Capital Management keeps track of the money invested in your business and who it belongs to. It is especially useful for partnerships and businesses with outside investors, where profit has to be shared fairly.
Capital, investors & profit #
- Record money put in as capital at vfile.app/capital-management/capital.
- Add each partner as an investor at vfile.app/capital-management/investors.
- Use the profit tools at vfile.app/capital-management/profit to calculate and share profit by each investor’s stake.
Worked example #
You start a business with a partner and want the money and profit split to be crystal clear.
- You add two investors: Ali with ₨600,000 and Bilal with ₨400,000 — total capital ₨1,000,000, so Ali holds 60% and Bilal 40%.
- After six months, the business has made ₨500,000 profit (from your Profit & Loss).
- You distribute it by share: Ali gets ₨300,000, Bilal ₨200,000.
- You pay each partner from your bank account and the payout is recorded.
What this affects #
- Capital total & shares — the business shows how much is invested and each investor’s percentage.
- Ties to real profit — the split uses the profit figure from your Profit & Loss report.
- Payouts come from a payment account, reducing its balance.
- Investors are not customers — capital does not appear on any customer’s ledger.
Frequently asked questions #
Are investors the same as customers or suppliers?
No — investors are separate records for people who put money into the business, not people you trade with.
How is each partner’s share of profit decided?
By their share of the total capital. In the example, 60/40 splits the profit ₨300,000 / ₨200,000.
Where does the profit figure come from?
From your Profit & Loss report, so keep costs and payroll accurate for a fair split.