Accounting Entry

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Subrahmanyam (Querist)

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)

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)

06 January 2010 Payment:

Debit - Service provider/creditor
credit - cash/bank

Receipt:

Debit - Cash/bank
credit - Customer a/c

Subrahmanyam

Subrahmanyam (Querist)

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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