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Payment Entry for Capital Account

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  • February 6, 2024

Payment Entry for Capital Account

Question:

“How to generate a Payment Entry for capital investment by a shareholder, with the invested amount being deposited into the company’s Bank Account.”

Answer:You have the option to generate a Payment Entry for a Shareholder. After adding a Shareholder in BizCentric, you can choose them within the Payment Entry interface.

The only aspect to confirm with your CA is the ‘Account Paid From.’ If you create this Entry from Payment Entry, which is configured to receive payment based on accruals, you will need to specify a Debtor or Creditor account for selection in the ‘Account Paid From’ field.

Payment Entry via Journal Entry

If this doesn’t help, you can very much create a Journal Entry to manage this scenario. A simple Journal Entry would be:
Cr. Shareholder’s account……………. XXX
Dr. Bank account ……………………….. XXX
In the Journal Entry, you also utilize fields such as Reference Number and Date to track customer cheque details.