Accounting Entry

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Subrahmanyam (Querist)
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06 January 2010 Can anyone pls suggest the accounting entry:

1) when the service is taken (Input) & provided (Output) on one date & the payment is made for the same on another date.

Pls suggest the entry on both the situations...

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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06 January 2010 1. Service Taken:

Debit - Service (Direct Exp./Purchase)
Credit - Service Provider A/c / Creditors

2. Service Provided:

Debit - Customer A/C
Credit - Service/Income A/c

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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06 January 2010 Payment:

Debit - Service provider/creditor
credit - cash/bank

Receipt:

Debit - Cash/bank
credit - Customer a/c

Subrahmanyam

Subrahmanyam (Querist)
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06 January 2010 Thanks i got ur entry, however i also need the entry for service tax in the said service in both cases...on how Service Tax Input Credit & Payable entries are adjusted when the service is actually rendered & when the payment is received at different dates. (Since ST is payable to Govt. as & when received)

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