03 February 2009
It is stated that as per ICAI guidance notes, Exise duty provision is made on Finished goods having no effect on the profit & loss account, Is it true? what entries to be passed while making the provision of excise duty on FG. Please reply.
04 February 2009
1. Excise Duty will be debited as expense 2. credited as liability. 3. And also added to the FG value.
There will be not effect on Profit & loss account by the above entry, only this will provide the presentation of that and show the liability of excise duty on company,
As per AS-2 This is the requirement to make the provision of Excise duty on FG.
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