What is Capital Account in Tally ERP | Capital Account?

What is Capital Account in Tally ERP | Capital Account?

capital account.

When a businessman starts trading with gold. It is called Capital. For example, to open a mobile shop, I need 5 lakh rupees, which if I invest from my savings, it will say 5 lakh rupees as capital.

Example

Suppose I need Rs 15 lakh to open a mobile showroom, and I have also raised Rs 15 lakh. But let's get a look at it from where it came from Rs 15 lakh.

1. I invested 5 lakhs from my savings but to start the business I need 15 lakh rupees and I have only 5 lakh rupees. so
2. Rs 5 Lakh I took a loan from SBI Bank 1 to start the business.
3. I took a loan of Rs 5 lakh from a friend. So in this way, I had a total arrangement of Rs 15 lakhs.

The business has started from 15 lakh rupees but only 5 lakh rupees is my capital. Out of the remaining 10 lakhs, 5 lakh rupees are bank loans. And have taken Rs 5 lakh from a friend.

Note: Business which is done by own money. It is called Capital. Apart from this, if you bring money from another place or take a loan or take a loan from a friend, then it is not called Capital.

1. The merchant who starts the business with money. His ledger is formed in the group of Capital Account.
2. In addition to the expenses of the business, when the business still takes money from the business for its own expenses, then lasers are also made for them in these groups. which is like this.

Proprietor capital account 

This will be the same as the trade started.

Drawing

Just as the staff is given salary in the business, in the same way, the owner of the business also needs rupees to run the house and the monthly money the businessman himself takes from his business is called Drawing.

LIC Premium: 

The money that a merchant invests in LIC is reduced by the Capital Account. LIC is considered a personal expense of the merchant.

Health Insurance: 

Whoever invests in Health Insurance is reduced from Capital. And Health Insurance is considered to be the personal cost of the merchant.

Income Tax Paid

The amount of income tax the merchant pays is less than all capital. Income tax is called Personal Expense.

School Fees

If the trader has given his children from the school's business, then this is also the personal expenditure of the trader and its ledger is also formed in the group of Capital Account.

So in the same way there are other expenses which are the personal expenses of the businessman. And all expenses are less than the group of Capital Account.

Nature of capital account

Like we give you what is the nature of every group. He is well told. Right now I tell you that there is a Nature Liability of Capital Account Group. And the balance sheet shows on the side of Liability and Liability means the money that we have to pay.
While the Capital Account is the laser from which we have started the business, then we have to pay our money. Q comes in the Capital Account Liability.
There is confusion in many people and there is a question of many people. Why does Capital Lability have a side?