Starting business with tally erp
we created company with name Navjevan Super Shope. suppose we start business with 1,00000/- one lac cash so our business capital is one lac. Before we start voucher entry i want to share some knowledge about capital account and cash account.
What is Capital Account ?
Before starting any business, a businessman invests some money in to business. This investment is called as capital. In other words, the capital means the interest of owner or owners in the assets of business firm.
The capital can be classified in to following categories according to the type of business
In proprietorship firm single person is the owner of the business firm. In this case, the money invested in to business, will be called as proprietor’s capital. At the end of financial years when the profit and loss account is prepared then the balance of profit and loss account is transferred in to capital account. Drawings made by the proprietor during the financial year are also transferred into capital account.
When two or more persons start a business on partnership basis then they have to invest money in to business, as agreed by them. The investment made by individual partner will be called as partner’s capital. At the end of financial years when the profit and loss account is prepared then the balance of profit and loss account is transferred in to capital account of partners in the profit and loss ratio as agreed by them.
Drawings made by the partners during the financial year are also transferred into capital account of the partners. The interest on capital is also credited to the partner’s capital account if not paid during the financial year. Similarly the interest on loan given to partners is debited to capital account of the partner if not paid by him during the financial year.
Capital of Limited Companies by Shares
It is called share capital also. When a fixed amount is divided into small units then we call it shares. When the money is received by company after selling the shares that is called share capital. It means public can make contribution to the common stock of company. The Company has following type of capital
1) Authorized Share Capital
2) Issued Capital
3) Subscribed Capital
4) Called-up Capital
5) Paid-up Capital
6) Reserve Capital
we discus in separate post for above topics we should jump on Cash Account
In business practice, cash account refers to a business-to-business (B2B) or business-to-consumer account (B2C) which is conducted on an immediate payment basis no credit is offered.
In accounting practice, “cash account” or “cash book” refers to a day book used to record all transactions related to cash, especially cash receipts and payments. Cash account is considered as a special day book because of its duel impact in Accounting. Cash account acts as a main entry book as well as a ledger in Accounting. The duel impact of Cash book occurs due to the presence of two sides (entities):- Debit and Credit.
Simply cash account is considered as an account you have with a brokerage firm, in which you deposit cash to buy stocks, bonds and other options.
so lets go to tally erp icon and start company we created with name navjevan super shope and go to Accounting Vouchers in Transactions form Gateway of Tally screen given below
Press F6 or click on Receipt button given in image below
Receipt Voucher Screen came when cursor on account text box then click Alt + C for create a new ledger shows in images given below
we type ledger name capital as for example only and it comes under group Capital Account after creation ledger select cash account on account label and select capital account for particulars and type 1,00000.00 on amount section as image given below
this entry means Cash account debit with Rs 1,00000.00 and capital account credit with Rs 1,00000.00 after saving this voucher go to Balance sheet and see effect what we done