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Tally entry of credit card

Yasir (article assistant ) (432 Points)

10 December 2021

how to show credit card transaction in proprietor balance sheet
and entries in tally how to show

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6 Replies

Chinmay (Accounts Professional) (356 Points)
Replied 10 December 2021

The credit card seems to be a secured loan from the bank.

1) When you pay amount from Credit Card

Expenses / Vendor A/c Dr...

To Credit Card A/c

2) When you received amount or paid by bank to Credit Card

Credit Card A/c Sr...

To Bank A/c

2 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 11 December 2021

Credit card A/c under Unsecured Loans , Current Liability effect in Balance Sheet .

Tanuj Chandra Saxenaa (Company Secretary) (7070 Points)
Replied 11 December 2021

In Case of Payment from Credit Card:-

Expense Account Debit
Credit card Credited

In Case the Payment is made by Bank to CC:-
Credit Card Account Debit
Bank Account Credit

when you Draft a Balance Sheet Show Card Card as a Current Liability as it have to be paid within 45/50 Days, Show under Liabilities Side (Headings Loans)

Ayush (Executive ) (6232 Points)
Replied 18 October 2023

When a Purchase is Made
Expenses a/c
To Credit Card a/c

When the Payment is Received from the Credit Card Company
Credit Card a/c
To bank a/c

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 20 October 2023

It's proprietor credit card, it's not applicable to the business entity concept. If it's a credit card to do business

Create a ledger credit card with bank name and last 4 digits.

The ledger must be created under bank accounts but not under occ or od as no collateral is required and the credit card limit can be put as the opening balance. It's a current asset

Then

Dr. Revenue or capital expenses

Cr. Credit card

When you repay it

Dr. Credit card

Cr. Bank