Nisha (Home) (40 Points)
07 August 2012
Shankar Reddy.V
(Tax consultant)
(81 Points)
Replied 07 August 2012
Debit to Conveyance/generator maintenace a/c and credit to sales a/c
reduce the inventory to that extent
Hemant Kumar
(Accounts Manager MBA (Fin) CMA*)
(6450 Points)
Replied 07 August 2012
Rajesh Verma
(Salaried)
(68 Points)
Replied 07 August 2012
Dear Nisha,
If owner vehicle is being purchase on company name than entry will pass debit conveyance/deisel a/c & credit petrol a/c.
but vehicle in owner name onle than entry will pass on By. capital a/c & To, deisel a/c.
Varshit Shah
(Self Employed)
(676 Points)
Replied 07 August 2012
Originally posted by : Rajesh Verma | ||
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Dear Nisha, If owner vehicle is being purchase on company name than entry will pass debit conveyance/deisel a/c & credit petrol a/c. but vehicle in owner name onle than entry will pass on By. capital a/c & To, deisel a/c. |
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I agree with Rajeshji.......because moment when you withdraw any kind of goods for the personal use of owner then it is in the nature of personal expenses & not in tne nature of business expenses. So you cant charge diesel used for the vehicle to p/L a/c. As far as diesel used for generator , there should be proper documention explaining consumption of diesel. Logic behind such limitation is if some one show ad-hoc consumption of diesel for vehicle or generator , & sell such diesel in black.......then rest of the story.....u know very wel.
B.SEKAR
(manager-accts.)
(61 Points)
Replied 07 August 2012
Dear Nisha, First is it a proprietor or partnership co?. If the vehcile is in the company name, for proprietorship, debit the owner's name as currrent a/c and credit the diesel a/c. If it is partnership concern, debit conveyance a/c and credit the diesel a/c. If he gives cash, ttreat it as sales. Ok na.... correct?
Vignesh
(Chartered Accountant)
(84 Points)
Replied 07 August 2012
Dear Nisha,
The following is the correct entry for recording the entries
Pass Journal Vouchers in Tally for the below:
Petrol used for Generator:
Generator Running Expenses A/c Dr. (Or appropriate head created by you for generator expenses)
To Purchases A/c Cr.
If Petrol used by Owner is purely for personal purposes:
Drawings A/c (or) Owner's Capital A/c Dr.
To Purchases A/c Cr.
If Petrol used by Owner is purely for official purposes:
Conveyance A/c (or) Car Running Expenses A/c Dr.
To Purchases A/c Cr.
Justification for the entries:
Entry No - 1:
Entry No - 2:
Entry No - 3
YOU CANNOT CREDIT SALES AS IT IS ACTUALLY NOT A SALE AND YOU HAVE TO CREDIT PURCHASES TO REDUCE THE STOCK.
Hope this helps
Sonia M Ketkar
(B.com CA DISA(ICA) Pursuing CS)
(625 Points)
Replied 07 August 2012
Mr.Vignesh is very much right!
C.A.SANTHOSH.M
(ACA)
(159 Points)
Replied 07 August 2012
MR VIGNESH IS VERY ...VERY... VERY... MUCH WRIGHT
HARI PRASAD
(M.COM)
(172 Points)
Replied 08 August 2012
Dear Nisha,
The query which have been asked by you, is if the stock ( Petol/ Diesel) has been used by the owner
of his personal consumptiion so, that should be treated as a drawings for the business because as per the Business Entity Concept the owner is different from the business so that should be shown as personal transaction of the owner, There by the entry is
Drawings a/ c Dr
To Purchase a/c
Note: The stock which was used by the owner should be deducted from the owner capital a/c in the balance sheet of the bunk while preparind as at date.........
Ledger Grouping : Drawings a/c under Capital a/c
Thanks for giving the opertinity to share the knowledge
Let me know oblige at ur end.
Vipan Kumar
(Chief Accounts officer)
(55 Points)
Replied 10 August 2012
Sir,
I have an commission income from life insurance business, which is amounting to Rs. 6.5 Lac. Which form of ITR will be applicable to me? Can I file my return as business income after allowing expenses i.e. Salary, Office Rent, Conveyance, Stationery, Mobile etc.
Please suggest.
Thanx.
Durga Prasad
(Student CA Final )
(21 Points)
Replied 06 July 2015
Sir,
Am accounting accounts of petrol bunk. Sales of petrol bunk are exepmted from VAT so in the purchase entries can i show the input VAT or not
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