How do I account for Credit Card Merchant account in Tally or other accounting software?

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I need to create groups of accounts for a company in Tally or other accounting software. I have 2 merchant accounts with different credit card companies. One of them credits my account in their bank and only sends me a statement of amount and commissions - other sends me a cheque after deducting the commissions. - How do I account for such accounts while making entries in to accounting software? Thanks for your time and help.
I appreciate your answer Mr. Soni. My question was for a merchant account where customers pay me using their credit cards and then I receive the amount from credit card company. One directly credits my account with them while the other sends me a cheque. How do I open these accounts - under which group? Thanks again for your time.
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Sunday, November 16th, 2008 at 12:18 pm. Posted in Credit Card. Tags: , , , , . You can follow this web articles through the RSS 2.0 feed.

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One Response to “How do I account for Credit Card Merchant account in Tally or other accounting software?”

  1. If your are asking about the accounting entries, the rules are given below for your reference.

    Rule 1
    Debit what comes in. Credit what goes out
    Rule 2
    Debit the Expenses. Credit the Income
    Rule 3
    Debit the Receiver. Credit the Giver.

    A sample entry is given below for payment for XYZ expenses using credit card:-
    Dr XYZ expenses Rs 5000
    Cr Credit Card a/c Rs 5000

    Next, when you make payment (or deposit cheque in your Credit card a/c), the entry would be:-

    Dr Credit Card a/c Rs 5000
    Cr Your Bank a/c Rs 5000

    Remarks:-
    1) XYZ expenses ledger to be opened under group “Expenses Indirect”
    2) Credit card a/c to be opened under group “Bank OCC a/c”
    3) Your Bank a/c to be opened under group “Bank a/c”

    For Tally Integration using RTSlink DLL, visit and sample programs visit

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