how to Make tally entry For Newly opened Franchise pvt ltd co., investment shares 70 lakhs from the investor and 30 lakhs invested by the franchise co., how to make this entry. and profit sharing ration is 49:51 please let me know the entry
09 July 2024
To record the initial investment made by the investor and the franchise company in Tally ERP 9, you would typically create journal entries. Here's how you can do it based on the information provided:
### Initial Investment Entries:
#### 1. Investor's Investment (70 Lakhs): Assuming the investor invests 70 lakhs in cash:
- **Debit** the Bank Account (assuming it's a current asset account) with 70,00,000. - **Credit** the Capital Account of the Investor with 70,00,000.
**Example Journal Entry:** ``` Bank A/c Dr 70,00,000 To Investor's Capital A/c 70,00,000 ```
#### 2. Franchise Company's Investment (30 Lakhs): Assuming the franchise company invests 30 lakhs in cash:
- **Debit** the Bank Account (current asset) with 30,00,000. - **Credit** the Capital Account of the Franchise Company with 30,00,000.
**Example Journal Entry:** ``` Bank A/c Dr 30,00,000 To Franchise Company's Capital A/c 30,00,000 ```
### Profit Sharing Ratio (49:51): If the profit sharing ratio between the investor and the franchise company is 49:51 respectively, you don't typically make an entry for this in Tally ERP 9 until profits are distributed or adjustments are made at the end of the accounting period. Profit sharing ratios affect distribution of profits rather than initial investment entries.
### Important Notes: - Ensure you have separate Capital Accounts for each investor (individual or entity) and the franchise company. - Verify the nature of accounts (like Bank A/c, Capital A/c) used in your Tally ERP 9 setup to match your specific chart of accounts.
By correctly recording these entries, you maintain accurate records of initial investments in your newly opened franchise private limited company in Tally ERP 9. If you are unsure about specific account names or setup, it's recommended to consult with a qualified accountant or Tally ERP expert for guidance tailored to your business setup.
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