Personal accounting using tally

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