1. Set Up Your Capital Account
For each investor who puts in money , there has to be a capital account created ( account-type/sub type should be equity).
2. Record the Capital Inflow (The Investment)
When the capital is physically deposited into your business, the capital investment has to be a Transfer from this account to the Bank account.
Example Accounting Entry:
Debit: HDFC Bank A/C — ₹5,00,000 (Increases your cash asset)
Credit: Capital A/C - Investor John — ₹5,00,000 (Increases your equity liability)
3.Track Drawings, Dividends, or Capital Withdrawals
If an investor or owner withdraws funds from the business, or if you pay out returns on capital that affect equity, it should be logged as a Transfer to this account.
Example Accounting Entry:
Debit the Capital Account (or a separate "Drawings Account" under the capital group) to reduce the equity balance.
Credit the Bank Account to reflect the cash leaving the business.
4. Monitor via Financial Reports & Tally Sync
Once the entries are logged, Zeev’s reporting system handles the rest:
Balance Sheet: Check your live Balance Sheet in Zeev. The total capital invested will reflect under the Liabilities/Equity side, balancing perfectly against your current cash, inventory, and working capital on the Assets side.
One-Click Tally Sync: If your chartered accountant prefers working in Tally for end-of-year tax filing or deep auditing, use Zeev’s native Tally Integration. Your capital ledger entries will push directly into Tally without requiring manual dual-entry.