From time to time you may need to create a reversal journal entry for a journal that you have created within your Tally account. A journal reversal cancels out the original journal. Rather than manually creating the reversal you can have Tally automatically create this for you.
To do this you need to go to Journals > Select the journal that you wish to reverse > Click the Reverse This Journal button > Save Changes.
You will then be asked to enter the date you would like to use for the reversal journal entry and Tally will automatically include ‘Reversal’ in the comment box – you can elaborate on this if you wish. Click the Add Entry button and Tally will then automatically reverse the journal for you which you can edit/add to if needed.