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How to pass Accounting Entry

Ajit Desai (Accountant) (39 Points)

26 May 2007

How should I Pass the following entry ( We are Manufacturer)

If We purchase material from Manufacturer.

Cost 100

Excise 16

Vat 5

If we purchase material from Dealer.

Bill amt. 120

Vat 5

Total 125

But inclusive of Excise Cenvat Rs.18

In Second case we have taken Cenvat credit we rejected the material after few days.

How should we make the invoice to party?

What will be the accounting entry for all?

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8 Replies

Shantanu (16 Points)
Replied 27 May 2007

1) Purchase 100 Cenvat 16 VAT 5 TO Party 121 2) Purchase 102 Cenvat 18 Vat 5 To Party Excise Duty Payable 18 To Cenvat 18 Party 125 To Purchase Return 102 To Excise Duty Payable / Cenvat 18 To VAT 5 Debit note should be issued to the party in case goods are returned

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Ajit Desai (Accountant) (39 Points)
Replied 28 May 2007

Thanks for reply. I understand the accounting entry part. But how should I make the invoice for goods return? Because I have to return Cenvat credit also. As I am mfgrer, I have to charge excise @ 16.48%. Then how shoul make the Invoice??

(Guest)

I want to know all the accounting entries related to bank reconciliation statement (in the case of cheques sent for collection, cheques issued but not collected, bank charges, cheques dishonour charges, etc.) and all accounting entries relating to inter-company transactions under the same management

(Guest)

If i want maintain the Stock In Transit. Then what are the Accounting Entries need to pass With Regards, Satish

(Guest)

Originally posted by :Ajit Desai
"	Thanks for reply. I understand the accounting entry part. But how should I make the invoice for goods return? Because I have to return Cenvat credit also. As I am mfgrer, I have to charge excise @ 16.48%. Then how shoul make the Invoice??	"