally Prime helps a business maintain cheque details, record cheque payments, print cheques and keep track of cancelled or unused cheque numbers.

      Why is cheque book management important?
      Helps maintain an organized record of cheque numbers.
Makes cheque-based payment tracking easier.
Supports bank reconciliation.
Helps identify pending, cleared and cancelled cheques.
Reduces the possibility of accidentally reusing a cheque number.

    

Simple Example

Example: SBI Cheque Book

Suppose SBI gives a business a cheque book containing cheque numbers 200001 to 200050.

Total cheques: 50
If 5 cheques are issued, the business has 45 cheques remaining in the range, assuming none of the issued cheques are cancelled or otherwise unavailable.

2. Cheque Book Maintenance

Step 1: Create a Bank Ledger

1 Create the Bank Ledger

Navigate through:

Gateway of Tally → Accounts Info → Ledgers → Create

Set the ledger group as:

Under: Bank Accounts

Enter relevant bank information such as:

Bank name
Bank account number
Branch
IFSC code
Other required banking details

Example: SBI Bank Ledger

Field	Example
Ledger Name	SBI Rajahmundry Branch
Group	Bank Accounts
Account Number	1234567890
Branch	Rajahmundry
IFSC	Example IFSC

Step 2: Enable Cheque Printing

2 Enable cheque printing features

Navigate to the accounting features:

Gateway of Tally → F11 (Features) → Accounting Features

Enable the appropriate cheque printing option and configure the cheque format according to the bank’s cheque layout.

Note: Cheque layouts and available options can vary by Tally Prime version and configuration. Always verify the actual screen/options in the version being used.

Step 3: Maintain the Cheque Range

3 Enter the cheque number range

For example:

Starting cheque number: 200001
Ending cheque number: 200050

Tally can then be used to keep track of cheque numbers and their corresponding status.

Cheque Range Calculation

Range = 200001 to 200050

Number of cheques = 200050 − 200001 + 1 = 50

Therefore, the cheque book contains 50 cheque numbers.

3. Cheque Printing

Once the bank ledger and cheque settings are configured, cheque payments can be recorded through a payment voucher.

1 Record a Payment Voucher

Use the Payment Voucher: F5

Select the appropriate bank ledger, such as SBI Rajahmundry Branch.

2 Enter Cheque Details

Enter the cheque number and other payment information as required.

3 Print the Cheque

Use the appropriate print option to print the cheque after checking the voucher details and cheque layout.

Example: Payment to ABC Traders

Particular	Value
Payee	ABC Traders
Bank	SBI Rajahmundry Branch
Cheque No.	200002
Amount	₹25,000
Payment Mode	Cheque

Information Printed on a Cheque

Depending on the configured bank cheque format, the printed cheque can contain information such as:

Cheque date
Payee name
Amount in figures
Amount in words
Cheque number
Bank/account information, where applicable

Tip: Always preview or verify the cheque layout before printing a large number of cheques.

4. Cheque Cancellation

A cheque may need to be cancelled when it is spoiled, damaged, incorrectly printed, or otherwise cannot be used.

1 Identify the cheque number

Example: Cheque No. 200005

2 Mark the cheque as cancelled

Use the appropriate cheque book/banking facility in Tally Prime to record the cheque as cancelled.

3 Verify the Cheque Register

The cheque should be shown with a cancelled status rather than as an available cheque for reuse.

Important: A cancelled cheque number should not be treated as an available cheque for a new payment. Maintain the cancellation record for audit and tracking purposes.

Example

Cheque No.	Status	Reason
200001	Issued	Payment made
200002	Issued	Payment to ABC Traders
200005	Cancelled	Cheque spoiled

5. Important Reports

Cheque Register

The Cheque Register is useful for reviewing cheque numbers and their status. Depending on the Tally Prime configuration, it can help track issued, cleared/pending and cancelled cheques.

Cheque No.	Amount	Status	Purpose
200001	₹10,000	Cleared	Supplier payment
200002	₹25,000	Pending	ABC Traders
200005	—	Cancelled	Spoiled cheque

Bank Reconciliation

Bank reconciliation compares transactions recorded in Tally with the transactions appearing in the bank statement.

      Example:
      If a cheque is issued on 1-Aug-2026 but the bank clears it on
      5-Aug-2026, the transaction may remain unreconciled until the bank
      statement confirms the clearance.
    

6. Understanding Cheque Status

Status	Meaning
Pending	Cheque has been issued/recorded but bank clearance has not yet been reflected.
Cleared	The cheque payment has been cleared by the bank and reconciled.
Cancelled	The cheque has been cancelled and should not be reused.
Issued	The cheque has been used for a payment transaction.

7. Practice Questions

Question 1: Cheque Book Setup

Create a Bank Ledger for SBI Rajahmundry Branch.

Maintain cheque range from 200001 to 200050.

Question: How many cheques are available after issuing 5 cheques?

Answer:
Total cheques = 200050 − 200001 + 1 = 50
Cheques issued = 5
Remaining = 50 − 5 = 45 cheques

Question 2: Cheque Printing

Record a payment of ₹25,000 to ABC Traders through SBI Bank.

Use cheque number 200002.

Questions:

Which voucher should be used?
Which bank ledger should be selected?
Which cheque number should be entered?
What important information should appear on the printed cheque?

Expected Answer:
Use the Payment Voucher (F5). Select the SBI Bank ledger and record the payment to ABC Traders. Enter cheque number 200002. The cheque layout can include the date, payee name, amount in figures, amount in words and cheque number, according to the configured format.

Question 3: Cheque Cancellation

Cheque No. 200005 was spoiled.

Cancel the cheque in Tally Prime.

Question: How should the Cheque Register reflect this cheque?

Expected Answer:
Cheque No. 200005 should be reflected as Cancelled. It should not be treated as an available cheque for reuse.

Question 4: Bank Reconciliation

Cheque No. 200010 was issued on 01-Aug-2026 for ₹15,000.

The cheque was cleared by the bank on 05-Aug-2026.

Questions:

On which date was the cheque issued?
On which date was it cleared?
What should be done during bank reconciliation?
When will the cheque be considered reconciled?

Expected Answer:
The cheque was issued on 01-Aug-2026 and cleared on 05-Aug-2026. During BRS, the bank clearance information should be matched with the cheque transaction recorded in Tally. After the bank clearance is correctly matched, the transaction becomes reconciled.

Question 5: Consolidated Exercise

Create a Bank Ledger for HDFC Bank.

Maintain cheque range: 300001–300020.

Perform the following activities:

Issue 3 cheques.
Cancel 1 cheque.
Print 2 cheques.
Generate the Cheque Register.
Explain the status of each cheque.

Suggested Exercise Result:

Cheque	Activity	Expected Status
300001	Issued and printed	Issued
300002	Issued and printed	Issued
300003	Issued	Pending
300004	Cancelled	Cancelled

The remaining cheque numbers can be treated as unused/available, subject to the actual cheque-book configuration and transactions recorded in Tally Prime.

8. Quick Revision

Topic	Key Point
Bank Ledger	Create the bank ledger under Bank Accounts.
Cheque Range	Enter the beginning and ending cheque numbers.
Payment	Record cheque payments using the Payment Voucher.
Cheque Printing	Verify the cheque details and print using the configured format.
Cancellation	Record spoiled/unused cheque numbers as cancelled.
Cheque Register	Review cheque numbers and their transaction/status information.
BRS	Match Tally bank transactions with the bank statement.

Exam Tip: Remember the sequence: Bank Ledger → Cheque Range → Payment → Cheque Printing → Cancellation → Cheque Register → Bank Reconciliation .