Entries while selling goods
This query is : Resolved
08 June 2009
A manufacturing while selling goods in this form:
Sales Value: 100
Excise Duty: 8
Total 108
Here, co passes sales entry as:
Party A/c Dr 108
To Sales A/c 108
& after month end it passes entry for excise liability as:
Excise Exp A/c Dr 8
To Excise Payable 8
Now, I wants to know that whether it is must to do pass entries this way or Company can alternatively pass entries as:
On Selling Goods:
Party A/c Dr 108
To Sales 100
To Excise Payable 8
Payment at Month end for excise:
Excise Payable A/c Dr 8
To Bank A/c 8
Can u pls tell which of these two methods is required to be followed as per Excise rules?
Sales Value: 100
Excise Duty: 8
Total 108
Here, co passes sales entry as:
Party A/c Dr 108
To Sales A/c 108
& after month end it passes entry for excise liability as:
Excise Exp A/c Dr 8
To Excise Payable 8
Now, I wants to know that whether it is must to do pass entries this way or Company can alternatively pass entries as:
On Selling Goods:
Party A/c Dr 108
To Sales 100
To Excise Payable 8
Payment at Month end for excise:
Excise Payable A/c Dr 8
To Bank A/c 8
Can u pls tell which of these two methods is required to be followed as per Excise rules?
08 June 2009
Any of the method can be followed. Becz excise does not prescibe any particular method.
08 June 2009
Hi Jitender, I agree with u that Excise has not prescribed any particular method. But Excise says that Excise exp as paid to deptt shd be considered as Manufacturing Exp. What it means then?
11 June 2009
Any views from Experts!
14 June 2009
there is no accounting entry prescribed in Excise Law, only criteria to be followed that excise liability should be fully discharged.
The second method is more appropriate as it reduces duplication of Journal Entry
there is no accounting entry prescribed in Excise Law, only criteria to be followed that excise liability should be fully discharged.
The second method is more appropriate as it reduces duplication of Journal Entry
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
