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Personal accounting using tally

Neeraj (Ind) (37 Points)

25 September 2013

Hello

I started using Tally for managing my personal account as salaried. Following are my few questions to start off

1. I want to create account heads for my various credit cards. What will be the type of these credit card account? Current Liability or Direct Expenses or Bank Account or what else? If i make a payment to credit card through my bank account, what type of voucher i will require to enter contra or payment?

2. What will be the account type for Fixed Assets?

3. What will be the account type of my property? What sort of entries will be done for maintenance charge, brokerage, sale proceeds?

4. How do i need to handle opening balance for property accounts? I am starting books from 01-Apr-13

Please help

Regards

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Samrendra (Asst. Manager- Internal audit) (221 Points)
Replied 30 September 2013

Hi Neeraj,

I do maintain my personal account, not in Tally but in customized software.

First thing you have to understand that its your personal account so no laws are applicable on it and you can tweak your expenses according to your perception. Like I have made one. I do not capitalize my fixed Assets irrespective of cost as I treat my profit as my savings.

Credit Card:

Can be treated as Bank OD or Current Liability. I have classified credit cards under Current Liability. Any credit card swipes for grocery or other bills are treated as expense with increase in Current Liability

Grocery Expense A/c Dr. xxxx

To Credit Card (Current Liability) xxxx

In Tally, Any payment to credit card will posted through Bank Payment Voucher (if credit card is classified as Current Liability) or Contra Entry (if credit card is classified as Bank OD)

Fixed Assets:

As told earlier I do not maintain Fixed Assets to save myself from complex problem of depreciation. Any sale of Fixed Assets are treated as other Income. Its up to you to determine minimum expenditure limit for capitalization as Fixed Assets say Rs. 20,000.

Property:

Treat Property as your Fixed Assets as it carry substantial amount of expenditure. Maintenance charges, Brokeage can be treated as Expense.

Take Fair Market Value of Property as opening balance in case you don't have exact purchase cost of Fixed Assets

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