A sheet handling device includes a main transport path, a temporarily holding section provided in the main transport path, a transport section, a detection section provided at a predetermined detection position in the main transport path and a controller. The temporarily holding section includes a looped transport path. The controller performs a procedure including the steps of (I) transporting the sheet traveling along the main transport path to the looped transport path, (II) transporting another sheet along the main transport path, (III) controlling the transportation of the sheet and the transportation of said another sheet in response to the arrival of said another sheet at the detection position such that the sheets are stacked into a bunch in the looped transport path with certain parts of the sheets being aligned and (IV) repeating the steps (II) and (III) as required.