What is Narration in Tally Prime ?

Narration in Tally refers to the brief explanation or description provided for a transaction at the time of entering a voucher. It appears below the ledger account entries and serves as a note explaining why a transaction was made.

📌 Why is Narration Important?

Clarity in Records: It tells the story behind a transaction, helping anyone reviewing the account understand its purpose.
Helps in Auditing: During audits, narrations reduce the need for back-and-forth clarifications.
Saves Time: Instead of opening supporting documents, the narration gives a quick summary of the transaction.
Legal and Tax Compliance: Well-written narrations support compliance with GST, income tax, and other regulations.

✍️ Where is Narration Used in Tally?

You’ll find narration used in almost all types of vouchers in Tally:

Payment Voucher: Explaining the reason for payment
Receipt Voucher: Mentioning the source of income
Journal Voucher: Giving context to adjustments or provisions
Contra Voucher: Detailing transfers between bank and cash
Sales/Purchase Voucher: Adding details about invoice, discount, or tax

( Payment ) Related Narrations

Being cash paid to M/s XYZ Traders receipt no. 012 dated 1/5/13
Being cheque issued to M/s XYZ Traders receipt no. 024 dated 10/5/13
Being amount paid to M/s XYZ Traders from bank through NEFT / RTGS
( Being cash paid to M/s XYZ Traders after deducting 2% cash discount vide receipt no.
045 dated 20/5/13 )
Being advance given to Suresh
( Being amount paid for LIC Premium / PPF / Infra Bond in cash / through bank )

( Receipt ) Related Narrations

Being cash received from M/s XYZ Traders (Cash)
Being cheque received from M/s XYZ Traders (Cheque)
Being amount received in bank from M/s XYZ Traders through NEFT / RTGS (Bank)
Being amount received from M/s XYZ Traders after deducting 2% cash discount
Being interest received on PPF A/c as per passbook / bank statement

( Banking ) Related Narrations

Being cash deposited in bank
Being cash withdrawn from bank
( Being bank charges deducted by bank as per bank statement / passbook )
( Being interest credited by bank as per bank statement / passbook )
( Being interest charged by bank on loan for the period 1-3-13 To 31-3-13 as per bank
statement )
( Being bank charges, earlier deducted, reversed by bank as per bank statement )
( Being dividend received from M/s XYZ Company Ltd. directly deposited in bank A/c
as per bank statement )
( Being cheque received from M/s XYZ Traders returned / dishonoured by bank )
Being term loan received from bank
Being loan installment for the month March, 2013 paid to bank
Being income tax refund for the assessment year 2013-14 deposited / received in bank