Treatment of excise duty in final accounts

This query is : Resolved

Abhinav (Querist)
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09 February 2012 Purchase of raw material Rs. 10000000/-
Sale of Finished Goods Rs.7000000/-

Closing Stock
Raw Material Rs.1000000/-
Finished Goods Rs. 3000000/-

All figures are exclusive of excise duty @ 10.3%

Kindly guide me the accounting entries to be entered and how these figures will be represented in balance sheet

kartik_somu

kartik_somu (Expert)
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09 February 2012 in the financials, excise duty on sales is only for disclosure purpose.

So show, gross sales, excise duty and net sales.

for excise duty on FG, pass the following entry
Finished Goods Debit
Prov for excise duty Credit

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