09 June 2014
On 26-4-2011, M/s National Traders received a sales order from Excel Traders, Mumbai for 4 photo copying machines priced at ` 43,000 each. M/s National Traders raised a sales invoice for the said item vide invoice number 012, despatched 2 nos and requested the branch office – National Enterprises to despatch remaining quantity. CST @ 2% was charged while invoicing against C Form. The sale value and CST amount of goods despatched by branch office was reversed on 27-4-2011.
The above is a question given by Tally Solutions in its guidance book and following are the entries they gave:
Entry 1 (Interstate Sale Entry)
Excel Traders 175440
To Interstate Sales 2% 172000
To CST 2% - Interstate Sales 3440
Entry 2 (Reversal of Interstate Sales to Sales Outside the State)
As far as I am concerned National Traders should have nothing to do with the sale made by National Enterprises (its Branch) as the sale made by branch is outside the state of National Traders.
I feel that National Traders should just pass the reversal entry
CAclubindia
