26 August 2009
If it is on sales, Excise duty Payable shall be credited and Debtor account shall be debited. simillary in case of purchases cenvat account shall be debit and supplier account shall be credited. at the end of month you have to see whether there is any payable of sufficient cenvat credit. Purchase entry Cenvat account dr 100 To Supplier 100 Sale entry Debtor a/c Dr 135 To Excise duty payable 135 Now you see 35/- is excess in payable acount so you have to diposit the same and Excise duty payable must Nil balance at the end of month. Excise duty discharge entry Excise duty Pyable Dr 135 To Cenvat account 100 To PLA acount 35 hope it is clear to you.
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