we purchase a machinery from "A" ON RS.750000 AND PAID EXCISE DUTY 10.3%. WE DID A ENTRY IN PURCHASE A/C. MACH DR. 750000 EXCISE RECEIVEABLE DR.77250 TO PARTY 827250
THIS MACHINERY WE PURCHASED FOR "B" WHOM R OUR CONTRACTOR. NOW "B" ISSUED A BILL OF RS.500000. SO WE WANT TO KNOW HOW TO DEDUCT ABOVE AMT. FROM B A/C.
15 October 2010
good day and greeting as much clear from your question please find answer below
1 . you purchased that machinery in your own account and make correct entry . 2 . now you have to pass another entry to pass/transfer it to Mr. B and entry will be - mR.B a/C - Dr to machinery a/c ( IT IS LIKE YOU HAVE SOLD IT TO MR. B ) 3 when mr . B will raise a bill on you you will deduct your due from him by passing another entry in your account -----bill a/c dr.( whatever name called of the bill) to machinery a/c (refrence should be given of that invoice number)
CAclubindia
