Paid up capital entry in Tally

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This discussion addresses how to record paid-up capital in Tally for a startup company. The initial advice suggests using bank and share application accounts, but clarifies that if the capital is registered in the Articles of Association without physical cash transfer, no immediate entry is needed in the books. Entries should be made only when subscribers actually pay their subscription money.

Clement Fernandes

Clement Fernandes (Querist)

08 May 2021 Respected Members,

Our company is a startup company withs paid cup capital of 200,000, how to enter this in tally? when I entered it as opening balance under Partners capital ledger, it shows a "difference in opening balance" in the Asset side of the Balance sheet, pls help

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

08 May 2021 1) On receipt:
Bank A/c Dr
To Share Application Money A/c
2) On allotment of shares:
Share Application Money A/c Dr
To Share Capital A/c
(opening balance is meant for entering previous year's closing balance)

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Clement Fernandes

Clement Fernandes (Querist)

09 May 2021 Thanks a lot, Mam,
But my concern is that the owner has not physically bought money to the bank or company, instead, it is mentioned in the Articles of Association of Co as registered with 200,000 capital, in such case what could be the entry?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

09 May 2021 The original query was on paid up capital. No entry required in books in case of subscribed capital. As and when the subscriber pays subscription money, allotment will be made. You may make the above entries at that time.

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