Cash management expenses

Hii All,

How we treat cash management expenses in tally, means we withdrawn some amount from our current account for cash management expenses and repaid the same amount within 2 or 3 days.so ,what are the journal entries and under what head it will comes in tally.

Regards,

Sruthy

Replies (5)
Quick Summary
This discussion explores how to accurately record cash management expenses in Tally, particularly when funds are withdrawn from a business account and repaid shortly after. Participants debate the best accounting methods, considering whether to treat these as capital or indirect expenses. The conversation also touches upon handling cash withdrawals for salaries, director's personal cash contributions, and purchases from local vendors without GST receipts, seeking guidance on proper Tally entries for these common business scenarios.

If you follow the accounting conventions it's a lengthy process. You have to create a ledger for that under capital. Then Dr. Capital and credit drawings amount. Then Dr. Drawings and cr. Bank account. Rather, one can manitain a ledger under indirect expenses and Dr. Withdrawal expenses and cr. Bank. Then Dr. Capital and Cr. Capital account. But the second method could hamper ratios. So first method is best because this is not a commercial transaction. If the owner withdraws for business use, then use this method. 

Sorry meant meant dr.capital and cr. Bank - this is not an entry but a reconciliation.  I couldn't sleep till now. 

Then Dr. Capital and Cr. Capital account.(wrong) So it's just Dr. Drawing expense and Cr. Bank if owner withdraws for business purpose.  

 

 

1.Cash A/c Dr. 

   to Bank A/c ( when cash withdrawal from bank )

2. Expenses A/c Dr.

    To Cash A/c ( for expenses paid )

3. Bank A/c Dr.

    To Cash A/c ( Cash Deposit in Bank  ) .

 

Now big blunders happen everywhere and this is one. I'm insured under audit threshold. 

Dear Experts, 

Please Guide.

We have started a business, I think we are doing many mistakes. We withdraw money for workers salary, we withdraw less money Exp. 100000 Rs but actual payable salary is around 160000, Balance 60000 we have been paid to workers already as advance and those 60000 I received from my Director (Not Withdraw from Bank, It's their own personal cash).  Sometimes we purchased some material from those local vendors who don't charge GST and Just provide a nomal slip or sometimes without any Slip. And paying them cash (withdraw from bank and Received from Directors) I'm confused how to manage this all. These small items purchase and Expenses (Tea, Food) are without GST and and value around 200000/Month. How will I enter them in Tally.

Thank you in advance

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details