PARTNER'S CAPITAL IN TALLY

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This query is : Resolved

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This discussion clarifies how to represent a partner's capital contributions in Tally. It explains that the partner's capital in other business concerns should be shown as 'Investment' on the balance sheet. The closing balance is calculated by adjusting the opening balance with additions, profits, withdrawals, and losses.

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)

28 August 2021 MY CLIENT IS A PARTNER IN TWO BUSINESS CONCERNS AND HE IS A SOLE PROPRIETOR IN ANOTHER ONE CONCERN.MY QUERY IS HOW TO SHOW HIS CAPITAL ACCOUNT BALANCE IN WHICH HE IS A PARTNER IN BALANCE SHEET?
WHETHER IT COMES TO CURRENT ASSETS DIRECTLY OR I HAVE TO MAKE ANY JOURNAL ENTRY FOR THIS?
PLEASE GUIDE ME

ROHIT JAIN

ROHIT JAIN (Expert)

28 August 2021 In Branch and Division section Show it as " Investment in Partnership Firm 1" , " Investment in Partnership Firm 2" and " Investment in Proprietorship Firm 1"

Message likes : 1 times

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)

28 August 2021 THANK YOU FOR YOUR RESPONSE.
MAY I SHOW THE ENTIRE CLOSING BALANCE OR I HAVE TO MAKE ANY JOURNAL ENTRIES?
BECAUSE HE WITHDREW SOME CASH FRO BOTH THE PARTNERSHIP FIRMS/

ROHIT JAIN

ROHIT JAIN (Expert)

28 August 2021 Closing Balance of Capital Account = Opening Balance + Additions in cash or through bank + Profit of Current Year(if any) - Withdrawns in cash or through bank - Loss of Current year(if any).

Reflect Closing Balance as on 31.03.2021 in Individual Balance Sheet

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)

28 August 2021 OK. THANK YOU VERY MUCH

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