Closing Balance of Excise Duty ( Excise Duty on Stock)

This query is : Resolved

Amit Sharma (Querist)
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10 February 2009 Is the excise paid during the year is shown as expense in p&l a/c. for eg.

Excise output= 30000

input= 40000

Closing Balance = 10000

what is the account tretment of above?

CA MOHIT VAATS

CA MOHIT VAATS (Expert)
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10 February 2009 Excise duty of Rs.30000 is your liability which is setoff with ITC of Rs.40000. The entry will route as follow:-

Debtor Dr
Sales Cr
Excise Duty Payable Cr
Sales Tax Cr

Now Excise duty Payable will Setoff with Your ITC

Excise Duty Payable Dr
Advance Excise Duty/Modvat Cr

The closing Balance is your Current Assets which reflect in Assets side of B/S...