Treatment in books of accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 can any one tell me the way of treating the paid excise duty,education and higher education cess paid to the supplier and at the same time if it is collected from the buyer...please eloberate your answer with the
way they should be treated in books of accounts and the amt to be remitted to govt..hope i have a quick reply..thank you in advance

CA Parul Saxena

CA Parul Saxena (Expert)
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30 September 2013 Central Excise Duty Input Dr.............
Educational Cess Input Dr................
Secondary and higher education Cess Input Dr.......................................
To Creditors
(Input accounts as mentioned above to be grouped under Current Assets)
manufacturing Duty Dr..........
To Central excise duty output
To Education cess output
To Secondary and higher education cess output
(Output account mentioned to be grouped under current liabilities and Manufacturing account created is shown by way of deduction from Sales while peparing profit and loss account at the year end)
In the month end pass the following entry after setting off input amount with the output:-
Central Excise Duty output Dr.
Education Cess Duty Dr.
Secondary & Higher education cess Dr.
To Central Excise Duty Input
To Education Cess Input
To Secondary and higher education cess Input
To Central Excise Duty Payable
To Education Cess Payable
To Secondary and higher education cess payable