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How to record Capital brought into the Business in Tally.ERP 9?

In Tally.ERP 9 Accounting Software we can record the Funds flew into the Company while starting the Business. Capital Brought into the firm will be recorded using either Receipt Voucher Type or Journal Voucher in Tally. Both are correct but here we are showing you in different way to pass Capital transaction using the Journal Voucher Type.

Image: Journal Voucher Creation in Tally.ERP 9
Journal Voucher Entry in Tally.ERP 9

Every business starts its accounts by passing the Capital brought into the business for purchasing the Assets, Goods, and for paying off the day to day business expenses, if it is a newly started business. And this is the Voucher entry that will be passed in the Books of Accounts. Here, we have created a Company named AccountsGuy.Net in Tally.ERP 9 the proprietor of the firm has brought a initial capital of Rs.1,00,000/- in Cash.

As the Capital is not Traded Receipt, hence it can be recorded using the Journal Voucher Type which is the one of the Accounting Voucher Types in Tally. There are few more transactions like Depreciation, VAT Adjustment, which can only be recorded in Tally.ERP 9 using the Journal Voucher Type.

For recording the Cash brought as capital first we must load the Company and after that

  1. Select Accounting Vouchers option under Transaction in Gateway of Tally screen.
  2. In the Accounting Voucher Creation screen you can see the type of the Voucher opened.
  3. To change the Voucher Type to Journal Voucher Type either select the F7: Journal button available in the Button Area or press F7 Key using the Keyboard.

If you want to allow the Cash or Bank ledgers in the Journal press F12 in the Accounting Voucher Creation screen, set YES for Allow Cash Accounts in Journals option.

is the founder of AccountsGuy.Net with the view of providing Accounting and Technical support using Accounting package Tally ERP 9, and Office Tools to the people. I write articles on Accounts, Blogging, Computer Operating, and technical issues and some of my experiences on them for students, beginners. Follow our Networks or sing-up for the email newsletter below for your daily dose of Tips and Tricks.
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{ 16 Comments... read them below or add one }

Husain Saifuddin said...

What about a running business? Do they need a capital account if started using Tally ?

Venkkatesh K said...

Dear Husain Saifuddin,

If you have started Accounting your Running Business in Tally Accounting Software in the middle of the year, you have to create a Capital Account Ledger and just provide the Opening Balance of the Capital Account as on the first day of the Fiscal Year.

For Capital Ledger create read this article: How to create Capital Ledger Account in Tally?

pankaj agarwal said...

i am operating mobile & It business , how to create sales of IT & Mobile sales separately

Venkkatesh K said...

You can create Separate Sales Voucher Types for that.

Kishan Agrawal said...

I want to record capital introduced as stock (not cash)
What can i do?

Venkkatesh K said...

Debit the Purchases Account and Credit the Capital Account.

Unknown said...

If stock introduced as capital how to pass the journal entry in tally?

Venkkatesh K said...

Read this Comment

alvin rojo said...

how can i change capital amount? i tally relects 2,000,000 capital but the total money spent initially for stocks,equipments and expenses amounted only 1,700,000+

Venkkatesh K said...

Using the Ledger Alteration you can change opening Balance of the Capital Account. As well you can use the Payment Voucher for recording the above cited expenses and purchases.

Sujith C said...

Hi i am working in Oman, my company run by an Indian he wants to install tally here in his company, if we bought tally from india will work here or we need to purchase from here (expensive than indian) please advice

Venkkatesh K said...

Contact me @

Unknown said...

hi, my company is running and company want to invest further capital in cash...kindly explain how do i enter further capital in running business

Venkkatesh K said...

Same entry as explained in this article.

Rohini s said...

Hello sir, I have doubt I am taking care of Rent income and expenses in company it is new company i am a fresher to real estate records, how to record security deposit received from each flat, one point is I don't know whether the tenants going to stay in the flats for a year or more

Now I have treated transactions in tally like this

Cash Dr
To security deposit flat #123

I have created separate security deposit group under liability side in tally

Venkkatesh K said...

What you did is absolutely correct as in your case. But is advisable to use the Tenant Ledger instead of Security Deposit Flat # 123. In narration you may write the Deposit for which Flat or you may use Cost Center.

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