1st close of the Fund.

 This is the step where fund comes to life in the eyes of the fund accountant, until that GP will be taking care of all the requirements for the setting up of a fund.

1st Closing is basically the admission of the partners into the fund, Investor Relations (IR Team) team will took all the details from the GP (client) like Commitment, Region of the investors & feed those details into the accounting software (Investran we use).

During 1st Close some percentage of the Commitment will be drawdown (called) from the partners.

following are the accounting entries we will book for the 1st Capital Call.

Expenses incurred till now (only banking expense will be there as bank account is already opened on the name of the fund).                                                                                                                                                                                                                                                                                                            

1st Closing Date is the date on which we books all the expenses (bank charges & bank interests) incurred till now for the fund to match bank statement with our books.  

When we open the bank account in the name of the fund, till 1st close bank will charge monthly charges & interest in the fund bank account.

                                           Banking Expense a/c                       Dr 

                                                    To Cash Paid a/c                                                                                                                                                                                

next we will book the receivable entry of the capital call 1st close :

                                      Capital call receivable a/c                 Dr

                                                    To Capital contributions a/c

when we receive the funds :

                                     Cash received a/c                             Dr

                                                    To Capital call receivable a/c

Location: Under, Railway Station Rd, Sambasiva Pet, Guntur, Andhra Pradesh 522001, India

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