Capital account entry in tally

559 views 2 replies
User Avatar

3 Points Joined May 2025

I am creating accounts in tally. The owner has not physically invested any money in the company as opening capital. The share capital in the commercial register is showing 20,000 Rs. I have to show this figure as capital  to match with commercial register.How do I pass this entry in tally ? Obviously the opening balance in bank account is nil. Money started coming into the business from sales and that way it went forward. Your help would be appreciated.

0 Reply Share Follow
On 07 May 2025 at 17:41 Report
Replies (2)
User Avatar

Master in Accounts & high court Advocate
9037 Points Joined December 2011

To record the share capital in Tally without any physical investment, you can pass a journal entry that reflects the share capital in the books of accounts.

Since there's no actual cash inflow, you'll need to create a journal entry that credits the share capital account and debits a suspense account or a similar account that represents the non-cash aspect of this transaction.

Steps to Pass the Entry in Tally

1. *Create Ledger Accounts*: - Ensure you have the "Share Capital" ledger account created under the "Capital Account" group. - Create a ledger account named "Suspense Account" or "Share Capital Adjustment Account" under the "Current Liabilities" or "Current Assets" group, depending on the nature of the adjustment. 

2. *Pass Journal Entry*: - Go to "Gateway of Tally" > 

"Accounting Vouchers" > "Journal Voucher" (F-7). - Date: Enter the date for the journal entry, typically the start date of your accounting period or when you begin using Tally for accounting. - 

Debit: Select the "Suspense Account" or "Share Capital Adjustment Account" and enter the amount ₹20,000. - 

Credit: Select the "Share Capital" account and enter the amount ₹20,000. - 

Narration: You can add a narration like "Recording share capital as per commercial register." Example Journal Entry - *Debit*: Suspense Account / Share Capital Adjustment Account ₹20,000 - *Credit*: Share Capital ₹20,000 Considerations -

*Future Adjustments*: As the business generates profits or incurs losses, and you decide how to treat the share capital adjustment, you might need to adjust the suspense account accordingly. - 

*Balance Sheet Presentation*: Ensure that the presentation in the balance sheet accurately reflects the share capital and any adjustments made.

By following these steps, you can accurately record the share capital in your Tally accounts, ensuring compliance with the commercial register requirements while reflecting the actual financial position of your business .

Reply
On 07 May 2025 at 21:40
User Avatar

3 Points Joined May 2025

Thank you so much for your reply sir. Much appreciated 

Reply
On 21 May 2025 at 15:43


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading