Try ERPNext Buy Support Partners Foundation

Money from owner used to start a small business

Good day all

I am starting my own company and I have been busy for the past few months entering the buying transactions into ERPNext. I have not yet started seling as I want to first set up the production-configuration in ERPNext.

So I started with a zero balance and I have been purchasing stock items. And this has all been funded by myself. I now need to reflect all that money in ERPNext. I have been reading about Capital accounts
and Loan-accounts and with me having very little accounting experience ( I am an engineer ) it is a bit of a battle.

I am sure there are many out there that this is an easy one. Could you perhaps halp me to create the correct accounts ( although I see there is default a “secured loan” account ) and also to get the debits and credits right .

Many thanks
John

John, did you solve this?

If you did cash purchase :

Cash A/C Dr 100
Capital A/C Cr. 100

Purchase A/C Dr. 100
Cash A/C. Cr 100

Or you can simply pass below entry :
Purchase A/C. Dr. 100
Capital A/C. Cr. 100

Simple rule is :
If you adding something in your business
Something A/C. should be debited
Capital A/C should be credited

If you are withdrawing from business
Capital A/C should be debited
Withdrawal (Cash etc) should be credited

You can also maintain Current A/C for withdrawal from business.