Our Company has Purchased 100 bags Taxable Item from suppliers for sale... but these bags out of 20 bags used for our office use i.e. Expenses ...So What is entry made in Tally .ERP 9 ? How can show effect on closing Stock ??????
THANKS IN ADVANCE
18 Replies
Rushabh Shah
(Business)
(574 Points)
Replied 09 March 2012
Stock a/c dr.
Supplier a/c
(Purchase)
Expense a/c dr.
to Stock
(Stock treated as expense)
Is it rite?
SRI LAKSHMI.V
(Article Assistant)
(53 Points)
Replied 09 March 2012
You will first post a Purchase Entry ie.)
Purchases A/C Dr.
To Supplier A/C.
On payment,
Supplier A/C Dr.
To Bank A/C.
For the part which is used for Office Purpose, you can raise a Journal :
Office Maintenance A/C Dr.
To Purchases A/C.
Correct me if am wrong
vinodh
(Final )
(182 Points)
Replied 09 March 2012
Purchase A/c dr
to Supplier A/c
Being goods purchased.
expense a/c Dr
to Purchase A/c
Being used for office use.
vinodh
(Final )
(182 Points)
Replied 09 March 2012
You use journal voucher to pass 2nd entry. and adjust the stock.......
Seema
(Jr. Accountant)
(91 Points)
Replied 09 March 2012
Thank u for suggetion
But I entry made as follows-
Purchase A/c..........Dr To Parties A/c 100 Bags But...
About 20 Bags I want do Entry as Expenses A/c.......Dr To Sale A/c But this Entry not allow in Tally.ERP...... ????
Dhanabal Ramasamy
(CHARTERED ACCOUNTANT)
(105 Points)
Replied 10 March 2012
Hai seema,
I dont think exp A/c Dr. to sales A/c is correct. Because it may rise the liability of VAT. you have to pay VAT then. so its Exp A/c to Purchase A/c is correct
(Guest)
| Originally posted by : vinodh | ||
 |
Purchase A/c dr to Supplier A/c Being goods purchased. expense a/c Dr to Purchase A/c Being used for office use. |
 |
agreed with vinoth,this entry is correct.
Seema
(Jr. Accountant)
(91 Points)
Replied 10 March 2012
Thank u sir for your valuable suggestion.
I entry made as follwos -
Expenses A/c...............Dr ( 20 Bags )
To Purchase A/c
THIS IS RIGHT ?
CA B.S.Sridhar
(Chartered Accountant)
(278 Points)
Replied 10 March 2012
Donot forget to reverse the Input tax credit as well, since the ITC on goods used for personal purposes is not allowed.
Ramanuj
(Accountant.)
(834 Points)
Replied 10 March 2012
Dear all
I think entry will be if One bags Cost is Rs. 100 *100 =10000.00
Supplier A/c 10000.00
Dr Purchase a/c 5% 7619.00
Dr Input Vat A/c 5% 381.00
Dr Office Expenses 2000.00
Becouse Input Vat Credit is not applicable on office used. Only input vat credit on sales.
Stock a/c 7619.00
to Purchase a/c 7619.00
Thank in advance if any wrong pls inform us
CA Ameya Sudame
(Chartered Accountant)
(37 Points)
Replied 10 March 2012
Vat credit is not available if goods are used for personal purpose... But if goods are used for the purpose of business, there are no restrictions for availing input tax credit...
Bhargav K
(Senior Associate/Articled assistant)
(40 Points)
Replied 15 March 2012
When u received 100 bags entry would be
--Purchases Dr 100 ( This will mk your inventory 100) (Inventory Dr)
--Vat receiaveble Dr (Applicable rate)
---To Party Credit .
When u distribute the same ( You need to take 20 bags out of the stock)
Expense a/c dr ( Expense head can be ; Advertisment, damage as well).
To Purchases cr ( Inventory Cr)
One more way of accounting which is actually a bit fradulent type would be
Inventory a/c dr ( For 80 bags) ( Amt Total bill value for 100 bags ) ( Your per unit cost will go up here)
To supplier ( bill amt)
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