23 February 2024
Hi, I have an ICICI bank statement in my hands. In that I came across EBA charges as Prime subscription, prime upgrade pay in, SEP and NSE. Can anyone explain me what are those EBA charges and what will the accounting entry in Tally Prime for the same.
06 July 2024
EBA (Electronic Banking Association) charges typically refer to charges related to electronic banking services provided by the bank. These charges can include various types of fees related to online banking, transactions, subscriptions, and other services. Here’s how you can handle these charges in Tally Prime:
1. **Identify the Charges:** - Prime Subscription: This could be a fee for subscribing to premium banking services. - Prime Upgrade Pay In: This might indicate a payment towards upgrading to a higher level of banking service or account type. - SEP (Self-Employed Professional): This could be a specific service or account type catering to self-employed professionals. - NSE (National Stock Exchange): This could relate to charges or fees related to transactions on the National Stock Exchange.
2. **Accounting Entry in Tally Prime:** Depending on the nature of these charges, you would categorize them appropriately in Tally Prime. Here’s a general approach:
- **Create Ledger Accounts:** First, ensure you have appropriate ledger accounts set up in Tally Prime for each type of charge (e.g., Prime Subscription Fees, Prime Upgrade Fees, SEP Charges, NSE Charges).
- **Recording the Entry:** - Debit the respective expense account (e.g., Prime Subscription Fees, NSE Charges) for the amount of each charge. - Credit your Bank Account or Cash Account for the same amount.
Example: ``` Date Particulars Debit Credit ------------------------------------------------------------------- 2024-07-06 Prime Subscription Fees 500 Bank Account ```
3. **GST Implications (if applicable):** Depending on the type of charges, GST might be applicable. Ensure you account for GST correctly if it applies to these charges.
4. **Narration:** Add a brief description or narration to explain the purpose of the charge for future reference.
By following these steps, you can accurately record and track EBA charges in your Tally Prime accounting system. If you are unsure about the specific nature of these charges or how they should be categorized, consulting with your bank or a financial advisor might provide additional clarity.
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