Introduction to Capital Entry in Tally Prime
- Making a capital entry in Tally Prime is essential for accurately recording the funds introduced into your business by its owner.
- This entry helps in maintaining proper financial records, ensuring compliance and facilitating better management of finances.
- In this blog post, we will guide you step-by-step on how to efficiently make a capital entry in Tally Prime.
Step 1: Create Necessary Ledgers
Before making a capital entry, you need to ensure that the relevant ledgers are created. Start by creating your capital account ledger. Follow these steps:
- Navigate to the Gateway of Tally.
- Select Accounts Info and then Ledgers.
- Choose Create, and name it ‘Capital Account’ under Capital Account.
- Save your changes.
- Next, create a cash or bank ledger as required:
- Access Gateway of Tally again.
- Go to Accounts Info, then Ledgers.
- Create naming it either ‘Cash’ or your bank name (e.g., SBI Bank) under Cash-in-Hand or Bank Accounts.
- Save the ledger.
Step 2: Record the Journal or Receipt Entry
Now, you can record the entry of the capital based on the mode of payment:
If Capital is Introduced in Cash:
- Go to Gateway of Tally, then Accounting Vouchers.
- Press F7 (Journal) and set the date using F2.
- Debit the Cash Account with the amount (e.g., ₹3,00,000).
- Credit the Capital Account with the same amount. Narrate as: ‘Being capital introduced in cash.’
- To save, press Enter after each field and Ctrl + A.
| Particulars | Dr / Cr | Amount |
|---|---|---|
| Cash A/c | Dr | ₹3,00,000 |
| To Capital A/c | Cr | ₹3,00,000 |
If Capital is Deposited in Bank:
- Go to Gateway of Tally, then Accounting Vouchers.
- Press F6 (Receipt) and set the date with F2.
- Select the Bank Account (debited automatically) and enter the Capital Account in ‘Particulars.’
- Input the amount with a narration: ‘Being capital introduced via bank.’
| Particulars | Dr / Cr | Amount |
|---|---|---|
| Bank A/c | Dr | ₹3,00,000 |
| To Capital A/c | Cr | ₹3,00,000 |
Using journal vouchers for cash entries and receipt vouchers for bank deposits ensures that your financial records remain accurate and organized. Tally Prime also allows attachments of supporting documents for future reference, enhancing documentation and clarity in capital entries.