13 July 2012
In addition to experts comment, I want to add that what ever you deposit in PLA (A lumpsum amount for payment of Excise Duty for the month) , that will be debited and the amount of duty you utilized for payment of Excise will be credited.
Its a ledger which will always show debit balance and the same can be utilized when you need to pay the excise duty.
The first entry is okay. The second entry should be excise duty paid A/c, because duty is paid not only for sales, but also for tranfer of stocks, samples, destruction etc.,
If a company is not having any branches only doing factory gate sales, the second entry is okay.