13 September 2010
Please give me some guidance about treatment of excise duty adjusment in p&l a/c as per schedule 6, if suppose purchase is Rs.100 , sales is 120 , excise on purchase is 10rs and excise on sales is rs 12 , how to show this in p&l account? how the profit to be calculated with excise figure or without it?
13 September 2010
1.As per Schedule VI the Excise duty on Sale should be disclosed as deduction from the Gross Sale amount.i.e Gross Sale 120 Less: Excise Duty 12 -------------------------------- Net Sale 108 -------------------------------- 2. On purchase u should take Cenvat of excise duty. Purchase a/c. Dr. 90 Cenvat Excise Duty Dr. 10 To Party a/c 100
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