One unit of the company Manufacture Tools/ and the same is transferred to another unit of the same company by paying Excise duty and treated as An asset of the company . What is the nature of Accounting entry to be passed ?
One unit of the company Manufacture Tools/ and the same is transferred to another unit of the same company by paying Excise duty and treated as An asset of the company . What is the nature of Accounting entry to be passed ?
I hope u might be having unit wise accounting. You need to debit Unit II and credit all the material used in the manufacture of the machine via a journal entry. On the other hand in case of Unit II fixed asset will be debited and Unit I credited and ultimately the account heads ofUnit I and Unit II will be eliminated.
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