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A/c entry ...??????

Seema (Jr. Accountant) (91 Points)

09 March 2012

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

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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...... ????

Seema (Jr. Accountant) (91 Points)
Replied 09 March 2012

THANKS ALL CCI FRIENDS

PROBLEM SOLVE

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

1 Like

(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 ?

suraj singh chauhan (Accountant) (124 Points)
Replied 10 March 2012

AGREE WITH VINODH

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...